>>from around the globe. It's the Cube presenting enterprise. Digital resilience on hybrid and multi cloud Brought to You by Iota Ho. Hello, everyone, and welcome to our continuing Siri's covering data automation brought to you by Io Tahoe. Today we're gonna look at how to ensure enterprise resilience for hybrid and multi cloud. Let's welcome in age. Eva Hora, who is the CEO of Iota A J. Always good to see you again. Thanks for coming on. >>Great to be back. David Pleasure. >>And he's joined by Fozzy Coons, who is a global principal architect for financial services. The vertical of financial services. That red hat. He's got deep experiences in that sector. Welcome, Fozzie. Good to see you. >>Thank you very much. Happy to be here. >>Fancy. Let's start with you. Look, there are a lot of views on cloud and what it is. I wonder if you could explain to us how you think about what is a hybrid cloud and and how it works. >>Sure, yes. So the hybrid cloud is a 90 architecture that incorporates some degree off workload, possibility, orchestration and management across multiple clouds. Those clouds could be private cloud or public cloud or even your own data centers. And how does it all work? It's all about secure interconnectivity and on demand. Allocation of resources across clouds and separate clouds can become hydrate when they're similarly >>interconnected. And >>it is that interconnectivity that allows the workloads workers to be moved and how management can be unified in off the street. You can work and how well you have. These interconnections has a direct impact on how well your hybrid cloud will work. >>Okay, so we'll fancy staying with you for a minute. So in the early days of Cloud that turned private Cloud was thrown a lot around a lot, but often just meant virtualization of an on PREM system and a network connection to the public cloud. Let's bring it forward. What, in your view, does a modern hybrid cloud architecture look like? >>Sure. So for modern public clouds, we see that, um, teams organizations need to focus on the portability off applications across clouds. That's very important, right? And when organizations build applications, they need to build and deploy these applications as small collections off independently, loosely coupled services, and then have those things run on the same operating system which means, in other words, running it on Lenox everywhere and building cloud native applications and being able to manage and orchestrate thes applications with platforms like KUBERNETES or read it open shit, for example. >>Okay, so that Z, that's definitely different from building a monolithic application that's fossilized and and doesn't move. So what are the challenges for customers, you know, to get to that modern cloud? Aziz, you've just described it. Is it skill sets? Is that the ability to leverage things like containers? What's your view there? >>So, I mean, from what we've seen around around the industry, especially around financial services, where I spent most of my time, we see that the first thing that we see is management right now because you have all these clouds and all these applications, you have a massive array off connections off interconnections. You also have massive array off integrations, possibility and resource allocations as well, and then orchestrating all those different moving pieces. Things like storage networks and things like those are really difficult to manage, right? That's one. What s O Management is the first challenge. The second one is workload, placement, placement. Where do you place this? How do you place this cloud? Native applications. Do you or do you keep on site on Prem? And what do you put in the cloud? That is the the the other challenge. The major one. The third one is security. Security now becomes the key challenge and concern for most customers. And we could talk about how hundreds? Yeah, >>we're definitely gonna dig into that. Let's bring a J into the conversation. A J. You know, you and I have talked about this in the past. One of the big problems that virtually every companies face is data fragmentation. Um, talk a little bit about how I owe Tahoe unifies data across both traditional systems legacy systems. And it connects to these modern I t environments. >>Yeah, sure, Dave. I mean, fancy just nailed it. There used to be about data of the volume of data on the different types of data. But as applications become or connected and interconnected at the location of that data really matters how we serve that data up to those those app. So working with red hat in our partnership with Red Hat being able Thio, inject our data Discovery machine learning into these multiple different locations. Would it be in AWS on IBM Cloud or A D. C p R. On Prem being able thio Automate that discovery? I'm pulling that. That single view of where is all my data then allows the CEO to manage cast that can do things like one. I keep the data where it is on premise or in my Oracle Cloud or in my IBM cloud on Connect. The application that needs to feed off that data on the way in which you do that is machine learning. That learns over time is it recognizes different types of data, applies policies to declassify that data. Andi and brings it all together with automation. >>Right? And that's one of the big themes and we've talked about this on earlier episodes. Is really simplification really abstracting a lot of that heavy lifting away so we can focus on things A. J A. Z. You just mentioned e nifaz e. One of the big challenges that, of course, we all talk about his governance across thes disparity data sets. I'm curious as your thoughts. How does Red Hat really think about helping customers adhere to corporate edicts and compliance regulations, which, of course, are are particularly acute within financial services. >>Oh, yeah, Yes. So for banks and the payment providers, like you've just mentioned their insurers and many other financial services firms, Um, you know, they have to adhere Thio standards such as a PC. I. D. S s in Europe. You've got the G g d p g d p r, which requires strange and tracking, reporting documentation. And you know, for them to to remain in compliance and the way we recommend our customers to address these challenges is by having an automation strategy. Right. And that type of strategy can help you to improve the security on compliance off the organization and reduce the risk after the business. Right. And we help organizations build security and compliance from the start without consulting services residencies. We also offer courses that help customers to understand how to address some of these challenges. And that's also we help organizations build security into their applications without open sources. Mueller, where, um, middle offerings and even using a platform like open shift because it allows you to run legacy applications and also continue rights applications in a unified platform right And also that provides you with, you know, with the automation and the truly that you need to continuously monitor, manage and automate the systems for security and compliance >>purposes. Hey, >>Jay, anything. Any color you could add to this conversation? >>Yeah, I'm pleased. Badly brought up Open shift. I mean, we're using open shift to be able. Thio, take that security application of controls to to the data level. It's all about context. So, understanding what data is there being able to assess it to say who should have access to it. Which application permission should be applied to it. Um, that za great combination of Red Hat tonight. Tahoe. >>But what about multi Cloud? Doesn't that complicate the situation even even further? Maybe you could talk about some of the best practices to apply automation across not only hybrid cloud, but multi >>cloud a swell. Yeah, sure. >>Yeah. So the right automation solution, you know, can be the difference between, you know, cultivating an automated enterprise or automation caress. And some of the recommendations we give our clients is to look for an automation platform that can offer the first thing is complete support. So that means have an automation solution that provides that provides, um, you know, promotes I t availability and reliability with your platform so that you can provide, you know, enterprise great support, including security and testing, integration and clear roadmaps. The second thing is vendor interoperability interoperability in that you are going to be integrating multiple clouds. So you're going to need a solution that can connect to multiple clouds. Simples lee, right? And with that comes the challenge off maintain ability. So you you you're going to need to look into a automation Ah, solution that that is easy to learn or has an easy learning curve. And then the fourth idea that we tell our customers is scalability in the in the hybrid cloud space scale is >>is >>a big, big deal here, and you need a to deploy an automation solution that can span across the whole enterprise in a constituent, consistent manner, right? And then also, that allows you finally to, uh, integrate the multiple data centers that you have, >>So A J I mean, this is a complicated situation, for if a customer has toe, make sure things work on AWS or azure or Google. Uh, they're gonna spend all their time doing that, huh? What can you add really? To simplify that that multi cloud and hybrid cloud equation? >>Yeah. I could give a few customer examples here Warming a manufacturer that we've worked with to drive that simplification Onda riel bonuses for them is has been a reduction cost. We worked with them late last year to bring the cost bend down by $10 million in 2021 so they could hit that reduced budget. Andre, What we brought to that was the ability thio deploy using open shift templates into their different environments. Where there is on premise on bond or in as you mentioned, a W s. They had G cps well, for their marketing team on a cross, those different platforms being out Thio use a template, use pre built scripts to get up and running in catalog and discover that data within minutes. It takes away the legacy of having teams of people having Thio to jump on workshop cause and I know we're all on a lot of teens. The zoom cause, um, in these current times, they just sent me is in in of hours in the day Thio manually perform all of this. So yeah, working with red hat applying machine learning into those templates those little recipes that we can put that automation toe work, regardless of which location the data is in allows us thio pull that unified view together. Right? >>Thank you, Fozzie. I wanna come back to you. So the early days of cloud, you're in the big apple, you know, financial services. Really well. Cloud was like an evil word within financial services, and obviously that's changed. It's evolved. We talked about the pandemic, has even accelerated that, Um And when you really, you know, dug into it when you talk to customers about their experiences with security in the cloud it was it was not that it wasn't good. It was great, whatever. But it was different. And there's always this issue of skill, lack of skills and multiple tools suck up teams, they're really overburdened. But in the cloud requires new thinking. You've got the shared responsibility model you've got obviously have specific corporate requirements and compliance. So this is even more complicated when you introduce multiple clouds. So what are the differences that you can share from your experience is running on a sort of either on Prem or on a mono cloud, um, or, you know, and versus across clouds. What? What? What do you suggest there? >>Yeah, you know, because of these complexities that you have explained here, Miss Configurations and the inadequate change control the top security threats. So human error is what we want to avoid because is, you know, as your clouds grow with complexity and you put humans in the mix, then the rate off eras is going to increase, and that is going to exposure to security threat. So this is where automation comes in because automation will streamline and increase the consistency off your infrastructure management. Also application development and even security operations to improve in your protection, compliance and change control. So you want to consistently configure resources according to a pre approved um, you know, pre approved policies and you want to proactively maintain a to them in a repeatable fashion over the whole life cycle. And then you also want to rapid the identified system that require patches and and reconfiguration and automate that process off patching and reconfiguring so that you don't have humans doing this type of thing, right? And you want to be able to easily apply patches and change assistant settings. According Thio, Pre defined, based on like explained before, you know, with the pre approved policies and also you want is off auditing and troubleshooting, right? And from a rate of perspective, we provide tools that enable you to do this. We have, for example, a tool called danceable that enables you to automate data center operations and security and also deployment of applications and also obvious shit yourself, you know, automates most of these things and obstruct the human beings from putting their fingers on, causing, uh, potentially introducing errors right now in looking into the new world off multiple clouds and so forth. The difference is that we're seeing here between running a single cloud or on prem is three main areas which is control security and compliance. Right control here it means if your on premise or you have one cloud, um, you know, in most cases you have control over your data and your applications, especially if you're on Prem. However, if you're in the public cloud, there is a difference there. The ownership, it is still yours. But your resources are running on somebody else's or the public clouds. You know, e w s and so forth infrastructure. So people that are going to do this need to really especially banks and governments need to be aware off the regulatory constraints off running, uh, those applications in the public cloud. And we also help customers regionalize some of these choices and also on security. You will see that if you're running on premises or in a single cloud, you have more control, especially if you're on Prem. You can control this sensitive information that you have, however, in the cloud. That's a different situation, especially from personal information of employees and things like that. You need to be really careful off that. And also again, we help you rationalize some of those choices. And then the last one is compliant. Aziz. Well, you see that if you're running on Prem or a single cloud, um, regulations come into play again, right? And if you're running a problem, you have control over that. You can document everything you have access to everything that you need. But if you're gonna go to the public cloud again, you need to think about that. We have automation, and we have standards that can help you, uh, you know, address some of these challenges for security and compliance. >>So that's really strong insights, Potsie. I mean, first of all, answerable has a lot of market momentum. Red hats in a really good job with that acquisition, your point about repeatability is critical because you can't scale otherwise. And then that idea you're you're putting forth about control, security compliance It's so true is I called it the shared responsibility model. And there was a lot of misunderstanding in the early days of cloud. I mean, yeah, maybe a W s is gonna physically secure the, you know, s three, but in the bucket. But we saw so many Miss configurations early on. And so it's key to have partners that really understand this stuff and can share the experiences of other clients. So this all sounds great. A j. You're sharp, you know, financial background. What about the economics? >>You >>know, our survey data shows that security it's at the top of the spending priority list, but budgets are stretched thin. E especially when you think about the work from home pivot and and all the areas that they had toe the holes that they had to fill their, whether it was laptops, you know, new security models, etcetera. So how do organizations pay for this? What's the business case look like in terms of maybe reducing infrastructure costs so I could, you know, pay it forward or there's a There's a risk reduction angle. What can you share >>their? Yeah. I mean, the perspective I'd like to give here is, um, not being multi cloud is multi copies of an application or data. When I think about 20 years, a lot of the work in financial services I was looking at with managing copies of data that we're feeding different pipelines, different applications. Now what we're saying I talk a lot of the work that we're doing is reducing the number of copies of that data so that if I've got a product lifecycle management set of data, if I'm a manufacturer, I'm just gonna keep that in one location. But across my different clouds, I'm gonna have best of breed applications developed in house third parties in collaboration with my supply chain connecting securely to that. That single version of the truth. What I'm not going to do is to copy that data. So ah, lot of what we're seeing now is that interconnectivity using applications built on kubernetes. Um, that decoupled from the data source that allows us to reduce those copies of data within that you're gaining from the security capability and resilience because you're not leaving yourself open to those multiple copies of data on with that. Couldn't come. Cost, cost of storage on duh cost of compute. So what we're seeing is using multi cloud to leverage the best of what each cloud platform has to offer That goes all the way to Snowflake and Hiroko on Cloud manage databases, too. >>Well, and the people cost to a swell when you think about yes, the copy creep. But then you know when something goes wrong, a human has to come in and figured out um, you brought up snowflake, get this vision of the data cloud, which is, you know, data data. I think this we're gonna be rethinking a j, uh, data architectures in the coming decade where data stays where it belongs. It's distributed, and you're providing access. Like you said, you're separating the data from the applications applications as we talked about with Fozzie. Much more portable. So it Z really the last 10 years will be different than the next 10 years. A. >>J Definitely. I think the people cast election is used. Gone are the days where you needed thio have a dozen people governing managing black policies to data. Ah, lot of that repetitive work. Those tests can be in power automated. We've seen examples in insurance were reduced teams of 15 people working in the the back office China apply security controls compliance down to just a couple of people who are looking at the exceptions that don't fit. And that's really important because maybe two years ago the emphasis was on regulatory compliance of data with policies such as GDP are in CCP a last year, very much the economic effect of reduce headcounts on on enterprises of running lean looking to reduce that cost. This year, we can see that already some of the more proactive cos they're looking at initiatives such as net zero emissions how they use data toe under understand how cape how they can become more have a better social impact. Um, and using data to drive that, and that's across all of their operations and supply chain. So those regulatory compliance issues that may have been external we see similar patterns emerging for internal initiatives that benefiting the environment, social impact and and, of course, course, >>great perspectives. Yeah, Jeff Hammer, Bucker once famously said, The best minds of my generation are trying to get people to click on ads and a J. Those examples that you just gave of, you know, social good and moving. Uh, things forward are really critical. And I think that's where Data is gonna have the biggest societal impact. Okay, guys, great conversation. Thanks so much for coming on the program. Really appreciate your time. Keep it right there from, or insight and conversation around, creating a resilient digital business model. You're watching the >>Cube digital resilience, automated compliance, privacy and security for your multi cloud. Congratulations. You're on the journey. You have successfully transformed your organization by moving to a cloud based platform to ensure business continuity in these challenging times. But as you scale your digital activities, there is an inevitable influx of users that outpaces traditional methods of cybersecurity, exposing your data toe underlying threats on making your company susceptible toe ever greater risk to become digitally resilient. Have you applied controls your data continuously throughout the data Lifecycle? What are you doing to keep your customer on supply data private and secure? I owe Tahoe's automated, sensitive data. Discovery is pre programmed with over 300 existing policies that meet government mandated risk and compliance standards. Thes automate the process of applying policies and controls to your data. Our algorithm driven recommendation engine alerts you to risk exposure at the data level and suggests the appropriate next steps to remain compliant on ensure sensitive data is secure. Unsure about where your organization stands In terms of digital resilience, Sign up for a minimal cost commitment. Free data Health check. Let us run our sensitive data discovery on key unmapped data silos and sources to give you a clear understanding of what's in your environment. Book time within Iot. Tahoe Engineer Now >>Okay, let's now get into the next segment where we'll explore data automation. But from the angle of digital resilience within and as a service consumption model, we're now joined by Yusuf Khan, who heads data services for Iot, Tahoe and Shirish County up in. Who's the vice president and head of U. S. Sales at happiest Minds? Gents, welcome to the program. Great to have you in the Cube. >>Thank you, David. >>Trust you guys talk about happiest minds. This notion of born digital, foreign agile. I like that. But talk about your mission at the company. >>Sure. >>A former in 2011 Happiest Mind is a born digital born a child company. The reason is that we are focused on customers. Our customer centric approach on delivering digitals and seamless solutions have helped us be in the race. Along with the Tier one providers, Our mission, happiest people, happiest customers is focused to enable customer happiness through people happiness. We have Bean ranked among the top 25 i t services company in the great places to work serving hour glass to ratings off 41 against the rating off. Five is among the job in the Indian nineties services company that >>shows the >>mission on the culture. What we have built on the values right sharing, mindful, integrity, learning and social on social responsibilities are the core values off our company on. That's where the entire culture of the company has been built. >>That's great. That sounds like a happy place to be. Now you said you had up data services for Iot Tahoe. We've talked in the past. Of course you're out of London. What >>do you what? Your >>day to day focus with customers and partners. What you focused >>on? Well, David, my team work daily with customers and partners to help them better understand their data, improve their data quality, their data governance on help them make that data more accessible in a self service kind of way. To the stakeholders within those businesses on dis is all a key part of digital resilience that will will come on to talk about but later. You're >>right, e mean, that self service theme is something that we're gonna we're gonna really accelerate this decade, Yussef and so. But I wonder before we get into that, maybe you could talk about the nature of the partnership with happiest minds, you know? Why do you guys choose toe work closely together? >>Very good question. Um, we see Hyo Tahoe on happiest minds as a great mutual fit. A Suresh has said, uh, happiest minds are very agile organization um, I think that's one of the key things that attracts their customers on Io. Tahoe is all about automation. Uh, we're using machine learning algorithms to make data discovery data cataloging, understanding, data done. See, uh, much easier on. We're enabling customers and partners to do it much more quickly. So when you combine our emphasis on automation with the emphasis on agility that happiest minds have that that's a really nice combination work works very well together, very powerful. I think the other things that a key are both businesses, a serious have said, are really innovative digital native type type companies. Um, very focused on newer technologies, the cloud etcetera on. Then finally, I think they're both Challenger brands on happiest minds have a really positive, fresh ethical approach to people and customers that really resonates with us at Ideo Tahoe to >>great thank you for that. So Russia, let's get into the whole notion of digital resilience. I wanna I wanna sort of set it up with what I see, and maybe you can comment be prior to the pandemic. A lot of customers that kind of equated disaster recovery with their business continuance or business resilient strategy, and that's changed almost overnight. How have you seen your clients respond to that? What? I sometimes called the forced march to become a digital business. And maybe you could talk about some of the challenges that they faced along the way. >>Absolutely. So, uh, especially during this pandemic, times when you say Dave, customers have been having tough times managing their business. So happiest minds. Being a digital Brazilian company, we were able to react much faster in the industry, apart from the other services company. So one of the key things is the organisation's trying to adopt onto the digital technologies. Right there has bean lot off data which has been to manage by these customers on There have been lot off threats and risk, which has been to manage by the CEO Seo's so happiest minds digital resilient technology, right where we bring in the data. Complaints as a service were ableto manage the resilience much ahead off other competitors in the market. We were ableto bring in our business continuity processes from day one, where we were ableto deliver our services without any interruption to the services. What we were delivered to our customers So that is where the digital resilience with business community process enabled was very helpful for us. Toe enable our customers continue their business without any interruptions during pandemics. >>So I mean, some of the challenges that customers tell me they obviously they had to figure out how to get laptops to remote workers and that that whole remote work from home pivot figure out how to secure the end points. And, you know, those were kind of looking back there kind of table stakes, But it sounds like you've got a digital business. Means a data business putting data at the core, I like to say, but so I wonder if you could talk a little bit more about maybe the philosophy you have toward digital resilience in the specific approach you take with clients? >>Absolutely. They seen any organization data becomes. The key on that, for the first step is to identify the critical data. Right. So we this is a six step process. What we following happiest minds. First of all, we take stock off the current state, though the customers think that they have a clear visibility off their data. How are we do more often assessment from an external point off view on see how critical their data is, then we help the customers to strategies that right. The most important thing is to identify the most important critical herself. Data being the most critical assert for any organization. Identification off the data's key for the customers. Then we help in building a viable operating model to ensure these identified critical assets are secure on monitor dearly so that they are consumed well as well as protected from external threats. Then, as 1/4 step, we try to bring in awareness, toe the people we train them >>at >>all levels in the organization. That is a P for people to understand the importance off the digital ourselves and then as 1/5 step, we work as a back up plan in terms of bringing in a very comprehensive and a holistic testing approach on people process as well as in technology. We'll see how the organization can withstand during a crisis time, and finally we do a continuous governance off this data, which is a key right. It is not just a one step process. We set up the environment, we do the initial analysis and set up the strategy on continuously govern this data to ensure that they are not only know managed will secure as well as they also have to meet the compliance requirements off the organization's right. That is where we help organizations toe secure on Meet the regulations off the organizations. As for the privacy laws, so this is a constant process. It's not on one time effort. We do a constant process because every organization goes towards their digital journey on. They have to face all these as part off the evolving environment on digital journey. And that's where they should be kept ready in terms off. No recovering, rebounding on moving forward if things goes wrong. >>So let's stick on that for a minute, and then I wanna bring yourself into the conversation. So you mentioned compliance and governance when when your digital business, you're, as you say, you're a data business, so that brings up issues. Data sovereignty. Uh, there's governance, this compliance. There's things like right to be forgotten. There's data privacy, so many things. These were often kind of afterthoughts for businesses that bolted on, if you will. I know a lot of executives are very much concerned that these air built in on, and it's not a one shot deal. So do you have solutions around compliance and governance? Can you deliver that as a service? Maybe you could talk about some of the specifics there, >>so some of way have offered multiple services. Tow our customers on digital against. On one of the key service is the data complaints. As a service here we help organizations toe map the key data against the data compliance requirements. Some of the features includes in terms off the continuous discovery off data right, because organizations keep adding on data when they move more digital on helping the helping and understanding the actual data in terms off the residents of data, it could be a heterogeneous data soldiers. It could be on data basis, or it could be even on the data legs. Or it could be a no even on compromise all the cloud environment. So identifying the data across the various no heterogeneous environment is very key. Feature off our solution. Once we identify classify this sensitive data, the data privacy regulations on the traveling laws have to be map based on the business rules So we define those rules on help map those data so that organizations know how critical their digital assets are. Then we work on a continuous marching off data for anomalies because that's one of the key teachers off the solution, which needs to be implemented on the day to day operational basis. So we're helping monitoring those anomalies off data for data quality management on an ongoing basis. On finally, we also bringing the automated data governance where we can manage the sensory data policies on their later relationships in terms off mapping on manage their business roots on we drive reputations toe Also suggest appropriate actions to the customers. Take on those specific data sets. >>Great. Thank you, Yousef. Thanks for being patient. I want to bring in Iota ho thio discussion and understand where your customers and happiest minds can leverage your data automation capability that you and I have talked about in the past. I'm gonna be great if you had an example is well, but maybe you could pick it up from there, >>John. I mean, at a high level, assertions are clearly articulated. Really? Um, Hyoty, who delivers business agility. So that's by, um accelerating the time to operationalize data, automating, putting in place controls and actually putting helping put in place digital resilience. I mean way if we step back a little bit in time, um, traditional resilience in relation to data often met manually, making multiple copies of the same data. So you have a d b A. They would copy the data to various different places, and then business users would access it in those functional style owes. And of course, what happened was you ended up with lots of different copies off the same data around the enterprise. Very inefficient. ONDA course ultimately, uh, increases your risk profile. Your risk of a data breach. Um, it's very hard to know where everything is. And I realized that expression. They used David the idea of the forced march to digital. So with enterprises that are going on this forced march, what they're finding is they don't have a single version of the truth, and almost nobody has an accurate view of where their critical data is. Then you have containers bond with containers that enables a big leap forward so you could break applications down into micro services. Updates are available via a p I s on. So you don't have the same need thio to build and to manage multiple copies of the data. So you have an opportunity to just have a single version of the truth. Then your challenge is, how do you deal with these large legacy data states that the service has been referring Thio, where you you have toe consolidate and that's really where I attack comes in. Um, we massively accelerate that process of putting in a single version of the truth into place. So by automatically discovering the data, discovering what's dubica? What's redundant? Uh, that means you can consolidate it down to a single trusted version much more quickly. We've seen many customers have tried to do this manually, and it's literally taken years using manual methods to cover even a small percentage of their I T estates. With our tire, you could do it really very quickly on you can have tangible results within weeks and months on Ben, you can apply controls to the data based on context. So who's the user? What's the content? What's the use case? Things like data quality validations or access permissions on. Then, once you've done there. Your applications and your enterprise are much more secure, much more resilient. As a result, you've got to do these things whilst retaining agility, though. So coming full circle. This is where the partnership with happiest minds really comes in as well. You've got to be agile. You've gotta have controls. Um, on you've got a drug toward the business outcomes. Uh, and it's doing those three things together that really deliver for the customer. >>Thank you. Use f. I mean you and I. In previous episodes, we've looked in detail at the business case. You were just talking about the manual labor involved. We know that you can't scale, but also there's that compression of time. Thio get to the next step in terms of ultimately getting to the outcome. And we talked to a number of customers in the Cube, and the conclusion is, it's really consistent that if you could accelerate the time to value, that's the key driver reducing complexity, automating and getting to insights faster. That's where you see telephone numbers in terms of business impact. So my question is, where should customers start? I mean, how can they take advantage of some of these opportunities that we've discussed today. >>Well, we've tried to make that easy for customers. So with our Tahoe and happiest minds, you can very quickly do what we call a data health check. Um, this is a is a 2 to 3 week process, uh, to really quickly start to understand on deliver value from your data. Um, so, iota, who deploys into the customer environment? Data doesn't go anywhere. Um, we would look at a few data sources on a sample of data. Onda. We can very rapidly demonstrate how they discovery those catalog e on understanding Jupiter data and redundant data can be done. Um, using machine learning, um, on how those problems can be solved. Um, And so what we tend to find is that we can very quickly, as I say in the matter of a few weeks, show a customer how they could get toe, um, or Brazilian outcome on then how they can scale that up, take it into production on, then really understand their data state? Better on build. Um, Brasiliense into the enterprise. >>Excellent. There you have it. We'll leave it right there. Guys, great conversation. Thanks so much for coming on the program. Best of luck to you and the partnership Be well, >>Thank you, David Suresh. Thank you. Thank >>you for watching everybody, This is Dave Volonte for the Cuban are ongoing Siris on data automation without >>Tahoe, digital resilience, automated compliance, privacy and security for your multi cloud. Congratulations. You're on the journey. You have successfully transformed your organization by moving to a cloud based platform to ensure business continuity in these challenging times. But as you scale your digital activities, there is an inevitable influx of users that outpaces traditional methods of cybersecurity, exposing your data toe underlying threats on making your company susceptible toe ever greater risk to become digitally resilient. Have you applied controls your data continuously throughout the data lifecycle? What are you doing to keep your customer on supply data private and secure? I owe Tahoe's automated sensitive data. Discovery is pre programmed with over 300 existing policies that meet government mandated risk and compliance standards. Thes automate the process of applying policies and controls to your data. Our algorithm driven recommendation engine alerts you to risk exposure at the data level and suggests the appropriate next steps to remain compliant on ensure sensitive data is secure. Unsure about where your organization stands in terms of digital resilience. Sign up for our minimal cost commitment. Free data health check. Let us run our sensitive data discovery on key unmapped data silos and sources to give you a clear understanding of what's in your environment. Book time within Iot. Tahoe Engineer. Now. >>Okay, now we're >>gonna go into the demo. We want to get a better understanding of how you can leverage open shift. And I owe Tahoe to facilitate faster application deployment. Let me pass the mic to Sabetta. Take it away. >>Uh, thanks, Dave. Happy to be here again, Guys, uh, they've mentioned names to be the Davis. I'm the enterprise account executive here. Toyota ho eso Today we just wanted to give you guys a general overview of how we're using open shift. Yeah. Hey, I'm Noah Iota host data operations engineer, working with open ship. And I've been learning the Internets of open shift for, like, the past few months, and I'm here to share. What a plan. Okay, so So before we begin, I'm sure everybody wants to know. Noel, what are the benefits of using open shift. Well, there's five that I can think of a faster time, the operation simplicity, automation control and digital resilience. Okay, so that that's really interesting, because there's an exact same benefits that we had a Tahoe delivered to our customers. But let's start with faster time the operation by running iota. Who on open shift? Is it faster than, let's say, using kubernetes and other platforms >>are >>objective iota. Who is to be accessible across multiple cloud platforms, right? And so by hosting our application and containers were able to achieve this. So to answer your question, it's faster to create and use your application images using container tools like kubernetes with open shift as compared to, like kubernetes with docker cry over container D. Okay, so we got a bit technical there. Can you explain that in a bit more detail? Yeah, there's a bit of vocabulary involved, uh, so basically, containers are used in developing things like databases, Web servers or applications such as I have top. What's great about containers is that they split the workload so developers can select the libraries without breaking anything. And since Hammond's can update the host without interrupting the programmers. Uh, now, open shift works hand in hand with kubernetes to provide a way to build those containers for applications. Okay, got It s basically containers make life easier for developers and system happens. How does open shift differ from other platforms? Well, this kind of leads into the second benefit I want to talk about, which is simplicity. Basically, there's a lot of steps involved with when using kubernetes with docker. But open shift simplifies this with their source to image process that takes the source code and turns it into a container image. But that's not all. Open shift has a lot of automation and features that simplify working with containers, an important one being its Web console. Here. I've set up a light version of open ship called Code Ready Containers, and I was able to set up her application right from the Web console. And I was able to set up this entire thing in Windows, Mac and Lennox. So its environment agnostic in that sense. Okay, so I think I've seen the top left that this is a developers view. What would a systems admin view look like? It's a good question. So here's the administrator view and this kind of ties into the benefit of control. Um, this view gives insights into each one of the applications and containers that are running, and you could make changes without affecting deployment. Andi can also, within this view, set up each layer of security, and there's multiple that you can prop up. But I haven't fully messed around with it because with my luck, I'd probably locked myself out. So that seems pretty secure. Is there a single point security such as you use a log in? Or are there multiple layers of security? Yeah, there are multiple layers of security. There's your user login security groups and general role based access controls. Um, but there's also a ton of layers of security surrounding like the containers themselves. But for the sake of time, I won't get too far into it. Okay, eso you mentioned simplicity In time. The operation is being two of the benefits. You also briefly mention automation. And as you know, automation is the backbone of our platform here, Toyota Ho. So that's certainly grabbed my attention. Can you go a bit more in depth in terms of automation? Open shift provides extensive automation that speeds up that time the operation. Right. So the latest versions of open should come with a built in cryo container engine, which basically means that you get to skip that container engine insulation step and you don't have to, like, log into each individual container host and configure networking, configure registry servers, storage, etcetera. So I'd say, uh, it automates the more boring kind of tedious process is Okay, so I see the iota ho template there. What does it allow me to do? Um, in terms of automation in application development. So we've created an open shift template which contains our application. This allows developers thio instantly, like set up our product within that template. So, Noah Last question. Speaking of vocabulary, you mentioned earlier digital resilience of the term we're hearing, especially in the banking and finance world. Um, it seems from what you described, industries like banking and finance would be more resilient using open shift, Correct. Yeah, In terms of digital resilience, open shift will give you better control over the consumption of resource is each container is using. In addition, the benefit of containers is that, like I mentioned earlier since Hammond's can troubleshoot servers about bringing down the application and if the application does go down is easy to bring it back up using templates and, like the other automation features that open ship provides. Okay, so thanks so much. Know us? So any final thoughts you want to share? Yeah. I just want to give a quick recap with, like, the five benefits that you gained by using open shift. Uh, the five are timeto operation automation, control, security and simplicity. You could deploy applications faster. You could simplify the workload you could automate. A lot of the otherwise tedious processes can maintain full control over your workflow. And you could assert digital resilience within your environment. Guys, >>Thanks for that. Appreciate the demo. Um, I wonder you guys have been talking about the combination of a Iot Tahoe and red hat. Can you tie that in subito Digital resilience >>Specifically? Yeah, sure, Dave eso when we speak to the benefits of security controls in terms of digital resilience at Io Tahoe, we automated detection and apply controls at the data level, so this would provide for more enhanced security. >>Okay, But so if you were trying to do all these things manually. I mean, what what does that do? How much time can I compress? What's the time to value? >>So with our latest versions, Biota we're taking advantage of faster deployment time associated with container ization and kubernetes. So this kind of speeds up the time it takes for customers. Start using our software as they be ableto quickly spin up io towel on their own on premise environment are otherwise in their own cloud environment, like including aws. Assure or call GP on IBM Cloud a quick start templates allow flexibility deploy into multi cloud environments all just using, like, a few clicks. Okay, so so now just quickly add So what we've done iota, Who here is We've really moved our customers away from the whole idea of needing a team of engineers to apply controls to data as compared to other manually driven work flows. Eso with templates, automation, previous policies and data controls. One person can be fully operational within a few hours and achieve results straight out of the box on any cloud. >>Yeah, we've been talking about this theme of abstracting the complexity. That's really what we're seeing is a major trend in in this coming decade. Okay, great. Thanks, Sabina. Noah, How could people get more information or if they have any follow up questions? Where should they go? >>Yeah, sure. They've. I mean, if you guys are interested in learning more, you know, reach out to us at info at iata ho dot com to speak with one of our sales engineers. I mean, we love to hear from you, so book a meeting as soon as you can. All >>right. Thanks, guys. Keep it right there from or cube content with.

>>from around the globe. It's the Cube presenting enterprise, Digital resilience on hybrid and multi cloud Brought to You by Iota Ho. Okay, let's now get into the next segment where we'll explore data automation. But from the angle of digital resilience within and as a service consumption model, we're now joined by Yusuf Khan, who heads data services for Iota Ho and Shirish County. Up in Who's the vice president and head of U. S. Sales at happiest Minds. Gents, welcome to the program. Great to have you in the Cube. >>Thank you, David. >>Stretch. You guys talk about happiest minds. This notion of born digital, foreign agile. I like that. But talk about your mission at the company. >>Sure. A former in 2011 Happiest minds Up Born digital born a child company. >>The >>reason is that we are focused on customers. Our customer centric approach on delivering digitals and seamless solutions have helped us be in the race. Along with the Tier one providers, our mission, happiest people, happiest customers is focused to enable customer happiness through people happiness. We have Bean ranked among the top 25 I t services company in the great places to work serving hour glass to ratings off 4.1 against the rating off five is among the job in the Indian nineties services company that >>shows the >>mission on the culture. What we have built on the values, right sharing, mindful, integrity, learning and social on social responsibilities are the core values off our company on. That's where the entire culture of the company has been built. >>That's great. That sounds like a happy place to be. Now you have you head up data services for Iot Tahoe. We've talked in the past. Of course you're out of London. What do you what's your day to day focus with customers and partners? What you focused on? >>Well, David, my team work daily with customers and partners to help them better understand their data, improve their data quality, their data governance on help them make that data more accessible in a self service kind of way. To the stakeholders within those businesses on dis is all a key part of digital resilience that will will come on to talk about but later. You're >>right, e mean, that self service theme is something that we're gonna we're gonna really accelerate this decade, Yussef and so. But I wonder before we get into that, maybe you could talk about the nature of the partnership with happiest minds. You know, why do you guys choose toe work closely together? >>Very good question. Um, we see Io Tahoe on Happiest minds as a great mutual fit. A Suresh has said happiest minds are very agile organization. Um, I think that's one of the key things that attracts their customers on Io. Tahoe is all about automation. We're using machine learning algorithms to make data discovery data cataloging, understanding, data, redundancy, uh, much easier on. We're enabling customers and partners to do it much more quickly. So when you combine our emphasis on automation with the emphasis on agility, the happiest minds have that. That's a really nice combination. Work works very well together, very powerful. I think the other things that a key are both businesses, a serious have said are really innovative digital native type type companies. Um, very focused on newer technologies, the cloud etcetera, uh, on. Then finally, I think that both challenger brands Andi happiest minds have a really positive, fresh ethical approach to people and customers that really resonates with us that I have tied to its >>great thank you for that. So Russia, Let's get into the whole notion of digital resilience. I wanna I wanna sort of set it up with what I see. And maybe you can comment be prior to the pandemic. A lot of customers that kind of equated disaster recovery with their business continuance or business resilient strategy, and that's changed almost overnight. How have you seen your clients respond to that? What? I sometimes called the forced march to become a digital business. And maybe you could talk about some of the challenges that they faced along the way. >>Absolutely. So, uh, especially during this pandemic times when you see Dave customers have been having tough times managing their business. So happiest minds. Being a digital Brazilian company, we were able to react much faster in the industry, apart from the other services company. So one of the key things is the organizations trying to adopt onto the digital technologies right there has bean lot off data which has been to managed by these customers on. There have been lot off threats and risk, which has been to manage by the CEO Seo's so happiest minds digital resilient technology fight the where we're bringing the data complaints as a service, we were ableto manage the resilience much ahead off other competitors in the market. We were ableto bring in our business community processes from day one, where we were ableto deliver our services without any interruption to the services what we were delivering to our customers. >>So >>that is where the digital resilience with business community process enabled was very helpful for us who enable our customers continue there business without any interruptions during pandemics. >>So, I mean, some of the challenges that that customers tell me they obviously had to figure out how to get laptops to remote workers and that that whole remote, you know, work from home pivot figure out how to secure the end points. And, you know, those were kind of looking back there kind of table stakes, but it sounds like you've got a digital business means a data business putting data at the core, I like to say, but so I wonder if you could talk a little bit more about maybe the philosophy you have toward digital resilience in the specific approach you take with clients? >>Absolutely. They seen any organization data becomes. The key on this for the first step is to identify the critical data. Right. So we this is 1/6 process. What we following happiest minds. First of all, we take stock off the current state, though the customers think that they have a clear visibility off their data. How are we do more often assessment from an external point off view on See how critical their data is? Then we help the customers to strategies that right the most important thing is to identify the most important critical herself. Data being the most critical assault for any organization. Identification off the data's key for the customers. Then we help in building a viable operating model to ensure these identified critical assets are secure on monitor dearly so that they are consumed well as well as protected from external threats. Then, as 1/4 step, we try to bring in awareness, toe the people we train them at all levels in the organization. That is a P for people to understand the importance off the residual our cells. And then as 1/5 step, we work as a back up plan in terms of bringing in a very comprehensive and the holistic testing approach on people process as well as in technology. We'll see how the organization can withstand during a crisis time. And finally we do a continuous governance off this data, which is a key right. It is not just a one step process. We set up the environment. We do the initial analysis and set up the strategy on continuously govern this data to ensure that they are not only know managed will secure as well as they also have to meet the compliance requirements off the organization's right. That is where we help organizations toe secure on Meet the regulations off the organizations. As for the privacy laws, >>so >>this is a constant process. It's not on one time effort. We do a constant process because every organization goes towards the digital journey on. They have to face all these as part off the evolving environment on digital journey, and that's where they should be kept ready in terms off. No recovering, rebounding on moving forward if things goes wrong. >>So let's stick on that for a minute, and then I wanna bring yourself into the conversation. So you mentioned compliance and governance. When? When your digital business. Here, as you say, you're a data business. So that brings up issues. Data sovereignty. Uh, there's governance, this compliance. There's things like right to be forgotten. There's data privacy, so many things. These were often kind of afterthoughts for businesses that bolted on, if you will. I know a lot of executives are very much concerned that these air built in on, and it's not a one shot deal. So do you have solutions around compliance and governance? Can you deliver that as a service? Maybe you could talk about some of the specifics there, >>so some of way have offered multiple services. Tow our customers on digital race against. On one of the key service is the data complaints. As a service here we help organizations toe map the key data against the data compliance requirements. Some of the features includes in terms off the continuous discovery off data right, because organizations keep adding on data when they move more digital on helping the helping and understanding the actual data in terms off the residents of data, it could be a heterogeneous data sources. It could be on data basis or it could be even on the data lakes. Or it could be or no even on compromise, all the cloud environment. So identifying the data across the various no heterogeneous environment is very key. Feature off our solution. Once we identify, classify this sensitive data, the data privacy regulations on the traveling laws have to be map based on the business rules. So we define those rules on help map those data so that organizations know how critical their digital assets are. Then we work on a continuous marching off data for anomalies because that's one of the key teachers off the solution, which needs to be implemented on the day to day operational basis. So we're helping monitoring those anomalies off data for data quality management on an ongoing basis. And finally we also bringing the automatic data governance where we can manage the sensory data policies on their data relationships in terms off, mapping on manage their business rules on we drive reputations toe also suggest appropriate actions to the customers. Take on those specific data sets. >>Great. Thank you, Yousef. Thanks for being patient. I want to bring in Iota ho thio discussion and understand where your customers and happiest minds can leverage your data automation capability that you and I have talked about in the past. And I'm gonna be great if you had an example is well, but maybe you could pick it up from there. >>Sure. I mean, at a high level, assertions are clearly articulated. Really? Um, Iota, who delivers business agility. So that's by, um, accelerating the time to operationalize data, automating, putting in place controls and ultimately putting, helping put in place digital resilience. I mean, way if we step back a little bit in time, um, traditional resilience in relation to data are often met manually, making multiple copies of the same data. So you have a DB A. They would copy the data to various different places on business. Users would access it in those functional style owes. And of course, what happened was you ended up with lots of different copies off the same data around the enterprise. Very inefficient. Onda course ultimately, uh, increases your risk profile. Your risk of a data breach. Um, it's very hard to know where everything is, and I realized that expression they used David, the idea of the forced march to digital. So with enterprises that are going on this forced march, what they're finding is they don't have a single version of the truth, and almost nobody has an accurate view of where their critical data is. Then you have containers bond with containers that enables a big leap forward so you could break applications down into micro services. Updates are available via a P I s. And so you don't have the same need to build and to manage multiple copies of the data. So you have an opportunity to just have a single version of the truth. Then your challenge is, how do you deal with these large legacy data states that the service has been referring Thio, where you you have toe consolidate, and that's really where I Tahoe comes in. Um, we massively accelerate that process of putting in a single version of the truth into place. So by automatically discovering the data, um, discovering what's duplicate what's redundant, that means you can consolidate it down to a single trusted version much more quickly. We've seen many customers have tried to do this manually, and it's literally taken years using manual methods to cover even a small percentage of their I T estates with a tire. You could do it really very quickly on you can have tangible results within weeks and months. Um, and then you can apply controls to the data based on context. So who's the user? What's the content? What's the use case? Things like data quality validations or access permissions on. Then once you've done there, your applications and your enterprise are much more secure, much more resilient. As a result, you've got to do these things whilst retaining agility, though. So coming full circle. This is where the partnership with happiest minds really comes in as well. You've got to be agile. You've gotta have controls, um, on you've got a drug towards the business outcomes and it's doing those three things together that really deliver for the customer. Thank >>you. Use f. I mean you and I. In previous episodes, we've looked in detail at the business case. You were just talking about the manual labor involved. We know that you can't scale, but also there's that compression of time. Thio get to the next step in terms of ultimately getting to the outcome and we talked to a number of customers in the Cube. And the conclusion is really consistent that if you could accelerate the time to value, that's the key driver reducing complexity, automating and getting to insights faster. That's where you see telephone numbers in terms of business impact. So my question is, where should customers start? I mean, how can they take advantage of some of these opportunities that we've discussed >>today? Well, we've tried to make that easy for customers. So with our Tahoe and happiest minds, you can very quickly do what we call a data health check on. Dis is a is a 2 to 3 weeks process are two Really quickly start to understand and deliver value from your data. Um, so, iota, who deploys into the customer environment? Data doesn't go anywhere. Um, we would look at a few data sources on a sample of data Onda. We can very rapidly demonstrate how date discovery those catalog e understanding Jupiter data and redundant data can be done. Um, using machine learning, um, on how those problems can be solved. Um, and so what we tend to find is that we can very quickly as I say in a matter of a few weeks, show a customer how they could get toe, um, or Brazilian outcome on. Then how they can scale that up, take it into production on, then really understand their data state Better on build resilience into the enterprise. >>Excellent. There you have it. We'll leave it right there. Guys. Great conversation. Thanks so much for coming on the program. Best of luck to you in the partnership. Be well. >>Thank you, David. Sorry. Thank you. Thank >>you for watching everybody, This is Dave Volonte for the Cuban Are ongoing Siris on data Automation without Tahoe.

>>from around the globe. It's the Cube presenting Cuban Cloud brought to you by Silicon Angle. Welcome back to the live segment of the Cuban cloud. I'm Dave, along with my co host, John Ferrier. John Rose is here. He's the global C T o Dell Technologies. John, great to see you as always, Really appreciate >>it. Absolutely good to know. >>Hey, so we're gonna talk edge, you know, the the edge, it's it's estimated. It's a multi multi trillion dollar opportunity, but it's a highly fragmented, very complex. I mean, it comprises from autonomous vehicles and windmills, even retail stores outer space. And it's so it brings in a lot of really gnarly technical issues that we want to pick your brain on. Let me start with just what to you is edge. How do you think about >>it? Yeah, I think I mean, I've been saying for a while that edges the when you reconstitute Ike back out in the real world. You know, for 10 years we've been sucking it out of the real world, taking it out of factories, you know, nobody has an email server under their desk anymore. On that was because we could put it in data centers and cloud public clouds, and you know that that's been a a good journey. And then we realized, Wait a minute, all the data actually was being created out in the real world. And a lot of the actions that have to come from that data have to happen in real time in the real world. And so we realized we actually had toe reconstitute a nightie capacity out near where the data is created, consumed and utilized. And, you know, that turns out to be smart cities, smart factories. You know, uh, we're dealing with military apparatus. What you're saying, how do you put, you know, edges in tow, warfighting theaters or first responder environments? It's really anywhere that data exists that needs to be processed and understood and acted on. That isn't in a data center. So it's kind of one of these things. Defining edge is easier to find. What it isn't. It's anywhere that you're going to have. I t capacity that isn't aggregated into a public or private cloud data center. That seems to be the answer. So >>follow. Follow that. Follow the data. And so you've got these big issue, of course, is late and see people saying, Well, some applications or some use cases like autonomous vehicles. You have to make the decision locally. Others you can you can send back. And you, Kamal, is there some kind of magic algorithm the technical people used to figure out? You know what, the right approaches? Yeah, >>the good news is math still works and way spent a lot of time thinking about why you build on edge. You know, not all things belong at the edge. Let's just get that out of the way. And so we started thinking about what does belong at the edge, and it turns out there's four things you need. You know, if you have a real time responsiveness in the full closed loop of processing data, you might want to put it in an edge. But then you have to define real time, and real time varies. You know, real time might be one millisecond. It might be 30 milliseconds. It might be 50 milliseconds. It turns out that it's 50 milliseconds. You probably could do that in a co located data center pretty far away from those devices. One millisecond you better be doing it on the device itself. And so so the Leighton see around real time processing matters. And, you know, the other reasons interesting enough to do edge actually don't have to do with real time crossing they have to do with. There's so much data being created at the edge that if you just blow it all the way across the Internet, you'll overwhelm the Internets. We have need toe pre process and post process data and control the flow across the world. The third one is the I T. O T boundary that we all know. That was the I O t. Thing that we were dealing with for a long time. And the fourth, which is the fascinating one, is it's actually a place where you might want to inject your security boundaries, because security tends to be a huge problem and connected things because they're kind of dumb and kind of simple and kind of exposed. And if you protect them on the other end of the Internet, the surface area of protecting is enormous, so there's a big shift basically move security functions to the average. I think Gardner made up a term for called Sassy. You know, it's a pretty enabled edge, but these are the four big ones. We've actually tested that for probably about a year with customers. And it turns out that, you know, seems to hold If it's one of those four things you might want to think about an edge of it isn't it probably doesn't belong in >>it. John. I want to get your thoughts on that point. The security things huge. We talked about that last time at Del Tech World when we did an interview with the Cube. But now look at what's happened. Over the past few months, we've been having a lot of investigative reporting here at Silicon angle on the notion of misinformation, not just fake news. Everyone talks about that with the election, but misinformation as a vulnerability because you have now edge devices that need to be secured. But I can send misinformation to devices. So, you know, faking news could be fake data say, Hey, Tesla, drive off the road or, you know, do this on the other thing. So you gotta have the vulnerabilities looked at and it could be everything. Data is one of them. Leighton. See secure. Is there a chip on the device? Could you share your vision on how you see that being handled? Cause it's a huge >>problem. Yeah, this is this is a big deal because, you know, what you're describing is the fact that if data is everything, the flow of data ultimately turns into the flow of information that knowledge and wisdom and action. And if you pollute the data, if you could compromise it the most rudimentary levels by I don't know, putting bad data into a sensor or tricking the sensor which lots of people can dio or simulating a sensor, you can actually distort things like a I algorithms. You can introduce bias into them and then that's a That's a real problem. The solution to it isn't making the sensors smarter. There's this weird Catch 22 when you sense arise the world, you know you have ah, you know, finite amount of power and budget and the making sensors fatter and more complex is actually the wrong direction. So edges have materialized from that security dimension is an interesting augment to those connected things. And so imagine a world where you know your sensor is creating data and maybe have hundreds or thousands of sensors that air flowing into an edge compute layer and the edge compute layer isn't just aggregating it. It's putting context on it. It's metadata that it's adding to the system saying, Hey, that particular stream of telemetry came from this device, and I'm watching that device and Aiken score it and understand whether it's been compromised or whether it's trustworthy or whether it's a risky device and is that all flows into the metadata world the the overall understanding of not just the data itself, but where did it come from? Is it likely to be trustworthy? Should you score it higher or lower in your neural net to basically manipulate your algorithm? These kind of things were really sophisticated and powerful tools to protect against this kind of injection of false information at the sensor, but you could never do that at a sensor. You have to do it in a place that has more compute capacity and is more able to kind of enriched the data and enhance it. So that's why we think edges are important in that fourth characteristic of they aren't the security system of the sensor itself. But they're the way to make sure that there's integrity in the sense arised world before it reaches the Internet before it reaches the cloud data centers. >>So access to that metadata is access to the metadata is critical, and it's gonna be it's gonna be near real time, if not real time, right? >>Yeah, absolutely. And, you know, the important thing is, Well, I'll tell you this. You know, if you haven't figured this out by looking at cybersecurity issues, you know, compromising from the authoritative metadata is a really good compromise. If you could get that, you can manipulate things that a scale you've never imagined. Well, in this case, if the metadata is actually authoritatively controlled by the edge note the edge note is processing is determining whether or not this is trustworthy or not. Those edge nodes are not $5 parts, their servers, their higher end systems. And you can inject a lot more sophisticated security technology and you can have hardware root of trust. You can have, you know, mawr advanced. PK I in it, you can have a I engines watching the behavior of it, and again, you'd never do that in a sensor. But if you do it at the first step into the overall data pipeline, which is really where the edges materializing, you can do much more sophisticated things to the data. But you can also protect that thing at a level that you'd never be able to do to protect a smart lightbulb. A thermostat in your house? >>Uh, yes. So give us the playbook on how you see the evolution of the this mark. I'll see these air key foundational things, a distributed network and it's a you know I o t trends into industrial i o t vice versa. As a software becomes critical, what is the programming model to build the modern applications is something that I know. You guys talk to Michael Dell about this in the Cuban, everyone, your companies as well as everyone else. Its software define everything these days, right? So what is the software framework? How did people code on this? What's the application aware viewpoint on this? >>Yeah, this is, uh, that's unfortunately it's a very complex area that's got a lot of dimensions to it. Let me let me walk you through a couple of them in terms of what is the software framework for for For the edge. The first is that we have to separate edge platforms from the actual edge workload today too many of the edge dialogues or this amorphous blob of code running on an appliance. We call that an edge, and the reality is that thing is actually doing two things. It's, ah, platform of compute out in the real world and it's some kind of extension of the cloud data pipeline of the cloud Operating model. Instance, he added, A software probably is containerized code sitting on that edge platform. Our first principle about the software world is we have to separate those two things. You do not build your cloud your edge platform co mingled with the thing that runs on it. That's like building your app into the OS. That's just dumb user space. Colonel, you keep those two things separate. We have Thio start to enforce that discipline in the software model at the edges. The first principle, the second is we have to recognize that the edges are are probably best implemented in ways that don't require a lot of human intervention. You know, humans air bad when it comes to really complex distributed systems. And so what we're finding is that most of the code being pushed into production benefits from using things like kubernetes or container orchestration or even functional frameworks like, you know, the server list fast type models because those low code architectures generally our interface with via AP, eyes through CCD pipelines without a lot of human touch on it. And it turns out that, you know, those actually worked reasonably well because the edges, when you look at them in production, the code actually doesn't change very often, they kind of do singular things relatively well over a period of time. And if you can make that a fully automated function by basically taking all of the human intervention away from it, and if you can program it through low code interfaces or through automated interfaces, you take a lot of the risk out of the human intervention piece of this type environment. We all know that you know most of the errors and conditions that break things are not because the technology fails it because it's because of human being touches it. So in the software paradigm, we're big fans of more modern software paradigms that have a lot less touch from human beings and a lot more automation being applied to the edge. The last thing I'll leave you with, though, is we do have a problem with some of the edge software architectures today because what happened early in the i o t world is people invented kind of new edge software platforms. And we were involved in these, you know, edge X foundry, mobile edge acts, a crane. Oh, and those were very important because they gave you a set of functions and capabilities of the edge that you kind of needed in the early days. Our long term vision, though for edge software, is that it really needs to be the same code base that we're using in data centers and public clouds. It needs to be the same cloud stack the same orchestration level, the same automation level, because what you're really doing at the edge is not something that spoke. You're taking a piece of your data pipeline and you're pushing it to the edge and the other pieces are living in private data centers and public clouds, and you like they all operate under the same framework. So we're big believers in, like pushing kubernetes orchestration all the way to the edge, pushing the same fast layer all the way to the edge. And don't create a bespoke world of the edge making an extension of the multi cloud software framework >>even though the underlying the underlying hardware might change the microprocessor, GPU might change GP or whatever it is. Uh, >>by the way, that that's a really good reason to use these modern framework because the energies compute where it's not always next 86 underneath it, programming down at the OS level and traditional languages has an awful lot of hardware dependencies. We need to separate that because we're gonna have a lot of arm. We're gonna have a lot of accelerators a lot of deep. Use a lot of other stuff out there. And so the software has to be modern and able to support header genius computer, which a lot of these new frameworks do quite well, John. >>Thanks. Thanks so much for for coming on, Really? Spending some time with us and you always a great guest to really appreciate it. >>Going to be a great stuff >>of a technical edge. Ongoing room. Dave, this is gonna be a great topic. It's a clubhouse room for us. Well, technical edge section every time. Really. Thanks >>again, Jon. Jon Rose. Okay, so now we're gonna We're gonna move to the second part of our of our technical edge discussion. Chris Wolf is here. He leads the advanced architecture group at VM Ware. And that really means So Chris's looks >>at I >>think it's three years out is kind of his time. Arise. And so, you know, advanced architecture, Er and yeah. So really excited to have you here. Chris, can you hear us? >>Okay. Uh, >>can Great. Right. Great to see you again. >>Great >>to see you. Thanks for coming on. Really appreciate it. >>So >>we're talking about the edge you're talking about the things that you see way set it up is a multi trillion dollar opportunity. It's It's defined all over the place. Uh, Joey joke. It's Could be a windmill. You know, it could be a retail store. It could be something in outer space. Its's It's it's, you know, whatever is defined A factory, a military installation, etcetera. How do you look at the edge. And And how do you think about the technical evolution? >>Yeah, I think it is. It was interesting listening to John, and I would say we're very well aligned there. You know, we also would see the edge is really the place where data is created, processed and are consumed. And I think what's interesting here is that you have a number off challenges in that edges are different. So, like John was talking about kubernetes. And there's there's multiple different kubernetes open source projects that are trying to address thes different edge use cases, whether it's K three s or Cubbage or open your it or super edge. And I mean the list goes on and on, and the reason that you see this conflict of projects is multiple reasons. You have a platform that's not really designed to supported computing, which kubernetes is designed for data center infrastructure. Uh, first on then you have these different environments where you have some edge sites that have connectivity to the cloud, and you have some websites that just simply don't write whether it's an oil rig or a cruise ship. You have all these different use cases, so What we're seeing is you can't just say this is our edge platform and, you know, go consume it because it won't work. You actually have to have multiple flavors of your edge platform and decide. You know what? You should time first. From a market perspective, I >>was gonna ask you great to have you on. We've had many chest on the Cube during when we actually would go to events and be on the credit. But we appreciate you coming into our virtual editorial event will be doing more of these things is our software will be put in the work to do kind of a clubhouse model. We get these talks going and make them really valuable. But this one is important because one of the things that's come up all day and we kind of introduced earlier to come back every time is the standardization openness of how open source is going to extend out this this interoperability kind of vibe. And then the second theme is and we were kind of like the U S side stack come throwback to the old days. Uh, talk about Cooper days is that next layer, but then also what is going to be the programming model for modern applications? Okay, with the edge being obviously a key part of it. What's your take on that vision? Because that's a complex area certain a lot of a lot of software to be written, still to come, some stuff that need to be written today as well. So what's your view on How do you programs on the edge? >>Yeah, it's a It's a great question, John and I would say, with Cove it We have seen some examples of organizations that have been successful when they had already built an edge for the expectation of change. So when you have a truly software to find edge, you can make some of these rapid pivots quite quickly, you know. Example was Vanderbilt University had to put 1000 hospital beds in a parking garage, and they needed dynamic network and security to be able to accommodate that. You know, we had a lab testing company that had to roll out 400 testing sites in a matter of weeks. So when you can start tohave first and foremost, think about the edge as being our edge. Agility is being defined as you know, what is the speed of software? How quickly can I push updates? How quickly can I transform my application posture or my security posture in lieu of these types of events is super important. Now, if then if we walk that back, you know, to your point on open source, you know, we see open source is really, uh you know, the key enabler for driving edge innovation and driving in I S V ecosystem around that edge Innovation. You know, we mentioned kubernetes, but there's other really important projects that we're already seeing strong traction in the edge. You know, projects such as edge X foundry is seeing significant growth in China. That is, the core ejects foundry was about giving you ah, pass for some of your I o T aps and services. Another one that's quite interesting is the open source faith project in the Linux Foundation. And fate is really addressing a melody edge through a Federated M L model, which we think is the going to be the long term dominant model for localized machine learning training as we continue to see massive scale out to these edge sites, >>right? So I wonder if you could You could pick up on that. I mean, in in thinking about ai influencing at the edge. Um, how do you see that? That evolving? Uh, maybe You know what, Z? Maybe you could We could double click on the architecture that you guys see. Uh, progressing. >>Yeah, Yeah. Right now we're doing some really good work. A zai mentioned with the Fate project. We're one of the key contributors to the project. Today. We see that you need to expand the breath of contributors to these types of projects. For starters, uh, some of these, what we've seen is sometimes the early momentum starts in China because there is a lot of innovation associated with the edge there, and now it starts to be pulled a bit further West. So when you look at Federated Learning, we do believe that the emergence of five g I's not doesn't really help you to centralized data. It really creates the more opportunity to create, put more data and more places. So that's, you know, that's the first challenge that you have. But then when you look at Federated learning in general, I'd say there's two challenges that we still have to overcome organizations that have very sophisticated data. Science practices are really well versed here, and I'd say they're at the forefront of some of these innovations. But that's 1% of enterprises today. We have to start looking at about solutions for the 99% of enterprises. And I'd say even VM Ware partners such as Microsoft Azure Cognitive Services as an example. They've been addressing ML for the 99%. I say That's a That's a positive development. When you look in the open source community, it's one thing to build a platform, right? Look, we love to talk about platforms. That's the easy part. But it's the APS that run on that platform in the services that run on that platform that drive adoption. So the work that we're incubating in the VM, or CTO office is not just about building platforms, but it's about building the applications that are needed by say that 99% of enterprises to drive that adoption. >>So if you if you carry that through that, I infer from that Chris that the developers are ultimately gonna kind of win the edge or define the edge Um, How do you see that From their >>perspective? Yeah, >>I think its way. I like to look at this. I like to call a pragmatic Dev ops where the winning formula is actually giving the developer the core services that they need using the native tools and the native AP eyes that they prefer and that is predominantly open source. It would some cloud services as they start to come to the edge as well. But then, beyond that, there's no reason that I t operations can't have the tools that they prefer to use. A swell. So we see this coming together of two worlds where I t operations has to think even for differently about edge computing, where it's not enough to assume that I t has full control of all of these different devices and sensors and things that exists at the edge. It doesn't happen. Often times it's the lines of business that air directly. Deploying these types of infrastructure solutions or application services is a better phrase and connecting them to the networks at the edge. So what does this mean From a nightie operations perspective? We need tohave, dynamic discovery capabilities and more policy and automation that can allow the developers to have the velocity they want but still have that consistency of security, agility, networking and all of the other hard stuff that somebody has to solve. And you can have the best of both worlds here. >>So if Amazon turned the data center into an A P I and then the traditional, you know, vendors sort of caught up or catching up and trying to do in the same premise is the edge one big happy I Is it coming from the cloud? Is it coming from the on Prem World? How do you see that evolving? >>Yes, that's the question and races on. Yeah, but it doesn't. It doesn't have to be exclusive in one way or another. The VM Ware perspective is that, you know, we can have a consistent platform for open source, a consistent platform for cloud services. And I think the key here is this. If you look at the partnerships we've been driving, you know, we've on boarded Amazon rds onto our platform. We announced the tech preview of Azure Arc sequel database as a service on our platform as well. In addition, toe everything we're doing with open source. So the way that we're looking at this is you don't wanna make a bet on an edge appliance with one cloud provider. Because what happens if you have a business partner that says I am a line to Google or on the line to AWS? So I want to use this open source. Our philosophy is to virtualized the edge so that software can dictate, you know, organizations velocity at the end of the day. >>Yeah. So, Chris, you come on, you're you're an analyst at Gartner. You know us. Everything is a zero sum game, but it's but But life is not like that, right? I mean, there's so much of an incremental opportunity, especially at the edge. I mean, the numbers are mind boggling when when you look at it, >>I I agree wholeheartedly. And I think you're seeing a maturity in the vendor landscape to where we know we can't solve all the problems ourselves and nobody can. So we have to partner, and we have to to your earlier point on a P. I s. We have to build external interfaces in tow, our platforms to make it very easy for customers have choice around ice vendors, partners and so on. >>So, Chris, I gotta ask you since you run the advanced technology group in charge of what's going on there, will there be a ship and focus on mawr ships at the edge with that girl singer going over to intel? Um, good to see Oh, shit, so to speak. Um, all kidding aside, but, you know, patch leaving big news around bm where I saw some of your tweets and you laid out there was a nice tribute, pat, but that's gonna be cool. That's gonna be a didn't tell. Maybe it's more more advanced stuff there. >>Yeah, I think >>for people pats staying on the VMRO board and to me it's it's really think about it. I mean, Pat was part of the team that brought us the X 86 right and to come back to Intel as the CEO. It's really the perfect book end to his career. So we're really sad to see him go. Can't blame him. Of course it's it's a It's a nice chapter for Pat, so totally understand that. And we prior to pack going to Intel, we announced major partnerships within video last year, where we've been doing a lot of work with >>arm. So >>thio us again. We see all of this is opportunity, and a lot of the advanced development projects were running right now in the CTO office is about expanding that ecosystem in terms of how vendors can participate, whether you're running an application on arm, whether it's running on X 86 or whatever, it's running on what comes next, including a variety of hardware accelerators. >>So is it really? Is that really irrelevant to you? I mean, you heard John Rose talk about that because it's all containerized is it is. It is a technologies. Is it truly irrelevant? What processor is underneath? And what underlying hardware architectures there are? >>No, it's not. You know it's funny, right? Because we always want to say these things like, Well, it's just a commodity, but it's not. You didn't then be asking the hardware vendors Thio pack up their balls and go home because there's just nothing nothing left to do, and we're seeing actually quite the opposite where there's this emergence and variety of so many hardware accelerators. So even from an innovation perspective, for us. We're looking at ways to increase the velocity by which organizations can take advantage of these different specialized hardware components, because that's that's going to continue to be a race. But the real key is to make it seamless that an application could take advantage of these benefits without having to go out and buy all of this different hardware on a per application basis. >>But if you do make bets, you can optimize for that architecture, true or not, I mean, our estimate is that the you know the number of wafer is coming out of arm based, you know, platforms is 10 x x 86. And so it appears that, you know, from a cost standpoint, that's that's got some real hard decisions to make. Or maybe maybe they're easy decisions, I don't know. But so you have to make bets, Do you not as a technologist and try to optimize for one of those architectures, even though you have to hedge those bets? >>Yeah, >>we do. It really boils down to use cases and seeing, you know, what do you need for a particular use case like, you know, you mentioned arm, you know, There's a lot of arm out at the edge and on smaller form factor devices. Not so much in the traditional enterprise data center today. So our bets and a lot of the focus there has been on those types of devices. And again, it's it's really the It's about timing, right? The customer demand versus when we need to make a particular move from an innovation >>perspective. It's my final question for you as we wrap up our day here with Great Cuban Cloud Day. What is the most important stories in in the cloud tech world, edge and or cloud? And you think people should be paying attention to that will matter most of them over the next few years. >>Wow, that's a huge question. How much time do we have? Not not enough. A >>architect. Architectural things. They gotta focus on a lot of people looking at this cove it saying I got to come out with a growth strategy obvious and clear, obvious things to see Cloud >>Yeah, yeah, let me let me break it down this way. I think the most important thing that people have to focus on >>is deciding How >>do they when they build architectures. What does the reliance on cloud services Native Cloud Services so far more proprietary services versus open source technologies such as kubernetes and the SV ecosystem around kubernetes. You know, one is an investment in flexibility and control, lots of management and for your intellectual property, right where Maybe I'm building this application in the cloud today. But tomorrow I have to run it out at the edge. Or I do an acquisition that I just wasn't expecting, or I just simply don't know. Sure way. Sure hope that cova doesn't come around again or something like it, right as we get past this and navigate this today. But architect ng for the expectation of change is really important and having flexibility of round your intellectual property, including flexibility to be able to deploy and run on different clouds, especially as you build up your different partnerships. That's really key. So building a discipline to say you know what >>this is >>database as a service, it's never going to define who I am is a business. It's something I have to do is an I T organization. I'm consuming that from the cloud This part of the application sacked that defines who I am is a business. My active team is building this with kubernetes. And I'm gonna maintain more flexibility around that intellectual property. The strategic discipline to operate this way among many of >>enterprise customers >>just hasn't gotten there yet. But I think that's going to be a key inflection point as we start to see. You know, these hybrid architectures continue to mature. >>Hey, Chris. Great stuff, man. Really appreciate you coming on the cube and participate in the Cuban cloud. Thank you for your perspectives. >>Great. Thank you very much. Always a pleasure >>to see you. >>Thank you, everybody for watching this ends the Cuban Cloud Day. Volonte and John Furry. All these sessions gonna be available on demand. All the write ups will hit silicon angle calm. So check that out. We'll have links to this site up there and really appreciate you know, you attending our our first virtual editorial >>event again? >>There's day Volonte for John Ferrier in the entire Cube and Cuba and Cloud Team >>Q 3 65. Thanks >>for watching. Mhm

>>from around the globe. It's the Cube presenting Cuban cloud brought to you by Silicon angle. Hello. We wanna welcome back to the Cuban cloud where we're talking to CEOs, C. E. O s, chief technology officers and investors. On the future of Cloud with me is Dave Humphrey, who is the managing director and co head of Private Equity North America at Bain Capital. They've welcome to the Cube. First time, I think. >>First time. Yeah, David, thanks very much for having so >>let's get right into it. As an investor, how are you thinking about the evolution of cloud? When you look back at the last decade, you know it's not gonna be the same, uh, in this coming decade, you know, Thio ironic 2020 is has thrown us into, you know, the accelerated digital transformation and cloud. But how do you look at the evolution of cloud from an investment perspective? What's your thesis? >>That's a great question, David. You know, for us, we're focused on investing in technology and really across the economy. And I'd say the cloud is the overarching trends and dynamic in the technology markets. And really, for two reasons, one is a major shift. Of course, that's going on. But the second and frankly, even more interesting one to us is all the growth that the cloud is creating in the technology marketplace. You know the ship. It has been well covered. But five years ago in 2015, by our analysis, two thirds of all computing workloads were done on premises and Onley. Five years later, that's that's flipped. So two thirds of all computing workloads now done done in the cloud. And, of course, that shift. There's a lot of ramifications as an investor. But even more interesting dust is the growth in technology and the usage of technology that the cloud is creating. So over that same period of time, the total number of computing workloads run has increased by 2.6 times just a five year period time, which is really a a dramatic thing. And it makes sense when you think about all the new software applications that could be created, all the data that could be used by new users and new segments, and the real time inside that could be gleaned from that is that growth that really were focused on investing behind a Z. Investors in technology. You >>know, it's interesting you just took share those numbers and you hear a lot of numbers. I I actually think you you know, you your even being conservative. You know, Ginny Rometty used to talk about 80% of workloads or are still on Prem. Andy Jassy it reinvent said that 96% of spending is still on premises. So that was kind of an interesting stat. And I guess the other thing that I would, I would note is it's not just a share shift. It is. It's not just, you know, the cloud eating away it on Prem. We've clearly seen that, but there's also incremental opportunity as well. If you look at snowflake, for example, and adding value on top of, you know across multiple clouds and creating new markets, so there's there's that, you know, double that 12 punch of stealing share from on Prem but also incremental growth, which is probably accelerated as a result of this, you know, compressed digital transformation. So when you look at the Big Three cloud players, I mean roughly speaking, they probably account for $80 billion in total revenue which I guess is a small portion of the overall I t. Market. So it has a a long way to go. But But what's the best way to get good returns from an investment standpoint without getting clobbered by their tendency to sometimes coop some of the best ideas and put them on their primary services? >>Yeah, absolutely. Well, you know, for us, uh, it really comes back to the same fundamental principles we look for in any investment, which is finding a business that solves a really important problem for its customers and does so in a way that's really advantaged vs competition can and do something that other competitors just can't do, whether those be the hyper scale is that you're describing or, you know, other specialized and focused competitors, and then finding a way that we can partner with those companies to help them to accelerate their growth. So surely the growth of the likes of AWS and Microsoft and Google, as you're describing, has been a profound competitive shift, along with the cloud shift that we've all talked about. And those companies, of course, can offer and do things that you past purveyors of computing couldn't. But fundamentally, they're selling and infrastructure layer, and there is room for all sorts of new competitors and new applications that can do something better than anybody else can. So any company that we're looking at, we're asking ourselves the question. Why are they the best ones to do what they're doing? How could they solve the most problem for their customers and do that in a way that's that's Brazilian and we see lots of those opportunities, >>and I wanna I wanna pick your brain about the Nutanix investment. But before we get there, I wonder if you could just talk about Bain Capital in their their history of investment in both cloud and infrastructure software and and how do those investments? How would they performed? And how do they inform your current thesis? >>Yeah, absolutely. So being Capital was started in in the mid eighties, 1984 actually has a spin out of being a company consulting, and the basic premise was that if we're good at advising and supporting businesses, we should partner with them and invest behind them, and if they do well, we'll do well. And, as I said, focusing on these businesses but do something really valuable for their customers in a riel advantaged way, with some discontinuous growth opportunity that's led us to grow a lot. You know, we started out actually in the venture business and grew into the private equity business. But now we invest across all life stages of companies and all over the world. So we're $105 billion in assets that we managed across 10 lines of business on were truly global. So I think we have about 470 investment professionals and 210 of those at this point are located outside the U. S. One of the really interesting things for us in investing in technology broadly and in infrastructure in the cloud more specifically is that we're able to do that all over the world. And we're able to do that across all the different life stages of companies. We have a thriving venture capital business that really we've been in since the origins of being capital has invested across countless cloud and security and infrastructure businesses taken successful companies public like like solar wind sold companies to strategic and grown businesses. You know, in really thriving ways we have a, um, growth mid market growth technology business that we launched last year. Called their Technology Opportunities Fund. They've made a really interesting cloud based investment in a company called the Cloud Gurus Cloud Guru Excuse me? That trains the next generation of I t professionals to be successful in the club on then, of course, in our private equity business, you know where I spend my time. We are highly focused on technology sector and the the impacts of the cloud in that sector. Broadly, we've invested in many infrastructure businesses, scale businesses like BMC software and Rockets software security businesses like blue coat systems and semantic. And of course, for those big businesses they've got both on premises solutions. They've got cloud solutions, and often we're focused on helping them continue to grow and innovate and take their solutions to the cloud. And then, uh, that's taking us to our most recent investment in Nutanix that we're very excited about it. We think it's truly a growth business in a large market that has an opportunity to capitalize on these trends we're talking about. >>I wonder if you could comment on some of the changes that have occurred. You guys have been in the private equity business for a long time. And if you look at what you know, kind of the early days of private equity, it was all you know, even, uh, suck as much cash out of the company is possible. You know, whatever's left over will figure out what to do with it. It it seems like you know, investors have realized Wow, we can actually, if we put a little investment in and do some engineering and some go to market, we can actually get better multiples. And so you've got the kind of rule of 30 35 40 where he made a plus. Growth is kind of the metric. How do you think about that? And look at that evolution. >>Yeah, you know, it's interesting because in many ways, being capital was started as the antithesis to what to what you're describing. So we started again, as as with a strategic lens and a focus on growth and a focus on if we got the long term and the lasting impact of our business is right, that the returns would would follow. And you're right that the market has evolved in that way. I mean, I think some of the some of the dynamics that we've seen has been certainly growth of the private equity business. It's It's become a much larger piece of the, you know, the capital markets than it was certainly 10 years ago in 20 years ago. Also, with that growth comes the globalization, that business all over the world and the specialization. So you certainly see technology focused firms and technology focused funds in a way that you didn't see, uh, 10 years ago, or certainly 20 years ago actually being capital. Interestingly enough, we had a technology focused fund in 1989 called called Being Information Partners. So we've been focused on the sector for a very long time. But you certainly see ah, lot more technology investors, uh, than than you did you know 10 or 20 years ago? >>How are you thinking about valuations? Thes days? I mean, that is good. It's good to be in tech. It's even better to be in the cloud. You know, Service officer, software Cloud. You know if if if you're looking at, you know some of the companies, especially the work from home pivot. But a lot of that appears to be. You know, many people believe it's going to be permanent. How are you feeling about the both public market and private market valuations in that dynamic? >>Yeah, well, you know, it's it's amazing, right? I don't think any of us in March, when the covert crisis was just emerging, would have anticipated that that come November, the markets, and certainly the technology markets would be even more robust and stronger than than they were say in January February. But I think it's a testament to the resilience of the technology on that just how intricate and intertwined technology has become with our daily lives and and how much companies depend on its use. And frankly, it's been the cove environments that an accelerant for many of the ways in which we depend on technology. So witnessed this interview, of course, through through the through the cloud, and you're seeing the way that we operate our business day to day the way cos they're accessing their data and information. It's only further accelerated the need for technology and the importance of that technology to how how businesses operate. So I think you're seeing that reflected in the market values out there. But, you know, frost work. We're focused on businesses that still have that catalytic opportunity ahead that can more than compensate for for the price of entry. >>So let's talk about this massive investment. You guys made a Nutanix 750 million, I guess, is a small piece of your 105 billion, but still a massive investment. How did that opportunity come to you? What was your thinking? You know, behind that that investment and what are you looking for in terms of the go forward plan and growth plan for 2021 really importantly, beyond. >>Yeah, absolutely. Well, we're thrilled to be partnered with and invested in Nutanix. We think is a terrific company. And, you know, our most recent technology investment and private equity business. It really came about through a proactive efforts that we had in in the spring. Um, you know, we've got a team focused on the technology sector, focused across infrastructure and applications, and, uh, internet and digital media businesses and financial technology. And, uh, you know, through those efforts, we were looking for businesses. Um, that we felt had faced some dislocation and their market values associated with the Koven environment that we're facing but that we thought were really attractive. Business is well positioned, had leading solutions and had substantial and discontinuous growth opportunities. And as we looked through that effort, we really felt that Nutanix stood out just as a core leader and in fact, really the innovator and the inventor of the market in which it competes with a substantial market share in position solving a really important problem for its customers with a big growth opportunity ahead. But, um, the stock price had had come down because the business has been undergoing ah transition, and we didn't think that that was fully understood by by the market. And so way saw an opportunity Thio partner with Nutanix to invest money into the business to help to fund its transition and its growth. Yeah, and Thio to be partners along for all the value the business will will continue to create. We think it's a terrific company, and we're excited to be to be invested >>Well, you and I have talked about this that transition, you know, from a traditional, you know, license model to one That's Anania recurring revenue model, which many companies have gone through. You know, Adobe certainly has done it. Tableau successfully did it. Splunk is kind of in the middle of that transition right now and maybe not well understood. You've got companies like like Data Dog that and snowflake again to doing consumption based pricing. So there's a lot of confusion in the marketplace, and I wonder if you could talk about that transition and why it It was attractive to you to actually, you know, place that bet now? >>Yeah, absolutely. And as you say, a number of companies at this point have been through various forms of this shift, from from selling their technology upfront to selling it over time on, we find that the model of selling the technology over time eyes one that could be powerful. It could be aligning for customers as well as for, uh, vendor of the software solutions. And in Nutanix in particular again, we saw all the ingredients that we think make this an opportunity for for the business again, market leading technology that customers love. That is solving really important problem. The technology, because Nutanix had been grown and bootstrapped under the leadership of, uh, you know of zeros when it was built and founded, had been selling its software together with an appliance, you know, often in a, um, upfront sale Andi has been undergoing under their own initiative transition from selling that software with an appliance to a software based model to one that s'more rattle over time. And, you know, we thought that there was the opportunity to continue that to continue that transition and by doing that, to be able to offer mawr growth and mawr innovation that we could bring to our customers Thio continue to fund the shift. So something that frankly was well underway before we invested. Um, you know, as a za business makes this transition from collecting upfront Thio, you know, thio more evenly. Over time, you know, we saw a potentially use for our capital to help to fund that growth. And we're just focused on being a good partner toe help the company keep investing in abating, as as it contains to do that. >>I was talking to somebody other day, David. I told him I was interviewing you, and I was mentioning the Nutanix investment. I said, I'm definitely gonna cover that as part of this. You know, Cuban Cloud program. And they said Hit Nutanix. That's not cloud. I'm like, Wait a minute, What's cloud? So we heard Andy Jassy reinvent talking a lot about hybrid Antonio Neary, right after HP made its earnings last earnings announcement he came on on, said that well, we heard the big Cloud player talk about hybrid, and so the definition is changing. But so how are you looking at the market? Uh, certainly. There's this hyper converged infrastructure, but there's also this software play. There's this cloud play. Help us squint through how you see that >>absolutely so Nutanix, as you alluded to, pioneered the market for hyper converged infrastructure for bringing computing storage networking together. Uh, you know, often in private cloud environments in a way that was really powerful for for customers. Make, of course, continue to be the leaders in that marketplace. But they've continued to innovate and invest in ways that can solve problems for customers and related problems across the hybrid cloud. So combining both the public cloud with, you know, with that private cloud and across multiple public clouds with things like clusters and lots of innovation that business is doing in partnership with the likes of, um, Amazon and Microsoft and others. And so, yeah, we think that New Chance has a powerful role to play in that hyper cloud world in a multi cloud world. And we're excited toe back on them. >>Well, I think to what maybe people don't understand is that not only is Nutanix, you know, compatible with AWS and compatible with azure and G C. P. But it's actually kind of create a nabs traction layer across those those clouds. Now there's two sides of that debate. Some some will say, Well, that that that has Leighton see issues or yes, it reduces complexity. But at the same time, it doesn't give you that fine grained access. That's kind of the A W s narrative customers, you know, want simplicity. And we're seeing, you know, the uptake across clouds. I have a multipart question for you, Dave. So obviously being very strong and strategy I'm curious is toe how how much you get involved in the operational details. I mean, obviously 750 million u got a state there, but what are the 2 to 2 or three major strategic considerations for not just even just Nutanix but cloud and software infrastructure companies. And and how much focus do you put on the operational and one of the priorities There? >>Absolutely. Well, you know, we pride ourselves in being good partners to our businesses and in helping them to grow, not just with our capital, which I think is, of course, important, but also, you know, with our sweat equity and our and our human capital in our partnership that we could do that in lots of ways is fundamentally about, um, you know, supporting our businesses, however, is needed to help them thio grow. We've been investing in the technology sector, as I described for over over 30 years. And so we've built up a set of capabilities around things like helping toe partner with the sales force of our company is helping them toe, you know, think about the you know, the ways in which they they allocate their, uh their research and development and their in their innovation raised in which they, you know, continue Thio do acquisitions toe. You know, further that pipeline, we support our businesses in lots of ways, but you know we're not engineers were not. Developers, of course, were looking for businesses that are fundamentally great. They've got great technology. They solve problems for customers in a way, you know, that we could never replicate. That's what's the amazing but a business like Nutanix and just over a 10 year period of time, it literally has customer satisfaction levels that we haven't seen from any other. Infrastructures offer company that we've had the, you know, the pleasure of diligence ing over the last several years. So what we're focused on is how can we take those great products and offerings that Nutanix has and continue to support them through the further growth and expansion in areas like, um, you know, the further salesforce investment Thio expand into these new areas like clusters that we were talking about and thinking about, you know, things that they could do toe further expand the strategic hold. Um, And so, you know, we have, ah, large team of being capital. A zai mentioned 260 investment professionals in a private equity business alone. About a third of those are just available to our companies to help support them. Uh, you know, with various initiatives and efforts after after we invest. And we'll certainly, of course, make all of those available to new taxes. Well, somebody >>was asking me the other day, You know, what's hyper converged infrastructure? How did that come about? I was explaining what, Back in the day you had. You buy some servers and some storage and you have a network and you sort of have different teams and you put applicant, You figure out all out and put the applications on top, you know, test it, make sure it all works. And then and then the guys at V. C and VM Ware and Cisco and the M. C. They got together and said, Okay, we're gonna bolt together a bunch of different components and, you know, pre tested. Here you go. Here's a Here's a skew. And then what Nutanix did was actually really transformational and saying, Okay, look, we do this through software on DSO. And now that was what, Late, late two thousands. Now we're sort of entering this new era, this next generation of cloud cross clouds. So I wonder how you think about, you know, based on what you were just talking about the whole notion of M and A versus organic. There's a lot of organic development that needs to be done. But perhaps you could you could buy in or in organically through emanate toe, actually get there faster. How do you think about that balance? >>Look, I I think that that was an articulate, by the way explanation of I think that the origins of hyper converged infrastructure. So I enjoyed that very much. But, you know, I think that with any of our businesses and with Nutanix, we're of course, looking at where we trying to get to in several years and one of the best ways to support the business to get there, you know? Of course, they'll, um you know, primarily that will be through or continued organic investment in the company and all the innovation in the product. Um, that they've been doing will the company contemplate acquisitions toe further achieve the development goals and the objectives for solving pain points for customers to get, you know, to the strategic places they're trying to get to, of course. But you know, it all is a part of the package of of What's it a good fit company and its growth object. >>I mean, with the size of your portfolio, I mean your full stack investor, I would say, Is there any part of the so called tech stack that you won't touch that you would actually, you know, not not walk, but run away from, >>uh well, you know, I wouldn't say that we're running away from, you know, anything but the questions that we're asking ourselves. Our is the technology that we're investing in durable, ISAT advantaged and does have a growing role in the world. And, you know, if if we think that those things are true are absolutely, um, thrilled toe invest behind those things. You know, if if there are things that we feel like you, that's that's not the case, um, you know, then then we would tend toe to shy away from those investments. We've certainly found opportunities and businesses that people perceived as one. But you know, we believe to be another >>Well, so let me ask you specifically about about Nutanix. I mean, clearly, they achieved escape velocity. One of the few companies actually from last decade. It was Nutanix pure, not a whole lot of others. That actually, you know, were ableto maintain independence as a as a public company. What do you see is their durability. Uh, they're they're they're in their moat. If you if you will. >>Yeah, absolutely. Well, clearly, we think that it's a very durable and very advantage business. You know, that's that's the investment. Look, we think that Nutanix has been able to offer the best hyper converged infrastructure product on the market bar None. Um, one that has got the best ease of use Eyes is the most nimble and flexible for for customers. And you just see that, you know, recently and customer feedback And also that plays across very heterogeneous architectures in a way that, you know, it's really, really powerful because of that. You know, we think that their best position to be able to leverage that technology as they have been, uh, to continue to play across both public and private hybrid cloud environments. And so we're excited toe to back them and and that journey it really starts from solving and acute customer pain point, you know, better than anybody else can. And, you know, we're looking to to back them toe continue to expand that vision. >>Yeah, well, I've talked to a lot of Nutanix customers over the years, and that is the fundamental value. Proposition is it's really simple, very high, you know, customer satisfaction. So that makes a lot of sense. Well, Dave, thanks very much for coming on the Cube and participating in the Cuban cloud. Really? Appreciate your perspectives. Wish you best of luck. And hopefully we could do this again in the future. Maybe face to face >>now, face to face, maybe something even know. Dave, I really appreciate it's been a pleasure and good luck with with the rest of your interviews. >>All right. Thank you. We keep it right. Everybody from or Cuban Cloud, this is Dave Volonte. We'll be right back.

>>from around the globe. It's the Cube presenting Cuban cloud brought to you by silicon angle. >>We continue >>with Cuban Cloud. We're here with Milan Thompson Bukovec, who's the vice president? Block and object storage at A W s, which comprise comprises elastic block storage, AWS s three and Amazon Glacier. Milan. Great to see you again. Thanks so much for coming on the program. >>Nice to be here. Thanks for having me, David. >>You're very welcome it So here we are. We're unpacking the future of cloud. And we'd love to get your perspectives on how customers should think about the future of infrastructure, things like applying machine intelligence to their data. But just to set the stage when we look back at the history of storage in the Cloud is obviously started with us three. And then a couple years later was introduced CBS for block storage. And those are the most well known services in the portfolio. But there's there's Mawr, this cold storage and new capabilities that you announced recently. It reinvent around, you know, super duper block storage and in tearing is another example. But it looks like AWS is really starting to accelerate and pick up the pace of customer >>options in >>storage. So my first question is, how should we think about this expanding portfolio? >>Well, I think you have to go all the way back to what customers air trying to do with their data. Dave, The path to innovation is paved by data. If you don't have data, you don't have machine learning. You don't have the next generation of analytics applications. That helps you chart a path forward into a world that seems to be changing every week. And so in orderto have that insight in orderto have that predictive forecasting that every company needs, regardless of what industry that you're in today. It all starts from data, and I think the key shift that I've seen is how customers are thinking about that data about being instantly usable, whereas in the past it might have been a backup. Now it's part of a data lake, and if you could bring that data into a data lake, you can have not just analytics or machine learning or auditing applications. It's really what does your application do for your business, and how can it take advantage of that vast amount of shared data set in your business. Awesome. >>So thank you. So I wanna I wanna make sure we're hitting on the big trends that you're seeing in the market. That kind of informing your strategy around the portfolio and what you're seeing with customers Instant usability. You you bring in machine learning into the equation. I think, um, people have really started to understand the benefits of of of cloud storage as a service on the pay paid by the drink and that whole whole model, obviously co vid has accelerated that cloud migration has accelerated. Anything else we're missing there. What are the other big trends that you see if any? >>Well, Dave, you did a good job of capturing a lot of the drivers. The one thing I would say that just sits underneath All of it is the massive growth of digital data year over year I. D. C. Says digital data is growing at a rate of 40% year over year, and that has been true for a while. And it's not going to stop. It's gonna keep on growing because the sources of that data acquisition keeps on expanding and whether it's coyote devices whether it is content created by users. That data is going to grow, and everything you're talking about depends on the ability to not just capture it and store it. But as you say, use it well, >>you know, and we talk about data growth a lot, and sometimes it becomes bromide. But I think the interesting thing that I've observed over the last a couple of decades really is that the growth is nonlinear on. It's really the curve is starting. Thio used to shape exponentially. You guys always talk about that flywheel. Effect it. It's really hard to believe, You know, people say trees don't grow to the moon. It seems like data does. >>It does. And what's interesting about working in the world of AWS storage Dave is that it's counterintuitive. But our goal without data growth is to make it cost effective. And so year over year, how could we make it cheaper and cheaper? Just have customers store more and more data so they can use it. But it's also to think about the definition of usage. And what kind of data is that? Eyes being tapped by businesses for their insights and make that easier than it's ever been before. Let me ask >>you a follow up question on that my life could I get asked this a lot? Or guy here comments a lot that yes, A W s continuously and rigorously reduces pricing. But it's just >>kind of >>following the natural curve of Moore's law or, you know, whatever. How >>do you >>respond to that? And there are other factors involved. Obviously, labor is another cost reducing factor. But what's the trend line say, >>Well, cost efficiencies in our DNA, Dave. We come to work every day and aws across all of our services, and we ask ourselves, How can we lower our costs and be able to pass that along to customers? As you say, there are many different aspects to cost. There's the cost of the storage itself is the cost of the data center. And that's really what we've seen impact a lot of customers that were slower or just getting started with removed. The cloud is they entered 2020 and then they found out exactly how expensive that data center was to maintain because they had to put in safety equipment and they had to do all the things that you have to do in a pandemic in a data center. And so sometimes that cost is a little bit hidden or won't show up until you really don't need to have it land. But the cost of managing that explosive growth of data is very riel. And when we're thinking about cost, we're thinking about cost in terms of how can I lower it on a per gigabyte per month basis? But we're also building into the product itself adaptive discounts like we have a storage class in S three that's called intelligent hearing. And in intelligence hearing, we have built in monitoring where, if particular objects aren't frequently accessed in a given month, ah, customer will automatically get a discounted price for that storage or a customer Can you know, as of late last year, say that they wanna automatically move storage in the storage class that has been stored, for example, longer than 100 and 80 days and saves 95% by moving it into archive storage, deep archives storage? And so it's not just, you know, relentlessly going after and lowering the cost of storage. It's also building into the products these new ways where we can adaptive Lee discount storage based on what a customer's storage is actually doing >>well. And I would, I would add to our audience, is the other thing that does has done is it's really forced transparency almost the same way that Amazon has done on retail. And now my mom, When we talked last I mentioned that s three was an object store. And of course, that's technically technically correct. But your comment to me was Dave. It's more than that. And you started to talk about sage Maker and AI and bringing in machine learning. And I wonder if you could talk a little bit about the future of how storage is gonna be leveraged in the cloud that's may be different than what we've been, you know, used to in the early days of s three and how your customers should be thinking about infrastructure not as bespoke services but as a suite of capabilities and maybe some of those adjacent adjacent services that you see as most leverage a ble for customers And why? >>Well, to tell this story, dude, we're gonna have to go a little bit back in time all the way back to the 19 nineties. Or before then, when all you had waas, a set of hardware appliance vendors that sold you appliances that you put in your data center and inherently created a data silo because those hardware appliances were hardwired to your application. And so an individual application that was dealing with auditing as an example wouldn't really be able to access the storage for another application. Because you know, the architecture er of that legacy world is tied to a data silo and s tree came out launched in 2000 and six and introduced very low cost storage. That is an object. And I'll tell you, Dave, you know, over the last 10 plus years, we have seen all kinds of data come into us three, whereas before it might have been backups or it might have been images and videos. Now a pretty substantial data set is our parquet files and orc files. Thes files are there for business analytics for more real time type of processing. And that has really been the trend of the future. Is taking these different files putting them in a shared file layer, So any application today or in the future can tap into that data. And so this idea of the shared file layer is a major trend that has been taking off for the last. I would say five or six years, and I expect that to not only keep on going, but to really open up the type of services that you can then do on that shared file layer and whether that sage maker or some of the machine learning introduced by our connect service, it's bringing together the data as a starting point. And then the applications can evolve very rapidly. On top of that, I want to >>ask your opinion about big data architectures. One of our guests, Jim Octagon E. She's amazing, uh, data architect, and she's put forth this notion of a distributed global mesh, and I picked him picking up on some of the comments. Andy Jassy made it at reinvent How essentially Hey, we're bringing a W s to the edge. We see the data center is just another edge. Notes. You're seeing this massive distributed system evolving. You guys have talked about that for a while, and data by its very nature is distributed. But we've had this tendency to put into it monolithic Data Lake or a data warehouse on bits sort of antithetical to that distributed nature. So how >>do >>you see that playing out? What do you see customers in the future doing in terms of their big data architectures? And what does that mean for storage? >>It comes down to the nature of the data and again, the usage and Dave. That's where I see the biggest difference in these modern data architectures from the legacy of 20 years ago is the idea that the data need drives the data storage. So let's taken example of the type of data that you always wanna have on the edge. We have customers today that need tohave storage in the field and whether the field of scientific research or oftentimes, it's content creation in the in the film industry or if it's for military operations. There's a lot of data that needs to be captured and analyzed in the field and for us, what that means is that you know we have a suite of products called Snowball and whether it's snowball or snow cone, take your pick. That whole portfolio of AWS services is targeted at customers that need to do work with storage at the edge. And so it you know, if you think about the need for multiple applications acting on the same data set, that's when you keep it in an AWS region. And what we've done in AWS storage is we've recognized that depending on the need of usage, where you put your data and how you interactive, it may vary. But we've built a whole set of services like data transfer to help make sure that we can connect data from, for example, that new snow cone into a region automatically. And so our goal Dave, is to make sure that when customers air operating at the edge or they're operating in the region, they have the same quality of storage service, and they have easy ways to go between them. You shouldn't have to pick. You should be able to do it all. >>So in the spirit of do it all, this is sort of age old dynamic in the tech business, where you've got the friction between the the best of breed and the integrated suite, and my question is around what you're optimizing for for customers. And can you have your cake and eat it too? In other words, why A W S storage does what makes a compelling? Is it because it's kind of a best of breed storage service? Or is it because it's integrated with a W S? Would you ever sub optimize one in in order to get an advantage to the other? Or can you actually, >>you >>know, have your cake and eat it, too? >>The way that we build storage is to focus on being both the breath of capabilities on the depth of capabilities. And so where we identify ah, particular need where we think that it takes a whole new service to deliver, we'll go build that service and example for that is FTP, our AWS sftp service, which you know there's a lot of sftp usage out there and there will be for a while because of the you know, the Legacy B two b type of architectures that still live in the business world today. And so we looked at that problem. We said, How are we gonna build that in the best depth way and the best focus? And we launched a separate service for them. And so our goal is to take the individual building blocks of CBS and Glacier and s three and make the best of class and the most comprehensive in the capabilities of what we can dio and where we identify very specific need. We'll go build a service for. But, Dave, you know, as an example for that idea of both depths and breath s three storage lands is a great example of that s three storage lands is a new capability that we launched last year. And what it does is it lets you look across all your regions and all your accounts and get a summary view of all your s three storage and whether that's buckets or, you know, the most active prefixes that you have and be able to drill down from that and that is built in to the S three service and available for any customer that wants to turn it on in the AWS Management Council. >>Right? And we we saw just recently made I called it super duper block storage. But you made some, you know, improvements and really addressing the highest performance. Um, I want to ask you So we've all learned about an experience the benefits of cloud over the last several years, and especially in the last 10 months during the pandemic. But one >>of >>the challenges, and it's particularly acute with bio is, of course, Leighton see and moving data around and accessing data remotely. It's It's a challenge for customers, you know, due to speed of light, etcetera. So my question is, how was a W s thinking about all that data that still resides on premises? I think we heard that reinvent. That's still 90% of the opportunities or or the workloads. They're still on Prem that live inside a customer's data center. So how do you tap into those and help customers innovate with on Prem data, particularly from a storage >>angle? Well, we always want to provide the best of class solution for those little Leighton see workloads, and that's why we launched Block Express just late last year. It reinvent and Black expresses a new capability and preview on top of our Iot to provisioned eye ops volume type, and what's really interesting about Block Express Dave, is that the way that we're able to deliver the performance of Block Express, which is sound performance with cloud elasticity, is that we went all the way down to the network layer and we customize the hardware software. And at the network Lehrer, we built a Block Express on something called SRD, which stands for a scalable, reliable diagrams. And basically, what is letting us to do is offload all of our EBS operations for Block Express on the Nitro card on hardware. And so that type of innovation where we're able Thio, you know, take advantage of modern cop commodity, multi tenant data center networks where we're sending in this new network protocol across a large number of network paths, and that that type of innovation all the way down to that protocol level helps us innovate in a way that's hard. In fact, I would say impossible for for other sound providers to kind of really catch up and keep up. And so we feel that the amount of innovation that we have for delivering those low latency workloads in our AWS cloud storage is is unlimited, really, Because of that ability to customize software, hardware and network protocols as we go along without requiring upgrades from a customer it just gets better and the customer benefits. Now if you want to stay in your data center, that's why we built outposts. And for outpost, we have EBS and we have s three for outposts. And our goal there is that some customers will have workloads where they want to keep them resident in the data center And for those customers, we want to give them that AWS storage opportunities as well. So >>thank you for coming back to block Express. So you call it in sand in the cloud eso Is that essentially you've you've comprises a custom built, essentially storage storage network. Is that is that right? What kind of what you just described? SRD? I think you call it. >>Yeah, it's SRT is used by other AWS services as well, but it is a custom network protocol that we designed to deliver the lowest latency experience on We're taking advantage of it with Block Express >>sticking with traditional data centers for a moment, I'm interested in your thoughts on the importance of the cloud you know, pricing approach I e. The consumption model to paid by the drink. Obviously, it's one of the most attractive features But But And I ask that because we're seeing what Andy Jassy first, who is the old Guard Institute? Flexible pricing models. Two of the biggest storage companies HP with Green Lake and Dell has this thing called Apex. They've announced such models for on Prem and and presumably, Cross Cloud. How >>do you think >>this is going to impact your customers Leverage of AWS cloud storage? Is it something that you have ah, opinion on? >>Yeah, I think it all comes down to again that usage of the storage And this is where I think there is an inherent advantage for our cloud storage. So there might be an attempt by the old guard toe lower prices or add flexibility. But the end of the day it comes down to what the customer actually needs to to. And if you think about gp three, which is the new E. B s volume, the idea with GP three is we're gonna pass along savings to the customer by making the storage 20% cheaper than GP two. And we're gonna make the product better by giving a great, reliable baseline performance. But we're also going to let customers who want to run work clothes like Cassandra on TBS tune their throughput separately, for example, from their capacity. So if you're running Cassandra, sometimes you don't need to change your capacity. Your storage capacity works just fine, but what happens with for example, Cassandra were quote is that you may need more throughput. And if you're buying hardware appliance, you just have to buy for your peak. You have to buy for the max of what you think, your throughput in the max of what your storage is and this inherent flexibility that we have for AWS storage and being able to tune throughput separate from IOP, separate from capacity like you do for GP three. That is really where the future is for customers having control over costs and control over customer experience without compromising or trading off either one. >>Awesome. Thank you for that. So another time we have remaining my line. I want to talk about the topic of diversity. Uh, social impact on Daz. Ah, woman leader, women executive on. I really wanna get your perspectives on this, and I've shared with the audience previously. One of my breaking analysis segments your your boxing video, which is awesome and eso so you've got a lot of unique, non traditional aspects to your to your life, and and I love it. But I >>want to >>ask you this. So it's obviously, you know, certainly politically and socially correct to talk about diversity, the importance of diversity. There's data that suggests that that that diversity is good both economically, not just socially. And of course, it's the right thing to do. But there are those. Peter Thiel is probably the most prominent, but there are others who say, You know what, >>But >>get that. Just hire people just like you will be able to go faster, ramp up more quickly, hit escape velocity. It's natural. And that's what you should dio. Why is that not the right approach? Why is diversity both course socially responsible, but also good for business? >>For Amazon, we think about diversity as something that is essential toe how we think about innovation. And so, Dave, you know, as you know, from listening to some of the announcements I reinvent, we launched a lot of new ideas, new concepts and new services in AWS and just bringing that lends down to storage U. S. Tree has been reinventing itself every year since we launched in 2000 and six. PBS introduced the first Son on the Cloud late last year and continues to reinvent how customers think about block storage. We would not be able Thio. Look at a product in a different way and think to ourselves Not just what is the legacy system dio in a data center today. But how do we want to build this new distributed system in a way that helps customers achieve not just what they're doing today, but what they want to do in five and 10 years? You can't get that innovative mindset without bringing different perspectives to the table. And so we strongly believe in hiring people who are from underrepresented groups and whether that's gender or it's related racial equality or if its geographic, uh, diversity and bringing them in tow have the conversation. Because those divers viewpoints inform how we can innovate at all levels in a W s >>right. And so I really appreciate the perspectives on that, and we've had a zoo. You probably know the Cube has been, you know, a very big advocate of diversity, you know, generally, but women in tech Specifically, we participated a lot. And you know, I often ask this question is, you know, as a smaller company, uh, I and some of my other colleagues in in small business Sometimes we struggle. Um and so my question is, how >>how do >>you go beyond What's your advice for going beyond, you know, the good old boys network? I think its large companies like AWS and the big players you've got a responsibility to that. You can put somebody in charge and make it you know, their full time job. How should smaller companies, um, that are largely white, male dominated? How should they become more diverse? What should they do? Thio increase that diversity? >>Well, I think the place to start his voice. A lot of what we try to dio is make sure that the underrepresented voice is heard. And so, Dave, any small business owner of any industry can encourage voice for your under represented or your unheard populations. And honestly, it is a simple as being in a meeting and looking around that table, we're on your screen as it were and asking yourself Who hasn't talked? Who hasn't weighed in particularly if the debate is contentious or even animated. And you will see, particularly if you note this. Over time you will see that there may be somebody and whether it's an underrepresented, a group or its ah woman whose early career or it's it's not. It's just a member of your team who happens to be a white male to who's not being hurt. And you can ask that person for their perspective. And that is a step that every one of us can and should do, which is asked toe, have everyone's voice at the table, toe listen and to weigh in on it. So I think that is something everyone should dio. I think if you are a member of an underrepresented groups, as for example, I'm Vietnamese American and I'm the female in Tech. I think it z something to think about how you can make sure that you're always taking that bold step forward. And it's one of the topics that we covered it at reinvent. We had a great discussion with a group of women CEOs, and a lot of it we talked about is being bolt, taking the challenge of being bold in tough situations, and that is an important thing, I think, for anybody to keep in mind, but especially for members of underrepresented groups, because sometimes Dave, that bold step that you kind of think of is like, Oh, I don't know if I should ask for that promotion or I don't know if I should volunteer for that project It's not. It's not a big ask, but it's big in your head. And so if you can internalize as a member of some, you know, a group that maybe hasn't heard or seen as much how you can take those bold challenges and step forward and learn, maybe fell also because that's how you learn. Then that is a way toe. Also have people learn and develop and become leaders in whatever industry it ISS. It's >>great advice, and I reminds me of, I mean, I think most of us can relate to that my land, because when we started in the industry, we may be timid. You didn't want to necessarily speak up, and I think it's incumbent upon those in a position of power. And by the way, power might just be running a meeting agenda to maybe calling those folks that are. Maybe it's not diversity of gender or, you know, our or race. And maybe it's just the underrepresented. Maybe that's a good way to start building muscle memory. So that's unique advice that I hadn't heard before. So thank you very much for that. Appreciate it. And, uh hey, listen, thanks so much for coming on the Cuban cloud. Uh, we're out of time and and really, always appreciate your perspectives. And you're doing a great job, and thank you. >>Great. Thank you, Dave. Thanks for having me and have a great day. >>All right? And keep it right, everybody. You're watching the cube on cloud right back.

>>from around the globe. It's the Cube presenting Cuban cloud brought to you by Silicon Angle. Hi, I'm stupid, man. And welcome back to the Cube on Cloud. We're talking about developers. And while so many people remember the mean from 2010 of Steve Balmer jumping around on stage development developers and developers, uh, many people know what really important is really important about developers. They probably read the 2013 book called The New King Makers by Stephen O. Grady. And I'm really happy to welcome to the program. Rachel Stevens, who is an industry analyst with Red Monk who was co founded by the aforementioned Stephen O. Grady. Rachel, Great to see you. Thank you so much for joining us. >>Thank you so much for having me. I'm excited to be here. >>Well, I've had the opportunity, Thio read some of what you've done. We've interacted on social media. We've got to talk events back when we used to do those in people. And >>I'm so >>glad that you get to come on the program especially. You were the ones I reached out. When we have this developer track, um, if you could just give our audience a little bit about your background. You know, that developer cred that you have Because as I joke, I've got a closet full of hoodies. But, you know, I'm an infrastructure guy by training I've been learning about, you know, containers and serverless and all this stuff for years. But I'm not myself much of developer. I've touched a thing or two in the years. >>Yeah. So happy to be here. Red Monk has been around since 2002 and have kind of been beating that developer drum ever since then, kind of as the company, The founder, Stephen James, notice that the decision making that developers was really a driver for what was actually ending up in the Enterprise. And as even more true, as cloud came onto, the scene is open source exploded, and I think it's become a lot more of a common view now. But in those early days, it was probably a little bit more of a controversial opinion, but I have been with the firm for coming up on five years now. My work is an industry analyst. We kind of help people understand, bottoms up technology, adoption trends, so that that's where I spend my time focusing is what's getting used in the enterprise. Why, what kind of trends are happening? So, yeah, that's where we all come from. That's the history of Red Monk in 30 seconds. >>Awesome. Rachel, you talk about the enterprise and developers For the longest time. I just said there was this huge gap you talk about. Bottoms up. It's like, well, developers use the tools that they want If they don't have to, they don't pay for anything. And the general I t. And the business sides of the house were like, I don't know, We don't know what those people in the corner we're doing, you know, it's important and things like that. But today it feels like that that's closed a bunch. Where are we? In your estimation, you know, our developers do they have a clear seat at the table? The title we have for this is whether the Enterprise Developer is its enterprise development oxymoron. In 2020 and 2021 >>I think enterprise developers have a lot more practical authority than people give them credit for, especially if you're kind of looking at that old view of the world where everything is driven by a buyer decision or kind of this top down purchasing motion. And we've really seen that authority of what is getting used and why change a lot in the last year. In the last decade, even more of people who are able to choose the tools that meet the job bring in tools, regardless of whether they maybe have that official approval through the right channels because of the convenience of trying to get things up and running. We are asking developers to do so much right now and to go faster and thio shifting things left. And so the things that they are responsible for incorporating into the way they are building APS is growing. And so, as we are asking developers to do more and to do more quickly, um, the tools that they need to do those, um, tasks to get these APS built is that the decision making us fall into them? This is what I need. This is what needs to come in, and so we're seeing. Basically, the tools that enterprise is air using are the tools that developers want to be using, and they kind of just find their way into the enterprise. >>Now I want to key off what you were talking about. Just developers were being asked to do Mawr and Mawr. We've seen these pendulum swings in technology. There was a time where it was like, Well, I'll outsource it because that'll be easier and maybe it'll be less expensive. And number one we found it necessarily. It wasn't necessarily cheaper. And number two, I couldn't make changes, and I didn't understand what was happening. So when when I talked to Enterprises today, absolutely. I need to have skills that's internally. I need to be able to respond to things fast, and therefore I need skills that I need people that can build what they have. What what do you see? What are those skill sets that are so important today? Uh, you know, we've talked so many times over the years is to you know, there's there's the skills gap. We don't have enough data scientists. We don't have enough developers way. We don't have any of these things. So what do we have and where things trending? >>Yeah, it's It's one of those things for developers where they both have probably the most full tool set that we've seen in this industry in terms of things that are available to them. But it's also really hard because it also indicates that there is just this fragmentation at every level of the stack. And there's this explosion of choice and decisions that is happening up and down the stack of how are we going to build things? And so it's really tricky to be a developer these days and that you are making a lot of decisions and you are wiring a lot of things together and you have to be able to navigate a lot of things. E think. One of the things that is interesting here is that we have seen the phrase like Full stack developer really carried a lot of panache, maybe earlier this decade and has kind of fallen away. Just because we've realized that it's impossible for anybody to be ableto spanned this whole broad spectrum of all of the things we're asking people to dio. So we're seeing this explosion of choice, which is meaning that there is a little bit more focused and where developers are trying to actually figure out what is my niche. What is it that I'm supposed to focus on. And so it's really just this balancing of act of trying to see this big picture of how to get this all put together and also have this focused area realizing that you have to specialize at some point. >>Rachel is such a great point there. We've actually seen that Cambrian explosion of developer tools that are out there. If you go to the CFCF landscape and look at everything out there or goto any of your public cloud providers, there's no way that anybody even working for those companies no good portion of the tools that are out there so nobody could be a master of everything. How about from a cloud standpoint, you know, there is the discussion of, you know what do I shift? Left What? You know, Can I just say, Okay, this piece of it, it could be a manage service. I don't need to think about it versus what skills that I need to have in house. What is it that's important. And obviously, you know, a zoo analyst. We know it varies greatly across companies, but you know what? What are some of those top things that we need to make sure that enterprises have skill set and the tools in house that they should understand. And what can they push off to their platform of choice? >>Yeah, I think your comment about managed services is really pressing because one of the trends that we're watching closely, it's just this rise of manage services. And it kind of ties back into the concept you had before about like, what an I team. That's they have, like the Nicholas Carr. I t doesn't matter, and we're pushing this all the way. And then we realized, Oh, we've got to bring that all back. Um, but we also realize that we really want as enterprises want to be spending our time doing differentiated work and wiring together, your entire infrastructure isn't necessarily differentiated for a lot of companies. And so it's trying to find this mix of where can I push my abstraction higher or to find a manage service that can do something for me? And we're seeing that happen in all levels of the stack. And so what we're seeing is this rise of composite APS where we're going to say, Okay, I'm gonna pull in back end AP ice from a whole bunch of tools like twilio or stripe or all zero where algo Leah, all of those things are great tools that I can incorporate into my app. And I can have this great user, um, interface that I can use. And then I don't have to worry quite so much about building it all myself. But I am responsible for wiring at all together. So I think it's that wire together set of interest that is happening for developers as the tool set that they are spending a lot of time with. So we see the manage services being important. Um played an important role in how absent composed, and it's the composition of that APs that is happening internally. >>What one of the one of the regular research items that I see a red monk is you know what languages you know. Where are the trends going? There's been relative stability, but then something's changed. You know, I look at the tools that you mentioned Full stack developer. I talked to a full stack developer a couple of years ago, and he's like like like terror form is my life and I love everything and I've used it forever. And that was 18 months, Andi. I kind of laugh because it's like, OK, I managed. I measure a lot of the technology that I used in the decades. Um, not that await. This came out six months ago and it's kind of mature. And of course, you know, C I C d. Come on. If it's six weeks old, it's probably gone through a lot of generations. So what do you see? Do you have any research that you can share as to looking forward? What are the You know what the skill sets we need? How should we be training our force? What do >>we need to >>be looking at in this kind of next decade of cloud? >>Yeah. So when when you spoke about languages, we dio a semi annual review of language usage as a sign on get hub and in discussion as seen on stack overflow, which we fully recognize is not a perfect representation of how these languages are used in the broader world. But those air data sets that we have access to that are relatively large and open eso just before anyone writes me angry letters that that's not the way that we should be doing it, Um, but one of the things that we've seen over time is that there is a lot of relative stability in those top tier languages in terms of how they are used, and there's some movement at the bottom. But the trends we're seeing where the languages are moving is type safety and having a safer language and the communities that are building upon other communities. So things like, um, we're seeing Scotland that is able to kind of piggyback off of being a jvm based language and having that support from Google. Or we're seeing typescript where it can piggyback off of the breath of deployment of JavaScript, things like that. So those things where were combining together multiple trends that developers are interested in the same time combined with an ecosystem that's already rich and full. And so we're seeing that there's definitely still movement in languages that people are interested in, but also, language on its own is probably pretty stable. So, like as you start to make language choices as a developer, that's not where we're seeing a ton of like turnover language frameworks on the other hand, like if you're a JavaScript developer and all of a sudden there's just explosion of frameworks that you need to choose from, that may be a different story, a lot more turnover there and harder to predict. But language trends are a little bit more stable over >>time, changing over time. You know, Boy, I I got to dig into, you know, relatively Recently I went down like the jam stack. Uh, ecosystem. I've been digging into a serverless for a number of years. What's your take on that? There's certain people. I talked to him. They're like, I don't even need to be a code. Or I could be a marketing person. And I can get things done when I talked to some developers there like a citizen developers. They're not developers. Come on, you know, I really need to be able to do this, so I'll give you your choices, toe. You know, serverless and some of these trends to kind of ext fan. You know who can you know? Code and development. >>Yeah. So for both translate jam stack and serve Ellis, One of the things that we see kind of early in the iteration of a technology is that it is definitely not going to be the right tool for every app. And the number of APS that they approach will fit for will grow as the tool develops. And you add more functionality over time and all of these platforms expand the capability, but definitely not the correct tool choice in every case. That said, we do watch both of those areas with extreme interest in terms of what this next generation of APS can look like and probably will look like in a lot of cases. And I think that it is super interesting to think about who gets to build these APs, because I e. I think one of the things that we probably haven't landed on the right language yet is what that what we should call these people because I don't think anyone associates themselves as a low code person. Like if you're someone from marketing and all of a sudden you can build something technical, that's really cool, and you're excited about that. Nobody else on your team could build. You're not walking around saying I am a low code marketing person like that, that that's that's that's demeaning. Like you're like. No, I'm technical. I'm a technical market, or look what I just did. And if you're someone who codes professionally for a living like and you use a low code tool to get something out the door quickly and >>you don't >>wanna demean and said, Oh, that was I did a low code that just like everybody, is just trying to solve problems. And everybody, um, is trying to figure out how to do things in the most effective way possible and making trade offs all the time. And so I don't think that the language of low code really is anything that resonates with any of the actual users of low code tools. And so I think that's something that we as an industry need toe work on finding the correct language because it doesn't feel like we've landed there yet. >>Yeah, Rachel, what? Want to get your take on just careers for developers now to think about in 2020 everyone is distributed. Lots of conversations about where we work. Can we bring the remote? Many of the developers I talked to already were remote. I had the chance that interview that the head of remote. Forget lab. They're over 1000 people and they're fully remote. So, you know, remote. Absolutely a thing for developers. But if you talk about careers, it is no longer, you know. Oh, hey, here's my CV. It's I'm on git Hub. You can see the code I've done. We haven't talked about open source yet, so give us your take on kind of developers today. Career paths. Andi. Kind of the the online community there. >>Yeah, this could be a whole own conversation. We'll try to figure out my points. Um, so I think one of the things that we are trying to figure out in terms of balance is how much are we expecting people to have done on the side? It's like a side project Hustle versus doing, exclusively getting your job done and not worrying too much about how many green squares you have on your get hub profile. And I think it's a really emotional and fraught discussion and a lot of quarters because it can be exclusionary for people saying that you you need to be spending your time on the side working on this open source project because there are people who have very different life circumstances, like if you're someone who already has kids or you're doing elder care or you are working another job and trying to transition into becoming a developer, it's a lot to ask. These people toe also have a side hustle. That said, it is probably working on open source, having an understanding of how tools are done. Having this, um, this experience and skills that you can point to and contributions you can point Teoh is probably one of the cleaner ways that you can start to move in the industry and break through to the industry because you can show your skills two other employers you can kind of maybe make your way in is a junior developer because you worked on a project and you make those connections. And so it's really still again. It's one of those balancing act things where there's not a perfect answer because there really is to correct sides of this argument. And both of those things are true. At the same time where it's it's hard to figure out what that early career path maybe looks like, or even advancing in a career path If you're already a developer, it's It's tricky. >>Well, I want to get your take on something to you know, I think back to you know, I go back a decade or two I started working with about 20 years ago. Back in the crazy days were just Colonel Daughter Warg and, you know, patches everywhere and lots of different companies trying to figure out what they would be doing on most of the people contributing to the free software before we're calling it open source. Most of the time, it was their side Hustle was the thing they're doing. What was their passion? Project? I've seen some research in the last year or so that says the majority of people that are contributing to open source are doing it for their day job. Obviously, there's a lot of big companies. There's plenty of small companies. When I goto the Linux Foundation shows. I mean, you've got whole companies that are you know, that that's their whole business. So I want to get your take on, you know, you know, governance, you know, contribution from the individual versus companies. You know, there's a lot of change going on there. The public cloud their impact on what's happening open source. What are you seeing there? And you know what's good? What's bad? What do we need to do better as a community? >>Yeah. E think the governance of open source projects is definitely a live conversation that we're having right now about what does this need to look like? What role do companies need to be having and how things are put together is a contribution or leadership position in the name of the individual or the name of the company. Like all of these air live conversations that are ongoing and a lot of communities e think one of the things that is interesting overall, though, is just watching if you're if you're taking a really zoomed out view of what open source looks like where it was at one point, um, deemed a cancer by one of the vendors in the space, and now it is something that is just absolutely an inherent part of most well tech vendors and and users is an important part of how they are building and using software today, like open source is really an integral tool. And what is happening in the enterprise and what's being built in the enterprise. And so I think that it is a natural thing that this conversation is evolving in terms of what is the enterprises role here and how are we supposed to govern for that? And e don't think that we have landed on all the correct answers yet. But I think that just looking at that long view, it makes sense that this is an area where we are spending some time focusing >>So Rachel without giving away state secrets. We know read Monk, you do lots of consulting out there. What advice do you give to the industry? We said we're making progress. There's good things there. But if we say okay, I wanna at 2030 look back and say, Boy, this is wonderful for developers. You know, everything is going good. What things have we done along the way? Where have we made progress? >>Yeah, I think I think it kind of ties back to the earlier discussion we were having around composite APS and thinking about what that developer experience looks like. I think that right now it is incredibly difficult for developers to be wiring everything together and There's just so much for developers to dio to actually get all of these APs from source to production. So when we talk with our customers, a lot of our time is spent thinking, How can you not only solve this individual piece of the puzzle, but how can you figure out how to fit it into this broader picture of what it is the developers air trying to accomplish? How can you think about where your ATF, It's not on your tool or you your project? Whatever it is that you are working on, how does this fit? Not only in terms of your one unique problem space, but where does this problem space fit in the broader landscape? Because I think that's going to be a really key element of what the developer experience looks like in the next decade. Is trying to help people actually get everything wired together in a coherent way. >>Rachel. No shortage of work to do there really appreciate you joining us. Thrilled to have you finally as a cube. Alumni. Thanks so much for joining. >>Thank you for having me. I appreciate it. >>All right. Thank you for joining us. This is the developer content for the cube on cloud, I'm stew minimum, and as always, thank you for watching the Cube.

>>from around the globe. It's the Cube presenting Cuban cloud brought to you by silicon angle, everybody to Cuban cloud. My name is Dave Volonte, and I'll be here throughout the day with my co host, John Ferrier, who was quarantined in an undisclosed location in California. He's all good. Don't worry. Just precautionary. John, how are you doing? >>Hey, great to see you. John. Quarantine. My youngest daughter had covitz, so contact tracing. I was negative in quarantine at a friend's location. All good. >>Well, we wish you the best. Yeah, well, right. I mean, you know what's it like, John? I mean, you're away from your family. Your basically shut in, right? I mean, you go out for a walk, but you're really not in any contact with anybody. >>Correct? Yeah. I mean, basically just isolation, Um, pretty much what everyone's been kind of living on, kind of suffering through, but hopefully the vaccines are being distributed. You know, one of the things we talked about it reinvent the Amazon's cloud conference. Was the vaccine on, but just the whole workflow around that it's gonna get better. It's kind of really sucky. Here in the California area, they haven't done a good job, a lot of criticism around, how that's rolling out. And, you know, Amazon is now offering to help now that there's a new regime in the U. S. Government S o. You know, something to talk about, But certainly this has been a terrible time for Cove it and everyone in the deaths involved. But it's it's essentially pulled back the covers, if you will, on technology and you're seeing everything. Society. In fact, um, well, that's big tech MIT disinformation campaigns. All these vulnerabilities and cyber, um, accelerated digital transformation. We'll talk about a lot today, but yeah, it's totally changed the world. And I think we're in a new generation. I think this is a real inflection point, Dave. You know, modern society and the geo political impact of this is significant. You know, one of the benefits of being quarantined you'd be hanging out on these clubhouse APS, uh, late at night, listening to experts talk about what's going on, and it's interesting what's happening with with things like water and, you know, the island of Taiwan and China and U. S. Sovereignty, data, sovereignty, misinformation. So much going on to talk about. And, uh, meanwhile, companies like Mark injuries in BC firm starting a media company. What's going on? Hell freezing over. So >>we're gonna be talking about a lot of that stuff today. I mean, Cuba on cloud. It's our very first virtual editorial event we're trying to do is bring together our community. It's a it's an open forum and we're we're running the day on our 3 65 software platform. So we got a great lineup. We got CEO Seo's data Practitioners. We got a hard core technologies coming in, cloud experts, investors. We got some analysts coming in and we're creating this day long Siri's. And we've got a number of sessions that we've developed and we're gonna unpack. The future of Cloud computing in the coming decade is, John said, we're gonna talk about some of the public policy new administration. What does that mean for tech and for big tech in General? John, what can you add to that? >>Well, I think one of the things that we talked about Cove in this personal impact to me but other people as well. One of the things that people are craving right now is information factual information, truth texture that we call it. But hear this event for us, Davis, our first inaugural editorial event. Robbo, Kristen, Nicole, the entire Cube team Silicon angle, really trying to put together Morva cadence we're gonna doom or of these events where we can put out feature the best people in our community that have great fresh voices. You know, we do interview the big names Andy Jassy, Michael Dell, the billionaires with people making things happen. But it's often the people under there that are the rial newsmakers amid savory, for instance, that Google one of the most impressive technical people, he's gotta talk. He's gonna present democratization of software development in many Mawr riel people making things happen. And I think there's a communal element. We're going to do more of these. Obviously, we have, uh, no events to go to with the Cube. So we have the cube virtual software that we have been building and over years and now perfecting and we're gonna introduce that we're gonna put it to work, their dog footing it. We're gonna put that software toe work. We're gonna do a lot mawr virtual events like this Cuban cloud Cuban startup Cuban raising money. Cuban healthcare, Cuban venture capital. Always think we could do anything. Question is, what's the right story? What's the most important stories? Who's telling it and increase the aperture of the lens of the industry that we have and and expose that and fastest possible. That's what this software, you'll see more of it. So it's super exciting. We're gonna add new features like pulling people up on stage, Um, kind of bring on the clubhouse vibe and more of a community interaction with people to meet each other, and we'll roll those out. But the goal here is to just showcase it's cloud story in a way from people that are living it and providing value. So enjoy the day is gonna be chock full of presentations. We're gonna have moderated chat in these sessions, so it's an all day event so people can come in, drop out, and also that's everything's on demand immediately after the time slot. But you >>want to >>participate, come into the time slot into the cube room or breakout session. Whatever you wanna call it, it's a cube room, and the people in there chatting and having a watch party. So >>when you're in that home page when you're watching, there's a hero video there. Beneath that, there's a calendar, and you'll see that red line is that red horizontal line of vertical line is rather, it's a linear clock that will show you where we are in the day. If you click on any one of those sessions that will take you into the chat, we'll take you through those in a moment and share with you some of the guests that we have upcoming and and take you through the day what I wanted to do. John is trying to set the stage for the conversations that folks are gonna here today. And to do that, I wanna ask the guys to bring up a graphic. And I want to talk to you, John, about the progression of cloud over time and maybe go back to the beginning and review the evolution of cloud and then really talk a little bit about where we think it Z headed. So, guys, if you bring up that graphic when a W S announced s three, it was March of 2000 and six. And as you recall, John you know, nobody really. In the vendor and user community. They didn't really pay too much attention to that. And then later that year, in August, it announced E C two people really started. They started to think about a new model of computing, but they were largely, you know, chicken tires. And it was kind of bleeding edge developers that really leaned in. Um what? What were you thinking at the time? When when you saw, uh, s three e c to this retail company coming into the tech world? >>I mean, I thought it was totally crap. I'm like, this is terrible. But then at that time, I was thinking working on I was in between kind of start ups and I didn't have a lot of seed funding. And then I realized the C two was freaking awesome. But I'm like, Holy shit, this is really great because I don't need to pay a lot of cash, the Provisional Data center, or get a server. Or, you know, at that time, state of the art startup move was to buy a super micro box or some sort of power server. Um, it was well past the whole proprietary thing. But you have to assemble probably anyone with 5 to 8 grand box and go in, and we'll put a couple ghetto rack, which is basically, uh, you know, you put it into some coasting location. It's like with everybody else in the tech ghetto of hosting, still paying monthly fees and then maintaining it and provisioning that's just to get started. And then Amazon was just really easy. And then from there you just It was just awesome. I just knew Amazon would be great. They had a lot of things that they had to fix. You know, custom domains and user interface Council got better and better, but it was awesome. >>Well, what we really saw the cloud take hold from my perspective anyway, was the financial crisis in, you know, 709 It put cloud on the radar of a number of CFOs and, of course, shadow I T departments. They wanted to get stuff done and and take I t in in in, ah, pecs, bite sized chunks. So it really was. There's cloud awakening and we came out of that financial crisis, and this we're now in this 10 year plus boom um, you know, notwithstanding obviously the economic crisis with cove it. But much of it was powered by the cloud in the decade. I would say it was really about I t transformation. And it kind of ironic, if you will, because the pandemic it hits at the beginning of this decade, >>and it >>creates this mandate to go digital. So you've you've said a lot. John has pulled forward. It's accelerated this industry transformation. Everybody talks about that, but and we've highlighted it here in this graphic. It probably would have taken several more years to mature. But overnight you had this forced march to digital. And if you weren't a digital business, you were kind of out of business. And and so it's sort of here to stay. How do you see >>You >>know what this evolution and what we can expect in the coming decades? E think it's safe to say the last 10 years defined by you know, I t transformation. That's not gonna be the same in the coming years. How do you see it? >>It's interesting. I think the big tech companies are on, but I think this past election, the United States shows um, the power that technology has. And if you look at some of the main trends in the enterprise specifically around what clouds accelerating, I call the second wave of innovations coming where, um, it's different. It's not what people expect. Its edge edge computing, for instance, has talked about a lot. But industrial i o t. Is really where we've had a lot of problems lately in terms of hacks and malware and just just overall vulnerabilities, whether it's supply chain vulnerabilities, toe actual disinformation, you know, you know, vulnerabilities inside these networks s I think this network effects, it's gonna be a huge thing. I think the impact that tech will have on society and global society geopolitical things gonna be also another one. Um, I think the modern application development of how applications were written with data, you know, we always been saying this day from the beginning of the Cube data is his integral part of the development process. And I think more than ever, when you think about cloud and edge and this distributed computing paradigm, that cloud is now going next level with is the software and how it's written will be different. You gotta handle things like, where's the compute component? Is it gonna be at the edge with all the server chips, innovations that Amazon apple intel of doing, you're gonna have compute right at the edge, industrial and kind of human edge. How does that work? What's Leighton see to that? It's it really is an edge game. So to me, software has to be written holistically in a system's impact on the way. Now that's not necessarily nude in the computer science and in the tech field, it's just gonna be deployed differently. So that's a complete rewrite, in my opinion of the software applications. Which is why you're seeing Amazon Google VM Ware really pushing Cooper Netease and these service messes in the micro Services because super critical of this technology become smarter, automated, autonomous. And that's completely different paradigm in the old full stack developer, you know, kind of model. You know, the full stack developer, his ancient. There's no such thing as a full stack developer anymore, in my opinion, because it's a half a stack because the cloud takes up the other half. But no one wants to be called the half stack developer because it doesn't sound as good as Full Stack, but really Cloud has eliminated the technology complexity of what a full stack developer used to dio. Now you can manage it and do things with it, so you know, there's some work to done, but the heavy lifting but taking care of it's the top of the stack that I think is gonna be a really critical component. >>Yeah, and that that sort of automation and machine intelligence layer is really at the top of the stack. This this thing becomes ubiquitous, and we now start to build businesses and new processes on top of it. I wanna I wanna take a look at the Big Three and guys, Can we bring up the other The next graphic, which is an estimate of what the revenue looks like for the for the Big three. And John, this is I asked and past spend for the Big Three Cloud players. And it's It's an estimate that we're gonna update after earning seasons, and I wanna point a couple things out here. First is if you look at the combined revenue production of the Big Three last year, it's almost 80 billion in infrastructure spend. I mean, think about that. That Z was that incremental spend? No. It really has caused a lot of consolidation in the on Prem data center business for guys like Dell. And, you know, um, see, now, part of the LHP split up IBM Oracle. I mean, it's etcetera. They've all felt this sea change, and they had to respond to it. I think the second thing is you can see on this data. Um, it's true that azure and G C P they seem to be growing faster than a W s. We don't know the exact numbers >>because >>A W S is the only company that really provides a clean view of i s and pass. Whereas Microsoft and Google, they kind of hide the ball in their numbers. I mean, I don't blame them because they're behind, but they do leave breadcrumbs and clues about growth rates and so forth. And so we have other means of estimating, but it's it's undeniable that azure is catching up. I mean, it's still quite distance the third thing, and before I want to get your input here, John is this is nuanced. But despite the fact that Azure and Google the growing faster than a W s. You can see those growth rates. A W s I'll call this out is the only company by our estimates that grew its business sequentially last quarter. Now, in and of itself, that's not significant. But what is significant is because AWS is so large there $45 billion last year, even if the slower growth rates it's able to grow mawr and absolute terms than its competitors, who are basically flat to down sequentially by our estimates. Eso So that's something that I think is important to point out. Everybody focuses on the growth rates, but it's you gotta look at also the absolute dollars and, well, nonetheless, Microsoft in particular, they're they're closing the gap steadily, and and we should talk more about the competitive dynamics. But I'd love to get your take on on all this, John. >>Well, I mean, the clouds are gonna win right now. Big time with the one the political climate is gonna be favoring Big check. But more importantly, with just talking about covert impact and celebrating the digital transformation is gonna create a massive rising tide. It's already happening. It's happening it's happening. And again, this shift in programming, uh, models are gonna really kinda accelerating, create new great growth. So there's no doubt in my mind of all three you're gonna win big, uh, in the future, they're just different, You know, the way they're going to market position themselves, they have to be. Google has to be a little bit different than Amazon because they're smaller and they also have different capabilities, then trying to catch up. So if you're Google or Microsoft, you have to have a competitive strategy to decide. How do I wanna ride the tide If you will put the rising tide? Well, if I'm Amazon, I mean, if I'm Microsoft and Google, I'm not going to try to go frontal and try to copy Amazon because Amazon is just pounding lead of features and scale and they're different. They were, I would say, take advantage of the first mover of pure public cloud. They really awesome. It passed and I, as they've integrated in Gardner, now reports and integrated I as and passed components. So Gardner finally got their act together and said, Hey, this is really one thing. SAS is completely different animal now Microsoft Super Smart because they I think they played the right card. They have a huge installed base converted to keep office 3 65 and move sequel server and all their core jewels into the cloud as fast as possible, clarified while filling in the gaps on the product side to be cloud. So you know, as you're doing trends job, they're just it's just pedal as fast as you can. But Microsoft is really in. The strategy is just go faster trying. Keep pedaling fast, get the features, feature velocity and try to make it high quality. Google is a little bit different. They have a little power base in terms of their network of strong, and they have a lot of other big data capabilities, so they have to use those to their advantage. So there is. There is there is competitive strategy game application happening with these companies. It's not like apples, the apples, In my opinion, it never has been, and I think that's funny that people talk about it that way. >>Well, you're bringing up some great points. I want guys bring up the next graphic because a lot of things that John just said are really relevant here. And what we're showing is that's a survey. Data from E. T. R R Data partners, like 1400 plus CEOs and I T buyers and on the vertical axis is this thing called Net score, which is a measure of spending momentum. And the horizontal axis is is what's called market share. It's a measure of the pervasiveness or, you know, number of mentions in the data set. There's a couple of key points I wanna I wanna pick up on relative to what John just said. So you see A W S and Microsoft? They stand alone. I mean, they're the hyper scale er's. They're far ahead of the pack and frankly, they have fall down, toe, lose their lead. They spend a lot on Capex. They got the flywheel effects going. They got both spending velocity and large market shares, and so, but they're taking a different approach. John, you're right there living off of their SAS, the state, their software state, Andi, they're they're building that in to their cloud. So they got their sort of a captive base of Microsoft customers. So they've got that advantage. They also as we'll hear from from Microsoft today. They they're building mawr abstraction layers. Andy Jassy has said We don't wanna be in that abstraction layer business. We wanna have access to those, you know, fine grain primitives and eso at an AP level. So so we can move fast with the market. But but But so those air sort of different philosophies, John? >>Yeah. I mean, you know, people who know me know that I love Amazon. I think their product is superior at many levels on in its way that that has advantages again. They have a great sass and ecosystem. They don't really have their own SAS play, although they're trying to add some stuff on. I've been kind of critical of Microsoft in the past, but one thing I'm not critical of Microsoft, and people can get this wrong in the marketplace. Actually, in the journalism world and also in just some other analysts, Microsoft has always had large scale eso to say that Microsoft never had scale on that Amazon owned the monopoly on our franchise on scales wrong. Microsoft had scale from day one. Their business was always large scale global. They've always had infrastructure with MSN and their search and the distributive how they distribute browsers and multiple countries. Remember they had the lock on the operating system and the browser for until the government stepped in in 1997. And since 1997 Microsoft never ever not invested in infrastructure and scale. So that whole premise that they don't compete well there is wrong. And I think that chart demonstrates that there, in there in the hyper scale leadership category, hands down the question that I have. Is that there not as good and making that scale integrate in because they have that legacy cards. This is the classic innovator's dilemma. Clay Christensen, right? So I think they're doing a good job. I think their strategy sound. They're moving as fast as they can. But then you know they're not gonna come out and say We don't have the best cloud. Um, that's not a marketing strategy. Have to kind of hide in this and get better and then double down on where they're winning, which is. Clients are converting from their legacy at the speed of Microsoft, and they have a huge client base, So that's why they're stopping so high That's why they're so good. >>Well, I'm gonna I'm gonna give you a little preview. I talked to gear up your f Who's gonna come on today and you'll see I I asked him because the criticism of Microsoft is they're, you know, they're just good enough. And so I asked him, Are you better than good enough? You know, those are fighting words if you're inside of Microsoft, but so you'll you'll have to wait to see his answer. Now, if you guys, if you could bring that that graphic back up I wanted to get into the hybrid zone. You know where the field is. Always got >>some questions coming in on chat, Dave. So we'll get to those >>great Awesome. So just just real quick Here you see this hybrid zone, this the field is bunched up, and the other companies who have a large on Prem presence and have been forced to initiate some kind of coherent cloud strategy included. There is Michael Michael, multi Cloud, and Google's there, too, because they're far behind and they got to take a different approach than a W s. But as you can see, so there's some real progress here. VM ware cloud on AWS stands out, as does red hat open shift. You got VM Ware Cloud, which is a VCF Cloud Foundation, even Dell's cloud. And you'd expect HP with Green Lake to be picking up momentum in the future quarters. And you've got IBM and Oracle, which there you go with the innovator's dilemma. But there, at least in the cloud game, and we can talk about that. But so, John, you know, to your point, you've gotta have different strategies. You're you're not going to take out the big too. So you gotta play, connect your print your on Prem to your cloud, your hybrid multi cloud and try to create new opportunities and new value there. >>Yeah, I mean, I think we'll get to the question, but just that point. I think this Zeri Chen's come on the Cube many times. We're trying to get him to come on lunch today with Features startup, but he's always said on the Q B is a V C at Greylock great firm. Jerry's Cloud genius. He's been there, but he made a point many, many years ago. It's not a winner. Take all the winner. Take most, and the Big Three maybe put four or five in there. We'll take most of the markets here. But I think one of the things that people are missing and aren't talking about Dave is that there's going to be a second tier cloud, large scale model. I don't want to say tear to cloud. It's coming to sound like a sub sub cloud, but a new category of cloud on cloud, right? So meaning if you get a snowflake, did I think this is a tale? Sign to what's coming. VM Ware Cloud is a native has had huge success, mainly because Amazon is essentially enabling them to be successful. So I think is going to be a wave of a more of a channel model of indirect cloud build out where companies like the Cube, potentially for media or others, will build clouds on top of the cloud. So if Google, Microsoft and Amazon, whoever is the first one to really enable that okay, we'll do extremely well because that means you can compete with their scale and create differentiation on top. So what snowflake did is all on Amazon now. They kind of should go to azure because it's, you know, politically correct that have multiple clouds and distribution and business model shifts. But to get that kind of performance they just wrote on Amazon. So there's nothing wrong with that. Because you're getting paid is variable. It's cap ex op X nice categorization. So I think that's the way that we're watching. I think it's super valuable, I think will create some surprises in terms of who might come out of the woodwork on be a leader in a category. Well, >>your timing is perfect, John and we do have some questions in the chat. But before we get to that, I want to bring in Sargi Joe Hall, who's a contributor to to our community. Sargi. Can you hear us? All right, so we got, uh, while >>bringing in Sarpy. Let's go down from the questions. So the first question, Um, we'll still we'll get the student second. The first question. But Ronald ask, Can a vendor in 2021 exist without a hybrid cloud story? Well, story and capabilities. Yes, they could live with. They have to have a story. >>Well, And if they don't own a public cloud? No. No, they absolutely cannot. Uh hey, Sergey. How you doing, man? Good to see you. So, folks, let me let me bring in Sergeant Kohala. He's a He's a cloud architect. He's a practitioner, He's worked in as a technologist. And there's a frequent guest on on the Cube. Good to see you, my friend. Thanks for taking the time with us. >>And good to see you guys to >>us. So we were kind of riffing on the competitive landscape we got. We got so much to talk about this, like, it's a number of questions coming in. Um, but Sargi we wanna talk about you know, what's happening here in Cloud Land? Let's get right into it. I mean, what do you guys see? I mean, we got yesterday. New regime, new inaug inauguration. Do you do you expect public policy? You'll start with you Sargi to have What kind of effect do you think public policy will have on, you know, cloud generally specifically, the big tech companies, the tech lash. Is it gonna be more of the same? Or do you see a big difference coming? >>I think that there will be some changing narrative. I believe on that. is mainly, um, from the regulators side. A lot has happened in one month, right? So people, I think are losing faith in high tech in a certain way. I mean, it doesn't, uh, e think it matters with camp. You belong to left or right kind of thing. Right? But parlor getting booted out from Italy s. I think that was huge. Um, like, how do you know that if a cloud provider will not boot you out? Um, like, what is that line where you draw the line? What are the rules? I think that discussion has to take place. Another thing which has happened in the last 23 months is is the solar winds hack, right? So not us not sort acknowledging that I was Russia and then wish you watching it now, new administration might have a different sort of Boston on that. I think that's huge. I think public public private partnership in security arena will emerge this year. We have to address that. Yeah, I think it's not changing. Uh, >>economics economy >>will change gradually. You know, we're coming out off pandemic. The money is still cheap on debt will not be cheap. for long. I think m and a activity really will pick up. So those are my sort of high level, Uh, >>thank you. I wanna come back to them. And because there's a question that chat about him in a But, John, how do you see it? Do you think Amazon and Google on a slippery slope booting parlor off? I mean, how do they adjudicate between? Well, what's happening in parlor? Uh, anything could happen on clubhouse. Who knows? I mean, can you use a I to find that stuff? >>Well, that's I mean, the Amazons, right? Hiding right there bunkered in right now from that bad, bad situation. Because again, like people we said Amazon, these all three cloud players win in the current environment. Okay, Who wins with the U. S. With the way we are China, Russia, cloud players. Okay, let's face it, that's the reality. So if I wanted to reset the world stage, you know what better way than the, you know, change over the United States economy, put people out of work, make people scared, and then reset the entire global landscape and control all with cash? That's, you know, conspiracy theory. >>So you see the riches, you see the riches, get the rich, get richer. >>Yeah, well, that's well, that's that. That's kind of what's happening, right? So if you start getting into this idea that you can't actually have an app on site because the reason now I'm not gonna I don't know the particular parlor, but apparently there was a reason. But this is dangerous, right? So what? What that's gonna do is and whether it's right or wrong or not, whether political opinion is it means that they were essentially taken offline by people that weren't voted for that. Weren't that when people didn't vote for So that's not a democracy, right? So that's that's a different kind of regime. What it's also going to do is you also have this groundswell of decentralized thinking, right. So you have a whole wave of crypto and decentralized, um, cyber punks out there who want to decentralize it. So all of this stuff in January has created a huge counterculture, and I had predicted this so many times in the Cube. David counterculture is coming and and you already have this kind of counterculture between centralized and decentralized thinking and so I think the Amazon's move is dangerous at a fundamental level. Because if you can't get it, if you can't get buy domain names and you're completely blackballed by by organized players, that's a Mafia, in my opinion. So, uh, and that and it's also fuels the decentralized move because people say, Hey, if that could be done to them, it could be done to me. Just the fact that it could be done will promote a swing in the other direction. I >>mean, independent of of, you know, again, somebody said your political views. I mean Parlor would say, Hey, we're trying to clean this stuff up now. Maybe they didn't do it fast enough, but you think about how new parlor is. You think about the early days of Twitter and Facebook, so they were sort of at a disadvantage. Trying to >>have it was it was partly was what it was. It was a right wing stand up job of standing up something quick. Their security was terrible. If you look at me and Cory Quinn on be great to have him, and he did a great analysis on this, because if you look the lawsuit was just terrible. Security was just a half, asshole. >>Well, and the experience was horrible. I mean, it's not It was not a great app, but But, like you said, it was a quick stew. Hand up, you know, for an agenda. But nonetheless, you know, to start, get to your point earlier. It's like, you know, Are they gonna, you know, shut me down? If I say something that's, you know, out of line, or how do I control that? >>Yeah, I remember, like, 2019, we involved closing sort of remarks. I was there. I was saying that these companies are gonna be too big to fail. And also, they're too big for other nations to do business with. In a way, I think MNCs are running the show worldwide. They're running the government's. They are way. Have seen the proof of that in us this year. Late last year and this year, um, Twitter last night blocked Chinese Ambassador E in us. Um, from there, you know, platform last night and I was like, What? What's going on? So, like, we used to we used to say, like the Chinese company, tech companies are in bed with the Chinese government. Right. Remember that? And now and now, Actually, I think Chinese people can say the same thing about us companies. Uh, it's not a good thing. >>Well, let's >>get some question. >>Let's get some questions from the chat. Yeah. Thank you. One is on M and a subject you mentioned them in a Who do you see is possible emanate targets. I mean, I could throw a couple out there. Um, you know, some of the cdn players, maybe aka my You know, I like I like Hashi Corp. I think they're doing some really interesting things. What do you see? >>Nothing. Hashi Corp. And anybody who's doing things in the periphery is a candidate for many by the big guys, you know, by the hyper scholars and number two tier two or five hyper scholars. Right. Uh, that's why sales forces of the world and stuff like that. Um, some some companies, which I thought there will be a target, Sort of. I mean, they target they're getting too big, because off their evaluations, I think how she Corpuz one, um, >>and >>their bunch in the networking space. Uh, well, Tara, if I say the right that was acquired by at five this week, this week or last week, Actually, last week for $500 million. Um, I know they're founder. So, like I found that, Yeah, there's a lot going on on the on the network side on the anything to do with data. Uh, that those air too hard areas in the cloud arena >>data, data protection, John, any any anything you could adhere. >>And I think I mean, I think ej ej is gonna be where the gaps are. And I think m and a activity is gonna be where again, the bigger too big to fail would agree with you on that one. But we're gonna look at white Spaces and say a white space for Amazon is like a monster space for a start up. Right? So you're gonna have these huge white spaces opportunities, and I think it's gonna be an M and a opportunity big time start ups to get bought in. Given the speed on, I think you're gonna see it around databases and around some of these new service meshes and micro services. I mean, >>they there's a There's a question here, somebody's that dons asking why is Google who has the most pervasive tech infrastructure on the planet. Not at the same level of other to hyper scale is I'll give you my two cents is because it took him a long time to get their heads out of their ads. I wrote a piece of around that a while ago on they just they figured out how to learn the enterprise. I mean, John, you've made this point a number of times, but they just and I got a late start. >>Yeah, they're adding a lot of people. If you look at their who their hiring on the Google Cloud, they're adding a lot of enterprise chops in there. They realized this years ago, and we've talked to many of the top leaders, although Curry and hasn't yet sit down with us. Um, don't know what he's hiding or waiting for, but they're clearly not geared up to chicken Pete. You can see it with some some of the things that they're doing, but I mean competed the level of Amazon, but they have strength and they're playing their strength, but they definitely recognize that they didn't have the enterprise motions and people in the DNA and that David takes time people in the enterprise. It's not for the faint of heart. It's unique details that are different. You can't just, you know, swing the Google playbook and saying We're gonna home The enterprises are text grade. They knew that years ago. So I think you're going to see a good year for Google. I think you'll see a lot of change. Um, they got great people in there. On the product marketing side is Dev Solution Architects, and then the SRE model that they have perfected has been strong. And I think security is an area that they could really had a lot of value it. So, um always been a big fan of their huge network and all the intelligence they have that they could bring to bear on security. >>Yeah, I think Google's problem main problem that to actually there many, but one is that they don't They don't have the boots on the ground as compared to um, Microsoft, especially an Amazon actually had a similar problem, but they had a wide breath off their product portfolio. I always talk about feature proximity in cloud context, like if you're doing one thing. You wanna do another thing? And how do you go get that feature? Do you go to another cloud writer or it's right there where you are. So I think Amazon has the feature proximity and they also have, uh, aske Compared to Google, there's skills gravity. Larger people are trained on AWS. I think Google is trying there. So second problem Google is having is that that they're they're more focused on, I believe, um, on the data science part on their sort of skipping the cool components sort of off the cloud, if you will. The where the workloads needs, you know, basic stuff, right? That's like your compute storage and network. And that has to be well, talk through e think e think they will do good. >>Well, so later today, Paul Dillon sits down with Mids Avery of Google used to be in Oracle. He's with Google now, and he's gonna push him on on the numbers. You know, you're a distant third. Does that matter? And of course, you know, you're just a preview of it's gonna say, Well, no, we don't really pay attention to that stuff. But, John, you said something earlier that. I think Jerry Chen made this comment that, you know, Is it a winner? Take all? No, but it's a winner. Take a lot. You know the number two is going to get a big chunk of the pie. It appears that the markets big enough for three. But do you? Does Google have to really dramatically close the gap on be a much, much closer, you know, to the to the leaders in orderto to compete in this race? Or can they just kind of continue to bump along, siphon off the ad revenue? Put it out there? I mean, I >>definitely can compete. I think that's like Google's in it. Then it they're not. They're not caving, right? >>So But But I wrote I wrote recently that I thought they should even even put mawr oven emphasis on the cloud. I mean, maybe maybe they're already, you know, doubling down triple down. I just I think that is a multi trillion dollar, you know, future for the industry. And, you know, I think Google, believe it or not, could even do more. Now. Maybe there's just so much you could dio. >>There's a lot of challenges with these company, especially Google. They're in Silicon Valley. We have a big Social Justice warrior mentality. Um, there's a big debate going on the in the back channels of the tech scene here, and that is that if you want to be successful in cloud, you have to have a good edge strategy, and that involves surveillance, use of data and pushing the privacy limits. Right? So you know, Google has people within the country that will protest contract because AI is being used for war. Yet we have the most unstable geopolitical seen that I've ever witnessed in my lifetime going on right now. So, um, don't >>you think that's what happened with parlor? I mean, Rob Hope said, Hey, bar is pretty high to kick somebody off your platform. The parlor went over the line, but I would also think that a lot of the employees, whether it's Google AWS as well, said, Hey, why are we supporting you know this and so to your point about social justice, I mean, that's not something. That >>parlor was not just social justice. They were trying to throw the government. That's Rob e. I think they were in there to get selfies and being protesters. But apparently there was evidence from what I heard in some of these clubhouse, uh, private chats. Waas. There was overwhelming evidence on parlor. >>Yeah, but my point is that the employee backlash was also a factor. That's that's all I'm saying. >>Well, we have Google is your Google and you have employees to say we will boycott and walk out if you bid on that jet I contract for instance, right, But Microsoft one from maybe >>so. I mean, that's well, >>I think I think Tom Poole's making a really good point here, which is a Google is an alternative. Thio aws. The last Google cloud next that we were asked at they had is all virtual issue. But I saw a lot of I T practitioners in the audience looking around for an alternative to a W s just seeing, though, we could talk about Mano Cloud or Multi Cloud, and Andy Jassy has his his narrative around, and he's true when somebody goes multiple clouds, they put you know most of their eggs in one basket. Nonetheless, I think you know, Google's got a lot of people interested in, particularly in the analytic side, um, in in an alternative, hedging their bets eso and particularly use cases, so they should be able to do so. I guess my the bottom line here is the markets big enough to have Really? You don't have to be the Jack Welch. I gotta be number one and number two in the market. Is that the conclusion here? >>I think so. But the data gravity and the skills gravity are playing against them. Another problem, which I didn't want a couple of earlier was Google Eyes is that they have to boot out AWS wherever they go. Right? That is a huge challenge. Um, most off the most off the Fortune 2000 companies are already using AWS in one way or another. Right? So they are the multi cloud kind of player. Another one, you know, and just pure purely somebody going 200% Google Cloud. Uh, those cases are kind of pure, if you will. >>I think it's gonna be absolutely multi cloud. I think it's gonna be a time where you looked at the marketplace and you're gonna think in terms of disaster recovery, model of cloud or just fault tolerant capabilities or, you know, look at the parlor, the next parlor. Or what if Amazon wakes up one day and said, Hey, I don't like the cubes commentary on their virtual events, so shut them down. We should have a fail over to Google Cloud should Microsoft and Option. And one of people in Microsoft ecosystem wants to buy services from us. We have toe kind of co locate there. So these are all open questions that are gonna be the that will become certain pretty quickly, which is, you know, can a company diversify their computing An i t. In a way that works. And I think the momentum around Cooper Netease you're seeing as a great connective tissue between, you know, having applications work between clouds. Right? Well, directionally correct, in my opinion, because if I'm a company, why wouldn't I wanna have choice? So >>let's talk about this. The data is mixed on that. I'll share some data, meaty our data with you. About half the companies will say Yeah, we're spreading the wealth around to multiple clouds. Okay, That's one thing will come back to that. About the other half were saying, Yeah, we're predominantly mono cloud we didn't have. The resource is. But what I think going forward is that that what multi cloud really becomes. And I think John, you mentioned Snowflake before. I think that's an indicator of what what true multi cloud is going to look like. And what Snowflake is doing is they're building abstraction, layer across clouds. Ed Walsh would say, I'm standing on the shoulders of Giants, so they're basically following points of presence around the globe and building their own cloud. They call it a data cloud with a global mesh. We'll hear more about that later today, but you sign on to that cloud. So they're saying, Hey, we're gonna build value because so many of Amazon's not gonna build that abstraction layer across multi clouds, at least not in the near term. So that's a really opportunity for >>people. I mean, I don't want to sound like I'm dating myself, but you know the date ourselves, David. I remember back in the eighties, when you had open systems movement, right? The part of the whole Revolution OS I open systems interconnect model. At that time, the networking stacks for S N A. For IBM, decadent for deck we all know that was a proprietary stack and then incomes TCP I p Now os I never really happened on all seven layers, but the bottom layers standardized. Okay, that was huge. So I think if you look at a W s or some of the comments in the chat AWS is could be the s n a. Depends how you're looking at it, right? And you could say they're open. But in a way, they want more Amazon. So Amazon's not out there saying we love multi cloud. Why would they promote multi cloud? They are a one of the clouds they want. >>That's interesting, John. And then subject is a cloud architect. I mean, it's it is not trivial to make You're a data cloud. If you're snowflake, work on AWS work on Google. Work on Azure. Be seamless. I mean, certainly the marketing says that, but technically, that's not trivial. You know, there are latent see issues. Uh, you know, So that's gonna take a while to develop. What? Do your thoughts there? >>I think that multi cloud for for same workload and multi cloud for different workloads are two different things. Like we usually put multiple er in one bucket, right? So I think you're right. If you're trying to do multi cloud for the same workload, that's it. That's Ah, complex, uh, problem to solve architecturally, right. You have to have a common ap ice and common, you know, control playing, if you will. And we don't have that yet, and then we will not have that for a for at least one other couple of years. So, uh, if you if you want to do that, then you have to go to the lower, lowest common denominator in technical sort of stock, if you will. And then you're not leveraging the best of the breed technology off their from different vendors, right? I believe that's a hard problem to solve. And in another thing, is that that that I always say this? I'm always on the death side, you know, developer side, I think, uh, two deaths. Public cloud is a proxy for innovative culture. Right. So there's a catch phrase I have come up with today during shower eso. I think that is true. And then people who are companies who use the best of the breed technologies, they can attract the these developers and developers are the Mazen's off This digital sort of empires, amazingly, is happening there. Right there they are the Mazen's right. They head on the bricks. I think if you don't appeal to developers, if you don't but extensive for, like, force behind educating the market, you can't you can't >>put off. It's the same game Stepping story was seeing some check comments. Uh, guard. She's, uh, linked in friend of mine. She said, Microsoft, If you go back and look at the Microsoft early days to the developer Point they were, they made their phones with developers. They were a software company s Oh, hey, >>forget developers, developers, developers. >>You were if you were in the developer ecosystem, you were treated his gold. You were part of the family. If you were outside that world, you were competitors, and that was ruthless times back then. But they again they had. That was where it was today. Look at where the software defined businesses and starve it, saying it's all about being developer lead in this new way to program, right? So the cloud next Gen Cloud is going to look a lot like next Gen Developer and all the different tools and techniques they're gonna change. So I think, yes, this kind of developer ecosystem will be harnessed, and that's the power source. It's just gonna look different. So, >>Justin, Justin in the chat has a comment. I just want to answer the question about elastic thoughts on elastic. Um, I tell you, elastic has momentum uh, doing doing very well in the market place. Thea Elk Stack is a great alternative that people are looking thio relative to Splunk. Who people complain about the pricing. Of course it's plunks got the easy button, but it is getting increasingly expensive. The problem with elk stack is you know, it's open source. It gets complicated. You got a shard, the databases you gotta manage. It s Oh, that's what Ed Walsh's company chaos searches is all about. But elastic has some riel mo mentum in the marketplace right now. >>Yeah, you know, other things that coming on the chat understands what I was saying about the open systems is kubernetes. I always felt was that is a bad metaphor. But they're with me. That was the TCP I peep In this modern era, C t c p I p created that that the disruptor to the S N A s and the network protocols that were proprietary. So what KUBERNETES is doing is creating a connective tissue between clouds and letting the open source community fill in the gaps in the middle, where kind of way kind of probably a bad analogy. But that's where the disruption is. And if you look at what's happened since Kubernetes was put out there, what it's become kind of de facto and standard in the sense that everyone's rallying around it. Same exact thing happened with TCP was people were trashing it. It is terrible, you know it's not. Of course they were trashed because it was open. So I find that to be very interesting. >>Yeah, that's a good >>analogy. E. Thinks the R C a cable. I used the R C. A cable analogy like the VCRs. When they started, they, every VC had had their own cable, and they will work on Lee with that sort of plan of TV and the R C. A cable came and then now you can put any TV with any VCR, and the VCR industry took off. There's so many examples out there around, uh, standards And how standards can, you know, flair that fire, if you will, on dio for an industry to go sort of wild. And another trend guys I'm seeing is that from the consumer side. And let's talk a little bit on the consuming side. Um, is that the The difference wouldn't be to B and B to C is blood blurred because even the physical products are connected to the end user Like my door lock, the August door lock I didn't just put got get the door lock and forget about that. Like I I value the expedience it gives me or problems that gives me on daily basis. So I'm close to that vendor, right? So So the middle men, uh, middle people are getting removed from from the producer off the technology or the product to the consumer. Even even the sort of big grocery players they have their APs now, uh, how do you buy stuff and how it's delivered and all that stuff that experience matters in that context, I think, um, having, uh, to be able to sell to thes enterprises from the Cloud writer Breuder's. They have to have these case studies or all these sample sort off reference architectures and stuff like that. I think whoever has that mawr pushed that way, they are doing better like that. Amazon is Amazon. Because of that reason, I think they have lot off sort off use cases about on top of them. And they themselves do retail like crazy. Right? So and other things at all s. So I think that's a big trend. >>Great. Great points are being one of things. There's a question in there about from, uh, Yaden. Who says, uh, I like the developer Lead cloud movement, But what is the criticality of the executive audience when educating the marketplace? Um, this comes up a lot in some of my conversations around automation. So automation has been a big wave to automate this automate everything. And then everything is a service has become kind of kind of the the executive suite. Kind of like conversation we need to make everything is a service in our business. You seeing people move to that cloud model. Okay, so the executives think everything is a services business strategy, which it is on some level, but then, when they say Take that hill, do it. Developers. It's not that easy. And this is where a lot of our cube conversations over the past few months have been, especially during the cova with cute virtual. This has come up a lot, Dave this idea, and start being around. It's easy to say everything is a service but will implement it. It's really hard, and I think that's where the developer lead Connection is where the executive have to understand that in order to just say it and do it are two different things. That digital transformation. That's a big part of it. So I think that you're gonna see a lot of education this year around what it means to actually do that and how to implement it. >>I'd like to comment on the as a service and subject. Get your take on it. I mean, I think you're seeing, for instance, with HP Green Lake, Dell's come out with Apex. You know IBM as its utility model. These companies were basically taking a page out of what I what I would call a flawed SAS model. If you look at the SAS players, whether it's salesforce or workday, service now s a P oracle. These models are They're really They're not cloud pricing models. They're they're basically you got to commit to a term one year, two year, three year. We'll give you a discount if you commit to the longer term. But you're locked in on you. You probably pay upfront. Or maybe you pay quarterly. That's not a cloud pricing model. And that's why I mean, they're flawed. You're seeing companies like Data Dog, for example. Snowflake is another one, and they're beginning to price on a consumption basis. And that is, I think, one of the big changes that we're going to see this decade is that true cloud? You know, pay by the drink pricing model and to your point, john toe, actually implement. That is, you're gonna need a whole new layer across your company on it is quite complicated it not even to mention how you compensate salespeople, etcetera. The a p. I s of your product. I mean, it is that, but that is a big sea change that I see coming. Subject your >>thoughts. Yeah, I think like you couldn't see it. And like some things for this big tech exacts are hidden in the plain >>sight, right? >>They don't see it. They they have blind spots, like Look at that. Look at Amazon. They went from Melissa and 200 millisecond building on several s, Right, Right. And then here you are, like you're saying, pay us for the whole year. If you don't use the cloud, you lose it or will pay by month. Poor user and all that stuff like that that those a role models, I think these players will be forced to use that term pricing like poor minute or for a second, poor user. That way, I think the Salesforce moral is hybrid. They're struggling in a way. I think they're trying to bring the platform by doing, you know, acquisition after acquisition to be a platform for other people to build on top off. But they're having a little trouble there because because off there, such pricing and little closeness, if you will. And, uh, again, I'm coming, going, going back to developers like, if you are not appealing to developers who are writing the latest and greatest code and it is open enough, by the way open and open source are two different things that we all know that. So if your platform is not open enough, you will have you know, some problems in closing the deals. >>E. I want to just bring up a question on chat around from Justin didn't fitness. Who says can you touch on the vertical clouds? Has your offering this and great question Great CP announcing Retail cloud inventions IBM Athena Okay, I'm a huge on this point because I think this I'm not saying this for years. Cloud computing is about horizontal scalability and vertical specialization, and that's absolutely clear, and you see all the clouds doing it. The vertical rollouts is where the high fidelity data is, and with machine learning and AI efforts coming out, that's accelerated benefits. There you have tow, have the vertical focus. I think it's super smart that clouds will have some sort of vertical engine, if you will in the clouds and build on top of a control playing. Whether that's data or whatever, this is clearly the winning formula. If you look at all the successful kind of ai implementations, the ones that have access to the most data will get the most value. So, um if you're gonna have a data driven cloud you have tow, have this vertical feeling, Um, in terms of verticals, the data on DSO I think that's super important again, just generally is a strategy. I think Google doing a retail about a super smart because their whole pitches were not Amazon on. Some people say we're not Google, depending on where you look at. So every of these big players, they have dominance in the areas, and that's scarce. Companies and some companies will never go to Amazon for that reason. Or some people never go to Google for other reasons. I know people who are in the ad tech. This is a black and we're not. We're not going to Google. So again, it is what it is. But this idea of vertical specialization relevant in super >>forts, I want to bring to point out to sessions that are going on today on great points. I'm glad you asked that question. One is Alan. As he kicks off at 1 p.m. Eastern time in the transformation track, he's gonna talk a lot about the coming power of ecosystems and and we've talked about this a lot. That that that to compete with Amazon, Google Azure, you've gotta have some kind of specialization and vertical specialization is a good one. But of course, you see in the big Big three also get into that. But so he's talking at one o'clock and then it at 3 36 PM You know this times are strange, but e can explain that later Hillary Hunter is talking about she's the CTO IBM I B M's ah Financial Cloud, which is another really good example of specifying vertical requirements and serving. You know, an audience subject. I think you have some thoughts on this. >>Actually, I lost my thought. E >>think the other piece of that is data. I mean, to the extent that you could build an ecosystem coming back to Alan Nancy's premise around data that >>billions of dollars in >>their day there's billions of dollars and that's the title of the session. But we did the trillion dollar baby post with Jazzy and said Cloud is gonna be a trillion dollars right? >>And and the point of Alan Answer session is he's thinking from an individual firm. Forget the millions that you're gonna save shifting to the cloud on cost. There's billions in ecosystems and operating models. That's >>absolutely the business value. Now going back to my half stack full stack developer, is the business value. I've been talking about this on the clubhouses a lot this past month is for the entrepreneurs out there the the activity in the business value. That's the new the new intellectual property is the business logic, right? So if you could see innovations in how work streams and workflow is gonna be a configured differently, you have now large scale cloud specialization with data, you can move quickly and take territory. That's much different scenario than a decade ago, >>at the point I was trying to make earlier was which I know I remember, is that that having the horizontal sort of features is very important, as compared to having vertical focus. You know, you're you're more healthcare focused like you. You have that sort of needs, if you will, and you and our auto or financials and stuff like that. What Google is trying to do, I think that's it. That's a good thing. Do cook up the reference architectures, but it's a bad thing in a way that you drive drive away some developers who are most of the developers at 80 plus percent, developers are horizontal like you. Look at the look into the psyche of a developer like you move from company to company. And only few developers will say I will stay only in health care, right? So I will only stay in order or something of that, right? So they you have to have these horizontal capabilities which can be applied anywhere on then. On top >>of that, I think that's true. Sorry, but I'll take a little bit different. Take on that. I would say yes, that's true. But remember, remember the old school application developer Someone was just called in Application developer. All they did was develop applications, right? They pick the framework, they did it right? So I think we're going to see more of that is just now mawr of Under the Covers developers. You've got mawr suffer defined networking and software, defined storage servers and cloud kubernetes. And it's kind of like under the hood. But you got your, you know, classic application developer. I think you're gonna see him. A lot of that come back in a way that's like I don't care about anything else. And that's the promise of cloud infrastructure is code. So I think this both. >>Hey, I worked. >>I worked at people solved and and I still today I say into into this context, I say E r P s are the ultimate low code. No code sort of thing is right. And what the problem is, they couldn't evolve. They couldn't make it. Lightweight, right? Eso um I used to write applications with drag and drop, you know, stuff. Right? But But I was miserable as a developer. I didn't Didn't want to be in the applications division off PeopleSoft. I wanted to be on the tools division. There were two divisions in most of these big companies ASAP. Oracle. Uh, like companies that divisions right? One is the cooking up the tools. One is cooking up the applications. The basketball was always gonna go to the tooling. Hey, >>guys, I'm sorry. We're almost out of time. I always wanted to t some of the sections of the day. First of all, we got Holder Mueller coming on at lunch for a power half hour. Um, you'll you'll notice when you go back to the home page. You'll notice that calendar, that linear clock that we talked about that start times are kind of weird like, for instance, an appendix coming on at 1 24. And that's because these air prerecorded assets and rather than having a bunch of dead air, we're just streaming one to the other. So so she's gonna talk about people, process and technology. We got Kathy Southwick, whose uh, Silicon Valley CEO Dan Sheehan was the CEO of Dunkin Brands and and he was actually the c 00 So it's C A CEO connecting the dots to the business. Daniel Dienes is the CEO of you I path. He's coming on a 2:47 p.m. East Coast time one of the hottest companies, probably the fastest growing software company in history. We got a guy from Bain coming on Dave Humphrey, who invested $750 million in Nutanix. He'll explain why and then, ironically, Dheeraj Pandey stew, Minuteman. Our friend interviewed him. That's 3 35. 1 of the sessions are most excited about today is John McD agony at 403 p. M. East Coast time, she's gonna talk about how to fix broken data architectures, really forward thinking stuff. And then that's the So that's the transformation track on the future of cloud track. We start off with the Big Three Milan Thompson Bukovec. At one oclock, she runs a W s storage business. Then I mentioned gig therapy wrath at 1. 30. He runs Azure is analytics. Business is awesome. Paul Dillon then talks about, um, IDs Avery at 1 59. And then our friends to, um, talks about interview Simon Crosby. I think I think that's it. I think we're going on to our next session. All right, so keep it right there. Thanks for watching the Cuban cloud. Uh huh.

>>from around the globe. It's the Cube presenting Cuban cloud brought to you by silicon angle. Welcome to the cubes event. Virtual event. Cuban Cloud. I'm John for your host. We're here talking to all the thought leaders getting all the stories around Cloud What's going on this year and next today, Tomorrow and the future. We gotta featured startup here. Jonah Clipper, who is the CEO and founder of Stack Hawks. Developing security software for developers to have them put security baked in from the beginning. Johnny, thanks for coming on and being featured. Start up here is part of our Cuban cloud. Thanks for joining. >>Thanks so much for having me, John. >>So one of our themes this year is obviously Cloud natives gone mainstream. The pandemic has shown that. You know, a lot of things have to be modern. Modern applications, the emerald all they talked about modern applications. Infrastructure is code. Reinvent, um is here. They're talking about the next gen enterprise. Their public cloud. Now you've got hybrid cloud. Now you've got multi cloud. But for developers, you just wanna be building security baked in and they don't care where the infrastructure is. So this is the big trend. Like to get your thoughts on that. But before we jump in, tell us about Stack Hawk What you guys do your founded in 2019. Tell us about your company and what Your mission is >>Awesome. Yeah, our mission is to put application security in the hands of software developers so that they can find and fix upset books before they deployed a production. And we do that through a dynamic application scanning capability. Uh, that's deployable via docker, so engineers can run it locally. They can run it in C I C. D. On every single PR or merge and find bugs in the process of delivering software rather than after it's been production. >>So everyone's talking about shift left, shift left for >>security. What does >>that mean? Uh, these days. And what if some of the hurdles that people are struggling with because all I hear is shift left shift left from, like I mean, what does What does that actually mean? Now, Can you take us through your >>view? Yes, and we use the phrase a lot, and I and I know it can feel a little confusing or overused. Probably. Um, When I think of shift left, I think of that Mobius that we all look at all of the time, Um, and how we deliver and, like, plan, write code, deliver software and then manage it. Monitor it right like that entire Dev ops workflow. And today, when we think about where security lives, it either is a blocker to deploying production. Or most commonly, it lives long after code has been deployed to production. And there's a security team constantly playing catch up, trying to ensure that the development team whose job is to deliver value to their customers quickly, right, deploy as fast as we can, as many great customer facing features, um there, then, looking at it months after software has been deployed and then hurrying and trying to assess where the bugs are. And, um, trying to get that information back to software developers so that they can fix those issues. Shifting left to me means software engineers are finding those bugs as their writing code or in the CIA CD pipeline long before code has been deployed to production. >>And so you guys attack that problem right there so they don't have to ship the code and then come back and fix it again. Or where we forgot what the hell is going on. That point in time some Q 18 gets it. Is that the kind of problem that that's out there? Is that the main pain point? >>Yeah, absolutely. I mean a lot of the way software, specifically software like ours and dynamic applications scanning works is a security team or a pen tester. Maybe, is assessing applications for security vulnerability these, um, veteran prod that's normally where these tools are run and they throw them back over the wall, you know, interrupting sprints and interrupting the developer workflow. So there's a ton of context switching, which is super expensive, and it's very disruptive to the business to not know about those issues before they're in prod. And they're also higher risk issues because they're in fraud s. So you have to be able to see a >>wrong flywheel. Basically, it's like you have a penetration test is okay. I want to do ship this app. Pen test comes back, okay? We gotta fix the bug, interrupts the cycle. They're not coding there in fire drill mode. And then it's a chaotic death spiral at that point, >>right? Or nothing gets done. God, how did >>you What was the vision? How did you get here? What? How did you start? The company's woke up one morning. Seven started a security company. And how did what was the journey? What got you here? >>Sure. Thanks. I've been building software for software engineers since 2010. So the first startup I worked for was very much about making it easy for software engineers to deploy and manage applications super efficiently on any cloud provider. And we did programmatic updates to those applications and could even move them from cloud to cloud. And so that was sort of cutting my teeth and technology and really understanding the developer experience. Then I was a VP of product at a company called Victor Ops. We were purchased by spunk in 2018. But that product was really about empowering software engineers to manage their own code in production. So instead of having a network operations center right who sat in front of screens and was waiting for something to go wrong and would then just end up dialing there, you know, just this middle man trying to dial to find the person who wrote the software so that they can fix it. We made that way more efficient and could just route issues to software engineers. And so that was a very dev ops focused company in terms of, um, improving meantime to know and meantime to resolve by putting up time in the hands of software engineers where it didn't used to live there before it lived in a more traditional operations type of role. But we deploy software way too quickly and way too frequently to production to assume that another human can just sit there and know how to fix it, because the problems aren't repeatable, right? So So I've been living in the space for a long time, and I would go to conferences and people would say, Well, I love for, you know, we have these digital transformation initiatives and I'm in the security team and I don't feel like I'm part of this. I don't know. I don't know how to insert myself in this process. And so I started doing a lot of research about, um, how we can shift this left. And I was actually doing some research about penetration testing at the time, Um, and found just a ton of opportunity, a ton of problems, right that exist with security and how we do it today. So I really think of this company as a Dev Ops first Company, and it just so happens to be that we're taking security, and we're making it, um, just part of the the application testing framework, right? We're testing for security bugs, just like we would test for any other kind of bucks. >>That's an awesome vision of other great great history there. And thanks for sharing that. I think one of the things that I think this ties into that we have been reporting aggressively on is the movement to Dev Stack Up, Dev, Ops Dev SEC Ops. And you know, just doing an interview with the guy who stood up space force and big space conversation and were essentially riffing on the idea that they have to get modern. It's government, but they got to do more commercial. They're using open source. But the key thing was everything. Software defined. And so, as you move into suffer defined, then they say we want security baked in from the beginning and This is the big kind of like sea level conversation. Bake it in from the beginning, but it's not that easy. And this is where I think it's interesting where you start to think, uh, Dev ops for security because security is broken. So this is a huge trend. It sounds easy to say it baked security in whether it's an i o T edge or multi cloud. There's >>a lot >>of work there. What should people understand when they hear that kind of platitude of? I just baked security and it's really easy. It's not. It's not trivial. What's your thoughts on >>that? It isn't trivial. And in my opinion, there aren't a lot of tools on the market that actually make that very easy. You know, there are some you've had sneak on this program and they're doing an excellent job, really speaking to the developer and being part of that modern software delivery workflow. Um, but because a lot of tools were built to run in production, it makes it really difficult to bake them in from the beginning. And so, you know, I think there are several goals here. One is you make the tooling work so that it works for the software engineer and their workflow. And and there's some different values that we have to consider when its foreign engineer versus when it's for a security person, right? Limit the noise, make it as easy as possible. Um, make sure that we only show the most critical things that are worth an engineer. Stopping what they're doing in terms of building business value and going back and fixing that bugs and then create a way to discuss in triage other issues later outside of the development. Workflow. So you really have to have a lot of empathy and understanding for how software is built and how software engineers behave, I think, in order to get this right. So it's not easy. Um, but we're here and other tools air here. Thio support companies in doing that. >>What's the competitive strategy for you guys going forward? Because there's a big sea change. Now I see an inflection point. Obviously, Cove it highlights. It's not the main reason, but Cloud native has proven it's now gone mainstream kubernetes. You're seeing the big movement there. You're seeing scale be a huge issue. Software defined operations are now being discussed. So I think it's It's a simple moment for this kind of solution. How are you guys going to compete? What's what's the winning strategy? How are you guys gonna compete to win? >>Yeah, so there's two pieces to that one is getting the technology right and making sure that it is a product that developers love. And we put a ton of effort into that because when a software engineer says, Hey, I'd love to use the security product, right? CSOs around the world are going to be like, Yes, please. Did a software engineer just ask me, You have the security product. Thank you, Right. We're here to make it so easy for them and get the tech right. And then the other piece, in terms of being competitive, is the business model. There were something like, I don't You would know better than me, but I think the data point I last saw was like 1300 venture backed security companies since 2012 focused on selling to see SOS and Fortune 2000 companies. It is a mess. It's so noisy, nobody can figure out what anybody actually does. What we have done is said no, we're going to take a modern business model approach to security. So you know, it's a SAS platform that makes it super easy for a software engineer or anybody on the team to try and buy the software. So 14 day trial. You don't have to talk to anybody if you don't want Thio Awesome support to make sure that people can get on boarded and with our on boarding flow, we've seen that our customers go from signing up to first successful scan of their platform or whatever app they chose to scan in a knave ridge of about 10 minutes. The fastest is eight, right? So it's about delivering value to our customers really quickly. And there aren't many companies insecurity on the market today. That do that? >>You know, you mentioned pen test earlier. I I hear that word. Nice shit. And, like, pen test penetration test, as it's called, um, Sock reports. I mean, these are things that are kind of like I got to do that again. I know these people are doing things that are gonna be automated, but one of the things that cloud native has proven as be killer app is integrations because when you build a modern app, it has to integrate with someone else. So there you need these kind of pen tests. You gotta have this kind of code review. And as code, um, is part of, say, a purpose built device where it's an I o T. Edge updates have toe happen. So you need mawr automation. You need more scale around both updating software to, ah, purpose built device or for integration. What's your thoughts in reaction to that? Because this is a riel software challenge from a customer standpoint, because there are too many tools out there and every see so that I talk to says, I just want to get rid of half the tools consolidate down around my clouds that I'm working through my environment and b'more developer oriented, not just purchasing stuff. So you have all this going on? What's your reaction to that? You got the you know, the integration and you've got the software updates on purpose built devices. >>Yeah, I mean, we I make a joke a little bit. That security land is like, you know, acronyms. Dio there are so many types of security that you could choose to implement. And they all have a home and different use cases that are certainly valuable toe organizations. Um, what we like to focus on and what we think is interesting and dynamic application scanning is because it's been hard toe automate dynamic application for especially for modern applications. I think a lot of companies have ignored theon pertuan ity Thio really invest in this capability and what's cool about dynamic. And you were mentioning pen testing. Is that because it's actively attacking your app? It when you get a successful test, it's like a It's like a successful negative test. It's that the test executed, which means that bug is present in your code. And so there's a lot less false positives than in other types of scanning or assessment technologies. Not to say there isn't a home for them. There's a lot of we could we could spend a whole hour kind of breaking down all the different types of bugs that the different tools confined. Um, but we think that if you want to get started developer first, you know there's a lot of great technologies. Pick a couple or one right pick stack hawk pick, sneak and just get started and put it in your developer workflow. So integrations are super important. Um, we have integrations with every C I C. D provider, making it easy to scan your code on every merge or release. And then we also have workflow integrations for software engineers associated with where they want to be doing work and how they want to be interrupted or told about an issue. So, you know, we're very early to market, but right out of the gate, we made sure that we had a slack integration so that scans are running. Or as we're finding new things, it's populating in a specific slack channel for those engineers who work on that part of the app and you're a integration right. If we find issues, we can quickly make tickets and route them and make sure that the right people are working on those issues. Eso That's how I think about sort of the integration piece and just getting started. It's like you can't tackle the whole like every accurate, um, at once like pick something that helps you get started and then continue to build out your program, as you have success. >>A lot of these tools can they get in the hands of developers, and then you kind of win their trust by having functionality. Uh, certainly a winning strategy we've seen. You know, Splunk, you mentioned where you worked for Data Dog and very other tools out there just get started easily. If it's good, it will be used. So I love that strategy. Question. I wanna ask you mentioned Dr earlier. Um, they got a real popular environment, but that speaks to the open source area. How do you see the role of open source playing with you guys? Is that gonna be part of your community outreach? Does the feed into the product? Could you share your vision on how stack hawks engaging and playing an open source? >>Yeah, absolutely. Um So when we started this company, my co founders and I, we sat down and said here, What are the problems? Okay, the world doesn't need a better scanner, right? If you walk the floor of, ah, security, uh, conference. It's like our tool finds a million things and someone else is. My tool finds a million and five things. Right, And that's how they're competing on value. It's really about making it easy to use and put in the pipeline. So we decided not to roll. Our own scanner were based on an open source capability called Zap the Set Attack Proxy. Uh, it is the most the world's most downloaded application scanner. And, uh, actually we just hired the founder of Zap to join the Stack Hawk team, and we're really excited to continue to invest in the open source community. There is a ton of opportunity to grow and sort of galvanize that community. And then the work that we do with our customers and the feedback that we get about the bugs we find if there, ah, false positive or this one's commonly risk accepted, we can go back to the community, which were already doing and saying, Hey, ditch this rule, Nobody likes it or we need to improve this test. Um, so it's a really nice relationship that we have, and we are looking forward to continuing to grow that >>great stuff. You guys are hot. Start of love. The software on security angle again def sec. Cox is gonna be It's gonna be really popular. Can you talk about some of the customer success is What's the What's the feedback from customers? Can you share some of the use cases that you guys are participating in where you're winning? You mentioned developers love it and try It can just give us a couple of use cases and examples. >>Yeah. Ah, few things. Um ah, lot of our customers are already selling on the notion. Like before we even went to G A right. They told all of their customers that they scan for security bugs with every single release. So in really critical, uh, industry is like fintech, right. It's really important that their customers trust that they're taking security seriously, which everybody says they dio. But they show it to their customers by saying here, every single deploy I can show you if there were any new security bugs released with that deploy. So that's really awesome. Other things We've heard our, uh, people being able to deploy really quickly thio the Salesforce marketplace, right? Like if they have toe have a scan to prove that that they can sell on Salesforce, they do that really rapidly. Eso all of that's going really well with our customers. >>How would I wanna How would I be a customer if I was interested in, um, using Stack Hawks say we have some software we wanna stand up, and, uh, it's super grade. And so Amazon Microsoft Marketplace Stairs Force They'll have requirements or say I want to do a deal with an integration they don't want. They want to make sure there's no nothing wrong with the code. This seems to be a common use case. How doe I if I was a customer, get involved or just download software? Um, what's the What's the procurement? What's the consumption side of it looked like, >>Yeah, you just go to Stockholm dot com and you create an account. If you'd like to get started that way so you can have a 14 day free trial. We have extremely extensive documentation, so it's really easy to get set up that way. You should have some familiarity. Or grab a software engineer who has familiarity with a couple of things. So one is how to use Docker, right? So Docker is, ah, deployment mechanism for the scanner. We do that so you can run it anywhere that you would like to, and we don't have to do things like pierce firewalls or other protective measures that you've instrumented on your production environment. You just run it, um, wherever you like in your system. So locally, C I c d So docker is an important thing to understand the way we configure our scanner is through a, um, a file. So if you are getting a scan today, either your security team is doing it or you have a pen tester doing it. Um, the whole like getting ready for that engagement takes a lot of time because the people who are running the tests don't know how the software was built. So the way we think about this is, just ask them. So you just fill out a Yamil file with parameters that tell the scanner what to dio tell it how to authenticate and not log out. Um, feed us an A p. I speak if you want, so weaken super efficiently, scan your app and you can be up and running really quickly, and then that's it. You can work with our team at any time if you need help, and then we have a really efficient procurement process >>in my experience some of the pen tests of firms out there, is it? It's like the house keeping seal of approval. You get it once and then you gotta go back again. Software change, new things come in. And it's like, Wait a minute, what's the new pen test? And then you to write a check or engaged to have enough meeting? I mean, this is the problem. I mean, too many meetings. Do you >>guys solve that problem? Do >>you solve that problem? >>We solve a piece of that problem. So I think you know, part of how I talk about our company is this idea that we live in a world where we deploy software every single day. Yet it seems reasonable that once a year or twice a year, we go get a pen test where human runs readily available, open source software on our product and gives us a like, quite literal. Pdf of issues on. It's like this is so intellectually dishonest, like we deploy all of the time. So here's the thing. Pen tests are important and everybody should do them. But that should not be the introduction to these issues that are also easy to automate and find in your system. So the way we think about how we work with pen testers is, um, run, stack hawk or zapped right in an automated fashion on your system, and then give that, give the configuration and give the most recent results to your pen tester and say, Go find the hard stuff. You shouldn't be cutting checks for $30,000 to a pen tester or something that you could easily meet in your flare up. Klein. You could write the checks for finding finding the hard stuff that's much more difficult to automate. >>I totally agree. Final question. Business model Once I get in, is it a service software and services? A monthly fee? How do you guys make money? >>Yep, it is software as a service, it is. A monthly fee were early to market. So I'm not going to pretend that we have perfectly cracked the pricing. Um, but the way that we think about this is this is a team product for software engineers and for, you know, informed constituents, right? You want a product person in the product. You want a security person in the product? Um, and we also want to incent you to scan your APS And the most modern fashion, which is scanning the smallest amount of http that lives in your app, like in a micro services architecture because it makes a lot easier, is easy to isolate the problems where they live and to fix those issues really quickly. So we bundle team and for a UPS and then we scale within, uh, companies as they add more team. So pen users. 10 APS is 3 99 a month. And as you add software engineers and more applications, we scale within your company that way. >>Awesome. So if you're successful, you pay more, but doesn't matter. You already succeeded, and that's the benefit of by As you go Great stuff. Final question. One more thing. Your vision of the future. What are the biggest challenges you see in the next 24 months? Plus beyond, um, that you're trying to attack? That's a preferred future that you see evolving. What's the vision? >>Yeah, you've touched on this a couple of times in this interview with uh being remote, and the way that we need to build software already has been modernizing, and I feel like every company has a digital transformation initiative, but it has toe happen faster. And along with that, we have to figure out how Thio protect and secure these Moderna Gail. The most important thing that we do the hearts and minds of our support engineers and make it really easy for them to use security capabilities and then continue to growth in the organization. And that's not an easy thing tied off. It's easy change, a different way of being security. But I think we have to get their, uh, in order to prepare the security, uh, in these rapidly deployed and developed applications that our customers expect. >>Awesome. Jodi Clippers, CEO and founder of Stack Hawk. Thank you for coming on. I really appreciate it. Thanks for spending the time featured Startup is part of our Cuban cloud. I'm Sean for your host with silicon angle to Cube. Thanks for watching

>>from around the globe. It's the Cube presenting Cuban cloud brought >>to you by silicon angle. Okay, we're back. Here. Live Cuban Cloud. And this is Dave. Want with my co host, John Ferrier Were all remote. We're getting into the analyst power half hour. Really pleased to have Maribel Lopez here. She's the principal and founder of Lopez Research and Zias Caraballo, who is the principal and founder of ZK research. Guys, great to see you. Let's get into it. How you doing? >>Great. How you been? Good, >>thanks. Really good. John's hanging in there quarantining and, uh, all healthy, So I hope you guys are too. Hey, Mary, But let's start with you. You know, here we are on 2021 you know, just exited one of the strangest years, if not the strangest year of our lives. But looking back in the past decade of cloud and we're looking forward. How do you see that? Where do we come from? Where we at and where we going >>When we obviously started with the whole let's build a public cloud and everything was about public cloud. Uh, then we went thio the notion of private cloud than we had hybrid cloud and multi cloud. So we've done a lot of different clouds right now. And I think where we are today is that there's a healthy recognition on the cloud computing providers that you need to give it to the customers the way they want it, not the way you've decided to build it. So how do you meet them where they are so that they can have a cloud like experience wherever they want their data to be? >>Yes and yes, you've, you know, observed, This is well, in the early days of cloud, you heard a lot of rhetoric. It was private cloud And and then now we're, you know, hearing a lot of multi cloud and so forth. But initially, a lot of the traditional vendors kind of pooh poohed it. They called us analysts. We said we were all cloud crazy, but they seem to have got their religion. >>Well, everything. Everyone's got a definition of cloud, but I actually think we are right in the midst of another transformation of clouds Miracle talked about. We went from, you know, private clouds, which is really hosting the public cloud to multi cloud hybrid cloud. And if you look at the last post that put on Silicon Angle, which was talking about five acquisition of Volterra, I actually think we're in the midst of the transition to what's called distributed Club, where if you look at modernized cloud apps today, they're actually made up of services from different clouds on also distributed edge locations. And that's gonna have a pretty profound impact on the way we build out, because those distributed edges be a telco edge, cellular vagina. Th whatever the services that lived there are much more ephemeral in nature, right? So the way we secure the way we connect changes quite a bit. But I think that the great thing about Cloud is we've seen several several evolutionary changes. So what the definition is and we're going through that now, which is which is pretty cool to think about, right? It's not a static thing. Um, it's, uh, you know, it's a it's an ongoing transition. But I think, uh, you know, we're moving into this distributed Cloudera, which to me is a lot more complex than what we're dealing with in the Palace. >>I'm actually pretty excited about that because I think that this move toe edge and the distribution that you've talked about, it's like we now have processing everywhere. We've got it on devices, we've got it in, cars were moving, the data centers closer and closer to where the action's happening. And I think that's gonna be a huge trend for 2021. Is that distributed that you were talking about a lot of edge discussion? You >>know what? The >>reason we're doing This, too, is we want. It's not just we're moving the data closer to the user, right? And some. If you think you brought up the autonomous vehicle right in the car being an edge, you think of the data that generates right? There's some things such as the decision to stop or not right that should be done in car. I don't wanna transport that data all the way back to Google him back to decide whether I want to stop. You could also use the same data determine whether drivers driving safely for insurance purposes, right? So the same data give me located at the edge or in a centralized cloud for different purposes, and I think that's what you know, kind of cool about this is we're being able to use our data and much different ways. Now. >>You know, it's interesting is it's so complex. It's mind blowing because this is distributed computing. Everyone kind of agrees this is where it is. But if you think about the complexity and I want to get your guys reaction to this because you know some of the like side fringe trend discussions are data sovereignty, misinformation as a vulnerability. Okay, you get the chips now you got gravitas on with Amazon in front. Apple's got their own chips. Intel is gonna do a whole new direction. So you've got tons of computer. And then you mentioned the ephemeral nature. How do you manage those? What's the observe ability look like? They're what's the trust equation? So all these things kind of play into it. It sounds almost mind blowing, just even thinking about it. But how do you guys, this analyst tryto understand where someone's either blowing bullshit or kind of like has the real deal? Because all those things come into play? I mean, you could have a misinformation campaign targeting the car. Let's say Hey, you know that that data is needs to be. This is this is misinformation who's a >>in a lot of ways, this creates almost unprecedented opportunity now for for starts and for companies to transform right. The fundamental tenet of my research has always been share shifts happen when markets transition and we're in the middle of the big one. If the computer resource is we're using, John and the application resource will be using or ephemeral nature than all the things that surrounded the way we secured the way we connect. Those also have to be equal, equally agile, right, So you can't have, you know, you think of a micro services based application being secured with traditional firewalls, right? Just the amount of, or even virtual the way that the length of time it takes to spend those things up is way too long. So in many ways, this distributed cloud change changes everything in I T. And that that includes all of the services in the the infrastructure that we used to secure and connect. And that's a that is a profound change, and you mentioned the observe ability. You're right. That's another thing that the traditional observe ability tools are based on static maps and things and, you know, traditional up, down and we don't. Things go up and down so quickly now that that that those don't make any sense. So I think we are going to see quite a rise in different types of management tools and the way they look at things to be much more. I suppose you know Angela also So we can measure things that currently aren't measurable. >>So you're talking about the entire stack. Really? Changing is really what you're inferring anyway from your commentary. And that would include the programming model as well, wouldn't it? >>Absolutely. Yeah. You know, the thing that is really interesting about where we have been versus where we're going is we spent a lot of time talking about virtual izing hardware and moving that around. And what does that look like? And that, and creating that is more of a software paradigm. And the thing we're talking about now is what is cloud is an operating model look like? What is the manageability of that? What is the security of that? What? You know, we've talked a lot about containers and moving into a different you know, Dev suck ups and all those different trends that we've been talking about, like now we're doing them. So we've only got into the first crank of that. And I think every technology vendor we talked to now has to address how are they going to do a highly distributed management and security landscape? Like, what are they gonna layer on top of that? Because it's not just about Oh, I've taken Iraq of something server storage, compute and virtualized it. I now have to create a new operating model around it. In a way, we're almost redoing what the OS I stack looks like and what the software and solutions are for that. >>So >>it was really Hold on, hold on, hold on their lengthened. Because that side stack that came up earlier today, Mayor. But we're talking about Yeah, we were riffing on the OSC model, but back in the day and we were comparing the S n a definite the, you know, the proprietary protocol stacks that they were out there and someone >>said Amazon's S N a. Is that recall? E think that's what you said? >>No, no. Someone in the chest. That's a comment like Amazon's proprietary meaning, their scale. And I said, Oh, that means there s n a But if you think about it, that's kind of almost that can hang. Hang together. If the kubernetes is like a new connective tissue, is that the TCP pipe moment? Because I think Os I kind of was standardizing at the lower end of the stack Ethernet token ring. You know, the data link layer physical layer and that when you got to the TCP layer and really magic happened right to me, that's when Cisco's happened and everything started happening then and then. It kind of stopped because the application is kinda maintain their peace there. A little history there, but like that's kind of happening now. If you think about it and then you put me a factor in the edge, it just kind of really explodes it. So who's gonna write that software? E >>think you know, Dave, your your dad doesn't change what you build ups. It's already changed in the consumer world, you look atyou, no uber and Waze and things like that. Those absolute already highly decomposed applications that make a P I calls and DNS calls from dozens of different resource is already right. We just haven't really brought that into the enterprise space. There's a number, you know, what kind of you know knew were born in the cloud companies that have that have done that. But they're they're very few and far between today. And John, your point about the connectivity. We do need to think about connectivity at the network layer. Still, obviously, But now we're creating that standardization that standardized connectivity all the way a player seven. So you look at a lot of the, you know, one of the big things that was a PDP. I calls right, you know, from different cloud services. And so we do need to standardize in every layer and then stitch that together. So that does make It does make things a lot more complicated. Now I'm not saying Don't do it because you can do a whole lot more with absolute than you could ever do before. It's just that we kind of cranked up the level of complexity here, and flowered isn't just a single thing anymore, right? That's that. That's what we're talking about here It's a collection of edges and private clouds and public clouds. They all have to be stitched together at every layer in orderto work. >>So I was I was talking a few CEOs earlier in the day. We had we had them on, I was asking them. Okay, So how do you How do you approach this complexity? Do you build that abstraction layer? Do you rely on someone like Microsoft to build that abstraction layer? Doesn't appear that Amazon's gonna do it, you know? Where does that come from? Or is it or is it dozens of abstraction layers? And one of the CEO said, Look, it's on us. We have to figure out, you know, we get this a p I economy, but But you guys were talking about a mawr complicated environment, uh, moving so so fast. Eso if if my enterprise looks like my my iPhone APs. Yes, maybe it's simpler on an individual at basis, but its app creep and my application portfolio grows. Maybe they talk to each other a little bit better. But that level of complexity is something that that that users are gonna have to deal >>with what you thought. So I think quite what Zs was trying to get it and correct me if I'm wrong. Zia's right. We've got to the part where we've broken down what was a traditional application, right? And now we've gotten into a P. I calls, and we have to think about different things. Like we have to think about how we secure those a p I s right. That becomes a new criteria that we're looking at. How do we manage them? How do they have a life cycle? So what was the life cycle of, say, an application is now the life cycle of components and so that's a That's a pretty complex thing. So it's not so much that you're getting app creep, but you're definitely rethinking how you want to design your applications and services and some of those you're gonna do yourself and a lot of them are going to say it's too complicated. I'm just going to go to some kind of SAS cloud offering for that and let it go. But I think that many of the larger companies I speak to are looking for a larger company to help them build some kind of framework to migrate from what they've used with them to what they need tohave going forward. >>Yeah, I think. Where the complexities. John, You asked who who creates the normalization layer? You know, obviously, if you look to the cloud providers A W s does a great job of stitching together all things AWS and Microsoft does a great job of stitching together all things Microsoft right in saying with Google. >>But >>then they don't. But if if I want to do some Microsoft to Amazon or Google Toe Microsoft, you know, connectivity, they don't help so much of that. And that's where the third party vendors that you know aviatrix on the network side will tear of the security side of companies like that. Even Cisco's been doing a lot of work with those companies, and so what we what we don't really have And we probably won't for a while if somebody is gonna stitch everything together at every >>you >>know, at every layer. So Andi and I do think we do get after it. Maribel, I think if you look at the world of consumer APS, we moved to a lot more kind of purpose built almost throwaway apps. They serve a purpose or to use them for a while. Then you stop using them. And in the enterprise space, we really haven't kind of converted to them modeling on the mobile side. But I think that's coming. Well, >>I think with micro APS, right, that that was kind of the issue with micro APS. It's like, Oh, I'm not gonna build a full scale out that's gonna take too long. I'm just gonna create this little workflow, and we're gonna have, like, 200 work flows on someone's phone. And I think we did that. And not everybody did it, though, to your point. So I do think that some people that are a little late to the game might end up in in that app creep. But, hey, listen, this is a fabulous opportunity that just, you know, throw a lot of stuff out and do it differently. What What? I think what I hear people struggling with ah lot is be to get it to work. It typically is something that is more vertically integrated. So are you buying all into a Microsoft all you're buying all into an Amazon and people are starting to get a little fear about doing the full scale buy into any specific platform yet. In absence of that, they can't get anything to work. >>Yeah, So I think again what? What I'm hearing from from practitioners, I'm gonna put a micro serve. And I think I think, uh, Mirabelle, this is what you're implying. I'm gonna put a micro services layer. Oh, my, my. If I can't get rid of them, If I can't get rid of my oracle, you know, workloads. I'm gonna connect them to my modernize them with a layer, and I'm gonna impart build that. I'm gonna, you know, partner to get that done. But that seems to be a a critical path forward. If I don't take that step, gonna be stuck in the path in the past and not be able to move forward. >>Yeah, absolutely. I mean, you do have to bridge to the past. You you aren't gonna throw everything out right away. That's just you can't. You can't drive the bus and take the wheels off that the same time. Maybe one wheel, but not all four of them at the same time. So I think that this this concept of what are the technologies and services that you use to make sure you can keep operational, but that you're not just putting on Lee new workloads into the cloud or new workloads as decomposed APS that you're really starting to think about. What do I want to keep in whatever I want to get rid of many of the companies you speak Thio. They have thousands of applications. So are they going to do this for thousands of applications? Are they gonna take this as an opportunity to streamline? Yeah, >>well, a lot of legacy never goes away, right? And I was how companies make this transition is gonna be interesting because there's no there's no really the fact away I was I was talking to this one company. This is New York Bank, and they've broken their I t division down into modern I t and legacy I t. And so modern. Everything is cloud first. And so imagine me, the CEO of Legacy i e 02 miracles. But what they're doing, if they're driving the old bus >>and >>then they're building a new bus and parallel and eventually, you know, slowly they take seats out of the old bus and they take, you know, the seat and and they eventually start stripping away things. That old bus, >>But >>that old bus is going to keep running for a long time. And so stitching the those different worlds together is where a lot of especially big organizations that really can't commit to everything in the cloud are gonna struggle. But it is a It is a whole new world. And like I said, I think it creates so much opportunity for people. You know, e >>whole bus thing reminds me that movie speed when they drive around 55 miles an hour, just put it out to the airport and just blew up E >>got But you know, we all we all say that things were going to go away. But to Zia's point, you know, nothing goes away. We're still in 2021 talking about mainframes just as an aside, right? So I think we're going to continue tohave some legacy in the network. But the But the issue is ah, lot will change around that, and they're gonna be some people. They're gonna make a lot of money selling little startups that Just do one specific piece of that. You know, we just automation of X. Oh, >>yeah, that's a great vertical thing. This is the This is the distributed network argument, right? If you have a note in the network and you could put a containerized environment around it with some micro services um, connective tissue glue layer, if you will software abstract away some integration points, it's a note on the network. So if in mainframe or whatever, it's just I mean makes the argument right, it's not core. You're not building a platform around the mainframe, but if it's punching out, I bank jobs from IBM kicks or something, you know, whatever, Right? So >>And if those were those workloads probably aren't gonna move anywhere, right, they're not. Is there a point in putting those in the cloud? You could say Just leave them where they are. Put a connection to the past Bridge. >>Remember that bank when you talk about bank guy we interviewed in the off the record after the Cube interviews like, Yeah, I'm still running the mainframe, so I never get rid of. I love it. Run our kicks job. I would never think about moving that thing. >>There was a large, large non US bank who said I buy. I buy the next IBM mainframe sight unseen. Andi, he's got no choice. They just write the check. >>But milliseconds is like millions of dollars of millisecond for him on his back, >>so those aren't going anywhere. But then, but then, but they're not growing right. It's just static. >>No, no, that markets not growing its's, in fact. But you could make a lot of money and monetizing the legacy, right? So there are vendors that will do that. But I do think if you look at the well, we've already seen a pretty big transition here. If you look at the growth in a company like twilio, right, that it obviates the need for a company to rack and stack your own phone system to be able to do, um, you know, calling from mobile lapse or even messaging. Now you just do a P. I calls. Um, you know, it allows in a lot of ways that this new world we live in democratizes development, and so any you know, two people in the garage can start up a company and have a service up and running another time at all, and that creates competitiveness. You know much more competitiveness than we've ever had before, which is good for the entire industry. And, you know, because that keeps the bigger companies on their toes and they're always looking over their shoulder. You know what, the banks you're looking at? The venues and companies like that Brian figure out a way to monetize. So I think what we're, you know well, that old stuff never going away. The new stuff is where the competitive screen competitiveness screen. >>It's interesting. Um IDs Avery. Earlier today, I was talking about no code in loco development, how it's different from the old four g l days where we didn't actually expand the base of developers. Now we are to your point is really is democratizing and, >>well, everybody's a developer. It could be a developer, right? A lot of these tools were written in a way that line of business people create their own APs to point and click interface is, and so the barrier. It reminds me of when, when I started my career, I was a I. I used to code and HTML build websites and then went to five years. People using drag and drop interface is right, so that that kind of job went away because it became so easy to dio. >>Yeah, >>sorry. A >>data e was going to say, I think we're getting to the part. We're just starting to talk about data, right? So, you know, when you think of twilio, that's like a service. It's connecting you to specific data. When you think of Snowflake, you know, there's been all these kinds of companies that have crept up into the landscape to feel like a very specific void. And so now the Now the question is, if it's really all about the data, they're going to be new companies that get built that are just focusing on different aspects of how that data secured, how that data is transferred, how that data. You know what happens to that data, because and and does that shift the balance of power about it being out of like, Oh, I've created these data centers with large recommend stack ums that are virtualized thio. A whole other set of you know this is a big software play. It's all about software. >>Well, we just heard from Jim Octagon e You guys talking earlier about just distributed system. She basically laid down that look. Our data architectures air flawed there monolithic. And data by its very nature is distributed so that she's putting forth the whole new paradigm around distributed decentralized data models, >>which Howie shoe is just talking about. Who's gonna build the visual studio for data, right? So programmatic. Kind of thinking around data >>I didn't >>gathering. We didn't touch on because >>I do think there's >>an opportunity for that for, you know, data governance and data ownership and data transport. But it's also the analytics of it. Most companies don't have the in house, um, you know, data scientists to build on a I algorithms. Right. So you're gonna start seeing, you know, cos pop up to do very specific types of data. I don't know if you saw this morning, um, you know, uniforms bought this company that does, you know, video emotion detection so they could tell on the video whether somebody's paying attention, Not right. And so that's something that it would be eso hard for a company to build that in house. But I think what you're going to see is a rise in these, you know, these types of companies that help with specific types of analytics. And then you drop you pull those in his resource is into your application. And so it's not only the storage and the governance of the data, but also the analytics and the analytics. Frankly, there were a lot of the, uh, differentiation for companies is gonna come from. I know Maribel has written a lot on a I, as have I, and I think that's one of the more exciting areas to look at this year. >>I actually want to rip off your point because I think it's really important because where we left off in 2020 was yes, there was hybrid cloud, but we just started to see the era of the vertical eyes cloud the cloud for something you know, the cloud for finance, the cloud for health care, the telco and edge cloud, right? So when you start doing that, it becomes much more about what is the specialized stream that we're looking at. So what's a specialized analytic stream? What's a specialized security stack stream? Right? So until now, like everything was just trying to get to what I would call horizontal parody where you took the things you had before you replicated them in a new world with, like, some different software, but it was still kind of the same. And now we're saying, OK, let's try Thio. Let's try to move out of everything, just being a generic sort of cloud set of services and being more total cloud services. >>That is the evolution of everything technology, the first movement. Everything doing technology is we try and make the old thing the new thing look like the old thing, right? First PCs was a mainframe emulator. We took our virtual servers and we made them look like physical service, then eventually figure out, Oh, there's a whole bunch of other stuff that I could do then I couldn't do before. And that's the part we're trying to hop into now. Right? Is like, Oh, now that I've gone cloud native, what can I do that I couldn't do before? Right? So we're just we're sort of hitting that inflection point. That's when you're really going to see the growth takeoff. But for whatever reason, and i t. All we ever do is we're trying to replicate the old until we figure out the old didn't really work, and we should do something new. >>Well, let me throw something old and controversial. Controversial old but old old trope out there. Consumerism ation of I t. I mean, if you think about what year was first year you heard that term, was it 15 years ago? 20 years ago. When did that first >>podcast? Yeah, so that was a long time ago >>way. So if you think about it like, it kind of is happening. And what does it mean, right? Come. What does What does that actually mean in today's world Doesn't exist. >>Well, you heard you heard. Like Fred Luddy, whose founder of service now saying that was his dream to bring consumer like experiences to the enterprise will. Well, it didn't really happen. I mean, service not pretty. Pretty complicated compared toa what? We know what we do here, but so it's It's evolving. >>Yeah, I think there's also the enterprise ation of consumer technology that John the companies, you know, you look a zoom. They came to market with a highly consumer facing product, realized it didn't have the security tools, you know, to really be corporate great. And then they had to go invest a bunch of money in that. So, you know, I think that waken swing the pendulum all the way over to the consumer side, but that that kind of failed us, right? So now we're trying to bring it back to center a little bit where we blend the two together. >>Cloud kind of brings that I never looked at that way. That's interesting and surprising of consumer. Yeah, that's >>alright, guys. Hey, we gotta wrap Zs, Maribel. Always a pleasure having you guys on great great insights from the half hour flies by. Thanks so much. We appreciate it. >>Thank >>you guys. >>Alright, keep it right there. Mortgage rate content coming from the Cuban Cloud Day Volonte with John Ferrier and a whole lineup still to come Keep right there.

>>from around the globe. It's the Cube presenting Cuban Cloud brought to you by Silicon Angle. >>Welcome back to the Cubes. Special Presentation on the Future of Cloud. Three years ago, Alan Nance said to me that in order to really take advantage of Cloud and Dr Billions of dollars of value, you have to change the operating model. I've never forgotten that statement have explored it from many angles over the last three years. In fact, it was one of the motivations for me actually running this program for our audience. Of course with me is Alan Nance. He's a change agent. He's led transformations that large organizations, including I N G Bank, Royal, Philips, Barclays Bank and many others. He's also a co founder of Citrus Collab. Alan, great to see you. Thanks for coming on the program. >>Thanks for having me again there. >>All right. So when we were preparing for this interview you shared with me the following you said enterprise, I t often hasn't really tapped the true powers that are available to them to make real connections to take advantage of that opportunity. Connections to the business, That is What >>do >>you mean by that. >>Well, I think, you know, we've been saying for quite a long time that enterprise. It is certainly a big part of our past in technology. But you know, just how much is it going to be in the future on, you know, enterprise, I t has had a difficult time under The pressure's off being a centralized organization with large expanse of large Catholics, while at the same time we see obviously the digital operations growing oftentimes in separate reporting structures and closer to the business on. And what I'm thinking right now is enterprise i t. If it has made this transition to cloud operating models, whether they are proprietary or whether they are public cloud, there's a huge opportunity for enterprise. I t. Thio connect the dots in a way that no other part of the organization can do that. And when they connect those dots working closely with the business, they unleash a huge amount of value that is beyond things like efficiency or things like just just just providing cloud computing to be flexible. It has to be much more about value generation. Andi. I think that a lot of leaders of enterprise I t have not really grasped that, Andi. I think that's the opportunity is sitting right in front of them right now. >>You know what I've seen lately? I wonder if you could. Comment is You know, obviously we always talk about the stove pipes, but you've you've seen, you know, the CEO, >>the chief >>data officer that you just mentioned the chief digital officer, the chief information security officer. They've largely been in their own silos. I'm definitely seeing a move to bring those together. I'm seeing a lot of CDOs and CEO roles come together and even the chief information or the head of security reporting up into that where there's there seems to be as your sort of suggesting just a lot more visibility across the entire organization. Is it Is it an organizational issue? Is it? Ah, is it a mindset? But only if you could comment. >>Well, I would say it zits, two or three different things, but certainly it's an organizational issue. But I think it starts off with a cultural issue. Andi, I think what you're seeing, and if you look at the more progressive companies that you see, I think you are also seeing a new emergence off the enlightened technology leader s O. With all respect to me and my generation, our tenure as the owners off the large enterprise, it is coming to an end. And we grew up trying to master the complexity of the off the silos. As you so definitely pointed out, we were battling this falling technology, trying to get it under control, trying to get the costs down, trying to reduce Catholics. And a lot of that was focused on the partnerships that we had with technology suppliers on DSO. That mindset of being engineers struggling for control. Having your most important part of being a technology company itself that now I think is giving way is giving way to a new generation of technology leaders who haven't grown up with that culture. Onda. Oftentimes what I see is that the new enlightened CEOs are female, and they are coming into the role outside of the regular promotion change. So they're coming to these rolls through finance H R marketing on their bringing. A different focus on the focus is much more about how do we work together to create an amazing experience for our employees and for our customers on an experience that drives value. So I think there's a reset in the culture. And clearly, when you start talking about creating a value chain to improve experience, you're also talking about bringing people together from different multidisciplinary backgrounds to make that happen. >>Well, that's kind of, you know, it makes me think about Amazon's mantra of working backwards. You know, start with the experience and and and a lot of a lot of CEOs that I know would love tow beam or involved in the business. But they're just so busy trying to keep the lights on like you said, trying to manage vendors. And like, you know, I had a discussion the other day, Allen with an individual. We were talking about how you know, you got a shift from a product mindset to a platform mindset. But you know, you've said that that platform thinking you're always ahead of the game platform, thinking it needs to make way for ecosystem thinking, you know, unless you're Internet giant scale business like Amazon or Spotify, you said you're gonna be in a niche market if you really don't tap that ecosystem again. If you could explain what you mean by that. >>I think right now if this movement to experience is fundamental, right? So Joe Pine and Gilmore wrote about the experience economy as far back in 1990. But the things that they predicted then are here now. And so what we're now seeing is that consumers have choice. Employees have choice. I think the pandemic has accelerated that. And so what happens when you, when you when you put an enterprise under that type of external pressure, is that it fragments and even fragment into ways it can fragment dysfunctional E so that every silo tries to go into a a defensive mode protective mode? That's obviously the wrong way to go. But the fragmentation that's exciting is when it fragments into ecosystems that are actually working together to solve an experience problem. And those are not platforms. They're too big, you know, When I was Phillips, I was very enthusiastic about working on this connected health care platform, but I think what I started to realize was it takes too much time. It requires too much investment on you are bringing people to you based on your capability. Where is what the market needs is much more agile than that. So if we look in health care, for instance, and you want to connect patients at home with patient with the doctors in the hospital, in the old model you so I'm gonna build a platform for this. I'm gonna have doctors with a certain competence and they're gonna be connecting into this. And so are the patients in some way. And so are the insurers. I think what you're going to see now is different. We're going to say, Let's get together A small team that understands it's called, For instance, let's get a an insurance provider. Let's get a health care operator. Let's get a healthcare tech company on. Let's pull their data in a way that helps us to create solutions now that that can roll out in 30 60 or 90 days. And the thing that that makes that possible is the move to the public crowd because now there are so many specialized supplier, specialized skill sets available that you can connect to through Amazon through Google, through through azure that that these these things that we usedto I think we're very, very difficult are now much easier. I don't want to minimize the effort, but these things are on the table right now. Thio Revalue. >>So you're also a technologist and I wanna ask you and and everybody always says, it's the technology is easy part. It's the people in the process and, you know, way we can all agree on that. However, sometimes technology could be a blocker. And the example that you just mentioned, I have a couple of takeaways from that. First of all, you know the platform thinking it sounds like it's more command and control, and you're advocating for Let's get the ecosystem who are closest to the problem. To solve those problems, however, they decide and leverage the cloud. So my question is from a technology standpoint, does that echo have system have to be on the same cloud with the state of today's technology? Can it be across clouds can be there pieces on Prem? What's your thinking on that? >>I think I think exactly the opposite. It cannot be monolithic and centralized. It's just not practical because that was that was that would cause you too much time on interoperability and who owns what you see The power behind experience is data. And so the most important technical part of this is dealing with data liquidity. So the data that for instance, um, somebody like Kaiser has or the the Harvard Health Care have or the Philips have that's not going to be put into a central place. But for the ecosystem mobilization, there will be subsets of that data flowing between those parties. So the technical, the heart there is how do we manage data liquidity? How do we manage the security around the data liquidity on How do we also understand that what we're building is going to be ever changing and maybe temporary, because on idea may not work, eh? So you've got this idea that the timeliness is very, very important. The duration is very uncertain. The motor the energy for this is data liquidity data transfer, data sharing. But the vehicle is the combination off. Probably crowd in my mind. >>Somebody said to me, Hey, that data is like water. It'll go. It'll go where it wants to go where it needs to go. You can't try to control it. It's let it go. Uh, now, of course, many organizations, particularly large incumbent organizations there. They have many, many data pipelines. They have many processes, many roles, and they're struggling toe actually kind of inject automation into those pipelines. Maybe that's machine intelligence, uh, really doom or data sharing across that pipeline and and ultimately compress the end and cycle. Time to go from raw data insights that are actionable. What are you seeing there and what's your advice? >>Well, I think the the you make some really good points. But what I hear also a little bit in your observation is you're still observing Enterprises on the end of the focus of the enterprise has been on optimizing the processes within the boundaries of its own system. That's why we have s a P. And that's why we have a sales force and, to some degree, even service. Now it's all been about optimizing how we move data, how we create products and services on. That's not the game. Now that's not an important game. Three important game right now is how do I connect to my employees? How do I connect to my customers in a way that provides them a memorable experience? And the realization is we've seen this already a manufacturing for some years. I can't be allowed things to people. So I have to understand where the first part of data comes in. I have to understand who this person is that I am trying to target. Who is the person that needs this memorable experience on what is that memorable experience gonna look like? And I'm going to need my data. But I'm also going to need the data of other actors in that ecosystem. And then I'm gonna have to build that ecosystem really quickly to take advantage off the system. So this throws a monkey wrench in traditional ideas of standardization. It throws a monkey wrench in the idea that enterprise I t is about efficiency on. But if I may, I just want to come back to the day I because I think we're looking in the wrong places. Things like a I let me give you an example. Today there are 2.2 million people working in call centers around the world. If we imagine that they work in three shifts, that means that any one time there are 700,000 people on the phone to a customer on that customer is calling that company because they're vested. They're calling them with advice. They're calling them with a question. They're calling them with a complaint. It is the most important source off valuable data that any company has. And yet what have we done with that? What we've done with that is we have attacked it with efficiency. So instead of saying these are the most valuable sources of information, let's use a I to to tag the sentiment in the recordings that we make with our most valuable stakeholders on this and analyze them for trends, ideas, things that need to change. We don't do that. What we do is we were going to give every call agent two minutes to get them off the phone. For God's sake, don't ask so many import difficult questions. Don't spend money talking to the customer. Try to make them happy so they get a score and say they hire you at the end of the core and then you're done. So so where the AI and automation needs to come in is not in improving efficiency but in mining value. And the real opportunity with a I Is that Joe Pine says this. If you are able to understand the customer rather than interpret them, that is so valuable to the customer that they will pay money for that. I think that's where the whole focus needs to be in this new teaming of enterprise I t. And that's true business. >>It's a great observations. I think we can all relate to that in your call center example, or you've been in a restaurant. You're trying to turn the tables fast and get you out of there. And that's the last time you ever go to that restaurant and you're you're taking that notion of systems thinking and broadening it to ecosystems thinking. And you've said ecosystems have a better chance of success when they're used to stage an experience for whether it's the employees for the brand and of course, the customer and the partners. >>That's it. That's exactly yet. So every technology leader should be asking themselves what contribution can can my and my organization makes of this movement because the business understands the problem, they don't understand how to solve it, and we've chosen a different dialogues. We've been talking a lot about what cloud could do and the functionality that clown has and the potential that clown has on those aerial good things. But it really comes together now when we work together and we, as the technology group brings in, they know how we know how toe connect quickly through the public cloud. We know how to do that in a secure way. We know how to manage data, liquidity at scale, and we can stand these things up through our, you know, our new learning of agile and devils we can stand. These ecosystems are fairly quickly now. There's still a whole bunch of culture between different businesses that have to work together through the idea that I have to protect my data rather than serve the customer. But once you get past that, there's a whole new conversation enterprise. It you can have that, I think, gives them a new lease of life, new value. And I just think it's a really, really exciting time. Yes, >>so you're seeing the intersection of a lot of different things. You talk about cloud as you know, an enabler for sure, and that's great. We could talk about that, but you've got this what you're referring to before is, you know, maybe you're in a niche market, but you have your marketplace and like you're saying, you can actually use that through an ecosystem to really leave her a much, much broader available market and then vector that into the experience economy. You know, we talk about subscriptions, the AP economy. That really is new thinking, >>yes, and I think what you're seeing here is it zits, not radical. Inasmuch as all of these ideas have been around, some of them have been around since the nineties. But what's radical is the way in which we can now mix and match these technologies to make this happen. That's gone so quickly on, I would argue to you, and I've argued this before. Scale scale is a concept within an organization is dead. It doesn't give you enough value. It gives you enough efficiency, and it gives you a cloud. But it doesn't give you three opportunity to target the niche experiences that you need to do. So. If we start to think off an organization as a a combination off known and unknown potential ecosystems, you start to build a different operating model, a different architectural idea you start to look outside more than you start to look insight. Which is why the cultural change that we were talking about just now goes hand in hand with this because people have to be comfortable thinking in ecosystems that may not yet exist on partnering with people where they bring to the table there, you know, 2030 years of experience in a new and different way. >>Let me make sure I understand that. So you're basically if I understand you're saying that if you're sort of end goal is scale and efficiency at scale, you're you're gonna have a vanilla solution for your customers and your ecosystem. Whereas if you will allow this outside in thinking to come in, you're gonna be able to actually customize those experience experiences and get the value of scale and efficiency. >>Right? So, I mean, Rory Sutherland, who is ah, big finger in the in. The marketing world has always said, ultimately, scale standardization and best practice lead to mediocrity because you are not focused on the most important thing for your employees or your brand, or you're you're focused on the efficiency factors on. They create very little value in fact, we know that they subvert value. So, yes, we need to have a very big mindset change. >>Yeah, You're a top line thinker, Allen. And and always at the forefront. I really appreciate you coming on to the to the Cuban. Participate in this program. Give us the last word. So if you're a change agent, I wanna I'm an organization, and I want to inject this type of change. Where do I >>start? Well, I think it starts by identifying. Are we going to? Is it are we gonna work on the employee experience? Do we feel that we have a model where the employees that are on stage with customers are so important that the focus has to be employees? We go down that route and we look at what happened to the pandemic. What type of experiences are we going to bring to those employees around their ability to have flow in their work, to get returned on energy, to excite the customers? Let's do that. Let's figure out what experience are we driving now? What does that experience need to be if we're the customer side? As I said, let's look ALS. The sources of information that we already have. You know, I know companies to spend hundreds of millions a year trying to figure out what consumers what. And yet if we look in their call centers, you will call up and and they will say to Your call may be recorded for quality purposes and training on this is not true. Less than 10% of those calls that ever listened to on if they are listening to its compliance that's driving that, not the burning desire to better understand the consumer. So if we change that, then we say Okay, so what can we change? What is the experience that we are now able to stage with all we know and with all weaken dio on debts? Start there. Let's start with what is the experience you want to stage? What's the experience landscape look like now? And who do we bring together to make that happen? >>Allen. Fantastic. Having you back in the Cube, it's always a pleasure. And, uh, and thanks so much for participating. >>Thank you, Dave. It's always a pleasure to speak with you. >>Thank you. Everybody, this is Dave Volonte. The Cuban cloud will be right back right after this short break. Stay with

>>from around the globe. It's the Cube presenting Cuban cloud brought to you by silicon angle. Okay, we're now going >>to explore what it's like to be the CEO of a fast paced growth company in Silicon Valley. And how the cloud, however, you wanted to find the cloud public cloud on Prem Hybrid, etcetera. How it supported that growth. And with me is Kathy Southwick, who is the CEO of pure storage. Kathy is really deep experience. Managing technology organizations spent a number of years overseeing A T and T s cloud planning and engineering and another few years overseeing a team of a Couple 1000 network and I T engineers working to break the physical stranglehold of fossilized telco networks, implementing network functions, virtualization and a software defined methodology for the company. And, of course, you spent the last couple of years is the CEO of Pure. So Cathy, it's great to see you again. Thank you for coming on the program. >>Thanks for having me. It's good to be here. >>You're very welcome. And so so >>given your >>experience with cloud, you know, dating back to really the early part of last decade. How did you look at cloud back then and how How is it evolved from your point of view? >>You know, it's Ah, it's an interesting question because I think that we've there's some things that have moved very fast and there's some some things that are very much the same as they were even a decade ago. I think that all companies are very focused on How do you think about Cloud? Do you think about it as on Prem? And when I started, we really were focused on an on Prem solution, and I'm in building an on Prem private cloud to help modernize our business. So I think that, you know, with that all companies are still in that same mindset of how do I want to think about Cloud? And how do I want to think about that on Prem versus Public versus, you know, combination or some type of hybrid solution? So I think all of us around that journey, it just seems like it's taken. It's probably a bit longer than most of us probably thought from beginning. >>So as a CEO thinking about that evolution, how has that informed the way you think about applying specifically the public cloud to pure business. >>You know, I think that we've been a for pure ourselves. I think we're in a really unique position. We were essentially born in the cloud. So we're, you know, company. That's 10 11 years old. And if I If I give the contrast of that of 18 t being, you know, 130 year old company Onda having a lot of applications that have, you know, lived historically on prim. There's very different issues and challenges that you have pure has had that. I think the advantage just like many other companies that were born in the cloud who have can see what advantages are very quickly. And we made decisions early on that said that we were gonna actually do both. We were gonna look to say, How do I put those applications in that in that data, whether it was on public or in on Prem and be able to do that both in the i t. Side as well as within the product side? So how we build our products now, >>as I mentioned up front, you have obviously a lot of experience managing large technology teams. My question is. When you first saw the emergence of the modern cloud, how did you communicate with your team members? I mean, you mentioned you were kind of building your own private cloud, so I guess that's less threatening to people. But what was it like? You know, Was there a concern? You know, with the eager to jump in? What was that dynamic like? And how did you manage >>it? You know, it's really it's a different depending on the different part of the organization. So I'll give you kind of two things I learned one of them was that our teams in the operation side, they saw it as a huge advantage. They saw it as an opportunity to really modernized to really get themselves both their own individual skill sets advanced, as well as provide a better level of service for our internal, you know, customer, so to speak. Our application in our data partners that we had to work with, um, they thought is an opportunity to bring agility to their applications quicker speed to market, um, or currency of their applications. So they actually got some benefits that they weren't. Actually, I'll call planning for they were they had the opportunity toe get investment in their applications without having to put the that investment on themselves. I would tell you the thing I learned from the teams, this is probably might be a little bit surprised. But often, you know, leaders believe like, you gotta have all the answers. You're gonna drive everything you're gonna let make sure everyone knows what needs to get done and what I actually found. This was actually one of my big moments, I think, was our Our individuals are employees are teams. They're so brilliant and so bright on driving change. And a lot of times leaders, I think, get in the way that so for cloud and adoption, it was really about me getting out of the way. It was really about setting that north star for where we want to go from the ability to deliver fast and quick for our business. And they get out of the way and let our teams actually drive. So it was a great, um, it was we actually actually saw the reverse. I saw more employees wanting to drive, and I needed to, like, back out and just say, Here's what we need to go. Let them drive us there. >>Alright, So I gotta ask you don't Please don't hate me for asking this question, but was your your gender and advantage was at a disadvantage. It wasn't really irrelevant in that regard. >>It was a relevant um, I think that it was I actually I truly believe it's irrelevant. I think it was literally recognizing that leaders need to set vision and what we want to achieve and let our letter of teams help us drive to get there. And I think that that is, you know, gender neutral. I think it's really about, you know, kind of checking your ego and everything else out to the side. And it's really about empowering people in our teams. Thio help drive us there. >>So thinking about that that learning specifically are there any similar tectonic shifts that you're you're seeing today where you can apply that experience? I'm just like, for instance, new modes of application development and requiring new skill sets are, or maybe another that you can think of. >>Yeah, I think I think honestly, it traverse is everything that we that we have to do as a you know, as a leader of a technology team, and whether you're in a high growth company like Pure or you're in a company that's trying to take costs out of your business or trying to, you know, do things. I think that it, um it really is a matter of leaders needing to set the stage. And so if we're trying to drive, you know, changing the business, it's really making sure that we're doing I'll calm or more empowering of our employees and they because they will see the way that we can get there. It's just a matter of, you know, letting them have that ability to do it. >>So you joined pure around two years ago and obviously growing very quickly. I love pandemic has changed the trajectory of that growth, but still good outlook. Um, but Silicon Valley fast paced company, you know, I kind of put it in the camp of the the work days, and the service now is that could have similar similar cultural patterns there. So you talked a little bit about this, but I wonder if we could come back and more specifically how you're leveraging cloud, how you're thinking about it, you know, on Prem Hybrid, Now the edge. And how did that contribute Thio Puros growth? >>Yeah, that za great question because I think that why I shared earlier, you know, we were essentially born in the cloud. I think that what it's really driven us is to be thinking more forward about where customers were going and what their challenges are. So whether it's for the I t. Teams on what we're trying to do to deliver for our business and, you know, innovation, they're obviously trying to make sure they can hit their revenue goals and all those things that important that every business deals with. But we also have that same mindset on how we develop our products. So it's really all driven by where the customer is going that they need data mobility. They need application mobility. They need really portability so that the moment that you have that ability where you can kind of control your destiny and define it, and you only could get that by having, you know, applications that are portable and data that is mobile and secure, that you have that kind of flexibility. So I think for pure we've been definitely in a great position to drive for our customers or drive where our customers are going. And so we have to find our entire product set. So not just how we operate as a business and run our business. But then how we define for our customers Same mindset is if our customers are going to the cloud that we need, have products that can help them to be in the cloud or be, you know, on print and let them decide what that looks like. Well, >>it's interesting you mentioned that and I hearken back to the The Port Works acquisition, which is an attempt to really change the way application development has done is another sort of approach Thio in a sort of modern data architecture, you, as the CEO of a technology company, most CEO, is that I know inside the tech companies that they're sort of the dog Fuding or champagne drinking, you know, testing. So So had you already started to sort of use that tech? Are you starting to, you know, Does it support that vision that you just put forth? Maybe you could talk a little bit about that. >>Yeah, It does. So we eso We had not been using port works as a za product. We were just starting down that path of looking at How do we do container ization for the applications that we do have on Prem? That's both in our engineering side as well as within I t. And so But we quickly have recognized, just like you know, And part of that acquisition is applications or companies won't have the ability to have that portability of their applications and have that flexibility that they're all striving for unless they've done things like containerized or applications made them that they're able to move them across different cloud environments, whether that's on Prem or off Prem or some hybrid eso for ourselves. You know, Port Works was a really critical acquisition, will help us on our own journey of doing the application, modernization and putting that keep those capabilities in place. But it will also enable our customers to have that same flexibility. So, again, going back to the we've adopt, these things aren't like a this is for this group, and this is for you know, this customer. It's really about how we operate both internally and then what we are providing for our customers so that portability and being able to have control of your own destiny, that's that's really to me what hybrid cloud is all about. And you can't really achieve that If you don't have some of these capabilities within your, you know, within kind of your toolbox. >>Great. Thank you for that. So I'm interested in is the head of, ah technology group at a tech company? And what are the meaningful differences? I mean, a lot of differences, but relative to CEO of a large telco or or other incumbent, you know, what are some of the good, the bad? And, uh, you know, the ugly, the differences. >>Yeah, you know, it's I meet with a lot of CEOs across Silicon Valley and we kind of joked that when you are working in a company that is a technology based company, you know, everybody knows how to dio, you know, because you do you have a brilliant engineers and and that they do know. I think the difference that you start to see is that you know, I t is, um is required to make sure that availability is their inherent in what you're doing on immediate roll out with like, you know, an application that's occurring. That's very different than how you do product lifecycle management. Um, what what we've what I've seen, actually, though, is more similarities. I know that's probably surprised to you, but coming out of a T and T, what I have been working on those last couple of years was actually doing the combination of engineering and I t into one organization and that you do have a lot of benefits for, for how you can then develop, how you can manage and the skill sets. There's a lot of similarities. So there's there's actually probably more similarities between companies and on what they're trying to achieve than than you would probably think there would be just because we're all trying to make sure that we can develop quickly. How about is >>it relates to cloud Cathy? I mean, I remember the early days of cloud, a lot of the big banks that we could build our own cloud. We can essentially compete at scale with with Amazon, where you know the big bank on. Then I think they quickly realized well, the economics actually don't favor us necessarily. Do you think there's a different perception about the use of cloud between sort of traditional incumbents and a tech company in Silicon Valley? And if so, how? >>So now I think that the if you are, you know, a bank is you refer to, and having it really is where you're starting from. If you have a very large infrastructure footprint and application footprint, your applications probably not born in the cloud. There's a lot of modernization that has to be done with those applications so that they could operate as efficiently in a public cloud as an example. And I think that's something that sometimes gets overlooked is there are enormous benefits going to public cloud. But there's also cost if your applications or your data doesn't really fit as well in that type of environment. So I think that for large enterprises like the banks, some of the telcos they've got very large footprints of infrastructure. Already, those investments have been made, and what they're really looking for is how doe I increase my ability to, you know, whether it's agility or its speed, or it's lower cost or it's all those things, and I think that's the That's a different path of different journey that they're on. So they're trying to balance all those equations of, you know, the economics as well as the ability to have, you know, no more investment or minimal investment in that infrastructure. For companies like Pure, where we started off of those investments are decision and kind of. The decision tree that we use is if it makes sense. And I don't have to make that investment on Prem for whatever reason, that I should go ahead and make that investment in a public cloud strategy or a hybrid cloud strategy kind. Differentiate that because I think that it's different depending on the company. You are, um, and so it really kind of depends on where you're starting from then. It also depends on what you're trying to achieve if you're just trying to achieve an economic solution. If you're trying to achieve a strategic solution, if you're trying to get agility. Andi, I think it is different for companies, and it's different depending where you're at in your kind of journey. So for a Silicon Valley company whose you know hyper growth, you know, one. We're very focused on abilities. You know everything from scale, because we've got to scale quickly. And those are things that we don't wanna have to start going and building all these data centers to go do that. We don't have those embedded investments. So it's Ah, it's a real difference in where your starting point is. And I think there I think there's value in in all those different type of approaches, >>right? And it's a real advantage for you that you don't have to shell out all that cap ex on Data Center. >>That's right. Um, as you look >>back at the last 10 years of cloud, you know, it was largely about eliminating the heavy lift of infrastructure deployment and SAS if I ng you know the business, what do you see? Going forward? What do you think the was gonna unfold in the 2020 is? Is it gonna be more of the same? Or do you expect meaningful differences? >>I think that we're going to get better as, um as you know, technology leaders on how to quickly make decisions. Um, and not its have it less political. And I think Kobe is actually taught us a lot about that around companies more willing to make. I'll call it a A you know, a faster decision and remove some of the red tape. I've heard this from many of my peers that things that might have taken them months and months to get approved. Um, it's nowadays if even if they even have to go get approval. So I think that what we're going to see is we'll see the continuance of, um, you know, a public and I'll call really hybrid cloud type of solutions. And I think it will be more purposeful about what goes there and how. How that can help us toe, you know, I'll call it enable us much faster than we've been able to do it before. I think that's been our challenges. We've, you know, we get mired into some of the you know, the details of some of these things that maybe it would be easier for us to just make the decision to move forward than Thio. Keep going around around on what's the right way to do it. Yeah, >>so that's interesting. You're saying about the fast decisions? I felt like, ah, lot of 2020 was very tactical. Okay, go deal with the work from home, etcetera. Although you you definitely see I t spending, uh, suppressed in 2020. Our forecast was minus 4% but we're saying it's gonna grow. We actually see a decent snapback. You know, what are you seeing? Generally, Not even necessarily pure. But when you talk to some of your colleagues, you obviously in the technology business, it's good to be in the technology business these days. But to use do you see spending, you know, generally coming back And maybe the timing first half, maybe a little soft second. What are you seeing >>there? Yeah, almost identical wage that. I think that we'll see, you know, a little bit of, ah tendency toe, not really hold back, but really kind of see what's happening in the first quarter of the year. There's a lot, you know, going on with companies and everyone's having to kind of balance at what that looks like. I do see. And what I'm hearing from several of my peers is that, you know, it's not necessarily budget cuts. It might be budget re directions. It might be rude prioritization, but definitely technology investments are still there, and it's still important for businesses to keep on their journeys on. But we do see that even at pure as a way to differentiate ourselves in the market as well, do you? What >>about the work from home piece? I mean, prior to co vid, I think the average was about 15 or 16% of employees work from home. You know, now it's gotta be, you know, well, over in the high seventies, Onda CEO is that we've talked to suggest that, you know, that's gonna come down in the first half, maybe down toe, still pretty high 50 60%. But then eventually is gonna settle at a higher rate than it was pre pre covert. Maybe double that rate may be in the 30 35 maybe even 40%. You know? What are you expecting >>Something probably very similar. I think that what companies have recognized and I actually tell you CEO have thought this many of them for many years that there is a huge value value and having some type of hybrid model. There's value in having, you know, both from a business perspective as well as a personal perspective. So employees work life balance and trying to balance that. So I think that, you know, we a pure and myself, As you know the CEO hugely expect that we will see some type of you know, I'll call leveling off, figure out what's the right for the right group. And I think what we don't want to get into is, you know, Chris prescriptive that says, You know, this is what the company will look like as a whole. I think it really is going to come down to certain certain types of work are more conducive to a more work, remote environment others need to have. And I always kind of uses term of individual, you know, productivity versus team. You know, productivity. We've seen, you know, great advances and or individual productivity. A team productivity is still a challenge when you're still trying to do very collaborative, you know, brainstorming sessions. And so we are looking at capabilities to be able to enable our employees to do that. But there there's some things you just can't replace. The human interaction and ability to very quickly inter actively, you know, five minutes catch someone to do that. So I think we'll see. We'll see both. We'll see some leveling off, and I think we'll see some areas of businesses that have once thought You can't do that remote. They might actually say, Hey, that is work that commute remote So I think we'll see a combination of both. That's an >>interesting perspective on productivity. And what's the What's the old saying is You could go go faster alone. But further as a team and and not a lot of folks have been talking about that team productivity, we we clearly saw the hit the positive hit on productivity, especially in the in the technology business. So So my question then is so you expect? You know H Q doesn't go away. Maybe it gets, you know, maybe it gets smaller, Uh, but so is their pent up demand for technology spending at the headquarters. Because you've been you've been, you know, pushing tech out out to the edge out to the remote workers. Securing those remote workers figuring out better ways to collaborate is their pent up demand at H. Q. >>Um, absolutely. We've been, you know, we've been actually exploring different technologies. We've been uh, looking at what are things that you know could help create a different kind of experience, eh? So I do think it will be some different types of technology. Those would be the things that maybe aren't even out there developed yet on Have you create some of those comparable experiences. So I think that the notion of you know individuals will continue to thrive, but we've got to start working on How do we continue to enhance that? That team, um, collaborative productivity environment that looks and feels different than what it might look like today. Yeah. >>They got to leave it there. Great as always. Having you in the Cube. Thanks so much for participating in Cuban Cloud. >>Great. It's great to be here. Thank you. >>Keep it right there. Back more content right after this short break. >>Yeah.

>>from around the globe. It's the Cube presenting Cuban cloud brought to you by Silicon angle. The cube on cloud continues. We're here with Anna Pinza, who is the chief development officer and Anna Plan. We've been unpacking the future of Cloud. We've heard from a number of CEOs how they're thinking about Cloud in the coming decade. And first of all, Anna, welcome back to the Cube. Thanks for participating. It's great to see you again. >>It's great to see you, Dave. And I'm so excited to be here with you again, so hopefully we'll be doing this soon. >>I hope in 2021 will be able to be face to face everybody. Oh, no. A lot of respect. You think about the CEO role, something that you're intimately familiar with its unique because she or he has a very wide observation space across the company. You know, where is the GM or a business line manager there, You know, most concerned with their respective business, the CEO, they're gonna worry about the whole enchilada. And we've heard a lot in this program about digital transformation. We've heard a lot, of course, in the past couple of years, a lot of it was lip service, but but digital transformation, it's no longer optional. What's changed, in your view, in the way that businesses air going about it? >>You know, Dave, I mean, from my perspective, it's interesting. And this year in particular has been really telling for us, right? So I think before many companies were thinking about Hey, I wanna be online, I wanna grow my revenues, you know, with with digital I wanna have a presence. But what's happened actually this year with covert in particular, is that it's gone from being kind of a good to have, you know, to really ah, fundamental necessity. We must have it. And so when I talked to CEOs today, they're really thinking about different kinds of things than before, not just going digital, but how do I enable um, my people toe work remotely right? I've got to enable that how doe I bring the agility and the flexibility that I need in our business, especially with these new ways of working right? How do I look at business resiliency? You know, not just from a you know, something happens, and then how do I recover from it? But also how do I help our, You know, our company and our people then actually spring forward and grow from where we are. So it's gone from a a topic that was happening at the CEO, maybe at the business level. But now it's really also a fundamental CEO and board conversation. And so now we're seeing the CEO is having to present two boards. You know, what is our digital transformation? Are our digital strategy. So I wonder what >>you've seen in that regard. I'm interested in what role cloud plays and supporting those digital initiatives. But more specifically, you know, cloud migration came, you know, off the charts in terms of interest because of co vid. But you had those that that were, you know, deep into cloud had a lot of experience of those maybe not as much. Are you seeing any kind of schism in the marketplace where there's maybe a great advantage to those who really had years of experience on may be a disadvantage to those who didn't or is there kind of an equilibrium you're seeing in the market place? How do you see that playing out? >>Yeah. I mean, you know, What I'm seeing is that I think there used to be a spectrum of CEOs and effect, you know, the ones that were kind of a little bit, you know, you know, forward, ahead on the cloud, both on cloud infrastructure as well, Assassin. Right. And what are the services that we have? And then there were some that were really, um, you know, trying to think about what's the security, you know, implications of the cloud. And, you know, is it more expensive? And you know, So there was this spectrum of CEOs and I think now what's happened is there's such a business imperative that I think CEO s air saying, Look, I'm either gonna survive, you know, in this new world with the agility and the flexibility that I need And so cloud, you know, I'm seeing a lot of CEO is really saying Okay, Cloud is not just fashionable, but it z in and a necessity, right? And we must on we must do it. And I think frankly, the c e. O. S that don't embrace the cloud and that level of agility are going to struggle, right? It's a it's really a personal imperative. for a CEO in addition to sort of for the company. So >>a lot of times we talk about, you know, the three dimensions of people, process and technology, and I'm interested in your thoughts on how cloud has affected those traditional structures and the value chains. I mean, you've got some people are really good a text. Some people are really good at people. Some people are really good at process. Has the cloud affected that is, it upended? It changed it in any way. >>Yeah. I mean, let's let's, like, unpack that a little bit. You know, Dave, because if you think about process, I mean, one of the interesting things about the cloud is that And if you think about the cloud as going all the way from, like I as their sort of infrastructure all the way up the stack toe, actually providing business processes embedded, you know, in in a fast service, then from a process perspective and for CEOs, it's really upended how they think about business process reengineering in their companies. Um, if I think even, you know, five years ago, where you would have ah whole organization, that's, you know, focused on business process reengineering You do that? It takes a long time. You know, you get a consultant, maybe to help you, and then you work through that process. If you look at a SAS service like Anna plan today, where we our goal is, for example, toe orchestrate business performance. We were assassin business planning platform. We've incorporated into our platform that business process. Right. So the role of the CEO relative to business process and effect changes Right now, it's about how the leverage, ah, cloud infrastructure, and then how do you enable the customization is on top of that. But generally speaking, that's a lot easier than having to think about re engineering the whole company. Um, if you think about the technology stock, obviously the cloud, uh, embeds a lot of technology, you know, in the cloud. Right. So you have a lot of native services that are available to you. Um, that is awesome from a talent perspective, you know, because before, maybe you need to have, you know, needed to have database experts or, you know, kubernetes experts. And not that we don't need those today. But many of those capabilities come native in the cloud today. So, in effect, how it helps the CEO is to provide sort of this ecosystem of talent kind of embedded in what the cloud provider does. Right? So >>I wondered. So stay on that for a minute. So remember, before Amazon announced a W s and whether 2006 it was CEO said to me, >>Yeah, I'm thinking >>about maybe I don't need to run my own email, right? So because you have to have seen the SAS ification of of of businesses, which to your point, you know, makes things, uh, simpler and that I can focus on other areas and not to worry about, you know, managing infrastructure to support APS. At the same time you've had this proliferation of cloud you mentioned, of course, that you're with Anna Plan. You see, you got work day, you got Salesforce. You've got service now Oracle, APS and and people struggle. Okay, how do I get these things Talking to whether there's that worried about that data layer. So there's this new level of complexity. How do you see that playing out in the next decade? >>Yeah. You know, we used to say that, you know, we sort of, um, shift. What we do at a certain level and now is an organization we start to look at kind of higher value outcomes, right. And so I see that happening. And you're absolutely right. The conversations that I have with customers now are Hey, um, you know, there's things that are enabled by the cloud, and then on top of that, you need a set of a P i s or connectors or ways to get data in and out, you know, in and out of a particular system or ways to link. In our case, we're linking with Salesforce toe, Anna plan, toe workday or other tools, right? And so you start to think more about the business outcome that you want. The CEO needs to be focused on that, um, instead of maybe, uh, sort of the fundamentals of the technology. Those come, you know, those come for you, and then it's really more about the partnership with the business side. Right to say Okay, what is it that you're trying to do and can I enable that through my you know, cloud architectures, the work days, you know, the adobes or or the sales forces of the world. So I think the conversation is changing. And from my perspective, what's really cool about that is, um it brings the CEO Thio, you know, really makes the CEO of business and thought leader a strategic leader, right, Because, uh, the I t shop is not just talking tech, you know, the top shop has toe talk a lot more about the outcome that they're trying to deliver. >>So I mean, in the early days of cloud, I just wanna pick up on what you just said. I mean, a lot of people in I t's saw the cloud is a threat to their livelihood. And e think I'm inferring from your statements that were largely through that dynamic. And the CEO is now really trying to make the cloud platform for transformation and monetization or whatever other organizational goal might be saving lives or better government. Is >>that sort >>of how you see it, that the role has changed to that? >>I know. I mean, I talked to so many companies, and it's still we're still going through that transition, so I don't think we're completely over the hump of, you know, cloud all day everywhere but a same time. Um, I think what the CEO so really focused on these days is really around business, agility and business outcomes for their partners. By the way, that's one of the things. The second thing, especially these days, is around people, you know, collaboration, communication. How do we, you know, facilitate interaction of people, whether inside or outside of the company on DSO? You know, that's, um that's a very different conversation for the CEO. It doesn't mean that we're not still having the basic conversation of how safe is the cloud. What security do you have built into the cloud, Right, Andi? But I think, frankly, Dave, that we've across the chasm where before it used to be. Hey, I'm a lot more secure on Prem and, you know, given the tremendous focus of the cloud providers and says companies have put on security, um, I see many more companies, you know, feeling very at ease and in fact, telling their organizations right, we actually need to switch to the cloud, including large. Um, you know, large companies that have compliance issues, you know, or like large financial companies. Many of those are making that switch as well. Well, >>it's interesting talk about security, but I think it's kind of a two edged sword, right? Because I think a lot of frankly, I think a lot of executives early days used security as a way to sort of kick the can >>down the road. But >>the reality was cloud, you know better. Worse you could make that argument is different. And so, you know, different concerns people. But it's still a the end of the day. Bad security practices Trump, >>you >>know, good security. And so that's what we've seen so many times that shared responsibility model on DSO. People are still >>learning there, so >>so security is almost this beast in and of itself. I'm interested in your thoughts on on the priorities. I mean, >>our >>customers are they streamlining their their tech investments? I mean, the major focus, as you pointed out on Cloud, has been it's a driver of agility and shifting. Resource is as we talked about. But there's this constant cost pressure, you know, the procurement. Looking at the Amazon Bill, Uh, do you see ah lot of the same going forward? Or do you think the value equation is shifting such that there'll be Maybe, you know, I t is less cost pressure is always gonna be cost pressure. I know, but But more value producer, >>I think I think you're right. I mean, I see it and I see it. Over the last six months, I've seen it really accelerate where CEOs are thinking about three things and one is business resiliency. When I talk about business resiliency, I talk about the ability to recover from crap that happens. You know, where you know, whether it's pandemics or, you know, global events and shifts that companies have to accommodate. Right? So that's one thing that I see them thinking about. The second one that we talked about a little bit is just agility. You know, I see them really focused on that. And the cloud enables that. And, you know, the third one in conversations is really speed innovation, because, um, you know, when companies air talking to cloud providers and particularly SAS cos what I see them talking about is Look, I've got this particular need and it would take me, you know, two years to do it with a legacy player because of, you know, I've got to do this on Prem. But you have the fundamentals built in. And I think I could do it with you in three months. So I think, you know, business Resiliency both to grow and toe recover from stuff. Um, agility and innovation are really three fundamental levers that I see for movement, uh, movement to the cloud. Right? Andi, any one of those that these days I mean, it's funny, uh, depending on who you talk Thio. Any one of those can propel a CEO to make a choice to make that choice. And when they have all of that together, um, they have a lot more, um, lift in effect As a CEO, they have a lot more leverage, right in terms of what they could do for their companies. Well, >>let's stay on innovation. I mean innovation. I've said many times in tech, >>you >>know, for decades it came, came from Moore's Law, it seems, seems so nineties to even say that it's true. So what's going to drive innovation in the in the coming years? I'm interested in your perspective on how machine intelligence and a I n m l on cloud, of course, play into that innovation agenda. >>Yeah. I mean, it's it's interesting, You know, I see it a lot in our business with Anna plan. Um, innovation comes from the ability to bring instead of what you do internally and match it with what's available in the external world. Right? And you mentioned it earlier. Data, You know, data is like the new currency. That's that's, like software, you know, eats the world. Now we talk about data, right? And, um and I think what's really going to drive innovation is being able to have access to the world's data once the company builds this digital DNA, You know, this digital foundation and puts, you know and is able to have access to that data, Then you start to make decisions. You know, you start Thio offer services. Um, you start thio, bring intelligence. Um, that wasn't available before, right? And, um, that's a really powerful thing for any company, whether you're doing, you know, forecasting. And you need to sort of bring the world's data. Whether you're a agricultural company, we talking. And in these days, um, innovation comes in the form of speed, you know, being able to just deliver something new to an audience faster. So to me, the cloud enables, You know, all of that the ability Thio bring in data. And then on top of that, I mean, think about all the A i m l innovation that's happening around the world. We we just launched an offer, actually, um, to be able to dio forecasting intelligent forecasting on top of the cloud we partner with with a W s forecast for that, Um, if we didn't have a cloud platform, you know, to do that and instead of a p i s you know, being digital that way really enables us, uh, the opportunity Thio toe match. You know, one plus one equals one, you know, 100. Really? And bringing the power of that to get to companies together to be ableto enable that type of innovation. >>Well, that that that's interesting. It reminds me of my friends. Ed Walsh is the CEO of a startup called Chaos Search. And you use the statement. He said, where we're standing on the shoulders of the giants, you know what you know, trying not trying to recreate it. And I think you know, you got what you just said is the same thing. You're sort of relying on others to build out cloud infrastructure. So there's a totally left field question. When you hear all the talks about breaking up big tech I >>want Is that a >>relevant to you? Because you figured okay, the clouds gonna be there. It's maybe more about search or it's about, you know, Facebook or, you know, Amazon's dominance. Interestingly, Microsoft's really not in those discussions anymore. They were the center of it >>back. No, no. >>But as a head of development for a company, does that even factor into the equation? And you're kind of not worry about that? >>No. I mean, I'll be honest for me personally. What I do is I compartmentalize my world, right. In a sense, I view I view the partnerships and we have partnerships with Google and AWS and Microsoft and others, Right? So, um, I view those as part of a non opportunity to really provide on ecosystem set of solutions right to customers and those air very powerful. I think those partnerships enable companies like ours, like Sasse companies, to innovate faster, right? And so I compartmentalize and I say those things are are wonderful. I don't know why you would want to break up those companies at the same time. Um, you know, part of what you're referring Thio, you know, has to do with, um more the social and the consumer elements of what's going on. But as a business leader, um, I really I really focused on what the power is, particularly in the enterprise. What is it that we can do for global enterprise companies? And at least in my mind, those two things tend to be separate. >>Couple of things, you said they're triggered my mind. One was ecosystems. We've been talking about data. One of our guests on this program, Alan Nance, has been talking about ecosystems and the power of ecosystems. And I definitely see Cloud is a platform to allow data sharing across those those clouds and then to form ecosystems and share data in ways that we really couldn't have, you know, half a decade or even you no longer ago. And that seems to be where ah lot of the innovation is going to occur. Some of the people talk about the flywheel effect, but it's the power of many versus the resource is of, you know, a few. >>And I'm such a big believer in the ecosystem play. And part of that is because, um, frankly, even over the last 20 years, that the skills that are required and the knowledge that required that is required is so specialized. Dave, you know, if you think about, you know, a I m l and all the algorithms that we need to know when the innovation that's happening there. And so I really don't think that there's any one company that can serve a customer alone, right? And if you think about it from a customer perspective, you know they're made up of their business is made up of needs from a lot of different parties that they're putting together, you know, to accommodate their business outcome. And so the only way to play right now in tech is is in a collaborative way in an ecosystem way. I think the mawr that companies like ours worked with other companies on these partnerships. And frankly, by the way, I think in the past, many companies that have made bold announcements and they would say, Oh, you know, I'm partnering with so and so and I've got this great partner, you know, partnership. And then nothing would happen. You know, like it was just a lot of, you know, talk. But I think what's actually happening now and it's enabled by the cloud, is, um, we have much more of a show me culture, right? We can we can actually say. Okay, well, let's say, uh, Anna plan is partnering with Google. Show me. You know, show me what you're actually doing. And I see our customers, um, asking for references of how these ecosystem partnerships air playing. Um, and, uh, because these stories air out there mawr, I think partnerships are actually much more feasible and and really and pragmatic. Yeah. >>Anna, we call those Barney deals, you know, I love you. You love me, would do a press release, and then nothing ever happens. >>That's right. That's right. And I think that Z that's not gonna work. Going forward day, right? People are asking for a lot more transparency. And so when we think about ecosystems, they really want the meat on the bone, right? They don't want just, uh, announcements that don't really help their business move forward. Yeah, >>And you know the other thing to the come back to data. It's always comes back to data, right? Every conversation. But the data that's created out of that ecosystem is gonna throw off, you know, new capabilities and new data products, data services. And that, to me, is a really exciting, you know, new chapter, I think of cloud. >>Yeah, and it's interesting. You know, the conversations I'm having now are are about data and believe it or not, also about metadata, right? Because people are trying to analyze what's happening with the cloud. You know, among cloud providers what our customers doing with the data, right? How are they using data? How often are they accessing data? Um, security. You know, from that perspective, looking at who's accessing? Accessing what? So, um, the data conversation in the metadata conversation are truly enabled by the cloud and their their key. And they weren't that easy to do in a prior, you know, legacy sort of environment. There's >>a great point. I'm glad you brought that up, because legacy, environment, all the all that metadata that data about the data is locked inside of these systems. And if you're gonna go across clouds and you're gonna have it secure and govern. You've gotta have that metadata visibility and a point of control that actually can see that and and can manage it. So thank you for that at that point. And thank you for coming on the on the Cuban participating. The Cuban cloud has been great having you. >>Thank you so much for having me. It's been a pleasure. >>Alright, Keep it right there. Everybody mawr from the Cuban cloud right after this short break.

>>from around the globe. It's the Cube with digital coverage of AWS reinvent 2020 sponsored by Intel, AWS and our community partners. Welcome back to the Cubes Live coverage of AWS reinvent 2020. It's virtual this year. We're not in person because of the pandemic. We're doing the remote Cube Cube Virtual were the Cube virtual. I'm your host, John for here with Andy Jassy, the CEO of Amazon Web services, in for his annual at the end of the show comes on the Cube. This year, it's virtual Andy. Good to see you remotely in Seattle or in Palo Alto. Uh, Dave couldn't make it in a personal conflict, but he says, Hello, great to see you. >>Great to see you as well, John. It's an annual tradition. On the last day of reinvent. I wish we were doing it in person, but I'm glad at least were able to do it. Virtually >>the good news is, I know you could arrested last night normally at reinvent you just like we're all both losing our voice at the end of the show. At least me more than you, your and we're just at the end of like okay, Relief. It happens here. It's different. It's been three weeks has been virtual. Um, you guys had a unique format this year went much better than I expected. It would go on because I was pretty skeptical about these long, um, multiple days or weeks events. You guys did a good job of timing it out and creating these activations and with key news, starting with your keynote on December 1st. Now, at the end of the three weeks, um, tell me, are you surprised by the results? Can you give us, Ah, a feeling for how you think everything went? What's what's your take So far as we close out reinvented >>Well, I think it's going really well. I mean, we always gnome or a Z get past, reinvent and you start, you know, collecting all the feedback. But we've been watching all the metrics and you know, there's trade offs. Of course, now I think all of us giving our druthers would be together in Las Vegas, and I think it's hard to replace that feeling of being with people and the excitement of learning about things together and and making decisions together after you see different sessions that you're gonna make big changes in your company and for your customer experience. And yeah, and there's a community peace. And there's, you know, this from being there. There's a concert. The answer. I think people like being with one another. But, you know, I think this was the best that any of us could imagine doing doing a virtual event. And we had to really reinvent, reinvent and all the pieces to it. And now I think that some of the positive trade offs are they. You get a lot mawr engagement than you would normally get in person So normally. Last year, with about 65,000 people in Las Vegas this year, we had 530,000 people registered to reinvent and over 300,000 participate in some fashion. All the sessions had a lot more people who are participating just because you remove the constraints of of travel in costs, and so there are trade offs. I think we prefer being together, but I think it's been a really good community event, um, in learning event for for our customers, and we've been really pleased with it so >>far. No doubt I would totally agree with you. I think a lot of people like, Hey, I love to walk the floor and discover Harry and Sarah Davis moments of finding an exhibit her and the exhibit hall or or attending a session or going to a party, bumping into friends and seeing making new friends. But I think one of the things I want to get your reaction to it. So I think this is comes up. And, you know, we've been doing a lot of Q virtual for the past year, and and everyone pretty much agrees that when we go back, it's gonna be a hybrid world in the sense of events as well as cloud. You know that. But you know, I think one of the things that I noticed this year with reinvent is it almost was a democratization of reinvent. So you really had to reinvent the format. You had 300,000 plus people attend 500 pending email addresses, but now you've got a different kind of beehive community. So you're a bar raiser thinker. It's with the culture of Amazon. So I gotta ask you do the economics does this new kind of extra epiphany impact you and how you raise the bar to keep the best of the face to face when it comes back. And then if you keep the virtual any thoughts on how to leverage this and kind of get more open, it was free. You guys made it free this year and people did show up. >>Yeah, it's a really good question, and it's probably a question will be better equipped to answer in a month or two after we kind of debrief we always do after reading that we spend. Actually, I really enjoy the meeting because the team, the Collective A. W s team, works so hard in this event. There's so many months across everything. All the product teams, um, you know, all the marketing folks, all the event folks, and I think they do a terrific job with it. And we we do about 2.5 3 hour debrief on everything we did, things that we thought was really well the things that we thought we could do better and all the feedback we get from our community and so I wouldn't be surprised if we didn't find things from what we tried this year that we incorporate into what we do when we're back to being a person again. You know, of course, none of us really know when we'll be back in person again. Re event happens to fall on the time of the year, which is early December. And so you with with a lot of people seemingly able to get vaccinated, probably by you know, they'd spring early summer. You could kind of imagine that we might be able to reinvent in person next year. We'll have to see e think we all hope we will. But I'm sure there are a number of pieces that we will take from this and incorporate into what we do in person. And you know, then it's just a matter of how far you go. >>Fingers crossed and you know it's a hybrid world for the Cube two and reinvent and clouds. Let's get into the announcement. I want to get your your take as you look back now. I mean, how many announcements is you guys have me and a lot of announcements this year. Which ones did you like? Which one did you think were jumping off the page, which ones resonated the most or had impact. Can you share kind of just some stats on e mean how many announcements launches you did this >>year? But we had about 100 50 different new services and features that we announced over the last three weeks and reinvent And there, you know the question you're asking. I could easily spend another three hours like my Kino. You know, answering you all the ones that I like thought were important. You know, I think that, you know, some of the ones I think that really stood out for people. I think first on the compute side, I just think the, um the excitement around what we're doing with chips, um, is very clear. I think what we've done with gravitas to our generalized compute to give people 40% better price performance and they could find in the latest generation X 86 processors is just It's a huge deal. If you could save 40% price performance on computer, you get a lot more done for less on. Then you know some of the chip work we're doing in machine learning with inferential on the inference chips that we built And then what? We announced the trainee, um, on the machine learning training ship. People are very excited about the chip announcements. I think also, people on the container side is people are moving to smaller and smaller units of compute. I think people were very taken with the notion of E. K s and D. C s anywhere so they can run whatever container orchestration framework they're running in A. W s also on premises. To make it easier, Thio manage their deployments and containers. I think data stores was another space where I think people realize how much more data they're dealing with today. And we gave a couple statistics and the keynote that I think are kind of astonishing that, you know, every every hour today, people are creating mawr content that there was in an entire year, 20 years ago or the people expect more data to be created. The next three years in the prior 30 years combined these air astonishing numbers and it requires a brand new reinvention of data stores. And so I think people are very excited about Block Express, which is the first sand in the cloud and there really excited about Aurora in general, but then Aurora surveillance V two that allow you to scale up to hundreds of thousands of transactions per second and saved about 90% of supervision or people very excited about that. I think machine learning. You know, uh, Sage Maker has just been a game changer and the ease with which everyday developers and data scientists can build, train, tune into play machine learning models. And so we just keep knocking out things that are hard for people. Last year we launched the first i D for Machine Learning, the stage maker studio. This year, if you look at things that we announced, like Data Wrangler, which changes you know the process of Data Prep, which is one of the most time consuming pieces in machine learning or our feature store or the first see, I see deeper machine learning with pipelines or clarify, which allow you to have explain ability in your models. Those are big deals to people who are trying to build machine learning models, and you know that I'd say probably the last thing that we hear over and over again is really just the excitement around Connect, which is our call center service, which is just growing unbelievably fast and just, you know, the the fact that it's so easy to get started and so easy to scale so much more cost effective with, you know, built from the ground up on the cloud and with machine learning and ai embedded. And then adding some of the capabilities to give agents the right information, the right time about customers and products and real time capabilities for supervisors. Throw when calls were kind of going off the rails and to be ableto thio, stop the the contact before it becomes something, it hurts. The brand is there. Those are all big deals that people have been excited about. >>I think the connecting as I want to just jump on that for a second because I think when we first met many, many years ago, star eighth reinvent. You know the trends are always the same. You guys do a great job. Slew of announcements. You keep raising the bar. But one of the things that you mentioned to me when we talked about the origination of a W S was you were doing some stuff for Amazon proper, and you had a, you know, bootstrap team and you're solving your own problems, getting some scar tissue, the affiliate thing, all these examples. The trend is you guys tend to do stuff for yourself and then re factor it into potentially opportunities for your customers. And you're working backwards. All that good stuff. We'll get into that next section. But this year, more than ever, I think with the pandemic connect, you got chime, you got workspaces. This acceleration of you guys being pretty nimble on exposing these services. I mean, connect was a call center. It's an internal thing that you guys had been using. You re factored that for customer consumption. You see that kind of china? But you're not competing with Zoom. You're offering a service toe bundle in. Is this mawr relevant? Now, as you guys get bigger with more of these services because you're still big now you're still serving yourself. What? That seems to be a big trend now, coming out of the pandemic. Can you comment on um, >>yeah, It's a good question, John. And you know we do. We do a bunch of both. Frankly, you know, there there's some services where our customers. We're trying to solve certain problems and they tell us about those problems and then we build new services for him. So you know a good example that was red shift, which is our data warehouse and service, you know, two or three very large customers of ours. When we went to spend time with them and asked them what we could do to help them further, they just said, I wish I had a data warehousing service for the cloud that was built in the AWS style way. Um and they were really fed up with what they were using. Same thing was true with relation databases where people were just fed up with the old guard commercial, great commercial, great databases of Oracle and Sequel Server. And they hated the pricing and the proprietary nature of them and the punitive licensing. And they they wanted to move to these open engines like my sequel and post dress. But to get the same performance is the commercial great databases hard? So we solve that problem with them. With Aurora, which is our fastest growing service in our history, continues to be so there's sometimes when customers articulate a need, and we don't have a service that we've been running internally. But we way listen, and we have a very strong and innovative group of builders here where we build it for customers. And then there are other cases where customers say and connect with a great example of this. Connect with an example where some of our customers like into it. And Capital One said, You know, we need something for our contact center and customer service, and people weren't very happy with what they were using in that space. And they said, You, you've had to build something just to manage your retail business last 15, 20 years Can't you find a way to generalize that expose it? And when you have enough customers tell you that there's something that they want to use that you have experienced building. You start to think about it, and it's never a simple. It's just taking that technology and exposing it because it's often built, um, internally and you do a number of things to optimize it internally. But we have a way of building services and Amazon, where we do this working backwards process that you're referring to, where We build everything with the press release and frequently asked questions document, and we imagine that we're building it to be externalized even if it's an internal feature. But our feature for our retail business, it's only gonna be used as part of some other service that you never imagine Externalizing to third party developers. We always try and build it that way, and we always try to have well documented, hardened AP eyes so that other teams can use it without having to coordinate with those teams. And so it makes it easier for us to think about Externalizing it because we're a good part of the way there and we connect we. That's what we did way generalized it way built it from the ground up on top of the cloud. And then we embedded a bunch of AI and it so that people could do a number of things that would have taken him, you know, months to do with big development teams that they could really point, click and do so. We really try to do both. >>I think that's a great example of some of the scale benefits is worth calling out because that was a consistent theme this past year, The people we've reported on interviewed that Connect really was a lifeline for many during the pandemic and way >>have 5000 different customers who started using connect during the pandemic alone. Where they, you know, overnight they had to basically deal with having a a call center remotely. And so they picked up connect and they spun up call center remotely, and they didn't really quickly. And you know, it's that along with workspaces, which are virtual desktops in the cloud and things like Chime and some of our partners, Exume have really been lifelines for people. Thio have business continuity during a tandem. >>I think there's gonna be a whole set of new services that are gonna emerge You talked about in your keynote. We talked about it prior to the event where you know, if this pandemic hit with that five years ago, when there wasn't the advancements in, say, videoconferencing, it'd be a whole different world. And I think the whole world can see on full display that having integrated video communications and other cool things is gonna have a productivity benefit. And that's kind >>of could you imagine what the world would have been like the last nine months and we didn't have competent videoconferencing. I mean, just think about how different it would have been. And I think that all of these all of these capabilities today are kind of the occult 1.5 capabilities where, by the way, thank God for them. We've we've all been able to be productive because of them. But there's so early stage, they're all going to get evolved. I'm so significantly, I mean, even just today, you know, I was spending some time with with our team thinking about when we start to come back to the office and bigger numbers. And we do meetings with our remote partners, how we think about where the center of gravity should be and who should be on video conferencing and whether they should be allowed to kind of video conference in conference rooms, which are really hard to see them. We're only on their laptops, which are easier and what technology doesn't mean that you want in the conference rooms on both sides of the table, and how do you actually have it so that people who are remote could see which side of the table. I mean, all this stuff is yet to be invented. It will be very primitive for the next couple few years, even just interrupting one another in video conferencing people. When you do it, the sound counsel cancels each other out. So people don't really cut each other off and rip on one another. Same way, like all that, all that technology is going to get involved over time. It's a tremendous >>I could just see people fighting for the mute button. You know, that's power on these meetings. You know, Chuck on our team. All kidding aside, he was excited. We talked about Enron Kelly on your team, who runs product marketing on for your app side as well as computer networking storage. We're gonna do a green room app for the Q because you know, we're doing so many remote videos. We just did 112 here for reinvent one of things that people like is this idea of kind of being ready and kind of prepped. So again, this is a use case. We never would have thought off if there wasn't a pandemic. So and I think these are the kinds of innovation, thinking that seems small but works well when you start thinking about how easy it could be to say to integrate a chime through this sdk So this is the kind of things, that kind thing. So so with that, I want to get into your leadership principles because, you know, if you're a startup or a big company trying to reinvent, you're looking at the eight leadership principles you laid out, which were, um don't be afraid to reinvent. Acknowledge you can't fight gravity. Talent is hungry to reinvent solving real customer problems. Speed don't complex. If I use the platform with the broader set of tools, which is more a plug for you guys on cloud pull everything together with top down goals. Okay, great. How >>do you >>take those leadership principles and apply them broadly to companies and start ups? Because I think start ups in the garage are also gonna be there going. I'm going to jump on this wave. I'm inspired by the sea change. I'm gonna build something new or an enterprise. I'm gonna I'm gonna innovate. How do you How do you see these eight principles translating? >>Well, I think they're applicable to every company of every size and every industry and organization. Frankly, also, public sector organizations. I think in many ways startups have an advantage. And, you know, these were really keys to how to build a reinvention culture. And startups have an advantage because just by their very nature, they are inventive. You know, you can't you can't start a company that's a direct copy of somebody else that is an inventive where you have no chance. So startups already have, you know, a group of people that feel insurgent, and they wanted their passionate about certain customer experience. They want to invent it, and they know that they they only have so much time. Thio build something before money runs out and you know they have a number of those built in advantages. But I think larger companies are often where you see struggles and building a reinvention and invention culture and I've probably had in the last three weeks is part of reinvent probably about 40 different customer meetings with, you know, probably 75 different companies were accomplished in those or so and and I think that I met with a lot of leaders of companies where I think these reinvention principles really resonated, and I think they're they're battling with them and, you know, I think that it starts with the leaders if you, you know, when you have big companies that have been doing things a certain way for a long period of time, there's a fair bit of inertia that sets in and a lot of times not ill intended. It's just a big group of people in the middle who've been doing things a certain way for a long time and aren't that keen to change sometimes because it means ripping up something that they that they built and they remember how hard they worked on it. And sometimes it's because they don't know what it means for themselves. And you know, it takes the leadership team deciding that we are going to change. And usually that means they have to be able to have access to what's really happening in their business, what's really happening in their products in the market. But what customers really think of it and what they need to change and then having the courage and the energy, frankly, to pick the company up and push him to change because you're gonna have to fight a lot of inertia. So it always starts with the leaders. And in addition to having access that truth and deciding to make the change, you've gotta also set aggressive top down goal. The force of the organization moved faster than otherwise would and that also, sometimes leaders decide they're gonna want to change and they say they're going to change and they don't really set the goal. And they were kind of lessons and kind of doesn't listen. You know, we have a term the principal we have inside Amazon when we talk about the difference between good intentions and mechanisms and good intentions is saying we need to change and we need to invent, reinvent who we are and everyone has the right intentions. But nothing happens. Ah, mechanism, as opposed to good intention, is saying like Capital One did. We're going to reinvent our consumer digital banking platform in the next 18 months, and we're gonna meet every couple of weeks to see where we are into problem solved, like that's a mechanism. It's much harder to escape getting that done. Then somebody just saying we're going to reinvent, not checking on it, you know? And so, you know, I think that starts with the leaders. And then I think that you gotta have the right talent. You gotta have people who are excited about inventing, as opposed to really, Justin, what they built over a number of years, and yet at the same time, you're gonna make sure you don't hire people who were just building things that they're interested in. They went where they think the tech is cool as opposed to what customers want. And then I think you've got to Really You gotta build speed into your culture. And I think in some ways this is the very biggest challenge for a lot of enterprises. And I just I speak to so many leaders who kind of resigned themselves to moving slowly because they say you don't understand my like, companies big and the culture just move slow with regulator. There are a lot of reasons people will give you on why they have to move slow. But, you know, moving with speed is a choice. It's not something that your preordained with or not it is absolutely a leadership choice. And it can't happen overnight. You can't flip a switch and make it happen, but you can build a bunch of things into your culture first, starting with people. Understand that you are gonna move fast and then building an opportunity for people. Experiment quickly and reward people who experiment and to figure out the difference between one way doors and two way doors and things that are too way doors, letting people move quick and try things. You have to build that muscle or when it really comes, time to reinvent you won't have. >>That's a great point in the muscle on that's that's critical. You know, one of things I want to bring up. You brought on your keynote and you talk to me privately about it is you gave attribute in a way to Clay Christensen, who you called out on your keynote. Who was a professor at Harvard. Um, and he was you impressed by him and and you quoted him and he was He was your professor there, Um, your competitive person and you know, companies have strategy departments, and competitive strategy is not necessarily departments of mindset, and you were kind of brought this out in a zone undertone in your talk, we're saying you've got to be competitive in the sense of you got to survive and you've got to thrive. And you're kind of talking about rebuilding and building and, you know, Clay Christians. Innovative dilemma. Famous book is a mother, mother teachings around metrics and strategy and prescriptions. If he were alive today and he was with us, what would he be talking about? Because, you know, you have kind of stuck in the middle. Strategy was not Clay Christensen thing, but, you know, companies have to decide who they are. Their first principles face the truth. Some of the things you mentioned, what would we be talking with him about if we were talking about the innovator's dilemma with respect to, say, cloud and and some of the key decisions that have to be made right now? >>Well, then, Clay Christensen on it. Sounds like you read some of these books on. Guy had the fortunate, um, you know, being able to sit in classes that he taught. And also I got a chance. Thio, meet with him a couple of times after I graduated. Um, school, you know, kind of as more of a professional sorts. You can call me that. And, uh, he he was so thoughtful. He wasn't just thoughtful about innovation. He was thoughtful about how to get product market fit. And he was thoughtful about what your priorities in life were and how to build families. And, I mean, he really was one of the most thoughtful, innovative, um, you know, forward thinking, uh, strategist, I had the opportunity Thio encounter and that I've read, and so I'm very appreciative of having the opportunity Thio learn from him. And a lot of I mean, I think that he would probably be continuing to talk about a lot of the principles which I happen to think are evergreen that he he taught and there's it relates to the cloud. I think that one of the things that quite talked all the time about in all kinds of industries is that disruption always happens at the low end. It always happens with products that seem like they're not sophisticated enough. Don't do enough. And people always pooh pooh them because they say they won't do these things. And we learned this. I mean, I watched in the beginning of it of us. When we lost just three, we had so many people try and compare it Thio things like e m. C. And of course, it was very different than EMC. Um, but it was much simpler, but And it and it did a certain set of activities incredibly well at 1 1/100 of the price that's disrupted, you know, like 1 1/100 of the price. You find that builders, um, find a lot of utility for products like that. And so, you know, I think that it always starts with simple needs and products that aren't fully developed. That overtime continue to move their way up. Thio addressing Maura, Maura the market. And that's what we did with is what we've done with all our services. That's three and easy to and party ass and roar and things like that. And I think that there are lots of lessons is still apply. I think if you look at, um, containers and how that's changing what compute looks like, I think if you look at event driven, serverless compute in Lambda. Lambda is a great example of of really ah, derivative plays teaching, which is we knew when we were building Lambda that as people became excited about that programming model it would cannibalize easy to in our core compute service. And there are a lot of companies that won't do that. And for us we were trying to build a business that outlasts all of us. And that's you know, it's successful over a long period of time, and the the best way I know to do that is to listen to what customers We're trying to solve an event on their behalf, even if it means in the short term you may cannibalize yourself. And so that's what we always think about is, you know, wherever we see an opportunity to provide a better customer experience, even if it means in the short term, make cannibalism revenue leg lambda with complete with easy to our over our surveillance with provisions or are we're going to do it because we're gonna take the long view, and we believe that we serve customers well over a long period of time. We have a chance to do >>that. It's a cannibalize yourself and have someone else do it to you, right? That's that's the philosophy. Alright, fine. I know you've got tight for time. We got a you got a hard stop, But let's talk about the vaccine because you know, you brought up in the keynote carrier was a featured thing. And look at the news headlines. Now you got the shots being administered. You're starting to see, um, hashtag going around. I got my shot. So, you know, there's a There's a really Momenta. Mit's an uplifting vibe here. Amazon's involved in this and you talked about it. Can you share the innovation? There can just give us an update and what's come out of that and this supply chain factor. The cold chain. You guys were pretty instrumental in that share your your thoughts. >>We've been really excited and privileged partner with companies who are really trying to change what's possible for all of us. And I think you know it started with some of the companies producing vaccines. If you look at what we do with Moderna, where they built their digital manufacturing sweet on top of us in supply chain, where they used us for computing, storage and data warehousing and machine learning, and and on top of AWS they built, they're Cove in 19 vaccine candidate in 42 days when it normally takes 20 months. I mean, that is a total game changer. It's a game changer for all of us and getting the vaccine faster. But also, you just think about what that means for healthcare moving forward, it zits very exciting. And, yeah, I love what carriers doing. Kariya is building this product on top of AWS called links, which is giving them end and visibility over the transportation and in temperature of of the culture and everything they're delivering. And so it, uh, it changes what happens not only for food, ways and spoilage, but if you think about how much of the vaccine they're gonna actually transport to people and where several these vaccines need the right temperature control, it's it's a big deal. And what you know, I think there are a great example to what carrier is where. You know, if you think about the theme of this ring and then I talked about in my keynote, if you want to survive as an organization over a long period of time, you're gonna have to reinvent yourself. You're gonna have to probably do it. Multiple times over and the key to reinventing his first building, the right reinvention culture. And we talk about some of those principles earlier, but you also have to be aware of the technology that's available that allows you to do that. If you look at Carrier, they have built a very, very strong reinvention culture. And then, if you look at how they're leveraging, compute and storage and I o. T at the edge and machine learning, they know what's available, and they're using that technology to reinvent what's what's possible, and we're gonna all benefit because of >>it. All right. Well, Andy, you guys were reinventing the virtual space. Three weeks, it went off. Well, congratulations. Great to go along for the ride with the cube virtual. And again. Thank you for, um, keeping the show alive over there. Reinvent. Um, thanks for your team to for including the Cube. We really appreciate the Cube virtual being involved. Thank you. >>It's my pleasure. And thanks for having me, John and, uh, look forward to seeing you soon. >>All right? Take care. Have a hockey game in real life. When? When we get back, Andy Jesse, the CEO of a W s here to really wrap up. Reinvent here for Cuba, Virtual as well as the show. Today is the last day of the program. It will be online for the rest of the year and then into next month there's another wave coming, of course. Check out all the coverage. Come, come back, It's It's It's online. It's all free Cube Cube stuff is there on the Cube Channel. Silicon angle dot com For all the top stories, cube dot net tons of content on Twitter. Hashtag reinvent. You'll see all the commentary. Thanks for watching the Cube Virtual. I'm John Feehery.

>>from around the globe. It's the Cube with digital coverage of AWS reinvent 2020 sponsored by Intel and AWS. Hello, everyone, and welcome back to the cubes. Continuing coverage of AWS reinvent 2020 Virtual the Cube Virtual. We're here covering the partner ecosystem and some of the new innovations coming from the reinvent community. Let's talk about something that anyone who drives a vehicle can relate to. Roadside assistance with me or Beth Davidson, chief marketing officer at a zero, and Raj borrows the vice president and c t o at zero folks, welcome to the Cube. >>Hello, nice to see you. >>So let's start with you. Maybe talk a little bit about your your mission, how you work with automakers. You've got, you know, a lot of good pipeline, their insurers and other others in the in the ecosystem. Tell us about the company. >>Absolutely. So for 50 years, we've been helping consumers with their cars. Um, that's what it comes down Thio. We know that one in three people has a roadside event every year on the way you think about that is, you know, if in three years you haven't had a roadside event, tick tock. You know, statistically, it's coming for you. We work with everybody. We work with the auto manufacturers. We work with the insurers. What we're trying to do is get closer to consumers. On the reason you may have never heard of a Gero is that's by design. Were white label. We work for our clients typically on. Do you know they trust us with their consumers? They trust us with their brands. Um, and we're just in the business of getting consumers back on the road. >>Thank you for that. So talk a little bit about how you approach this problem. I mean, you looked out roadside assistance, and you know, we can again all relate. Oh, am I up to date or at least the car? So there's gotta be some kind of 800 number in my glove compartment somewhere, right? So what was the state of roadside assistance before you guys got involved? And maybe we could get into sort of how you solve the problem. >>Yeah, I think that's a great question, Dave, as we look at roadside assistance, everyone things about picking up the phone number 800 number from the glove box compartment And over the years we have invested heavily on bringing a fully digital experience to our customers from insurance companies to AM. And when this Alexa opportunity came up earlier this summer, he said, Hi. How about taking that digital experience, adding, all the Alexa do goods goods about voice interaction, making it very interactive for the users to request that experience in a very normal consumer friendly, friendly were and brought that we integrated all those services got that whole uber like experience with for roadside assistance? >>Yeah. Now. So, Beth, you know, I reminded when, like the smart TV first came out, you had a type in right, and we're really getting spoiled now. It should be easy as a blink. Okay, so you're unveiling blink, you know, what's this service all about? >>So this service is about, you know, trying to get to consumers as easy as we can and getting removing the friction. Right? So what Rogers just talking about is again we asked consumers. We say, you know, imagine that tomorrow you went out and there was a flat tire on your car in your driveway. What do you dio? And universally, they pause and They're like, I don't know. I haven't thought about it, right. And then they start making up stuff. Like maybe I'm gonna go through the glove box. Maybe I'm going to go through my files. But wouldn't it be great if they could just kind of talked to the air and say, Alexa, what? Doe ideo and have it work for them, you know, And that's one friction. The second friction is consumers actually don't know their addresses or don't know it. Well, we joke around the office about the difference between saying you're on route one and Route one A is is the difference between 20 minutes of that tow truck getting to you in time. You know, these air points of friction that technology can help us with, you know, and then with payments even better, Right? So the fact that you can pay for this thing with Amazon pay and you don't have to worry about having cash for a driver or have a credit card. I mean, there's just so many points of friction that are reduced by using Alexa. >>Okay, so let's talk about the the integrations here in the technical aspects of how you put everything together and made it work, and we'll get into some of the cloud aspect >>Attack launched. We're asking users to tell what they want, and they can tell the whole address. They can get the address from the Alexa device. Or if it is Alexa Auto. The GPS will provide us the Latin belong. And we take that address and we get what kind of experience they want. Whether it is a flat tire, we're going to send somebody else to put despair. If it is a jump start, we're gonna put send somebody Thio jumps out the vehicle. So depending on that, we put pull all that information together, get this consent for the user to charge their an Amazon parrot card on profile, and then go So it's literally to come to sentences. And then we're on. We're on to sending you experience with some of the text messages that will allow you to truck tractor truck coming down to your driver. >>Now I'll show my age. So yeah, we've all I don't have all but I've been locked out of the car many times Now, in the old days, used to be able to get a coat hanger and pop it open. But so? So that people still get locked out of their cars. >>Yes, cars. More often than not, it's, you know, the key. Fob stopped working, right? Lost the battery of my key fob these days. But it's the equivalent. >>Alright, so All right, so right. What else do you guys do in the cloud? Do you use a W s for your own business? Maybe share with us some of >>the over the years. For the past 78 years, we have, uh, integrated and got all of our technologies into the AWS cloud. And we have now revamped and re innovated on top of those and create a new product lines. We have accident scene management. We do, um, handle automatic clash notifications for some of our partner customers. We dio dealer service appointments, so we do a lot of these things. And all of these are not possible without the amazing teams. 20 or so teams that we have across three continents working on 50 plus, uh, approved services on aws, uh, innovating around the clock, bringing these new innovations to our market. >>So, Beth, you were saying earlier that you, you know, want to reach out to the consumer. I mean, how do you market? Uh, you obviously go through through partners. And I'm curious system, What's your go to market and maybe how you're different from from others in the marketplace, >>right? Eso again because we're white label with most of the client side business that we do, we help our clients message better on DSO. We talked to them about how often you have to remind people that this isn't a one and done, um, on the skill store for Alexa. You know how we're different is you know, you don't aske much as I love the branding that we came up with blank roadside. You know, you don't actually have to use it. You don't have to say, Alexa, open my blank roadside. You could just say, Alexa, help me with my flat tire, which really helps cut out the fact that I actually need to market the brand like a traditional market or would have had Thio. But our biggest problem is how do you market something to someone in that moment of need, right? How do I How do I prime you to get you to think about it way, way before you ever actually have the problem. >>And how do you charge for the service? >>Eso It's it's a flat fee on did. It's better than what consumers would be able to get on their own. Or at least we believe so. But it is a flat fee for any kind of road service, so it's flat tire. It's dead batteries. It's winching you out. You know, it's it's all of those things. Um, that can happen to you that are just kind of those minor everyday mishaps. >>Okay? And so and so do I. How do I get it? Do I do I have tow hope that my you know, if I'm leasing a car that the auto has it, can I go direct? How doe I >>all direct? It's all direct. So you don't have to worry about an I d number membership number. You're just paying for it out of your Amazon account on. Do you know you don't have to worry about knowing your how many digit vin number. You know, none of that stuff. It's just one and done. >>Awesome. So, Raja, I wonder if you could talk a little bit about your your scale. Um, maybe I don't know if you can share any metrics and what What factors? The cloud generally and a W s specifically has has played and enabling that scale. >>Yeah, we have amazing number of integrations with our Fortune 100 insurance companies. Um, over 35 insurance companies and we have 100 and 70 b two b clients today, Um, and we integrate with them were deeply, um, uh integrated into the building systems into their coverage systems. And all of that is to be able to provide that sub minute sub second experience to our customers when they're calling in, uh, when they need the service. Um, right now we do over a billion AP A calls. As a result of these transactions, all these integrations or for quarter and all of these, uh, our third parties, service providers who go around the on the roads and provide this location information today off the tow trucks to us, all of these 8 8000 or so trucks extreme that information to us almost on every hour. So we bring all that information together on the AWS platform, stream it back shaded back in a very secure private manner back to the customers, right at the moment of need. >>Yeah, So I mean, without the cloud, you'd be backing up. You know, the servers to the truck to the loading dock. And it would just take so much longer toe spin up new products. I would imagine that you guys have a lot of ideas about new data products or new services that you can you can provide. Um, you probably I'm sure you can tell us what they are, But but in terms of the time, it takes you to conceive toe to get to the market. That must be impressed with the cloud. >>Yeah, it's a fraction of what it used to take years ago when we were not in AWS, right? And it also allows us to not to spend all this time on worrying about the same thing that you used to worry about for every project. Now you can actually think about how, what how you let be able to leverage new innovations that are coming in and actually improve improve the experience with some kind of intelligence that is added on, which makes the experience much smoother for people. >>Well, Beth will give you last word. But first of all, thanks for helping us make our lives even even better and more convenient. But bring us home. What's the last word here? >>So the last word is, you know, we dio we do 12 million events a year right now, right? And if you if you like math, it's 35,000 day. It's 20 for every minute, you know. And the work that that Rajan team have done to make the scalable means we're ready to do the next 12 million on. Do you know we know. We know there are consumers out there having those events. We just want to be there for you, you know, take care of that frustrating event on get you back >>on the road. Well, it's just, you know, having you there and being able to push a button and talk to a device is just It's a game changer. So thank you guys for coming on the cube and sharing your story really interesting. Yeah. All right. Thanks for watching. Keep it right there. You're watching the cubes coverage of aws reinvent 2020. We'll be right back right after this short break