>> Announcer: Live, from Orlando, Florida, it's theCUBE, covering ServiceNow Knowledge17. Brought to you by ServiceNow. >> We're back. This is Dave Vellante with Jeff Frick. Chris Bedi is here, he's the CIO of ServiceNow. Chris, good to see you again. >> Good to see you as well. >> Yeah, so, lot going on this week, obviously. You said you're getting pulled in a million different directions. One of those, of course, is the CIO event, CIO Decisions, it's something you guys host every year. I had the pleasure of attending parts of it last year. Listened to Robert Gates and some other folks, which was great. What's happened this year over there? >> So, CIO Decisions, it's really where we bring together our forward thinking executives. We keep it intimate, about a hundred, because really it's about the dialogue. Us all learning from each other. It really doesn't matter, the industry, I think we're all after the same things, which is driving higher levels of automation, increase the pace of doing business, and innovating at our companies. So we had Andrew McAfee, MIT research scientist, really helping push the boundaries in our imagination on where machine learning and predictive analytics could go. And then we had Daniel Pink talking about his latest book, To Sell is Human. And really as CIOs, we often find ourselves selling new concepts, new business models, new processes, new analytics, new ways of thinking about things. And so, really trying to help, call it exercise, our selling muscle, if you will. Because we have to sell across, up, down, and within our own teams, and that is a big part of the job. Because as we move into this new era, I think the biggest constraint is actually between our own ears. Our inability to imagine a future where machines are making more decisions than humans, platforms are doing more work on behalf of humans. Intellectually, we know we're headed there, but he really helped to bring it home. >> Well, you know, it's interesting, we talk about selling and the CIOs. Typically IT people aren't known as sales people, although a couple years ago I remember at one of the Knowledges, Frank Slootman sort of challenged the CIO to become really more business people, and he predicted that more business people would become CIOs. So, do you consider yourself a sales person? >> I do. Selling people on a vision, a concept, the promise of automation. You know, technology, people fear it, right? You know, when you're automating people's work the fear and the uncertainty endowed, or what I call the organizational anti-bodies, start to come out. So you have to bust through that, and a large part of that is selling people on a promise of a better future. But, it's got to be real. It's got to be tied to real business outcomes with numbers. It can't be just a bunch of PowerPoint slides. >> So we always like to take the messaging from the main tent and then test it with the practitioners, and this year there's this sort of overall theme of working at lightspeed, you and I have talked about this, how does that resonate with CIOs and how do you put meaning behind that? 'Cause, you know, working at lightspeed, it's like, ooh that sounds good, but how do you put meat on that bone? >> So, the way I think about working at lightspeed is three dimensions, velocity, intelligence, and experience. And velocity is how fast is your company operating? I read a study that said 40% of Fortune 500 companies are going to disappear in the next 10 years. That's almost half, right? But I think what's going to separate the winners from the losers is the pace at which they can adapt and transform. And, with every business process being powered by IT platforms, I think CIOs and IT are uniquely positioned to explicitly declare ownership of that metric and drive it forward. So velocity, hugely important. Intelligence. Evolving from the static dashboards we know today, to real time insights delivered in context that actually help the human make decisions. And, BI in analytics as we know it today, needs to evolve into a recommendation engine, 'cause why do we develop BI in analytics? To make decisions, right? So why can't the platform, and it can, is the short answer, with the ability to rapidly correlate variables and recognize complex patterns, give recommendations to the humans, and I would argue, take it a step further, make decisions for the humans. ServiceNow did a study that said 70% of CIOs believe machines will make more accurate decisions than humans, now we just got to get the other 30% there. And then on experience, I think the right experience changes our behavior. I think we in IT need to be in the business of creating insanely great customer and employee experiences. Too often we lead with the goal of cost reduction or efficiency, and I think that's okay, but if we lead with the goal of creating great experiences, the costs and the inefficiencies will naturally drop out. You can't have a great experience and have it be clunky and slow, it's just impossible. >> And it's interesting on the experience because the changing behavior is the hardest part of the whole equation. And I always think back to kind of getting people off an old solution. People used to say, for start ups, you got to be 10x better or 1/10th the cost. 2x, 3x is not enough to get people to make the shift. And so to get the person to engage with the platform as opposed to firing off the text, or firing off an email, or picking up the phone, it's got to be significantly better in terms of the return on their investment. So now they get that positive feedback loop and, ah, this is a much better way to get work done. >> It has to. And we can't, you know, bring down the management hammer and force people to do things. It's just not the way, you know, people work. And very simple example of an experience driving the right behavioral outcome, so ServiceNow is a software company, very important for us to file patents. The process we had was clunky and cumbersome. You know, we're not perfect at ServiceNow either. So we re-imagined that process, made it a mobile first experience built on our platform, of course. But by simply doing that, there was no management edict, you have to, no coercion, if you will, we saw an 83% increase in the number of patent applications filed by the engineers. So the right experience can absolutely give you the right desired economic behavior. >> You talked about 70% of CIOs believe that machines will make better decisions than humans. We also talked about Andrew McAfee, who wrote a book with Eric Brynjolfsson. And in that book, The Second Machine Age, they talked about that the greatest chess player in the world, when the supercomputer beat Garry Kasparov, he actually created this contest and they beat the supercomputer with a combination of man and other supercomputers. So do you see it as machine, sort of, intelligence augmenting human intelligence, or do you actually see it as machines are going to take over most of the decisions. >> So, I actually think they are going to start to take over some basic decision making. The more complex ones, the human brain, plus a machine, is still a more, you know, advanced, right? Where it's better suited to make that decision. But I also think we need to challenge ourselves in what we call a decision. I think a lot of times, what we call a decision, it's not a decision. We're coming to the same conclusion over and over and over again, so if a computer looked at it, it's an algorithm. But in our brains, we think a human has to be involved and touch it. So I think it's a little bit, it'll challenge us to redefine what's actually a decision which is complex and nuanced, versus we're really doing the same thing over and over again. >> Right, and you're saying the algorithm is a pattern that repeats itself and leads to an action that a machine can do. >> Yeah. >> It doesn't require intuition >> And we don't call that a decision anymore. >> Right, right. So, in thinking about you gave us sort of the dimensions of lightspeed, what are some of the new metrics that will emerge as a result of this thinking? >> Yeah, I don't think any of the old metrics go away. I'll talk about a few. You know, in lightspeed, working at lightspeed, we need to start measuring, for one, back on that velocity vector, what is the percentage of processes in your company that have a cycle time of zero, or near zero. Meaning it just happens instantaneously. We can think of loads of examples in our consumer life. Calling a car with Uber, there's no cycle time on that process, right? So looking at what percentage of your processes have a cycle time of zero. How much work are you moving to the machines? What percentage of the work is the platform proactively executing for you? Meaning it just happens. I also think in an IT context of percentage of self healing events, where the service never goes down because it's resilient enough and you have enough automation and intelligence. But there are events, but the infrastructure just heals itself. And I think, you know, IT itself, we've long looked at IT as a percentage of revenue. I think with all of the automation and cost savings and efficiencies we drive throughout the enterprise, we need to be looking at IT as a margin contribution vehicle. And when we change that conversation, and start measuring ourselves in terms of margin, I think it changes the whole investment thesis, in IT. >> So that's interesting. Are you measured on margin contribution? >> We're doing that right now. I don't, if an IT organization is waiting for the CFO or CEO to ask them about their margin contribution, they're playing defense. I think IT needs to proactively measure all of it's contributions and express it in terms of margin. 'Cause that's the language the CEO, and COO, and CFO are talking about, so meet them in a language that they understand better. >> So how do you do, I mean, you certainly can create some kind of conceptual value flow. IT supports this sort of business process and this business process drives this amount of revenue or margin. >> So I stay away from revenue, because I think any time IT stands up and says, we're driving revenue, it's really hard. Because there's so many external and internal factors that contribute to that. So we more focus on automation, in terms of hours saved, expressing and dollarizing that. Hard dollars, that we're able to take out of the organization and then bubbling that into an operating margin number. >> Okay, so you sort of use the income statement below the revenue line to guide you and then you fit into that framework. >> Absolutely. >> When you talk to other CIOs about this, do they say, hey, that sounds really interesting, how do I get started on that, or? >> I think it resonates really well, because, again, IT as percentage of revenue is an incredibly incomplete metric to measure our contribution. With everything going digital, you want to pour more money into technology. I mean, studies have shown, and Andrew McAfee talked about this, over the last 50, 100 years, the companies that have thrived have poured more, disproportionally more, into technology and innovation than their competitors. So, if we only measure the cost side of the equation we're doing ourselves a disservice. >> And so, how do you get started on this path, I mean, let's call this path, sort of, what we generally defined as lightspeed, measured on margin, how do you get started on that? >> First step is the hardest. But, it's declaring that your going to do it. So we've come up with a framework, you know, that maps at a process level, at a department level, and at a company level, where are we on this journey to lightspeed? If lightspeed is the finish line, where are we? And I define three stages, manual, automated, cloud, before you get to lightspeed. And then, using those same three dimensions of velocity, intelligence, and experience, to tell you where you are. And, the very first thing we did was baseline all of our business processes, every single one, and mapped it. But once you have it mapped on that framework then you can say, how do we advance the ball to the next level? And, it's not going to magically happen overnight. This is hard work. It's going to happen one process at a time, right? But pretty soon everything starts to get faster and I think things will start to really accelerate. >> When you think about, sort of, architecting IT, at ServiceNow versus some other company, I mean, you come into ServiceNow as the CIO, everything runs on ServiceNow, that is part of the mandate, right? But that's not the mandate at every company, now increasingly may be coming that way in a lot of companies, but how is your experience at ServiceNow differ from the some of the traditional G2000? >> Probably the unique part about being the CIO at ServiceNow is actually really fun, in that I get to be customer zero in that I implement our products before all of our customers. You know, get to sit down with the product managers, discuss real business problems that all of our customers are facing, and hopefully be their voice inside the four walls of service now, and be the strategic partner to the product organization. Now implementing everything, our goal is to be the best possible implementation of ServiceNow on the planet. And that's not just demonstrated by go lives, it's demonstrated by, again, the economic and business outcomes we're deriving from using the platform. So, that part is fun, challenging, and hard work all at the same time. >> So how's Jakarta lookin'? >> Fantastic. We're super excited about everything that's coming out, whether it's the communities on customer service, or our software asset management. That's been a pain, right, for IT organizations for a long time, which is these inbound software audits, from other companies, and you're responding to them and it's a fire drill. In my mind, our software asset management transforms software audits from a once a year, twice a year event, to always-on monitoring, where you're just fixing it the whole time. And it's not an event anymore. I mean, the intelligence that we're baking into the platform now, super exciting around the machine learning and the predictive analytics concepts, we have more analytics than we had before, I mean there's just so much in there, that's just exciting. We're already using it, I can't wait for our customers to get a hold of it. >> Well, CJ this morning threw out a number of 30-plus percent performance improvement. I had said to myself, your saying that with conviction, that's 'cause you guys got to be running it yourselves. >> Yeah, we are. >> What are you seeing there? >> That's not a trivial number, and I think the product teams have done a great job really digging in and makin' sure our platform operates at lightspeed. >> One of the things that Jeff and I have been talking about this week, and really this is your passion here, is adoption, how do you get people to stop using all these other tools like email, and kind of get them to use the system? >> I think, showing them the promise of what it can bring. I think it's different conversations at different levels. I think, too, an operator, someone who's using the email to manage their work, they're hungry for a different solution. Life, working, and email, and managing your business that way, it's hard, right? To a mid-level manager, I think the conversation is maybe about the experience, how consumers of their service will be happier and more satisfied. At executive level, it gets maybe more into some of the economic outcomes, of doing it. Because implementing our platform, you know, you're going to burn some calories doing it, not a lot. Our time to value is really really quick, but still, it's a project and it's initiative and it's got to have an outcome tied to it. >> You know, Chris, as you're saying that it's always tough to be stuck kind of half way. You know, you're kind of on the tool internally and it's great. >> We don't use the word tool. >> Excuse me, not the tool. The app, the platform, actually. But then you still got external people that are coming at you through text, email, et cetera. I mean, is part of the vision, and maybe it's already there, I'm not as familiar with the parts I should be, in terms of enabling kind of that next layer of engagement with that next layer of people outside the four walls, to get more of them in it as well. Because the half-pregnant stage is almost more difficult because you're going back and forth between the two. >> And our customer service product does a lot of that. If you look at what Abhijit showed today, which is fantastic, Communities is another modality to start to interact with people. Certainly, we have Connect, part of our platform, is a collaboration app within the overall platform, so you can chat, just like you would with any consumer app, in terms of chatting capabilities, and that mobile first experience. We're thinking about other modalities too. Should you be able to talk to ServiceNow, just like you talk to Alexa, and converse with ServiceNow, Farrell touched on this a little bit, through natural language, right? We all know it's coming, and it's there, it's just pushing in that direction. >> How about the security piece? You know, Shawn shared this morning, you guys are well over year in now, and he talked about that infamous number of 200 plus days-- >> Chris: Nine months, yeah. >> Yeah, compressing that. Are you seeing that internally in your own? >> We are. We use Shawn's product, we're a happy customer. The vulnerability management, the security incident response, and very very similar results. And just like the customer who was on stage said, go live in Iterate, and that's exactly what we did. Everyone has a vulnerability management tool, like a Qualys, that's feeding in. Bring in all those Qualys alerts, our platform will help you normalize them and just start to reduce the level of chaos for the SOC and IT operations. Then make it better, then drive the automation, so we're seeing very similar benefits. >> How do you manage the upgrade side, we've been asking a lot of customers this week in the upgrade cycle. Some say, ah, I'll do in minus one just to sort of let the thing bake a little bit. You guys are in plus one. How do you manage that in production, though? >> Sure, so we upgrade before our customers, and that's part of our job, right? To make sure we test it out before our customers. But I'll say something in general about enterprise software upgrades, which is, there is a cost to them and the cost is associated with business risk. You want to make sure you're not going to disrupt your business. There is some level of regression testing you just have to do. Now, strategies I think that would be wise are automating as much of that testing as you can, through a testing framework, which we're helping our customers do now. And I think with some legacy platforms, that was incredibly expensive and hard and you could never quite get there. Us being a modern cloud platform, you can actually get there pretty quickly to the point where the 80, 90% of your regression testing is automated and you're doing that last 10 to 20%. 'Cause at the end of the day, IT needs to make sure the enterprise is up and running, that's job number one. But that's a strategy we employ to make upgrades as painless as possible. >> That's got to be compelling to a lot of the customers that you talk to, that notion of being able to automate the upgrade process. >> For sure, it is. >> You're eliminating a lot of time and they count that as money. >> It is money, and automating regression testing, it's a decision and a strategy but the investment pays off very very quickly. >> Dave: So there's an upfront chunk that you have to do to figure out how to make that work? >> Just like anything worth doing. >> Dave: Yeah, right. >> Right? >> Excellent. What's left for you at the show? >> What's left for me? I love interacting with customers. I got to talk with a lot of CIOs at CIO Decisions. I actually enjoy walking through the partner pavilion and meeting a lot of our partners and seeing some of the innovation that their driving on the platform. And then just non-stop, I get ideas all day from meeting with customers. It's so fun. >> Dave: Chris, thanks very much for coming to theCube. >> Thank you. >> We appreciate seeing you again. >> Chris: Good seeing you. >> Alright, keep it right there everybody. Jeff and I will be back with our next guest. This is theCube, we're live from Knowledge17. We'll be right back.

>> Announcer: Boston, Massachusetts It's theCUBE. Covering OpenStack Summit 2017. Brought to you by the OpenStack Foundation, RedHat, and additional ecosystem support. (upbeat techno music fades out) >> Hi, I'm Stu Miniman, joined by John Troyer, and this is theCUBE, SiliconANGLE Media's live broadcast of OpenStack 2017 here in beautiful Boston, Massachusetts. Actually, the clouds have been breaking up, a little bit of sunshine here, and it's our third day of broadcasts. We have really a lot of our editorial segment today. Going to be talking to more community members, talking to one of the Superuser winners, a number of startups, and happy to start the day, Lisa-Marie Namphy who is the US OpenStack ambassador. CUBE alum, been on a number of times. Lisa, tell us what's new in your world. >> Thank you Stu, and thanks John and what a pleasure to be here with you folks, and hello, Boston and world, good morning. What's new, well the OpenStack ambassador program is expanding all the time, we just had a great session that Sonia did to kick off the day today to really talk about, you know, how to get involved in OpenStack, even if you're not necessarily a technical person. It's really important to acknowledge how everybody in our community can contribute, and that's one of the things the ambassador program does really well. So we just had a session on that. One of the things that I've done with our user group that is new and super exciting is I've morphed it into a little bit of the OpenStack in Containers user group. So I've been focusing a lot on containers, done 12 or 13 meetups on Kubernetes and or Docker since last summer, and I just had the pleasure of speaking in the CNCF communities track, communities day track yesterday, and that was so much fun, out there in the grand ballroom, so that's kind of some new and fun things we're doing. >> It's great, this is our fifth year doing theCUBE at this show, always a robust community, really. When we started coming, it was the people building it, Now we have a lot of the users, there's different sub-segments, can you speak a little bit to the kind of maturity of the community, and, you know how do people get involved in the ambassador program, how many are there geographically, number wise, diversity, those kind of things. >> Oh gosh, yeah so it's geo, or it's a worldwide program and it's been going a lot, and you're right, you know years ago, here it was the Design Summit, and we sat around and talked about, you know the next six months of the project, and then it morphed into more users, adoption, customers, operators are a really big one too. And now those things are all so big, we have operators, Midcycles, and all and the Design Summit has been, you know sequestered off into, separated out so that we can really focus here on the customers, the community, users, and those type of contributors as well. So things have changed a lot in the seven years since we've been doing OpenStack. The ambassador program is fantastic. The foundation has done a really good job in the last couple of years of acknowledging the contributions of the user community, and so not necessarily the code contributors only, but the people who are also spending as much time contributing in really significant ways to our community, and growing our commnity. Open source doesn't work without a community. So we know that, and we're doing a much better job of acknowledging who those people are and rewarding them. >> John: How many ambassadors worldwide? >> There's about twenty of us. I'm the only one in the US right now, but we're about to change that. I believe my friend Sheila is going to join and cover the East Coast, and I'll be able to do everything west of the Mississippi, but most countries only have one, and... >> And the role of an ambassador, do you do a lot of meetups? Do you go speak? You're there as a, for people to contact as well, right? >> Yeah, we generally recruit or ask people to be ambassadors if they are already doing those things, if they're already running a local user group, if they already have a brand in OpenStack, and they speak, and they kind of already know how to reach out to people, and how to inspire people, or people see them on stage, and that's why the foundation approached me to do it. I had been running the San Francisco Bay area meetup for three years, and speaking, I don't know this is probably my eighth, ninth, maybe tenth OpenStack Summit that I've been speaking at, and OpenStack days and all of that. And so, you kind of see who's already doing it. The cool thing about community is nobody is asked to do it, like you do it because you have a passion for it, because you love it, because it's the right thing to do, because it's helpful to push the technology forward because you have a passion for the technology, because you love people, all these reasons is why people get into it. So you find all over the world people who are doing this. They're already doing it and they're not being paid to do it they're doing it, those are the people you grab, because you know, there is a burnout level to it but those are the people who have enough passion about it and commitment, and believe in community that they're going to be successful at it. >> Can you talk a little bit about the Bay Area OpenStack user group? It's one of the largest OpenStack user groups, and one of the themes we've seen this week is a lot of talk about containers, a lot of talk about, well, Kubernetes, but containers in general, kind of demystifying the sometimes confusing story about where's OpenStack good for, where's the container layer good for, it turns out it's good for a couple different places, you can containerize OpenStack, you can also... A lot of talk about the app layer on top, but you actually, what you just said, you've actually expanded the conversation, you don't just sit there and say "this month we're talking about Neutron," you talk about a lot of different topics, and you bring people to the table. >> Yeah, San Francisco area, you are correct, it is the world's largest OpenStack user group, we have over 6,000 members. Not all of them are located in the Bay Area, I think people like to join the user group because we provide a lot of really good content, and we live stream our meetups, we have Google Hangouts, I record them all, they're all on our calendar, if you go to meetup.com/openstack, you get to us because we were the first one. So we do get a lot of people from around the world, and I write newsletters with lots of interesting information but it is a local community and we do encourage people to participate, so the meetups are super important and the only way to make sure that you keep your community strong and keep people coming back is to have phenomenal content in your meetups. So I work really hard to make sure that the content is interesting, that it's relevant, and the most exciting, most relevant conversation since last summer has been containers. The year before that it was networking, and it still kind of is and always will be. So we do a lot of meetups on networking, too, but containers has been what people want to talk about. They're trying to figure this out. OpenStack has reached a maturity level where people, you know, they're not necessarily learning or if they are they can take an OpenStack 101 course and those exist all over the place. So we've gone to the next level, and whether it was Cloud Foundry or now Containers we do like to talk about what else you can do with this fabulous technology, and how you should do it. So we've had meetups where we've presented OpenStack on communities, communities on OpenStack, where I personally came in and did a whole meetup on Kubernetes as the underlay, and Rob Starmer came in and did a whole workshop and hands-on about how to run OpenStack on containers. Yesterday our panel, you heard Dan Berg talk about just simplifying it, run everything in a container, but keep it as simple as possible, so what pieces do you need? So these are the conversations that we like to have in our user group, and people keep coming back because it's an exciting conversation. >> Yeah, expanding on that, you talked about just people are always coming, new people to the community that don't know it, people that are changing jobs all the time, new technologies, I mean, we all know community building is a constant, you know, reinvention in something, you keep needing to work How do the ambassadors, how do stay energized on it, how do you keep the momentum and the energy of the community going? >> Yeah, well the cool thing about an open source community is no matter where you're working, you're still part of the community. So I've worked with so many other people here, I don't even know where they are sometimes. I mean we don't tend to talk about what company we're actually working for, or who's paying your paycheck, and especially in the early days of the project that was definitely true, and so some of my good friends have been at four different companies in the time that we've been doing this OpenStack thing, but we're all still working on OpenStack, and I suspect Kubernetes will be very similar, or Docker. You know, how many people are working on Docker? But there's only 200 people that work for Docker, right? So these technologies kind of take on these lives of their own, and people do switch jobs a lot, but people come to meetups because it's a constant thing, and it's also a good place to keep networking and keep looking for work, so we got a lot of that. The beginning of every meetup, I ask for a show of hands of who's hiring. If I ask for who's looking, not everybody raises their hand but if you ask who's hiring, there's a lot of people hiring all the time, and so then the people can look around and say "okay I'm going to go talk to those people," so yeah, the networking is an important part. >> On that point, are you seeing any trends as to what are the roles that they're hiring for, or you know, companies or industries that definitely have changing skillsets, you know John spent a lot of time helping all those virtualization people moving to that next thing, what are you seeing? >> Engineering is the big one, and people are still looking for OpenStack engineers. I mean people ping me all the time, saying "do you know any OpenStack engineers?" So that's usually the number one thing, developers to help build out these things, and then also the companies that, you know, that aren't OpenStack companies, you know companies like GE that are trying to hire what, 20,000 developers in the next couple years, and Mercedes and Tesla, and you see all these companies that are trying to build out their software developer programs. So another role that is interesting that people are hiring for is these developer, DevRel, Developer IVC community roles to try to figure out, you know how are we going to build our developer community within our company? If these are really large companies, or you know, companies like IBM which have interest in things like the Apache Spark community, or you know, you find these pockets in these large companies as well. Or there's a lot of startups, you know unlike, probably not like Docker as much, but Kubernetes is going to have this ecosystem of partners that build around it, and these companies are popping up out of the woodwork and they're growing like crazy, and there's like 30 of them in the Bay Area, right? So they're really trying to expand as well. >> I wanted to ask about the general mood of the summit. My first summit... You know, it happens every six months. I've been impressed by how grounded people are, I see a lot of first time attendees, people starting new OpenStack installations in 2017 right now, here to learn... I'm just kind of curious, over the last couple summits is there anything different you see about here in Boston, anything you're looking forward to going to in the next one, in terms of kind of mood and how people are, are people feeling good, are people, you know, are people still puzzling out this container issue, or are people still talking about public versus private, or what are kind of the mood and conversations you hear from other community members? >> I think people are talking about public versus private again, not still right? I mean is it, that was kind of an interesting one, and I think Johnathan brought it up on main stage on the first day about that kind of readoption of private cloud, and that you know, we knew that was a sweet spot for OpenStack particularly in the US. You know, lots of public clouds running on other parts of the world, but that's a fun conversation, and it's containers of course, but not just containers. I think it was maybe Lauren Sell who put the slide up of all of those other technologies that are, you know affiliate now, and... >> Another ecosystem of open source projects >> Lisa: Yeah, yeah >> that can all interoperate with openstack. >> With Cloud Foundry, and Ansible was up there, and Ceph, and you had a slide full of technologies, OpenDaylight, that are all playing a role here and that the conversation has been about, and I just encouraged in the ambassador session and in the meetup sessions to do that with your meetup. Our meetup has been really successful and the people have loved it because we started bringing in this other technology. People want to talk about IoT, they want to talk about AI, they want to talk about machine learning, so there's those, they want to talk about, you know what are the best use cases for OpenStack so we showcased to GoDaddy what they built with Docker on top of OpenStack. So there's a lot of fun conversations to be had right now, and I think there's a buzz around here, you know that, what, day one when Johnathan put the slide up saying, you know, people have predicted the end of OpenStack and that was like four years ago or whatever, that was an awesome slide, right? I'm sure talked to him about it. >> Yeah, I absolutely traded notes, and caught opinion about it, too. Lisa, you live in The Valley, I'm curious about perception in The Valley, you know, OpenStacks now been around seven years, it's kind of, you know, it's matured, it's moved on, some called it boring because we fixed some of the main issues, you know We mentioned all the OpenStack days with you know Cloud Foundry, Kubernetes, all these software pieces on top, what do you hear in The Valley when people talk about OpenStack, any misperceptions you'd want to clarify? >> Yeah, yeah it's not boring. It's funny when you say to a California girl "you live in The Valley," I'd be like, "let's just say The Silicon Valley." Not the, not the other Valley. >> Stu: Not the Valley girl >> Don't make me start talking like that, right? >> Stu: Oh my god! (laughs) >> Right, so, no. It's never boring, it's never... It hasn't been boring from day one, and there's been times where I felt like okay we've been talking about infrastructure for years now, let's talk about some other things, but I love the way at this conference they're talking about, they're calling it the "open infrastructure conference." You know, this is what OpenStack has become, and that just opens the conversation. You know, I love that shift. There's always something exciting to talk about, and I don't mean the little inside baseball things, like should we have done Big Ten, should Stackalytics go away, I mean, you know people like to talk about that stuff, but I don't find that customers or the people at the meetups are talking about that stuff. People at the meetups are talking about you know, how should we run this with Kubernetes? How do these technologies fit together? You know, lots of different things, you know where does Docker play into it? Networking is still a conversation and a problem to still be solved, and how are we going to do this? We had OpenContrail do a meetup with us a couple of weeks ago. There's still a lot of interest in figuring out the networking piece of it, and how to do that better. So we're never going to run out of things to talk about. >> Alright, so how do more people get involved, how do they find their meetups, where do they find resources? >> Most of, openstack.org has a list of all the communities, but most of the communities use meetup.com, almost globally, so if you go to meetup.com, and you put in your geo, you'll find one. You can contact your local ambassador. If you want to get involved, I say just go to a meetup. I mean you can't start leading communities until you participate in communities. There is no way to phone this in. You have to, it's hands-on, roll up your sleeves, let's get to work and participate, and have some fun. So go to a local meetup, and meet your meetup organizers, volunteer, help, and it's so rewarding. Some of my best friends that I have, I've met through OpenStack or open source projects. It creates many opportunities for jobs. So just start going to meetups and get involved, and if you want to be an ambassador, there's a list on the website of how to figure that out. Tom Fifield runs the whole program with Sonia's help out of Australia, but regionally we're always looking for help. There's no shortage of roles that people can play if people really want to. >> Definitely a vibrant community here, doing well, Lisa-Marie Namphy, always a pleasure to catch up with you, and we have a full day of programming coming, so stay tuned and thank you for watching the cube. >> Lisa: Thanks Stu, thanks John. (upbeat techno music)

(upbeat music) >> Narrator: Live, from Silicon Valley. It's the Cube. Covering Google Cloud X17. >> Okay welcome back, everyone. We are live in Palo Alto for two days of coverage of Google Next 2017. I'm John Furrier, we're here with Tom Kemp, CEO of Centrify. No longer a startup, they're scaling up. You guys do it very well. Tom, great to see you. Welcome to the Cube. >> Great to be here. >> Saw you at RSA, you guys had an exceptional event. One Presence to show, obviously a security show, you're in the security business. But also mobile world congress will try to get you on again security's hot, front and center at mobile world congress. >> Yeah. >> Security is front and center at Google Cloud Next. Security is front and center at blank event. It's happening everywhere right? So give us the update. What is Centrify, obviously the "No Breach" is your tagline. What's up with Centrify? Give us a quick update on what you're up to. >> Yeah, absolutely. So we're a security company focused, as you said, on identity. And we really address the issue of too many passwords and too much privilege. The fundamental issue that's happening within security, is like 75 billion dollars is being spent on it, it's one of the fastest growing market segments, but it's failing because the breaches are far outnumbering, and growing at a faster rate, than the amount of money being spent on that. And so, we're trying to rethink security by looking at where are the breaches are coming from, and they're coming in from, like in the case of Podesta, stealing usernames and passwords. And Verizon said two thirds of breaches involve stolen credentials. And Forrester just recently said that 80 percent of breaches involve the compromise of privileged accounts, the rude accounts for the infrastructure etc. So if two thirds, to 80 percent of breaches involve identity, we fundamentally believe you need to focus a lot more on that, and that's what we're all about. Focusing on identity. >> And what is this? Is this a new revelation, or is this something that you guys have felt was happening for a long time, or has it just been the matter of fact, that's what's happening? >> You know it's, we have some great investors, and we have Excel, Mayfield, Index, Sigma now called Jex, and Square Adventures. And one of the board members told me, the markets come to you, because we've been doing this for over 10 years. And focusing on identity, and people are like, "Oh okay, that's interesting." But now, if you look at just the massive number of breaches that are occurring, and the focus that identity is the leading attack vector, and then you couple it with the whole move to the Cloud, I know we're going to be talking about what Google is doing in the Cloud, etc. It actually makes the problem even worse. And so we feel that we've been plugging along, doing and focusing on identity, and now kind of the market has come to us, because of the move to Cloud, and the hackers are going after identities. >> Yeah it's interesting, I saw a Facebook friend, I won't say his name for privacy, because I don't have the right to talk about it, he's in bitcoin, so obviously that world is an underbelly in itself. Yeah but, interesting thing is that he had two factor authentication on his phone, and someone hacked his phone and they sent the password back to his phone, all his bank accounts are gone. >> Oh my goodness. >> So this is an example of that privileged identity. So that even two factor authentication, in that case, didn't work. So you starting to see this, right? So what's the answer, and how does it relate to cloud? There's no perimeter in the cloud. Is it federated identity, is it some blocked chain thing, is there new model? What's your view on this, and how you guys attacking it specifically? >> Yeah, I mean in a world in which we're increasingly moving to the cloud, what can you secure? Like if I'm at a Starbucks in Palo Alto, on my Ipad, talking to Google apps, talking to sales force etc., I don't have any Anti Virus, I'm not using any next gen firewall, or VPN etc. So the focus needs to shift to securing the user. And you really need to start integrating, and leveraging, from a multi factor authentication biometrics as well. Use that phone, use the touch ID, to actually ensure that. And then also, in the cloud, start analyzing user behavior. And actually determine, well wait a minute, this person normally doesn't login from China, but now he's accessing the sales force, or Facebook etc. So, it's becoming, evolving more to utilizing mobile device as part of your identity, and it's also leveraging machine learning to understand what normal behavior is, and blocking abnormal behavior. >> And also using big data techniques, because your point about China is interesting. Anyone who travels might have had this situation, we go to Vegas a lot for the Cube, but like I'm in Vegas then I pull out an ATM withdrawal, next I go to use my other credit card, and it says "woah fraud alert." >> Tom: Yes. >> Well, wait a minute, I made a cell phone call, I took money out of the bank, and yet the credit card didn't know that I'm in Vegas. Now that's interesting, so conversely, China's accessing my accounts, and I'm making phone calls in Palo Alto, that should be obvious. >> Yeah. >> That just seems like it's just so disfragmented data sets. >> So historically, the definition of identity was a username, and a password. But, in a Cloud world, identity should be redefined in terms of your applications, your device, your location, and your activity. So, if you are trying to access an app from China, it should ask you for four or five additional bits of information, instead of two factors, it should be multi-factor, and it should include biometrics as well. So, machine learning is this going to become even more critical to reduce fraud, and the compromise of credentials. >> So, let's talk about google next. Because one of the things that, I mean really we know Google, we're living in Palo Alto, they're all around us, they're in Mountain View, Larry Page lives in the hood here. Google has always been a technology innovator, and it's clear that that's the lead for their Cloud. But the enterprise, which they're by the way serious, Dian Green is very serious with enterprise, they're just starting to move down that road. You've been there for awhile, on mobile, and in the enterprise, what is some of the things that people should know about on how hard it is in the enterprise? Specifically with Cloud, what is some of the things that you see as table stakes? >> Yeah, it's actually having meat eating sales reps out in the field. Not relying on some person who's-- >> John: Some bot. >> Yeah some bot, or some 20 year old calling from Austin, or Mountain View, but it's actually having someone there, with a technical architect, that can hop on a subway, or be there within a half hour to spend some quality time. >> John: And strategic selling too right? >> Exactly. Because they have a challenge, which is they're competing with both Microsoft and Amazon. And obviously Microsoft has the enterprise people, and Amazon is really ramping up in that area. And I think that, so you can throw the technology, but enterprise accounts want to be able to have a conversation face to face, more so than executive coming out and having a dinner with someone. >> Take me through a sales motion, because this is important. You and I have talked about this in the past, and Dave Loth and I always talk about it on the Cube. And it used to be well known in the VC circles, that sales forces are expensive because the sales motions are different. What is the typical sales motion for an enterprise like Sell. Because it's not as simple as saying, "self service, Cloud, put your credit card down," and get you know, Cooper and Eddy's support, terminal access, static IP's, virtual servers, oh by the way I got a support DB2 as well. A non Oracle database, or Oracle. >> Well, look I mean, it's very easy to have that bite over the web for when you start a developer for a new application. And Amazon's done a great job at that, Microsoft's getting there as well. So if you really want the existing applications to move to the Cloud, you have to sit down and have conversations about a hybrid Cloud environment. Because people will have on premise active directory, they'll have a set of security policies, etc. And so the conversation needs to be had, is like how do you bridge on premise, with the Cloud as well, and make that heterogeneous environment look and feel and smell like it's homogeneous from authentication, authorization, audit perspective, compliance perspective, etc. So you certainly need to first and foremost be able to put architects out there, have that conversation, etc. And you just can't rely too much on partners. And I think from there service level agreements, and then also showing that your Cloud platform is incredibly secure as well. >> Yeah I would agree, I would just say one, on the meat eating sales rep, basically what that means people understand the domain, with an architect technically that's going to SC, and then you have to really kind of have an understanding that there's a multiple stakeholder role. One's a recommender, one's an influencer, one's a decision maker, and it is a campaign. It's a multi pronged campaign. >> Yeah you have to think-- >> John: Know their problems, give them a solution, value creation. >> Absolutely. >> John: Value selling. >> Because there's just a level of complexity. And again I'm not saying that Google for new projects, with the current sales motion, can't bring on an app, and maybe that app leverages their machine learning, which seems to be world class right? >> TensorFlow's getting great traction, Intel's building chips for that as well. >> Yeah. >> Google owns a great developer mind share, and I think they've really cracked the code on open source, and they have great empathy with the developers, we were talking about with Val earlier. But with operationally I just see a disconnect. And Amazon's quietly ramping up too, they're no spring chicken either when it comes to direct selling, but they're been working more years on that. >> And I think you seen the word Hybrid Cloud, and I know you spent time with the folks at Vmware, talking about the relationship with Ama... That's all about the Hybrid Cloud, which people need, the enterprises need a bridge and on ramp. And I think, from our perspective- >> Vmware is very solid with Gelsinger and their sales force. They're very, >> Yeah absolutely. >> Very strong with enterprise selling. >> And that's what we focus, cause we initially started on premise, we tied things in to active directory for example, but now we have a Cloud platform, and we advertise and promote ourselves as addressing identity for the Hybrid environment, and providing the bridge between the two, and I think that's critical. >> Now do you guys have an enterprise sales force, right? >> Absolutely. >> So you've invested in that, over ten years? >> Oh yeah, absolutely. So we have over 60 percent of the Fortune 50, and 80 percent of our sales comes from the Global 2000. We've grown, we're over 100 million in sales, so we're in there having that conversation with enterprises all the time. >> So Tom, so we know Diane Green lives in the neighborhood, so let's pretend she calls us up, "Hey Tom, John, come over. "We'll have a cocktail, and dinner. "I need your advice on how to ramp up my enterprise, "operational empathy, and strategy." What would we advise her? What would you advise her, I have my own opinion. But go to you first. >> I really think and focus on, obviously use the machine learning as a key wedge for new applications, but really focus on the concept of Hybrid. And she mastered going from physical to virtual. Now, everyone's virtualized, and so she needs to figure out how I can get virtual to Cloud, V to C, right? And have the people, and have the conversation, and provide bridging technologies as well. So I think that is going to require, not just purely Cloud based stuff, but it's going to probably provide, she's going to need, either through partnerships, or developer stuff. >> Or M and A. >> Or M and A, she's going to have to build connectors, to help facilitate the bridging, because she can go after definitely the 20 percent of the new stuff, but if you want to attack the 80 percent of the existing stuff, and she did a masterful job of going physical to virtual-- >> At VMware. >> At VMware, and now her challenge is to go V to C. Virtual to Cloud. >> So my advice, Diane if you're watching, is the following: One, don't screw up the Google formula. And I know she's transforming Google, and that's a good thing, they need that right now. But I think, what I like about what I'm seeing at Google Next right now is that they have great technology chops. In kind of the Google, pat themselves on the back kind of way, which is they got mojo, they've always had great technology mojo, and that comes down from the founder. So the machine learning stuff, the AI, the stuff that they're doing in their portfolio has, I call the coolness-relevant factor on the tech. What I would do, is I would specifically nurture that, cause she's also a good knack for doing innovative things, and she's very innovative manager, and I've seen that at Vmware, and other places that she's been advising. So she's got a knack for, "Ahh that's cool, look we should do that cool technology "that's going to have legs in the future." So she's got a good sage picking out the technology. I would do an M and A. I would just stop expanding the existing Google culture relative to that sales motions and the enterpriseness, and just go buy somebody. Spend the billion dollars, or more, take someone out whose got full global, regional sales force, why not? Because then those guys already have the relationships, so the buy, build, to the sales force might take too long. I'm not sure that they could get there. I mean, what do you think about that? >> Yeah I think it's, I think they've been public about it. I think they have to invest in their own, but I do think that M and A, I mean they're number three, and they got to do something. Clearly the machine learning AI stuff is going to be huge. We're actually very impressed, I got emails from the folks at the show, about this whole video stuff, in terms of their ability to use the machine learning, and AI to interpret video, which is pretty impressive. But again that's going to be more for a vertical. Or a specific type of application. And so I think they're going to need to do a combination . >> Here's the thing that I'm seeing though. There's a speed of Google, and there's a speed of enterprise. They might have to throttle down, I don't want to say dumb down, that's particularly not the issue, it's more of throttle down the cadence of what enterprises are comfortable with. For example, SLA's, their SLA's are a little bit gray area, but they're awesome on, "hey it only costs X dollars, "import this great data and crunch all this stuff." So they've got great pricing. >> They need to master, Diane did a masterful job of like, overnight she had a utility that could go P to V, and you flipped it up, and everything just magically worked. And they need to prove that they can forklift the applications, with minimal to no changes, and things magically work. And that requires a bunch of software partnership technology, that it's like flipping a switch to go the Cloud. And if you don't like it, then you can roll it back as well. >> What's their security in position in your mind? You've done an audit, you been keeping track of it, or they're secure. Or what's the needs of the enterprise that they should be addressing for security? Well you guys have a relationship with any other booth at the event. >> Yeah absolutely, and we integrate at multiple levels as well. I think they're doing a pretty good job, I think that other vendors like Microsoft are really more heavily investing in areas that we're in, such as identity, so Microsoft has basically replicated the playbook with active directory, and they have something called Azure AD, and so Google doesn't have anything that's equivalent. That's good for us, that actually leads to opportunities, but they could do more in the areas of identity. I think if you look at what Amazon's doing in terms of web application firewalls, and protecting applications that are being spun up in the cloud. I think those are areas that can be improved. Encryption, key management, etc. So if you look at the slide that they have where they say insecurity, I think they list three items, but then if you were to compare it to say Microsoft, or Amazon, they've got five, six, seven items right there as well. I think that there's definitely going to be needs and requirements that need to be met and addressed there. So it's good, for us. >> Well to me it's just a matter of their evolution, they can only go as fast as they can go. That's what the people that I tend to talk to don't get. They can be critical of Google, but at the end of the day they can only go so fast. >> Yeah, and also another bit of advice, is they do have a very good install base with Gsuite, formerly Google apps, but they got to do a better job of leveraging that when people try to move to infrastructure as a server-- >> I think they're taken that advice because it was clear that they're at this event, was they're showcasing a lot of the stats on Gsuite, they're also talking about the apps. And that's consistent with IBM, Oracle, and Microsoft. They're throwing in their Sass layers as part of the stack as well. That's how they can differentiate from Google. What else do they have right? >> Really it's almost like a startup company that's been around for a few years. They have their initial product, and they come out with their second product and the board members will say, "Well what's the adoption of cross selling "the new product with the existing?" And so it should be interesting to see if they can get people that bought in to the Gsuite vision, to say, "Oh okay, now I'm going to start firing up servers "on the Google Cloud platform." >> Well you bring up a good point about their Gsuite, and I mentioned Microsoft using Office 365 as an example. Oracle throws their apps into the blender, if you will. On the numbers and everything. It's interesting Wikibon research is showing that the past layers squeezing, that's a big debate in our own research team, but Gartner research that I just recently looked at from February. Basically there's a new talk about Sass, so if you start including Sass, then you got to open up the conversation to Salesforce, Adobe, and on and on and on. Because there's a Cloud service provider model out there. Linkedin's a service provider. So what is Sass, I always look at it like what's the Sass equation look like. I mean, what does Cloud really look like? >> I look at the statistics, because we address both infrastructure as a service, and software as a service as well, with our identity solutions. Clearly infrastructure as a service is a much bigger market, Sass is pretty significant, but if you add up Sass, infrastructure, and Pass, it's about 24 billionish right there. But guess what, Amazon already has over 10 of it last year. Amazon has 40 percent of the Cloud market as well. And they've proven that you don't have to have a Sass capability to be incredibly successful in the Cloud. >> Well they have their one Sass that was called Amazon.com, but they broke that out. Alright, Tom what's next for you guys at Centrify. What's on your, anything coming up, things you're working on, share some quick plug for Centrify, and the progress you're making in status? >> We've been doing this for 10 years, and we feel really good about providing basically a platform for identity. And one theme and trend that we're seeing a lot of in the security market is that buyers have security fatigue, they're so sick of dealing with point solutions, and I think that's working to our advantage, that people are looking at a vendor such as us, that can address, not only single sign up, but multi-factor authentication, privilege account management as well. So we're very much focused these days on providing a set of solutions that are all built on a platform, and just kind of filling in-- >> When you say fatigue, you mean sprawl and applications they're buying just another platform, because they do try to try everything, why wouldn't they? They're getting tired of that? >> In security you just have a lack of security knowledge. There's a huge skills gap when it comes to security. And if you have to buy a point solution to address every little bit of security, you just can't hire people, right? And then you find that you have air gaps that actually makes you less secure. And so we've over time built this platform up, and now we're really seeing that people are like, I don't have to get a standalone EMM, a standalone SSO, a standalone MFA solution, a standalone password vault solution etc. So we're very much focused on selling our platform to customers and with this whole mindset of customers wanting to consolidate vendors. Historically vendor consolidation was about buyers wanting that, but now IT people want that. And so we're really just focusing on, internally articulating how we can actually address a lot of problems that people have with too much privilege, and too many passwords. >> And you guys are expanding your sales force team? >> Oh absolutely. We've definitely hit the critical mass. We're over a hundred million sales, we're growing fast, we're cash flow positive as well. >> John: Alright, congratulations. The VC's happy. Time to go public, so what's your evaluation? Unicorn. >> No comment on that, rule 40 and all that fun stuff. We got a lot of checkboxes right there. >> I think your VC partner is right, your investor, the world is spinning towards you because if you look at the identity, and nearly everything in the digital world, whether it's Cloud, data, or packets or people. It's going to be a persona based focus. Not like, what company you work for. >> We had this huge trend of consumerization of IT, so it's really about the user. So focus on securing the user, not focusing on securing the network, because the network's gone. >> Finally, 30 years later, it's coming back to the user. It's been talked about, the passports, the digital wallet. >> Exactly. >> John: Tom Kemp, CEO of Centrify, a hot startup growing over 100 million in sales. Heard here on the Cube. Very successful company. Really have a nice approach, world's spinning towards them. Really hopefully a great solution for our security and our liberties so we don't get hacked over and over again. It's the Cube, bringing you all the coverage of Google Next, here in the studio I'm John Furrier. Be right back with more, after this short break. (resonant techno music)