>> Announcer: Live from New Orleans, it's theCUBE covering VeeamON 2017, brought to you by Veeam. >> Welcome back to New Orleans everybody. This is Dave Vellante with Stu Miniman and this is theCUBE, the leader in live tech coverage. We go out to the events, we extract the signal from the noise. This is our first day of coverage of VeeamON 2017, the first year Stu we've ever done VeeamON, and we love the customer segments. We have a great one coming up now. Martin Hood is the IS Manager of Hologic, and Chris VanAsselberg is the manager of Server Ops, also at Hologic. Gents, welcome to theCUBE. >> [Martin And Chris] Thanks very much, thank you so much. >> Chris, give us the set-up on Hologic. What do you guys do, what's your shtick? >> Sure, Hologic is a developer, manufacturer and supplier of diagnostic surgical and breast imaging equipment all in the medical field. >> So what's happening in the business that affects IT? What's the conversation like from the business? The good stuff. >> The conversation the last couple of years has all been cloud, cloud, cloud. Very, very interesting topic, but this year it's all about digital transformation, IoT, and probably most importantly to Martin and I is availability. >> Well, when you think about IoT, it just changes everything. It scares the life out of you with security and-- >> Always being watched. >> And then availability obviously, they're like two sides of the same coin, so when you guys sit down and, the business moves fast. I mean, generally speaking, don't hate me for saying this, but the business oftentimes moves faster than IT can move. Is that changing in your organization? How are you changing it and what are you doing to change it? >> I think we're using better tools. We haven't the stuff like many IT departments so we have to adapt by using the best tools that are available. About 12 to 15 months ago explored Veeam as an opportunity and it's clearly made a difference. Staff have a lot more time to dedicate to things that will make a positive difference to the business rather than fixing problems. Those problems were taking up an awful lot of time in the past, not so much so now. >> So, maybe paint a picture of what your environment looks like. Apps that you're servicing, what the infrastructure looks like, virtualization, maybe components of that, major vendors. >> Our core infrastructure is foundation on Cisco UCS, EMC storage and back-ups using obviously ExoGrid storage and then Veeam is our availability platform. From an internal IT organization, we run everything from Oracle to Salesforce to Hadoop, Iceone storage with petabytes of image data, et cetera, so lots and lots of applications. Obviously, no down time expected from anybody but we have a pretty good infrastructure to run all that on. >> What is your sort of strategy and architecture around availability? Back-up, availability is sort of morphing together. >> Yeah, well we live in a world where everybody wants things instantly and it's no different when it comes to restoring fails, for example. Hologic has gone on a heavy recruitment drive for top talent and obviously that top talent has high expectations, so we have to deliver on those expectations. No longer can we wait a week to restore a fail. Even a few days is too long, so we need the right tools to get that job done quickly. >> Yeah, and to be honest, availability is not out of our grasp anymore with the technology available today, it's actually very easy to do it. We have data centers around the world we're able to replicate real time over a gigabyte, plus, you know, connection, five gig connections, 10 gig connections if need be. Replicate data real time, failover between data centers and also even between on prem and in the cloud. That is all possible today to achieve superior up time. >> And when you sit down with a business, do you, well first of all, do you do chargebacks? >> We do not do chargeback, we do showback. It's important for people to understand what something costs but obviously chargeback is a different model that we don't use. >> So when you have a conversation with a business about back-up, I mean in the old days it was, and maybe not so old days, it was one-size-fits-all, here you go, you get the bronze level of service, everybody gets it. Are you able to tune the granularity of your service offering to the business? >> Chris: Absolutely, there are systems that we want to back up and we, for example, back up our east coast data center to an exogrid. We replicate that to San Diego and for DR purposes the acceptance is that it's okay that it might take a day, a week, or even up to a month to be able to restore that data, to become back online. We also have the option to restore to Microsoft Azure if we want to, but we also have systems where it's not a back-up issue, it's yes, we need the back-ups, we need them every fifteen minutes, two disk replicated off-site as soon as possible, but they also want us to replicate the data real time from data center to data center, provide real time monitoring and real time failover. >> Sorry Stu, I'm going to let you jump in. Is the enabler there Veeam? Is it stuff that you've architected yourself? Some kind of combination? >> Veeam's our primary system for our back-ups. It's obviously phenomenal, works great, goes to an exogrid, replicates real time exogrid to exogrid, east coast to west coast. Veeam availability also has replication which we've pursued on many core VMs that require it. System integration tools that are not really on prem, they're tools that exist on prem but their purpose is to pull data from the Salesforces of the world, interface with business systems that might also be off site and we replicate them from the east coast to the west coast, real time. >> You mentioned that from on top you were hearing the cloud, cloud, cloud message. Is cloud a strategic initiative now? How do you put together the pieces, and where does Veeam fit in that discussion? >> I think it's being looked at, it's quite an expensive option for us to go down and I think we have the results-- >> You're saying public cloud would be expensive? >> Yeah, for us yes, I mean we have the resources ourselves. We have multiple data centers globally and we have the staff with the skill set to deliver so it's not really been a financially viable option at the moment. >> Stu: Azure you're doing some things with. >> We actually do business with Azure and vCloud Air. We're actually one of VMware's first customers in vCloud Air and we also do business in AWS. The important thing about a cloud strategy is to understand its strengths and its weaknesses. The idea of the cloud for Hologic is not to put a virtual machine up in the cloud. We can run those virtual machines on prem less expensive than we can run them on the cloud. Now on the flip side, if you look at some SAAS applications like email, Skype for Business, IoT, et cetera. Where the cost isn't the compute, memory, storage, et cetera, it's really in the whole package of maintaining these systems, patching these systems, the skill sets to maintain it, et cetera, it sometimes makes sense for the SAAS apps to host it in the public cloud but for the virtual machines that exist as legacy systems, to host them on prem. >> How's that ride for vCloud Air been for you? They recently moved. I believe it's OVH that's taken over management of that. What's your experience been? >> It's been interesting. Lot of premises, strong VMware partnership, we have always been an EMC partner. Obviously that continued when they acquired VMware, and unfortunately we started in their Texas data center. They offered to move us to Japan seamlessly. It wasn't the most seamless thing, but it worked well overall. They then asked us to move out of their Japan data center because they closed it March 31st I believe, so we had to move out of that, so they're no longer one of our key public clouds. We have a Germany data center that we replicate exchange real time using DAG replication and front-end it with load balancers. One of the data centers that we're utilizing is a vCloud instance in Germany that will also go away shortly. >> And what brings both of you to VeeamOn? What were your expectations coming in and how's the experience been so far? >> A lot of the things we saw this morning, the new innovations, these are all things that we've been on our wish list if you want for some time. Particularly things like continuous replication. That's a huge, huge thing for us. It's sort of phase two, we've rolled out Veeam. Now we're looking for the next step and that's the continuous replication of RVMs so that was a real boon to hear such news coming soon. >> Some of the other priorities obviously, we really want to hear about the new technology. As Martin just said, the replication piece is working well today, but the continuous replication, the method where we're no longer snapshot based and instead there's a driver within the VMware tools, there's some other methodology to allow that real time OS replication is a benefit to us, but we are looking at lots of SAAS apps. Obviously, SharePoint for Hologic is in Office 365. We don't want to go back to five years ago where it was five different back-up products depending on what system we're looking at. We want to use Veeam to back up our SharePoint environment. We want to use Veeam to back up our exchange environment, whether it's on prem or Office 365, and long-term we want to back up AWS or Office Veeam or Azure as well, to make sure that we have one system to back it all up. >> [You want Veeam to be your single back up platform and it is today, or it's becoming today? >> Veeam is our only back up product today that we have. When we sent Sharepoint to the cloud, we put a halt on the second phase, which is to move our team sites which is where our data is, and it is literally waiting for the Veeam SharePoint back up technology to become available, and then the rest of it will move up there seamlessly to make sure that Hologic is protected. >> The business value and benefit of having that simple, single architecture is worth the wait is what you're saying. >> Yeah, I mean if you look at VMware, the reason they've been successful isn't just their technology is amazing. It's also their certification program. They brought a bunch of IT people in. Companies everywhere have VCPs or even higher nowadays, so you have talented people working on a stable platform. With Veeam we sent three of our guys off to get their VMCs and that's been hugely successful. They're very confident with the system. They're able to do everything we need to quickly. They're not guessing, they're not Googling. They just know how to use the system. Going to other platforms will be a complete failure because now when someone wants something, you're in the hot seat, something's down, you need to bring it back up, but you don't use it every day so what do you do? >> Pull out the manual, Google. What's the coolest thing you guys have seen here? Anything that really excites you? >> Good question. It's been great hospitality outside of these four walls, of course. It's been superb. We've been well looked after, and looking forward to further experiences tomorrow as well. We're on stage tomorrow as well, so a little nervous about that. >> And the CVP's interesting to you. >> Particularly interesting. We were actually looking at other solutions to purchase in the next year to take it to the next level to provide the more real time replication for systems that really have to stay up rather than be restored. >> And the driver there is just to minimize, get as close to RPO zero as possible? >> Absolutely. If you look at an exchange environment for example their typical design is to build four servers in a DAG cluster so that you can do active-passive but instantaneous failover, right? But the problem with that comes in licensing. If you do Oracle it's the same thing. It doesn't cost a license if a system goes down to then restore that system someplace else, so do you want to pay twice as much licensing and build environments twice as big, or do you want to be able to just instantaneously failover, which won't cost more money. Which one meets the business needs? They both meet the business needs and one costs a lot less which means more money to do other things for the business. >> At SAAS they always love the practitioner perspective. Thanks guys for coming on theCUBE. Really, I appreciate it. >> Yeah, thanks. >> No problem. >> You're welcome. All right, keep it right there buddy. We'll be back with our next guest. This is theCUBEr live from VeeamOn 2017. We'll be right back. (techno music)

>>Good afternoon everyone, and welcome back to Cuan where my cohost John Farer and I are broadcasting live, along with Lisa Martin from Cuan Detroit, Michigan. We are joined this afternoon by two very interesting gentlemen who also happen to be legends on the cube. John, how long have you known the next few? They've, >>They've made their mark on the cube with Jerry Chen from Greylock was one of our most attended cube guests. He's a VC partner at Greylock and an investor and this company that just launched their new cloud observability platform should be a great segment. >>Well, I'm excited. I are. Are you excited? Should I string this out just a little bit longer? No, I won't. I won't do that to you. Please welcome Martin and Jeff from Chronosphere Martin. Jeff, thank you so much for being >>Here. Thank you for having us. Thank you. >>I noticed right away that you have raised a mammoth series C. Yeah. 200 million if I'm not mistaken. >>That is correct. >>Where's the company at? >>Yeah, so we raised that series C a year ago. In fact, we were just talking about it a year ago at Cub Con. Since then, at the time we're about 80 employees or so. Since then, we've tripled the headcount, so we're over 200 people. Casual, triple casual, triple of the headcount. Yeah. Luckily it was the support of business, which is also tripled in the last year. So we're very lucky from that perspective as well. And a couple of other things we're pretty proud of last year. We've had a hundred percent customer retention, which is always a great thing to have as a SaaS platform there. >>Real metric if you've had a hundred percent. I'm >>Kidding. It's a good metric to, to put out there if you had a hundred percent. I would say for sure. It's an A for sure and exactly welcome to meet >>Anyone else who's had a hundred percent >>Customer attention here at coupon this week and 90% of our customers are using more of the service and, and you know, therefore paying more for the service as well. So those are great science for us and I think it shows that we're clearly doing something right on the product side. I would say. And >>Last and last time you're on the cube. We're talking about about the right data. Not so much a lot of data, if I remember correctly. Yeah, a hundred percent. And that was a unique approach. Yeah, it's a data world on relative observability. And you guys just launched a new release of your platform, cloud native platform. What's new in the platform? Can you share an update on what you guys release? >>Yeah, well we did and, and you, you bring up a great point. You know, like it's not just in observably but overall data is exploding. Alright, so three things there. It's like, hey, can your platform even handle the explosion of data? Can it control it over time and make sure that as your business grows, the data doesn't continue explode at the same time. And then for the end users, can they make sense of all this data? Cuz what's the point of having it if the end users can't make sense of it? So actually our product announcement this time is a pretty big refresh of, of a lot of features in our, in our platform. And it actually tackles all three of these particular components. And I'll let Jeff, our head of product, Doug, >>You, you run product, you get the keys to the kingdom, I do product roadmap. People saying, Hey this, take this out. You're under a lot of pressure. What makes the platform platform a great observability product? >>So the keystone of what we do that's different is helping you control the data, right? As we're talking about there's an infinite amount of data. These systems are getting more and more and more complicated. A lot of what we do is help you understand the utility of the telemetry so that you can optimize for keeping and storing and paying for the data that's actually helpful as opposed to the stuff that isn't. >>What's the benefit now with observability, with all the noise out in the marketplace, there's been a shift over the past couple years. Cloud native at scale, you're seeing a lot more automation, almost a set to support the growth for more application development. We had a Docker CEO on earlier today, he said there are more applications being deployed in the past year than in the history of open source. So more and more apps are being deployed, more data's being generated. What's the key to observability right now that's gonna separate the winners from the losers? >>Yeah, I think, you know, not only are there more applications being deployed, but there are smaller and small applications being deployed mostly on containers these days more than if they, hence this conference gets larger and larger every year. Right? So, you know, I think the key is a can your system handle this data explosion is, is the first thing. Not only can it handle the data explosion, but you know, APM solutions have been around for a very long time and those were really introspecting into an application. Whereas these days what's more important is, well how is your application interfacing with every other application in your distributed architecture there, right? So the use case is slightly different there. And then to what Jeff was saying is like once the data is there, not only making use of what is actually useful to you, but then having the end user make sense of it. >>Because we, we, we always think about the technology changes. We forget that the end users are different now we used to have IT operations team operating everything and the developers would write the application, just throw it over the wall. These days the developers have to actually operate this thing in production. So the end users of these systems are very different as well. And you can imagine these are folks, your average developer as maybe not operated things for many years in production before. So they need to, that they need to pick up a new skill set, they need to use new tooling in order to, to do that. So yeah, it's, it's, >>And you got the developer persona, you got a developer that's building products for builders and developers that are building products to be consumed. So they're not, they're not really infrastructure builders, they're just app developers. >>Exactly. Exactly. That's right. And that's what a lot of the new functionality that we're introducing here at the show is all about is helping developers who build software by day and are on call by night, actually get in context. There's so much data chances of when that, when one of those pages goes off and your number comes up, that the problem happens to be in the part of the system that you know a lot about are pretty low, chances are you're gonna get bothered about something else. So we've built a feature, we call it collections that's about putting you in the right context and connecting you into the piece of the system where the problem is to orient you and to get you started. So instead of waiting through, through hundreds of millions of things, you're waiting through the stuff that's in the immediate neighborhood of where the >>Problem is. Yeah. To your point about data, you can't let it go unchecked. That's right. You gotta gotta understand that. And we were talking about containers again with, again with docker, you know, nuance point, but oh, scan your container. But not everyone's scanning the containers security nightmare, right? I mean, >>Well I think one of the things that I, I loved in reading the notes in preparation for you coming up is you've actually created cloud native observability with the goal of eliminating engineering burnout. And what you're talking about there is actually the cognitive burden of when things happen. Yeah, for sure. We we're, you know, we're not just designing for when everything goes right, You need to be prepared for when everything goes wrong and that poor lonely individual in the middle of the night has, it's >>A tough job. >>Has to navigate that >>And, and observability is just one thing you gotta mean like security is another thing. So, so many more things have been piled on top of the developer in addition to actually creating the application. Right? It is. There is a lot. And you know, observably is one of those key things you need to do your job. So as much as, as much as we can make that easier, that's a better bit. Like there are so many things being piled on right now. >>That's the holy grail right there. Because they don't want to be doing exactly >>The work. Exactly. They're not observability experts. >>Exactly. And automating that in. So where do you guys weigh in on the automation wave? Everything's automation. Yeah. Is that kind of a hand waving or what's going on? What's the reality? What's actually happening? >>Yeah, I think automation I think is key. You hear a lot of ai ml ops there. I, I don't know if I really believe in that or having a machine self heal itself or anything like that. But I think automation is key because there are a lot of repeatable tasks in a lot of what you're doing. So once you detect that something goes wrong, generally if you've seen it before, you know what the fix is. So I think automation plays a key on the sense that once it's detected again the second time, the third time, okay, I know what I did the previous time, let, let's make sure we can do that again. So automation I think is key. I think it helps a lot with the burnout. I dunno if I'd go as far as the >>Same burnout's a big deal. >>Well there's an example again in the, in the stuff we're releasing this week, a new feature we call query accelerator. That's a form of automation. Problem is you got all this data, mountain of data, put you in the right context so you're at least in the right neighborhood, but now you need to query it. You gotta get the data to actually inform the specific problem you're trying to solve. And the burden on the developer in that situation is really high. You have to know what you're looking for and you have to know how to efficiently ask for it. So you're not waiting for a long time and >>We >>Built a feature, you tell us what you want, we will figure out how to get it for you efficiently. That's the kind of automation that we're focused on. That's actually a good service. How can we, it >>Sounds >>Blissful. How can we accelerate and optimize what you were gonna do anyway, rather than trying to read your mind or predict the future. >>Yes, >>Savannah, some community forward. Yeah, I, I'm, so I'm curious, you, you clearly lead with a lot of empathy, both of you and, and putting your, well you probably have experience with this as well, but putting your mind or putting yourself in the mind to the developer are, what's that like for you from a product development standpoint? Are you doing a lot of community engagement? Are you talking to developers to try and anticipate what they're gonna be needing next in terms of, of your offering? Or how has that work >>For you? Oh, for sure. So, so I run product, I have a lot of product managers who work for me. Somebody that I used to work with, she was accusing me, but what she called, she called me an anthropologist of a product manager. I >>Get these kind of you, the very good design school vibes from you both of you, which >>Is, and the reason why she said the way you do this, you go and you live with them in order to figure out what a day in their life is really like, what the job is really like, what's easy, what's hard. And that's what we try to aim at and try to optimize for. So that's very much the way that we do all of >>Our work. And that's really also highlights the fact that we're in a market that requires acute realtime data from the customer. Cause it's, and it's all new data. Well >>Yeah, it's all changing. The tools change every day. I mean if we're not watching how, and >>So to your point, you need it in real time as well. The whole point of moving to cloud native is you have a reliable product or service there. And like if you need to wait a few minutes to even know that something's wrong, like you've already lost at that point, you've already lost a ton of customers, potentially. You've already lost a ton of business. You know, to your point about the, the community earlier, one other thing we're trying to do is also give back to the community a little bit. So actually two days ago we just announced the open source of a tool that we've been using in our product for a very long time. But of course our product is, is a paid product, right? But actually open source a part of that tool thus that the broader community can benefit as well. And that tool which, which tool is that? It's, it's called Prom lens. And it's actually the Prometheus project is the open sourced metrics project that everybody uses. So this is a query builder that helps developers understand how to create queries in a much more efficient way. We've had in our product for a long time, but we're like, let's give that back to the community so that the broader community of developers out there can have a much easier time creating these queries as well. What's >>Been the feedback? >>We only now it's two days ago so I'm not, I'm not exactly sure. I imagine >>It's great. They're probably playing with it right now. >>Exactly. Exactly. Exactly. For sure. I imagine. Great. >>Yeah, you guys mentioned burnout before and we heard this a lot now you mentioned in terms of data we've been hearing and reporting about Insta security world, which is also data specific observability ties right into security. Yep. How does a company figure out, first of all, burnout's a big problem. It's more and more data coming. It's like, it's like doesn't stop and the breaches are coming too. How does a company know when they need that their observability strategy is broken? Is there sig signs of you know, burnout? Is there signs of breaches? I mean, what are some of the tell signs that if I'm a CSO I go, you know what, maybe I should check out promisee. When do, when do you guys match in and go we're a perfect fit to solve that problem? >>Yeah, I, I would say, you know, because we're focused on the observability side, less so on the security side, some of those signals are like how many incidents do you have? How many outages do you have? What's the occurrence of these things and how long does it take to recover from from from these particular incidents? How >>Upsetting are we finding customers? >>Upsetting are >>Customer. Exactly. >>And and one trend was seeing >>Not churn happening. Exactly. >>And one trend we're seeing in the industry is that 68% of companies are saying that they're having more incidents over time. Right. And if you have more incidents, you can imagine more engineers are being paid, are being woken up and they're being put under more stress. And one thing you said that very interesting is, you know, I think generally in the observability world, you ideally actually don't want to figure out the problem when it goes wrong. Ideally what you want to do these days is figure out how do I remediate this and get the business back to a running state as quickly as I can. And then when the business isn't burning, let me go and figure out what the underlying root cause is. So the strategy there is changed as well from the APM days where like I don't want to figure out the problem in real time. I wanna make sure my business and my service is running as it should be. And then separately from that, once it is then I wanna go >>Under understand that assume it's gonna happen, be ready to close that isolate >>The >>Fire. Exactly. Exactly. And, and you know, you can imagine, you know the whole movement towards C I C D, like generally when you don't touch a system, nothing goes wrong. You deploy change, first thing you do is not figure out why you change break thing. Get that back like underplay that change roll that change back, get your business back to a estate and then take the time where you're not under pressure, you're not gonna be burnt out to figure out what was it about my change that that broke everything. So, yeah. Got >>It. >>Well it's not surprising that you've added some new exciting customers to the roster. We have. We have. You want to tell the audience who they might >>Be? Yes. It's been a few big names in the last year we're pretty excited about. One is Snapchat, I think everybody knows, knows that application And one is Robin Hood. So you know, you can imagine very large, I'll say tech forward companies that have completed their migrations to, to cloud native or a wallet on their way to Cloudnative and, and we like helping those customers for sure. We also like helping a lot of startups out there cause they start off in the cloud native world. Like if you're gonna build a business today, you're gonna use Kubernetes from day one. Right? But we're actually interestingly seeing more and more of is traditional enterprises who are just early, pretty early on in their cloudnative migration then now starting to adopt cloud native at scale and now they're running to the same problems. As well >>Said, the Gartner data last year was something like 85% of companies had not made that transformation. Right. So, and that, I mean that's looking at larger scale companies, obviously >>A hundred, you're >>Right on the pulse. They >>Have finished it, but a lot of them are starting it now. So we're seeing pilot >>Projects, testing and cadence. And I imagine it's a bit of a different pace when you're working with some of those transforming companies versus those startups that are, are just getting rolling. I >>Love and you know, you have a lot of legacy use case you have to, like, if you're a startup, you can imagine there's no baggage, there's no legacy. You're just starting brand new, right? If you're a large enterprise, you have to really think about, okay, well how do I get my active business moved over? But yeah. >>Yeah. And how do you guys see the whole cloud native scale moving with the hyper scales? Like aws? You've got a lot of multi-cloud conversation. We call it super cloud in our narrative, but there's now this new, we're gonna get some of common services being identified. We're seeing a, we're seeing a lot more people recognize and with Kubernetes that hey, you know what, you could get some common services maybe across clouds with SOS doing storage. We got Min iOS doing some storage. Yeah. Cloud flare, I mean starting to see a lot more non-hyper scale systems. >>Yeah, I mean I, and I think that's the pattern there and I think it, it's, especially for enterprise at the top end, right? You see a, a lot of companies are trying to de-risk by saying, Hey, I, I don't want to bet maybe on one cloud provider, I sort of need to hedge my bets a little bit. And Kubernetes is a great tool to go do that. You can imagine some of these other tools you mentioned is a great way to do that. Observability is another great way to do that. Or the cloud providers have their observability or monitoring tooling, but it's really optimized just for that cloud provider, just for those services there. So if you're really trying to run either your custom applications or a multi-cloud approach, you really can't use one cloud providers solution to go solve that problem. Do you >>Guys see yourselves with that unifying >>Layer? We, we, we are a little bit as that lay because it's agnostic to each of the cloud providers. And the other thing is we actually like to understand where our customers run and then try to run their observability stack on a different cloud provider. Cuz we use the cloud ourselves. We're not running our own data centers of course, but it's an interesting thing where everybody has a common dependency on the cloud provider. So when us e one ofs hate to call them out, but when us E one ofs goes down, imagine half the internet goes down, right? And that's the time that you actually need observability. Right? Seriously. And every other tooling there. So we try to find out where do you run and then we try to actually run you elsewhere. But yeah, >>I like that. And nobody wants to see the ugly bits anyway. Exactly. And we all know who when we're all using someone when everything >>Exactly. Exactly, exactly. >>People off the internet. So it's very, I, I really love that. Martin, Jeff, thank you so much for being here with us. Thank you. What's next? What, how do people find out, how do they get one of the jobs since three Xing your >>Employee growth? We're hiring a lot. I think the best thing is to go check out our website chronosphere.io. You'll find out a lot about our, our, our careers, our job openings, the culture we're trying to build here. Find out a lot about the product as well. If you do have an observability problem, like that's the best place to go to find out about that as well. Right. >>Fantastic. Well if you want to join a quarter billion, a quarter of a billion dollar rocket ship over here and certainly a unicorn, get in touch with Martin and Jeff. John, thank you so much for joining me for this very special edition and thank all of you for tuning in to the Cube live here from Motor City. My name's Savannah Peterson and we'll see you in a little bit. >>Robert Herbeck. People obviously know you from Shark Tanks, but the Herbeck group has been really laser focused on cyber security. So I actually helped to bring my.

>>Hello, everyone. Welcome to the cubes presentation of the 80 startup showcase marketing technology, emerging cloud scale customer experiences. This is season two, episode three of the ongoing series covering the exciting startups from the, a AWS ecosystem to talk about all the top trends and also featuring the key customers. I'm your host, John ER, today we're joined by Louis Fernando, Denise vice president of peak pay social and John Kim, the CEO of Sandberg to learn about the future of what's going on in fostering deeper customer relationships. Gentlemen, thanks for joining us in the cube showcase, >>Excited to be here. >>So John talk about Sendbird real quick set the table for us. What you guys do, you got a customer here to highlight some of the key things you're doing with customers, the value proposition what's Sendbird and what's the showcase about, >>Yeah, I'm really excited to be here. Uh, I'm John founder, C of Sandberg. So Sandberg is the worst leading conversations platform for mobile applications. We can power user to user conversations in mobile applications, as well as the brand to user conversations such as marketing sales and support. So, uh, today we power over quarter billion users on a monthly basis. Uh, we have, you know, through over 300 employees across seven different countries around the world, we work with some of the world's leading, uh, uh, customers such as big pay that we are going to showcase today, along with other, uh, wonderful customers like DoorDash, Reddit, <inaudible> sports and so forth. We have collectively raised over 200 million in funding. Um, so that's kind of where we are today. >>Well, it's always great to have, uh, one great success. Uh, good funding, more important is the customers. And I love showcases where the customers do the talking, because that means you've got some success stories. Louise, talk about, um, are you happy customer? What's it like working with Sandberg? Give us the, give us the scoop. >>So sandbar is being a great partner with us. So pick pay is a Brazilian payment app. We're at a FinTech here with more than 30 million active users using everyday pick pay to pay everything. So the, the, the majority of the payments are between peers, between people. So sandbar is, is helping us to improve a lot this journey to make it more pleasant between every everyone who are using big, big. So we are here, let's talk and it's a >>Pleasure. Yeah, it's awesome. Well, I great to have you guys on great, great relationship. And one of the things we've been talking about on the cube, if the folks watching that know our audience, no we've been banging the, the drum hard on this new world and this new patterns of user expectations and building relationships in this new digital world is not about the old way, the old MarTech way. There are new new use cases, new expectations by the consumers, John, that are, that are bringing up new opportunities, but also expectations. It's not about, I mean, I mean, if someone's using discord, for example, cuz they're gamers, they're done discord. If they want to communicate with, with slack, they, I do slack, SMS, kind of old hat. You got WhatsApp, you've got all these now peer to peer organic connections, multiple channels. This is all the new world. What's your vision on this new relationship building digital communication world. >>Yeah. So I, I think you brought a really good point there. One of the most frequently used applications in the world today are messaging applications across any countries, any region, any culture, if you look at the most frequently used and most longest used applications are usually some form of a, a messaging application. Now the end users or the customers in the world are so used to using, uh, uh, such a, you know, frictionless ver very responsive, modern experience on those messaging applications. What we want to help with the business around the world, the 99.9% of the business around the world don't have those really te knowledge or user experience expertise in messaging. So we want to help our businesses, help our customers be able to harness the power of modern messaging capabilities and then be able to embed it in their own business so that they can retain their users on their platform, engage with them in the con context that their, uh, what their business is about so that they can not only, uh, control or provide a better user experience, but also be able to, uh, understand their users better, uh, understand what they're doing on their businesses, be able to own and, uh, control the data in a more secure and safe way. >>So really it's uh, we're like the Robin hood of the world trying to keep superpower yeah. Back to the businesses. >>Yeah. Deal from the rich idea, the messaging scale. Bring that to everybody else. I love that. Uh, and you got kind of this double int Robin hood kind of new for the new generation finance. This is about taking the advantage of scalable platforms, monopolies, right. And giving the entrepreneur an opportunity to have that same capability feature, rich Louise PPE. You guys used Sendbird together. You have to level up, you gotta compete with those big monopolies to pride, scalable conversations. Okay. How did you engage this? What was your success path look? What was it look like? >>Yeah. When we look to this majority, the bigger chat apps that we have nowadays in the market, we are looking to them and then Brazilians are using for their daily course, but Brazilians are paying every day millions and millions of payments. And these chat apps are not, uh, able to, to, to deal with these payments. So what we are doing here is that, uh, providing a solution where every conversation that are going to happen before, during, or after a payment between the, the people, they would, uh, uh, have a nice platform that could afford all, all of their emotions and discussions that they have to do before or after the payment. So we are putting together the chat platform and we with the payment platform. So that's, that's what we are doing now. >>Okay. So just so I get this right. You're using Sandberg essentially integrated your mobile payment experience. Okay. Which is your app you're Sandberg to bring that scalability into the, into the social app application into the app itself. Is that right? >>Yes. Perfect. Integrated with the payment journey. So everybody who is going to pay, they need to find the one, the, the one they want to pay and then they can chat and conclude the payment through the platform. Yeah. I >>Mean, why not have it right there at point of, uh, transaction. Right. Um, why did you, um, decide to, um, to use conversations in your mobile wallet? Just curious. >>So it's important to say that we were born social. We born in 2012. So when our main main product was peer to peer payments, so everybody were sending money to a friend requesting or charging their family. So a service provider. And once we, we started as a social platform in that period. In that moment, we are just focusing in likes comments and like public interactions and the word become more private. And as soon we under understood this situation, we decided to move from a public feed to a private, to a private interaction. So that's, uh, that then the, the conversational space was the solution for that moving from a public interaction to a private interaction. So between the peers, which are involved in the, the transaction. So that's why we are providing the chat solution integrated with payments. >>That's a great call. John, just give some context here, again, for the folks watching this is now expected, this integrated experience. What's your, how would you talk to folks out there? I mean, first of all, I, I, I see it clearly, you've got an app, you gotta have all this integration and you need it scaling to reach features. Talk about your view on that. Is that the, is that what's happening here? What's, what's the real dynamic here. What's the, the big trend. >>Yeah. One thing that's, uh, super interesting about, uh, uh, like messaging experience in general, if you think about any kind of conversations that's happening, uh, digitally between human beings, more and more conversations, just like what Louis mentioned earlier are happening between in a private setting, even on applications, whether it be slack or other forms of communication, uh, more hap uh, more conversations happen through either one-on-one conversations or in a private small group settings. And because people feel more secure, uh, safe to have, uh, more intimate conversations. So even when you're making transactions is more, you know, there's a higher trust and, uh, people tend to engage, uh, far better on platforms through these kind of private conversations. That's where we kind of come in, whether it be, you want to set a one-on-one conversations or with a group conversation. And then ultimately if you want to take it public in a large group setting, you can also support, you know, thousands, if not, you know, hundreds of thousands of people, uh, engaging a public forum as well. So all of those capabilities can be implemented using something Ember, but again, the world is, uh, right now the businesses and how the user are, are interacting with this with each other is all happening through digital conversations. And we're seeing more and more of that happening, uh, throughout the life cycle of our company. >>Yeah, just as a sidebar, I was just talking to a venture in San Francisco the other day, and we're talking about the future of security and SAS and cloud scale. And, you know, the conversation went to more of, is it SAS? Is it platform as a service Louis? I wanna get your thoughts because, you know, you're seeing more and more needs for customization, low code, no code. You're seeing these trends. You gotta built in security. So, you know, the different, the old SAS model was softwares a service, but now that's everything in the cloud is softwares a service. So, but you need to have that platform kind of vibe for scale customization, maybe some developer integration, cuz apps are becoming the, the touchpoint. So can you walk us through what your vision was when you decided to integrate, chat into your app and how did you see that chat, changing the customer experience for payments and across your user journey? Cause, I mean, it's obvious now looking at it, but it might not have been for some. What was your, what was your vision? And when you had to do that, >>When you looked to Brazilian reality, we can see those in, uh, payment apps. All of them are focused on the transactional moment. And as soon as we started to think, how could be, how could our journey be better, more pleased than the others and make people want to be here and to use and to open our app every day is just about making the interaction with the peers easier, even with a merchant or even with my friend. So the main point that our first step was just to connect all, all the users between themselves to payments. The second step we are providing now is using the chat platform, the send bird platform as a platform for peak pay. So we are going to provide more best information. We're going to provide a better customer experience through the support and everything. So, um, this, this, this interaction or this connection, this partnership with Sandberg are going to unlock a new level of service for our users. And at the same time, a much more pleasant or a more pleasant journey for them while they are using the, the app for a, a simple payment, or if they are going to look for a group objective or maybe a crowdfund in the future or a group to decide, or just to pay something. So we are then locking a new level of interaction between the peers between the people and the users that are, that are involved into this, this payment or this simple transaction, we are making it more conversational. >>Yeah. You're making the application more valuable. We're gonna get to that in the next segment about, you know, the future of apps one and done, you see a lot of sports apps, oh, this big tournament, you know, and then you use it and then you never use it again until next year. You know, you have very time specific apps, but now you guys are smart to kind of build this in, but I gotta ask you a question because a lot of developers and companies out there always have this buy versus build decision. Why did you decide to use Sendbird versus building it in house? It's always kind of like the big trade off. >>Yeah. First of all, it will take a long, long time for us to achieve a major platform as Sandberg. And we are not a chat platform. So we are going to use this social interaction to improve the payment platform that we have. So when we look to the market and we found Sandberg, then we thought, okay, this guys, they are a real platform. And through the conversations, we are seeing that they are roadmap working in synergy with our roadmap. And then we can, we could start to deliver value to our, to our users in a fastest way. Could you imagine it spending 2, 3, 4 years to develop something like sand? And even when we achieve this point, probably our solution will be, would be weaker than, than Sandberg. So it was like no brainer to do that. Yeah. Because we want to improve the payment journey, not to do a chat, only a chat platform. So that's why we are working together to prove it's >>Really, you start to see these plugins, these, you know, look at Stripe for payments, for instance, right. And here in the success they've had, you know, people want to plug in for services. So John, I gotta ask you about, um, about the, the complexity that goes into it. The trust required that they have for you, you have to do this heavy lifting, you gotta provide the confidence that your service is gonna have to scale the compliance. Talk about that. What do you guys do under the covers that make this easy again, great business model, heavy lifting done by you. Seamless integration provide that value. That's why business is good, but there's a lot going on share what's happening under the, under the covers. >>Yeah. Um, before going to like the technical, like intricacy of what we do just to provide a little bit of background context on why we even started this business is we, uh, this is my second startup. My first company was a gaming company. We had built like chat three, four times just for our own game. So we were basically, we felt like we were reinventing the wheel. And then we actually went on a buyer's journey when we were building a social application, uh, uh, for, for, uh, uh, building our own community. We tried to actually be a buyer to see if we can actually find a solution. We want to use turns out that there weren't a lot of like sophisticated, you know, top notch, modern, uh, uh, chat experience that we can build using some other third party solutions. So we had to build all of that ourselves, which became the foundation for se today. >>And what we realized is that for most companies like using a building, the most sophisticated chat is probably not going to be their highest priority in case a pick pay will be, you know, financial transactions and all the other business that can be built on and hosted by platform like pick pay. But, you know, building the most topnotch chat experience would be a priority for a company like let's say WhatsApp or, or telegram, but it will probably not be the priority for, you know, major gaming companies, food delivery companies, finance companies, chat is not the highest priority. That's kind of where we come in, cuz chat is the highest priority for us. And we also have a privilege of working with some of the other, uh, world industry, uh, industry leaders. So by, uh, having this collective experience, working with the industry leaders, we get, uh, uh, technological superiority, being able to, uh, scale to, you know, hundreds of millions of users on a monthly basis. Also the security and the compliances by working with some of the largest commercial banks on some of the largest FinTech applications across the globe. So we have, you know, security, compliances, all the industry, best practices that are built in and all the new topnotch user experience that we are, uh, building with other customers can be also be, uh, utilized by a customer like pick pay. So you get this collective almost like evolutionary benefit. Yeah. By, uh, working with a company like us, >>You get a lot of economies of scale. Could you mind just sharing the URL for the company? So folks watching can go get, do a deep dive. Cause I'm you guys got a lot of, lot of, um, certifications under the covers, a lot of things you guys do. So you mind just sharing URL real quick. >>Yeah. So our company, uh, you can find everything about our company on sandberg.com like carrot pigeon. So, uh, you're sending a bird to send a message. So, uh, yeah. send.com >>All so let's get it to the application, cuz this is really interesting cuz Chad is table stakes now, but things are evolving beyond Chad. You gotta integrate that user experience. It's data. Now you gotta have scale. I mean, you know, people who wanna roll their own chat will find out there's a lot of client side and backend scale issues. Right. You can have a tsunami river like on Twitch, you know, you chat. I mean that, could you got client side issues, data scale. <laugh> right. You got backend. Um, Louis, talk about that dynamic because you know, as you start to scale, you want to rely on that. Talk about this dynamic, how apps now are integrating all these new features. So is it, are apps gonna go like more multifunctional? Do you see apps one and done? What's the, how do you guys see this app world playing out and where does, does the Sendbird fit in? And >>Just, just let me know better John, about the performance or about the, just, just let me >>Oh, slow with performance. Uh, performance is huge, right? You gotta have no one wants to have lag on, on chat. >>Okay. So, um, big pay when we look to the payments have millions, thousands of, of, of payments happen happening every second. So what we are doing now is moving all the payments through a conversation. So it always happened inside the conversation. So since from the first moment, um, every second counts to convert this client. And since from the first moment we never saw in, on Sandberg, any issue about that. And even when we have a question or something that we need to improve the team we're working together. So that that's, those are the points that are making us to work together and to make things going pretty fast. When we look to the users who are going to use chat, they are, their intention is three times better than the users who are not using payments through the chat. They are average. Average spent is three times higher too. >>So they, they are making more connections. They are chatting with their friends. They are friends are here. So the network effect is stronger. So if they're going to pay and they need to wait one more second, two seconds to conclude the payment, probably they will not go into choose paying through the, again, they will use only the wallet, only the code, only the Alliance of the user. So that's is so important for us to perform really, really fast. And then this is what we are finding. And this is what is happening with the integration with Sandberg. >>And what's interesting is, is that the by build chat with conversation, we just had a minute ago kind of plays in here. You get the benefits of Sandberg, but now your transactional fidelity is in the chat <laugh> that you don't build that you rely on them on. So again, that's an interesting dynamic. This is the future of apps, John, this is where it matters. The engagement. This is what you talk about is the new, the new digital experience who would've thought that five, 10 years ago. I mean, chat was just like, Hey, what's going around direct message. Now it's integral part of the app. What's your reading. >>Yeah. I mean, we're seeing that across, uh, uh, to Lewis's point, not just transactions, but like marketing messages are now being sent through chat. So the marketing is no longer just about like giving discount calls, but you can actually reengage with the brand. Uh, also support is becoming more real time through chat. So you're actually building a relationship. The support agents have a better context about the previous conversations and the transactions, the sales conversations, even like building, uh, building alerts, notification, all those things are now, uh, happening through conversations. And that's a better way for customers to engage with the brand cuz you actually, you're actually building a better relationship and also, uh, being able to trust the brand more because there is a channel for you to communicate and, and, and be seen and be heard, uh, by the brand. So we do believe that that's the future of the business and how more and more, uh, brands will be building relationships with their customers. >>Yeah. I love, I love your business model. I think it's really critical. And I think that stickiness is a real, uh, call out point there and the brand, the co-branding and the branding capability, but also really quickly in the last minute we have John and Luis, if you don't mind talking about security, I mean, I can't go a day now without getting an SMS scam, uh, text, uh, you seeing it now on WhatsApp. I mean, I don't even use telegram anymore. I mean, come on. So like, like this is now a problem. The old way has been infiltrated with spam and security issues. Security has to be there. The trust and security real quick, John, we'll start with you and we all Louis go, go ahead. >>No, no. Just, just to, to say how important is that we are not only a chatting platform. We are a payment platform, so we have money now, the transaction. So here in Brazil, we have all this safe, the, the, the layers, the security layers that we have in, on our app. And then we have the security layers provided from Sandburg. So, and when we look to the features, Sandberg are providing to us a lot of features that help users to feel safer like per refined profiles, like announcements, where it's a profile from peak pay, where the users can recognize. So this is peak pay talking with me. It's not a user trying to pass, trying to use big Bay's name to talk with me. So these issues is something that we are really, really, we really care about here because we are not only a chat platform. As I said before, we are a payment platform. We are a FinTech, we're at a digital bank. So we need to take care a lot and we don't have any complaint about it because Sandberg understood it. And then they, they, they are providing since the first moment with the perfect solutions and the user interface to make it simpler for the users to recognize that we speak, pay who is chatting with them, not a user with, with bad, bad intentions. >>Great, great insight, Louis. Thanks for sharing that, John really appreciate you guys coming on. Great showcase. Real final word. John will give you the final word folks watching out there. How do they engage with Sendbird? I want to integrate, I want to use your chat service. What do I do? Do I have to connect in as it managed service is the line of code. What do I do to get Sendbird? >>Yeah. So if you're a developer building a mobile application, simply come visit our website, we have a open documentation and SDK you can download and simply plug into your application. You can have a chat experience up and running matter of minutes, if not ours using our UI kit. So we want to make it as easy as possible for all the builders in the world to be able to harness the superpower of digital conversations. >>All right, great. Congratulations, John, on your success and all the growth and Louis, thanks for coming in, sharing the customer perspective and great insight. Thanks for coming on the showcase. Really appreciate it. Thanks for your time. >>Yeah. Thank you for having me. >>Okay. The a of us startup showcase season two, episode three here I'm John for your host. Thanks for watching.

(upbeat music) >> Welcome, everyone, to theCUBE's presentation of the AWS Startup Showcase. And this episode two of season two is called "Data as Code," the ongoing series covering exciting new startups in the AWS ecosystem. I'm John Furrier, your host of theCUBE. Today, we're excited to be joined by Jon Dahl, who is the co-founder and CEO of MUX, a hot new startup building cloud video for developers, video with data. John, great to see you. We did an interview on theCube Conversation. Went into big detail of the awesomeness of your company and the trend that you're on. Welcome back. >> Thank you, glad to be here. >> So, video is everywhere, and video for pivot to video, you hear all these kind of terms in the industry, but now more than ever, video is everywhere and people are building with it, and it's becoming part of the developer experience in applications. So people have to stand up video into their code fast, and data is code, video is data. So you guys are specializing this. Take us through that dynamic. >> Yeah, so video clearly is a growing part of how people are building applications. We see a lot of trends of categories that did not involve video in the past making a major move towards video. I think what Peloton did five years ago to the world of fitness, that was not really a big category. Now video fitness is a huge thing. Video in education, video in business settings, video in a lot of places. I think Marc Andreessen famously said, "Software is eating the world" as a pretty, pretty good indicator of what the internet is actually doing to the economy. I think there's a lot of ways in which video right now is eating software. So categories that we're not video first are becoming video first. And that's what we help with. >> It's not obvious to like most software developers when they think about video, video industries, it's industry shows around video, NAB, others. People know, the video folks know what's going on in video, but when you start to bring it mainstream, it becomes an expectation in the apps. And it's not that easy, it's almost a provision video is hard for a developer 'cause you got to know the full, I guess, stack of video. That's like low level and then kind of just basic high level, just play something. So, in between, this is a media stack kind of dynamic. Can you talk about how hard it is to build video for developers? How is it going to become easier? >> Yeah, I mean, I've lived this story for too long, maybe 13 years now, when I first build my first video stack. And, you know, I'll sometimes say, I think it's kind of a miracle every time a video plays on the internet because the internet is not a medium designed for video. It's been hijacked by video, video is 70% of internet traffic today in an unreliable, sort of untrusted network space, which is totally different than how television used to work or cable or things like that. So yeah, so video is hard because there's so many problems from top to bottom that need to be solved to make video work. So you have to worry about video compression encoding, which is a complicated topic in itself. You have to worry about delivering video around the world at scale, delivering it at low cost, at low latency, with good performance, you have to worry about devices and how every device, Android, iOS, web, TVs, every device handles video differently and so there's a lot of work there. And at the end of the day, these are kind of unofficial standards that everyone's using. So one of the miracles is like, if you want to watch a video, somehow you have to get like Apple and Google to agree on things, which is not always easy. And so there's just so many layers of complexity that are behind it. I think one way to think about it is, if you want to put an image online, you just put an image online. And if you want to put video online, you build complex software, and that's the exact problem that MUX was started to help solve. >> It's interesting you guys have almost creating a whole new category around video infrastructure. And as you look at, you mentioned stack, video stack. I'm looking at a market where the notion of a media stack is developing, and you're seeing these verticals having similar dynamics with cloud. And if you go back to the early days of cloud computing, what was the developer experience or entrepreneurial experience, you had to actually do a lot of stuff before you even do anything, provision a server. And this has all kind of been covered in great detail in the glory of Agile and whatnot. It was expensive, and you had that actually engineer before you could even stand up any code. Now you got video that same thing's happening. So the developers have two choices, go do a bunch of stuff complex, building their own infrastructure, which is like building a data center, or lean in on MUX and say, "Hey, thank you for doing all that years of experience building out the stacks to take that hard part away," but using APIs that they have. This is a developer focused problem that you guys are solving. >> Yeah, that's right. my last company was a company called Zencoder, that was an API to video encoding. So it was kind of an API to a small part of what MUX does today, just one of those problems. And I think the thing that we got right at Zencoder, that we're doing again here at MUX, was building four developers first. So our number one persona is a software developer. Not necessarily a video expert, just we think any developer should be able to build with video. It shouldn't be like, yeah, got to go be a specialist to use this technology, because it should become just of the internet. Video should just be something that any developer can work with. So yeah, so we build for developers first, which means we spend a lot of time thinking about API design, we spend a lot of time thinking about documentation, transparent pricing, the right features, great support and all those kind of things that tend to be characteristics of good developer companies. >> Tell me about the pipe lining of the products. I'm a developer, I work for a company, my boss is putting pressure on me. We need video, we have all this library, it's all stacking up. We hired some people, they left. Where's the video, we've stored it somewhere. I mean, it's a nightmare, right? So I'm like, okay, I'm cloud native, I got an API. I need to get my product to market fast, 'cause that is what Agile developers want. So how do you describe that acceleration for time to market? You mentioned you guys are API first, video first. How do these customers get their product into the market as fast as possible? >> Yeah, well, I mean the first thing we do is we put what we think is probably on average, three to four months of hard engineering work behind a single API call. So if you want to build a video platform, we tell our customers like, "Hey, you can do that." You probably need a team, you probably need video experts on your team so hire them or train them. And then it takes several months just to kind of to get video flowing. One API call at MUX gives you on-demand video or live video that works at scale, works around the world with good performance, good reliability, a rich feature set. So maybe just a couple specific examples, we worked with Robin Hood a few years ago to bring video into their newsfeed, which was hugely successful for them. And they went from talking to us for the first time to a big launch in, I think it was three months, but the actual code time there was like really short. I want to say they had like a proof of concept up and running in a couple days, and then the full launch in three months. Another customer of ours, Bandcamp, I think switched from a legacy provider to MUX in two weeks in band. So one of the big advantages of going a little bit higher in the abstraction layer than just building it yourself is that time to market. >> Talk about this notion of video pipeline 'cause I know I've heard people I talk about, "Hey, I just want to get my product out there. I don't want to get stuck in the weeds on video pipeline." What does that mean for folks that aren't understanding the nuances of video? >> Yeah, I mean, it's all the steps that it takes to publish video. So from ingesting the video, if it's live video from making sure that you have secure, reliable ingest of that live feed potentially around the world to the transcoding, which is we talked a little bit about, but it is a, you know, on its own is a massively complicated problem. And doing that, well, doing that well is hard. Part of the reason it's hard is you really have to know where you're publishing too. And you might want to transcode video differently for different devices, for different types of content. You know, the pipeline typically would also include all of the workflow items you want to do with the video. You want to thumbnail a video, you want clip, create clips of the video, maybe you want to restream the video to Facebook or Twitter or a social platform. You want to archive the video, you want it to be available for downloads after an event. If it's just a, if it's a VOD upload, if it's not live in the first place. You have all those things and you might want to do simulated live with the video. You might want to actually record something and then play it back as a live stream. So, the pipeline Ty typically refers to everything from the ingest of the video to the time that the bits are delivered to a device. >> You know, I hear a lot of people talking about video these days, whether it's events, training, just want peer to peer experience, video is powerful, but customers want to own their own platform, right? They want to have the infrastructure as a service. They kind of want platform as a service, this is cloud talk now, but they want to have their own capability to build it out. This allows them to get what they want. And so you see this, like, is it SaaS? Is it platform? People want customization? So kind of the general purpose video solution does it really exist or doesn't? I mean, 'cause this is the question. Can I just buy software and work or is it going to be customized always? How do you see that? Because this becomes a huge discussion point. Is it a SaaS product or someone's going to make a SaaS product? >> Yeah, so I think one of the most important elements of designing any software, but especially when you get into infrastructure is choosing an abstraction level. So if you think of computing, you can go all the way down to building a data center, you can go all the way down to getting a colo and racking a server like maybe some of us used to do, who are older than others. And that's one way to run a server. On the other extreme, you have just think of the early days of cloud competing, you had app engine, which was a really fantastic, really incredible product. It was one push deploy of, I think Python code, if I remember correctly, and everything just worked. But right in the middle of those, you had EC2, which was, EC2 is basically an API to a server. And it turns out that that abstraction level, not Colo, not the full app engine kind of platform, but the API to virtual server was the right abstraction level for maybe the last 15 years. Maybe now some of the higher level application platforms are doing really well, maybe the needs will shift. But I think that's a little bit of how we think about video. What developers want is an API to video. They don't want an API to the building blocks of video, an API to transcoding, to video storage, to edge caching. They want an API to video. On the other extreme, they don't want a big application that's a drop in white label video in a box like a Shopify kind of thing. Shopify is great, but developers don't want to build on top of Shopify. In the payments world developers want Stripe. And that abstraction level of the API to the actual thing you're getting tends to be the abstraction level that developers want to build on. And the reason for that is, it's the most productive layer to build on. You get maximum flexibility and also maximum velocity when you have that API directly to a function like video. So, we like to tell our customers like you, you own your video when you build on top of MUX, you have full control over everything, how it's stored, when it's stored, where it goes, how it's published, we handle all of the hard technology and we give our customers all of the flexibility in terms of designing their products. >> I want to get back some use case, but you brought that up I might as well just jump to my next point. I'd like you to come back and circle back on some references 'cause I know you have some. You said building on infrastructure that you own, this is a fundamental cloud concept. You mentioned API to a server for the nerds out there that know that that's cool, but the people who aren't super nerdy, that means you're basically got an interface into a server behind the scenes. You're doing the same for video. So, that is a big thing around building services. So what wide range of services can we expect beyond MUX? If I'm going to have an API to video, what could I do possibly? >> What sort of experience could you build? >> Yes, I got a team of developers saying I'm all in API to video, I don't want to do all that transit got straight there, I want to build experiences, video experiences on my app. >> Yeah, I mean, I think, one way to think about it is that, what's the range of key use cases that people do with video? We tend to think about six at MUX, one is kind of the places where the content is, the prop. So one of the things that use video is you can create great video. Think of online courses or fitness or entertainment or news or things like that. That's kind of the first thing everyone thinks of, when you think video, you think Netflix, and that's great. But we see a lot of really interesting uses of video in the world of social media. So customers of ours like Visco, which is an incredible photo sharing application, really for photographers who really care about the craft. And they were able to bring video in and bring that same kind of Visco experience to video using MUX. We think about B2B tools, videos. When you think about it, all video is, is a high bandwidth way of communicating. And so customers are as like HubSpot use video for the marketing platform, for business collaboration, you'll see a lot of growth of video in terms of helping businesses engage their customers or engage with their employees. We see live events obviously have been a massive category over the last few years. You know, we were all forced into a world where we had to do live events two years ago, but I think now we're reemerging into a world where the online part of a conference will be just as important as the in-person component of a conference. So that's another big use case we see. >> Well, full disclosure, if you're watching this live right now, it's being powered by MUX. So shout out, we use MUX on theCUBE platform that you're experiencing in this. Actually in real time, 'cause this is one application, there's many more. So video as code, is data as code is the theme, that's going to bring up the data ops. Video also is code because (laughs) it's just like you said, it's just communicating, but it gets converted to data. So data ops, video ops could be its own new category. What's your reaction to that? >> Yeah, I mean, I think, I have a couple thoughts on that. The first thought is, video is a way that, because the way that companies interact with customers or users, it's really important to have good monitoring and analytics of your video. And so the first product we ever built was actually a product called MUX video, sorry, MUX data, which is the best way to monitor a video platform at scale. So we work with a lot of the big broadcasters, we work with like CBS and Fox Sports and Discovery. We work with big tech companies like Reddit and Vimeo to help them monitor their video. And you just get a huge amount of insight when you look at robust analytics about video delivery that you can use to optimize performance, to make sure that streaming works well globally, especially in hard to reach places or on every device. That's we actually build a MUX data platform first because when we started MUX, we spent time with some of our friends at companies like YouTube and Netflix, and got to know how they use data to power their video platforms. And they do really sophisticated things with data to ensure that their streams well, and we wanted to build the product that would help everyone else do that. So, that's one use. I think the other obvious use is just really understanding what people are doing with their video, who's watching what, what's engaging, those kind of things. >> Yeah, data is definitely there. You guys mentioned some great brands that are working with you guys, and they're doing it because of the developer experience. And I'd like you to explain, if you don't mind, in your words, why is the MUX developer experience so good? What are some of the results you're seeing from your customers? What are they saying to you? Obviously when you win, you get good feedback. What are some of the things that they're saying and what specific develop experiences do they like the best? >> Yeah, I mean, I think that the most gratifying thing about being a startup founder is when your customers like what you're doing. And so we get a lot of this, but it's always, we always pay attention to what customers say. But yeah, people, the number one thing developers say when they think about MUX is that the developer experience is great. I think when they say that, what they mean is two things, first is it's easy to work with, which helps them move faster, software velocity is so important. Every company in the world is investing and wants to move quickly and to build quickly. And so if you can help a team speed up, that's massively valuable. The second thing I think when people like our developer experience is, you know, in a lot of ways that think that we get out of the way and we let them do what they want to do. So well, designed APIs are a key part of that, coming back to abstraction, making sure that you're not forcing customers into decisions that they actually want to make themselves. Like, if our video player only had one design, that that would not be, that would not work for most developers, 'cause developers want to bring their own design and style and workflow and feel to their video. And so, yeah, so I think the way we do that is just think comprehensively about how APIs are designed, think about the workflows that users are trying to accomplish with video, and make sure that we have the right APIs, make sure they're the right information, we have the right webhooks, we have the right SDKs, all of those things in place so that they can build what they want. >> We were just having a conversation on theCUBE, Dave Vellante and I, and our team, and I'd love to get you a reaction to this. And it's more and more, a riff real quick. We're seeing a trend where video as code, data as code, media stack, where you're starting to see the emergence of the media developer, where the application of media looks a lot like kind of software developer, where the app, media as an app. It could be a chat, it could be a peer to peer video, it could be part of an event platform, but with all the recent advances, in UX designers, coders, the front end looks like an emergence of these creators that are essentially media developers for all intent and purpose, they're coding media. What's your reaction to that? How do you see that evolving? >> I think the. >> Or do you agree with it? >> It's okay. >> Yeah, yeah. >> Well, I think a couple things. I think one thing, I think this goes along through saying, but maybe it's disagreement, is that we don't think you should have to be an expert at video or at media to create and produce or create and publish good video, good audio, good images, those kind of things. And so, you know, I think if you look at software overall, I think of 10 years ago, the kind of DevOps movement, where there was kind of a movement away from specialization in software where the same software developer could build and deploy the same software developer maybe could do front end and back end. And we want to bring that to video as well. So you don't have to be a specialist to do it. On the other hand, I do think that investments and tooling, all the way from video creation, which is not our world, but there's a lot of amazing companies out there that are making it easier to produce video, to shoot video, to edit, a lot of interesting innovations there all the way to what we do, which is helping people stream and publish video and video experiences. You know, I think another way about it is, that tool set and companies doing that let anyone be a media developer, which I think is important. >> It's like DevOps turning into low-code, no-code, eventually it's just composability almost like just, you know, "Hey Siri, give me some video." That kind of thing. Final question for you why I got you here, at the end of the day, the decision between a lot of people's build versus buy, "I got to get a developer. Why not just roll my own?" You mentioned data center, "I want to build a data center." So why MUX versus do it yourself? >> Yeah, I mean, part of the reason we started this company is we have a pretty, pretty strong opinion on this. When you think about it, when we started MUX five years ago, six years ago, if you were a developer and you wanted to accept credit cards, if you wanted to bring payment processing into your application, you didn't go build a payment gateway. You just probably used Stripe. And if you wanted to send text messages, you didn't build your own SMS gateway, you probably used Twilio. But if you were a developer and you wanted to stream video, you built your own video gateway, you built your own video application, which was really complex. Like we talked about, you know, probably three, four months of work to get something basic up and running, probably not live video that's probably only on demand video at that point. And you get no benefit by doing it yourself. You're no better than anyone else because you rolled your own video stack. What you get is risk that you might not do a good job, maybe you do worse than your competitors, and you also get distraction where you've just taken, you take 10 engineers and 10 sprints and you apply it to a problem that doesn't actually really give you differentiated value to your users. So we started MUX so that people would not have to do that. It's fine if you want to build your own video platform, once you get to a certain scale, if you can afford a dozen engineers for a VOD platform and you have some really massively differentiated use case, you know, maybe, live is, I don't know, I don't have the rule of thumb, live videos maybe five times harder than on demand video to work with. But you know, in general, like there's such a shortage of software engineers today and software engineers have, frankly, are in such high demand. Like you see what happens in the marketplace and the hiring markets, how competitive it is. You need to use your software team where they're maximally effective, and where they're maximally effective is building differentiation into your products for your customers. And video is just not that, like very few companies actually differentiate on their video technology. So we want to be that team for everyone else. We're 200 people building the absolute best video infrastructure as APIs for developers and making that available to everyone else. >> John, great to have you on with the showcase, love the company, love what you guys do. Video as code, data as code, great stuff. Final plug for the company, for the developers out there and prospects watching for MUX, why should they go to MUX? What are you guys up to? What's the big benefit? >> I mean, first, just check us out. Try try our APIs, read our docs, talk to our support team. We put a lot of work into making our platform the best, you know, as you dig deeper, I think you'd be looking at the performance around, the global performance of what we do, looking at our analytics stack and the insight you get into video streaming. We have an emerging open source video player that's really exciting, and I think is going to be the direction that open source players go for the next decade. And then, you know, we're a quickly growing team. We're 60 people at the beginning of last year. You know, we're one 50 at the beginning of this year, and we're going to a add, we're going to grow really quickly again this year. And this whole team is dedicated to building the best video structure for developers. >> Great job, Jon. Thank you so much for spending the time sharing the story of MUX here on the show, Amazon Startup Showcase season two, episode two, thanks so much. >> Thank you, John. >> Okay, I'm John Furrier, your host of theCUBE. This is season two, episode two, the ongoing series cover the most exciting startups from the AWS Cloud Ecosystem. Talking data analytics here, video cloud, video as a service, video infrastructure, video APIs, hottest thing going on right now, and you're watching it live here on theCUBE. Thanks for watching. (upbeat music)

(bright upbeat music) >> Hello everyone. And we're back at AWS Re:Invent. You're watching theCUBE and we're here, day two. Actually we started Monday night and we got wall-to-wall coverage. We going all the way through Thursday, myself. I'm Dave Volante with the co-host, David Nicholson. Lisa Martin is also here. Of course, John Furrier. Partners, technologists, customers, the whole ecosystem. It's good to be back in the live event. Of course we have hybrid event as well a lot of people watching online. Anshu Sharma is here. He is the co-founder and CEO of Skyflow, new type of privacy company, really interested in this topic. Great to see you. Thanks for coming on. >> Thank you, thanks for bringing me here. >> It's timely, you know. Privacy, security, they're kind of two sides of the same coin. >> Yes. >> Why did you found Skyflow? >> Well, the idea for Skyflow really comes from my background in some ways. I spent my first nine years at Oracle, six years at Salesforce. And whether we were building databases or CRM products, customers would come to us and say, "Hey, you know, I have this very different type of data. It's things like social security numbers, frequent flyer card numbers, card numbers. You know, can you secure it better? Can you help me manage things like GDPR?" And to be honest, there was never a clear answer. There's a lot of technology solutions out there that do one thing at a time, you can walk around the booths here, there's like a hundred companies. And if you use all those hundred things correctly, maybe you could go tell your board that maybe a social security number is not going to be lost anymore. And I was like, "You know, we've simplified everything else. Why is it so hard to protect my social security number? It should be easy. It should be as easy as using Stripe or Twilio." And this idea just never went away and kept coming back till a few years ago, we learned about the Facebook privacy challenges, the Equifax challenges. And I was like, boy, it's the time. It's time to go do it now. >> You started the company in 2019. Right? >> Yes. >> I mean, your timing was pretty good, right? So what are the big sort of Uber trends that you're seeing? Obviously GDPR, the California Consumer Privacy Act. I heard this morning. Did you hear this? That like, if you post a picture on social media now without somebody's permission, you're now violating their privacy. It's like, you can see the smiles on Anshu's face. >> Its like every week, we're like every week, there's a new story that could be like, well, Skyflow. The new story is the question, the answer is Skyflow. But honestly I think what's happened is, the issue is put very simple. You know all we're trying to do is protect people's social security numbers, phone numbers, credit card numbers, things we hold dear. At the same time, it's complex. Like what does it mean to protect your social security number let's say? Does that mean I don't get to use it for filing your taxes? Well, I need your credit card number to process a payment. And we were like, this is just too complicated. Why, how do companies like Apple do it? How do companies like Netflix manage not have as many breaches as my hotel that barely has any data. And the answer is those companies actually have evolved to a completely different architecture, the zero trust data architecture. And that was our inspiration for starting this company. >> Yeah. I mean. How many times have you been asked to give your social security number? And you're like, why? why do you want it? What are you going to do with it? How do you protect it? And they go, "I don't know." >> You know, what's even, my favorite is like, you give your social security number to say TurboTax, how many days of the year do they need to use it? One. How many days of the year do they have it? And the thing is, it's a liability for those CTOs too. >> Yeah right. >> The CTO of Walgreens, the CTO of Intuit. They don't really want that social security number just so they can process your card once a year, or your social security number once a year. It's almost like we're forcing them to hold onto data. And then they have to bear the burden of having these stories. Like, you know, everybody wants to prevent a New York Times story that says, what Robin Hood had a breach, Twitter had a breach. >> So walk us through how Skyflow would address something like that. So take the, you know, take the make a generic version of TurboTax, social security members. There they are right now, they're sitting in a database somewhere. Hopefully there's some security wrapped around it in some way or another. What would you advise a customer like that to do? And what are you actually doing for them? >> So, look, it's very simple. You are not going to put your username passwords in a generic database. You're going to use something like OD Zero or Octa to do it. We're living in a world where we have polyglot data stores. Like there's a key value store. There's a time series database. There is a search database like Elastic. There's a log database like Splunk. But PII data, Somehow we think just fine. If it's in a hundred places and our answer is that we should do the same thing that companies like Apple, Netflix, Google, everybody, does. They take this data. They completely isolate it from the databases. And it gets stored in a custom data store in our case, that would be Skyflow. And essentially we'd give you encrypted tokens back and you can use these encrypted tokens that look like fake social security number. It's called a Format Preserving Encryption. So if you think about all the breakthroughs we've had in homomorphic encryption, on secure elements, like the way your phone works, the credit card number is stored in a secure element. So it's the same idea. There's a secure part of your data stack, which is Skyflow. That basically keeps the data always protected. And because we can compute and search on encrypted data, this is important, everybody can encrypt data at rest. Skyflow is the first company that's come out and said, "Look, you can keep your phone number and social security number, encrypted while I can run an aggregation query." So I can tell you what's the balance of your customer's account balance. And i can run that query without decrypting, a single row of data. The only other company I know that can do that internally is a certain Cupertino based company. >> So think about it. Anybody can walk something up to a certain degree, but allowing frictionless access at the same time. >> While it's encrypted. So how do you make that? Are you, is a strategy to make that a horizontal service? That I can put into my data protection service or my E-commerce service or whatever. >> It's a cloud-based service that runs on AWS and other clouds. We basically given instance just like, you'll get an instance of a post-grad store or you get an API handled to OD Zero. You basically instantiate Skyflow of what gets created. It can be in your AWS environment, dedicated VPC. So it's private to you and then you have a handle and then basically you just start using it. >> So how, how do you, what's the secret sauce? How do you do that? >> The secret source. Well, now that we filed the patents on it, I can reveal the secret sauce. So the holy grail of encryption right now, if you go talk to people at a leading company, is there's something called Fully Homomorphic Encryption. That's fundamentally the foundation on which things like Bitcoin are built actually. But the hard part about Fully Homomorphic Encryption is it works. You can actually do mathematical computations on it without decrypting the data, but it's about a million times slower. >> Yes slower, right. >> So nobody uses it. My insight was that we don't need to do multiplications and additions on phone numbers. You never take my phone number and divide by your social security number. (Dave laughing) These numbers are not numbers, they are data structures. So our insight was if you treat them as specialized data structures, we're all talking about basically about 80 different types of data across the globe. Every human being has an ID, date of birth, height, color of eyes. There's not that many fields. What we can do then is create specialized encryption schemes for each data type. We call this polymorphic data encryption. Poly means multiple. As a result of that, we can actually store the data encrypted and build indexes on it. Since we can index interpret data, it's kind of like, imagine you can run real-time queries on data that's encrypted. Every other data store, When you encrypt the data, it becomes invisible to database. And that's why we had to build this as a full stacked service. Just like the Snowflake guys had to start with the foundation of storage, rethink indexing, and build Snowflake. We did the same thing, except we built it for encrypted indexes Whereas they built it for encrypted, for regular data stores. >> So thinking, if you think about today's tech stack, it's evolving, right? The data protection and security are coming together. Where does this fit? Is it sort of now becoming a fundamental part of the-- >> We think every leading company, whether you're building a new brokerage application or you are the largest bank in the world, and we're talking to some of them right now. They're all going to have an internal service called a PII wall. This wall just like Apple and Google have their own internal walls. You're going to have a wall service in your service oriented architecture, essentially. And it's going to basically be the API. Every other application and database in your company is not going to store my social security number. The SSNs don't belong in 600 databases at a leading bank. They don't belong inside your customer support system. Think about what happened with Robinhood two weeks ago, right? Someone tricked one call center guy into giving the keys up, which is fine happens. But why did the call center guy have access to like a million email addresses? He's never used going to use that. So we think if you isolate the PII, every leading company is going to end up with a PII Wall, as part of their core architecture. Just like today, we have an Alt API, you have a Search API, you have a Logging API, you're going to have a PII API. And that's going to be part of your modern data stack. >> So okay. So this is definitely not a bolt on, right? It's going to be a fundamental company, just like security is, just like backup is. It's now, you got to have it. It's-- >> Yes. I mean, if you think about it, it just logically makes sense. Like you should be isolating this data. You don't keep your money and gold around at home. You put it either in a locker or a bank. I think the same applies for PII. We just haven't done it because companies would pay off a fine for $10,000 or a million dollars. And. >> Yeah. So you've recently raised $45 million to expand your efforts. Obviously that means that people are looking at this and saying there's opportunity, right? What does that look like when you think of growth, where during your go to market strategy at first you're convincing people that it's a good idea to do it. Do you think or hope for, hope one day that there's an inflection point where it's not that people are thinking, you know, let's do this because it's a good idea, but people are like, I have to do this because if I don't, it's irresponsible and I'm going to be penalized for not having it. It becomes something that isn't really a choice. It's something where you just do it. >> So, you know, when we were starting the company, we didn't even have a word to explain what we were trying to do. We would say things like what if there was a cloud service for XYZ. And, but over the last one year, I don't want to take credit for creating this market, but this market has been created in the last year and a half. And you know, we get tons of people, including some of the largest institutions emailing us, saying, "I'm looking to build a PII wall, API service inside my company. Can you tell me why your product meets that need?" And I thought that would take us three to five years to get there. And, you know, we've ended up creating a category, basically just like other companies have. And I think, you know, you don't get, I believe in market permission. You don't get to create a category. The market gives somebody the permission to create a category. Saying, "Look, this makes sense. Something like this should emerge." And if you're there at the right time, like you said. >> Yep. >> You get to take the opportunity. >> So where are you at as a company say for some, some capital is great. When do you scale? >> We're scaling now? So we just doubled our headcount in the last nine to 10 months. We're now 75 people. We think we'll be about 150 to 200 people in the next year. We are hiring across all regions. We just hired a head of Asia pack from segment.com. We just hired our first, you know, lead on international expansion. And in the US, we have an office in Palo Alto. We have an office in Bangalore. We just announced a data residency solution for Europe, data residency solution for India and emerging markets. Because data residency is another one of those things that's just emerging right now. And irrespective of whether you believe in security and privacy. Data residency is one of those things that you are mandated to implement. >> And where are you hiring? Is it combination to go to market? Tell me about your go to market. >> The go to market. We are direct sales organization, but we work with partners. So we haven't announced some of these partnerships, but you're working with some of the companies here who either are large database companies, large security companies. We think there is a win-win relationship between us and some of the partner. >> You're a partner model, partner channel model. >> So, direct sales but partner assisted. >> Yeah. Right. All right. We got to go. Hey, awesome story. Congratulations. Best of luck. >> Very interesting. >> Love to have you back and track the progress. >> Thank you, thank you so much. >> Okay. Thank you for watching theCUBE, the leader in and high-tech coverage. We're at Re-Invent 2021. Be right back (upbeat music)

>>welcome back everyone to the cube con cloud, David Kahn coverage. I'm john for a host of the cube, we're here in person, 2020 20 a real event, it's a hybrid event, we're streaming live to you with all the great coverage and guests coming on next three days. Clayton Coleman's chief Hybrid cloud architect for Red Hat is joining me here to go over viewers talk but also talk about hybrid cloud. Multi cloud where it's all going road red hats doing great to see you thanks coming on. It's a pleasure to be >>back. It's a pleasure to be back in cuba con. >>Uh it's an honor to have you on as a chief architect at Red Hat on hybrid cloud. It is the hottest area in the market right now. The biggest story we were back in person. That's the biggest story here. The second biggest story, that's the most important story is hybrid cloud. And what does it mean for multi cloud, this is a key trend. You just gave a talk here. What's your take on it? You >>know, I, I like to summarize hybrid cloud as the answer to. It's really the summarization of yes please more of everything, which is, we don't have one of anything. Nobody has got any kind of real footprint is single cloud. They're not single framework, they're not single language, they're not single application server, they're not single container platform, they're not single VM technology. And so, um, and then, you know, looking around here in this, uh, partner space where eight years into kubernetes and there is an enormous ecosystem of tools, technologies, capabilities, add ons, plug ins components that make our applications better. Um the modern application landscape is so huge that I think that's what hybrid really is is it's we've got all these places to run stuff more than ever and we've got all this stuff to run more than ever and it doesn't slow down. So how do we bring sanity to that? How do we understand it? Bring it together and companies has been a big part of that, like it unlocked some of that. What's the next step? >>Yeah, that's a great, great commentary. I want to take into the kubernetes piece but you know, as we've been reporting the digital transformation at all time, high speed is the number one request. People want to go faster, not just speeds and feeds, but like ship code fast to build apps faster. Make it all run faster and secure. Okay, check, get that. Look what we were 15, 15 years ago, 10 years ago, five years ago, 2016. The first coupe con in Seattle we were there for small events kubernetes, we gotta sell it, figure it out. Right convince people >>that it's a it's worth >>it. Yeah. So what's your take on that? Well, I mean, it's mature, it's kind of de facto standard at this point. What's missing. Where is it? >>So I think Kubernetes has succeeded at the core mission which is helping us stop worrying about all the problems that we spent endless amounts of time arguing about, how do I deploy software, How do I roll it out? But in the meantime we've added more types of software. You know, the rise of ai ml um you know, the whole the whole ecosystem around training software models like what is a what is an Ai model? Is it look like an application, does it look like a job? It's part batch, part service. Um It's spread out to the edge. We've added mobile devices. The explosion in mobile computing over the last 10 years has co evolved. And so kubernetes succeeded at that kind of set a floor for what everybody thought was an application. And in the meantime we've added all these other parts of the application. >>It's funny, you know, David Anthony, we're talking about what's to minimum and networks at red hat will be on later. Back in the first two cubicles were like, you know, this is like a TCP I P moment, the Os I model that was a killer part of the stack. Now it was all standardized below TCP I. P. Company feels like a similar kind of construct where it's unifying, is creating some enablement, It's enabling some innovation and it kind of brought everyone together at the same time everyone realized that that's real, >>the whole >>cloud native is real. And now we're in an era now where people are talking about doing things that are completely different. You mentioned as a batch job house ai new software paradigm development paradigms, not to suffer during the lifecycle, but just like software development in general is impacted. >>Absolutely. And you know, the components like, you know, we spent a lot of time talking about how to test and build application, but those are things that we all kind of internalized now we we have seen the processes is critical because it's going to be in lots of places, people are looking to standardize. But sometimes the new technology comes up alongside the side, the thing we're trying to standardize, we're like, well let's just use the new technology instead function as a service is kind of uh it came up, you know, kubernetes group K Native. And then you see, you know, the proliferation of functions as a service choices, what do people use? So there's a lot of choice and we're all building on those common layers, but everybody kind of has their own opinions, everybody's doing something subtly different. >>Let me ask you your opinion on on more under the Hood kind of complexity challenge. There's general consensus in the industry that does a lot of complexity. Okay, you don't mean debate that, but that's in a way, a good thing in the sense if you solve that, that's where innovation comes in. So the goal is to solve complexity, abstract out of the heavy lifting under heavy living in Sandy Jackson. And I would say, or abstract away complexity make things easier to use >>Well and an open source and this ecosystem is an amazing um it's one of the most effective methods we've ever found for trying every possible solution and keeping the five or six most successful and that's a little bit like developers, developers flow downhill, developers are going to do, it's easy if it's easier to put a credit card in and go to the public cloud, you're gonna do it if you can take control away from the teams at your organization that are there to protect you, but maybe aren't as responsive as you like. People will, people will go around those. And so I think a little bit of what we're trying to do is what are the commonalities that we could pick out of this ecosystem that everybody agrees on and make those the downhill path that people follow, not putting a credit card into a cloud, but offering a way for you not to think about what clouds are on until you need to write, because you want to go to the fridge is a developer, you wanna go the fridge, pull out your favorite brand of soda, that favorite band Isoda might have an AWS label also >>talk about the open shift and the Kubernetes relationship, you guys push the boundaries. Um Den is being controlled playing and nodes, these are things that you talked about in your talk, talk about because you guys made some good bets on open shift, we've been covering that, how's that playing out now? It's a relationship now >>is interesting coming into kubernetes, we came in from the platform as a service angle, right, Platform as a service was the first iteration of trying to make the lowest cost path for developers to flow to business value um and so we added things on top of kubernetes, we knew that we were going to complex, so we built in a little bit um in our structure and our way of thinking about cube that it was never going to be just that basic bare bones package that you're gonna have to make choices for people that made sense. Ah obviously as the ecosystems grown, we've tried to grow with it, we've tried to be a layer above kubernetes, we've tried to be a layer in between kubernetes, we've tried to be a layer underneath kubernetes and all of these are valid places to be. Um I think that next step is we're all kind of asking, you know, we've got all this stuff, are there any ways that we can be more efficient? So I like to think about practical benefits, what is a practical benefit That a little bit of opinion nation could bring to this ecosystem and I think it's around applications, it's being application centric, it's what is a team, 90% of the time need to be successful, they need a way to get their code out, they need to get it to the places that they wanted to be, and that place is everywhere. It's not one cloud or on premises or a data center, it's the edge, it's running as a lambda. It's running inside devices that might be being designed in this very room today. >>It's interesting. You know, you're an architect, but also the computer science industry is the people who were trained in the area are learning. It's pretty fascinating and almost intoxicating right now in this this market because you have an operating system, dynamic systems kind of programming model with distributed cloud, edge on fire, that's only gonna get more complicated with 5G and high density data applications. Um and then you've got this changing modal mode of operations were programming with bots and Ai and machine learning to new things, but it's kind of the same distributed computing paradigm. Yeah. What's your reaction to that? >>Well, and it's it's interesting. I was kind of described like layers. We've gone from Lenox replaced proprietary UNIX or mainframe to virtualization, which, and then we had a lot of Lennox, we had some windows too. And then we moved to public cloud and private cloud. We brought config management and moved to kubernetes, um we still got that. Os at the heart of what we do. We've got, uh application libraries and we've shared services and common services. I think it's interesting like to learn from Lennox's lesson, which is we want to build an open expansive ecosystem, You're kind of like kind of like what's going on. We want to pick enough opinion nation that it just works because I think just works is what, let's be honest, like we could come up with all the great theories of what the right way computers should be done, but it's gonna be what's easy, what gets people help them get their jobs done, trying to time to take that from where people are today on cube in cloud, on multiple clouds, give them just a little bit more consolidation. And I think it's a trick people or convince people by showing them how much easier it could be. >>You know, what's interesting around um, what you guys have done a red hat is that you guys have real customers are demanding, you have enterprise customers. So you have your eye on the front edge of the, of the bleeding edge, making things easier. And I think that's good enough is a good angle, but let's, let's face it, people are just lifting and shifting to the cloud now. They haven't yet re factored and re factoring is a concept of taking what you're doing in the cloud of taking advantage of new services to change the operating dynamic and value proposition of say the application. So the smart money is all going there, seeing the funding come into applications that are leveraging the new platform? Re platform and then re factoring what's your take on that because you got the edge, you have other things happening. >>There are so many more types of applications today. And it's interesting because almost all of them start with real practical problems that enterprises or growing tech companies or companies that aren't tech companies but have a very strong tech component. Right? That's the biggest transformation the last 15 years is that you can be a tech company without ever calling yourself a tech company because you have a website and you have an upset and your entire business model flows like that. So there is, I think pragmatically people are, they're okay with their footprint where it is. They're looking to consolidate their very interested in taking advantage of the scale that modern cloud offers them and they're trying to figure out how to bring all the advantages that they have in these modern technologies to these new footprints and these new form factors that they're trying to fit into, whether that's an application running on the edge next to their load bouncer in a gateway, in telco five Gs happening right now. Red hat's been really heavily involved in a telco ecosystem and it's kubernetes through and through its building on those kinds of principles. What are the concepts that help make a hybrid application, an application that spans the data flowing from a device back to the cloud, out to a Gateway processed by a big data system in a private region, someplace where computers cheap can't >>be asylum? No, absolutely not has to be distributed non siloed based >>and how do we do that and keep security? How do we help you track where your data is and who's talking to whom? Um there's a lot of, there's a lot of people here today who are helping people connect. I think that next step that contact connectivity, the knowing who's talking and how they're connecting, that'll be a fundamental part of what emerges as >>that's why I think the observe ability to me is the data is really about a data funding a new data sector of the market that's going to be addressable. I think data address ability is critical. Clayton really appreciate you coming on. And giving a perspective an expert in the field. I gotta ask you, you know, I gotta say from a personal standpoint how open source has truly been a real enabler. You look at how fast new things could come in and be adopted and vetted and things get kicked around people try stuff that fails, but it's they they build on each other. Right? So a I for example, it's just a great example of look at what machine learning and AI is going on, how fast that's been adopted. Absolutely. I don't think that would be done in open source. I have to ask you guys at red hat as you continue your mission and with IBM with that partnership, how do you see people participating with you guys? You're here, you're part of the ecosystem, big player, how you guys continue to work with the community? Take a minute to share what you're working on. >>So uh first off, it's impossible to get anything done I think in this ecosystem without being open first. Um and that's something the red at and IBM are both committed to. A lot of what I try to do is I try to map from the very complex problems that people bring to us because every problem in applications is complex at some later and you've got to have the expertise but there's so much expertise. So you got to be able to blend the experts in a particular technology, the experts in a particular problem domain like the folks who consult or contract or helped design some of these architectures or have that experience at large companies and then move on to advise others and how to proceed. And then you have to be able to take those lessons put them in technology and the technology has to go back and take that feedback. I would say my primary goal is to come to these sorts of events and to share what everyone is facing because if we as a group aren't all working at some level, there won't be the ability of those organizations to react because none of us know the whole stack, none of us know the whole set of details >>And this text changing too. I mean you got to get a reference to a side while it's more than 80s metaphor. But you know, but that changed the game on proprietary and that was like >>getting it allows us to think and to separate. You know, you want to have nice thin layers that the world on top doesn't worry about below except when you need to and below program you can make things more efficient and public cloud, open source kubernetes and the proliferation of applications on top That's happening today. I >>mean Palmer gets used to talk about the hardened top when he was the VM ware Ceo Back in 2010. Remember him saying that he says she predicted >>the whole, we >>call it the mainframe in the cloud at the time because it was a funny thing to say, but it was really a computer. I mean essentially distributed nature of the cloud. It happened. Absolutely. Clayton, thanks for coming on the Cuban sharing your insights appreciate. It was a pleasure. Thank you. Right click here on the Cuban john furry. You're here live in L A for coupon cloud native in person. It's a hybrid event was streaming Also going to the cube platform as well. Check us out there all the interviews. Three days of coverage, we'll be right back Yeah. Mm mm mm I have

(soft music) >> There are many constants in the storage business, relentlessly declining cost per bit, innovations that perpetually battled the laws of physics, a seemingly endless flow of venture capital, despite the intense competition. And there's one other constant in the storage business, Eric Hertzog, and he joins us today in this CUBE video exclusive to talk about IBM's recent storage announcements. Eric, welcome back to theCUBE. >> Great, Dave, thanks very much, we love being on theCUBE and you guys do a great job of informing the industry about what's going on in storage and IT in general. >> Well, thank you for that. >> Great job. >> We're going to cover a lot of ground today. IBM Storage, made a number of announcements the past month around data resilience, a new as-a-service model, which a lot of folks are doing in the industry, you've made performance enhancements. Can you give us the top line summary of the hard news, Eric? >> Sure, the top line summary is of course cyber security is on top of mind for everybody in the recent Fortune 500 list that came out, you probably saw, there was a survey of CEOs of Fortune 500 companies, they named cybersecurity as their number one concern, not war, not pandemic, but cybersecurity. So we've got an announcement around data resilience and cyber resiliency built on our FlashSystem family with our new offering, Safeguarded Copy. And the second thing is the move to a new method of storage consumption. Storage-as-a-Service, a pay-as-you-go model, cloud-like the way people buy cloud storage, that's what you can do now from IBM Storage with our Storage-as-a-Service. Those are the key, two takeaways, Dave. >> Yeah and I want to stay on the trends that we're seeing in cyber for a moment, the work from home pivot in the hybrid work approach has really created a new exposures, people aren't as secure outside of the walled garden of the offices and we've seen a dramatic escalation in the adversaries capabilities and techniques, another least of which is island hopping, in other words, putting code fragments in the digital supply chain, they reform once they're inside the company and it's almost like this organic creepy thing that occurs. They're also living as you know, stealthily for many, many months, sometimes years, exfiltrating data, and then just waiting and then when companies respond, the incidents response trigger a ransomware incident. So they escalate the cyber crime and it's just a really, really bad situation for victims. What are you seeing in that regard and the trends? >> Well, one of the key things we see as everyone is very concerned about cybersecurity. The Biden administration has issued (indistinct) not only to the government sector, but to the private sector, cyber security is a big issue. Other governments across the world have done the same thing. So at IBM Storage, what we see is taking a comprehensive view. Many people think that cybersecurity is moat with the alligators, the castle wall and then of course the sheriff of Nottingham to catch the bad guys. And we know the sheriff of Nottingham doesn't do a good job of catching Robin Hood. So it takes a while as you just pointed out, sitting there for months or even longer. So one of the key things you need to do in an overall cybersecurity strategy is don't forget storage. Now our announcement around Safeguarded Copy is very much about rapid recovery after an attack for malware or ransomware. We have a much broader set of cyber security technology inside of IBM Storage. For example, with our FlashSystem family, we can encrypt data at rest with no performance penalty. So if someone steals that data, guess what? It's encrypted. We can do anomalous pattern detection with our backup product, Spectrum Protect Plus, why would you care? Well, if theCUBE's backup was taking two hours on particular datasets and all of a sudden it was taking four hours, Hmm maybe someone is encrypting those backup data sets. And so we notify. So what we believe at IBM is that an overarching cybersecurity strategy has to keep the bad guys out, threat detection, anomalous pattern behavior on the network, on the servers, on the storage and all of that, chasing the bad guy down once they breach the wall, 'cause that does happen, but if you don't have cyber and data resilience built into your storage technology, you are leaving a gap that the bad guys can explain, whether that be the malware ransomware guys oh by the way, Dave, there still is internal IT theft that there was a case about 10 years ago now where 10 IT guys stole $175 million. I kid you not, $175 million from a bunch of large banks across the country, and that was an internal IT theft. So between the internal IT issues that could approach you malware and ransomware, a comprehensive cybersecurity strategy, must include storage. >> So I want to ask you about come back to Safeguarded Copy and you mentioned some features and capabilities, encrypting data at rest, your anomalous pattern recognition inferring, you're taking a holistic approach, but of course you've got a storage centricity, what's different about your cyber solution? What's your unique value probability to your (indistinct) . >> Well, when you look at Safeguarded Copy, what it does is it creates immutable copies that are logically air-gapped, but logically air-gapped locally. So what that means is if you have a malware or ransomware attack and you need to do a recovery, whether it be a surgical recovery or a full-on recovery, because they attacked everything, then we can do recovery in a couple hours versus a couple of days or a couple of weeks. Now, in addition to the logical local air-gapping with Safeguarded Copy, you also could do remote logical air-gapping by snapping out to the cloud, which we also have on our FlashSystem products and you also of course, could take our FlashSystem products and back up to tape, giving you a physical air gap. In short, we give our customers three different ways to help with malware and ransomware. >> Let me ask you- >> Are air-gapped locally. >> Yeah, please continue, I'm sorry. >> So our air-gapping locally for rapid recovery, air-gapping remotely, which again, then puts it on the cloud provider network, so hopefully they can't breach that. And then clearly a physical air gap going out to tape all three and on the mainframe, we have Safeguarded Copy already, Dave and several of our mainframe customers actually do two of those things, they'll do Safeguarded Copy or rapid recovery locally, but they'll also take that Safeguarded Copy and either put it out to tape or put it out to a cloud provider with a remote logical air-gap using a snapshot. >> I want to ask you a question about management 'cause when you ask CSOs, what's your number one challenge, they'll say lack of talent, We've got all these tools and all this lack of skills to really do all this stuff. Can't hire people fast enough and they don't have the skills. So when you think about it, and so what you do is you bring a lot of automation into the orchestration and management. My question is this, when you set up air gaps, do you recommend, or what do you see in terms of not, of logically and physically not only physically separating the data, but also the management and orchestration and automation does that have to be logically air-gapped as well or can you use the same management system? What's best practice there? >> Ah, so what we do is we work with our copy management software, which will manage regular copies as well, but Safeguarded Copies are immutable. You can't write to them, you can't get rid of them and they're logically air-gapped from the local hosts. So the hosts, for the Safeguarded Copies that immutable copy, you just made, the hosts don't even know that it's there. So you manage that with our copy management software, which by the way, we'll manage regular snapshots and replicas as well, but what that allows you to do is allows you to automate, for example, you can automate recovery across multiple FlashSystem arrays, the copy services manager will allow you to set different parameters for different Safeguarded Copies. So a certain Safeguarded Copy, you could say, make me a copy every four hours. And then on another volume on a different data set, you could say, make me a copy every 12 hours. Once you set all that stuff update, it's completely automated, completely automated. >> So, I want to come back to something you mentioned about anomalous pattern recognition and how you help with threat detection. So a couple of a couple of quick multi-part question here. First of all, the backup corpus is an obvious target. So that's an area that you have to protect. And so can, and you're saying, you've used the example if your backups taking too long, but so how do you do that? What's the technology behind that? And then can you go beyond, should you go beyond just the backup corpus, with primary data or copies on-prem, et cetera? Two part questions. >> So when we look at it, the anomalous pattern detection is part of our backup software, say Spectrum Protect and what it does it uses AI-based technology, it recognizes a pattern. So it knows that the backup dataset for the queue takes two hours and it recognizes that, and it sees that as the normal state of events. So if all of a sudden that backup that theCUBE was doing used to take two hours and starts taking four, what it does is that's an anomalous pattern, it's not a normal pattern. It'll send a note to the backup admin, the storage admin, whoever you designate it to and say the backup data set for theCUBE that used to take two hours, it's taken four hours, you probably ought to check that. So when we view cyber resiliency from a storage perspective, it's broad. We just talked about anomalous pattern detection in Spectrum Protect. We were talking most of the conversation about our Safeguarded Copy, which is available on the mainframe for several years and is now available on FlashSystems, making immutable local air-gap copies, that can be rapidly recovered and are immutable and can help you recover for a malware or ransomware attack. Our data at rest encryption happens to be with no performance penalty. So when you look at it, you need to create an overarching strategy for cybersecurity and then when you look at your storage estate, you need to look at your secondary storage, backup, replicas, snaps, archive, and have a strategy there to protect that and then you need a strategy to protect your primary storage, which would be things like Safeguarded Copy and encryption. So then you put it all together and in fact, Dave, one of the things we offer is a free cyber resilience assessment. It's not only for IBM Storage, but it happens to be a cyber resilience assessment that conforms to the NIST Framework and it's heterogeneous. So if you're a big company, you've got IBM EMC and HP Storage, guess what? It's all about the data sets not about the storage. So we say, you said these 10 data sets are critical, why are you not encrypting them? These data sets are XYZ, why are you not air-gapping them? So we come up based on the NIST Framework, a set of recommendations that are not IBM specific, but they are storage specific. Here's how you make your storage more resilient, both your secondary storage and your primary storage. That's how we see the big thing and Safeguarded Copy of course fits in on the primary storage side, A on the mainframe, which we've had for several years now and B in the Linux world, the Unix world and the Windows Server world on our FlashSystem portfolio with the announcement we did on July 20th. >> Great, thank you for painting that picture. Eric, are you seeing any use case patterns emerge in this space? >> Well, we see a couple of things. First of all, is A most resellers and most end-users, don't see storage an overarching part of the cybersecurity strategy, and that's starting to change. Second thing we're seeing is more and more storage companies are trying to get into this bailiwick of offering cyber and data resilience. The value IBM brings of course is much longer experience to that and we even integrate with other products. So for example, IBM offers a product called QRadar from the security divisions not a storage product, a security product, and it helps you with early data breach recognition. So it looks at servers, network access, it looks at the storage and it actually integrates now with our Safeguarded Copy. So, part of the value that we bring is this overarching strategy of a comprehensive data and cyber resilience across our whole portfolio, including Safeguarded Copy our July 20th announcement. But also integration beyond storage now with our QRadar product from IBM security division. And there will be future announcements coming in both Q4 and Q1 of additional integration with other security technologies, so you can see how storage can be a vital COD in the corporate cybersecurity strategy. >> Got it, thank you. Let's pivot to the, as-a-service it's, cloud obviously is brought in that as-a-service. Now, it seems like everybody has one now. You guys have announced obviously HPE, Dell, Lenovo, Cisco, Pure, everybody's gotten out there as-a-service model, what do we need to know about your as-a-service solution and why is it different from the others? >> Sure. Well, one of the big differences is we actually go on actual storage, not effective. So when you look at effective storage, which most of them do that includes creating the (indistinct) data sets and other things, so you're basically paying for that. Second thing we do is we have a bigger margin. So for example, if theCUBE says we want SLA-3 and we sell it by the SLA, Dave, SLA-1, two and three. So let's say theCUBE needs SLA-3 and the minimum capacity is a 100 terabytes, but let's say you think you need 300 terabytes. No problem. You also have a variable. One of the key differences is unlike many of our competitors, the rate for the base and the rate for the variable are identical. Several of our competitors, when you're in the base, you pay a certain amount, when you go into the variable, they charge you a premium. The other key differentiator is around data reduction. Some of our competitors and all storage companies have data reduction technology. Block-level D do thin provisioning, compression, we all offer those features. The difference is with IBM's pay-as-you-grow, Storage-as-a-Service model, if you have certain data sets that are not very deducible, not very compressible, we absorbed that with our competitors, most of them, if the dataset is not easily deducible, compressible, and they don't see the value, they actually charge you a premium for that. So that is a huge difference. And then the last big difference is our a 100% availability guarantee. We have that on our FlashSystem product line, we're the only one offering 100% availability guarantee. We also against many of the competitors offer a better base nines, as you know, availability characteristics. We offer six nines of availability, which is five minutes and 26 seconds of downtime and a 100% availability of offering. Some of our competitors only offer four nines of availability and if you want five or six, they charge you extra. We give you six nines base in which has only five minutes and change of downtime in a year. So those are the key difference between us and the other as-a-service models out there. >> So, the basic concept I think, is if you commit to more and buy more, you pay less per. I mean, that's the basic philosophy of these things, right? So, if- >> Yes. >> I commit to you X, let's say, I want to just sort of start small and I commit to you to X and great. I'm in now in, maybe I sign up for a multi-year term, I commit this much, whatever, a 100 terabytes or whatever the minimum is. And then I can say, Hey, you know what? This is working for me. The CFO likes it and the IT guys can provision more seamlessly, we got our chargeback or showback model goes, I want to now make a bigger commitment and I can, and I want to sort of, can I break my three-year term and come back and then renegotiate, kind of like reserved instances, maybe bigger and pay less? How do you approach that? >> Well, what you do is we do a couple of things. First of all, you could always add additional capacity, and you just call up. We assign a technical account manager to every account. So in addition to what you get from the regular sales team and what you get from our value business partners, by the way, we did factor in the business partners, Dave, into this, so business partners will have a great pay-as-you-go Storage-as-a-Service solution, that includes partners and their ability to leverage. In fact, several of our partners that do have both MSP and MHP businesses are working right now to leverage our Storage-as-a-Service, and then add on their own value with their own MSP and MHP capability. >> And they can white label that? Is that right or? >> Well, you'd still have Storage-as-a-Service from IBM. They would resell that to theCUBE and then they'd add in their own MHP or MSP. >> Got it. >> That said partners interested in doing a white label, we would certainly entertain that capability. >> Got it. I interrupted you, carry on please. >> Yeah, you can go ahead and add more capacity, not a problem. You also can change the SLA. So theCUBE, one of the leading an industry analyst firms, you bought every analyst firm in the world, and you're using IBM Storage-as-a-Service, pay-as-you-go cloud-like model. So what you do is you call up the technical account manager and say, Eric, we bought all these other companies they're using on-prem storage, we'd like to move to Storage-as-a-Service for all the companies we acquire. We can do that, so that would up your capacity. And then you could say, now we've been at SLA-2, but because we're adding all these new applications of workloads from our acquired companies, we want some of it to be at SLA-1. So we can have some of your workloads on SLA-2, others on SLA-1, you could switch everything to SLA-1, and you just call your technical account manager and they'll make that happen for you or your business partner, obviously, if you bought through the channel. >> I get it, the hard question is what if all those other companies theCUBE acquired are also IBM Storage-as-a-Service customers? Can I, what's that discussion like? Hey, can I consolidate those and get a better deal? >> Yeah, there are all Storage-as-a-Service customers and Dave I love that thought, we would just figure out a way to consolidate the agreement. The agreements are one through five years. What I think also that's very unique is let's say for whatever reason, and we all love finance people. Let's say the IT guys have called the finance and say, we did a one-year contract, we now like to do a three-year contract. The one year is coming up and guess what? Finance's delayed for whatever reason, the PO doesn't go through. So the ITI calls up the technical account manager, we love your service, it's delayed in finance. We will let them stay on their Storage-as-a-Service, even though they don't have a contract. Now, of course they've told us they want to do one, but if they exceed the contract by a quarter or two, because they can't get the finance guys are messing with the IT guys, that's fine. What the key differentiators? Exactly the same price. Several of our competitors will also extend without a contract, but until you do a contract, they charge you a premium, we do not, whatever, if you're an SLA-3, you're SLA-3, we'll extend you and no big deal. And then you do your contract, when the finance guys get their act together and you're ready to go. So that is something we can do and we'll do on a continual basis. >> Last question. Let's go way out. So, we're not doing any time, near-term forecasts, I'm trying to understand how popular you think as-a-service is going to be. I mean, if you think about the end of the decade, let's think industry total, IBM specific, how popular do you think as-a-service models will be? Do you think it will be the majority of the transacted business or it's kind of more of a, just one of many? >> So I think there will be many, some people will still have bare metal on-premises. Some people will still do virtualization on-premises or in a hybrid cloud configuration. What I do think though is Storage-as-a-Service will be over 50% by the end. Remember, we're sitting at 2021. So we're talking now 2029. >> Right. >> So I think Storage-as-a-Service will be over 50%. I think most of that Storage-as-a-Service will be in a hybrid cloud model. I think the days of a 100% cloud, which is the way it started. I think a lot of people realize that a 100% cloud actually is more expensive than a hybrid cloud or fully on-prem. I was at a major university in New York, they are in the healthcare space and I know their CIO from one of my past lives. I was talking to him, they did a full on analysis of all the cloud providers going a 100% cloud. And their analysis showed that a 100% cloud, particularly for highly transactional workloads was 50% more expensive than buying it, paying the maintenance and paying their employees. So we did an all in view. So what I think it's going to be is Storage-as-a-Service will be over 50%. I think most of that Storage-as-a-Service will be in a hybrid cloud configuration with storage on-prem or in a colo, like what our IBM pay-as-you-go service will do and then it will be accessed and available through a hybrid cloud configuration with IBM Cloud, Google, Amazon as or whoever the cloud provider is. So I do think that you're looking at over 50% of the storage being as-a-service, but I do think the bulk of that as-a-service will be as-a-service through someone like IBM or our competitors and then part of it will be from the cloud providers. But I do think you're going to see a mix because right now the expense of going a 100% cloud cloud storage is dramatically understated and when someone does an analysis like that major university in New York did, they had a guy from finance, help them do the analysis and it was 50% more expensive than doing on-premise either on-prem or on-prem as-a-service, both were way cheaper. >> But you own the asset, right? >> Yes. >> As-a-service model. >> We, right, we own the asset. >> And I would bet, >> I would bet that over the lifetime value of the spend and it as-a-service model, just like the cloud, if you do this with IBM or any of your competitors, I would bet that overall you're going to spend more just like you've seen in the cloud, but you get the benefit is the flexibility that you get. >> Yeah, yeah. If you compare it to the, so obviously the number one model would be to buy. That's probably going to be the least expensive. >> Right. >> But it's also the least flexible. Then you also have leasing, more flexibility, but leasing usually is more expensive. Just like when you lease your car, if you add up all the lease payments and then you, at the end, pay that balloon payment to buy, it's cheaper to buy the car up front than it is to lease a car. Same thing with any IT asset, now storage network servers, all are available on leasing, the net is at the bottom line, that's more than buying it upfront. And then Storage-as-a-Service will also be more expensive than buying it, my friend, but ultimate capability, altering SLAs, adding new capacity, being able to handle an app very quickly. We can provision the storage, as you mentioned, the IT guys can easily provision. We provision, the storage in 10 minutes, if you bought from IBM Storage or any competitor you bought and you need more storage, A you got to put a PO through your system and if you're not theCUBE, but you're a giant global Fortune 500, sometimes it takes weeks to get the PO done. Then the PO has to go to the business partner, the business partner has got to give a PO to the distributor and a PO to IBM. So it can take you weeks to actually get the additional storage that you need. With Storage-as-a-Service from IBM with our pay-as-you-go, cloud-like model, all you have to do is provision and you're done. And by the way, we provide a 50% overage for free. So if they end up needing more storage, that 50% is actually sitting on-prem already and if they get to 75% utilization of the total amount of storage, we then call them up, the technical account manager would call them up and their business partner and say, Dave, do you know that you guys are at 75% full? We'd like to come add some additional storage to get you back down to a 50% margin. And by the way, most of our competitors only do a 25% margin. So again, another differentiator for IBM Storage-as-a-Service. >> What about, I said, last question, but I have another question. What about day one? Like how long does it take, if I want to start fresh with as-a-service? >> Get it. >> How long does it take to get up and running? >> Basically you put the PO through, whatever it takes on your side or through your business partner, we then we'll sign the technical account manager, will call you up because you need to tell us, do you want to, in a colo facility that you're working with or do you want to put it on on-prem? And then once we do that, we just schedule a time for your IT guys do the install. So, probably two weeks. >> Yeah. >> It all depends because you've got to call back and say, Eric, we'd like it at our colo partner, our colo partners, ABC, we got to call ABC and then get back to you or on-prem , we're going to have guys in the office, a good day when it's not going to be too busy. Could you come two weeks from Thursday? Which now would be three weeks for sake of argument. But that would be, we interface with the customer, with the technical account manager to do it on your schedule on your time, whether you do it in your own facility or use a colo provider. >> Yeah, but once you tell, once I tell you, once we get through all that stuff, it's two weeks from when that's all agreed. >> Yeah. >> It's like the Xerox copier salesman, (Dave chuckles) Where are you going to put it? Once you decide where you're going to put it, then it's a couple of weeks. It's not a month or two months or yeah. >> Yeah, it's not. And we need additional capacity, remember there's a 50% margin sitting there. So if you need to go into the variable and use it, and when we hit a 75%, we actually track it with our storage insights pro. So we'll call you up and say, Dave, you're at 76%. We'd like to add more storage to give you better margin of extra storage and you would say, great, when can we do it? So, yeah, we're proactive about that to make sure that you stay at that 50% margin. Again, our competitors, all do only have 25% margin. So we're giving you that better margin, a larger margin in case you really have a high capacity demand for that quarter and we proactively will call you up, if we think you need more based on monitoring your storage usage. >> Great. Eric got to go, thank you so much for taking us through that great detail, I really appreciate it. Always good to see you. >> Great, thanks Dave, really appreciate it. >> Alright, thank you for watching this CUBE conversation, this is Dave Vellante and we'll see you next time. (soft music)

>>Mhm >>Hello and welcome to today's session of the 2021 AWS Global Public Sector Partner Awards And I'm delighted to introduce our next guests. They are chris Saks Ceo of think stack and Michael Matthews President Ceo at mutual Credit Union. I'm your host for the cube Natalie. Ehrlich of course. And we're going to highlight the most impactful nonprofit partner award. Thank you gentlemen for joining the program. >>Thank you so much for having us. >>Terrific. Well delighted for you to be here. And Michael, I'd love to start with you. How did you figure out that cloud technology was critical to the future of mutual credit union? >>It's kind of by chance, Natalie, we're sitting down, we're looking at uh, racks of equipment in our I. T. Room and trying to keep everything up to date, um software updated, become a full time job and all of my staff and sat around and it come to a point where we were spending more time keeping upgrades, keeping servers upgraded. And we asked we reached out the things that they were a network provider at the time and we said, hey, whatever, what are our options? And they came back with several options and one of them was a W. S. And we explored it and uh we've not looked back. >>Terrific. Well, can you explain in further detail how you identified some of the gaps and what stood out to you about think stack, how this uh collaboration happened specifically? >>Well, some of the major gaps that you have is, you know, we're in Vicksburg Mississippi and I would say it's probably not the I. T mecca of the United States and staffing. What was a huge requirement for us if you're gonna make a move such as this, you've got to have the staffing and then along with the staffing is okay if you go out and we hire all these individuals to help help with this journey, are they going to become bored and you know, if we uh personally, if if I asked think stack, they would say, oh yes, don't do that hire us, but that's their job there, there there are parker vendor and so we went out, we asked other vendors that we use and what are the chances of us doing this and it was slim to none. And this type of technology you want, somebody who you can call and and all honesty, I want to be able to call chris and say chris, I'm having a problem versus, you know, one of my team called me and say we're having a problem, I'd rather call it and I love the vendor relationship. It has worked out well. Our major gaps in staffing though, Natalie >>what about staffing? >>That was our major gap. >>Oh God, it got it. Well, chris let's move on to you now. I'd love it if you could explain, you know, in some detail for our audience about the methodology of your company and also how you help your clients visualize their transformation processes. >>Yeah, for sure. Thanks Natalie. So we work with credit unions around the country and many of them are facing similar challenges to Michael at mutual. And in addition to staffing, they're often challenged with just the uncertain future of technology and that can include things like hurricanes, wildfires, various different disasters, pandemics and having to work remotely. But it also includes all of the opportunities that exist in transformative technologies for credit union. They need to keep pace with organizations like Robin Hood and stash and some of these other organizations that are providing cutting edge mobile apps and technology to their customers. And so how do you as an organization generally, that's a small nonprofit organization. How do you build the technology that will allow you to have a foundation to respond and react to whatever the world happens to throw actually, be that an opportunity to take advantage of for growth or some kind of risk from a cyber attack to a natural disaster. So what we try to do with our clients is take a very human centered approach first. And the idea behind that is to not walk in the door and talk about all the wonderful benefits of AWS or any other particular technology, but rather look at What do you expect. So if you take Michael, for example, you know, sitting down with him and trying to look out 10 years, what do you expect the industry to look like? What do you expect your organization to look like in? What goals do you have as a credit? You need to take advantage of those opportunities and to mitigate those risks. Once you identify those business needs, we can start looking at the humans that are involved in that experience. And so that would obviously be the employees and partners and vendors that support and make up the team at the credit union. And then obviously it's their current members and then any other members that they want to attract. And so you have to look at both sides of this. How how do you work securely efficiently? Um, as an employee on the flip side, how do you serve your members as well as you can serve them with cutting edge technology with technology that's always up and available. And then obviously with, with utmost security. So as we identify and build that picture, uh, we we generally do that with stick figures Natalie so we try to go in and and you know take um different personas and we use journey mapping and we use strategic foresight and various other exercise that help us uh literally paint a picture. Um and then from there we kind of back into that and say okay in order for you to accomplish these things into Have the organization that you want to have the next 10 years, what is your technology foundation and footprint need to look like to support that. And that's where we start to then back into that design which typically would include some type of public cloud services like AWS among other technologies from a cyber security perspective to build out that foundation and then allow them To respond and react to whatever the world throws at him over the next 10 years. >>Terrific. Well Michael would love to get your insight. How did you experience that human centered design focus, that think stack uh you know, is known for >>I think that's what says things take apart. You know, we there's numerous vendors you can go direct, there's there's plenty of software, there's plenty of technology out there you can buy. And as a credit union we can go out, we can just about get anything we wanted. But when we have a problem that we're trying to solve, it's not about that, it's about sitting down with chris his team and saying chris this this is a problem. We recently had one in password management, but we just this is a problem we're having. How do we solve this problem? And so the focus is not about trying to sell you another software. The focus is about solving the problem and having your staff and your team work more efficiently and effectively at their task. At the end of the day, you know, we're not arty people were in the financial service business. We rely on the solutions that we have to to help us do our jobs better and serve our members more effectively. >>Yeah, well, chris uh, you know, from your perspective, obviously human centered designed a really big component of your business, but what other key feature set your business apart from the competitive landscape? >>So I think the human centered design bleeds into another area that we really pride ourselves on, which is which is education and what I will call plain talk. So again, as Michael said, these organizations are our financial services, they're not technology experts, so you need to be able to communicate to those teams, those boards of directors, executive teams in a way that they can understand, and it can be uh somewhat difficult to talk about complex technical problems, um but when you boil it down back to that experience level, or you boil it down to a picture, it becomes a little easier to talk about. And what we want to be able to do as a partner is make sure our clients have confidence in the services or the products that they're purchasing, that they understand. How is this investment going to impact our credit union? How is this going to impact our members? And is this the right investment? It investments are, are significant. So we need to make sure that both parties understand the expectations of that investment and why they're doing that. So we take a lot of pride in the education and then probably the biggest piece uh and you know, it's one of those things that can be unappreciated, but its cybersecurity building, our infrastructure's with the tools and the processes and and the techniques so that everyone stays secure. I can tell you that there is nothing that would derail a digital transformation of an organization faster than a breach. So it's very important for us to make sure that those organizations, that everything that we do as fun as it is to talk about transformational technology equally as important that everything stays secure as we do it. >>Yeah. Well, excellent point. Certainly cybersecurity going to be a top uh topic for 2021 and beyond. Now, Michael, I'd like to move to you um what were the expected and unexpected business outcomes as a result of this partnership? >>Well, now we we we expected to have issues in the transition, which we really didn't um, I'll be honest with you, we we expected to have failures of servers. We expected stuff not to work because we were told by some of our other vendors that this will not work in a W S. Um and we were very surprised that most everything worked on AWS and it worked even better. Um some of the unexpected. So one of the main drivers of us moving to AWS was, I told you we had were limited on Rackspace I T room is when we want to implement a new service today, everything requires its own server. So everything needs an independent service, virtual server or physical server. We did not know how fast that could be done. So we would send a ticket in uh and we would say, hey, we need a new server here. The specs we're putting on this vendor, this is our time frame and we will get an email back the next morning. The servers ready to go where before? We weren't we didn't have that. That that was not an option. The main delay for new projects was to build up time and we weren't expecting that speech. No longer was that we all we expected that hey, we're not in a rush, but it'll be at least three months. And so now the team has to be ready to go as soon as you send the request in that we need this server is done uh and its speed up, speed up our time from uh, the idea our concept to going live with projects and we weren't that was something we had to get adjusted to. >>Yeah. And following up on that. What were some of the rational as well as the emotional impacts as a result of this collaboration? >>All right too. Two things and I don't know if they meet their, meet your that answer your question directly. But so one item we had in in a call, it's been several weeks back is when is the last time that anyone had to call it? Said, hey, I'm not working. My my can't access the server or I can complete dysfunction. And it's not been that way. We we've seen significantly improved up time, not only externally for our members who are logging in to do home banking or any other, any other feature, but internally for our staff we saw and I think it's just the entire transformation just made our company more resilient. What that was. I was as the metric we were seeing fewer instances of downtime. If we have downtown now, it's a power. We had an ice storm here in Mississippi, which is rare. Uh and we were down for a day. Um and if you lose internet today at any business you're down um The emotional side of I tell you, and it's been several years back on July four, we had a major major failure and our entire network was down and we this is prior to us moving to AWS and I'll just tell you I go home at night, this is the peace of mind that you can't put a dollar value on. I go home at night. And the last thing I'm worried about is my I. T. Network. I'm not worried about up time, I'm not worried about members, you know, going on facebook or any other social media and saying hey we can't we can't access your site what's going on and we don't have that anymore. And you know, I'm sure we could have had it any other way. But I leave that to the process of us moving from an in house holding everything on premise to moving to AWS, not only did it want to improve the results of those servers were able to back up to do different things, but it is to improve the overall working, working the functionality of our network. And I like I said I you can't put a dollar on this peace of mind and that is something I don't think there's any metric out there. You can measure, you can't measure that, but you know me and my team, we see it all the time. So >>Yeah, I agree, a peace of mind is certainly a priceless now Chris Let's move to you if you could outline to our audience some of the solutions that you provide, some of your other clients as well. Just give us a fuller picture of the services that you provide. Let's perhaps talk about, you know, 24/7 socks um services as well as data loss prevention or anything else that you think would be of interest to our audience? >>Yeah, for sure. So so obviously we I like to think of us like we design so we come in and we like to help you design and and figure out what your network needs to look like. That's not only your server and production network but also routing, switching. So Land Win S T Win various other networking projects equally. It's important that you can access the cloud as it is to move to the cloud, help with with productivity suite collaboration tools. Um and then finally, cyber security is a big part of that as well. So we try to come in and and look at all those things on the cybersecurity side. Very similar concept of what we do on the, on the cloud side, which is well design the tools and the infrastructure on the perimeter of the network, the configuration of any cloud environments, um such that they're secure and appropriate for your organization. Uh look at active directory or whatever organizational user management system you have to be using, implement those tools. Um and then as you mentioned, Natalie, we have a 24 x seven socks um with analysts watching that um that are all things that employees watching that board responding and reacting um using our our sin platform. And then we also have a 24 by seven uh network operations center or knocked. Um that is managing both the on site uh tools and network as well as any cloud uh networks that that they may have, keeping them up to date, doing all the routine maintenance, I will say from a cyber security perspective while it's not called the sock, the knock is just as important for cybersecurity as is the knock because we see that many cybersecurity attacks are often just taking advantage of systems that are not kept up to date. So the knock and that preventative maintenance is so important. So we do that for a lot of our clients. Some people pick and choose certain features. Some people use all of our services. >>Yeah. Terrific. Is that what you mean by security that's made to order? >>Yeah, exactly. Um you know, I think that's true of all technology. Um the biggest thing that we can do his look at the systems that you have during that design phase, we not only look at what technology should be should you be using, but also we take an assessment of your current team, What talent does your team have and where can we fill gaps if you have people that are doing security really well or you're doing preventative maintenance or some of these features? Uh Certainly you should keep that in house and we'll try to build services around those individuals that you have so that you're utilizing your talent to the best of your abilities and we're really fitting in um where you need us. >>Yeah. Terrific. Well, um you know, Michael, I'd like to shift to you now. What do you think will be the broader impact, you know, for the credit union industry? If others are not, you know, adopting the same kind of technologies um you know, to secure their cloud strategies. Mhm. >>I think whether credit unions want to or not, they're moving to the cloud. Um Most of our newest vendors are all cloud based. Um And so yes, he's either do it now or do it later. Which one do you want to be? And I do think that you're going to see more and more larger credit unions begin to move and it's scalable. It's more up time. It's easier to back up. A lot of people are hesitant. They don't want to take their information and move it out of town. They try to find a local data center are somewhere secure. And, and we looked at is what's the difference? You know, we, we we don't have latency issues with internet and fiber today. And so what is the difference of movement out of town and move to AWS by moving out of town? I still on the servers. I still leased the space. I still have to go over there. We have to have somebody there at all the time. And I'll be honest with you, I look at AWS as a trusted partner versus trying someone and then, and then it's not working locally and there's a lot of data centers you can, you can move to um I think I think it's going to come to the industry one way or the other. >>Yeah. Well, Terrific. Do you have any insight or you know, perhaps advice for another credit union who will, you know, like to take the next step? But, you know, as you mentioned, maybe a bit hesitant, >>I think doing your homework on it and looking at it as a, as a viable option is the first step. I know when I took it to my board and I talked about this um with chris and several people have so we we we talk about these things like the cloud, like it's this magical space and and our data is out there in Netherland and who knows where our data is. But when you break it down, you say, I have a East Coast data center and I have a West Coast data center. These are physical spaces where my dad is higher is held. Um I think it makes people think about a little differently. And and so when when you're if you're thinking about moving, if your if your in house today and you're thinking about how I'm gonna start outsourcing evaluate the cost, what are your ongoing cost, You know, who's gonna service you, Who's going to provide that service? And we've looked at other vendors over the years and I'll tell you, chris and his team have something unique that I found. Um I found very desirable in our situation is at our size and we're just under $300 million credit union. I don't think we have major projects that are too complicated to chris we're still, we're one of his better customers. I assume, chris me tell you something different in a minute, but we're not just a number, so I wouldn't go into a cube. You know, everybody knows each other. We're both small enough companies to where they're getting a lot bigger than we are now, but they're both small of companies where we're still, we we mean something to them, they care about moving to start versus just checking the box off. And so that's that's been our journey so far. Mhm. >>Yeah. Well, um, so, chris, uh, you know, first I want to know if Michael is one of your better customers, but uh, you know, really what I would I would really like to know is um, you know, what is your like, big sales pitch to? You know, as I mentioned to Michael, just some of those companies that are a little bit hesitant, a little bit on the edge. >>Michael is our best client of course because he's here doing this interview with us. No, um, you know, that that's something for us that are those, those human connections are, are, are so important and we do get very invested with any of the clients that we work with. But, um, in, in terms of the industry, I think Michael started to say at the beginning, which is, you're already there. We hear a lot of times from folks that they, I can't move to the cloud that the examiners or that the regulations do not allow them to be there. And that's, that's not true. Um, so what we're trying to do in partnership with KWS is educate the marketplaces as well as we can. Um, one of the biggest things that the cloud offers is this idea of flexibility and nimbleness and you know, unfortunately, I think Covid taught us that lesson, but there's, there's other lessons out there. I don't want to harp on Covid, I feel like that's all we talk about. Um, but if you look at any opportunity, whether it's a I machine learning, um, you know, Blockchain, pick the next technology, right? The reality is, none of us can really tell you where you're going to be in two years, maybe one year, three years, right? Like can you truly sit down after the past three years and tell me that you with no uncertainty, can tell me where your organization is going to be. And the reality is if you build your own data center right now, you have to make that guess Because you have to build something and designed for something and if you're making that investment, then you're doing that for the next probably 5-7 years. Whereas if you move to amazon you have the flexibility, whether that's scaling your organization up quickly, whether that's moving to the cloud, whether that's leveraging one of these technologies I just mentioned or in some cases even scaling back because things have hit a recession, we don't know what the future holds. But if you're in an environment like AWS, then you have the scalability and the flexibility to be able to move and pivot with that. And if you build your own and you happen to pick the wrong future, then then you could be in a bind and you've created your own limitations because you've decided to build for yourself. And I think that's the biggest thing is you can't build for yourself. You have to be flexible in this environment. That is that is the key. And the organizations that are flexible are the ones that are going to survive and thrive through all this uncertainty. Yeah. >>Well, really excellent point there. I totally agree with you. Wonderful to have you on our program. That was chris Saks Ceo of think stack as well as Michael Matthews, the president and Ceo at Mutual Credit Union. Thank you gentlemen for joining the show. Thanks so much. And that's all for this session of the AWS Global Public Sector Partner Awards. I'm your host Natalie or like thanks for >>watching. Mm.

>>from >>around the globe. It's the cube with digital >>Coverage of IBM think 2021 brought to you by IBM. >>Welcome back to IBM Think 2021 The virtual edition. My name is Dave Volonte and you're watching the cubes continuous coverage of think 21. And right now we're gonna talk about banking in the post isolation economy. I'm very pleased to welcome our next guest. Look at wag lee is the general manager, Global banking financial markets at IBM and john Degnan is the global ceo and vice president and distinguished engineer for banking and financial services. Gentlemen, welcome to the cube. >>Thank you. Yeah >>that's my pleasure. Look at this current economic upheaval. It's quite a bit different from the last one, isn't it? I mean liquidity doesn't seem to be a problem for most pecs these days. I mean if anything they're releasing loan loss reserves that they didn't need. What's from your perspective, what's the state of banking today and hopefully as we exit this pandemic soon. >>So so dave, I think, like you say, it's, you know, it's a it's a state and a picture that in a significantly different from what people were expecting. And I think some way, in some ways you're seeing the benefits of a number of the regulations that were put into into place after the, you know, the financial crisis last time around, right? And therefore this time, you know, a health crisis did not become a financial crisis, because I think the banks were in better shape. And also, you know, governments clearly have put worldwide a lot of liquidity into the, into the system. I think if you look at it though, maybe two or three things ready to call out firstly, there's a there's a massive regional variation. So if you look at the U. S. Banking industry, it's extremely buoyant and I'll come back to that in a minute in the way in which is performing, you know, the banks that are starting to report their first quarter results are going to show profitability. That's you know significantly ahead of where they were last year and probably some of the some of their best performance for quite a long time. If you go into europe, it's a completely different picture. I think the banks are extremely challenged out there and I think you're going to see a much bleaker outlook in terms of what those banks report and as far as Asia pacific is concerned again, you know because they they have come out of the pandemic much faster than consumer businesses back into growth. Again, I think they're showing some pretty buoyant performance as far as as far as banking performance is concerned. I think the piece that's particularly interesting and I think him as a bit of a surprise to most is what we've seen in the U. S. Right. And in the US what's actually happened is uh the investment banking side of banking businesses has been doing better than they've ever done before. There's been the most unbelievable amount of acquisition activity. You've seen a lot of what's going on with this facts that's driving deal raised, you know, deal based fee income for the banks. The volatility in the marketplace is meaning that trading income is much much higher than it's ever been. And therefore the banks are very much seeing a profitability on that investment banking side. That was way ahead of what I think they were. They were expecting consumer businesses definitely down. If you look at the credit card business, it's down. If you look at, you know, lending activity that's going down going out is substantially less than where it was before. There's hardly any lending growth because the economy clearly is flat at this moment in time. But again, the good news that, and I think this is a worldwide which are not just in us, the good news here is that because of the liquidity and and some of the special measures the government put out there, there has not been the level of bankruptcies that people were expecting, right. And therefore most of the provisioning that the banks did um in expectation of non performing loans has been, I think, a much more, much greater than what they're going to need, which is why you're starting to see provisions being released as well, which are kind of flattering, flattering the income, flattering the engine. I think going forward that you're going to see a different picture >>is the re thank you for the clarification on the regional divergence, is that and you're right on, I mean, european central banks are not the same, the same position uh to to affect liquidity. But is that nuances that variation across the globe? Is that a is that a blind spot? Is that a is that a concern or the other other greater concerns? You know, inflation and and and the the pace of the return to the economy? What are your thoughts on that? >>So, I think, I think the concern, um, you know, as far as the european marketplace is concerned is um you know, whether whether the performance that and particularly, I don't think the level of provisions in there was quite a generous, as we saw in other parts of the world, and therefore, you know, is the issue around non performing loans in in europe, going to hold the european uh european banks back? And are they going to, you know, therefore, constrain the amount of lending that they put into the economy and that then, um, you know, reduces the level of economic growth that we see in europe. Right? I think, I think that is certainly that is certainly a concern. Um I would be surprised and I've been looking at, you know, forecasts that have been put forward by various people around the world around inflation. I would be surprised if inflation starts to become a genuine problem in the, in the kind of short to medium term, I think in the industry that are going to be two or three other things that are probably going to be more, you know, going to be more issues. Right. I think the first one which is becoming top of mind for chief executives, is this whole area around operational resiliency. So, you know, regulators universally are making very very sure that banks do not have a technical debt or a complexity of legacy systems issue. They are and you know, the U. K. Has taken the lead on this and they are going so far as even requiring non executive directors to be liable if banks are found to not have the right policies in place. This is now being followed by other regulators around the world. Right. So so that is very much drop in mind at this moment in time. So I think discretionary investment is going to be put you know, towards solving that particular problem. I think that's that's one issue. I think the other issue is what the pandemic has shown is that and and and this was very evident to me and I mean I spent the last three years out in Singapore where you know, banks have become very digital businesses. Right? When I came into the U. S. In my current role, it was somewhat surprising to me as to where the U. S. Market place was in terms of digitization of banking. But if you look in the last 12 months, you know, I think more has been achieved in terms of banks becoming digital businesses and they've probably done in the last two or three years. Right. And that the real acceleration of that digitization which is going to continue to happen. But the downside of that has been that the threat to the banking industry from essentially fintech and big tex has exactly, it's really accelerated. Right, Right. Just to give you an example, Babel is the second largest financial services institutions in the US. Right. So that's become a real problem I think with the banking industry is going to have to deal with >>and I want to come back to that. But now let's bring john into the conversation. Let's talk about the tech stack. Look, it was talking about whether it was resiliency going digital, We certainly saw over the pandemic, remote work, huge, huge volumes of things like TPP and and and and and mortgages and with dropping rates, etcetera. So john, how is the tech stack Been altered in the past 14 months? >>Great question. Dave. And it's top of mind for almost every single financial services firm, regardless of the sector within the overall industry, every single business has been taking stock of how they handled the pandemic and the economic conditions thereafter and all of the business needs that were driven by the pandemic. In so many situations, firms were unable to service their clients or we're not competitive in serving their clients. And as a result they've had to do very deep uh architectural transformation and digital transformation around their core platforms. Their systems of analytics and their systems different end systems of engagement In terms of the core processing systems that many of these institutions, some in many cases there are 50 years old And with any 50 year old application platform there are inherent limitations. There's an in flex itty inflexibility. There's an inability to innovate for the future. There's a speed of delivery issue. In other words, it can be very hard to accelerate the delivery of new capabilities onto an aging platform. And so in every single case um institutions are looking to hybrid cloud and public cloud technology and pre packaged a ai and prepackaged solutions from an I. S. V. Ecosystem of software vendor ecosystem to say. As long as we can crack open many of these old monolithic cause and surround them with new digitalization, new user experience that spans every channel and automation from the front to back of every interaction. That's where most institutions are prioritizing. >>Banks aren't going to migrate, they're gonna they're gonna build an abstraction layer. I want to come back to the disruption is so interesting. The coin base I. P. O. Last month see Tesla and microstrategy. They're putting Bitcoin on their balance sheets. Jamie diamonds. Traditional banks are playing a smaller role in the financial system because of the new fin text. Look at, you mentioned Paypal, the striped as Robin Hood, you get the Silicon Valley giants have this dual disrupt disruption agenda. Apple amazon even walmart facebook. The question is, are traditional banks going to lose control of the payment systems? >>Yeah. I mean I think to a large extent that is that has already happened, right? Because I think if you look at, you know, if you look at the experience in ASia, right? And you look at particularly organizations like and financial, you know, in India, you look at organizations like A T. M. You know, very substantial chance, particularly on the consumer payments side has actually moved away from the banks. And I think you're starting to see that in the west as well, right? With organizations like, you know, cloud, No, that's coming out with this, you know, you know, buying out a later type of schemes. You've got great. Um, and then so you've got paper and as you said, strike, uh and and others as well, but it's not just, you know, in the payment side. Right. I think, I think what's starting to happen is that there are very core part of the banking business. You know, especially things like lending for instance, where again, you are getting a number of these Frontex and big, big tech companies entering the marketplace. And and I think the threat for the banks is this is not going to be small chunks of market share that you're going to actually lose. Right? It's it's actually, it could actually be a Kodak moment. Let me give you an example. Uh, you know, you will have just seen that grab is going to be acquired by one of these facts for about $40 billion. I mean, this organization started like the Uber in Singapore. It very rapidly got into both the payment site. Right? So it actually went to all of these moment pop shops and then offered q are based um, 12 code based payment capabilities to these very small retailers, they were charging about half or a third or world Mastercard or Visa were charging to run those payment rails. They took market share overnight. You look at the Remittance business, right? They went into the Remittance business. They set up these wallets in 28 countries around the Asean region. They took huge chunks of business completely away from DBS, which is the local bank out there from Western Union and all of these, all of these others. So, so I think it's a real threat. I think Jamie Dimon is saying what the banking industry has said always right, which is the reason we're losing is because the playing field is not even, this is not about playing fields. Been even write, all of these businesses have been subject to exactly the same regulation that the banks are subject to. Regulations in Singapore and India are more onerous than maybe in other parts of the world. This is about the banking business, recognizing that this is a threat and exactly as john was saying, you've got to get to delivering the customer experience that consumers are wanting at the level of cost that they're prepared to pay. And you're not going to do that by purely sorting out the channels and having a cool app on somebody's smartphone, Right? If that's not funny reported by arcade processes and legacy systems when I, you know, like, like today, you know, you make a payment, your payment does not clear for five days, right? Whereas in Singapore, I make a payment. The payment is instantaneously clear, right? That's where the banking system is going to have to get to. In order to get to that. You need to water the whole stack. And the really good news is that many examples where this has been done very successfully by incumbent banks. You don't have to set up a digital bank on the site to do it. And incumbent bank can do it and it can do it in a sensible period of time at a sensible level of investment. A lot of IBM s business across our consulting as well as our technology stack is very much trying to do that with our clients. So I am personally very bullish about what the industry >>yeah, taking friction out of the system, sometimes with a case of crypto taking the middle person out of the system. But I think you guys are savvy, you understand that, you know, you yeah, Jamie Diamond a couple years ago said he'd fire anybody doing crypto Janet Yellen and says, I don't really get a Warren Buffett, but I think it's technology people we look at and say, okay, wait a minute. This is an interesting Petri dish. There's, there's a fundamental technology here that has massive funding that is going to inform, you know, the future. And I think, you know, big bags are gonna lean in some of them and others, others won't john give you the last word here >>for sure, they're leaning in. Uh so to just to to think about uh something that lick it said a moment ago, the reason these startups were able to innovate fast was because they didn't have the legacy, They didn't have the spaghetti lying around. They were able to be relentlessly laser focused on building new, using the app ecosystem going straight to public and hybrid cloud and not worrying about everything that had been built for the last 50 years or so. The benefit for existing institutions, the incumbents is that they can use all of the same techniques and tools and hybrid cloud accelerators in terms And we're not just thinking about uh retail banking here. Your question around the industry that disruption from Bitcoin Blockchain technologies, new ways of processing securities. It is playing out in every single securities processing and capital markets organization right now. I'm working with several organizations right now exactly on how to build custody systems to take advantage of these non fungible digital assets. It's a hard, hard topic around which there's an incredible appetite to invest. An incredible appetite to innovate. And we know that the center of all these technologies are going to be cloud forward cloud ready. Ai infused data infused technologies >>Guys, I want to have you back. I wish I had more time. I want to talk about SPAC. So I want to talk about N. F. T. S. I want to talk about technology behind all this. You really great conversation. I really appreciate your time. I'm sorry. We got to go. >>Thank you. Thanks very much indeed for having us. It was a real pleasure. >>Really. Pleasure was mine. Thank you for watching everybody's day. Volonte for IBM think 2021. You're watching the Cube. Mhm.

>> From theCUBE Studios in Palo Alto and Boston, bringing you data-driven insights from theCube and ETR, this is Breaking Analysis with Dave Vellante. >> When a piece of digital art sells for $69.3 million, more than has ever been paid for works, by Gauguin or Salvador Dali, making it created the third most expensive living artists in the world. One can't help but take notice and ask, what is going on? The latest craze around NFTs may feel a bit bubblicious, but it's yet another sign, that the digital age is now fully upon us. Hello and welcome to this week's Wikibon's CUBE insights, powered by ETR. In this Breaking Analysis, we want to take a look at some of the trends, that may be difficult for observers and investors to understand, but we think offer significant insights to the future and possibly some opportunities for young investors many of whom are fans of this program. And how the trends may relate to enterprise tech. Okay, so this guy Beeple is now the hottest artist on the planet. That's his Twitter profile. That picture on the inset. His name is Mike Winkelmann. He is actually a normal looking dude, but that's the picture he chose for his Twitter. This collage reminds me of the Million Dollar Homepage. You may already know the story, but many of you may not. Back in 2005 a college kid from England named Alex Tew, T-E-W created The Million Dollar Homepage to fund his education. And his idea was to create a website with a million pixels, and sell ads at a dollar for each pixel. Guess how much money he raised. A million bucks, right? No, wrong. He raised $1,037,100. How so you ask? Well, he auctioned off the last 1000 pixels on eBay, which fetched an additional $38,000. Crazy, right? Well, maybe not. Pretty creative in a way, way early sign of things to come. Now, I'm not going to go deep into NFTs, and explain the justification behind them. There's a lot of material that's been published that can do justice to the topic better than I can. But here are the basics, NFTs stands for Non-Fungible Tokens. They are digital representations of assets that exist in a blockchain. Now, each token as a unique and immutable identifier, and it uses cryptography to ensure its authenticity. NFTs by the name, they're not fungible. So, unlike Bitcoin, Ethereum or other cryptocurrencies, which can be traded on a like-for-like basis, in other words, if you and I each own one bitcoin we know exactly how much each of our bitcoins is worth at any point of time. Non-Fungible Tokens each have their own unique values. So, they're not comparable on a like-to-like basis. But what's the point of this? Well, NFTs can be applied to any property, identities tweets, videos, we're seeing collectables, digital art, pretty much anything. And it's really. The use cases are unlimited. And NFTs can streamline transactions, and they can be bought and sold very efficiently without the need for a trusted third party involved. Now, the other benefit is the probability of fraud, is greatly reduced. So where do NFTs fit as an asset class? Well, they're definitely a new type of asset. And again, I'm not going to try to justify their existence, but I want to talk about the choices, that investors have in the market today. The other day, I was on a call with Jay Po. He is a VC and a Principal at a company called Stage 2 Capital. He's a former Bessemer VC and one of the sharper investors around. And he was talking about the choices that investors have and he gave a nice example that I want to share with you and try to apply here. Now, as an investor, you have alternatives, of course we're showing here a few with their year to date charts. Now, as an example, you can buy Amazon stock. Now, if you bought just about exactly a year ago you did really well, you probably saw around an 80% return or more. But if you want to jump in today, your mindset might be, hmm, well, okay. Amazon, they're going to be around for a long time, so it's kind of low risk and I like the stock, but you're probably going to get, well let's say, maybe a 10% annual return over the longterm, 15% or maybe less maybe single digits, but, maybe more than that but it's unlikely that any kind of reasonable timeframe within any reasonable timeframe you're going to get a 10X return. In order to get that type of return on invested capital, Amazon would have to become a $16 trillion valued company. So, you sit there, you asked yourself, what's the probability that Amazon goes out of business? Well, that's pretty low, right? And what are the chances it becomes a $16 trillion company over the next several years? Well, it's probably more likely that it continues to grow at that more stable rate that I talked about. Okay, now let's talk about Snowflake. Now, as you know, we've covered the company quite extensively. We watched this company grow from an early stage startup and then saw its valuation increase steadily as a private company, but you know, even early last year it was valued around $12 billion, I think in February, and as late as mid September right before the IPO news hit that Marc Benioff and Warren Buffett were going to put in $250 million each at the IPO or just after the IPO and it was projected that Snowflake's valuation could go over $20 billion at that point. And on day one after the IPO Snowflake, closed worth more than $50 billion, the stock opened at 120, but unless you knew a guy, you had to hold your nose and buy on day one. And you know, maybe got it at 240, maybe you got it at 250, you might have got it at higher and at the time you might recall, I said, You're likely going to get a better price than on day one, which is usually the case with most IPOs, stock today's around 230. But you look at Snowflake today and if you want to buy in, you look at it and say, Okay, well I like the company, it's probably still overvalued, but I can see the company's value growing substantially over the next several years, maybe doubling in the near to midterm [mumbles] hit more than a hundred billion dollar valuation back as recently as December, so that's certainly feasible. The company is not likely to flame out because it's highly valued, I have to probably be patient for a couple of years. But you know, let's say I liked the management, I liked the company, maybe the company gets into the $200 billion range over time and I can make a decent return, but to get a 10X return on Snowflake you have to get to a valuation of over a half a trillion. Now, to get there, if it gets there it's going to become one of the next great software companies of our time. And you know, frankly if it gets there I think it's going to go to a trillion. So, if that's what your bet is then you know, you would be happy with that of course. But what's the likelihood? As an investor you have to evaluate that, what's the probability? So, it's a lower risk investment in Snowflake but maybe more likely that Snowflake, you know, they run into competition or the market shifts, maybe they get into the $200 billion range, but it really has to transform the industry execute for you to get in to that 10 bagger territory. Okay, now let's look at a different asset that is cryptocurrency called Compound, way more risky. But Compound is a decentralized protocol that allows you to lend and borrow cryptocurrencies. Now, I'm not saying go out and buy compound but just as a thought exercise is it's got an asset here with a lower valuation, probably much higher upside, but much higher risk. But so for Compound to get to 10X return it's got to get to $20 billion valuation. Now, maybe compound isn't the right asset for your cup of tea, but there are many cryptos that have made it that far and if you do your research and your homework you could find a project that's much, much earlier stage that yes, is higher risk but has a much higher upside that you can participate in. So, this is how investors, all investors really look at their choices and make decisions. And the more sophisticated investors, they're going to use detailed metrics and analyze things like MOIC, Multiple on Invested Capital and IRR, which is Internal Rate of Return, do TAM analysis, Total Available Market. They're going to look at competition. They're going to look at detailed company models in ARR and Churn rates and so forth. But one of the things we really want to talk about today and we brought this up at the snowflake IPO is if you were Buffet or Benioff and you had to, you know, quarter of a dollars to put in you could get an almost guaranteed return with your late in the game, but pre IPO money or a look if you were Mike Speiser or one of the earlier VCs or even someone like Jeremy Burton who was part of the inside network you could get stock or options, much cheaper. You get a 5X, 10X, 50X or even North of a hundred X return like the early VCs who took a big risk. But chances are, you're not one of these in one of these categories. So how can you as a little guy participate in something big and you might remember at the time of the snowflake IPO we showed you this picture, who are these people, Olaf Carlson-Wee, Chris Dixon, this girl Sono. And of course Tim Berners-Lee, you know, that these are some of the folks that inspired me personally to pay attention to crypto. And I want to share the premise that caught my attention. It was this. Think about the early days of the internet. If you saw what Berners-Lee was working on or Linus Torvalds, in one to invest in the internet, you really couldn't. I mean, you couldn't invest in Linux or TCP/IP or HTTP. Suppose you could have invested in Cisco after its IPO that would have paid off pretty big time, for sure. You know, he could have waited for the Netscape IPO but the core infrastructure of the internet was fundamentally not directly a candidate for investment by you or really, you know, by anybody. And Satya Nadella said the other day we have reached maximum centralization. The main protocols of the internet were largely funded by the government and they've been co-opted by the giants. But with crypto, you actually can invest in core infrastructure technologies that are building out a decentralized internet, a new internet, you know call it web three Datto. It's a big part of the investment thesis behind what Carlson-wee is doing. And Andreessen Horowitz they have two crypto funds. They've raised more than $800 million to invest and you should read the firm's crypto investment thesis and maybe even take their crypto startup classes and some great content there. Now, one of the people that I haven't mentioned in this picture is Camila Russo. She's a journalist she's turned into hardcore crypto author is doing great job explaining the white hot defining space or decentralized finance. If you're just at read her work and educate yourself and learn more about the future and be happy perhaps you'll find some 10X or even hundred X opportunities. So look, there's so much innovation going around going on around blockchain and crypto. I mean, you could listen to Warren Buffet and Janet Yellen who implied this is all going to end badly. But while look, these individuals they're smart people. I don't think they would be my go-to source on understanding the potential of the technology and the future of what it could bring. Now, we've talked earlier at the, at the start here about NFTs. DeFi is one of the most interesting and disruptive trends to FinTech, names like Celsius, Nexo, BlockFi. BlockFi let's actually the average person participate in liquidity pools is actually quite interesting. Crypto is going mainstream Tesla, micro strategy putting Bitcoin on their balance sheets. We have a 2017 Jamie diamond. He called Bitcoin a tulip bulb like fraud, yet just the other day JPM announced a structured investment vehicle to give its clients a basket of stocks that have exposure to crypto, PayPal allowing customers to buy, sell, and Hodl crypto. You can trade crypto on Robin Hood. Central banks are talking about launching digital currencies. I talked about the Fedcoin for a number of years and why not? Coinbase is doing an IPO will give it a value of over a hundred billion. Wow, that sounds frothy, but still big names like Mark Cuban and Jamaat palliate Patiala have been active in crypto for a while. Gronk is getting into NFTs. So it goes to have a little bit of that bubble feel to it. But look often when tech bubbles burst they shake out the pretenders but if there's real tech involved, some contenders emerge. So, and they often do so as dominant players. And I really believe that the innovation around crypto is going to be sustained. Now, there is a new web being built out. So if you want to participate, you got to do some research figure out things like how PolkaWorks, make a call on whether you think avalanche is an Ethereum killer dig in and find out about new projects and form a thesis. And you may, as a small player be able to find some big winners, but look you do have to be careful. There was a lot of fraud during the ICO. Craze is your risk. So understand the Tokenomics and maybe as importantly the Pump-a-nomics, because they certainly loom as dangers. This is not for the faint of heart but because I believe it involves real tech. I like it way better than Reddit stocks like GameStop for example, now not to diss Reddit. There's some good information on Reddit. If you're patient, you can find it. And there's lots of good information flowing on Discord. There's people flocking to Telegram as a hedge against big tech. Maybe there's all sounds crazy. And you know what, if you've grown up in a privileged household and you have a US Education you know, maybe it is nuts and a bit too risky for you. But if you're one of the many people who haven't been able to participate in these elite circles there are things going on, especially outside of the US that are democratizing investment opportunities. And I think that's pretty cool. You just got to be careful. So, this is a bit off topic from our typical focus and ETR survey analysis. So let's bring this back to the enterprise because there's a lot going on there as well with blockchain. Now let me first share some quotes on blockchain from a few ETR Venn Roundtables. First comment is from a CIO to diversified holdings company who says correctly, blockchain will hit the finance industry first but there are use cases in healthcare given the privacy and security concerns and logistics to ensure provenance and reduce fraud. And to that individual's point about finance. This is from the CTO of a major financial platform. We're really taking a look at payments. Yeah. Do you think traditional banks are going to lose control of the payment systems? Well, not without a fight, I guess, but look there's some real disruption possibilities here. And just last comment from a government CIO says, we're going to wait until the big platform players they get into their software. And so that is happening Oracle, IBM, VMware, Microsoft, AWS Cisco, they all have blockchain initiatives going on, now by the way, none of these tech companies wants to talk about crypto. They try to distance themselves from that topic which is understandable, I guess, but I'll tell you there's far more innovation going on in crypto than there is in enterprise tech companies at this point. But I predict that the crypto innovations will absolutely be seeping into enterprise tech players over time. But for now the cloud players, they want to support developers who are building out this new internet. The database is certainly a logical place to support a mutable transactions which allow people to do business one-on-one and have total confidence that the source hasn't been hacked or changed and infrastructure to support smart contracts. We've seen that. The use cases in the enterprise are endless asset tracking data access, food, tracking, maintenance, KYC or know your customer, there's applications in different industries, telecoms, oil and gas on and on and on. So look, think of NFTs as a signal crypto craziness is a signal. It's a signal as to how IT in other parts of companies and their data might be organized, managed and tracked and protected, and very importantly, valued. Look today. There's a lot of memes. Crypto kitties, art, of course money as well. Money is the killer app for blockchain, but in the future the underlying technology of blockchain and the many percolating innovations around it could become I think will become a fundamental component of a new digital economy. So get on board, do some research and learn for yourself. Okay, that's it for today. Remember all of these episodes they're available as podcasts, wherever you listen. I publish weekly on wikibon.com and siliconangle.com. Please feel free to comment on my LinkedIn post or tweet me @dvellante or email me at david.vellante@siliconangle.com. Don't forget to check out etr.plus for all the survey action and data science. This is Dave Vellante for theCUBE Insights powered by ETR. Be well, be careful out there in crypto land. Thanks for watching. We'll see you next time. (soft music)

>> Announcer: From theCUBE studios in Palo Alto and Boston, connecting with thought leaders all around the world, this is a CUBE Conversation. >> Hello and welcome to this special CUBE Conversation here in the Palo Alto studios, I'm John Furrier, host of theCUBE, for this Leading with Observability series with Under the Hood with Splunk Observability, I'm John Furrier with Arijit Mukherji with Splunk, he's a distinguished engineer, great to have you on. These are my favorite talks. Under the Hood means we're going to get all the details, what's powering observability, thanks for coming on. >> It's my pleasure, John, it's always nice to talk to you. >> Leading with Observability is the series, want to take a deep dive look across the spectrum of the product, the problems that it's solving, but Under the Hood is a challenge, because, people are really looking at coming out of COVID with a growth strategy, looking at cloud-native, Kubernetes, you're starting to see microservices really be a big part of that, in real deployments, in real scale. This has been a theme that's been growing, we've been covering it. But now, architectural decisions start to emerge. Could you share your thoughts on this, because this becomes a big conversation. Do you buy a tool here, how do you think it through, what's the approach? >> Exactly, John. So it's very exciting times in some sense, with observability right now. So as you mentioned and discussed a few times, there's a bunch of trends that are happening in the industry which is causing a renewed interest in observability, and also an appreciation of the importance of it, and observability now as a topic, it's like a huge umbrella topic, it covers many many different things like APM, your infrastructure monitoring, your logging, your real user monitoring, your digital experience management, and so on. So it's quite a set of things that all fall under observability, and so the challenge right now, as you mentioned, is how do we look at this holistically? Because, I think at this point, it is so many different parts to this edifice, to this building, that I think having a non-integrated strategy where you just maybe go buy or build individual pieces, I don't think that's going to get you very far, given the complexity of what we're dealing with. And frankly, that's one of the big challenges that we, as architects within Splunk, we are scratching our heads with, is how do we sort of build all of this in a more coherent fashion? >> You know, one of the things, Arijit, I want to get your thoughts on is because, I've been seeing this trend and, we've been talking about it on theCUBE a lot around systems thinking, and if you look at the distributed computing wave, from just go back 20 years and look at the history of how we got here, a lot of those similar concepts are happening again, with the cloud, but not as simple. You're seeing a lot more network, I won't say network management, but observability is essentially instrumentation of the traffic and looking at all the data, to make sure things like breaches and cybersecurity, and also making systems run effectively, but it's distributed computing at the end of it, so there's a lot of science that's been there, and now new science emerging around, how do you do this all? What's your thoughts on this, because this becomes a key part of the architectural choices that some companies have to make, if they want to be in position to take advantage of cloud-native growth, which is multifold benefits, and your product people talk about faster time to market and all that good stuff, but these technical decisions matter, can you explain? >> Yes, it absolutely does. I think the main thing that I would recommend that everybody do, is understand why observability, what do you want to get out of it? So it is not just a set of parts, as I mentioned earlier, but it brings direct product benefits, as we mentioned, like faster mean time to resolution, understanding what's going on in your environment, having maybe fewer outages at the same time, understanding your causes, so many different benefits. So the point is not that one has the ability to do maybe (indistinct) or ability to do infrastructure (indistinct), the main question is aspirationally, what are my goals that are aligned to what my business wants? So what do I want to achieve, do I want to innovate faster? In that case, how is observability going to help me? And this is sort of how you need to define your strategy in terms of what kind of tools you get and how they work together. And so, if you look at what we're doing at Splunk, you'll notice it's extremely exciting right now, there's a lot of acquisitions happening, a lot of products that we're building, and the question we're asking as architects is, suppose we want to use, that will help us achieve all of this, and at the same time be somewhat future-proofed. And I think any organization that's either investing in it, or building it, or buying it, they all would probably want to think along those lines. Like what are my foundational principles, what are the basic qualities I want to have out of this system? Because technologies and infrastructures will keep on changing, that's sort of the rule of nature right now. The question is how do we best address it in a more future-proofed system? At Splunk, we have come up with a few guiding principles, and I'm sure others will have done the same. >> You know, one of the dynamics I want to get your reaction to is kind of two perspectives, one is, the growth of more teams that are involved in the work, so whether it's from cyber to monitoring, there's more teams with tools out there that are working on the network. And then you have just the impact of the diversity of use cases, not so much data volume, 'cause that's been talked about, lot of, we're having a tsunami of data, that's clear. But different kinds of dynamics, whether it's real-time, bursting, and so when you have this kind of environment, you can have gaps. And solar winds have taught us anything, it's that you have to identify problems and resolve them, this comes up a lot in observability conversations, MTTI, mean time to identify, and then to resolve. These are concepts. If you don't see the data, you can't understand what's going on if you can't measure it. This is like huge. >> Yes, absolutely right, absolutely right. So what we really need now is, as you mentioned, we need an integrated tool set, right? What we mean by that, is the tools must be able to work together, the data must be able to be used across the board. So like by use case it should not be siloed or fragmented, that they should work as one system that users are able to learn, and then sort of be able to use effectively without context switching. Another concept that's quite important is, how flexible are you? Are you digging yourself into a fixed solution, or are you depending on open standards that will then let you change out implementations, or vendors, or what have you, (static crackles) down the line, relatively easily. So understanding how you're collecting the data, how good can open standards and open source you're using is important. But to your point about missing and gaps, I think full fidelity, like understanding every single transaction, if you can pull it off, is a fascinating superpower, because that's where you don't get the gaps, and if you are able to go back and track any bad transaction, any time, that is hugely liberating, right? Because without that, if you're going to do a lot of sampling, you're going to miss a huge percentage of the user interactions, that's probably a recipe for some kind of trouble down the line, as you mentioned. And actually, these are some of those principles that we are using to build the Splunk Observability Suite, is no sample or full fidelity is a core foundational principle, and for us, it's not just isolated to, let's say application performance management, where user gets your API and you're able to track what happened, we are actually taking this upstream, up to the user, so the user is taking actions on the browser, how do we capture and correlate what's happening on the browser, because (indistinct) as you know, there's a huge move towards single-page applications, where half of my logic that my users are using is actually running on the browser, right? And so understanding the whole thing end to end, without any gaps, without any sampling, is extremely powerful. And so yes, so those are some of the things that we're investing in, and I think, again, one should keep in mind, when they're considering observability. >> You know, we were talking the other day, and having a debate around technical debt, and how that applies to observability, and one of the things that you brought up earlier about tools, and tool sprawl, that causes problems, you have operational friction, and we've heard people say "Yeah, I've got too many tools," and just too much, to replatform or refactor, it's just too much pain in the butt for me to do that, so at some point they break, I take on too much technical debt. When is that point of no return, where someone feels the pain on tool sprawl? What are some of the signaling where it's like, "You better move now (indistinct) too late," 'cause this integrated platform, that's what seems to be the way people go, as you mentioned. But this tool sprawl is a big problem. >> It is, and I think it starts hitting you relatively early on, nowadays, if you ask my opinion. So, tool sprawl is I think, if you find yourself, I think using three or four different tools, which are all part of some critical workload together, that's a stink that there's something could be optimized. For example, let's say I'm observing whether my website works fine, and if my alerting tool is different from my data gathering, or whatever, the infrastructure monitoring metrics tool, which is different from my incident management tool, which is different from my logs tool, then if you put the hat on of an engineer, a poor engineer who's dealing with a crisis, the number of times they have to context switch and the amount of friction that adds to the process, the delay that it adds to the process is very very painful. So my thinking is that at some point, especially if we find that core critical workloads are being fragmented, and that's when sort of I'm adding a bunch of friction, it's probably not good for us to sort of make that sort of keep on going for a while, and it would be time to address that problem. And frankly, having these tools integrated, it actually brings a lot of benefit, which is far bigger than the sum of the parts, because think about it, if I'm looking at, say, an incident, and if I'm able to get a cross-tool data, all presented in one screen, one UI, that is hugely powerful because it gives me all the information that I need without having to, again, dig into five different tools, and allows me to make quicker, faster decisions. So I think this is almost an inevitable wave that everybody must and will adopt, and the question is, I think it's important to get on the good program early, because unless you sort of build a lot of practices within an organization, that becomes very very hard to change later, it is just going to be more costly down the line. >> So from an (indistinct) standpoint, under the hood, integrated platform, takes that tool sprawl problem away, helps there. You had open source technology so there's no lock-in, you mentioned full fidelity, not just sampling, full end to end tracing, which is critical, wants to avoid those gaps. And then the other are I want to get your thoughts on, that you didn't bring up yet, that people are talking about is, real time streaming of analytics. What role does that play, is that part of the architecture, what function does that do? >> Right, so to me, it's a question of, how quickly do I find a problem? If you think about it, we are moving to more and more software services, right? So everybody's a software service now, and we all talk to each other in different services. Now, any time you use a dependency, you want to know how available it is, what are my SLAs and SLOs and so on, and three nines is almost a given, that you must provide three nines or better. Ideally four nines of availability, because your overall system stability is going to be less than the one of any single part, and if you go to look at four nines, you have about four or five minutes of total downtime in one whole month. That's a hard thing to be able to control. And if your alerting is going to be in order of five or 10 minutes, there's no chance you're going to be able to promise the kind of high availability that you need to be able to do, and so the fundamental question is you need to understand problems quick, like fast, within seconds, ideally. Now streaming is one way to do it, but that really is the problem definition, how do I find the problems early enough so that I can give my automation or my engineers time to figure out what happened and take corrective action? Because if I can't even know that there's something amiss, then there's no chance I'm going to be able to sort of provide that availability that my solution needs. So in that context, real time is very important, it is much more important now, because we have all these software and service dependencies, than it maybe used to be in the past. And so that's kind of why, again, at Splunk, we invested in real time streaming analytics, with the idea again being, let the problem, how can we address this, how can we provide customers with quick, high level important alerts in seconds, and that sort of real time streaming is probably the best way to achieve that. And then, if I were to, sorry, go ahead. >> No, go on, finish. >> Yeah, I was going to say that it's one thing to get an alert, but the question then is, now what do I do with it? And there's obviously a lot of alert noise that's going out, and people are fatigued, and I have all these alerts, I have this complex environment, understanding what to do, which is sort of reducing the MTTR part of it, is also important, I think environments are so complex now, that without a little bit of help from the tool, you are not going to be able to be very effective, it's going to take you longer, and this is also another reason why integrated tools are better, because they can provide you hints, looking at all the data, not just one type, not just necessarily logs, or not just necessarily traces, but they have access to the whole data set, and they can give you far better hints, and that's again one of the foundational principles, because this is in the emergent field of AIOps, where the idea is that we want to bring the power of data science, the power of machine learning, and to aid the operator in figuring out where a problem might be, so that they can at least take corrective action faster, not necessarily fix it, but at least bypass the problem, or take some kind of corrective action, and that's a theme that sort of goes across our suite of tools is, the question we ask ourselves is, "In every situation, what information could I have provided them, what kind of hints could we have provided them, to short circuit their resolution process?" >> It's funny you mention suite of tools, you have an Observability Suite, which Splunk leads with, as part of the series, it's funny, suite of tools, it's kind of like, you kind of don't want to say it, but it is kind of what's being discussed, it's kind of a platform and tool working together, and I think the trend seems to be, it used to be in the old days, you were a platform player or a tool player, really kind of couldn't do both, but now with cloud-native, as it's distributed computing, with all this importance around observability, you got to start thinking, suite has platform features, could you react to that, and how would you talk about that, because what does it mean to be a platform? Platforms have benefits, tools have benefits, working together implies it's a combination, could you share your thoughts on that reaction to that? >> That's a very interesting question you asked, John, so this is actually, if you asked me how I look at the solution set that we have, I will explain it thus. We are a platform, we are a set of products and tools, and we are an enterprise solution. And let me explain what I mean by that, because I think all of these matter, to somebody or the other. As a platform, you're like "How good am I in dealing with data?" Like ingesting data, analyzing data, alerting you, so those are the core foundational features that everybody has, these are the database-centric aspects of it, right? And if you look at a lot of organizations who have mature practices, they are looking for a platform, maybe it scales better than what they have, or whatnot, and they're looking for a platform, they know what to do, build out on top of that, right? But at the same time, a platform is not a product, 99% of our users, they're not going to make database calls to fetch and query data, they want an end to end, like a thing that they can use to say, "Monitor my Kubernetes," "Monitor my Elasticsearch," "Monitor my," you know, whatever other solution I may have. So then we build a bunch of products that are built on top of the platform, which provide sort of the usability, so where, it's very easy to get on, send the data, have built-in content, dashboard (indistinct), what have you, so that my day to day work is fast, because I'm not a observability engineer, I'm a software engineer working on something, and I want to use observability, make it easy for me, right? So that's sort of the product aspect of it. But then if you look at organizations that a little bit scale up, just a product is also not good enough. Now we're looking at a observability solution that's deployed in an enterprise, and there are many many products, many many teams, many many users, and then how can one be effective there? And if you look at what's important at that level, it's not the database aspect or the platform aspect, it's about how well can I manage it, do I have visibility into what I am sending, what my bill is, can I control against incorrect usage, do I have permissions to sort of control who can mess with my (indistinct) and so on, and so there's a bunch of layer of what we call enterprise capabilities that are important in an organizational setting. So I think in order to build something that's successful in this space, we have to think at all these three levels, right? And all of these are important, because in the end, it's how much value am I getting out of it, it's not just what's theoretically possible, what's really happening, and all of these are important in that context. >> And I think, Arijit, that's amazing masterclass right there, soundbite right there, and I think it's because the data also is important, if you're going to be busting down data silos, you need to have a horizontally scalable data observability space. You have to have access to the data, so I think the trend will be more integrated, clearly, and more versatile from a platform perspective, it has to be. >> Absolutely, absolutely. >> Well, we're certainly going to bring you back on our conversations when we have our events and/or our groups around digital transformation Under the Hood series that we're going to do, but great voice, great commentary, Arijit, thank you for sharing that knowledge with us, appreciate it. >> My pleasure, thank you very much. >> Okay, I'm John Furrier with theCUBE, here, Leading with Observability content series with Splunk, I'm John Furrier with theCUBE, thanks for watching. (calm music)

>> Narrator: From theCUBE studios in Palo Alto in Boston, connecting with thought leaders all around the world. This is a CUBE conversation. >> As you know by now, Jeff Bezos, CEO of Amazon, is stepping aside from his CEO role and AWS CEO, Andy Jassy, is being promoted to head all of Amazon. Bezos, of course, is going to remain executive chairman. Now, 15 years ago, next month, Amazon launched it's simple storage service, which was the first modern cloud offering. And the man who wrote the business plan for AWS, was Andy Jassy, and he's navigated the meteoric rise and disruption that has seen AWS grow into a $45 billion company that draws off the vast majority of Amazon's operating profits. No one in the media has covered Jassy more intimately and closely than John Furrier, the founder of SiliconANGLE. And John joins us today to help us understand on theCUBE this move and what we can expect from Jassy in his new role, and importantly what it means for AWS. John, thanks for taking the time to speak with us. >> Hey, great day. Great to see you as always, we've done a lot of interviews together over the years and we're on our 11th year with theCUBE and SiliconANGLE. But I got to be excited too, that we're simulcasters on Clubhouse, which is kind of cool. Love Clubhouse but not since the, in December. It's awesome. It's like Cube radio. It's like, so this is a Cube talk. So we opened up a Clubhouse room while we're filming this. We'll do more live hits in studio and syndicate the Clubhouse and then take questions after. This is a huge digital transformation moment. I'm part of the digital transformation club on Clubhouse which has almost 5,000 followers at the moment and also has like 500 members. So if you're not on Clubhouse, yet, if you have an iPhone go check it out and join the digital transformation club. Android users you'll have to wait until that app is done but it's really a great club. And Jeremiah Owyang is also doing a lot of stuff on digital transformation. >> Or you can just buy an iPhone and get in. >> Yeah, that's what people are doing. I can see all the influences are on there but to me, the digital transformation, it's always been kind of a cliche, the consumerization of IT, information technology. This has been the boring world of the enterprise over the past, 20 years ago. Enterprise right now is super hot because there's no distinction between enterprise and society. And that's clearly the, because of the rise of cloud computing and the rise of Amazon Web Services which was a side project at AWS, at Amazon that Andy Jassy did. And it wasn't really pleasant at the beginning. It was failed. It failed a lot and it wasn't as successful as people thought in the early days. And I have a lot of stories with Andy that he told me a lot of the inside baseball and we'll share that here today. But we started covering Amazon since the beginning. I was as an entrepreneur. I used it when it came out and a huge fan of them as a company because they just got a superior product and they have always had been but it was very misunderstood from the beginning. And now everyone's calling it the most important thing. And Andy now is becoming Andy Jassy, the most important executive in the world. >> So let's get it to the, I mean, look at, you said to me over holidays, you thought this might have something like this could happen. And you said, Jassy is probably in line to get this. So, tell us, what can you tell us about Jassy? Why is he qualified for this job? What do you think he brings to the table? >> Well, the thing that I know about Amazon everyone's been following the Amazon news is, Jeff Bezos has a lot of personal turmoil. They had his marriage fail. They had some issues with the smear campaigns and all this stuff going on, the run-ins with Donald Trump, he bought the Washington post. He's got a lot of other endeavors outside of Amazon cause he's the second richest man in the world competing with Elon Musk at Space X versus Blue Origin. So the guy's a billionaire. So Amazon is his baby and he's been running it as best he could. He's got an executive team committee they called the S team. He's been grooming people in the company and that's just been his mode. And the rise of AWS and the business performance that we've been documenting on SiliconANGLE and theCUBE, it's just been absolutely changing the game on Amazon as a company. So clearly Amazon Web Services become a driving force of the new Amazon that's emerging. And obviously they've got all their retail business and they got the gaming challenges and they got the studios and the other diversified stuff. So Jassy is just, he's just one of those guys. He's just been an Amazonian from day one. He came out of Harvard business school, drove across the country, very similar story to Jeff Bezos. He did that in 1997 and him and Jeff had been collaborating and Jeff tapped him to be his shadow, they call it, which is basically technical assistance and an heir apparent and groomed him. And then that's how it is. Jassy is not a climber as they call it in corporate America. He's not a person who is looking for a political gain. He's not a territory taker, but he's a micromanager. He loves details and he likes to create customer value. And that's his focus. So he's not a grandstander. In fact, he's been very low profile. Early days when we started meeting with him, he wouldn't meet with press regularly because they weren't writing the right stories. And everyone is, he didn't know he was misunderstood. So that's classic Amazon. >> So, he gave us the time, I think it was 2014 or 15 and he told us a story back then, John, you might want to share it as to how AWS got started. Why, what was the main spring Amazon's tech wasn't working that great? And Bezos said to Jassy, going to go figure out why and maybe explain how AWS was born. >> Yeah, we had, in fact, we were the first ones to get access to do his first public profile. If you go to the Google and search Andy Jassy, the trillion dollar baby, we had a post, we put out the story of AWS, Andy Jassy's trillion dollar baby. This was in early, this was January 2015, six years ago. And, we back then, we posited that this would be a trillion dollar total addressable market. Okay, people thought we were crazy but we wrote a story and he gave us a very intimate access. We did a full drill down on him and the person, the story of Amazon and that laid out essentially the beginning of the rise of AWS and Andy Jassy. So that's a good story to check out but really the key here is, is that he's always been relentless and competitive on creating value in what they call raising the bar outside Amazon. That's a term that they use. They also have another leadership principle called working backwards, which is like, go to the customer and work backwards from the customer in a very Steve Job's kind of way. And that's been kind of Jobs mentality as well at Apple that made them successful work backwards from the customer and make things easier. And that was Apple. Amazon, their philosophy was work backwards from the customer and Jassy specifically would say it many times and eliminate the undifferentiated heavy lifting. That was a key principle of what they were doing. So that was a key thesis of their entire business model. And that's the Amazonian way. Faster, cheaper, ship it faster, make it less expensive and higher value. While when you apply the Amazon shipping concept to cloud computing, it was completely disrupted. They were shipping code and services faster and that became their innovation strategy. More announcements every year, they out announced their competition by huge margin. They introduced new services faster and they're less expensive some say, but in the aggregate, they make more money but that's kind of a key thing. >> Well, when you, I was been listening to the TV today and there was a debate on whether or not, this support tends that they'll actually split the company into two. To me, I think it's just the opposite. I think it's less likely. I mean, if you think about Amazon getting into grocery or healthcare, eventually financial services or other industries and the IOT opportunity to me, what they do, John, is they bring in together the cloud, data and AI and they go attack these new industries. I would think Jassy of all people would want to keep this thing together now whether or not the government allows them to do that. But what are your thoughts? I mean, you've asked Andy this before in your personal interviews about splitting the company. What are your thoughts? >> Well, Jon Fortt at CNBC always asked the same question every year. It's almost like the standard question. I kind of laugh and I ask it now too because I liked Jon Fortt. I think he's an awesome dude. And I'll, it's just a tongue in cheek, Jassy. He won't answer the question. Amazon, Bezos and Jassy have one thing in common. They're really good at not answering questions. So if you ask the same question. They'll just say, nothing's ever, never say never, that's his classic answer to everything. Never say never. And he's always said that to you. (chuckles) Some say, he's, flip-flopped on things but he's really customer driven. For example, he said at one point, no one should ever build a data center. Okay, that was a principle. And then they come out and they have now a hybrid strategy. And I called them out on that and said, hey, what, are you flip-flopping? You said at some point, no one should have a data center. He's like, well, we looked at it differently and what we meant was is that, it should all be cloud native. Okay. So that's kind of revision, but he's cool with that. He says, hey, we'll revise based on what customers are doing. VMware working with Amazon that no one ever thought that would happen. Okay. So, VMware has some techies, Raghu, for instance, over there, super top notch. He worked with Jassy, directly in his team Sanjay Poonen when they went to business school together, they cut a deal. And now Amazon essentially saved VMware, in my opinion. And Pat Gelsinger drove that deal. Now, Pat Gelsinger, CEO, Intel, and Pat told me that directly in candid conversation off theCUBE, he said, hey, we have to make a decision either we're going to be in cloud or we're not going to be in cloud, we will partner. And I'll see, he was Intel. He understood the Intel inside mentality. So that's good for VMware. So Jassy does these kinds of deals. He's not afraid he's got a good stomach for business and a relentless competitor. >> So, how do you think as you mentioned Jassy is a micromanager. He gets deep into the technology. Anybody who's seen his two hour, three hour keynotes. No, he has a really fine grasp of the technology across the entire stack. How do you think John, he will approach things like antitrust, the big tech lash of the unionization of the workforce at Amazon? How do you think Jassy will approach that? >> Well, I think one of the things that emerges Jassy, first of all, he's a huge sports fan. And many people don't know that but he's also progressive person. He's very progressive politically. He's been on the record and off the record saying things like, obviously, literacy has been big on, he's been on basically unrepresented minorities, pushing for that, and certainly cloud computing in tech, women in tech, he's been a big proponent. He's been a big supporter of Teresa Carlson. Who's been rising star at Amazon. People don't know who Teresa Carlson is and they should check out her. She's become one of the biggest leaders inside Amazon she's turned around public sector from the beginning. She ran that business, she's a global star. He's been a great leader and he's been getting, forget he's a micromanager, he's on top of the details. I mean, the word is, and nothing gets approved without Andy, Andy seeing it. But he's been progressive. He's been an Amazon original as they call it internally. He's progressive, he's got the business acumen but he's perfect for this pragmatic conversation that needs to happen. And again, because he's so technically strong having a CEO that's that proficient is going to give Amazon an advantage when they have to go in and change how DC works, for instance, or how the government geopolitical landscape works, because Amazon is now a global company with regions all over the place. So, I think he's pragmatic, he's open to listening and changing. I think that's a huge quality >> Well, when you think of this, just to set the context here for those who may not know, I mean, Amazon started as I said back in 2006 in March with simple storage service that later that year they announced EC2 which is their compute platform. And that was the majority of their business, is still a very large portion of their business but Amazon, our estimates are that in 2020, Amazon did 45 billion, 45.4 billion in revenue. That's actually an Amazon reported number. And just to give you a context, Azure about 26 billion GCP, Google about 6 billion. So you're talking about an industry that Amazon created. That's now $78 billion and Amazon at 45 billion. John they're growing at 30% annually. So it's just a massive growth engine. And then another story Jassy told us, is they, he and Jeff and the team talked early on about whether or not they should just sort of do an experiment, do a little POC, dip their toe in and they decided to go for it. Let's go big or go home as Michael Dell has said to us many times, I mean, pretty astounding. >> Yeah. One of the things about Jassy that people should know about, I think there's some compelling relative to the newest ascension to the CEO of Amazon, is that he's not afraid to do new things. For instance, I'll give you an example. The Amazon Web Services re-invent their annual conference grew to being thousands and thousands of people. And they would have a traditional after party. They called a replay, they'd have a band like every tech conference and their conference became so big that essentially, it was like setting up a live concert. So they were spending millions of dollars to set up basically a one night concert and they'd bring in great, great artists. So he said, hey, what's been all this cash? Why don't we just have a festival? So they did a thing called Intersect. They got LA involved from creatives and they basically built a weekend festival in the back end of re-invent. This was when real life was, before COVID and they turned into an opportunity because that's the way they think. They like to look at the resources, hey, we're already all in on this, why don't we just keep it for the weekend and charge some tickets and have a good time. He's not afraid to take chances on the product side. He'll go in and take a chance on a new market. That comes from directly from Bezos. They try stuff. They don't mind failing but they put a tight leash on measurement. They work backwards from the customer and they are not afraid to take chances. So, that's going to board well for him as he tries to figure out how Amazon navigates the contention on the political side when they get challenged for their dominance. And I think he's going to have to apply that pragmatic experimentation to new business models. >> So John I want you to take on AWS. I mean, despite the large numbers, I talked about 30% growth, Azure is growing at over 50% a year, GCP at 83%. So despite the large numbers and big growth the growth rates are slowing. Everybody knows that, we've reported it extensively. So the incoming CEO of Amazon Web Services has a TAM expansion challenge. And at some point they've got to decide, okay, how do we keep this growth engine? So, do you have any thoughts as to who might be the next CEO and what are some of their challenges as you see it? >> Well, Amazon is a real product centric company. So it's going to be very interesting to see who they go with here. Obviously they've been grooming a lot of people. There's been some turnover. You had some really strong executives recently leave, Jeff Wilkes, who was the CEO of the retail business. He retired a couple of months ago, formerly announced I think recently, he was probably in line. You had Mike Clayville, is now the chief revenue officer of Stripe. He ran all commercial business, Teresa Carlson stepped up to his role as well as running public sector. Again, she got more power. You have Matt Garman who ran the EC2 business, Stanford grad, great guy, super strong on the product side. He's now running all commercial sales and marketing. And he's also on the, was on Bezos' S team, that's the executive kind of team. Peter DeSantis is also on that S team. He runs all infrastructure. He took over for James Hamilton, who was the genius behind all the data center work that they've done and all the chip design stuff that they've innovated on. So there's so much technical innovation going on. I think you still going to see a leadership probably come from, I would say Matt Garman, in my opinion is the lead dog at this point, he's the lead horse. You could have an outside person come in depending upon how, who might be available. And that would probably come from an Andy Jassy network because he's a real fierce competitor but he's also a loyalist and he likes trust. So if someone comes in from the outside, it's going to be someone maybe he trusts. And then the other wildcards are like Teresa Carlson. Like I said, she is a great woman in tech who's done amazing work. I've profiled her many times. We've interviewed her many times. She took that public sector business with Amazon and changed the game completely. Outside the Jedi contract, she was in competitive for, had the big Trump showdown with the Jedi, with the department of defense. Had the CIA cloud. Amazon set the standard on public sector and that's directly the result of Teresa Carlson. But she's in the field, she's not a product person, she's kind of running that group. So Amazon has that product field kind of structure. So we'll see how they handle that. But those are the top three I think are going to be in line. >> So the obvious question that people always ask and it is a big change like this is, okay, in this case, what is Jassy going to bring in? And what's going to change? Maybe the flip side question is somewhat more interesting. What's not going to change in your view? Jassy has been there since nearly the beginning. What are some of the fundamental tenets that he's, that are fossilized, that won't change, do you think? >> I think he's, I think what's not going to change is Amazon, is going to continue to grow and develop their platform business and enable more SaaS players. That's a little bit different than what Microsoft's doing. They're more SaaS oriented, Office 365 is becoming their biggest application in terms of revenue on Microsoft side. So Amazon is going to still have to compete and enable more ecosystem partners. I think what's not going to change is that Bezos is still going to be in charge because executive chairman is just a code word for "not an active CEO." So in the corporate governance world when you have an executive chairman, that's essentially the person still in charge. And so he'll be in charge, will still be the boss of Andy Jassy and Jassy will be running all of Amazon. So I think that's going to be a little bit the same, but Jassy is going to be more in charge. I think you'll see a team change over, whether you're going to see some new management come in, Andy's management team will expand, I think Amazon will stay the same, Amazon Web Services. >> So John, last night, I was just making some notes about notable transitions in the history of the tech business, Gerstner to Palmisano, Gates to Ballmer, and then Ballmer to Nadella. One that you were close to, David Packard to John Young and then John Young to Lew Platt at the old company. Ellison to Safra and Mark, Jobs to Cook. We talked about Larry Page to Sundar Pichai. So how do you see this? And you've talked to, I remember when you interviewed John Chambers, he said, there is no rite of passage, East coast mini-computer companies, Edson de Castro, Ken Olsen, An Wang. These were executives who wouldn't let go. So it's of interesting to juxtapose that with the modern day executive. How do you see this fitting in to some of those epic transitions that I just mentioned? >> I think a lot of people are surprised at Jeff Bezos', even stepping down. I think he's just been such the face of Amazon. I think some of the poll numbers that people are doing on Twitter, people don't think it's going to make a big difference because he's kind of been that, leader hand on the wheel, but it's been its own ship now, kind of. And so depending on who's at the helm, it will be different. I think the Amazon choice of Andy wasn't obvious. And I think a lot of people were asking the question who was Andy Jassy and that's why we're doing this. And we're going to be doing more features on the Andy Jassy. We got a tons, tons of content that we've we've had shipped, original content with them. We'll share more of those key soundbites and who he is. I think a lot of people scratching their head like, why Andy Jassy? It's not obvious to the outsiders who don't know cloud computing. If you're in the competing business, in the digital transformation side, everyone knows about Amazon Web Services. Has been the most successful company, in my opinion, since I could remember at many levels just the way they've completely dominated the business and how they change others to be dominant. So, I mean, they've made Microsoft change, it made Google change and even then he's a leader that accepts conversations. Other companies, their CEOs hide behind their PR wall and they don't talk to people. They won't come on Clubhouse. They won't talk to the press. They hide behind their PR and they feed them, the media. Jassy is not afraid to talk to reporters. He's not afraid to talk to people, but he doesn't like people who don't know what they're talking about. So he doesn't suffer fools. So, you got to have your shit together to talk to Jassy. That's really the way it is. And that's, and he'll give you mind share, like he'll answer any question except for the ones that are too tough for him to answer. Like, are you, is facial recognition bad or good? Are you going to spin out AWS? I mean these are the hard questions and he's got a great team. He's got Jay Carney, former Obama press secretary working for him. He's been a great leader. So I'm really bullish on, is a good choice. >> We're going to jump into the Clubhouse here and open it up shortly. John, the last question for you is competition. Amazon as a company and even Jassy specifically I always talk about how they don't really focus on the competition, they focus on the customer but we know that just observing these folks Bezos is very competitive individual. Jassy, I mean, you know him better than I, very competitive individual. So, and he's, Jassy has been known to call out Oracle. Of course it was in response to Larry Ellison's jabs at Amazon regarding database. But, but how do you see that? Do you see that changing at all? I mean, will Amazon get more publicly competitive or they stick to their knitting, you think? >> You know this is going to sound kind of a weird analogy. And I know there's a lot of hero worshiping on Elon Musk but Elon Musk and Andy Jassy have a lot of similarities in the sense of their brilliance. They got both a brilliant people, different kinds of backgrounds. Obviously, they're running different things. They both are builders, right? If you were listening to Elon Musk on Clubhouse the other night, what was really striking was not only the magic of how it was all orchestrated and what he did and how he interviewed Robin Hood. He basically is about building stuff. And he was asked questions like, what advice do you give startups? He's like, if you need advice you shouldn't be doing startups. That's the kind of mentality that Jassy has, which is, it's not easy. It's not for the faint of heart, but Elon Musk is a builder. Jassy builds, he likes to build stuff, right? And so you look at all the things that he's done with AWS, it's been about enabling people to be successful with the tools that they need, adding more services, creating things that are lower price point. If you're an entrepreneur and you're over the age of 30, you know about AWS because you know what, it's cheaper to start a business on Amazon Web Services than buying servers and everyone knows that. If you're under the age of 25, you might not know 50 grand to a hundred thousand just to start something. Today you get your credit card down, you're up and running and you can get Clubhouses up and running all day long. So the next Clubhouse will be on Amazon or a cloud technology. And that's because of Andy Jassy right? So this is a significant executive and he continue, will bring that mindset of building. So, I think the digital transformation, we're in the digital engine club, we're going to see a complete revolution of a new generation. And I think having a new leader like Andy Jassy will enable in my opinion next generation talent, whether that's media and technology convergence, media technology and art convergence and the fact that he digs music, he digs sports, he digs tech, he digs media, it's going to be very interesting to see, I think he's well-poised to be, and he's soft-spoken, he doesn't want the glamorous press. He doesn't want the puff pieces. He just wants to do what he does and he puts his game do the talking. >> Talking about advice at startups. Just a quick aside. I remember, John, you and I when we were interviewing Scott McNealy former CEO of Sun Microsystems. And you asked him advice for startups. He said, move out of California. It's kind of tongue in cheek. I heard this morning that there's a proposal to tax the multi-billionaires of 1% annually not just the one-time tax. And so Jeff Bezos of course, has a ranch in Texas, no tax there, but places all over. >> You see I don't know. >> But I don't see Amazon leaving Seattle anytime soon, nor Jassy. >> Jeremiah Owyang did a Clubhouse on California. And the basic sentiment is that, it's California is not going away. I mean, come on. People got to just get real. I think it's a fad. Yeah. This has benefits with remote working, no doubt, but people will stay here in California, the network affects beautiful. I think Silicon Valley is going to continue to be relevant. It's just going to syndicate differently. And I think other hubs like Seattle and around the world will be integrated through remote work and I think it's going to be much more of a democratizing effect, not a win lose. So that to me is a huge shift. And look at Amazon, look at Amazon and Microsoft. It's the cloud cities, so people call Seattle. You've got Google down here and they're making waves but still, all good stuff. >> Well John, thanks so much. Let's let's wrap and let's jump into the Clubhouse and hear from others. Thanks so much for coming on, back on theCUBE. And many times we, you and I've done this really. It was a pleasure having you. Thanks for your perspectives. And thank you for watching everybody, this is Dave Vellante for theCUBE. We'll see you next time. (soft ambient music)

>> Announcer: From theCUBE studios in Palo Alto and Boston, connecting with thought leaders all around the world, this is a CUBE Conversation. >> Hi, everybody, welcome back to theCUBE's coverage of the Virtual Vertica BDC, Big Data Conference. It was, of course, going to be in Boston, but now we're covering it online. It's really our pleasure to invite back Joy King, she's the vice president of product and go-to-market strategy at Vertica. She also manages marketing and education programs. Joy, great to see you. >> It's great to be back, as always, Dave, thank you. >> Let's talk about BDC, Virtual BDC. We took a break. theCUBE has been at every Big Data Conference. I love that show, great customers, awesome buzz, great outside speakers. I actually had the pleasure of being up on stage with some database experts, of which I'm not, but I'm a (laughs) inch deep and a mile wide. >> I remember that! (laughs) >> And it was a lot of fun going head to head with some of the folks, and just really a great vibe over that conference. But, so, now, you had to make the decision, because of the coronavirus, to go digital. You didn't delay, and I love the fact that you guys leaned right in, you've got all this content. So talk about what we can expect at BDC. >> Well, you know, Dave, the BDC is really special, and I have to give Colin Mahoney, our GM, the credit for the idea. Sometimes his ideas are really good, and the execution can be, well, challenging. But when we started the BDC, he had an idea. He said, "You know, we have such a passionate "community, we need to get them together. "We need, like, a user group." Well, that user group, for the first BDC, was the first and only event I have ever been responsible for where, yes, it's true, we exceeded the fire code of the venue, and we had more people that registered than we were allowed to accept. That's never happened before. It's because the passion was so real. We made a commitment. We said the only people that could speak at the BDC were engineers who architected and write the code, and customers who've used the code. We were determined to keep the technical credibility, the value of best practices, the sharing among the community. Marketing was responsible for appropriate amounts of coffee and alcohol at the appropriate times, (Dave laughs) but today, that is still why the BDC is so special. Now, I have to tell you, we have been somewhat limited in our ability to confirm coffee, alcohol, et cetera in the Virtual BDC, but we are still true to our mission. The people that will be speaking during the sessions that we have, and for all of the recordings that we will do in addition after we complete the live BDC, are engineers and architects who design and write the code, hands on the keyboard, and customers who use Vertica to power their businesses every day. That's the rule. Some people don't like it, but that's how we play. >> Well, and to your point, and we've interviewed a number of your customers, and I can second that. The database engineers are proud to put Vertica in their title. >> Yes. >> They embrace it, they love to train people and get adoption going, so that's awesome. Let's talk about some of the logistics of the BDC, the Virtual BDC. Tuesday, March 31st, and then the next day, April 1st, you've got keynotes, you've got breakouts, and of course, we've got theCUBE. After the keynotes, we'll be doing CUBE coverage for two days, wall-to-wall coverage of Virtual BDC. And to your point, and I think this is a nuance that I think people are going to learn with digital, is there's a post-event that really is going to continue that engagement with your community. >> That's right. As much as everybody knows there's nothing that replaces face-to-face interaction, there are advantages to the virtual world. First of all, people are getting pretty creative, I've got to say, and second, it gives global reach to people who would have loved to come to the BDC but couldn't. They couldn't travel, there were restrictions, they were busy with other things. So, yes, all day Tuesday and all day Wednesday. After the keynote on Tuesday will be two parallel tracks, and this is East Coast time, from U.S. East Coast time, on Tuesday afternoon, and then two parallel tracks all day Wednesday. And then on Thursday, in addition to all of those webinars, all of those sessions being available on demand, we are also, right now, recording additional sessions because we just didn't have enough slots, but we had more speakers, both customers and engineers, that wanted to, and all of that will be available on the BDC website on Thursday and beyond. And we're going to continue with two webinar series that we're very proud of. One is called "Under the Hood," which is technical webinars, and the other is called "Data Disruptors," and those are the customers that love to tell their stories. And that, in parallel with ongoing CUBE interviews, will keep the energy all the way up until late March of 2021, when we have already confirmed the next live BDC. >> Awesome, so go to vertica.com/bdc2020, register, you got to register, to see the keynotes. It's lightweight registration, it's not a hundred fields, we want you to come in. And then, of course, theCUBE.net is going to be covering, theCUBE interviews, and SiliconANGLE.com will have editorial. Joy, looking forward to it. Thanks so much for giving us the update, and we'll see you online. >> It will be a pleasure, see ya, bye. >> And we'll see you. Thank you, everybody, and go, like I said, go register, again, it's vertica.com/bdc2020. This is Dave Vellante from theCUBE, and we'll see you at the Virtual Vertica Big Data Conference. (upbeat music)

>> Narrator: From theCUBE studios in Palo Alto in Boston, connecting with top leaders all around the world, this is theCUBE Conversation. >> Hi everybody, I'm Dave Vellante, and welcome to the Vertica Big Data Conference virtual. This is our digital presentation, wall to wall coverage actually, of the Vertica Big Data Conference. And with me is Jeff Healy, who directs product marketing at Vertica. Jeff, good to see you. >> Good to see you, Dave. Thanks for the opportunity to chat. >> You're very welcome Now I'm excited about the products that you guys announced and you're hardcore into product marketing, but we're going to talk about the Vertica Big Data Conference. It's been a while since you guys had this. Obviously, new owner, new company, some changes, but that new company Microfocus has announced that it's investing, I think the number was $70 million into two areas. One was security and the other, of course, was Vertica. So we're really excited to be back at the virtual Big Data Conference. And let's hear it from you, what are your thoughts? >> Yeah, Dave, thanks. And we love having theCUBE at all of these events. We're thrilled to have the next Vertica Big Data Conference. Actually it was a physical event, we're moving it online. We know it's going to be a big hit because we've been doing this for some time particularly with two of the webcast series we have every month. One is under the Hood Webcast Series, which is led by our engineers and the other is what we call a Data Disruptors Webcast Series, which is led by all customers. So we're really confident this is going to be a big hit we've seen the registration spike. We just hit 1,000 and we're planning on having about 1,000 at the physical event. It's growing and growing. We're going to see those big numbers and it's not going to be a one time thing. We're going to keep the conversation going, make sure there's plenty of best practices learning throughout the year. >> We've been at all the big BDCs and the first one's were really in the heart of the Big Data Movement, really exciting time and the interesting thing about this event is it was always sort of customers talking to customers. There wasn't a lot of commercials, an intimate event. Of course I loved it because it was in our hometown. But I think you're trying to carry that theme obviously into the digital sphere. Maybe you can talk about that a little bit. >> Yeah, Dave, absolutely right. Of course, nothing replaces face to face, but everything that you just mentioned that makes it special about the Big Data Conference, and you know, you guys have been there throughout and shown great support in talking to so many customers and leaders and what have you. We're doing the same thing all right. So we had about 40 plus sessions planned for the physical event. We're going to run half of those and we're not going to lose anything though, that's the key point. So what makes the Vertica Big Data Conference really special is that the only presenters that are allowed to present are either engineers, Vertica engineers, or best practices engineers and then customers. Customers that actually use the product. There's no sales or marketing pitches or anything like that. And I'll tell you as far as the customer line up that we have, we've got five or six already lined up as part of those 20 sessions, customers like Uber, customers like the Trade Desk, customers like Phillips talking about predictive maintenance, so list goes on and on. You won't want to miss it if you're on the fence or if you're trying to figure out if you want to register for this event. Best part about it, it's all free, and if you can't attend it live, it will be live Q&A chat on every single one of those sessions, we promise we'll answer every question if we don't get it live, as we always do. They'll all be available on demand. So no reason not to register and attend or watch later. >> Thinking about the content over the years, in the early days of the Big Data Conference, of course Vertica started before the whole Big Data Conference meme really took off and then as it took off, plugged right into it, but back then the discussion was a lot of what do I do with big data, Gartner's three Vs and how do I wrangle it all, and what's the best approach and this stuff is, Hadoop is really complicated. Of course Vertica was an alternative to RDBMS that really couldn't scale or give that type of performance for analytical databases so you had your foot in that door. But now the conversation that's interesting your theme, it's win big with data. Of course, the physical event was at the Encore, which is the new Casino in Boston. But my point is, the conversation is no longer about, how to wrangle all this data, you know how to lower the cost of storing this data, how to make it go faster, and actually make it work. It's really about how to turn data into insights and transform your organizations and quote and quote, win with big data. >> That's right. Yeah, that's great point, Dave. And that's why I mean, we chose the title really, because it's about our customers and what they're able to do with our platform. And it's we know, it's not just one platform, all of the ecosystem, all of our incredible partners. Yeah it's funny when I started with the organization about seven years ago, we were closing lots of deals, and I was following up on case studies and it was like, Okay, why did you choose Vertica? Well, the queries went fast. Okay, so what does that mean for your business? We knew we're kind of in the early adopter stage. And we were disrupting the data warehouse market. Now we're talking to our customers that their volumes are growing, growing and growing. And they really have these analytical use cases again, talk to the value at the entire organization is gaining from it. Like that's the difference between now and a few years ago, just like you were saying, when Vertica disrupted the database market, but also the data warehouse market, you can speak to our customers and they can tell you exactly what's happening, how it's moving the needle or really advancing the entire organization, regardless of the analytical use case, whether it's an internet of things around predictive maintenance, or customer behavior analytics, they can speak confidently of it more than just, hey, our queries went faster. >> You know, I've mentioned before the Micro Focus investment, I want to drill into that a bit because the Vertica brand stands alone. It's a Micro Focus company, but Vertica has its own sort of brand awareness. The reason I've mentioned that is because if you go back to the early days of MPP Database, there was a spate of companies, startups that formed. And many if not all of those got acquired, some lived on with the Codebase, going into the cloud, but generally speaking, many of those brands have gone away Vertica stays. And so my point is that we've seen Vertica have staying power throughout, I think it's a function of the architecture that Stonebraker originally envisioned, you guys were early on the market had a lot of good customer traction, and you've been very responsive to a lot of the trends. Colin Mahony will talk about how you adopted and really embrace cloud, for example, and different data formats. And so you've really been able to participate in a lot of the new emerging waves that have come out to the market. And I would imagine some of that's cultural. I wonder if you could just address that in the context of BDC. >> Oh, yeah, absolutely. You hit on all the key points here, Dave. So a lot of changes in the industry. We're in the hottest industry, the tech industry right now. There's lots of competition. But one of the things we'll say in terms of, Hey, who do you compete with? You compete with these players in the cloud, open source alternatives, traditional enterprise data warehouses. That's true, right. And one of the things we've stayed true within calling is really kind of led the charge for the organization is that we know who we are right. So we're an analytical database platform. And we're constantly just working on that one sole Source Code base, to make sure that we don't provide a bunch of different technologies and databases, and different types of technologies need to stitch together. This platform just has unbelievable universal capabilities from everything from running analytics at scale, to in Database Machine Learning with the different approach to all different types of deployment models that are supported, right. We don't go to our companies and we say, yeah, we take care of all your problems but you have to stitch together all these different types of technologies. It's all based on that core Vertica engine, and we've expanded it to meet all these market needs. So Colin knows and what he believes and what he tells the team what we lead with, is that it lead with that one core platform that can address all these analytical initiatives. So we know who we are, we continue to improve on it, regardless of the pivots and the drastic measures that some of the other competitors have taken. >> You know, I got to ask you, so we're in the middle of this global pandemic with Coronavirus and COVID-19, and things change daily by the hour sometimes by the minute. I mean, every day you get up to something new. So you see a lot of forecasts, you see a lot of probability models, best case worst case likely case even though nobody really knows what that likely case looks like, So there's a lot of analytics going on and a lot of data that people are crunching new data sources come in every day. Are you guys participating directly in that, specifically your customers? Are they using your technology? You can't use a traditional data warehouse for this. It's just you know, too slow to asynchronous, the process is cumbersome. What are you seeing in the customer base as it relates to this crisis? >> Sure, well, I mean naturally, we have a lot of customers that are healthcare technology companies, companies, like Cerner companies like Philips, right, that are kind of leading the charge here. And of course, our whole motto has always been, don't throw away any the data, there's value in that data, you don't have to with Vertica right. So you got petabyte scale types of analytics across many of our customers. Again, just a few years ago, we called the customers a petabyte club. Now a majority of our large enterprise software companies are approaching those petabyte volumes. So it's important to be able to run those analytics at that scale and that volume. The other thing we've been seeing from some of our partners is really putting that analytics to use with visualizations. So one of the customers that's going to be presenting as part of the Vertica Big Data conferences is Domo. Domo has a really nice stout demo around be able to track the Coronavirus the outbreak and how we're getting care and things like that in a visual manner you're seeing more of those. Well, Domo embeds Vertica, right. So that's another customer of ours. So think of Vertica is that embedded analytical engine to support those visualizations so that just anyone in the world can track this. And hopefully as we see over time, cases go down we overcome this. >> Talk a little bit more about that. Because again, the BDC has always been engineers presenting to audiences, you guys have a lot of you just mentioned the demo by Domo, you have a lot of brand names that we've interviewed on theCUBE before, but maybe you could talk a little bit more about some of the customers that are going to be speaking at the virtual event, and what people can expect. >> Sure, yeah, absolutely. So we've got Uber that's presenting just a quick fact around Uber. Really, the analytical data warehouse is all Vertica, right. And it works very closely with Open Source or what have you. Just to quick stat on on Uber, 14 million rides per day, what Uber is able to do is connect the riders with the drivers so that they can determine the appropriate pricing. So Uber is going to be a great session that everyone will want to tune in on that. Others like the Trade Desk, right massive Ad Tech company 10 billion ad auctions daily, it may even be per second or per minute, the amount of scale and analytical volume that they have, that they are running the queries across, it can really only be accomplished with a few platforms in the world and that's Vertica that's another a hot one is with the Trade Desk. Philips is going to be presenting IoT analytical workloads we're seeing more and more of those across not only telematics, which you would expect within automotive, but predictive maintenance that cuts across all the original manufacturers and Philips has got a long history of being able to handle sensor data to be able to apply to those business cases where you can improve customer satisfaction and lower costs related to services. So around their MRI machines and predictive maintenance initiative, again, Vertica is kind of that heartbeat, that analytical platform that's driving those initiatives So list goes on and on. Again, the conversation is going to continue with the Data Disruptors in the Under Hood webcast series. Any customers that weren't able to present and we had a few that just weren't able to do it, they've already signed up for future months. So we're already booked out six months out more and more customer stories you're going to hear from Vertica.com. >> Awesome, and we're going to be sharing some of those on theCUBE as well, the BDC it's always been intimate event, one of my favorites, a lot of substance and I'm sure the online version, the virtual digital version is going to be the same. Jeff Healey, thanks so much for coming on theCUBE and give us a little preview of what we can expect at the Vertica BDC 2020. >> You bet. >> Thank you. >> Yeah, Dave, thanks to you and the whole CUBE team. Appreciate it >> Alright, and thank you for watching everybody. Keep it right here for all the coverage of the virtual Big Data conference 2020. You're watching theCUBE. I'm Dave Vellante, we'll see you soon