(theCube jingle) >> Hey, welcome back everybody! Jeff Frick here with theCube. We are in San Francisco at Zuora Subscribe 2017, about 2,000 people talking about the subscription economy. But what I liked is when Tien had some sample stories up, he went with the big iron. He went with GE, and he went with Caterpillar, companies that you probably don't think of as subscription economy, like maybe you do Spotify or Amazon Prime. So, we're really excited to have Tom Bucklar. He's the director of IoT and Channel Solutions for Caterpillar. Tom, welcome. >> Yeah, I appreciate it, thanks for having me. >> So, I love that you had a ton of industrial Internet stories. I mean this is real. This is not coming down the road, but it's here today. >> No, absolutely. I mentioned during the keynote that since the mid 90s, we've been connecting equipment. Since the mid 90s, we've been on our autonomous journey. And just today we can talk about the largest industrial fleets of over 500,000 assets connected. All of that valuable information coming in to help our customers. And then the fully autonomous fleets in the mines. It's pretty exciting stuff. >> Right, and you touched on something we talk about often in the context of GE. We've had GE on a number of times where do they sell engines or do they sell propulsion to the airlines, and you talked about do we sell this big earth-moving equipment or do we sell x number of, I don't know how you measure big giant masses of rocking gravel move, but really, selling it as a service, not necessarily just the truck. >> Yeah, that was an important part of our discussion because when we talk about IoT and digital, it's really a very customer-centric strategy, so we're going to get into services like IoT type or digital based services, which is our Cat Connect portfolio, if it's going to help serve our customers that we have today in the industries we play, be more successful, increase their operations, increase their efficiency. So, we're not looking to build a platform or be a software company. When we get into this space, it's focused on those customers and increasing their profitability, and that's what leads us into these areas. We're going to be a heavy equipment manufacturer, we're going to sell big iron, that's what we do. We're going to leverage digital to help our customers be more successful. >> Yeah, you say that, but I'm telling you, I can turn the lens a little bit. I see a whole lot of software company behind that big iron, so... >> No, I'm not. You know, there's a lot of software on those machines. >> You're right. >> There's a lot of software that's coming off those machines. And, certainly, we want to take all of that information. We want to put analytics on it, and we want to help our customers go from being reactive to predictive. And, really, that's why we're at this conference, right, because when you get to what we call our Cat Connect services, a lot of those are subscription-based. You know, when we're connecting 500,000 machines, or we're able to go out and, you know, enable grade assist on a machine over the air, or we're going to have these predictive health services to make sure uptime is maximized. All of those are data-driven services through Cat Connect, and they're all subscriptions. So it's a natural fit for us to migrate into that along with our product business. >> Yes, some interesting numbers that you shared in the keynote. 500,000 connected machines. You talked about the obvious stuff, unplanned downtime, these are huge assets that need to run as close to 24/7 as they predictably can. But then, you mentioned looking at some other data, and not even really heavy-lifting data, but customers getting tremendous utilization gains by leveraging some of the software that you guys have incorporated in the machines. >> Yeah, it's powerful stuff. I mean, if I talk about construction, the customer we mentioned, they asked us to connect all 16,000 pieces of their equipment. You know, 3,000 of those were Cat earth-moving machines. You know, the other 13,000 weren't. They were a variety of other types of machines. But with the customer, with that information, and then when they can get put it on one screen, and they can look at utilization, they can look at location, they can look at idle time, they can increase their utilization significantly. So basic data, with a fleet that size, can help customers realize 10, almost 20% utilization gains, and across the fleet that size, it's big money, and it's big customer value. But even all the way down to the person whose got 10 machines. You know, they can start to look at idle time, they can look at operator abuse and where they can train their operators better, to perform better. So basic information of some these machines is very valuable. >> It's such an interesting concept because you keep talking about your customers doing better with the assets that you guy provide them. You know, when you're in a subscription relationship, and you have those ongoing back-and-forth repetitive connection, it's a very different relationship than when you just sell something, and you ship it, and you take the money, and you go on to the other one. And it seems like that's really kind of the secret sauce of the subscription economy that no enough people really highlight. >> Yeah, you know, in some cases, that's a great point. And, you know, one of the strength of Caterpillar is our global dealer network. And so you mention about selling the product. You know, when we sell the product, our dealers provide their product and sell it to our customers, they generally have a long-standing relationship with that customer. Everything from helping the with uptime to machine selection, to operation to operator training. So, we're in the business of working with customers through the long haul. But to your point that these digital services, you know, they create a digital relationship that's ongoing, along with our dealer's relationship that they've had for decades. So, it's a really powerful kind of combination. >> And then, I would imagine the data that you're now getting back off these machines, which before they were all connected. You know, you kind of saw them at the maintenance cycles, and you could kind of see maybe what happened or what didn't happen, or maybe there's some patterns that are geographic or type of job or whatever. But now, I love the quote, you used to take a sample of old data, and now we take all of current data. There must be tremendous value for you guys to develop better products, have better maintenance on your own products, see how these things can do much, much better. >> Yeah, you're absolutely right. And, you know, when we talk about the data off the products, a lot of people initially go to telematics, and certainly, when talk about 500,000 assets, I'm talking telematics. But we also do about 5,000,000 fluid samples a year of different compartments. We've got visual inspections that are on electronically through Cat Inspect, that's all the data coming back. So, all of that information is really rich information. And, to your point, we can take that all the way back to new product design and make sure that our next products are optimized. >> Pretty exciting stuff. >> Absolutely. >> And who doesn't love a big yellow tracker truck? (laughs) Absolutely. All right, Tom, well, thanks for taking a few minutes out of your busy day and congratulations. >> All right, thanks for having me. >> All right, he's Tom Bucklar, I'm Jeff Frick. You're watching theCube. We'll be back after this short break. Thanks for watching. (theCube jingle)

(computer mouse clicking) >> Hey, welcome back everybody. Jeff Frick here with theCUBE. We are at Zuora Subscribe in downtown San Francisco talking about the subscription economy. What's different about the subscription economy? Why is it taking off? And how does it really change the relationship between the provider and their customer? Or in this case, a club member. So, we're excited to have somebody that's been doing this for a while, Sebastian Gnagnarella, he's the SVP Tech in IT for Inspirato. Did I get that right, Inspirato? >> Yeah, you got that right. >> Awesome, so first off, welcome Sebastian. >> Thanks, Jeff. Glad to be here. >> So what is Inspirato? >> So, Inspirato's a private luxury destination club. We try to provide the affluent consumer a single trusted source for all their travel needs. >> So it's private, it's luxury, and it's destination. >> Exactly. >> But the big thing, it's also a club. >> It's a club. >> And you said it's been a club since the beginning. >> It's a club. >> So what makes a club a club versus having a regular kind of client/customer relationship? >> Well, absolutely. We think that traveling with the club gives the customer a more intimate experience. People are used to buy vacations one by one. With us, they salvage their relation with their personal vacation advisor. When they join the club, they get a personal vacation advisor that knows everything about them, everything about their family, and everything around their travel patterns. And we also give them curation. We give them certainty when you travel with us. And we also give them an extremely great care team. >> Can you share any numbers in terms of number of destinations? Is it your own private destinations? Do you just help them arrange to go to destinations that anyone can go to? How does that work? And give us a little bit of the size and scale of the company. How many trips, members, whatever you can share. >> Absolutely, so, we have 15,000 members right now. When you join the club, you get access to different things. One of them is you get access to our 290+ members-only properties. Properties that we fully manage and control and they're only accessible by our members. You get access to our portfolio of hotels. We have curated deals with different hotels around the world. And you also get access to what we call Bespoke Experiences, which are tailored experiences only for our members. Imagine if you wanted to go on that safari to Africa, you come to us and we take care for you. >> So, then you'll put it together? Or do you usually have a safari to Africa? Or you'll put a custom package together? >> We put it together either with partners, our network of partners, or in some cases, we have member-only trips already in the schedule. Like last year, we did a members-only cruise to Antarctica with I think it was like -- we took like 200 members to Antarctica on that trip. >> So, do people use the service more frequently as a club member? How does it actually change your engagement with them? >> So, I do think they use it more frequently, right. They have that personal relation with their vacation advisors, with their personal vacation advisors. So, we give them extremely good service around where to go, when to go, tips on when is the best time to visit a place, and what is a great occasion to visit a place. We also try to think of ourself as a lifestyle club, not just as a destination club, so we try to be present 52 weeks of the year with local events. So, you are a member, you get access to Superbowl tickets, you get access to backstage tickets for a concert in town, or you get access to members-only cooking classes. >> That's interesting. So not just the big destination vacation. But you've maintained an on-going relationship with a number of smaller events as well. >> Exactly, exactly. >> So, that begs a question, which I think is really interesting one here, about having a relationship with someone through a subscription, or as you say, a club, as opposed to a transactional deal. Because it's not really -- there's transactions within the subscription, but the transactions don't define the relationship. >> Yeah, absolutely. And I said this during the panel few hours ago, is that for us, a subscription has two components, right? One component is the company component. The subscription give us and allowed us to forecast and to scale and build that platform to give more to our members. On the members' side, the membership is their commitment to spend time with the loved ones, right? For us, subscription is that ongoing power that help us help our members to spend time with their loved ones. >> And do you guys promote that? That's a great concept. >> Absolutely, absolutely. It's like for us there's nothing more important than our members spending time with the people they love. >> Right, right. And they're probably very busy, or they couldn't afford the service. >> Absolutely, absolutely. You're exactly right. >> (laughing) That's great. So it is a defined commitment, and that's very different relationship than just buying a vacation package. >> Totally, totally. >> Very cool. Alright so you've been at this for a while. Why Zuora? How long have you been a customer of Zuora? You've been in the club space forever, but why Zuora? >> So, Zuora, we've been customers since 2016. Since last year. Since April last year. And we were managing our subscription charges through a home-grown system. And that worked good, right? When we had 5,000 members, when we had 7,000 members. We knew that the day that climbed to 50,000 members in the future we needed something else. So, we started searching different solutions and we knew we wanted something cloud, we knew we wanted something with strong APIs, so the strong foundation. And we also knew we wanted someone that was strapped into business, because that's how we felt about ourselves, right? We feel that we are strapped in the travel business, and we wanted to partnership with a likewise company, and that's how we picked Zuora. >> Alright, Sebastian, great story. I love it. >> Alright, well thank you so much. >> Absolutely, so show your commitment to your family by signing up with Inspirato. That shows that you're going to take them on really nice vacations. Alright, thanks a lot Sebastian. >> Thanks Jeff, thank you so much. >> I'm Jeff Frick, he's Sebastian, you're watching theCUBE from Zuora Subscribe 2017 in San Francisco. Thanks for watching. (computer mouse clicking)

>> Hey, welcome back everybody! Jeff Frick here with theCUBE. We're at Zuora Subscribe at downtown San Francisco, and every time we go out to conferences, there's a pretty high probability we're going to run into this Cube alumni. Sure enough, here he is, Ray Wang. He's the founder and principal of Constellation Research. Ray, always great to see you. >> Hey Jeff, this is awesome, thanks for having me. >> And close to your hometown, what a thrill! >> This is, it's a local conference! What else can I ask for? >> So what do you think? Subscription economy, these guys have been at it for a while, 1200 people here, I'm a big Spotify fan, Amazon Prime, go back to Costco if you want to go back that far. But it seems to really be taking off. >> It is. About three years ago, digital transformation became a hot topic. And because it became a hot topic, it's really about how do I get products to be more like services. How do I get services to get into insights, and how do I make insights more like experiences and outcomes? And that natural transition as companies make a shift in business models is what's driving and fueling the subscription economy. >> It's interesting. Do you think they had to put the two and two together, that once the products become services now you can tap into that service, you can pull all kinds of data after that thing, you can have analytics, as opposed to shipping that product out the door it goes and maybe you see it every 15,000 miles for a checkup? >> You know what it is? It's basically, about three years ago, people started to realize this. Tien's been talking about this for ages, right? He's been talking about everything's a subscription economy, everything is going to be SAS-ified. And in tech world, everybody got that. But it was when companies like GE, which we saw together, a Caterpillar or a Ford, started to realize, "Hey we can do remote monitoring and sensing "with IOT on our cars, "and I can now figure out what's going on "and monitor them or give an upgrade, "or give a company an upgrade on their appliance, "or give an upgrade on their vehicle, "or do safety and compliance." Then people started realizing, "Oh, wow. "We're not just selling products. "We're in the services business." >> Right. It's funny, if you read the Elon Musk book, how the model years of Teslas, there's no such thing as a model year. It's what firmware version are you on, and then they upgrade. >> Oh, no, that's what we do all the time. You click on a little T, and it's like, boom, firmware. Oh, I get a new upgrade. Only the other day, you touch your head seat, there's like a lumbar support thing, the software popped up for headrest! I never knew I could change the headrest! It literally showed up two months ago. It's unbelievable. >> So, the cool thing, I think, that doesn't get enough play is the difference in the relationship when now you have a subscription-based relationship. That's a monthly recurring or annual recurring, you got to keep delivering value. You got to keep surprising you every morning, when you come out and get in your car, as opposed to that one time purchase. "Adios, we'll see you in however many years "until you get your next vehicle." >> Oh, that's a great example. And the Tesla, we got the Easter eggs over Christmas, right? So the Christmas holiday thing with the Model X that actually did Trans-Siberian Express to the Bellagio fountains with the doors that popped up. You're like, "Hey, what is this thing?" It's just an upgrade that shows up. You're like, "Okay." But you do. You do have to delight customers, you're always capturing their attention, and the fact is, hey, I might buy a toaster. And in that toaster, I might get an upgrade two to three years out. Or maybe, I just buy toasters, and I subscribe to them. And every three years, I get a new toaster. And I can choose between a model L or I can go upsell, get a different color, or I can change out a different set of features, but we're starting to see that. Or maybe, I get a hotel room or a vacation. And that hotel room is at level X, and if I get a couple more members of my family, I get to level Z, and I get to another level, where I lose all the kids, I go back to level A. But the point being is I'm buying a subscription to having an awesome vacation. And that is the type of things that we're talking about here. It's that freedom that Tien was talking about. >> Because he talked about the freedom from obsolescence, freedom from maintenance. There's a whole bunch of benefits that aren't necessarily surfaced when you consume stuff as a service versus consuming it as a product. >> It does. And sometimes it may cost more, but you're trading the convenience, you're trading the velocity of innovation, right? For some people, they just want to own the same thing, they're not going to make the move, but for other people, it's about getting the newest thing, getting delighted, having a new feature. And in some cases, it's about safety, right? This is regulatory compliant or I'm actually doing rev rec correctly, as they were talking about, ASC606. >> Alright, so you're getting out on the road a lot, it's June 6, and I won't tell anyone on air how many miles you already have, because Tamara is probably watching, and she'll be jealous, but biggest surprise is you see here or recently as this digital transformation just continues to gain speed. I'm doing a little research now, and maybe you can help me out. Looking back at digital photography, because it's like, "No, no, no, no, no." for the film, and then it's like, boom. I think these really steep inflection points, or up if you're on the right side, are coming. >> Let's stick to digital photography, that was a great one. There was the point, remember, where we actually had all those disposable cameras at parties that'd get developed, one hour developing. Then we get to back to the point where you just showed up at Costco, dropped something off, you'd get the disk and the photo. Then we had O-Photo, and now we have nothing. Everything just went away because of the phones. These things changed everything, right? I mean, they changed the way we look at photography to the point where, do we even have an album? I was breaking out albums basically three weeks ago, showing my kids, like "Hey, this is what a photo album looks like." And they were completely mystified. "Oh, you print these, how do they get printed?" I mean, they're asking the basic questions. That transformation is what we're having right now. "You own a car?" "You actually buy a PC?" I'm buying compute power. Kilowatts per hour for artificial intelligence in the next year. It's not going to be, I bought the server, I loaded it up, I got it tuned, I got it ready. So yeah, we are in the middle of that shift. But it's the fact that companies are willing to change their business models, and they're willing to break free in the post ERP era. A lot of this is just, my old ERP does not do billing, it doesn't understand the smallest unit of something I sell, and I've got to fix that. And more importantly, my customers, they want to buy it today. The want to buy it in pieces. They want to buy it even smaller pieces. They might buy it every other week, they might buy it-- we have no idea. Yeah, I've got to make sure I can do that. >> It's just interesting too that this is happening now. We're talking about autonomous cars. We see the Waymo cars all the time. The guy from Caterpillar, he's got to a whole autonomous fleet of mining vehicles that are operating today. >> 500,000! He's got 500,000 little trucks. Well, they're not little trucks, they can't fit in this building. >> They're big trucks. Apparently, they tried. >> But they're trying to get these trucks in. We used to think about, like "Hey, these are agricultural vehicles that can be remotely controlled by GPS, they also work for tanks." These are things that are actually doing runs. Now, it's a great reason. Think Australia. Out in Perth, it's about $150,000 to hire a driver. Just to go back and forth. So they figured, "This is just getting ridiculous. "We don't have enough people out here. "We can't convince enough people "to come drive these trucks. "Let's go automate that." That's a lot of the story of where a lot of this came from. >> Or he had a bad night, or broke up with his girlfriend, or distracted about this or that. The whole autonomous vehicle versus regular people driver-- all you've got to do is ride around on your bicycle in your neighborhood, and watch how many people stop at stop signs. Should we answer that question real fast? >> Oh, I do that in California. That's kind of bad, actually. >> Alright Ray. Well, thanks for taking a few minutes. I'm glad you get a weekend at home. Where you off to next, I should ask? >> Oh, it's going to be a crazy next few weeks. I'm going to be in London and Paris and Boston all next week. >> Oh, you're going to eat well. >> I'll try. >> Alright, he's Ray Wang. I'm Jeff Frick. You're watching the Cube from Zuora Subscribe. Thanks for watching.

>> Hey welcome back everybody, Jeff Frick here with theCUBE. We're at Zuora Subscribe 2017 in San Francisco. You know, I go to these events a lot. We love to talk to customers and clients and there's just some customers that are a little bit more personal than others. And this is one here. We're really excited to have Ken Cornick on. He's the co-founder, president and CFO, a busy guy, of Clear or affectionately known as ClearMe. >> ClearMe >> In the twitter-sphere. >> ClearMe.com, that's right. >> Jeff: Ken, great to meet you in person. >> Nice to meet you as well, thanks for your support as a customer. >> As you say, I'm an unabashed happy customer. >> That's great. >> Except when you get the nasty looks from people when they escort you past them all in the security line. >> Well, everybody can be a Clear member if they want. >> Exactly. >> And we give free trials, so they don't have to pay. >> How can you miss? So, where'd you come up with the idea? Just give us a little bit of the history for people that aren't familiar with Clear. >> Actually we don't have a not-invented-here mentality. We actually bought the business out of bankruptcy. >> Oh that's right >> 'Cause it was completely shut down. >> I actually ran into someone the other day at the airport, she said, "I had Clear before and then it went away." And then she was so happy you brought it back. >> Right and for our, we call them, legacy members that were members of the old company, we give their time back for free. So, I shouldn't say free because they paid for it. So, if you had a year remaining when the old company went under, we'll honor that year and you can use Clear for a year without paying and then hopefully you'll continue to pay us as an ongoing customer. >> And what people maybe don't know or are not as familiar with, is it's not just for airports anymore. I was so thrilled, not that long ago, I went to a Giants game at AT&T and I see the ClearMe sign. >> That's right. So we're in eight stadiums across the country with more to come. I live in New York so we have Yankees and Mets which makes me happy. I'm a Yankee fan, my kids are Mets fans so we're covered there. But we're looking to increase the number of places you can use Clear and to increase value, add to our members. So the more you use it, the happier you'll be, and the longer you'll stay with us. >> Right and how do you describe the service? Is it identity as a service? Which is something that just popped into my mind. How do you describe what Clear is all about? >> Funny enough, we do talk about identity as a service not relative to the airport business. The airport business is what we're known for. But really, we bought the business out of bankruptcy and we started it to become a biometric identity platform. Our view is, we want to remove friction. Wherever identity is important, up until now, any time you want to increase security, it diminishes the consumer experience. >> Right. >> So we think, our technology can change all that. We can increase security while making better consumer experiences as you witnessed at the Giants game. >> Or the Orlando airport which is my favorite Clear airport. >> So we are expanding in the airport but we are also looking to expand outside of the airport, even beyond stadiums. So things like, payment applications or it could be healthcare applications, we're building a biometric ecosystem. You've enrolled in Clear once, you can use that enrollment wherever we are. >> God, I can imagine you could integrate with building access points? All these types of things. >> That's exactly right. So there's smart cities, smart cars, all of those applications have biometric angles to them. >> So, good space to be in, good move. >> We think so. >> But we're here at Zuora Subscribe. So you guys chose to have a subscription relationship with your customers. So, why and what are some of the things that have come out of that that you've learned both kind of surprises as well as validations? >> Well, we're big believers in the subscription economy which is the sort of buzz word here. But for us, we want Clear members to not have to think about it. Part of the draw of Clear, is obviously you are saving time in the airport, but it's also the mentality of no stress going to the airport. So I flew out of JFK the other day at a seven AM flight. I live downtown. And I woke up at 5:15 for a seven AM flight, knowing that I could get through JFK, through the Clear lane in five minutes or less. That change in behavior is the true value add, that once our members experience that they love the service. And so, I don't want you to have to think about, well, it's a monthly, am I active am I not active? It's an annual, once a year subscription. You pay it, you don't worry about it again until you renew the year later. >> Yeah that's funny too that you put it in kind of an experience point of view. Because it is the experience. We just had the No-Stress Guy put a thing on the back of your head. Get the Clear card and that'll lower your stress on the way to the airport. >> Absolutely. >> Quite a bit because you just never know what's waiting for you at those security lines. >> You never know and it could be five minutes. It could be 30 minutes. And that uncertainty causes you to carve out a bunch of your time ahead of getting to the airport. You know that you can look at Waze and see what the traffic is. You know you can check online to see what kind of delays there are for your flight. But you just don't know what's going to happen at the security checkpoint. >> Right, right. >> It's the last frontier. >> So, any special, exciting new places that you want to highlight before we have to go? >> Sure so, we started in 2010 with two airports. Denver and Orlando were our first two airports back. We've been growing fairly rapidly. And we're about to open our 22nd airport in about a week to 10 days and that's Los Angeles which is a huge airport. >> Male: Oh, you're not at Los Angeles. >> We are not at Los Angeles yet. So that is a big piece of the network for us and especially if your in Bay Area base, really, really important. >> Right, how many terminals do you have to go? 'Cause you guys do it kind of terminal by terminal right? >> Yeah, we're going to be ubiquitous in L.A., besides the international terminal, we're going to be in seven check-points I believe. It's a very big operation, a big undertaking. >> Alright, well Ken like I say, I'm an unabashed fan so I won't pretend to be bias at all. Love the service. >> Great, thank you so much. >> And congratulations and again, great opportunities to go way beyond the airport. >> Thanks for hosting me. >> Alright my pleasure, Ken Cornick, I'm Jeff Frick. He's from ClearMe, I'm from theCUBE. Thanks for watching.

>> Hey welcome back here everybody. Jeff Frick here with theCUBE. We're at the Zuora Subscribe Conference 2017, downtown on San Francisco. 1,000, 2,000 people talking about the subscription economy. I think it's like the sixth year they've been doing the show. First time we've been here. We're excited to be here. But we're joined by a company that we spent a lot of time talking about IOT and the industrial internet, and that's GE, but a new guest, Gytis Barzdukas, he is the head of Predix Product Management for GE Digital. Welcome. >> Thanks Jeff, thanks for having me here. >> So you guys, I mean, we were there in 2013 when Beth and Bill launched the industrial internet initiative at the Jewish History Museum just across the street. So you guys have been in this space for a while, the GE Predix Cloud, industrial internet cloud, you guys have been doing a lot of stuff there. So give us a kind of update, where are you? Obviously picked to highlight one of the key stories here. People probably don't think of GE as necessarily a subscription economy type of play, but, >> So why are we here? >> Jeff: Yeah, so why are you here? >> Well we're here because we are a subscription economy. What we're really focusing on with Predix is building a platform that allows third-parties and first-party applications to be built around the industrial space, and so a lot of what we're hearing from our customers is that they want to subscribe to those services. They want to subscribe to either the production of the services, but more importantly maybe the different elements that bring together a solution. So think about the concept like a digital twin, a virtual representation of a physical asset. A lot of times what people want to do is they want to build twins specific to a specific asset. But they want to bring together the analytics, and the data associated with that, and maybe some environmental factors that they subscribe to from a third-party, bring those all together, do an analysis, And then basically give that stuff back. So they want to subscribe to things like analytics. They want to subscribe to data and the inputs, so that's why we're here. We've been using Zuora as part of our subscription service since we kicked off GE Predix last year. We went GA in February, and it's proven to be a very flexible solution for us. >> So the part that I don't think gets enough talk, and there really wasn't a lot of talk in the keynote, is how a subscription relationship changes the way that you engage with the customer. 'Cause if you just sell 'em something, here's the transaction, you know, go off, go run your jet engine, run your turbine, but if you have a subscription, and it's an ongoing value delivery to pay for that ongoing money that they're giving you, it's a much kind of deeper relationship than kind of a single transaction relationship. >> It can develop to be a much deeper relationship. I think the thing that it allows you to do is, it allows you to experiment a little bit, try a couple things, figure out what works best for you as a customer and then invest in those areas. You don't have to make a big purchase order. You don't have to go off and spend a lot of money on a bunch of software that may eventually go away. You can almost try, before you buy, or try as you buy is probably a better way of putting it. And so what we're seeing is we give people the ability to experiment. I think, we talk within GE about productivity and the impact we can make in our own productivity. To me Predix is as much about innovation. It's giving people the ability to try different things, to try and see what happens when you bring in environmental factors or usage data, or operational data, or we talk about jet engines a lot. Looking at the different pilots, how do they operate the engines? So there's all these scenarios you can sort of experiment with on a subscription model, find out what works and then go deep as necessary. >> And it's interesting, Tien in the keynote talked about how what's different now is that you can buy, you can upgrade, you can cancel, you can downgrade, so again this interaction as you just described, allows for a bunch of different types of engagement, not just the big bang. >> Yep, yeah. >> And the other thing that's consistent with who you're over and overwrite is the democratization. Democratization of the data, democratization of the tools so that if somebody does have a hypothesis, we've been looking at obviously a plane operating in the southwest United States is going to have different characteristics as one operating in Alaska. But as you just said maybe we should look at pilot characteristics. Maybe we should look at back ends, so when you open up that innovation platform, now you have so many more people coming up with hypothesis, testing hypothesis, and you open up the resources to your company to do so much better. >> Well, and you have little innovation, so we have a partner based in Israel, Plataine, who's doing some stuff in the manufacturing space with GE as we start thinking about additive manufacturing. You want to start thinking about the composites and the materials that actually go into the engine, and sort of how have those held up over time? So you can build a much more longitudinal view of that, and again, it can be a subscription service where you start experimenting, you start understanding, especially with additive being sort of a mechanism to decentralize a lot of the manufacturing. You don't need to make a huge investment to doing those analytics. You put some software alongside the additive systems, and you've got the ability to innovate and understand better what composites work better. You talk about the operation of the engine, but how about the manufacturing of the engine? Are there optimal environments where you want to build those engines? And I think we've done great work as an industrial company and understand how to optimize systems and probably even like what the environmental factors are to build an engine effectively, but when you start distributing that, you really want to gauge that real time to understand what the impact could be. >> All right, so we're on short time leash here, unfortunately, but I want to give you the last word, give a plug for the Predix Transform Show coming up as part of Minds and Machines. We went for the first year last year. It was 2,000 developers, pretty great turnout for really a development platform for an industrial internet cloud. >> Yeah, so what we've done this year is we're bringing together Transform, which is the event for our developer community with Minds and Machines which is more targeted towards the business leaders or some of the IT leaders in their organization and bringing them all under one roof. It'll be here in San Francisco mid-October. I don't have the exact dates. I probably should, but I think it's like-- >> I can look it up on the internet. That's why we have the internet. >> But we're bringing those together. So we can have a dialogue that spans the complete spectrum. It's the people that are building, and we'll have hackathons, we'll have places where people can actually work on that. We'll judge those different solutions that are being hacked together. And then we'll be presenting sort of the business value and the impact we're seeing with a lot of the industrial customers. Again, many of them are GE's existing customers. But we've got customers in the auto industry, elevator, escalator industry, fixtures, manufacturing, spaces that we haven't traditionally played, and so we'll be talking about all of the benefits. We're bringing in those customers plus some new product introductions which I can't talk about now. >> All right great event, IT meets OT. We went last year. Jeff was there, Beth was there, >> They will be there. >> Jeff: Bill was there, all the players. A great show. >> okay, Jeff. >> Jeff: Congratulations on your success with Zuora and we look forward to seeing you at Minds and Machines. >> Okay, thanks Jeff. >> All right, he's Gytis, I'm Jeff Frick. You're watching theCUBE from Zuora Subscribe 2017. We'll be right back after this short break. Thanks for watching.