>> Announcer: Live from Barcelona Spain, it's theCUBE! Covering Cisco Live 2020, brought to you by Cisco and its ecosystem partners. >> Welcome back, this is theCUBE's live coverage of Cisco Live 2020 here in Barcelona, Spain. I'm Stu Miniman, my cohost for this segment is Dave Vellante, John Furrier is also in the house. We're doing about three and a half days, wall-to-wall coverage. The surface area that we are covering here is rather broad and I use that term, my guest is laughing, Vikas Butaney, who is the Vice President of IoT, of course. Extending the network to the edge, to the devices, and beyond with Cisco. Thank you so much for joining us. >> It's great to be here. >> All right, the IoT thing. I've worked with Cisco my entire career, I've watched through the fog computing era for a couple of years. Edge of course, one of the hottest conversations, something that I bought up in many of the conversations, the across the portfolio but Liz Centoni was up on the main stage for the day one keynote talking a lot about IoT and IT and OT and your customers of the like. So let's start there, what's new, and how does IoT fit into the overall Cisco Story? >> Absolutely. So as Liz was on the main stage and David talked about the cross domain and multi-domain architecture; Now, IoT and our operational environment is one of the key domains within that environment. And what Liz announce yesterday are two pieces of news that we are releasing at Cisco Live. First of them is an IoT security architecture which ties together the capabilities with cyber vision and then integrates it within the rest of our IT security portfolio and the second part that I'm also excited to talk about is Edge Intelligence. It's about how we are helping our customers extract the data at the edge, then deploy and move it to wherever the applications are in the multicloud environment. >> You know, we definitely want to dig into those pieces, but IoT is such a diverse solution set so it's often helpful to talk about specific industries, any customer examples so what can you share with us there to help illuminate where Cisco's helping the customers love the security angles and edge? >> That's right. Just a level set, when we think about industrial IoT we're really talking about the heavier industries, plant environments for a manufacturing company. We're thinking about roadways for a public sector customer. We're thinking the grid for utility environments. We're thinking refineries and oil extraction upstream environments, right. So this is the kind of spectrum in which we are working in, where customers have real businesses, real assets where the operations is the heart of the enterprise that they are running. And the technology can really be a revolutionary change for them to help them connect and then extract the data and then make sense of the data to improve their business practice so industrial IoT, whether you're a roadway in Austria like Asfinag, you're a utility in Germany like NRG, or EDF in France as an example. Enel in turn in Italy, all of these industries and all of these customers are using industrial IoT technologies in running their businesses better today. >> Where are we in terms of that critical infrastructure being both connected and instrumented? Where are we on the adoption curve? >> Sure, look and many of these industries we have talked about SCADA systems, right, that have been here for thirty plus years for our customers and most of those is really a one-way flow of information, right. And typically customers stood up separate side load networks which weren't really connected to the rest of the enterprise so, Rockwell has a saying from the shop floor to the top floor, right like how the digital enterprise where all of these environments are coming together is where customers are. Critical infrastructure, as you said, in this day and age with security and other kind of threats, customers are a little hesitant about how they connect it all together. But Cisco is working with these customers and helping them think through the benefits they can get but also make sure, from a cyber security point of view, that you're helping protect assets, manage these environments because you can't just arbitrarily connect them because IT tool sets just are not ready to manage these environments. >> I love that all the examples you gave were European, of course, being here in Europe. I'm curious, there's some technologies where North America might take the lead or Asia might take the lead. Is IoT relatively distributed? Is Europe kind of on-par or with the rest of the world when it comes to general adoption? >> What we have found in Europe, because of many countries like Germany leading in the renewable energy effort, and the climate is a big focus here. Data privacy and concerns around data sharing are much more top-of-mind in Europe, so we find those kind of use cases getting adopted much much faster. In Germany, as an example, NRG which is one of our customers, and they were here with us last year at Cisco live and we launched a capability with them. They are trying to manage the real time flow of energy in their grid environment, such that make sure there are no outages, no brownouts in these environments. So utilities and customers like that across Europe are adopting technology faster. Manufacturing, as always, is a leading use case. There we see some of the automotives in US are leading a little bit more in getting environments connected to their environment but overall, IoT is a global market. We work, we have over 70,000 enterprise IoT customers today at Cisco so we are fortunate to be able to serve these customers on a global basis across the range of industries I talked about earlier. >> In a lot of respects too, I would say the US is behind, right, when you look at public policy from a federal standpoint, the US doesn't really have a digital strategy from an overall perspective whereas certainly India does and countries in Europe. You look at the railway systems in Europe. >> Vikas: Much more advanced, yeah. >> Beautiful and shiny and advanced. So I would say the US has a little bit of work to do here, in my perspective. >> That's right, in India Prime Minister Modi started the effort around One Hundred Smart Cities, right, and Cisco is working with many of those smart cities with our Cisco Kinetic for Cities to kind of create, connect all of the sensor networks. Video surveillance, safety, environmental sensors, managing the flow of that data and digitizing those environments, right, and in Europe we've been working in France, Germany, Italy, UK. I think we are seeing much more adoption in these specific industries but it's a global market and again, like I said, 70,000 customers, we get to see quite a bit of the landscape around the globe. >> What should we know about the architecture? Can you give us kind of a high-level summary? What are the basics? >> Sure, so in the comprehensive IoT security architecture we released this week, it really starts with, you have to be able to identify the devices, right. In IT environments, you know, to your laptop and to your PC, they have been managed by MDM technologies for years but in the industrial environment I might have a programmable logic controller that I deployed 15 years ago. It's not ready for modern capabilities so what you really have to start with is identifying all of these assets in the communication baselines that are happening there, that's step one. Step number two is really, now that I know that this is a PLC or that's a controller, I need to come up with a policy, a security policy which says this cell in a plant environment can only talk to the other cell but doesn't need to talk to a paint zone. So I'll give you an example in automotive, if I'm welding a car, I'm building a car, the welding robots need to be communicating with each other. There's no real reason that the welding robot needs to talk to the paint shop, as an example. So you can come up with a set of policies like that to keep these environments separate because if you don't, then if there is one infection, one malware, one security, then it just traverses your whole factory. And we know customers in Europe that their networks have gone down and they've impacted 150 to 200 million dollars of downtime impact. >> Well we had a real world use case 10 years ago or so with Stuxnet with Siemens PLC and boom it went all over the world, I mean it was amazing. >> Exactly right, so again back to identification then I create the policy, then I implement the policy within our switching or a firewall network but you're never done so you have to keep monitoring on a real time basis as the landscape changes. What's happening, how do I keep up with it? And that's where things like anomaly detection are super important, right, so those are the four steps off the architecture that I want to talk about. >> So it sounds like something like cyber security is both a threat and an opportunity of bringing together IT and OT. Bring us inside a little bit those dynamics, we know it's one of the bigger challenges in the IoT space. >> Yeah, I mean I think, look, both parties whether I'm an operational person or an IT person, both of us, both audiences have their own care-abouts. If I'm a plant manager, I'm measured on number of units I'm producing, the quality, the reliability of my products. If I'm in IT I really am measured on downtime of the network or the cyber security threat. There aren't really common measurable capabilities but cyber and security, it kind of brings both the parties together. So when we use our cyber vision product, we're able to provide to that plant manager visibility to what's happening, how are their PLC's performing, did anybody change my program, is my recipe for my given product I'm making secure and safe? So you have to appeal to the operational user with what they care about. IT really cares about to manage the threat surface, don't let that threat kind of propigate. Now at the board level because the board sees both sides of it, they're asking these teams to work together because they have a complimentary skill set. >> Well I think that's critical because, rhetorical question, who's bigger control freaks? Network engineers or operation technology engineers? They both, you know, keep that operation going and are very protective of their infrastructure. So it's got to come from top down and it is a board level discussion, right? >> Yeah that's right, we have customers where, you know, the board, the CEO has mandated to say listen, whether it's for the national threat actors or other corporate espionage, I need to protect the corporate intellectual property. Because it's not just a process, it's also about safety of employees and safety of their assets that comes into play, right. So when some of the customers we're working with, where the CEO has kind of dictated that the IT teams help the operational environments, but it is a two-way street, like, there has to be value for both parties to come together to solve these challenges. >> Okay so we talked a little bit about the threat, also when we're talking IoT, there's all that data involved. What's the opportunity there for customers with data, how's Cisco involved? >> Absolutely, look, I think one of the reasons customers are doing digitization projects is because they're trying to use the data to make better business decisions. It has to improve, yield, and meet their KPI's of their industry. So far what we have seen is that all of the data is really trapped in all of these distributed environments. Gartner tells you that 75% of the data will be produced at the IoT edge. But our customers to date have not had the tool set to be able to get access to the data, cleanse the data at the edge of the network, bring the right data that they can create insights with, and improve their businesses so it's been a heterogeneous environment, lots of protocols, lots of legacy, so that's kind of what our customers are struggling with today. >> Yeah, absolutely and most of that data is going to stay at the edge so I need to be able to process the edge. Heck I even went to a conference last year, talked about satellites that are collecting all of the data, I need to be able to have the storage, the processing, the compute there because I can't send all of the data back, as fast as it is. So it's a changing architecture as to where I collect data, where I process data. We think it is very much additive to traditional cloud and data center environments today, it's just yet another challenge that enterprises need to deal with. >> That's right, so the work that Cisco is doing in the IoT edge environment is we are enabling these customers to connect their remote terminal units, their machines, and their robots and providing them the tool set with four capabilities. First, extract the data. So we have a set of protocols like Modbus, like OPC UA where they can extract the data from their machine so that's step number one. Second is to transform the data, as you said, over an LTE circuit or over a connection, I'm not going to be able to send all of the data back so how do I transform the circuit, transform the data where I maybe take an average over the last five minutes or I kind of put some functions, and we are providing, as we are in the Devnet zone, we are providing developers the capability such that they can use visual studio, they can use Javascript to write logic that can run right at the edge of the network so now you have extracted the data, you have transformed the data. Governance is a key topic, who should have access to my data, especially here in Europe where we're concerned about privacy, we're concerned about data governance. We are enabling our customers to come up with the right logic by which if there's a machine data and you are the supplier, I'm only going to give you the data, the temperature, the vibration, the pressure that you need to support the machine, but I'm not going to give you the number of units I produce. I'm not going to give you the data about my intellectual property. And then you have to integrate to where the data is going, right. So what we're doing is we are working with the public cloud providers, we are working with software ISVs, and we are giving them the integration capability and the benefit of this for the customer is we have done pre-integration on the extraction part and we have done pre-integrations on the delivery part, which allows the projects to go faster and they can deliver their IoT efforts. >> So how do you envision the compute model at the edge, I mean, probably not going to throw a zillion cores so maybe lighter weight components, and I have some follow up on that as well. >> Sure, absolutely. Look, Moore's law is a friend of ours here, right, like with every cycle, every generation of CPU technology, you get more and more compute capabilities. So the IoT gateways that we provide to our customers today have four ARM cores in them. We are using a couple, two of those ARM cores for the networking function but those cores are available for our customers. We have designed an extra memory for them to be able to process these applications and we give them SSD and some storage at that so we can provide up to sixty gigs or one hundred gigs of storage so now that gateway, that communication device, a router, a switch that's at the edge of the network can kind of do a dual purpose. It can not only process and provide you security for the communications but is now an edge processing node so we call them IoT gateways and I can tell you, we are deploying these kind of products on buses. You know, in a mass transit bus, we all ride these buses, there are over six systems that are on that bus. A video surveillance system, I'm going to monitor the tire pressure, I want to monitor if the driver is going over the speed limit. We have now connected all of these systems and we are running logic at the edge such that the riders have a safer experience and then they can get real time visibility to where the bus is as well. >> Yeah and my follow up was on persisting, so you mentioned storage, you know, flash storage at the edge and then you also referred to earlier the challenges this data today is locked in silos or maybe it's not even persisted, it's analog data sometimes. So do you envision, if you think about successful digital companies, kind of born digital, data's at the core and traditionally big manufacturing firms, large infrastructure, the manufacturing plant is the center of the universe and data sort of sits around it. Do you envision a period where that data is somehow virtualized and we have access to it, we could really build digital businesses around that data, what are your thoughts? >> Absolutely. So we have been working with a customer, it's a steel manufacturer in Austria, the heartland of Europe as an example. And they make high quality steel, right, and when they're building the high quality steel, they have two hundred different machine types and like you're saying, the data is trapped in there. This customer is trying to digitize and trying to do that but they have been struggling for the last two years or so to be able to get the data because it's a variety of machines and they want to use our IoT services but they haven't been able to pipeline the data all the way to their cloud environments so that was one of our lighthouse customers and we worked with them like, you know, roll up your sleeves and kind of designed the system with them. And we worked to get that data such that now, they're not quite a born-digital company but they are a hard manufacturing company, they can get the best of the tool sets and analytics and all of the things that contemporary tech companies use and they can bridge them into this digital environment. >> Yeah and this is how the incumbents can compete with the sort of digital natives, right I mean it's an equilibrium that occurs. >> That's right, I mean look we love the digital companies but they're not really, they don't have physical assets there or out there working. They're working in a more physical or more of the real economy whether if you are an oil company and you're getting, extracting oil from a pumpjack, right, well you need to still have the capability to do that better. So that's what we're doing, whether you're a transportation, like the bus example I gave you, an oil and gas company whose trying to extract oil from the ground or you are a manufacturer or you're a utility, if we improve use of our digital technologies and operate, improve the efficiency of the business, a 0.1%, a 1%, that has got a much much bigger implication for us as a society and the world at large. But just making them better and more efficient. >> Huge productivity gains. >> Exactly right, that's right, right. >> Massive, yeah. >> So I think that technology and IoT technologies can benefit all of these industries and you know Cisco is kind of invested and kind of helping our 70,000 customers to get better with all of these capabilities. >> Awesome, congratulations. 70,000 customers, big number, rolling out IoT solutions. Look forward to keeping track of Cisco's IoT solutions. >> Super excited to be here, thanks again. >> For Dave Vellante, I'm Stu Miniman, back with lots more wall-to-wall coverage here at Cisco Live 2020 in Barcelona. Thanks for watching theCUBE. (upbeat music)

(techno music) >> Live, from Washington DC, it's theCUBE. Covering AWS Public Sector Summit, 2018. Brought to you by Amazon Web Services and its ecosystem partners. >> Okay, welcome back, everyone, this is the live CUBE coverage here in Washington DC for AWS Public Sector Summit 2018. This is the, kind of like the reinvent for Public Sector. I'm John Furrier, f my co-host Stu Miniman, our next guest is Hardik Bhatt, Smart Cities Vertical Lead for Amazon Web Services, been a former CIO, knows the state and local governments cold. This is a very key area around Internet of Things and technology with cloud, because smart cities have to do not only technology roll outs for some of the new capabilities, but all manage some of the societal changes, like self-driving cars and a variety of other things, from instrumenting sensors and traffic lights and video cam ... I mean, this is a little, just a little ... Welcome to theCUBE. >> Thank you very much, John. Good to see you, Stu, good morning. Looking forward to having a great conversation. >> So, smart cities obviously is really hot, but we love it, because it brings life, and work, life, and play together, because we all live in towns, and we live in cities, and the cities provide services to the residents, transportation, sidewalks, and things that we take for granted in the analog world. Now there's a whole digital set of services coming big time. So, are they prepared? (laughs) It used to be buy a mainframe, then move it to a minicomputer, get a Local Area Network, buy some PCs, buy some network tablets, now the cloud's here. What's your assessment of the smart cities landscape for state and local governments? Because it really is something that's on the front burner, in terms of figuring it out. What's the architecture? Lot of questions. What's your, what's the state of the union, if you will, for-- >> You know it has been, like, how the governments have been for many years, right? Governments exist so that they can provide better services, they can provide better quality of life, they can create an environment where businesses thrive, jobs can be created, education can be given, and you can build a workforce and talent, et cetera. And smart cities is just, I'd say, a trend where, you know, you're using multitudes of technology to kind of help the government get its mission accomplished in a smoother, faster, better, cheaper manner. And a lot of times, I've seen, because how smart cities movement started a decade ago, we kind of compare smart cities with the Internet of Things or the sensors, but smart cities is much more than just the IoT, or the Internet of Things, I mean if you're talking about creating a new stream of data that is real-time, whether coming in from sensors, coming from video, you already as a government, I used to be a CIO for the City of Chicago, we used petabytes of data that was already sitting in my data center, and then there's also this whole third-party data. So smart cities is a lot about how do you as a city are aggregating this different sources of data and then making some action from it, so that ultimately, going back to the city's priorities, you are giving better public safety, or you're providing better public health, or you're providing better education or you're providing, better providing government services. So that's what we are seeing. Our customers are, when we say smart cities, they jump right into, "What problems are you solving?" And that, to me, is the core for Amazon, core for Amazon Web Services. We want to know our customers' problems and then work backwards to solve them. >> What are some of the problems right now that are low-hanging fruit? Because obviously it's an evolution. You set the architecture up, but ultimately governments would love to have some revenue coming in from businesses. You mention that. Education is certainly there. What are some of the challenges there? Is it pre-existing stuff, or is it new opportunities? What are some of the trends you're seeing for use cases? It is actually both pre-existing stuff that they are trying to solve, as well the new stuff, the new opportunities that are getting created, because the technology is much different than what it used to be 10 years ago. The cloud, especially, is creating a lot more new opportunities, because of the nimbleness it brings, the agility it brings. So, in transportation side, we are seeing on one hand, multiple departments, multi-jurisdictional, so state transportation department, as well as a local transportation department, working together to create kind of a virtual information sharing environment or a virtual command center, so that they can detect an accident, a traffic incident, much quicker and respond to that, because now they can aggregate this data. And they're also now adding to that some public safety information. So whether it is a police department, fire department, EMS, so that they can address that incident quickly and then not only clear the traffic and clear the congestion, or reduce the congestion time, but they can also address the, any public safety issue that may have arisen out of that incident that has happened. So, the Department of Transportation, the USDOT, through the Federal Highway Administration, has been giving out $60 million worth of grants to six to ten recipients. The grant, this year's grant period, just closed on Monday, and we worked with multiple customers who are looking to kind of respond to that. So on one hand, it is that. So this is an age-old problem, but new technology can help you solve that. On the other hand, another customer that we worked with is looking for on-demand micro-transit solutions. As you can see, all the ride-sharing applications are making easier to jump in a car and move to one place to the other. It is causing a dip in transit ridership. So the public transit agents, they are looking for solutions to that. So they are looking at, "Can we build an on-demand microtransit "so you can pool your friends and jump into a transit van, as opposed to a private car?" And then you can go from point A to point B in a much more affordable manner. So they are looking at that. On the public health side, you know, we have the DC Benefits Exchange, Health Benefits Exchange, is on AWS, and they have seen significant savings. They have seen $1.8 million of annual savings because they are using cloud and cloud services. On the other hand, you have State of Georgia, which is using Alexa. So they have built Alexa Skills where you can ask, as a resident of State of Georgia getting SNAP benefit, the Supplemental Nutritional Assistance, the food-stamp program, you can say, "Alexa, what's my SNAP balance?" So based on the answer then, based on the balance you know, you can plan your, you know, where you're going to use that money. So we are seeing large volume of data now coming on the cloud where the governments are looking to move kind of the needle. We are also seeing this nimble, quick solutions that can start going out. And we are seeing a lot of driver behind the innovation is our City on a Cloud challenge. So we have seen the City on a Cloud winners, since last so many years, are kind of the ones who are driving innovation and they're also driving a lot of collaboration. So I can, there are three trends that I can jump into as we kind of talk more. >> Yeah, it's interesting. I think back a decade ago, when you talk smarter cities, you'd see this video, and it would look like something out of a science fiction. It's like, you know, "Oh, the flying taxi'll come, "and it will get you and everything." But what I, the stories I have when I talk to CIOs in cities and the like, it's usually more about, it's about data. It's about the underlying data, and maybe it's a mobile app, maybe it's a thing like Alexa Skills. So help us understand a little bit, what does the average citizen, what do they see? How does their, you know, greater transparency and sharing of information and collaboration between what the agencies are doing and, you know, the citizenship. >> I think that's a great question. I mean that is what, as a former CIO, I always had to balance between, what I do creates internal government efficiency, but the citizens don't feel it, don't see it, they don't, it doesn't get in the news media. And on the other hand, I also have to, to my governor, to my mayor, to the agency directors, have to give them visible wins. So, I'll give you an example, so City of Chicago, back in the day, in 2010 when I was the CIO. We did a contract with our AWS, currently AWS Partner Socrata, to open up the data. So that was kind of the beginning of the Open Data Movement, and eventually, I left the city, I went work for Cisco, and the city government continued to kind of build on top of Socrata. And they build what they called the Windy Grid, which is basically bringing all of their various sets of data, so 311, code violations, inspections, crime, traffic, and they built an internal data analytics engine. So now, agencies can use that data. And now, what they did, two years ago, they were one of the City on a Cloud Challenge winners, and they, Uturn Data Solutions is our partner that was the winner of that, and they built Chicago Open Grid. So they basically opened that up on a map-based platform. So now as a citizen of Chicago, I can go on Chicago Open Grid, and I can see which restaurants in, surrounding my area, have failed inspections. Have they failed inspection because of a mice infestation, or was it something very minor, so I can decide whether I want to go to that restaurant or not. I can also look at the crime patterns in my area, I can look at the property values, I can look at the education kind of quality in the schools in my neighborhood. So, we have seen kind of now, and it's all on AWS cloud. >> This open data is interesting to me. Let's take that to another level. That's just the user side of it, there's also a delivery value. I saw use cases in Chicago around Health and Human Services, around being more efficient with either vaccines, or delivery of services based on demographics and other profile, all because of open data. So this brings up a question that comes up a lot, and we're seeing here is a trend, is Amazon Web Services public sector has been really good. Teresa Carlson has done an amazing job leaning on partners to be successful. Meaning it's a collaboration. What's that like in the state and local government? What's the partner landscape look like? What are the benefits for partners to work with AWS? Because it seems obvious to me, it might not be obvious to them. But if they have an innovative idea, whether it's to innovate something on the edge of the network in their business, they can do it, and they can scale with Amazon. What is the real benefits of partnering with AWS? >> You hit a key point on there. Teresa has done a fantastic job in customer management as well as building our partners. Similarly, we have a great leader within the state and local government, Kim Majerus. She leads all of our state and local government business. And her focus is exactly like Teresa: How can we help the customers, and also how can we enable partners to help customers? So I'll give you and example. The City of Louisville in Kentucky. They were a City on a Cloud winner, and they, basically what they're building with a partner of ours, Slingshot, they (laughs) get, I was, I used to be in Traffic Management Authority, back in my days, and we used to do traffic studies. So, basically, they send an intern out with clicker or have those black strips to count the number of cars, and based on that, we can plan whether we want to increase the signal timing on this approach, or we can plan the detours if we close the street, what's the, and it's all manual. It used to take, cost us anywhere from 10 to 50 thousand dollars, every traffic study. So what Louisville did with Slingshot is they got the free Waze data that they get gives all of the raw traffic information. Slingshot brought that on to a AWS platform, and now they are building a traffic analysis tool, which now you can do like a snap of a finger, get the analysis and you can manage the signal-approach timing. The cool thing about this is, they're building it in open source code. And the code's available on GitHub, and I was talking to the Chief Data Officer of Louisville, who's actually going to be speaking at this event later today. 12 other cities have already looked into this. They've started to download the code, and they are starting to use it. So, collaboration through partners also enables collaboration amongst all of our customers. >> And also, I'd just point out, that's a great example, love that, and that's new for me to hear that. But also, to me the observation is, it's new data. So being able to be responsive, to look at that opportunity. Now, it used to be in the old world, and I'm sure you can attest to this, being a CIO back in the day, is okay, just say there's new data available, you have to provision IT. >> Oh my God, yeah. >> I mean, what, old way, new way. I mean, compare and contrast the time it would take to do that with what you can do today. >> It's a big, huge difference. I'll tell you as the CIO for the State of Illinois, when I started in early 2015, in my first performance management session, I asked my Infrastructure Management Team to give me the average days it takes to build a server, 49 days. I mean, you're talking seven weeks or maybe, if you talk, 10 business weeks. It's not acceptable. I mean the way the pace of innovation is going, with AWS on cloud, you are talking about minutes you can spin up that server. And that's what we are seeing, a significant change, and that's why Louisville-- >> And I think you got to think it's even worse when you think about integration, personnel requirements, the meetings that have to get involved. It's a nightmare. Okay, so obviously cloud, we know cloud, we love cloud, we use cloud ourselves. So I got to ask you this could, City in a Cloud program, which we've covered in the past, so last year had some really powerful winners. This has been a very successful program. You're involved in it, you have unique insights, you've been on both sides of the table. How is that going? How is it inspiring other cities? What's the camaraderie like? What's the peer review? Is there a peer, is there a network building? How is that spreading? >> That is actually enabling collaboration in a significant manner. Because, you know, you are openly telling what you want to do, and then you are doing that. Everybody is watching you. Like Louisville is a perfect example where they built this, they're building this, and they're going to share it through open source code to all the cities. 12 is just the beginning. I'd not be surprised if there are 120 cities that are going to do this. Because who doesn't want to save two hundred, three hundred thousand dollars a year? And also lots of time to do the traffic studies. Same thing we have seen with, as Virginia Beach is building their Early Flood Warning System. There are other cities who are looking into, like how do we, New Orleans? And others are looking at, "How do we take what Virginia Beach has built? "And how can we use it for us?" And yesterday, they announced this year of the winners that includes Las Vegas, that includes LA Information Technology Department, that includes the City of Philadelphia, and I've been in conversations with all of the CIOs, CDOs, and the leaders of these agencies. The other thing, John, I have seen is, there's a phenomenal leadership that's out there right now in the cities and states that they want to innovate, they want to collaborate, and they want to kind of make a big difference. >> Hold on, hold on, so one more question, this is a really good question, want to get, follow-up on that. But this, what you're talking about to me signifies really the big trend going on right now in this modern era. You've got large cloud scale. You have open source, open sharing, and collaboration happening. This is the new network effect. This is the flywheel. This is uniquely different. This kind of categorizes cloud. And this wasn't available when IT systems and processes were built, 20, 30 years ago. I mean, this is the big shift, you, I mean do you agree? >> Absolutely, this is the big shift, the availability of the cloud, the ubiquitous nature of mobile platform that people have. The newer way of, like, the natural language processing, use of Alexa is becoming so prevalent in government. I mean, in City of Chicago, 50% of the 311 calls that we used to get in 2010, 3 1/2 million of those were informational in nature. If I could offload that on to my Alexa Skills, I can free up my workforce, the 311 call-takers, to do much better, higher-level, you know, call-taking, as opposed to this. So you're absolutely right. I've seen the trends we are seeing is, there is lots of collaboration going on between the governments and partners. I'm also seeing the governments are going at modernization from different points based on their pain points. And I'm also seeing a definite acceleration in modernization. Government, because the technology, AWS, the cloud, our services that we are seeing. And the pace of innovation that AWS brings is also enabling the acceleration in governments. >> Yeah, to help put a point on the, on the conversation here, there's been for years discussion about, "Well, what is the changing role of the CIO?" You've sat on that side of the table, you know, worked with lots of COs, what do you see is the role of the future for the CIO when, specifically when you talk state and local governments? >> I would say CIO is the kind of has to be an enabler of government services. Because if I go back to my city days and working with a mayor, or my state days, working with a governor, at the end of the day, the governor or the mayor is looking at creating better quality of life, providing better health, better education, better safety, et cetera. And CIO is kind of the key partner in that metrics to enable what the governor, what the mayor, the agency directors want to do. And because now data enables the CIO to kind of quickly give solutions, or AI services, Alexa and Polly and Rekog ... All of these things give you, give me as a CIO, ability to provide quick wins to the mayor, to the governor, and also very visible wins. We are seeing that, you know, CIO is becoming a uniquely positioned individual and leader to kind of enable the government. >> All right, thanks so much for comin' on theCUBE. Love the insight, love to follow up. You bring a great perspective and great insight and Amazon's lucky to have you on the team. Lot of great stuff goin' on in the cities and local governments. It's a good opportunity for you guys. Thanks for coming on, appreciate it. >> Thank you very much. >> It's theCUBE live here in Washington DC for AWS, Amazon Web Services Public Sector Summit, I'm John Furrier, Stu Miniman, again second year of live coverage. It's a packed house, a lot of great cloud action. Again, the game has changed. It's a whole new world, cloud scale, open source, collaboration, mobile, all this new data's here. This is the opportunity, this is what theCUBE's doing. We're doin' our part, sharing the data with you. Stay with us, more coverage from day two, here in Washington, after this short break. (techno music)

(upbeat music) >> Announcer: Live from Munich, Germany, it's the Cube covering DataWorks Summit Europe, 2017. Brought to you by Hortonworks. >> Hey, welcome back everyone. We're here live in Munich, Germany, at the DataWorks 2017 Summit. I'm John Furrier, my co-host Dave Vellante with the Cube, and our next two guests are Gianthomas Volpe, head of customer development e-media for Alation. Welcome to the Cube. And we have Bertrand Cariou, who's the director of solution marketing at Trifecta with partners. Guys, welcome to the Cube. >> Thank you. >> Thank you for having us. >> Big fans of both your start-ups and growing. You guys are doing great. We had your CEO on our big data SV, Joe Hellerstein, he talked about the rang, all the cool stuff that's going on, and Alation, we know Stephanie has been on many times, but you guys are start ups that are doing very well and growing in this ecosystem, and, you know, everyone's going public. Cloud Air has filed their S1, great news for those guys, so the data world has changed beyond Hadoop. You're seeing it, obviously Hadoop is not dead, but it's still going to be a critical component of a larger ecosystem that's developing. You guys are part of that. So I want to get your thoughts of why you're here in Europe, okay? And how you guys are working together to take data to the next level, because, you know, we're hearing more and more data is a foundational conversation starter, because now there's other things happening, IOT, business analysts, you guys are in the heart of it. Your thoughts? >> You know, going to be you. >> All in, yeah, sure. So definitely at Alation what we're seeing is more and more people across the organization want to get access to the data, and we're kind of breaking out of the traditional roles around IP managing both metadata, data preparation, like Trifecta's focused on. So we're pretty squarely focused on how do we bring that access to a wider range of people? How do we enable that social and collaborative approach to working with that data, whether it's in a data lake so, or here at DataWorks. So clearly that's one of the main topics. But also other data sources within the organization. >> So you're freeing the data up and the whole collaboration thing is more of, okay, don't just look at IT as this black box of give me some data and now spit out some data at me. Maybe that's the old way. The new way is okay, all of the data's out there, they're doing their thing, but the collaboration is for the user to get into that data you know, ingestion. Playing with the data, using the data, shaping the data. Developing with the data. Whatever they're doing, right? >> It's just bringing transparency to not only what IT is doing and making that accessible to users, but also helping users collaborate across different silos within an organization, so. We look at things like logs to understand who is doing what with the data, so if I'm working in one group, I can find out that somebody in a completely different group in the organization is working with similar data, bringing new techniques to their analysis, and can start leveraging that and have a conversation that others can learn from, too. >> So basically it's like a discovery platform for saying hey, you know, Mary in department X has got these models. I can leverage that. Is that kind of what you guys are all about? >> Yeah, definitely. And breaking through that, enabling communication across the different levels of the organization, and teaching other people at all different levels of maturity within the company, how they can start interacting with data and giving them the tools to up skill throughout that process. >> Bertrand, how about the Trifecta? 'Cause one of the things that I find exciting about Europe value proposition and talking to Joe, the founder, besides the fact that they all have GitHub on their about page, which is the coolest thing ever, 'cause they're all developers. But the more reality is is that a business person or person dealing with data in some part of a geography, could be whether it's in Europe or in the US, might have a completely different view and interest in data than someone in another area. It could be sales data, could be retail data, it doesn't matter but it's never going to be the same schema. So the issue is, got to take that away from the user complexity. That is really fundamental change. >> Yeah. You're totally correct. So information is there, it is available. Alation helps identify what is the right information that can be used, so if I'm in marketing, I could reuse sales information, associating maybe with web logs information. Alation will give me the opportunity to know what information is available and if I can trust it. If someone in finance is using that information, I can trust that data. So now as a user, I want to take that data, maybe combine the data, and the data is always a different format, structure, level of quality, and the work of data wrangling is really for the end user, you can be an analyst. Someone in the line of business most of the time, these could be like some of the customers we are here in Germany like Munich Re would be actuaries. Building risk models and or claimed for casting, payment for casting. So they are not technologies at all, but they need to combine these data sets by themselves, and at scale, and the work they're doing, they are producing new information and this information is used directly to their own business, but as soon as they share this information, back to the data lake, Alation will index this information, see how it is used, and put it to this visibility to the other users for reuse as well. >> So you guys have a partnership, or is this more of a standard API kind of thing? >> So we do have a partnership, we have plan development on the road map. It's currently happening. So I think by the end of the quarter, we're going to be delivering a new integration where whether I'm in Alation and looking for data and finding something that I want to work with, I know needs to be prepared I can quickly jump into Trifecta to do that. Or the other way around in Trifecta, if I'm looking for data to prepare, I can open the catalog, quickly find out what exists and how to work with it better. >> So basically the relationship, if I get this right is, you guys pass on your expertise of the data wrangling all the back processes you guys have, and advertise that into Alation. They discover it, make it surfaceable for the social collaboration or the business collaboration. >> Exactly. And when the data is wrangled, it began indexed and so it's a virtual circle where all the data that is traded and combined is exposed to the user to be reused. >> So if I were Chief Data Officer, I'd say okay, there's three sequential things that I need to do, and you can maybe help me with a couple of them. So the first one is I need to understand how data contributes to the monetization of my company, if I'm a public company or a for profit company. That's, I guess my challenge. But then, there are other two things that I need to give people access to that data, and I need quality. So I presume Alation can help me understand what data's available. I can actually, it kind of helps with number one as well because like you said, okay, this is the type of data, this is how the business process works. Feed it. And then the access piece and quality. I guess the quality is really where Trifecta comes in. >> GianThomas: Yes. >> What about that sequential flow that I just described? Is that common? >> Yeah >> In your business, your customer base. >> It's definitely very common. So, kind of going back to the Munich Re examples, since we're here in Munich, they're very focused on providing better services around risk reduction for their customers. Data that can impact that risk can be of all kinds from all different places. You kind of have to think five, ten years ahead of where we are now to see where it might be coming from. So you're going to have a ton of data going in to the data lake. Just because you have a lot of data, that does not mean that people will know how to work with it they won't know that it exists. And especially since the volumes are so high. It doesn't mean that it's all coming in at a greatly usable format. So Alation comes in to play in helping you find not only what exists, by automating that process of extraction but also looking at what data people are actually using. So going back to your point of how do I know what data's driving value for the organization, we can tell you in this schema, this is what's actually being used the most. That's a pretty good starting point to focus in on what is driving value and when you do find something, then you can move over to Trifecta to prepare it and get it ready for analysis. >> So keying on that for a second, so in the example of Munich Re, the value there is my reduction in expected loss. I'm going to reduce my risk, that puts money in my bottom line. Okay, so you can help me with number one, and then take that Munich Re example into Trifecta. >> Yes, so the user will be the same user using Alation and Trifecta. So is an actuary. So as soon as the actuary items you find the data that is the most relevant for what you'll be planning, so the actuaries are working with terms like development triangles over 20 years. And usually it's column by column. So they have to pivot the data row by row. They have to associate that with the paid claims the new claims coming in, so all these information is different format. Then they have to look at maybe weather information, or additional third party information where the level of quality is not well known, so they are bringing data in the lake that is not yet known. And they're combining all this data. The outcome of that work, that helps in the Reese modeling so that could be used by, they could use Sass or our older technology for the risk modeling. But when they've done that modeling and building these new data sets. They're, again, available to the community because Alation would index that information and explain how it is used. The other things that we've seen with our users is there's also a very strong, if you think about insurances banks, farmer companies, there is a lot of regulation. So, as the user, as you are creating new data, said where the data coming from. Where the data is going, how is it used in the company? So we're capturing all that information. Trifecta would have the rules to transform the data, Alation will see the overall eye level picture from table to the source system where the data is come. So super important as well for the team. >> And just one follow up. In that example, the actuary, I know hard core data scientists hate this term, but the actuaries, the citizen data scientist. Is that right? >> The actuaries would know I would say statistics, usually. But you get multiple level of actuaries. You get many actuaries, they're Excel users. They have to prepare data. They have to pin up, structure the data to give it to next actuary that will be doing the pricing model or the next actuary that will risk modeling. >> You guys are hitting on a great formula which is cutting edge, which is why you guys are on the startups. But, Bertrand I want to talk to you about your experience at Informatica. You were the founder the Informatica France. And you're also involved in some product development in the old, I'd say old days, but like. Back in the days when structured data and enterprise data, which was once a hard problem, deal with metadata, deal with search, you had schemes, all kinds of stuff to deal with. It was very difficult. You have expertise. I want you to talk about what's different now in this environment. Because it's still challenging. But now the world has got so much fast data, we got so much new IOT data, especially here in Europe. >> Oh yes. >> Where you have an industrialized focus, certainly Germany, like case in point, but it's pretty smart mobility going on in Europe. You've always had that mobile environment. You've got smart cities. A lot of focus on data. What's the new world like now? How are people dealing with this? What's your perspective? >> Yes, so there's and we all know about the big data and with all this volume, additional volume and new structure of data. And I would say legacy technology can deal as you mentioned, with well structured information. Also you want to give that information to the masses. Because the people who know the data best, are the business people. They know what to do with the data, but the access of this data is pretty complicated. So where Trifecta is really differentiating and has been thinking through that is to say whatever the structure of the data, IOT, Web Logs, Value per J son, XML, that should be for an end user, just metrics. So that's the way you understand the data. The next thing when play with data, usually you don't know what the schema would be at the end. Because you don't know what the outcome is. So, you are, as an end user, you are exploring the data combining data set and the structure is trading as you discover the data. So that is also something new compared to the old model where an end user would go to the data engineer to say I need that information, can you give me that information? And engineers would look at that and say okay. We can access here, what is the schema? There was all this back and forth. >> There was so much friction in the old way, because the creativity of the user is independent now of all that scaffolding and all the wrangling, pre-processing. So I get that piece of the Citizen's Journal, Citizen Analyst. But the key thing here is you were shrecking with the complexity to get the job done. So the question then comes in, because it's interesting, all the theme here at DataWorks Summit in Europe and in the US is all the big transformative conversations are starting with business people. So this a business unit so the front lines if you will, not IT. Although IT now's got to support that. If that's the case, the world's shifting to the business owners. Hence your start up. Is that kind of getting that right? >> I think so. And I think that's also where we're positioning ourselves is you have a data lake, you can put tons of data in it, but if you don't find an easy way to make that accessible to a business user, you're not going to get a value out of it. It's just going to become a storage place. So really, what we've focused on is how do you make that layer easily accessible? How do you share around and bring some of the common business practices to that? And make sure that you're communicating with IT. So IT shouldn't be cast aside, but they should have an ongoing relationship with the business user. >> By the way, I'll point out that Dave knows I'm not really a big fan of the data lake concept mainly because they've turned it into data swamps because IT deploys it, we're done! You know, check the box. But, data's getting stale because it's not being leveraged. You're not impacting the data or making it addressable, or discoverable or even wrangleable. If that's a word. But my point is that's all complexities. >> Yes, so we call it sort of frozen data lake. You build a lake, and then it's frozen and nobody can go fishing. >> You play hockey on it. (laughs) >> You dig and you're fishing. >> And you need to have this collaboration ongoing with the IT people, because they own the infrastructure. They can feed the lake with data with the business. If there is no collaboration, and we've seen that multiple times. Data lake initiatives, and then we come back one year after there is no one using the lake, like one, two person of the processing power, or the data is used. Nobody is going to the lake. So you need to index the data, catalog the data to know what is available. >> And the psychology for IT is important here, and I was talking yesterday with IBM folks, Nevacarti here, but this is important because IT is not necessarily in a position of doing it because doing the frozen lake or data swamp because they want to screw over the business people, they just do their job, but here you're empowering them because you guys are got some tech that's enabling the IT to do a data lake or data environment that allows them to free up the hassles, but more importantly, satisfy the business customer. >> GeanThomas: Exactly. >> There's a lot of tech involved. And certainly we've talked to you guys about that. Talk about that dynamic of the psychology because that's what IT wants. So what's that dev ops mindset for data, data ops if you will or you know, data as code if you will, constantly what we've been calling it but that's now the cloud ethos hits the date ethos. Kind of coming together. >> Yes, I think data catalogs are subtly different in that traditionally they are more of an IT function, but to some extent on the metadata side, where as on the business side, they tended to be a siloed organization of information that business itself kept to maintain very manually. So we've tried to bring that together. All the different parties within this process from the IT side to the govern stewardship all the way down to the analysts and data scientists can get value out of a data catalog that can help each other out throughout that process. So if it's communicating to end users what kind of impact any change IT will make, that makes their life easier, and have one way to communicate that out and see what's going to happen. But also understand what the business is doing for governance or stewardship. You can't really govern or curate if you don't know what exists and what matters to the business itself. So bring those different stages together, helping them help each other is really what Alation does. >> Tell about the prospects that you guys are engaging in from a customer standpoint. What are some of the conversations of those customers you haven't gotten yet together. And and also give an example of a customer that you guys have, and use cases where they've been successful. >> Absolutely. So typically what we see, is that an organization is starting up a data lake or they already have legacy data warehouses. Often it's both, together. And they just need a unified way of making information about those environments available to end users. And they want to have that better relationship. So we're often seeing IT engaged in trying to develop that relationship along with the business. So that's typically how we start and we in the process of deploying, work in to that conversation of now that you know what exists, what you might want to work with, you're often going to have to do some level of preparation or transformation. And that's what makes Trifecta a great fit for us, as a partner, is coming to that next step. >> Yeah, on Mobile Market Share, one of our common customers, we have DNSS, also a common customer, eBay, a common customer. So we've got already multiple customers and so some information about the issue Market Share, they have to deal with their customer information. So the first thing they receive is data, digital information about ads, and so it's really marketing type of data. They have to assess the quality of the data. They have to understand what values and combine the value with their existing data to provide back analytics to their customers. And that use case, we were talking to the business users, my people selling Market Share to their customers because the fastest they can unboard their data, they can qualify the quality of the data the easiest it is to deliver right level of quality analytics. And also to engage more customers. So it was really was to be fast onboarding customer data and deliver analytics. And where Alatia explain is that they can then analyze all the sequel statement that the customers, maybe I'll let you talk about use case, but there's also, it was the same users looking at the same information, so we engage with the business users. >> I wonder if we can talk about the different roles. You hear about the data scientists obviously, the data engineer, there might be a data quality professional involved, there's certainly the application developer. These guys may or may not even be in IT. And then you got a DVA. Then you may have somebody who's statistician. They might sit in the line of business. Am I overcomplicating it? Do larger organizations have these different roles? And how do you help bring them together? >> I'd say that those roles are still influx in the industry. Sometimes they sit on IT's legs, sometimes they sit in the business. I think there's a lot of movement happening it's not a consistent definition of those different roles. So I think it comes down to different functions. Sometimes you find those functions happening within different places in the company. So stewardship and governance may happen on the IT side, it might happen on the business side, and it's almost a maturity scale of how involved the two sides are within that. So we play with all of those different groups so it's sometimes hard to narrow down exactly who it is. But generally it's on the consumptions side whether it's the analyst or data scientists, and there's definitely a crossover between the two groups, moving up towards the governance and stewardship that wants to enable those users or document curing the data for them all the way to the IT data engineers that operationalize a lot of the work that the data scientists and analysts might be hypothesizing and working with in their research. >> And you sell to all of those roles? Who's your primary user constituency, or advocate? >> We sell both to the analytics groups as well as governance and they often merge together. But we tend to talk to all of those constituencies throughout a sales cycle. >> And how prominent in your customer base do you see that the role of the Chief Data Officer? Is it only reconfined within regulated industries? Does he seep into non-regulated industries? >> I'd say for us, it seeps with non-regulated industries. >> What percent of the customers, for instance have, just anecdotally, not even customers, just people that you talk to, have a Chief Data Officer? Formal Chief Data Officer? >> I'd say probably about 60 to 70 percent. >> That high? >> Yeah, same for us. In regulated industries (mumbles). I think they play a role. The real advantage a Chief Data and Analytical Officer, it's data and analytics, and they have to look at governance. Governance could be for regulation, because you have to, you've got governance policy, which data can be combined with which data, there is a lot. And you need to add that. But then, even if you are less regulated, you need to know what data is available, and what data is (mumbles). So you have this requirement as well. We see them a lot. We are more and more powerful, I would say in the enterprise where they are able to collaborate with the business to enable the business. >> Thanks so much for coming on the Cube, I really appreciate it. Congratulations on your partnership. Final word I'll give you guys before we end the segment. Share a story, obviously you guys have a unique partnership, you've been in the business for awhile, breaking into the business with Alation. Hot startups. What observations out there that people should know about that might not be known in this data world. Obviously there's a lot of false premises out there on what the industry may or may not be, but there's a lot of certainly a sea change happening. You see AI, it gives a mental model for people, Eugene Learning, Autonomous Vehicles, Smart Cities, some amazing, kind of magical things going on. But for the basic business out there, they're struggling. And there's a lot of opportunities if they get it right, what thing, observation, data, pattern you're seeing that people should know about that may not be known? It could be something anecdotal or something specific. >> You go first. (laughs) >> So maybe there will be surprising, but like Kaiser is a big customer of us. And you know Kaiser in California in the US. They have hundreds or thousands of hospitals. And surprisingly, some of the supply chain people where I've been working for years, trying to analyze, optimizing the relationship with their suppliers. Typically they would buy a staple gun without staples. Stupid. But they see that happening over and over with many products. They were never able to sell these, because why? There will be one product that have to go to IT, they have to work, it would take two months and there's another supplier, new products. So how to know- >> John: They're chasing their tail! >> Yeah. It's not super excited, they are now to do that in a couple of hours. So for them, they are able, by going to the data lakes, see what data, see how this hospital is buying, they were not able to do it. So there is nothing magical here, it's just giving access to the data who know the data best, the analyst. >> So your point is don't underestimate the innovation, as small as it may seem, or inconsequential, could have huge impacts. >> The innovation goes with the process to be more efficient with the data, not so much building new products, just basically being good at what you do, so then you can focus on the value you bring to the company. >> GianThomas what's your thoughts? >> So it's sort of related. I would actually say something we've seen pretty often is companies, all sizes, are all struggling with very similar, similar problems in the data space specifically so it's not a big companies have it all figured out, small companies are behind trying to catch up, and small companies aren't necessarily super agile and aren't able to change at the drop of a hat. So it's a journey. It's a journey and it's understanding what your problems are with the data in the company and it's about figuring out what works best for your solution, or for your problems. And understanding how that impacts everyone in the business. So it's really a learning process to understand what's going- >> What are your friends who aren't in the tech business say to you? Hey, what's this data thing? How do you explain it? The fundamental shift, how do you explain it? What do you say to them? >> I'm more and more getting people that already have an idea of what this data thing is. Which five years ago was not the case. Five years ago, it was oh, what's data? Tell me more about that? Why do you need to know about what's in these databases? Now, they actually get why that's important. So it's becoming a concept that everyone understands. Now it's just a matter of moving its practice and how that actually works. >> Operationalizing it, all the things you're talking about. Guys, thanks so much for bringing the insights. We wrangled it here on the Cube. Live. Congratulations to Trifecta and Alation. Great startups, you guys are doing great. Good to see you guys successful again and rising tide floats all boats in this open source world we're living in and we're bringing you more coverage here at DataWowrks 2017, I'm John Furrier with Dave Vellante. Stay with us, more great content coming after this short break. (upbeat music)

>> Narrator: Live from Silicon Valley, it's theCUBE, covering Google Cloud, Next 17. >> Hey, welcome back everyone. We're here live in the Palo Alto Studios, SiliconANGLE Media, is theCUBE's new 4400 square foot studio, here in our studio, this is our sports center. I'm here with Stu Miniman, analyst at Wikibon on the team. I was at the event all day today, drove down to Palo Alto to give us the latest in-person updates, as well as, for the past two days, Stu has been at the Analyst Summit, which is Google's first analyst summit, Google Cloud. And Stu, we're going to break down day one in the books. Certainly, people starting to get onto there. After-meetups, parties, dinners, and festivities. 10,000 people came to the Google Annual Cloud Next Conference. A lot of customer conversations, not a lot of technology announcements, Stu. But we got another day tomorrow. >> John, first of all, congrats on the studio here. I mean, it's really exciting. I remember the first time I met you in Palo Alto, there was the corner in ColoSpace-- >> Cloud Air. >> A couple towards down for fries, at the (mumbles) And look at this space. Gorgeous studio. Excited to be here. Happy to do a couple videos. And I'll be in here all day tomorrow, helping to break down. >> Well, Stu, first allows us to, one, do a lot more coverage. Obviously, Google Next, you saw, was literally a blockbuster, as Diane Greene said. People were around the block, lines to get in, mass hysteria, chaos. They really couldn't scale the event, which is Google's scale, they nailed the scale software, but scaling event, no room for theCUBE. But we're pumping out videos. We did, what? 13 today. We'll do a lot more tomorrow, and get more now. So you're going to be coming in as well. But also, we had on-the-ground, cause we had phone call-ins from Akash Agarwal from SAP. We had an exclusive video with Sam Yen, who was breaking down the SAP strategic announcement with Google Cloud. And of course, we have a post going on siliconangle.com. A lot of videos up on youtube.com/siliconangle. Great commentary. And really the goal was to continue our coverage, at SiliconANGLE, theCUBE, Wikibon, in the Cloud. Obviously, we've been covering the Cloud since it's really been around. I've been covering Google since it was founded. So we have a lot history, a lot of inside baseball, certainly here in Palo Alto, where Larry Page lives in the neighborhood, friends at Google Earth. So the utmost respect for Google. But really, I mean, come on. The story, you can't put lipstick on a pig. Amazon is crushing them. And there's just no debate about that. And people trying to put that out there, wrote a post this morning, to actually try to illustrate that point. You really can't compare Google Cloud to AWS, because it's just two different animals, Stu. And my point was, "Okay, you want to compare them? "Let's compare them." And we're well briefed on the Cloud players, and you guys have the studies coming out of Wikibon. So there it is. And my post pretty much sums up the truth, which is, Google's really serious about the enterprise. Their making steps, there's some holes, there's some potential fatal flaws in how they allow customers to park their data. They have some architectural differences. But Stu, it's really a different animal. I mean, it's apples and oranges in the Cloud. I don't think it's worthy complaining, because certainly Amazon has the lead. But you have Microsoft, you have Google, you have Oracle, IBM, SAP, they're all kind of in the cluster of this, I call "NASCAR Formation", where they're all kind of jocking around, some go ahead. And it really is a race to get the table stake features done. And really, truly be serious contender for the enterprise. So you can be serious about the enterprise, and say, "Hey, I'm serious about the enterprise." But to be serious winner and leader, are two different ball games. >> And a lot to kind of break down here, John. Because first of all, some of the (mumbles) challenges, absolutely, they scaled that event really big. And kudos to them, 10,000 people, a lot of these things came together last minute. They treated the press and analysts really well. We got to sit up front. They had some good sessions. You just tweeted out, Diane Greene, in the analyst session, and in the Q&A after, absolutely nailed it. I mean, she is an icon in the industry. She's brilliant, really impressive. And she's been pulling together a great team of people that understand the enterprise. But who is Google going after, and how do they compete against so of the other guys, is really interesting to parse. Because some people were saying in the keynote, "We heard more about G Suite "than we heard about some of the Cloud features." Some of that is because they're going to do the announcements tomorrow. And you keep hearing all this G Suite stuff, and it makes me think of Microsoft, not Amazon. It makes me think of Office 365. And we've been hearing out of Amazon recently, they're trying to go after some of those business productivity applications. They're trying to go there where Microsoft is embedded. We know everybody wants to go after companies like IBM and Oracle, and their applications. Because Google has some applications, but really, their strength is been on the data. The machine the AI stuff was really interesting. Dr. Fei-Fei Li from Stanford, really good piece in the keynote there, when they hired her not that long ago. The community really perked up, and is really interesting. And everybody seems to think that this could be the secret weapon for Google. I actually asked them like, in some of the one-on-ones, "Is this the entry point? "Are most people coming for this piece, "when it's around these data challenges in the analytics, "and coming to Google." And they're like, "Well, it's part of it. "But no, we have broad play." Everything from devices through G Suite. And last year, when they did the show, it was all the Cloud. And this year, it's kind of the full enterprise suite, that they're pulling in. So there's some of that sorting out the messaging, and how do you pull all of these pieces together? As you know, when you've got a portfolio, it's like, "Oh well, I got to have a customer for G Suite." And then when the customer's up there talking about G Suite for a while, it's like, "Wait, it's--" >> Wait a minute. Is this a software? >> "What's going on?" >> Is this a sash show? Is this a workplace productivity show? Or is this a Cloud show? Again, this is what my issue is. First of all, the insight is very clear. When you start seeing G Suite, that means that they've got something else that they are either hiding or waiting to announce. But the key though, that is the head customers. That was one important thing. I pointed out in my blog post. To me, when I'm looking for it's competitive wins, and I want to parse out the G Suite, because it's easy just to lay that on, Microsoft does it with 365 of Office, Oracle does it with their stuff. And it does kind of make the numbers fuzzy a little bit. But ultimately, where's the beef on infrastructure as a service, and platform as a service? >> And John, good customers out there, Disney, Colgate, SAP as a partner, HSBC, eBay, Home Depot, which was a big announcement with Pivotal, last year, and Verizon were there. So these are companies, we all know them. Dan Greene was joking, "Disney is going to bring their magic onto our magic. "And make that work." So real enterprise use cases. They seem to have some good push-around developers. They just acquired Kaggle, which is working in some of that space. >> Apogee. >> Yeah, Apogee-- >> I think Apogee's an API company, come on. What does that relate to? It has nothing to do with the enterprise. It's an API management solution. Okay, yes. I guess it fits the stack for Cloud-Native, and for developers. I get that. But this show has to nail the enterprise, Stu. >> And John, you remember back four years ago, when we went to the re:Invent show for the first time, and it was like, they're talking to all the developers, and they haven't gotten to the enterprise. And then they over-pivoted to enterprise. And I listen to the customers that were talking and keynote today, and I said, "You know, they're talking digital transformation, "but it's not like GE and Nike getting up on stage, "being like, "'We're going to be a software company, "'and we're hiring lots--'" >> John: Moving our data center over. >> They were pulling all of over stuff, and it's like, "Oh yeah, Google's a good partner. "And we're using them--" >> But to be fair, Stu. Let's be fair, for a second. First of all, let's break down the keynotes. And then we'll get to some of the things about being fair. And I think, one, people should be fair to Diane Greene, because I think that the press and the coverage of it, looking at the media coverage, is weak. And I'll tell you why it's weak. Cause everyone has the same story as, "Oh, Google's finally serious about Cloud. "That's old news. "Diane Greene from day one says "we're serious with the Cloud." That's not the story. The story is, can they be a serious contender? That's number one. On the keynote, one, customer traction, I saw that, the slide up there. Yeah, the G Suite in there, but at least they're talking customers. Number two, the SAP news was strategic for Google. SAP now has Google Cloud platform, I mean, Google Cloud support for HANA, and also the SAP Cloud platform. And three, the Chief Data Science from AIG pointed. To me, those were the three highlights of the keynote. Each one, thematically, represents at least a positive direction for Google, big time, which is, one, customer adoption, the customer focus. Two, partnerships with SAP, and they had Disney up there. And then three, the real game changer, which is, can they change the AI machine learning, TensorFlow has a ton of traction. Intel Xeon chips now are optimized with TensorFlow. This is Google. >> TensorFlow, Kubernetes, it's really interesting. And it's interesting, John, I think if the media listened to Eric Schmidt at the end, he was talking straight to them. He's like, "Look, bullet one. "17 years ago, I told Google that "this is where we need to go. "Bullet two, 30 billion dollars "I'm investing in infrastructure. "And yes, it's real, "cause I had to sign off on all of this money. And we've been all saying for a while, "Is this another beta from Google. "Is it serious? "There's no ad revenue, what is this?" And Diane Greene, in the Q&A afterwards, somebody talked about, "Perpetual beta seems to be Google." And she's like, "Look, I want to differentiate. "We are not the consumer business. "The consumer business might kill something. "They might change something. "We're positioning, "this a Cloud that the enterprise can build on. "We will not deprecate something. "We'll support today. "We'll support the old version. "We will support you going forward." Big push for channel, go-to-market service and support, because they understand that that-- >> Yeah, but that's weak. >> For those of us that used Google for years, understand that-- >> There's no support. >> "Where do I call for Google?" Come on, no. >> Yeah, but they're very weak on that. And we broke that down with Tom Kemp earlier, from Centrify, where Google's play is very weak on the sales and marketing side. Yeah, I get the service piece. But go to Diane Greene for a second, she is an incredible, savvy enterprise executive. She knows Cloud. She moved from server to virtualization. And now she can move virtualization to Cloud. That is her playbook. And I think she's well suited to do that. And I think anyone who rushes to judgment on her keynote, given the fail of the teleprompter, I think is a little bit overstepping their bounds on that. I think it's fair to say that, she knows what she's doing. But she can only go as fast as they can go. And that is, you can't like hope that you're further along. The reality is, it takes time. Security and data are the key points. On your point you just mentioned, that's interesting. Because now the war goes on. Okay, Kubernetes, the microservices, some of the things going on in the applications side, as trends like Serverless come on, Stu, where you're looking at the containerization trend that's now gone to Kubernetes. This is the battleground. This is the ground that we've been at Dockercon, we've been at Linux, CNCF has got huge traction, the Cloud Native Compute Foundation. This is key. Now, that being said. The marketplace never panned out, Stu. And I wanted to get your analysis on this, cause you cover this. Few years ago, the world was like, "Oh, I want to be like Facebook." We've heard, "the Uber of this, and the Airbnb of that." Here's the thing. Name one company that is the Facebook of their company. It's not happening. There is no other Facebook, and there is no other Google. So run like Google, is just a good idea in principle, horizontally scalable, having all the software. But no one is like Google. No one is like Facebook, in the enterprise. So I think that Google's got to downclock their messaging. I won't say dumb down, maybe I'll just say, slow it down a little bit for the enterprise, because they care about different things. They care more about SLA than pricing. They care more about data sovereignty than the most epic architecture for data. What's your analysis? >> John, some really good points there. So there's a lot of technology, where like, "This is really cool." And Google is the biggest of it. Remember that software-defined networking we spent years talking about? Well, the first big company we heard about was Google, and they got up of stage, "We're the largest SDN deployer in the world on that." And it's like, "Great. "So if you're the enterprise, "don't deploy SDN, go to somebody else "that can deliver it for you. "If that's Google, that's great." Dockercon, the first year they had, 2014, Google got up there, talked about how they were using containers, and containers, and they spin up and spin down. Two billion containers in a week. Now, nobody else needs to spin up two billion containers a week, and do that down. But they learned from that. They build Kubernetes-- >> Well, I think that's a good leadership position. But it's leadership position to show that you got the mojo, which again, this is again, what I like about Google's strategy is, they're going to play the technology card. I think that's a good card to play. But there are some just table stakes they got to nail. One is the certifications, the security, the data. But also, the sales motions. Going into the enterprise takes time. And our advice to Diane Greene was, "Don't screw the gold Google culture. "Keep that technology leadership. "And buy somebody, "buy a company that's got a full blown sales force." >> But John, one of the critiques of Google has always been, everything they create, they create like for Google, and it's too Googley. I talked to a couple of friends, that know about AWS for a while, and when they're trying to do Google, they're like, "Boy, this is a lot tougher. "It's not as easy as what we're doing." Google says that they want to do a lot of simplicity. You touched on pricing, it's like, "Oh, we're going to make pricing "so much easier than what Amazon's doing." Amazon Reserved Instances is something that I hear a lot of negative feedback in the community on, and Google's like, "It's much simpler." But when I've talked to some people that have been using it, it's like, "Well, generally it should be cheaper, "and it should be easier. "But it's not as predictable. "And therefore, it's not speaking to what "the CFO needs to have. "I can't be getting a rebate sometime down the road. "Based on some advanced math, "I need to know what I'm going to be getting, "and how I'm going to be using it." >> And that's a good point, Stu. And this comes down to the consumability of the Cloud. I think what Amazon has done well, and this came out of many interviews today, but it was highlighted by Val Bercovici, who pointed out that, Amazon has made their service consumable by the enterprise. I think that's important. Google needs to start thinking about how enterprises want to consume Cloud, and hit those points. The other thing that Val and I teased at, was kind of some new ground, and he coined the term, or used the term, maybe he coined it, I'm not sure, empathy. Enterprise empathy. Google has developer empathy, they understand the developer community. They're rock solid on open source. Obviously, their mojo's phenomenal on technology, AI, et cetera, TensorFlow, all that stuff's great. Empathy for the enterprise, not there. And I think that's something that they're going to have to work on. And again, that's just evolution. You mentioned Amazon, our first event, developer, developer, developer. Me and Pat Gelsinger once called it the developer Cloud. Now they're truly the enterprise Cloud. It took three years for Amazon to do that. So you just can't jump to a trajectory. There's a huge amount of diseconomies of scale, Stu, to try and just be an enterprise player overnight, because, "We're Google." That's just not going to fly. And whether it's sales motions, pricing and support, security, this is hard. >> And sorting out that go-to-market, is going to take years. You see a lot of the big SIs are there. PwC, everywhere at the show. Accenture, big push at the show. We saw that a year or two ago, at the Amazon show. I talked to some friends in the channel, and they're like, "Yeah, Google's still got work to do. "They're not there." Look, Amazon has work to do on the go-to-market, and Google is still a couple-- >> I mean, Amazon's not spring chicken here. They're quietly, slowly, ramming up. But they're not in a good position with their sales force, needs to be where they want to be. Let's talk about technology now. So tomorrow we're expecting to see a bunch of stuff. And one area that I'm super excited about with Google, is if they can have their identity identified, and solidified with the mind of the enterprise, make their product consumable, change or adjust or buy a sales force, that could go out and actually sell to the enterprise, that's going to be key. But you're going to hear some cool trends that I like. And if you look at the TensorFlow, and the relationship, Intel, we're going to see Intel on stage tomorrow, coming out during one of the keynotes. And you're going to start to see the Xeon chip come out. And now you're starting to see now, the silicon piece. And this has been a data center nuisance, Stu. As we talked about with James Hamilton at Amazon, which having a hardware being optimized for software, really is the key. And what Intel's doing with Xeon, and we talked to some other people today about it, is that the Cloud is like an operating system, it's a global computer, if you want look at that. It's a mainframe, the software mainframe, as it's been called. You want a diversity of chipsets, from two cores Atom to 72 cores Xeon. And have them being used in certain cases, whether it's programmable silicon, or whether it's GPUs, having these things in use case scenarios, where the chips can accelerate the software evolution, to me is going to be the key, state of the art innovation. I think if Intel continues to get that right, companies like Google are going to crush it. Now, Amazon, they do their own. So this is going to another interesting dynamic. >> Yeah, it was actually one of the differentiating points Google's saying, is like, "Hey, you can get the Intel Skylake chip, "on Google Cloud, "probably six months before you're going to be able to "just call up your favorite OEM of choice, "and get that in there." And it's an interesting move. Because we've been covering for years, John, Google does a ton of servers. And they don't just do Intel, they've been heavily involved in the openPOWER movement, they're looking at alternatives, they're looking at low power, they're looking at from their device standpoint. They understand how to develop to all these pieces. They actually gave to the influencers, the press, the analysts, just like at Amazon, we all walked home with Echo Dot, everybody's walking home with the Google Homes. >> John: Did you get one? >> I did get one, disclaimer. Yeah, I got one. I'll be playing with it home. I figured I could have Alexa and Google talking to each other. >> Is it an evaluation unit? You have to give it back, or do you get to keep? >> No, I'm pretty sure they just let us keep that. >> John: Tainted. >> But what I'm interested to see, John, is we talk like Serverless, so I saw a ton of companies that were playing with Alexa at re:Invent, and they've been creating tons of skills. Lambda currently has the leadership out there. Google leverages Serverless in a lot of their architecture, it's what drives a lot of their analytics on the inside. Coming into the show, Google Cloud Functions is alpha. So we expect them to move that forward, but we will see with the announcements come tomorrow. But you would think if they're, try to stay that leadership though there, I actually got a statement from one of the guys that work on the Serverless, and Google believes that for functions, that whole Serverless, to really go where it needs to be, it needs to be open. Google isn't open sourcing anything this week, as far as I know. But they want to be able to move forward-- >> And they're doing great at open source. And I think one of the things, that not to rush to judgment on Google, and no one should, by the way. I mean, certainly, we put out our analysis, and we stick by that, because we know the enterprise pretty well, very well actually. So the thing that I like is that there are new use cases coming out. And we had someone who came on theCUBE here, Tarun Thakur, who's with Datos, datos.io. They're reimagining data backup and recovery in the Cloud. And when you factor in IoT, this is a paradigm shift. So I think we're going to see use cases, and this is a Google opportunity, where they can actually move the goal post a bit on the market, by enabling these no-use cases, whether it's something as, what might seem pedestrian, like backup and recovery, reimagining that is huge. That's going to take impact as the data domains of the world, and what not, that (mumbles). These new uses cases are going to evolve. And so I'm excited by that. But the key thing that came out of this, Stu, and this is where I want to get your reaction on is, Multicloud. Clearly the messaging in the industry, over the course of events that we've been covering, and highlighted today on Google Next is, Multicloud is the world we are living in. Now, you can argue that we're all in Amazon's world, but as we start developing, you're starting to see the emergence of Cloud services providers. Cloud services providers are going to have some tiering, certainly the big ones, and then you're going to have secondary partner like service providers. And Google putting G Suite in the mix, and Office 365 from Microsoft, and Oracle put in their apps in their Clouds stuff, highlights that the SaaS market is going to be very relevant. If that's the case, then why aren't we putting Salesforce in there, Adobe? They all got Clouds too. So if you believe that there's going to be specialism around Clouds, that opens up the notion that there'll be a series of Multicloud architectures. So, Stu-- >> Stu: Yeah so, I mean, John, first of all-- >> BS? Real? I mean what's going on? >> Cloud is this big broad term. From Wikibon's research standpoint, SaaS, today, is two-thirds of the public Cloud market. We spend a lot of time talking-- >> In revenue? >> In revenue. Revenue standpoint. So, absolutely, Salesforce, Oracle, Infor, Microsoft, all up there, big dollars. If we look at the much smaller part of the world, that infrastructures a service, that's where we're spending a lot of time-- >> And platforms a service, which Gartner kind of bundles in, that's how Gartner looks at it. >> It's interesting. This year, we're saying PaaS as a category goes away. It's either SaaS plus, I'm sorry, it's SaaS minus, or infrastructure plus. So look at what Salesforce did with Heroku. Look at what company service now are doing. Yes, there are solutions-- >> Why is PaaS going away? What's the thesis? What's the premise of that for Wikibon research? >> If we look at what PaaS, the idea was it tied to languages, things like portability. There are other tools and solutions that are going to be able to help there. Look at, Docker came out of a PaaS company, DockCloud. There's a really good article from one of the Docker guys talking about the history of this, and you and I are going to be at Dockercon. John, from what I hear, we're going to spending a lot of time talking about Kubernetes, at Dockercon. OpenStack Summit is going to be talking a lot about-- >> By the way, Kubernetes originated at Google. Another cool thing from Google. >> All right, so the PaaS as a market, even if you talk to the Cloud Foundry people, the OpenShift people. The term we got, had a year ago was PaaS is Passe, the nice piffy line. So it really feeds into, because, just some of these categorizations are what we, as industry watchers have a put in there, when you talk to Google, it's like, "Well, why are they talking about G Suite, "and Google Cloud, and even some of their pieces?" They're like, "Well, this is our bundle "that we put together." When you talk to Microsoft, and talk about Cloud, it's like, "Oh, well." They're including Skype in that. They're including Office 365. I'm like, "Well, that's our productivity. "That's a part of our overall solutions." Amazon, even when you talk to Amazon, it's not like that there are two separate companies. There's not AWS and Amazon, it's one company-- >> Are we living in a world of alternative facts, Stu? I mean, Larry Ellison coined the term "Fake Cloud", talking about Salesforce. I'm not going to say Google's a fake Cloud, cause certainly it's not. But when you start blending in these numbers, it's kind of shifting the narrative to having alternative facts, certainly skewing the revenue numbers. To your point, if PaaS goes away because the SaaS minuses that lower down the stack. Cause if you have microservices and orchestration, it kind of thins that out. So one, is that the case? And then I saw your tweet with Sam Ramji, he formally ran Cloud Foundry, he's now at Google, knows his stuff, ex-Microsoft guy, very strong dude. What's he take? What's his take on this? Did you get a chance to chat with Sam at all? >> Yeah, I mean, it was interesting, because Sam, right, coming from Cloud Foundry said, what Cloud Foundry was one of the things they were trying to do, was to really standardize across the clouds. And of course, little bias that he works at Google now. But he's like, "We couldn't do that with Google, "cause Google had really cool features. And of course, when you put an abstraction layer on, can I actually do all the stuff? And he's like, "We couldn't do that." Sure, if you talked to Amazon, they'll be like, "Come on. "Thousand features we announced last year, "look at all the things we have. "It's not like you can just take all of our pieces, "and use it there." Yes, at the VM, or container, or application microservices layer, we can sit on a lot of different Clouds, public or private. But as we said today, the Cloud is not a utility. John, you've been in this discussion for years. So we've talked about, "Oh, I'm just going "to have a Cloud broker, "and go out in a service." It's like, this is not, I'm not buying from Domino's and Pizza Hut, and it's pepperoni pizza's a pepperoni pizza. >> Well, Multicloud, and moving workloads across Clouds, is a different challenge. Certainly, I might have to some stuff here, maybe put some data and edge my bets on leveraging other services. But this brings up the total cost of ownership problem. If you look at the trajectory, say OpenStack, just as a random example. OpenStack, at one point, had a great promise. Now it's kind of niched down into infrastructural service. I know you're going to be covering that summit in Boston. And it's going to be interesting to see how that is. But the word in the community is, that OpenStack is struggling because of the employment challenges involved with it. So to me, Google has an opportunity to avoid that OpenStack kind of concept. Because, talking about Sam Ramji, open source is the wildcard in all of this. So if you look at a open source, and you believe that that PaaS layer's thinning down, to infrastructure and SaaS, then you got to look at the open source community, and that's going to be a key area, that we're certainly watching, and we've identified, and we've mentioned it before. But here's my point. If you look at the total cost of ownership. If I'm a customer, Stu, I'm like, "Okay, if I'm just going to move to the Cloud, "I need to rely and lean on my partner, "my vendor, my supplier, "Amazon, or Google, or Microsoft, whoever, "to provide really excellent manageability. "Really excellent security. "Because if I don't, I have to build it myself." So it's becoming the shark fin, the tip of the iceberg, that you don't see the hidden cost, because I would much rather have more confidence in manageability that I can control. But I don't want to have to spend resources building manageability software, if the stuff doesn't work. So there's the issue about Multicloud that I'm watching. Your thoughts? Or is that too nuance? >> No, no. First of all, one of the things is that if I look at what I was doing on premises, before versus public Cloud, yes, there are some hidden costs, but in general I think we understand them a little bit better in public Cloud. And public Cloud gives us a chance to do a do-over for this like security, which most of us understand that security is good in public Cloud. Now, security overall, lots of work to do, challenges, not security isn't the same across all of them. We've talked to plenty of companies that are helping to give security across Clouds. But this Multicloud discussion is still something that is sorting out. Portability is not simple, but it's where we're going. Today, most companies, if I'm not really small, have some on-prem pieces. And they're leveraging at least one Cloud. They're usually using many SaaS providers. And there's this whole giant ecosystem, John, around the Cloud management platforms. Because managing across lots of environment, is definitely a challenge. There's so many companies that are trying to solve them. And there's just dozens and dozens of these companies, attacking everything from licensing, to the data management, to everything else. So there's a lot of challenges there, especially the larger you get as a company, the more things you need to worry about. >> So Stu, just to wrap up our segment. Great day. Wanted to just get some color on the day. And highlighting some parody from the web is always great. Just got a tweet from fake Andy Jassy, which we know really isn't Andy Jassy. But Cloud Opinion was very active to the hashtag, that Twitter handle Cloud Opinion. But he had a medium post, and he said, "Eric Schmidt was boring. "Diane Greene was horrible. "Unfortunately, day one keynote were missed opportunity, "that left several gaps, "failed to portray Google's vision for Google Cloud. "They could've done the following, A, "explain the vision for the Cloud, "where do they see Google Cloud going. "Identify customer use cases that show samples "and customer adoption." They kind of did that. So discount that. My favorite line is this one, "Differentiate from other Cloud providers. "'We're Google damn it,' isn't working so well. "Neither is indirect shots as S3 downtime, "didn't work either as well as either. "Where is the customer's journey going? "And what's the most compelling thing for customers?" This phrase, "We're Google damn it," has kind of speaks to the arrogance of Google. And we've seen this before, and always say, Google doesn't have a bad arrogance. I like the Google mojo. I think the technology, they run hard. But they can sometimes, like, "Customer support, self-service." You can't really get someone on the phone. It's hard to replies from Google. >> "Check out YouTube video. "We own that too, don't you know that?" >> So this is a perception of Google. This could fly in the face, and that arrogance might blow up in the enterprise, cause the enterprises aren't that sophisticated to kind of recognize the mojo from Google. And they, "Hey, I want support. "I want SLAs. "I want security. "I want data flexibility." What's your thoughts? >> So Cloud Opinion wrote, I thought a really thoughtful piece leading up to it, that I didn't think was satire. Some of what he's putting in there, is definitely satire-- >> John: Some of it's kind of true though. >> From the keynote. So I did not get a sense in the meetings I've been in, or watching the keynote, that they were arrogant. They're growing. They're learning. They're working with the community. They're reaching out. They're doing all the things we think they need to do. They're listening really well. So, yes, I think the keynote was a missed opportunity overall. >> John: But we've got to give, point out that was a teleprompter fail. >> That was a piece of it. But even, we felt with a little bit of polish, some of the interactions would've been a little bit smoother. I thought Eric Schmidt's piece was really good at end. As I said before, the AI discussion was enlightening, and really solid. So I don't give it a glowing rating, but I'm not ready to trash it. And tomorrow is when they're going to have the announcements. And overall, there's good buzz going at the show. There's lots going on. >> Give 'em a letter. Letter grade. >> For the keynote? Or the show in general? >> So far, your experience as an analyst, cause you had the, again, to give them credit, I agree with you. First analyst conference. They are listening. And the slideshow, you see what they're doing. They're being humble. They didn't take any real direct shots at its competitors. They were really humble. >> And that is something that I think they could've helped to focus one something that differentiated a little bit. Something we had to pry out of them in some of the one-on-ones, is like, "Come on, what are you doing?" And they're like, "We're winning 50, 60% of our competitive deals." And I'm like, "Explain to us why. "Because we're not hearing it. "You're not articulating it as well." It's not like we expect them, it's like, "Oh wait, they told us we're arrogant. "Maybe we should be super humble now." It's kind of-- >> I don't think they're thinking that way. I think my impression of Google, knowing the companies history, and the people involved there, and Diane Greene in particular, as you know from the Vmware days. She's kind of humble, but she's not. She's tough. And she's good. And she's smart. >> And she's bringing in really good people. And by the way, John, I want to give them kudos, really supported International Women's Day, I love the, Fei-Fei got up, and she talked about her, one of her compatriots, another badass woman up there, that got like one of the big moments of the keynote there. >> John: Did they have a woman in tech panel? >> Not at this event. Because Diane was there, Fei-Fei was there. They had some women just participating in it. I know they had some other events going on throughout the show. >> I agree, and I think it's awesome. I think one of the things that I like about Google, and again, I'll reiterate, is that apples and oranges relative to the other Cloud guys. But remember, just because Amazon's lead is so far ahead, that you still have this jocking of position between the other players. And they're all taking the same pattern. Again, this is the same thing we talked about at our other analysis, is that, certainly at re:Invent, we talked about the same thing. Microsoft, Oracle, IBM, and now Google, are differentiating with their apps. And I think that's smart. I don't think that's a bad move at all. It does telegraph a little bit, that maybe they got, they could add more to show, we'll see tomorrow. But I don't think that's a bad thing. Again, it does make the numbers a little messy, in terms of what's what. But I think it's totally cool for a company to differentiate on their offering. >> Yeah, definitely. And John, as you said, Google is playing their game. They're not trying to play Amazon's game. They're not, Oracle's thing was what? You kind of get a little bit of the lead, and kind of just make sure how you attack and stay ahead of what they're doing, going to the boating analogy there. But Google knows where they're going, moving themselves forward. That they've made some really good progress. The amount of people, the amount of news they have. Are they moving fast enough to really try to close a little bit on the Amazon's world, is something I want to come out of the show with. Where are customers going? >> And it's a turbulent time too. As Peter Burris, our own Peter Buriss at Wikibon, would say, is a turbulent time. And it's going to really put everyone on notice. There's a lot to cover, if you're an analyst. I mean, you have compute, network storage, services. I mean, there's a slew of stuff that's being rolled out, either in table stakes for existing enterprises, plus new stuff. I mean, I didn't hear a lot of IoT today. Did you hear much IoT? Is there IoT coming to you at the briefing? >> Come on. I'm sure there's some service coming out from Google, that'll help us be able to process all this stuff much faster. They'll just replace this with-- >> So you're in the analyst meeting. I know you're under NDA, but is there IoT coming tomorrow? >> IoT was a term that I heard this week, yes. >> So all right, that's a good confirmation. Stu cannot confirm or deny that IoT will be there tomorrow. Okay, well, that's going to end day one of coverage, here in our studio. As you know, we got a new studio. We have folks on the ground. You're going to start to see a new CUBE formula, where we have in-studio coverage, and out in the field, like our normal CUBE, our "game day", as we say. Getting all the signal, extracting it from that noise out there, for you. Again, in-studio allows us to get more content. We bring our friends in. We want to get the content. We're going to get the summaries, and share that with you. I'm John Furrier, Stu Miniman, day one coverage. We'll see you tomorrow for another full day of special coverage, sponsored by Intel, two days of coverage. I want to thank Intel for supporting our editorial mission. We love the enterprise, we love Cloud, we love big data, love Smart Cities, autonomous vehicles, and the changing landscape in tech. We'll be back tomorrow, thanks for watching.

>> Announcer: Live from Silicon Valley. It's theCUBE. Covering Mobile World Congress 2017. Brought to you by Intel. >> Okay welcome back everyone, we are live here in Palo Alto for special two days of wall-to-wall coverage for Mobile World Congress. Here in our new 45 hundred square foot studio in Palo Alto. We have folks on the ground. Analysts, we have reporters in Barcelona, but we're going to be covering all the action here in our studio, where we're going to bring folks from Silicon Valley who did not make the trek to Barcelona here to weigh in with reaction and commentary and opinions and analysis of all the happenings of Mobile World Congress. But first, as the day winds down Monday in Europe, we wanted to make sure we get on the phone and get with folks who are on the ground. And right now on the phone we have Floyd Strimling who's the global vice president of HANA Cloud, I'm sorry, the HANA Cloud Platform which the big news was, they renamed their product from SAP HANA Cloud Platform to SAP Cloud Platform. Floyd Strimling, thanks for taking the time after your dinner. Thanks for coming on. >> Floyd: Yeah, thanks for having me. I'm glad to be there. Happy to help out and give you some insights on what's going on here in beautiful Barcelona. It's actually quite warm here. >> Is it warm? I saw some umbrellas over the weekend but great city, I would love to have been there, but I wanted to anchor the coverage here. One of my favorite cities. But first, tell me what's going on. Obviously over the weekend we were preparing, we were covering all the content for the folks watching, CUBE365.net/MWC17. The news is all there. Every single piece of signal is there. Go to our site. Check it out. Floyd, what's happening? It's been a hand-set show all weekend. Obviously Nokia making a comeback. Blackberry making a comeback. LG, Huawei, Hess Phones, they all want to be Apple, but yet 5G is also dominating as well. So there's a culture clash. What's happening in Barcelona? What's your analysis? >> Floyd: The biggest thing that I was surprised by is exactly what you're talking about. The number of headset announcements and the number of displays that are all based upon new devices and the nostalgia for Blackberry and Nokia continues. People are rooting for them to make a comeback. In the meantime, you've got new devices from Huawei. You've got Samsung doing announcements. You know you're in the show when Sony has a big presence in Europe with their handsets, which I don't see too much in North America and it just seems to be everybody is gunning really for maybe what they foresee as the perceived weakness in Apple just not going for the killer 7 and waiting for the 8 to change the game. And they're all going to try to knock them off the pedestal. There's some very interesting phones that are out there. 5G is definitely everywhere, too. Everyone's talking about it. Everyone's trying to be the first. Trying to show, especially the streaming capabilities. What that'll be able to do and what it'll be able to change. And then, you know what? One of my favorite sections was the drones. We got to see some commercial carbon fiber drones that I never saw up and personal. See what's going on in there. A lot of interesting things going on with those things and more than just delivery, right? Everything that you could possibly do. There's no shortage of IoT and connected this, connected that, but they're adding a flavor of AI now. And I think we still got to get to Step 1 with IoT before we go to Step 2. So, it's been interesting to watch people try to leapfrog each other as they move towards new technologies. [Interviewer] How big is the crowd there? How packed is it? I mean one of the things we were talking about was the identity crisis of the show, Mobile World Congress, you mentioned people going after Apple. But also Samsung. Remember, they're bailing out of the show. They had their own little presser conference last night, they're not active in the show and they have their own problems. I mean the Galaxy 7 blowing up is, everyone's going after Samsung and Apple on the phone side, but you've got Sony, you've got 4K screens, you've got Netflix there, you've got entertainment, it's like a CES wannabe show for those guys, and at the same time it's a serious meat-and-potatoes Telco show with a lot of 5G, IoT, and I haven't heard anything about E-Sports. I saw a little bit with Twitch doing some stuff there, but for the most part, it's a digital show. So is there a huge crowd there and what's the demographics like there for the makeup of the attendees? >> Floyd: You know, I'm seeing big crowds, judging from how long it takes to take a taxi or get the subway. It's a lot of people there. And I'm seeing it's mixed. I'm actually seeing quite a few large enterprises from around the world. They're looking around, just looking at different technology and trying to make sense of what's happening. I do see the big Telcos are here. You know, everything from Telefonica, you of course have Huawei, you have T-Mobile, and Orange and a bunch of those major vendors that are doing it. I'm also seeing HPE and Intel on the same show area that we are on the other side that are generating traffic. I think the mix is pretty good this year and I will tell you, look, I've been to a lot of shows and some shows have trouble drawing people and this medium, some people are saying is not going to survive. I love going to the show and actually feeling the energy. 'Cause there is a ton of people here, there are a ton of large exhibitions with some really interesting stuff. VR, some geek talk, some funny stuff. There's people selling cases, you know, for your phone. I thought that was kind of awesome to see that again. I mean it's all over the place. I think the show is extremely healthy and it's as busy as ever. [Interviewer] One of the things about Mobile World Congress, it's a lot of business development, too. There's some heavy hitters there. It's kind of like Sun Valley meets, you know, the CES show. It really is a mix there. I want to get your take on some of the emerging areas that are really exploding in the mind of the consumer. And these are forward-thinking categorical areas. Autonomous vehicles, Smart Cities, Smart Home and, just in general, this new IoT area. So, what's your take on those areas? I mean, autonomous vehicles, they're huge. But Smart Cities, Smart Home, entertainment, is there a lot of buzz there? You guys have a stadium exhibit. What's the sexy demos? What's the sexy areas? >> Floyd: Yeah, I'll tell you a couple of things on this. You know, on the autonomous vehicles, now it's not just autonomous vehicles, it's going to try to be the first 5K autonomous vehicles. You know, people are looking at just pushing the envelope on it. And I think in Europe where people definitely love to drive, it's big, but I don't know if it's got the same excitement as you do in the traffic-jammed areas of the United States where we're constantly battling this and to put the car into autonomous mode and be able to do something else while stuck on the 405 would be a nice thing to do. I do think that the Smart homes is extremely interesting right now. I mean you have some of the people getting their arms around and I'm starting to see people actually talking about it and you know, a lot of people talking about smart things. This ability through a single gateway to be able to connect to all different types of devices, to be able to hook in with Alexa and Google Home and to be able to actually do more things with it and trying to make it simpler. So that I can do this reliably and easily. That's what everyone wants right now. On the Smart Cities front, I'm seeing a lot of people talk about Smart Cities. I think we're still kind of in that experimentation phase. You know a lot of geo-sensing stories I'm seeing. Some power conservations for lights. The ones that I'm interested in are kind of like traffic management. I'm extremely interested in this. Where we finally can get even smarter traffic lights and systems where you can do things like turn on no left turn or make a lane that's all four lanes. You know, make it one direction if traffic comes up. Very interesting concepts that people are trying out. You know for SAP, the biggest thing that we've got going, it continues to be our Smart Stadium demonstration. Every time that runs it's standing room only. People very interested about. Of course, it's a football, European football, not American football, so we're showing what you can do, and teams experience watching the games and actually how you can change the experience of training. And tremendous amounts of people interested in that. I mean, it's always an amazing crowd of people. Just because it's so intriguing and something we can all relate to. Because we want to have a better experience with this. [Interviewer] You know, Floyd, the Smart Stadiums thing is a really interesting thing. I just shared a link on the CUBE365.net/MWC17, that's our URL for our new CUBE365 all year long site. But one of the articles I shared was from the FC Barcelona Football Club and there was a speech at Mobile World Congress where the president gave a talk to explain the role FC Barcelona in the development of sports through knowledge and innovation to generate value for the club and society. And you think about the stadium aspect of what you were just talking about, is interesting. It's a place where people get together in an analog world, but yet when you weave in a digital services, the role of say an SAP, powering the database and doing all the back office things to power the business, combined with IoT, you now can bring in real people into experiences that are tied to the sports. But also you can go beyond that. You can take that digital interaction and take it to the next level. So there is a data aspect to a society role here. So you're seeing sports teams going beyond marketing their club to having an impact. Can you share any color on that? Do you agree? Do you guys have anything that you're showing? >> Floyd: Well, I agree. I think that much like racing is for the auto industry to bring innovations to the consumer side, or you could even say masses and states that comes into all of our lives. I think that this work is going to push the envelope, even harder than other areas, simply because they know that hundredths of a second is the difference between winning and losing. You know, we've gone with McLaren for years, working with them on tracking their race cars and building dashboards and giving them information. And now to be able to bring that type of technology to the stadium and bend the way that you actually have that interactive experience, it actually makes it that you want to go to the stadiums. Which is, you know, people are, it's a little bit of a hassle. You got the traffic, you got the people, it's like you can sit on your couch and watch it on your 4K television and be happy. I think that people need a way to actually draw the crowds in there. And I think that the interactions, especially with the work that we're doing with Apple and building native applications using our Fiori Technology and our UI Technology, it's starting to really bring together those classical back-end systems with all that rich data and bring it forward so people can actually experience what that data means and use it a different way. So I definitely agree with you. I enjoy working with the sports teams, 'cause they're willing to try anything that gives them a competitive advantage, and it's interesting how to take that technology and then apply it to the consumer and the business world. [Interviewer] Well, you know, we love to be called the ESPN of Tech, so we love sports here. So anytime you have a great sports event you can invite us to, we'd be happy to accept your invitation in advance. Appreciate that. Floyd, of course, great coverage. I'll give you the final word, and next we have a minute or two left. I'll say SAP big announcement with the Apple software development kit, the IOS general availability now. You got native developer support. That's classic bringing cloud native developers into the SAP fold which dominates the enterprise and business base from sports firms to large enterprises. Great marketplace behind that. But you guys are doing a lot more with IoT, AI and machine learning. Share, just take a minute to talk about the key things that SAP is doing for the folks watching. Because losing the name HANA Cloud really emphasizes that SAP is SASifying their entire business, which includes things like microservices, and having kind of IoT as a service and managing workloads dynamically in realtime with a consumer front-end feel to it. Take a minute to describe the key important points of what you guys announced and are impacting. >> Floyd: I would say the biggest thing that we have going really is two-fold. One, it's the elevation of this brand. SAP protects our brand. It's a very, very noticeable and valuable brand. To elevate the platform to a top-tier brand, basically it's signaling to everybody, our customers, our partners, independent software vendors, our competitors, anyone else out there that SAP is serious about building a platform in the cloud that is world-class, enterprise grade and has the capabilities that our customers need to make this digital transformation and we're coming. We're going to innovate at a fast clip and we're not that old SAP that people think about. I think the partnership with Apple further shows that. I mean Apple is very choosy about who they work with. They're at our booth. They're helping us They're showing the demonstrations. They're working on the SDK. And that realization that, hey, to build these world-class native applications, using Swift and this SDK and the capabilities that would bring, are now elevating that game in the mobile space for our customers, which is key. And I think it's a very powerful partnership because we're both such recognizable brands and we both have a really solid enterprise presence and a large ecosystems. On the services, you know, the big thing I would just say, is the IoT services is ready for people to use now in the Beta fashion. It's combining all the access so we can build a device cloud with the Symantec data model that's a little bit different than other people are doing. And combining that with our Leonardo applications which give you a good idea of what's possible on the cloud. And to be able to keep pushing that forward, I think is key. We have the big data services which was the alpha scale announcement, acquisition now being fully integrated into the platform is huge. It basically gives us world-class Spark Services, which we need to be able to compete in this world. You know and I think that the service improvements are there. There's some good service improvements incremental and some things that our enterprises really want from us, like workflow and the ability to put a little infrastructure in there with virtual machines. And our data center build out. You know, friends don't let your friends build data centers, but some companies have to build data centers, so having the ability to have a data center now in Japan and in China, is key to our customers, especially with all this legal wrangling that's going on in clouds. So I think all in all for SAP, it's been a great show. A great place to showcase that we're doing stuff differently and watch out for what we're going to be doing in the future. Because we got a lot more stuff coming, and we're going to be a player in this space. And we're ready. [Interviewer] All right, Floyd Strimling, global vice president with SAP Cloud Platform. Final question, I mean I got to ask you. How's the food? How's the tapas? Are you going to take a nap and then stay out 'til four in the morning then doing it all over again? Barcelona style? >> Floyd: It is Barcelona-style right now. I got to go get some Sangria, some tapas and then we'll hit the places that the tourists don't go to, and have some real good time with the locals. You can't come to Barcelona and go to sleep, that's not allowed. [Interviewer] All right. You're not allowed. Hey, spread the CUBE love for us out there. Really appreciate your taking the time. Thanks, Floyd. We'll talk to you later. Thanks so much. >> Floyd: Thanks. [Interviewer] Okay, Floyd Strimling on the ground in Barcelona here on theCUBE by remote coverage from Palo Alto. We're going to be going wall-to-wall 'til six o'clock tonight, 8 a.m. tomorrow morning, and again, we'll have reaction from folks on the ground in Barcelona. Hopefully we'll get some folks late night and hopefully it might be a little bit lubricated up a little bit, socially lubricated, get to share some good dirt. That's where all the action's happening, up in Barcelona and this is theCUBE. We'll be right back with more coverage, more analyses. We've got Tom Joyce coming in, industry executive to help me break down from his perspectives, the horses on the track. Who's going to win, who's going to lose, and what's going on with NFV? Because NFV certainly now has a bigger opportunity with 5G connecting all these devices together. That's the big story as well as the big devices and the new upgrades. Be back with more after this short break.