>>on the globe. It's the Cube with digital coverage of AWS reinvent 2020 sponsored by Intel, AWS and our community partners. Hello and welcome back to the Cubes Live coverage Cube live here in Palo Alto, California, with the Virtual Cube this year because we can't be there in person. I'm your host, John Fairy year. We're kicking off Day two of the three weeks of reinvent a lot of great leadership sessions to review, obviously still buzzing from the Andy Jassy three. Our keynote, which had so many storylines, is really hard to impact. We're gonna dig that into into into that today with Jerry Chan, who has been a Cube alumni since the beginning of our AWS coverage. Going back to 2013, Jerry was wandering the hallways as a um, in between. You were in between vm ware and V C. And then we saw you there. You've been on the Cube every year at reinvent with us. So special commentary from you. Thanks for coming on. >>Hey, John, Thanks for having me and a belated happy birthday as well. If everyone out there John's birthday was yesterday. So and hardest. Howard's working man in technology he spent his entire birthday doing live coverage of Amazon re events. Happy birthday, buddy. >>Well, I love my work. I love doing this. And reinvent is the biggest event of the year because it really is. It's become a bellwether and eso super excited to have you on. We've had great conversations by looking back at our conversations over the Thanksgiving weekend. Jerry, the stuff we were talking about it was very proposed that Jassy is leaning in with this whole messaging around change and horizontal scalability. He didn't really say that, but he was saying you could disrupt in these industries and still use machine learning. This was some of the early conversations we were having on the Cube. Now fast forward, more mainstream than ever before. So big, big part of the theme there. >>Yeah, it z you Amazon reinvent Amazon evolution to your point, right, because it's both reinventing what countries are using with the cloud. But also what Amazon's done is is they're evolving year after year with their services. So they start a simple infrastructure, you know, s three and e c. Two. And now they're building basically a lot of what Andy said you actually deconstructed crm? Ah, lot of stuff they're doing around the call centers, almost going after Salesforce with kind of a deconstructed CRM services, which is super interesting. But the day you know, Amazon announces all those technologies, not to mention the AI stuff, the seminar stuff you have slack and inquired by Salesforce for $27.7 billion. So ah, lot of stuff going on in the cloud world these days, and it's funny part of it, >>you know, it really is interesting. You look up the slack acquisition by, um, by Salesforce. It's interesting, you know, That kind of takes slack out of the play here. I mean, they were doing really well again. Message board service turns into, um, or collaboration software. They hit the mainstream. They have great revenue. Is that going to really change the landscape of the industry for Salesforce? They've got to acquire it. It opens the door up from, or innovation. And it's funny you mention the contact Center because I was pressing Jassy on my exclusive one on one with him. Like they said, Andy, my my daughter and my sons, they don't use the phone. They're not gonna call. What's this? Is it a call center deal? And he goes, No, it's the It's about the contact. So think about that notion of the contact. It's not about the call center. It's the point of contact. Okay, Linked in is with Microsoft. You got slack and Salesforce Contact driven collaboration. Interesting kind of play for Microsoft to use voice and their data. What's your take on that? >>I think it's, um you know, I have this framework. As you know, I talked my friend systems of engagement over systems intelligence and systems record. Right? And so you could argue voice email slack because we're all different systems of engagement, and they sit on top of system of record like CRM customer support ticketing HR. Something like that. Now what sells first did by buying slack is they now own a system engagement, right? Not on Lee is slack. A system engagement for CRM, but also system engagement for E. R. P Service. Now is how you interact with a bunch of applications. And so if you think about sales for strategy in the space, compete against Marcus Soft or serves now or other large AARP's now they own slack of system engagement, that super powerful way to actually compete against rival SAS companies. Because if you own the layer engagement layer, you can now just intermediate what's in the background. Likewise, the context center its own voice. Email, chat messaging, right? You can just inter mediate this stuff in the back, and so they're trying to own the system engagement. And then, likewise, Facebook just bought that company customer a week ago for a billion dollars, which also Omni Channel support because it is chat messaging voice. It's again the system engagement between End User, which could be a customer or could be employees. >>You know, this really gonna make Cit's enterprise has been so much fun over the past 10 years, I gotta say, in the past five, you know, it's been even more fun, has become or the new fun area, you know, And the impact to enterprise has been interesting because and we're talking about just engaging system of record. This is now the new challenge for the enterprise. So I wanna get your thoughts, Jerry, because how you see the Sea, X O's and CSOs and the architects out there trying to reinvent the enterprise. Jassy saying Look and find the truth. Be on the right side of history here. Certainly he's got himself service interest there, but there is a true band eight with Cove it and with digital acceleration for the enterprise to change. Um, given all these new opportunities Thio, revolutionize or disrupt or radically improve, what's the C. C X's do? What's your take on? How do you see that? >>It's increasingly messy for the CXS, and I don't I don't envy them, right? Because back in the day they kind of controlled all the I t spend and kind of they had a standard of what technologies they use in the company. And then along came Amazon in cloud all of sudden, like your developers and Dio Hey, let me swipe my credit card and I'm gonna access to a bunch of a P I s around computing stories. Likewise. Now they could swipe the credit card and you strike for billing, right? There's a whole bunch of services now, so it becomes incumbent upon CSOs. They need Thio new set of management tools, right? So not only just like, um, security tools they need, they need also observe ability, tools, understanding what services are being used by the customers, when and how. And I would say the following John like CSOs is both a challenge for them. But I think if I was a C X, so I'll be pretty excited because now I have a bunch of other weapons and other bunch of services I could offer. My end users, my developers, my employees, my customers and, you know it's exciting for them is not only could they do different things, but they also changed how their business being done. And so I think both interact with their end users. Be a chat like slack or be a phone like a contact center or instagram for your for your for your kids. It's actually a new challenge if I were sick. So it's it's time to build again, you know, I think Cove it has said it is time to build again. You can build >>to kind of take that phrase from the movie Shawshank Redemption. Get busy building or get busy dying. Kinda rephrase it there. And that's kind of the theme I'm seeing here because covert kind of forced people saying, Look, this things like work at home. Who would have thought 100% people would be working at home? Who would have thought that now the workloads gonna change differently? So it's an opportunity to deconstruct or distant intermediate these services. And I think, you know, in all the trends that I've seen over my career, it's been those inflection points where breaking the monolith or breaking the proprietary piece of it has always been an opportunity for for entrepreneur. So you know, and and for companies, whether you're CEO or startup by decomposing and you can come in and create value E I think to me, snowflake going public on the back of Amazon. Basically, this is interesting. I mean, so you don't have to be. You could kill one feature and nail it and go big. >>I think we talked to the past like it's Amazon or Google or Microsoft Gonna win. Everything is winner take all winner take most, and you could argue that it's hard to find oxygen as a start up in a broad platform play. But we think Snowflake and other companies have done and comes like mongo DB, for example, elastic have shown that if you can pick a service or a problem space and either developed like I p. That's super deep or own developer audience. You can actually fight the big guys. The Big Three cloud vendors be Amazon, Google or or market soft in different markets. And I think if you're a startup founder, you should not be afraid of competing with the big cloud vendors because there there are success patterns and how you can win and you know and create a lot of value. So I have found Investor. I'm super excited by that because, you know, I don't think you're gonna find a company takedown Amazon completely because they're just the scale and the network effects is too large. But you can create a lot of value and build Valuable comes like snowflake in and around the Amazon. Google Microsoft Ecosystem. >>Yeah, I want to get your thoughts. You have one portfolio we've covered rock rock set, which does a lot of sequel. Um, one of your investments. Interesting part of the Kino yesterday was Andy Jassy kind of going after Microsoft saying Windows sequel server um, they're targeting that with this new, uh, tool, but, you know, sucks in the database of it is called the Babel Fish for Aurora for post Chris sequel. Um, well, how was your take on that? I mean, obviously Microsoft big. Their enterprise sales tactics are looking like more like Oracle, which he was kind of hinting at and commenting on. But sequel is Lingua Franca for data >>correct. I think we went to, like, kind of a no sequel phase, which was kind of a trendy thing for a while and that no sequel still around, not only sequel like mongo DB Document TV. Kind of that interface still holds true, but your point. The world speaks sequel. All your applications be sequel, right? So if you want backwards, compatibility to your applications speaks equal. If you want your tire installed base of employees that no sequel, we gotta speak sequel. So, Rock said, when the first public conversations about what they're building was on on the key with you and Me and vent hat, the founder. And what Rock said is doing their building real time. Snowflake Thio, Lack of better term. It's a real time sequel database in the cloud that's super elastic, just like Snowflake is. But unlike snowflake, which is a data warehouse mostly for dashboards and analytics. Rock set is like millisecond queries for real time applications, and so think of them is the evolution of where cloud databases air going is not only elastic like snowflake in the cloud like Snowflake. We're talking 10 15 millisecond queries versus one or two second queries, and I think what any Jassy did and Amazon with bowel officials say, Hey, Sequels, Legal frank of the cloud. There's a large installed base of sequel server developers out there and applications, and we're gonna use Babel fish to kind of move those applications from on premise the cloud or from old workload to the new workloads. And, I think, the name of the game. For for cloud vendors across the board, big and small startups thio Google markets, often Amazon is how do you reduce friction like, How do you reduce friction to try a new service to get your data in the cloud to move your data from one place to the next? And so you know, Amazon is trying to reduce friction by using Babel fish, and I think it is a great move by them. >>Yeah, by the way. Not only is it for Aurora Post Chris equal, they're also open sourcing it. So that's gonna be something that is gonna be interesting to play out. Because once they open source it essentially, that's an escape valve for locking. I mean, if you're a Microsoft customer, I mean, it ultimately is. Could be that Gateway drug. It's like it is ultimately like, Hey, if you don't like the licensing, come here. Now there's gonna be some questions on the translations. Um, Vince, um, scuttlebutt about that. But we'll see it's open source. We'll see what goes on. Um great stuff on on rocks that great. Great. Start up next. Next, uh, talk track I wanna get with you is You know, over the years, you know, we've talked about your history. We're gonna vm Where, uh, now being a venture capitalist. Successful, wanted Greylock. You've seen the waves, and I would call it the two ways pre cloud Early days of cloud. And now, with co vid, we're kind of in the, you know, not just born in the cloud Total cloud scale cloud operations. This is kind of what jazz he was going after. E think I tweeted Cloud is eating the world and on premise and the edges. What it's hungry for. It kind of goof on mark injuries since quote a software eating the world. This is where it's going. So it's a whole another chapter coming. You saw the pre cloud you saw Cloud. Now we've got basically global I t everything else >>It's cloud only I would say, You know, we saw pre cloud right the VM ware days and before that he called like, you know, data centers. I would say Amazon lawns of what, 6 4007, the Web services. So the past 14 15 years have been what I've been calling cloud transition, right? And so you had cos technologies that were either doing on migration from on premise and cloud or hybrid on premise off premise. And now you're seeing a generation of technologies and companies. Their cloud only John to your point. And so you could argue that this 15 year transitions were like, you know, Thio use a bad metaphor like amphibians. You're half in the water, half on land, you know, And like, you know, you're not You're not purely cloud. You're not purely on premise, but you can do both ways, and that's great. That's great, because that's a that's a dominant architecture today. But come just like rock set and snowflake, your cloud only right? They're born in the cloud, they're built on the cloud And now we're seeing a generation Startups and technology companies that are cloud only. And so, you know, unlike you have this transitionary evolution of like amphibians, land and sea. Now we have ah, no mammals, whatever that are Onley in the cloud Onley on land. And because of that, you can take advantage of a whole different set of constraints that are their cloud. Only that could build different services that you can't have going backwards. And so I think for 2021 forward, we're going to see a bunch of companies or cloud only, and they're gonna look very, very different than the previous set of companies the past 15 years. And as an investor, as you covering as analysts, is gonna be super interesting to see the difference. And if anything, the cloud only companies will accelerate the move of I t spending the move of mawr developers to the cloud because the cloud only technologies are gonna be so much more compelling than than the amphibians, if you will. >>Yeah, insisting to see your point. And you saw the news announcement had a ton of news, a ton of stage making right calls, kind of the democratization layer. We'll look at some of the insights that Amazon's getting just as the monster that they are in terms of size. The scope of what? Their observation spaces. They're seeing all these workloads. They have the Dev Ops guru. They launched that Dev Ops Guru thing I found interesting. They got data acquisition, right? So when you think about these new the new data paradigm with cloud on Lee, it opens up new things. Um, new patterns. Um, S o. I think I think to me. I think that's to me. I see where this notion of agility moves to a whole nother level, where it's it's not just moving fast, it's new capabilities. So how do you How do you see that happening? Because this is where I think the new generation is gonna come in and be like servers. Lambs. I like you guys actually provisioned E c. Two instances before I was servers on data centers. Now you got ec2. What? Lambda. So you're starting to see smaller compute? Um, new learnings, All these historical data insights feeding into the development process and to the application. >>I think it's interesting. So I think if you really want to take the next evolution, how do you make the cloud programmable for everybody? Right. And I think you mentioned stage maker machine learning data scientists, the sage maker user. The data scientists, for example, does not on provisioned containers and, you know, kodama files and understand communities, right? Like just like the developed today. Don't wanna rack servers like Oh, my God, Jerry, you had Iraq servers and data center and install VM ware. The generation beyond us doesn't want to think about the underlying infrastructure. You wanna think about it? How do you just program my app and program? The cloud writ large. And so I think where you can see going forward is two things. One people who call themselves developers. That definition has expanded the past 10, 15 years. It's on Lee growing, so everyone is gonna be developed right now from your white collar knowledge worker to your hard core infrastructure developer. But the populist developers expanding especially around machine learning and kind of the sage maker audience, for sure. And then what's gonna happen is, ah, law. This audience doesn't want to care about the stuff you just mentioned, John in terms of the online plumbing. So what Amazon Google on Azure will do is make that stuff easy, right? Or a starved could make it easy. And I think that the move towards land and services that moved specifically that don't think about the underlying plumbing. We're gonna make it easy for you. Just program your app and then either a startup, well, abstract away, all the all the underlying, um, infrastructure bits or the big three cloud vendors to say, you know, all this stuff would do in a serverless fashion. So I think serverless as, ah paradigm and have, quite frankly, a battlefront for the Big Three clouds and for startups is probably one in the front lines of the next generation. Whoever owns this kind of program will cloud model programming the Internet program. The cloud will be maybe the next platform the next 10 or 15 years. I still have two up for grabs. >>Yeah, I think that is so insightful. I think that's worth calling out. I think that's gonna be a multi year, um, effort. I mean, look at just how containers now, with ks anywhere and you've got the container Service of control plane built in, you got, you know, real time analytics coming in from rock set. And Amazon. You have pinned Pandora Panorama appliance that does machine learning and computer vision with sensors. I mean, this is just a whole new level of purpose built stuff software powered software operated. So you have this notion of Dev ops going to hand in the glove software and operations? Kind of. How do you operate this stuff? So I think the whole new next question was Okay, this is all great. But Amazon's always had this problem. It's just so hard. Like there's so much good stuff. Like, who do you hired operate it? It is not yet programmable. This has been a big problem for them. Your thoughts on that, >>um e think that the data illusion around Dev ops etcetera is the solution. So also that you're gonna have information from Amazon from startups. They're gonna automate a bunch of the operations. And so, you know, I'm involved to come to Kronos Fear that we talked about the past team kind of uber the Bilson called m three. That's basically next generation data dog. Next generation of visibility platform. They're gonna collect all the data from the applications. And once they have their your data, they're gonna know how to operate and automate scaling up, scaling down and the basic remediation for you. So you're going to see a bunch of tools, take the information from running your application infrastructure and automate exactly how to scale and manager your app. And so AI and machine learning where large John is gonna be, say, make a lot of plumbing go away or maybe not completely, but lets you scale better. So you, as a single system admin are used. A single SRE site reliability engineer can scale and manage a bigger application, and it's all gonna be around automation and and to your point, you said earlier, if you have the data, that's a powerful situations. Once have the data can build models on it and can start building solutions on the data. And so I think What happens is when Bill this program of cloud for for your, you know, broad development population automating all this stuff becomes important. So that's why I say service or this, You know, automation of infrastructure is the next battleground for the cloud because whoever does that for you is gonna be your virtualized back and virtualized data center virtualized SRE. And if whoever owns that, it's gonna be a very, very strategic position. >>Yeah, it's great stuff. This is back to the theme of this notion of virtualization is now gone beyond server virtualization. It's, you know, media virtualization with the Cube. My big joke here with the Q virtual. But it's to your point. It's everything can now be replicated in software and scale the cloud scale. So it's super big opportunity for entrepreneurs and companies. Thio, pivot and differentiate. Uh, the question I have for you next is on that thread Huge edge discussion going on, right. So, you know, I think I said it two years ago or three years ago. The data center is just a edges just a big fat edge. Jassy kind of said that in his keynote Hey, looks at that is just a Nedum point with his from his standpoint. But you have data center. You have re alleges you've got five G with wavelength. This local zone concept, which is, you know, Amazon in these metro areas reminds me the old wireless point of presence kind of vibe. And then you've got just purpose built devices like cameras and factory. So huge industrial innovation, robotics, meet software. I mean, whole huge edge development exploding, Which what's your view of this? And how do you look at that from? Is an investor in industry, >>I think edges both the opportunity for start ups and companies as well as a threat to Amazon, right to the reason why they have outposts and all the stuff the edges if you think about, you know, decentralizing your application and moving into the eggs from my wearable to my home to my car to my my city block edges access Super interesting. And so a couple things. One companies like Cloudflare Fastly company I'm involved with called Kato Networks that does. SAS is secure access service edge write their names and the edges In the category definition sassy is about How do you like get compute to the edge securely for your developers, for your customers, for your workers, for end users and what you know comes like Cloudflare and Kate have done is they built out a network of pops across the world, their their own infrastructure So they're not dependent upon. You know, the big cloud providers, the telco providers, you know, they're partnering with Big Cloud, their parting with the telcos. But they have their own kind of system, our own kind of platform to get to the edge. And so companies like Kato Networks in Cloud Player that have, ah, presence on the edge and their own infrastructure more or less, I think, are gonna be in a strategic position. And so Kate was seen benefits in the past year of Of of Cove it and locked down because more remote access more developers, Um, I think edge is gonna be a super great area development going forward. I think if you're Amazon, you're pushing to the edge aggressively without post. I think you're a developer startup. You know, creating your own infrastructure and riding this edge wave could be a great way to build a moat against a big cloud guy. So I'm super excited. You think edge in this whole idea of your own infrastructure. Like what Kato has done, it is gonna be super useful going forward. And you're going to see more and more companies. Um, spend the money to try to copy kind of, ah, Cloudflare Kato presence around the world. Because once you own your own kind of, um, infrastructure instead of pops and you're less depend upon them a cloud provider, you're you're in a good position because there's the Amazon outage last week and I think like twilio and a bunch of services went down for for a few hours. If you own your own set of pops, your independent that it is actually really, really secure >>if you and if they go down to the it's on you. But that was the kinesis outage that they had, uh, they before Thanksgiving. Um, yeah, that that's a problem. So on this on. So I guess the question for you on that is that Is it better to partner with Amazon or try to get a position on the edge? Have them either by you or computer, create value or coexist? How do you see that that strategy move. Do you coexist? Do you play with them? >>E think you have to co exist? I think that the partner coexist, right? I think like all things you compete with Amazon. Amazon is so broad that will be part of Amazon and you're gonna compete with and that's that's fair game, you know, like so Snowflake competes against red shift, but they also part of Amazon's. They're running Amazon. So I think if you're a startup trying to find the edge, you have to coexist in Amazon because they're so big. Big cloud, right, The Big three cloud Amazon, Google, Azure. They're not going anywhere. So if you're a startup founder, you definitely coexist. Leverage the good things of cloud. But then you gotta invest in your own edge. Both both figure early what? Your edge and literally the edge. Right. And I think you know you complement your edge presence be it the home, the car, the city block, the zip code with, you know, using Amazon strategically because Amazon is gonna help you get two different countries, different regions. You know you can't build a company without touching Amazon in some form of fashion these days. But if you're a star found or doing strategically, how use Amazon and picking how you differentiate is gonna be key. And if the differentiation might be small, John. But it could be super valuable, right? So maybe only 10 or 15%. But that could be ah Holton of value that you're building on top of it. >>Yeah, and there's a little bit of growth hack to with Amazon if you you know how it works. If you compete directly against the core building blocks like a C two has three, you're gonna get killed, right? They're gonna kill you if the the white space is interest. In the old days in Microsoft, you had a white space. They give it to you or they would roll you over and level you out. Amazon. If you're a customer and you're in a white space and do better than them, they're cool with that. They're like, basically like, Hey, if you could innovate on behalf of the customer, they let you do that as long as you have a big bill. Yeah. Snowflakes paying a lot of money to Amazon. Sure, but they also are doing a good job. So again, Amazon has been very clear on that. If you do a better job than us for, the customer will do it. But if they want Amazon Red Shift, they want Amazon Onley. They can choose that eso kind of the playbook. >>I think it is absolutely right, John is it sets from any jassy and that the Amazon culture of the customer comes first, right? And so whatever is best for the customer that's like their their mission statement. So whatever they do, they do for the customer. And if you build value for the customer and you're on top of Amazon, they'll be happy. You might compete with some Amazon services, which, no, the GM of that business may not be happy, but overall. Net Net. Amazon's getting a share of those dollars that you're that you're charging the customer getting a share of the value you're creating. They're happy, right? Because you know what? The line rising tide floats all the boats. So the Mork cloud usage is gonna only benefit the Big Three cloud providers Amazon, particularly because they're the biggest of the three. But more and more dollars go the cloud. If you're helping move more. Absolute cloud helping build more solutions in the cloud. Amazon is gonna be happy because they know that regardless of what you're doing, you will get a fraction of those dollars. Now, the key for a startup founder and what I'm looking for is how do we get mawr than you know? A sliver of the dollars. How to get a bigger slice of the pie, if you will. So I think edge and surveillance or two areas I'm thinking about because I think there are two areas where you can actually invest, own some I p owned some surface area and capture more of the value, um, to use a startup founder and, you know, are built last t to Amazon. >>Yeah. Great. Great thesis. Jerry has always been great. You've been with the Cube since the beginning on our first reinvented 2013. Um, and so we're now on our eighth year. Great to see your success. Great investment. You make your world class investor to great firm Greylock. Um great to have you on from your perspective. Final take on this year. What's your view of Jackie's keynote? Just in general, What's the vibe. What's the quick, um, soundbite >>from you? First, I'm so impressed and you can do you feel like a three Archy? No more or less by himself. Right then, that is, that is, um, that's a one man show, and I'm All of that is I don't think I could pull that off. Number one. Number two It's, um, the ability to for for Amazon to execute at so many different levels of stack from semiconductors. Right there, there there ai chips to high level services around healthcare solutions and legit solutions. It's amazing. So I would say both. I'm impressed by Amazon's ability. Thio go so broad up and down the stack. But also, I think the theme from From From Andy Jassy is like It's just acceleration. It's, you know now that we will have things unique to the cloud, and that could be just a I chips unique to the cloud or the services that are cloud only you're going to see a tipping point. We saw acceleration in the past 15 years, John. He called like this cloud transition. But you know, I think you know, we're talking about 2021 beyond you'll see a tipping point where now you can only get certain things in the cloud. Right? And that could be the underlying inference. Instances are training instances, the Amazons giving. So all of a sudden you as a founder or developer, says, Look, I guess so much more in the cloud there's there's no reason for me to do this hybrid thing. You know, Khyber is not gonna go away on Prem is not going away. But for sure. We're going to see, uh, increasing celebration off cloud only services. Um, our edge only services or things. They're only on functions that serve like serverless. That'll be defined the next 10 years of compute. And so that for you and I was gonna be a space and watch >>Jerry Chen always pleasure. Great insight. Great to have you on the Cube again. Great to see you. Thanks for coming on. >>Congrats to you guys in the Cube. Seven years growing. It's amazing to see all the content put on. So you think it isn't? Just Last point is you see the growth of the curve growth curves of the cloud. I'd be curious Johnson, The growth curve of the cube content You know, I would say you guys are also going exponential as well. So super impressed with what you guys have dealt. Congratulations. >>Thank you so much. Cute. Virtual. We've been virtualized. Virtualization is coming here, or Cubans were not in person this year because of the pandemic. But we'll be hybrid soon as events come back. I'm John for a year. Host for AWS reinvent coverage with the Cube. Thanks for watching. Stay tuned for more coverage all day. Next three weeks. Stay with us from around the globe. It's the Cube with digital coverage of aws reinvent 2020 sponsored by Intel >>and AWS. Welcome back here to our coverage here on the Cube of AWS.

>>from around the globe. It's the Cube with digital coverage of Dell Technologies. World Digital experience Brought to you by Dell Technologies. Hello, everyone. And welcome back to the cubes. Continuing coverage of del Tech World 2020. This is David Want, and I'm here with Sam. Grow Kat. Who's the senior vice president of product marketing? Adele Technology. Sam. Great to see you. Welcome. >>Great to be here, Dave. >>All right, we're gonna talk generally about Cloud in the coming decade, but in really how the cloud models evolving. But I want to specifically ask them about the as a service news that Dell's making at DT W You know what those solutions look like? How they're gonna evolve. Maybe maybe Sam, we can hit on some of the customer uptake and the feedback as well. Is that sound good? >>Yeah, Sounds great. Let's dive right in. >>All right, let's do that. So, look, you've come from the world of disruptor. You know, when you joined Isil on that got acquired by M. C. And then Del So you've you've been on both sides of the competitive table and cloud is obviously a major force. Actually, you know, I'd say, the major disruptive force in our industry. So let's talk about how Dell's responding to the cloud trend generally. Then we'll get into the announcements. >>Yeah, certainly. And you're right. I've been on both sides of this, and there is no doubt if you look at just over the last decade or so, how customers are partners. We're really looking at evaluating how they can take advantage of the the value of moving workloads to the cloud. And we've seen it happen over the last decade or so, and it's happening at a more frequent pace. And there's no doubt that is really what planted the seed of this new operating experience. You know, kind of a new lifestyle, so to speak around as a service, because when you go to the cloud, that's the only way they roll is you get in as a service experience. Eso that really has started to come into the data centers organizations or moving specific workloads and applications to the cloud of Hey, how do I get that in a non premise experience? And I think throwing gasoline on that is certainly the pandemic, and Kobe, 19 has really made organizations evaluate how to move much quicker room or gradually by moving some applications to the cloud. Because, frankly, on Prem just wasn't able to move as fast as they like to see. So we're seeing that macro trend accelerate. And, you know, I think we're in good shape to take advantage of that as we go forward. >>Well, that brings us to the hard news of what you're calling Project Apex year as a service initiative. What specifically are you announcing this week? >>Yes. So Project Apex is one of our big announcements. And that's really where we're targeting how we're bringing together and unifying our product development or sales go to market, our marketing, go to market Everything coming together underneath Project Apex, which is our as a service and cloud like experience. Look, we know in that world where customers were constantly evaluating which applications stay on Prem, which applications and workloads should go to the cloud. I think the market has certainly voted clearly that it's gonna be both. It's gonna be a hybrid, multi cloud world, but what they absolutely or clear that they want is a simple, easy to use as a service experience, regardless of if their on primer off from. And that's where. Really, the traditional on premise solutions fall down because it's just too darn complex. Still, they've got many different tools managing many different applications that oversee their cloud operations, their various infrastructure, whether it's server or compute or networking. They all run different tools, so it's very, very complex. It also is very rigid to scale. You can't move as fast because they can't deploy as fast. It requires manual intervention toe by more you to think I got a get a sales rep in house to come in and, uh, extend your environment and grow your environment. And then, of course, the traditional method is very cap ex heavy. In a world where organizations air really trying thio preserve cash. Cash is king. It doesn't really give them the flexibility. Traditionally, um, are going forward that they'd like to see on that front. So what they want to see is a consistent operating experience for their on and off from, uh, environments. They want to see a single tool that can manage and report to grow and do commerce across that environment, regardless of its on or off friend. Uh, they want something that can scale quickly. Now look, when you're moving equipment on Prem, it's not gonna be a click of a button, but you should be able to buy and procure that with the click of a button and then very quickly, within less than a handful of days, that equipment should be stood up, deployed and running in their environment. And then, finally, it's got to deliver this more flexible finance model, whether it's leveraging flexible subscription models or optics friendly models. Customers were really looking for that more off X friendly approach, which we're gonna be providing with Project Apex so very, very excited about kind of the goals and the aspirations of Project Apex. We're going to see a lot of it come come to market early next year, but we're I think we're well situated, as I said, to take advantage of this opportunity. >>So when I was looking through the announcement in sort of squinting through it, the three things jumped out and you definitely hit on. Those. One is choice, but sometimes you don't wanna give customers too much choice, so it's gotta be simple, and it's got to be consistent. So It feels like you're putting this abstraction layer over your entire portfolio and trying to hit on those three items. Uh, which is somewhat of a balancing act. But is that right? >>Yeah. No, you're You're exactly right. The kind of the pillars of the project Apex value proposition, So to speak is simplicity, choice and consistency. So we've got to deliver that simple kind of end end journey view of their entire cloud and as his for his experience, that need span our entire portfolio. So whether it's servers or stores are networking or PCs or cloud, all of that needs to be integrated into essentially a large single Web interface that gives you visibility across all of that. And, of course, the ease of scale up and, frankly, scaled down. You should be able to do that in real time through the system, you know, choices a big, big factor for us. You know, we've got the broadest portfolio in the industry. We want to provide customers the ability to consume infrastructure anyway. They want clearly they consume consume it the traditional way. But this more as a service flexible consumption approach is fundamental to making sure people customers on Lee pay for what they use So highly metered environment pay for pay as they go. Leverage subscriptions essentially give them that op X flexibility that they've been looking for. And then finally, I think the rial key differentiator is that consistent operating experience. So whether you move workloads on or off, Prem, it's got to be in a single environment that doesn't require you to jump around between different application and management experiences. >>Right? So I gotta ask you the tough question. I want to hear your answer to it. I mean, we've seen the cloud model. Everybody knows it very well, But But why now? People going to say Okay, you're just responding to HP. What's what's different between what you're doing and what some of your competitors are doing? >>Yeah, so I think it really comes down Thio the choice and breadth of what we're bringing to the table. So, you know, we're not going to force our customers to go down one of these routes. We're gonna provide that ultimate flexibility. And I think what we're what will really define ourselves against them in China, ourselves against them is that consistent operating experience we've got that opportunity to provide both an on prem edge and cloud experience that doesn't require them to move out of that operating experience to jump between different tools. So whether you're running a storage as a service environment, which will have in the first after next year, um, looking through our new cloud console that is coming out early next year is Well, you're gonna be able to have that single view of everything that's going on across your environment. It also be able to move workloads from on Prem and off Prem without breaking that consistent experience. I think that is probably the biggest differentiator we're going to have when you when you ladder that onto just the General Dell Technologies value of being able to meet and deliver our solutions anywhere in the world at any point of the data center at the edge or even cloud native. We've got the broadest portfolio to meet our customer needs wherever we need to go. >>So my understanding is the offering is designed to encompass the entire Dell Technologies portfolio from applying solutions I s G etcetera, not VM where specifically But that Zraly, that whole Dell Technologies portfolio correct. >>Yeah. And look, over time we totally expectable transacted VM ware through this so way. Do expect that to be part of the solution eventually. Eso Yeah, it is across. You know, PCs. A service storage is a service infrastructure. As a service, our cloud offers all of our services traditional services, um that are helping to deliver this as a service experience. And even our traditional financial flexible consumption models will be included in this. Because again, we want to offer ultimate choice and flexibility. We're not gonna force our customers to go down any of these pads, but we want to do is present thes pads and go wherever they want to go. We've got the breath of the portfolio in the offers. Thio, Get them there. >>Okay, so it's it's really a journey. You mentioned storage as a service coming out first, and then Aziz. Well, if I understand it, the idea is that I'm gonna have visibility and control over my entire state on Prem Cloud edge. Kind of the whole enchilada. Maybe not right out of the chute. But that's the vision. >>Absolutely. You've got to be able to see all of that and we'll continue thio iterating over time and bring mawr environments more applications, more cloud environments into this. But that is absolutely the vision of Project Apex is to deliver that fully integrated core edge cloud. Uh, partner experienced thio all of the environments, our customers to be running it. >>I wanna put my my customer had on my CFO CEO had Okay, What's the fine print? You know, one of the minimum bars to get in. What's the minimum commitment I need to make? What are the some of those? Those nuances? >>Yeah. So you know both the storage is a service which will be our first offer of many in our portfolio and the cloud console, which will give you that single web interface to kind of manage report and kind of thrive in this as a service experience. All that will be released in the first half of the next year. So we're still frankly defining what that will look like. But we wanna make sure that we deliver a solution that can span all segments from small business, the media business to the biggest enterprises out there globally. Goal expansion through our channel partners, we're gonna have gos and Channel Partners fully integrated as well service providers as well as a fundamental important piece of our delivery model and delivering this experience for our customers. So the fine print day will be out early next year. Is we G A. These releases and bring in the market. But ultimate flexibility and choice up and down the stack and geographically wide is the goal of the intent. We plan to deliver that. >>Can you add any color to the sort of the sort of product journey, if you will, I even hesitate Sam to use the word product because you're really sort of transferring your mindset into a platform mindset in the services mindset as opposed to bolting services. On top of a product you sell a product is okay, service guys, you take it from here. It's really you have to sort of re think you know your how you deliver on DSO You say you start with storage on then So what can we expect over the next midterm? Long term? >>Yeah. I'll give you an example. Look, we sell a ton of as a service and flexible consumption today. We've been at it for 10 years. In fact, in Q two, we sold Our annual recurring revenue rate is 1.3 billion growing at 30% Very, very pleased. So this is not new to us. But how you described Dave is right. We adopt products customers in pick their product. They pick their service that they want a bolt on. Then they pick their financial payment model. They bolted on, so it's a very good, customized way to build it. That's great, and customers are going to continue to want that will continue to deliver that. But there is an emerging segment that wants more just kind of think of the big easy button they want to focus on an outcome. Storage is a service is a great, great example where they're less concerned about what individual product element is. Part of that, um, they want it fully managed by Dell Technologies or one of our partners. They don't want to manage it themselves. And of course, they want it to be paid for use on an op X plan that works for, works their business and gives them the flexibility. So when customers going forward want to go down this as a service outcome driven path. They're simply going to say, Hey, what data service do I want? I want file or block unified object. They pick their data service based on their workloads. They pick their performance and capacity tear. There is a term limit. You know, right now, we're playing 1125 years, depending on the amount of terms you want Dio. And then that's it. It's managed by Dell Technologies. It's on our books from Dell Technologies on bits, of course. Leveraging our great technology portfolio to bring that service and that experience to our customers. So the service is the product now it really is making that shift that we are. We're moving into a services driven, services outcome driven set of portfolio on solutions for our customers. >>So you actually have a lot of data on this? I mean, you talk about a billion dollar business, uh, maybe talk a little bit about customer uptake. Uh, you know, I don't know what you can share in terms of numbers and a number of subscription customers, but what I'm really interested in the learnings and the feedback and how that's informed your strategy? >>Yeah. I mean, you're right again. We've been at this for, you know, many, many years. We have over 2000 customers today that have chosen to take advantage of our flexible consumption and as a service offers that we have today never mind, kind of as we move into these kind of turn key easy button as a service offers that air to come that early next year. So we've leveraged all of that learnings, and we've heard all of that feedback. And it's why it's really important that choice and flexibility is fundamental to the project. APEC strategy. There are some of those customers that they want to build their own. They want to make sure they're running the latest power max or the latest power store. They want to choose their network. They wanna choose how they protect it. They want to choose what type of service they they want to cover some of the services. They may want very little from us or vice versa. And then they wanna maybe leverage additional, more traditional means to acquire that based on their business goals. That feedback has been loud and clear, but there is that segment that is a no No, no. I need to focus more on my business and not my infrastructure. And that's where you're going to see these more turnkey as a service. Solutions fit that need where they want to just define s l. A's outcomes. They want us to take on the burden of managing it for them so they can really thick focus on their applications in their business, not their infrastructure. So things like metering tons of feedback and how well wanna meter this, uh, tons of feedback on the types of configurations and scale they're looking for? The applications and workloads that they're targeting for this world is very different than the more traditional world. So we're leveraging all of that information to make sure we deliver our infrastructure as a service and then eventually solutions as a service you think about S A P is a service vb isa service ai machine learning as a service will be moving up the stack as well to meet more of a application integrated as a service experience as well. >>So I wanna ask you so I mean, you've given us a couple of data points, their billion dollar plus business couple 1000 customers is this? I mean, you've got decent average contract values. If if I do my math right s so it's not just the little guys. I mean, I'm sorry. It's not just the big guys, but there's some fat middle is, well, that they're taking this up. Is that fair to say >>totally? I mean, I would say frankly, you know, in the enterprise space, it's the mid the larger sides have historically and we expect they'll continue to want to kind of choose their best a breed apart. Best debris to products, best of breed services. Best to breed financial consumption. Great. And we're in great shape. There were very competitive, very, very confident or competitive and competing in that space. Today, I think going into the turkey as a service space that will play up market. But it will really play downmarket mid market, smaller businesses. It gives us the opportunity to really drive a solution there where they don't have. The resource is to maybe manage a large storage infrastructure or backup infrastructure, compute infrastructure. They're gonna frankly look to us to provide that experience for them. I think are as a service offers will really play stronger in that mid and kind of lower end of the market. >>So tell us again the sort of availability of the actual, like the console, for example, when when can I actually get? I mean, I can get I could do as a service today. I could buy subscriptions from you. This is where it all comes together. What's the availability and roll out details? >>Sure. So as we look to move, move to our integrated kind of turn key as a service offers the console or announcing at Dell Technologies World as it's in public preview now. So for organizations of customers that want to start using it, they can start using it. Now, Uh, the storage, as a service offers gonna be available in the first half of next year. So we're rapidly kind of working on that now, looking to early next year to bring that to market so you'll see the console and the first as a service offered with storage, is a service available in the first half of next year, readily available to any and everyone that wants to deploy it. So we're We're not that far off right now, but we felt it was really, really important to make sure our customers, our partners and the industry really understands how important this transformation to as a service and cloud is for Dell Technologies. That's why you know, frankly, externally and internally, Project Apex will be that North Star to bring our end end value together across the business, across our customers across our our teams. And that's why we're really making sure that everybody understands Project Apex and as a services is the future for Dell. And we're very much focused on that. >>So I mean, is the head of product marketing. This is really a mindset of cultural change, really. You're really becoming the head of service marketing. In a way, How are you guys thinking about you know, that mindset shift? >>What? Really, it's it's How am I thinking about it? How is the broader marketing organization thinking about it? How is engineering Clearly thinking about it? How is finance thinking about it? How its sale like this is transformative across every single function within Dell Technologies has a role to play to do things very differently. Now it's going to take time. It's not gonna happen overnight. You know, various estimates have. This is a fairly small percentage of business today in our segments. But we do expect that to start to and it has started to accelerate. Ramp. You know, we're preparing for a large percentage of our business to be consumed this way very, very soon. That requires some changes in how we sell changes in how we mark. It clearly changes in how we build products and so forth, and then ultimately, have you know how we account for this has to change. So we're approaching it, I think the right way, Dave, where we're looking at this truly end. And this isn't a a tweak and how we do things or in evolution, this is a revolution for us to kind of move faster to this model again building on the learnings that we have today with our strong customer base on experience. We built up over the years. But this is a This is a big shift. This isn't an incremental turn of the crank. We know that. I think you expect that our customers expect that, and that's that's the mission we're on with Project date. >>Well, I mean with 30% growth. I mean that za clear indicator and people like growth. We're going. I've no doubt that clients are. That's a clear indicator that customers are glomming onto this. And and I think many folks wanna buy this way. And I think increasingly, that's how they buy SAS. That's how they buy Cloud. You know, why not buy infrastructure the same way? Give us your closing thoughts, Sam. What are the big takeaways? >>Yeah, Big takeaways is from a Dell Technologies perspective. Project Apex is that strategic vision of bringing together or as a service and cloud capabilities into a easy to consume, simple, flexible offer that provides ultimate choice to our customers. Look, the market has spoken. We're gonna be living in a hybrid, multi cloud world. I think the market is also starting to speak, that they want that to be in as a service experience, regardless of its on or off ground. It's our job. It's our responsibility to bring that he's that simplicity and elegance to the on Prem world. It's not certainly not going anywhere. Eso That's the mission that we're on with Project Apex and I like the hand we've been dealt. I like the infrastructure and the solutions that we have across our portfolio. And we're gonna We're gonna be after this for the next couple of years to refine this and build this out for our customers. This is just the beginning. >>Well, it's awesome. Thank you so much for coming to the Cuban. We were seeing the cloud model. I mean, it's extending on Prem Cloud, multi clouds going to the edge. And the way in which customers want to transact business is moving at the same same direction. So, Sam, good luck with this. And thanks so much. Appreciate your time. >>Yeah. Thanks, Dave. Thanks, Everyone. Take care. >>All right. Thank you for watching. This is Dave Volonte for the Cuban. Our continuing coverage of Del Tech World 2020. The Virtual Cube will be right back right after this short break

>>Well, welcome everybody to our last session of the day. I want to introduce you to Sean O'Meara. Orfield Cto. Hey, Sean. >>Hey, Nick. Good afternoon. It's been a crazy day. It has. It's been a busy run up to today in a busy day with a lot of great things going on. You know, we've heard from Adrian on his strategy this morning. The great way the Marantz is moving forward. We announced our new product line. You know, we spoke about the new doctor Enterprise Container Cloud line, New future for Mirant. Us. We had a great lineup of customers share their story. We introduced lanes following on the lanes launch a couple of weeks ago. Andi, we're introducing new great projects like our mosque project. New way to deliver open stack going into the future on then in parallel sel. This We ran a great tutorial tracker teachers you all about how to use these new products, and hopefully you'll go and everyone had opportunity to go and look through guys. Yeah. What's next? What is next? Yeah, lots going on. A lot of new things that we're thinking about for the future. Obviously, a lot of work to do on what we have right now. A lot of great things coming. But, you know, we've had this opportunity to talk about all these cool things that are coming down the road. And everybody these days seems to be talking about topics like edge computing or hybrid cloud. Or, you know, hyper scale data centers, even things like disaster recovery is a service. Andi, you know, we talk a lot about things like hyper converged, but frankly, it's boring. It's one thing a little. Good morning. Uh, you know, you and I have been talking about these topics for a while now, and I think it's about time when we spoke about some of the cool things that we're thinking about for the future, not necessarily looking out for the road map, but ideas for the future. Things that may could have an impact on the way we do business going to. So today we're gonna talk a little bit about things like pervasive computing. A nick, what is pervasive computing. >>Well, basically pervasive computing is when everything that you interact with, for the most part, is computerized. So in some ways, we're already there in that You know your phone is a computer. Your refrigerator may have a computer in it. Um, your smart watch your car has a computer in it. And the the most obvious sign of that is this whole Internet of things where, you know your vacuum is, uh is connected to your phone and all of that. And so pervasive computing is this, uh is this sense of you don't even really think about it. You just kind of assume that everything is computerized. >>So how is that different from ubiquitous computing? >>Oh, God. You hit, You hit my hot button. Okay, so if you look, there are a lot of places that will say that pervasive computing and ubiquitous computing are the same thing, but not the same thing. Don't use them interchangeably. They're not the same thing. You big. What is computing is where you can do your computing virtually anywhere. So, for example, you know, I've got, uh I've got a document. I started it on my laptop. I can then go and finish it sitting on the beach on my phone. Or, you know, I can go and do it in a coffee shop or a library. or wherever. So the idea of ubiquitous computing is similar in that, yes, there's computing everywhere, but it's more about your data being universally accessible. So essentially it is cloud computing. That is what this whole ubiquitous computing thing is about. >>Okay on that then differs from pervasive computing in the fact that pervasive is the devices that we have all around us versus the access to those devices. >>Exactly. It's it's really it's more about the data. So ubiquitous computing is more about My data is stored in some central place, and I could hit it from anywhere. There is a device, whereas pervasive computing is there is a device almost everywhere. Okay, so yeah, >>So why Why do we as Moran takes care about the vice of computing? >>Well, pervasive computing brings up a whole lot of new issues, and it's coming up really fast. I mean, you last night I was watching, you know, commercial where you know, somebody a woman's coming out and starting her car with her phone. Um, which sounds really cool. Um, but you know what they say Anything that you can access, you know, with your computer is hackable. So, you know, there are security issues that need to be considered when it comes to all of this, but that's that's the downside. But there's just this huge upside on pervasive computing that it's so exciting when you think about this. I mean, think about a world where remember I said your refrigerator might be attached to the network. Well, what if you could rent out space on your refrigerator to somebody someplace else in a secure way? Of course. You know what? If you could define your personal network as all of these devices that you own and it doesn't matter where your workloads run or, you know, you could define all of this stuff in such a way that the connectivity between objects is really huge. Um, so you know, I mean, you look at things like, you know, I f t t you know, it's like get a notification when the International space station passes over your house. Okay? I don't know why I would need that. Um, but it's the kind of thing that people >>would have a nine year old. You can run him outside and show Z. Oh, >>there you go. There you go. So I mean, that kind of level of connectivity between objects is really really it gives us this new level off. Uh, this new level of functionality that we would never even considered even 10 years ago. Um, it also extends the life of objects that we already have. So, you know, maybe you've got that, uh, that computerized vacuum cleaner, and you don't like the way that it you don't like the pattern that uses in your house. So you re program it or, uh Or I watched. I watched a guy decide that he didn't want to buy multiple vacuums for his house. So he programmed his programa will act Hume to fly between floors. It was actually pretty funny. Um, I it's some people just have too much time. >>It's driving the whole world of programmable at all levels. Really? Like the projects coming out of the car industry of creating a programmable car would fit into that category. Then, I >>suppose absolutely, absolutely needs developer tool kits. Um, that make it possible for anybody to re program these devices that you never would have thought of reprogramming before. So it's important. So do >>we want to talk about the questions. We would love people to give us some feedback on at this stage. >>I would love to talk about these questions. So what we did is we put together, uh, we put together a place for you to answer questions. If you're not watching this live. If you're watching this live, please go ahead. Drop your ideas in the chat. We would love to discuss them, you know. Do you want to see more of this? Or does it? Conversely, Does it scare you, Sean? You What? >>What do you >>think about these questions? >>Well, I mean, for me, the idea of the connected world at one level, the engineering me loves the idea. Another level. It comes to these questions of privacy. Vegas questions off. How do I control this going into the future? What prevents somebody from taking over my flying vacuum cleaner? I'm using it, you know? So it's an interesting question. I think there's a lot of cool, cool ideas. Yeah, and a lot of work to be done. I really want to hear other people's ideas as well and see how we can take this into the future. >>Definitely, definitely. I mean, look I mean, we're joking about it, but, you know, when somebody hacks into your grandmother's insulin pump, maybe not so funny. >>Yeah, a very real risk. >>A very real risk. A very real risk. But yeah, I mean, we'd love Thio. We'd love to hear how you'd like to see this used. So that's that's my That's kind of what I've been thinking about thes days. Um, but, you know, Sean, uh, now, you I know you are really concerned about this whole issue of developers and how they feel about infrastructure. So I would love to hear what you've got to say on that. >>Yeah, I'd like to sex, but a bit about that. You know, we we've done a lot of work over the last few years looking at how developing our history has been very focused on operations, but without big drive towards supporting developers providing better infrastructure for developers. One of the interesting things that keeps coming up to the four on Do you know, the way the world is changing is that big question is, do developers actually give a damn about infrastructure in any way, shape or form? Um, you know, ultimately more and more development languages and tools abstract that underlying infrastructure. What communities does is basically abstract. The infrastructure away, Um, mawr and more options. They're coming to market, which you can quite literally creating application without out of a writing a line of code. Um, so this morning, way Dio, we're doing it all the time, sometimes without even realizing it on. I think the definition of what a developer is is also changing to a certain extent. So you know the big question, which I have on which I'd like to understand Maureen, from talking to low developers is due. Developers care about infra What is it that you expect from infrastructure? What do they want going into the future? How are they going to interact with that infrastructure? I My personal opinion is that they don't really care about infrastructure, that they're going to find more ways to completely abstract away from that. And they just want to focus on delivering applications faster and getting value to market. But I might be wrong, and I'd really like to hear people's impact ideas and thoughts on that >>on. And that's exactly and that's why we're asking this question. Developers out there. Do you care? Or do you just want the whole thing completely abstracted away from you >>on? If you do care why, If you don't, what would you like to see? Another. It's a couple of questions to ask, but really like to hear those opinions on bond. You know, Do you just want the operations guys to live with it? You never want to hear about it again, just fine. It's actually good to say that we'll work it out. >>Yes, and that there's nothing. There's nothing wrong with pushing that up stack >>pretty much what we're trying to do here. >>Well, it is what we're trying to do. But at the same time, we want to do what's good for developers. And if you developers or like No, don't don't do that. Well, we want to know because, you know, we don't wanna work away here and some ivory tower and wind up with something that's not good for >>you after school. So cool. So, yeah, there are some other interesting things we're talking about. >>I know, I know. This is This is one of my favorites. This is one of my favorites. >>Zoo this? Yes. While >>we're on the subject of not getting involved with the infrastructure. Go ahead, Sean. Tell us about it. >>Thing is a pet topic of mine and something that that we've spoken about a lot. And thanks something that we we have spent many nights talking about. The idea is AI ops using artificial intelligence to drive operations within our infrastructure. And so a lot of people ask me, You know why? Um, essentially, What the hell is a I out on? I have answered this question many times, and it does often seem that we all take this AI ops thing for granted or look at it in a different way. To me, it is essentially, it's it's automation on steroids. That's what it boils down Thio. It's using intelligence systems that to replace the human cerebellum. I mean, let's just be blunt about this. We're trying to replace humans. Onda reason for that is we humans less meat sacks are airplane. We make mistakes all the time and compared to computers were incredibly slow. Um, you know, that's really the simplest point with the scale of modern infrastructure that we're dealing with the sheer volume. I mean, we've gone from, you know, thousands to tens of thousands of the EMS to now hundreds and thousands of containers spread across multiple time zones. Multiple places. We need to come up with better ways of managing this on the old fashioned stick through mechanism of automation. It's just too limited for that. Right >>when we say we want to replace meat sacks, we mean in a good way. >>We mean in a good way. I know it's a bit of a harsh way of putting it. Um, ultimately, humans have ability for creativity that machines just don't have. But machines can do other things, and they could do analysis of data a lot faster than we can. Quite often, we have to present that data to humans to have invalidate that information. But, you know, one of the options for us is to use artificial intelligence, quantified data, um, correlated, you know, look for root cause and then provide that information to us in such a way that we can make valid decisions based on that information a lot faster than we could otherwise, >>right? So what are the what are the implications? What are the practical implications of doing this so >>practically we can analyze massive amounts of data a lot faster than a single human. Could we even just a normal type system that's searching? We We have the tools to learn by looking at data and have machines do it a lot faster than we can. We can take action faster based on that data, because we get the data foster. We can take action and much more complex action that involves maybe many different layers of tasking much, much faster. Um, on we could start to do maintenance operations and maintenance tasks without having to wait for human beings to wake up or get to an office. But more importantly, we could start making tasks happen very complex tasks in a very specific orders, with much less potential for error. And those are the kinds of areas we're looking at. >>That's that's true. So how do you kind of see this moving forward? I mean, obviously, we're not gonna go from nothing to Skynet, and hopefully we never get to Skynet. Well, >>depends if you are in control of Skynet or not. Ultimately, Dionysus little computer. Um, practically speaking, we have a few things Thio hoops to jump through our suppose before we can look at where else is going to be really effective on the first one is a trust issue. We have to learn to trust it. And to do that, we have to put in a position where it can learn and start providing us that data analysis on that inference and then having humans validated. That's practically the very first step. No, it's a trust issue. You know, we've seen been watching sci fi for the last 30 years. Class on. Do you know the computers take over? Well, ultimately, is that real or not? Um, if we look at how we gonna get there? Probably midterm. Adaptive maintenance, maybe infrastructure orchestration. Smart allocation of resource is across cloud services. Well, >>we can talk for a minute About what that would would actually look like. So, I mean, we could talk about, you know, abs, midterms. I mean, in a practical sense, how would that actually work? >>Yeah, Okay. It's a great question. So, practically speaking, the first thing we're gonna do is we're going to start to collect all this data. We're gonna find all this data. I mean, the modern computer systems that we have infrastructure systems. We are producing many hundreds of gigabytes, sometimes terabytes of logging data every day. The majority of it gives far 13. I mean, we throw the majority of their logging information away or if it's not thrown away, it's stored some way for security purposes and never analyzed. So let's start by taking their data and actually analyzing it. To do that, we have laid and correlated, >>so we >>gotta put it all together. We've got a match it and we've got to start building patents. We're going to start looking for the patterns. This is where I is particularly good at starting to help us. Bold patterns start to look for those patterns. Initially, humans will have to do some training. Um, once we have that patent, once we've got that working, we can now start having the AI systems start to do some affairs. E, here's the recalls. So we the system can tell us based on the data based on the patterns we've been learning. We know from the past debt. If those three network links get full bad example, we're gonna have a failure in Region X, right. So start telling us while those network links of filling up tell us before they fall rather than after their full always they're falling up as we see trending information now seems like a simple I could do trending information with just normal monitoring systems. But if I can start to correlate that with greater users in, you know, Beijing Office versus Users in California office filling up those links and different times of the day, I can now start to make much more clever decisions, which is a human on its own, to try and correlate that information, which is be insane once you've done that way to go to the next stage, which is not to have the system act do actions for us. Based on that information right now, we're starting to get close to the scan it. Speaking of this doesn't have to be a big, complex pile of change. Smart ai solution. I have data on that AI solution is talking to my existing automation solutions to action. That change. That's how I see this moving forward, >>right? So essentially you, instead of saying, you know, deploy this too. Uh, this workload to AWS, you would say deploy this. Yeah, And then the system would look and go. Okay, It's this kind of workload. At this time of day at this size, it's gonna interact with this and this and this. And so it's gonna be best off in this region of this cloud provider on then. Uh, you know, two days from now, when the prices drop, we're gonna put it over there, >>even taking a different different. Spoken exactly that it could be. The Beijing office is coming online. Let's move the majority of the workload to a cloud that's closer to them. Reducing the network bandwidth. Yeah, and inference. Andi Also reducing the impact on international lines as Beijing winds down for the day, I can just move the majority of the workload into California on board Europe. In between, it's very simple examples, but have humans do that would be very complex and very time consuming >>exactly. And end. Just having humans notice those patterns would be difficult. But once you have the system noticing those patterns, then the humans could start to think, How can I take advantage of this, you know, So as you are talking about much longer term in the actual applicant patients themselves. So you know, everything can be optimized that way so >>everybody may optimized way can optimize down to the way we even potentially write applications in the future. Humans were still deciding the base logic. Humans were still deciding the creative components of that. Right as we as we build things, we can start to optimize them, breaking down into smaller and smaller units that are much more specific. But the complexity goes up. When we do that right. I want to use AI and AI solutions to start to manage that complexity across multiple spaces. Multiple time zones, etcetera. >>Exactly. Exactly. So. So that's the question, you know. What do you guys think? You know, we really want to know >>on Dhere again. You know, we mentioned this around the beginning, but do you think you could trust in a iob sedition? What would it take for you to trust in our absolution? And where do you practically see it being used in the short term? >>Yeah, that's that's the big question is where do you see it being used? Where would you like it to be used, you know? Is there something that you don't think would be possible, but you would like to see it, you know. But the main thing is, on a practical matter, what would you like to see? >>Let me ask. The question is like a different way. Do you have a problem that we could solve within a isolation today? E, They're really well >>right. A re a world problem. And And assuming that, you know, we are not gonna, you know, take over the world. >>Yeah. Important. My evil plan is to take over the world with >>man. I'm so sorry. First >>had to let that draw. >>I did. I did. I'm so sorry. Okay, Alright. So that's so That's a I ops. And we like I said, if you're watching this live, throw in the chat. We want to hear your ideas. If your, um if you're doing this, if you're watching this on the replay, go to the survey because we way, we really want to hear your ideas and your opinions. All right, So moving right along. All right. What the heck are you know, kernels? >>Uh, lovely questions. So, you know, the whole world is talking about containers today way we're talking about containers today. But containers like VMS or just one way to handle compute Andi. They're more and more ideas that are out there today, and people have been trying different ways off, shrinking the size of the compute environment. COMPUTER Paxil Another cool way of looking at this and saying That's been around for a little while. But it's getting your attraction to learn to sing called unique kernels, and what they are is they're basically highly optimized. Execute a bles that include the operating system, Um, there on OS settle libraries, um, and some very simplified application code all mixed into a very, very tiny package. Easiest way to describe them. They're super simplified. And I were talking about in the eye ops discussion this idea off taking everything into smaller and smaller individual functions but creating a certain level of complexity. Well, if we look at uni kernels, those are those smaller and smaller bundles and functions. They interact directly with the hardware or through a hyper visor. Um, so actually, no overhead. I mean the overhead If you just look at what a modern you clinics operating system is made up of these days, there are so many different parts and components. Even just the colonel has got anything from, you know, 5 to 7 different parts to it. Plus, of course, drivers and a boot loader. Then we look at the system libraries that set on top of that, you know? And then they're demons and utilities and shells and scream components and, you know, additional colonel stacks that go on top of that for hyper visors. What we're trying to say is, what, This text of space, I'm >>getting tired. Just listening, >>Thio. I'm tired talking about it. You know that the unique colonel, really, it just takes over their complexity. It puts the application the OS on the basic libraries necessary. That application in tow, one really tiny package. Um, yeah. Give you an idea what we're talking about here. We're talking about memory footprints or time package footprints in the kilobytes. You know, a small container is considered 100 make plus, we're talking kilobytes. We're talking memory utilization in the kilobyte two megabytes space because there's no no fact, no fluff, no unnecessary components. And then only the CPU that it needs. >>So Bill Gates was right 6. 40 k is all anybody will ever need >>Potentially. Yeah, right. E, there was there was an IBM CEO who said even less at some point. So we'll see >>how that go. What goes around comes around. >>But one of the really interesting things about this small size, which is really critical, is how fast they can boot. Yeah, we're talking boot times measured in 30 seconds. Wow, We're talking the ability to spin up specific functions only when you need them. Now, if we look at the knock on effect of that, we're looking at power saving. Who knew? Run the app when I need it because there's no Leighton. See to start it up. The app is tiny so I can pack a lot mawr into a lot less space game power seconds. But when I start looking at where you were talking about earlier, which the basic compute idea in the world all of a sudden that tiny little arm chips it in my raspberry pi that's running my fridge, My raspberry pi equivalent that's running my fridge no longer has a fact operating system around it. I can run tens thousands, potentially off these very tiny specific devices when I need them. Wow, I'm kind of excited about it. I'm excited by the idea. You >>can hear that >>I'm a hardware geek from from many, many moons ago on DSO. I kind of like the idea of being able to better utilize along this very low powered hardware that we have lying around and really take it into the future. Well, that's good. Yeah. So I'm not going to kill, not going to kill containers. But it is a parallel technology that I'm very interested in >>that that is true. Now what does it I mean in terms of, like, attack surface. That means it's got a much smaller attack surface, though, right? >>Yeah. Great. Great point. I mean, there's no there's no fluff. There's no extra components in the system. Therefore, the attack surface is very, very small. Um, you know, and because they're so small and can be distributed much, much faster and much more easily updating and upgrading them as much easier way can we can upgrade a 60 k b file across a GPRS connection on which I certainly can't do with 600 make, uh, four gig VM 600 made container. You know, just unrealistic. Um, e >>I was just going to say so. So now these. You know, kernels, they're they're so small. And they have on Lee what they absolutely need. Now, how do you access the hardware? >>So the hardware is accessed via hyper visor. So you have to have some kind of hyper visor running on top of the hard way. But because Because we need very little from their type adviser, we don't actually need to interact with that very much. It could be a very cut down operating system. Very, very simplified operating system. We're also not trying to run another layer on top of that. We're not We're not ending up with multiple potential VMS or something underneath it were completely removed. That layer, um, the the drivers, the necessary drivers are built into that particular colonel device. >>Oh, okay. That makes sense. >>Tiny footprint easily distributed, um, and once again, very specialized, >>right? Right. Well, that makes sense. Okay. So, yeah, I mean, I guess so. These these individual stacks, you know, comparing virtual machines to containers to unit colonels, there just a completely different architecture. But I can see how that would How That would work where you have the hi perverse. A little hyper buys are on top of rented teeth. OK, so moving right along certain. Where do we see these being used? >>Um, it's early days, although there are some very good practical applications out there. There's a big, big ecosystem of people trying different ways for this I o ts off the obvious immediate place. I i o t s a quick, easy place for something very specialized. Um, what's interesting to me? And you mentioned this earlier. You know, we're talking about medical devices. We're talking about potentially disposable medical devices. Now, if I can keep those devices to run on really low power very, very cheap, um, CPUs and all of a sudden I've got a device that is available to a lot more people. I don't need a massive, powerful CPU. I just need saying that runs a very specific function really fast, A very small scale. I could do well disposable devices. I can build medical devices that are so small we can potentially swallow them and other areas which are really interesting. And I spoke a little bit about it, but it's energy efficiency. Where We need to be very, very energy efficient. No. And that can also impact on massively scalable systems where I want to deal with tens of thousands of potential transactions from users going into a system. I can spin them up only when I need them. I don't need to keep them running all the time again. It comes back to that low latency on then. Anyway, that an incredibly fast food time is valuable. Um, a car, you know, Think about it. If if my if my electric car is constantly draining that battery when it's parked in the garage and I'm traveling or if it takes 20 minutes from my car to boot up its clinics. Colonel, when I wanted, I'm going to get very irritated. Well, >>that and if you have a specific function, you know, like, identify that thing, Yeah, it would be good if you haven't smashed into it before. Identified it as a baby carriage e dark today. Yes. >>So, Nick, you know, these is all really interesting topics. Um, yeah. We spoke about air ops. We spoke about the impact is gonna have on humans. Um, all of these changes to the world that we're living in from computer systems, the impact it's having on our lives biggest. An interesting question about the ethics of all of this >>ethics of all of this. Yes, because let's be let's be realistic. There are actual riel concerns when it comes to privacy, when it comes to how corporations operate, when it comes to how governments operate. Um, there are areas of the world's where, how all of this has has moved, it's absolutely I'll be honest, absolutely terrifying the economic disparity. Um, but when you really come right down to it, um, it's all about the human control over the technology because all of these ethical issues are are in our hands. Okay, we could joke about Sky Net. We can joke about things like that, but this is one place that technology can't help us. We have to do this. We have to be aware of what's going on. We have to be aware. Are they using facial recognition? Uh, you know, when you go to X y Z, are they using recidivism algorithms in sentencing? And how is that? How is that going? Is it? Are those algorithms fair? Certain groups get longer sentences because historical data, uh, is skewed. Be educated. Know how this works? Don't be afraid of any of this. None of this is, uh, none of this is rocket science. Really? Come right down to it. I mean, it's it's not simple, but you can learn this. You can do it. >>Ask good questions. Be interested to be part of the part of the discussion. Not just a passive bystander. >>Exactly. Don't just complain about what you think is going on. Learn about what is actually going on and be active, where you see something that needs to be fixed. So that's what that's what we can do about it. We need to be aware that there's an issue or potential issues, and we need to step in and fix it. So that z myself box, I'll step down zone >>important topic. And it's one that we all can have influence on on bits one. Those who are us who are actually involved in building these systems for the future. We can help make sure that the rules are there. That's right. Systems are built correctly on that. We have open dialogues and discussions around these points and topics and on going away, was she? I think we're coming to the end of the time on hopefully we've kept everybody interested in some of the things that we think are cool for the future. And we're putting our efforts into E O. But I think we need to wrap this up now. So, Nick, great chatting to you is always >>always, always a pleasure, Sean. >>It's been an amazing week. Um, been amazing. Couple of weeks, everybody leading up to this event on bond. No, thank you, everybody for listening to us. Please go and download and try. Dr. Enterprise, Uh, the container card is available. Will post the links here to better understand what we've been doing. Go and have a look through the tutorial track. You'll hear my voice. I'm sure you'll hear next voice and make other people's voices through those tutorials. Hopefully, we keep you all interested and then going download and try lens, Please. Finally, we want your feedback. We're interested to hear what you think would be the great ideas. Good, Bad. Otherwise let us know what you think about products. We are striving to make them better all the time. >>Absolutely. And we want your involvement. Was it all right? Thank you all. Bye bye. Yeah,

>>from around the globe. It's the cue with digital coverage of out systems. Next step 2020. Brought to you by Out systems. Welcome back. I'm stupid, man. This is the Cube at Out systems. Next step course. When we gather at the events, one of the big things to talk about is the community and out system show is no exception. Lots of developers, lots of community engagement. A Z they're building and sharing what they have. So to dig into that topic, happen it. Welcome to the program. 10 Lopez. She is the senior director of Community and Advocacy without systems. Again. Thank you so much for joining us. >>Hi. Thanks so much for having me. >>Well, Jen, you know they're there. So much discussion in the industry right now is like OK, what does that the current moment in time with the global pandemic mean for events? What does it mean for communities? The term I've heard used so much is, you know, how do we bring ourselves together even while we're apart? But if you could, you know, give us You know what does the community on help systems look like? You know, you've had this event before. If this was 2019 you know, what did the community activity in the community engagement looked like? >>Yeah, we're definitely in a different world right now, right? So in 2019 gathering the community together, you know, whether it was at at Max step or another in person events that we often had. Um you know that that is such a huge part of building community is getting people together and being able to have those conversations. And, um, sometimes it's just ah, whether it's meeting at, you know, you're getting some coffee and you meet someone. All of those in person things, um, are hard to do online. But we're really working hard this year at, you know, finding those ways to connect in a bunch of different ways with the community. Um, we have our regular technical talks and that sort of thing that we're doing. But we also have a chat where you can come in tow and chat with other community members. We're gonna have ah, 24. You know, we have this 24 hour zoom going on. So you could you know, we're fine trying to find his many ways as possible. Teoh sort of at least get those conversations and have the ability for the community to connect with each other. >>I'm wondering if you can, you know, people look at communities and especially in the developer community There's so many different pieces of that. Uh, when I talkto Gonzalo he was talking about how do we enable the next? You know, 10 million developers? When I talk to help communities, it looks like the app Dev is obviously a big piece of ah of what you're addressing. But you characterize if you could And if you have any staff but loved, understand, you know, the community, the growth of community. You know where the engagement activity is. >>Yeah, thanks. So the community growth of the out systems community has been phenomenal. Um, last year we saw are just for this year with on 90% growth since last year. Uh, we have 22,000 developers on a monthly basis who are actively doing things in the community. Um, that's anywhere from between building APS and asking questions in the forum and, um, using downloading forge components which are reusable APS attending user groups. There's all these things right. We have this activity level that we've seen that has just been through the roof. And, um, Cove in for the community has actually been, You know, we've seen a huge birth specifically march in April, we saw a great increase in new members coming on. And then what happened is our other members jumped in answering way more questions than we've ever had in the forums offering to help in different ways so that between the increase in gross, the growth and increasing activity, uh, the community itself has jumped in to really help out other people. >>Well, if you look at the development community and the tools they use and how they engage there, really, the work from home, you know, movement probably hit them a little bit less that than the average knowledge worker because they're used to being online there. Used to engaging in these environments. Often it is a distributed community, so it sounds like it makes sense. What what else? From a covert standpoint, You know, I've talked to some of the out systems customers and the ability it baked into the five former, something that they're take advantage of. Do you have any interesting stories around. You know how the community is rallying, you know, specifically with Kobe going on? >>Yeah. So, actually, that that Brown was a huge thing for us. We had at both internal and external. We were getting a lot of folks coming to us and saying, you know, everybody wanted to help, right? Especially in the beginning off when it kind of hit globally, everybody wanted to help. So what we did is we launched a program that we called the community the coveted 19 community response. Orban, um and we weren't quite sure exactly how people might react. But what ended up happening is we had thousands of people give ideas. And with those ideas, we had teams of people who were working on building these acts and actually launching the abs to help different communities all around the world with various issues. Whether it waas, you know, um, on an uber like up that was created to help people in a certain community, you know, find somebody who could go to the store for them. Um, there were, you know, these different acts were being created by the community. The ideas were coming from the community and people just really rallied around it because everybody wanted to help and they wanted to participate and be a part of something. And they were able to get these APS out in, you know, record time. Um, I would see other folks. Everyone was was trying to rely on technology at the time. And I would see other folks saying, Oh, you know, we had a team of five people spent 22 weeks building out. You know, our first M v p of this happened at out systems we were seeing people in, you know, two people in one week having, like, awfully blown, flushed out, being created. Um, So we were able to you not just help with the technology simply but help really quickly when it was needed right away. >>You know what? One of the themes I've been hearing a lot at the show is How do we close that? That Helen skill gap? Um, I have to imagine with your community engagements, the advocacy. You've got some visibility in tow. You know what things is out system engaged with when it comes toe educating the next generation, helping people take advantage of some of the new technologies adoption of the new AI features. It gives a little viewpoint as those changing dynamics in the community and specifically for developer. >>Yeah, I think it's it's really interesting. So, um, we have a number of programs with our between our education program and, um, low code schools and various programs where we're getting not just new developers coming in and burning out systems right away. But but actually getting developers who were coming from other programming languages who were ready to learn something new, who are like, Hey, I'm hearing a lot about, you know, uh, these these different ways to be innovative and I, you know, build an act quickly and it's still secure and stable and robust. And all of this. And so we have a lot of people on, you know, coming in in different ways. We're also really excited about a new partnership that we've just launched with women who code. We're you know, we're working really hard at going beyond just sort of those regular ways of people coming in. We want to help bring people from, you know normally, who may be underrepresented intact at the moment because we want to help bring that new generation in and that generations coming from all walks of life. And, um, you know, coming up with working on lots of different ways, Teoh, educate and and bring them in and keep them intact. >>Yeah. You know, Jen, such an important topic. I'm so glad that you brought it up, you know, diversity. Um, you know what? One of the things when when I think about we're lowering the bar. Ah, and you know what necessary skills? You have to get started to be a coder so often it's I have to have this degree. I need to understand these languages. So, you know, do do you feel this general movement is making it more accessible? Are we in a You know, what are we doing? What we doom or to be able to reach out, find some new pools of talent that can help us close this gap. And you know, then, as you said, keep them in tech. >>Yeah, and I think that will be key, is keeping them in tech. But, um, there are right now it's a It's a strange thing to say this is an opportunity, right? But with lots of people. Um, and specifically here in the US, where I am, Obviously we have a lot of folks who have lost jobs, right? People are looking for ways to get into something new. What's great about being able to learn? Ah, out systems is that that you're going to have a a different kind of job, right? You're going to have one of those jobs with an enterprise organization, um, or or or, you know, one of our partnerships. And it's going to level up your career and it totally differently. And there are, um, uh, lots of organizations right now who are also looking to find those those ways online there, like we have all these members in our community. But we're trying to get trained and Intertek and in different ways, and they're reaching out to us as well and saying, Hey, we're hearing a lot about you know, all of these innovative things out systems is doing. How do we work together? And so it's been really exciting to see that it's not just us going out and reaching out its people saying, Oh, I see these really cool things that you're doing and you know, we want to help get our members, um, learning and into this as well. >>All right, let's look a little forward. If we could, Jen, you know, tell us. You know what? What do you What do you see in the future? You know what feedback you're getting from community? What things should we be looking at? Going forward, >>Going forward. I think that, um, development is really going to be focused on on being able to be creative and innovative and finding new ways to do things. We don't have to do things the same old way anymore, right? We can, uh, build a robust application, uh, quickly and likely saw with co bid. Um, you know, we had big issues, and people were able Teoh, uh, figure out a way Thio Thio use technology to actually help fix these issues or solve a problem really quickly. And I see that very much that people it lights something in people's minds of Oh, being a developer doesn't have to just mean sitting and coding all day. It means, you know, doing really but robust things that I can do to help people and use technology in a totally different, innovative way >>Wonderful. Don't want to give you the final word when we talk about out systems bringing the community together. What do you want? People toe understand and connect with on this community? >>Thedc, um, unity itself is very generous and giving and one thing, but I have really, really loved about being a part of out systems is the community itself because they are working really hard to help bring new developers in help train them, give them mentor ship. So there's a There's a big feeling of, you know, it's not just every person out for themselves. They really want to help lift each other up. I think it's really important for, you know, feeding that technology, that new generation and that innovation that that is coming from it. All right, >>well, 10 Lopez thank you. So so much for helping us dig inside the community. Definitely looking at the engagement opportunities this week. And ah, thank you for all of the information that you share. >>Thanks, Dio appreciate it. >>Stay tuned for more cover jumps to minimum. And thank you for watching the Cube

>>Welcome everyone. Good morning. Good evening to all of you around the world. I am so excited to welcome you to launch bad our annual conference for customers, for partners, for our own colleagues here at Mirandes. This is meant to be a forum for learning, for sharing for discovery. One of openness. We're incredibly excited. Do you have you here with us? I want to take a few minutes this morning and opened the conference and share with you first and foremost where we're going as a company. What is our vision then? I also want to share with you on update on what we have been up to you for the past year. Especially with two important acquisitions, Doc Enterprise and then container and lens. And what are some of the latest developments at Mirandes? And then I'll close also with an exciting announcement that we have today, which we hope is going to be interesting and valuable for all of you. But let me start with our mission. What are we here to Dio? It's very simple. We want to help you the ship code faster. This is something that we're very excited about, something that we have achieved for many of you around the world. And we just want thio double down on. We feel this is a mission that's very much worthwhile and relevant and important to you. Now, how do we do that? How do we help you ship code faster? There are three things we believe in. We believe in this world of cloud. Um, choice is incredibly important. We all know that developers want to use the latest tools. We all know that cloud technology is evolving very quickly and new innovations appear, um, very, very quickly, and we want to make them available to you. So choice is very important. At the same time, consuming choice can be difficult. So our mission is to make choice simple for you to give developers and operators simplicity and then finally underpinning everything that we dio is security. These are the three big things that we invest in and that we believe that choice, simplicity and security and the foundation technology that we're betting on to make that happen for you is kubernetes many of you, many of our customers use kubernetes from your aunties today and they use it at scale. And this is something we want to double down on the fundamental benefit. The our key promise we want to deliver for you is Speed. And we feel this is very relevant and important and and valuable in the world that we are in today. So you might also be interested in what have been our priorities since we acquired Doc Enterprise. What has happened for the past year at Miranda's And there are three very important things we focused on as a company. The first one is customer success. Um, when we acquired Doc Enterprise, the first thing we did is listen to you connect with the most important customers and find out what was your sentiment. What did you like? What were you concerned about? What needed to improve? How can we create more value and a better experience for you? So, customers success has been a top of our list of priorities ever since. And here is what we've heard here is what you've told us. You've told us that you very much appreciated the technology that you got a lot of value out of the technology, but that at the same time, there are some things that we can do better. Specifically, you wanted better. Sele's better support experience. You also wanted more clarity on the road map. You also wanted to have a deeper alignment and a deeper relationship between your needs and your requirements and our our technical development that keep people in our development organization are most important engineers. So those three things are were very, very important to you and they were very important to us here. So we've taken that to heart and over the past 12 months, we believe, as a team, we have dramatically improved the customer support experience. We introduced new SLS with prod care. We've rolled out a roadmap to many many of our customers. We've taken your requirements of the consideration and we've built better and deeper relationships with so many of you. And the evidence for that that we've actually made some progress is in a significant increase off the work clothes and in usage of all platforms. I was so fortunate that we were able to build better and stronger relationships and take you to the next level of growth for companies like Visa like soc T general, like nationwide, like Bosch, like Axa X l like GlaxoSmithKline, like standard and Poor's, like Apple A TNT. So many, many off you, Many of all customers around the world, I believe over the past 12 months have experienced better, better, better support strong s L. A s a deeper relationship and a lot more clarity on our roadmap and our vision forward. The second very big priority for us over the last year has been product innovation. This is something that we are very excited about that we've invested. Most of our resource is in, and we've delivered some strong proof points. Doc Enterprise 3.1 has been the first release that we have shipped. Um, as Mirant is as the unified company, Um, it's had some big innovative features or Windows support or a I and machine learning use cases and a significant number off improvements in stability and scalability earlier this year. We're very excited to have a quiet lens and container team, which is by far the most popular kubernetes. I'd, um, in the world today and every day, 600 new users are starting to use lens to manage the community's clusters to deploy applications on top of communities and to dramatically simplify the experience for communities for operators and developers alike. That is a very big step forward for us as a company. And then finally, this week at this conference, we announcing our latest product, which we believe is a huge step forward for Doc Enterprise and which we call Doc Enterprise, Container Cloud, and you will hear a lot more about that during this conference. The third vector of development, the third priority for us as a company over the past year was to become mawr and Mawr developer centric. As we've seen over the past 10 years, developers really move the world forward. They create innovation, they create new software. And while our platform is often managed and run and maybe even purchased by RT architects and operators and I T departments, the actual end users are developers. And we made it our mission a za company, to become closer and closer to developers to better understand their needs and to make our technology as easy and fast to consume as possible for developers. So as a company, we're becoming more and more developers centric, really. The two core products which fit together extremely well to make that happen, or lens, which is targeted squarely at a new breed off kubernetes developers sitting on the desktop and managing communities, environments and the applications on top on any cloud platform anywhere and then DACA enterprise contain a cloud which is a new and radically innovative, contain a platform which we're bringing to market this week. So with this a za background, what is the fundamental problem which we solve for you, for our customers? What is it that we feel are are your pain points that can help you resolve? We see too very, very big trends in the world today, which you are experiencing. On one side, we see the power of cloud emerging with more features mawr innovation, more capabilities coming to market every day. But with those new features and new innovations, there is also an exponential growth in cloud complexity and that cloud complexity is becoming increasingly difficult to navigate for developers and operators alike. And at the same time, we see the pace of change in the economy continuing to accelerate on bits in the economy and in the technology as well. So when you put these two things together on one hand, you have MAWR and Mawr complexity. On the other hand, you have fast and faster change. This makes for a very, very daunting task for enterprises, developers and operators to actually keep up and move with speed. And this is exactly the central problem that we want to solve for you. We want to empower you to move with speed in the middle off rising complexity and change and do it successfully and with confidence. So with that in mind, we are announcing this week at LAUNCHPAD a big and new concept to take the company forward and take you with us to create value for you. And we call this your cloud everywhere, which empowers you to ship code faster. Dr. Enterprise Container Cloud is a lynch bit off your cloud everywhere. It's a radical and new container platform, which gives you our customers a consistent experience on public clouds and private clouds alike, which enables you to ship code faster on any infrastructure, anywhere with a cohesive cloud fabric that meets your security standards that offers a choice or private and public clouds and offer you a offers you a simple, an extremely easy and powerful to use experience. for developers. All of this is, um, underpinned by kubernetes as the foundation technology we're betting on forward to help you achieve your goals at the same time. Lens kubernetes e. It's also very, very well into the real cloud. Every concept, and it's a second very strong linchpin to take us forward because it creates the developing experience. It supports developers directly on their desktop, enabling them Thio manage communities workloads to test, develop and run communities applications on any infrastructure anywhere. So Doc, Enterprise, Container, Cloud and Lens complement each other perfectly. So I'm very, very excited to share this with you today and opened the conference for you. And with this I want to turn it over to my colleague Adam Parker, who runs product development at Mirandes to share a lot more detail about Doc Enterprise Container Cloud. Why we're excited about it. Why we feel is a radical step forward to you and why we feel it can add so much value to your developers and operators who want to embrace the latest kubernetes technology and the latest container technology on any platform anywhere. I look forward to connecting with you during the conference and we should all the best. Bye bye. >>Thanks, Adrian. My name is Adam Parco, and I am vice president of engineering and product development at Mirant ISS. I'm extremely excited to be here today And to present to you Dr Enterprise Container Cloud Doc Enterprise Container Cloud is a major leap forward. It Turpal charges are platform. It is your cloud everywhere. It has been completely designed and built around helping you to ship code faster. The world is moving incredibly quick. We have seen unpredictable and rapid changes. It is the goal of Docker Enterprise Container Cloud to help navigate this insanity by focusing on speed and efficiency. To do this requires three major pillars choice, simplicity and security. The less time between a line of code being written and that line of code running in production the better. When you decrease that cycle, time developers are more productive, efficient and happy. The code is higher, quality contains less defects, and when bugs are found are fixed quicker and more easily. And in turn, your customers get more value sooner and more often. Increasing speed and improving developer efficiency is paramount. To do this, you need to be able to cycle through coding, running, testing, releasing and monitoring all without friction. We enabled us by offering containers as a service through a consistent, cloudlike experience. Developers can log into Dr Enterprise Container Cloud and, through self service, create a cluster No I T. Tickets. No industry specific experience required. Need a place to run. A workload simply created nothing quicker than that. The clusters air presented consistently no matter where they're created, integrate your pipelines and start deploying secure images everywhere. Instantly. You can't have cloud speed if you start to get bogged down by managing, so we offer fully automated lifecycle management. Let's jump into the details of how we achieve cloud speed. The first is cloud choice developers. Operators add mons users they all want. In fact, mandate choice choice is extremely important in efficiency, speed and ultimately the value created. You have cloud choice throughout the full stack. Choice allows developers and operators to use the tooling and services their most familiar with most efficient with or perhaps simply allows them to integrate with any existing tools and services already in use, allowing them to integrate and move on. Doc Enterprise Container Cloud isn't constructive. It's open and flexible. The next important choice we offer is an orchestration. We hear time and time again from our customers that they love swarm. That's simply enough for the majority of their applications. And that just works that they have skills and knowledge to effectively use it. They don't need to be or find coop experts to get immediate value, so we will absolutely continue to offer this choice and orchestration. Our existing customers could rest assure their workloads will continue to run. Great as always. On the other hand, we can't ignore the popularity that growth, the enthusiasm and community ecosystem that has exploded with communities. So we will also be including a fully conforming, tested and certified kubernetes going down the stock. You can't have choice or speed without your choice and operating system. This ties back to developer efficiency. We want developers to be able to leverage their operating system of choice, were initially supporting full stack lifecycle management for a bun, too, with other operating systems like red hat to follow shortly. Lastly, all the way down at the bottom of stack is your choice in infrastructure choice and infrastructure is in our DNA. We have always promoted no locking and flexibility to run where needed initially were supporting open stock AWS and full life cycle management of bare metal. We also have a road map for VM Ware and other public cloud providers. We know there's no single solution for the unique and complex requirements our customers have. This is why we're doubling down on being the most open platform. We want you to truly make this your cloud. If done wrong, all this choice at speed could have been extremely complex. This is where cloud simplification comes in. We offer a simple and consistent as a service cloud experience, from installation to day to ops clusters Air created using a single pane of glass no matter where they're created, giving a simple and consistent interface. Clusters can be created on bare metal and private data centers and, of course, on public cloud applications will always have specific operating requirements. For example, data protection, security, cost efficiency edge or leveraging specific services on public infrastructure. Being able to create a cluster on the infrastructure that makes the most sense while maintaining a consistent experience is incredibly powerful to developers and operators. This helps developers move quick by being able to leverage the infra and services of their choice and operators by leveraging, available, compute with the most efficient and for available. Now that we have users self creating clusters, we need centralized management to support this increase in scale. Doc Enterprise Container cloud use is the single pane of glass for observe ability and management of all your clusters. We have day to ops covered to keep things simple and new. Moving fast from this single pane of glass, you can manage the full stack lifecycle of your clusters from the infra up, including Dr Enterprise, as well as the fully automated deployment and management of all components deployed through it. What I'm most excited about is Doc Enterprise Container Cloud as a service. What do I mean by as a service doctor? Enterprise continue. Cloud is fully self managed and continuously delivered. It is always up to date, always security patched, always available new features and capabilities pushed often and directly to you truly as a service experience anywhere you want, it run. Security is of utmost importance to Miranda's and our customers. Security can't be an afterthought, and it can't be added later with Doctor and a price continued cloud, we're maintaining our leadership and security. We're doing this by leveraging the proven security and Dr Enterprise. Dr. Enterprise has the best and the most complete security certifications and compliance, such as Stig Oscar, How and Phipps 1 $40 to thes security certifications allows us to run in the world's most secure locations. We are proud and honored to have some of the most security conscious customers in the world from all industries into. She's like insurance, finance, health care as well as public, federal and government agencies. With Dr Enterprise Container Cloud. We put security as our top concern, but importantly, we do it with speed. You can't move fast with security in the way so they solve this. We've added what we're calling invisible security security enabled by default and configured for you as part of the platform. Dr Price Container Cloud is multi tenant with granular are back throughout. In conjunction with Doc Enterprise, Docker Trusted Registry and Dr Content Trust. We have a complete end to end secured software supply chain Onley run the images that have gone through the appropriate channels that you have authorized to run on the most secure container engine in the >>industry. >>Lastly, I want to quickly touch on scale. Today. Cluster sprawl is a very real thing. There are test clusters, staging clusters and, of course, production clusters. There's also different availability zones, different business units and so on. There's clusters everywhere. These clusters are also running all over the place. We have customers running Doc Enterprise on premise there, embracing public cloud and not just one cloud that might also have some bare metal. So cloud sprawl is also a very real thing. All these clusters on all these clouds is a maintenance and observe ability. Nightmare. This is a huge friction point to scaling Dr Price. Container Cloud solves these issues, lets you scale quicker and more easily. Little recap. What's new. We've added multi cluster management. Deploy and attach all your clusters wherever they are. Multi cloud, including public private and bare metal. Deploy your clusters to any infra self service cluster creation. No more I T. Tickets to get resources. Incredible speed. Automated Full stack Lifecycle management, including Dr Enterprise Container, cloud itself as a service from the in for up centralized observe ability with a single pane of glass for your clusters, their health, your APs and most importantly to our existing doc enterprise customers. You can, of course, add your existing D clusters to Dr Enterprise Container Cloud and start leveraging the many benefits it offers immediately. So that's it. Thank you so much for attending today's keynote. This was very much just a high level introduction to our exciting release. There is so much more to learn about and try out. I hope you are as excited as I am to get started today with Doc Enterprise. Continue, Cloud, please attend the tutorial tracks up Next is Miska, with the world's most popular Kubernetes E Lens. Thanks again, and I hope you enjoy the rest of our conference.

>>live from Las Vegas. It's the Q covering AWS executive. Something brought to you by extension. >>Welcome back, everyone to the cubes. Live coverage of the ex Censure Executive Summit here at AWS. Reinvent I'm your host, Rebecca Knight. We have two guests for this segment. We have Satya Adric, Carl Adder Gala. Sorry, He is the VP single family technology at Fannie Mae. Thanks so much for coming on the show. Satya >>glad to be here. >>And we have Dave Baldwin, VP Architecture, Cloud Engineering at Fannie Mae. Thank you so much for coming on the show D thanks >>for having us. >>So we're talking today about transforming the mortgage industry through through the cloud. Fannie Mae is obviously a foundational part of the US home mortgage industry, and it's been around for a long time. But at a time right now, where there is just so much tremendous change going on in the industry, particularly with the emergence of fintech and other push button mortgage providers, talk a little bit about the last 3 to 5 years. In terms of the changes, you've seen two to the business. You want to start? >>Yeah, I will. So So when we look at the industry changes. What Fannie Mae does is mostly in the secondary market, so our core business hasn't changed from the point of taking the lone synchronizing and selling. However, in the mortgage industry, when we talk about the bar or experience and then the lenders how they have improved the experience across the board, I think is it has been a huge shift right three years ago. The discussion has bean always about Hey, can we do more reliably? Can we do more faster? Right? Those were the conversations, but now the expectations off our lenders and bottles have significantly increased. Right now, they're talking about user experience. How can we meet our bar or where they are, Right. So the lenders have got a lot of expectations on us in terms of how do you feel? Feel that that is the first biggest change in the realm off several of these, right? The 2nd 1 ese, the data has become the currency now, right? It has significantly improved our posture around finding about, um, their assets that income, their employment. Right. So you guys may have seen a lot off David surgeon. It is a product that we have launched in that well, so data revolution has been a big change. And then how we're utilizing that to serve Margaret's industry, our lenders and borrowers, thereby we also reduce the risk within the industry. Right? So those two have bean huge changes. Then there is a technology revolution in terms off AP eyes, Microsurgery says. How do I plug and play? How do we reduce my cost when I'm locking a bottle or two alone? Right. And these are the things that are lenders have bean pushing us on right? Reduced the cycle from somebody coming to the application to taking a loan, closing alone and delivering to Fannie Mae. Shrink the timeline and in doing it, reduce our costs. Right? So these are being like more and more expectations Have bean really set from the border for a few from the lender point of view on Fanny me and all our innovation. Our transformation is all about meeting them and also setting standard for them. What is great in this industry and that's that's what has been going on in the last 3 to 5 years. >>Yes, and that you just laid out a tremendous number of trends and all this disruptive change when you were trying to meet these new expectations from your lenders and your borrowers. Dave. What? What are the in making this journey to, from to to say, I'm sorry from to the Cloud, How are you thinking about these challenges ahead at a time where the user experience is so important? Data is currency and this technology revolution, >>well, it's a big change and, you know, and it's a change across people, process and technology. So if you think about it, what we've done is we've started to trade a new operating model, which really is a lot more engaging, and and it requires an uptick, a scale and really ah, a new way of working right. We've even gone as far as to introduce lean management in a tools and processes. But if you think about it, the people definitely have to change. If you think about it from a process point of view, you're you're really looking at reimagining the way some of the mortgage industry works right, because there's a lot of demand for it. At the end of the day, the customer expectations and especially If you go all the way to the borrower, the customer expectations is very different. You know, they're very they they don't understand unnecessarily why they would have to fill out all this paperwork, right? When don't you already have the information? And to sati is point about data. That's why it's so important to get that data together. Because if we can harness it right, then we can truly start to re imagine these processes and make it so much easier for a borrower nor a lender to work together and eventually work with us. So and then finally, you know, from a tech point of view with the introduction of the cloud, you know, that new foundational sort of technology that really gives you something to pivot off, you can really you can really start to take advantage of the micro service architectures and the new technical capabilities that can help make this really right. And so that's That's generally how we look at our digital transformation and and as you start to think about prioritization, how do I move those? How do I think about the applications that are going to change and how they're gonna neither either Transformer moved to the cloud. You really start to think of you know what business value and I'm trying to achieve 1st 2nd 3rd right? And then what applications won't make it, You know, they're gonna be completely redone. And what applications? Frankly, we're gonna have to move along with it to manage some of the dependencies we're going. >>So I think one more point I wanted and Rebecca is that when we look at this B to B businesses, they're very tightly integrated, right? Our companies have been integrated when we are extending out information explained, extending the responses in the past. Anybody talks about experience, right? It is about Hey, there will be there are technological glitches, but you don't want to impact big. That's used to be the norm. Not anymore. I think when we look at now one of the top customer slate, if you blink from the infrastructure layer point of view, there is business loss. People are not just looking for resiliency anymore. People are looking for fault tolerance, especially when it comes to the top to your customers. Right. So I think we can see the underpinning off cloud and also how we architect our applications to meet that kind of need. It's not just about being resilient anymore. Gotta be. You cannot lose a transaction. But I think those things have bean more and more that we're hearing from our customer base, and we feel like the cloud journey is going to be underpinning for these types of expectations from our customers. >>So how do you work with partners like Accenture in AWS? When you embark on this journey and think through the your business imperatives and think through your strategy, >>I think when when we think about our partnership's. First of all, there are a lot of partners that we have and that we've had for years, as we as we really not only do digital transformation, but you got to run the business, too, while you're doing this transformation. And so you know, when you think about it, the way the wake centers worked with us is you know they number one have helped us with a cloud strategy. So that's a very hard thing to Dio because you think about all the different personalities in your organization and all the people that you have to bring together. You know what Accenture helped us with. It is to really level, said everyone and get everybody on the same page in terms of, you know, where we want to go on how we wanna head on this journey. The second thing that they helped us with was really the program management. So that's a huge undertaking to write and given the fact that it's very different and these are new things that we're doing in our firm. It's good to have that external expertise that that sort of done it with other companies and they can bring that to bear with eight of us. You know, eight of us is is one of one of the major providers that we're using. Thio post a lot of our business applications, and if you think about that there, you know we're taking advantage of their technology. We're leveraging some of their pro serve professional service is thio, help us get it right and help us sort of not only with the implementation, but in some cases the governance and control frameworks that are highly regulated. Organization like ours needs So >>and I think if you think about this from the scale point of view, right? Everybody knows there is war for talent, right? We use our partners in terms of how can we scale these things that are new operating models? New technological? Because there is a change curl in bringing up the entire employees based without extent, These guys can be catalyst. In addition to that, they can be scaled provided us, right. I think that's how we can I use these, But it is action generator B s. >>This morning during Andy Jassy fireside chat, he talked a lot about the importance of innovation and experimentation and trying different things. How What's the experience of innovation at Fannie Mae? How do you innovate with partners or just thinking about all of the changed expectations? How do you make sure you are trying to solve the right problems? Describe your process creative process >>again, I think, um, when we I think about this innovation process and how we do water in Fannie Mae right three years ago, it is about Hey, how do we get our employee base to think about the possibilities right on Veran bunch of hackathons innovation days so that you get excitement from the teams, but in the last one and 1/2 year. It's more about innovation that can reap benefits, right? So we call it as focused innovation. We have, ah, clear cut Enterprise Innovation team. And they're on some of these innovation days and whatever have you within the within the firm so that you get the ideas and we have a process called pitch. So all these ideas feeding to lack of a better time a funnel where we have this enterprise innovation groups actually scan through the I. D. S and then can identify what things we can use and where we want to put our innovation investments. Right. So there is, ah, set off funnel requirements and gates we go through to identify Hey, this is where we want to do. And how we do is that Fanny Me is a lot more design thinking shop, right? So customer is at the center of everything. So anything we do, we will have some sort of research first, right with the customers and then how that might push the needle such that it can reach different boundaries through innovation. Right? So our processes cultivated ideas from inside. Also, look at what is happening with the trends. We have a strong strategy group. They're gonna look at this and our innovation team is always on the hunt for Hey, what is happening in industry in the cutting edge, How do you bring these three dimensions and then come up with a bunch of ideas? And then we have a funnel process where we identified what moves? What's this? What stays? Because there are other things that are at play. Is this innovation ready for the market? Now? Does it have to wait that sort of There are so many dimensions that going to that. But we have a structure process, and we have AH, dedicated team who can manage is that yet uses the creativity of the employees to be able to participate in animation. I mean, that's how we have a wall this process from. Think of the possibilities, too focused innovation. >>I think there's one extra point as well, like when it comes to technology side of that, it's it's creating a safe place for people to experiment, right, So we have a sandbox, the environment that we've created, an Amazon there in eight of us, and what we're doing is we're actually releasing some of the controls. I mean, obviously there's security and compliance, but released some of the controls and and just put a few guard rails in place so that people can experiment safely and not impact our firm, you know, in a very negative way. So >>talk about your employees and how they received this, this major transformation, and how are you receiving feedback in terms of their productivity in their engagement with the process? Dave. >>So you know, I would say this. There are lots of different types of employees, right? And like I said earlier, we also have as we're building the new, we also have to continue to support what we're running. So So what we've done is we've actually rolled out on South. We'll talk about it more detail because his team rolled it out. But, you know, but we have rolled out some training. You know, we've created a change management process, an organization right. Working with our human resource is so that we can up left, you know, sort of skills. And that's what I think. What's important is you're not going to be able to find the people out there to do everything that you need to do right. What's really important is creating those opportunities to carry the people that you have in your organization along with you for the journey as they learn you benefit right as an organization. So but salty should talk about some >>of the training. Yeah, so I take your question in two parts one. Is that how the employee base is taking the message of this district transformation or don't have right again? We have a compelling vision and mission like people that fanny man, they what? They take pride in fulfilling the mission. That's that's the 1st 1 along the way, when we crafted our message around why we're doing this. That is a lot more compelling. It is meaningful for our customers, our employees, right? So I think the messaging has been very important. Then, when you look at the things that we're trying to do, our cutting edge right from the employee point, if you it is a lot of excitement, because that keeps them at the cutting edge of what is happening in the world that makes them more marketable, right? Naturally, people are excited about it, but like any transformation, right? There will be camps off who will come across the change car up front like they're catalyst. Right? And then there are some in the middle and summer can a lagging right? But when we look at the entire gambit off the employee base, majority off them are. Hey, we are on board with this. We want to do it. We want to learn, How do we get there? And the company has done several different things to help the employees through this kind of knowledge cover I would call rather than the change career. We have a whole bunch of training plans that we have laid out. People have been wall until early taking. I mean, maybe a classroom training, maybe a self, sir. Uh, type off, download this particular module and then kind of read upon it and then also provide them to practice them with the sandbox. Right? So all these things have been done. I think one challenge we had actually facing now is that we can train them up pretty easily if we haven't put them in a place to practice it. Then it kind of fades away. So we're now kind of trying to see. Okay, let's identify groups off people. Give them a tool where they can assess for them their own self. What I wanted to learn such that I can become that and then be eligible for doing that right so that now they learn. And then they're put in a role on a project that they can actually practice on. So we are in that posture of that right now. So I think, but employee base is really excited about this, >>So I want to. I want to end where we started where Sati described the myriad changes that are taking place in your industry and getting back to your your cause, which is helping the customer buy a home, get it, get it, get it more easily, qualify for a loan. Can you think about the customer experience of the home buying process 3 to 5 10 years from now? And how it will be different as Fannie Mae embarks on this on this cloud journey. Do you want to start David? Just think. Look into your crystal ball >>and it's great. I wish I had a crystal ball. That would be great, but but you know. Look, we're making significant advancements, you know, working, working with our customers, taking that customer first mentality. And, ah, and and, you know, the mortgage industry itself is right for a change. I mean, you know, and and we're in a good position to really help and drive a lot of that. So my expectation, if I were to look out, I would expect to see a world where you know that borrower experience gets a lot better. I mean, one of the things we've learned to our research is that you know what is it? 40% of people actually cry as they're going through the mortgage experience, >>and they're not tears of joy. No, it's actually, you >>know, tougher to get into a tougher to think through the mortgage process, you know, and really take that big leap than it is to, you know, our Cielo tells us all the time than it is to actually apply for college. It z, it's often on bigger life event our goal. How do we make that simpler? How do we make people have a much more pleasant experience? Right? Waken do that with our data. We can make sure that they don't have to fill out those amazing forms. Heck, find the information. Sometimes they don't have it. You know, we're in a better position, right? You know, really? Get Teoh. You know, I can't promise a single click experience, but we're all gonna try to aspire to that, because that's what the customers out there with their cell phones and their technology or used to right. So we've got to get at least somewhere close to being there. >>So in the bottle, it expedient sight. I think we can even now see one tap market. How do we get them right? I think that's probably not too far. It's probably within two or three years. That's if I were to think about that. But if you want to think about 5 to 6 years, 10 years, if I am an individual driving by a home and then take your phone and say, Hey, can I buy this home? That should be able to tell you this is your lender and then go. That's right. And again from Fannie Mae, a point if you re help the lenders and they helped the borrowers threat. So through this transformation, what we're doing is that set up an engine that can be nimble, that can move fast. That runs with the low investment so that if we were to pivot, do things testing, learn and then change your game. We are fully in the position to be able to do that, right So and however fast, fast, you can experiment, those many different ideas will come out, and then some of them will reap fruit. And all of these for two things, like for our customers. How do we benefit our company, Fannie Mae? And how do we move the needle in industry? I think these are the three things that we want to achieve through this transformation. And we're building an engine to be able to do those types of things. I wish I could say this is one thing we would do. That's not what we're trying to do. Being a position where we can move quickly, we can lead industry. We can set the standard and then make good for the good for the American house. So that's all stories. >>Exciting times. Thank you so much. Both for coming on the Cube. Satti on Dave. Thank you. I'm Rebecca night. Stay tuned for more of the cubes. Live coverage of the Ex Censure Executive Summit coming up in just a little bit.

>>Hi, I'm Peter Burress. And welcome to another cute conversation. This one from BMC Helix is immersion days in Santa Clara Marriott in Santa Clara, California One of the biggest challenges that every IittIe organization faces. In fact, every business is how to start merging greater control through I t sm as well as greater change and evolve ability of systems through Dev ops. It's a big topic. A lot of folks looking at how best to do it. We've got a great person here to talk to us about it. Dick Stark is the president CEO of right star Dick. Welcome to the Cube. >>Well, thanks very much for having me. I really appreciate the opportunity beyond the Cube here. >>Excellent. Well, why don't we start? Tell us a little about right start? >>Sure. Right. Stars in I t sm consultancy and we happen to be a dev Ops consulted to say at the same time, we're also a BMC solution provider and lasting solution provider. Now, we've been a BMC solution provider for for 16 years, so we've been in this space a long time and we've earned several accolades up along the way. We made it into the Forrester I t s m service provider. It's not called a Magic Quadrant because that's what God gardener uses. But instead it's a wave report. And so we made it sort of into the far right hand quadrant there. And if you added up all the points we ended up in North America being rated number five out of all the different idea Sam Consultancy. So it's very proud about that. And then last year with BMC, we were the North American Solution provider of the year in the D S. M space. >>Well is an export person, I can tell you Congratulations. Those waves very seriously. Let's jump into this question, though off what does I t. S m from a technology and people in process standpoint have to do to accommodate some of the changes that are being founded and defusing out of the Hole Dev Ops world, which is just having an enormous impact on our I t thinks and does >>it really has. And you know, we've been in the space a long time and I t s m Sometimes I tell the words are interchangeable and there are about if you can believe this about three million people That ended up getting an Idol certification of some short like an Idol Foundation certificate. And over time, that's been have been a really a big, big deal. However, Idol now is lost, its luster just a little bit. And it's allowed Dev ops to sort of sneak in or add dollar whatever you won't want to call it, and I'd listen. Standing still, though, they've bounced back and bounce back in a hard way. And they've they've come up with what's now called Idle for an Idol For was just released this this year, and it takes some of those Dev ops principles, and it has its own value stream as well and is a result Idle for or agile idol or whatever you wanna call it now is taking a little bit stronger position. And when I say Dev ops principles, it's things like Collaborate. It's things like promote, it's It's things like operate and automate. It's It's It's all about it again. It's all about collaboration in some of these other values that that you'll see in Dev ops. I guess what what happened is we spent a lot of time on the Idol side of things, and we did things for process sake and a good example would be changed management and spent a lot of time putting together is change management processes per this idol framework. Okay, And what what happened is that a lot of the users then rebelled a little bit because it might take longer to go through and fill out all the paperwork of It's not paperwork the online tool set then to do a change than to actually perform the change itself. So I don't got a little bit of a bad rap. And so that's where this whole Dev ops thing has come in. And the whole idea right now is to get Dev and Ops under the Shame umbrella, because that's not typically very used to do. But it's, but it's certainly happening. >>Well, let's talk about why that intersections happening, right? So I'm gonna I'm gonna show a little bit of history from my perspective as well, you know, I told began, First of all, it started in some government agencies many years ago, but it started as the basis of it was How do we take better care of the assets with an I T. Which at the time were mainly hardware. In many respects, what we've seen happen over the last 25 30 years that Idol has been an extent. Is that the nature of the assets that I t recognizes? His acknowledges delivering value for the business has changed. We've gone from hardware to infrastructure is code. That's where Dev Ops is so many respects. What you're saying is that Iittle is now trying to bring the best of what it means to do a good job of asset management with a new class of assets. Namely, software is code infrastructures code, and that's where we have to have that marriage. I got that right. >>That's that's correct. And you don't want to have silent silos. You want to be a silo buster if if anything else. And I just wanted to mention something else that I think is kind of fun along with this Idol. Four. We now do what's called the Mars Lander simulation traded it replaced. If you've heard of the Apollo 13 simulation, will Mars four, even though it's idle for specific, it's really all about Dev ops, and I took the Mars board just about a month or so ago, and it's a lot of fun. You sit down and the whole objective is to get get to Mars and you're a business. So and you're going to be selling the data that you're going to collect along along the way. And so the whole idea is to is to make a profit, and you have all these different roles that you play. When I went through it, I was the release manager then. But you might have a business analyst. You might have a service desk person. You have vendors and a it's it's really it's very realistic that and typically like a lot of large enterprises, you start playing the game and it's just chaos, and you have to go back and try this over and over again until essentially you get it right. And I was surprised how easy it is to get sucked in. If you're in a big enterprise, your silent, you have a specific role that you have to d'oh and you have instructions how you're supposed to do that and you want to stick to it. Whatever you know, whatever your assignment is, you have to do that. But that's not the right thing to Dio. Remember, it's about collaboration. It's about transparency. It's been it's about posting your goals, posting the results and moving forward from from there. And so I was surprised how I got sucked into it. And so I can understand why we need to make some progress in this space. And it's all about getting people to change their behavior a little bit in some of these new tool set certainly help >>well, as well. You're going back to what you said. He used to be the three R's of any regime or rolls responsibilities and relationships, and so the roles have are evolving. But often it's just in name only the responsibilities. You know today it's still code. It still has to run on hard, where it's not a bunch of hamsters, they're doing things. But as you said, it's really the relationships amongst the various actors as we introduce more business people. As technology gets put into position to generate more revenue or to do more with customer experience, the relationships are being pressured, are being really pushed to evolve. So how do you see in your practice in right stars practice. How do you see the relationships between Dev ops and I T s M and the business starting to evolve so that you can have amore coherent, comprehensive view of how you make sister? Well, >>I think in that particular case, it's gonna take some time. I mean, it's not gonna happen overnight. I mean, that's why you have agile coaches, or that's while you have the scales agile, or the safe framework is because people don't get it. And they need to understand how to work together better with others. And so it's not gonna happen by just implementing a new new tool set turning the key and then say, OK, everything's gonna be fine. It's good to get the integration between the different tool sets. And the technology is certainly there to do that. But without having some instruction to begin with and having the door in users cooperate. You're not going to see that kind of kind of performance improvement or cost statements or whatever it is that you're looking for. You're not going to see that >>they're one of the biggest challenges in any changes. Abandonment. The user's ultimately abandoned. So as you look a tte. The ideas M tool set that you're utilizing mainly from being right is it is that there's a degree of there's always a degree of pedagogic tool away, it says. Here's how you should do things. What you're discovering is that tool set is really catalyzing. Helping to catalyze positive changes in your mind within a lot of your customer base is, well, the >>thing about Helix, and I'm very excited about this because we're making a lot of good progress with. He likes our customer base that we have right now and give you a good example. George Washing University were based in a D C. Area day. If they are, too, they've been a long time remedy customer. We've moved them to Helix, and then, just recently, when I say recently started a year ago in August, they moved to the BMC Chap Cat box platform. Then, this past August, they totally went cold turkey with chatbots throughout the entire university. That makes a tremendous difference in the performance and not just performance, but also on the cost and the efficiency that the university, particularly from a service management perspective, is providing to its university employees and to its students, just like you mentioned today in the keynote session that it's all about mobility. And practically practically all the students there rely on their their cellphone day in and day out. And so when they have a question at G W. If it's how do I get a new account? How do I get a park parking permit? G on the wireless in my dorm room isn't working. You don't pick up the phone and call. Nobody does that you texted at. And this is a chap off its power by IBM Watson, and it works great. And there's lots of good things that are gonna come out of that. For example, students, I think they probably still have to turn paper sent. You know, maybe that's all Elektronik Lee delivered, but I think you might still have to print out a paper and turn it into your professor. You know, I'm not sure, but bluebirds Anyway, you're probably you're probably gonna do this late at night when the service desk is an open. So what do you do if you can't get the printer to work? Well, you pick up your cell phone, you text in that That the issue and bingo. You've got a response. So those are the sorts of things that are gonna make for a tremendous amount of impact, and it's gonna cause people to change their behavior in really a good way. Another good example. We have another longtime hospital customer. They have a 24 by seven service desk. They're huge, and they pay a lot of money to operate that 24 by seven. But they hardly get any call said at night. Right? Because not that many people work. So why don't they just turn that and you start using chatbots and think of that the r A. Y. It's just incredible. And I think you're going to see more. And that more situations like that as we move forward. >>Dick start President CEO of right Starr. Yep. Thanks very much for being too. >>Thanks very much. Appreciate it. Okay. >>And what's going on? Peter Burress. You've been watching other cube conversation from BMC Helix immersion days in Santa Clara. Thanks very much. Next time

>> live from San Francisco, celebrating 10 years of high tech coverage. It's the Cube covering Veum World 2019. Brought to you by IBM Wear and its ecosystem partners. >> Welcome to our live coverage here in Mosconi North Lobby, Of'em World 2019. I'm John for a Student and a Volante celebrating our 10th VM World or 10 years of covering the M world. Dave's stew. What a run been Go back across Mosconi South 10 years ago with the green set. This is 10 years later. 10:10 p.m. World BMC Rule No longer the show, so that kind of folds in the Dell Technologies Man, The world's changed. Pat Nelson had just delivered his keynote as CEO Sanjay Poon and a CEO came on talk to customers stew. A lot of acquisitions, a lot of cloud native, a lot of cloud. 2.0, this is turning into VM. Wear 2.0, where vm zehr kind of only one part of the equation. So let's jump into the analysis, Dave. I mean, you put out some killer research on silken angle dot com, and we keep on dot com around customer spend still, we put out a lot of analysis on all the key trends that Vienna was playing into. Cloud two point. Oh, is what we're calling it. It's enterprise Cloud of fresh scale Day. What? What? What? What do you want? Your analysis, Latino >> John, when you go back. 10 VM Worlds ago, it was all about virtualization, completely changing the deployment dynamics. When when I first saw a VM deployed, I went, Oh, my God, This is gonna change everything. And it did. But while compared to now what's happening with cloud and a I we heard so much about five g. It was also the big, big difference in the ecosystem. Back when e. M. C owned VM wearing 2010 there was that sort of Chinese wall stew. You were working there, you know, just before that. And there wasn't a lot of, you know, swapping of I P, if you will. They were sort of treating them as unequal player to net app and everybody else out there. Tod Nielsen used to say, for every dollar spent on of'em were licensed, 15 spent an ecosystem. You don't hear that kind of narrative anymore, you hear we're crushing the HC. I vendor where number one basically a sort of backhand to Nutanix We heard on the on the keynote Very tight integration VX rail project Dimension So much, much tighter integration since Pat Tell Singer joined VM. Where from the emcee lots has changed >> will be a lot of research on reporting leading up to the show around Cloud two point. Oh, I'll see Dev. Ops is willing to home of the dimension on enterprise scale, the number of acquisitions of'em wears made and then, boom. They dropped two monsters on the table or the 11th hour pivotal for 2.7 billion carbon black for 2.1 billion. Lot of stories in those AK was other acquisitions, your analysis and how that played out today on the >> Kino. As Dave said when we started coming to this event back in 2010 you know, the virtual machine was the center of the universe. What were these servers that it lived on, how to storage and network and get fixed to be ableto live in that environment And the keynote. It was a lot of cloud, you know, John, we brought in a lot of the Cloud camp people that first year and some people were like, Why are we talking about Cloud? This is VM World, and we're like, Well, this is the future. And today we're not talking about V EMS at the center we're talking about containers were talking about cloud native applications, that multi cloud world absolutely something that pack l singer did. Front center actually felt it almost glossed over a little bit of the H C, I and NSX and all these wonderful things. Sure, there was some big del pieces in there. The M word cloud on Delhi emcee the Del Di are, you know, data protection, power protect, you know, into the VM where peace something that you definitely would not have seen under the old emcee Federation model. So Michael Dell, absolutely having his strong footprint here. Dave's done a lot of analysis talking about things like Pivotal getting pulled in and like so many different acquisitions, Pivotal came out of'em wear and, you know, carbon black Boston based companies so many different pieces here to get them talking about applications and where Veum, where the company sits in this multi cloud world where they're trying to be, you know, maintain their relationship with us. >> Let's get into the analysis on the whole ecosystems. I really want to dig into the work. Dave, you didn't and the team did. But let's go through the keynote first. So my personal opinion was it felt like, um, I'll give him a C plus Pat because it just didn't have a lot of meat. In my opinion, it felt like it was too much tech for good, although super important to have that mission driven stuff I think is really valuable as the market tends to look >> at tech >> as bad actors. I thought that was addressing. That was a positive thing, but it felt too much. I didn't see a lot of specifics. It felt do is and David, if they were hiding something, they were putting a lot of it didn't seem like there's a lot of substance coming out specifically around how Kubernetes was going to be impacted. Specifically, how Cooper is going to sit within the VM where ecosystem products specifically I just didn't feel like the product side was there. >> Well, you know what? I'll say it, John and General, I agree with you because Day one usually is here is the company vision. And if the vision is kubernetes, well, we've been hearing kubernetes for a bunch of years. Kubernetes is not the answer. Kubernetes is an enable ionizing technology job. Ada, who we up on stage? You know, we had him on the Cuban. He's like, look committed. This is not a magic layer. It's this thin layer that's gonna help us go between clouds. Getting into some of their future projects is something I usually would expect on Day two, the vision of V. M. Whereas a company, it feels like we're in that transition from who do you want a big tech for? Good? That that's great stuff. You know, Pat has a long history of talking about, you know, that moral compass that he has and wants the company to live. That which is a good change from many of the Silicon Valley companies. But, you know, I didn't get a strong feel for their vision and it was not >> a conservative. They didn't want to actually put a position down there because I think everyone in the hallway that I talked to wants to know how Cooper is gonna impact the sphere for instance, is gonna change the makeup of the sphere. And what's the impact on the product side the head that stat about bare metal being 8%. I was like, a little bit biased. Maybe there, So are they. They tiptoeing. Dave, you think? I mean, the spend numbers show that if you could just hold the line for 24 months and the new trends won't take away from that license, I mean, is it a tactical thing? Or do you think that here's the >> thing? I want to go back? I do want to give'em where? Props on one thing and you've used this term to If you go back to 8 4009 Paul Maritz talked about. We're building the software mainframe and passed them pretty consistent about that they used, they said, Any workload, any app? What's different today than back then is, he said, any workload, any up any cloud. Really. Cloud wasn't as much of a factor back then, but that vision has been fairly consistent it to you. Answer your question, Veum. We're spending remains strong, you know they're spending data that we shared with the GT R on silicon angle yesterday and today is that 41% of the VM were installed. Base is going to spend Maurine the second half of 2019 and only 7% are going to spend less. Okay, that's a real positive. But at the same time, the data clearly shows that cloud is negatively impacting VM wear spend and so that's a real threat. So multi club Pat said today technologists who Master Master Multi Cloud will own the next decade. He's talking to his audience. I'm not sure I agree with that. How much you're mastering Multi Cloud is what's gonna be the determining factor to own the next decade. >> Well, I'm stumped. Stick with my position. That multi cloud is not a reality. I think it's really more overhyped, and our actually just started to be hyped and probably will be then over hypes. And then seven years from now we'll start seeing multiple clouds truly interoperable. But I think multi cloud is we find on the Cuba simply enterprises have multiple vendors and multiple environments that happen to be those vendors have cloud, so I don't think it actually is an operating model yet. But again, just like on the Cube 2012 stew. We talked about hybrid Cloud. I called. I asked, yes. When was it a halfway house of the weigh station? He had a connection. >> So gassy. So, John, here's what I say. Number one is customers today absolutely have multiple clouds. But for multi cloud, to be a reality multi cloud must be greater than the sum of just the piece is that it's made up today and absolutely were not there. Today. VM wear has a strong reason why it should be at the center of that discussion. But they're gonna be right at loggerheads with Red Hat and Microsoft and Google and Cisco in that kind of debate at the multi cloud >> and we had, we had a story on our special report on silicon angle dot com. Check it out. It's called Coping With Multi Cloud. Were coping was by design. Coping as a mechanism used to deal with uncertainty. Coping strategies is what CEOs are going to deal with. But read that post. But in it I kind of see. I mean, I kind of agree and disagree. We have two perspectives, Dave developing. You want to get your thoughts butts do on this C I ose that come from a traditional I t background tend to like multi vendor things because they know they don't want lock. And they're afraid if you then swing to the progressive side si SOS, for instance, who are have a gun to their head in terms of security, they're all saying no, we're betting on one cloud and we'll have backup clouds, but our development staff is gonna build stacks. Have AP eyes, and we'll share those AP ice to our suppliers. Cloud vendors are saying Support our specs. So to spectrums the old school I t. Guys saying Multi vendor equals multi cloud. And then then, on the other end, See says to say, I'm gonna build technology and build a stack, exposed FBI's and let the clouds support my my tooling that not the other way around your thoughts. I >> pulled a quote in my piece That's on Silicon angle as well. From David. If lawyer and he was defining a hybrid multi cloud, he said, any application of application service can run on any note of the hybrid cloud without rewriting re compiling a re testing. My argument would be you're never gonna have that North Star without a high degree of homogeneity. And there's three examples of high degrees of homogeneity in hybrid Cloud. Today it's azure stack. It's clouded customer, and it's outposts. You're so this idea that we're gonna have this diverse set of clouds and yet they're all gonna run is one to me. I ask, Is it technically feasible? And is it Is it practical? >> Well, Steve, Steve Harry was on his Hey had announced the signal. FX has come. Portfolio can be sold on a big deal to split when he was on The Cube with me last week and he said one of them looking back on the 10 years that 1 may be M where great was virtual ization allowed for massive efficiencies and improvements without rewriting the apse. The question today's point is, is that a reality? Can what's next? So that that next gain that's not gonna require people to rewrite their APs >> well and that actually not rewriting the axes where VM or has its strength. Because, you know, I I made a joke during the keynote. It was like you have a V M insert magic. Congratulations. You now have a cloud workload because I just did. VM were cloud and it's the same app. But on the other hand, that's actually been my biggest dig on V M. Where is the long pole? In the tent and modernization is modernizing wraps. And that is that Tom Zoo that Veum were announced. They're taking bit Nami and pivotal because we do need to modernize the application. If you have an application, you've been running long enough that your users are complaining about it. We need to modernize that. VM wear has not been much of enabler of that pivotal. Yes, absolutely. That's what the cloud Foundry Labs, the pivotal Labs has been doing for years. It is a tough thing to do. That's what the developers we hear it Amazon. They're building new abs. I don't hear modern building new app at VM where, but they are moving in that >> direct question for you guys and John you in particular, but also used to as well followed AWS probably more closely than any two people I know, Pat said. Strength, lies and differences, not similarities. I've noted many differences in philosophy between A. W S and V M. where they're both winning in the market place. We know a divorce is growing much faster, but a divorce doesn't believe in multi cloud. A Devil's doesn't believe security is broken. That's that's VM wears narrative VM where says it wants to be the best infrastructure and develop our software company. That's kind of like eight of us is the platform for that. They both want to be the security cloud, and and VM were said today they have 10,000 cloud data centers, and I'm guessing that Andy Jassy wouldn't think that many of those data centers are cloud data centers. Your thoughts on the differences between between A. W S s philosophy and VM wears narrative. And can they both? Is there enough market for them both to win? >> Well, it's strikingly different. I mean, AWS is just in a breed of its own. VM wears hedging and playing there their bets. They're kind of putting, you know, bets on each horse, right? Interesting enough in the cloud thing. There was no mention of Google Cloud. I didn't see that mentioned there. Andi was speculation. Wouldn't Oracle be great partnering with Google? That's not a rumor. I'm just kind of put it out there. That would be a good combination partnership, given the Oracle's cloud is failing miserably, I think v M. Where because of the operating leverage in the enterprise, has that operational layer down to me, Amazon is the model, the future, because they are clearly born with a dev ops mindset. They have an environment where developers can build applications and they could operate. It scale with all the efficiencies of operations. So I think cloud to foreigners were calling. It is all about having developers and operational excellence without a lot of disruption or re platforming. So I think that's where the differences are. You have company that have toe have to work with this world of legacy applications, and that requires first lift and shift, which doesn't become attractive. Then you add containers on the game changes. So I think container ization really was, I think, the seminal moment in the shift where where you got kubernetes and containers. So let the enterprise cloud. Native guys get in and have an operational framework that takes advantage of the horsepower of public cloud, which is computing storage, which is why we think networking and security will be the absolute focus areas for Cloud two point. Oh, and Amazon is just dominating the depth and the ops. And I don't think anyone is coming close. >> I'd love to hear your thoughts, too, but I just got caught. I don't think Oracles Cloud is failing miserably. I think it's I wouldn't say it that way. I think their infrastructures of service is irrelevant and the cloud is all about SAS. But just, you know, that's what I think. Waken debate that somebody >> has been great for the Oracle customers. But in terms of all metrics in terms of public and enterprise, cloud with multiple environments nonstarter. >> So there's a bit of a schism out there if you talk to customers. There are many customers when they deploy in Public Cloud, although uses, you know, compute storage and, like the identity management and that's it. And they'll stop and I talkto you con many customers that are using kubernetes so that if they want to hit the eject button, but they're all on Amazon today, so it's not like they're all fleeing Amazon or doing it. But we talked to lots of developers that are deep in aws they're using those service is they're using Lambda and they're building it. So how deep will they go? And that's where I look at this VM we're offering. And it's if I'm gonna take the sphere and extend that with kubernetes. I saw Cuba. Well, um, actually in the Twitter stream said it is, you know, cloud lock in to Dato is what we get if we do that. Because the whole reason VM were originally created called Foundry. So they didn't have to take that entire V's fear colonel and put it everywhere. So it's a nice bridge. That van, where has the partnership they have with AWS is a great strategy. But I still think it is a bridge to an ultimate solution where they'll still use the M where the embers not going anyway. But that shift of where my application live in what service is I do is going to change a lot over the next 3 to 5. >> Let's not lose sight, Dave, of where we are in the industry. I mean, we're at VM World 2019. We go to reinvents coming up. We kind of live in a tech bubble in the sense that all this stuff is all kind of great skating to where the puck is gonna be. But the reality is in most I tea shops, and again, I use ceases as a proxy in my mind, because they're in the cutting edge of all the real critical nature of security, of the impact that harm that could happen to a company. So I look at sea. So she's more of a canary in the coal mine for trends than the nutritional CEO. At this point, most enterprises are just trying to rationalize kubernetes, generally speaking like never mind, like making a centerpiece of their entire architecture. They're looking at their existing environment saying, Hey, I got V EMS that did great for me. Serve a consolidation enabled more efficiency, not rewriting code. Now what? I gotta do kubernetes and do all this other stuff. How do I suspect my VM with kubernetes? Is it on bare metal? So I think we're way ahead right now. In the narrative, I think the reality is that people catch up. That's where the proof is gonna come into. That's why the customer survey numbers are interesting. >> Keep keep. Townsend is set on the Cube VM, where moves at the speed of the CEO, so they're not moving too far ahead of them, but they are key heating up with them. >> Let me share some data to share some data so you could go to Silicon Angle. Look at the V M World 2019 90 spending survey containers, Cloud NSX and pivotal its data from Enterprise Technology Research that we analyzed. There's no evidence right now that Container's air hurting VM wear. But then that was the narrative that containers are gonna kill the M where but long term. There's real threats there. So that's what the pivotal acquisition, at least in part was about. I want to address the pivotal acquisition cause we haven't dug into it a little bit a cz, Much as I'd like to see. There's really three things there. One pivotal was struggling. You look at the stock price, you look at their buying patterns, you know the stock was down that not even close to their original AIPO price, so they wanted to get out of the public eye right now would not be on that 30 day shot clock. The second is it's a hedge on containers. And the third is it's a financial scheme. I mean, I'll call it that VM wears paying $800 million in cash for an asset that's worth $4 billion. How can that be? Well, they already owned 15% of pivotal there. Give. They're exchanging stock. So their trade trading paper to Adele in exchange for Dell's 70% ownership in Pivotal. So they pick up this asset, and it's basically a forced migration by Michael Del, who controls 96% of the voting shares. So there's all kinds of inside nuance going on there that nobody's really talked about it a >> great deal for Of'em. Where and Michael Dell? It's >> a very good deal for VM wear and Michael Dell. >> Let's unpack that are rapidly. >> Just did the one piece on that, right, because kubernetes it was the elephant, the room that was damaging what Pivotal was doing. VM were made a couple of acquisitions VM where needs to react at, so it made sense to pull out back in. Even if it does go against some of the original mission, that Cloud Foundry and Pivotal had to be able to be that cloud native without that full strong time, >> it's all about building apse, right? It's all about enabling developers. >> Let's on that note. Let's go around the horn and talk about what we expect from the emerald this year. And then we'll kick off three days of wall to wall coverage. I'll start, I expect. And I'm not looking for is how VM wear and its ecosystem and who's really deep in the ecosystem, who's kind of independent and neutral, what they're doing with their containers and kubernetes play. Because I think the container revolution that was started with Dr Absolutely is very relevant to the C i o and the Sea. So so and then how they're using data in that in their applications. So you know how VM Way wants to position themselves on the control plane, how that fits in the NSX. I think containers in the container ization is going to change. I think bare metal is gonna be a super important topic in the next couple of years. Dio I'm kind of swinging back to the my feeling that you know, hyper convergence what it did for server storage networking back when you were calling those those moves. I think that kind of hyper convergence mentality is coming up the stack, and I think Containers and the Kubernetes Chess Board will will play out. >> I think if you my feelings, if you don't own a public cloud, you better convince your customers in your ecosystem that the future is in our definition of cloud, which is multi cloud. And that's what this VM world to me is all about. >> Yeah, you know, Veum wears taking their software state and trying to live in all of those cloud world. So you know, V. Amar has 600,000 customers and they want to be the ones to educate them on the kubernetes containers. You know you're at modernization, but there's a lot of other places customers can learn about this. No one understand where VM wear really adds value beyond all of those pieces, because all the cloud platforms have their kubernetes. >> A lot of other places, like the public cloud. That's where all the action >> exactly comes back down the cloud 2.0 Dev and ops developers and operations all come together with software. Thank you. Breaking it down here for three days. Wall to wall coverage here in Moscow north to set celebrating our 10th year covering VM World. Thanks for watching stay with us from or action after this short break.

>> from Cambridge, Massachusetts. It's the Cube covering M I T. Chief data officer and information quality Symposium 2019. Brought to you by Silicon Angle Media. >> Welcome back to M I. T. In Cambridge, Massachusetts. Everybody. You're watching the cube. The leader in live tech coverage. This is M I t CDO I Q the chief data officer and information quality conference. Someday Volonte with my co host, Paul Galen. Professor Dr Stewart, Mad Nick is here. Longtime Cube alum. Ah, long time professor at M i. T soon to be retired, but we're really grateful that you're taking your time toe. Come on. The Cube is great to see you again. >> It's great to see you again. It's been a long time. She worked together and I really appreciate the opportunity to share our spirits. Hear our mighty with your audience. Well, it's really been fun >> to watch this conference evolved were full and it's really amazing. We have to move to a new venue >> next year. I >> understand. And data we talk about the date explosion all the time, But one of the areas that you're focused on and you're gonna talk about today is his ethics and privacy and data causes so many concerns in those two areas. But so give us the highlight of what you're gonna discuss with the audience today. We'll get into >> one of things that makes it so challenging. It is. Data has so many implications. Tow it. And that's why the issue of ethics is so hard to get people to reach agreement on it. We're talking people regarding medicine and the idea big data and a I so know, to be able to really identify causes you need mass amounts of data. That means more data has to be made available as long as it's Elsa data, not mine. Well, not my backyard. If he really So you have this issue where on the one hand, people are concerned about sharing the data. On the other hand, there's so many valuable things would gain by sharing data and getting people to reach agreement is a challenge. Well, one of things >> I wanted to explore with you is how things have changed you back in the day very familiar with Paul you as well with Microsoft, Department of Justice, justice, FTC issues regarding Microsoft. And it wasn't so much around data was really around browsers and bundling things today. But today you see Facebook and Google Amazon coming under fire, and it's largely data related. Listen, Liz Warren, last night again break up big tech your thoughts on similarities and differences between sort of the monopolies of yesterday and the data monopolies of today Should they be broken up? What do you thought? So >> let me broaden the issue a little bit more from Maryland, and I don't know how the demographics of the audience. But I often refer to the characteristics that millennials the millennials in general. I ask my students this question here. Now, how many of you have a Facebook account in almost every class? Facebook. You realize you've given away a lot of nation about yourself. It it doesn't really occurred to them. That may be an issue. I was told by someone that in some countries, Facebook is very popular. That's how they cordoned the kidnappings of teenagers from rich families. They track them. They know they're going to go to this basketball game of the soccer match. You know exactly what I'm going after it. That's the perfect spot to kidnap them, so I don't know whether students think about the fact that when they're putting things on Facebook than making so much of their life at risk. On the other hand, it makes their life richer, more enjoyable. And so that's why these things are so challenging now, getting back to the issue of the break up of the big tech companies. One of the big challenges there is that in order to do the great things that big data has been doing and the things that a I promises do you need lots of data. Having organizations that can gather it all together in a relatively systematic and consistent manner is so valuable breaking up the tech companies. And there's some reasons why people want to do that, but also interferes with that benefit. And that's why I think it's gonna be looked at real Kim, please, to see not only what game maybe maybe breaking up also what losses of disadvantages we're creating >> for ourselves so example might be, perhaps it makes United States less competitive. Visa VI China, in the area of machine intelligence, is one example. The flip side of that is, you know Facebook has every incentive to appropriate our data to sell ads. So it's not an easy, you know, equation. >> Well, even ads are a funny situation for some people having a product called to your attention that something actually really want. But you never knew it before could be viewed as a feature, right? So, you know, in some case of the ads, could be viewed as a feature by some people. And, of course, a bit of intrusion by other people. Well, sometimes we use the search. Google, right? Looking >> for the ad on the side. No longer. It's all ads. You know >> it. I wonder if you see public public sentiment changing in this respect. There's a lot of concerns, certainly at the legislative level now about misuse of data. But Facebook user ship is not going down. Instagram membership is not going down. Uh, indication is that that ordinary citizens don't really care. >> I know that. That's been my I don't have all the data. Maybe you may have seen, but just anecdotally and talking to people in the work we're doing, I agree with you. I think most people maybe a bit dramatic, but at a conference once and someone made a comment that there has not been the digital Pearl Harbor yet. No, there's not been some event that was just so onerous. Is so all by the people. Remember the day it happened kind of thing. And so these things happen and maybe a little bit of press coverage and you're back on your Facebook. How their instagram account the next day. Nothing is really dramatic. Individuals may change now and then, but I don't see massive changes. But >> you had the Equifax hack two years ago. 145,000,000 records. Capital one. Just this week. 100,000,000 records. I mean, that seems pretty Pearl Harbor ish to me. >> Well, it's funny way we're talking about that earlier today regarding different parts of the world. I think in Europe, the general, they really seem to care about privacy. United States that kind of care about privacy in China. They know they have no privacy. But even in us where they care about privacy, exactly how much they care about it is really an issue. And in general it's not enough to move the needle. If it does, it moves it a little bit about the time when they show that smart TVs could be broken into smart. See, TV sales did not Dutch an inch. Not much help people even remember that big scandal a year ago. >> Well, now, to your point about expects, I mean, just this week, I think Equifax came out with a website. Well, you could check whether or not your credentials were. >> It's a new product. We're where we're compromised. And enough in what has been >> as head mind, I said, My wife says it's too. So you had a choice, you know, free monitoring or $125. So that way went okay. Now what? You know, life goes >> on. It doesn't seem like anything really changes. And we were talking earlier about your 1972 book about cyber security, that many of the principles and you outlined in that book are still valid today. Why are we not making more progress against cybercriminals? >> Well, two things. One thing is you gotta realize, as I said before, the Cave man had no privacy problems and no break in problems. But I'm not sure any of us want to go back to caveman era because you've got to realize that for all these bad things. There's so many good things that are happening, things you could now do, which a smartphone you couldn't even visualize doing a decade or two ago. So there's so much excitement, so much for momentum, autonomous cars and so on and so on that these minor bumps in the road are easy to ignore in the enthusiasm and excitement. >> Well and now, as we head into 2020 affection it was. It was fake news in 2016. Now we've got deep fakes. Get the ability to really use video in new ways. Do you see a way out of that problem? A lot of people looking a Blockchain You wrote an article recently, and Blockchain you think it's on hackable? Well, think again. >> What are you seeing? I think one of things we always talk about when we talk about improving privacy and security and organizations, the first thing is awareness. Most people are really small moment of time, aware that there's an issue and it quickly pass in the mind. The analogy I use regarding industrial safety. You go into almost any factory. You'll see a sign over the door every day that says 520 days, his last industrial accident and then a sub line. Please do not be the one to reset it this year. And I often say, When's the last time you went to a data center? And so assign is at 50 milliseconds his last cyber data breach. And so it needs to be something that is really front, the mind and people. And we talk about how to make awareness activities over companies and host household. And that's one of our major movements here is trying to be more aware because we're not aware that you're putting things at risk. You're not gonna do anything about it. >> Last year we contacted Silicon Angle, 22 leading security experts best in one simple question. Are we winning or losing the war against cybercriminals? Unanimously, they said, we're losing. What is your opinion of that question? >> I have a great quote I like to use. The good news is the good guys are getting better than a firewall of cryptographic codes. But the bad guys are getting batter faster, and there's a lot of reasons for that well on all of them. But we came out with a nautical talking about the docking Web, and the reason why it's fascinating is if you go to most companies if they've suffered a data breach or a cyber attack, they'll be very reluctant to say much about unless they really compelled to do so on the dock, where they love to Brent and reputation. I'm the one who broke in the Capital One. And so there's much more information sharing that much more organized, a much more disciplined. I mean, the criminal ecosystem is so much more superior than the chaotic mess we have here on the good guys side of the table. >> Do you see any hope for that? There are service's. IBM has one, and there are others in a sort of anonymous eyes. Security data enable organizations to share sensitive information without risk to their company. You see any hope on the collaboration, Front >> said before the good guys are getting better. The trouble is, at first I thought there was an issue that was enough sharing going on. It turns out we identified over 120 sharing organizations. That's the good news. And the bad news is 120. So IBM is one and another 119 more to go. So it's not a very well coordinated sharing. It's going just one example. The challenges Do I see any hope in the future? Well, in the more distant future, because the challenge we have is that there'll be a cyber attack next week of some form or shape that we've never seen before and therefore what? Probably not well prepared for it. At some point, I'll no longer be able to say that, but I think the cyber attackers and creatures and so on are so creative. They've got another decade of more to go before they run out of >> Steve. We've got from hacktivists to organized crime now nation states, and you start thinking about the future of war. I was talking to Robert Gates, aboutthe former defense secretary, and my question was, Why don't we have the best cyber? Can't we go in the oven? It goes, Yeah, but we also have the most to lose our critical infrastructure, and the value of that to our society is much greater than some of our adversaries. So we have to be very careful. It's kind of mind boggling to think autonomous vehicles is another one. I know that you have some visibility on that. And you were saying that technical challenges of actually achieving quality autonomous vehicles are so daunting that security is getting pushed to the back burner. >> And if the irony is, I had a conversation. I was a visiting professor, sir, at the University of Niece about a 12 14 years ago. And that's before time of vehicles are not what they were doing. Big automotive tele metrics. And I realized at that time that security wasn't really our top priority. I happen to visit organization, doing really Thomas vehicles now, 14 years later, and this conversation is almost identical now. The problems we're trying to solve. A hider problem that 40 years ago, much more challenging problems. And as a result, those problems dominate their mindset and security issues kind of, you know, we'll get around him if we can't get the cot a ride correctly. Why worry about security? >> Well, what about the ethics of autonomous vehicles? Way talking about your programming? You know, if you're gonna hit a baby or a woman or kill your passengers and yourself, what do you tell the machine to Dio, that is, it seems like an unsolvable problem. >> Well, I'm an engineer by training, and possibly many people in the audience are, too. I'm the kind of person likes nice, clear, clean answers. Two plus two is four, not 3.94 point one. That's the school up the street. They deal with that. The trouble with ethic issues is they don't tend to have a nice, clean answer. Almost every study we've done that has these kind of issues on it. And we have people vote almost always have spread across the board because you know any one of these is a bad decision. So which the bad decision is least bad. Like, what's an example that you used the example I use in my class, and we've been using that for well over a year now in class, I teach on ethics. Is you out of the design of an autonomous vehicle, so you must program it to do everything and particular case you have is your in the vehicle. It's driving around the mountain and Swiss Alps. You go around a corner and the vehicle, using all of senses, realize that straight ahead on the right? Ian Lane is a woman in a baby carriage pushing on to this onto the left, just entering the garage way a three gentlemen, both sides a road have concrete barriers so you can stay on your path. Hit the woman the baby carriage via to the left. Hit the three men. Take a shop, right or shot left. Hit the concrete wall and kill yourself. And trouble is, every one of those is unappealing. Imagine the headline kills woman and baby. That's not a very good thing. There actually is a theory of ethics called utility theory that says, better to say three people than to one. So definitely doing on Kim on a kill three men, that's the worst. And then the idea of hitting the concrete wall may feel magnanimous. I'm just killing myself. But as a design of the car, shouldn't your number one duty be to protect the owner of the car? And so people basically do. They close their eyes and flip a coin because they don't want anyone. Those hands, >> not an algorithmic >> response, doesn't leave. >> I want to come back for weeks before we close here to the subject of this conference. Exactly. You've been involved with this conference since the very beginning. How have you seen the conversation changed since that time? >> I think I think it's changing to Wei first. As you know, this record breaking a group of people are expecting here. Close to 500 I think have registered s o much Clea grown kind of over the years, but also the extent to which, whether it was called big data or call a I now whatever is something that was kind of not quite on the radar when we started, I think it's all 15 years ago. He first started the conference series so clearly has become something that is not just something We talk about it in the academic world but is becoming main stay business for corporations Maur and Maur. And I think it's just gonna keep increasing. I think so much of our society so much of business is so dependent on the data in any way, shape or form that we use it and have >> it well, it's come full circle. It's policy and I were talking at are open. This conference kind of emerged from the ashes of the back office information quality and you say the big date and now a I guess what? It's all coming back to information. >> Lots of data. That's no good. Or that you don't understand what they do with this. Not very healthy. >> Well, doctor Magic. Thank you so much. It's a >> relief for all these years. Really Wanna thank you. Thank you, guys, for joining us and helping to spread the word. Thank you. Pleasure. All right, keep it right, everybody. Paul and >> I will be back at M I t cdo right after this short break. You're watching the cue.

>> from San Diego, California It's the queue covering Sisqo live US 2019 Tio by Cisco and its ecosystem Barker's >> We'll get back to the Cube. We are live at Cisco Live in San Diego. Study. San Diego. Lisa Martin with David Lantana and David Ayer. Super geeking out here, Susie, we is with us back with us. SPP in CTO of depth that Suzy Welcome back. Thank you. It's great to be back. So this event is massive. Cisco's been doing customer and partner events for 30 years now. What started as networkers? We? No, no, it's just alive. Something else you might not know that's also 30 years old. Dizzy. The movie, The Field of dreams. >> Wow, uh, kind of feels like the field does kind of feel like that that are one >> years yes, on ly five years. This has been so influential in Cisco's transition and transformation. You've got nearly 600,000 members in this community. Definite zone. It's jam packed yesterday today. Expect tomorrow as well? Yes, and you guys made simple, really exciting announcements. Yes, we didn't tell us >> about it, so it's fantastic. >> So basically what happens is the network has gotten very powerful. It has gotten very capable. You know, you can do intelligence machine learning you Khun Dio Intent based networking. So instead of the network just being a pipe, you can actually now use it to connect users devices applications use policy to make sure they're all connected securely. There's all sorts of new things that you could do. But what happens is, while there's all that new capability, it's in order to take advantage of it. It takes more than just providing new products and new technology. So our announcements are basically in two areas and we call it. It's like unleashing the capabilities of the new network and by doing it in to a So won is by bringing software practices to networking. So now that it really is a software based, programmable network with all of these capabilities, we wantto make sure that practice of software comes into a networking, and then the other is in the area of bringing software skills to networking because you need the right skills to be able to also take advantage of that. So if I just jump right into it, so the 1st 1 in terms of bringing software practices to networking. We've announce something that we call definite automation exchange. And so what happens is, you know, of course, our whole community builds networks. And as businesses have grown, their networks have grown right and they've grown and grown business has grown growing, grown right, and then it's become hardest, become unmanageable. So while you say there's all these great new technologies, but these things have grown in their way, so our customers biggest problem is actually network automation like How do I take my network? How do I bring automation to it? There's all the promise of it and definite automation. Exchange is built to basically help our community work towards network automation, so it's a community based developer center. What we say is that we're helping people walk, run and fly with network automation by walking. We're saying, OK, there's all these cool things you could do, but let's take it in three steps like first of all is let's walk. So first, just do a read only thing like get visibility, get insights from your network, and you can be really smart about it because you can use a lot of intelligence predictive modeling. You can figure out what's going on. So that alone is super valuable. >> Get the data. >> Get the data I learn on DH. Then next is an Okay, I'm ready to take action. Like so. Now I've learned I'm ready to take action, apply a network policy, apply a security policy, put controls into your network. That's you know. So, uh, walk, run, And then when you're ready to fly is when you're saying okay, I'm going to get into the full dev ops soup with my network. I'm going to be gathering the insights. I'm going to be pushing in control. I'm now optimizing managing my network as I go. So that's the whole slice it. So the wing fact, we want to go to them the walk, run, fly. >> And if I understand from reading your blood, Great block, by the way, >> Thank you. >> A lot of executives, right? Blog's and it's kind of short of yours is really substantively like, Wow, that was >> really something on. That's No, >> But if I understood a truck that you're gonna prime Sisko was gonna prime the pump A cz? Well, yeah, with a lot of ideas and code on DH. Yes, and then engineers can share. There's if they so choose. >> Exactly. So the key part of automation exchange beyond helping people take thes areas. The question is, how are we going to help them? Right? So what happens is what we've been doing with Definitive. We've been helping people learned to code, you know, in terms of networkers, we've been helping bring software developers into the community. We've been helping them learn to use a pea eye's all the good stuff a developer a good developer program should do. But what are networkers have said is I need help solving use cases. I need help solving the problems that I'm trying to solve, like how to get telemetry and monetary, how to get telemetry and insights from my network. How do I offer a self serve network service out to my, you know, customers line of business developers, you know, howto I automate it scale. And so what happens is there's a you know there's an opportunity or a gap between the products and AP eyes themselves and then solving these use cases so are now opening up a code repository, Definite Automation exchange, where the community can develop software that actually solves those use cases. Francisco is going to curate it. It's just going to be code on Get Hub. We'll make sure that it has the right, you know, licenses that, you know, we do some tests and it's working well with the FBI's, and then we're hoping it's going to become. We're hoping, you know, kind of the industries leading network automation code repository to solve these problems. >> Well, it's this key because big challenge that customers tell us that they have with automation is they got all these bespoke tools. None of them work together. So do you think something like this exchange can help solve that problem? >> It can. I believe it can. So the reason being is that you know, there are tools that people use and everybody's environments a little different. So some might want Teo integrate in and use answerable terra form, you know, tools like that. And so then you need code that'll help integrate into that. Other people are using service now for tickets. So if something happens, integrate into that people are using different types of devices, hopefully mostly Cisco, but they may be other using others as well way can extend code that goes into that. So it really helps to go in different areas. And what's kind of cool is that our there's an amount of code that where people have the same problems, you know, you know, you start doing something. Everyone has to make the first few kind of same things in software. Let's get that into exchange. And so let's share that there's places where partners are gonna want to differentiate. Keep that to yourselves like use that as your differentiated offer on DH. Then there's areas where people want to solve in communities of interest. So we have way have someone who does networking, and he wants to do automation. He does it for power management in the utilities industry. So he wants a community that'll help write code that'll help for that area, you know, So people have different interests, and, you know, we're hoping to help facilitate that. Because Sisko actually has a great community way, have a great community that we've been building over the last 30 years there the network experts there solving the real problems around the world. They work for partners, they work for customers, and we're hoping that this will be a tool to get them to band together and contribute in a software kind of way. >> So is the community begins to understand never automation and elect your pathway of of walk, run fly swatter. Soothe projected business outcomes that that any industry, whether it's utilities or financial services, will be able to glean from network automation. I can imagine how expensive from topics perspective it is all this manual network management. So what? Oh, that's some of the things that you projecting the future that businesses who adopt this eventually are going to be able to re >> Absolutely, I mean, just, you know, very simple. Well, so many, so many things. So, uh, in the in the case of what's a manufacturing, because you're talking about different industries? So there's a whole opportunity of connected manufacturing, right? So how do I get all of those processes connected, digitized and write. Now write things air being pretty much run in their way. But if you can really connect them in, digitize them. Then you can start to glean business insights from them. Right? Should I speed up? How's my supply chain doing where my parts Where's my inventory? Everything. You get all of that connected. That is like a huge business implications on what you can do. >> You have a kitchen, get start getting the fly will effect around all that data. Akeley. So I've always been fascinated that you see definite zone and there's these engineers ccs saying Okay, I want to learn more. I want to learn how to code numbers keep growing and growing and growing. And so you've got new certifications. Now that you're >> out of that was, >> this's huge. You need to talk about that, >> Yes, so that, you >> know, kind of the second part of our thing is like how we're bringing software skills to networking. So to get you know, the most of all this opportunity, you do need software skills. And of course, that's what Definite was originally founded on is really helping people to build those skills. But we've kind of graduated to the next level because we've teamed up with the Learning and Cisco team, which creates Cisco Start ification program. Cisco has, you know, an amazing certification program. So the C C. A is the gold standard and certifications and you know networkers around the world have that C C I status partners have built up. They pay people for that. You know any customer who's deploying now, which they will hire the CCS. So that was founded in 1993. The first see CIA, and that program in the next 26 years has grown to what it is. And what we've done is we've teamed up with them to now add a definite certification. So we're bringing in software skills along with the networking skills so that we have the Cisco certifications, the Cisco definite certifications sitting side by side and you know we believe it. You know, right now the people who you've seen in the definite Zone are the ones who know what's important. They come in there doing it. But they said, I want credit for what I'm doing. Like I get credit, I get a raise, I get bonuses. My job level depends on my networking sort of occasions. I'm doing this on my nights and weekends, but I know it's important. And now, by bringing this into the program, my company can recognise this. I'm recognized as a professional for my skills. It helps in all sorts of ways. >> So go ahead. Please >> think this just sounds way more to me than the next step. In Definite. It sounds like it's a revolution. >> It's a revolution. >> First addition in 26 years, that's bay >> now. I mean, there have been changes in the program, but it's the biggest change in those 26 years. Absolutely. And you know, like we'll see what what happens. But I think it is, Ah, step change in a revolution for the industry because we're recognizing that networking skills are important and software skills are important and critical. And if you want to build a team that can compete, that can really help your companies succeed, you're gonna want both of these skills together in your organization. And I believe that that's goingto help accelerate the industry, because then they can use all of these tools, right? So right now on it department can either hold the company down or accelerate a company to success because the question is, how quickly can you help someone adopt cloud? How can they do multi cloud? How convey innovative software speeds? And now we're here, hopefully catalyzing the network industry to be ableto work at that speed. >> I was joking. You wanna be the department of No or the Department of Go? Let's go. So is being a C C. A prerequisite to the definite certificate is not okay, so is not linear. So you're getting CC eyes obviously lining up to get certified to see him here So you could get kids out of college saying, Okay, I want in. >> Absolutely. And so the way that it works is that, um so actually you could. So what we have with the Cisco certifications for both the definite as well as the original Cisco started Take bath is that there's an associate level, which means you have about a years working experience. You know enough. So see CNN, Cisco Certified Network associate. They know enough about networking so that they can learn the fundamentals of networking and then be effective as part of a team that runs networks. So that's what that certification does for you. Way also now have a definite associate, which is ensuring that you have the software skills that you can also enter a team that's writing software applications or doing automated work flows for a network. And we have to know that all developers are not created equally. So just cause you wrote a mobile app doesn't mean that you can write software for, you know, running operational network. So the definite association is more like you need to be able to securely use AP eyes, right? So there's a lot of things that are within that. And then we have the professional in the expert levels. Um, and we have it on both sides now. Originally, way were thinking that there's the network engineer path. We're going to sprinkle a little software in there, and we'll have the definite path for a software developer, and it would be its own path. But we got feedback as we started presenting to our partners into our customers. And then they're like, No, this cannot be separate people. It's like it needs to come together. And so then we changed our how we thought about it, and we said that there's a set of engineering certifications and there's a set of software certifications. Anybody can get what they want, and you can start to combine them in very interesting ways. >> I could put together my own career, Mosaic. >> Absolutely so if you said, You know what? I am going to be that tick ass networker. And if we have the unicorn of like and I'm goingto you know over time, we're going to offer definite expert in the future. I said, I'm going to be a CC expert in the future. Be a definite expert. That's awesome. But we're not forcing folks to do it, because maybe you're going to be a CC. I get a definite associates so that you can speak the language of software and know what it does. But then you'll sit alongside a developer, and you guys will be able to speak the same language together. And we also make sure that our developers learn a bit about networking. So if you look at that associate, it's kind of 80 20 networking software, the other one's 80 20 software and networking so that they can actually work and talk to each other. >> So looking at these big waves that were writing right now and compute in network with G WiFi six s edge a prize anywhere, how is definite and the certification that you've just unleashed into the world? How is it going to enable not just the community members. Yes, who helped accelerate Companies take advantage of some of these big ways. But how is it going? Helps drive Cisco's evolution? >> And so and you bring up a great distinction, which is as we talk about a new set of applications. And we talked about this that create a definite create when you're there. Is that APP developers? If they understand the capabilities of the network, they can actually write an entirely new set of applications. Because you know, five g y fi six are better. If you understand EJ computing in the opportunity there, you know a networker will install a network that can host apse that makes edge computing riel. So there's another reason for the app developer a community to come together with the networkers. So when we talk about now, how does this help? Cisco is Well, first of all, it takes all of the networkers that are out there, and it insures that they're getting to that next level so that you're really fully using those capabilities and that worked, which can then accelerate business, you know. So it really is. The new capabilities are entirely different. Wayto look at networking that really do Tie and Dr Business On the other is the other part we're talking about is those APP developers that come in and write great applications can come in and now really be connected and actually use that whole network infrastructure and all its capabilities. So that really ties us to more kind of, you know, instead of a networker going in instead of going in and selling network kit and then figuring out the line of business things separately, you Khun, bring those applications into our ecosystem and into our offerings. So it's an integrated offering like here's a connected manufacturing offering that includes what you need to connect as well a CZ third party applications that are great for the manufacturing industry. And now you're looking at selling that whole solution >> and applications that we haven't even thought of a member in Barcelona walking into the i o. T Zone and seeing some programmable device from a police car on a camera. And, yes, some of these guys could just they're going to create things that we definite create, haven't even conceived, so you're creating sort of this new role. To me, it's like D B A You know, CC, it's now this new definite creator in a role that is going to have a lot of influence in the organization because they're driving value right there, going toe, bring people with them. People going to say, Oh, I want that. So now you think you're going to stand in Barcelona? The number of people that you've trained, I don't know, make many tens of thousands. I mean, where we have today with >> hundreds of thousands, wait half 1,000,000 5 100,000 Last year were at six >> 100,000. This was going 100,000 organic new members over the last year. So >> people here over half 1,000,000 now. >> Yeah. Yeah. So unbelievable. Yep, definitely So I know it's great. And just people are interested, right? So people are interested. People are learning, you know? And that's what makes it, you know, interesting to me is people are finding value in it, and they're coming. So s O. I think that, you know, kind of definite in the last five years has been kind of like an experiment, right? So it's just like, is the industry ready? Like do networkers really want to learn about software. What air? That we've been kind of prime ing it. And, you know, by now getting to this next level, you know, just the certifications. What we have learned from all of that is that it's really and that, you know, with the new capabilities in the network, we can really take our community and our bring new people into our community to make that opportunity really into Dr Business from the network. >> Everybody wants the code >> had they dio and some >> people >> are scared. Actually, some people are very scared. >> You mean intimidated, >> intimidated, intimidated. Yes. So there's the set of people who've come in early, right? And they're the ones who you've seen in the definite Zone. But everybody, of course, they start out scared. But then right after they get over that fear, they realize this really is a new future. And so then they start jumping in, and so it's both beer and then opportunity. >> Then they're on strike. That's what it's all about, Yang. And absolutely, I could do this for my business and >> absolutely, I would love to know the end that near future, how many different products and services and Maybe even companies have been created from the definite community for springing all these different Pittsburgh folks together. Imagine the impact >> it is. I mean, like, one really small things. You've been with us at our little definite create conference is we have something there that's called Camp Create, which is where they spend a week hacking, right? So and this It's kind of sometimes our most serious attendees because they're choosing Teo Code for the weak is what you know as well as to attend way. Didn't really add it all up yet. But what we found is there's about 25 to 30 people who attend. Met a bunch of them got promoted in that year. Wow. So in different ways, you know, not in ways that are necessarily connected but in their own ways, like in their company. This person got promoted to this to this one area. This other person, one person was a contractor. They got converted to a, you know, full time employee. So you know, we have to go and do the math on it. But what's amazing is that you know it just you know that bring that fills our hearts. >> It's organic too. Well, Susie, we Thank you so much for joining David. Me on the clean. You're going back with me tomorrow. And some guests. I'm looking forward to that. Excellent. Yes, Absolutely. More, More great stars. >> Your duel Co hosting a >> way. I didn't know that. No way. But I'll turn. I'll be the host is Well, I try something new. Way we're >> gonna have fun. I am looking forward to it. Thank you >> so much. And thank you for being with us in our whole vision of definite from the beginning. So thank you. >> It's been awesome. All right. We want to thank you for watching the Cube for David. Dante. I'm Lisa Martin. We will catch you right back with our last guest from Cisco Live in San Diego.

>> Live from Anaheim, California It's the queue covering nutanix dot next twenty nineteen. Brought to you by Nutanix >> Welcome back, everyone to the Cubes Live coverage of nutanix dot Next here in Anaheim, I'm your host, Rebecca Night, along with my co host, John Furrier. We are joined by Victoria Hurtado. She is the director I t operations at current Health Care System's Welcome, Victoria. I think >> you've having me >> So for our viewers that are not familiar with current to tell us a little bit about what you do and what you're all about. >> Sure. So we're a health payer provider. So we are managed care medical plan. We have a contract with the state of California to provide medical services. Teo, about two hundred fifty five thousand members, and Kern County, located in Bakersfield, California s. So if you really think no one to know more about this like a Kaiser without the provider network and so we pay, uh, the services, the bills that come in a swell is authorized the services that need to be rendered for members. >> So talk about your decision to move from traditional storage to H. C. I. >> So really, where decisions stemmed from was our road map. And over the last several years we have had a three tier traditional storage, Um, and the daily task of our system administrators have increased over time with integration and as technology increases, there's more integration. And so we really wanted to focus on how do we decrease that as well as increased efficiencies so that we can for her by the services that we need Teo, for our internal customers as well as our external customers are members and providers >> and and the efficiency. Suppose the project plan. How did you go? Proud. You approach it? >> Sure, So her strategy was really a three phase approach. So we wanted to implement VD I for our internal employees. So we started off with VD. I Once we have transition to that, we will be migrating or in the process of right now, our core claim system, which is that are our bread and butter really on DH? So we'll do a six plant a month plan on that, see how that goes and then once that is successful, which I feel will be successful, we will migrate our entire infrastructure over >> and you're happy with the new tactics so far? >> Yes. So the first deployment was nutanix with Citrix and VM Where that entire combination I've had a few consultants come in and they're like, Oh, you've got the Ferrari of Edie I. And I'm like, Yes, we absolutely dio s Oh, yes, >> when you're thinking about efficiencies. I mean, one of the things Before the cameras were rolling, you were talking a little bit about what it means for employees. Can you talk a little bit about how they then structure of their day? They structure how which projects they work on and how they are more productive given these different changes? >> Sure. So unorganised ation like us, we are always challenged with guidelines changing from the state. They have a tendency to want to change things very frequently. So we often have a lot of critical projects that were doing on an everyday basis, and that work really gets them consumed. And so what we're able to do with nutanix is alleviate those responsibility so that we can focus on the more critical, you know, impacting scenarios versus, you know, managing alone and moving a volume and making sure the system is up and running. We're really focused on providing care to our members because our members or what count, Um and, you know, it also allows for, you know, a member to get the services that they need while they're sitting in the doctor's office waiting for a response from our organization. >> How's the cops world these days? Because there's so much tech out there. When you look at the landscape because you got you got unique situation, you got care and you got payments were relying on this so you don't have a lot of room for mistakes. Crap. What do you guys see in that Operations suppliers out there, Other people you looked at, what was some of the solutions and why need nutanix? >> So it actually took us a while to make that decision. We made a collaborative decision with our engineers, uh, my CEO and some of our business units. We compared different technologies that were out in the landscape of both storage and hyper converged. What was the right path for us? We did a very thorough cost analysis of five year ten year what that road map looks like for us. And, um, like you said. Mistakes. We can't make mistakes. And with growing security risk and healthcare industry and more people wanting that data, it's really important for us to protect it and have it secure. Eso nutanix really offered us a lot of the key components that we were looking for in our grading system. When we you know, we're looking for a storage solution, >> how's the event here? What's what you would have you learned? Tell us your experience. Nutanix next. >> Sure. So coming to this event, I really thought that we would be looking into new technologies. What other integration? Like typical conferences, I think. Sitting in the initial Kino, I heard a lot of great positive things that are aligned with the industry. The buzz words right now in technology as well as our own road mount for technology going to the cloud convergence, using multiple technologies for integration so really kind of paved what this conference was going to be. In addition, I think the sessions having thie cheered approach of you can follow a pathway throughout the conference was a brilliant idea and planning. Um, so I think there's much to learn about how this conference was put on. So >> I want to ask you about your role as the as the director of operation. I mean, somewhere. So you're hearing so much that these roles air really being dramatically transformed that it's not just about keeping the lights on, it really is. You're taking a much more strategic role in the business. How would you say you approach your job differently? How would you say it is changed? Your leadership style And And how much? How much time do you spend thinking about being more visionary? More forward? Thinking versus this is what we're doing each day. >> Yeah, s o I think Historically traditional technology departments and and management within technology of really focused on technology on Lee. Um, over the last several years, I've made it a point to learn our business units so that we can apply good technology, Teo, a good process. I'm a true believer in an advocate for our technology department and our staff to really know the business so that we're not putting technology on a bad process and because that doesn't really help anyone to be successful. So I would say the shift in transition is being merged and converges ight hee in business entity a ce faras approach Getting the business to come uphill with us has been really important. I'm not on ly for technology for the the underlying infrastructure, but systems today systems there so much ability to customize it to your heart's content, which also leads to different issue. So using technology with business process to gain efficiencies is really the road that is ahead of us. >> One of the things that the senior execs that nutanix talk about it their value propositions about, you know, helping consolidate little bit. Here is one of the side benefits. But there's a new role in the kind of looking for spent the new kind of persona person with nutanix solution is a new kind of operator. Yes. What? What? What do you think he means by that? >> So I really think it means And I had this challenge internally, actually, a cz You know, we we have a lot of technical engineers that have grown up with the mentality that I have to know everything about this one silo topic. Right? I need to be the expert in this Andre. Really? Where we're going is you don't have to worry about that. I need you to know about the business. I need you to know about how you can make change, inefficiencies, to help us be successful. And that is a transition for a lot of technologist. And we will get there. I truly believe that because we have Tio. >> It's a cultural thing. >> It is definitely a culture >> of an old dog. New tricks? Kind of >> Yes, Absolutely. How do you hire? I mean, look, what's weirder that what air to you? An applicant comes into your office. What? What do you want to see? >> So technology has historically been the focus of what do you know? How well can you do it? To what experience? You have enterprise grade level experience and now that's really shifting. Teo, are you able to participate on our project? Can you build requirements? Do you understand what your customers asking for? A swell is asking the questions of Is this the right thing to Dio? I'm not just doing what our customer asked us to dio. Does it make sense? If we're going archive data Do we need to secure it when we're transferring that in and out of the organization. Uh, does that make sense? And so they were looking for people that are going to be out spoken a little bit and ask those hard questions. >> Now, we have always talk about Ransomware because healthcare's been targeted. You got your mission's security earlier. Thinking broadly. You got data? Yes. Got the crown jewels, bread in butter. As you said, the data are you Have you experience ransom? Where you guys ready for it? What's the strategy? >> So we've actually take a layered approach to security. Obviously, in health care, there is no single pane of glass for security. We've really stepped into the world of having our data encrypted at rest in transit. Uh, multi layers. We do audits every >> year >> to make sure that we're compliance. We pay people to try to hack us, you know, legally because we want to know where are our possibilities are s o wait. Do that purposefully with intent to make sure that we have the technologies and place that are going to provide us what we need for our data. >> Fascinating. Victoria, Thank you so much for coming on the Cube. It was a pleasure having you. Thank you. I'm Rebecca Knight for John Farrier. You are watching the Cube

>> live from Las Vegas. It's the queue covering del Technologies. World twenty nineteen, brought to you by Del Technologies and its ecosystem partners. >> Okay, welcome back. Everyone's cubes. Live coverage. Day three wrap up of Del Technologies World twenty nineteen Java is Dave a lot. There's too many men on set one. We get set to over there blue set, White said. We got a lot of content. It's been a cube can, in guise of a canon of content firing into the digital sphere. Great gas. We had all the senior executive players Tech athletes. Adele Technology World. Michael Dell, Tom Sweet, Marius Haas, Howard Ally As we've had Pat Kelsey, rco v M were on the key partner in the family. They're of del technology world and we had the clients guys on who do alien where, as well as the laptops and the power machines. Um, we've had the power edge guys on. We talked about Hollywood. It's been a great run, but Dave, it's been ten years Stew. Remember, the first cube event we ever went to was DMC World in Boston. The chowder there he had and that was it wasn't slogan of of the show turning to the private cloud. Yeah, I think that was this Logan cheering to the private cloud that was twenty ten. >> Well, in twenty ten, it was Cloud Cloud Cloud Cloud Cloud twenty nineteen. It's all cloud now. That difference is back then it was like fake cloud and made up cloud and really was no substance to it. We really started to see stew, especially something that we've been talking about for years, which is substantially mimicking the public cloud on Prem. Now I know there are those who would say No, no, no, no, no. And Jessie. Probably in one of those that's not cloud. So there's still that dichotomy is a cloud. >> Well, Dave, if I could jump in on that one of the things that's really interesting is when Veum, where made that partnership with a ws It was the ripple through this ecosystem. Oh, what's that mean for Del you know Veum, wherein Del not working together Well, they set the model and they started rolling out bm where, and they took the learnings that they had. And they're bringing that data center as a service down to the Dell environment. So it's funny I always we always here, you know, eight of us, They're learning from their partners in there listening and everything like that. Well, you know, Dylan Veum where they've been listening, they've been learning to in this, and it brings into a little bit of equilibrium for me, that partnership and right, David, you said, you know that you could be that cloud washing discussion. And today it's, you know, we're talking about stacks that live in eight of us and Google and Microsoft. And now, in, you know, my hosted or service lighter or, you know, my own data center. If that makes sense, >> I mean, if you want to just simplify the high order bit, Dave Cloud. It's simply this Amazon's trying to be enterprised everyone, the enterprise, trying to claw Amazon, right? And so what? The what that basically means is it's all cloud. It's all a distributed computer system. OK, Scott McNealy had it right. The network is the computer. If you look at what's going on here, the traditional enterprise of vendors over decades of business model and technology, you know, had full stack solutions from mainframe many computers to PC the local area networking all cobble together wires it up creates applications, services. All that is completely being decimated by a new way to roll out storage, computing and networking is the same stuff. It's just being configured differently. Throw on massive computer power with Cloud and Moore's Law and Data and A. I U have a changing of the the architecture. But the end of the day the cloud is operating model of distributed computing. If you look at all the theories and pieces of computer science do and networking, all those paradigms are actually playing out in in the clouds. Everything from a IIE. In the eighties and nineties you got distributed networking and computing, but it's all one big computer. And Michael Dell, who was the master of the computer industry building PCs, looks at this. Probably leg. It's one big computer. You got a processor and subsystems. So you know this is what's interesting. Amazon has done that, and if they try to be like the enterprise, like the old way, they could fall into that trap. So if the enterprise stays in the enterprise, they know they're not going out. So I think it's interesting that I see the enterprise trying to like Amazon Amazon trying to get a price. So at the end of the day, whoever could build that system that's scalable the way I think Dell's doing, it's great. I was only scaleable using data for special. So it's a distributed computer. That's all that's going on in the world right now, and it's changing everything. Open source software is there. All that makes it completely different, and it's a huge opportunity. Whoever can crack the code on this, it's in the trillions and trillions of dollars. Total adjustable market >> well, in twenty ten we said that way, noted the gap. There's still a gap between what Amazon could do and what the on Prem guys Khun Dio, we'd argue, is a five years is seven years, maybe ten years, whatever it is. But at the time we said, if you recall, lookit, they got to close the gap. It's got to be good enough for I t to buy into it like we're starting to see that. But my view, it's still not cloud. It doesn't have to scale a cloud, doesn't have the economics cloud. When you peel the onion, it doesn't certainly doesn't have the SAS model and the consumption model of cloud nowhere close yet. Well, and you know, >> here's the drumbeat of innovation that we see from the public cloud. You know where we hit the shot to show this week, the public have allowed providers how many announcements that they probably had. Sure, there was a mega launch of announcements here, but the public lives just that regular cadence of their, you know, Public Cloud. See a CD. We're not quite there yet in this kind of environment, it's still what Amazon would say is. You put this in an environment and it's kind of frozen. Well, it's thought some, and it's now we can get data set. A service consumption model is something we can go. We're shifting in that model. It's easier to update things, but you know, how do I get access to the new features? But we're seeing that blurring of the line. I could start moving services that hybrid nature of the environment. We've talked a few times. We've been digging into that hybrid cloud taxonomy and some of the services to span because it's not public or private. It's now truly that hybrid and multi environment and customers are going to live in. And all of >> the questions Jonah's is good enough to hold serve >> well. I think the reality is is that you go back to twenty ten, the jury in the private cloud and it's enterprises almost ten years to figure out that it's real. And I think in that time frame Amazon is absolutely leveled. Everybody, we call that the tsunami. Microsoft quickly figures out that they got to get Cloud. They come in there, got a fast followers. Second, Google's trying to retool Oracle. I think Mr Bo completely get Ali Baba and IBM in there, so you got the whole cloud game happening. The problem of the enterprises is that there's no growth in terms of old school enterprise other than re consolidate in position for Cloud. My question to you guys is, Is there going to be true? True growth in the classic enterprise business or, well, all this SAS run on clouds. So, yes, if it's multi cloud or even hybrid for the reasons they talk about, that's not a lot of growth compared to what the cloud can offer. So again, I still haven't seen Dave the visibility in my mind that on premises growth is going to be massive compared to cloud. I mean, I think cloud is where Sassen lives. I think that's where the scale lives we have. How much scale can you do with consolidation? We >> are in a prolonged bull market that that started in twenty ten, and it's kind of hunger. In the tenth year of a of a decade of bull market, the enterprise market is cyclical, and it's, you know, at some point you're going to start to see a slowdown cloud. I mean, it's just a tiny little portion of the market is going to continue to gain share cloud can grow in a downturn. The no >> tell Motel pointed out on this, Michael Dell pointed out on the Cubans, as as those lieutenants, the is the consolidation of it is just that is a retooling to be cloud ready operationally. That's where hybrid comes in. So I think that realization has kicked in. But as enterprises aren't like, they're not like Google and Facebook. They're not really that fast, so So they've got to kind of get their act together on premises. That's why I think In the short term, this consolidation and new revitalisation is happening because they're retooling to be cloud ready. That is absolutely happen. But to say that's the massive growth studio >> now looked. It is. Dave pointed out that the way that there is more than the market growth is by gaining market share Share share are areas where Dell and Emcee didn't have large environment. You know, I spent ten years of DMC. I was a networking. I was mostly storage networking, some land connectivity for replication like srd Evan, like today at this show, I talked a lot of the telco people talk to the service of idle talk where the sd whan deny sirrah some of these pieces, they're really starting to do networking. That's the area where that software defined not s the end, but the only in partnership with cos like Big Switch. They're getting into that market, and they have such small market share their that there's huge up uplift to be able to dig into the giant. >> Okay, couple questions. What percent of Dell's ninety one billion today is multi cloud revenue. Great question. Okay, one percent. I mean, very small. Okay. Very small hero. Okay? And is that multi cloud revenue all incremental growth isat going to cannibalize the existing base? These? Well, these are the fundamentals weighs six local market that I'm talking to >> get into this. You led the defense of conversations. We had Tom Speed on the CFO and he nailed us. He said There's multiple levers to shareholder growth. Pay down the debt check. He's got to do that. You love that conversation. Margin expansion. Get the margins up. Use the client business to cover costs. As you said, increased go to market efficiency and leverage. The supply chain that's like their core >> fetrow of cash. And that all >> these. The one thing he said that was mind blowing to me is that no one gets the valuation of how valuable Del Technologies is. They're throwing off close to seven billion dollars in free cash flow free cash flow. Okay, so you can talk margin expansion all you want. That's great, but there got this huge cash flow coming in. You can't go out of business worth winning if you don't run out of cash >> in the market. When the market is good, these guys are it is good a position is anybody, and I would argue better position than anybody. The question on the table that I'm asking is, how long can it last? And if and when the market turns down and markets always cyclical we like again. We're in the tenth year of a bull market. I mean, it's someone >> unprecedented gel can use the war chest of the free cash flow check on these levers that they're talking about here, they're gonna have the leverage to go in during the downturn and then be the cost optimizer for great for customers. So right now, they're gonna be taking their medicine, creating this one common operating environment, which they have an advantage because they have all the puzzle pieces. You A Packer Enterprises doesn't have the gaping holes in the end to end. They can't address us, >> So that is a really good point that you're making now. So then the next question is okay. If and when the downturn turn comes, who's going to take advantage of it, who's going to come out stronger? >> I think Amazon is going to be continued to dominate, and as long as they don't fall into the enterprise trap of trying to be too enterprising, continue to operate their way for enterprises. I think jazz. He's got that covered. I think DEL Technologies is perfectly positioned toe leverage, the cash flow and the thing to do that. I think Cisco's got a great opportunity, and I think that's something that you know. You don't hear a lot of talk about the M where Cisco war happening. But Cisco has a network. They have a developer ecosystem just starting to get revitalized. That's an opportunity. So >> I got thoughts on Cisco, too. But one of things I want to say about Del being able to come out of that stronger. I keep saying I've said this a number of times and asked a lot of questions this week is the PC business is vital for Del. It's almost half the company's revenue. Maybe not quite, but it it's where the company started it. It sucks up a lot of corporate overhead. >> If Hewlett Packard did not spin out HP HP, they would be in the game. I think spinning that out was a huge mistake. I wrote about a publicly took a lot of heat for it, but you know I try to go along with the HPD focus. Del has proven bigger is better. HP has proven that smaller is not as leverage. And if it had the PC that bee have the mojo in gaming had the mojo in the edge, and Dale's got all the leverage to cross pollinate the front end and edge into the back and common cloud operate environment that is going to be an advantage. And that's going to something that will see Well, let me let me >> let me counter what you just said. I agree. You know this this minute. But the autonomy was the big mistake. Once hp autonomy, you know what Meg did was almost a fatal complete. They never should've bought autonomy >> makers. Levi Protector he was. So he was there. >> But she inherited that bag of rocks. And then what you gonna do with it? Okay, so that's why they had to spend out and did create shareholder value. If they had not purchased autonomy, then he would return much better shape, not to split it up. And they would be a much stronger competitor. >> And I share holder Pop. They had a pop on value. People made some cash with long game. I think that >> going toe peon base actually done pretty well for a first year holding a standalone PC company. So, but again, I think Del. With that leverage, assuming pieces, it's going to be really interesting. I don't know much about that market. You were loving that PC conversation, but the whole, you know, the new game or markets and and the new wayto work throwing an edge in there, I don't know is ej PC and edges that >> so the peanut butter. And so the big thing that Michael get the big thing, Michael Dell said on the Cube was We're not a conglomerate were an integrated company. And when you have an integrated company like this, with the tech the tech landscape shifting to their advantage, you have the ability to cross subsidize. So strategy game. Matt Baker was here we'd be talking about OK, I can cross subsidize margin. You've brought it up on the client side. Smaller margins, but it pays a lot of the corporate overhead. Absolutely. Then you got higher margin GMC business was, you know, those margins that's contributing. And so when you have this new configuration. You can cross, subsidize and move and shift, so I think that's a great advantage. I think that's undervalued in the market place. And I think, you know, I think Del stock price is, well, undervalue. Point out the numbers they got VM wear and their question is, What what point is? VM where blink and go All in on del technology stew. Orcas Remember that Gus was gonna partner. You don't think the phone was ringing off the hook in Palo Alto from their parties? What? What's this as your deal? So Vienna. There's gotta be the neutral party. Big problem. The opportunity. >> Well, look, if I'm a traditional historical partner of'Em are, it's not the Azure announcement that has me a little bit concerned because all of them partner with Microsoft to it is how tightly combined. Del and Veum, where are the emcee, always kept them in arms like now they're in the same. It's like Dave. They're blending it. It's like, you know Del, from a market cap standpoint, gets fifty cents on the dollar. VM wears a software company, and they get their multiples. Del is not a software company, but VM where well, people are. Well, if we can win that a little bit, maybe we could get that. >> Marty still Isn't it splendid? No, no, I think the strategy is absolutely right on. You have to go hard with VM wear and use it as a competitive weapon. But, Stuart, your point fifty cents and all, it's actually much worse than that. I mean the numbers. If you take out of'Em, wears the VM wear ownership, you take out the core debt and you look at the market value you're left with, like a billion dollars. Cordell is undervalued. Cordell is worth more than a billion or two billion dollars. Okay, so it's a really cheap way to buy Veum. Where Right that the Tom Sweet nailed this, he said. You know, basically, these company those the streets not used to tech companies having such big debt. But to your point, John, they're throwing off cash. So this company is undervalued, in my view. Now there's some risks associated with that, and that's why the investors of penalizing them for that debt there, penalizing him from Michael's ownership structure. You know, that's what this is, but >> a lack of understanding in my opinion. I think I think you're right. I just think they don't understand. Look at Dale and they think G You don't look a day Ellen Think distributed computing system with software, fill in those gaps and all that extra ten expansion. It's legit. I think they could go after new market opportunities as as a twos to us as the client business. I mean mere trade ins and just that's massive trillions of dollars. It's, I think I think that is huge. But I'm >> a bull. I'm a bull on the value of the company. I know >> guys most important developments. Del technology world. What's the big story that you think is coming out of the show here? >> Well, it's definitely, you know, the VM wear on del I mean, that is the big story, and it's to your point. It's Del basically saying we're going to integrate this. We're going to hard, we're going to go hard and you know Veum wear on Dell is a preferred solution. No doubt that is top for Dell and PacBell Singer said it. Veum wearing eight of us is the first and preferred solution. Those are the two primary vectors. They're going to drive hard and then Oh, yeah, we'Ll listen to customers Whatever else you want Google as you're fine, we're there. But those two vectors, they're going to Dr David >> build on that because we saw the, um we're building out of multi cloud strategy and what we have today is Del is now putting themselves in there as a first class citizen. Before it was like, Oh, we're doing VX rail and Anna sex and, you know, we'LL integrate all these pieces there, but infrastructure, infrastructure, infrastructure now it is. It is multi cloud. We want to see that the big table, >> right, Jeff, Jeff Clarke said, Why are you doing both? Let's just one strategy, one company. It's all one Cash registers that >> saying those heard that before. I think the biggest story to me is something that we've been seeing in the Cuban laud, you know, been Mom. This rant horizontally scaleable operating environment is the land grab and then vertically integrate with data into applications that allow each vertical industry leverage data for the kind of intimate, personalized experiences for user experiences in each industry. With oil and gas public sector, each one has got their own experiences that are unique. Data drives that, but the horizontal and tow an operating model when it's on premises hybrid or multi cloud is a huge land grab. And I think that is a major strategic win for Dell, and I think, as if no one challenges them on this. Dave, if HP doesn't go on, emanate change. If H h p e does not do it em in a complete changeover from strategy and pulling, filling their end to end, I think that going to be really hurting I think there's gonna be a tell sign and we'LL see, See who reacts and challenges Del on this in ten. And I think if they can pull it off without being contested, >> the only thing I would say that the only thing I would say that Jonah's you know, HP, you know very well I mean, they got a lot of loyal customers and is a huge market out there. So it's >> Steve. Look at economic. The economics are shifting in the new world. New use cases, new step function of user experiences. This is this is going to be new user experiences at new economic price points that's a business model. Innovation, loyal customers that's hard to sustain. They'Ll keep some clutching and grabbing, but everyone will move to the better mousetrap in the scenario. So the combination of that stability with software it's just this as a big market. >> So John twenty ten Little Table Back Corner, you know of'em See Dylan Blogger World double set. Beautiful says theatre of present lot of exchange and industry. But the partnership in support of this ecosystem. It's something that helped us along the way. >> You know, when we started doing this, Jeff came on board. The team has been amazing. We have been growing up and getting better every show. Small, incremental improvements here and there has been an amazing production, Amazing team all around us. But the support of the communities do this is has been a co creation project from day one. We love having this conversation's with smart people. Tech athletes make it unique. Make it organic, let the page stuff on on the other literature pieces go well. But here it's about conversations for four and with the community, and I think the community sponsorship has been part of funding mohr of it. You're seeing more cubes soon will be four sets of eight of US four sets of V M World four sets here. Global Partners sets I'm used to What have we missed? >> Yeah, it's phenomenal. You know, we're at a unique time in the industry and honored to be able to help documented with the two of you in the whole team. >> Dave, How it Elias sitting there giving him some kind of a victory lap because we've been doing this for ten years. He's been the one of the co captains of the integration. He says. There's a lot of credit. >> Yeah, Howard has had an amazing career. I I met him like literally decades ago, and he has always taken on the really hard jobs. I mean, that's I think, part of his secret success, because it's like he took on the integration he took on the services business at at AMC U members to when Joe did you say we're a product company? No services company. I was like, Give me services. Take it. >> It's been on the Cube ten years. Dave. He was. He was John away. He was on fire this week. I thought bad. Kelsey was phenomenal. >> Yeah, he's an amazing guest. Tom Tom Suite, You know, very strong moments. >> What's your favorite Cuban? I'LL never forget. Joe Tucci had my little camera out film and Joe Tucci, Anna. One of the sessions is some commentary in the hallway. >> Well, that was twenty ten, one of twenty eleven, I think one of my favorite twenty ten moments I go back to the first time we did. The cue was when you asked Joe Tucci, you know why a storage sexy. Remember that? >> A He never came on >> again. Ah, but that was a mean. If you're right, that was a cube mean all for the next couple of years. Remember, Tom Georges, we have because I'm not touching. That was >> so remember when we were critical of hybrid clouds like twenty, twelve, twenty, thirteen I go, Pat is a hybrid cloud, a halfway house to the final destination of public loud. He goes to a halfway house, three interviews. This was like the whole crowd was like, what just happened? Still favorite moment. >> Oh, gosh is a mean so money here, John. As you said, just such a community, love. You know, the people that we've had on for ten years and then, you know, took us, you know, three or four years to before we had Michael Dell on. Now he's a regular on our program with luminaries we've had on, you know, but yeah, I mean, twenty ten, you know, it's actually my last week working for him. See? So, Dave, thanks for popping me out. It's been a fun ride, and yeah, I mean, it's amazing to be able to talk to this whole community. >> Favorite moment was when we were at eighty bucks our first show. We're like, We still like hell on this. James Hamilton, Andy Jazzy Come on up, Very small show. Now it's a monster, David The Cube has had some good luck. Well, we've been on the right waves, and a lot of a lot of companies have sold their companies. Been part of Q comes when public Unicorns New Channel came on early on. No one understood that company. >> What I'm thrilled about to Jonah's were now a decade, and we're documenting a lot of the big waves. One of one of the most memorable moments for me was when you called me up. That said, Hey, we're doing a dupe world in New York. I got on a plane and went out. I landed in, like, two. Thirty in the morning. You met me. We did to dupe World. Nobody knew what to do was back then it became, like, the hottest thing going. Now nobody talks about her dupe. So we're seeing these waves and the Cube was able to document them. It's really >> a pleasure. The Cube can and we got the Cube studios sooner with cubes Stories with Cube Network too. Cue all the time, guys. Thanks. It's been a pleasure doing business with you here. Del Technologies shot out the letter. Chuck on the team. Sonia. Gabe. Everyone else, Guys. Great job. Excellent set. Good show. Closing down. Del Technologies rose two cubes coverage. Thanks for watching

>> Live from Las Vegas. It's the queue covering del Technologies. World twenty nineteen. Brought to you by Del Technologies and its ecosystem partners. >> Good morning. Welcome to the Cubes coverage. Day three. Odell Technologies, World from Las Vegas. Lisa Martin With student Amanda We're pleased to welcome one of our alumni back to the key. We've got Jay Snyder with us SPP of global alliances, service providers and industries chaebol. Thank >> you so much for having me again. >> Our pleasure. So we have been talking for This is our third day of covering the lots of news, lots of technology conversations We know there's a big global Cartner summit. >> It's been fantastic, actually. >> Abd el Technologies World Thriving partner ecosystem Give us an overview of global alliances and some of the feedback from the last few days of the partners. So >> fantastic. Thank you again for having me. I'll tell you this. The feedback is off the chart eye. Don't even I've lost the ability to find new words to describe how excited are partners seem to be with the messaging that we've had here. But what's been consistent is best l technologies world ever and best global partners. Summer that we've ever had and I think the reason behind that is not just because we've done a great job presenting the content. It's because of the content, right. If you think about the partner ecosystem, it's interesting. We've always worked incredibly well with them and our partners love what we do in the products we make. But our messages have never been perfectly aligned. Think about the messages we have now on the main stage. We have four transformations and delivering outcomes and then we have multi cloud and the multi cloud strategy and then think about what the partners do. They deliver the strategy around designing and defining what a multi cloud architecture is going to look like and or being the providers that actually deliver it. Our messages are perfectly aligned, so they're so excited to see that there now at the epicenter of everything that we go and do, and the fact that I would say probably more exciting is our entire sales force is trained on those messages, understanding those messages and embracing those messages. So they're getting huge lift now from our cellars, as opposed to kind of. I wouldn't say we were never at conflict. But we're Maurin Parallel. And now we're really lock. Step. Well, does that make sense? >> It does, Jay. And and he brought up a really good point, you know? Congratulations. Glad to hear everybody's in lock step. Because I remember we talked about the transformation of the channel. Yeah, and I go back when converge infrastructure first rolled out. They're people. Oh, my gosh. I make millions of dollars racking it, Stacking, shoveling stuff. I need to shift Cloud that there was, you know, at VM wears partner Summit, you know, one of the executive V M. Where you know, every time Amazon winds, you know, we all lose. Sure. So helped us for today. You know, cloud big theme of the message. How Teo his partners fit into those environments. And how have they gotten to over the fear of cloud and to be fully embracing in executing a multi cloud? >> Maybe I should just context to about who my partners are, so that would be helpful. So we representing alliance is the largest global systems integrators. So think about firms like in HCL, Deloitte dating, censure. And I hate to leave anybody out, but there's eighteen of them. And then we represent the clouds of the cloud service provider ecosystem. So a couple of hundred cloud providers that actually do provide manage private clouds off from or public clouds. So they're super excited about the message because they fit in on both ends, right, As I was just describing right there, the ones that are really gonna have to deliver the strategy around what it's going to look like and how they're going to get their customers ask us all the time. Hey, I want to get to the cloud, but they don't really know what it means. So we have to ask them, What do you really trying to accomplish and why? Right, Once we understand that we can engage with these partners, and it's a perfect entree for them to go figure out, articulating design that architecture. And then last time I checked, we're actually not a cloud company, right? We have great products. We have great services. We've rate platforms, but we're not a cloud company, right? We don't provide those types of capabilities. So when you think about being able to leverage >> multi cloud and it started just clever, you're saying you're not a public cloud company because company Private Cloud absolutely se Eun apart >> from Private Cloud, right? But when we want to go off from and create that multi claude environment based on use case now all those partners fit into that play and they have the ability through the capabilities we just announced with Del Technologies clown tow leverage, those hyper scale er's. So where they used to see them as foe. They're now part of the solution, and they can deliver that solution through our new platform that we just brought to market. So again it gets back to we used to fight it. Now we're embracing it and leveraging it and delivered a comprehensive solution. >> So starting Monday, when Michael walked out on stage your hat with Jeff, the message over lying on, of course, with salt from Microsoft was collaboration integration. So really starting to see all the layers of Del technologies and its brands come together in a much more cohesive way than we've seen so far in terms of what the partners are now enabled to deliver. Some of the feedback on that is, do they feel that it's been made more simplified that has been made more streamlined, that it's opening up new market opportunities with, you know, the Del Technologies Cloud and some of the related announcements. >> So So it's a complicated question you're actually asking, because for years the partners have been saying We'd love to view you as a single company, right? That's kind of the missing ingredient to really a lot unlock the full potential. I think the first big piece big mover in this is the Del Technology Cloud platform. It's really the end, Stan, she ation of what Michael's been talking about for the last three years, which is I'm going to bring all this stuff together and create a force in the industry where we compete in the market together, not against one another. So we're seeing that so the partners are ecstatic right there, seeing the best of all the piece parts come together in that platform, and we've told him that's the first step. But we have been working with them for years to provide what I'LL call an umbrella effect across all the different companies to allow them to tap into all those resource is. So in some degree, we've been doing it already. We've been playing that multi cloud game and working cross strategically aligned business to bring those values to life. But now we put our money where our mouth is, and we have simplified the approach with the product and the platform to make it easier for them to go tomorrow. Way to have a little bit. We do have a little bit a ways to go, though. I want to be clear. >> So, yeah, and Jay really good points there because I I one article recently about hybrid cloud cut a lot of history with it and simplifying a piece of the overall puzzle. But as you said, those hyper scales fit into it. Sergeant Dellape, upstate eight of us, a strong partner on VM where you know, Google announcement. You know, just a few weeks ago, those s eyes that air your partner's There are some of the critical pieces because there's a lot of complexity out there and we need key partners to be a help us to do there. You know, the Del of Technology family is a piece of it, but those s eyes air really thie arms and legs that are going to go help all of the customers understand. Try to get their arms around and, you know, hopefully simplify. And what what I said is they need to turn from a bunch of point pieces in the new overall solution. They do that, help me drive innovation and drive by. Visit forward, not trying to manage all of the pieces >> We had talked about it yesterday. I mean, I D c. Says that sixty two percent of customers will have a multi cloud architecture. But for my partner Rico system, it's more interesting. You know that seventy percent of the customers are going to choose a provider to design, architect and manage that infrastructure. So if you think about that seven ten, customers will use one of those global systems integrators and or cloud service writers or, more likely both to deliver on their vision and their outcomes that they need to achieve to change their business models, which is again great for our business. >> How influential are your is your partner ecosystem in terms of some of the announces that we've heard this week? They're out feet on the street there, talking with customers about the challenges that they're having emerging trends. A. M L. What's that sort of center? Just a partner. Feedback loop like that helps Del Technologies, right thruster >> way Run partner advisory boards in each major theater multiple times a year, and these are the exact things we ask them. What tribe trends are you seeing? We map it against our product portfolio in our solutions to identify where there's gaps. Five g's a great example, right? We're looking at where the market's going happen. Have responsibility for a big chunk of our telco vertical as well within the company. So it's a hot topic and, you know, for a while we were. We were honestly lagging in this particular space. If I think back two years ago, we talked Telco, but we didn't walk Telco. We've made a lot of investments over the last two years to build a product business unit specifically around Telco solutions, and I'm proud to say, especially coming out of Mobile World Congress this year that we have arrived. We have incredible products solutions that really are exactly what are partners are looking for and our end user customers looking for. And it's an interesting dynamic because a lot of our partners, our customers. If you think about the telco community that's really gonna embrace and drive five G, we both sell to them and we sell through them. So we love the fact they'LL consume our underlying technology. But more importantly, I love the fact that we can use them as a route to market to expose hundreds thousands of customers to those capabilities in the broader scale. >> Yeah, J that the networking is such a critical component of that service fighter piece. So how much of that solution that you're talking about? Polls in some of the aspects from GM wear, you know, NSX, the SD win. Those pieces seem natural fit to help drive that overall solution. >> Yeah, I would actually tell you that my opinion is probably the first products that we brought to market that were really crossed Company cross collaboration. You know, even before we got to the Del Technologies cloud were exactly what you're talking about. Some of those networking asked it some security assets that vm where has integrated with some of our products server technology to build some integrated telco specific things for the core and the edge, which is really where they're operating specifically around the edge. Fellow cloud is going to be a huge piece of that SD. When we see the telcos, has a huge route to market again for that particular product and as a massive consumer of that particular product, we understand they have to cannibalize some of their own business. But it's the way the markets going. So the answer is yes. We're seeing great integration, great collaboration between our product business unit under cabin, Kevin Shots Camera in Telco and his V M or counterparts. And I think I said his name right there, too. >> Yeah, I had to interview him once, and absolutely nothing I'm getting that right was tough. You know, one of things always at the show is just the feedback that you get from from customers and from from your partners. So gives the mood, you know, Where are they? What are some of, you know, key opportunities, challenges? What? What's top of mind issues for? >> I'm telling you like I can't make this up. The mood is off the chart, right? They've said consistently best sessions ever. I was talking to one particular partner last night. I won't say his name, but he's worked in this industry for thirty years. He's worked for major companies ASAP. Adobe, Microsoft. This is his first time Adele Technologies world working as a partner of ours, he said. Hands down. This is the best partner driven partner content partner event I've ever seen in the industry. So excited about the focus Del Technologies has as a company on our ecosystem and the types of conversations we're having to actually not just sell to us, but sell through us, right? We're really, I think we've really worked hard to view our partners not as customers, but truly as partners. It's all about the business. We build together, not about the business we do together. If that makes sense, right >> well, that trust trusting relationship is absolutely table stakes. It is for an organization. It sounds like you guys have really done a tremendous amount of work in the last few years to get that to the highest level that it's ever been on. >> I would agree. I think we've come a long way from where we were. We have a lot more work to do it .'LL never end, but I'm super excited with what achieved. I think our partners are, too, because the results they're getting are fantastic. I talked about the profitability of our business and their business together, which means what we're selling has value, which is fantastic as well. So it's good to know that we're not just winning in the market, but we're winning with high value, and again it gets back to where this conversation started, which is everyone talking about transformation and outcomes. It's hard to deliver value if you're not delivering an outcome or vice versa, right >> J. One of the areas that I I think your partner's and the solutions that your help bringing to market what would have some good opinion on is this move from kind of the Catholics, the optics model, you know, one of things. We look at the cloud announcements and it's like, Okay, wait, which of these air as a service? Which one of these he's, you know, can I do financing on and which one of these you know are mostly built on hardware? We're just that fit in the overall discussion, and it's what what do you get feedback from your partners and to cultivate that >> users? It's literally in every single conversation we have. So I can't think of a particular partner conversation that doesn't send around a variety of things. One is always our technology. One is our go to market engine and how we can leverage that and the other is commercials. And it's not the price. It's the consumption, right? How are we going to consume your technology, CAF, ex office and everything in between? And that everything in between used to be one or two things. Now it's ten or fifteen things right. The models have got very complex and very dynamic, so it's top of mind. And the beautiful thing is, you know, a few years ago the only way to get a consumption model on as a service model. It was through my partner Rico system. Now Dell's done a good job to catch up to some degree. But to truly deliver what a lot of the customers air accident for, which is pure op X, no caf X pays you grow. Models were still leveraging heavily our partner ecosystem to Babel. Deliver that, and the challenge for us is to be able to keep up with them, right? They're moving at such a rapid pace and the dynamics of those models Archangel. We have to evolve too quickly to be able to offer what our competitors aire doing. I'm excited to say, so far, so good, but we're doing a great job of that. But I would I would agree with you, right? The commercial model, The consumption models are top of mind, and every conversation had to today right on how we're going to structure these things. And it's really exciting, right? Because when we do it right, it tends to be not only great for Dell and great for the partner, but great for the customer. So it really is. It's the classic win win win. >> Are you know, one of the things that it seems that Dell has been technologies working to Dio for awhile now has become this sort of one stop shop for all things partners. Are they looking to have that single trusted source Do they appreciate now that they've got that, that they can really go today l technologies and enable their customers and your customers to transform security work for us? We heard a lot about work first. Urination, >> very common, >> are they now seeing Dallas? This Hey, this is this really a one stop shop. We can actually deliver everything that our customers are looking for. >> They're definitely seeing because we're telling it to him all the time, right? But yes, the answers without question, I think one of the big drivers for our business has been the ability to aggregate the breath of Del Technologies and bring the full portfolio to beer to them. I'd love to see them all standardised on us exclusively. That's my job, right? That's what we do. We try to eliminate white space and own all marketshare. We'LL never get there one hundred percent. But we've seen, you know, we look out of right of metrics in our business. We look at revenue, growth, probability, growth way. Also, look at white space, which is what you're talking about. Have we consume the white space where competitors used to be with inside our partners, and we've seen massive growth there in the last two years significant growth across the board. And the reason is because of what you just described. We now have an economies of scale advantage in a breath of portfolio advantage where it just makes sense for them to bet on us to get what they need, right, whether it's a pivotal capability or of'em were capability or Bhumi capability. When we have that, everybody pointed in the same direction. This story is just so much more powerful and there, and I'm not going to say they're buying it. They're believing it and they're seeing it in the field. So again, I talked about it earlier. If weaken transact at that level at Adele Technologies level, it means more value to our partners. But ultimately they can provide more value to their customers. So they're more profitable or customers get better solutions. So yes, yes, and yes, >> everybody went well. Jay, thank you so much for joining student May assuring the tremendous momentum that you guys have achieved. We look forward to hearing next year. >> I do to >> even better news will be Thanks. Thank you again for joining us. >> Thanks for having me. >> Great to meet you. Thanks, Tio for student a man. I'm Lisa Martin. You're watching us on the Cube. Live from jail technology World twenty nineteen day three of the cubes to set coverage continues after this

>> from New York City. It's the cue covering automation anywhere. Imagine, brought to you by automation anywhere you >> were in midtown Manhattan, at the automation anywhere. Imagine Crawford's twenty nineteen really psyched to be here. Fifteen hundred people talking about our P A. But really, the Rp story is much more than just robotic process. Automation is really a new way to work, which we hear about all over the place and really reimagining what this technology can do. We're excited to have our next guest. She's Shelly Kramer, an analyst and partner for feature research. Shelley, great to see you. >> Great to see you, too. And you got it. >> I got a right. >> You got it. >> Well, you're a very busy lady. Got all kinds of stuff going on, which is what we like. So first off, just kind of Have you been here before? General impressions of the show. >> This is my first, Uh, this is my first, uh, automation anywhere event. And so it's exciting. I write a lot about our PPA and about the future of work and work force transformation. So it's great to be >> here. Yeah. And you just wrote not a super uplifting article linked in about, you know, employee dissatisfaction and some of the issues with employee retention. We talked before. We turn the cameras on about things like calling him human resource is, you know, and human capital there, they're people. And I thought my here really touched on it. Well, in the keynote today that this is not a rip and replace technology for people. This is a tool to help us do our jobs better, just like our laptops and our mobile phones and our application. So are you excited about the opportunity? See, it is this transformative. >> I do see this transformative. And I think that before you talk about what we talked about, the technology that we have to talk about people and Simpson and I'm pulling this out of my memory banks. So on average, about eighty two percent of employees within any organization are disengaged. OK, eighty two percent. >> So the ping pong tables and the tables are not doing it. >> And so when you think about it and engaged workforce are people who wake up in the morning or whatever it is, they go to work and who are excited about what they're doing excited about their company. They're working for love, the culture that they're working within. I love all those things that they're doing. And so when you realize that eighty two percent of people are disengaged, that's problematic. Right then, you're talking about the toughest talent acquisition markets that we've had in a really long time. So we're all fighting for top talent, not just top tech talent but any kind of talent. And so focusing on how we can make the workforce better and create better cultures and put systems and processes in place that can make people do their jobs more efficiently, more productively and actually like them. That's to me. That's the beginning of where we get to this technology piece and what our P a Khun Dio How? Aye aye plays a role in there and how you can. How employees can partner you think of technology as a partner, as opposed to worrying about technology replacing them. So I think it's an exciting time in the workforce, and when you think about it that way, it makes a lot of sense. >> Do you think the difference in kind of the expectations that people have when they Goto work to be engaged as a function of the millennials who are looking for something that's more mission lead. Is it a function of just the competition? It's so robust that before people could get away with having, you know, maybe a less compelling work experience. What do you think is driving? The changer hasn't changed, and maybe now we're just paying more attention to it. >> You know, I think it's changed in a little bit. I think that you and I are old enough that when we were coming of age and we were working our way up the corporate ladder, you know, you kind of sold a little bit of your soul to the company store. No matter. I mean, I gripped in advertising, right, and, you know, I work crazy hours, and I loved it. But I never questioned that there were dues that I had to pay, and that's what you think. And I think that people don't necessarily expect the world on a platter. But I think especially the more skilled you are, whether it's a knowledge of tack or whatever it is in today's market, I think that ueno and again it could be someone my age. It could be someone that's twenty five. It could be someone that's forty. I can find something else. So minute, this isn't doing it for me, right? I can go find something else right now. That said, there are also people who are punching a clock. You know what I'm saying? And I don't mean ship workers. Necessarily. As much as I need to pay the mortgage, I need to get my kid's bed. You know, I don't love this job. Maybe it's a path to something. One of my daughters works for an insurance company. She has a very non glamorous job. She doesn't love it, but she knows she has to do it for X amount of time before she can be considered for this different promotion. And she is watching the clock on literally. I'm getting to that milestone and asking for her promotion. And if that doesn't happen, she'LL leave. So so I think that when you can, people don't feel like they need to be stuck, right? So I think that way. As a CZ leaders and his executives in the workforce, I think you always have to be mindful about what the work environment that you're creating is and focus on. How do we keep how do we get people? And how do we build the value props that we used when we entice them to say yes to our offer? How do we get them to stay? >> S o many things there, But But, you know, what things you just mentioned is is I don't think they accept it like we did. Maybe when we're coming up, which is, you know, you hire somebody and you hire them for the act tributes that they're bringing in the organization than it used to be. Then you give him the employee rulebook and you basically squash, you know, kind of all the individual creativity and ingenuity and enthusiasm, which is why you hired him in the first place. And we don't see that as much anymore. But at the same token, you know, not everyone's worried about robots taken their job at the same time. There's so many unfulfilled Rex out there. And as you said, it's the most competitive labor market out there. How our employers supposed to kind of square that circle because they need to bring the automation they want to keep the people happy. It's a hyper competitive market, and they need mission. But, you know, we gotta pay the bills and get the products out. >> I think that So I think that we can never forget that people that work for our companies need to pay the bills too. Right? So when you can give them something that they could be excited about, Tio dio that helps. Right? But it just kind of like I'm thinking back Teo, uh, presentation and I can't remember his name. But the V p of product did a presentation about today on a loan mortgage loan application. Okay, that has to be like one of the most boring things, right? If you're in that mortgage loan processing, do this. Do this. Do this villain this spreadsheet love about, By the way, I hate creating spreadsheets. I just want to look at a finished one. But anyway, it was so cool to just look at this, and I shot a video of it, shared it on Twitter. If you want to see what I'm talking about, but which is so cool that you can do this and do this and do this and you know you create this process. And in no time the technology has done all the work and all the calculations, and you've got a recommendation approved, not approved. And so if you're in the mortgage loan business, way to think about that leased, the way that I think to think about it is, doesn't mean that your job is going to go away. It's just like my daughter doing that not very exciting job that she's doing. If automation could fuel some of the mundane, repeatable, banal tasks so that she could focus on the other part of the equation where it's more interesting and more exciting, I think then that's really the value equation there. But I think as I think, what businesses have todo is be transparent and very honest with their employees and tell them, you know, this is our This is why we're doing this. This is what our means, and this is how it's going to add value. It we're not doing this to necessarily replace humans. This is so that we can make this work better, efficient more, you know. And I think that you know, I'll step back and say for a personal example. We went through a process last year where we evaluated all of our business processes, and we looked at how much time our employees were spending sweet track time doing certain tasks. And then we were realizing, you know, the value there. We were actually paying too much in terms of the time, investment or tasks that didn't make sense to. Then we set out integrating automation into our processes, and it was it was a big project, right? And people were kind of worried, you know, and they were kind of worried about it. But one of the things that way told them early on with, like, This is not so that we don't have work for you. This is so that we can make what it is you're doing more efficient and you could do things you like better, >> right? Right. >> And so and that has happened and way didn't lose any of our team. And a lot of those task that they were doing are now automated. They're doing stuff that they like more. So I think that I think that's really the challenge for businesses. Two is the messaging right and then involving your teams in the process, appointment of any kind of >> technology. I think it's just the soul crushing. You know, expression is so it's so valid for for these types of activities. And I think again may hear had a great stat. Four percent of US jobs required a medium level of creativity, which you know people want to get out from under that. But if we can define it as a tool and is a thinking like personal digital assistants, my body will. That used to be just my palm three was my p d. A. Right wow how no. One No one was threatened by the Palm taking the job away. So I think you know, you're right. If we can put it in the context of it's just another tool that's just gonna help you get your job done. That's a very different way to frame the problem versus kind of just ripping replace narrative, which we hear kind of over and over again. >> Well, and I think it also goes beyond Jeff. It's goes beyond, and I think that employees at every level have to understand this. It goes beyond just helping you get your job done. It really is about, you know, cos that survived today and tomorrow are the companies who transformed. And, you know, we talk a lot about digital transformation. And you know, I'm out there on the front lines all day, every day, and I can promise you there are many, many companies who are far from really understanding and embracing this and understanding what it takes from a technology standpoint and the value, that data ad and how to use that data and and the impact that that has on customer experience and all that sort of thing. So So I think it's really is about much more than this will make your jobs suck less >> right, right, Right. >> I think it's about this is how our company stay successful. This is how you helped make your job in the role you play within our organization, what you want it to be, right? And I think that you could probably telling, you know, I've been marketing because I'm always thinking about you know how I know how you spend something and I don't mean in a spin like a PR way, but I think we all have to step back and think about it in terms of the whole equation. And there are a whole lot of companies that don't exist anymore, right? You know whether you're talking about the financial services sector and you know and every business everywhere is being disrupted. I told this story. I was I was talking with me here earlier this morning and I was telling him a story about how my husband, I just bought a new car and we expected to get a loan for that car from our community. It's not a community from our our local bank local. Our local bank has been recently purchased by a bigger bank in the last couple of years, but we run all of our corporate money. I mean, everything that we've ever done is here in this way. You know your spell. ITA loan application. No problem. Give us an interest rate. No problem. But they made every part. My husband I vote travel a lot for business, and they're every part of the process required us to be somewhere together to have an official closing. To do this, to do that and it was just like way could never purchased this car because they were making it so difficult for us. So we enter death talking with the car dealer who said I'm not God. We can fix you up, financed it through their banking partner, which is a huge national bank approved in five minutes. Loan documents in five minutes. Hey, come on out. You sign this tomorrow? He consigned this when he gets, you know. And when I talked to my bank after the transaction, they said, Here's the deal. I wanted to do business with you. But when you make it difficult for a customer to give you their money, they're not gonna hesitate to give somebody else there money, Right? So So I think the banking industry is one example of the these processes that air so cumbersome that in some ways can be automated, but it just it doesn't make sense. And customers today you and I are impatient people as our people younger than we are way. No, there has to be a better way. An analogy could give us a better >> win it right, And, you know, they could use different data sets. And I mean, I've bought himself recently, and you just push the button on the phone and it takes a minute. The wheel spins and then your approved right and you're done if you're done, and it's it's a completely different experience. But the part about the digital transformation I want to follow because it came up today where a lot of times people are the integration point between these systems very similar to the example you just used and you can't digitally transform. If all these automated systems ultimately have the bottleneck through some person to take this piece Veda and stick it over there, right? So it's it's absolutely critical to get those people out of the way, right? So as you look forward twenty nineteen, what are some of the big trends beyond our P A and kind of personal digital assistants not called palm, uh, that you're seeing and that you're excited about? >> Well, I think that, you know, it's hard not to be excited about our p A. Just simply because of, you know, it's predicted to be a one point nine billion this year and to almost double by twenty twenty one. I mean, it makes sense that companies like automation anywhere doubling down on that right. It also makes sense that gigantic companies like IBM and Jo Lloyd and you know why. I mean, you >> know, hearing for >> all here, right? There's a reason for that, right? Because IBM customers want this and Microsoft's customers want this. So So I think that in general I think that technology is fueling our world. Our personal lives are business world, and I think that probably one of the biggest things that I pay attention to to that we pay attention to is that technology alone isn't the answer. It's the partnership of human beings and their skill sets and capabilities and data and automation and artificial intelligence and all those things. So I think that I think that it's an incredibly exciting time. It's kind of like, you know, you you go back to the video that we saw this morning in the bit about the Internet, and I don't know if you remember this. I don't know, probably. I don't know how much older I am than you, but, you know, I remember that Internet machine and wow, this is like I could send an email, you know? And then when you think about right how and those comments, You know that Matt Lauer and Katie Couric we're making it like that weren't down comments we didn't didn't know, right? Know the impact Internet could have would have, you know. And so I think the same is true of this kind of technology today. This this next generation of technology. So there's not just one thing I'm interested. I'm interested in Element. >> Gotta keep learning right because way have a hard time with were very linear and everything is growing exponentially. So you got a got to be willing. Teo learned the next thing because it's right around the corner, >> and I think that's so key. That's that's a great rap. I think that people who are happiest today are people who actually love change and who love learning. And I would say I would posit that most that those air not inherently things that people trades that people possess. I'm lucky because I do. You see what I'm saying? I think it's >> an interesting question, whether that's inherent. If there's just people that liked the learning, our curious all the time, and that and then they got to stick in the muds and Candice stick in the muds, change your attitude and become learners again. >> Maybe they won't. I mean, you know, I think that they're I do think that there are are people who are wired to like change and two are curious and who loved learning. And I think there are a whole bunch of people who are not. And I would I truly believe that for success in today's world and moving forward for young people and not so young people, you better get there if that's not your deal, because I don't think that I did it. And I have stumbled across conversations of people having like, you know, that's not gonna happen, you know? So I don't have to worry about it because I'm gonna be outta here by then. Or and you know what? There are a whole bunch of people that have that mindset, and that's a okay, but especially for young people making their way, >> they okay mindset. But it's not the fact that that's the problem. It's it's happening now. I mean, the future is here, and it's happening at a faster pace. Well, Shelley, we could go on and on and on, but we're going to leave it there. And I appreciate you taking a few minutes out of your day. >> Absolutely. My pleasure. >> All right. She Shelly, I'm Jeff. You're watching the Cube. Where? Automation anywhere. Imagine in Midtown Manhattan. Thanks for watching. See you next time.