>>from >>around the >>globe, it's the cube >>with digital coverage of >>IBM think 2021 >>brought to >>you by IBM >>everybody welcome back to the cubes, continuous coverage of IBM think 2021 the virtual edition, my name is Dave Volonte and we're gonna talk about observe ability front and center for devops and developers, things are really changing. We're going from monitoring and logs and metrics and just this mess and now we're bringing in a I and machine intelligence and with us is Pablo Baron, who is the Ceo of inst ana, which is an IBM company that IBM acquired november of 2020. Pablo great to see you. Thanks for joining us from Munich. >>Thanks for having me. Thanks a lot. >>You're very welcome. So you know, I always love to talk to founders and co founders and try to understand sort of why they started their companies and congratulations on the exit. That's awesome. After 55 I'm sure grinding but relatively short years. Why did you guys start in stana? And what were some of the trends that you saw in that you're seeing now in the observe ability space? >>Yeah, that's a very good question. So, um, the journey began ah, as we worked in the company called code centric, the majority of the founders and uh, we actually specialized in troubleshooting uh, well, real hard customer performance problems. We used all different kinds of A PM solutions for that. You know, we, we've built expertise like collectively maybe 300 years in the whole company. So we would go from one um, adventure into the other and see customers suffer and help them, you know, overcome this trouble. At some point we started seeing architectures coming up that were not well covered by the classic KPM sellers, like people went after this. Sudha, Sudha, Sudha virtualization all in containers, you know, just dropping random workloads into container running this maybe in cabinet as well. Not not actually not 56 ago, but years ago. But you get the point, we started with the heavy continues container ization and we've seen that a classic A PM solution that is heavily, you know, like machinery rented and and some of them you've encountered by the number of CPU etcetera etcetera. They were very well suited for this. Plus all of the workloads are so dynamic. They keep coming and going. You cannot really, you know, place your agent there that is not adopting to change continuously. We've seen this coming and we really, we've seen the trouble that we cannot really support the customers properly. So after looking around, we just said, hey, uh, I think it's time to just implement a new one. Right? So we started that adventure with the idea of a constant change, with the idea of everything is containers, with idea of everything goes towards glove needed. People just run random uh workloads of all different versions that are linked altogether than this. Whole microservices trend came up where people would just break down their monoliths and resilience of literally very small components that could be deployed independently. Everything keeps changing all the time. The classic solution cannot keep up with that. >>So let me pick it up from there if I can. So it's interesting. Your timing is quite amazing because as you mentioned, it really wasn't kubernetes when you started in the middle part of last decade. You know, containers have been around for a long time, but kubernetes weren't, it wasn't mainstream back then. So you had some foresight uh and and the market has just come right into your vision but but maybe talk a little bit about the way A. P. M. Used to work. It was, I started to talk about this. It was metrics, it was traces, it was logs, it was make your eyes bleed type of type of stuff. Um, and maybe you can talk about how you guys are different and how you're accommodating the rapid changes in the market today. >>Right? So well there is very, very many um cases this. So first of all we always have seen that the work that you should not be doing by hand. I mean we already said that you should not be doing this and you should be automating as much as possible. We see this everywhere in the industry that everything gets more and more automated. We want to animate through the whole continuous delivery cycle. Unfortunately monitoring was the space that probably never was automated before installing a came into place. So our idea was, hey, just just get rid of the unnecessary work because you keep people busy with stuff they should not be doing like manually watching dashboards, setting up agents with every single software change, like adopting configuration etcetera, etcetera, etcetera. All of these things can be done automatically, you know, to very, very, very large extent. And that's what we did. We did this from the beginning, everything we approached, we, we, we think twice about can we automate, you know, the maximum out of it And only if we see that it's, it's, you know, too much an effort, etcetera. We will, we will probably not do this, but otherwise we're not, we don't do the same thing. You know, you can compromise the other right? The other aspect is, so this is different to the classic A PM world that is typically very expert heavy. The expert comes into, you know, into the project and really starts configuring etcetera, etcetera etcetera. This is this is a totally different approach the other approaches continuous change and you know, adapting to the continuous change, container comes up, you need to know what this kind of workload, what kind of work load this thing is, how it is connected to all the others. And then at some point probably it's gonna it's gonna go through the change and get a new versions etcetera etcetera. You need to capture this whole life cycle without really changing your monitoring system. Plus, if you move your workloads from the classic Monolith, through microservices on to cuba needs, you kind of transitioning, you know, it's a journey and this journey, you want to keep your business abstractions as stable as possible. The term application is nothing that you should be reconfiguring. Once you figure out what is payment in your system. This is a stable abstraction. It doesn't matter if you deliver it on containers. Doesn't matter if this is just a huge JBM that owns the whole box alone. It simply doesn't matter. So we we decoupled everything infrastructure from everything logic and uh the foundation for this is what we call the dynamic ground. It technically is pretty much a data structure. Regular graph data structure with, you know, connections in multiple directions from different notes. But the point is that we actually decompose the whole, I teach geography. This is the term I like to use because there is, there is no other its infrastructure, its topology, it is on the other hand, just, you know, same sides of the same thing. When you have a limits process, it can be HIV m it's just at the same time, it can be approached with an application, it's the same thing and given different names and this different faces of this thing can be linked with everything else in a totally different way. So we're decomposing this from the beginning of the product which allows us to to have a very deep and hierarchical understanding of problems when it appears. So we can nail it not down to a metric. That probably doesn't make sense to any user but really name the cause by look in this J. V. M, the drop wizard metric exercise that is misbehaving. This indicates that this particular piece of technology is broken and here's how it's broken. So there's a built in explanation to a problem. So um the the classic eight pm as I said, it is a very expert heavy um, territory we try to automate the expert. We have this guy called stan this is your you know, kind of virtual devoPS engineer has a I in there. It has some artificial brain, it never sleeps, it observes all of the problems. It really is an amazing guy because nobody likes him because he always tells you what's broken. You don't need to invite them to the party and give them a raise just there and conserving your systems. >>I like stand, I like stand better than fred, no offense to fred but friends of the guy in the lab coat that I have to call every time to help me fix my problems and what you're describing is end to end visibility or observe ability in terms that norm either normal people can understand or certainly stand, can understand and can automate. And that kind of leads me to this notion of anti patterns um getting software, we think of anti patterns as you know you have software hairballs and software bloat, you've got stovepipe systems, your your data guy by background and so you will understand stovepiped data systems, there's organizational examples of of of anti patterns like micromanagement or over an analysis by paralysis. If you will, how do anti patterns fit into this world? Of observe ability? What do you see? >>Oh there's many, I could write a whole book actually about that. Um let me just list a few. So first of all it is valid for any kind of automation, what you can automate you should not be doing by hand, this is a very common entire pattern. People are just doing work by hand just because the lazy word, you know like repetitive work or there is no kind of foundation to automate that whatever the reason, this is clearly an anti pattern. What we, what we also see in the monitoring space are very interesting things like normally since the problems in the observe ability monitoring space is so hard, You normally send your best people watching grants who want them to contribute to the business value rather than waste the time observing charts that like 99 of them are normal. The other aspect, of course, is what we also have seen is the other side of the spectrum where people just send total mobilizes into the, into the problem of observe ability and let them learn on the subject. Which is also not a good thing because you cannot really I mean there are so many unknown unknowns for people who are not experts in the space. They will not catch the problem. You will go through pain, right? So it's not the learning project, that's not the research from a project. This is very essential to the operation of humor, business and humanity. And there's many examples like that, >>right? Yeah. So I want to end by just sort of connecting the dots so this makes a lot of sense. And if you think about, you know, Ivan Kushner said that IBM has got to win the architectural battle for hybrid cloud. And when I think of Hybrid cloud, I think of on prem connecting to public cloud, not only the IBM public cloud but other public clouds going across clouds going to the edge, bringing open shift and kubernetes to the edge and developing new supporting new workloads. So as I. T. Is like the university keeps expanding and it gets more and more and more complicated. So to your point humans are not going to be able to solve the classic performance problems in the classic way. Uh they're gonna need automation. So it really does fit well into iBMS hybrid cloud strategy, your, your thoughts and I'll give you the last word. >>Yeah, totally. I mean, I'm IBM generally is of course very far ahead in regards to research AI and all these things this death, sorry, those could be combined with an stand a very, very, you know, natively right. We we are prepared to automate using AI all of the well, I would want to claim that all of the monitoring observe ability problems. Of course, there is manual work in some, you know, in some cases you simply don't know what people want to observe. So you kind of need to give them names and that's where people come in. But this is more creative work. Like you don't want to do the stupid work with people. It doesn't, you know, there is no, it doesn't make any sense. And IBM of course, um requiring in stana gets, you know, the foundation for all of the things that used to be done by hand. Now, fully automated, combined within standard, combined with Watson, the ions, This is, this is huge. This is like a real great story, like the best research of the world eating. Uh, probably the best a PMC. >>That's great Pablo, really appreciate you taking us through Astana and the trends and observe ability and what's going on at IBM. And congratulations on your, your success and thanks for hanging with us with all the craziness going on at your abode. And uh really, it was a pleasure having you on. Thank you. >>Thanks a lot. >>All right, and thank you for watching everybody says Dave Volonte and our ongoing coverage of IBM, think 2021 you're watching the Cube? Yeah. Mhm

>> Live from San Francisco. It's the cube covering IBM thing twenty nineteen brought to you by IBM. >> Hello and welcome back to the Cubes. Live coverage here and savor still were alive for IBM. Think twenty nineteen. The Cubes Exclusive contract. Jon for a stimulant in our next two guests of the Cloud gurus and IBM and VM Where A. J. Patel senior vice president general manager Cloud Providers Software Business Unit. Good to see you again. Baron. Scram A general manager. IBM Cloud Guys. Thanks for Spend the time. Get to the cloud gurus. Get it? They're having What's going on? Having privilege. Osti Cloud's been around. We've seen the public Cloud Momentum hybrid Certainly been around for a while. Multi clouds of big conversation. People are having role of data that is super important. Aye, aye, anywhere you guys, an IBM have announced because I've been on this. I'm on >> a journey or a >> library for awhile. On premise. It was on VM, where all the good stuff's happening. This the customers customers want this talk about the relationship you guys have with IBM. >> You know, the broad of'em were IBM relationship over nine, ten years old. I had the privilege of being part of the cloud the last couple years. The momentum is amazing. Over seventeen hundred plus customers and the Enterprise customers, not your you know, one node trial customer. These are really mission critical enterprise customers using this at that scale, and the number one thing we hear from customers is make it easy for me to leverage Plowed right, operate in the world when I'm using my own prim and my public cloud assets make it seamless, and this is really what we've talked about a lot, right? How do we provide that ubiquitous digital platform for them to operate in this hybrid world? And we're privileged to have IBM Of the great partner in this journey >> are some of the IBM cloud, Ginny Rometty said on CNBC this morning. We saw the interview with my friend John Ford over there. Aye, aye. Anywhere means going run on any cloud. Watson with containers. That's cloud DNA. Sitting the cloud with good Burnett ease and containers is changing the game. Now you can run a lot of things everywhere. This's what customers want. End to end from on. Premise to wherever. How has that changed the IBM cloud posture? Its products? You share a little bit of that. >> You absolutely so look I mean, people have their data in different places, and as you know, it's a really expensive to move stuff around. You gotta make sure it's safe, etcetera, So we want to take our applications and run them against the data wherever they are right? And when you think about today's landscape in the cloud industry, I think it's a perfect storm, a good, perfect storm and that containers and Kubernetes, you know, everyone's rallying around at the ecosystem that consumers, the providers. And it just makes us easy for us to take that capability and really make it available on multicloud. And that's what we're doing. >> to talk about your joint customers. Because the BM where has a lot of operators running, running virtually change? For a long time, you guys have been big supporters of that and open source that really grew that whole generation that was seeing with cloud talk about your customers, your mo mentum, Howyou, guys air, just ballpark. How many customers you guys have together? And what if some of the things that they're doing >> all right? So I know this is a really interesting story. I was actually away from IBM for just over two years. But one of the last things I did when I was an IBM the first time around was actually start this Veum where partnership and seated the team that did it. So coming back, it's really interesting to see the uptake it's had, You know, we've got, like, seven hundred customers together over seventeen hundred customers. Together, we've moved tens of thousands of'em workloads, and as I just said, we've done it in a mission. Critical fashion across multiple zones across multiple regions. On now, you know, we want to take it to the next level. We want to make sure that these people that have moved their basic infrastructure and the mission critical infrastructure across the public cloud can extend those applications by leveraging the cloud near application that we have on our cloud. Plus, we want to make it possible for them to move their workloads to other parts of the IBM ecosystem in terms of our capabilities. >> Any one of the things we found was the notion of modernizer infrastructure, first lift and then transform. He's starting to materialize, and we used to talk about this has really the way the best way to use, cowed or use hybrid cloud was start by just uplifting your infrastructure and whether it's west back, you ask for some customers. I respect a great example. I think that we're talking about it in the Parisian. I joined presentation tomorrow or you look at, you know, Kaiser, who's going to be on stage tomorrow? We're seeing industries across the board are saying, You know, I have a lot of complexity sitting on aging hardware, older versions of infrastructure software. How do I modernize A platform first lifted, shifted to leverage a cloud. And then I could transform my application using more and more portable service that'S covering decides to provide a kind of infrastructure portability. But what about my data, Right. What about if I could run my application with the data? So I think we're starting to see the securing of the use of cloud based on workloads and averaging that's that's >> Yeah, a J. What wonder if we could dig a little love level deeper on that? Because, you know, I think backto, you know, fifteen years or so ago, it was bm where allowed me to not have to worry about my infrastructure. My, you know OS in my you know, server that I was running on might be going end of life. Well, let me shove it in a V M. And then I couldn't stand the life, and then I can manage how that happens. Course. The critique I would have is maybe it's time to update that that application anyway, so I like the message that you're saying about Okay, let me get a to a process where I'm a little bit freer of where, and then I can do the hard work of updating that data. Updating that application, you know, help us understand. >> It's no longer about just unlocking the compute right, which was worth trying the server. It's What about my network we talked about earlier? Do I need a suffered If our network well, the reality is, everything is going programmable. If you want a program of infrastructure, it's compute network storage all software defined. So the building block for us is a suffer to find data center running on the infrastructure that IBM pride sixty plus data centers bare metal at Scholastic and then leering that with IBM cloud private, whether it's hosted or on premise, fear gives you that full stack that nirvana, the people talk about supportable stack going, talk about >> right and adding to what he said, right? You said, You know, it's not about just moving your old stuff to the to the cloud. Absolutely. So as I said in one of the earlier conversations that we have, we had is we have a whole wealth of new services, whether it's Blockchain R. I o. T or the that used. You spoke about leveraging those capabilities to further extend your app and give it a new lease of life to provide new insights is what it's all about. >> What? Well, that that that's great, because it's one thing to just say, Okay, I get it there. Can I get better utilization? Is that change my pricing? But it's the services, and that's kind of the promise of the cloud is, you know, if I built something in my environment, that's great and I can update and I can get updates. But if I put it in your environment, you can help manage some of those things as well as I should have access to all of these services. IBM's got a broad ecosystem can you give us? You know what are some of the low hanging fruit is to people when they get there, that they're unlocking data that they're using things like a I What? What What are some of the most prevalent services that people are adding when they go to the IBM clouds? >> So when you look at people who first moved their work list of the cloud, typically they tend to dip their toe in the water. They take what's running on Prem. They used the IRS capabilities in the cloud and start to move it there. But the real innovation really starts to happen further up the stock, so to speak. The platform is a service, things like a II OT blocked and all the things that I mentioned, eso es very natural. Next movement is to start to modernize those applications and add to it. Capability is that it could never have before because, you know it was built in a monolith and it was on prim, and it was kind of stuck there. So now the composition that the cloud gives you with all of these rich services where innovation happens first, that is the real benefit to our customers. >> Every she said, you took a little hiatus from IBM and went out outside IBM. Where did you go and what did you learn? What was that? Goldman Jack. JP Morgan, Where were you? >> So it was a large bank. You know, I'm not not allowed to say the name of the bank. >> One of those two. It >> was a large bank on, and it wasn't the U S. So that narrows down the field. Some >> What is it like to go outside? They'll come inside. U C Davis for cutting edge bank. Now you got IBM Cloud. You feel good about where things are. >> Yeah. You know, if you look at what a lot of these banks are trying to do, they start to attack the cloud journey saying we're going to take everything that ran in the bank for years and years and years. And we're going to, you know, make them micro services and put them all on public cloud. And that's when you really hit the eighty twenty percent problem because you've got a large monolith that don't lend themselves to be re factored and moved out. Tio, eh, Public cloud. So you know again, Enter communities and containers, etcetera. These allow you a way to modernize your applications where you can either deploy those containerized You know, piers you go type models on prim or on public. And if you have a rich enough set of services both on Prem in on the public loud, you can pretty much decide how much of it runs on Trevor's is becoming much more clouds >> moment choice. So really, it's finding deployment. So basically, what you're saying is that we get this right. I want to get your reaction. This You don't have to kill the old to bring in the new containers and Cooper netease and now service measures around the corner. You can bring in new work clothes, take advantage of the cutting edge technology and manage your life cycle of the work loads on the old side or it just can play along. I >> think what we're finding is, you know, we moved from hybrid being a destination to an operating model, and it's no longer about doing this at scale like my multi clark. Any given applications tied to a cloud or destination? It's a late binding decision, but as an aggregate. I may be amusing multiple close, right. So that more model we're moving to is really about a loving developer. Super your workload centric and services centric to see Where do I want to run in Africa? >> Okay, what one of the challenges with multi cloud is their skill sets. I need to worry about it. It can be complex. I want to touch on three points and love to get both your viewpoints, networking, security and management. How do we help tackle that? Make that simple >> right off customers? >> Yeah, sure. So you know, I think when you think about clouds, public clouds especially it's beyond your data center and the mindset out there as if it's beyond my data center. It can be safe. But when you start to build those constructs in the modern era, you really do take care of a lot of things that perhaps you're on Prem pieces that not take into consideration when they were built like many decades ago. Right? So with the IBM public Cloud, for example, you know, security's at the heart of it. We have a leadership position. There was one of the things that we've announced is people keep protect for not only Veum, where workload visa and we sphere etcetera, but also for other applications making use off our public cloud services. Then, when you talk about our Z, you know we have a hardware as security model, which is fifty one forty, level two or dash to level four, which nobody else in the industry has. So when you put your key in there on ly, the customer can take it out, not him. Azaz clouds of his providers can touch it. It will basically disintegrate, you know, sort of speak >> H ey. Talk about VM wears customer base inside the IBM ecosystem. What's new? What should they pay attention to? As you guys continue the momentum. >> So I think if you look at the last two years, it's been around what we call these larger enterprise. Dedicated clouds. Exciting thing in the horizon is we're adding a multi tenant IRS on top of this BM, we're dedicated. So being able to provide that Brett off access thing with dedicated multi tenant public out I, as fully programmable, allows us to go downmarket. So expect the customer kind of go up being able to consume it on a pay as you go basis leveraging kind of multi tenant with dedicated, but it's highly secure or for depth test. So are the use cases kind of joke. We're going to see a much larger sort of use cases that I'm most excited about >> is the bottom line. Bottom line me. I'm the customer. Bottom line me. What's in it for me? What I got >> for the customers with a safest choice, right? It's the mission critical secure cloud. You can now run the same application on Prem in a dedicated environment in public, Claude on IBM or in a multi tenant >> world. And on the Klaxon match on the cloud sign. I could take advantage of all the things you have and take advantage of that. Watson A. I think that Rob Thomas has been talking about Oh yeah, >> absolutely. And again. You know the way that we built I c P forty, which is IBM plowed private for data. You know, it's all containerized. It's orchestrated by Coop, so you can not only build it. You can either run it on crime. You can run it on our public loud or you can run it on other people's public clouds as well >> nourished for customers and for people. They're looking at IBM Cloud and re evaluating you guys now again saying Or for the first time, what should they look at? Cloud private? What key thing would you point someone to look at, IBM? They were going to inspect your cloud offering >> so again, and it's back to my story in the bank. Right? It's, uh you can't do everything in the public cloud, right? There are just certain things that need to remain on creme On. We'll be so for the foreseeable future. So when you take a look at our hybrid story, the fact that it is has a consistent based on which it is built on. It is a industry standard open source base. You know, you build your application to suit the needs of an application, right? Is it low lately? See, Put it on. Crim. You need some cloud Native services. Put it on the public cloud. Do you need to be near your data that lives on somebody else's cloud? Go put it on their cloud. Right. So it really is not a one. Size fits all its whatever your business >> customer where he is, right? That's often >> the way flexibility, choice, flexibility. Enjoy the store for all things cloud. >> Yeah, last thing I want to ask is where to developers fit in tow this joint Solucion >> es O. So I think the biggest thing is that's trying to change for us is making these services available in a portable manner. When do I couldn't lock into the public cloud service with particular data and unlocking that from the infrastructures will be a key trend. So for us, it's about staying true to Coburn eddies and upstream with the distribution. So it's portable for wanting more and more services and making it easy for them to access a catalogue of services on a bagel manner but then making operation a viable. So then you're deployed. You can support the day two operations that are needed. So it's a full life cycle with developers not having to worry about the heavy burden of running an operating. What >> exactly? You know, it's all about the developers. As you well know in the cloud world, the developer is the operator. So as long as you can give him or her, the right set of tools to do C. I C. Dev ops on DH get things out there in a consistent fashion, whether it is on a tram or a public cloud. I think it's a win for all. >> That's exactly the trend We're seeing operations moving to more developers and more big time operational scale questions where your programming, the infrastructure. Absolutely. Developers. You don't want to deal with it >> and making it work. Listen tricks. So you know when to deploy. What workload? Having full control. That's part of the deployment >> exam. Alright, final question. I know we got a break. We're in tight on time. Final point share perspective of what's what's important here happening. And IBM. Think twenty nineteen people who didn't make it here in San Francisco are watching. You have to top cloud executives on VM wear and IBM here as biased towards cloud, of course. But you know, if you're watching, what's the most important story happening this week? What's what's going on with IBM? Think Why is this conference this week important? >> I think for us, it's basically saying We're here to meet you where you are, regardless, where you on your customer journey. It's all about choice. It's no longer only about public Cloud, and you now have a lot of capably of your finger trips to take your legacy workloads or your neck, new workplace or any app anywhere we can help you on that journey. That would be the case with >> you, and I wouldn't go that right, said it slightly differently. You know, a lot of the public service of public cloud service providers kind of bring you over to their public loud, and then you're kind of stuck over there and customers don't like that. I mean, you look at the statistics for everybody has at least two or more public clouds. They're worried about the connective ity, the interoperability, the security costs, the cost, the skills to manage all of it. And I think we have the perfect solution of solutions that really start Teo. Speak to that problem. >> So the world's getting more complex as more functionalities here, Software's gonna distract it away. Developers need clean environment to work in programmable infrastructure. >> And you know where an IBM Safe Choice, choice, choice. >> We have to go on top to cloud executives here. Inside the cue from IBM of'em were bringing all the coverage. Was the Cube here in the lobby of Mosconi North on Howard Street in San Francisco for IBM? Think twenty. Stay with us for more coverage after this short break. Thank you. Thank you.

>> Live from San Francisco. It's the cue covering IBM thing twenty nineteen brought to you by IBM. >> Clever and welcome to the live coverage here. The Cube in San Francisco for IBM. Think twenty nineteen day Volonte where he with Urban Krishna, senior vice president of cloud and cognitive software at IBM. Man in charge of all the cloud products cloud everywhere. Aye, aye. Anywhere are great to see you. Thanks for spending time. Know you're super busy. Thanks for spending time. >> I'm ready to be here right >> now. So we talked at the Red Hat Summit last year. You essentially laid out the vision for micro Services. Coup Burnett is how this always kind of coming together than the redhead acquisition. And now you're seeing big news here at IBM. Think setting the stage here in San Francisco for a I anywhere, which is cognitive kind of all over the clouds, and then really clarity around cloud multi cloud strategy end to end workloads all kind of tied together on premise in the clouds. Super important for IBM. Explain and unpacked that force. What does it mean, >> Right? So I'm going to begin unpacking it from where actually I left off last year. So if I just for ten seconds, last year, we talked a lot about containerized platforms are going to become the future that'll be the fabric on which every enterprise is going to build their IT and their future. OK, we talked about that last year, and I think with the announced acquisition of Red Hat that gets cemented and that'll go further once that closes. Now you take that and now you take it to the next level of value. So take Watson. Watson runs as a containerized set of services. If it's a containerized set of services, it could run on what we call Cloud Private. Cloud Private in turn runs on top of OpenShift. So then you say, wherever OpenShift runs, I can run this entire stack. Where does OpenShift run today? It runs on Amazon. It runs on the IBM cloud and runs on Azure. It runs on your premise. So on the simple simple. I always like things that are simple. So Watson runs on Cloud Private runs and OpenShift runs on all these infrastructures I just mentioned that gives you Watson anywhere. You want it close to your data run it on-prem. You want to run it on Azure, run it there. You want to run it on the IBM cloud you run it there. And hence that's the complete story. >> says it was more important for you to give customers choice >> than it was to keep Watson to yourself. To try to sell >> more cloud. >> I think that every company that survives a long term learns that choice to a customer is really important and forcing customers to do things only one way is jelly in the long term. A bad strategy. So >> from a customer statement, just get the facts right on the hard news. Watson. Anywhere. Now I can run Watson via containers. Asian Open ship Things you mentioned on a ws as sheer Microsoft azure and IBM cloud cloud private. All that >> on on premise >> and on premise, all cohesively enter end. >> Correct in an identical way. Which means even if you do things one place you build up more than one place, you could go deploy a moral in another place gives you that flexibility also. >> So I'm Akash Mercy over This sounds too crazy Is too hard to do that. I've tried all this multi cloud stuff. Got all this stuff. Why is it easier? How do how do you guys make this happen? What's the key secret sauce for pulling that end to end a I anywhere on multiple clouds, on premises and through the workloads. >> Two levels. One. We go to a container infrastructure as that common layer that isolates out what is the bottom infrastructure from everything that runs on top. So going to the common services on a Cuban Eddie's in a container layer that is common across all these environments, does the isolation off the bottom infrastructure? That's hard engineering, but we do that engineering. The second piece is you've taken the Watson set of capabilities and also put them into just three pieces. What's in studio? What's an ML from water machine learning and what's an open scale? And there you have the complete set that you go need to run everywhere. So we have done that engineering as well. >> Congratulations. Get the cloud anywhere. I mean, it's cloud. It's essentially everything's every anywhere. Now you got data everywhere you got cloud everywhere. Cloud operations. Where's the multi cloud and hybrid fit in? Because now, if I could do a I anywhere via container ization, shouldn't I built? Run any workload on premise and in multiple clouds. >> So we fundamentally believe that when I was here last time, we talked about the container fabrics. And I do believe that we need to get to the point where these can run anywhere. So you take the container fabric and you can go run that anywhere, right? So so that's one piece of it, the next part of is but I now need to integrate. So I now need to bring in all my pieces. How I integrate this application with another? It's the old problem of integration back again. So whether you want to use MQ or you want to use Kafka or you want to use one of these technologies? How do we get them to couple one work flow to another work flow? How do I get them to be secure? How do I get them to be resilient in the presence of crashes in the presence of latency and all that? So that's another big piece of announcements that we're making. You can take that complete set off integration technologies, and those can run anywhere on any cloud. Again, using the same partner describes. I'm not going to go into that again. And on premise. So you can knit all of those together. >> How can you talk about the rationale for the Red Hat acquisition? Specifically in the context of developers, IBM over the years has made you know many efforts took to court developers. Now, with the redhead acquisition, it's eight million developers and talk about specifically the importance of developers and how that's changed >> your strategy or enhance your >> strategy. I'm an enhancement. It's not really a change. I think we all acknowledge developers have always been important and will remain important. I mean, IBM has done a great job, I think, over the last twenty years and both helping create the whole developer ecosystem, for example, around Job. We were a very big piece of that, not the only participant in there. There were others, but we were a big piece of that. So you not take red hat on Lenox and Open shit and Open source and J. Boss and all of these technologies. There's a big ecosystem of developers. You mentioned eight million number. But why did that set of people come along? They come along because they get a lot of value from developing on top of something that in turn has so many other people on top. I think there's half a million pieces of software which use redhead as the primary infrastructure on which they develop. So it's the network effect really. Is that value andan Africa can only come from you, keep it open, You keep it running on the widest possible base, and then they get the value that if they develop on that digger access to that and US base on which Red Hat Franz >> are, we have >> evidence that >> totally makes sense. But I want to get one dig deeper that we cover a lot of developer, the business side of developers. Not so much, no ins and outs, so developer tools and stuff. There's a lot of stack overflow. Variety of sources do that, So developers want to things they want to be in the right wave. You laying out a great platform for that, then this monetization Amazon has seen massive growth on their partner network. You guys haven't ecosystem. You mentioned that. How does this anywhere philosophy impact ecosystem because they want to party with IBM? Where's the white spaces? What's the opportunity for partners? How should they evolve with IBM? What's your What's your direction on that? >> Okay, so two kinds of partners one there's a set of partners will bring a huge set of value to their clients because they actually provide the domain knowledge. The application specify acknowledged the management expertise, the operational expertise, printable technologies, perhaps that we provide. That's what a partner's is always gonna have. Value talked yesterday at a portable conference about what, cognizant? Who's a bigger part. They do. They built a self service application for patients off a medical provider to be able to get remote access to doctors when they couldn't get enough. And that was not life threatening immediately. Well, that's a huge sort of valley that they provide built on top of our technologies and products. A second kind of partner you went on developers is people who do open those packages. I think we've been quite good. We don't tend to cannibalize our partners, unlike some others we can talk about. So for those partners who have that value, we can put our investment in other places. But we could help maybe give access to the enterprise market for those developers, which I think opens up. A lot of you >> guys make the martyr for developers. That's right. I want to ask you a question. You guys are all sleep in all in on Cooper Netease. Red hat made a great bed on Cooper Netease on. Now that you're harvesting that with the requisition, huge growth there containers. Everyone saw containers. That was kind of a no brainer. Technical world developers are. What's the importance of uber Netease? As you see Kou Bernetti starting to shrink the abstraction software overlay. In the end, this new complexity where Cooper needs a running great value. What does that mean? This trend mean for CEOs CTO CSOs as enterprise start to think, you know, cohesive set of services across on Prem multiple clouds. Cooper Nettie seems to be a key point. What is the impact of it? What does it mean? >> I think I'll go to the business. Benefit Secure binaries. In the end is an orchestration. Later takes over management complexity. It takes away the cost of doing operations in a large cluster ofthe physical resource is, I think the value for the CIA level is the following today, on average, seventy percent of the total cost and people are tied up in maintaining what you have. Thirty percent is on new. That's rough rule of Tom Technologies like communities have taken to where we wanted to go and flipped out to thirty seventy. We need to spend only thirty percent maintaining what you have. And he could then go spend seventy percent on doing innovation, which is going to make inclined, happier and your business happier. Your team's had a couple of announcements today. One was hyper protect, and the other is a lot of services to facilitate. Hybrid. Can you talk about those brats up to date on a quick one, so hyper protect means. So where do you put your data in the cloud everybody gets worried about? Well, if it's in the clear, it could get stolen. C Togo to encryption. Typically, encryption is then down with the key. Well, who manages that cake? The hyper protect services are all about that key. Management is comin across. Both are getting hybrid world across both your premise and in the cloud. And nobody in the cloud, not even our deepest system administrator in the cloud, can get access to the key. That's pretty remarkable when you think about it, and so that provide the level of safety and encryption that should give you a lot of reassurance that nobody can get hold of that data that's hyper protect. And then if I go to all of the other services were doing, sometimes I see a lot of help. Someone advice. Look, in the three client meeting I just had every one of them was asking what should keep regarded watching I slightly more nice. What should I write knew? That means a whole lot of advice that you need and how to assess what you have in what should be a correct strategy. Then once you do that, somebody will say will help me move it. Others will say, Help me manage it So all the services to go do that is a big piece of what we're announcing it end and to end in addition to but into end. But also you can cover it up. Not only give me advice, I know I got buying strategy laid out, helping move it on Oprah's do boards for me or help you manage it after I move it except >> armor. When you sit in customer meetings. Big clients write me, and when they say we want to modernize, what does that mean to you? And how do you respond to that? >> Well, some organizes. Normally today it means that you've got to bring cloud technologies. You gotta bring air technologies. You got to bring what is called digital transformation all to bear. It's got to be in the service of either client intimacy, or it's got to be in terms ofthe doing straight through processing, as opposed to the old way of doing all the business processes that you have and then you get into always got to begin with some easy wind. So I always say, Begin with the easy stuff, not begin with the harder stuff. What started the architecture that let you do the hardest off later? It's not throw away, and those are all the discussions that we have, which are always a mixture of this people process technology. That world has not changed. We need to worry about. All >> three are thanks for spending your valuable time coming on the Q. Bree. We appreciate the insight. I know you're super busy. Final question. Take take a minute. To explain this year. Think What's the core theme? What's the most important story people should pay attention to this year and IBM think in San Francisco? >> I think this two things and the borders. That is the evolution that is giving greater business value for using the word that is Chapter two off the cloud journey. And it's Chapter two off a cognitive enterprise. Chapter two means that you're not getting into solving really mission critical workloads, and that's what is happening there. And that's enabled through the mixture of what we're calling hybrid on multi cloud strategies and then the cognitive enterprises all around. How can you bring air to power every workflow? It's not a little shiny Tonda. Besides, it's in the very heart off every confirmation. >> The word of the day. Here's anywhere cloud anywhere, data anywhere. Aye, aye, anywhere that's a cube were everywhere and anywhere we could go to get the signal from the noise. Arvin Krista, senior vice president, cloud and cognitive software's new title man Architect in the Red Hat Acquisition in the cloud Multi cloud DNA. Congratulations on your success. Looking forward to following your journey. Thanks for coming on, thanks Thanks. Safe. Okay. More live coverage after this short break state with the cube dot net is where you find the videos were in San Francisco. Live here in Mosconi, North and south, bringing the IBM think twenty nineteen. Stay with us.

>> From Yorktown Heights, New York, it's theCUBE, covering IBM Cloud Innovation Day. Brought to you by IBM. >> Hi, I'm Peter Burris from Wikibon, and you're watching theCUBE being broadcast from IBM Innovation Day at the Thomas J. Watson Research Lab in beautiful Yorktown, New York. And we've had a number of great conversations thus far, we've got some more on the horizon, stay with us. Now, we've got Jim Comfort. Jim Comfort is the General Manager of Hybrid Cloud Services at IBM. Jim, welcome to theCUBE. >> Thank you, Peter, glad to be here. >> So, Jim, what does Hybrid Cloud Services as a group do? >> Actually, we run infrastructure for clients. That's our business, but we help you advise, build and manage private cloud. Advise, build and manage consumption of public cloud, Azure, Google, IBM, and we help you manage and stitch all of that together. >> So a lot of people think of cloud and they think of this monolithic thing. "If I go to the cloud, suddenly my business has changed." But there's more to it than that. There's a number of different things that a business has to be successful at to succeed at getting to the cloud. What is your perspective on that? >> Well, I completely agree. And this is kind of my first conversation with clients is, you need a business strategy, but to execute that strategy you have to realize it will touch most everything in your business. It'll touch infrastructure, it'll touch applications, it'll touch your dev ops, or your development process morph to dev ops. It'll touch your operations very profoundly, this whole SRE thought, and it will test your data governance and management as well as your security and compliance. So that's the scope that you have to comprehend. >> But most people, they start with perhaps the infrastructure first and end up with the data last. Is that the right way to think about this? >> I agree, many do, and actually I have not seen many build-it-they-will-come strategies succeed. And so what I really look for is, do you understand the business drivers? Top-line revenue growth, new markets, new insights, new data, and from that can you derive a technology strategy? What I've seen happen in many cases is, if you start from the bottom up you'll be trapped in what I call the religious wars of technology that never end. >> And most people, a lot of folks start from the bottom up, because they start from the technology side of the business. >> Correct. >> Are you seeing more business people getting engaged, and conceptualizing what the strategy needs to be? >> I am, and it starts on both sides. The business people will say, "I need to move faster than you can move, so I'm going to do something different," and the IT people will say, "I can do that for you, here's what you need." The two signatures of the most successful transformations are does the line of business and the IT have the relationship to collaborate so they actually learn together? And then if they have that, have they actually created a team that understands the new as well as they understand the existing or the old, so they can actually understand what's real, what's not, where's the hype, what really happens. And then they get into the rational, real planning decision. >> So as you think about some of the assessment challenges, because you said you go through the assessment process, what are some of the key questions that a client should start with as they think about undertaking this journey? >> Well, number one is start with the business driver. I said that already, but you have to start with understanding what you're trying to accomplish so you can make choices. And the other is, start small enough and get to the end of something so that you know what the reality is, and that's where our, this is where we bring in our methods. When you hear us talk about the garage method, you hear us talk about MVPs and all the language everyone wants to use. We like to start with something, and start that iterative cycle of learning. That's the key. >> So with an iterative cycle of learning, in many respects this whole notion of agility is predicated on this idea of being agile or iterative. But it's also empirical, knowing what the data is, knowing what the data says, and being opportunistic. How does a customer balance that as they get going, say early on in the cloud journey? >> I think, again, most of what we're talking about in digital transformations is new insights that will help your business. That could be from data that you had, it could be new data. And if they think about it, what insights am I looking for? What new experience am I trying to create, and what do I need to do that? Then you start to get people to step back and think, well, what are all the possibilities? And now, how do we tackle that? So it starts from realizing, what insight am I looking for? >> So there's a lot of invention happening in the industry. >> Oh, yeah. >> And enormous new things being created. Customers are being overwhelmed at trying to adopt them. The innovation side, the social side of effecting a change in the business. You mentioned some of the markers for success and putting together the strategy. Go forward a little bit. What are some of the companies that have successfully gotten to that end stage maturity doing differently? >> We have a number of very good ones. I mean, a very clear one in my mind is American Airlines, where they were really trying to change the experience. They had three distinct things that had grown up over time, the mobile experience, the kiosk experience and the Web experience. Three completely different things. They brought it together, converged it, modernized it, and now completely changed the experience and the speed with which they can now act on what they see for their clients or for their customers, all of us. But also as they get new ideas, the speed and the velocity that they can bring those in is phenomenal. >> And that improves their ecosystem, their ability to work with a lot of others as well. >> Their ecosystem, how to work with others, how to bring in new ideas. And this is all, for them it's all about client satisfaction and service to their end client, to the end user. That's what it was. It had a lot of technology dimensions, but they were very clear the experience they were trying to attack. >> So next February, IBM Think, 30-plus thousand people descending upon San Francisco. You guys are taking it over. What kind of conversations are going to be on your agenda as you work with customers and partners to get this message out? >> Well, it's really two things. I often joke the blessing and curse of IBM is the breadth of our portfolio. It's a very large place, but we actually have a very simple, clear way to talk to, advise, move, build and manage. Those are the steps you need in your journey. Now, which journey for you, which type of thing. But that, we have clarity on that, and I think you'll see that displayed at Think and get to understand it. The other thing is that we have a lot of experiential and real practical, we've made this happen for many large clients at scale, and I think that what we want people to understand is we can help you that same way. It's really pretty simple. >> Jim Comfort, General Manager Hybrid Cloud Services at IBM. Thanks for being on theCUBE. >> Thank you, Peter. >> And we'll be back momentarily with more from theCUBE at IBM Innovation Day here at the Thomas J. Watson Research Center in New York.

>> From York Town Heights, New York, it's theCUBE covering IBM Cloud Analyst Summit, brought to you by IBM. (techy music) >> Hi, welcome back, I'm Peter Burris of theCUBE, and we're having conversations here at the IBM Innovation Day at the Thomas J. Watson Research Lab in York Town Heights, New York. We've got a great conversation. Don Bolia is the general manager of cloud developer services at IBM, welcome to theCUBE, Don. >> Thank you very much. >> Or should I say welcome back to theCUBE? >> (chuckling) Yes, thank you. >> So, Don, we were talking with one of your colleagues, Hillery Hunter, who's the CTO-- >> Mm-hm. >> Of here at the cloud infrastructure team, and about the fact that everybody's talking about the rate of growth of data, and nobody's really discussing the rate of growth of software, which is perhaps even more important, ultimately, to business. What is that rate of growth look like, and how is it related to the role of cloud? >> Yeah, so it's a great question. I mean, with my role as kind of owner of our platform services from the cloud perspective, one of the things we've noticed over the last probably five or 10 years is just a massive rate and pace change with respect to iteration on the software development cycle. So, they started with mobile, I would say, and then has moved to cloud since then, where you know, the expectation is everything is updating all the time, you know, everyday, all times of the day. Within our own Kubernetes and container service, as an example, we push over 500 updates a week to that software stack on behalf of our customers, and so I think there's a rate and pace of how things are changing from that perspective, but then there's also the fact that everybody's leveraging those services to then build the next generation of software. So, in our case we have a set of base services that I provide for things like containers that then the Watson team, for example, uses to build their microservices, which are then, you know, realized as machine learning and other types of services that they provide. So, you see the stacking of software, if you will, from you know, the high iteration rate at the bottom all the way to the next level and the next level, and the ability to unlock value now is something that happens in, you know, hours in some cases, or a couple of days, whereas before just provisioning the software would've taken months, and so we're really seeing just a whole change in the way people can develop things and how quickly they can get to the end result. >> Now, we're here at the Thomas J. Watson Research Lab, and downstairs is this wall of all IBM fellows, and one of them E.F. Codd, the famous originator of database and the role that SQL played, et cetera-- >> Mm-hm. >> In relational database technology. He wrote a seminal paper back in the early 1970s about how the notion of developer was going to evolve over time, and he might've been a little aggressive in thinking that we were going to end up with these citizens developers than we actually happened, but we are seeing the role of developer changing, and we are seeing new classes of professionals become more developer-like. >> Mm-hm. >> How is that relationship changing the way that we think of developer services that you serve? >> Yeah, it's a great question. I think, first of all, software is sort of invading almost every single industry, and so, you know, people have got to have some amount of those skills to be able to function in kind of the optimal way for whatever industry they're in. So, what we're seeing is that as we've built more and more foundational services, the act of actually creating something new is more about stitching together, composing, orchestrating a set of things, as opposed to really building from scratch everything from the ground up, and you know, things like our Watson services are a great example, right? The ability to tap into something like that with a couple lines of code in an hour, as opposed to what would've taken, you know, months, years, whatever, and even really, frankly, been out of the reach of most developers to begin with is now something you can have somebody come in and do, you know, with a fairly low level of skill and get a good result on the outside. >> So, we've got more demand for code as we move to digital business, more people participating in that process, cloud also enables paths, a lot of new classes of tools that are going to increase the productivity-- >> Yep. >> Including automated code generation. How is the process, how is that tool set evolving, especially as it pertains to the cloud? >> Yeah, so I think one of the mantras of cloud is automation, and in order to standardize and automate, that's really how you get to the kind of scale that we would see in, say, a public cloud like the IBM cloud. So, it really is kind of a fundamental premise of anything you do has to be something that you automate, and so we've seen a whole class of tools, to your points, really start to emerge, which allow people to get that kind of, you know, automated capability. So, nobody thinks of, for example, creating a, you know, a build pipeline these days without using a set of tools. You know, often they're opensource tools, and there's a lot of choice within that whole spectrum of tools, and we support a bunch of different varieties, but you would never think today of having a build process that isn't totally automated, right, that can't be instantly recreated. Even the whole process of how you deploy code in a cloud these days is sort of an assumption that you can destroy that and restart at any point, and in order to do that, you really need the automation behind that, so I think it's a base premise now. I don't think you can really be at the velocity that people are expecting out of software without having a totally automated process to go through that. >> So, any digital business strategy presumes that data's an asset, and things that are related to data are assets, including software in many... Well, software is data when you come right down to it. >> Mm-hm. >> And we want to exploit that data and generate new sources of value out of that data, and that's one of the predicates of digital business, but at the same time we also want to protect those attributes of data-- >> Mm-hm. >> That are our IP, our enterprise's distinction. As we move forward with software, how do we reconcile that tension between more openness and generating a community that's capable of improving things, while at the same time ensuring that we've got good control over our IP where it actually does create a business differentiation? >> Now, that's right, and you're right, data's king. So, you know, the software can do, you know, a set of things, but most of the time it's operating on a set of that data, and that data's where the true value that you can unlock comes from. Our policy, from an IBM perspective, has always been that, you know, your data is yours, and to your point, this IP that you may want to protect, and we try to give you the tools to do that, and so a lot of our philosophy, within the cloud in particular, is around things like Bring Your Own Key, where you have control of the keys that encrypt that data that's in the cloud. In fact, we would like to be totally out of that loop, quite frankly, and have it be something that is controlled by our clients, and that they can, you know, get the value they're looking for, and so we'll never have a situation where one of our services is, you know, using or acting on data that is really, you know, not ours to use, and so that's been a fundamental premise of the cloud as we go forward, and again, we continue to provide a set of tools that really let you manage that, and to your point, you know, not everything gets managed at the same level. Some things are highly protected, and therefore have, you know, layers and layers of security policy around them, and there's other examples where, you know, you're relatively able to make that open through a set of APIs, for example, and let everybody have access it. From our perspective, though, that's really a client choice, and so for us it's about giving the right tools so that they can do the job they need to do. >> February 2019, San Francisco, IBM's taking over San Francisco with the IBM THINK show. What types of conversations are you looking forward to having with customers? What excites you about the 2019 version? >> Yeah, so I mean it's a great venue. It is absolutely, you know, something that I look forward to every year. I know my team looks forward to it, as well. I mean, the amount of interaction we get with clients... I mean, it's really all about the client stories, so you know, what are they able to do, in my case, with our cloud services. What can I learn about what they've done, and how, you know, can we then leverage that to make our services better, and so, you know, to me it's all about, you know, what you can learn from others, and it's a great form to be able to do that and there's a lot of great things that, you know, you can dive deep on. You get access to a lot of the IBM technical experts, so I have all of my, you know, fellows and distinguished engineers there, you know, on hand, and just great conversations. There's always great insights that you get from it, highly recommend it. >> Don Bolia, IBM general manager of cloud developer services, thanks very much for being on theCUBE. >> Thank you. >> Once again, we'll be back from IBM Innovation Day here at Thomas J. Watson Research Center in York Town Heights, talk to you soon. (techy music)

>> From Yorktown Heights, New York, it's theCUBE, covering IBM Cloud Innovation Day, brought to you by IBM. >> I'm Peter Burris of Wikibon. Welcome back to IBM Innovation Day, covered by theCUBE, from beautiful Yorktown Heights, New York, Thomas J. Watson Research Center. A lot of great conversations about the journey to the cloud and what it means, and we're going to have another one here with Denis Kennelly, who is the General Manager of Cloud Integration in IBM. Denis, welcome to theCUBE. >> Thank you, Peter, and welcome to Yorktown also. >> I love it here. So, very quickly, what does the GM of Cloud Integration do? >> Yeah, so, I suppose we start from the beginning, right? So I am responsible for a lot of what we call the traditional IBM middleware. So these are brands that are known to the industry and to our customers, things like WebSphere, Message Queue, or MQ, as we know it, which is kind of the core foundation stones for a lot of IT today that's out there in the industry. And it's not just about, you know, sometimes people talk about this legacy, but this is what all the systems run on today. And also, I'm involved in the whole journey of moving that middleware to the cloud and enabling customers to get on that journey to cloud. And it's not just to a cloud, because your typical enterprise today has probably on average about five different clouds, and clouds, as we know them as the IS players of the past, but also when we talk about cloud, we also think about things like SaaS properties and applications of that regard. So it's helping customers go from that traditional IT infrastructure and on their journey to the cloud. That's what I do. >> So utilizing these enterprise-ready technologies that have driven the enterprise, bringing them to the cloud as services, but also making sure that the stuff that's currently installed can engage and integrate the cloud from a management service standpoint as well. >> Absolutely, because customers have made a huge investment in this middleware, and a lot of the transactions, and a lot of the security, and a lot of the risks set in these systems, and they have served us very well for many decades. Now, as we start to move to the cloud, it isn't a binary switch. It's going to be a transition over time, and today, I think we're about 20% into that journey. I would say we've done some of the easier parts. Now we're getting into some of the more complex and some of the more difficult problems. And kind of one of the underlying pieces of technology we're using to enable customers to do that is container technology. So we've made the decision to use containers right across our middleware, our software. So what I mean by that is we've taken all our software and it's running on containers today, and that's a key enabler to make this happen, because containers give you that flexibility and that openness to run on different targeted environments and be able to run on different clouds at the end of the day. >> The model by which developers thought about integration would be through a transaction. Generally pretty stateful. So, I'll put something in a queue, I'll wait for a response, guaranteed delivery. Now we're moving to a world, containers, a lot more reliance on stateless interactions. It means we're being driven mainly by events. I'm thinking in terms of events. Talk about how that is changing the way we think about the role of middleware or the role of integration amongst all these different possible services. >> Yeah, it's a great point. I mean, so if you think about containers, we think about stateless, and we think about microservices, and we talk about event-based applications, so a lot of those front ends are on that today and building on those technologies. So you've got to enable the new developers to build in that way. Now, how do you integrate that with that backend, right? Because at the end of the day, these transactions are running in the backend, and you really want to enable, as part of the transformation, you want to open up those backends to those new developers and to those new customer insights, because what is digital transformation? It's about putting the customer at the middle and enable insights on those customers, and enable rapid development of those applications. So at the core of that is integration, and integration is not just message-based integration. It's being able to take those backend transactions and surface them up through APIs, not just the standard APIs as we think of maybe as web services, but event-based probability models, and event-based APIs also, and doing that in a consistent and a secure manner, because if you have all these complex transactional systems, who has access to that data? Who has access to make those transactions? Who can, at certain levels, et cetera, and we really have to do that in a secure and a consistent manner across these environments is critical to what we do. >> So, can you give us some examples of some customers that are successfully transitioning their backend systems to these new technologies in a way that protects the backend system, makes it economical to do so, in other words, doesn't force change, but can utilize some of these new integration technologies to make both the new investments more valuable but also the backends more valuable too. >> Yeah, I mean, if you think of, I'll give you an example of a customer, American Airlines, in the airline industry, right? So, if you think about travel and airline travel in times past, you know, you made a reservation maybe through an agent and you booked the flight from A to B. Today, you have your cellphone, you get regular updates on your flights. If you're delayed, you're possibly offered re-routing options, et cetera, right, so there's a classic example of how digital has transformed the airline industry and the airline booking industry. If your flight, you know, if there's weather patterns, et cetera, how you can get real time updates on your flights. So, okay, that's all happening on the front end, on your cellphone, or your tablet, or whatever, but the backend booking system is still a transactional-based system that says, Peter is on this flight going from A to B at this time, et cetera. So, that's an example of how we have modernized an application and we have worked with American Airlines to make that happen, to give you that kind of 360 view as a customer, where you bring in together flight information, weather information, rating information, because we'll offer you different alternatives in terms of if you need to rebook in the event of something going on, and at the backend, there's still a transaction that says, book Peter on this flight from A to B, and that's a real life example of a transformation, how we've integrated those two worlds there. >> So if we go back five or six, or more than that, say 10, 15 years, in the days of MQ, for example, the people who were developing, and setting up those systems, and administering and managing those systems were a relatively specialized group. Today, the whole concept of DevOps in many respects is borrowing from much of the stuff that those folks did many, many years ago as infrastructure builders, or developers, as I call them. How does that group move into this new world of integration in the cloud? >> Yeah, so, I think first of all, the rate and pace has multiplied, right, so the rate and pace of which we make changes to the system has multiplied. I mean, maybe traditionally, we run in changes maybe once a month. We have things like change control windows. Things were very well controlled, et cetera, right? But at the end of the day, it doesn't meet the needs of today and what we need to do in a digital world. So today, we're running in changes on the hour. So now, you're faced with a challenge, right? So when you make changes, how do you know that the system is still performing, is still operating at the level you need it to operate on? You start to think about security and you start to think about, okay, I've made a change, have I introduced vulnerabilities into the system? You've got to, you know, in the past, these were all separate groups and almost islands within the operation center, where you have the developer, who kind of over to all the code, and then operations looked at it and see how it's performed, and security checked for compliance, et cetera, and they were kind of three different islands of personas or groups within the organization. Today, that's really collapsing into one organization. The developer is responsible for making sure the change gets in, for making sure the change performs, and is also security compliant. And we call this the role of the SRE, or the systems reliability engineer, and really bringing those two worlds together into one persona, and it's not just one persona but having the systems on the inside to make that happen. And that's critical in how management is changing and the management of these systems is changing, and how the skill level is needed in this new world. >> So Denis, one more question. In a few months, IBM Think is going to take over San Francisco, February 2019, >> Looking forward to it. >> 3,000 people. Talk to us a little bit about what gets you excited about Think, and what kind of conversations you hope to be having while you're there. >> Yeah, well, you know, this is the one time of the year where all of IBM comes together, and it's new this year that we're going to San Francisco, and in particular, in our cloud business, which I'll talk about, which really encompasses everything we're talking about here, which is our middleware business and also how we move customers to the cloud, and really engaging with customers in those conversations. And this is the one time of the year where all of IBM comes together, and where you can see the full breadth of our capabilities all the ways from our systems, and the hardware, down at that level, at the chip level, right through to the middleware and the software to our cloud, and actually engaging with customers, and really understanding what the customer needs are, and making sure that what we are working on is meeting those customer needs, and of course, if we need to adapt or change, and take that feedback back into the organization, so we do that in real time. It's a very exciting time for us. It's a week in the year that I really look forward to, because that's where all of IBM comes together, including our services, et cetera, and where we actually have conversations with key customers and partners and really understanding what's going on in the industry and how we can help people on this journey to the cloud that I talked about. >> Denis Kennelly, IBM General Manager of Cloud Integration, thanks very much for being on theCUBE. >> Thank you, Peter. And once again, this is Peter Burris. We're signing off from the IBM Innovation Day, here at the Thomas J. Watson Research Center in Yorktown Heights. Thank you very much for watching. Let's carry on these conversations about cloud and the future of computing.

>> From Yorktown Heights, New York, it's theCUBE, covering IBM Cloud Analyst Summit, brought to you by IBM. >> Hi, I'm Wikibon's Peter Burris. Welcome back to theCUBE coverage of IBM Innovation Day, here at the Thomas J. Watson Research Center in Yorktown Heights, New York. Great series of conversations, and this next one also is going to be a great conversation, with Jason McGee, who's an IBM Fellow, VP and CTO of Cloud Platform here at IBM. Jason, welcome to theCUBE. >> Thanks for having me. >> So, we've had a lot of great conversations about what does open mean, where is the cloud going, what is the role of developers in this whole thing, but I want to dig a little bit deeper into this kind of core question. The cloud suggests a new model for computing. I would also think that would mean that there's a new model for development on the horizon. >> Yeah, absolutely. >> Can you talk to us a little bit about that? >> Yeah, sure, I mean, I think that's absolutely true. I think one of the core things that people are trying to get out of cloud these days is development velocity, you know. For many years, of course, one of the key pressures in IT has been how do I do stuff more quickly, and that's gone through many iterations over time, but I think cloud today, people are really trying to figure out how to leverage cloud as a platform for speed of development, and the combination of services on cloud, and new development models like microservices, and new technologies like containers are all kind of contributing elements in helping people solve this problem, how do I build stuff more quickly. >> So, with all that new technology, is a new mindset required? Does somebody think about the problem differently, does somebody break the problem down differently? How do you start with that notion of looking at a business requirement or business outcome, and translate it into the technology? We used to just create code. Now we're doing something different. >> Yeah, I think the first thing you have to do is think about how to organize people. You know, software development at the end of the day is a sport amongst people and you have to think about how to break up the problem, and so, like microservices, a lot of us think of microservices as a technology. It's not really a technology, it's really a philosophy about how to attack a problem with a group of people, it's about how to organize, and its fundamental idea is break it into independent parts, and allow a small team of people to not only develop that part but to own it end-to-end, you know, like the old development model was development, test, production, hand it over the wall to operations. The new model is break it into small problems and then have a team own the whole thing end-to-end, and with that new organizational philosophy comes new architectures for apps, new technologies to help you do that, and new platforms to run things on. >> So, as we think about that, that suggests that the approach to software from a licensing standpoint, from what are you buying, what are you installing is also going to change. How do you foresee, and what is IBM preparing customers for in this kind of new world where software is a service coming from a lot of different places as opposed to a license with, you know, 800 million lines of code or eight billion lines of code behind it? >> Yeah, it's interesting. I think these new ideas are enabled by things like cloud. Part of the reason that cloud has enabled this new model to be feasible is because you get, for example, consumption-based pricing. You can use a wide variety of technologies, you can pick the right tool for the job, you can pay for just what you use, and therefore, the old models of static software licensing and big platforms can start to fade away as these small teams are able to kind of pick the right tool for the job, and that wouldn't be possible in a world without like, as a service delivery, and meter pricing, and things like that, because you would have to consolidate to fewer choices and buy bigger chunks of things. >> As you said, microservices is more of a philosophical approach to how you think about software, and it's also predicated on that wonderful notion of REST. A great paper was written a number of years ago on APIs. IBM has kind of an interesting role in the industry, though. IBM has got to bring a whole bunch of customers with highly stateful applications forward into the cloud. Kubernetes, great for stateful. How are we going to address that tension between the stateless world of greenfield applications and the stateful legacy that has to move into this new world? >> Yeah, I'm glad you brought that up. I mean, I think a lot of times new trends emerge and it's easy to ignore the past, but the lesson I've learnt in over 20 years in IT is like, nothing ever goes away, right, and so you have to not only define the future, but you have to figure out how to help people get there. I actually think part of the reason technologies like Kubernetes are so dominant right now is because they actually do a reasonable job at both. You know, Kubernetes and containers are a great platform for the kind of new architectures and for adopting these new methodologies we're talking about, but they can also accommodate the existing apps, and you can move existing apps into these new platforms, and so, that helps give people a path. They can move something they have and then slowly re-factor it, or they can move something they have and build new things around it, and they could do all that with platforms like Kubernetes as an enabler, right? And it's been interesting to watch. Like, at IBM, we obviously make Kubernetes available, both in our public and private clouds, but we're also big users, and we run all of our cloud services on that platform. Stateful databases, AI and machine learning workloads, analytics platforms, stateless web apps, like, the whole lot, we've been able to run on a platform like that. >> Talk to me a little bit about this notion of cloud operating model and how we manage that, because it seems to me as though the user adoption of a lot of these new technologies are going to be facilitated if we can put forward a management platform that uses those technologies to manage those technologies. What's the relationship there between the evolution of management? Is that a leading edge of how we are going to see people adopt some of these technologies? >> It's certainly a very kind of critical component of the story. I mean, if you really believe in the idea that where we want to move to is this kind of microservice model of small teams that run things themselves, then you get into the question of, all right, well, if you have eight people whose job is to run something in production, they need to be able to do that efficiently, right? You can't have complex operational processes, you need a lot of really good tools, it needs to be really easy for them, 'cause you're asking people to have a really vast set of knowledge, and so, it's driving the evolution of management philosophies. You're seeing new technologies, like SDO, for example, emerge, which are allowing like an application person to define policy about security, and access, and networking that normally would've required like a network expert to go to. >> And more, which makes it a very powerful platform. >> Powerful platform, right, but I think it's coming out of this realization that like, if that small team of people ever want to sleep, and when they have to run things, they're going to need tools to help them do that. So it's been interesting to watch that kind of circular evolution of these different domains. >> So, 20 years of experience from web-sphere forward. Let's think about the next five years. Where is the biggest innovation going to happen in software? >> Well, I mean, there's the obvious stuff around the application of AI, but the part that I'm most excited about is I think we've been on an arc over the last 20 years, to make the application the center of IT. You know, historically, infrastructure has been the center of IT. You start a project, you buy a server, you install an operating system, you set up management tools. >> That's been a big asset. >> The center has been the infrastructure and you build your way up. And I think as velocity has become dominant, we've been trying to flip it and say, I'm building an app. Let me focus on the app, and focus on what the app needs, and drive the requirements down, and I don't think we're done yet. I think there's a lot more to do there, but that's the path we're on. I think over the next five years, we'll really get there, where as an app team, I don't really have to think about infrastructure, and I can have the system adapt to the needs of the application. >> Do you foresee a point where the data and the application are increasingly and further broken apart? >> The data and the application? I don't know that they're going to be further broken apart, but I think we'll see more kind of intelligent scheduling and combinations of those things, like there are cases where the data needs to be king, and the application needs to come to the data, and vice versa, and historically, the data world and the app world have been pretty separate, right, and you know, again, if we think teams are going to run their things, then just like they're doing ops and dev, they're going to have to do apps and data, right, and so, there's an opportunity there to bring those worlds closer. I see some of it, but, you know, Kubernetes as an example, as a common operational platform for both kinds of systems, but there's more, for sure. >> So bring it together when it makes the most amount of sense, keep it separate when other people need to use the data. >> Stop assuming you have specialists in every technology, and assume you have a multi-disciplinary team that has to run it all. >> All right, Jason, one more question. February, San Francisco, IBM takes it over with IBM Think. A lot of users, a lot of new questions being raised, a lot of opportunity for learning, a lot of opportunity for networking. What are you hoping to accomplish? What conversations do you want to have at Think? >> Yeah, I'm really excited, I think, to have conversations with clients about how they're actually adapting to this new world. I think sometimes the biggest challenge is not technology, but how organizations assimilate these ideas, and so, I'm excited for the conversations with customers about what problems they're solving, sharing those experiences with each other, and also practitioners. I think we've moved into a world where IT is dominated by the people who actually do the work, by the practitioners, and I really hope to see a lot of them show up at Think in February and share with us what they're doing. >> Jason McGee, IBM Fellow, VP, CTO, Cloud Platform here at IBM. Thanks very much for being on theCUBE. >> Thank you. >> And once again, this is Peter Burris from the Thomas J. Watson Research Center in Yorktown Heights. You've been watching theCUBE. Stay tuned. (techno music)

(technological music) >> From Yorktown Heights, New York, it's theCUBE covering IBM Cloud Innovation Day, brought to you by IBM. >> Hi, I'm Peter Burris and we are broadcasting theCUBE from IBM Innovation Day at the Thomas J. Watson Research Lab in Yorktown, New York. We've got a great number of guests to talk about. We're going to start with Hillery Hunter, who's the CTO and vice-president of cloud infrastructure at IBM. Hillery, welcome to theCUBE. >> Thank you very much. Pleasure to be here. >> So, you're relatively new in your role. Tell us about some of the things that you're focusing on as the CTO of cloud infrastructure here at IBM. >> As CTO for cloud infrastructure, I'm focused on making our cloud the best possible place that it can be for people to bring their data, bring their applications, and overall, come into that modernization journey with us, the process of transforming to become a digital enterprise. >> So, one of the things that people talk about all the time is how fast data's being generated. Nobody seems to be talking about how fast software is being generated, and yet, that seems to be one of the advantages and potentially the liabilities of doing cloud wrong. Talk to us a little bit about how IBM sees the world of software changing as we move forward with the cloud. >> [Hillery] There are parts that are consistent with what we've seen for about the past 20 years in open source, and there are parts that certainly, we feel like are accelerating and changing. With regard to the pace of software and its change today, open source is clearly this innovation space. It's this playground where lots of people can go and can contribute. We can take... We're here at the IBM research facility. We can take the latest in innovations and math that helps us accomplish great AI and AI insights. We can take that into open source. We can take microservice integration capabilities and take it into open source and work there collaboratively with people across the industry. What we see, therefore, is a tremendous rate and pace in change of software and the capability of software and its ability to analyze data and bring insights to data and realize the promises of big data, of getting insight out of that data, is just really on a tremendous growth rate. When you move to cloud, you're not just doing what they used to say of converting capital expense on premises into opex and renting a server in the cloud. You're bringing your overall workload and modernizing it and bringing it into this era where you're able to apply through microservices and cloud-based programming methodology, you're able to bring the latest of software capability to your data and get more insights out of it. >> You're really able to alter the operating model of how not only your technology group works, but also how your business works. >> Absolutely. >> How does Red Hat play a role in this? >> We have shared principles with Red Hat. We both have been active in the open source communities. IBM famously had billion dollars of investment in LINUX going back 20 years ago, and Red Hat is a prominent name in open source. We have a shared understanding of the value of open source and the value of rate and pace of innovation that's commensurate with what open source provides. We have a shared value around what enterprises need and a shared client-centric view that you need support on your software, that you need certifications, that you expect security, those kind of things. There's tremendous amount of shared value proposition in what we see as the rate and pace of innovation as well as then moving that into an enterprise context. Enterprises make these choices very carefully. As consumers of enterprise capabilities, we expect them to guard our data, we expect them to do things on our data in a secure way, and there are many foundational elements in philosophy that are similar between the two of us. >> You mentioned that cloud started out as this notion of capex to opex, move all your data to a single place, let somebody else deal with it. Increasingly, enterprise is starting to recognize that their data may sometimes have to remain in place. We start talking about innovation, open source, these new classes of services. What is it going to mean to bring the cloud experience to the data from IBM's perspective? >> We really see that the data today exists in multiple places, that largely because of that, people are partway through their journey to overall modernization. They're partway through their journey to the cloud. We really think that the world is going to be hybrid, meaning that... Or, the world is hybrid, I guess I would say, meaning that there is data and there is cloud function needed on premises and in public clouds. There's a need for private, dedicated environments in the public cloud as well. There's a significant amount of IT that is currently traditional in that people are in the process of modernizing, and that may initially be through a private cloud context on the journey to overall workload modernization. We also see that the world is multi-cloud. People are using upwards of 9 clouds or more in many cases, and that, in a lot of cases, has to do with this intersection of function and data residency and being able to bring together all of those pieces of where the data needs to be or where the data currently is, and then bring software function to the data is something that we see as critically important. >> Without being too specific in the use of the word binding, today, the idea is you bring your data to a cloud supplier and then, you can run the services of that cloud supplier supplies on that data. Do you and IBM foresee a world in which the customer's going to be able to control their own data and then acquire the services from the cloud and bring it to their data? Is that the direction you think it's going to go? >> Not only do we see that it will be possible, we think that it is possible and we're putting things in market already today that enable people to bring cloud function to their data. The IBM Cloud private offerings and IBM Cloud private for data enable people to, in their environment, where their data resides, bring sophisticated data, warehousing data analytics and AI capabilities. Fundamentally, that process of workload modernization is a set of steps and it starts with data and it starts with modernization of that environment and it matures then into being able to get deep insights through the power of AI on that data. >> Let me ask you one more question. In February, IBM's going to host 30,000+ people in San Francisco. Unbelievable opportunity for networking, learning, and IBM Think. What kind of conversations do you expect that you're going to be having in Think in 2019? >> I think you hit at the heart of the conversations that we're going to be having at Think and our positioning of the hybrid multi-cloud environment. Our other core tenets there are open and open source and keeping up with the rate and pace of open source as an innovation stream, providing choice in how folks are deploying cloud and deploying systems. We also are going to be having conversations around security. That's a core enterprise value proposition and ultimately, management. You want to not just declare that the world is hybrid and multi-cloud, but provide solutions to that and we believe we have strong answers to how to bring these pieces together and enable people to successfully move at the rate and pace of innovation that they need, yet in a secure context, and leverage the ability to deploy cloud capabilities where their data currently is, be that on private or public context. >> Hillery Hunter, CTO and vice president of cloud infrastructure at IBM, thanks for talking to theCUBE here today at the IBM Innovation Day. >> Thank you so much for having me. It was a pleasure. >> And, we will be back momentarily with more conversations at IBM Innovation Day.

(digital music) >> From Yorktown Heights, New York It's theCUBE! Covering IBM Cloud Innovation Day. Brought to you by IBM. >> Hi, it's Wikibon's Peter Burris again. We're broadcasting on The Cube from IBM Innovation Day at the Thomas J Watson Research Laboratory in Yorktown Heights, New York. Have a number of great conversations, and we got a great one right now. Rob Thomas, who's the General Manager of IBM Analytics, welcome back to theCUBE. >> Thanks Peter, great to see you. Thanks for coming out here to the woods. >> Oh, well it's not that bad. I actually live not to far from here. Interesting Rob, I was driving up the Taconic Parkway and I realized I hadn't been on it in 40 years, so. >> Is that right? (laugh) >> Very exciting. So Rob let's talk IBM analytics and some of the changes that are taking place. Specifically, how are customers thinking about achieving their AI outcomes. What's that ladder look like? >> Yeah. We call it the AI ladder. Which is basically all the steps that a client has to take to get to get to an AI future, is the best way I would describe it. From how you collect data, to how you organize your data. How you analyze your data, start to put machine learning into motion. How you infuse your data, meaning you can take any insights, infuse it into other applications. Those are the basic building blocks of this laddered AI. 81 percent of clients that start to do something with AI, they realize their first issue is a data issue. They can't find the data, they don't have the data. The AI ladder's about taking care of the data problem so you can focus on where the value is, the AI pieces. >> So, AI is a pretty broad, hairy topic today. What are customers learning about AI? What kind of experience are they gaining? How is it sharpening their thoughts and their pencils, as they think about what kind of outcomes they want to achieve? >> You know, its... For some reason, it's a bit of a mystical topic, but to me AI is actually quite simple. I'd like to say AI is not magic. Some people think it's a magical black box. You just, you know, put a few inputs in, you sit around and magic happens. It's not that, it's real work, it's real computer science. It's about how do I put, you know, how do I build models? Put models into production? Most models, when they go into production, are not that good, so how do I continually train and retrain those models? Then the AI aspect is about how do I bring human features to that? How do I integrate that with natural language, or with speech recognition, or with image recognition. So, when you get under the covers, it's actually not that mystical. It's about basic building blocks that help you start to achieve business outcomes. >> It's got to be very practical, otherwise the business has a hard time ultimately adopting it, but you mentioned a number of different... I especially like the 'add the human features' to it of the natural language. It also suggests that the skill set of AI starts to evolve as companies mature up this ladder. How is that starting to change? >> That's still one of the biggest gaps, I would say. Skill sets around the modern languages of data science that lead to AI: Python, AR, Scala, as an example of a few. That's still a bit of a gap. Our focus has been how do we make tools that anybody can use. So if you've grown up doing SPSS or SaaS, something like that, how do you adopt those skills for the open world of data science? That can make a big difference. On the human features point, we've actually built applications to try to make that piece easy. Great example is with Royal Bank of Scotland where we've created a solution called Watson Assistant which is basically how do we arm their call center representatives to be much more intelligent and engaging with clients, predicting what clients may do. Those types of applications package up the human features and the components I talked about, makes it really easy to get AI into production. >> Now many years ago, the genius Turing, noted the notion of the Turing machine where you couldn't tell the difference between the human and a machine from an engagement standpoint. We're actually starting to see that happen in some important ways. You mentioned the call center. >> Yep. >> How are technologies and agency coming together? By that I mean, the rate at which businesses are actually applying AI to act as an agent for them in front of customers? >> I think it's slow. What I encourage clients to do is, you have to do a massive number of experiments. So don't talk to me about the one or two AI projects you're doing, I'm thinking like hundreds. I was with a bank last week in Japan, and they're comment was in the last year they've done a hundred different AI projects. These are not one year long projects with hundreds of people. It's like, let's do a bunch of small experiments. You have to be comfortable that probably half of your experiments are going to fail, that's okay. The goal is how do you increase your win rate. Do you learn from the ones that work, and from the ones that don't work, so that you can apply those. This is all, to me at this stage, is about experimentation. Any enterprise right now, has to be thinking in terms of hundreds of experiments, not one, not two or 'Hey, should we do that project?' Think in terms of hundreds of experiments. You're going to learn a lot when you do that. >> But as you said earlier, AI is not magic and it's grounded in something, and it's increasingly obvious that it's grounded in analytics. So what is the relationship between AI analytics, and what types of analytics are capable of creating value independent of AI? >> So if you think about how I kind of decomposed AI, talked about human features, I talked about, it kind of starts with a model, you train the model. The model is only as good as the data that you feed it. So, that assumes that one, that your data's not locked into a bunch of different silos. It assumes that your data is actually governed. You have a data catalog or that type of capability. If you have those basics in place, once you have a single instantiation of your data, it becomes very easy to train models, and you can find that the more that you feed it, the better the model's going to get, the better your business outcomes are going to get. That's our whole strategy around IBM Cloud Private for Data. Basically, one environment, a console for all your data, build a model here, train it in all your data, no matter where it is, it's pretty powerful. >> Let me pick up on that where it is, 'cause it's becoming increasingly obvious, at least to us and our clients, that the world is not going to move all the data over to a central location. The data is going to be increasingly distributed closer to the sources, closer to where the action is. How does AI and that notion of increasing distributed data going to work together for clients. >> So we've just released what's called IBM Data Virtualization this month, and it is a leapfrog in terms of data virtualization technology. So the idea is leave your data where ever it is, it could be in a data center, it could be on a different data center, it could be on an automobile if you're an automobile manufacturer. We can federate data from anywhere, take advantage of processing power on the edge. So we're breaking down that problem. Which is, the initial analytics problem was before I do this I've got to bring all my data to one place. It's not a good use of money. It's a lot of time and it's a lot of money. So we're saying leave your data where it is, we will virtualize your data from wherever it may be. >> That's really cool. What was it called again? >> IBM Data Virtualization and it's part of IBM Cloud Private for Data. It's a feature in that. >> Excellent, so one last question Rob. February's coming up, IBM Think San Francisco thirty plus thousand people, what kind of conversations do you anticipate having with you customers, your partners, as they try to learn, experiment, take away actions that they can take to achieve their outcomes? >> I want to have this AI experimentation discussion. I will be encouraging every client, let's talk about hundreds of experiments not 5. Let's talk about what we can get started on now. Technology's incredibly cheap to get started and do something, and it's all about rate and pace, and trying a bunch of things. That's what I'm going to be encouraging. The clients that you're going to see on stage there are the ones that have adopted this mentality in the last year and they've got some great successes to show. >> Rob Thomas, general manager IBM Analytics, thanks again for being on theCUBE. >> Thanks Peter. >> Once again this is Peter Buriss of Wikibon, from IBM Innovation Day, Thomas J Watson Research Center. We'll be back in a moment. (techno beat)