>> from Austin, Texas. It's Theo Cube covering your storage Accelerate 2019 Brought to you by pure storage. >> How do y'all welcome back Thio, the Cube leader In live coverage we're covering day to a pure accelerate 19 Lisa Martin With Day Volonte Welcoming to the cue for the first time from SG Mark Peters principal analyst and practice >> Oh, my apologies. So young. >> I wish I wish that was true. >> In fact, one of the first analysts I think that's true if not the first analyst ever on the Q. But, >> well, I'll say Welcome back. Thank you. We're glad to have you here. So you've been with Ishii for quite a while, You know, the storage industry inside and out, I'm sure pure. Just about to celebrate their 10th anniversary. Yesterday we heard lots of news, which is always nice for us to have father to talk about. But I'd love to get your take on this disruptive company. What they've been able to achieve in their 1st 10 years going directly through is Dave's been saying the last two days driving a truck there am sees, install, base, back of the day, your thoughts on how they've been able to achieve what they have. >> That'll last me to talk about something I really want to talk about. And I think it addresses your question. How have they been able to do it? It's by being different. Andi, I don't know. I mean, obviously you do a stack of into sheer and maybe other people have talked about that. But that is the end. When I say different, I don't necessarily mean technology. I have a kind of standard riff in this business that we get so embroiled in the technology. Do not for one second think it's not important, but we get so embroiled in that that we missed the human element or the emotional element on dhe. I think that's important. So they were very different. They created, you know, these thes armies of fans who just bought into what they did. Now, of course, that was based on initially bringing flash to the market making flasher Fordham. Well, they've extended that here with the sea announcement and other things as well, so I don't want to just focus on that, but you know, they continue to do things differently with the technology, But I think what really made them an attractive company and why they've survived 10 years on her now big sizable is because they were a different sort of company to deal with. >> Are you at all surprised that the fourth accelerate is in Austin, Texas? Dell's backyard? Yes. Well, they're disruptive. They're different. They're bold. We're okay, >> you see, But But also, did you go to the other three? >> Uh, the last two. I was trying to remind >> myself where they were. I know one was kind of on a pier in a ballpark in San Francisco. One words. You remember the one that was in that you Worf, But that was a a rusting, so cool it was. But it was a metaphor in a rusting spinning desk, right. But it was also such a different sort of place on, So I probably was also a few it D m c. But I agree. And then the last one was in some sort of constantly. Yes, So >> they were all >> different. And so I Yes, I know this is Dell's backyard. Probably literally, because I'm sure Michael owns a lot of the place. It's also kind of very normal place and so there's a little bit of me that I don't want to use the world worry. But as you grow up and of course, we've got the 10 year anniversary, we're in Austin. What's the tagline of Austin? >> I don't know. No. Keep Austin weird. Okay, >> I >> don't want to suggest appears weird, but they were always a little different, I said. That's why I think they were attracted as much as anything. Yes, that's why I had the hordes of admiring fans, all wearing their orange socks and T shirts and cheering on DDE as they get older as they get more mature as they expand their portfolio. Charlie was on stage talking not so much about scale the problem when he was asked, but more about complexity. As you get more complex, you actually get more normal on, So I don't know that weird is the word, but a bit like Austin pure needs to keep your interesting. >> I like that >> Very interesting. So >> you and I, >> we've been around a while. We were kind of students of the industry. I was commenting earlier that it's just to me very impressive that this company has achieved a new definition of escape velocity receiving a billion dollars show. First company since Nana to do it, I gotta listed three. Park couldn't do it. Compelling data domain isolani ecological left hand. Really good cos all very successful companies. Uh, >> what do you think? It's >> all coming out of >> the dot com crash. Maybe that pay part of it. Pure kind of came out of the, you know, the recession. Why >> do you >> think Pure has been able to achieve that? That you know, four x three par, for example in terms of revenues. And it's got a ways to go. They probably do 1.7 this year. I think they have aspirations for five on enough there. Publicly stated that they probably have, right? Of course. Why wouldn't they thoughts on why they were able to achieve that? What were the sort of factors genuinely know? Having no idea what you were gonna ask me. And now actually, listening to question let me You've just made me think of something that I had not really thought. So I took so long to ask the question formulated. And you are so, um, you used the word escape velocity. Let's think about planes. I mean, you know, I think it's a V one, isn't it to take off, Mitch? Maybe not the same as escape, which is in the skies. But you get the point. How long to really take off? Be independently airborne? They gave themselves. I don't know how much was by design default how it really happened? I don't know. They had an immensely long runway. You think the whole conversation about pure for years and years was Oh, yeah, yeah, they're making loads of revenue, but they lose 80 cents every time they get 50. That was the conversation for years and years. I know they've now turned that corner, and I think the difference. Actually, the more I think about it, yes. You can talk about product. Yes, you can talk about the experience. I think those things are both part of it. But the other companies you named had cool things too. They all had cool products you had. What was it? The autopilot thing with compelling. And they had lots of people cheering. Actually, in this building, I think three part was yellow and kind of cool in a different part of the market. and disruptive. But they were both trying to get to the exit fast. Whether the exit was being bought or whether it was going under. I don't know it was gonna be one or the other, and for both of them, they got bought. I don't think pure had that same intention, and it's certainly got funding and backers that allowed it to take longer. So that's a really good point. I think there's a There's a new Silicon Valley playbook. You saw it with service. Now, with Frank's limits like the Silicon Valley Mafia's Sweetman Dietzen, Bush re at Work Day, they all raised a boatload of cash and a sacrifice profits for for growth. I mean, I remember Dave Scott telling me, you know, when he came on, the board was saying, Hey, we're ready to you know, we're prepared to raise 30 million. He said, I need 80 eighties chump change today compared to what these guys were raising. Well, I mean, I think I mean, they pretty quickly raised hundreds of millions, didn't they? They weren't scraping by on 50 or 80 million, which which is what you see. You sort of want one more thought just this escape velocity idea, I think is interesting because the other thing about escape velocity is partly how long you take runway orbit, whatever. But it's the payload on, you know, The more the payload, the longer it takes the take off the ground or the more thrust you need thrust in this case, his money again. But if you think about it, this is another thing where he and I gotta say, we've been doing this a long time. The storage industry over decades has been one of the easiest industries to enter on one of the hardest to actually do well. Why is that? Because the payload is heavy. It's easy to make a box that works fast, big whatever you want in your garage. Two men on one application working for a day. It's really hard to be interoperable with every app, every other system, operational needs and so on and so forth. And so the payload to be successful. I think they understood that, too. So, you know, they didn't let ourselves get distracted by like the initial shiny, glittery we need to get out of this business. >> I love the parallels with payloads and Rockets. Because, of course, we had Leland Melvin inner keynote this morning. I'm a former NASA geek. Talk to us about your thoughts on their cloud strategy, the evolution of the partnership with a W s. We talked about that yesterday. Sort of this customers bringing this forcing function together, but being able to sort of simplify and give customers this pure management playing the software layer wherever their data is your thoughts on how their position themselves for multi cloud hybrid world. >> Okay, two thoughts, one cloud. Then you also used the word simplicity. So I want to talk about both of those things if I can, Um I don't know. I'm sorry. This is not a very good answer. I think it's the truth. I mean, you can't exist in this world if you haven't got a cloud story, and it better be hybrid or pub. Oh, are multi, whichever you prefer. I think those have very distinct meanings, by the way, but we would be here for an hour and 1/2. It'll be a cube special to really get into that. However, So you've got to do this. I mean, there is just, you know, none of the clients they're dealing with. Almost none. That's not research. I'll talk research in a second but glib statement. Everyone's got a cloud strategy. It doesn't matter which analyst company you put up the data, we'll do it. I want to talk about a cup, some research we've done in a second. But everyone will tell you a high number of people who have a cloud first strategy, whether that's overall or just the new applications or whatever. So they've got to do it. What's crucial to whether or not they succeed is not the AWS branding, because everyone's got a W s branding me people that they don't work with or will not work within the next year or two. I mean, I'm sure there's one God you look like you're anxious, you're on a roll. But simplicity is really important. So David knows we do a lot of research early yesterday, one of our cornerstone piece of researchers think all the spending intentions we do every year. One of the questions this year's Bean for a couple of years now is basically saying simple question Excuse. The overuse of the word is how much more complex is I t you know, in your experience, more or less complex. And it was two years ago. I t broadly and you know that I love this question. You know the answer on dhe. 66% of people say it is more complex now than it was two years ago. People don't want complexity. We all know that there's not enough skills around the research to back that up. A swell on dso Simplicity is really important cause who was sitting in this seat before May I think I will say that the company here was founded on simplicity. That was the point. They were to be the apple of storage. I think that's why people love them. They were just very easy to use on dso coming finally back to your question. If they can do this and keep it simple, then they have a better chance of success than others. But how do you define successful them isn't keeping their customers are getting new ones. That's a challenge. >> They do have a very high retention rate. I want to say like 140% but things like we have our dinner for two U percent attention. Yes. How did >> you do? So? So this is is interesting. It's actually 100 and 50% renewal rate. Oh, by the Mike Scarpelli CFO Math of renewal rates on a dollar value on net dollar value renewal rate subscriptions. Mike Scarpelli was the CFO of service. Now invented this model and service now had, like, 100 and whatever 1500 whatever 27. And so it's a revenue based renewal. Makes sense. Sorry for one second you're retaining more people than you >> go. 101 100 >> 50% is insane. 105 >> percent is great. Yeah, 150% is interrupted. Your question. >> Well, I'm just saying >> it's good. Good nuance, >> Yes, Thanks for clarifying its. You know, companies can say whether it's one. Appears customers are pure themselves or competitors. We are cloud. First, we have a cloud for strategy, and a company like pure can say we deliver simplicity, those air marketing terms until they're actually put in the field and delivered. So in your perspective, how does pure take what I T professionals are saying? Things are so much more complex these days? How does a pure commit and say simple, seamless, sustainable, like Charlie, Giancarlo said yesterday. And actually make that a reality. Well, I >> mean, obviously, that's their challenge, and that's what they have work to do to some degree. And this comes back to what I was saying that to some degree it becomes self fulfilling because your that's why your customers come back with more money because they bought into this on. So as long as they're kept happy, they're probably not going to go and look at 20 other people. I'm not saying they never had any of that simplicity to start off with, but it's very interesting if you go to a pure event, their customers and this might be sacrilege sitting in this environment don't talk about the product. They talk about the company, >> right? >> The experience There's that word again, off being appear customer yes on So they're into it. They brought into whatever this is, and as long as the product, please do not strike me down is good enough. I'm not saying that's all it is. I think it's a lot better that, but as long as it's good enough, but you're really well looked after a few minutes ago, when I'm saying that's why I think this market is about so much more than just how fast can you make the box? How big can you make the box? How smart can you make the box? All of those are interesting, But ultimately, I'm only looking at Dave because he's so old. Ultimately, technology is a leapfrog game. Yeah, branding is not >> Beaver >> s O. So that's a good point. But we've not seen the competitors be able to leap frog pure or be able to neutralize them the way, for example, that DMC was able to somewhat neutralize three par by saying, Oh, yeah, we have virtual ization, too, you know, are thin provisioning. Rather. Yeah. And even though they had a thin provisioning bolt on, it was it was good enough. Yes, they did the check box. You haven't seen the competitors be able to do that here? I'm not saying they won't, but are they? I think, um, I was going to say basically this on my MBA, but I don't have one, so I can't say that, but, you know, I've read that. Read the books. If you look at Harvard Business School cases, I think the mistake made by the competition was to assume that Pierre would go away, that they would each try it or that it would fail on will make fun of the fact they don't make any money for the first few years on dhe. You know, the people going to them, we're gonna be sadly mistaken when they can't handle these features, whether that be cloud or whether that be analytics or fresh blades or whatever else again to add on. They thought they would just go away that there are great parallels in history when you let competition in and you just keep thinking at each point they're going to go away. Spot the accent. British motorcycle industry. When the Japanese came in, they literally said, Well, let them. There are records. We'll let them have the 50 cc market because we don't really care about that. But we'll make the big bikes Well, Okay, well, let them have 152 100 cc because really, that doesn't matter. And 10 years later, there was no industry well, and I think what happened with the emcee in particular because, let's face it, pure hired a bunch of DMC wraps. They took your product and, as I've said before, they drove a truck to the the symmetric V n X install base Emcee responded by buying X extreme io and they said, You know what? We're sick of losing the pure. We're gonna go really aggressive into our own accounts and we're gonna keep them with flash. And then what happened is their accounts. It Hey, we're good. We don't actually really need more stores because the emcee tried to keep it is trying to keep both lines alive. And now they're conflicted, pure. You know, I had a what? We're mission. >> You thought not up a great point. Sorry. Just just because I think >> thing about that is if you look at how e. M. C using my words accurately usedto act, I think you said that, too. So I'm not criticizing Adele is they were exceptional organized marketing organization. We go that way. And if you're not going that way, you got a big problem both as a custom, Miranda's UN employees. But the problem with that is also is that way would sometimes become that way, and then it become that way on the product depending what was doing well. So, for example, they had, you know, tens of thousands of feet, all marching to the extreme. I owe beat for a few quarters, and then they would go off on to the next product pure. Just carried on, marching to its beat down that runway escape velocity question >> appoint you brought up a minute ago before we wrap her. That I think is really interesting is that you write your customers talk about the experience. I think we were talking with a customer yesterday. Dave was asking, Well, what technologies are you think he started talking about workloads? So when we're at other events, you hear other names of boxes brought up here to your point. It is all about the experience so interesting and how they're Can you continuing to just be different, but to wrap things up since they're in my ear, we're almost that time. I just wanna take a minute to ask you kind of upcoming research. What are some of the things that you're working on? Their really intriguing you and SG land. I think right >> now, from my perspective, I mean, as a company would continue to do 27,000 different things because there's so much going on in the market. So whether that's security is massive area of focus right now, even improvements in networking. So it's not just the regular run of the mill, you know, Bigger, faster, cheaper. Which is always there s o A. I, of course, in all these again, you may both know you will now doesn't mean we're always looking at buying intentions rather than counting boxes. So it's really where people are moving over the next few years. That said to May. I think what's really interesting is to other things. Number one is to what extent can. I don't think we can really measure this easily. But to what extent can we get people talking about pure again to acknowledge that emotions, attitudes, experiences are an important part of this business? I'm old enough that I'm not scared of saying it, and I think pure is a company is not scared of saying it, you know, I think a lot of companies don't want to admit that Andi all know that they have different corporate cultures and mantras and views on their customers reflect that two on The other thing just generally is the future of I t. As a whole. I know that. So, I mean, I'm doing this because none of us really know what that is, but, you know, clearly way gotta stop talking about the cloud At some point. It's just part of I t. It's not a thing as such. It's just another resource that you bring to bear. I don't know that we're yet at that point, but that's >> got to happen. >> Interesting. Thanks for looking. I'm imagine this was a crystal ball. But Mark, I wish we had more time because I know we could keep talking. But it's been a pleasure to have you >> got the whole multi cloud hybrid cloud for an hour and 1/2. >> We come back, we'll have that discussion. Like what I'll means and yeah, back anytime. >> Excellent. Thank you for joining David. Me. Thank you for David. Dante. I'm Lisa Martin. You were watching the Cube from pure accelerate 19

>> from Boston, Massachusetts. It's the queue covering active eo 2019. Data driven you by activity. >> Welcome back to Boston. Everybody watching the Cube, the leader and on the ground tech coverage money was David wanted here with my co host. A student of John for is also in the house. This is active FiOS data driven 19 conference. They're second year, John. Her stick is here is the co founder and CEO of on shape John. Thanks for coming in the Cube. Great to have you great to be here. So love the cofounder. I always ask your father. Why did you start the company? Well, we found it on shape because >> we saw an opportunity to improve how every product on Earth gets developed. Let people who develop products do it faster, B'more, innovative, and do it through a new generation software platform based in the cloud. That's our vision for on shape, That's why. Okay, >> so that's great. You start with the widened. The what is just new generation software capabilities to build the great products visualized actually create >> way took the power of cloud web and mobile and used it to re implement a lot of the classic tools for product development. Three d cad Data management Workflow Bill of Materials. He's may not mean anything to you, but they mean a lot to product developers, and we believe by by moving in the cloud by rethinking them for the cloud we can give people capabilities they've never had before. >> John, bring us in tight a little bit. So you know, I think I've heard a lot the last few years. It's like, Well, I could just do everything a simulation computer simulation. We can have all these models. They could make their three D printings changing the way I build prototypes. So what's kind of state of the state and in your fields? So >> the state of the Art R field is to model product in three dimensions in the computer before you build it for lots of reasons. For simulation for three D printing, you have to have a CAD model to do it, to see how it'll look, how parts fit together, how much it will cost. Really, every product today is built twice. First, it's built in the computer in three dimensions, is a digital model, then it's built in the real world, and what we're trying to do is make those three D modeling and data management collaboration tools to take them to a whole nother level to turbo charge it, if you will, so that teams can can work together even if they're distribute around the world. They work faster. They don't have to pay a tax to install and Karen feed for these systems. You're very complicated, a whole bunch of other benefits. So we talk about the cloud model >> you're talking about a sass model, a subscription model of different customer experience, all of the above, all of the above. Yeah, it's definitely a sass model we do on Ly SAS Way >> hosted and, uh, Amazon. Eight of us were all in with Amazon. It's a it's a subscription model, and we provide a much better, much more modern, better, more productive experience for the user CIA disrupting the traditional >> cad business. Is that Is that right? I mean more than cat cat Plus because there's no such thing as a cad company anymore. We're essentially disrupting the systems that we built because I've been in this business 30 38 years now. I've been doing this. I feel like I'm about half done. Really, really talking about >> your career. Way to start out. Well, I grew up in Chicago. I went to M I t and majored in mechanical engineering and knew howto program computers. And I go to get an internship in 1981 and they say computers, mechanical injury. You need to work on CAD. And I haven't stopped since, you know, because Because we're not done, you know, still still working here. You would >> have me, right? You can't let your weight go dynamic way before we get off on the M I t. Thing you were part of, you know, quite well known group. And Emmet tell us a little bit >> about what you're talking about. The American society of Mechanical Engineer >> has may I was actually an officer and and as any I know your great great events, but the number 21 comes to >> mind you're talking about the MIT blackjack team? Yes, I was, ah, player on the MIT blackjack team, and it's the team featured in movies, TV shows and all that. Yeah, very exciting thing to be doing while I was working at the cath lab is a grad student, you know, doing pursuing my legitimate career. There is also also, uh, playing blackjack. Okay, so you got to add some color to that. So where is the goal of the M I T. Blackjack team? What did you guys do? The goal of the M I t blackjack team was honestly, to make money using legal means of skill to Teo obtain an edge playing blackjack. And that's what we did using. Guess what? The theme of data which ties into this data driven conference and what active Eo is doing. I wish we had some of the data tools of today. I wish we had those 30 years ago. We could have We could have done even more, but it really was to win money through skill. Okay, so So you you weren't wired. Is that right? I mean, it was all sort of No, at the time, you could not use a computer in the casino. Legally, it was illegal to use a computer, so we didn't use it. We use the computer to train ourselves to analyze data. To give a systems is very common. But in the casino itself, we were just operating with good old, you know, good. This computer. Okay. And this computer would what you would you would you would count cards you would try to predict using your yeah, count cards and predict in card. Very good observation there. Card counting is really essentially prediction. In a sense, it's knowing when the remaining cards to be dealt are favorable to the player. That's the goal card counting and other systems we used. We had some proprietary systems to that were very, very not very well known. But it was all about knowing when you had an edge and when you did betting a lot of money and when you didn't betting less double doubling down on high probability situations, so on, So did that proceed Or did that catalyze like, you know, four decks, eight decks, 12 12 decks or if they were already multiple decks. So I don't think we drove them to have more decks. But we did our team. Really. Some of the systems are team Pioneer did drive some changes in the game, which are somewhat subtle. I could get into it, you know, I don't know how much time we have that they were minor changes that our team drove. The multiple decks were already are already well established. By the time my team came up, how did you guys do you know it was your record? I like to say we won millions of dollars during the time I was associated with the team and pretty pretty consistently won. We didn't win every day or every weekend, but we'd run a project for, say, six months at a time. We called it a bank kind of like a fund, if you will, into no six months periods we never lost. We always won something, sometimes quite a bit, where it was part of your data model understanding of certain casinos where there's certain casinos that were more friendly to your methodology. Yes, certain casinos have either differences in rules or, more commonly, differences in what I just call conditions like, for instance, obviously there's a lot of people betting a lot of money. It's easier to blend in, and that's a good thing for us. It could be there there. Their aggressiveness about trying to find card counters right would vary from casino to casino, those kinds of factors and occasionally minor rule variations to help us out. So you're very welcome at because he knows is that well, I once that welcome, I've actually been been Bardet many facilities tell us about that. Well, you get, you get barred, you get usually quite politely asked toe leave by some big guy, sometimes a big person, but sometimes just just honestly, people who like you will just come over and say, Hey, John, we'd rather you not play blackjack here, you know that. You know, we only played in very upstanding professional kind of facilities, but still, the message was clear. You know, you're not welcome here in Las Vegas. They're allowed to bar you from the premises with no reason given in Las Vegas. It's just the law there in Atlantic City. That was not the law. But in Vegas they could bar you and just say you're not welcome. If you come back, we'll arrest you for trespassing. Yeah, And you really think you said everything you did was legal? You know, we kind of gaming the system, I guess through, you know, displaying well probabilities and playing well. But this interesting soothe casinos. Khun, rig the system, right? They could never lose, but the >> players has ever get a bet against the House. >> How did >> you did you at all apply that experience? Your affinity to data to you know, Let's fast forward to where you are now, so I think I learned a lot of lessons playing blackjack that apply to my career and design software tools. It's solid works my old company and now death. So System, who acquired solid words and nowt on shape I learned about data and rigor, could be very powerful tools to win. I learned that even when everyone you know will tell you you can't win, you still can win. You know that a lot of people told me Black Jack would never work. A lot of people told me solid works. We never worked. A lot of people told me on shape would be impossible to build. And you know, you learn that you can win even when other people tell you, Can't you learn that in the long run is a long time? People usually think of what you know, Black Jack. You have to play thousands of hands to really see the edge come out. So I've learned that in business sometimes. You know, sometimes you'll see something happened. You just say, Just stay the course. Everything's gonna work out, right? I've seen that happen. >> Well, they say in business oftentimes, if people tell you it's impossible, you're probably looking at a >> good thing to work on. Yeah. So what's made it? What? What? What was made it ostensibly impossible. How did you overcome that challenge? You mean, >> uh, on >> shape? Come on, Shake. A lot of people thought that that using cloud based tools to build all the product development tools people need would be impossible. Our software tools in product development were modeling three D objects to the precision of the real world. You know that a laptop computer, a wristwatch, a chair, it has to be perfect. It's an incredibly hard problem. We work with large amounts of data. We work with really complex mathematics, huge computing loads, huge graphic loads, interactive response times. All these things add up to people feeling Oh, well, that would never be possible in the cloud. But we believe the opposite is true. We believe we're going to show the world. And in the future, people say, you know We don't understand how you do it without the cloud because there's so much computing require. >> Yeah, right. It seems you know where we're heavy in the cloud space. And if you were talking about this 10 years ago, I could understand some skepticism in 10 2019. All of those things that you mentioned, if I could spin it up, I could do it faster. I can get the resources I need when I needed a good economics. But that's what the clouds built for, as opposed to having to build out. You know, all of these resource is yourself. So what >> was the what was the big technical challenge? Was it was it? Was it latent? See, was it was tooling. So performance is one of the big technical challenges, As you'd imagine, You know, we deliver with on shape we deliver a full set of tools, including CAD formal release management with work flow. If that makes sense to you. Building materials, configurations, industrial grade used by professional companies, thousands of companies around the world. We do that all in a Web browser on any Mac Windows machine. Chromebook Lennox's computer iPad. I look atyou. I mean, we're using. We run on all these devices where the on ly tools in our industry that will run on all these devices and we do that kind of magic. There's nothing install. I could go and run on shape right here in your browser. You don't need a 40 pound laptop, so no, you don't need a 40 pound laptop you don't need. You don't need to install anything. It runs like the way we took our inspiration from tools like I Work Day and Sales Force and Zen Desk and Nets. Sweet. It's just we have to do three D graphics and heavy duty released management. All these complexities that they didn't necessarily have to do. The other thing that was hard was not only a technical challenge like that, but way had to rethink how workflow would happen, how the tools could be better. We didn't just take the old tools and throw him up in a cloud window, we said, How could we make a better way of doing workflow, release management and collaboration than it's ever been done before? So we had to rethink the user experience in the paradigms of the systems. Well, you know, a lot of talk about the edge and if it's relevant for your business. But there's a lot of concerns about the cloud being able to support the edge. But just listening to you, John, it's It's like, Well, everybody says it's impossible. Maybe it's not impossible, but maybe you can solve the speed of light problem. Any thoughts on that? Well, I think all cloud solutions use edge to some degree. Like if you look at any of the systems. I just mentioned sales for us workday, Google Maps. They're using these devices. I mean, it's it's important that you have a good client device. You have better experience. They don't just do everything in the cloud. They say There, there. To me, they're like a carefully orchestrated symphony that says We'll do these things in the core of the cloud, these things near the engineer, the user, and then these things will do right in the client device. So when you're moving around your Google map or when you're looking this big report and sales force you're using the client to this is what are we have some amazing people on her team, like R. We have the fellow who was CTO of Blade Logic. Robbie Ready. And he explains these concepts to make John Russo from Hey came to us from Verizon. These are people who know about big systems, and they helped me understand how we would distribute these workloads. So there's there's no such thing is something that runs completely in the cloud. It has to send something down. So, uh, talk aboutthe company where you're at, you guys have done several raises. You've got thousands of customers. You maybe want to add a couple of zeros to that over time is what's the aspirations? Yeah, correct. We have 1000. The good news is we have thousands of customer cos designing everything you could imagine. Some things never would everything from drones two. We have a company doing nuclear counter terrorism equipment. Amazing stuff. Way have people doing special purpose electric vehicles. We have toys way, have furniture, everything you'd imagined. So that's very gratifying. You us. But thousands of companies is still a small part of the world. This is a $10,000,000,000 a year market with $100,000,000,000 in market cap and literally millions of users. So we have great aspirations to grow our number of users and to grow our tool set capability. So let's talk to him for a second. So $10,000,000,000 current tam are there. Jason sees emerging with all these things, like three D printing and machine intelligence, that that actually could significantly increase the tam when you break out your binoculars or even your telescope. Yes, there are. Jason sees their increasing the tam through. Like you say, new areas drive us So So obviously someone is doing more additive manufacturing. More generative design. They're goingto have more use for tools like ours. Cos the other thing that I observed, if I can add one, it's my own observations. I think design is becoming a greater component of GDP, if you will, like if you look at how much goods in the world are driven by design value versus a decade or two or when I was a child, you know, I just see this is incredible amount, like products are distinguished by design more and more, and so I think that we'll see growth also through through the growth in design as an element of GDP on >> Jonah. I love that observation actually felt like, you know, my tradition. Engineering education. Yeah, didn't get much. A lot of design thing. It wasn't until I was in industry for years. That had a lot of exposure to that. And it's something that we've seen huge explosion last 10 years. And if you talk about automation versus people, it's like the people that designed that creativity is what's going to drive into the >> absolutely, You know, we just surveyed almost 1000 professionals product development leaders. Honestly, I think we haven't published our results yet, So you're getting it. We're about to publish it online, and we found that top of mind is designed process improvements over any particular technology. Be a machine learning, You know, the machine learning is a school for the product development. How did it manufacturers a tool to develop new products, but ultimately they have to have a great process to be competitive in today's very competitive markets. Well, you've seen the effect of the impact that Apple has had on DH sort of awakening people to know the value of grace. Desire absolutely have to go back to the Sony Walkman. You know what happened when I first saw one, right? That's very interesting design. And then, you know, Dark Ages compared to today, you know, I hate to say it. Not a shot at Sony with Sony Wass was the apple? Yeah, era. And what happened? Did they drop the ball on manufacturing? Was it cost to shoot? No. They lost the design leadership poll position. They lost that ability to create a world in pox. Now it's apple. And it's not just apple. You've got Tesla who has lit up the world with exciting design. You've got Dyson. You know, you've got a lot of companies that air saying, you know, it's all about designing those cos it's not that they're cheaper products, certainly rethinking things, pushing. Yeah, the way you feel when you use these products, the senses. So >> that's what the brand experience is becoming. All right. All right, John, thanks >> so much for coming on. The Cuban sharing your experiences with our audience. Well, thank you for having me. It's been a pleasure, really? Our pleasure. All right, Keep right. Everybody stupid demand. A volonte, John Furry. We've been back active, eo active data driven 19 from Boston. You're watching the Cube. Thanks

>> Narrator: Live from Orlando, Florida, it's The Cube covering Grace Hopper's Celebration of Women in Computing brought to you by Silicon Angle Media. >> Welcome back to The Cube's coverage, we are wrapping up day one of the Grace Hopper Conference here in Orlando, Florida. I'm your host Rebecca Knight along with my co-host Jeff Frick. Jeff, it's been a great day. What's been your highlight? >> The highlight was Megan Smith. We were really excited to get her on. We tried to get her on last year. She's a really hard get. She's a super high energy, super smart lady. >> So she's the third CTO of the US. >> She's fantastic. We got to go back and read the tape, but there's probably an hours worth of material there that we could've followed up on her. I think she was definitely terrific. Also of course Brenda, the new president of Anita Borg. Doing the research on her and understanding what she accomplished at the Chicago Public School System is just phenomenal, something we've talked about time and time again. Are we turning a corner? Do people understand that computer science is a basic thing you need to learn in 2017, like biology, like math, like reading and writing and arithmetic. I think those were two terrific points of the day. >> I completely agree. We've had those veteran women of the technology industry, but then we also have had two young up-and-comers on the show, Jasmine Mustafa, who is the head of Roar for Good, which is a B Corp that makes a wearable self-defense tool, and then just now, we had Morgan Burman of Milkcrate, which does a platform that helps companies and non-profits measure and grow social and environmental impact. It's really exciting to sort of see the baton being passed, you can almost witness it being passed. >> Right, right, and it physically is. From Kelly, who we will have on Friday, to Brenda. So we're absolutely seeing it. >> Rebecca: Right. >> The other piece I'm taking away... You're hearing from Boston, and I hate to do the sports analogy, but I am anyway. Most great quarterbacks, Tom Brady, jumping out having a huge chip on their shoulder. They were passed up, they were told they couldn't do it, and they continued to excel, way more than the fair-haired people that have an easy path. So many times today, we heard about being told I can't do it and using that, internalizing that, as a force to do it. Debra, the physicist, being told by her mom overtly don't be a physicist a number of times, the Roar story again you can't do this. Even Erin Yang from Work Day said specifically I want to surprise people, I don't want them to know what I'm going to be able to do. Really, this concept of having a chip on your shoulder and taking negative feedback and turning it into a positive spin that you can feed off of, really important attribute that I don't think enough people have, they take the hit and absorb the hit instead of taking the hit and saying I'm going to prove you wrong. This does not apply to me. I think that's another thing that I did not expect to hear today but came up over and over again. >> No, I agree. We also heard, and this is really the Silicon Valley mantra right now, is Fail Fast. We've been hearing about redefining failure and one of our guests said don't even use that word, make up some sort of safe word for yourself. It's not that I failed in that endeavor, it didn't work out. But no matter what, you cannot be deterred from that. >> Right, and you got to learn and you got to move on. I tell people a lot of times, it's kind of like the old sales analogy. If your hit rate is one out of 10, that eighth call you should be excited about because that means you're almost to number 10. Don't be depressed that number eight doesn't go well, change your attitude. Eight is just one step closer to 10. Grind through one, two, three, four, five, six, seven. It is a real resilience, and that was another thing that came up is the people that win are not the smartest, they're not the fastest, they're not the most intelligent, but often they're just the most persistent. They just keep getting up. The age old saying. Give me the wisdom to worry about the things I can control and not to worry about the things I can't. It's not what happens to you, it's what you do about it. That's what you can control. You can't control what happens to you. But do you get up, do you take your hit, do you use it as motivation, do you move to the next step? Again, another great theme. Move to the next step. Take the next step and that will get you. A journey of a thousand miles starts with one step. >> That's right. That's right. Those are >> I'm cliche-ing, it's been a long week. >> This is the largest Grace Hopper ever. 18,000 attendees, 700 speakers, three days. We've got another big lineup tomorrow. We start right after the keynotes. We go through to the end of the day. Is there anything you want to highlight to our viewers that you are especially looking forward to tomorrow? >> What am I especially looking forward to tomorrow? Just another good day. The great thing about this show is you don't really know what you're going to get. >> It's true! >> A lot of the names, you don't know who they are. You don't necessarily know the companies. I think we will have a number of the Women of Vision award winners, which is always good. It's such an atypical tech show, which is why I love it. >> Rebecca: Which is why it's so fun! >> And we've got to get you warmed up, >> I know, it's freezing in here! >> Out into the heat. >> It's so true, it's so true. >> Alright well let's wrap it up. Great day, Rebecca. >> Great day it's always so much fun to cohost alongside you. >> Thanks for coming down. >> I'm Rebecca Knight for Jeff Frick, we will have more from Grace Hopper tomorrow! >> Jeff: Thanks for watching. (upbeat music)

>> Narrator: Live from Orlando Florida, it's theCUBE! Covering ServiceNow, Knowledge17. Brought to you by ServiceNow. >> Hi everybody, we're back. This is theCUBE and we're live from Knowledge17, I'm Dave Vellante with Jeff Frick. Michael Dippolito, did I say that right? >> D'Ippolito, close enough. >> D'Ippolito, sorry about that. A fellow Italian, I should get that right. D'Ippolito is assistant Vice President of Run Services Delivery, infrastructure and operations for Nationwide Insurance. Nationwide is on your side. >> You got it. It's in our heads right? >> I remember that. >> What a great marketing campaign. Michael, great to see you, thanks for coming on theCUBE. >> Thank you, thanks for having me. >> So how's Knowledge going for ya? >> Very good, very good. I'm really excited about some of the new things coming out with the newest release that was just announced this morning. And as a matter of fact I'm ready to go back and say let's jump to that version right? Because it sounds really exciting. >> So where are you right now? Which version are you on? Are you on the Helsinki? >> We are on the Helsinki release now. We usually like to jump a couple and stay as current as we can, usually you know one release behind maybe but if we find there's good functionality in jumping one we'll do it. >> I want to come back and talk about that, because we like to pick your brains about what's the best practice there, but before we do maybe set up your role at Nationwide. >> Yeah, RunService is a pretty large organization for Nationwide, through acquisitions and through our legacy environments, we have lots of application systems, you know, keeping all those running is a monumental task. So, our group is kind of sitting mainly in the middle of the applications, the infrastructure, the process, and trying to help everything stay running smoothly. >> Okay and you started with IT service management change management, like most customers, is that right? And then, you've been evolving that. Can you talk about that a little bit? >> Yeah we just implemented, about a year ago actually, we installed a year ago. >> Okay. >> We went with the Fuji release that we implemented then we've already jumped to Helsinki, and we pretty much went all processes all at once and kind of a big bang. We actually did ask that management at first does a little bit of a pilot, but then we actually went through all the other ITSM functionality, big bang after that. >> Jeff: So you're all in. >> Michael: Yeah. >> So what was life like, you know, give us a before and after, and maybe take us through the business case and how that all came about. >> I'll give you a perfect example, I just kind of did an after action review for our senior management, on our previous platform, which was an on prem heavily customized platform, to take a release would require a year and a half with a lot of planning and about a million dollars. >> Jeff: To do an upgrade. >> To do an upgrade. (Jeff Laughing) This last release to Helsinki went about six weeks, and about $100,000. So, that's a huge business case right there. Being able to be in the cloud, not having to worry about the infrastructure ourselves, and really we drove a model of zero customization so we wanted to stay out of box as much as possible, just for that reason so we could take releases fast and stay current. >> Wow, I'm sure that benefits. >> In the, you know, was situtation, the cost was predominantly people cost, programming cost, license cost, maintenance, consultants? >> It was mostly hours of effort. >> Yeah. >> The amount of customization we had and then to retrofit and test all those changes back into the release from the vendor was a monumental task and we never want to get into that situation again. >> And so with the ServiceNow upgrade, it's not out of pocket cost as much, you're quantifying time, is that correct? >> Correct. >> Yeah okay. >> It's mostly our internal cost. >> You said the time it took was a year and a half and then, like a typical upgrade in ServiceNow is, >> Michael: Less than two months. >> Okay. >> For us to bring it in test it, exercise it, making sure all our customizations, or configurations actually I should say, are working well. And a lot of it is more just the change management around it, you know, putting out the word, the communications, doing a little bit of training, or whatever it takes to get ready for a smooth launch. >> And some of the upfront planning of that as well. Now, when we talk to customers, there seems to be, we heard today that 90% of customers are adopting service catalog, CMDB, I don't know. It's mixed, right? We hear some yes, some no. Maybe tell us your experiences. >> We have a huge focus on CMDB right now. We think that CMDB is basically the foundation to all your other processes to run more smoothly right? So good trustworthy data enables faster incident resolution, better problem solving, more rigorous change management so you asses your risk of change better. So really when we sold our CMDB project, we didn't sell it based on the CMDB, we sold it based on all those other things, >> All the benefits. >> That get a ramp off of it. You know, from doing that effort. So, we're putting a lot of effort on CMDB maturity. >> So you were talking before about some of the things you saw today in Jakarta that were of interest before we go there, you had mentioned you started with Fuji, and now you're on Helsinki. What was the, you didn't double leapfrog did you? Or did you? What's your upgrade strategy? You said you might be an N minus one, but you like to stay pretty current. What's your strategy in regards to upgrades? >> Right now, we're looking at trying to be N minus one >> Uh huh. >> and taking two per year. So looking at two releases a year. We're trying to plan our schedules around maybe spring and fall. So we organize our work and our patterns around that. But something like that. We haven't really solidified that yet. A lot of it depends on what we see coming up, and what we can take advantage of. Like for example, we're getting ready to implement Work Day. And we want to make sure we have great integration between Work Day and ServiceNow. Some of the things that Jakarta is going to offer us is going to integrate nicely into Work Day. So, we may jump to that version because of that. >> So we heard this morning that the big things, well CJ set up the big things in Jakarta were going to be performance, obviously everybody better performance, maybe some UX stuff in there too, vendor risk management, and then the software asset management, which got the big cheers and the whoohoo! >> Yeah. (Jeff chuckling) >> Yeah, so, what in Jakarta is appealing to you? >> This software as a management I'd say, is very interesting because we're looking at that very closely right now in terms of our strategy around that. The other one I really like is the performance analytics and the predictive analytics that are coming out. I'd really love to be able to benchmark ourselves against other companies in terms of how we're doing. I feel we beat ourselves up a lot internally around things like availability or performance. But then, when I look and talk to others, we're not so bad. (Jeff chuckling) We're actually doing pretty good. So it'd be nice to get that benchmarking. >> Right, right. >> And some of that trend analysis that's offered. And then, finally, how do we get into a more predictive analytics mode where we can prevent incidents from happening before they do? So that's key. >> It was interesting, listening to Farrell Hough this morning talk about sort of the evolution of automation. How do you look at automation? Some shops are afraid of automation, but it seems like the ServiceNow customers we talk to really can't go fast enough. What is your thought, and how are you evolving automation? >> Well, one of our key drivers right now is how do we increase the speed of delivery to the marketplace? But, we also have to stay safe and reliable, right? And the key to speed is through automation. You can't really get that speed if you're not highly automated. And, to be highly automated, you need really high trustworthy data. So that enables fast decision making, and accuracy. >> Jeff: And that ties back to your CMDB commitment. >> Exactly, so, that all entailed enables speed, which we really want because in today's world speed is everything in terms of how you're constantly adapting your systems of engagement out there with your customers. Constantly learning from their patterns and adjusting on the fly. And that requires new mindsets. >> So you start with IT service management, you've got HR as well, is that right? >> We don't have the HR model. Right now we're only IT service management. >> Okay, straight IT services. >> We're looking at other modules, as we speak. >> Okay, so you want to make sure you get the value out of the initial ITSM, and then, how do you see that, you know, evolving? What is the conversation like internally? Do the business lines say, wow, all of a sudden we're getting improved service, and how are you doing that? Or is it more of a push where you go out to the business and say hey, here are some ideas. How does that all work? >> I'll tell you what we're really starting to see is a really change in what's driving innovation. And it's more coming from IT versus, the former models where IT was kind of like the order taker, and the business came up with everything they needed. Now, with the pace of change with technology, new business models are coming from IT to the business. And we're actually almost seeing ourselves more of an IT company than we are an insurance company. And, you starting to see those patterns especially with things like, now we're talking about metered insurance for auto, right? So basically, pay by the mile insurance, versus paying the same rate for six months. With the data we're getting out of vehicles today we can adjust your rates on the fly as you drive. Why should you pay the same rate if your car sits in the garage all weekend, versus you take it out and drive it 200 miles, right? So with the kind of data, big data and analytics that are coming from the vehicles we can do that now. >> So how is that conversation taking place? Is it being initiated by somebody in the IT staff that says hey, did you know that we have this data and we can do this? Let's take it to the business unit. Or does the business unit saying, I just saw Flo, the competitor, sticking the little thing in the dashboard? (Michael chuckling) Can we do that too? You know, there's a lot of talk about IT taking a seat at the business table >> Right. >> But how have you seen it actually been executed inside of Nationwide? >> Actually what we're seeing is, the lines are very blurry now between IT and the business. Almost to where, we're just a team working together versus the silos you used to have, and throwing the ideas over the fence. So we actually have a team that their goal is strategy and innovation. They report up through our CIO, and then business line teams have similar organizations, and they all work in a matrix fashion together. So anybody can bring any type of idea to the table, regardless of who you report up through. And we take those into consideration and we look for partners, we've got partners coming to us all the time that want to join us in innovation. And so it doesn't have to be our own solution. It could just be us on the back end of somebody else's front end, right? So, there's a lot of interesting ideas coming at us. >> What's happening in the business Mike? I mean you've got, obviously you're supporting the big systems or claims, you've got your agents systems, but mobile has exploded onto the scene. >> Yes. >> How has that affected you? What are some of the drivers in the insurance business these days? >> Well, definitely we're in this digital world now so, mobile first is critical. Everything has to be mobile enabled. We have to think of our strategy in a digital way constantly so we have a whole digital strategy that we work on. The traditional models of agency sold insurance won't ever really go away, per se, but they are shrinking. You see the demands and needs of the millennials coming up, very differently and changing. You have to compete on price to get in the door. That's important, so again we're trying to find all those interaction or intercept points with our customers as they need us. People don't really like to think of insurance, it's not on top of mind in their day to day life. But, when certain events happen like oh, I'm going to get married, or I'm going to take a trip, or you know, those kinds of things. >> Jeff: Right, kid turns sixteen. >> Yeah, we have different ways to interact with our customers, and offer some solutions that meet their need at the time. >> Well it seems like you're right, to be competitive, you've got to have the right price for those that say okay, I've got to get insurance, I need to start somewhere, great, but are you able to, as an industry, sell value? I mean, increasingly you're seeing some companies I would say Nationwide is one, where you're selling value. >> Yeah. >> Is that a trend in the business? >> Absolutely, I'll give you an example. One of the things that, normally the insurance model used to be I buy insurance and I'm protected when something bad happens. then when something bad happens, you compensate me. You pay my claim. But what about, if we can help you prevent the bad thing from even happening? So with products like our Smart Home package that you can buy now with internet of things, we can put sensors on those hot water tanks or on those pipes, or connected to your alarm system so that maybe we could alert you when we see your pipe is about to break. >> Right so, we cover, as you know our audience, we cover big data a lot. And the data business, and the insurance business have come mashing together, right? You had mentioned before, Mike, in many regards you're becoming an IT company and digitization is all about data. And the data allows you guys to build new products, to offer new services, to be more competitive and at the end of the day it's all about speed. >> Correct, speed and then that helps drive that value equation, right? So it's not so much being the lowest price, although you have to have a good price to be in the game, but then after that how can you provide that value? >> I'm curious Mike, from an insurance point of view, where before the business was based on, you know you didn't have so much data, right? So you had some big swaths, Age, sex, smoker, not smoker, but now as you're able to get data to the individual level, how that changes the way you look at it? Because it's very different than just kind of aggregating to the bulk, and then the poor unfortunate soul who has a car wreck, you pay the claim. But now, like you said, you know if I'm driving on the weekends, or if I'm parking my car. How is that really shaping the way that you guys look at the marketplace and the opportunities? >> Well you know, in the old days, you used to be able to take basically a subset of data from the past, and make your decisions based on that. >> A subset of data from the past, I love that. >> Now we're taking all the data in real time. >> In real time. >> So that puts more demands on the need for the technologies to provide that. It's critical, like especially if we're going to change your rates daily on how we insure your car, we have to have all the data, all the time. >> I remember Abhi Mehta, one of our early big data CUBE interviews, he made the statement in 2010 he said, "Sampling is dead." And, now, some people will debate that but the point he was making is just the same one you just made Michael is that you've got that data coming in, streaming it in real time. Some consumers, you know, have an issue with sticking that little meter in their car, but ultimately, that's the trend. It's going to happen. >> And you know we're seeing, and you're probably seeing it in other businesses as well, if you can provide that value, customers will give you the access and the data, because they see a value in return. So, it's that value equation. If it's good enough, they'll give you the value, and they'll give you the data. >> Dave: Yeah, you see it every day in mobile apps, right? >> Correct. >> You know, you're in New York City trying to get somewhere and it's like, turn on location services and I can help you. >> When you download any app, there's a big screen that comes up and you say I accept at the bottom, and then it has access to your pictures, access to your location and you're free to hit that accept because you see the value in that application. >> It's a quid pro quo, you know it's interesting we had the author on yesterday, Pink, Daniel Pink? >> Jeff: Pink, Mr. Pink, yes. >> And he was pointing out, he said look there used to be that the brand used to have all the information, and now there's parody in information, but in many regards, this whole digitization is an attempt by the brand to provide, to use more data and to give the consumers more value, and to create differentiation in the marketplace, and that's kind of what you're describing in your business. Last question, what's on ServiceNow's to-do list? What do you want to see a year, year and a half in? >> Well, after we implemented, we partnered with ServiceNow in a project they call Inspire, and basically it's to, what are we going to do next? You know, that very question, how do we leverage now what we've implemented, and take advantage of what the platform has to offer? We see lots of opportunities, as a matter of fact our list is so long we just don't have the bandwidth to do it all (Jeff chuckling) and we have to prioritize, but we see a lot of integration points, we see a lot of APIs coming in, we are in a kind of a really big phase in automation right now, we're trying to automate as much as possible, so for our on prem technology, we really want to go into automated provisioning of our assets, which means being able to connect those into the CMDB as they're provisioned, all automatically, and we want to really shorten those cycle times for when we have to provision infrastructure and support our applications. So ServiceNow is setting us up to do just that. >> Inspire is a great program, it's one of the best freebies in the business, and it leads, it's a win win. The customer gets the best experts, they come in and obviously, the hope is they're going to buy more stuff from ServiceNow, and if the value's there you will. Why not? It's going to drive to the bottom line. >> Using cloud to provision on prem resources, I like that. (all laughing) >> Mike thanks very much for coming to theCUBE, it was really a pleasure having you. >> Thank you, thanks for having me. >> Jeff: Thanks for sharing the insight. >> Alright keep it right there buddy we'll be back with our next guest right after this short break, there's a CUBEr live from Knowledge, be right back. (techno music)