>>From the Cube Studios in Palo Alto in Boston, bringing you data-driven insights from the cube and E T R. This is breaking analysis with Dave Valante. >>Making technology predictions in 2022 was tricky business, especially if you were projecting the performance of markets or identifying I P O prospects and making binary forecast on data AI and the macro spending climate and other related topics in enterprise tech 2022, of course was characterized by a seesaw economy where central banks were restructuring their balance sheets. The war on Ukraine fueled inflation supply chains were a mess. And the unintended consequences of of forced march to digital and the acceleration still being sorted out. Hello and welcome to this week's weekly on Cube Insights powered by E T R. In this breaking analysis, we continue our annual tradition of transparently grading last year's enterprise tech predictions. And you may or may not agree with our self grading system, but look, we're gonna give you the data and you can draw your own conclusions and tell you what, tell us what you think. >>All right, let's get right to it. So our first prediction was tech spending increases by 8% in 2022. And as we exited 2021 CIOs, they were optimistic about their digital transformation plans. You know, they rushed to make changes to their business and were eager to sharpen their focus and continue to iterate on their digital business models and plug the holes that they, the, in the learnings that they had. And so we predicted that 8% rise in enterprise tech spending, which looked pretty good until Ukraine and the Fed decided that, you know, had to rush and make up for lost time. We kind of nailed the momentum in the energy sector, but we can't give ourselves too much credit for that layup. And as of October, Gartner had it spending growing at just over 5%. I think it was 5.1%. So we're gonna take a C plus on this one and, and move on. >>Our next prediction was basically kind of a slow ground ball. The second base, if I have to be honest, but we felt it was important to highlight that security would remain front and center as the number one priority for organizations in 2022. As is our tradition, you know, we try to up the degree of difficulty by specifically identifying companies that are gonna benefit from these trends. So we highlighted some possible I P O candidates, which of course didn't pan out. S NQ was on our radar. The company had just had to do another raise and they recently took a valuation hit and it was a down round. They raised 196 million. So good chunk of cash, but, but not the i p O that we had predicted Aqua Securities focus on containers and cloud native. That was a trendy call and we thought maybe an M SS P or multiple managed security service providers like Arctic Wolf would I p o, but no way that was happening in the crummy market. >>Nonetheless, we think these types of companies, they're still faring well as the talent shortage in security remains really acute, particularly in the sort of mid-size and small businesses that often don't have a sock Lacework laid off 20% of its workforce in 2022. And CO C e o Dave Hatfield left the company. So that I p o didn't, didn't happen. It was probably too early for Lacework. Anyway, meanwhile you got Netscope, which we've cited as strong in the E T R data as particularly in the emerging technology survey. And then, you know, I lumia holding its own, you know, we never liked that 7 billion price tag that Okta paid for auth zero, but we loved the TAM expansion strategy to target developers beyond sort of Okta's enterprise strength. But we gotta take some points off of the failure thus far of, of Okta to really nail the integration and the go to market model with azero and build, you know, bring that into the, the, the core Okta. >>So the focus on endpoint security that was a winner in 2022 is CrowdStrike led that charge with others holding their own, not the least of which was Palo Alto Networks as it continued to expand beyond its core network security and firewall business, you know, through acquisition. So overall we're gonna give ourselves an A minus for this relatively easy call, but again, we had some specifics associated with it to make it a little tougher. And of course we're watching ve very closely this this coming year in 2023. The vendor consolidation trend. You know, according to a recent Palo Alto network survey with 1300 SecOps pros on average organizations have more than 30 tools to manage security tools. So this is a logical way to optimize cost consolidating vendors and consolidating redundant vendors. The E T R data shows that's clearly a trend that's on the upswing. >>Now moving on, a big theme of 2020 and 2021 of course was remote work and hybrid work and new ways to work and return to work. So we predicted in 2022 that hybrid work models would become the dominant protocol, which clearly is the case. We predicted that about 33% of the workforce would come back to the office in 2022 in September. The E T R data showed that figure was at 29%, but organizations expected that 32% would be in the office, you know, pretty much full-time by year end. That hasn't quite happened, but we were pretty close with the projection, so we're gonna take an A minus on this one. Now, supply chain disruption was another big theme that we felt would carry through 2022. And sure that sounds like another easy one, but as is our tradition, again we try to put some binary metrics around our predictions to put some meat in the bone, so to speak, and and allow us than you to say, okay, did it come true or not? >>So we had some data that we presented last year and supply chain issues impacting hardware spend. We said at the time, you can see this on the left hand side of this chart, the PC laptop demand would remain above pre covid levels, which would reverse a decade of year on year declines, which I think started in around 2011, 2012. Now, while demand is down this year pretty substantially relative to 2021, I D C has worldwide unit shipments for PCs at just over 300 million for 22. If you go back to 2019 and you're looking at around let's say 260 million units shipped globally, you know, roughly, so, you know, pretty good call there. Definitely much higher than pre covid levels. But so what you might be asking why the B, well, we projected that 30% of customers would replace security appliances with cloud-based services and that more than a third would replace their internal data center server and storage hardware with cloud services like 30 and 40% respectively. >>And we don't have explicit survey data on exactly these metrics, but anecdotally we see this happening in earnest. And we do have some data that we're showing here on cloud adoption from ET R'S October survey where the midpoint of workloads running in the cloud is around 34% and forecast, as you can see, to grow steadily over the next three years. So this, well look, this is not, we understand it's not a one-to-one correlation with our prediction, but it's a pretty good bet that we were right, but we gotta take some points off, we think for the lack of unequivocal proof. Cause again, we always strive to make our predictions in ways that can be measured as accurate or not. Is it binary? Did it happen, did it not? Kind of like an O K R and you know, we strive to provide data as proof and in this case it's a bit fuzzy. >>We have to admit that although we're pretty comfortable that the prediction was accurate. And look, when you make an hard forecast, sometimes you gotta pay the price. All right, next, we said in 2022 that the big four cloud players would generate 167 billion in IS and PaaS revenue combining for 38% market growth. And our current forecasts are shown here with a comparison to our January, 2022 figures. So coming into this year now where we are today, so currently we expect 162 billion in total revenue and a 33% growth rate. Still very healthy, but not on our mark. So we think a w s is gonna miss our predictions by about a billion dollars, not, you know, not bad for an 80 billion company. So they're not gonna hit that expectation though of getting really close to a hundred billion run rate. We thought they'd exit the year, you know, closer to, you know, 25 billion a quarter and we don't think they're gonna get there. >>Look, we pretty much nailed Azure even though our prediction W was was correct about g Google Cloud platform surpassing Alibaba, Alibaba, we way overestimated the performance of both of those companies. So we're gonna give ourselves a C plus here and we think, yeah, you might think it's a little bit harsh, we could argue for a B minus to the professor, but the misses on GCP and Alibaba we think warrant a a self penalty on this one. All right, let's move on to our prediction about Supercloud. We said it becomes a thing in 2022 and we think by many accounts it has, despite the naysayers, we're seeing clear evidence that the concept of a layer of value add that sits above and across clouds is taking shape. And on this slide we showed just some of the pickup in the industry. I mean one of the most interesting is CloudFlare, the biggest supercloud antagonist. >>Charles Fitzgerald even predicted that no vendor would ever use the term in their marketing. And that would be proof if that happened that Supercloud was a thing and he said it would never happen. Well CloudFlare has, and they launched their version of Supercloud at their developer week. Chris Miller of the register put out a Supercloud block diagram, something else that Charles Fitzgerald was, it was was pushing us for, which is rightly so, it was a good call on his part. And Chris Miller actually came up with one that's pretty good at David Linthicum also has produced a a a A block diagram, kind of similar, David uses the term metacloud and he uses the term supercloud kind of interchangeably to describe that trend. And so we we're aligned on that front. Brian Gracely has covered the concept on the popular cloud podcast. Berkeley launched the Sky computing initiative. >>You read through that white paper and many of the concepts highlighted in the Supercloud 3.0 community developed definition align with that. Walmart launched a platform with many of the supercloud salient attributes. So did Goldman Sachs, so did Capital One, so did nasdaq. So you know, sorry you can hate the term, but very clearly the evidence is gathering for the super cloud storm. We're gonna take an a plus on this one. Sorry, haters. Alright, let's talk about data mesh in our 21 predictions posts. We said that in the 2020s, 75% of large organizations are gonna re-architect their big data platforms. So kind of a decade long prediction. We don't like to do that always, but sometimes it's warranted. And because it was a longer term prediction, we, at the time in, in coming into 22 when we were evaluating our 21 predictions, we took a grade of incomplete because the sort of decade long or majority of the decade better part of the decade prediction. >>So last year, earlier this year, we said our number seven prediction was data mesh gains momentum in 22. But it's largely confined and narrow data problems with limited scope as you can see here with some of the key bullets. So there's a lot of discussion in the data community about data mesh and while there are an increasing number of examples, JP Morgan Chase, Intuit, H S P C, HelloFresh, and others that are completely rearchitecting parts of their data platform completely rearchitecting entire data platforms is non-trivial. There are organizational challenges, there're data, data ownership, debates, technical considerations, and in particular two of the four fundamental data mesh principles that the, the need for a self-service infrastructure and federated computational governance are challenging. Look, democratizing data and facilitating data sharing creates conflicts with regulatory requirements around data privacy. As such many organizations are being really selective with their data mesh implementations and hence our prediction of narrowing the scope of data mesh initiatives. >>I think that was right on J P M C is a good example of this, where you got a single group within a, within a division narrowly implementing the data mesh architecture. They're using a w s, they're using data lakes, they're using Amazon Glue, creating a catalog and a variety of other techniques to meet their objectives. They kind of automating data quality and it was pretty well thought out and interesting approach and I think it's gonna be made easier by some of the announcements that Amazon made at the recent, you know, reinvent, particularly trying to eliminate ET t l, better connections between Aurora and Redshift and, and, and better data sharing the data clean room. So a lot of that is gonna help. Of course, snowflake has been on this for a while now. Many other companies are facing, you know, limitations as we said here and this slide with their Hadoop data platforms. They need to do new, some new thinking around that to scale. HelloFresh is a really good example of this. Look, the bottom line is that organizations want to get more value from data and having a centralized, highly specialized teams that own the data problem, it's been a barrier and a blocker to success. The data mesh starts with organizational considerations as described in great detail by Ash Nair of Warner Brothers. So take a listen to this clip. >>Yeah, so when people think of Warner Brothers, you always think of like the movie studio, but we're more than that, right? I mean, you think of H B O, you think of t n t, you think of C N N. We have 30 plus brands in our portfolio and each have their own needs. So the, the idea of a data mesh really helps us because what we can do is we can federate access across the company so that, you know, CNN can work at their own pace. You know, when there's election season, they can ingest their own data and they don't have to, you know, bump up against, as an example, HBO if Game of Thrones is going on. >>So it's often the case that data mesh is in the eyes of the implementer. And while a company's implementation may not strictly adhere to Jamma Dani's vision of data mesh, and that's okay, the goal is to use data more effectively. And despite Gartner's attempts to deposition data mesh in favor of the somewhat confusing or frankly far more confusing data fabric concept that they stole from NetApp data mesh is taking hold in organizations globally today. So we're gonna take a B on this one. The prediction is shaping up the way we envision, but as we previously reported, it's gonna take some time. The better part of a decade in our view, new standards have to emerge to make this vision become reality and they'll come in the form of both open and de facto approaches. Okay, our eighth prediction last year focused on the face off between Snowflake and Databricks. >>And we realized this popular topic, and maybe one that's getting a little overplayed, but these are two companies that initially, you know, looked like they were shaping up as partners and they, by the way, they are still partnering in the field. But you go back a couple years ago, the idea of using an AW w s infrastructure, Databricks machine intelligence and applying that on top of Snowflake as a facile data warehouse, still very viable. But both of these companies, they have much larger ambitions. They got big total available markets to chase and large valuations that they have to justify. So what's happening is, as we've previously reported, each of these companies is moving toward the other firm's core domain and they're building out an ecosystem that'll be critical for their future. So as part of that effort, we said each is gonna become aggressive investors and maybe start doing some m and a and they have in various companies. >>And on this chart that we produced last year, we studied some of the companies that were targets and we've added some recent investments of both Snowflake and Databricks. As you can see, they've both, for example, invested in elation snowflake's, put money into Lacework, the Secur security firm, ThoughtSpot, which is trying to democratize data with ai. Collibra is a governance platform and you can see Databricks investments in data transformation with D B T labs, Matillion doing simplified business intelligence hunters. So that's, you know, they're security investment and so forth. So other than our thought that we'd see Databricks I p o last year, this prediction been pretty spot on. So we'll give ourselves an A on that one. Now observability has been a hot topic and we've been covering it for a while with our friends at E T R, particularly Eric Bradley. Our number nine prediction last year was basically that if you're not cloud native and observability, you are gonna be in big trouble. >>So everything guys gotta go cloud native. And that's clearly been the case. Splunk, the big player in the space has been transitioning to the cloud, hasn't always been pretty, as we reported, Datadog real momentum, the elk stack, that's open source model. You got new entrants that we've cited before, like observe, honeycomb, chaos search and others that we've, we've reported on, they're all born in the cloud. So we're gonna take another a on this one, admittedly, yeah, it's a re reasonably easy call, but you gotta have a few of those in the mix. Okay, our last prediction, our number 10 was around events. Something the cube knows a little bit about. We said that a new category of events would emerge as hybrid and that for the most part is happened. So that's gonna be the mainstay is what we said. That pure play virtual events are gonna give way to hi hybrid. >>And the narrative is that virtual only events are, you know, they're good for quick hits, but lousy replacements for in-person events. And you know that said, organizations of all shapes and sizes, they learn how to create better virtual content and support remote audiences during the pandemic. So when we set at pure play is gonna give way to hybrid, we said we, we i we implied or specific or specified that the physical event that v i p experience is going defined. That overall experience and those v i p events would create a little fomo, fear of, of missing out in a virtual component would overlay that serves an audience 10 x the size of the physical. We saw that really two really good examples. Red Hat Summit in Boston, small event, couple thousand people served tens of thousands, you know, online. Second was Google Cloud next v i p event in, in New York City. >>Everything else was, was, was, was virtual. You know, even examples of our prediction of metaverse like immersion have popped up and, and and, and you know, other companies are doing roadshow as we predicted like a lot of companies are doing it. You're seeing that as a major trend where organizations are going with their sales teams out into the regions and doing a little belly to belly action as opposed to the big giant event. That's a definitely a, a trend that we're seeing. So in reviewing this prediction, the grade we gave ourselves is, you know, maybe a bit unfair, it should be, you could argue for a higher grade, but the, but the organization still haven't figured it out. They have hybrid experiences but they generally do a really poor job of leveraging the afterglow and of event of an event. It still tends to be one and done, let's move on to the next event or the next city. >>Let the sales team pick up the pieces if they were paying attention. So because of that, we're only taking a B plus on this one. Okay, so that's the review of last year's predictions. You know, overall if you average out our grade on the 10 predictions that come out to a b plus, I dunno why we can't seem to get that elusive a, but we're gonna keep trying our friends at E T R and we are starting to look at the data for 2023 from the surveys and all the work that we've done on the cube and our, our analysis and we're gonna put together our predictions. We've had literally hundreds of inbounds from PR pros pitching us. We've got this huge thick folder that we've started to review with our yellow highlighter. And our plan is to review it this month, take a look at all the data, get some ideas from the inbounds and then the e t R of January surveys in the field. >>It's probably got a little over a thousand responses right now. You know, they'll get up to, you know, 1400 or so. And once we've digested all that, we're gonna go back and publish our predictions for 2023 sometime in January. So stay tuned for that. All right, we're gonna leave it there for today. You wanna thank Alex Myerson who's on production and he manages the podcast, Ken Schiffman as well out of our, our Boston studio. I gotta really heartfelt thank you to Kristen Martin and Cheryl Knight and their team. They helped get the word out on social and in our newsletters. Rob Ho is our editor in chief over at Silicon Angle who does some great editing for us. Thank you all. Remember all these podcasts are available or all these episodes are available is podcasts. Wherever you listen, just all you do Search Breaking analysis podcast, really getting some great traction there. Appreciate you guys subscribing. I published each week on wikibon.com, silicon angle.com or you can email me directly at david dot valante silicon angle.com or dm me Dante, or you can comment on my LinkedIn post. And please check out ETR AI for the very best survey data in the enterprise tech business. Some awesome stuff in there. This is Dante for the Cube Insights powered by etr. Thanks for watching and we'll see you next time on breaking analysis.

>>Yeah. Hello and welcome to the Cuba's International Women's Showcase, featuring International Women's Day. I'm John, host of the Kiwi here in California. Great remote guest. She's amazing founder and C e O of Cuba, and great to see you. Okay, thanks for coming on. Um, good to see you. >>You as well. Always a pleasure. You >>know, International Women's Day is the big celebration. We're doing a lot of interviews with great people making things happen, moving and shaking things. Um, but every day, International Women's Day, As far as I'm concerned, it's happening all around the world. But these are stories of innovation, the stories of changes, the stories of transformation for the better. You've been doing a lot of things. Um and I want to get into that. But let's start with your background. Tell us a bit about who you are and what you've got going on. >>Yeah, my background is a little strange. I used to be a maritime archaeologists. So dumb shit breaks for a little bit. That was amazing. I always just It's only partial just because it's actually a bit of truth to it, that learning how to, you know, handle things at depth really does train you to be a C e o. Because you learn to control your breath and and focus on the things that matter and not be so reactive because it's three activity that will panic that will kill you. Uh, always knowing how to reframe. Return to the basics. Um, there's a really good things to hold on to, even in the world of business. Right? So I at some point, ended up doing doing a lot of things. Largely business development, following my time diving and amazing woman. Um, another woman for International Women's Day named Doctor who was a biotech entrepreneur from Japan, stepping down as her role at the helm of her company. Um, and she wanted to launch a space for a young innovators from around the world who are doing amazing work to tackle this very complex challenges we all know exist, um, and figure out a way to give them time and space to do their best work and pursue their their highest visions for change. We decided that we would focus on for-profit companies largely who were using sustainable, scalable business models to pursue both profit and purpose. Um creating a virtuous cycle between the return of money to a company and putting that into to go even further and faster towards, um, solving a problem. Um, so we now have companies over 200 companies from around the world that we have helped support tackling every single, sustainable development goal. Um, and I'm proud to say, you know, particularly related to the subject that fifty-nine percent of our companies have a woman founder or CO-FOUNDER. Um, and 69% of the founder of color. Um, so we're working with entrepreneurs from every every area of the world. Many approximate to the problem that they are trying to solve, so they intimately understand it. Um, and they're doing amazing things. >>Yeah, you can help the great mission. You have a lot of other things going on your helping women encouraging them to your career in the tech sector. Um, good statistics could be better, right? Is higher and better. So, um, what are you guys doing? What, you specifically to help and encourage women to forge their career and tech? >>Yeah. I mean, look, the good news is I do think that it's getting better. I particularly think that we will see the adventure is improving. Um, it takes a while because the companies that have been funded up until now are still working in the biggest amount in the later stages. So I think that percentage hasn't been shifting. But I have to believe that that's a bit of an illusion, and then a couple of years, we're going to start to sea level out. But you know as well as I do that they're pretty poultry statistics in terms of the amount of venture that women like cos. Capture, Um, and the other ways that women are doubted, um, in terms of their ability and potential. Um, so we we love to work with any underrepresented group of entrepreneurs, and there's ways that we do that whether it's helping them sort of find their power and hold space and be confident. And, um, you know, be able to pitch to any room, talk to any investor, talk to any customer but also working to be directed about some of the systemic challenges, both in terms of talking to existing investors and trying to educate them to see the opportunities that they're missing because there is a an economic imperative to them understanding what they're missing. Um, but there's also some things that we're doing in-house to make sure that we're also helping to close capital gaps for all our entrepreneurs. So we actually now have a suite of three capital mechanisms that are entrepreneurs can access on the back end of our incubator, a microphone fund, which is very quick turnaround, small amounts of capital for entrepreneurs who existing opportunities owns, which is a tax destination. Just this in the U. S. But that's meant to be deployed so that they can access capital towards revenue without credit checks, collateral being put up, a slow moving pace of banks and C. D. S s. It's particularly useful for people who may not raise venture. And it's useful for, uh, you know, people who maybe don't have that friends and family check that they can expect similar. We've got a great angel network who look at the best impact deals from around the world. Um, and it doesn't have to be a housing company, just a great venture that's pursuing impact on profit. Um, and then lastly, we're just about to announce that we have a fund of our own on the back end of our incubator that funds only healthy and companies. Um, it's an early stage fund. Um, but watch this space because our pipeline is just increasing your every year. We used to sort of just 16 companies here. Now, we're serving 60 this year, so, um, yeah, it's really exciting. Um, and so obviously, it's really great that, you know, we're going to be able to help scale the impact that we want to see. Uh, ideally a lot. A lot faster. >>Well, you definitely taking control. I remember when we had a few years ago. I think four years ago, you just thinking about getting going and going now with great tailwind. Um, >>and the diversity >>of sources of capital as well as diversity of firms is increasing. That's helping, uh, that we're seeing, but you're also got the back end fun for the housing companies. But also, you've been involved in we capital for a long time. Can you talk about that? Because that's a specific supporting women entrepreneurs initiative. Um, yeah. What's up with capital share? That >>was That was another venture that I-i embarked on with such coz. Um as well as Sheila Johnson and Jonny Adam, Person who runs Rethink Impact. We capital is a group of about 16 women that I pulled together women investors to invest through rethink impact, which is another fun that is looking for impact businesses but predominantly looking for those businesses that are led by women. So this investment group is women supporting women. Um, through the use of deployment of capital, um, they're doing amazingly well. They've had some really stunning news recently that I'll let you dig up. >>I'll definitely thanks for the lead there. I'm gonna go jump on that story. >>Yeah, >>the Okay, Thanks for that lead on that trend, though in Silicon Valley and certainly in other areas that are hot like New York, Boston and D. C. Where you're at, um, you're seeing now multiple years in almost a decade in of the pioneers of these women, only funds or women only firms and your investment. Um, and it's starting to increase to under all underrepresented minorities and entrepreneurs. Right? So take us through how you see that because it's just getting more popular. Is that going to continue to accelerate in your mind? Are their networks of networks. They cross pollinating. >>Yeah, I think you know, it's It's I'm glad to see it. And, you know, it's been a long time coming. I think you know, I think we all look forward to a future where it's not necessary. Um, and you know, funds. Just invest in everyone Until then, making sure that we have specific pools of capital allocated to ensure that that, you know, those entrepreneurs who have not always been equally represented get to pursue their ideas not just because they deserve to pursue their ideas, but because the world needs their ideas. Right. And as I mentioned, there is a business imperative, right? We've got lots of examples of businesses like banks that you wouldn't have gotten a shot just because the investors just didn't understand the opportunity. Um, and I think that's normal. That's human. It happens to everyone. You are successful as an investor largely because you recognize patterns. And if something is, you know, outside of your life experience, you are not going to identify it. So it's very important that we create different kinds of capital run by different types of people. Um, and, uh, and you know. I know lots of investors have every type that are investing in these funds because they recognize that, you know, perhaps the highest growth potential is gonna come out of these, you know, particular kind of funds, which is really exciting. >>That's super important, because half the world is women, and that's just like the population is inspired by many new ventures. And that's super exciting trend. I wanna ask you about your other areas of doing a lot of work in the queue has been to buy multiple times, um, initially reporting on a region out there, and that's certainly isn't important part of the world. Um, you've got a lot of good news going on there. Can you share what's going on with, uh, the social entrepreneurship going on in Bahrain around the region? >>Yeah, I'm happy to. We we've actually been so privileged to work with a W S for a very long time. Almost since the start of the incubator they've supported are entrepreneurs, all of our entrepreneurs with access to cloud credits and services. Um, and we've sort of double down with a W S in the last couple of years in areas where We both want to create an uplift, um, for small businesses and rapidly growing tax solutions to these these social environmental problems. We see. So there's been an excellent partner to do that. And one of the areas we did in the water was with rain, particularly with women, tech startups, women tech startups in Bahrain. Yeah, we did that last year. We had an amazing group of women over in D. C. Um, and we continue to support them. One of them is actually in the process of raising. I think she just closed her seed round recently. And that's why for, um, al yet, um, and she created playbook, which is an amazing, uh, platform for women to take master classes and network and really sort of level up, as one says, Um, but also, um, the mall of work. Um uh, just really talented women over in Bahrain, um, pushing the envelope and all sorts of directions, and it was wonderful to get the opportunity to work with them. Um, that has now spawned another set of programs serving entrepreneurs in the Middle East in North Africa. They were also working on with us as well as the U S. State Department. Um, so we're going to be working for the next two years with entrepreneurs to help our recovery from covid. Um, in China. Um, and then I'm also proud to say that we're working with a W s in South Africa because there is just an extraordinary energy, you know, in the continent, Um, and some amazing entrepreneurial minds working on, you know, the many problems and opportunities that they're facing and recognizing. Um So we're supporting, you know, companies that are working on finding, um, skilled refugees to be able to help them resettle and use their talents and make money. Um, sadly, are very relevant company now with what's going on in Ukraine. Um, but also, uh, zombie and satellite company, um, companies that are preventing food, food waste by providing, um, solar-powered refrigerators to rural areas in South Africa. Um, so a lot of, um, you know, just incredible talent and ideas that we're seeing globally. Um, and happy to be doubling down on that with the help of a W s. >>That's awesome. Yeah, following the work when we met in D. C. And again, you always had this international view um it's International Women's Day. It's not North America >>Women's Day. It's >>International Women's Day. Can you share your thoughts on how that landscape is changing outside the U. S. For example, and around the world and how the international peace is important and you mentioned pattern matching? Um, you also, when you see patterns, they become trends. What do you see forming that have been that that are locked in on the U. C they're locked in on that are happening that are driving. What are some of those trends that you see on the international side that's evolving? >>Yeah. You know, I think the wonderful opportunity with the Internet and social media is that, you know, both, uh, we can be more transparent about areas for improvement and put a little pressure where maybe things are moving fast enough. We've all seen the power of that, Um, the other, um, you know, things that certainly in countries where women maybe as free to move and operate, they can still acquire skills education they can set up cos they can do so so much. Um, you know, through these amazing technologies that we now have at our disposal growing an amazing rates. Um, they can connect via zoom. Right? I think that while the pandemic definitely set women back and we should acknowledge that, um, uh, the things that the pandemic perhaps helped us to exponentially scale will move women forward. And perhaps that's the target to hang on to, to feel optimistic about where we're headed. >>And also, there's a lot of problems to solve. And I think one of the things we're seeing you mentioned the Ukraine situation. You're seeing the geopolitical landscape changing radically with technology driving a lot of value. So with problems comes opportunities. Um, innovation plays a big role. Can you share some of the successful stories that you were inspired by that you've seen, um, in the past couple of years. And as you look forward, what What some of those innovation stories look like? And what are you inspired by? >>Yeah. I mean, there's so, so many. Um, you know, we just, uh, had a couple of entrepreneurs, and just the last year, Um, you know, after I think everyone sort of took an initial breath with the pandemic, They realize that they either had an opportunity or they had a problem to solve to your point. Um, and they did that well or not. And or some of them, you know, just didn't didn't have any more cards to play and had to really pivot. Um, it was really interesting to see how everyone handled handled that particular moment in time. One company that I think of is everywhere. Um, and she had created a wearable device that you can just put on your ear. It looks like an earring right at the top of your ear. Um, and it was for her for herself because she suffered from pulmonary complications. And, uh, without more discreet wearable, you know, had to wear a huge device and look around and oxygen tank and, you know, just to sort of have a good quality of life. Um, it turns out, obviously, during covid, that is a very useful item, not just for patients suffering from covid and wanting to know what their oxygen levels were doing, but also potentially athletics. So, um, she's really been able to double down as a result of the trends from the pandemic. Um, and I'm really proud of part of her. And that's actually where another great one that we just just came through. Our last 15 is Maya. Um, and she had a brick and mortar store. Um, uh, called Cherry Blossom. Intimate where she helped women have an enjoyable experience finding, uh, and fitting bras post mastectomy to include sort of, you know, the necessary, um, prosthetics and things like that. Um, she even made it so that you could go with your friends who haven't had a mistake, and she could also find some lovely luxury. Um, but the pandemic meant that that experience was sort of off the table. Um, and what they did was she decided to make it a technological one. So now she's she's essentially will be part of it. You can, you know, go to my, um, online. And you can, um, you know, order, uh, measure yourself, work with a specialist, all online, get a few different options, figure out the one that's perfect for you and the rest back. Um, and I don't think without the pandemic, that would not have happened. So she's now able to serve exponentially more. Um, you know, women who deserve to feel like themselves post it to me. >>That's also a model and inspirational. I have to ask you for the young women out there watching. What advice would you share with them as they navigate into a world that's changing and evolving and getting better with other women, mentors and entrepreneurs and or just an ecosystem of community? What advice would you give them as they step into the world and have to engage and experience life? >>Yeah, gosh, part of me always wants to resist that they don't listen to anyone to do you follow your heart, follow your gut, or at least be careful who you listen to because a lot of people will want to give you advice. I would >>say, Uh, that's good advice. Don't take my advice. Well, you've been a great leader. Love the work, you're doing it and I'll say N D. C. But all around the world and again, there's so much change going on with innovation. I mean, just the advances in technology across the board, from with machine learning and AI from linguistics and understanding. And I think we're going to be a bigger community. Your thoughts on as you see community organically becoming a big part of how people are engaging. What's your what's your view As you look out across the landscape, communities becoming a big part of tribes. What's your vision on how the role of communities place? >>You know, we we actually do you think a lot about community and healthy. And we say that are you know, alchemy really is providing space, you know, physical and mental space to think, um, access access to capital access to networks, Um, community, Um, and the community piece is very, very important. Are entrepreneurs leave us like the number one thing that they miss is being among like-minded, um, you know, slightly slightly crazy audacious people. Um, and I often joked that we're building a kind army because it is, you know, it's people who want to do it differently if people want to do it with integrity. Is people who are in it for a very different motivations than just money. Um, and, you know, you start to feel the power of that group together and its entirety and what that might look like as as a community solving global problems. Um, and it really is inspiring. Um, I do think that people are starving for FaceTime and people time, real human time after the pandemic, I think they won't go away. It's a great tool, but we all want a little bit of that, and I will mention just along those lines. And if you don't mind a quick plug for an event that we're having March 16, Um, also in partnership with a W s called Build her relevant to International Women's Day as well. People can, either. If they're in the city, they can come in person. But we also have a virtual program, and we'll be listening to some of the most inspiring. Women leaders and entrepreneurs both in government and also the private sector share their knowledge on the side of the pandemic for for, you know, the next tribal group of women entrepreneurs and leaders. >>That's great. Well, you are on our website for sure. >>Thank you. Thank you. Appreciate it. >>And we love the fact that you're in our community as well. Doing great work. Thanks for spending time with the Cube and on International Women's Day celebration. Thanks for coming on and sharing. >>Thank you, John. >>Okay. The Cube International showcase Women's Day, featuring some great guests all around the world, Not just in the U S. But all over the world. I'm your host. Thanks for watching. Yeah, Yeah, yeah, hm, Yeah.

>>Hello and welcome back to the cubes live coverage of A W. S. Public sector summit. I'm john Kerry hosting CUBA. We're live in Washington D. C. For two days, an actual event with an expo floor with real people face to face and of course we're streaming it digitally on the cube and cube channels. And so our next guest, Mark Francis chief digital health integration officer Electronic caregiver, Mark great to see you tech veteran and former intel back in the day. You've seen your ways of innovation. Welcome to the cube. >>Thanks so much. It's a pleasure to be here. >>So we were talking before we came on camera about all the innovation going back in the computer industry but now with health care and delivery of care telemedicine and how the structural systems are changing and how cloud is impacting that. You guys have an interesting solution on AWS that kind of, to me connect the dots for many tell us what you guys do and take us through the product. >>Sure. Happy to do so uh our company is electronic caregiver were actually founded back in 2009. We're based in Los cruces new Mexico so off the grid. Um but since that time we have been spending a lot of time and money doing foundational R and D pilots and product development work. Really say how do you bridge that chasm between the doctor's office and the patient home in a way that you can put a patient facing device and equipment in a patient's home that's going to drive high level of engagement, obtain actionable curated data that's presented out to caregivers and the caregivers can then act upon that to help direct and deliver high quality care. >>So basically is the future of medicine, >>the future of medicine. Right. Right. We look at medicine, we look at the future of medicine as being a hybrid model of in person care plus remote care. And we really see ourselves at the epicenter of providing a platform to help enable that. >>You know the big story here at the public sector. Some and we've been reporting on a digitally for the previous year is the impact the pandemic has had on the industry and and not just normal disruption, you know technology and start ups, disruption happens, structural changes being forced upon industries by the force majeure. That is the pandemic education, health care and so video and data and connected oriented systems are now the thing structurally that's changing it. That's causing all kinds of business model, innovations and challenges. Yeah. What's your take on that? Because this is real. >>Yeah. It is real. It it's funny that this is actually my third digital health company. Um First one was in in uh Silicon Valley early remote patient monitoring company. We end up selling it to bosh uh when I joined intel to be part of our digital health group, we did that for five years and ended a joint venture with G. E. So people have been playing around in remote patient monitoring telehealth for some time until the pandemic though there wasn't really a strong business model to justify scaling of these businesses. Um uh the pandemic change that it forced adoption and force the government to allow reimbursement coach as well. And as a result of that we've seen this pure if aeration of different product offering service offerings and then payment models around telehealth broadly speaking >>well since you started talking the music started cranking because this is the new music of the industry, we're here on the expo floor, we have face to face conversations going on and uh turn the music down. Hey thanks guys, this is a huge thing and I want to uh highlight even further what is the driver for this? Because is it, I mean actually clouds got some benefits but as you guys do the R. And D. What's going on with what's the key drivers for medicine? >>Yeah, I would take two things from a from a technology perspective, the infrastructure is finally in place to enable this type of charity distance before that it really wasn't there now that's there and the products that folks are used are much more affordable about the provider's side and the patient side. The main driver is um uh there's a lot of underlying trends that were happening that we're just being ignored Whether it was 50% non adherence to treatment plans, massive medication mismanagement um lack of professional and informal caregivers, all those things were kind of happening underneath the surface and then with Kobe, it all hit everybody in the phase. People started using telehealth and then realize, hey, we can deliver high quality care, we can deliver value based care mixed with a hybrid model of tele care plus patient care. And it turned out that, that, that works out well. So I think it's now a realization that tell care not only connects patients but solve some of these other issues around adherents, compliance, staffing and a number of other >>things and that this is a structural change we were talking about. Exactly. All right, So talk about amazon, what do you guys are doing on AWS? How's that all work? >>That's working out great. So as we, as we launch at a 2.0, we built it on 24 foundational aws and Amazon services. It's a serverless architecture, um, uh, which is delivered. What enables us to do is we have a whole bunch of different patients facing devices which we now integrate all into one back end through which we can run our data analytics are machine learning and then present curated actual data to the providers on top of that. We've also been developing a virtual caregiver that's really, really innovative. So we're using the unity engine to develop a very, very realistic virtual caregiver that is with the patient 24 hours a day in their home, they develop a relationship with that individual and then through that they can really drive greater you know more intimate care plan and a more intimate relationship with their human caregivers that's built using basic technology behind Alexa pauline lacks as well as IOT core and a lot of other ai ml services from from amazon as well. >>Not to get all nerdy and kind of seeking out here because under the hood it's all the goodness of amazon. We've got a server list, you got tennis is probably in there doing something who knows what's going on there, You've got polly let's do this and that but it also highlights the edge the ultimate network edges the human and if you've got to care for the patient at home or wherever on the run whatever. Yeah you got to get the access to the data so yeah I can imagine a lot of monitoring involved too. Yeah can you take us through how that works? >>Yeah and for us we like to talk about intelligence as opposed to data because data for data sakes isn't actionable. So really what can we do through machine learning and artificial intelligence to be able to make that data more actionable before the human caregiver because you're never going to take a human out of the equation. Uh But uh we had a lot of data inputs, they're both direct data inputs such as vital signs, we also get subtle data input. So with our with our uh with Addison or virtual caregiver uh the product actually come to the camera away from intel called the real sense cameras. And with that we get to see several signs of changes in terms of gate which might be in the indicative of falls risk of falls. We can see body temperature, pulse, heart rate, signs of stress, lack of sleep. Maybe that's a sign of uh adverse reaction to a new medication. There's a bunch of different direct and indirect inputs. We can take run some analysis against and then say hey there's something here you might want to look at because it might be indicating a change in health. >>So this is where the innovation around these bots and ai come in because you're essentially getting pattern matching on other signals you already know. So using the cameras and or sensors in to understand and get the patients some signaling where they can maybe take action call >>fun or Yeah, that's exactly. And the other thing we get, we get to integrate information related to what are called social determinants of health. So there's a whole body of research now showing that 65% of someone's health is actually driven by non clinical issues. So again issues of food security, transportation, access to care, mental health type issues in terms of stress and stuff like we can start gathering some of that information to based upon people's behaviors or for you to assessments which can also provide insights to help direct care. >>So maybe when I'm doing the Cuban reviews, you guys can go to work and look at me. I'm stressed out right now, having a great time here public sector, this is really cool. So take a minute to explain the vision. What does this go from here? I'll see low hanging fruit, telemedicine, check data, observe ability for patient for optimizing care, check what happens next industry disruption, what how these dominoes have been kind of fall? >>Yeah, for us uh we really are seeing more providers and more payers system. Integrators looking now to say how do I put together a comprehensive solution from the doctor's office to inpatient hospital to home that can remove it. A lot of barriers to care addi which is our platform is designed to be interoperable to plug into electronic health care systems, whether it's Cerner, Epic or Athenahealth, whatever it might be to be able to create that you pick us seamless platform for provider to use. We can push all of the data to their platform if they want to use that or they could use our platform and dashboard as well. We make it available to healthcare providers but also a lot of people are trying to age in place and they're getting treated by private duty providers, senior housing providers and other maybe less clinical caregivers. But if you're there every day with somebody you can pick up signs which might prevent a major health episode down the road. So we want to close that circle our our vision is how do we close the circle of care so that people get the right information at the right time to deliver the right >>care. So it's kind of a health care stack of a new kind of stack. So I have to ask you if there was an eye as pass and sass category um infrastructure as a service platform as a service. And then says it sounds like you guys are kind of combine the lower parts of the stack and enable your partners to develop on top of. Is that how it >>works? Yes it does. Yeah. Yeah. So with addie, the interesting thing that we've done it's designed to have open a P. I. For a lot of modules as well. So if we're working with the american Heart Association and we want to do a uh cardiac care module from using their I. P. We could do that if we want to integrate with Uber health or lift we could do that as well if we want to do something in the amazon and pill pack, it's a plug in that we could do that. So if I'm a patient or or a loved one at home instead of going to 10 different places or use our platform and then pull up four different apps. Everything can be right there at their fingertips. You can either do it by touch or you can use this voice because it's all a voice or a touch of interaction. >>So just because I'm curious and and and for clarification, the idea of going past versus SAS platform versus software as a service is why flexibility or customization? Why not go SAS and be a SAS application? >>Uh we've talked mostly about, we've we've gone back and forth platform as a service or infrastructure as a service. So that's more the debate that we've had. It's more about the scalability that we can offer. Um uh not just in the United States, but globally as well. Um and really that's really the thing that we've been looking at, especially because there's so many different sources of data, if you want to provide high quality care that needs to be integrated. We want to make sure that we created a platform, not just for what we provide but for what others in the environment can provide. >>So you really want to enable other people to create that very much layer on top of you guys, do you have out of the box SAS to get people going or is that just >>With the release of adding 2.0, now we do. So now folks go to our website and they contact our development those tools and and those libraries are available. >>Now, this is an awesome opportunity. So for people out there who are wanting to innovate on you, they can just say, okay, I'll leverage your the amazon web services of healthcare essentially. >>That's a nice bold ambitious statement. Yeah, but I mean kind of but if we if we can achieve that, then we'd be quite happy and we think the industry, you're gonna partner >>benefit of that. It's an ecosystem play. Exactly, yeah. It's kind of like. >>Yeah, yeah, yeah, yeah. And for us, what we do covert is a perfect example going back to that. So when Covid hit um were based in las cruces, new Mexico last winter lost crew system to el paso and overwhelmed. They're at capacity. Different health care systems came to us, they asked if we partner with them to deliver a basically a triage program for folks that were coming into the er with Covid. So we designed a Kobe at home programs. So you get diagnosed, get a kit, go home and using telehealth virtual visits, remote monitoring. Be able to stay healthy at home without doing community spread. And by making sure that you were being watched over by a care professionals 24 hours a day. We did that um worked with 300 people Malcolm would all of them said healthy. We were able to expand uh inpatient capacity by 77%. We saved the system over $6 million in in three months. We've now been asked and we're actually replicating that in Memphis now and then also we've been asked to do so down in Mississippi >>mark, great conversation. Uh real quick. I only I don't have much time left but I want to ask you, does this mean that we're gonna see a clip of proliferation of in home kind of devices to assist? >>Yeah, we will. Uh, what we've seen is a big pivot now towards hospital at home model of care. So you have providers saying, you know, I'll see you in my facility but also extend capabilities so I can see you and treat you at home as well. We've also seen a realization that telehealth is more than a than an occasional video visit because if all you're doing is replacing an occasional in person visit with an occasional video visit. You're not really changing things now. There's a whole different sensors ai other integrations that come together to be able to enable these different models >>for all the business school folks out there and people who understand what's going on with structural change. That's when innovation really changes. Yeah, this is structural change. >>Absolutely. >>Mark, thanks for coming on. Mark Francis chief Digital Health Integration Officer Electronic Caregiver here on the Q. Thanks. Coming >>on. Thank you. My pleasure. >>Okay, more coverage after this short break. I'm john Kerry, your host Aws public Sector summit, We'll be right back mm mm mm

>>Hello. And we're here at the cube startup showcase made possible by a Ws. Thanks so much for joining us today. You know when Jim McDaid Ghani was formulating her ideas around data mesh, She wasn't the only one thinking about decentralized data architecture. Hello, Fresh was going into hyper growth mode and realized that in order to support its scale, it needed to rethink how it thought about data. Like many companies that started in the early part of last decade, Hello Fresh relied on a monolithic data architecture and the internal team. It had concerns about its ability to support continued innovation at high velocity. The company's data team began to think about the future and work backwards from a target architecture which possessed many principles of so called data mesh even though they didn't use that term. Specifically, the company is a strong example of an early but practical pioneer of data mission. Now there are many practitioners and stakeholders involved in evolving the company's data architecture, many of whom are listed here on this on the slide to are highlighted in red are joining us today, we're really excited to welcome into the cube Clements cheese, the Global Senior Director for Data at Hello Fresh and christoph Nevada who's the Global Senior Director of data also, of course. Hello Fresh folks. Welcome. Thanks so much for making some time today and sharing your story. >>Thank you very much. Hey >>steve. All right, let's start with Hello Fresh. You guys are number one in the world in your field, you deliver hundreds of millions of meals each year to many, many millions of people around the globe. You're scaling christoph. Tell us a little bit more about your company and its vision. >>Yeah. Should I start or Clements maybe maybe take over the first piece because Clements has actually been a longer trajectory yet have a fresh. >>Yeah go ahead. Climate change. I mean yes about approximately six years ago I joined handle fresh and I didn't think about the startup I was joining would eventually I. P. O. And just two years later and the freshman public and approximately three years and 10 months after. Hello fresh was listed on the German stock exchange which was just last week. Hello Fresh was included in the Ducks Germany's leading stock market index and debt to mind a great great milestone and I'm really looking forward and I'm very excited for the future for the future for head of fashion. All our data. Um the vision that we have is to become the world's leading food solution group and there's a lot of attractive opportunities. So recently we did lounge and expand Norway. This was in july and earlier this year we launched the U. S. Brand green >>chef in the U. K. As >>well. We're committed to launch continuously different geographies in the next coming years and have a strong pipe ahead of us with the acquisition of ready to eat companies like factor in the U. S. And the planned acquisition of you foods in Australia. We're diversifying our offer now reaching even more and more untapped customer segments and increase our total addressable market. So by offering customers and growing range of different alternatives to shop food and consumer meals. We are charging towards this vision and the school to become the world's leading integrated food solutions group. >>Love it. You guys are on a rocket ship, you're really transforming the industry and as you expand your tam it brings us to sort of the data as a as a core part of that strategy. So maybe you guys could talk a little bit about your journey as a company specifically as it relates to your data journey. You began as a start up. You had a basic architecture like everyone. You made extensive use of spreadsheets. You built a Hadoop based system that started to grow and when the company I. P. O. You really started to explode. So maybe describe that journey from a data perspective. >>Yes they saw Hello fresh by 2015 approximately had evolved what amount of classical centralized management set up. So we grew very organically over the years and there were a lot of very smart people around the globe. Really building the company and building our infrastructure. Um This also means that there were a small number of internal and external sources. Data sources and a centralized the I team with a number of people producing different reports, different dashboards and products for our executives for example of our different operations teams, christian company's performance and knowledge was transferred um just via talking to each other face to face conversations and the people in the data where's team were considered as the data wizard or as the E. T. L. Wizard. Very classical challenges. And those et al. Reserves indicated the kind of like a silent knowledge of data management. Right? Um so a central data whereas team then was responsible for different type of verticals and different domains, different geographies and all this setup gave us to the beginning the flexibility to grow fast as a company in 2015 >>christoph anything that might add to that. >>Yes. Um Not expected to that one but as as clement says it right, this was kind of set up that actually work for us quite a while. And then in 2017 when L. A. Freshman public, the company also grew rapidly and just to give you an idea how that looked like. As was that the tech department self actually increased from about 40 people to almost 300 engineers And the same way as a business units as Clemens has described, also grew sustainable, sustainably. So we continue to launch hello fresh and new countries launching brands like every plate and also acquired other brands like much of a factor and with that grows also from a data perspective the number of data requests that centrally we're getting become more and more and more and also more and more complex. So that for the team meant that they had a fairly high mental load. So they had to achieve a very or basically get a very deep understanding about the business. And also suffered a lot from this context switching back and forth, essentially there to prioritize across our product request from our physical product, digital product from the physical from sorry, from the marketing perspective and also from the central reporting uh teams. And in a nutshell this was very hard for these people. And this that also to a situation that, let's say the solution that we have became not really optimal. So in a nutshell, the central function became a bottleneck and slowdown of all the innovation of the company. >>It's a classic case, isn't it? I mean Clements, you see you see the central team becomes a bottleneck and so the lines of business, the marketing team salesman's okay, we're going to take things into our own hands. And then of course I I. T. And the technical team is called in later to clean up the mess. Uh maybe, I mean was that maybe I'm overstating it, but that's a common situation, isn't it? >>Yeah. Uh This is what exactly happened. Right. So um we had a bottleneck, we have the central teams, there was always a little of tension um analytics teams then started in this business domains like marketing, trade chain, finance, HR and so on. Started really to build their own data solutions at some point you have to get the ball rolling right and then continue the trajectory um which means then that the data pipelines didn't meet the engineering standards. And um there was an increased need for maintenance and support from central teams. Hence over time the knowledge about those pipelines and how to maintain a particular uh infrastructure for example left the company such that most of those data assets and data sets are turned into a huge step with decreasing data quality um also decrease the lack of trust, decreasing transparency. And this was increasing challenge where majority of time was spent in meeting rooms to align on on data quality for example. >>Yeah. And and the point you were making christoph about context switching and this is this is a point that Jemaah makes quite often is we've we've we've contextualized are operational systems like our sales systems, our marketing system but not our our data system. So you're asking the data team, Okay. Be an expert in sales, be an expert in marketing, be an expert in logistics, be an expert in supply chain and it start stop, start, stop, it's a paper cut environment and it's just not as productive. But but on the flip side of that is when you think about a centralized organization you think, hey this is going to be a very efficient way, a cross functional team to support the organization but it's not necessarily the highest velocity, most effective organizational structure. >>Yeah, so so I agree with that. Is that up to a certain scale, a centralized function has a lot of advantages, right? That's clear for everyone which would go to some kind of expert team. However, if you see that you actually would like to accelerate that and specific and this hyper growth, right, you wanna actually have autonomy and certain teams and move the teams or let's say the data to the experts in these teams and this, as you have mentioned, right, that increases mental load and you can either internally start splitting your team into a different kind of sub teams focusing on different areas. However, that is then again, just adding another peace where actually collaboration needs to happen busy external sees, so why not bridging that gap immediately and actually move these teams and to end into into the function themselves. So maybe just to continue what, what was Clements was saying and this is actually where over. So Clements, my journey started to become one joint journey. So Clements was coming actually from one of these teams to build their own solutions. I was basically having the platform team called database housed in these days and in 2019 where basically the situation become more and more serious, I would say so more and more people have recognized that this model doesn't really scale In 2019, basically the leadership of the company came together and I identified data as a key strategic asset and what we mean by that, that if we leverage data in a proper way, it gives us a unique competitive advantage which could help us to, to support and actually fully automated our decision making process across the entire value chain. So what we're, what we're trying to do now or what we should be aiming for is that Hello, Fresh is able to build data products that have a purpose. We're moving away from the idea. Data is just a by problem products, we have a purpose why we would like to collect this data. There's a clear business need behind that. And because it's so important to for the company as a business, we also want to provide them as a trust versi asset to the rest of the organization. We say there's the best customer experience, but at least in a way that users can easily discover, understand and security access high quality data. >>Yeah, so and and and Clements, when you c J Maxx writing, you see, you know, she has the four pillars and and the principles as practitioners you look at that say, okay, hey, that's pretty good thinking and then now we have to apply it and that's and that's where the devil meets the details. So it's the four, you know, the decentralized data ownership data as a product, which we'll talk about a little bit self serve, which you guys have spent a lot of time on inclement your wheelhouse which is which is governance and a Federated governance model. And it's almost like if you if you achieve the first two then you have to solve for the second to it almost creates a new challenges but maybe you could talk about that a little bit as to how it relates to Hello fresh. >>Yes. So christophe mentioned that we identified economic challenge beforehand and for how can we actually decentralized and actually empower the different colleagues of ours. This was more a we realized that it was more an organizational or a cultural change and this is something that somebody also mentioned I think thought words mentioned one of the white papers, it's more of a organizational or cultural impact and we kicked off a um faced reorganization or different phases we're currently and um in the middle of still but we kicked off different phases of organizational reconstruct oring reorganization, try unlock this data at scale. And the idea was really moving away from um ever growing complex matrix organizations or matrix setups and split between two different things. One is the value creation. So basically when people ask the question, what can we actually do, what shall we do? This is value creation and how, which is capability building and both are equal in authority. This actually then creates a high urge and collaboration and this collaboration breaks up the different silos that were built and of course this also includes different needs of stuffing forward teams stuffing with more, let's say data scientists or data engineers, data professionals into those business domains and hence also more capability building. Um Okay, >>go ahead. Sorry. >>So back to Tzemach did johnny. So we the idea also Then crossed over when she published her papers in May 2019 and we thought well The four colors that she described um we're around decentralized data ownership, product data as a product mindset, we have a self service infrastructure and as you mentioned, Federated confidential governance. And this suited very much with our thinking at that point of time to reorganize the different teams and this then leads to a not only organisational restructure but also in completely new approach of how we need to manage data, show data. >>Got it. Okay, so your business is is exploding. Your data team will have to become domain experts in too many areas, constantly contact switching as we said, people started to take things into their own hands. So again we said classic story but but you didn't let it get out of control and that's important. So we actually have a picture of kind of where you're going today and it's evolved into this Pat, if you could bring up the picture with the the elephant here we go. So I would talk a little bit about the architecture, doesn't show it here, the spreadsheet era but christoph maybe you can talk about that. It does show the Hadoop monolith which exists today. I think that's in a managed managed hosting service, but but you you preserve that piece of it, but if I understand it correctly, everything is evolving to the cloud, I think you're running a lot of this or all of it in A W. S. Uh you've got everybody's got their own data sources, uh you've got a data hub which I think is enabled by a master catalog for discovery and all this underlying technical infrastructure. That is really not the focus of this conversation today. But the key here, if I understand it correctly is these domains are autonomous and not only that this required technical thinking, but really supportive organizational mindset, which we're gonna talk about today. But christoph maybe you could address, you know, at a high level some of the architectural evolution that you guys went through. >>Yeah, sure. Yeah, maybe it's also a good summary about the entire history. So as you have mentioned, right, we started in the very beginning with the model is on the operation of playing right? Actually, it wasn't just one model is both to one for the back end and one for the for the front and and or analytical plane was essentially a couple of spreadsheets and I think there's nothing wrong with spreadsheets, right, allows you to store information, it allows you to transform data allows you to share this information. It allows you to visualize this data, but all the kind of that's not actually separating concern right? Everything in one tool. And this means that obviously not scalable, right? You reach the point where this kind of management set up in or data management of isn't one tool reached elements. So what we have started is we've created our data lake as we have seen here on Youtube. And this at the very beginning actually reflected very much our operational populace on top of that. We used impala is a data warehouse, but there was not really a distinction between borders, our data warehouse and borders our data like the impala was used as a kind of those as the kind of engine to create a warehouse and data like construct itself and this organic growth actually led to a situation as I think it's it's clear now that we had to centralized model is for all the domains that will really lose kimball modeling standards. There was no uniformity used actually build in house uh ways of building materialized use abuse that we have used for the presentation layer, there was a lot of duplication of effort and in the end essentially they were missing feedbacks, food, which helped us to to improve of what we are filled. So in the end, in the natural, as we have said, the lack of trust and that's basically what the starting point for us to understand. Okay, how can we move away and there are a lot of different things that you can discuss of apart from this organizational structure that we have said, okay, we have these three or four pillars from from Denmark. However, there's also the next extra question around how do we implement our talking about actual right, what are the implications on that level? And I think that is there's something that we are that we are currently still in progress. >>Got it. Okay, so I wonder if we could talk about switch gears a little bit and talk about the organizational and cultural challenges that you faced. What were those conversations like? Uh let's dig into that a little bit. I want to get into governance as well. >>The conversations on the cultural change. I mean yes, we went through a hyper growth for the last year since obviously there were a lot of new joiners, a lot of different, very, very smart people joining the company which then results that collaboration uh >>got a bit more difficult. Of course >>there are times and changes, you have different different artifacts that you were created um and documentation that were flying around. Um so we were we had to build the company from scratch right? Um Of course this then resulted always this tension which I described before, but the most important part here is that data has always been a very important factor at l a fresh and we collected >>more of this >>data and continued to improve use data to improve the different key areas of our business. >>Um even >>when organizational struggles, the central organizational struggles data somehow always helped us to go through this this kind of change. Right? Um in the end those decentralized teams in our local geography ease started with solutions that serve the business which was very very important otherwise wouldn't be at the place where we are today but they did by all late best practices and standards and I always used sport analogy Dave So like any sport, there are different rules and regulations that need to be followed. These rules are defined by calling the sports association and this is what you can think about data governance and compliance team. Now we add the players to it who need to follow those rules and bite by them. This is what we then called data management. Now we have the different players and professionals, they need to be trained and understand the strategy and it rules before they can play. And this is what I then called data literacy. So we realized that we need to focus on helping our teams to develop those capabilities and teach the standards for how work is being done to truly drive functional excellence in a different domains. And one of our mission of our data literacy program for example is to really empower >>every employee at hello >>fresh everyone to make the right data informs decisions by providing data education that scaled by royal Entry team. Then this can be different things, different things like including data capabilities, um, with the learning paths for example. Right? So help them to create and deploy data products connecting data producers and data consumers and create a common sense and more understanding of each other's dependencies, which is important, for example, S. S. L. O. State of contracts and etcetera. Um, people getting more of a sense of ownership and responsibility. Of course, we have to define what it means, what does ownership means? But the responsibility means. But we're teaching this to our colleagues via individual learning patterns and help them up skill to use. Also, there's shared infrastructure and those self self service applications and overall to summarize, we're still in this progress of of, of learning, we are still learning as well. So learning never stops the tele fish, but we are really trying this um, to make it as much fun as possible. And in the end we all know user behavior has changed through positive experience. Uh, so instead of having massive training programs over endless courses of workshops, um, leaving our new journalists and colleagues confused and overwhelmed. >>We're applying um, >>game ification, right? So split different levels of certification where our colleagues can access, have had access points, they can earn badges along the way, which then simplifies the process of learning and engagement of the users and this is what we see in surveys, for example, where our employees that your justification approach a lot and are even competing to collect Those learning path batteries to become the # one on the leader board. >>I love the game ification, we've seen it work so well and so many different industries, not the least of which is crypto so you've identified some of the process gaps uh that you, you saw it is gloss over them. Sometimes I say paved the cow path. You didn't try to force, in other words, a new architecture into the legacy processes. You really have to rethink your approach to data management. So what what did that entail? >>Um, to rethink the way of data management. 100%. So if I take the example of Revolution, Industrial Revolution or classical supply chain revolution, but just imagine that you have been riding a horse, for example, your whole life and suddenly you can operate a car or you suddenly receive just a complete new way of transporting assets from A to B. Um, so we needed to establish a new set of cross functional business processes to run faster, dry faster, um, more robustly and deliver data products which can be trusted and used by downstream processes and systems. Hence we had a subset of new standards and new procedures that would fall into the internal data governance and compliance sector with internal, I'm always referring to the data operations around new things like data catalog, how to identify >>ownership, >>how to change ownership, how to certify data assets, everything around classical software development, which we know apply to data. This this is similar to a new thinking, right? Um deployment, versioning, QA all the different things, ingestion policies, policing procedures, all the things that suffer. Development has been doing. We do it now with data as well. And in simple terms, it's a whole redesign of the supply chain of our data with new procedures and new processes and as a creation as management and as a consumption. >>So data has become kind of the new development kit. If you will um I want to shift gears and talk about the notion of data product and, and we have a slide uh that we pulled from your deck and I'd like to unpack it a little bit. Uh I'll just, if you can bring that up, I'll read it. A data product is a product whose primary objective is to leverage on data to solve customer problems where customers, both internal and external. So pretty straightforward. I know you've gone much deeper and you're thinking and into your organization, but how do you think about that And how do you determine for instance who owns what? How did you get everybody to agree? >>I can take that one. Um, maybe let me start with the data product. So I think um that's an ongoing debate. Right? And I think the debate itself is an important piece here, right? That visit the debate, you clarify what we actually mean by that product and what is actually the mindset. So I think just from a definition perspective, right? I think we find the common denominator that we say okay that our product is something which is important for the company has come to its value what you mean by that. Okay, it's it's a solution to a customer problem that delivers ideally maximum value to the business. And yes, it leverages the power of data and we have a couple of examples but it had a fresh year, the historical and classical ones around dashboards for example, to monitor or error rates but also more sophisticated ways for example to incorporate machine learning algorithms in our recipe recommendations. However, I think the important aspects of the data product is a there is an owner, right? There's someone accountable for making sure that the product that we are providing is actually served and is maintained and there are, there is someone who is making sure that this actually keeps the value of that problem thing combined with the idea of the proper documentation, like a product description, right that people understand how to use their bodies is about and related to that peace is the idea of it is a purpose. Right? You need to understand or ask ourselves, Okay, why does this thing exist does it provide the value that you think it does. That leads into a good understanding about the life cycle of the data product and life cycle what we mean? Okay from the beginning from the creation you need to have a good understanding, we need to collect feedback, we need to learn about that. We need to rework and actually finally also to think about okay benefits time to decommission piece. So overall, I think the core of the data product is product thinking 11 right that we start the point is the starting point needs to be the problem and not the solution and this is essentially what we have seen what was missing but brought us to this kind of data spaghetti that we have built there in in Russia, essentially we built at certain data assets, develop in isolation and continuously patch the solution just to fulfill these articles that we got and actually these aren't really understanding of the stakeholder needs and the interesting piece as a result in duplication of work and this is not just frustrating and probably not the most efficient way how the company should work. But also if I build the same that assets but slightly different assumption across the company and multiple teams that leads to data inconsistency and imagine the following too narrow you as a management for management perspective, you're asking basically a specific question and you get essentially from a couple of different teams, different kind of grass, different kind of data and numbers and in the end you do not know which ones to trust. So there's actually much more ambiguity and you do not know actually is a noise for times of observing or is it just actually is there actually a signal that I'm looking for? And the same is if I'm running in a B test right, I have a new future, I would like to understand what has it been the business impact of this feature. I run that specific source in an unfortunate scenario. Your production system is actually running on a different source. You see different numbers. What you've seen in a B test is actually not what you see then in production typical thing then is you're asking some analytics tend to actually do a deep dive to understand where the discrepancies are coming from. The worst case scenario. Again, there's a different kind of source. So in the end it's a pretty frustrating scenario and that's actually based of time of people that have to identify the root cause of this divergence. So in a nutshell, the highest degree of consistency is actually achieved that people are just reusing Dallas assets and also in the media talk that we have given right, we we start trying to establish this approach for a B testing. So we have a team but just providing or is kind of owning their target metric associated business teams and they're providing that as a product also to other services including the A B testing team, they'll be testing team can use this information defines an interface is okay I'm joining this information that the metadata of an experiment and in the end after the assignment after this data collection face, they can easily add a graph to the dashboard. Just group by the >>Beatles Hungarian. >>And we have seen that also in other companies. So it's not just a nice dream that we have right. I have actually worked in other companies where we worked on search and we established a complete KPI pipeline that was computing all this information. And this information was hosted by the team and it was used for everything A B test and deep dives and and regular reporting. So uh just one of the second the important piece now, why I'm coming back to that is that requires that we are treating this data as a product right? If you want to have multiple people using the things that I am owning and building, we have to provide this as a trust mercy asset and in a way that it's easy for people to discover and actually work with. >>Yeah. And coming back to that. So this is to me this is why I get so excited about data mesh because I really do think it's the right direction for organizations. When people hear data product they say well, what does that mean? Uh but then when you start to sort of define it as you did, it's it's using data to add value, that could be cutting costs, that could be generating revenue, it could be actually directly you're creating a product that you monetize, So it's sort of in the eyes of the beholder. But I think the other point that we've made is you made it earlier on to and again, context. So when you have a centralized data team and you have all these P NL managers a lot of times they'll question the data because they don't own it. They're like wait a minute. If they don't, if it doesn't agree with their agenda, they'll attack the data. But if they own the data then they're responsible for defending that and that is a mindset change, that's really important. Um And I'm curious uh is how you got to, you know, that ownership? Was it a was it a top down with somebody providing leadership? Was it more organic bottom up? Was it a sort of a combination? How do you decide who owned what in other words, you know, did you get, how did you get the business to take ownership of the data and what is owning? You know, the data actually mean? >>That's a very good question. Dave I think this is one of the pieces where I think we have a lot of learnings and basically if you ask me how we could start the feeling. I think that would be the first piece. Maybe we need to start to really think about how that should be approached if it stopped his ownership. Right? It means somehow that the team has a responsibility to host and self the data efforts to minimum acceptable standards. This minimum dependencies up and down string. The interesting piece has been looking backwards. What what's happening is that under that definition has actually process that we have to go through is not actually transferring ownership from the central team to the distributor teams. But actually most cases to establish ownership, I make this difference because saying we have to transfer ownership actually would erroneously suggests that the data set was owned before. But this platform team, yes, they had the capability to make the changes on data pipelines, but actually the analytics team, they're always the ones who had the business understands, you use cases and but no one actually, but it's actually expensive expected. So we had to go through this very lengthy process and establishing ownership. We have done that, as in the beginning, very naively. They have started, here's a document here, all the data assets, what is probably the nearest neighbor who can actually take care of that and then we we moved it over. But the problem here is that all these things is kind of technical debt, right? It's not really properly documented, pretty unstable. It was built in a very inconsistent over years and these people who have built this thing have already left the company. So there's actually not a nice thing that is that you want to see and people build up a certain resistance, e even if they have actually bought into this idea of domain ownership. So if you ask me these learnings, but what needs to happen as first, the company needs to really understand what our core business concept that they have, they need to have this mapping from. These are the core business concept that we have. These are the domain teams who are owning this concept and then actually link that to the to the assets and integrated better with both understanding how we can evolve actually, the data assets and new data build things new in the in this piece in the domain. But also how can we address reduction of technical death and stabilizing what we have already. >>Thank you for that christoph. So I want to turn a direction here and talk about governance and I know that's an area that's passionate, you're passionate about. Uh I pulled this slide from your deck, which I kind of messed up a little bit sorry for that, but but by the way, we're going to publish a link to the full video that you guys did. So we'll share that with folks. But it's one of the most challenging aspects of data mesh, if you're going to decentralize you, you quickly realize this could be the Wild West as we talked about all over again. So how are you approaching governance? There's a lot of items on this slide that are, you know, underscore the complexity, whether it's privacy, compliance etcetera. So, so how did you approach this? >>It's yeah, it's about connecting those dots. Right. So the aim of the data governance program is about the autonomy of every team was still ensuring that everybody has the right interoperability. So when we want to move from the Wild West riding horses to a civilised way of transport, um you can take the example of modern street traffic, like when all participants can manoeuvre independently and as long as they follow the same rules and standards, everybody can remain compatible with each other and understand and learn from each other so we can avoid car crashes. So when I go from country to country, I do understand what the street infrastructure means. How do I drive my car? I can also read the traffic lights in the different signals. Um, so likewise as a business and Hello Fresh, we do operate autonomously and consequently need to follow those external and internal rules and standards to set forth by the redistribution in which we operate so in order to prevent a car crash, we need to at least ensure compliance with regulations to account for society's and our customers increasing concern with data protection and privacy. So teaching and advocating this advantage, realizing this to everyone in the company um was a key community communication strategy and of course, I mean I mentioned data privacy external factors, the same goes for internal regulations and processes to help our colleagues to adapt to this very new environment. So when I mentioned before the new way of thinking the new way of um dealing and managing data, this of course implies that we need new processes and regulations for our colleagues as well. Um in a nutshell then this means the data governance provides a framework for managing our people the processes and technology and culture around our data traffic. And those components must come together in order to have this effective program providing at least a common denominator, especially critical for shared dataset, which we have across our different geographies managed and shared applications on shared infrastructure and applications and is then consumed by centralized processes um for example, master data, everything and all the metrics and KPI s which are also used for a central steering. Um it's a big change day. Right. And our ultimate goal is to have this noninvasive, Federated um ultimatum and computational governance and for that we can't just talk about it. We actually have to go deep and use case by use case and Qc buy PVC and generate learnings and learnings with the different teams. And this would be a classical approach of identifying the target structure, the target status, match it with the current status by identifying together with the business teams with the different domains have a risk assessment for example, to increase transparency because a lot of teams, they might not even know what kind of situation they might be. And this is where this training and this piece of illiteracy comes into place where we go in and trade based on the findings based on the most valuable use case um and based on that help our teams to do this change to increase um their capability just a little bit more and once they hand holding. But a lot of guidance >>can I kind of kind of trying to quickly David will allow me I mean there's there's a lot of governance piece but I think um that is important. And if you're talking about documentation for example, yes, we can go from team to team and tell these people how you have to document your data and data catalog or you have to establish data contracts and so on the force. But if you would like to build data products at scale following actual governance, we need to think about automation right. We need to think about a lot of things that we can learn from engineering before. And that starts with simple things like if we would like to build up trust in our data products, right, and actually want to apply the same rigor and the best practices that we know from engineering. There are things that we can do and we should probably think about what we can copy and one example might be. So the level of service level agreements, service level objectives. So that level indicators right, that represent on on an engineering level, right? If we're providing services there representing the promises we made to our customers or consumers, these are the internal objectives that help us to keep those promises. And actually these are the way of how we are tracking ourselves, how we are doing. And this is just one example of that thing. The Federated Governor governance comes into play right. In an ideal world, we should not just talk about data as a product but also data product. That's code that we say, okay, as most as much as possible. Right? Give the engineers the tool that they are familiar basis and actually not ask the product managers for example to document their data assets in the data catalog but make it part of the configuration. Have this as a, as a C D C I, a continuous delivery pipeline as we typically see another engineering task through and services we say, okay, there is configuration, we can think about pr I can think about data quality monitoring, we can think about um the ingestion data catalog and so on and forest, I think ideally in the data product will become of a certain templates that can be deployed and are actually rejected or verified at build time before we actually make them deploy them to production. >>Yeah, So it's like devoPS for data product um so I'm envisioning almost a three phase approach to governance and you kind of, it sounds like you're in early phases called phase zero where there's there's learning, there's literacy, there's training, education, there's kind of self governance and then there's some kind of oversight, some a lot of manual stuff going on and then you you're trying to process builders at this phase and then you codify it and then you can automate it. Is that fair? >>Yeah, I would rather think think about automation as early as possible in the way and yes, there needs to be certain rules but then actually start actually use case by use case. Is there anything that small piece that we can already automate? It's as possible. Roll that out and then actually extended step by step, >>is there a role though that adjudicates that? Is there a central Chief state officer who is responsible for making sure people are complying or is it how do you handle that? >>I mean from a from a from a platform perspective, yes, we have a centralized team to uh implement certain pieces they'll be saying are important and actually would like to implement. However, that is actually working very closely with the governance department. So it's Clements piece to understand and defy the policies that needs to be implemented. >>So Clements essentially it's it's your responsibility to make sure that the policy is being followed. And then as you were saying, christoph trying to compress the time to automation as fast as possible percent. >>So >>it's really it's uh >>what needs to be really clear that it's always a split effort, Right? So you can't just do one thing or the other thing, but everything really goes hand in hand because for the right automation for the right engineering tooling, we need to have the transparency first. Uh I mean code needs to be coded so we kind of need to operate on the same level with the right understanding. So there's actually two things that are important which is one its policies and guidelines, but not only that because more importantly or even well equally important to align with the end user and tech teams and engineering and really bridge between business value business teams and the engineering teams. >>Got it. So just a couple more questions because we gotta wrap I want to talk a little bit about the business outcome. I know it's hard to quantify and I'll talk about that in a moment but but major learnings, we've got some of the challenges that you cited. I'll just put them up here. We don't have to go detailed into this, but I just wanted to share with some folks. But my question, I mean this is the advice for your peers question if you had to do it differently if you had a do over or a Mulligan as we like to say for you golfers, what would you do differently? Yeah, >>I mean can we start with from a from the transformational challenge that understanding that it's also high load of cultural change. I think this is this is important that a particular communication strategy needs to be put into place and people really need to be um supported. Right? So it's not that we go in and say well we have to change towards data mesh but naturally it's in human nature, you know, we're kind of resistance to to change right? Her speech uncomfortable. So we need to take that away by training and by communicating um chris we're gonna add something to that >>and definitely I think the point that I have also made before right we need to acknowledge that data mesh is an architecture of scale, right? You're looking for something which is necessary by huge companies who are vulnerable, data productive scale. I mean Dave you mentioned it right, there are a lot of advantages to have a centralized team but at some point it may make sense to actually decentralized here and at this point right? If you think about data Mash, you have to recognize that you're not building something on a green field. And I think there's a big learning which is also reflected here on the slide is don't underestimate your baggage. It's typically you come to a point where the old model doesn't doesn't broke anymore and has had a fresh right? We lost our trust in our data and actually we have seen certain risks that we're slowing down our innovation so we triggered that this was triggering the need to actually change something. So this transition implies that you typically have a lot of technical debt accumulated over years and I think what we have learned is that potentially we have decentralized some assets to earlier, this is not actually taking into account the maturity of the team where we are actually distributed to and now we actually in the face of correcting pieces of that one. Right? But I think if you if you if you start from scratch you have to understand, okay, is are my team is actually ready for taking on this new uh, this news capabilities and you have to make sure that business decentralization, you build up these >>capabilities and the >>teams and as Clements has mentioned, right, make sure that you take the people on your journey. I think these are the pieces that also here, it comes with this knowledge gap, right? That we need to think about hiring and literacy the technical depth I just talked about and I think the last piece that I would add now which is not here on the flight deck is also from our perspective, we started on the analytical layer because that's kind of where things are exploding, right, this is the thing that people feel the pain but I think a lot of the efforts that we have started to actually modernize the current state uh, towards data product towards data Mash. We've understood that it always comes down basically to a proper shape of our operational plane and I think what needs to happen is is I think we got through a lot of pains but the learning here is this need to really be a commitment from the company that needs to happen and to act. >>I think that point that last point you made it so critical because I I hear a lot from the vendor community about how they're gonna make analytics better and that's that's not unimportant, but but through data product thinking and decentralized data organizations really have to operationalize in order to scale. So these decisions around data architecture an organization, their fundamental and lasting, it's not necessarily about an individual project are why they're gonna be project sub projects within this architecture. But the architectural decision itself is an organizational, its cultural and what's the best approach to support your business at scale. It really speaks to to to what you are, who you are as a company, how you operate and getting that right, as we've seen in the success of data driven driven companies is yields tremendous results. So I'll ask each of you to give give us your final thoughts and then we'll wrap maybe >>maybe it quickly, please. Yeah, maybe just just jumping on this piece that you have mentioned, right, the target architecture. If we talk about these pieces right, people often have this picture of mind like OK, there are different kind of stages, we have sources, we have actually ingestion layer, we have historical transformation presentation layer and then we're basically putting a lot of technology on top of that kind of our target architecture. However, I think what we really need to make sure is that we have these different kind of viewers, right? We need to understand what are actually the capabilities that we need in our new goals. How does it look and feel from the different kind of personas and experience view? And then finally, that should actually go to the to the target architecture from a technical perspective um maybe just to give an outlook but what we're what we're planning to do, how we want to move that forward. We have actually based on our strategy in the in the sense of we would like to increase that to maturity as a whole across the entire company and this is kind of a framework around the business strategy and it's breaking down into four pillars as well. People meaning the data, cultural, data literacy, data organizational structure and so on that. We're talking about governance as Clements has actually mentioned that, right, compliance, governance, data management and so on. You talk about technology and I think we could talk for hours for that one. It's around data platform, better science platform and then finally also about enablement through data, meaning we need to understand that a quality data accessibility and the science and data monetization. >>Great, thank you christophe clement. Once you bring us home give us your final thoughts. >>Can't can just agree with christoph that uh important is to understand what kind of maturity people have to understand what the maturity level, where the company where where people organization is and really understand what does kind of some kind of a change replies to that those four pillars for example, um what needs to be taken first and this is not very clear from the very first beginning of course them it's kind of like Greenfield you come up with must wins to come up with things that we really want to do out of theory and out of different white papers. Um only if you really start conducting the first initiatives you do understand. Okay, where we have to put the starts together and where do I missed out on one of those four different pillars? People, process technology and governance. Right? And then that kind of an integration. Doing step by step, small steps by small steps not boiling the ocean where you're capable ready to identify the gaps and see where either you can fill um the gaps are where you have to increase maturity first and train people or increase your text text, >>you know Hello Fresh is an excellent example of a company that is innovating. It was not born in Silicon Valley which I love. It's a global company. Uh and I gotta ask you guys, it seems like this is an amazing place to work you guys hiring? >>Yes, >>definitely. We do >>uh as many rights as was one of these aspects distributing. And actually we are hiring as an entire company specifically for data. I think there are a lot of open roles serious. Please visit or our page from better engineering, data, product management and Clemens has a lot of rules that you can speak about. But yes >>guys, thanks so much for sharing with the cube audience, your, your pioneers and we look forward to collaborations in the future to track progress and really want to thank you for your time. >>Thank you very much. Thank you very much. Dave >>thank you for watching the cubes startup showcase made possible by A W. S. This is Dave Volonte. We'll see you next time. >>Yeah.

>>from around the globe. It's the Cube presenting innovation for good, brought to you by on shape. >>Hello, everyone, and welcome to Innovation for Good Program, hosted by the Cuban. Brought to You by on Shape, which is a PTC company. My name is Dave Valentin. I'm coming to you from our studios outside of Boston. I'll be directing the conversations today. It's a very exciting, all live program. We're gonna look at how product innovation has evolved and where it's going and how engineers, entrepreneurs and educators are applying cutting edge, cutting edge product development techniques and technology to change our world. You know, the pandemic is, of course, profoundly impacted society and altered how individuals and organizations they're gonna be thinking about an approaching the coming decade. Leading technologists, engineers, product developers and educators have responded to the new challenges that we're facing from creating lifesaving products to helping students learn from home toe how to apply the latest product development techniques and solve the world's hardest problems. And in this program, you'll hear from some of the world's leading experts and practitioners on how product development and continuous innovation has evolved, how it's being applied toe positive positively affect society and importantly where it's going in the coming decades. So let's get started with our first session fueling Tech for good. And with me is John Hirschbeck, who is the president of the Suffers, a service division of PTC, which acquired on shape just over a year ago, where John was the CEO and co founder, and Dana Grayson is here. She is the co founder and general partner at Construct Capital, a new venture capital firm. Folks, welcome to the program. Thanks so much for coming on. >>Great to be here, Dave. >>All right, John. >>You're very welcome. Dana. Look, John, let's get into it for first Belated congratulations on the acquisition of Von Shape. That was an awesome seven year journey for your company. Tell our audience a little bit about the story of on shape, but take us back to Day zero. Why did you and your co founders start on shape? Well, >>actually, start before on shaping the You know, David, I've been in this business for almost 40 years. The business of building software tools for product developers and I had been part of some previous products in the industry and companies that had been in their era. Big changes in this market and about, you know, a little Before founding on shape, we started to see the problems product development teams were having with the traditional tools of that era years ago, and we saw the opportunity presented by Cloud Web and Mobile Technology. And we said, Hey, we could use Cloud Web and Mobile to solve the problems of product developers make their Their business is run better. But we have to build an entirely new system, an entirely new company, to do it. And that's what on shapes about. >>Well, so notwithstanding the challenges of co vid and difficulties this year, how is the first year been as, Ah, division of PTC for you guys? How's business? Anything you can share with us? >>Yeah, our first year of PTC has been awesome. It's been, you know, when you get acquired, Dave, you never You know, you have great optimism, but you never know what life will really be like. It's sort of like getting married or something, you know, until you're really doing it, you don't know. And so I'm happy to say that one year into our acquisition, um, PTC on shape is thriving. It's worked out better than I could have imagined a year ago. Along always, I mean sales are up. In Q four, our new sales rate grew 80% vs Excuse me, our fiscal Q four Q three. In the calendar year, it grew 80% compared to the year before. Our educational uses skyrocketing with around 400% growth, most recently year to year of students and teachers and co vid. And we've launched a major cloud platform using the core of on shape technology called Atlas. So, um, just tons of exciting things going on a TTC. >>That's awesome. But thank you for sharing some of those metrics. And of course, you're very humble individual. You know, people should know a little bit more about you mentioned, you know, we founded Solid Works, co founded Solid where I actually found it solid works. You had a great exit in the in the late nineties. But what I really appreciate is, you know, you're an entrepreneur. You've got a passion for the babies that you you helped birth. You stayed with the salt systems for a number of years. The company that quiet, solid works well over a decade. And and, of course, you and I have talked about how you participated in the the M I T. Blackjack team. You know, back in the day, a zai say you're very understated, for somebody was so accomplished. Well, >>that's kind of you, but I tend to I tend Thio always keep my eye more on what's ahead. You know what's next, then? And you know, I look back Sure to enjoy it and learn from it about what I can put to work making new memories, making new successes. >>Love it. Okay, let's bring Dana into the conversation. Hello, Dana. You look you're a fairly early investor in in on shape when you were with any A And and I think it was like it was a serious B, but it was very right close after the A raise. And and you were and still are a big believer in industrial transformation. So take us back. What did you see about on shape back then? That excited you. >>Thanks. Thanks for that. Yeah. I was lucky to be a early investment in shape. You know, the things that actually attracted me. Don shape were largely around John and, uh, the team. They're really setting out to do something, as John says humbly, something totally new, but really building off of their background was a large part of it. Um, but, you know, I was really intrigued by the design collaboration side of the product. Um, I would say that's frankly what originally attracted me to it. What kept me in the room, you know, in terms of the industrial world was seeing just if you start with collaboration around design what that does to the overall industrial product lifecycle accelerating manufacturing just, you know, modernizing all the manufacturing, just starting with design. So I'm really thankful to the on shape guys, because it was one of the first investments I've made that turned me on to the whole sector. And while just such a great pleasure to work with with John and the whole team there. Now see what they're doing inside PTC. >>And you just launched construct capital this year, right in the middle of a pandemic and which is awesome. I love it. And you're focused on early stage investing. Maybe tell us a little bit about construct capital. What your investment thesis is and you know, one of the big waves that you're hoping to ride. >>Sure, it construct it is literally lifting out of any what I was doing there. Um uh, for on shape, I went on to invest in companies such as desktop metal and Tulip, to name a couple of them form labs, another one in and around the manufacturing space. But our thesis that construct is broader than just, you know, manufacturing and industrial. It really incorporates all of what we'd call foundational industries that have let yet to be fully tech enabled or digitized. Manufacturing is a big piece of it. Supply chain, logistics, transportation of mobility or not, or other big pieces of it. And together they really drive, you know, half of the GDP in the US and have been very under invested. And frankly, they haven't attracted really great founders like they're on in droves. And I think that's going to change. We're seeing, um, entrepreneurs coming out of the tech world orthe Agnelli into these industries and then bringing them back into the tech world, which is which is something that needs to happen. So John and team were certainly early pioneers, and I think, you know, frankly, obviously, that voting with my feet that the next set, a really strong companies are going to come out of the space over the next decade. >>I think it's a huge opportunity to digitize the sort of traditionally non digital organizations. But Dana, you focused. I think it's it's accurate to say you're focused on even Mawr early stage investing now. And I want to understand why you feel it's important to be early. I mean, it's obviously riskier and reward e er, but what do you look for in companies and and founders like John >>Mhm, Um, you know, I think they're different styles of investing all the way up to public market investing. I've always been early stage investors, so I like to work with founders and teams when they're, you know, just starting out. Um, I happened to also think that we were just really early in the whole digital transformation of this world. You know, John and team have been, you know, back from solid works, etcetera around the space for a long time. But again, the downstream impact of what they're doing really changes the whole industry. And and so we're pretty early and in digitally transforming that market. Um, so that's another reason why I wanna invest early now, because I do really firmly believe that the next set of strong companies and strong returns for my own investors will be in the spaces. Um, you know, what I look for in Founders are people that really see the world in a different way. And, you know, sometimes some people think of founders or entrepreneurs is being very risk seeking. You know, if you asked John probably and another successful entrepreneurs, they would call themselves sort of risk averse, because by the time they start the company, they really have isolated all the risk out of it and think that they have given their expertise or what they're seeing their just so compelled to go change something, eh? So I look for that type of attitude experience a Z. You can also tell from John. He's fairly humble. So humility and just focus is also really important. Um, that there's a That's a lot of it. Frankly, >>Excellent. Thank you, John. You got such a rich history in the space. Uh, and one of you could sort of connect the dots over time. I mean, when you look back, what were the major forces that you saw in the market in in the early days? Particularly days of on shape on? And how is that evolved? And what are you seeing today? Well, >>I think I touched on it earlier. Actually, could I just reflect on what Dana said about risk taking for just a quick one and say, throughout my life, from blackjack to starting solid works on shape, it's about taking calculated risks. Yes, you try to eliminate the risk Sa's much as you can, but I always say, I don't mind taking a risk that I'm aware of, and I've calculated through as best I can. I don't like taking risks that I don't know I'm taking. That's right. You >>like to bet on >>sure things as much as you sure things, or at least where you feel you. You've done the research and you see them and you know they're there and you know, you, you you keep that in mind in the room, and I think that's great. And Dana did so much for us. Dana, I want to thank you again. For all that, you did it every step of the way, from where we started to to, you know, your journey with us ended formally but continues informally. Now back to you, Dave, I think, question about the opportunity and how it's shaped up. Well, I think I touched on it earlier when I said It's about helping product developers. You know, our customers of the people build the future off manufactured goods. Anything you think of that would be manufacturing factory. You know, the chair you're sitting in machine that made your coffee. You know, the computer you're using, the trucks that drive by on the street, all the covert product research, the equipment being used to make vaccines. All that stuff is designed by someone, and our job is given the tools to do it better. And I could see the problems that those product developers had that we're slowing them down with using the computing systems of the time. When we built solid works, that was almost 30 years ago. If people don't realize that it was in the early >>nineties and you know, we did the >>best we could for the early nineties, but what we did. We didn't anticipate the world of today. And so people were having problems with just installing the systems. Dave, you wouldn't believe how hard it is to install these systems. You need toe speck up a special windows computer, you know, and make sure you've got all the memory and graphics you need and getting to get that set up. You need to make sure the device drivers air, right, install a big piece of software. Ah, license key. I'm not making this up. They're still around. You may not even know what those are. You know, Dennis laughing because, you know, zero cool people do things like this anymore. Um, and it only runs some windows. You want a second user to use it? They need a copy. They need a code. Are they on the same version? It's a nightmare. The teams change, you know? You just say, Well, get everyone on the software. Well, who's everyone? You know, you got a new vendor today? A new customer tomorrow, a new employee. People come on and off the team. The other problem is the data stored in files, thousands of files. This isn't like a spreadsheet or word processor, where there's one file to pass around these air thousands of files to make one, even a simple product. People were tearing their hair out. John, what do we do? I've got copies everywhere. I don't know where the latest version is. We tried like, you know, locking people out so that only one person can change it At the time that works against speed, it works against innovation. We saw what was happening with Cloud Web and mobile. So what's happened in the years since is every one of the forces that product developers experience the need for speed, the need for innovation, the need to be more efficient with their people in their capital. Resource is every one of those trends have been amplified since we started on shape by a lot of forces in the world. And covert is amplified all those the need for agility and remote work cove it is amplified all that the same time, The acceptance of cloud. You know, a few years ago, people were like cloud, you know, how is that gonna work now They're saying to me, You know, increasingly, how would you ever even have done this without the cloud. How do you make solid works work without the cloud? How would that even happen? You know, once people understand what on shapes about >>and we're the >>Onley full SAS solution software >>as a service, >>full SAS solution in our industry. So what's happened in those years? Same problems we saw earlier, but turn up the gain, their bigger problems. And with cloud, we've seen skepticism of years ago turn into acceptance. And now even embracement in the cova driven new normal. >>Yeah. So a lot of friction in the previous environments cloud obviously a huge factor on, I guess. I guess Dana John could see it coming, you know, in the early days of solid works with, you know, had Salesforce, which is kind of the first major independent SAS player. Well, I guess that was late nineties. So his post solid works, but pre in shape and their work day was, you know, pre on shape in the mid two thousands. And and but But, you know, the bet was on the SAS model was right for Crick had and and product development, you know, which maybe the time wasn't a no brainer. Or maybe it was, I don't know, but Dana is there. Is there anything that you would invest in today? That's not Cloud based? >>Um, that's a great question. I mean, I think we still see things all the time in the manufacturing world that are not cloud based. I think you know, the closer you get to the shop floor in the production environment. Um e think John and the PTC folks would agree with this, too, but that it's, you know, there's reliability requirements, performance requirements. There's still this attitude of, you know, don't touch the printing press. So the cloud is still a little bit scary sometimes. And I think hybrid cloud is a real thing for those or on premise. Solutions, in some cases is still a real thing. What what we're more focused on. And, um, despite whether it's on premise or hybrid or or SAS and Cloud is a frictionless go to market model, um, in the companies we invest in so sass and cloud, or really make that easy to adopt for new users, you know, you sign up, started using a product, um, but whether it's hosted in the cloud, whether it's as you can still distribute buying power. And, um, I would I'm just encouraging customers in the customer world and the more industrial environment to entrust some of their lower level engineers with more budget discretionary spending so they can try more products and unlock innovation. >>Right? The unit economics are so compelling. So let's bring it, you know, toe today's you know, situation. John, you decided to exit about a year ago. You know? What did you see in PTC? Other than the obvious money? What was the strategic fit? >>Yeah, Well, David, I wanna be clear. I didn't exit anything. Really? You >>know, I love you and I don't like that term exit. I >>mean, Dana had exit is a shareholder on and so it's not It's not exit for me. It's just a step in the journey. What we saw in PTC was a partner. First of all, that shared our vision from the top down at PTC. Jim Hempleman, the CEO. He had a great vision for for the impact that SAS can make based on cloud technology and really is Dana of highlighted so much. It's not just the technology is how you go to market and the whole business being run and how you support and make the customers successful. So Jim shared a vision for the potential. And really, really, um said Hey, come join us and we can do this bigger, Better, faster. We expanded the vision really to include this Atlas platform for hosting other SAS applications. That P D. C. I mean, David Day arrived at PTC. I met the head of the academic program. He came over to me and I said, You know, and and how many people on your team? I thought he'd say 5 40 people on the PTC academic team. It was amazing to me because, you know, we were we were just near about 100 people were required are total company. We didn't even have a dedicated academic team and we had ah, lot of students signing up, you know, thousands and thousands. Well, now we have hundreds of thousands of students were approaching a million users and that shows you the power of this team that PTC had combined with our product and technology whom you get a big success for us and for the teachers and students to the world. We're giving them great tools. So so many good things were also putting some PTC technology from other parts of PTC back into on shape. One area, a little spoiler, little sneak peek. Working on taking generative design. Dana knows all about generative design. We couldn't acquire that technology were start up, you know, just to too much to do. But PTC owns one of the best in the business. This frustrated technology we're working on putting that into on shaping our customers. Um, will be happy to see it, hopefully in the coming year sometime. >>It's great to see that two way exchange. Now, you both know very well when you start a company, of course, a very exciting time. You know, a lot of baggage, you know, our customers pulling you in a lot of different directions and asking you for specials. You have this kind of clean slate, so to speak in it. I would think in many ways, John, despite you know, your install base, you have a bit of that dynamic occurring today especially, you know, driven by the forced march to digital transformation that cove it caused. So when you sit down with the team PTC and talk strategy. You now have more global resource is you got cohorts selling opportunities. What's the conversation like in terms of where you want to take the division? >>Well, Dave, you actually you sounds like we should have you coming in and talking about strategy because you've got the strategy down. I mean, we're doing everything said global expansion were able to reach across selling. We got some excellent PTC customers that we can reach reach now and they're finding uses for on shape. I think the plan is to, you know, just go, go, go and grow, grow, grow where we're looking for this year, priorities are expand the product. I mentioned the breath of the product with new things PTC did recently. Another technology that they acquired for on shape. We did an acquisition. It was it was small, wasn't widely announced. It, um, in an area related to interfacing with electrical cad systems. So So we're doing We're expanding the breath of on shape. We're going Maura, depth in the areas were already in. We have enormous opportunity to add more features and functions that's in the product. Go to market. You mentioned it global global presence. That's something we were a little light on a year ago. Now we have a team. Dana may not even know what we have. A non shape, dedicated team in Barcelona, based in Barcelona but throughout Europe were doing multiple languages. Um, the academic program just introduced a new product into that space that z even fueling more success and growth there. Um, and of course, continuing to to invest in customer success and this Atlas platform story I keep mentioning, we're going to soon have We're gonna soon have four other major PTC brands shipping products on our Atlas Saas platform. And so we're really excited about that. That's good for the other PTC products. It's also good for on shape because now there's there's. There's other interesting products that are on shape customers can use take advantage of very easily using, say, a common log in conventions about user experience there, used to invest of all they're SAS based, so they that makes it easier to begin with. So that's some of the exciting things going on. I think you'll see PTC, um, expanding our lead in SAS based applications for this sector for our our target, uh, sectors not just in, um, in cat and data management, but another area. PTC's Big and his augmented reality with of euphoria, product line leader and industrial uses of a R. That's a whole other story we should do. A whole nother show augmented reality. But these products are amazing. You can you can help factory workers people on, uh, people who are left out of the digital transformation. Sometimes we're standing from machine >>all day. >>They can't be sitting like we are doing Zoom. They can wear a R headset in our tools, let them create great content. This is an area Dana is invested in other companies. But what I wanted to note is the new releases of our authoring software. For this, our content getting released this month, used through the Atlas platform, the SAS components of on shape for things like revision management and collaboration on duh workflow activity. All that those are tools that we're able to share leverage. We get a lot of synergy. It's just really good. It's really fun to have a good time. That's >>awesome. And then we're gonna be talking to John MacLean later about that. Let's do a little deeper Dive on that. And, Dana, what is your involvement today with with on shape? But you're looking for you know, which of their customers air actually adopting. And they're gonna disrupt their industries. And you get good pipeline from that. How do you collaborate today? >>That sounds like a great idea. Um, Aziz, John will tell you I'm constantly just asking him for advice and impressions of other entrepreneurs and picking his brain on ideas. No formal relationship clearly, but continue to count John and and John and other people in on shaping in the circle of experts that I rely on for their opinions. >>All right, so we have some questions from the crowd here. Uh, one of the questions is for the dream team. You know, John and Dana. What's your next next collective venture? I don't think we're there yet, are we? No. >>I just say, as Dana said, we love talking to her about. You know, Dana, you just returned the compliment. We would try and give you advice and the deals you're looking at, and I'm sort of casually mentoring at least one of your portfolio entrepreneurs, and that's been a lot of fun for May on, hopefully a value to them. But also Dana. We uran important pipeline to us in the world of some new things that are happening that we wouldn't see if you know you've shown us some things that you've said. What do you think of this business? And for us, it's like, Wow, it's cool to see that's going on And that's what's supposed to work in an ecosystem like this. So we we deeply value the ongoing relationship. And no, we're not starting something new. I got a lot of work left to do with what I'm doing and really happy. But we can We can collaborate in this way on other ventures. >>I like this question to somebody asking With the cloud options like on shape, Wilmore students have stem opportunities s Oh, that's a great question. Are you because of sass and cloud? Are you able to reach? You know, more students? Much more cost effectively. >>Yeah, Dave, I'm so glad that that that I was asked about this because Yes, and it's extremely gratified us. Yes, we are because of cloud, because on shape is the only full cloud full SAS system or industry were able to reach. Stem education brings able to be part of bringing step education to students who couldn't get it otherwise. And one of most gratifying gratifying things to me is the emails were getting from teachers, um, that that really, um, on the phone calls that were they really pour their heart out and say We're able to get to students in areas that have very limited compute resource is that don't have an I T staff where they don't know what computer that the students can have at home, and they probably don't even have a computer. We're talking about being able to teach them on a phone to have an android phone a low end android phone. You can do three D modeling on there with on shape. Now you can't do it any other system, but with on shape, you could do it. And so the teacher can say to the students, They have to have Internet access, and I know there's a huge community that doesn't even have Internet access, and we're not able, unfortunately to help that. But if you have Internet and you have even an android phone, we can enable the educator to teach them. And so we have case after case of saving a stem program or expanding it into the students that need it most is the ones we're helping here. So really excited about that. And we're also able to let in addition to the run on run on whatever computing devices they have, we also offer them the tools they need for remote teaching with a much richer experience. Could you teach solid works remotely? Well, maybe if the student ran it had a windows workstation. You know, big, big, high end workstation. Maybe it could, but it would be like the difference between collaborating with on shape and collaborate with solid works. Like the difference between a zoom video call and talking on the landline phone. You know, it's a much richer experience, and that's what you need. And stem teaching stem is hard, So yeah, we're super super. Um, I'm excited about bringing stem to more students because of cloud yond >>we're talking about innovation for good, and then the discussion, John, you just had it. Really? There could be a whole another vector here. We could discuss on diversity, and I wanna end with just pointing out. So, Dana, your new firm, it's a woman led firm, too. Two women leaders, you know, going forward. So that's awesome to see, so really? Yeah, thumbs up on that. Congratulations on getting that off the ground. >>Thank you. Thank you. >>Okay, so thank you guys. Really appreciate It was a great discussion. I learned a lot and I'm sure the audience did a swell in a moment. We're gonna talk with on shaped customers to see how they're applying tech for good and some of the products that they're building. So keep it right there. I'm Dave Volonte. You're watching innovation for good on the Cube, the global leader in digital tech event coverage. Stay right there. >>Oh, yeah, it's >>yeah, yeah, around >>the globe. It's the Cube presenting innovation for good. Brought to you by on shape. >>Okay, we're back. This is Dave Volonte and you're watching innovation for good. A program on Cuba 3 65 made possible by on shape of PTC company. We're live today really live tv, which is the heritage of the Cube. And now we're gonna go to the sources and talkto on shape customers to find out how they're applying technology to create real world innovations that are changing the world. So let me introduce our panel members. Rafael Gomez Furberg is with the Chan Zuckerberg bio hub. A very big idea. And collaborative nonprofit was initiative that was funded by Mark Zuckerberg and his wife, Priscilla Chan, and really around diagnosing and curing and better managing infectious diseases. So really timely topic. Philip Tabor is also joining us. He's with silver side detectors, which develops neutron detective detection systems. Yet you want to know if early, if neutrons and radiation or in places where you don't want them, So this should be really interesting. And last but not least, Matthew Shields is with the Charlottesville schools and is gonna educate us on how he and his team are educating students in the use of modern engineering tools and techniques. Gentlemen, welcome to the Cuban to the program. This should be really interesting. Thanks for coming on. >>Hi. Or pleasure >>for having us. >>You're very welcome. Okay, let me ask each of you because you're all doing such interesting and compelling work. Let's start with Rafael. Tell us more about the bio hub and your role there, please. >>Okay. Yeah. So you said that I hope is a nonprofit research institution, um, funded by Mark Zuckerberg and his wife, Priscilla Chan. Um, and our main mission is to develop new technologies to help advance medicine and help, hopefully cure and manage diseases. Um, we also have very close collaborations with Universe California, San Francisco, Stanford University and the University California Berkeley on. We tried to bring those universities together, so they collaborate more of biomedical topics. And I manage a team of engineers. They by joining platform. Um, and we're tasked with creating instruments for the laboratory to help the scientist boats inside the organization and also in the partner universities Do their experiments in better ways in ways that they couldn't do before >>in this edition was launched Well, five years ago, >>it was announced at the end of 2016, and we actually started operation with at the beginning of 2017, which is when I joined, um, So this is our third year. >>And how's how's it going? How does it work? I mean, these things take time. >>It's been a fantastic experience. Uh, the organization works beautifully. Um, it was amazing to see it grow From the beginning, I was employee number 12, I think eso When I came in, it was just a nem P office building and empty labs. And very quickly we had something running about. It's amazing eso I'm very proud of the work that we have done to make that possible. Um And then, of course, that's you mentioned now with co vid, um, we've been able to do a lot of very cool work attire being of the pandemic in March, when there was a deficit of testing, uh, capacity in California, we spun up a testing laboratory in record time in about a week. It was crazy. It was a crazy project, Um, but but incredibly satisfying. And we ended up running all the way until the beginning of November, when the lab was finally shut down. We could process about 3000 samples a day. I think at the end of it all, we were able to test about 100 on the order of 100 and 50,000 samples from all over the state. We were providing free testing toe all of the Department of Public Health Department of Public Health in California, which at the media pandemic, had no way to do testing affordably and fast. So I think that was a great service to the state. Now the state has created that testing system that would serve those departments. So then we decided that it was unnecessary to keep going with testing in the other biopsy that would shut down. >>All right. Thank you for that. Now, Now, Philip, you What you do is mind melting. You basically helped keep the world safe. Maybe describe a little bit more about silver sod detectors and what your role is there and how it all works. >>Tour. So we make a nuclear bomb detectors and we also make water detectors. So we try and do our part thio keep the world from blowing up and make it a better place at the same time. Both of these applications use neutron radiation detectors. That's what we make. Put them out by import border crossing places like that. They can help make sure that people aren't smuggling. Shall we say very bad things. Um, there's also a burgeoning field of research and application where you can use neutrons with some pretty cool physics to find water so you could do things. Like what? A detector up in the mountains and measure snowpack. Put it out in the middle of the field and measure soil moisture content. And as you might imagine, there's some really cool applications in, uh, research and agronomy and public policy for this. >>All right, so it's OK, so it's a It's much more than, you know, whatever fighting terrorism, it's there's a riel edge or I kind of i o t application for what you guys >>do. We do both its's to plowshares. You might >>say a mat. I I look at your role is kind of scaling the brain power for for the future. Maybe tell us more about Charlottesville schools and in the mission that you're pursuing and what you do. >>Thank you. Um, I've been in Charlottesville City schools for about 11 or 12 years. I started their teaching, um, a handful of classes, math and science and things like that. But Thescore board and my administration had the crazy idea of starting an engineering program about seven years ago. My background is an engineering is an engineering. My masters is in mechanical and aerospace engineering and um, I basically spent a summer kind of coming up with what might be a fun engineering curriculum for our students. And it started with just me and 30 students about seven years ago, Um, kind of a home spun from scratch curriculum. One of my goals from the outset was to be a completely project based curriculum, and it's now grown. We probably have about six or 700 students, five or six full time teachers. We now have pre engineering going on at the 5th and 6th grade level. I now have students graduating. Uh, you know, graduating after senior year with, like, seven years of engineering under their belt and heading off to doing some pretty cool stuff. So it's It's been a lot of fun building a program and, um, and learning a lot in the process. >>That's awesome. I mean, you know, Cuba's. We've been passionate about things like women in tech, uh, diversity stem. You know, not only do we need more, more students and stem, we need mawr underrepresented women, minorities, etcetera. We were just talking to John Herstek and integrate gration about this is Do you do you feel is though you're I mean, first of all, the work that you do is awesome, but but I'll go one step further. Do you feel as though it's reaching, um, or diverse base? And how is that going? >>That's a great question. I think research shows that a lot of people get funneled into one kind of track or career path or set of interests really early on in their educational career, and sometimes that that funnel is kind of artificial. And so that's one of the reasons we keep pushing back. Um, so our school systems introducing kindergartners to programming on DSO We're trying to push back how we expose students to engineering and to stem fields as early as possible. And we've definitely seen the first of that in my program. In fact, my engineering program, uh, sprung out of an after school in Extracurricular Science Club that actually three girls started at our school. So I think that actually has helped that three girls started the club that eventually is what led to our engineering programs that sort of baked into the DNA and also our eyes a big public school. And we have about 50% of the students are under the poverty line and we e in Charlottesville, which is a big refugee town. And so I've been adamant from Day one that there are no barriers to entry into the program. There's no test you have to take. You don't have to have be taking a certain level of math or anything like that. That's been a lot of fun. To have a really diverse set of kids enter the program and be successful, >>that's final. That's great to hear. So, Philip, I wanna come back to you. You know, I think about maybe some day we'll be able to go back to a sporting events, and I know when I when I'm in there, there's somebody up on the roof looking out for me, you know, watching the crowd, and they have my back. And I think in many ways, the products that you build, you know, our similar. I may not know they're there, but they're keeping us safe or they're measuring things that that that I don't necessarily see. But I wonder if you could talk about a little bit more detail about the products you build and how they're impacting society. >>Sure, so There are certainly a lot of people who are who are watching, trying to make sure things were going well in keeping you safe that you may or may not be aware of. And we try and support ah lot of them. So we have detectors that are that are deployed in a variety of variety of uses, with a number of agencies and governments that dio like I was saying, ports and border crossing some other interesting applications that are looking for looking for signals that should not be there and working closely to fit into the operations these folks do. Onda. We also have a lot of outreach to researchers and scientists trying to help them support the work they're doing. Um, using neutron detection for soil moisture monitoring is a some really cool opportunities for doing it at large scale and with much less, um, expense or complication than would have been done. Previous technologies. Um, you know, they were talking about collaboration in the previous segment. We've been able to join a number of conferences for that, virtually including one that was supposed to be held in Boston, but another one that was held out of the University of Heidelberg in Germany. And, uh, this is sort of things that in some ways, the pandemic is pushing people towards greater collaboration than they would have been able to do. Had it all but in person. >>Yeah, we did. Uh, the cube did live works a couple years ago in Boston. It was awesome show. And I think, you know, with this whole trend toward digit, I call it the Force march to digital. Thanks to cove it I think that's just gonna continue. Thio grow. Rafael. What if you could describe the process that you use to better understand diseases? And what's your organization's involvement? Been in more detail, addressing the cove in pandemic. >>Um, so so we have the bio be structured in, Um um in a way that foster so the combination of technology and science. So we have to scientific tracks, one about infectious diseases and the other one about understanding just basic human biology, how the human body functions, and especially how the cells in the human body function on how they're organized to create tissues in the body. On Ben, it has this set of platforms. Um, mind is one of them by engineering that are all technology rated. So we have data science platform, all about data analysis, machine learning, things like that. Um, we have a mass spectrometry platform is all about mass spectrometry technologies to, um, exploit those ones in service for the scientist on. We have a genomics platform that it's all about sequencing DNA and are gonna, um and then an advanced microscopy. It's all about developing technologies, uh, to look at things with advanced microscopes and developed technologies to marry computation on microscopy. So, um, the scientists set the agenda and the platforms, we just serve their needs, support their needs, and hopefully develop technologies that help them do their experiments better, faster, or allow them to the experiment that they couldn't do in any other way before. Um And so with cove, it because we have that very strong group of scientists that work on have been working on infectious disease before, and especially in viruses, we've been able to very quickly pivot to working on that s O. For example, my team was able to build pretty quickly a machine to automatically purified proteins on is being used to purify all these different important proteins in the cove. It virus the SARS cov to virus Onda. We're sending some of those purified proteins all over the world. Two scientists that are researching the virus and trying to figure out how to develop vaccines, understand how the virus affects the body and all that. Um, so some of the machines we built are having a very direct impact on this. Um, Also for the copy testing lab, we were able to very quickly develop some very simple machines that allowed the lab to function sort of faster and more efficiently. Sort of had a little bit of automation in places where we couldn't find commercial machines that would do it. >>Um, eso Matt. I mean, you gotta be listening to this and thinking about Okay, So someday your students are gonna be working at organizations like like, like Bio Hub and Silver Side. And you know, a lot of young people they're just don't know about you guys, but like my kids, they're really passionate about changing the world. You know, there's way more important than you know, the financial angles and it z e. I gotta believe you're seeing that you're right in the front lines there. >>Really? Um, in fact, when I started the curriculum six or seven years ago, one of the first bits of feedback I got from my students is they said Okay, this is a lot of fun. So I had my students designing projects and programming microcontrollers raspberry, PiS and order we nose and things like that. The first bit of feedback I got from students was they said Okay, when do we get to impact the world? I've heard engineering >>is about >>making the world a better place, and robots are fun and all, but, you know, where is the real impact? And so um, dude, yeah, thanks to the guidance of my students, I'm baking that Maurin. Now I'm like day one of engineering one. We talk about how the things that the tools they're learning and the skills they're gaining, uh, eventually, you know, very soon could be could be used to make the world a better place. >>You know, we all probably heard that famous line by Jeff Hammer Barker. The greatest minds of my generation are trying to figure out how to get people to click on ads. I think we're really generally generationally, finally, at the point where young students and engineering a really, you know, a passionate about affecting society. I wanna get into the product, you know, side and understand how each of you are using on shape and and the value that that it brings. Maybe Raphael, you could start how long you've been using it. You know, what's your experience with it? Let's let's start there. >>I begin for about two years, and I switched to it with some trepidation. You know, I was used to always using the traditional product that you have to install on your computer, that everybody uses that. So I was kind of locked into that. But I started being very frustrated with the way it worked, um, and decided to give on ship chance. Which reputation? Because any change always, you know, causes anxiety. Um, but very quickly my engineers started loving it, Uh, just because it's it's first of all, the learning curve wasn't very difficult at all. You can transfer from one from the traditional product to entree very quickly and easily. You can learn all the concepts very, very fast. It has all the functionality that we needed and and what's best is that it allows to do things that we couldn't do before or we couldn't do easily. Now we can access the our cat documents from anywhere in the world. Um, so when we're in the lab fabricating something or testing a machine, any computer we have next to us or a tablet or on iPhone, we can pull it up and look at the cad and check things or make changes. That's something that couldn't do before because before you had to pay for every installation off the software for the computer, and I couldn't afford to have 20 installations to have some computers with the cat ready to use them like once every six months would have been very inefficient. So we love that part. And the collaboration features are fantastic, especially now with Kobe, that we have to have all the remote meetings eyes fantastic, that you can have another person drive the cad while the whole team is watching that person change the model and do things and point to things that is absolutely revolutionary. We love it. The fact that you have very, very sophisticated version control before it was always a challenge asking people, please, if you create anniversary and apart, how do we name it so that people find it? And then you end up with all these collection of files with names that nobody ever remembers, what they are, the person left. And now nobody knows which version is the right one. A mess with on shape on the version ING system it has, and the fact that you can go back in history off the document and go back to previous version so easily and then go back to the press and version and explore the history of the part that is truly, um, just world changing for us, that we can do that so easily on for me as a manager to manage this collection of information that is critical for our operations. It makes it so much easier because everything is in one place. I don't have to worry about file servers that go down that I have to administer that have to have I t taken care off that have to figure how to keep access to people to those servers when they're at home, and they need a virtual private network and all of that mess disappears. I just simply give give a person in accounting on shape and then magically, they have access to everything in the way I want. And we can manage the lower documents and everything in a way that is absolutely fantastic. >>Feel what was your what? What were some of the concerns you had mentioned? You had some trepidation. Was it a performance? Was it security? You know some of the traditional cloud stuff, and I'm curious as to how, How, whether any of those act manifested really that you had to manage. What were your concerns? >>Look, the main concern is how long is it going to take for everybody in the team to learn to use the system like it and buy into it? Because I don't want to have my engineers using tools against their will write. I want everybody to be happy because that's how they're productive. They're happy, and they enjoyed the tools they have. That was my main concern. I was a little bit worried about the whole concept of not having the files in a place where I couldn't quote unquote seat in some server and on site, but that That's kind of an outdated concept, right? So that took a little bit of a mind shift, but very quickly. Then I started thinking, Look, I have a lot of documents on Google Drive. Like, I don't worry about that. Why would I worry about my cat on on shape, right? Is the same thing. So I just needed to sort of put things in perspective that way. Um, the other, um, you know, the concern was the learning curve, right? Is like, how is he Will be for everybody to and for me to learn it on whether it had all of the features that we needed. And there were a few features that I actually discussed with, um uh, Cody at on shape on, they were actually awesome about using their scripting language in on shape to sort of mimic some of the features of the old cat, uh, in on, shaped in a way that actually works even better than the old system. So it was It was amazing. Yeah, >>Great. Thank you for that, Philip. What's your experience been? Maybe you could take us through your journey within shape. >>Sure. So we've been we've been using on shaped silver side for coming up on about four years now, and we love it. We're very happy with it. We have a very modular product line, so we make anything from detectors that would go into backpacks. Two vehicles, two very large things that a shipping container would go through and saw. Excuse me. Shape helps us to track and collaborate faster on the design. Have multiple people working a same time on a project. And it also helps us to figure out if somebody else comes to us and say, Hey, I want something new how we congrats modules from things that we already have put them together and then keep track of the design development and the different branches and ideas that we have, how they all fit together. A za design comes together, and it's just been fantastic from a mechanical engineering background. I will also say that having used a number of different systems and solid works was the greatest thing since sliced bread. Before I got using on shape, I went, Wow, this is amazing and I really don't want to design in any other platform. After after getting on Lee, a little bit familiar with it. >>You know, it's funny, right? I'll have the speed of technology progression. I was explaining to some young guns the other day how I used to have a daytime er and that was my life. And if I lost that daytime, er I was dead. And I don't know how we weigh existed without, you know, Google maps eso we get anywhere, I don't know, but, uh but so So, Matt, you know, it's interesting to think about, you know, some of the concerns that Raphael brought up, you hear? For instance, you know, all the time. Wow. You know, I get my Amazon bill at the end of the month that zip through the roof in, But the reality is that Yeah, well, maybe you are doing more, but you're doing things that you couldn't have done before. And I think about your experience in teaching and educating. I mean, you so much more limited in terms of the resource is that you would have had to be able to educate people. So what's your experience been with With on shape and what is it enabled? >>Um, yeah, it was actually talking before we went with on shape. We had a previous CAD program, and I was talking to my vendor about it, and he let me know that we were actually one of the biggest CAD shops in the state. Because if you think about it a really big program, you know, really big company might employ. 5, 10, 15, 20 cad guys, right? I mean, when I worked for a large defense contractor, I think there were probably 20 of us as the cad guys. I now have about 300 students doing cat. So there's probably more students with more hours of cat under their belt in my building than there were when I worked for the big defense contractor. Um, but like you mentioned, uh, probably our biggest hurdle is just re sources. And so we want We want one of things I've always prided myself and trying to do in this. Programs provide students with access two tools and skills that they're going to see either in college or in the real world. So it's one of the reason we went with a big professional cad program. There are, you know, sort of K 12 oriented software and programs and things. But, you know, I want my kids coding and python and using slack and using professional type of tools on DSO when it comes to cat. That's just that That was a really hurt. I mean, you know, you could spend $30,000 on one seat of, you know, professional level cad program, and then you need a $30,000 computer to run it on if you're doing a heavy assemblies, Um and so one of my dreams And it was always just a crazy dream. And I was the way I would always pitcher in my school system and say, someday I'm gonna have a kid on a school issued chromebook in subsidized housing, on public WiFi doing professional level bad and that that was a crazy statement until a couple of years ago. So we're really excited that I literally and you know, March and you said the forced march, the forced march into, you know, modernity, March 13th kids sitting in my engineering lab that we spent a lot of money on doing cad March 14th. Those kids were at home on their school issued chromebooks on public WiFi, uh, keeping their designs going and collaborating. And then, yeah, I could go on and on about some of the things you know, the features that we've learned since then they're even better. So it's not like this is some inferior, diminished version of Academy. There's so much about it. Well, I >>wanna I wanna ask you that I may be over my skis on this, but we're seeing we're starting to see the early days of the democratization of CAD and product design. It is the the citizen engineer, I mean, maybe insulting to the engineers in the room, But but is that we're beginning to see that >>I have to believe that everything moves into the cloud. Part of that is democratization that I don't need. I can whether you know, I think artists, you know, I could have a music studio in my basement with a nice enough software package. And Aiken, I could be a professional for now. My wife's a photographer. I'm not allowed to say that I could be a professional photographer with, you know, some cloud based software, and so, yeah, I do think that's part of what we're seeing is more and more technology is moving to the cloud. >>Philip. Rafael Anything you Dad, >>I think I mean, yeah, that that that combination of cloud based cat and then three d printing that is becoming more and more affordable on ubiquitous It's truly transformative, and I think for education is fantastic. I wish when I was a kid I had the opportunity to play with those kinds of things because I was always the late things. But, you know, the in a very primitive way. So, um, I think this is a dream for kids. Teoh be able to do this. And, um, yeah, there's so many other technologies coming on, like Arduino on all of these electronic things that live kids play at home very cheaply with things that back in my day would have been unthinkable. >>So we know there's a go ahead. Philip, please. >>We had a pandemic and silver site moved to a new manufacturing facility this year. I was just on the shop floor, talking with contractors, standing 6 ft apart, pointing at things. But through it all, our CAD system was completely unruffled. Nothing stopped in our development work. Nothing stopped in our support for existing systems in the field. We didn't have to think about it. We had other server issues, but none with our, you know, engineering cad, platform and product development in support world right ahead, which was cool, but also a in that's point. I think it's just really cool what you're doing with the kids. The most interesting secondary and college level engineering work that I did was project based, taken important problem to the world. Go solve it and that is what we do here. That is what my entire career has been. And I'm super excited to see. See what your students are going to be doing, uh, in there home classrooms on their chromebooks now and what they do building on that. >>Yeah, I'm super excited to see your kids coming out of college with engineering degrees because, yeah, I think that Project based experience is so much better than just sitting in a classroom, taking notes and doing math problems on day. I think it will give the kids a much better flavor. What engineering is really about Think a lot of kids get turned off by engineering because they think it's kind of dry because it's just about the math for some very abstract abstract concept on they are there. But I think the most important thing is just that hands on a building and the creativity off, making things that you can touch that you can see that you can see functioning. >>Great. So, you know, we all know the relentless pace of technology progression. So when you think about when you're sitting down with the folks that on shape and there the customer advisor for one of the things that that you want on shape to do that it doesn't do today >>I could start by saying, I just love some of the things that does do because it's such a modern platform. And I think some of these, uh, some some platforms that have a lot of legacy and a lot of history behind them. I think we're dragging some of that behind them. So it's cool to see a platform that seemed to be developed in the modern era, and so that Z it is the Google docks. And so the fact that collaboration and version ing and link sharing is and like platform agnostic abilities, the fact that that seems to be just built into the nature of the thing so far, That's super exciting. As far as things that, uh, to go from there, Um, I don't know, >>Other than price. >>You can't say >>I >>can't say lower price. >>Yeah, so far on P. D. C. S that work with us. Really? Well, so I'm not complaining. There you there, >>right? Yeah. Yeah. No gaps, guys. Whitespace, Come on. >>We've been really enjoying the three week update. Cadence. You know, there's a new version every three weeks and we don't have to install it. We just get all the latest and greatest goodies. One of the trends that we've been following and enjoying is the the help with a revision management and release work flows. Um, and I know that there's more than on shape is working on that we're very excited for, because that's a big important part about making real hardware and supporting it in the field. Something that was cool. They just integrated Cem markup capability. In the last release that took, we were doing that anyway, but we were doing it outside of on shapes. And now we get to streamline our workflow and put it in the CAD system where We're making those changes anyway when we're reviewing drawings and doing this kind of collaboration. And so I think from our perspective, we continue to look forward. Toa further progress on that. There's a lot of capability in the cloud that I think they're just kind of scratching the surface on you, >>right? I would. I mean, you're you're asking to knit. Pick. I would say one of the things that I would like to see is is faster regeneration speed. There are a few times with convicts, necessities that regenerating the document takes a little longer than I would like. It's not a serious issue, but anyway, I I'm being spoiled, >>you know? That's good. I've been doing this a long time, and I like toe ask that question of practitioners and to me, it It's a signal like when you're nit picking and that's what you're struggling to knit. Pick that to me is a sign of a successful product, and and I wonder, I don't know, uh, have the deep dive into the architecture. But are things like alternative processors. You're seeing them hit the market in a big way. Uh, you know, maybe helping address the challenge, But I'm gonna ask you the big, chewy question now. Then we maybe go to some audience questions when you think about the world's biggest problems. I mean, we're global pandemics, obviously top of mind. You think about nutrition, you know, feeding the global community. We've actually done a pretty good job of that. But it's not necessarily with the greatest nutrition, climate change, alternative energy, the economic divides. You've got geopolitical threats and social unrest. Health care is a continuing problem. What's your vision for changing the world and how product innovation for good and be applied to some of the the problems that that you all are passionate about? Big question. Who wants toe start? >>Not biased. But for years I've been saying that if you want to solve the economy, the environment, uh, global unrest, pandemics, education is the case. If you wanna. If you want to, um, make progress in those in those realms, I think funding funding education is probably gonna pay off pretty well. >>Absolutely. And I think Stam is key to that. I mean, all of the ah lot of the well being that we have today and then industrialized countries. Thanks to science and technology, right improvements in health care, improvements in communication, transportation, air conditioning. Um, every aspect of life is touched by science and technology. So I think having more kids studying and understanding that is absolutely key. Yeah, I agree, >>Philip, you got anything to add? >>I think there's some big technical problems in the world today, Raphael and ourselves there certainly working on a couple of them. Think they're also collaboration problems and getting everybody to be able to pull together instead of pulling separately and to be able to spur the ideas on words. So that's where I think the education side is really exciting. What Matt is doing and it just kind of collaboration in general when we could do provide tools to help people do good work. Uh, that is, I think, valuable. >>Yeah, I think that's a very good point. And along those lines, we have some projects that are about creating very low cost instruments for low research settings, places in Africa, Southeast Asia, South America, so that they can do, um, um, biomedical research that it's difficult to do in those place because they don't have the money to buy the fancy lab machines that cost $30,000 an hour. Um, so we're trying to sort of democratize some of those instruments. And I think thanks to tools like Kahn shape then is easier, for example, to have a conversation with somebody in Africa and show them the design that we have and discuss the details of it with them on. But it's amazing, right to have somebody, you know, 10 time zones away, Um, looking really life in real time with you about your design and discussing the details or teaching them how to build a machine, right? Because, um, you know, they have a three D printer. You can you can just give them the design and say like, you build it yourself, uh, even cheaper than and, you know, also billing and shipping it there. Um, so all that that that aspect of it is also super important. I think for any of these efforts to improve some of the hardest part was in the world for climate change. Do you say, as you say, poverty, nutrition issues? Um, you know, availability of water. You have that project at about finding water. Um, if we can also help deploy technologies that teach people remotely how to create their own technologies or how to build their own systems that will help them solve those forms locally. I think that's very powerful. >>Yeah, the point about education is right on. I think some people in the audience may be familiar with the work of Erik Brynjolfsson and Andrew McAfee, the second machine age where they sort of put forth the premise that, uh, is it laid it out. Look, for the first time in history, machines air replacing humans from a cognitive perspective. Machines have always replaced humans, but that's gonna have an impact on jobs. But the answer is not toe protect the past from the future. The answer is education and public policy that really supports that. So I couldn't agree more. I think it's a really great point. Um, we have We do have some questions from the audience. If if we could If I can ask you guys, um, you know, this one kind of stands out. How do you see artificial intelligence? I was just talking about machine intelligence. Um, how do you see that? Impacting the design space guys trying to infuse a I into your product development. Can you tell me? >>Um, absolutely, like, we're using AI for some things, including some of these very low cost instruments that will hopefully help us diagnose certain diseases, especially this is that are very prevalent in the Third World. Um, and some of those diagnostics are these days done by thes armies of technicians that are trained to look under the microscope. But, um, that's a very slow process. Is very error prone and having machine learning systems that can to the same diagnosis faster, cheaper and also little machines that can be taken to very remote places to these villages that have no access to a fancy microscope. To look at a sample from a patient that's very powerful. And I we don't do this, but I have read quite a bit about how certain places air using a Tribune attorneys to actually help them optimize designs for parts. So you get these very interesting looking parts that you would have never thought off a person would have never thought off, but that are incredibly light ink. Earlier, strong and I have all sort of properties that are interesting thanks to artificial intelligence machine learning in particular >>yet another. The advantage you get when when your work is in the cloud I've seen. I mean, there's just so many applications that so if the radiology scan is in the cloud and the radiologist is goes to bed at night, Radiologist could come in in the morning and and say, Oh, the machine while you were sleeping was using artificial intelligence to scan these 40,000 images. And here's the five that we picked out that we think you should take a closer look at. Or like Raphael said, I can design my part. My, my, my, my, my you know, mount or bracket or whatever and go to sleep. And then I wake up in the morning. The machine has improved. It for me has made it strider strider stronger and lighter. Um And so just when your when your work is in the cloud, that's just that's a really cool advantage that you get that you can have machines doing some of your design work for you. >>Yeah, we've been watching, uh, you know, this week is this month, I guess is AWS re invent and it's just amazing to see how much effort is coming around machine learning machine intelligence. You know Amazon has sage maker Google's got, you know, embedded you no ML and big query. Uh, certainly Microsoft with Azure is doing tons of stuff and machine learning. I think the point there is that that these things will be infused in tow R and D and in tow software product by the vendor community. And you all will apply that to your business and and build value through the unique data that your collecting, you know, in your ecosystems. And and that's how you add value. You don't have to be necessarily, you know, developers of artificial intelligence, but you have to be practitioners to apply that. Does that make sense to you, Philip? >>Yeah, absolutely. And I think your point about value is really well chosen. We see AI involved from the physics simulations all the way up to interpreting radiation data, and that's where the value question, I think, is really important because it's is the output of the AI giving helpful information that the people that need to be looking at it. So if it's curating a serious of radiation alert, saying, Hey, like these air the anomalies. You need to look at eyes it, doing that in a way that's going to help a good response on. In some cases, the II is only as good as the people. That sort of gave it a direction and turn it loose. And you want to make sure that you don't have biases or things like that underlying your AI that they're going to result in less than helpful outcomes coming from it. So we spend quite a lot of time thinking about how do we provide the right outcomes to people who are who are relying on our systems? >>That's a great point, right? Humans air biased and humans build models, so models are inherently biased. But then the software is hitting the market. That's gonna help us identify those biases and help us, you know? Of course. Correct. So we're entering Cem some very exciting times, guys. Great conversation. I can't thank you enough for spending the time with us and sharing with our audience the innovations that you're bringing to help the world. So thanks again. >>Thank you so much. >>Thank you. >>Okay. Welcome. Okay. When we come back, John McElheny is gonna join me. He's on shape. Co founder. And he's currently the VP of strategy at PTC. He's gonna join the program. We're gonna take a look at what's next and product innovation. I'm Dave Volonte and you're watching innovation for good on the Cube, the global leader. Digital technology event coverage. We'll be right back. >>Okay? Okay. Yeah. Okay. >>From around >>the globe, it's the Cube. Presenting innovation for good. Brought to you by on shape. >>Okay, welcome back to innovation. For good. With me is John McElheny, who is one of the co founders of On Shape and is now the VP of strategy at PTC. John, it's good to see you. Thanks for making the time to come on the program. Thanks, Dave. So we heard earlier some of the accomplishments that you've made since the acquisition. How has the acquisition affected your strategy? Maybe you could talk about what resource is PTC brought to the table that allowed you toe sort of rethink or evolve your strategy? What can you share with us? >>Sure. You know, a year ago, when when John and myself met with Jim Pepperman early on is we're we're pondering. Started joining PTC one of things became very clear is that we had a very clear shared vision about how we could take the on shape platform and really extended for, for all of the PTC products, particular sort of their augmented reality as well as their their thing works or the i o. T business and their product. And so from the very beginning there was a clear strategy about taking on shape, extending the platform and really investing, um, pretty significantly in the product development as well as go to market side of things, uh, toe to bring on shape out to not only the PTC based but sort of the broader community at large. So So So PTC has been a terrific, terrific, um, sort of partner as we've we've gonna go on after this market together. Eso We've added a lot of resource and product development side of things. Ah, lot of resource and they go to market and customer success and support. So, really, on many fronts, that's been both. Resource is as well a sort of support at the corporate level from from a strategic standpoint and then in the field, we've had wonderful interactions with many large enterprise customers as well as the PTC channels. So it's been really a great a great year. >>Well, and you think about the challenges of in your business going to SAS, which you guys, you know, took on that journey. You know, 78 years ago. Uh, it's not trivial for a lot of companies to make that transition, especially a company that's been around as long as PTC. So So I'm wondering how much you know, I was just asking you How about what PCP TC brought to the table? E gotta believe you're bringing a lot to the table to in terms of the mindset, uh, even things is, is mundane is not the right word, but things like how you compensate salespeople, how you interact with customers, the notion of a service versus a product. I wonder if you could address >>that. Yeah, it's a it's a really great point. In fact, after we had met Jim last year, John and I one of the things we walked out in the seaport area in Boston, one of things we sort of said is, you know, Jim really gets what we're trying to do here and and part of let me bring you into the thinking early on. Part of what Jim talked about is there's lots of, you know, installed base sort of software that's inside of PTC base. That's helped literally thousands of customers around the world. But the idea of moving to sass and all that it entails both from a technology standpoint but also a cultural standpoint. Like How do you not not just compensate the sales people as an example? But how do you think about customer success? In the past, it might have been that you had professional services that you bring out to a customer, help them deploy your solutions. Well, when you're thinking about a SAS based offering, it's really critical that you get customers successful with it. Otherwise, you may have turned, and you know it will be very expensive in terms of your business long term. So you've got to get customers success with software in the very beginning. So you know, Jim really looked at on shape and he said that John and I, from a cultural standpoint, you know, a lot of times companies get acquired and they've acquired technology in the past that they integrate directly into into PTC and then sort of roll it out through their products, are there just reached channel, he said. In some respects, John John, think about it as we're gonna take PTC and we want to integrate it into on shape because we want you to share with us both on the sales side and customer success on marketing on operations. You know all the things because long term, we believe the world is a SAS world, that the whole industry is gonna move too. So really, it was sort of an inverse in terms of the thought process related to normal transactions >>on That makes a lot of sense to me. You mentioned Sharon turns the silent killer of a SAS company, and you know, there's a lot of discussion, you know, in the entrepreneurial community because you live this, you know what's the best path? I mean today, You see, you know, if you watch Silicon Valley double, double, triple triple, but but there's a lot of people who believe, and I wonder, if you come in there is the best path to, you know, in the X Y axis. If if it's if it's uh, growth on one and retention on the other axis. What's the best way to get to the upper right on? Really? The the best path is probably make sure you've nailed obviously the product market fit, But make sure that you can retain customers and then throw gas on the fire. You see a lot of companies they burn out trying to grow too fast, but they haven't figured out, you know that. But there's too much churn. They haven't figured out those metrics. I mean, obviously on shape. You know, you were sort of a pioneer in here. I gotta believe you've figured out that customer retention before you really, You know, put the pedal to the >>metal. Yeah, and you know, growth growth can mask a lot of things, but getting getting customers, especially the engineering space. Nobody goes and sits there and says, Tomorrow we're gonna go and and, you know, put 100 users on this and and immediately swap out all of our existing tools. These tools are very rich and deep in terms of capability, and they become part of the operational process of how a company designs and builds products. So any time anybody is actually going through the purchasing process. Typically, they will run a try along or they'll run a project where they look at. Kind of What? What is this new solution gonna help them dio. How are we gonna orient ourselves for success? Longer term. So for us, you know, getting new customers and customer acquisition is really critical. But getting those customers to actually deploy the solution to be successful with it. You know, we like to sort of, say, the marketing or the lead generation and even some of the initial sales. That's sort of like the Kindle ing. But the fire really starts when customers deploy it and get successful. The solution because they bring other customers into the fold. And then, of course, if they're successful with it, you know, then in fact, you have negative turn which, ironically, means growth in terms of your inside of your install. Bates. >>Right? And you've seen that with some of the emerging, you know, SAS companies, where you're you're actually you know, when you calculate whatever its net retention or renew ALS, it's actually from a dollar standpoint. It's up in the high nineties or even over 100%. >>So >>and that's a trend we're gonna continue. See, I >>wonder >>if we could sort of go back. Uh, and when you guys were starting on shape, some of the things that you saw that you were trying to strategically leverage and what's changed, you know, today we were talking. I was talking to John earlier about in a way, you kinda you kinda got a blank slate is like doing another startup. >>You're >>not. Obviously you've got installed base and customers to service, but But it's a new beginning for you guys. So one of the things that you saw then you know, cloud and and sas and okay, but that's we've been there, done that. What are you seeing? You know today? >>Well, you know, So So this is a journey, of course, that that on shape on its own has gone through it had I'll sort of say, you know, several iterations, both in terms of of of, you know, how do you How do you get customers? How do you How do you get them successful? How do you grow those customers? And now that we've been part of PTC, the question becomes okay. One, There is certainly a higher level of credibility that helps us in terms of our our megaphone is much bigger than it was when we're standalone company. But on top of that now, figuring out how to work with their channel with their direct sales force, you know, they have, um, for example, you know, very large enterprises. Well, many of those customers are not gonna go in forklift out their existing solution to replace it with with on shape. However, many of them do have challenges in their supply chain and communications with contractors and vendors across the globe. And so, you know, finding our fit inside of those large enterprises as they extend out with their their customers is a very interesting area that we've really been sort of incremental to to PTC. And then, you know, they they have access to lots of other technology, like the i o. T business. And now, of course, the augmented reality business that that we can bring things to bear. For example, in the augmented reality world, they've they've got something called expert capture. And this is essentially imagine, you know, in a are ah, headset that allows you to be ableto to speak to it, but also capture images still images in video. And you could take somebody who's doing their task and capture literally the steps that they're taking its geo location and from their builds steps for new employees to be, we'll learn and understand how todo use that technology to help them do their job better. Well, when they do that, if there is replacement products or variation of of some of the tools that that they built the original design instruction set for they now have another version. Well, they have to manage multiple versions. Well, that's what on shape is really great at doing and so taking our technology and helping their solutions as well. So it's not only expanding our customer footprint, it's expanding the application footprint in terms of how we can help them and help customers. >>So that leads me to the tam discussion and again, as part of your strategist role. How do you think about that? Was just talking to some of your customers earlier about the democratization of cat and engineering? You know, I kind of joked, sort of like citizen engineering, but but so that you know, the demographics are changing the number of users potentially that can access the products because the it's so much more of a facile experience. How are you thinking about the total available market? >>It really is a great question, You know, it used to be when you when you sold boxes of software, it was how many engineers were out there. And that's the size of the market. The fact that matter is now when, When you think about access to that information, that data is simply a pane of glass. Whether it's a computer, whether it's a laptop, UH, a a cell phone or whether it's a tablet, the ability to to use different vehicles, access information and data expands the capabilities and power of a system to allow feedback and iteration. I mean, one of the one of the very interesting things is in technology is when you can take something and really unleash it to a larger audience and builds, you know, purpose built applications. You can start to iterate, get better feedback. You know there's a classic case in the clothing industry where Zara, you know, is a fast sort of turnaround. Agile manufacturer. And there was a great New York Times article written a couple years ago. My wife's a fan of Zara, and I think she justifies any purchases by saying, You know, Zara, you gotta purchase it now. Otherwise it may not be there the next time. Yet you go back to the store. They had some people in a store in New York that had this woman's throw kind of covering Shaw. And they said, Well, it would be great if we could have this little clip here so we can hook it through or something. And they sent a note back toe to the factory in Spain, and literally two weeks later they had, you know, 4000 of these things in store, and they sold out because they had a closed loop and iterative process. And so if we could take information and allow people access in multiple ways through different devices and different screens, that could be very specific information that, you know, we remove a lot of the engineering data book, bring the end user products conceptually to somebody that would have had to wait months to get the actual physical prototype, and we could get feedback well, Weaken have a better chance of making sure whatever product we're building is the right product when it ultimately gets delivered to a customer. So it's really it's a much larger market that has to be thought of rather than just the kind of selling A boxes software to an engineer. >>That's a great story. And again, it's gonna be exciting for you guys to see that with. The added resource is that you have a PTC, Um, so let's talk. I promise people we wanna talk about Atlas. Let's talk about the platform. A little bit of Atlas was announced last year. Atlas. For those who don't know it's a SAS space platform, it purports to go beyond product lifecycle management and you You're talking cloud like agility and scale to CAD and product design. But John, you could do a better job than I. What do >>we need to know about Atlas? Well, I think Atlas is a great description because it really is metaphorically sort of holding up all of the PTC applications themselves. But from the very beginning, when John and I met with Jim, part of what we were intrigued about was that he shared a vision that on shape was more than just going to be a cad authoring tool that, in fact, you know, in the past these engineering tools were very powerful, but they were very narrow in their purpose and focus. And we had specialty applications to manage the versions, etcetera. What we did in on shape is we kind of inverted that thinking. We built this collaboration and sharing engine at the core and then kind of wrap the CAD system around it. But that collaboration sharing and version ING engine is really powerful. And it was that vision that Jim had that he shared that we had from the beginning, which was, how do we take this thing to make a platform that could be used for many other applications inside of inside of any company? And so not only do we have a partner application area that is is much like the APP store or Google play store. Uh, that was sort of our first Stan Shih ation of this. This this platform. But now we're extending out to broader applications and much meatier applications. And internally, that's the thing works in the in the augmented reality. But there'll be other applications that ultimately find its way on top of this platform. And so they'll get all the benefits of of the collaboration, sharing the version ing the multi platform, multi device. And that's an extremely extremely, um, strategic leverage point for the company. >>You know, it's interesting, John, you mentioned the seaport before. So PTC, for those who don't know, built a beautiful facility down at the Seaport in Boston. And, of course, when PTC started, you know, back in the mid 19 eighties, there was nothing at the seaport s. >>So it's >>kind of kind of ironic, you know, we were way seeing the transformation of the seaport. We're seeing the transformation of industry and of course, PTC. And I'm sure someday you'll get back into that beautiful office, you know? Wait. Yeah, I'll bet. And, uh and but I wanna bring this up because I want I want you to talk about the future. How you how you see that our industry and you've observed this has moved from very product centric, uh, plat platform centric with sass and cloud. And now we're seeing ecosystems form around those products and platforms and data flowing through the ecosystem powering, you know, new innovation. I wonder if you could paint a picture for us of what the future looks like to you from your vantage point. >>Yeah, I think one of the key words you said there is data because up until now, data for companies really was sort of trapped in different applications. And it wasn't because people were nefarious and they want to keep it limited. It was just the way in which things were built. And, you know, when people use an application like on shape, what ends up happening is there their day to day interaction and everything that they do is actually captured by the platform. And, you know, we don't have access to that data. Of course it's it's the customer's data. But as as an artifact of them using the system than doing their day to day job, what's happening is they're creating huge amounts of information that can then be accessed and analyzed to help them both improve their design process, improve their efficiencies, improve their actual schedules in terms of making sure they can hit delivery times and be able to understand where there might be roadblocks in the future. So the way I see it is companies now are deploying SAS based tools like on shape and an artifact of them. Using that platform is that they have now analytics and tools to better understand and an instrument and manage their business. And then from there, I think you're going to see, because these systems are all you know extremely well. Architected allow through, you know, very structured AP. I calls to connect other SAS based applications. You're gonna start seeing closed loop sort of system. So, for example, people design using on shape, they end up going and deploying their system or installing it, or people use the end using products. People then may call back into the customers support line and report issues, problems, challenges. They'll be able to do traceability back to the underlying design. They'll be able to do trend analysis and defect analysis from the support lines and tie it back and closed loop the product design, manufacture, deployment in the field sort of cycles. In addition, you can imagine there's many things that air sort of as designed. But then when people go on site and they have to install it. There's some alterations modifications. Think about think about like a large air conditioning units for buildings. You go and you go to train and you get a large air conditioning unit that put up on top of building with a crane. They have to build all kinds of adaptors to make sure that that will fit inside of the particulars of that building. You know, with on shape and tools like this, you'll be able to not only take the design of what the air conditioning system might be, but also the all the adapter plates, but also how they installed it. So it sort of as designed as manufactured as stalled. And all these things can be traced, just like if you think about the transformation of customer service or customer contacts. In the early days, you used to have tools that were PC based tools called contact management solution, you know, kind of act or gold mine. And these were basically glorified Elektronik role in Texas. It had a customer names and they had phone numbers and whatever else. And Salesforce and Siebel, you know, these types of systems really broadened out the perspective of what a customer relationship? Waas. So it wasn't just the contact information it was, you know, How did they come to find out about you as a company? So all of the pre sort of marketing and then kind of what happens after they become a customer and it really was a 3 60 view. I think that 3 60 view gets extended to not just to the customers, but also tools and the products they use. And then, of course, the performance information that could come back to the manufacturer. So, you know, as an engineer, one of the things you learn about with systems is the following. And if you remember, when the CD first came out CDs that used to talk about four times over sampling or eight times over sampling and it was really kind of, you know, the fidelity the system. And we know from systems theory that the best way to improve the performance of a system is to actually have more feedback. The more feedback you have, the better system could be. And so that's why you get 16 60 for example, etcetera. Same thing here. The more feedback we have of different parts of a company that a better performance, The company will be better customer relationships. Better, uh, overall financial performance as well. So that's that's the view I have of how these systems all tied together. >>It's a great vision in your point about the data is I think right on. It used to be so fragmented in silos, and in order to take a system view, you've gotta have a system view of the data. Now, for years, we've optimized maybe on one little component of the system and that sometimes we lose sight of the overall outcome. And so what you just described, I think is, I think sets up. You know very well as we exit. Hopefully soon we exit this this covert era on John. I hope that you and I can sit down face to face at a PTC on shape event in the near term >>in the seaport in the >>seaport would tell you that great facility toe have have an event for sure. It >>z wonderful >>there. So So John McElhinney. Thanks so much for for participating in the program. It was really great to have you on, >>right? Thanks, Dave. >>Okay. And I want to thank everyone for participating. Today we have some great guest speakers. And remember, this is a live program. So give us a little bit of time. We're gonna flip this site over toe on demand mode so you can share it with your colleagues and you, or you can come back and and watch the sessions that you heard today. Uh, this is Dave Volonte for the Cube and on shape PTC. Thank you so much for watching innovation for good. Be well, Have a great holiday. And we'll see you next time. Yeah.

>>Bye from San Francisco. It's the cube covering RSA conference, 2020 San Francisco brought to you by Silicon angle media. >>Hey, welcome back. Everyone's keeps coverage here in San Francisco at the Moscone center for RSA conference 2020 I'm John, your host, as cybersecurity goes to the next generation as the new cloud scale, cyber threats are out there, the real impact a company's business and society will be determined by the industry. This technology and the people that a cube alumni here, caramel Jaffer, SVP, senior vice president of strategy and corporate development for iron net. Welcome back. Thanks to Shawn. Good to be here. Thanks for having so iron net FC general Keith Alexander and you got to know new CEO of there. Phil Welsh scaler and duo knows how to scale up a company. He's right. Iron is doing really well. The iron dome, the vision of collaboration and signaling. Congratulations on your success. What's a quick update? >> Well look, I mean, you know, we have now built the capability to share information across multiple companies, multiple industries with the government in real time at machine speed. >>Really bringing people together, not just creating collected security or clip to defense, but also collaborating real time to defend one another. So you're able to divide and conquer Goliath, the enemy the same way they come after you and beat them at their own game. >> So this is the classic case of offense defense. Most corporations are playing defense, whack-a-mole, redundant, not a lot of efficiencies, a lot of burnout. Exactly. Not a lot of collaboration, but everyone's talking about the who the attackers are and collaborating like a team. Right? And you guys talk about this mission. Exactly. This is really the new way to do it. It has, the only way it works, >> it is. And you know, you see kids doing it out there when they're playing Fortnite, right? They're collaborating in real time across networks, uh, to, you know, to play a game, right? You can imagine that same construct when it comes to cyber defense, right? >>There's no reason why one big company, a second big company in a small company can't work together to identify all the threats, see that common threat landscape, and then take action on it. Trusting one another to take down the pieces they have folk to focus on and ultimately winning the battle. There's no other way a single company is gonna be able defend itself against a huge decency that has virtually unlimited resources and virtually unlimited human capital. And you've got to come together, defend across multiple industries, uh, collectively and collaboratively. >> Do you mean, we talked about this last time and I want to revisit this and I think it's super important. I think it's the most important story that's not really being talked about in the industry. And that is that we were talking last time about the government protects businesses. If someone dropped troops on the ground in your neighborhood, the government would protect you digitally. >>That's not happening. So there's really no protection for businesses. Do they build their own militia? Do they build their own army? Who was going to, who's going to be their heat shield? So this is a big conversation and a big, it brings a question. The role of the government. We're going to need a digital air force. We're going to need a digital army, Navy, Navy seals. We need to have that force, and this has to be a policy issue, but in the short term, businesses and individuals are sitting out there being attacked by sophisticated mission-based teams of hackers and nation States, right? Either camouflaging or hiding, but attacking still. This is a huge issue. What's going on? Are people talking about this in D C well, >> John, look not enough. People are talking about it, right? And forget DC. We need to be talking about here, out here in the Silicon Valley with all these companies here at the RSA floor and bring up the things you're bringing up because this is a real problem we're facing as a nation. >>The Russians aren't coming after one company, one state. They're coming after our entire election infrastructure. They're coming after us as a nation. The Chinese maybe come after one company at a time, but their goal is to take our electoral properties, a nation, repurpose it back home. And when the economic game, right, the Iranians, the North Koreans, they're not focused on individual actors, but they are coming after individual actors. We can't defend against those things. One man, one woman, one company on an Island, one, one agency, one state. We've got to come together collectively, right? Work state with other States, right? If we can defend against the Russians, California might be really good at it. Rhode Island, small States can be real hard, defends against the Russians, but if California, Rhode Island come together, here's the threats. I see. Here's what it's. You see share information, that's great. Then we collaborate on the defense and work together. >>You take these threats, I'll take those threats and now we're working as a team, like you said earlier, like those kids do when they're playing fortnight and now we're changing the game. Now we're really fighting the real fight. >> You know, when I hear general Keith Alexander talking about his vision with iron net and what you guys are doing, I'm inspired because it's simply put, we have a mission to protect our nation, our people, and a good businesses, and he puts it into kind of military, military terms, but in reality, it's a simple concept. Yeah, we're being attacked, defend and attack back. Just basic stuff. But to make it work as the sharing. So I got to ask you, I'm first of all, I love the, I love what he has, his vision. I love what you guys are doing. How real are we? What's the progression? >>Where are we on the progress bar of that vision? Well, you know, a lot's changed to the last year and a half alone, right? The threats gotten a lot, a lot more real to everybody, right? Used to be the industry would say to us, yeah, we want to share with the government, but we want something back for, right. We want them to show us some signal to today. Industry is like, look, the Chinese are crushing us out there, right? We can beat them at a, at some level, but we really need the governor to go do its job too. So we'll give you the information we have on, on an anonymized basis. You do your thing. We're going to keep defending ourselves and if you can give us something back, that's great. So we've now stood up in real time of DHS. We're sharing with them huge amounts of data about what we're seeing across six of the top 10 energy companies, some of the biggest banks, some of the biggest healthcare companies in the country. >>Right? In real time with DHS and more to come on that more to come with other government agencies and more to come with some our partners across the globe, right? Partners like those in Japan, Singapore, Eastern Europe, right? Our allies in the middle East, they're all the four lenses threat. We can bring their better capability. They can help us see what's coming at us in the future because as those enemies out there testing the weapons in those local areas. I want to get your thoughts on the capital markets because obviously financing is critical and you're seeing successful venture capital formulas like forge point really specialized funds on cyber but not classic industry formation sectors. Like it's not just security industry are taking a much more broader view because there's a policy implication is that organizational behavior, this technology up and down the stack. So it's a much broad investment thesis. >>What's your view of that? Because as you do, you see that as a formula and if so, what is this new aperture or this new lens of investing to be successful in funding? Companies will look, it's really important what companies like forge point are doing. Venture capital funds, right? Don Dixon, Alberta Pez will land. They're really innovating here. They've created a largest cybersecurity focused fund. They just closed the recently in the world, right? And so they really focus on this industry. Partners like, Kleiner Perkins, Ted Schlein, Andrea are doing really great work in this area. Also really important capital formation, right? And let's not forget other funds. Ron Gula, right? The founder of tenable started his own fund out there in DC, in the DMV area. There's a lot of innovation happening this country and the funding on it's critical. Now look, the reality is the easy money's not going to be here forever, right? >>It's the question is what comes when that inevitable step back. We don't. Nobody likes to talk about it. I said the guy who who bets on the other side of the craps game in Vegas, right? You don't wanna be that guy, but let's be real. I mean that day will eventually come. And the question is how do you bring some of these things together, right? Bring these various pieces together to really create long term strategies, right? And that's I think what's really innovative about what Don and Alberto are doing is they're building portfolio companies across a range of areas to create sort of an end to end capability, right? Andrea is doing things like that. Ted's doing stuff like that. It's a, that's really innovation. The VC market, right? And we're seeing increased collaboration VC to PE. It's looking a lot more similar, right? And now we're seeing innovative vehicles like stacks that are taking some of these public sort of the reverse manner, right? >>There's a lot of interests. I've had to be there with Hank Thomas, the guys chief cyber wrenches. So a lot of really cool stuff going on in the financing world. Opportunities for young, smart entrepreneurs to really move out in this field and to do it now. And money's still silver. All that hasn't come as innovation on the capital market side, which is awesome. Let's talk about the ecosystem in every single market sector that I've been over, my 30 year career has been about a successful entrepreneurship check, capital two formation of partnerships. Okay. You're on the iron net, front lines here. As part of that ecosystem, how do you see the ecosystem formula developing? Is it the same kind of model? Is it a little bit different? What's your vision of the ecosystem? Look, I mean partnerships channel, it's critical to every cyber security company. You can't scale on your own. >>You've got to do it through others, right? I was at a CrowdStrike event the other day. 91% of the revenue comes from the channel. That's an amazing number. You think about that, right? It's you look at who we're trying to talk about partnering with. We're talking about some of the big cloud players. Amazon, Microsoft, right? Google, right on the, on the vendor side. Pardon me? Splunk crashes, so these big players, right? We want to build with them, right? We want to work with them because there's a story to tell here, right? When we were together, the AECOS through self is defendant stronger. There's no, there's no anonymity here, right? It's all we bring a specialty, you bring specialty, you work together, you run out and go get the go get the business and make companies safer. At the end of the day, it's all about protecting the ecosystem. What about the big cloud player? >>Cause he goes two big mega trends. Obviously cloud computing and scale, right? Multi-cloud on the horizon, hybrids, kind of the bridge between single public cloud and multi-cloud and then AI you've got the biggies are generally will be multiple generations of innovation and value creation. What's your vision on the impact of the big waves that are coming? Well, look, I mean cloud computing is a rate change the world right? Today you can deploy capability and have a supercomputer in your fingertips in in minutes, right? You can also secure that in minutes because you can update it in real time. As the machine is functioning, you have a problem, take it down, throw up a new virtual machine. These are amazing innovations that are creating more and more capability out there in industry. It's game changing. We're happy, we're glad to be part of that and we ought to be helping defend that new amazing ecosystem. >>Partnering with companies like Microsoft. They didn't AWS did, you know, you know, I'm really impressed with your technical acumen. You've got a good grasp of the industry, but also, uh, you have really strong on the societal impact policy formulation side of government and business. So I want to get your thoughts for the young kids out there that are going to school, trying to make sense of the chaos that's going on in the world, whether it's DC political theater or the tech theater, big tech and in general, all of the things with coronavirus, all this stuff going on. It's a, it's a pretty crazy time, but a lot of work has to start getting done that are new problems. Yeah. What is your advice as someone who's been through the multiple waves to the young kids who have to figure out what half fatigue, what problems are out there, what things can people get their arms around to work on, to specialize in? >>What's your, what's your thoughts and expertise on that? Well, John, thanks for the question. What I really like about that question is is we're talking about what the future looks like and here's what I think the future looks like. It's all about taking risks. Tell a lot of these young kids out there today, they're worried about how the world looks right? Will America still be strong? Can we, can we get through this hard time we're going through in DC with the world challenges and what I can say is this country has never been stronger. We may have our own troubles internally, but we are risk takers and we always win. No matter how hard it gets them out of how bad it gets, right? Risk taking a study that's building the American blood. It's our founders came here taking a risk, leaving Eagle to come here and we've succeeded the last 200 years. >>There is no question in my mind that trend will continue. So the young people out there, I don't know what the future has to hold. I don't know if the new tape I was going to be, but you're going to invent it. And if you don't take the risks, we're not succeed as a nation. And that's what I think is key. You know, most people worry that if they take too many risks, they might not succeed. Right? But the reality is most people you see around at this convention, they all took risks to be here. And even when they had trouble, they got up, they dust themselves off and they won. And I believe that everybody in this country, that's what's amazing about the station is we have this opportunity to, to try, if we fail to get up again and succeed. So fail fast, fail often, and crush it. >>You know, some of the best innovations have come from times where you had the cold war, you had, um, you had times where, you know, the hippie revolution spawn the computer. So you, so you have the culture of America, which is not about regulation and stunting growth. You had risk-taking, you had entrepreneurship, but yet enough freedom for business to operate, to solve new challenges, accurate. And to me the biggest imperative in my mind is this next generation has to solve a lot of those new questions. What side of the street is the self driving cars go on? I see bike lanes in San Francisco, more congestion, more more cry. All this stuff's going on. AI could be a great enabler for that. Cyber security, a direct threat to our country and global geopolitical landscape. These are big problems. State and local governments, they're not really tech savvy. They don't really have a lot ID. >>So what do they do? How do they serve their, their constituents? You know, look John, these are really important and hard questions, but we know what has made technology so successful in America? What's made it large, successful is the governor state out of the way, right? Industry and innovators have had a chance to work together and do stuff and change the world, right? You look at California, you know, one of the reasons California is so successful and Silicon Valley is so dynamic. You can move between jobs and we don't enforce non-compete agreements, right? Because you can switch jobs and you can go to that next higher value target, right? That shows the value of, you know, innovation, creating innovation. Now there's a real tendency to say, when we're faced with challenges, well, the government has to step in and solve that problem, right? The Silicon Valley and what California's done, what technology's done is a story about the government stayed out and let innovators innovate, and that's a real opportunity for this nation. >>We've got to keep on down that path, even when it seemed like the easier answer is, come on in DC, come on in Sacramento, fix this problem for us. We have demonstrated as a country that Americans and individual are good at solve these problems. We should allow them to do that and innovate. Yeah. One of my passions is to kind of use technology and media to end communities to get to the truth faster. A lot of, um, access to smart minds out there, but young minds, young minds, uh, old minds, young minds though. It's all there. You gotta get the data out and that's going to be a big thing. That's the, one of the things that's changing is the dark arts of smear campaigns. The story of Bloomberg today, Oracle reveals funding for dark money, group biting, big tech internet accountability projects. Um, and so the classic astroturfing get the Jedi contract, Google WASU with Java. >>So articles in the middle of all this, but using them as an illustrative point. The lawyers seem to be running the kingdom right now. I know you're an attorney, so I'm recovering, recovering. I don't want to be offensive, but entrepreneurship cannot be stifled by regulation. Sarbanes Oxley slowed down a lot of the IPO shifts to the latest stage capital. So regulation, nest and every good thing. But also there's some of these little tactics out in the shadows are going to be revealed. What's the new way to get this straightened out in your mind? We'll look, in my view, the best solution for problematic speech or pragmatic people is more speech, right? Let's shine a light on it, right? If there are people doing shady stuff, let's talk about it's an outfit. Let's have it out in the open. Let's fight it out. At the end of the day, what America's really about is smart ideas. >>Winning. It's a, let's get the ideas out there. You know, we spent a lot of time, right now we're under attack by the Russians when it comes to our elections, right? We spent a lot of time harping at one another, one party versus another party. The president versus that person. This person who tells committee for zap person who tells committee. It's crazy when the real threat is from the outside. We need to get past all that noise, right? And really get to the next thing which is we're fighting a foreign entity on this front. We need to face that enemy down and stop killing each other with this nonsense and turn the lights on. I'm a big believer of if something can be exposed, you can talk about it. Why is it happening exactly right. This consequences with that reputation, et cetera. You got it. >>Thanks for coming on the queue. Really appreciate your insight. Um, I want to just ask you one final question cause you look at, look at the industry right now. What is the most important story that people are talking about and what is the most important story that people should be talking about? Yeah. Well look, I think the one story that's out there a lot, right, is what's going on in our politics, what's going on in our elections. Um, you know, Chris Krebs at DHS has been out here this week talking a lot about the threat that our elections face and the importance about States working with one another and States working with the federal government to defend the nation when it comes to these elections in November. Right? We need to get ahead of that. Right? The reality is it's been four years since 2016 we need to do more. That's a key issue going forward. What are the Iranians North Koreans think about next? They haven't hit us recently. We know what's coming. We got to get ahead of that. I'm going to come again at a nation, depending on staff threat to your meal. Great to have you on the QSO is great insight. Thanks for coming on sharing your perspective. I'm John furrier here at RSA in San Francisco for the cube coverage. Thanks for watching.

>>from our studios in the heart of Silicon Valley, Palo Alto, California It is a cute conversation. >>Hey, welcome back already, Jeffrey. Here with the cue, we're in our pal Amato Studios for acute conversation or excited, have ah, many Time Cube alone. I has been at all types of companies. He's moving around. We like to keep him close because he's got a great feel for what's going on. And now he's starting a new adventure. Eso really happy to welcome Alan Cohen back to the studio. Only great to see you. >>Hey, Draft, how are you >>in your new adventure? Let's get it right. It's the D C v c your partner. So this is ah, on the venture side. I'm gonna dark. You've gone to the dark side of the money side That is not a new firm, dark side. You know what's special about this town of money adventure right now, but you guys kind of have a special thesis. So tell us about yeah, and I think you've spoken >>to Matt and Zack. You know my partners in the past, So D. C. V. C is been in the venture business for about a decade and, um, you know, the 1st 5 years, the fund was very much focused on building, ah, lot of the infrastructure that we kind of take for granted. No things have gone into V m wear and into Citrix, and it's AWS, and hence the data collect of the D. C out of D. C. V. C. Really, the focus of the firm in the last five years and going forward is an area we call deep tech, which think about more about the intersection of science and engineering so less about. How do you improve the IittIe infrastructure? But how do you take all this computational power and put it to work in in specific industries, whether it's addressing supply chains, new forms of manufacturing, new forms of agriculture. So we're starting to see all that all the stuff that we've built our last 20 years and really apply it against kind of industrial transformation. So and we're excited. We just raise the $725 million fund. So we I got a little bit of ammunition to work with, >>Congratulate says, It's fun. Five. That's your eighth fund. Yeah, and really, it's consistent with where we're seeing all the time about applied a I and applied machine. Exactly. Right in New York, a company that's gonna build a I itt s'more the where you applying a i within an application, Where you applying machine, learning within what you do. And then you can just see the applications grow exactly right. Or are you targeting specific companies that are attacking a particular industrial focus and just using a eyes, their secret sauce or using deep taxes or secret uh, all of the above? Right. So, like I >>did when I think about D c v c like it's like so don't think about, um, I ops or throughput Orban with think about, um uh, rockets, robots, microbes, building blocks of effectively of human life and and of materials and then playing computational power and a I against those areas. So a little bit, you know, different focus. So, you know, it's the intersection of compute really smart computer science, but I'll give you a great example of something. It would be a little bit different. So we are investors and very active in a company called Pivot Bio, which is not exactly a household name. Pivot bio is a company that is replacing chemical fertilizer with microbes. And what I mean by that is they create microbes they used. So they've used all this big data and a I and computational power to construct microbes that when you plant corn, you insert the microbe into the planting cycle and it continuously produces nitrogen, which means you don't have to apply fertilizer. Right? Which fertilizer? Today in the U. S. A. $212 billion industry and two things happen. One you don't have. All of the runoff doesn't leech into the ground. The nitrous does. Nitrogen doesn't go into the air, and the crop yield has been a being been between about 12 and 15% higher. Right? >>Is it getting put? You know, the food industry is such a great place, and there's so many opportunities, both in food production. This is like beyond a chemical fertilizer instead of me. But it's great, but it's funny because you think of GMO, right? So all food is genetically modified. It's just It took a long time in the past because you had to get trees together, and yet you replant the pretty apples and throw the old apple trees away. Because if you look at an apple today versus an apple 50 years, 100 years, right, very, very different. And yet when we apply a man made kind of acceleration of that process than people, you know, kind of pushed back Well, this is this is not this is not nature, So I'm just curious in, in, in in, Well, this is like a microbe, you know? You know, they actually it is nature, right? So nature. But there'll be some crazy persons that wait, This is not, you know, you're introducing some foreign element into Well, you could take >>potash and pour it on corn. Or you could create a use, a microbe that creates nitrogen. So which one is the chemical on which one is nature, >>right, That that's why they get out. It's a funny part of that conversation, but but it's a different area. So >>you guys look, you guys spent a lot of time on the road. You talked a lot of startups. You talked a lot of companies. You actually talked to venture capitalists and most of the time where you know, we're working on the $4 trillion I t sector, not an insignificant sector, right? So that's globally. It's that's about the size of the economy. You know, manufacturing, agriculture and health care is more like 20 to $40 billion of the economy. So what we've also done is open the aperture to areas that have not gone through the technical disruption that we've seen an I t. Right now in these industries. And that's what's that mean? That's why I joined the firm. That's why I'm really excited, because on one hand you're right. There is a lot of cab you mentioned we were talking before. There is a lot of capital in venture, but there's not a CZ much targeted at the's area. So you have a larger part of global economy and then a much more of specific focus on it. >>Yeah, I think it's It's such a you know, it's kind of the future's here kind of the concept because no one knows, you know, the rate of which tech is advancing across all industries currently. And so that's where you wake up one day and you're like, Oh, my goodness, you know, look at the impacts on transportation. Look at the impacts on construction of the impacts on health care. Look at the impacts on on agriculture. So the opportunity is fantastic and still following the basic ideas of democratizing data. Not using a sample of old data but using, you know, real time analytics on hold data sets. You know, all these kind of concepts that come over really, really well to a more commercial application in a nightie application. Yeah. So, Jeff, I'm kind of like >>looking over your shoulder. And I'm looking at Tom Friedman's book The world is flat. And you know, if we think about all of us have been kind of working on the Internet for the last 20 years, we've done some amazing things like we've democratized information, right? Google's fairly powerful part of our lives. We've been able to allow people to buy things from all over the world and ship it. So we've done a lot of amazing things in the economy, but it hasn't been free. So if I need a 2032 c r. 20 to 32 battery for my key fob for my phone, and I buy it from Amazon and it comes in a big box. Well, there's a little bit of a carbon footprint issue that goes with that. So one of our key focus is in D. C V. C, which I think is very unique, is we think two things can happen is that weaken deal with some of the excess is over the economy that we built and as well as you know, unlock really large profit pulls. At the end of the day, you know, it has the word Venture Patrol says the word capital, right? And so we have limited partners. They expect returns. We're doing this obviously, to build large franchises. So this is not like this kind of political social thing is that we have large parts of the economy. They were not sustainable. And I'll give you some examples. Actually, you know, Jeff Bezos put out a pledge last week to try to figure out how to turn Amazon carbon neutral. >>Pretty amazing thing >>right with you from the was the richest person Now that half this richest person in the world, right? But somebody who has completely transformed the consumer economy as well as computing a comedy >>and soon transportation, right? So people like us are saying, Hey, >>how can we help Jeff meet his pledge? Right? And like, you know, there are things that we work on, like, you know, next generation of nuclear plants. Like, you know, we need renewables. We need solar, but there's no way to replace electricity. The men electricity, we're gonna need to run our economy and move off of coal and natural gas, Right? So, you know, being able to deal with the climate impacts, the social impacts are going to be actually some of the largest economic opportunities. But you can look at it and say, Hey, this is a terrible problem. It's ripping people across. I got caught in a traffic jam in San Francisco yesterday upon the top of the hill because there was climate protest, right? And you know, so I'm not kind of judging the politics of that. We could have a long conversation about that. The question is, how do you deal with these real issues, right and obviously and heady deal with them profitably and ethically, and I think that something is very unique about you know, D. C. V. C's focus and the ability to raise probably the largest deep tech fund ever to go after. It means that you know, a lot of people who back us also see the economic opportunity. And at the end of day there, you know, a lot of our our limited partners, our pension funds, you know, in universities, like, you know, there was a professor who has a pension fund who's gotta retire, right? So a little bit of that money goes into D C V C. So we have a responsibility to provide a return to them as well as go after these very interesting opportunities. >>So is there any very specific kind of investment thesis or industry focus Or, you know, kind of a subset within, you know, heavy lifting technology and science and math. That's a real loaded question in front of that little. So we like problems >>that can be solved through massive computational capability. And so and that reflects our heritage and where we all came from, right, you and I, and folks in the industry. So, you know, we're not working at the intersection of lab science at at a university, but we would take something like that and invest in it. So we like you know we have a lot of lessons in agriculture and health care were, surprisingly, one of the largest investors in space. We have investments and rocket labs, which is the preferred launch vehicle for any small satellite under two and 1/2 kilograms. We are large investors and planet labs, which is a constellation of 200 small satellites over investors and compel a space. So, uh, well, you know, we like space, and, you know, it's not space for the sake of space. It's like it's about geospatial intelligence, right? So Planet Labs is effectively the search engine for the planet Earth, right? They've been effectively Google for the planet, right? Right. And all that information could be fed to deal with housing with transportation with climate change. Um, it could be used with economic activity with shipping. So, you know, we like those kinds of areas where that technology can really impact and in the street so and so we're not limited. But, you know, we also have a bio fund, so we have, you know, we're like, you know, we like agriculture and said It's a synthetic biology types of investments and, you know, we've still invest in things like cyber we invest in physical security were investors and evolve, which is the lead system for dealing with active shooters and venues. Israel's Fordham, which is a drone security company. So, um, but they're all built on a Iot and massive >>mess. Educational power. I'm just curious. Have you private investment it if I'm tree of a point of view because you got a point of view. Most everything on the way. Just hear all this little buzz about Quantum. Um, you know, a censure opened up their new innovation hub in the Salesforce tower of San Francisco, and they've got this little dedicated kind of quantum computer quanta computer space. And regardless of how close it is, you know there's some really interesting computational opportunities last challenges that we think will come with some period of time so we don't want them in encryption and leather. We have lost their quantum >>investments were in literally investors and Righetti computing. Okay, on control, cue down in Australia, so no, we like quantum. Now, Quantum is a emerging area like it's we're not quite at the X 86 level of quantum. We have a little bit of work to get there, but it offers some amazing, you know, capabilities. >>One thing >>that also I think differentiates us. And I was listening to What you're saying is we're not afraid. The gold long, I mean a lot of our investments. They're gonna be between seven and 15 years, and I think that's also it's very different if you follow the basic economics adventure. Most funds are expected to be about 10 years old, right? And in the 1st 3 or four years, you do the bulk of the preliminary investing, and then you have reserves traditional, you know, you know, the big winners emerged that you can continue to support the companies, some of ours, they're going to go longer because of what we do. And I think that's something very special. I'm not. Look, we'd like to return in life of the fun. Of course, I mean, that's our do share a responsibility. But I think things like Quantum some of these things in the environment. They're going to take a while, and our limited partners want to be in that long ride. Now we have a thesis that they will actually be bigger economic opportunities. They'll take longer. So by having a dedicated team dedicated focus in those areas, um, that gives us, I think, a unique advantage, one of one of things when we were launching the fund that we realized is way have more people that have published scientific papers and started companies than NBA's, um, in the firm. So we are a little bit, you know, we're a little G here. That >>that's good. I said a party one time when I was talking to this guy. You were not the best people at parties we don't, but it is funny. The guy was He was a VC in medical medical tech, and I didn't ask him like So. Are you like a doctor? Did you work in a hospital where you worked at A at a university that doesn't even know I was investment banker on Wall Street and Michael, that's that's how to make money move. But do you have? Do you have the real world experience of being in the trenches? Were Some of these applications are being used, but I'm also curious. Where do you guys like to come in? ABC? What's your well, sweets? Traditionally >>we are have been a seed in Siri's. A investor would like to be early. >>Okay, Leader, follow on. Uh, everybody likes the lead, right? Right, right, right. You know what? Your term feet, you >>know? Yeah, right. And you have to learn howto something lead. Sometimes you follow. So we you know, we do both. Okay, Uh, there are increasing as because of the size of the fund. We will have the opportunity to be a little bit more multi stage than we traditionally are known for doings. Like, for example, we were seed investors in little companies, like conflict an elastic that worked out. Okay, But we were not. Later stage right. Investors and company likes companies like that with the new fund will more likely to also be in the later stages as well for some of the big banks. But we love seed we love. Precede. We'd like three guys in in a dog, right? If they have a brilliant >>tough the 7 50 to work when you're investing in the three guys in a dog and listen well and that runs and runs and you know you >>we do things we call experiments. Just you know, uh, we >>also have >>a very unique asset. We don't talk about publicly. We have a lot of really brilliant people around the firm that we call equity partners. So there's about 60 leaning scientists and executives around the world who were also attached to the firm. They actually are, have a financial stake in the firm who work with us. That gives us the ability to be early Now. Clearly, if you put in a $250,000 seed investment you don't put is the same amount of time necessarily as if you just wrote a $12 million check. What? That's the traditional wisdom I found. We actually work. Address this hard on. >>Do you have any? Do you have any formal relationships within the academic institutions? How's that >>work? Well, well, I mean, we work like everybody else with Stanford in M I t. I mean, we have many universities who are limited partners in the fund. You know, I'll give you an example of So we helped put together a company in Canada called Element A I, which actually just raised $150 million they, the founder of that company is Ah, cofounder is a fellow named Joshua Benji. Oh, he was Jeff Hinton's phD student. Him in the Vatican. These guys invented neural networks ing an a I and this company was built at a Yasha his position at the University of Montreal. There, 125 PhDs and a I that work at this firm. And so we're obviously deeply involved. Now, the Montreal A icing, my child is one of the best day I scenes in the world and cool food didn't and oh, yeah, And well, because of you, Joshua, because everybody came out of his leg, right? So I think, Yes, I think so. You know, we've worked with Carnegie Mellon, so we do work with a lot of universities. I would, I would say his university's worked with multiple venture firm Ah, >>such an important pipeline for really smart, heavy duty, totally math and tech tech guys. All right, May, that's for sure. Yeah, you always one that you never want to be the smartest guy in the room, right, or you're in the wrong room is what they say you said is probably >>an equivalent adventure. They always say you should buy the smallest house in the best neighborhood. Exactly. I was able to squeeze its PCB sees. I'm like, the least smart technical guy in the smartest technical. There >>you go. That's the way to go. All right, Alan. Well, thanks for stopping by and we look forward. Thio, you bring in some of these exciting new investment companies inside the key, right? Thanks for the time. Alright. He's Alan. I'm Jeff. You're watching the Cube. We're Interpol about the studios. Thanks for watching. We'll see you next time.

>> from Cambridge, Massachusetts. It's three Cube covering M. I T. Chief data officer and information quality Symposium 2019. Brought to you by Silicon Angle Media. >> Welcome back to M I. T. CDO I Q everybody, you're watching the cube we got. We go out to the events we extract the signal from the noise is day one of this conference. Chief Data Officer event. I'm Dave, along with my co host, Paul Gillen. Stuart Bond is here is a research director of International Data Corporation I DC Stewart. Welcome to the Cube. Thanks for coming on. Thank you for having me. You're very welcome. So your space data intelligence tell us about your swim lane? Sure. >> So my role it I. D. C is a ZAY. Follow the data integration and data intelligence software market. So I follow all the different vendors in the market. I look at what kinds of solutions they're bringing to market, what kinds of problems. They're solving both business and technical for their clients. And so I can then report on the trends and market sizes, forecasts and such, And within that part of what I what I cover is everything from data integration which is more than traditionally E T l change data capture data movements, data, virtualization types of technologies as well as what we call date integrity of one. And I'm calling data intelligence, which is all of the Tell the metadata about the data. It's the data catalogs meditating management's data lineage. It's the data quality data profiling, master data intelligence. It's all of the data about the data and understanding really answering what I call a entering the five W's and h of data. It's the who, what, where, when, why and how. Data. So that's the market that I'm covering and following, and that's why I'm >> here. Were you here this morning for Mark Ramsey's Yes, I talk. So he kind of went to you. Heard it started with the D W kind of through E T L under the bus. Well, MGM, then the Enterprise data model said all that failed. But that stuff's not going away, and I'm sure they're black. So still using, you know, all those all that tooling today. So what was your reaction to that you were not in your head and yeah, it's true or saying, Well, maybe there's a little we'll have what we've been saying. The mainframe is gonna go away for years and >> still around, so I think they're obviously there's still those technologies out there and they're still being used. You can look at any of the major dtl vendors and there's new ones coming to the market, so that's still alive and well. There's no doubt that it's out there and its biggest segment of the market that I followed. So there's no source tooling, right? Yes, >> there's no doubt that it's still >> there. But Mark's vision of where things are going, where things are heading with, with data intelligence really being at the Cory talk about those spiders talked about that central depository of information about knowledge of the data. That's where things are heading to, whether you call it a data hub, whether you call it a date, a platform, not really a one big, huge data pop for one big, huge data depository, but one a place where you can go to get the information but natives you can find out where the data is. You could find out what it means, both the business context as well as the technical information you find out who's using that data. You can find out when it's being used, Why it's being used in. Why do we even have it and how it should >> be used? So it's being used >> appropriately. So you would say that his vision, actually what he implemented was visionary skating. They skated to the puck, so to speak, and that's we're going >> to see more of that. Where are seeing more of that? That's why we've seen such a jump in the number of vendors that air providing data catalogue solutions. I did, Uh, I d. C has this work product calling market glance. I did that >> beginning of 2018. >> I just did it again. In the middle of this year, the number of vendors that offer data catalogue solutions has significantly interest 240% increase in the number of vendors that offer that now itself of a small base. These air, not exhaustive studies. It may be that I didn't know about all those data catalogue vendors a year and 1/2 ago, but may also be that people are now saying that we've got a data catalogue, >> but you've really got a >> peel back the layers a little bit. Understand what these different data catalysts are and what they're doing because not all of them are crediting. >> We'll hear Radar. You don't know about it. 99% of the world mark talked this morning about some interesting new technologies. They were using Spider Ring to find the data bots to classify the data tools wrangle the data. I mean, there's a lot of new technology being applied to this area. What? Which of those technologies do you think has the greatest promise right now? And how? How how automated can this process become? >> It's the spider ring, and it's the cataloging of the data. It's understanding what you've got out there that is growing crazy. Just started to track that it's growing a lot that has the most promised. And as I said, I think that's going to be the data platform in the future. Is the intelligence knowing about where your data is? You men go on, get it. You know it's not a matter of all. The data is one place anymore. Data's everywhere Date is in hybrid cloud. It's in on premise. It's in private. Cloud isn't hosted. It's everywhere. I just did a survey. I got the results back in June 2019 just a month ago, and the data is all over the place. So really having that knowledge having that intelligence about where your data is, that has the most promise. As faras, the automation is concerned. Next step there. It's not just about collecting the information about where your data is, but it's actually applying the analytics, the machine learning and the artificial intelligence to that metadata collection that you've got so that you can then start to create those bots to create those pipelines to start to automate those tasks. We're starting to see some vendors move in that area, moving that direction. There's a lot of promise there >> you guys, at least when I remember. You see, the software is pretty robust taxonomy. I'm sure it's evolved over the years. So how do you sort of define your space? I'm interested in How big is that space, you know, in terms of market size and is a growing and where do you see it going? >> Right. So my my coverage of data integration and data intelligence is fairly small. It's a small, little marketed. I D. C. I'm part of a larger team that looks a data management, the analytics and information management. So we've got people on our team like a damn vessel. Who covers the analytics? Advanced Analytics show Nautical Palo Carlson. He's been on the cable covers, innovative technologies, those I apologize. I don't have that number off the top. >> Okay, No, But your space, my space is it. That's that Software market is so fragmented. And what I d. C has always done well, as you put people on those fragments and you know, deep in there. So So how you've been ableto not make your eyes bleed when you do that, challenging so the data and put it all together. >> It's important. Integration markets about 66 and 1/2 1,000,000,000 >> dollars. Substantial size. Yeah, but again, a lot of vendors Growing number of events in the markets growing, >> the market continues to grow as the data is becoming more distributed, more dispersed. There's no need to continue to integrate that data. There's also that need that growing >> need for that date intelligence. It's not >> just, you know, we've had a lot of enquiries lately about data being fed into machine learning artificial intelligence and people realizing our data isn't clean. We have to clean up our data because we're garbage in garbage. Out is probably more important now than ever before because you don't have someone saying, I don't think that day is right. You've got machines were looking at data instead. The technology that's out there and the problem with data quality. It's on a new problem. It's the same problem we've had for years. All of the technology is there to clean that data up, and that's a part of what I saw. I look at the data quality vendors experience here, sink sort in all of the other data quality capabilities that you get from in from Attica, from Tahoe or from a click podium. Metal is there, and so that part is growing. And there's a lot of more interest in that data quality and that data intelligence side again so the right data can be used. Good data can be used to trust in that data. Can the increase we used for the right reasons as well That's adding that context. Understand that Samantha having all that metadata that goes around that data so that could be used. Most of >> it is one of those markets that you may be relatively small. It's not 100,000,000,000 but it it enables a lot of larger markets. So okay, so it's 66 and 1/2 1,000,000,000 it's growing. It is a growing single digits, double digits. It's growing. It's hovering around the double dip double. It is okay, it's 10%. And then and then who were the, You know, big players who was driving the shares there? Is there a dominant player there? Bunch of >> so infirm. Atticus Number one in the market. Okay, followed by IBM. And I say peas right up there. Sass is there. Tell End is making a good Uh, okay, they're making a nice with Yeah, but there there's a number of different players. There's There's a lot of different players in that market. >> And in the leading market share player has what, 10%? 15%? 50%? Is it like a dominant divine spot? That's tough to say. You got a big It's over 1,000,000,000,000,000,000 right? So they've got maybe 1/6 of the market. Okay, so but it's not like Cisco as 2/3 of the networking market or anything like that. And what about the cloud guys? A participating in this guy's deal with >> the cloud guys? Yeah, the ClA got so there are some pure cloud solutions. There's a relative, for example. Pure cloud MBM mastered a management there. There's I'd say there's less pure cloud than there used to be. But, you know, but someone like an infra matic is really pushing that clouds presence in that cloud >> running these tools, this tooling in in the cloud But the cloud guys directly or not competing at this >> point. So Amazon Google? Yes, Those cloud guys. Yes. Okay, there, there. Google announced data flow back in our data. Sorry. Data fusion back. Google. >> Yeah, that's right. >> And so there they've got an e t l two on the cloud now. Ah, Amazon has blue yet which is both a catalog and an e t l tool. Microsoft course has data factory in azure. >> So those guys are coming on. I'm guessing if you talk to in dramatic and they said, Well, they're not as robust as we are. And we got a big install base and we go multi cloud is that kind of posturing of the incumbents or yeah, that's posturing. And maybe that's I don't mean it is a pejorative. If I were, those guys would be doing the same thing. You know, we were talking earlier about how the cloud guys essentially killed the Duke. All right, do you Do you see the same thing happening here, or is it well, the will the tool vendors be able to stay ahead in your view, >> depends on how they execute. If they're there and they're available in the cloud along with along with those clapper viers, they're able to provide solutions in the same same way the same elasticity, the same type of consumption based pricing models that pod vendors air offering. They can compete with that. They still have a better solution. Easton What >> in multi cloud in hybrid is a big part of their value problems that the cloud guys aren't really going hard after. I mean, this sort of dangling your toe in the water, some of them some of the >> cloud guys they have. They have the hybrid capabilities because they've got some of what they're what they built comes from on premises, worlds as well. So they've got that ability. Microsoft in particular >> on Google, >> Google that the data fusion came out of >> You're saying, But it's part of the Antos initiative. Er, >> um, I apologize. Folks are watching, >> but soup of acronyms notices We're starting a little bit. What tools have you seen or technology? Have you seen making governance of unstructured data? That looks promising? Uh, so I don't really cover >> the instructor data space that much. What I can say is Justus in the structure data world. It's about the metadata. It's about having the proper tags about that unstructured data. It's about getting the information of that unstructured data so that it can then be governed appropriately, making structure out of that, that is, I can't really say, because I don't cover that market explicitly. But I think again it comes back to the same type of data intelligence having that intelligence about that data by understanding what's in there. >> What advice are you giving to, you know, the buyers in your community and the sellers in your community, >> So the buyer's within the market. I talk a lot about that. The need for that data intelligence, so data governance to me is not a technology you can't go by data governance data governance is an organizational disappoint. Technology is a part of that. To me, the data intelligence technology is a part of that. So, really, organizations, if they really want a good handle, get a good handle on what data they have, how to use that, how to be enabled by that data. They need to have that date intelligence into go look for solutions that can help him pull that data intelligence out. But the other part of that is measurement. It's critical to measure because you can't improve what you're not measuring. So you know that type of approach to it is critical Eve, and you've got to be able to have people in the organization. You've got to be able to have cooperation collaboration across the business. I t. The the gifted office chief Officer office. You've gotta have that collaboration. You've gotta have accountability and for in order for that, to really be successful. For the vendors in the space hybrid is the new reality. In my survey data, it shows clearly that hybrid is where things are. It's not just cloud, it's not just on promise Tiebreak. That's where the future is. They've got to be able to have solutions that work in that environment. Working that hybrid cloud ability has got to be able to have solutions that can be purchased and used again in the same sort of elastic type of method that they're able to get consumers able to get. Service is from other vendors in that same >> height, so we gotta run. Thank you so much for sharing your insights and your data. And I know we were fired. I was firing a lot of questions. Did pretty well, not having the report in front of me. I know what that's like. So thank you for sharing and good luck with your challenges in the future. You got You got a lot of a lot of data to collect and a lot of fast moving markets. So come back any time. Share with you right now, Okay? And thank you for watching Paul and I will be back with our next guest right after this short break from M I t cdo. Right back

>> from the Silicon Angle Media Office in Boston, Massachusetts. It's the cue. Now, here's your host. Day Volonte. >> Hi, >> everybody. Welcome to this cute conversation. I'm Dave Volonte and Stew Minuteman is here with me. We're gonna break down a w s kind of give you Ah, midyear What's happened so far this year with all the events that we've been covering and what to look forward to? Uh, the N Y C Summit is coming up stew. It's been a big year. Obviously. What we came off a re invent. Amazon's got $30,000,000,000 run rate business growing at 40 plus percent per year. That means they're putting 9,000,000,000 of incremental revenue every year into the cloud business. The marketplace, That growth that's roughly as large is tthe e entire Microsoft cloud business, which is astounding >> day that that that's that's the point Amazon definitely has been making for a couple of years. And you're absolutely right. Microsoft is definitely growing at a faster pace than Amazon, and they're running about 75 87 but off a much smaller number. So the incremental add that Amazon has been throwing off the last couple years. Every year they're adding more than an azure every year. So absolutely Amazon, you know, is the lead horse out there. And while you know, the horses on the track behind them are trying fast to catch up Amazon. If you talk about Infrastructures service, AWS is still the lead. >> Well, the big question is. Will that attenuate? And we were at Remember the Nutanix inaugural Nutanix Stop next? Do you rush Pandey, who's very smart guy, somebody we respect a lot. One of the fundamental assumptions they were making is eventually the law of large numbers will catch up to them and know it very well May. But it hasn't yet. I asked John Lovelock, can a company the size of Amazon $30,000,000,000 company grow it for 42% a year? Is that sustainable? And he said, Absolutely. There's nothing to stop them now. Who knows who has the crystal ball? What are your thoughts? >> Yeah, So, Dave, what we saw is Amazon's not sitting still. You know, they always like to say it's always Day one, and if you look at where they're going, the products that they keep throwing off the innovation that they keep moving on and the flywheel that they've had first of customer acquisition with all of the innovations that they're putting out there and the flight well. But I've been talking about the last couple of years the label of data, which is something we want to be a little concerned about. How much data Amazon actually does have both Amazon AWS and Amazon, with all those intelligent devices that are in your homes and connecting everything together. Some people are a little concerned about that. The government's a little bit concerned about that, but absolutely Amazon is going everywhere. We've seen Amazon going into sub segments of the market, going into verticals and going just really broad, really deep. So absolutely I don't see anything slowing a bit on down. It is a company that continues to impress one of >> the challenges. I think those do that that Amazon does have, and this came out of the reinforced >> conference a couple weeks ago in Boston, which was, Ah, conference for security practitioners, a lot of si SOS chief information security officers. The number one challenge that came out of that when you talk to practitioners was their ability to keep up with the innovations that Amazon is putting forth. So, you know, I wonder if we're gonna talk to some commercial customers. You'll see them down the summit probe to see if, in fact, that's part of their challenge. Just the pace at which Amazon brings out new features. But we've done Gosh, we've covered eight events or will have covered eight events this year. Eight productions. It started in the U. K. Where we covered a public sector health care. And then we did the AWS summit London really all about both public sector in the UK as well as the summit in the UK Innovations in the UK around cloud, etcetera, cloud adoption. 12,000 people at the AWS London summit. Now you covered re Mars, which was not the Cube wasn't there, but you were there. What was that show? >> Yes. So, first of all, it's an Amazon >> show, not a native US show, but absolutely showed underneath where eight of us fits into the fulfillment centers of Amazon. And it was about re Marceau Mars A play of course on space. But it was a machine learning automation, robotics in space. So you had the cool blue origin stuff that actually brought in. Robert Downey Jr talked about how he's going to save the planet with, you know, robotics and intelligence out there to help clean up pollution in the globe on and the like. But it was a phenomenal show, but what I said is actually going to show a little bit underneath the covers of Amazon similar what we've seen from eight of us at the reinvent shows over the years. Because, you know, we all know how many boxes air coming to our, you know, our place of home every day and how fast that's going. And so this is what's happening underneath the robotics and machine learning a lot of those Air AWS Service's that are powering that. So it was a fascinating show, Dave and absolutely showed other relationship between Amazon, the parent company. Eight of us, all those cloud service is that helped feed the bigger business. >> Now, June, the Cube covered the D. C. Public sector summit. This is Teresa Carlson's gig. She's the host. Actually, Andy Jassy was there this time. He wasn't there last year when you and I recovering it. And of course, that's all about bringing cloud to public sector, not just federal but all public sector. It includes AH, non profit and education, which talk about in a minute. The big story. There is a jet. I we're talking about tens of billions of dollars going to ah, contract. Oracle, of course, is fighting it. It's going into the courts. I guess they've been a number of reviews or could won't give up its oracle. Amazon clearly is the front runner. Last I read, it was down to AWS and Microsoft, with AWS being the lead contender there. We'll see what happens. I think the decision is coming down this month, July 2019. But it's really again about bringing cloud innovations to public sector. Public sector tends to take things a little bit later than the commercial like. For instance, last year they announced the the VM wear on AWS was available, so you'll see those kinds of things come maybe a year later. But its again. Another big show there 12. 13,000 people there at the D. C Convention center. >> Yeah, Davey, when you talked about the critique of what's happening in Amazon as Amazon goes deeper into all of these verticals How do they help get that information to the user in a way that they need to run their businesses? So my co host for New York City's Cory Quinn was listen to his podcast this morning and he said, That's where Amazon's got dozens of blog's. They've got so many announcements, they haven't done a really good job, something we've seen many companies do. How do I get to you know that business roll and put it in, you know, verbal that they understand, as opposed to just >> Hey, we had 1000 new features >> come out this year and they're awesome. Then you should use everything s o. You know, that's something that, you know the industry as a whole needs to do better at an Amazon. Just in the nature of how fast they're moving is something that they should be able to do a better job. >> And Jennifer is also gonna be in New York City. And one of things he was stressing at reinforce was the marketplace. We had Dave McCann on the just rocketing. I think it was 100,000 census of security subscriptions. I think it was 1,000,000 subscriptions in total so just an amazing ah momentum in the marketplace. But reinforce was all about security. Deep dives on security, chief information, security officers. What came out of that show the big takeaway was was head of AWS is, uh, security. The chief information security officer, Schmidt said. This narrative in the industry that the sky is falling doesn't do anybody any good. Um, it's not productive. We should be more positive. The state of the cloud union is good, like the president of states is State of the Union is strong. Um, having said that, Amazon talks about the shared security model. The practitioners that we talked to said, Yeah, shared model Amazon's going to secure the the infrastructure of the storage, the compute of the database. We are responsible for our end, and it really is on us to make sure that we are secure. So again, back to that point about the pace of innovation that Amazon is putting forth is a challenge for people. AWS imagine is also going down. I think this week what's that you're >> so it's in Seattle and it's you mentioned the public Sector one in D. C, which is government agencies, nonprofits and education. So imagine is a subset of that. My understanding is the education, a nonprofit piece of that from when you and I were in D. C. Last year for the Public sector summit. It's It is impressive how deep Amazon is going into these spaces, the affinity they have. And really, you know how happy the customers are to be able to move fast. So, you know, when you think about nonprofits and think about education, innovation is not the first thing that usually comes to mind because budgets are tight and I don't have enough people. And usually you've got, you know, whatever's left over. But imagine is them. How do we move these forward? How do we You know, we know we need to help transform education. It's so important to train the next generation. So, you know, imagine there are some great stories that come out of that. Jeffrey loves getting those stories, helping us tell those stories through the Cube platform. And so it's the second year we're doing >> Yes, it would be covering that. And then, of course, reinvent will have two sets again that reinvent this year. The Super >> Bowl of our industry, >> right? Sure. Um, something's going on. So unfortunate incidents in Southern California. Big earthquakes, actually. Multiple earthquakes, Right? You had the physical earthquake, and then you had CO I, leonard going to the Clippers. But so I'm interested in sort of poking at this notion of ground stations. So at reinvent last year, Amazon announced on his own ground station, which essentially was ground station is a service. So if I understand it, one of the challenges okay, You launched the satellites, but you still need a ground station to collect the data and then uploaded and analyze it. That's what AWS is is partnering to put in infrastructure that allows you to essentially rent ground station infrastructure. So, you know, they worry about building it in securing it yourself. Because you think about it. It's got to be a secure location. You gotta have fencing. You got a physical security. You got to get the data in. You gotta upload it to the toe. Where we gonna upload it? So Amazon is basically building this service out, saying Don't worry about the ground station piece. Rent that from us, you know, swipe your credit card. Your ground station as a service, and then we'll ingest that data uploaded to the cloud and then apply all of the tooling that we have to allow you to analyze that data. So if you think about the earthquake of devastation, if you don't have a ground station there, you can, in theory, go to AWS and actually spin up a ground station in jest. You know, on the ground, you know, the ground truth as we like to sometimes talk about and actually get satellite imaging and telemetry in that region, you know, this comes into play things like forest fires and all kinds of of natural disaster. >> Dave, even at the remarks show, I attended a session where one of the Amazon partners was talking about not only just getting the satellite data down, but Justus. They have the snowball edge today, which is, you know, for you know, I ot or some remote sites, but some of these satellites are gonna have the compute and storage at in satellite themselves. So if you think about I'm gonna have these geosynchronous satellites. I'm gonna have all this connectivity. And if I could get a gigabit of Ethernet, you know, traffic going to the satellites and I could do the processing at the edge, which is now up in space. I can process that. And you know, that edge that we talked about get to hold another dimension, you know, off off the terra firma to be able to do those kind of analysis. As you said, earthquakes, you know, all the all the climate discussion that's going on, we should be able to have tap into even more. Resource is, and we'll have to rename Cloud if it even goes beyond the Earth. >> And then, um, outpost is the other story that we've been tracking, attracting a lot of stories, but but outpost is starting to ship in beta form. We've seen instances of >> so, so seeing >> it. We just did a little quick right up. >> I mean, Dave, you know, just a ripple went through the >> industry when they showed Hey, here's Iraq and what they're like. This is the exact same rack that we have in the Amazon data centers and why it's a little surprising because we're allowed to see inside the Amazon Data Center. So it's like, Okay, this is what they're computed awaited to 24 in tracking, supposed to a 19 in track. But that line between the public cloud and my on premises environment absolutely is blurring. So everybody wants to see where Amazon's going. They have the big partnership with VM, where Veum, where is already shipping the solution? That is the same software for that Veum wear on AWS in my data center. So, you know, I can have you know, the Dell hardware with the Veum where code or I can have the Amazon hardware with the VM where code coming later this year without post. So that line between public in private is absolutely blurring. And where to my applications live, You know that that future of how fast is eight of us continue to grow? Absolutely. There are applications and data and things that will stay in my own data center and under my control. But that line is definitely blurring. And there's gonna be some re architectures. It's definitely still gonna take a couple of years to sort some of these things out. But we're at some of those inflection points where we'll see some of >> us. So I wrote a post its upon wicked bond kind of analyzing that video, and there's some interesting things that are unique. There's certainly a lot of goodness in there. Not some of the things they talk about are completely unique. Thio, aws. But things like Nitro and their special virtual ization engine and their special chip on Do you want to get a look at that? You take a look at that video and thence to New York City Summit this week. Um, we mentioned some of the innovations that we've seen up to date this year. A lot of talk I'm sure about the marketplace. >> Yeah, I'm wondering if there'll be any ripples, Dave, because the 1/2 of a chick you, too, was supposed to be in New York City. And now it's not, doesn't mean they don't have a strong presence in New York City like London and believe it's somewhere around 12 to 15,000 people. When I went to New York City two years ago was quite impressive. It is a free show, which means if your customer you get in for free. If you're a partner, of course, you're still paying for everything that goes there. But the regional summits are quite impressive and a great way to get in touch with Amazon and all that they're doing. If you don't want to go to the Super Bowl itself, which is, you know, 50,000 plus now in Las Vegas towards the end of the year. >> Yeah, these air, like many reinvents and they're actually quite good. A lot of a lot of practitioner focused on you're gonna you're gonna see that New York City >> did what I always love about every Amazon show I go to. There are customers that are interested learning new things. How can you do better with what I'm doing? But also, how can I change what I'm doing? How can I move forward? So even if it's not adopting the latest and greatest from AWS, the entire ecosystem is going there to meet with those customers and talk about digital transformation? Modern workforce? All of these hot trends definitely play out. Ground zero is the AWS. >> Yeah, and this is by design. As I said before, the pace of innovation is a challenge for people. It's an adoption blocker and so Amazon wants to educate and share the knowledge so that they can get more adoption. OK, stew. Thanks very much. Good luck. This week. Check out silicon angle dot com For all the news, the cube dot net is where the videos will live and watch. Do on John Ferrier and Corey Quinn. Live and check out the cuban dot com for all the research. Thanks for watching Everybody Day, Volonte and Stupid Event. We'll see you next time.

>> live from Washington, D. C. It's the Cube covering a ws public sector summit. She wrote to you by Amazon Web services. >> Welcome back to the cubes. Live coverage of the ES W s Public Sector summit here in Washington D. C. At the 10th annual eight of the U. S. Public sector summit. I'm your host Rebecca Night, along with my co host, John Farrier. We're joined by Adelaide O'Brien. She is research director. Government digital transformation strategies at I. D. C. Government incites Thanks so much for coming on the show. Adelaide. >> Rebecca for having me. It's I'm pleased to be here today, >> so I want to just start really with just picking your brain about about the topic of this conference, which is about modernization of government. What is the state of play? How Where do you Where do you see things from where you sit? >> Well, as you know, the federal government right now has been under about a 10 year directive to go cloud first. And what we've seen is, you know, a lot of agencies not all but some of them have a struggled with that, Uh, and it hasn't really had the momentum of the velocity that as an analyst, I I'd like to see and s o last year. The current federal seo says that can put out a policy, and it was about actually moving to Cloud Smart. So it wasn't just to do cloud to be more efficient to save some of that money. That about 75,000,000 that's spent on maintaining legacy equipment. But it was actually thinking about using cloud to be very, very agile to help deliver better citizen services. And what's interesting is this. This whole concept of cloud smart is also very supportive. The Modernization Technology Act as well as the report to the president on it. Modernization. So last year we saw both executive and legislative support for agencies to move to cloud. >> So, as you said, it doesn't. But it's still from where you sit. Doesn't analyst. It still doesn't quite have the momentum and the velocity that you'd like to see. What do you see as the biggest obstacles? >> Well, and this was actually identified in Cloud Smart and yesterday and today I heard a lot of agencies talking about thes three aspects, and I think you know, 10 a W s is a great place to help them. So one of the first is security. And we know when agencies, you know, were first Ask Goto the cloud security was, you know, the biggest barrier in their organization to cloud. And and so I think it was the 3rd 8 of US Conference. It was actually in this building, and I know there's been but I wasn't the first to and I could remember is an analyst. I was so pleased that Teresa had Roger Baker, the CEO of Health and Human Services on stage, and they were talking about getting fed Reum certification, and I think it was one of the first. And it was it was thrilling that such a large agency had invested so much time and money about working with eight of us to get February certification. So to me that that was like, you know, an initial pushing a start, so security is just so so important. And now you've got, you know, so many different software providers working with Amazon. Eight of us on security on DH. Even today, at one of the breakout sessions, the senses really talked about because the CIA moved to eight of us, and they put their most sensitive information in the cloud they felt comfortable with putting the personally identifiable information in the cloud. I'II our census data information. >> If it's good enough for that for that kind of information, I can I can put my business >> exactly there, Tio. Exactly >> the question I want to get on the comm on the research side is competition of opportunities. Is Old Wick about old gore Amazon? Always the old guard, The old way of doing things. They're pretty much in the new class. Dev Ops. We've seen that on the enterprise side Certainly start ups, any jazz, these examples like Airbnb. You see those at conferences over the years that we have the example of these cloud Native Cos. How does government now look at suppliers as partners? Because the big debate is you picked the right cloud for the right workload. Work lotion to find cloud architecture. You can't just split clouds up amongst Microsoft, Google, Amazon and oracles of the world. The whole multi vendor equation shifts in this new paradigm. How do you see that playing out? >> Yes, it does. But I also see and what I've heard today over the last two days is, you know, agencies are actually looking for a partner who can grow with them and learn with them. And I heard that over and over again. You know, they want a cloud provider that you know, has skin in the game, and that actually helps them. And we've seen that they also want a cloud provider that's innovative. And, you know, one of my concerns is I learned about how you know, scale. Everything's about scale today, right? And how Amazon now has eight of us has scaled up so fast over the last couple of years and all the innovations that they're able to provide. And so the question is, how can you keep that culture alive? And, you know, it's kind of like that start up culture at eight of us, right? How can you keep that alive? And, you know, I think the answer did today and, you know, I wish I would have thought about the question in the way he talked about it. You know, when you get big, you get conservative right, because you have too much to lose and too much is at stake. and, you know, as an analyst, I'm seeing eight of us. Not only is a growing fantastically, but it's innovating, and I think that's what gives you than this innovation. The you know, you don't have to be a a Silicon Valley software company to innovate, and I think part of it comes from I think Theresa's said that 95% of A W S's roadmap is based upon what they hear from their customers. So you know that that ear to the ground knowing the government business, federal, state, local, is so, so >> important. This trend that's helping them to also is the move to sass with capabilities on digital using suffers a service business model. So again, it's all kind of timed up beautifully for these agencies that were slow to move in the past. This is an analyst, er, >> yeah, so So security is one of the things on Cloud Smart, and I think that was one of the biggest, biggest barriers to momentum. But the others acquisition. So there's three things about clouds smart that agencies are to pay attention to, and I think you know what's really helped in the acquisition is, you know, the standardization and not only the federal up certification. And, you know, eight of us is healthy cloud providers. Software's the service providers get Fed Ram certification. And so, in the end, this is announced at the conference last year of a TIO on a W s. Right, because it's an arduous process. If you don't know what you're doing, it can cost you a lot of money and take a lot of time. So, you know, eight of us is working with his partners, and that's all good for the government sector, right? Because the more vendors that go through certification, the more they trust them and the more they can trust, you know, the integrity of their data in the cloud. So the acquisition is the 2nd 1 But the 3rd 1 is the workforce, and I think you know, And he mentioned it today. You know, a lot of the resistance, and a lot of the inertia of cloud is not just the technology, it's training the workforce, and I, you know, I thought, it's so so important because it's not just an conversation any longer. Going to cloud is part of digital transformation. Is the foundation of it. And so that has to be a conversation with all levels of agency executives. And they have to agree Otherwise, you know, if you're innovating, you've got, you know, islands of innovation and you on the cloud you can start to Yes, you can pilot, but you can start to really get scale there and transform your whole business. And it's all about serving citizens better and innovating to serve them better and automating your processes. You know that's so important as well. >> So how would you describe the work force? I mean, when you think about the private sector, workforce, women, when in terms of cloud computing versus the government, you tend to think one is more bureaucratic. There is obviously more red tape may be slower moving. How What are you seeing? What are you hearing? >> Well, you know, at all levels of the workforce and especially in government, there's a big push now to automate everything. He and you know, the government at all levels. Federal state local realizes they're actually competing with the private sector for work source. And so, you know, historically, government would say, Well, what's the next skill and we better start preparing for that, right? What's what What's coming down the pike and we we need. And now it's like, How do we prepare for people who enter government and move in various different jobs and move in and out of government? And so when you think about that, that's a skill development and technology can help with that. But it's also a mindset of accepting the fact that people join government to serve, and they might leave and come back. And so that's very important, but also the in terms of cloud smart. The workforce has to be able to understand cloud and howto work with vendors, you know, and it's not necessarily, you know, owning your own equipment. But it's it's it's trusting your vendors and trusting them with your business and and how do you, you know, provide these solutions to the line of business folks? And in a way, I actually seen you the IT department become much more responsive to the line of business folks. And my advice, Teo government executives, especially the folks, is always think of yourself as a service right. Think of yourself as a service. You know that as a service to the line of business folks and, you know, help them understand what what they need, how they accomplished their mission. Maybe give them a short list of solutions to help them out, but really start tracking them. You know what they're accomplishing, and that will help fuel. Then you reinvestments help. You know where to spend your money next And really, you know, just fuel this whole mission accomplishment. >> One of the things that we've been talking a lot about on the Cube for for years is the new role of the chief data officer in any organizations. A lot of federal agencies air now, also putting in their own chief date officers. Can you talk a little bit about what you've seen and what and how they're being used? >> Yeah, so they're our chief data officers in the organization's it again. That's one of those skills were you know, government's going to compete with the private sector for them, and there's probably not enough to go around Andi. And so it's a very precious commodity. And, you know, it is especially like in your research organizations. You've got chief data officers there, but in a lot of the other areas. And, you know, especially in the civilian government, you may not be able to have your old, you know, chief Data officer. Right? You certainly have all the data, but you may not have someone like that. And that's where you know some of the things that that I that that I'm advising agencies to look for us who can help you, then give you some of these big data and you know, a I and ML solutions that your line of business folks Khun, start to interface and work with. And maybe you have Chief data officers set up the data fields initially, but that's where you've got to start to democracy eyes, you know, a I and m l. And because you're never gonna have enough Chief data officers in anyone organization to possibly calm through all of that data on DSO, that's again where technology can help. >> Great. Well, Adelaide, thank you so much for coming on the Cube. It's been a pleasure. Having you >> was great being here. Thank you so much. >> I'm Rebecca Knight for John Furrier. Stay tuned. We will have more of the cubes. Live coverage of a ws public sector summit

>> live from Washington, D. C. It's the Cube covering a ws public sector summit brought to you by Amazon Web services. >> Welcome back, everyone to the Cubes Live coverage of a ws Public sector summit here in Washington D. C. Our nation's capital. I'm your host, Rebecca Knight co hosting alongside John Farrier wear welcoming Back to the Cuba, Cuba and esteemed Cube veteran Teresa Carlson, vice president Worldwide public Sector A W s. >> Thank you really appreciate always being on the key, But I appreciate you being here and our public sector. Sandy, >> Thank you for having us. So give up. Give us the numbers. How many people are in this room? How many people are here? >> Well, we have now today. Well, for this time that we're here, there's probably about 13,000 people here will expect a couple of 1,000 more. I think by the time it's all said Dan, we'll have about 15,000 at the conference. Of course, you had my keynote today with whole Benson sessions. They're all packed, and tomorrow you'll have Andy, jazzy herewith made ing a fireside chat at 11 o'clock on Wednesday, so I think that room will be overflowing with Andy Kelly as well, Because everybody loves him >> and Andy just coming back from a conference for the Silicon Valley elites on the west coast, where he put a big plug in for public sector, which is awesome. Yes. Now there you guys are kicking some serious butt. Congratulations. >> Thank you. Yeah. Thank you. >> I mean, what's it like for you? You're the leader. You're the chief of the public sector business. You've grown it. It's now cruising altitude that seem so cruising. >> Yeah, it. Well, first of all, this Nana, this would've been possible without Andy Jassy actually kind of believing and the mission of public sector when he hired me in 2010. And you're right, John. We started. You've hurt, covered the story. We started with two people in 2010 at the end of 2010. And now we have thousands of people around the world and, you know, over 35 countries, customers and 100 72 2 countries. And the business is growing at more than 41% every year date of yes, and we're $31,000,000,000. Business with public sector ban important component in that business. So for s here today. It is very meaningful. And the reason it is so meaningful. It is about our customers. And this is This is a testament to that. Our customers left what a TBS provides. And in the public sector business, it is a game changer to their mission way >> We're talking on our insure this morning. Rebecca and I around this new generation of workers, and that's almost like a revolution of red tape. Why's it in the way you gotta do better ways to be management cloud health care you named the vertical isn't a capacity to disrupt, create value. So you have this kind of shift happening. But you guys are also technology leaders. So when when you see things like space, >> Yeah, these were kind >> of tell signs that the CIA adopting the d o d. Look at the big contracts are coming in. People are working it hard. These air tell signs that the growth Israel >> Yeah, grab reaction to that gross Israel and I and I like to talk to my leaders about while we've had phenomenal growth, and that's fantastic. Way really are only getting started because now, in 2018 I really saw our customers doing unbelievable work leads very hard mission. Critical work was that they were meeting from it from it's kind of old environment, moving it on day to be asked, migrating and totally optimizing it. Now what's changing within the intelligence community and D o d is that you know, in 2013 when the icy made this decision made, it started changing even enterprise views of moving to the cloud from a security perspective. But you have that shift has happened. Now you see d o d moving for Jet I, which will be announced hopefully in July or August. Hope hopefully scene. But even without Jed, I. D o. D is making massive mate to cloud. I mean, and by the way, there no blockers now, like a year ago when we talked here, there were still some blockers for them. Today, really pretty much every blocker has been remade so that they can move a lot faster. So even outside of Jed, I we see our d o. D customers moving. You heard Kenny Bow and our debt today on stage, Who's the CEO of the special access program? Talk about what they're doing and why Cloud became an important element of their mission. And I could tell you, Kenny works on some very challenging and difficult mission programs for D. O. D. So that these air kind examples. On the flip side, I met with some CIA's yesterday from the state and local government. Now that has been a super surprising market for me where I'm seeing them. Actually, 2018 was a true change of year for them. Massive workloads in the state Medicaid systems that are moving off of legacy systems on a TVs, justice and public safety systems moving off on TBS. So that's where you're seeing moves. But you know what they shared with me yesterday, and my theme, as you saw today, was removing barriers. But they talked about acquisition barrier still, that states still don't know how to buy cloud, and they were asking for help. Can you help kind of educate and work with their acquisition officials? So it's nice when they're asking us for help in areas that they see their own walkers. >> So what accounts for the fact that these blockers air sort of disappearing as you set up on the main stage this morning? cloud is the new normal, right? Everyone is really adopting this cloud first approach. And what accounts for the fact that these challenges ey're sort of slowly dissipating? Well, there, you know, some of >> the blockers had been very legacy, and I'd like to tell you already that kind of old guard helped create a lot of these models. And most of these models, as an example of acquisition, were created so that governments had to pay at friend. So these models were like, pay me a lot of many a friend and then let's hope I will use them all that technology. So now we come along and say, Actually, no, you don't need to pay us anything up front. You could try it and pay as you use it and then scale that and they're like, Wait, wait a minute. We don't know how to do that model. So part of these things have been created because of all systems that what's changing those systems is that you can't you again if you can't change gravity, and we're at the point where it is the new normal, and you cannot change gravity, and they're seeing security. If you think about security is the number one reason they're moving to the cloud. Once you start having security issues, they on their own start removing blockers because they're like we've got it made faster because we wanted our secure. >> I know you've got a lot of things going on. You got customer visits. Your time's very tight. Appreciate you coming on. But I got to get and I want to talk about check for good programs you launched what happened at the breakfast of the stories. We could go for an hour on that, but I really want to dig into this ground station thing. And one of the coolest thing I saw reinvent when it kind of got launch. This is literally it reminds me the old Christopher Columbus days is the world flat is flat. We'll know the world is round. You have space? Yeah, space and data. It's gonna change the coyote edge to be the world. Right? So this is a game changer. I see this game changer way had your GM on earlier. Brett, what's what's going on with ground? So how is that going to help? Because it's almost provisioning back haul. It's gonna help. Certainly. Rural area st >> Yeah, way ahead of Earth and Space Day yesterday. So we kicked off with that with two amazing speakers. And the reason ground station is so important. By the way, it was a customer of ours in the US intelligence community that told us about six years ago we needed to create this. So you know where I said 95% of our services or customer driven? It was a customer that said, Why doesn't a TVs have a ground station and we really listen to them? Work backwards? And then we launch a ground station. I became general availability in May, and that is really about creating a ubiquitous environment for everyone, for space, for the space and satellite communications. So you can downlink an uplink data. But then the element of utilizing the cloud the process and analyze that data in real time and be ableto have that wherever you are is really I mean, it truly is going to be an opportunity for best commercial enterprises and public sector customers. And you know, John, right now, the pipeline that we have seen already for ground station, even I'm surprised at how Many of our customers and partners are so interested with acid ate a >> government thing about, like traffic lights, bio sensors Now back hauling all that into a global, >> you know, many different way. And now start. If he saw the announced with the Cloud Innovation Center at Cal Poly, we're gonna be doing some research with them on space communications and programs around ground station. Chile is another location You've heard me talk about that has missed tell escapes in the world. And we're gonna be working in Chile doing some work on ground station there in the Middle East. So this is, by the way, global. While the Qena it kind of came. Tosto, >> go to Cal Poly together way. We're gonna go to Chile. >> Chile next. Yeah, chili is great. So you could get two best locations with me. I would love that line here. Next. Exactly 11. Yes. >> Thank you so much for >> back. And make sure we get all those other days. >> Yes, because next time I've got to tell you that tape for good. There's too much not to talk about. So we have to convene again. >> Come to your office in the next couple months of summer. I'll make a trip down. We'll come to >> thank you all for being here. Thank you so much. Thank you. >> Thanks so much, Theresa. I'm Rebecca Knight for John Furrier. Stay tuned. You are watching the Cube.

>> from our studios in the heart of Silicon Valley. HOLLOWAY ALTO, California It is a cube conversation. >> Welcome to this Special Cube conversation here in Palo Alto, California at the Cube Studios at the Cube headquarters. I'm John for the host, like you were a Dustin Kirkland product manager and Google friend of the Cuban. The community with Cooper Netease been on the Cube Cube alumni. Dustin. Welcome to the Cube conversation. >> Thanks. John's a beautiful studio. I've never been in the studio and on the show floor a few times, but this is This is fun. >> Great to have you on a great opportunity to chat about Cooper Netease yet of what you do out some product man's working Google. But really more importantly on this conversation is about the fifth anniversary, the birthday of Cuba Netease. Today we're celebrating the fifth birthday of Cooper Netease. Still, it's still a >> toddler, absolutely still growing. You think about how you know Lennox has been around for a long time. Open stack has been around these other big projects that have been around for, you know, going on decades and Lenox this case and Cooper nineties. It's going so fast, but It's only five years old, you know. >> You know, I remember Adam Open Stack event in Seattle many, many years ago. That was six years ago. Pubes on his 10th year. So many of these look backs moments. This is one of them. I was having a beer with Lou Tucker. J J Kiss Matic was like one of the first comes at the time didn't make it, But we were talking about open stagger like this Cooper Netease thing. This is really hot. This paper, this initiative this could really be the abstraction layer to kind of bring all this cloud Native wasn't part of the time, but it was like more of an open stack. Try and move up to stack. And it turned out it ended up happening. Cooper Netease then went on to change the landscape of what containers did. Dr. Got a lot of credit for pioneering that got the big VC funding became a unicorn, and then containers kind of went into a different direction because of Cooper duties. >> Very much so. I mean, the modernization of software infrastructure has been coming for a long time, and Cooper nutty sort of brings it all brings it all together at this point, but putting software into a container. We've been doing that different forest for for a lot of time, uh, for a long time, but But once you have a lot of containers, what do you do with that? Right? And that was the problem that Cooper Nettie solved so eloquently and has, you know, now for a couple of years, and it just keeps getting better. >> You know, you mentioned modernization. Let's talk about that because I think the modernization the theme is now pretty much prevalent in every vertical. I'll be in D. C. Next week for the Amazon Webster was public sector Summit, where modernization of governments and nations are being discussed. Education, modernization of it. We've seen it here. The media business that were participating in is about not where you store the code. It's how you code. How you build is a mindset shift. This has been the rial revelation around the Dev Ops Movement Infrastructures Code, now called Cloud Native. Share your thoughts on this modernization mindset because it really is how you build. >> Yeah, I think the cross pollination actually across industries and we even we see that even just in the word containers, right and all the imagery around shipping and shipping containers, we've applied these age old concepts that have been I don't have perfected but certainly optimized over decades of, actually centuries or millennia of moving things across water in containers. Right. But we apply that to software and boom. We have the step function difference in the way that we we manage and we orchestrated and administer code. That's one example of that cross pollination, and now you're talking about, like optimizing optimized governments or economies but being able to maybe then apply other concepts that we've come a long way in computer science do de bop set a good example? You know, applying Dev ops principles to non computer feels. Just think about that for a second. >> It's mind blowing. And if you think about also the step function you mentioned because I think this actually changed a lot of the entrepreneurial landscape as well and also has shaped open source and, you know, big news this this quarter is map are going to shut down due one of the biggest do players. Cloudera merge with Horton Works fired their CEO, the founder Michael. So has retired, Some say forced out. I don't think so. I think it's more of his time. I'm Rodel still there. Open source is a business model, you know. Can we be the red hat for her? Duped the red? Not really kind of the viable, but it's evolving. So open source has been impacted by this step function. There's a business impact. Talk about the dynamics with step function both on the business side and on how software's built specifically open source. >> You know, you and I have been around open source for a long, long time. I think it started when I was in college in the late nineties on then through my career at IBM. And it's It's interesting how on the fringe open source was for so long and such so so much of my BM career. And then early time spent onside it at Red Hat. It was it was something that was it was different, was weird. It was. It was very much fringe where the right uh, but now it's in mainstream and it's everywhere, and it's so mainstream that it's almost the defacto standard to just start with open source. But you know, there's some other news that's been happening lately that she didn't bring up. But it's a really touchy aspect of open source right now on that's on some of the licenses and how those licenses get applied by software, especially databases. When offered as a service in the cloud. That's one of the big problems. I think that that's that we're we're working within the open >> source, summarize the news and what it means. What's what's happening? What's the news and what's the really business? Our technical impact to the licensing? What's the issue? What's the core issue? >> Yeah, eso without taking judgment any any way, shape or form on this, the the the TL D are on. This is a number of open source database is most recently cockroach D. B. I have adopted a different licensing model that is nonstandard from an open source perspective. Uh, and from one perspective, they're they're adopting these different licensing models because other vendors can take that software and offered as a service, yes, and in some some cases, like Amazon like Sure, you said, uh, and offered as a as a service, uh, and maybe contribute. Maybe pay money to the smaller startup or the open source community behind it. But not necessarily. Uh, and it's in some ways is quite threatening to open source communities and open source companies on other cases, quite empowering. And it's going to be interesting to see how that plays out. The tension between open sourcing software and eventually making money off of it is something that we've we've seen for, you know, at least 25. >> And it continues to go on today, and this is, to me a real fascinating area that I think is going to be super important to keep an eye on because you want to encourage contribution and openness. Att the same time we look at the scale of just the Lenox foundations numbers. It's pretty massive in terms of now, the open source contribution. When you factor in even China and other nations, it's it's on exponential growth, right? So is it just open source? Is the model not necessarily a business? Yeah. So this is the big question. No one knows. >> I think we crossed that. And open source is the model. Um, and this is where me is a product manager. That's worked around open source. I've spent a lot of time thinking about how to create commercial offerings around open source. I spent 10 years at Economical, the first half of which, as an engineer, the second half of which, as a product manager around, uh, about building services, commercial services around 12 And I learned quite a few things that now apply absolutely to communities as well as to a number of open source startups. That that I've advised on DH kind of given them some perspective on maybe some successful and unsuccessful ways to monetize that that opens. >> Okay, so doesn't talk about Let's get back to Coburg. And so I think this is the next level Talk track is as Cooper Netease has established itself and landed in the industry and has adoption. It's now an expansion votes the land adopted expand. We've seen adoption. Now it's an expansion mode. Where does it go from here? Because you look at the tale signs things like service meshes server. Listen, you get some interesting trends that going to support this expansionary stage of uber netease. What is your view about the next expansion everyway what >> comes next? Yeah, I I think I think the next stage is really about democratizing communities for workloads that you know. It's quite obvious where when communities is the right answer at the scale of a Google or a Twitter or Netflix or, you know, some of these massive services that it is obviously and clearly the best answer to orchestrating containers. Now I think the next question is, how does that same thing that works at that massive scale Also worked for me as a developer at a very small scale helped me develop my software. My small team of five or 10 people. Do I need a coup? Burnett. He's If I'm ah five or 10 person startup. Well, I mean, not the original sort of borde vision of communities. It's probably overkill, but actually the tooling has really advanced, and we now >> have >> communities that makes sense on very small scales. You've got things like a three s from from Rancher. You've got micro Kates from from my colleagues at economical other ways of making shrinking communities down to something that fits, perhaps on devices perhaps at the edge, beyond just the traditional data center and into remote locations that need to deploy manage applications >> on the Cooper Netease clustering the some of the tech side. You know, we've seen some great tech trends as mentioned in Claudia Horton. Works and map Our Let's Take Claudia and Horton work. Remember back in the old days when it was booming? Oh, they were so proud to talk about their clusters. I stood up all these clusters and then I would ask them, Well, what do you doing with it? Well, we're storing data. I think so. That became kind of this use case where standing up the cluster was the use case and they're like, OK, now let's put some data in it. It's a question for you is Coburn. Eddie's a little bit different. I'm not seeing they were seeing real use cases. What are people standing up? Cuban is clusters for what specific Besides the same Besides saying I've done it. Yeah, What's the what's the main use case that you're seeing this that has real value? >> Yeah, actually, there's you just jog t mind of really funny memory. You know, back in those big data days, I was CEO of a startup. We were encrypting data, and we were helping encrypt healthcare data for health care companies and the number of health care companies that I worked with at that time who said they had a big data problem and they had all of I don't know, 33 terabytes worth of worth of data that they needed to encrypt. It was kind of humorous sometimes like, Is that really a big, big data problem? This fits on a single disc, you know, Uh, but yeah, I mean, it's interesting how >> that the hype of of the tech was preceding. The reality needs needs, says Cooper Nettie. So I have a Cuban Eddie's cluster for blank. Fill in the blank. What are people saying? >> Yeah, uh, it's It's largely about the modernization. So I need to modernize my infrastructure. I'm going to adopt the platform. That's probably not, er, the old er job, a Web WebSphere type platform or something like that. I'm investing in hardware investing in Software Middle, where I'm investing in people, and I want all of those things to line up with where industry is going from a software perspective, and that's where Cooper Nighties is sort of the cornerstone piece of that Lennox Of course, that's That's pretty well established >> canoes delivery in an integration piece of is that the pipeline in was, that was the fit on the low hanging fruit use cases of Cooper Netease just development >> process. Or it's the operations it's the operations of now got software that I need to deploy across multiple versions, perhaps multiple sites. Uh, I need to handle that upgrade ideally without downtime in a way that you said service mash in a way that meshes together makes sense. I've got a roll out new certificates I need to address the security, vulnerability, thes air, all the things that Cooper and I used to such a better job at then, what people were doing previously, which was a whole lot of four loops, shell strips and sshh pushing, uh, pushing tar balls around. Maybe Debs or rpm's around. That is what Cooper not he's actually really solves and does an elegant job of solving as just a starting point. And that's just the beginning and, you know, without getting ve injury here, you know, Anthros is the thing that we had at Google have built around Cooper Netease that brings it to enterprise >> here the other day did a tweet. I called Anthem. I just typing too fast. I got a lot of crap on Twitter for that mission. And those multi cloud has been a big part of where Cubans seems to fit. You mentioned some of the licensing changes. Cloud has been a great resource for a lot of the new Web scale applications from all kinds of companies. Now, with several issues seeing a lot more than capabilities, how do you see the next shift with data State coming in? Because God stateless date and you got state full data. Yeah, this has become a conversation point. >> Yeah, I think Kelsey Hightower has said it pretty eloquently, as he usually does around the sort of the serval ist movement and lets lets developers focus on just their code and literally just their code, perhaps even just their function in just their piece of code, without having to be an expert on all of the turtles all the way, all the way down. That's the big difference about service have having written a couple of those functions. I can I can really invest my time on the couple of 100 lines of code that matter and not choosing a destro choosing a cougar Nati is choosing, you know, all the stack underneath. I simply choose the platform where I'm gonna drop that that function, compile it, uploaded and then riff and rub. On that >> fifth anniversary, Cooper Netease were riffing on Cooper Netease. Dustin Circle here inside the Cube Cube Alumni you were recently at the coop con in overseas in Europe, Barcelona, Barcelona, great city. Keeps been there many times. Do was there covering for us. Couldn't make this trip, Unfortunately, had a couple daughter's graduating, so I didn't make the trip. Sorry, guys. Um, what was the summary? What was the takeaway? Was the big walk away from that event? What synthesized? The main stories were the most important stories being >> told. >> Big news, big observations. >> It was a huge event to start with. It was that fear of Barcelona. Um, didn't take over the whole space. But I've been there a number of times from Mobile World Congress. But, you know, this is this is cube con in the same building that hosts all of mobile world Congress. So I think 8,000 attendees was what we saw. It's quite celebratory. You know, I think we were doing some some pre fifth birthday bash celebrations, Key takeaways, hybrid hybrid, Cloud, multi Cloud. I think that's the world that we've evolved into. You know, there was a lot of tension. I think in the early days about must stay on. Prem must go to the cloud. Everything's there's gonna be a winner and a loser and everything's gonna go one direction or another. I think the chips have fallen, and it's pretty obvious now that the world will exist in a very hybrid, multi cloud state. Ultimately, there's gonna be some stuff on Prem that doesn't move. There's going to be some stuff better hosted in one arm or public clouds. That's the multi cloud aspect, Uh, and there will be stubborn stuff at the edge and remote locations and vehicles on oil rigs at restaurants and stores and >> so forth. What's most exciting from a trans statement? What do you what? What's what's getting you excited from what you see on the landscape out there? >> So the tying all of that to Cooper Netease, Cuban aunties, is the thing that basically normalizes all of that. You write your application put it in a container and expect to communities to be there to scale that toe. Operate that top grade that to migrate that over time. From that perspective, Cooper nineties has really ticked, ticked all the boxes, and you've got a lot of choices now about which companies here, you're going to use it and where >> beyond communities, a lot of variety of projects coop flow, you got service messes out there a lot of difference. Project. What's What's a dark horse? What's something that sets out there that people should be paying attention to? That you see emerging? That's notable. That should be paying attention. To >> think is a combination of two things. One is pretty obvious, and that's a ML is coming like a freight train and is sort of the next layer of excitement. I think after Cooper, Netease becomes boring, which hopefully if we've done our jobs well, that communities layer gets settled and we'll evolve. But the sort of the hockey stick hopefully settles down and it becomes something super stable. Uh, the application of machine learning to create artificial intelligence conclusions, trends from things that is sort of the next big trend on then I would say another one If you really want the dark horse. I think it's around communications. And I think it's around the difference in the way that we communicate with one another across all forms of media voice, video chat, writing, how we interact with people, how we interact with our our tools with our software and in fact, how our software in Iraq's with us in our software acts with with other software that communications industry is, it's ripe for some pretty radical disruption. And you know some of the organizations and they're doing that. It's early early days on those >> changes. Final point you mentioned earlier in our conversation here about how Dev Ops is influencing impacting non tech and computer science. Really? What did you mean by that? >> Uh, well, I think you brought up unexpectedly and that that you were looking at the way Uh, some other industries are changing, and I think that cross pollination is actually quite quite powerful when you take and apply a skill and expertise you have outside of your industry. But it adds something new and interesting, too, to your professional environment. That's where you get these provocative operations. He's really creative, innovative things that you know. No one really saw it coming. >> Dave Ops principles apply to other disciplines. Yeah, agility. That's that's pointing down waterfall based processes. That's >> one phenomenal example. Imagine that for governments, right to remove some of the like the pain that you and I know. I've got to go and renew my license. My birthday's coming up. I gotta go to renew my driver's license. You know much. I'm dreading going to the the DMV Root >> Canal driver's license on the same. Exactly >> how waterfall is that experience. And could we could we beam or Mohr Agile More Dev Autopsy and some of our government across >> the U. S. Government's procurement practices airbase upon 1990 standards they still want Request a manual, a physical manual for every product violent? Who does that? >> I know that there are organizations trying to apply some open source principles to government. But I mean, think about, you know, just democracy and how being a little bit more open and transparent in the way that we are in open source code, the ability to accept patches. I have a side project, a passion for brewing beer and I love applying open source practices to the industry of brewing. And that's an example of where use professional work, Tio. Compliment a hobby. >> All right, we got to bring some cubic private label, some Q beer. >> If you like sour beer, I'm in the sour beer. >> That's okay. We like to get the pus for us. Final question for you. Five years from now, Cooper needs to be 10 years old. What's the world gonna look like when we wake up five years from now with two Cuban aunties? >> Yeah, I think, uh, I don't think we're struggling with the Cooper nutties. Uh, the community's layer. At that point, I think that's settled science, inasmuch as Lennox is pretty settled. Science, Yes, there's a release, and it comes out with incremental features and bug fixes. I think Cuban aunties is settled. Science management of of those containers is pretty well settled. Uh, five years from now, I think we end up with software, some software that that's writing software. And I don't quite mean that in the way That sounds scary, uh, and that we're eliminating developers, but I think we're creating Mohr powerful, more robust software that actually creates that that software and that's all built on top of the really strong, robust systems we have underneath >> automation to take the heavy lifting. But the human creation still keeping one of the >> humans Aaron the look it's were We're many decades away from humans being out of the loop on creative processes. >> Dustin Kirkland, he a product manager of Google Uh, Cooper Netease guru also keep alumni here in the studio talking about the coup. Burnett. He's 50 year anniversary. Of course, the kid was president creation during the beginning of the wave of communities. We love the trend we love Cloud would left home a tec. I'm Sean for here in Palo Alto. Thanks for watching.

>> Hello, Room. Welcome back to London. You watching the Cube? The leader and tech coverage. My name is Dave Volante. We're here in a special program that we've constructed. It's the day before the eight of US London summit and we wanted to come and talk to some customers, some executives of startups, and really dig into what's going on in the public sector. Chris Heman is here. He's the director of UK and Ireland Public sector for eight of us. Chris, Thanks for coming on the Cube. >> Thanks for vitamins. Christ. >> Yeah. So you guys have a special public sector healthcare pre day that's going on downstairs? What's that all about? >> Yes. So obviously we'LL remain summit tomorrow expecting about twelve thousand people, which is phenomenal today that we could do something with one of our special industries, which is health care. So we've invited a number of customers and executives along for that today to learn more about cloud, how they can get going with the cloud and get, you know, start adopting a pace. So I believe you spoke with the missus about earlier on. So he misses a supplies the n hs, but also people and hs digital and so on her adopting the platform. So that's what today's all about. >> So health care is one of those sectors. It's ripe for disruption. It really hasn't been, you know, disrupted in a big way and digitized and it's starting. But the challenge is, how do you balance the cost of health care? Everybody's sensitized to that with the quality. Yeah, here. And so that's what really the problem. Show yourself. How does he ws in the cloud? Help solve that. >> Yeah, I think across the public sex. Really not just for the healthcare, but, you know, one of the things organizations are trying to do is reduce that large legacy footprint of infrastructure and really deliver against their mission, whether it be patients or citizens or whatever it may be. Ah, good example. In the in the case of the health care is we're working with a partner and I just school Business Services Authority on they have a large call center that was a really, you know, costly experience having traditional call center set up. So they've used our connect platform, our call center platform, and also some voice technologic called Lex. And they're able to reduce they stood up in about three weeks is a phenomenal effort, and they reduce their call volume by forty two percent. So basically getting the computer's towards some of the really easy queries, which, of course, meant that some of the tougher call center queries went to the actual humans and the call center handlers. So you know those sort things, I really think impact the bottom line for the HS and save some cost, but really helping to innovate a swell for for their patients and sis isn't so. >> Let's stay in health care for a second. So any just has, ah, nearly half a billion pound initiative to modernize. So if had they asked me, they didn't ask me. But had they ask me, I say, Well, part of that should be to get rid of the heavy lifting, so moved to the cloud and then really try toe transform your labor force to focus on more value added areas. It's actually helps to solve your problems. Is that essentially, what's happening? >> Understand, so that the contacts into very you know, that the people are now answering fines aren't doing those sort of Monday enquiries were it's just going to take four to six weeks. It's Maur, you know, transferring that. You know that's the computer and letting the humans do the heavy lifting. So I think that's you know, certainly one thing. But I think it's also enabling these organizations to really be closer to their citizens into their patients as well. With free liquor organizations like in the local authority, space, like else prevail. There are also using voice technology with Alexa to enable citizens to answer queries like You know who is my counselor or to update about various things within their sort of council record. And socially public sector organizations love that because they've now got this unique touch point with the sisters and at scale, whereas they would never have been able to do that previously. So that's a really good, you know, close engagement for them. >> So you hear the bromide people say data is the new oil. It's it's the it's the new natural resource. We actually think date is more valuable than oil because you can only use oil in one place. The data you can use many, many places, so data becomes increasingly important. But the problem that most traditional companies have is there, Their data is locked in silos. It's hardened into an application. And so so how are you guys attacking that problem? What do you see? A CZ trends in the customer base in terms of being able tto have sort of, ah, unified data model. And what role does the cloud >> play there? Yeah, I think it's really good questions. So there's a number of things that we're doing. First of all, we're very passionate about public date sets. So we host a number of public day sets like Lanza imagery and these sort of things, you know, fundamentally, we believe data has gravity, so, you know, for overto host and provide this data at scale for researchers and so on. That has tremendous huge benefit. But you're right about public sector organizations, and I silos a good example. Where we've we've worked is with transport for London. Obviously, if you want to get in and around the city of London, typically you go to tear filled look after UK, which runs on a dress, and you'LL say, I want to get from you know, Frank and to Liverpool Street, and that's all kind of running on top of a dress. But the really cool thing is they've opened up all that information so they don't have to develop. Those ups themselves are effectively crowd sourcing the development of those APS. So they've got some four thousand developers now working against all this data. Ah, Delight recently did a study. They reckon it's goingto generate economic benefits of one hundred thirty million pounds per annum just by making this really time data available. So So you're gaining unique business in size. But not only that, you've got organizations like city mapper who can commercialize that data develop, perhaps, and sell those apse on behalf of you know, you took to the community and so on. So you've got double bubble of s on the engagement, but also the public benefit as well. So that's really cool >> now, years ago Ah, in a past life, I had an opportunity when I worked for I d see the research company to run the government business. And when I went around and talked to the heads of military heads, the heads of agencies, there was a common theme. They were trying to close the gap between public sector and commercial. Yeah, and they never quite could get there. The cloud seems to me, Chris, to be changing that. I mean, to me, the CIA deal in twenty thirteen was a seminal moment for just the cloud and need of us specifically. But increasingly, you're seeing innovation. Yeah, it's still very difficult because you get turnover and agencies and administrations and so forth. But what are you seeing in terms of of those trends? Are you seeing public sector organizations leaning in modernizing? And again, what role does the cloud play there? >> Yeah, one hundred cent. I think you're absolutely rise. It is a unifier. In that sense we worked with, you know, we're moving mission systems to the cloud now with our customers. Ah, we worked with Dr Vehicle Stands Agency. So they're responsible for making sure our car's unroadworthy in the UK. They migrated their entire platform, which supports on thirty thousand small businesses. Try the rest in ten weeks. So it's amazing what public sector organizations are able to achieve with the pace of cloud. And a lot of it starts with experimentation. You know, that's the great thing is that you can try something. If it doesn't work, you can turn it off and you haven't lost anything but that that pace of being out to move, even mission systems. So the cloud is happening in public sexual across the board, >> and I mentioned the CIA before they start to be the American sort of parachuting in, and it's obviously a bias that I have. I'm working on my accent. But But But But the CIA was significant because everybody in the early days were so concerned about security that the head of tea in the CIA stood up last year at the D. C. Public sector Summit and said, My worst day of security in the cloud is better, far better than my client server ever. Wass. Yeah. So what about security concerns? Have they abated? They they still there? How is that evolving? >> Well, I think first of always, absolutely right that public sector organizations one hundred percent laser focused on security. But the good news is that we are to you know, its job. Zero for us is absolutely everything that we don't live and breathe by. And I think we've demonstrated that in a number of ways. I mean first of all, just the way in which we operate our physical infrastructure and everything that we do it physical pace, but then above the layer with the kind of the things that are a customer's responsible for. We have something called a shared responsibility model, so the responsibility for kind of everything above the physical infrastructure, but we provide the tools that they just never would've been able to get access to in a in a physical world, you know what our CEO's in public sector organizations do You know every servant you have, you know, just things like that. And they would just be like Now I've got no idea, but with a cloud, you have that visibility. You can see every single thing that's happening in the environment. So you get farm or visibility in control that he ever was ever were able to in a physical world. So I think that's first thing and obviously everything that we do around certification atter stations around. I so certification all the reporting and so on that we do Teo to assure our customers that we do a good job of that level as well. Ministry of Justice actually came out and said you could be more secure in the cloud than on premises and you have to focus on those areas where you're not in the cloud. So I think that was a huge testament by the UK. Come and say, Actually, this is this is secure, and this is fit for purpose, which is which is good. >> One of the things I've observed boat just technology adoption in general. You know, Silicon Valley's unique, obviously, And but, you know, outside of Silicon Valley, maybe technology adoption, you know, twenty years ago occurred more slowly. It seems like cloud adoption is very much consistent across the globe. I wonder if you could talk about that, But then specifically, public sector jobs in the cloud Do you see this Very similar sort of cadence from, you know, us rest of >> world? Yeah, I do. And I think you know, we were doing a fantastic job in the UK, Actually. Really fantastic job. Talked about some of stuff we're doing round. I I am machine learning. You know, some of these things are really leading edge on DH. If you speak to a miss earlier, they're investigating things like Blockchain for their tops of solution. So these sort of things are really pushing the boundary. But Paramount, All of that is this idea that you can experiment to try things. There's no longer there's a kind of is no longer a disparity around. Think something's fundamentally when you when you log into the console, you got access to one hundred sixty five different things and you can get going with you in the UK whether you're in the candor or in North America. So our customers are picking these things up on DH, accelerating a pace, which is which is fantastic trying all different types of things and work lights. >> Okay, if I were to ask Alexa what's gonna happen with Brexit, what would what would you tell me? I think first of >> almost, you know, with the way we think about it is it's just business as usual for us. You know, it's a fairly mundane answer, but fundamentally, you know, organization still need to adapt. This stone is transformed. They still need to evolve, and that's where we're helping and we're leaning in, you know, we're helping them with some of their EU accept programs around tooling and process and things like that. But I still came to adopt cloud a place which is which is also >> so come back to the session that you guys are running downstairs. I saw some of descriptions of it and I think there were three areas of focus. The public payers, the health care providers in the publicly funded research organizations is kind of what you guys are focused on today. So maybe close there and give us a vision for where you see eight of us public sector in the UK and >> I I think this were obviously healthcare's really fast growing vertical for us, which is fantastic upper across the board. Demand has never been greater, which is phenomenal on DH were really pushing the boundaries of what can be achieved. Yeah, we're working with, you know, I talked about some the public sector organizations with working with, you know, partners like he miss, but also small businesses as well as great example. Working with a company called Ad Zuna, which provides job search functionality. They run on a dress and they want a contract for Jobcentre Plus, which part of our department work and pensions. So it's not just the direct engagement we have with our customers. But it's also a ll the partners that we're working with to enable that in tow and functionality, which is which is really good. So we're doing a lot, lots of work in that space. And I could liken see Maura Mohr organizations not just customers in customers, but also partners technology providers coming to talk to us. Ah, and then across the spectrum, in health care, whether it's supplies to the chess or at the NSS himself, an individual trusts and and hospitals and so on, the kind of using our technology. So it's a real broad mixing spectrum of adoption. >> Outstanding, Chris, thanks so much for coming on. The Cube really appreciate it. And they were seeing the growth of a device is a DBS is actually astounding thirty billion dollars run rate company growing at forty plus percent a year. But more importantly, you're starting to see not only region expansion, but you're seeing expansion into specific verticals and ecosystems forming startups. And you guys are doing a great job of attracting these. Thanks very much for coming. Thanks. Thanks. Alright, Keep it right there. Buddy. This is David, Dante and the Cuba right back. Right after this short break. Wait