(upbeat music) >> Welcome back to Fal.Con 22. We're here at the ARIA hotel in Las Vegas. We're here in Las Vegas, a lot. Dave Nicholson, Dave Alante. Fal.Con 22, wall to wall coverage, you're watching theCUBE. Anthony Kunya is here. He's the chief information security officer at Mercury Financial. And he's joined by his deputy CISO, Alex Arengo. Welcome, gentlemen. >> Good to see you. >> Thank you very much. Good to be here. Thank you for the opportunity to speak. >> Yeah, so this is a great event. This is our first time being at the, a CrowdStrike customer event. We do a lot of security shows, but this is really intimate. We got a high flying company. Tell us first about, of Mercury Financial. What are you guys all about? >> Oh, that's a fantastic question. Let's leeway into that. So Mercury Financial is a credit card company that serves people who are near prime. So be it some kind of hardship in their life. They had something impacted, be a financial impact, maybe a medical impact, an emergency, something, a death family where somehow their credit was impacted. We give 'em the opportunity through our motto, better credit, better life, to build up that credit score to add livelihood to their ability to be financially stable. >> I mean, I think this is huge because you know, so many people it's like, okay, one strike and you're out. >> Right. >> You know, that's just not right. You got- >> No, not at all. >> You got to give people another chance. And so there's so much talent out there. I think about some of the mistakes I made, Dave, when I was a younger man, but- >> No comment. >> Right. So I heard a stat today that I thought was great. Did you guys see the keynote? >> Yes. >> Of course. >> So in the keynote, the, they did the thing at Black Hat but they said what's XDR and I thought- Anthony] Oh goodness. >> My favorite, and I'm not going to ask you what XDR is. >> Okay, good, thank God. >> But my favorite answer was a holistic approach to endpoint security. And, you know, I think as a CISO you have to take a holistic approach to a security- >> Of course. >> Okay. >> Maybe talk about, a little bit about how you do that. >> Wow, a holistic approach I would say and I could, I'll give you an opportunity to speak as well, but a holistic approach it's people processes in technology. So a holistic approach would be, it isn't one box that you check. It's not a technology that is a silver bullet that fixes anything. Those technologies, those services are implemented by people. So good training, our human firewall, the forefront of implementing those technologies to build those processes and incorporate people and a level of sincerity and integrity that we build. So I feel like a holistic approach is both cyber culture to build the cyber resilience program that we so dearly need. >> And I could spend all day talking about security organizations, SecOps, DevSecOps, data SecOps, et cetera, but, but Alex, how, what is your role as the deputy CISO? How do you compliment what Anthony does? >> I got to bring it all together, right? So technically, what are we putting in place? What are the requirements that these stakeholders have? Their needs, their wants. We all have something that we need and want in our environment as an employee, as a customer, as a stakeholder. How do do we get that to market? How can we get it there quickly? You know, and it's really about finding the partners that can get us there, right? That can leverage us, that can force multiply us. >> Yes. >> You know, give my people more time to get the work done, the good work. >> Right, the hard work, of course. >> So paint a picture. You know, we hear a lot about all the different, the bevy of tools, the, how complicated CISOs tell us all the time, that we just don't have enough talent. We're looking for partners to help us compromise, but paint a picture of your environment and how you guys use CrowdStrike. >> Oh, that's a good one. Do you want to take this one? >> Great one, right? I mean, we leverage CrowdStrike at every way we can. We're a Fal.Con complete customer. So they're an extension of our team. They're an extension of our SOC right? >> Yeah. >> We leverage them for many things. We leverage them to understand the risk in our environment. Where we're at in zero trust. How we can really bring a lot of the new processes that the business wants to market, right? How can we get there as fast as possible? Can we make it secure, right? I'm a Mercury card customer also. So I'm, I have a vested interested in that. And I like to drive that, that's, so it comes down to can you align your holistic approach, or your organizational goals and bring that to a really good security product that is world class? >> And I can add a little bit to that as well. So I look at it as a triangle. So we leverage Fal.Con complete as that first level, tier one triage, people who do and understand the product extremely well, we leverage them quite a bit. We also have a VSOC service that we have this like, consider tier two or the middle of the triangle, by Verse, right? >> Yeah. >> Fantastic boutique security company that just has been working with us year over year, innovation, strategic initiatives, always there to play. And then Alex Arengo, and the threat management team, is our top tier, that's tier three, that's the top of the pyramid. By the time it bubbles up to Alex, that's when the real work happens, everyone's triaging, collecting data, putting together pieces. And then Alex and his teammates, and people that he's trained, fantastic, comes and puts it all together and paints a picture so we can then take that information and describe it in layman's terms, simple terms, to the business, to make them understand the level of risk, what we have to do to get to, and through that attack, or that indication of compromise, et cetera, so that we can remediate it, rectify it. >> Right, it's building that security culture foundation, right? It's getting everyone to buy into that. >> Yeah. >> It's a holistic approach and it's really the best way to do it, right? You get bought in from the stakeholders understand what they need to do, and what the goals of the business are. And it really works really well >> We journey together. >> We build a program together. >> Dave, I think that that cultural aspect is critical. Cause I've said many times, bad user behavior trumps good security every time. >> Yeah, absolutely. >> Oh goodness. >> Every time. >> Nicely put, I like that. >> So, I know we're early in the week still, but we did have the keynote. Is there anything that you are hearing, in terms of vision, that peaks your interest specifically, and then also sort of the follow up question is, are you guys kind of like lifeguards who can't ever relax at the beach? >> That's why I have a deputy CISO. Well, nobody can take time off, we have to share this. Of course we do. Most definitely. What would you say would be the next, most innovative thing that were looking for? >> Yeah, what's the next big thing, as far as you're concerned? >> The next biggest thing is definitely building the relationships we have. As we bring in new technologies, we go even more Cloud native. How do we leverage that expertise, that of the partners that we're bringing on board like Zscaler, CrowdStrike, Verse, right? How do we make them a part of the team, and make them perform, bring that world class quality talent across the spectrum, you know, from DevOps to that security analyst, picking up the phone and saying, I'm not really sure what's going on, but there's a culture that's built there where everybody comes to the table to feed, right? We all eat together. >> The ecosystem. >> Yes. >> That is the tooling that we leverage day in and day out. That's how we sleep at night. We have to pick our partners. >> You know, we talked about the ecosystem up front, and you look around, you can see the ecosystem and it's growing. >> Yes. >> And I predict it's going to grow a lot more. >> Yes. >> That's, and it has to, right? I mean, exactly what you're saying is that no one company can do it alone. And we heard, you know, we heard, it is confusing. You hear CrowdStrike's doing Identity, but then they partner with Okta. Right, and they're here out on the floor. So that's what you guys need. Talk a little bit more about the importance of ecosystem and partnerships from your perspective. >> Oh I got a good one for this. So I use the metaphor of having a restaurant. So we run a restaurant really well. We know what we want in the menu. We have a chef, we know how we want to put together, but we need excellent ingredients. You make muffins well. Bring your muffin into the restaurant. That brings and builds that rapport. That I want the menu to be rich and empower people to come in and say, you know, I've never had scallops or octopus before, I hear you guys make it better than anyone else, well, our ingredients are fantastic. Therefore, no matter what we do when we present it, it's perfect, it's palatable. >> Yeah. That's great. You're not making ice cream, but you're serving it. >> I can't, if you ever want to show us. >> We're just converging our bakery, you know? >> Yeah, yeah, yeah, salt, salt is the key. >> We're just working the bakery part out, yeah. >> Okay, I want to ask you about Cloud because you know, in 2010, 2011, when you talk to a financial services firm, Cloud, no, that's an evil word, now everybody's Cloud first. George Kurts talks about how, I mean essentially CrowdStrike is dogmatic. We are Cloud native. We have a Cloud native architecture. I know Gartner has this term CNAP or Cloud native application platform. So what does the Cloud mean to you guys? How does it fit in? What does Cloud native architecture do for you? >> It lets us converge everything we've been talking about. How do we, you know, that's a really big struggle that all security teams are having at, having today. How do I converge threat intelligence? How do I converge the environment that I'm in? How do I converge the threat intel that's coming in, right? All this, you're getting, security teams are constantly on a swivel, right? They're looking left, they're looking right. They're trying to identify what to do first. And you bring in the right partners. >> Yes. >> And you get in, you build the right program. You cement that culture internally. And it really provides dividends. >> You know what I think as well, Dave, is in the past, everyone was more data center based. >> Right. >> The Cloud was like a thing we'd forklift, we'd move over, we were born in the Cloud. So Cloud native Application protection is something that we need and will drive innovation. Will align with our strategic initiatives. We need people to think like the Cloud is what's happening. Super Cloud, some of the things that we spoke about. >> Yeah, so I was at, when we were at reinforced, I had this new mental model emerge, and it sort of hit me in the face. And you tell me, I'd love to talk to practitioners to say, yeah, that makes sense or, no, that's crap. So it seems like the Cloud has become the first line of defense for CISOs. Now you're Cloud first or Cloud native, so, okay. But then now you've got the shared responsibility model. And I don't know if you use multiple Clouds. Do you use multiple Clouds? >> We cannot say. >> Cannot say, okay, let's assume for a second, your, some of your colleagues, CISO colleagues, use multiple Clouds. >> They should, okay, sure. >> Now they've got multiple shared responsibility models. Now you've got also the application development team. They're being asked to be the pivot point to actually execute, they got to secure the platform. They got to secure the containers, their run time. >> Workloads, yes. >> And then you got audit behind you is kind of the last line of defense. So things are shifting. Describe sort of the organizational dynamic that you see, not necessarily specific to Mercury Financial, or that would be cool, but generally in the industry. >> Oh, I would say, I could say this, that having Cloud, multitenancy Cloud or the super Cloud model where we could abstract our services our protection, the different levels of security tooling, being able to abstract and speak a common language where you could run in Azure, GCP or AWS, and still have a common language that you can interpret and leverage between all the tooling would be something I would love to see. >> That's Super Cloud >> A magical, that is that. >> That is a Cloud interpreter essentially. >> I think we use different words, but yes. >> A PAs layer, super PAs layer, sorry to take it too far. >> Yeah, like, I want to be able to abstract it and speak a language that would work in any of the- >> What does that do for you as a technology practitioner? >> Well, imagine if you had to speak three different languages with three different people, get lost in translation. If we could speak a common language across all the different platforms and all the different footprints, it would be easier to define our security posture. Where are we? Are we secure? You might say security groups in AWS, it might be, mean something else, but it's still a level of protection that surrounds the end point, right? Something that would abstract that level would be very fun. Very good for me. >> It's, you know, it's pretty easy to understand your use case for this. When you're talking about here we are, Mercury Financial, you have the most sensitive financial information about people, right? >> Right, absolutely. >> A data breach where all of the information about your customers getting out there on the dark web. Right? Heart attack time. >> Instantly. >> What are some things that people might not think about though, that are going on in your world? What would surprise someone who maybe isn't a security specialist in terms of the things that you're dealing with as far as threats are concerned? >> I'm going to leave that on you. >> Can you think of some examples of things that you could, you know, obviously generic examples. >> Right. >> Yes. >> I'm going to point to the number one and two most common ways that applications and businesses are getting owned right now. And that's misconfigurations on your web app or a vulnerable application or phishing. And those are both very important things, right? A lot of development teams, they want to get things to market as soon as possible. And maybe security's on the back foot. It's about building that culture and to, you know, being Cloud native helps you have a, you can provide different tool sets to your organization that helps you understand that posture and makes you help those business decisions. Are we in a good posture to go forward right now? That's a big question that I think most security organizations need to ask themselves and the need to hold other stakeholders accountable. >> So phishing and the concept of social engineering, still alive and well? >> Oh, goodness. >> Always. >> Everything starts with people. The human firewall has to be front of mind. Security can't be an afterthought or a bolt on, that's something that you think about, well, I guess if I have to meet our compliance, it doesn't work with us. >> Comes back to the culture that you're actually talking about before. >> 100%, yeah, cyber resiliency starts with cyber culture. >> Kevin Mandy has said it today. I, never underestimate the adversary. The adversary- >> Of course. >> Is highly capable, motivated, big ROI and it just keeps getting bigger. The more technology gets embedded into our lives. The more lucrative hacking becomes. >> And more attack vectors. We have more areas that we could be potentially penetrated. >> They have a lot of time. Those threat actors have a lot of time. >> They do have a lot of time, yeah. >> Right. >> Right and to your point, you're constantly on the swivel. Right, you don't have time. >> Right. >> No, we don't. >> So do your responsibilities touch on things like fraud detection as well? >> Yeah, oh, that- >> Is that a silly question? I'm thinking- >> Yeah, no, it really is, so- >> No, not at all. >> Or there isn't segregation between what we would think of as IT and the credit card transaction that fires up a red flag. >> Those are integrated. >> It's definitely important. And in any business, right? Is to, like I mentioned, I use this word a lot converge, right? It's converging that intel, that fraud intelligence and making it into a process where we're reducing the risk and the losses that the business is incurring. >> Yes. >> It's so important, right? That we build that culture within the fraud teams, the operational teams, the, you know really anybody who has a really large stake in whatever the business product is. And, you know, being Cloud native, bringing in the right partners, building that security culture. I mean, that's the biggest one. >> Yeah, we've flown. >> It's last and definitely not least, it is, the culture's where you need to be. >> Absolutely. >> You know, you guys, I'm sure, you know, work with a lot of different vendors, a lot of tools, or sometimes the tools are point tools, they're best to breed. CrowdStrike says it wants to be a generational company. >> Oh, yeah. >> It says this notion of an unstoppable breach is a myth. You guys can't live that way. You have to assume you're going to breach but can CrowdStrike be a generational company? >> I think they've proven themselves. They've been around over a decade now. it's 11 years. They just had their birthday yesterday, right? >> Yeah. >> Or anniversary, the company started? >> Yeah. 11 years, yeah. >> I absolutely, and I also agree to add it a little bit part, from the fraud part. I think CrowdStrike would be an integral piece of the overall solution that we have. It hits so many different aspects and looks at so many different potential attack vectors. I keep using that word, but I think integrating fraud in other parts and other functions of the business will start to see that they can leverage CrowdStrike. That there's tooling within CrowdStrike innovatively, like ahead of the game. And I always like that about CrowdStrike, being way ahead of the game and thinking in front of our adversaries. I think other departments will be like, what tools do you have, how can we use them? This is fantastic, this makes us feel better. We don't have to worry about that. We can focus in on what we're good at and build that best of breed solution. So fraud can focus on fraud and you can leverage the tooling and the infrastructure that we provide them together holistically to build a security program that's beyond reproach. >> Guys, we got to go, great perspectives. Always love having the practitioners on. >> Yeah, thank you. >> I really appreciate your time, thank you. >> Yeah, absolutely, always a pleasure. Thank you so much for your time. >> Anthony, Alex, Dave and Dave will be right back, right after this short break. You're watching theCUBE from Fal.Con 2022 from the ARIA in Las Vegas. >> Cheers my friend. >> Yeah, of course. (cheerful music)

>>Hello. Welcome back to the cubes coverage of splunk.com virtual this year. I'm John ferry, host of the cube. And one of the great reasons of great reasons of being on site with the team here is we have to bring remote guests in real guests from all no stories, too small. We bring people into the cube to have the right conversations. We've got Brooke Cunningham area, VP of global partner marketing experience. Brooke, welcome to the cube. Thanks for coming on. >>Hey, thank you, John. This is my sixth dot conflict, but this is actually my first time being on the cube. So I'm delighted. >>Great to have you on these new hybrid events. We can bring people in. You don't have to be here. All the execs are here, the partners are here. Great news is happening all around the world. You guys just announced a new partner program for the cloud called partner verse program. This is kind of, you know, mostly partner news is okay. Okay. Partner news partner ecosystem. But I think this is an important story because Splunk is kind of going to the next level of scale. That's to me is my observations walking away from the keynote, a lot of the partners, great technology, great platform, a lot of growth with cloud. We had formula one on you guys have a growing ecosystem. What is the new announcement partner versus about? >>Yes. Thanks, John. And you are spot on. We are growing for scale and Splunk's partner ecosystem is 2200 strong and we were so delighted to have so much partner success highlighted today on the keynotes. And specifically we have announced an all new spunk Splunk partner program called the Splunk partner verse. So we're taking it to new frontiers for our partners, really built for the cloud to help our partners lean into those cloud transformations with their customer. >>Great. Fro can you walk me through some of the numbers inside the numbers for a second? How many partners do you have and what is this program about specifically? >>Yeah, so 2200 partners that we featured some amazing stories in the keynotes today, around some of the momentum we have with partners like AWS, a center blue buoyant, a partner that just recently rearchitected all of their managed services from Splunk enterprise to Splunk cloud, because as they put it, Splunk is the only solution that can truly offer that hybrid solution for their customers. So all new goodness for our partners to help them lean in, to get enabled around all of the Splunk products, as well as to differentiate, differentiate their offerings with a new badging system. And we're going to help our partners really take that to the market by extending and expanding our marketing and creating an all new solutions catalog for our partners to differentiate themselves to their customers. >>You mentioned a couple things I want to double down on this badging thing, get in some of the nuances, but I want to just point out that, you know, and get your reaction to this when you see growth. And I saw this early on with AWS early on, when they performing, when you start to see the ecosystem grow like this, you start to see more enablement. You see more, money-making going on more, more, um, custom solutions, more agility you. So you started to see these things develop around you guys. So what does all this badging mean? How what's in it for me as a partner? Like how do I win on this? >>Yeah, great question. So first of all, John partner listening is a big part of what we do here at Splunk. And it's specifically a major part of what I do in my role. So we create a lot of forums to get that real deal partner feedback. What do they need to be successful with their customers? Especially as Splunk continues to expand our portfolio. And we heard some really clear feedback from our partners. Number one, they need more enablement faster, especially all those new products. They really want to get enabled around new product areas like observability, their customers are asking for it. They secondly told us that being able to differentiate themselves to customers was key. And that showing that they had core expertise around specific solution areas, types of services, as well as specializations. For example, some of our partners that are authorized learning partners, they really want it to be able to showcase these skills and differentiate that to their customers in the market. And it's not a role for us at Splunk to really help them do that. And so we took that feedback and really incorporated it into this new program, badging specifically will help to address some of those things I mentioned. So for example, a lot of badging around those use case areas, security, observability, AOD migrations, as well as specializations. Like I mentioned, for things like, uh, partners that are doing, uh, learning specific partners that are really helping us extend our reach in, in different international markets and so on. >>Okay. Let me just ask a question on the badge if you don't mind. Um, so you mentioned, you mentioned almost like you were going through like verticals is badging to be much more about discovery from a client customer, uh, end user customer standpoint. Are you looking to create kind of much more categorical differentiation is what's the, what, what's the purpose of the badge? Cause I noticed it was like different verticals. I heard security and >>Yeah, so I would say it's think of it as both. So for example, our partners go to market with us in many different ways. Some of them are selling servicing building. So there'll be partner motion badges to really differentiate the different ways that they're supporting customers from a go-to-market approach and then additional badging to help really identify some of those specialization areas around whether that's clunky use cases, specializations and more, uh, for example, a specific badge that we're rolling out right here at.com is around cloud migrations and partners will be able to get started to get engaged on that badge in preparation for our full-scale launch in February, we'll, they'll start to be able to take advantage of learning pathways, get their teams skilled up, and that will then unlock some new incentives as well as, uh, benefits that they can take advantage of things like accessing or of the Splunk's I've experience and the proof of concept platform and really giving their teams more, uh, capability. And, >>You know, I such a recent cross in the hallway here at dot confidence. She was, she and I were talking about how AI and data is enabling a lot of people to create these solutions. So, you know, you got kind of this almost like Amazon web services dynamic, where it's growing really fast and we're hearing stories, how data is driving value. We had formula one on the cube, the keynotes were giving some examples as you start to see this momentum kind of scaling up to the next level, if you're enabling customers, which you are with data, the monetization or the economic shifts, right? So it's healthy ecosystems, the partners create solutions, they deal with the customer, they're making some money, right? So, so can you share your vision on the unit on the economic equation of how partners are tapping into this? Because I almost imagine, um, a thousand flowers are blooming and then you start to see more value being created and Splunk also gets a cut of it, but there's, there should be that kind of deck. And you can talk about that. >>Yeah, absolutely. In fact, one of the things that I have the opportunity to do with our partners is study our partners, success and profitability. And some of the things that we learned from those studies with our partners is that what's really helping our partners to grow their practices with Blanca and their profitability with that business is really the stickiness that they have with their customers, being able to deliver solutions and services and really be those subject matter experts for their customers. And we know that our most successful and profitable partners are servicing their customers across the Splunk cases. So for example, many of our partners came from a security background and they are super deep, super knowledgeable around security, and they are trusted by their customers as the, you know, subject matter experts around security. And so many of them are starting to lean in on some of the new, additional use cases. Observability is a hot topic with our partners right now it's a new and emerging use cases case for them to transition some of the same sets of data that they are addressing in their current appointments with our customers and bring new value with those new use cases. But that's where we're seeing partner profitability growth. >>I love the channel dynamic. There we go, indirect and real and value creation. I got to ask you about the day-to-day dynamic. Of course we all know about the mark injuries and story. Software's eating the world, okay. Software ate the world. Okay. Now that's done. Now we're data is continuing to drive the value proposition. And so that's going to have an impact on how customer your partners serve their customers, ultimately your customer at the end of the day. How, how is that happening? And from a success standpoint, how would you talk to, uh, where people are on the progress of bringing the most innovative solutions? What, where's the headroom, where do you see that going Brook >>There's? I would say there's just endless opportunity here. And we just see so much innovation in our partner ecosystem to create purpose built solutions for their customers business problems. And that's where I think the value of the data comes to life. Really turning that data into doing as is really the Matic for all the things that we're talking about here, uh, at.com 21, that our partners really see these opportunities and then can replicate some of those same solutions for other customers in the same spaces. So for example, you know, really specialized solutions for healthcare where they're, uh, providing, you know, access to all the data across the hospital, or, um, you heard in guard's keynote about unlocking the value of SAP data. This is just a huge opportunity accessing all that data and really turning that data into doing. And we'll be talking even more about the new SAP relationship and the value for the partner ecosystem to go address those FP data sets in their customers. We'll be talking more about that on our partner feature session, which is tomorrow in day two of dotcom. >>Well, you guys to have a nice mix of business in the partner ecosystem from, you know, small boutiques to high-end system integrators and everything in between, I noticed you're doing a lot with censure. Could you talk about how you guys are partnering with the large global system integrators because they're becoming their own clouds. So, you know, as Jerry Chen at Greylock says, are these castles being built in the cloud with real competitive advantage with data? Again, this is a new phenomenon in the past really two years, you're starting to see explosion of, of scale and refactoring business models with data. What's your, what's your reaction to that? >>Absolutely. In fact, we are really leading in with some of these global systems integrators, and you've heard this exciting news in Theresa Carlson's portion of the keynote earlier today, where we've announced a partner, a center partner business group together. And we're so excited about the center and Splunk partner business group. It's going to elevate the Splunk and essential partnership eCenter has invested in thousands and thousands of joint professionals that are skilled up on flunk. They are building a purpose patients. We have so many amazing examples where Splunk and essential work together to solve real life problems. For example, there's a joint solution that helps address anti-human trafficking. Uh, there's a joint solution that helped with vaccine tracking. I mean, just really powerful examples that are just really extending value to customers and solving real life, data problems. >>Well, you guys have a lot of momentum, bro. Congratulations on the success and partner versus we're going to follow it again. It was built for the cloud. I know it's in the headline. It says flunked launches, new partner program for the cloud. Was there a partner program for the on premises and what's different about on the cloud? Was it kind of new, everything is cloud what's that? What does that mean? That statement? Yeah, >>Absolutely. So we, you know, as we've all seen, customers are leaning into the class that growth to the movement, to the cloud, just accelerated during COVID. And so part of that feedback that I referenced earlier that we heard from our partners, they said, we need help. We need help moving faster. And so that's really the underpinning of the all-new Splunk partner vers program is to really that acceleration to skill up our partners and give them the tools to be successful. And so with that, we did want to rebrand and reinvigorate it to really signal this newness. And as it was mentioning earlier, when we were talking about the badges, it's really about making sure we're providing the partners the right enablement so that they can be ready and able to support their customers on this journey, to the cloud, as well as the access, the resources, the support and the marketing so that they can be successful and really featured their expertise and value in the market. >>Well, Brooke, I want to get one final question before we go. Cause I know you have a lot of experience in the partner ecosystems and over your career. And we just interviewed the formula one CEO, uh, Zach brown, and, and they've been very popular with the, with the Netflix series driving to survive. And I was joking with him driving value with data as channel partners and your partners look to the post pandemic survive and thrive trend that people are going through right now. What should they be thinking about when they look at partner versus, and how Splunk can help them drive an advantage, not only just survive, but to actually drive to an advantage. >>I, I just see this as an opportunity for partners that haven't already leaned into the cloud and helping their customers migrate to the cloud now is the time rapid five acceleration is just essential for organizations to reach their most critical missions and their outcomes. And this one partner versus program is a significant move forward for Splunk partners. And we want to pursue a massive market opportunity focused on the cloud with our partners, for our customers. So I just really encourage our partners to engage, participate and join us on this journey. >>Well, it's a lot of evidence to support this vision. Uh, with pandemic, we saw refab replatforming and refactoring the businesses in the cloud at speeds, that unprecedented deployments. So, uh, cloud can, can bring that scale and speed to the table. It's really incredible. So thank you very much for coming on the cube remotely. Thanks have you had, >>Thank you. This was a delight. Really appreciate the time, John and very excited to have my first opportunity to be a >>Okay. You're a cube alumni. We are here in the studios, Splunk studios for their virtual event here with all the top executives and partners bringing in guests remotely. It's a virtual event. So we'll be back in person. I'm Jennifer, the cube. Thanks for watching.

>> from the Cosmopolitan Hotel in Las Vegas, Nevada. It's the Cube covering Cooper inspired 2019. >> Brought to You by Cooper. >> Welcome to the Cube from Cooper inspired 99 Lisa Martin in The Cosmopolitan of Las Vegas. And guess who I have with me from the main stage CEO. Rob Bernstein. Welcome to the Cube. >> You so much. Thank you for having me >> exciting start today. One of Inspire really enjoyed the general session this morning. I learned three things more than three, but there's three that really stick out. One. You like pizza >> I do >> to you like kittens and kittens. And three, since 2016 there has been a five X increase and the spend going through the coop a platform with rocket ship. >> That's right. Huge momentum were well over 1.2 trillion dollars and spend that's gone through the platform. It's accelerating, and our customers are getting a lot of value and visualizing that spending, routing it to prefer contract saving money doing in smart, compliant ways. It's a really exciting time for us. >> It is, and this is across every industry manufacturing, healthcare, retail, et cetera. Every industry has the opportunity to leverage this wealth of data absolute. Cooper has to be able to get that visibility and control of all their spent. That's really revolutionary for any business. >> Well, we're really excited about it. Our community of customers is very excited about it, where building something very special here. I'll tell you one of the most exciting things. When you see that data being used in a way that drives intelligence for each individual customers, you know, we're helping them understand Where is their potential fraud with their expenses, where their suppliers maybe sending them duplicate invoices by accident? But Ari, I picks that up. So we are taking the space to a completely new level, and it's it could be more exciting. Honestly, >> well, the amount. You know, we go 1,000,000 shows a year, maybe a little bit less, But we always hear data is oil data is gold. It is. If you have access to it, you can extract insights from it really quickly and be able to act on it faster than your competition. >> Absolutely. You have to be able to normalize the data first informal, so you need a I capabilities. To do that, you have to access a massive data store you have to anonymous. The data obviously needs to be very, very secure, and then you have to draw insights out of that data. And one of things I share this morning is that we've given our customers just in 2019 more than 18,000 prescriptions of things they should consider, for example, putting some suppliers on hold if we think there's some risk with those suppliers. So absolutely, it's a I, but it's a I as the underlying element that brings out what we call community intelligence. And that's what's what's so powerful >> and the community as well, another really kind of under town that I felt and heard this morning from us. It's a community of collaboration, thes air, other businesses benefiting from what others have learned suppliers as well. So the customer centric city, the supplier central city, is there. >> Absolutely. It's all about this community concept, and we have well over 1000 companies that we've helped spend smarter, effectively and their community because these customers air sharing both in person and online, best practices, ideas for doing things differently, ideas for stretching this space beyond where it's ever been before, and that's really rewarding and every individual customers getting the benefit from that. Eso This community is developing very, very nicely, and it's serving the purposes of establishing this category, this new category of businessmen management, that world driving toward >> talk about that because that's something that's pretty innovative for Cooper. Business SPEND MANAGEMENT The role of procurement has changed. The role of finance has changed. They have the opportunity to become very strategic and really drive top line value. Talk to us about business, spend management What it means, how Coop is defining it >> absolutely well. First of all, any person I am in the world, and I've been asked this question for well over a decade. Now, do you think your company is doing a great job in managing its spending on older business needs that the company has, and you never get a resounding positive answer that, yes, we're doing a great job. And if you ask them, are you applying information technology to that problem in an effective way? The the answers or even worse? So we are attacking this full on with our customers in establishing the space, and that means everything from procurement expense reporting to invoice processing, two payments strategic sourcing, spend analytics supplier management contract lifecycle management. All of these application areas working together in concert help companies get their arms around spending and manage it in a much more smart way. And that's what this is. This is all about. >> One of the biggest challenges is you think about poor I t. Because every every line of business, whether your marketing, finance or engineering anything. Oh, engineering. I want to use lock. Start using flack. Marketing wants to use salesforce market Whatever these tools are in, suddenly this proliferation of shadowing T that's right and challenging to manage. But you can imagine how many supplier contracts are being duplicated triplicate, ID and even within the same organization, not getting the ideal price. So one of the great things big announcement today is the expansion of the relationship with Amazon in the AWS marketplace and wow, c I ose I t folks are gonna be able to do >> a lot >> through the Cupid platform. Tell us >> girls, that's right. Well, first of all, it's powered by an open by technology that we've developed, which allows you to have a very seamless experience. It's a purchasing experience that feels just like you're out on the Web, looking for any kind of item that you'd like to buy. But now you'll be able to subscribe to Service Is Cloud based. Service is through the Amazon AWS marketplace, and these Air service is that obviously would be approved by your CEO be approved by the folks involved in checking that it's secure, approved by legal and also approved by procurement So you can procure these cloud based service is very, very seamlessly right out of Cooper into AWS marketplace and back. And we think it's going to allow for obviously more volume of controlled spend, but also visibility into that spends. So it's properly matters >> that visibility is. You know, it's a word that we use in so many different applications. We don't want better visibility in our lives. In general, that is not easy to achieve. You talked about kind of these four core categories. You actually mentioned Maur that Cooper delivers its procurement, its invoices, expenses that can imagine travel management contingent workers getting an organization, whether it's a big organization like a staples or a smaller organization, that visibility is massively game changing. >> Yes, I think so. And I think one of the things that allows us to view that is we've really empowered the central hub organizations. Many the ones you described to roll out platforms to the end users all over the country, all over the world, wherever these people have employees to take control over spend. But have that Spence still routed to preferred, contractually righteous kind of spend categories that give them the results that they want. So this is a platform that is getting wide, wide adoption. And I'll tell you one of our application areas. We've seen more than a three x acceleration in the number of users over the last one year simply because of the adoption is so broadly accepted. And that has to do with our design and technology. Make it very, very usable. Our design concept of the best, you wise. No, you are right. So that's really how we're getting to where we're getting with a customer committee >> Adoptions challenging, you know. And there's if you look at the number of applications that an organization has a gonna work our list of sites, there's a lot and they're only effective if they're being utilized effectively by all of the folks that need to be doing that talk a little bit more. I love how you in your general session this morning shared with the audience. What c o u P a. Each acronym means. But and I saw that on the website best. Do I know you? I know what are some of the things that you think Cooper is doing really well that are really facilitating that adoption. That's again, that's hard to achieve. >> Well, it's in each of the letters in Cooper. So first, a comprehensive approach. That's what the C stands for. So cover every area of spend in one platform. We've never seen that before in the history of enterprise software, about a lot of siloed solutions all over the place, people trying to integrate them. We've put this all on one comprehensive platform. Secondly, doing it openly. That's what the old stands for. So being able to integrate to any ear piece system integrates a whole host of systems you mentioned slack earlier. We integrate into slack you could approve or reject spent purchased directly and slack. You have to get out to Cooper to do it, but you're doing it. The date is captured in Cooper. You is the user centrist city, so putting all the weight on the application itself and less of the weight on the employees themselves. Right now, we support guided buying with support all these capabilities, but our focus is on. You don't need any guidance in the future. Should require in the gun she should be. It should be so intuitive. The P stands for prescriptive, and this is using this community. Data we were discussing earlier to give real prescriptive advice. Teach customer, but how they should be spending or best practices, expenditures or benchmarks of how they could approve in the A stands for accelerated. It's the time of deployment. We're getting our customers live in a matter of months. They're accelerating their business process internally. I shared a stat that our customers in the last 12 months have improved the speed of their approvals by 30%. That's an aggregate. That's millions of millions, hundreds of billions of dollars in spend buying. So these five there is really differentiate us and they're really the vision areas that we focus on is a company with our with our community of customers. >> I was looking at some of the numbers from Cooper. You guys have consistently managed to grow revenues over 40% your rear in your fiscal year. 20 Q one earnings, which was just what last month or so. So revenue up 44% year over. You're crushing Wall Street's estimates by more than a 10 point gap. Lot of moment in, As you mentioned, let's talk about customers because at the end of the day, that's what you're all working towards. I know some of your proudest moments are when you get to talk with customers whose businesses have been transformed and you're giving them that the ah ha moments all the time. I love this morning how there >> was a lot >> of the voice of the customer covered there from so many different industries. The impact that you guys are making it Rolls Royce, for example, and MasterCard massive. Tell me some of your favorite stories that really articulate the breadth and depth of the value that delivers. I >> love it when the story begins in a situation where the CEO or CFO of the company don't necessarily get it, but somebody within our community steps up and shows them the business case of what we could achieve together. And then we, as a team is a collective unit delivered on achieving. Looking at was on themselves. I mean, they're processing more than $2,000,000,000 a month >> through our platform. I >> mentioned Procter Gamble. It process more than $50,000,000,000. Star Platform. Now >> these air, >> not initials. These were early adopter customers. They didn't have to go in our direction. There was some individual in that company that saw the spark of opportunity seized it, got it approved and worked with us hand in hand to drive it. And that's the stories that I love the most. And I shared so many of them this morning, but there are literally hundreds of them. All over the world in this community were cultivated. >> There are, and it's that's I think there's no bread or brand value that you can get Van it being articulated from the voice of a successful customer who it's not just normal, agile. We're saving money. It's no, we're driving shareholder value. There are significant business imperatives that are being driven because procurement is changing. We got to react to pricing pressures and forces like consumer ization. You know, we think of way have these expectations as consumers private lives, of getting anything that we want within a day when it shows up, you forgot what you ordered. It was that fast. That's right, what you guys are doing to enable the business buyers to have that same capability in their business lives. But to get that visibility, that 360 is really interesting. >> And the key also is to handle all the complexity on the back end for them. I could tell you so many companies I know that a really proud of crossing their paper based invoices very, very quickly, but they may not even know whether or not they got the goods of service is for which they're paying the invoice. So we do all of that heavy lifting on the back end on the platform itself, alleviating then users from that complexity and allowing them to have the experience that's similar to the one that that you just described >> can imagine how much money is being wasted on paper. They probably have absolutely no idea, absolutely no idea where you guys launched an Index. The Cooper Business Spend Index Just, I think, a month or two ago this is behavioral based data that you're bleeding from your community. Talk to us about the coupe of business spent index and some of the insights that you're already uncovering about the economy. >> Absolutely so. One of the things about this business spending nexus. It's something I've been thinking about frankly for over a decade. Can we collect enough data that's statistically significant enough actually be a leading indicator to future economic sentiment. You think about the data. We're looking at an aggregate. We know the average spend companies have per employee. We know how long approval cycles are, and we know the changes in those approval cycles. We know what percentage of spend is actually being rejected. Verse accepted at a moments notice aggregated those air in combination are leading in the Kidder's to the sentiment that companies have about the future of the economy. So we backwards tested this index that takes an account, these three elements that just described back to 2016 and it's proven to show pretty strong correlation with the way the economy actually played out for many of those quarters that many of those quarters. So last quarter we released our first verse, our first data set of the business spending. Next. And it showed that future economic economic sentiment for the next 3 to 4 months is actually very positive now, in some industries, more than others. But now, with three months later and clearly, the last three months have been pretty strong. So we're gonna be soon releasing our next quarterly Businessmen index. And we're gonna be doing this every quarter. Try to provide the business community with insights about where things are going. That's what everyone of business wants to know, where things are going, not where things have been. And we think we're in a unique position to share that and also, you know, sort of unfairly build awareness for brand out there so that people understand >> what we're all about. >> But that's that's critical. I'm gonna be talking to China tomorrow. You think of awareness Acquisition? Yes, Yes. Advocacy. Yes. Check, Check. Check. Old three. Those are critical last question robbery. As we look at the impact that procurement and getting this visibility of all of the distances spend can have on the business. Where is it as it relates to enabling businesses to digitally transformed >> to be competitive? Well, look, underlying all of this is the digital transformation that's happening for every company in every industry, without a doubt. But the use cases we support us so quantifiable. That's so clear not only in terms of cost savings that only in terms of compliance only in terms of visibility and getting your arms around spent actually drive revenue as well. If you do spend management effectively, you can change the way consumers experience your brand. And I shared a number of those stories. MGM resorts to Lulu Lemon to the Leukemia and Lymphoma Society and others. If you can get your arms around the spent and get people in the company, the goods and service is they need in record time. They're better position to express the company's vision to help them push towards an incredible iconic customer experiences. And we're just so proud to be ableto power that for this fast growing community of customers around the world, >> such an exciting time. Rob, thank you for having to queue, but inspired 19. It's been great. It's for looking forward to talking with lots more of your of your folks as well as amazing innovators and thinkers like Susie Orman and Deepak Chopra. Wow. Awesome stuff. Thank you. Well, thanks for having us. Thank you. All right. For Rob Bernstein. I'm Lisa Martin. You're watching the Cube from Cooper Inspired 19. Thanks for watching.

>> about >> fifteen live from basically about a room that is a common club native con Europe twenty nineteen by Red Hat, The >> Cloud, Native Computing Foundation and Ecosystem Partners. >> Welcome back to the Cubes. Live coverage of Cloud Native Con Cube Khan, twenty nineteen I'm stupid in my co host is Corey Quinn and having a welcome back to the program, Doug Davis, who's a senior technical staff member and PM of a native. And he happens to be employed by IBM. Thanks so much for joining. Thanks for inviting me. Alright, So Corey got really excited when he saw this because server Lis is something that you know he's been doing for a while. I've been poking in, trying to understand all the pieces have done marvelous conflict couple of times and, you know, I guess, I guess layout for our audience a little bit, you know, k native. You know, I look at it kind of a bridging a solution, but, you know, we're talking. It's not the, you know, you know, containers or server lists. And, you know, we understand that world. They're spectrums and there's overlap. So maybe as that is a set up, you know, What is the surveillance working groups? You know, Charter. Right. So >> the service Working Group is a Sand CF working group. It was originally started back in mid two thousand seventeen by the technical recite committee in Cincy. They basically wanted know what is service all about his new technology is that some of these get involved with stuff like that. So they started up the service working group and our main mission was just doing some investigation. And so the output of this working group was a white paper. Basically describing serval is how it compares with the other as is out there. What is the good use cases for when to use that went out through it? Common architectures, basically just explaining what the heck is going on in that space. And then we also produced a landscape document basically laying out what's out there from a proprietors perspective as well is open source perspective. And then the third piece was at the tail end of the white paper set of recommendations for the TOC or seen stuff in general. What do they do next? And basic came down to three different things. One was education. We want to be educate the community on what services when it's appropriate stuff like that. Two. What should wait? I'm sorry I'm getting somebody Thinks my head recommendations. What other projects we pull into the CNC f others other service projects, you know, getting encouraged in the joint to grow the community. And third, what should we do around improbability? Because obviously, when it comes to open source standards of stuff like that, we want in our ability, portability stuff like that and one of the low hang your food should be identified was, well, service seems to be all about events. So there's something inventing space we could do, and we recognize well, if we could help the processing of events as it moves from Point A to point B, that might help people in terms of middleware in terms of routing, of events, filtering events, stuff like that. And so that's how these convents project that started. Right? And so that's where most of service working group members are nowadays. Is cod events working or project, and they're basically divine, Eva said specification around cloud events, and you kind of think of it as defining metadata to add to your current events because we're not going to tell you. Oh, here's yet another one size fits all cloud of in format, right? It's Take your current events. Sprinkle a little extra metadata in there just to help routing. And that's really what it's all about. >> One of the first things people say about server list is quoted directly from the cover of Missing the Point magazine Server list Runs on servers. Wonderful. Thank you for your valuable contribution. Go away slightly less naive is, I think, an approach, and I've seen a couple of times so far at this conference. When talking to people that they think of it in terms of functions as a service of being able to take arbitrary code and running, I have a wristwatch I can run arbitrary code on. That's not really the point. It's, I think you're right. It's talking more about the event model and what that unlocks As your application. Mohr less starts to become more self aware. Are you finding that acceptance of that viewpoint is taking time to take root? >> Yeah, I think what's interesting is when we first are looking. A serval is, I think, very a lot of people did think of service equals function of the service, and that's all it was. I think what we're finding now is this this mode or people are more open to the idea of sort of as you. I think you're alluding to merging of these worlds because we look at the functionality of service offers, things like event based, which really only means is the messages coming in? It just happens to look like an event. Okay, fine. Mrs comes in you auto scale based upon, you know, loaded stuff like that scale down to zero is a the monkey thought it was really like all these other things are all these features. Why should you limit those two service? Why not a past platform? Why not? Container is a service. Why would you want those just for one little as column? And so my goal with things like a native though I'm glad you mentioned it is because I think he does try to span those, and I'm hoping it kind of merges them altogether and says, Look, I don't care what you call it. Use this piece of technology because it does what you need to do. If you want to think of it as a pass, go for I don't care. This guy over here he wants think that is a FAZ Great. It's the same piece of technology. Does the feature do what you need? Yes or no? Ignore that, nor the terminology around it more than anything >> else. So I agree. Ueda Good, Great discussion with the user earlier and he said from a developer standpoint, I actually don't want to think too much about which one of these pass I go down. I want to reduce the friction for them and make it easy. So you know, how does K native help us move towards that? You know, ideal >> world, right? And I think so fine. With what I said earlier, One of the things I think a native does, aside from trying to bridge all the various as columns is I also look a K native as a simplification of communities because as much as everybody here loves communities, it is kind of complicated, right? It is not the easiest thing in the world to use, and it kind of forced you to be a nightie expert which almost goes against the direction we were headed. When you think of Cloud Foundry stuff like that where it's like, Hey, you don't worry about this something, we're just give us your code, right? Cos well says No, you gotta know about Network Sing Gris on values that everything else it's like, I'm sorry, isn't this going the wrong way? Well, Kania tries to back up a little, say, give you all the features of Cooper Netease, but in a simplified platform or a P I experience that you can get similar Tokat. Foundry is Simo, doctor and stuff, but gives you all the benefits of communities. But the important thing is if for some reason you need to go around K native because it's a little too simplified or opinionated, you could still go around it to get to the complicated stuff. And it's not like you're leaving that a different world or you're entering a different world because it's the same infrastructure they could stuff that you deploy on. K Native can integrate very nicely with the stuff you deploy through vanilla communities if you have to. So it is really nice emerging these two worlds, and I'm I'm really excited by that. >> One thing that I found always strange about server list is at first it was defined by what it's not and then quickly came to be defined almost by its constraints. If you take a look at public cloud offerings around this, most notably a ws land other there, many others it comes down well. You can only run it for experience time or it only runs in certain run times. Or it's something the cold starts become a problem. I think that taking a viewpoint from that perspective artificially hobbles what this might wind up on locking down the road just because these constraints move. And right now it might be a bit of a toy. I don't think it will be as it because it needs to become more capable. The big value proposition that I keep hearing around server listen I've mostly bought into has been that it's about business logic and solving the things that Air Corps to your business and not even having to think about infrastructure. Where do you stand on that >> viewpoint? I completely agree. I think a lot of the limitations you see today are completely artificial. I kind of understand why they're there, because the way things have progressed. But again, that's one reason I excited like a native is because a lot of those limitations aren't there. Now, Kay native doesn't have its own set of limitations. And personally, I do want to try to remove those. Like I said, I would love it if K native, aside from the serval ISS features it offers up, became these simplified, incriminate his experience. So if you think about what you could do with Coronet is right, you could deploy a pod and they can run forever until the system decides to crash. For some reason, right, why not do that with a native and you can't stay with a native? Technically, I have demos that I've been running here where I set the men scale the one it lives forever, and teenager doesn't care right? And so deploying an application through K native communities. I don't care that it's the same thing to me. And so, yes, I do want to merge in those two worlds. I wantto lower those constraints as long as you keep it a simplified model and support the eighty to ninety percent of those use cases that it's actually meant to address. Leave the hard stuff for going around it a little. >> Alright, So, Doug, you know, it's often times, you know, we get caught in this bubble of arguing over, you know? You know what we call it, how the different pieces are. Yesterday you had a practitioner Summit four server list. So what? I want to hear his You know, whats the practitioners of you put What are they excited about? What are they using today and what are the things that they're asking for? Help it become, you know, Maur were usable and useful for them in the future. >> So in full disclosure, we actually kind of a quiet audience, so they weren't very vocal. But what little I did here is they seem very excited by K native and I think a lot of it was because we were just talking about that sort of merging of the worlds because I do think there is still some confusion around, as you said when you use one verse of the other and I think a native is helping to bring those together. And I did hear some excitement around that in terms of what people actually expect from us going in the future. I don't know. Be honest. They didn't actually say a whole lot there. I had my own personal opinion, and lot of years would already stayed in terms of emerging. Stop having me pick a technology or pick a terminology, right? Let me just pick the technology. It gets my job done and hopefully that one will solve a lot of my needs. But for the most parts, I think it was really more about Kaneda than anything else. Yesterday, >> I think like Lennox before it. Any technology? At some point you saw this with virtual ization with cloud, with containers with Cooper Netease. And now we're starting to Syria to see with server lists where some of its most vocal proponents are also the most obnoxious in that they're looking at this from a perspective of what's your problem? I'm not even going to listen to the answer. The absolution is filling favorite technology here. So to that end today, what workloads air not appropriate for surveillance in your mind? >> Um, >> so this is hardly an answer because I have the IBM Army running through my head because what's interesting is I do hear people talk about service is good for this and not this or you can date. It is good for this and not this. And I hear those things, and I'm not sure I actually buy it right. I actually think that the only limitations that I've seen in terms of what you should not run on time like he needed or any of the platform is whatever that platform actually finds you, too. So, for example, on eight of us, they may have time limited in terms of how long you can run. If that's a problem for you, don't use it to me. That's not an artifact of service. That's artifact of that particular choice of how the implement service with K native they don't have that problem. You could let it run forever if you want. So in terms of what workloads or good or bad, I honestly I don't have a good answer for that because I don't necessary by some of the the stories I'm hearing, I personally think, try to run everything you can through something like Cain native, and then when it fails, go someplace else is the same story had when containers first came around. They would say, You know when to use BMS vs Containers. My go to answer was, always try containers first. Your life will be a whole lot easier when it doesn't work, then look at the other things because I don't want to. I don't want to try to pigeonhole something like surly or K native and say, Oh, don't even think about it for these things because it may actually worked just fine for you, right? I don't want people to believe negative hype in a way that makes sense, >> and that's very fair. I tend to see most of the constraints around. This is being implementation details of specific providers and that that will dictate answers to that question. I don't want to sound like I'm coming after you, and that's very thoughtful of measured with >> thank you. That's the usual response back. So don't >> go. I'Ll give you the tough one critical guy had in Seattle. Okay, when I looked at K Native is there's a lot of civilised options out there yet, but when I talked to users, the number one out there is a ws Lambda, and number two is probably as your functions. And as of Seattle, neither of those was fully integrated. Since then, I talk to a little startup called Believers Trigger Mash, that that has made some connections between Lambda Ah, and a native. And there was an announcement a couple of weeks ago, Kedia or Keita? That's azure and some kind of future to get Teo K native. So it feels like it's a maturity thing. And, you know, what can you tell us about, you know, the big cloud guys on Felicia? Google's involved IBM Red Hat on and you know Oracle are involved in K Native. So where do those big cloud players? Right? >> So from my perspective, what I think Kenya has going for it over the others is one A lot of other guys do run on Cooper Netease. I feel like they're sort of like communities as well as everything else, like some of them can run. Incriminate is Dr anything else, and so they're not necessary, tightly integrated and leveraging the community's features the way Kay Native is doing. And I think that's a little bit unique right there. But the other thing that I think K native has going for it is the community around it? I think people were doing were noticing. Is that what you said? There's a lot of other players out there, and it's hard for people to choose. And what? I think Google did a great job of this sort of bringing the community together and said, Look, can we stop bickering and develop a sort of common infrastructure? Like Who Burnett is is that we can all then base our surveillance platforms on, and I think that rallying cry to bring the community together across a common base is something a little bit unique for K native. When you compare it with the others, I think that's a big draw for people. Least from my perspective. I know it from IBM Zzzz Well, because community is a big thing for us, >> obviously. Okay, so will there be a bridge to those other cloud players soon as their road map? For that, >> we think a native itself. Yeah, I am not sure I can answer that one, because I'm not sure I heard a lot of talk about bridging per se. I know that when you talk about things like getting events from other platforms and stuff. Obviously, through the eventing side of a native we do went from a serving perspective. I'm not sure I hold her old water. From that perspective, you have >> to be honest. All right, Well, Doug Davis, we're done for This one. Really appreciate all the updates there. And I definitely look forward, Teo, seeing the progress that the servant working group continues to do, so thank you so much. Thank you for having me. Alright for Corey Quinn. I'm stupid and will be back with more coverage here on the Cube. Thanks for watching.

live from Orlando Florida it's the cube covering accelerate nineteen brought to you by important welcome back to the cubes continuing coverage of forty net accelerate 2019 live from Orlando Florida Lisa Martin with Peter verse and we're pleased to welcome back to the key one of our alumni John Madison the executive vice president of products and solutions from forty met John it's great to have you back on the cube it's great to be here again lots of momentum that forty minutes coming into 2019 with I can't believe we're in April already lots of growth in revenue product revenue was up you guys talked about the expansion of the partner network we've had some of your fabric ready partners on already today yeah you talked about this third generation and security how fourteen it is is uniquely delivering that for our viewers who were didn't have the opportunity to attend your keynote kind of talk to us about that in this hybrid world how is putting that delivering this third generation what makes you guys different yeah so we talk about the third generation now everyone has different generations that's fine we call it what we are the security driven networking and it's really the genesis of 14f for a long time in bringing together networking and security into one place I think these days or in the past people have built out the networks with a network layer then they try and connect users and applications I think oh wait a minute and this put some security over here and a bit over here and over there in our minds start with both start with a security driven networking concept make sure it works end to end and that will be the most sophisticated most secure application and network you can have and what enables porting that to deliver this uniquely because a number of times today and Ken's keynote I think patrice as well and i can't recall if yours competition came up where the audience was shown the strength in numbers that 14 that has so what makes you guys unique and what you're delivering what are key differentiators from the start has been making sure we can run routing stacks sometimes today referred to as st wayne stacks also security stacks in a very small footprint and to do you need to spend a lot of money what we call security processes which go inside our appliances to make sure that runs very fast but having said that I definitely think customers are gonna be in a high weight world forever for a long time at least anyway we're not only appliances but also personal machines an API security and we also talk about this fabric concept they're able to cover the complete digital attack surface so there's a very important point and we're finding a lot of customers now agree that they want to consolidate they want to make it simpler they need to move faster to this digital world and the only way you have to do that is through a consolidated approach so let's build on this they want to consolidate they want to make it simpler more common and how they in policies and management now along comes the edge what's the dynamic there what's happening is all people refer to the perimeter disappearing okay that's happening to a certain extent because data is moving into cloud you've got different one implementations but what's happening when you do that is you're creating new edges a really good example is sd1 which used to be very closed off the wound used to be something that connects branch offices back to the data center but nobody got involved in that well now you're opening up that when two different types of transport mechanism you're creating an edge I always refer to these edges as being created by different trust levels there is a may be a secure trust level here less trust here it creates an edge and you absolutely need to protect all those edges but give us an example of that so for example when you say differentiated trust levels my edge might be at a customer location is that kind of what versus my edge might be at a branch office is that what you mean by a different trust level push that concept force you know it's more for example if I got a branch office and I've got one connectivity going back to my data center that's encrypted and secure but I've also opened up connectivity to the internet the trust level between that encrypted link and my connection to the to the internet is very different the Internet's open anyone can see there so that trust level between those two is very different and that's what creates the edge and so therefore that becomes a key feature in how we design diff edge implementations it is it's also a key requirement on what type of deployment mode you use we have appliances we have virtual machines we have clouds containers API is going forward I'm finding that customers are still very reluctant to put software implementations of firewalls against the Internet appliances are harden they run faster having said that inside the cloud obviously inside software-defined data centers virtuals fine what are some of those customer concerns that you're hearing well I think what happens is you know if you putting a piece of software against the internet it's open to all sorts of attack it's the same as giving IP addresses to anything it's like a factory that creates an edge as well and you need to harm that edge against that phone how can st when helped why is this such a crucial component of digital transformation you know sometimes markets are overhyped I remember that the Cosby marketplace a few years ago it just was a feature to be honest I think sd1 is extremely important the reason it's important is the SD one controller that controller eventually tells users and devices how to get to the applications and so I tell customers that investment for you is extremely important you need to own it you need to make sure it's flexible you need to make sure it's secure and so I think the SD web marketplace or one edge is the kind of larger term for it is extremely important investment for customers do you anticipate that I mean you guys invested you guys put forward a lot of products we made a number of different announcements again going back to that notion of simplicity that notion of consolidation what is the breaking point for your typical IT group in terms of the complexity of that they can accommodate and absorb when we start adding additional function within the overall network especially from a security standpoint well I think it's a bit broken already they're really struggling to keep up from one perspective no today we announced our forty OS 6.2 is our major operating system and what we try and do is consolidate functionality as much as possible inside our fabric through a single console so there were single operations capability so it's easier for the operations people for the security people to implement things and we're also implementing automated mechanisms like security ratings which do a background run of best practices for example that make it gain easier for those cut those teams to run a full analysis of what's going on so was it about three hundred features roughly laughs I counted them individually okay good yeah well do a recount of a tremendous amount of feature addition to forty OS announced today what are some of the things business outcomes Peter and I we're talking about outcomes with several of our guests earlier business outcomes new revenue streams new products going to market faster the also being able to become less reactive maybe more proactive in terms of security cuts can you walk us through some of the outcomes that 14 that customers can expect to achieve from some of the OS announcements and enhancements yeah I already talked about one which was the consolidation which means they can do multiple things with the single platform that's an important one for them also some of those some of the cost savings around that some of the operational cost savings I think also for our partners for example they like the fact that we're keep that we keep adding services on top of that fabric they can take those services then apply them to their customers and make sure they can add value inside there as well so there's two angles to it the one is making sure our customers are better protected they can consolidate save money invest better training and then to our partners so that they can provide more value to their customers so one of the things we were talking to Ken about is the fact that you have invested in a six and security processing units and content processing units etc that are capable of accelerating the rate of which these crucial security algorithms run that opens up that creates additional capacity to add more function both for you as well as your partners are you starting to see some of your ecosystem grow faster as they better exploit that inherent power and performance that you have within your appliances and devices definitely I think we're seeing new partners come from new areas it also fragments a bit and that's why we announced this new partner initiative going forward which is a bit more customizable but I you know I do think that going forward both our customers and our partners are looking for more of an architecture approach you know again if you go back five years here's a box and off you go and there's install it and we're good and again when you saw those security threats yes we produce a point solution to fix it normal we keep moving on there now looking at architectures over the next five years a known only just cyber security architectures but networking architecture storage architectures and all coming together so we definitely need to train our partners I think here we had over fifty of our what we call networks a network security expert eight it's the highest level of architecture and half and the partners but going forward we see much more partner involvement in an architecture approach and our customers want that because they don't want to have a point solution that's out-of-date in a year's time or a new threat comes along and makes it redundant so how are you you mentioned you mentioned network security and storage what other things are starting to inform that architectural approach that you're taking it's everything now so we know the factories now are completely automated all the different utilities have IP addresses are running almost all the way down to the end point just everything has more flexibility and is more open and so definitely all of that informations bouncing around inside IOT devices inside the wires like data centers and all that data needs protecting that's the key of protecting the data and to do that again we keep saying you need to have an integrated approach to networking and security how does the customer work with 40 net and your partner ecosystem to achieve that integrated approach assuming that there's a you know an enterprise out there that's got a spectrum of hybrid multi cloud environment with a spectrum of security Point solutions pointed it you know different components of an infrastructure how do you help them on that journey of taking the many disparate security solutions and leveraging the power of cortina and your partners to get that integrated truly integrated consolidate consolidated view it's a couple of steps maybe maybe many steps the first one is customers don't want to throw everything else straight away and so what they want to do is be able to integrate and connect and so we have some of our partners here for example of fabric ready partners we have connectors we build into their platforms and orchestration systems and that's their first step once they get there they start looking across to see what they can consolidate so can they take a specific solution from this and I'm bringing inside and then eventually they start to look at the long-term architecture if they're moving apps to the cloud or they want to open up their where or they want to provide kind of SD functionality inside their branch but so it's definitely a phase approached I don't see many customers some customers would take an application and create from scratch inside the cloud they can't do that with their infrastructure they can't just completely wipe it clean start again it's definitely more of a phased approach so as you think about the phase approach and you talked we heard from we heard from the sales port side the notion that the SPS the service providers want greater customization the enterprise wants a different level of access to the core technologies so that they can do not customization not exactly I remember exactly what the term was but what degree will customers retain control over how that architecture gets implemented versus what degree is it going to get baked into the stack itself a bit of both I think you know for most customers they're running towards a digital platform and they need to own that digital platform if they give up complete control you know how do they control that their destiny going forward so they want to own the digital platform but they haven't got the resources to do everything so they'll outsource some to service providers and carriers some of the partners for example but again I keep coming back to this they want to get to a point in five years time where they've got a digital footprint it's very flexible but they also want to make sure it's very secure because as you open up that digital footprint you're opening up all these different edges inside the network and it's coherent which is the architected approach yes because if they don't have a coherent approach to doing it they don't know what the interfaces are or are not competent and that includes interfaces with partners yeah they have to look forward and say I'm gonna implement X amount in the cloud I'm now gonna have some edge compute going on here I want to shape make sure my branches have the best quality of service for these certain applications that go back to this so they look at all those parameters and then architect something from there so I know that security network security app security info security cloud security is in our imperatives for every industry but I didn't notice that the breakouts today feature I think there's a couple of vertical features healthcare financial services retail I'm just curious are those just great use cases that show the potential and the power of 14x technologies or are those industries that are either early adopters or maybe more leading-edge because they have such a tremendous amount of data that needs to be secured as their ecosystem does this yeah so the industry verticals I think I think for the very large ones they're very similar all of them have IOT that's expanding or don't want to have a flexible wand system all them I've got something some compute power and the cloud and the edge going forward so I know there's differences in industries for the very large enterprises it's the problem seems the same these huge organizations and they have all of these things going on in each trying corner I'd you come down to mid enterprise I think there's more reason to consolidate but then you see more differences in the way they approach things like a healthcare they're really focused on that healthcare kind of security of devices inside the hospitals etc education oh they need to connect in these big data banks and transfer the research information so big organizations I say pretty much the same problem midsize organizations become more relevant to a specific industry well John thank you so much for carving out some time speak with Peter and me today we appreciate that and it's exciting to see and feel the momentum that 49 is bringing into 2019 wealth I'm say inviting me our pleasure we want to thank you for your time as well for Peter Burris I am Lisa Martin you're watching the cube [Music]

>>live from Madrid, Spain. It's the Q covering HP Discover Madrid 2017 Brought to you by Hewlett Packard Enterprise >>Welcome back to Madrid, Spain. Everybody, this is cute. The leader in live tech coverage And we have a day to HP discover Madrid. My name is Dave Volonte with my co host for the week Peter Verse. Jeff, Carla is here. He's the senior director of solutions. Go to market system integrators at Hewlett Packard Enterprise and Kalyan Gara Mela. Who is the i o t manager? Deloitte. Yes, Gentlemen, welcome to the Cube. Thanks for coming on, You bad love too deep here. It's always a great time. Yes. So you know, when you come on with Deloitte, we always sort of mentioned you guys. One of the top system integrators in the planet. You got deep expertise and vertical industries. You guys bring the technology expertise. Last time we were talking about manufacturing. This time we're gonna talk about retail. Yes. Why? Retail, You know, retails in turmoil. Everybody's got numbers on war room. But you guys are going after that, helping some of your customers so to take advantage of their physical presence, bringing in an online presence move into digital. Is there hope there's hope, their retail dead? You know, >>I hear all the time about this retail apocalypse retail is dead, and in reality, it's not dead at all. Still, 85 to 90% of purchases were being going through a brick and mortar store problem here, and the apocalypse will happen to those brick and mortar retailers that don't change. They don't digitize and change to the changing demands of a consumer and the way they want purchase something, give you an example, my son or even myself. Now I increasingly want to do things through an experience. My computer, my mobile phone. I do research. I I want to understand. I want recommendations. I want personalization. I want to be catered to. I don't want to go stand in line. Well, that experience can be done but are unique. Ability. Is taking that experience in a planet into a brick and mortar environment? >>Well, I got to say I love going Cabela's with my kid with my wife. I mean, I could spend all day. Hey, get that on Callie and tell us about your you're rolling. The Lloyd, obviously specializing in the retail practice. What, Your background? >>Yes, my name's Kalyan. Gotta Mila being a coyote manager from the >>delight you >>practice based out of San Francisco, and we have been working with our partners and friends. Hitch be Aruba over the past year or so, helping them dollar, I ot go to market projects, products that can be that we can take to market on Dhe. Recently. We're just working with manufacturing and retail industry. >>So what's the conversation >>like with your customers? As I said, everybody's got an Amazon war room they're trying to figure out. Okay, >>how do we leverage our physical presence as an advantage? What were the conversations like with clients with >>our clients? Mostly that talking about How did the mimic our online channels? Right. If I go to an online retailer, you know, if I go open, say amazon dot com, they know exactly what item I am for chasing where I'm going next. What? How much time I'm spending. So in order to differentiate the brick and mortars in order to differentiate themselves from the fellow retailers, they have to offer that customized shopping experience in order to get given a reason for the customers to come in store and make that purchase. So they're trying to look at what new technologies that we can can we can help with. What are some of the new processes that we can help with? And that's where most of our conversations have been going on, >>Really experience. Problem >>it is. And you talk about the bells and I moved into a new house, ready to buy my big >>lazy boy chair and watch Sunday >>football, and I'm not gonna go online just by here. I want to touch and feel that I was late and I want to understand. Well, that is a perfect opportunity of providing an experience. Allows me to do the research, get suggestions, go into a brick and mortar store. Try it out, then guess what? I'm getting personalized. Hey, you know what? There's a nice beer stand that I could put right next to that table. Be calm, perfectly complemented. Hey, there's a light that can look over So we have that ability of actually tying together and experience, actually predicting in advance what the customer really doesn't know they want next. But they really do want example. We just walked out of a client engagement. Beautiful example. Plan Engagement sells high end women's fashions, right dresses and shoes and accessories. Everything. And he's He basically said, We're dabbling around with R F I. D tags, um, inventory management, but we don't know what to do, right? Bingo. We now have a proven, referenced architecture called the Connected Consumer. This is a preview to be announced to be soon, but that can allow, actually that client to integrate and optimized and digitized the solution for a number of different use cases that spans a unique customer experience in store operations and efficiencies, and then providing insights through analytics in store analytics to make decisions quickly. So you've got by using this architecture building of solutions based with Deloitte Competence season capabilities in HPD Aruba technology. We can deliver that to increase top line revenue, increase basket side, decrease inventory costs, lost inventory and provide much greater brand loyalty to those customers by having a nice, personalized teachers. They know me by name. They know what I'm looking for in advance. Beautiful solution. >>So the online retail world did two crucial things. One is provided new way of customer to buy something and number two, it provided a new way for the retailer to learn something about the customer. Very, very powerful. But as you said, we're still last time. I checked physical things that move through space that used physical senses, too. Make decisions, Tactile. Do I like the color? You know the experience. I mean, I remember having arguments with people about whether the Apple stores are ever gonna have any impact in the world. And, boy, did they prove that experience of physically being there matters. So in many respects we're talking about, We're talking about creating spaces, the correspond to the experience that a customer wants in a way that doesn't force them into another channel. >>I think that is excellent. Thank you will hear security and character talks about who these are Aruba team. And they are renowned for taking a space and providing using technology and I, t and software and security to provide a total experience, an immersive experience for those that are occupying that. >>But that's not how retailers used to think. What they used to think was this is the space where I put my inventory where I show my product and then I'll put the catch register over here. What you guys I presume we're trying to do is show how. Show them how they could turn that physical space into a place that can bring in the online digital elements, complimented in a way that makes that door a source of different jack >>experience in the brick and mortar store and allows the comfort of Yeah, you know >>that makes it differentiated so that someone wants to go there, because that is a valuable experience in and of itself. >>And sadly, retailers of the past 40 years have always relied on big brand names to attract customers. If I have the best brands in the world, customers will come to me back. That scenario doesn't hold true anymore. You need to give them a reason. A personalized, curated experience for them to come in >>well, not least of which is the digital technology allows us to spin up new brands like overnight and so also so there's a there's it's having an erosion of effect on the other side of the inventory. So tell us a little bit about where you think over the next few years that differentiated in store experience is gonna be what is going to constitute great retail. >>I'll start enough shit. >>First and foremost, the expectations of millennials and other generations is more of that online experience. So I think I think retailers of the future have to be able to provide that customized experience. To be able to provide predicted people are not waiting in line is not an option in the future, right? I mean, even you. You look a waiting in line is not an option. I think that ability of you have to have more instantaneous gratification but allowing, if you will, the personalization being covered. I think that one expectation for those that want to sustain a business in retail in the future >>and add on to that right. I mean, the marketing managers are the store managers of the past have always relied on opinions rather than data and insights to make this better business stations. Where do I place my product? Where are my customer spending most of my time? It's just guess it's most of it was guessing. Now there is a technology out there where we can actually monitor what's happening inside your retail store and dead. While you can make better business nations to help you with your customer journeys, >>traffic, foot traffic, you know through video analytics and the data someone's hanging around the Nike booth or whatever you know financially, and you can purposely point them and give them suggestions of 20% off. And so you can personalize that experience. >>So wait. See Io client on DDE that's in the retail space on the way he described it is, you gotta break the whole thing down. Let me test you guys. You have a period of I want the experience of shopping on. The example that he gave me was a bike company a number of years ago who used flexible manufacturing to collapse the time high end bike to collapse, a time from order in the bike, getting the bike down to a few days. And they failed because the customer like waiting the process of buying, reducing time. Simple, straightforward, but also what they said. And this is the kind of flexibility we're talking about is some people don't wanna walk out of the store with the product they want to deliver to their home, so the store is again, not the place where the inventory is. It's the place where you experience the product and that they create an option. How would you like that? I like to be delivered to my house. No problem. There you go. Is that the kind of thing that we're talking about in the future? >>Absolutely. We call it the unified commerce of the Arm and channel shopping experience. You want to give the customer all the options available. Like you said, I could buy online shipping in store O. R. I can buy in store get into my house all the different options that a customer is looking for. A non online channel, which is easy and convenient. We want to do that in a brick and mortar as well, and our solution can help you do that as well. So you >>guys encounter a client that is, you know, declining same store sales management is concerned about, You know, the future. It seems like it's a tired sort of experience and, you know, that's sort of the end of the spectrum. And you want, you know, the to be his future. Stefano, the talk about where do you start so >>who brings what experts is. >>Actually, I'm gonna repeat what I said last time. Our mantra is First off, you gotta think big. Then you start small and then you scale fast. And what I mean, that what we mean by that is with the Lloyds capability. It's been a week and jointly come in and help a retailer. Let's think it through. Let's think you have how many branches looking to wear? What are your problems? What your inventory leak age. You know what your current experience, but you're in store WiFi. We can build a plan on what we can do. But the next big problem that we see is not about the technology is about the people in the process. How do you convince its How do you commit? Some who invest to change well, this through our proof of concept capabilities, we have the ability of starting small. Let's just go in and we can do through this architect modular proven architecture. We could do a starting Well, let's just start with some R F I. D tags and tags and start small. We can deliver the business value and calculate that and extrapolate that out if we apply that to your all your stores and scale fast. So we're making it. This be an on ramp for those retailers because they're saying what I do. I know I need to change, but what do I >>So you do like a test store model, right? Okay. And then what? That's your POC is actual. >>Yeah, And then So I wanna go back a little bit on this whole coyote offering. It's a composite offering, right? It takes a lot of technologies coming together and a lot of SMEs subject matter experts to come in and help you to build a whole solution. And that's where I think our solution is where it's ready to go, where all the pieces have been put together and can be easy from day one. The time to market has been drastically reduced because of this. Right? So we see a lot of value in that. >>So So you're able to say Okay, what kind of target customer? What kind of inventory? What's the cost of it? What's the turn? Take all those business attributes and then say we can map that back into a set of physical and system components that you can scale fast >>really comes around you. Three buckets were doing this to optimize an increase revenue, basket size conversions, everything timed revenue, decrease costs, efficiencies and inventory logistics people, uh, labor. And then providing a much greater experience of brand loyalty, which will also affect both costs and >>capture and capture additional data. So, for example, returns means two things costs, but also, somebody had a problem. >>So, uh, we're out of time, but so summarize kind of where you guys were at, >>uh, your solutions when it's gonna be available, you go to market, give us the >>tickets. That right now we're here at HP discovered we're previewing this connected consumer architecture. We're will deploy it. Calendar quarter one of next year will be the full announcement. We have contact information. We would love to engage in clients and start that discussion now around doing proof of concepts on dhe. We're going to be not only driving this collective retail solution that could be extrapolated into different use. Cases in markets were also continued to drive the Moorman industrial Internet of things and manufacturing offering around predicting maintenance, asset monitoring, maintenance that we talked about in Vegas. >>Great. Well, I hope next next Vegas come back with some examples and some a customer, and we could go through so that one of impact you've had, maybe you'll be through a POC. At that point. I'd >>love to get the cube into one of their poc >>a well loved. All right, guys. Thanks very much for coming on the Cube. All right. Good >>to see you. See? All right. Thanks. Keep it right there, >>buddy. We'll be back with our next guest day. Volonte for Peter Burke alive from Madrid 17.

but cube at servicenow knowledge 14 is sponsored by service now here are your hosts Dave vellante and Jeff trick here we go hi buddy we're back this is Dave vellante with Jeff freak this is the cube we go out to the events we extract the signal from the noise we have a crowd chatting on its crowd chat / no 14 so check that out put your tweets in crouch at awesome engagement app Frank's Lupin is here president CEO of service now Frank it's it's a pleasure to have you back on the cube great to see again great to be here thanks things how you feeling I'm feeling great no I got that keynote got the keynote out this morning you had the financial analyst in yesterday had the industry analyst and they're working you hard absolutely it's a circus yeah so your keynote this morning was great I was right up front they have a nice spot for the industry analyst so appreciate that take good notes but one of the themes that you struck was really hit home to me because you talked about transforming IT from essentially a cost center into a value producer and how service now is at the heart of that and and how the role of the CIO is changing so one of you could sort of summarize and talk a little bit about how you see the role of IT and generally in the CIO specifically changing and what role service now plays in that transformation yeah just just to give a little bit on macro context right that's sort of the worst of all scenarios that we see out there where I t is essentially viewed as as a commodity as a utility and as a result you know people don't see much impact I just want to get a cheaper cheaper cheaper and they want to cut more costs out of the infrastructure and staffing levels and so on and actually is just an organization that we're tolerating because I guess we have to have email and Internet access and all that sort of thing now you go looking into broader world around what technology has done to change business right what amazon has done based on their technology platform what we've seen an online banking you know what we're seeing an online education there's just just incredible examples of innovation using technologies now aighty hasn't done that for their own enterprises they happen in some instances are some some really great examples out there where I t did impacted business but by and large IT is not viewed as to go to people that know how to bring technology into business you know in a way that that really turns the tables on the competition do some mind-blowing things i always ask CIOs when i when i meet him and says what have you done in the last 12 months that really blew people's minds or in terms of applying technology to business problems right and they start sort of thinking like i'll actually it is surely nothing i can think of well that's probably you know a question you should be asking yourself all the time right if it's not when lightning in a bottle when it's not the sort of thing that sort of lights up the whole enterprise like we won't do it is we have to do this that excitement then you're shooting too low and you know in general I find the the cost obsession and IT is an indication that we're not looking for the opportunity and I think that's that that's it that's a damn shame or we're here to change that well you talked about panning for gold was that proposed here in California and it's also a propellant you your company is smoking hot and you know your your commonly associated with the likes of workday and Salesforce and sponsor must be very very proud of that but also there's gold and then RIT shops right there's goal than those organizations that's not being being mined and and you know I think you talk about your penetration is what twenty percent of your your target your global 2000 where we have footprint in about eighteen percent of the enterprises that we think are relevant and appropriate to us but within those eighteen percent you know we were probably a third saturated so so very early innings for service now even though we've achieved considerable scale and very high growth at that scale so when you go into one of your accounts can you discern actual that actual value production vision that you set forth can you see it can you touch it can you you know to this to a skeptic a prospectus yeah Frank that sounds good but can you actually sort of provide proof points yeah managing surface is just essential in terms of economizing and saving money and here's why no I'll give you some some very pedestrian examples that we've seen in real life and the human resources department and probably get the example because I t everybody sort understands how to how the game works right HR organizations historically have not had service models they have that email and phones and so on the problem just called somebody as a result that was a huge amount of work that preoccupied the HR organization that nobody knew what people were working on and the staffing grew and grew and grew to deal with the growing volume of ink wires and problems and changes and so on until they have systems service models and they have reporting and analytics that showed them what was consuming their time once you know that you can put initiatives in place to start dealing with the underlying causes that are driving that work I have seen HR organizations dwindle their staffing by 50% just by understanding what of this day we're working on right that's what service management is all about instead of just delivering service you're managing and once that quarter drops by the way IT organizations they get this in space right because you know large enterprises they got fifty hundred thousand one hundred fifty thousand instance flowing to their organization a month it's a huge consumer of resource right if you go to these other service domains and you see very similar things this layer of software really optimizes that resource well the way they attack it oftentimes is human resource doesn't that scare a lot of prospects away when they hear oh wow near cup service now and they're going to replace all these these people it's a it's a good question actually wrote a blog post about it recently as well there is no doubt that in the economy at large we're going to see massive substitution from people to systems why because the technology is here and the economic imperative is here it's very much a societal and social question but you know here's the thing see alternative you know are we going to try and stop it and not do it it's going to happen the markets are going to run their course what needs to happen is that we adjust you know for example you know in education we have a lot of teachers right what's going to happen to teachers when education is delivered through online streaming well teachers gobble you want to become crooklyn developers in other words evolve and change in their roles because education is going online slowly but let's go into why because the format the service experience is that much better it scales that much better in step much more economical than what we currently have well you said today in your key note that the system is broken you know I'm having to put four kids through school I appreciate a nudge there to the educational system why did it take so long I mean these are the IT guys ease of the technology guys in the organization they're there to deliver value why did it take so long for this kind of transformational yeah wave Steve Jobs has been the late Steve Jobs been quoted many times people don't know what they want until I show it to him and that's sort of what we're doing we're showing it to him that's what we did this morning we're showing people what they can aspire to that's what we're here for we're trying to stimulate inspire motivate give people a sense of mission right as opposed to keeping the lights on managing crises running around with your hair on fire that's not a very attractive you know a view to half of your organization and what you do all day right yeah so I have it struck again by your keynote the Affordable Care Act affectionately known as Obamacare they not the government not a customer of yours or what's the scoop oh no they could you have helped with had problem we could have for sure but then again many people cook that for the foot of people then software and technology they look at something like that yeah last night I set a dinner with Adam infrastructure for Kaiser Permanente and they had a certainly know the problems of open enrollment that a massive scale and certainly we didn't want to trivialize the problem it is really really hard to need to operate the service like that at the scale that that they need to but there is no doubt that you know we don't need any new core technology to build systems like that I mean the technology exists the skills exists sure that I want to walk better than so let's talk about your business a little bit this year third year now right since you've joined service now exactly three years this week yeah so let's sort of break that down but when you when you join service now that the discussion was around and you talked about this yesterday the the whole team and everybody was looking at help desk saying wow how can these these these values be justified and of course you blew that away and now people are beginning to understand that it's interesting to note that data domain you sold the company i think for what 2.5 billion the entire market is is now greater than the market that it replaced interesting that's right the market was three billion it's now I according obviously bigger than three billion and growing yeah you know so that's kind of interesting now that's a much more confined market you know you talked about the tons of the team they're being finite you always knew it was finite here it's different you guys have started to sort of fine tune your tam analysis and communicate that it's still hard because you just don't know the how people are going to use your software they're finding new ways but the team and I took a stab and I came up with 30 billion but it was a top-down it wasn't a bottom up and it was I had to get the blog post out so it's kind of a back of the napkin but still it's very very large clearly a multiple of the IT service management market so I wonder if you could talk about sort of the the evolution of your thinking in terms of the market opportunity with service now were you always sort of where we are today or that have to evolve over time now it has evolved I'd say dramatically obviously the expansion from what used to be called help desk management to IT service management basically you know exploded the market at least 5-fold and they were licensing five to ten times as many people on our system now for itsm purposes then we used to and in the mid 90s during to help desk area because back then all we did was licensed people ever physically on the help desk right people that would take phone calls and emails and so on now really everybody in the IT organization is an actor and a participant in the workflow of service management you may be a DBA maybe a network engineer you're going to get when an incident comes in or a problem is defined you're going to be part of that workflow right so that Dad expansion was not understood early on but beyond that services is everything is everywhere and services everything and every physical and even non physical assets have service models around them so once you start looking forward you see it absolutely everywhere you know I don't know what's a few billion among friends you know I know all that the numbers are but this is heavily transformational I think one of the things that people struggle with they're looking for a line of sight right in our company like workday is viewed very possibly why because they're seeing them take dollar for dollar market evaluation away from companies that they can identify recipe in Oracle and so on feels very credible to gamma that's 250 billion dollars or mark oh I can see those guys from work the Oracle Sapa okay take a chunk out of their eyes I know you go look at service now you need to have more imagination there's this great court from Arthur Schopenhauer that I showed you yesterday which said you know you know takedowns to hit a target that nobody else can hit but it takes genius to hit a target on nobody else can see right it's transformational right what worked it does is modern with what service now does this transformation is fundamentally different so when you came on to service now I presume your focus was putting in the infrastructure and the process is to make sure that you could scale just having watched you in your career you're you're big on growth and yeah you're pretty aggressive so so take us through sort of you know where you sort of started and what the emphasis was and and where it is now be clearly you're investing in sales and marketing you're investing in AP I didn't know this the substantial number of global 2000 companies in asia-pacific so that's another so how is that I mean break that down into maybe one or two or three sort of segments of your attention and effort there there's sort of you can sort of split up in two major stages or phases the first phase you know when when I took over the helm of the company was very much focused on operationalizing stabilizing scale being able to deliver what we're already doing in a consistent and predictable manner and that was not a minor task because because the company had grown so fast but hadn't been able to basically catch itself in terms of bill into business building the organization underneath its business so that preoccupied us tremendously the whole thing about cloud is is not like there's a lot of people you know running around out there to actually no clout that understand clot that can build clouds and how many people do you know that I've actually done this because there's you know three years ago I mean they were far and few we actually recruited people that have built the original cloud of ebay because those guys were pioneers they have solved a lot of the problems associated with cloud early on we saw a lot of people that understood data centers the cloud this is almost in verse two data centers the mentality that you need to to run them davos phase one before us and we sort of got through that you know about you know a year and a half ago for sure about a year ago and we started to shift gears you know really from the operational infrastructure concentration that we've had to really trying to drive strategically the business towards enterprise service management they're really expanding the addressable market way beyond where we had been before we were going to market until i see i l-look itsm replacement you have to do it you're sitting on 10 15 20 year old software it's crappy it's got to go fine we're going to do that right but we want to give you this much bigger perspective managing service in the enterprise and you know make that a mission that you can own as a CEO and drive throughout your organization over a period of years and a lot of our customers have road maps that are 24 36 months and it shows you all the things they're going to knock off over that period of time and all the different you know parksley enterprises to sell is its engineering its market yourself so on yes okay so Tam expansion and now obviously accessing that to him we hire in a lot of sales people and go to market I was struck walking around the exhibit hall last night because you just announced app creator I think last year yep knowledge I was struck by you know that the booth down there with the number of apps I mean it's just astounding where that's going wouldn't have predicted you know some of them that I that I saw so that's obviously part of the the tam expansion as well I wonder if we could talk about the importance of a single system of record in order to achieve that vision because it's not always easy right politically people want to keep data in their own little silos so how does that work you can't force it in because it sort of just happen organically how critical is that to your success I mean when you have applications or services that relate to each other like for example you know this morning we showed in a demo I think we're sure like seven or eight different applications in the course of one demonstration the reason that is a single system of record matters so much when you do that is all these apps need to be aware of each other right when your when your staff in the projects you need to look at the resource management well that resource management relates to the skill requirements as well the skills that are available right what you don't want is these apps living in their own universes with their own data moss your own database because now you have to start the hack integrations between them to make any sense out of that and that's the world we lived and that's been the bane of software existence for for so long the ServiceNow said I'm not going to do that okay every application that relates to any other application they're going to be operating on exactly the same data model and by the way you see that throughout our platform right when you bring up an asset in the CMDB like a server or a rather or Santa whatever it is you'll be able to see all the other data artifacts throughout the platform like instantly problem of changes in projects and tasks that relate to that particular asset there's nobody else that can do that right and we provide the 360-degree visibility that makes application development so compelling because you know all the users are already defined the system you don't even have to get started with that you only define users once right you reuse all that and all the other artifacts already exists so you get this data gravitas that the more data that is there to richer the application with almond environment becomes yeah we talked about this too at the analyst meeting about the relationship to your M&A strategy you've got to be selective it's got to fit in to that single system of record does that however limit your choices in rule absolute limit our choices but you know this is the commitment from an architectural standpoint that we make us that we're not going to repeat what legacy vendors have done is I mean you know 50 apps whole stand along to hack integrations between them as I said that's the world our customers want to leave behind because it was just horrible former from an efficiency standpoint after a while all you people do is managing the operability of the patchwork plethora of assets that they have they're not doing anything productive and in our world they don't they do none of that right they're not upgrading software because it's the clouds you know we do that and they're not hacking integrations between apps because there is no constant of integration on service not with all the apps are aware through a shared data model so is there still plenty of M&A opportunity for you out there though I mean your stocks up I know it's off a little bit lately which I think it's really healthy I'm happy about that nice little breather but still you know you've made great progress adding value you can obviously use your stock as acquisition card co there's still plenty of opportunities for you notice there's absolutely tons of opportunities again in a day you know software infrastructure is it's very similar and very common between application itself for us to bring an application into our user interface framework I mean they have to have a user interface framework of some sort right so whether we replace what they have with ours with a replace the data structure we replace the underlying cloud we can do all those things right the question is is there going to be hard is it going to be expensive is it going to be time-consuming or maybe not as much and that will influence how attractive we are to the asset all right Frank we're way over on time but I could go forever i mean really appreciate you coming on CX for having us here it's really fantastic event all right keep it right to everybody we're back with our next guest this is the cube we're live from moscone right back