>>Welcome back here on the Cube. I'm John Walls. We are in Las Vegas at the Venetian, and this is Reinvent 22 in the Executive Summit sponsored by Accenture. Glad to have you with us here as we continue our conversations. I'm joined by Paul Puckett, who's the former director of the Enterprise Cloud Management Services at the US Army. Paul, good to see you sir. Hey, you as well, John. Thank you. And Justin, she who is managing director and cloud go to market lead at Accenture Federal Services. Justin, good morning to you. Good morning, John. Yeah, glad to have you both here on the cube. First time too, I believe, right? Yes sir. Well, welcome. I wish we had some kind of baptism or indoctrination, but I'll see what I can come up with in the next 10 minutes for you. Let's talk about the Army, Paul. So enterprise cloud management, US Army. You know, I can't imagine the scale we're talking about here. I can't imagine the solutions we're talking about. I can't imagine the users we're talking about. Just for our folks at home, paint the picture a little bit of what kind of landscape it is that you have to cover with that kind of title. >>Sure. The United States Army, about 1.4 million people. Obviously a global organization responsible for protecting and defending the United States as part of our sister services in the Department of Defense. And scale often comes up a lot, right? And we talk about any capability to your solution for the United States Army scale is the, the number one thing, but oftentimes people overlook quality first. And actually when you think of the partnership between the Army and Accenture Federal, we thought a lot when it came to establishing the enterprise Cloud management agency that we wanted to deliver quality first when it came to adopting cloud computing and then scale that quality and not so much be afraid of the, the scale of the army and the size that forces us to make bad decisions. Cuz we wanted to make sure that we proved that there was opportunity and value in the cloud first, and then we wanted to truly scale that. And so no doubt, an immense challenge. The organization's been around for now three years, but I think that we've established irreversible momentum when it comes to modernization, leveraging cloud computing >>For the army. So let's back up. You kind of threw it in there, the ecma. So this agency was, was your a collaboration, right? To create from the ground up and it's in three years in existence. So let's just talk about that. What went into that thinking? What went into the planning and then how did you actually get it up and run into the extent that it is today? >>Sure. Well, it was once the enterprise cloud management office. It was a directorate within the, the CIO G six of the United States Army. So at the headquarters, the army, the chief information Officer, and the G six, which is essentially the military arm for all IT capability were once a joint's organization and the ECMO was created to catalyze the adoption of cloud computing. The army had actually been on a, a cloud adoption journey for many years, but there wasn't a lot of value that was actually derived. And so they created the ecma, well, the ECMO at the time brought me in as the director. And so we were responsible for establishing the new strategy for the adoption of cloud. One of the components of that strategy was essentially we needed an opportunity to be able to buy cloud services at scale. And this was part of our buy secure and build model that we had in place. And so part of the buy piece, we put an acquisition strategy together around how we wanted to buy cloud at scale. We called it the cloud account management optimization. OTA >>Just rolls right off the >>Tongue, it just rolls right off the tongue. And for those that love acronyms, camo, >>Which I liked it when I was say cama, I loved that. That was, that was, >>You always have to have like a tundra, a little >>Piece of that. Very good. It was good. >>But at the time it was novetta, no, Nevada's been bought up by afs, but Novea won that agreement. And so we've had this partnership in place now for just about a year and a half for buying cloud computing net scale. >>So let's talk about, about what you deal with on, on the federal services side here, Justin, in terms of the army. So obviously governance, a major issue, compliance, a major issue, security, you know, paramount importance and all that STEM leads up to quality that Paul was talking about. So when you were looking at this and keeping all those factors in, in your mind, right? I mean, how many, like, oh my God, what kind of days did you have? Oh, well, because this was a handful. >>Well, it was, but you could see when we were responding to the acquisition that it was really, you know, forward thinking and forward leaning in terms of how they thought about cloud acquisition and cloud governance and cloud management. And it's really kind of a sleepy area like cloud account acquisition. Everyone's like, oh, it's easy to get in the cloud, you know, run your credit card on Amazon and you're in, in 30 seconds or less. That's really not the case inside the federal government, whether it's the army, the Air Force or whoever, right? Those, those are, they're real challenges in procuring and acquiring cloud. And so it was clear from, you know, Paul's office that they understood those challenges and we were excited to really meet them with them. >>And, and how, I guess from an institutional perspective, before this was right, I I assume very protective, very tight cloistered, right? You, you, in terms of being open to or, or a more open environment, there might have been some pushback was they're not. Right? So dealing with that, what did you find that to be the case? Well, so >>There's kind of a few pieces to unpacking that. There's a lot of fear in trepidation around something you don't understand, right? And so part of it is the teaching and training and the, and the capability and the opportunity in the cloud and the ability to be exceptionally secure when it comes to no doubt, the sensitivity of the information of the Department of Defense, but also from an action acquisition strategy perspective, more from a financial perspective, the DOD is accustomed to buying hardware. We make these big bets of these big things to, to live in today's centers. And so when we talk about consuming cloud as a utility, there's a lot of fear there as well, because they don't really understand how to kind of pay for something by the drink, if you will, because it incentivizes them to be more efficient with their utilization of resources. >>But when you look at the budgeting process of the d od, there really is not that much of incentive for efficiency. The p PPE process, the planning program, budgeting, execution, they care about execution, which is spending money and you can spend a lot of money in the cloud, right? But how are you actually utilizing that? And so what we wanted to do is create that feedback loop and so the utilization is actually fed into our financial systems that help us then estimate into the future. And that's the capability that we partnered with AFS on is establishing the closing of that feedback loop. So now we can actually optimize our utilization of the cloud. And that's actually driving better incentives in the PPE >>Process. You know, when you think about these keywords here, modernized, digitized, data driven, so on, so forth, I, I don't think a lot of people might connect that to the US government in general just because of, you know, it's a large intentionally slow moving bureaucratic machine, right? Is that fair to characterize it that way? It >>Is, but not in this case. Right? So what we done, >>You you totally juxtapose that. Yeah. >>Yeah. So what we've done is we've really enabled data driven decision making as it relates to cloud accounts and cloud governance. And so we have a, a tool called Cloud Tracker. We deployed for the army at a number of different classifications, and you get a full 360 view of all of your cloud utilization and cloud spend, you know, really up to date within 24 hours of it occurring, right? And there a lot of folks, you know, they didn't never went into the console, they never looked at what they were spending in cloud previously. And so now you just go to a simple web portal and see the entire entirety of the army cloud spend right there at your fingertips. So that really enables like better decision making in terms of like purchasing savings plans and reserved instances and other sorts of AWS specific tools to help you save money. >>So Paul, tell me about Cloud Tracker then. Yeah, I mean from the client side then, can you just say this dashboard lays it out for you right? In great detail about what kind of usage, what kind of efficiencies I assume Yeah. What's working, what's not? >>Absolutely. Well, and, and I think a few things to unpack that's really important here is listen, any cloud service provider has a concept. You can see what you're actually spending. But when it comes to money in the United States government, there are different colors of money. There's regulations when it comes to how money is identified for different capabilities or incentives. And you've gotta be very explicit in how you track and how you spend that money from an auditability perspective. Beyond that, there is a move when it comes to the technology business management, which is the actual labeling of what we actually spend money on for different services or labor or software. And what Cloud Tracker allows us to do is speak the language of the different colors of money. It allows us to also get very fine grain in the actual analysis of, from a TBM perspective, what we're spending on. >>But then also it has real time hooks into our financial systems for execution. And so what that really does for us is it allows us to complete the picture, not just be able to see our spend in the cloud, but also be able to able to see that spending context of all things in the P P P E process as well as the execution process that then really empowers the government to make better investments. And all we're seeing is either cost avoidance or cost savings simply because we're able to close that loop, like I said. Yep. And then we're able to redirect those funds, retag them, remove them through our actual financial office within the headquarters of the army, and be able to repurpose that to other modernization efforts that Congress is essentially asking us to invest >>In. Right. So you know how much money you have, basically. Exactly. Right. You know how much you've already spent, you know how you're spending it, and now you how much you have left, >>You can provide a reliable forecast for your spend. >>Right. You know, hey, we're, we're halfway through this quarter, we're halfway through the, the fiscal year, whatever the case might be. >>Exactly. And the focus on expenditures, you know, the government rates you on, you know, how much have you spent, right? So you have a clear total transparency into what you're going to spend through the rest of the fiscal. Sure. >>All right. Let's just talk about the relationship quickly then about going forward then in terms of federal services and then what on, on the, the US Army side. I mean, what now you've laid this great groundwork, right? You have a really solid foundation where now what next? >>We wanna be all things cloud to the army. I mean, we think there's tremendous opportunity to really aid the modernization efforts and governance across the holistic part of the army. So, you know, we just, we want to, we wanna do it all with the Army as much as we can. It's, it's, it's a fantastic >>Opportunity. Yeah. AFS is, is in a very kind of a strategic role. So as part of the ecma, we own the greater strategy and execution for adoption of cloud on behalf of the entire army. Now, when it comes to delivery of individual capabilities for mission here and there, that's all specific to system owners and different organizations. AFS plays a different role in this instance where they're able to more facilitate the greater strategy on the financial side of the house. And what we've done is we've proven the ability to adopt cloud as a utility rather than this fixed thing, kind of predict the future, spend a whole bunch of money and never use the resource. We're seeing the efficiency for the actual utilization of cloud as a utility. This actually came out as one of the previous NDAs. And so how we actually address nda, I believe it was 2018 in the adoption of cloud as a utility, really is now cornerstone of modernization across all of the do d and really feeds into the Jo Warfighting cloud capability, major acquisition on behalf of all of the D O D to establish buying cloud as just a common service for everyone. >>And so we've been fortunate to inform that team of some of our lessons learned, but when it comes to the partnership, we just see camo moving into production. We've been live for now a year and a half. And so there's another two and a half years of runway there. And then AFS also plays a strategic role at part of our cloud enablement division, which is essentially back to that teaching part, helping the Army understand the opportunity of cloud computing, align the architectures to actually leverage those resources and then deliver capabilities that save soldier's >>Lives. Well, you know, we've, we've always known that the Army does its best work on the ground, and you've done all this groundwork for the military, so I'm not surprised, right? It's, it's a winning formula. Thanks to both of you for being with us here in the executive summit. Great conversation. Awesome. Thanks for having us. A good deal. All right. Thank you. All right. You are watching the executive summit sponsored by Accenture here at Reinvent 22, and you're catching it all on the cube, the leader in high tech coverage.

this one minute I'm here with my co-host Jeff Frick who we just fresh off of the AWS summit the Amazon event Jeff and I covered that and we're here at knowledge 13 now this conference is all about the notion of going from IT as a service organization changing high teas mantra from no to now that really is the theme of this conference and we're here with Frank's luton who's the president and CEO of service now Frank welcome back to the cube thanks good to be here that's good to see you again we had you on that vm world is great story when we first introduced service now to our community you just fresh off the keynote fantastic keynote by the way thank you you had strong themes i mentioned the from no to now you talked about itu gave a little little tongue-in-cheek joke about the line outside the the rmv the Registry of Motor Vehicles and that's sort of the the idea is you guys are transforming IT from an organization that is trying to manage demand push off demand saying no we'll get it in six months it'll cost you five million dollars to one that really is redesigning IT processes around the globe so first of all welcome back congratulations how do you feel after that keynote I have to work a lot of energy in that room and it was electrifying it was awesome well one of the one of the guys in the panel stopped when you had asking the question I think was the guy from NY yes he said even stop you looked at the audience said i love this crowd that was a great crowd we gave a little goop out to the audience so talk about from know to now how'd you come up with that theme and you know give us a little color behind you know it's it's actually not easy for for us to communicate about service now desk to to lay people in sight unless you have lived in sight I t you just most people don't even know what I t really does on the day-to-day basis right so we've lived a fairly insular existence because you know everybody knows what sales people do and to some degree about HR doesn't finance people but I t it's a bit of a you know a bit of a mystery to what most folks do right but most people do know however is that the service experience with IT has been and challenging what's all we say I mean it's been you know sort of a service experience where if you have to ask the answer was going to be no right because IT organizations have been super preoccupied with infrastructure rapid change in the infrastructure for the last 30 40 years nothing ever set still long enough for us to really master the architecture and the platforms are really stabilizing mature our systems and they have to keep moving so you get pretty cranky it's back to your organization having to live that kind of life so their their their reputation for service has not been stellar and I love making the joke during the keynote their ranking right down there with legal in the basement you know of the corporate enterprise you know so well so talk a little bit about sort of how you guys you know go into an organism's you start with the IT organization right in helping them sort of automated processes connect all these different processes but you've been through your platform expanding out to other parts of the organization the irony is that I T which is the most technology savvy organization in the price as the least management sophistication in terms of managing their own activity which you know I duck to the CIO of a very large consumer gets company he said where does she make her son it's inexcusable right here here we are running milk that going in dollar budgets and staffs with tens of thousands of people and we're running it on spreadsheets email excel project management tools this is ridiculous right we don't have real information in near real time and show that we can drive our business as opposed to being driven by it right i key executives have a tendency to run from one crisis to another with their hair on fire and that's sort of the mental model and a note of now message is about out of a get these people out of this you know reactive crisis mode to where they become full-blown business partners and they start you know bring your guide to enterprise and in a very transformative way or they become the people that bring innovation to the enterprise you know here's so much Frank about shadow I teach my colleague Jeff Frick and I were at the AWS some of the few weeks and you see a lot of these cloud companies you mentioned your keynote Salesforce the salespeople workday talk to HR people they sort n run IT certainly amazon is the poster child for shadow IT but you know Jeff we have that sort of notion where IT people are not the center of the new cloud universe but that's different for service now yes it's very different but the other thing brought up amazon your keynote and how they've kind of fine what kind of a user expectation experiences with an application on the web a level of service a level of delivery and then you've got AWS its kind of the girl child of shadow IT but you guys are coming in really as the enabler to let the internal IT guys actually have the tools to compete with with guys trying to go around it really exact with delivery platform I mean we're trying to turn the tables here right because the entire history of IT is one big end around righty the many computer was an end-around of the glasshouse client-server was really pcs you know dribbling into departmental environments suffer as a service was an incredible end around people in there didn't realize it was seeping into the enterprise right now things like 80 lbs now infrastructure right is actually finding its way so we're saying look you know worthy Enterprise IT cloud company right we are going to empower and enable IT to be driving rather than just being driven and being taken over and run over by by events because that's what's been happening here's the goodness IT can start withdrawing and getting out of the business of infrastructure which is what they've been doing forever infrastructure is very challenging pretty soon that's going to be somebody else's problem right infrastructure goes behind the cooking all you have to do is in network connection so that means that the role of IT is moving from you know keeping the lights on to you know we're going to be the people who are experts at defining structuring and automating service relationships and so does relationship management I mean at this and I make a joke about you know your hole in the inbox of email you know it's full of basically service relationships that are unstructured and unlimited and undefined right right and there is this incredible opportunity to go aptet with record-keeping workflow systems and that's what we want to enable and empower IT to do right we had to give you a quick example actually very interesting we talked to our one of our very large retail customers and the supply chain office unbeknownst to us went to IT and said hey we want to build this app what should we use and Ikey said no you should try and do that on service now what's the app a supply chain office in a retail environment what they do is they take requests all day long stores distribution centers suppliers and they're rebalancing you know product right place right time right right product and they were doing that everybody running spreadsheets and emails and people constantly calling what's the update on my request and they decide no we're going to go to a record-keeping workflow system and from the moment you know they started using that system all of a sudden they had full visibility to a what the volume was of issues that was coming in but the nature of the volume was how well they were doing on their SOS relative to their storage and distribution centers and they were able to structurally go after you know the things that were a constant them grief because they just didn't know right so very simply in very short period of time you know they transformed themselves from the supply chain all those Devils running around like a chicken with his head cut off the people that were actually driving to supply chain now now supply chain management in the retail organization it's super mission-critical right because their results are directly impacted by having right product right time right place simple example where we moving from email and Excel to a record-keeping workflow system any impact with literally within 30 40 days is enormous yeah you hear that a lot of people just using Excel using email we talked to we talking some customers last night we talked to some perspective customers that were in so to check it out and they were big Lotus no shop and is describing sort of the difficulties and challenges of it you will sign them up I can almost see it but the other thing so so this notion of your customer base is very powerful in fact I tweeted out I said the service now has a sick logo basis and we said is that a typo said no sick like that sick touchdown catch it isn't good yeah sick is it good but I mean which I we hear from land o lakes Red Hat metropcs KPM nor Brent I mean just on and on and on at Facebook Intel google or customers what are some other favorite customer stories you hear a lot of the same themes Frank you know we used to use spreadsheets with using email or reliant on all these disparate processes bringing them all together getting some some other you know favorite stories of yours for customers I I relayed a bunch of him on stage this morning right beasties it's just extraordinary to me the the corporate America I mean you mentioned some of them but you know the people we had on stage you know AIG you know coca-cola company's general electric demand this is United States Army right and they owe is yeah New York Stock Exchange eli lilly big pharmaceuticals bristol-myers squibb they all have the same set of issues they have a completely fractured fragmented sprawled acti environment right and here's the interesting history we have not had CIOs that long you know I T used to report into a division next sag or a regional exact and there really wasn't one person that was responsible for running IT throughout the global enterprise because it was just a decentralized function by the way example when you in Europe yeah I ray mighty and I certainly wasn't IT guy stuff and by the way it wasn't my priority either you know it was just by the way that's for some of the history you know comes from so CIO comes in and they are now charged with you're going to run this thing they're not running anything they're being run by it right so until you get to global IT processes I mean City another you know big name they set to as rogue global bank that we don't have global IT right it is the inefficiency and the lack of ability to drive and manage is unacceptable for these very sophisticated large institutions it's embarrassing really you know yeah I mean you really can't go global as a come you can't scale your business not having all these surprises so to me it's about global scaling and it's about the business value of both having ITB accountable but also have the metrics and the visibility to be able to demonstrate the value to the organization you see i SAT with our executive sponsor from bristol-myers squibb last night and she said i got data and i got it in real time and i know it's good so I'm not putting my service providers on their heels you know before they were you know everything was you know in the realm of you know interpretation and fuzzy fuzzy right and now it's like I have data and I'm driving and I'm changing behavior right so the empowering effective it has mighty organizations it's just stomach right I thought that empowering note that came up in your keynote was interesting how the IT organizations themselves and their presentation now to their internal customers are looking more like a company you know they're they're being cute there yeah I'm taking branding they're there they're not just button pushers in and as you said you know infrastructure operators they are trying to be contributors to the business and keeping some this automobile shade of nail them to it's even stronger than now yes they want to be contributors to the business but they want to be the playmakers they wanted me to go to guys give me the ball you know that that's where we want to you know take itt there that people that really understand how to change how work gets done the enterprise I thought you characterize the dwelling experience in IT people have been running from crisis to crisis and they need to be more proactive so talk about how your system allows them to be more proactive well it's all about going from a message oriented environment to a system or an a message or environment is the one way l know it's email it's text you know it's voice right that doesn't work because you know we're just talking right systems have the ability to drive behavior because you know every time you send an email you should think to yourself could i create a service request instead right because a service request has a defined data ship it goes into a database it gets assigned you know in a workflow operation it has metrics around it if it doesn't get responded to a certain amount of time it gets accelerated to the escalator to the next level or management right so the process is defined structure to automate it is going to run its course right whether you know people are participating in it or not with this great example one of our customers equinix delilah or Brian Lily's here actually is a CIO and he said they will sell funny you know we have a system that all my life cycle application where our developers check-in fixes and enhancement to a particular software release for an application and he says because they know to work flows is completely structured an automated everybody knows that they don't get their fixes enhancement in by a certain time poof the dashboards pop the higher-ups see you know who's behind and who's not and that the threat alone of the transparency and visibility that the process introduces causes everybody there run harder right so people won't have to run around with the whip like where are you you know the process is driving is like a hamster on a treadmill you know so Freki used amazon as an example of the user experience that you know you covet as a CEO of this company and you believe you're your customer base desires at the back end also when you talk about companies like Amazon and Facebook and Google they are super highly automated you also talked about lights out automation yeah now normally IT organizations are managed now they're managed by humans they're not highly automated are you are you seeing your customers able to get to that sort of vision that you're talking about that lights-out automation almost like the hyperscale guys you know it's a super important custody I said during the cleanup or were overstaffed and under automated NIT we have reams of people on staff any large financial institutions have tens of thousands of people on staff they're bigger than any technology company right why is that it's because things are very laborious laborious and manual right the processes that they run require so many touch points I mean one of the things that we always tell our customers when you can reimplement these processes do not take your legacy forward because your legacy is very manual you remember the inbox in the outbox when we have physical in boxes and other boxes and now we know we have our laptop why do we have an inbox and outbox right does this message really this cross why are you even involved in this process right so we have to invert the process it's not like wouldn't it be nice for you to be involved in this process there'd better be a very good reason for you to touch this process because the moment you touch it you know we're going from the speed of light to you know the speed of the dirt road that Franco so service now is really in a rocket ship right now and you've demonstrated you've got a track record of being able to be sometimes call jump three myself throwing gasoline on the fire you look very good at that you got 1,600 customers you're growing like crazy but you're under penetrated in your target which is the global 2000 you're only fourteen percent penetrated in the global 2000 so get a long way to go in this journey we're very excited to be you know covering this event really appreciate you guys having us here Frank's loot Minh will give you the last word and then we'll wrap you know this is actually one of the great things that we are so on the front hood and they're penetrated because our investors are like wow you've got a lot of runway you know considering the size company that we we already are and you know the rate of monetization of our business is is extraordinarily I in other words the share of wallet that service now represents and the enterprise is so much larger than people had ever considered or thought because it was not an existing category that was fully metastasized and visible it's new it's emergent it is really transforming how people you know look at technology and process automation and so on now we're gonna be here all week covering knowledge we've got it we're going to double-click on so how is it that service now is able to deliver this cloud functionality the secret is in the single system of record the CMDB and that is not a trivial thing to do we didn't talk about that with Frankie could talk about it but we don't want to steal you know the name of thunder yeah fred muddies going to be on RNA Justin who's the CTO we're going to go deep into sort of how service now actually accomplishes this architecture Lee what their vision is so Frank thanks very much for spending so much time I know you're busy you got to run but appreciate you coming on terrific thanks for having me alright thanks for watching everybody keep it right there we'll be right back with more we're live from Las Vegas ServiceNow knowledge we'll be right back this is the Q cute baby rock and roll