>> Announcer: From theCUBE Studios in Paolo Alto and Boston, it's theCUBE covering empowering the autonomous enterprise. Brought to you by Oracle Consulting. >> Hi everybody, welcome back. You're watching theCUBE. We go out to the events, we extract the signal from the noise. This is a very special digital event and we're really covering the transformation not only of the industry, but the transformation of Oracle Consulting and its rebirth. Mike Owens is here, Group VP of Cloud Advisory and GM of Oracle Elevate which is a partnership that Oracle announced last Open World with Deloitte. And Don Schmidt is here, who's a Managing Director at Deloitte. Gents, good to see ya, welcome. >> Good to be here, Dave. >> So Don, I want to start with you. Transformation, everybody talks about that. There's a lot of trends goin' on in the industry. What do you guys see as the big gestalt transformation that's going on? >> Yeah, I think there's an inflection point right now. Everybody's been saying they want to get out of their data centers, though leaps haven't really been taking place. They've been kind of moving in small bits. We're now at the point where large transformation at scale of getting out of your data centers is now here. So we are here to try to help our clients move faster. How can we do this more effectively, cost-efficiently, and get them out of these data centers so that they can move on with their day-to-day business? >> So data centers just not an efficient use of capital for your customers is what you're saying. >> No, no there's lots of ways to do this a lot faster, cheaper, and get onto innovation. Spend your money there, not on hardware, floor space, power, cooling. >> Two very well-known brands, you guys get together. So what was the sort of impetus to get together? How's it going? Give us the update on that front. >> Oracle has been really technology focused. It was really created by technologists. And back to the point of what we're trying to do with the Cloud when you're trying to do larger transformation, those aren't some of the skills that we have. We've been bringing in some of those skills in DNA, but if you look at it as why would you try to recreate the situation? Why would you not partner with an organization if it does large business transformation, like a Deloitte? And so the impetus of that is how do we take the technology with a business transformation, pull that together, and back to the one plus one equals three from a customer. That's what they really want. So how to we actually scale that and do really big things and get big outcomes for our customers? Our partnership is not about trying to take a bunch of customers and move a couple application workloads. Our job, what we're really chartered to do is really make huge transformational leaps for our customers using the combined capabilities of the two organizations. So it's a huge paradigm for us to kind of do this. >> And in our collaboration with the two organizations, just the opposite for what Mike just said. So Deloitte wasn't really big in big IT. Business-led transformation is kind of what Deloitte's been known for, along with our cyber practice and so we needed the deep skills of the technical experts. >> So you just described what I would think of as wave one and as you keep peeling, you got the applications, you got the business process, you might have reorganizations. That's really where you guys have expertise, right? >> There's a lot of things you have to sort through and that's where the combined alvic program really synergizes itself around the tools that we have. We both have tools will help make sure we get this right. Deloitte has a product called ATADATA, Oracle has a product called Soar, they marry together properly into this transformational journey to make sure we get the discovery done right and we get the migrations done right, as well. >> Take me through a typical engagement, typical, I know, in quotes, and then how long? Take me to the point at which you start to get business value. What do I got to do to get there? >> So we see two different spectrums on a transformation and it really aligns to what are your objectives. Do you just need to get out of the data center because you're on archaic, dying hardware? Or do you want to take your time and make a little bit more of a transformational journey? Or do you want to play somewhere in the middle of that spectrum? But in either one of those we'll come in and do a discovery conversation. We'll understand what's in your data center, understand what the age or the health of your data center is, help put the customers through a business case, a TCO, how fast or how slow the journey needs to be for them, create what we call wave groups of how fast and we're going to sequence those, over time, to get out of their data center. In parallel, we're going to be doing, as Mike was saying, around all the operational aspects. So while we're doing that discovery, we want to start standing up their Cloud center of excellence. Getting Cloud operations into the organization is a different skillset for IT to have. They're going to need to retrain themselves, retool themselves in the world of Cloud. So we kind of do that in parallel. And then what we want to do is when we start a project, we want to start with a little POC or small, little group of safe applications and we can proof out the model works, move those into the Cloud and then what we want to do is we want to scale that out at its large pace, get the IT savings, get the cost cuts out of the organization. >> Do you guys have specific plays or campaigns that I can do to get started? Maybe do a little test case? Any particular offerings that? >> It's all under the program of Elevate. We've got a couple of campaigns. So the biggest one we've been talking about is around the data center transformation, so that's kind of the first campaign that we're working on together. The next one is around moving JD Edwards specific applications to Oracle's Cloud. And then the third one is around our analytics offering that Deloitte has and how we're going to market to genera, put that in it, as well. Those are our three major campaigns. >> The JDE migration, so you've got what? Situations where people have just broken systems? >> Yeah, I would say it's more of a JDE modernization. So you have an organization, right? They may have a JD, a JDE or JD Edwards instance that's really, it's older. They may be on version nine or something like that. They don't want to go all the way to SaaS 'cause they can't simplify the business processes. They need to do that but they also want to take advantage of the higher level of capabilities of Cloud computing: IoT, mobile, et cetera. So as a modernization, one of the things we're doing is an approach it together. We work with customers, depending on where they're goin' and going, "Hey, great, you can actually modernize "by taking it up to this version of JDE "through an upgrade process," but that allows you then to move it over to Oracle Cloud infrastructure which allows you to tap into all those platform services, the IoT and stuff like that to take to the next level. Then you can actually do the higher level analytics that sits on top of that. So it's really a journey where the customer wants to get. There's a various, kind of four major phases that we can do, or entry points with a customer on the JDE modernization, we kind of work them through. So that's a skill of some of the capabilities that Deloitte has is a deep JDE and as well as Oracle Consulting, and we actually are going to market that together. Matter of fact, we're even at conferences together talking about our approaches, here and in our future. >> In the analytics campaign, so it seems to me a lot of companies don't have their data driven. They want to be data driven, but they're not there yet and so their data's in silos and so I would imagine that that's all about helping them understand where the data is, breaking down, busting down those silos, and then actually putting in sort of an analytics approach that drives them from data to insight. Is that fair? >> Yeah, fair. Yeah, it's not just doin' reporting and dashboards, it's actually having KPI driven insights into their information and their data within their organizations. And so Deloitte has some pre-configured applications for HR, finance, and supply chain. >> Guys, two powerhouses. Thanks so much for explaining in theCUBE and to our audience it. Appreciate it. >> Appreciate it. >> All right, thank you everybody for watching. We'll be right back with our next guest. You're watching theCUBE from Chicago. We'll be right back after this short break. (soft electronic music)

>> Narrator: From the cube studios in Palo Alto in Boston, it's the Cube, covering empowering the autonomous enterprise brought to you by Oracle Consulting. >> Everybody. Welcome back to this special digital presentation where we are tracking the transformation of Oracle Consulting. Aaron millstone is back, he's the senior vice president of Oracle Consulting. He's joined by Jeff Davis, who's the principal at Deloitte. He's the chief Commercial Officer for Oracle at Deloitte. Gentlemen, good to see you, welcome. We see a lot of these deals. Sometimes we call them Barney deals, you know, I love you, you love me, there's a press release and that's it. But so one of the things we look for okay, is their teeth behind this? So you guys have come up with with what you call elevate. What is elevate? How did it get started? And I have some follow up questions. >> Well, elevate, really got started when Aaron and I started to look at the assets that each of the firms possessed. On the Deloitte side as Aaron suggested, we have deep capabilities and a broad range of technologies, some of them competing technologies with Oracle. At the same time, we didn't have a great deal of depth in Oracle's technical products, Oracle Cloud infrastructure, and Oracle autonomous. Our bench was not as big as Aaron's. And Aaron also had access to Oracle development at a level that we didn't have access to. So we really found ourselves in a situation where we could put those two capabilities together, and we could offer something to our clients and the broad range of Oracle customers in the field. They had access to all of the Deloitte's capabilities which include great project management, great change management, real skill around the strategic aspects of cloud migration. And Aaron had tools and had resources trained and developed around the latest Oracle Technology, they'd always be a step ahead of any SI. So together, we felt this was really a differentiation for marketplace. >> One of the things we look forward there, is there any other integration? Are you doing co-engineering? In this case maybe not co-engineering, but are there tools that you're developing that you're taking to market that you're actually leveraging? Aaron, can you talk about that a little bit and convince us that's not just the sales play? >> Yeah, sure. And Jeff alluded to some of this earlier too, right. So we definitely each had our respective tooling, right on Deloitte investments and tools. One was called ATADATA that we've seen use quite a few times now. We've invested in something we called Oracle Soar. You know, our tools are, as you'd imagine, heavily Oracle focused it's about moving Oracle technology to Oracle Cloud, ATADATA and some of the tools that Deloitte invested in are focused more comprehensively on holistically it looking at everything in a data center and everything that's across data centers and starts to develop a set of facts around this stuff. But in both cases, we actually looked at these things. And we said, "You know what if you combine these together, "we get a very comprehensive view of what exactly "it is that we're looking at with a customer". So we can tell everything from the types of traffic we see in the network to the specific versions of stuff, we can start to identify whether there's risk associated with having things not past or out of supporter, but get a very comprehensive view that's based on facts. And so you know, we took those tools and we've combined them together so that we can go into a customer and give a complete end to end view from both an Oracle and Deloitte perspective and quite frankly, it doesn't matter whether Deloitte leads or whether Oracle leads we've developed these tools together we're going to market together and we've even got you know, the templates you'd expect consultancies to have, right? So when you look at business cases, we've got joined business case templates that we've created together and that we're using actively with customers, and therefore then we're refining them and improving them each time we do it. But you know, we're at a point now where our tools are combined, our templates are combined. And we even at this you know, we were even Jeff and I were on a call earlier, yesterday actually we even got a joint, a war room that's constantly engaging with different account teams making sure that we structurally approach things in a consistent way so that we're driving business value and using the tools appropriately. >> Aaron you and I have talked about you know, data centers and building data centers and investing. It's not just it's just not a good use of capital today. There's so many other things that organizations can do. You guys have identified data center consolidation as a call it a, you know, an initiative that you're seeing customers. I wonder if we could talk about that a little bit. Is that kind of a starting point for conversations? >> Yeah, it's well it's definitely starting point right. So we call it a referred to as infrastructure lead transformation. And appetite, the appetite for that is certainly high. We were seeing an increased focus on you know, what do customers need to do to take not just a workload here and there but how do they get out of the data center business holes? So it's sort of it's a foregone conclusion, right? Like you just said, it's not really a question of should we invest in another data center? Or should we invest in up to in our data centers? The question has changed to let's move to cloud, how do we get there? And let's move in a big way. And that's, we're seeing that dialogue across all of our customers. And quit frankly, even for Oracle, it's been a learning curve for us, right? We started with an Oracle workload conversation, which is you want to move this Oracle workloads to Oracle's cloud, you want to move that Oracle workload over to cloud. And really what we're finding is it's a wholesale transformation of everything in a data center to one or more clouds right again, often, it's a multi cloud strategy and that's okay. And we you know, we were having more bigger conversations. The thing that has been really interesting as these conversations have evolved, and especially as we work with our partners at Deloitte, has been that, you know, we think that the combination of our cloud technology, the consulting services that Oracle consulting and Deloitte can bring to bear. And then Oracle's ability to finance the whole deal makes some very compelling conversations for customers, because you can walk in to a CIO to a CFO and say, Look on day one, you can actually have a lower spend than what you have today in your data center, and get a cloud transformation underway at the same time. >> Let's talk a little bit more about that business case. Is that generally what you're seeing where it starts is let's take some costs right out and then Aaron, you and I talked about maybe investing that in the future but is that really the starting point for the vast majority of customers? Let's cut some costs right away and get a payback immediately? >> So I'd like to share our perspective. Which is, you know, nobody spends money for the sake of spending money on technology, it's got to have meaningful business value. So the conversation starts with really renewable and a path to the cloud. But there's a natural opportunity for savings in consolidation that we take advantage. We're not simply shifting from your hardware to the cloud. We're actually modernizing, which will result in significant savings. But it also gives the business something that they don't have today had at a level of security and scalability and ability to run modern technology. Much faster, much better, and much more scalable. >> Jeff, can you give us a sense as to how far you're into this elevate journey, maybe thinking about a couple of customer sizer specifically or generically, kind of where you're at with them? How far along maybe even some examples that you feel are representative. >> Sure, you know, the relationship has been probably about six, close to seven months of maturity. In that time, we've had an opportunity to work on several key clients at scale. We've worked together in collaboration on one of the nation's largest retailers in the grocery business. We've worked collaboratively in aerospace and defense, and also in the hospitality industry. In these cases, what we're finding and one is each one is in a various stage of maturity. One is done, one is in midstream, and one is at the early stages. And current economic conditions we're driving a huge pipeline right now. I think our challenge right now is making sure that we identify those clients that can best take value, take advantage of our services and our joint offering to deal with that pipeline right now. What we're finding is that the savings are at least as we projected. In some cases, we're finding even more what people say they have and what people say they do isn't necessarily what you find when you get in there. And but almost every case, we're finding that there's unused equipment, unused capacity, that they currently have redundancy, low utilization of their current assets. We can go a long way in streamlining that. Plus, I can't emphasize enough that these days security is a major concern. And we're adding a layer of security that they could never achieve themselves with soft. >> How do you guys and how to customers want to approach the transaction is it a fixed fee? Is that a TNM? Is it a situation where you participate in some of the savings or the gain? How does the pricing work? >> I'll start off by saying, each deal is really custom built around what a customer really needs. What they're trying to get out of it. Right now as an example, Op-X is very important. So we're engineering deals in a way that helps customers deal with their financial challenges, especially around Op-X. There are other structures that we can put in place. We have the backing of Oracle finance, so we can be very innovative on deals. They can be when value is attained, they can be milestone based. There's just I think, a wide variety. I don't want to say unlimited, but a wide variety of different options that we can offer our clients in order to be able to deal with whatever financial challenge or opportunity they may be looking at. >> What does success look like? You know, when you sort of you know, just less than a year in, when you're two, three, four let's say five years in and you look back, what does success look like Aaron? >> So to me successful, success is going to look like we've gotten a number of these big transformation deals in play. It's in motion naturally between our organizations not necessarily driven entirely by Jeff and I going out and driving organizational behavior right away. It's more in our DNA. But more importantly, I think we've gone into, we've gone beyond the conversation of let's move workloads we've gone into conversations of let's really talk about how to reimagine your business on top of Oracle's cloud, and have an ongoing dialogue that looks at that transformation. Once we hit that point three, four or five years from now, right, that'll be a wild success Michael. >> Jeff final comment. Deloitte has been around for 175 years. This is our birthday this year and in that time, What we've learned is there's no substitute for impact and value added to our clients. In our perspective, what success looks like is client success. Find success means improved scalability of their operations. Securing their technology and their data at a substantially lower cost, so that they can focus on what their core business is, and focus less on technology, that success to Deloitte. >> Great, guys, thanks so much. Great session, we're not only witnessing the rebirth of Oracle consulting, but there's clearly a transformation going on. And it's cultural. Gentlemen, congratulations on your partnership. And thanks so much for coming in the cube. >> Thank you so much. >> Thanks for having us.

from the cube studios in Palo Alto in Boston it's the cube covering empowering the autonomous enterprise brought to you by Oracle consulting everybody welcome back you're watching the cube we go out to the events we extract the signal from the noise it's a very special digital event and we're really covering the transformation not only the industry but the transformation of Oracle consulting and its rebirth Mike Owens is here group VP of cloud advisory and GM of Oracle elevate which is a partnership at Oracle announced last open world with Deloitte and Don Schmidt is here as a managing director but Deloitte Jets good to see you welcome good to be here today so don't I want to start with you transformation right everybody talks about that there's a lot of trends going on in the industry what do you guys see is the big gestalt transformation that's going on yeah I think there's an inflection point right now all right everybody who didn't say and they want to get out of their data centers the leaves haven't really been taking place right they've been kind of moving in small bits we're now at the point where large transformation and scale of getting out of your data centers is now here so we are here to try to help our clients move faster how can we do this more effectively cost efficiently and get them out of these data centers so they can move on with their day-to-day business so data center is just not a efficient use of capital for your for your customers no no there's lots of ways to do this a lot faster cheaper and get on to innovation spend your money they're not on hardware floor space power cooling two very well-known brands you guys get together so what was the sort of impetus to get together how's it going give us the update on that front oracle has been really technology focused it was really created by technologists right and back to the point of what we're trying to do with the cloud you're trying to do larger transformation those aren't some of the skills that we have we've been brain and some of those skills in DNA but if you look at it is why would you try to recreate this situation why would you not partner with an organization who does large business transformation like a toy right and so the impetus of that is how do we take the technology with the business formation pull that together and back to the one plus one equals three for my customer right that's what they really want so how do we actually scale that and do really big things and get big outcomes for our customers our partnership is not about trying to take a bunch of customers and move on a couple application workloads our job well we're really charted to do is really make huge transformational leaps for our customers using the combined capabilities of the two organizations so there's it's a huge paradigm for us to kind of do this and in our collaboration with two organizations just the opposite for what Mike just said right so the white wasn't really big in big IT right business led transformations kind of with toys it's been known for along with our cyber practice and so we needed the the deep skills of the technical experts so you just described what I would think of as wave one and then as you keep paling you got the applications you got the business process you might have you know reorganizations that's really weird guys have expertise right there's a lot of things out to sort through right and that's where the combined elevate program really synergizes itself around the tools that we have we both have tools will help make sure we get this right right Deloitte has a protocol out of data oracle has a product called soar they marry together properly into these transformational journey to make sure we get the discovery done right and we get the migrations done right take me through a typical engagement typical and their own quotes and then how long they take me through the point at which you get start to get business value what am I got to do to get there yeah so we see two different spectrums on on a transformation and that really aligns to what are your objectives do you just need to get a data center because you're on archaic dying hardware or do you want to take that take your time and make a little bit more of a transformation journey or do you want to play somewhere in the middle of that spectrum but yeah neither one of those will come in and we'll do a discovery conversation we'll understand what's in your data center understand what the the age or the health of your your data center is help the customers through a business case TCO how fast or how slow that journey needs to be for them create will create call wave groups of how fast and we're going to sequence those over time to get out of their day Center in parallel we're going to be doing is my co-sign around all the operational aspects so while we're doing that discovery we want to start standing up there cloud center of excellence getting caught operations into their organization is it's a it's a different skill set for IT to have right they are gonna need to retrain themselves retool themselves in the world of cloud so we kind of do that in parallel now what we want to do is when we start a project we wanna start with a little POC or small little group of safe applications that we can proof out the model works move those into the cloud and then what we want to do is we want to scale at it it's a large space right get the IT savings get the cost cuts part of the organization so under the program of elevate we've we've got a couple of campaigns so the biggest one we we've been talking about is around the data center transformation so that's kind of the first campaign that we're working on together the next one is around moving JD Edwards specific applications to torquas cloud and then the third one is around our analytics offering that Deloitte has and how we're going to market do - jinora put that in as well those are three major campaigns the jde migration so you've got what situations where people have yeah it's actually more of a jte modernization or okay so you have an organization right they may have a JD at JD e or JD JD Edwards instance that's really it's older they may be on version 9 or something like that they don't want to go all the way to SAS because they can't simplify the business processes they need to do that but they also want to take advantage of the higher level capabilities of cloud computing right IOT mobile etc right so as a modernization one of the things we're doing is an approach together we worth customers depending where they go and going hey great you can actually modernize by taking up to this version of jde through an upgrade process but that allows you to then to move it over to Oracle cloud infrastructure which allows you to actually tap into all those platform services the IOT and stuff like that to take to the next level then you can actually do the higher little analytics that sits on top of that so it's really a journey where the customer wants to get there's various kind of four major phases that we can do or entry with a customer on the jde modernization we kind of work them through so that's a skill of some of the capabilities that Deloitte has as a DJ te and as well as Oracle consulting and we actually are going to market that together matter of fact we're even at conferences together talking about our approaches here at the inter future in the analytics campaign so it seems to me that a lot of companies don't have their data driven you know they want to be data-driven but they're not you're not there yet and so their data is in silos and so I would imagine that that's all about helping them understand where the data is breaking down busting down those silos and then actually putting in sort of an analytics approach that that drives their drives are some data to insights is that fair yet fair yeah it's not just doing reporting and dashboards it's it's actually having KPI driven insights into their information and their data within their organizations and so the Deloitte has some pre-configured applications for HR finance and supply chain guys from powerhouses thanks so much for explaining in the cube and to our audience appreciate it Chris Dave all right okay thank you everybody for watching we're right back with our next guest you're watching the cube from Chicago we're right back right after this short break

>> Narrator: From the Cube Studios in Palo Alto and Boston, it's the Cube, covering empowering the autonomous enterprise, brought to you by Oracle Consulting. >> Hi everybody, welcome back to this special digital presentation where we are tracking the transformation of Oracle Consulting. Aaron Millstone is back, he's the Senior Vice President of Oracle Consulting and he's joined by Jeff Davis whose Principal at Deloitte, he's the Chief Commercial Officer for Oracle at Deloitte. Gentlemen, good to see you, welcome. We see a lot of these deals, sometimes we call them Barney deals, you know, I love you, you love me, there's a press release and that's it. But, so one of the things we look for, okay, is there teeth behind this? Now, you guys have come up with what you call Elevate. What is Elevate, how did it get started? Then I have some follow up questions. >> Well, Elevate really got started when Aaron and I started to look at the assets that each of the firms possessed. On the Deloitte side as Aaron suggested, we have deep capabilities and a broad range of technologies. Some of them could be technologies with Oracle. At the same time, we didn't have a great deal of depth in Oracle's technical products, Oracle Cloud infrastructure and Oracle Autonomous. Our bench was not as big as Aaron's. And Aaron also had access to Oracle development at a level that we didn't have access to. So we really found ourselves in a situation where we could put those two capabilities together and we could offer something to our clients. And the broad rage of Oracle customers in the field, they had access to all of Deloitte's capabilities, which include great project management, great change management, real skill around the strategic aspects of cloud migration and Aaron had tools and had resources trained and developed around the latest Oracle technology. They'd always be a step ahead of any SI. So together we felt this was really a differentiation for the market place. >> One of the things we look for, is there any other integration? Are you doing co-engineering? In this case maybe not co-engineering, but are there tools that you're developing that you're taking to market that you're actually leveraging? Aaron, can you talk about that a little bit and convince us it's not just a sales play? >> Yeah, sure, and Jeff eluded to some of this earlier too, right. So, we definitely each had our respective tool line, right? Deloitte's investments and tools, one of them's called ATADATA, that we've seen used quite a few times now. We've invested in something we called Oracle Soar. You know, our tools are, as you'd imagine, heavily Oracle focused. It's about moving Oracle technology to Oracle cloud. ATADATA and some of the tools that Deloitte's invested in are focused more comprehensively on wholistically at looking at everything in a data center and everything that's across data centers and start to develop a set of facts around this stuff. But in both cases we actually looked at these things and we said, you know what if you combine these together, we get a very comprehensive view of what exactly it is that we're looking at with a customer. So we can tell everything from the types of traffic we see on the network, to the specific versions of stuff. We can start to identify whether there's risk associated with having things not patched or out of support, but again a very comprehensive view that's based on facts. And so, you know, we took those tools and we combined them together so that we can go in to a customer and give a complete end to end view from both an Oracle and Deloitte perspective. And quite frankly it doesn't matter whether Deloitte leads or whether Oracle leads, we've developed these tools together, we're going to market together, and we've even got, you know, the templates you'd expect consultancies to have right? So when you look at business cases, we've got joint business case templates that we've created together and that we're using actively with customers and then we're refining them and improving them each time we do it. But, you know, we're at a point now where our tools are combined, our templates are combined and we even at this, you know, we were even- Jeff and I were on a call earlier, yesterday actually, we even got a joint war room that's constantly engaging with different account teams and making sure that we structurally approach things in a consistent way so that we're driving business value and using the tools appropriately. >> Aaron you and I have talked about, you know, data centers and building data centers and investing; it's just not a good use of capital today. There are so many other things that organizations can do. You guys have identified data center consolidation as, I'll call it a you know, an initiative that you're seeing customers. I wondered if you could talk about that a little bit, is that kind of a starting point for conversations? >> Yeah, well it's definitely a starting point. So we call it and refer to it as infrastructure lead transformation and the appetite for that is certainly high. We're seeing an increased focus on you know, what do customers need to do to take not just a workload here and there, but how to they get out of the data center business hole? So it's sort of, it's a forgone conclusion. Like you just said, it's not really a question of should we invest in another data center, or should we invest in up-tooling our data centers? The question has changed to, let's move to cloud, how do we get there? And let's move in a big way. And that's, we're seeing that dialogue across all of our customers. And quite frankly, even for Oracle, it's been a learning curve for us, right? We started with an Oracle workload conversation, which is: do you want to move this Oracle workload to Oracle's cloud? Do you want to move that Oracle workload to Oracle's cloud? And really what we're finding is it's a wholesale transformation of everything in a data center to one or more clouds right? Again, often it's a multicloud strategy and that's okay. And we, you know, we're having more-bigger conversations. The thing that has been really interesting is these conversations have evolved and especially as we work with our partners at Deloitte, has been that, you know, we think that the combination of our cloud technology, the consulting services that Oracle consulting and Deloitte can bring to bear and then Oracle's ability to finance the whole deal, makes some very compelling conversations for customers cause you can walk in to a CIO, to a CFO and say look on day one, you can actually have a lower spend than what you have today in your data center, and get a cloud transformation on Deloitte at the same time. >> Let's talk a little bit more about that business case. Is that generally what you're seeing where it starts as let's take some costs right out? And then, Aaron, you and I talked about maybe investing that in the future, but is that really the starting point for the vast majority of customers? Let's cut some costs right away and get a payback immediately? >> So I'd like to share our perspective which is, you know, nobody spends money for the sake of spending money on technology. It's got to have meaningful business value. So the conversation starts with really renewal and a path to the cloud, but there's a natural opportunity for savings and consolidation that we take advantage. We're not simply shifting from your hardware to the cloud. We're actually modernizing, which will result in significant savings. But it also gives the business something that they don't have today at a level of security and scalability. An ability to run modern technology much faster, much better, and much more scalable. >> Jeff could you give us a sense as to how far you're into this elevate journey maybe thinking about a couple of customers either specifically or generically, you know, where you're at with them, how far along, maybe even some examples that you feel are representative. >> Sure, you know, the, the relationship has been probably about six, close to seven months of maturity. In that time we've had an opportunity to work on several key clients at scale. We've worked together in collaboration on one of the nation's largest retailers in the grocery business. We've worked collaboratively in aerospace and defense, And also in the hospitality industry. In these cases, what we're finding, and one is, each one is in a various stage of maturity. One is done, one is in midstream, and one is at the early stages. And current economic conditions are driving a huge pipeline right now. I think our challenge right now is making sure that we identify those clients that can best take advantage of our services and our joint offering to deal with that pipeline right now. What we're finding is that the savings are at least as we've projected, in some cases we're finding even more. What people say they have and what people say they do isn't necessarily what you find when you get in there. But almost every case, we're finding that there's unused equipment, unused capacity that they currently have, redundancy, low utilization of their current assets. We can go a long way in streamlining that, plus, I can't emphasize enough that, these days, security is a major concern. And we're adding a layer of security that they could never achieve themselves. I'll start off by saying each deal is really custom built around what a customer really needs, what they're trying to get out of it. Right now, as an example, OPEX is very important. So we're engineering deals in a way that helps customers deal with their financial challenges, especially around OPEX. There are other structures that we can put in place. We have the backing of Oracle finance, so we can be very innovative on deals. They can be when value is attained, they can be milestone based. There's just, I think, a wide variety, I don't want to say unlimited, but a wide variety of different options that we can offer our clients in order to be able to deal with whatever financial challenge or opportunity they may be looking at. >> What does success look like, you know, when you were, you know, just less than a year in. When you're two, three, four, let's say five years in and you look back, what does success look like, Aaron? >> So to me success will, success is going to look like we've gotten a number of these big transformation deals in play, it's in motion naturally between our organizations, not necessarily driven entirely by Jeff and I going out and driving the organizations to behave the right way, it's more in our DNA. But more importantly, I think we've gone into, we've gone beyond the conversation of let's move workloads and we've gone into conversations of let's really talk about how to reimagine your business on top of Oracle's cloud and have an ongoing dialogue that looks at that transformation. Once we hit that point, three, four, five years from now, that'll be a wild success in my book. >> Jeff? Final thoughts. >> Deloitte's been around for 175 years, this is our birthday, this year. And in that time what we've learned is there's no substitute for impact and value added to our clients. In our perspective, what success looks like is client's success, client's success means improved scalability of their operations, securing their technology and their data at a substantially lower cost, so that they can focus on what their core business is and focus less on technology. That's success to Deloitte. >> Great Guys thanks so much, great session. We're not only witnessing the rebirth of Oracle consulting, but there's clearly a transformation going on and it's cultural. Gentlemen, congratulations on your partnership and thanks so much for coming in theCUBE. >> Thank you so much. >> Thanks for having us.

>>From the cube studios in Palo Alto in Boston. It's the cube covering, empowering the autonomous enterprise brought to you by Oracle consulting. >>Hi buddy. Welcome back. You're watching the queue. We go out to the events, we extract the signal from the noise. This is a very special digital event and we're really covering the transformation, not only the industry but the transformation of Oracle consulting and its rebirth. Mike Owens is here, group VP of cloud advisory and GM of Oracle elevate, which is a partnership that Oracle alone announced last OpenWorld with Deloitte and Don Schmitt and Sierra was a managing director, but to like Jen. Good to see you. Welcome. Good to be here today. So Don want to start with you. A transformation, right? Everybody talks about that. Uh, there's a lot of trends going on in the industry. What do you guys see as the big gestalt transformation that's going on? >>Yeah, I think there's an inflection point right now, right? Everybody has been saying they want to get out of their data centers. Um, the leaps haven't really been taken place, right? They've been kind of moving in small bets. We're now at the point where large transformation at scale of getting out of your data centers is now here. So we are here to try to help our clients move faster. How can we do this more effectively, cost efficiently and get them out of these data centers so they can move on with their day to day business. >>So data center is just not an efficient use of capital for your, for your customers. >>No, no. There's lots of ways to do this all at faster, cheaper, um, and get onto innovation. Spend your money there, not on hardware floor space, power, cooling, >>two very well known brands you guys got together. So what was the sort of impetus to get together? How's it going? Give us the update on, on that front. >>Oracle has been really technology focused. It was really created by technologist, right? And back to the point of what you're trying to do with the cloud and you're trying to do larger transformation. Those aren't some of the skills that we have. We've been bringing in some of those skills in DNA. But if you look at it as why would you try to recreate this situation? Why would you not partner with an organization who does large business transformation like a Deloitte? Right? And so the impetus of that is how do we take the technology with the business transformation, pull that together and back with the one plus one equals three for my customer, right? That's what they really want. So how do we actually scale that into really big things and get big outcomes for our customers? Our partnership is not about trying to take a bunch of customers and move on a couple application workloads. Our job we're really charted to do is really make huge transformational leaps for our customers using the combined capabilities of the two organizations. So there's, it's a huge paradigm for us to kind of do this and I, and our collaboration with two organizations, just the opposite for what Mike just said, right? So delight wasn't really big in big it, right? Business led transformation is kind of what Deloitte has been known for right along with our cyber practice. And so we needed the deep skills of the technical experts. >>So you just described what I would think of is wave one and then as you keep peeling, you got the applications, you got the business process, you might have, you know, reorganizations. That's really what do you guys have expertise. >>There's a lot of things I have to sort through. Right? And that's where the combined, um, elevate program really synergizes itself around the tools that we have. We both have tools or help make sure we get this right. Right. Uh, Deloitte has a product called added data. Oracle has a product called soar. They marry together properly into these transformational journey to make sure we get the discovery done right and we get the migration's done right. >>Take me through a typical engagement, typical, I know quotes and then how long, like take me through the point at which you get start to get business value. What am I going to do to get there? Yeah. >>So we see two different spectrums on, on a transformation and it really aligns to what are your objectives, objectives? Do you just need to get out of the data center because you're on her kick dine hardware or do you want to take that, take your time and make a little bit more of a transformation journey? Or do you want to play somewhere in the middle of that spectrum? Um, but yeah, on either one of those we'll come in and we'll do a discovery conversation. We'll understand what's in your data center, understand what the, the age or the health of your, your data center is helping the customers through a business case, a TCO, how fast or how slow that journey needs to be for them. Create what we call wave groups of how fast in we're going to sequence those over time to get out of their data center. >>In parallel we're going to be doing as was Microsoft around all the operational aspects. So while we're doing that discovery, we want to start standing up their cloud, uh, center of excellence. Getting caught operations into the organization is, uh, it's a, it's a different skill set for it to have, right? They are going to need to retrain themselves, retool themselves in the world of cloud. So we kind of do that in parallel. And then what we want to do is when we start a project, we want to start with a little POC or small little group of safe applications that we can prove out the model works, move those into the cloud. And then what we want to do is we want to scale that it at it's large pace, right? Um, let's get the it savings, get the cost cuts out of the, uh, organization. It was, so under the program of elevate, we've, we've got a couple of campaigns. So the, the biggest one we we've been talking about is around the data center transformation. So that's kind of the first campaign that we're working on together. Um, the next one is around moving JD Edwards, um, specific applications to, uh, to Oracle's cloud. And then the third one is around our analytics offering that Deloitte has and how we're going to market to, to genera. Put that in as well. Those are our three major campaigns, >>the JDE migration. Um, so you've got what situations where people have just, >>yeah, and I would say it's actually more of a JDE modernization or Hey, so you have an organization, right? They may have a JD at J D or J D J D Edwards instance. That's really, it's older. They maybe version nine or something like that. They don't want to go all the way to SAS cause they can't simplify the business processes. They need to do that. But they also want to take advantage of the higher level capabilities of cloud computing, right? IOT, mobile, et cetera. Right. So as a modernization, one of the things we're doing is an approach it together. We work with customers depending on where they're go and going, Hey great. You can actually modernize by taking it to this version of JDE through an upgrade process. But that allows you to then to move it over to Oracle cloud infrastructure, which allows you to actually tap into all those platform services, the IOT and stuff like that to take to the next level. Then you can actually do the higher level analytics that sits on top of that. So it's really a journey where the customer wants to get, there's various kind of four major phases that we can do or entry points with a customer on the JDE modernization. We kind of work them through. So that's a skill of some of the capabilities that Deloitte has as a deep JDE. Um, and as well as Oracle consulting. Um, and we actually are going to market that together. Matter of fact, we're even at conferences together talking about our approaches here >>and the analytics, uh, campaign. So it seems to me that a lot of companies don't have their data driven. You know, they, they want to be data-driven, but they're not, you're not there yet. And so their data is in silos. And so I would imagine that that's all about helping them understand where the data is breaking down, busting down those silos, and then actually putting in sort of a, an analytics approach that, that drives their drivers from data to insights. Is that fair? >>Yeah. Fair. Yeah. It's not just doing reporting and dashboards. It's, it's actually having KPI driven insights into their information and their data within their organizations. And so the Deloitte has some pre-configured, uh, applications, uh, for, uh, HR, finance and supply chain >>six guys, two powerhouses. Thanks so much for explaining in the cube and to our audience. Appreciate it. Alright, thank you everybody for watching. We'll be right back with our next guest. You're watching the cube from Chicago right back, right after this short break.

>> Narrator: From the Cube Studios in Palo Alto and Boston, it's the Cube, covering empowering the autonomous enterprise, brought to you by Oracle Consulting. >> Hi everybody, welcome back to this special digital presentation where we are tracking the transformation of Oracle Consulting. Aaron Millstone is back, he's the Senior Vice President of Oracle Consulting and he's joined by Jeff Davis whose Principal at Deloitte, he's the Chief Commercial Officer for Oracle at Deloitte. Gentlemen, good to see you, welcome. We see a lot of these deals, sometimes we call them Barney deals, you know, I love you, you love me, there's a press release and that's it. But, so one of the things we look for, okay, is there teeth behind this? Now, you guys have come up with what you call Elevate. What is Elevate, how did it get started? Then I have some follow up questions. >> Well, Elevate really got started when Aaron and I started to look at the assets that each of the firms possessed. On the Deloitte side as Aaron suggested, we have deep capabilities and a broad range of technologies. Some of them could be technologies with Oracle. At the same time, we didn't have a great deal of depth in Oracle's technical products, Oracle Cloud infrastructure and Oracle Autonomous. Our bench was not as big as Aaron's. And Aaron also had access to Oracle development at a level that we didn't have access to. So we really found ourselves in a situation where we could put those two capabilities together and we could offer something to our clients. And the broad rage of Oracle customers in the field, they had access to all of Deloitte's capabilities, which include great project management, great change management, real skill around the strategic aspects of cloud migration and Aaron had tools and had resources trained and developed around the latest Oracle technology. They'd always be a step ahead of any SI. So together we felt this was really a differentiation for the market place. >> One of the things we look for, is there any other integration? Are you doing co-engineering? In this case maybe not co-engineering, but are there tools that you're developing that you're taking to market that you're actually leveraging? Aaron, can you talk about that a little bit and convince us it's not just a sales play? >> Yeah, sure, and Jeff eluded to some of this earlier too, right. So, we definitely each had our respective tool line, right? Deloitte's investments and tools, one of them's called ATADATA, that we've seen used quite a few times now. We've invested in something we called Oracle Soar. You know, our tools are, as you'd imagine, heavily Oracle focused. It's about moving Oracle technology to Oracle cloud. ATADATA and some of the tools that Deloitte's invested in are focused more comprehensively on wholistically at looking at everything in a data center and everything that's across data centers and start to develop a set of facts around this stuff. But in both cases we actually looked at these things and we said, you know what if you combine these together, we get a very comprehensive view of what exactly it is that we're looking at with a customer. So we can tell everything from the types of traffic we see on the network, to the specific versions of stuff. We can start to identify whether there's risk associated with having things not patched or out of support, but again a very comprehensive view that's based on facts. And so, you know, we took those tools and we combined them together so that we can go in to a customer and give a complete end to end view from both an Oracle and Deloitte perspective. And quite frankly it doesn't matter whether Deloitte leads or whether Oracle leads, we've developed these tools together, we're going to market together, and we've even got, you know, the templates you'd expect consultancies to have right? So when you look at business cases, we've got joint business case templates that we've created together and that we're using actively with customers and then we're refining them and improving them each time we do it. But, you know, we're at a point now where our tools are combined, our templates are combined and we even at this, you know, we were even- Jeff and I were on a call earlier, yesterday actually, we even got a joint war room that's constantly engaging with different account teams and making sure that we structurally approach things in a consistent way so that we're driving business value and using the tools appropriately. >> Aaron you and I have talked about, you know, data centers and building data centers and investing; it's just not a good use of capital today. There are so many other things that organizations can do. You guys have identified data center consolidation as, I'll call it a you know, an initiative that you're seeing customers. I wondered if you could talk about that a little bit, is that kind of a starting point for conversations? >> Yeah, well it's definitely a starting point. So we call it and refer to it as infrastructure lead transformation and the appetite for that is certainly high. We're seeing an increased focus on you know, what do customers need to do to take not just a workload here and there, but how to they get out of the data center business hole? So it's sort of, it's a forgone conclusion. Like you just said, it's not really a question of should we invest in another data center, or should we invest in up-tooling our data centers? The question has changed to, let's move to cloud, how do we get there? And let's move in a big way. And that's, we're seeing that dialogue across all of our customers. And quite frankly, even for Oracle, it's been a learning curve for us, right? We started with an Oracle workload conversation, which is: do you want to move this Oracle workload to Oracle's cloud? Do you want to move that Oracle workload to Oracle's cloud? And really what we're finding is it's a wholesale transformation of everything in a data center to one or more clouds right? Again, often it's a multicloud strategy and that's okay. And we, you know, we're having more-bigger conversations. The thing that has been really interesting is these conversations have evolved and especially as we work with our partners at Deloitte, has been that, you know, we think that the combination of our cloud technology, the consulting services that Oracle consulting and Deloitte can bring to bear and then Oracle's ability to finance the whole deal, makes some very compelling conversations for customers cause you can walk in to a CIO, to a CFO and say look on day one, you can actually have a lower spend than what you have today in your data center, and get a cloud transformation on Deloitte at the same time. >> Let's talk a little bit more about that business case. Is that generally what you're seeing where it starts as let's take some costs right out? And then, Aaron, you and I talked about maybe investing that in the future, but is that really the starting point for the vast majority of customers? Let's cut some costs right away and get a payback immediately? >> So I'd like to share our perspective which is, you know, nobody spends money for the sake of spending money on technology. It's got to have meaningful business value. So the conversation starts with really renewal and a path to the cloud, but there's a natural opportunity for savings and consolidation that we take advantage. We're not simply shifting from your hardware to the cloud. We're actually modernizing, which will result in significant savings. But it also gives the business something that they don't have today at a level of security and scalability. An ability to run modern technology much faster, much better, and much more scalable. >> Jeff could you give us a sense as to how far you're into this elevate journey maybe thinking about a couple of customers either specifically or generically, you know, where you're at with them, how far along, maybe even some examples that you feel are representative. >> Sure, you know, the, the relationship has been probably about six, close to seven months of maturity. In that time we've had an opportunity to work on several key clients at scale. We've worked together in collaboration on one of the nation's largest retailers in the grocery business. We've worked collaboratively in aerospace and defense, And also in the hospitality industry. In these cases, what we're finding, and one is, each one is in a various stage of maturity. One is done, one is in midstream, and one is at the early stages. And current economic conditions are driving a huge pipeline right now. I think our challenge right now is making sure that we identify those clients that can best take advantage of our services and our joint offering to deal with that pipeline right now. What we're finding is that the savings are at least as we've projected, in some cases we're finding even more. What people say they have and what people say they do isn't necessarily what you find when you get in there. But almost every case, we're finding that there's unused equipment, unused capacity that they currently have, redundancy, low utilization of their current assets. We can go a long way in streamlining that, plus, I can't emphasize enough that, these days, security is a major concern. And we're adding a layer of security that they could never achieve themselves. I'll start off by saying each deal is really custom built around what a customer really needs, what they're trying to get out of it. Right now, as an example, OPEX is very important. So we're engineering deals in a way that helps customers deal with their financial challenges, especially around OPEX. There are other structures that we can put in place. We have the backing of Oracle finance, so we can be very innovative on deals. They can be when value is attained, they can be milestone based. There's just, I think, a wide variety, I don't want to say unlimited, but a wide variety of different options that we can offer our clients in order to be able to deal with whatever financial challenge or opportunity they may be looking at. >> What does success look like, you know, when you were, you know, just less than a year in. When you're two, three, four, let's say five years in and you look back, what does success look like, Aaron? >> So to me success will, success is going to look like we've gotten a number of these big transformation deals in play, it's in motion naturally between our organizations, not necessarily driven entirely by Jeff and I going out and driving the organizations to behave the right way, it's more in our DNA. But more importantly, I think we've gone into, we've gone beyond the conversation of let's move workloads and we've gone into conversations of let's really talk about how to reimagine your business on top of Oracle's cloud and have an ongoing dialogue that looks at that transformation. Once we hit that point, three, four, five years from now, that'll be a wild success in my book. >> Jeff? Final thoughts. >> Deloitte's been around for 175 years, this is our birthday, this year. And in that time what we've learned is there's no substitute for impact and value added to our clients. In our perspective, what success looks like is client's success, client's success means improved scalability of their operations, securing their technology and their data at a substantially lower cost, so that they can focus on what their core business is and focus less on technology. That's success to Deloitte. >> Great Guys thanks so much, great session. We're not only witnessing the rebirth of Oracle consulting, but there's clearly a transformation going on and it's cultural. Gentlemen, congratulations on your partnership and thanks so much for coming in theCUBE. >> Thank you so much. >> Thanks for having us.

>> Narrator: Live from San Francisco It's theCUBE. Covering RSA Conference 2020, San Francisco. Brought to you by Silicon Angled Media >> Hi everyone, welcome to theCUBE's coverage here at RSA Conference 2020. I'm John Furrier, host of theCUBE We're on the floor getting all the data, sharing it with you here, Cube coverage. Got the best new generation shift happening as cloud computing goes to the whole other level. Multi-cloud, hybrid cloud changing the game. You're seeing the companies transition from an on-premises to cloud architecture. This is forcing all the companies to change. So a new generation of security is here and we've got a great guest, so a hot start-up. Masha Sedova, co-founder of Elevate Security. Welcome to theCUBE, thanks for joining us. >> Thank you so much for having me, John. >> So the next generation in what will be a multi-generational security paradigm, is kind of happening right now with the beginning of, we're seeing the transition, Palo Alto Networks announced earnings yesterday down 13% after hours because of the shift to the cloud. Now I think they're going to do well, they're well positioned, but it highlights this next generation security. You guys are a hot start-up, Elevate Security. What is the sea change? What is going on with security? What is this next generation paradigm about? >> Yeah, so it's interesting that you talk about this as next generation. In some ways, I see this as a two-prong move between, yes, we're moving more into the cloud but we're also going back to our roots. We're figuring out how to do asset management right, we're figuring out how to do patching right, and for the first time, we're figuring how to do the human element right. And that's what where we come in. >> You know, the disruption of these new shifts, it also kind of hits like this, the old expression, 'same wine, new bottle', all this, but it's a data problem. Security has always been a data problem, and we've seen some learnings around data. Visualization, wrangling, there's a lot of best practices around there. You guys are trying to change the security paradigm by incorporating a data-centric view with changing the behavior of the humans and the machines and kind of making it easier to manage. Could you share what you guys are doing? What's the vision for Elevate? >> Yeah, so we believe and we've seen, from our experience being practitioners, you can't change what you can't measure. If you don't have visibility, you don't know where you're going. And that's probably been one of the biggest pain-point in the security awareness space traditionally. We just roll out training and hope it works. And it doesn't, which is why human error is a huge source of our breaches. But we keep rolling out the same one-size fits all approach without wanting to measure or, being able to. So, we've decided to turn the problem on its head and we use existing data sets that most organizations who have a baseline level of maturity already have in place. Your end point protections, your DLP solutions, your proxies, your email security gateways and using that to understand what your employees are doing on the network to see if user generated incidents are getting better over time or getting worse. And using that as the instrumentation and the level of visibility into understanding how you should be orchestrating your program in this space. >> You know, that's a great point. I was just having a conversation last night at one of the cocktail parties here around RSA and we were debating on, we talk about the kind of breaches, you mentioned breaches, well there's the pure breach where I'm going to attack and penetrate the well fortified network. But then there's just human error, an S3 bucket laying open or some configuration problem. I guess it's not really a breach, it's kind of an open door so the kind of notion of a breach is multifold. How do you see that, because again, human error, insider threats or human error, these are enabling the hackers. >> Yeah >> This is not new. >> Yeah. >> How bad is the problem? >> It depends on what report you read. The biggest number I've seen so far is something like 95% of breaches have human error. But I honestly, I couldn't tell you what the 5% that don't include it because if you go far enough back, it's because a patch wasn't applied and there is a human being involved there because there is vulnerability in code, that's probably a secure coding practice when you're a development organization. Maybe it's a process that wasn't followed or even created in the first place. There's a human being at the core of every one of these breaches and, it needs to be addressed as holistically as our technologies and our processes right now in the space. >> The evolution of human intelligence augmented by machines will certainly help. >> That's it, yeah. >> I mean, I've got to ask you, obviously you're well-funded. Costanova Ventures well known in the enterprise space, Greg Sands and the team there, really strong, but you guys entered the market, why? I mean you guys, you and your founder both at Salesforce.com. Salesforce gurus doing a lot of work there. Obviously you've seen the large scale, first wave of the cloud. >> Yeah >> Why do the start-up? What was the problem statement you guys were going after? >> So, my co-founder and I both came from the world of being practitioners and we saw how limited the space was and actually changing human behavior, I was given some animated PowerPoints, said use this to keep the Russians out of your network, which is a practical joke unless your job is on the line, so I took a huge step back and I said, there are other fields that have figured this out. Behavioral science being one of them, they use positive reinforcement, gamification, marketing and advertisements have figured out how to engage the human element, just look around the RSA floor, and there's so many learnings of how we make decisions as human beings that can be applied into changing people's behaviors in security. So that's what we did. >> And what was the behavior you're trying to change? >> Yeah, so the top one's always that our attackers are getting into organizations, so, reducing phishing click-throughs an obvious one, increasing reporting rates, reducing malware infection rates, improving sensitive data handling, all of which have ties back to, as I was mentioning earlier, security data sources. So, we get to map those and use that data to then drive behavior change that's rooted in concepts like social proof, how are you doing compared to your peers? We make dinner decisions on that and Amazon buying decisions on that, why not influence security like that? >> So building some intelligence into the system, is there a particular market you're targeting? I mean, here people like to talk in segments, is there a certain market that you guys are targeting? >> Yeah, so the amazing thing about this is, and probably no surprise, the human element is a ubiquitous problem. We are in over a dozen different industries and we've seen this approach work across all of those industries because human beings make the same mistakes, no matter what kind of company they're in. We really work well with larger enterprises. We work well with larger enterprises because they tend to have the data sets that really provides insights into human behavior. >> And what's the business model you guys envision happening with your service product? >> We sell to enterprises and security, the CISO and the package as a whole, gives them the tools to have the voice internally in their organization We sell to Fortune 1000 companies, >> So it's a SAAS service? >> Yeah, SAAS service, yeah. >> And so what's the technology secret sauce? (laughing) >> Um, that's a great question but really, our expertise is understanding what information people need at what time and under what circumstances, that best changes their behavior. So we really are content diagnostic, we are much more about the engine that understands what content needs to be presented to whom and why. So that everyone is getting only the information they need, they understand why they need it and they don't need anything extra-superfluous to their... >> Okay, so I was saying on theCUBE, my last event was at, CIO's can have good days and bad days. They have good days, CISOs really have good days, many will say bad days, >> Masha: Yeah, it's a hard job. >> So how do I know I need the Elevate Solution? What problem do I have, what's in it for me? What do I get out of it? When do I know when to engage with you guys? >> I take a look at how many user generated incidents your (mumbles) responding to, and I would imagine it is a large majority of them. We've seen, while we were working at Salesforce and across our current customers, close to a 40% reduction rate in user generated incidents, which clearly correlates to time spent on much more useful things than cleaning up mistakes. It's also one of the biggest ROI's you can get for the cheapest investment. By investing a little bit in your organization now, the impact you have in your culture and investing in the future decision, the future mistakes that never get made, are actually untold, the benefit of that is untold. >> So you're really kind of coming in as a holistic, kind of a security data plane if you will, aggregating the data points, making a visualization in human component. >> You've got it. >> Now, what's the human touchpoint? Is it a dashboard? Is it notifications? Personalization? How is the benefit rendered for the customer? >> So we give security teams and CSOs a dashboard that maps their organization's strengths and weaknesses. But for every employee, we give personalized, tailored feedback. Right now it shows up in an email that they get on an ongoing basis. We also have one that we tailor for executives, so the executive gets one for their department and we create an executive leaderboard that compares their performance to fellow peers and I'll tell you, execs love to win, so we've seen immense change from that move alone. >> Well, impressive pedigree on your entrepreneurial background, I see Salesforce has really kind of, I consider real first generation cloud before cloud actually happened, and there's a lot of learn, it was always an Apple case, now it's AWS, but it's it's own cloud as we all know, what are the learnings that you saw from Salesforce that you said hey, I'm going to connect those dots to the new opportunity? What's the real key there? >> So, I had two major aha's that I've been sharing with my work since. One, it's not what people know, but it's what they do that matters, and if you can sit with a moment and think about that, you realize it's not more training, because people might actually know the information, but they just choose not to do it. How many people smoke, and they still know it kills them? They think that it doesn't apply to them, same thing with security. I know what I need to do, I'm just not incentivized to do it, so there's a huge motivation factor that needs to be addressed. That's one thing that I don't see a lot of other players on the market doing and one thing we just really wanted to do as well. >> So it sounds like you guys are providing a vision around using sheet learning and AI and data synthesis wrangling and all that good stuff, to be an assistant, a personal assistant to security folks, because it sounds like you're trying to make their life easier, make better decisions. Sounds like you guys are trying to distract away all these signals, >> You're right. >> See what to pay attention to. >> And make it more relevant, yeah. Well think about what Fitbit did for your own personal fitness. It curates a personal relationship based on a whole bunch of data. How you're doing, goals you've set, and all of a sudden, a couple of miles walk leads to an immense lifestyle change. Same thing with security, yeah. >> That's interesting, I love the Fitbit analogy because if you think about the digital ecosystem of an enterprise, it used to be siloed, IT driven, now with digital, everything's connected so technically, you're instrumenting a lot of things for everything. >> Yeah. >> So the question's not so much instrumentation, it's what's happening when and contextually why. >> That's it, why, that's exactly it. Yeah, you totally got it. >> Okay. I got it. >> Yeah, I can see the light bulb. >> Okay, aha, ding ding. All right, so back to the customer pain point. You mentioned some data points around KPI's that they might or things that they might want to call you so it's incidents, what kind of incidents? When do I know I need to get you involved? Will you repeat those again? >> There's two places where it's a great time to involve. Now, because of the human element is, or think about this as an investment. If you do non-investor security culture, one way or another, you have security culture. It's either hurting you or it's helping you and by hurting you, people are choosing to forego investing security processes or secure cultures and you are just increasing your security debt. By stepping in to address that now, you are actually paying it forward. The second best time, is after you realize you should have done that. Post-breaches or post incidents, is a really great time to come in and look at your culture because people are willing to suspend their beliefs of what good behavior looks like, what's acceptable and when you look at an organization and their culture, it is most valuable after a time of crisis, public or otherwise, and that is a really great time to consider it. >> I think that human error is a huge thing, whether it's as trivial as leaving an S3 bucket open or whatever, I think it's going to get more acute with service meshes and cloud-native microservices. It's going to get much more dynamic and sometimes services can be stood up and torn down without any human knowledge, so there's a lot of blind spots potentially. This brings up the question of how does the collaboration piece, because one of the things about the security industry is, it's a community. Sharing data's important, having access to data, how do you think about that as the founder of a start-up that has a 20 mile steer to the future around data access, data diversity, blind spots, how do you look at that and how do you advise your clients to think about that? >> I've always been really pro data sharing. I think it's one of the things that has held us back as an industry, we're very siloed in this space, especially as it relates to human behavior. I have no idea, as a regular CISO of a company, if I am doing enough to protect my employees, is my phishing click (mumbles), are my malware download rates above normal, below or should I invest more, am I doing enough? How do I do compared to my peers and without sharing industry stats, we have no idea if we're investing enough or quite honestly, not enough in this space. And the second thing is, what are approaches that are most effective? So let's say I have a malware infection problem, which approach, is it this training? Is it a communication? Is it positive reinforcement, is it punishment? What is the most effective to leverage this type of output? What's the input output relation? And we're real excited to have shared data with Horizon Data Breach Report for the first time this year, to start giving back to the communities, specifically to help answer some of these questions. >> Well, I think you're onto something with this behavioral science intersection with human behavior and executive around security practices. I think it's going to be an awesome, thanks for sharing the insights, Miss Masha on theCUBE here. A quick plug for your company, (mumbles) you're funded, Series A funding, take us through the stats, you're hiring what kind of positions, give a plug to the company. >> So, Elevate Security, we're three years old. We have raised ten million to date. We're based in both Berkeley and Montreal and we're hiring sales reps on the west coast, a security product manager and any engineering talent really focused on building an awesome data warehouse infrastructure. So, please check out our website, www.elevatesecurity.com/careers for jobs. >> Two hot engineering markets, Berkeley I see poaching out of Cal, and also Montreal, >> Montreal, McGill and Monterey. >> You got that whole top belt of computer science up in Canada. >> Yeah. >> Well, congratulations. Thanks for coming on theCUBE, sharing your story. >> Thank you. >> Security kind of giving the next generation all kinds of new opportunities to make security better. Some CUBE coverage here in San Francisco, at the Moscone Center. I'm John Furrier, we'll be right back after this break. (upbeat music)

(electronic music) >> From the heart of Silicon Valley, it's theCUBE! Covering, CloudNOW's 7th Annual Top Women Entrepreneurs in Cloud Innovation Awards. >> Hi, Lisa Martin with theCUBE, on the ground at Facebook headquarters. We're here for the 7th Annual CloudNOW Top Women Entrepreneurs in Cloud Innovation Awards. Our third time covering this event, and we're excited to welcome to theCube, one of tonight's winners, Masha Sedova, the co-founder of Elevate Security. Masha, welcome to theCUBE! >> Lisa, thank you so much for having me, it's really great to be here. >> And congratulations on the award. >> Thank you, thank you. >> So you are a security expert, you studied, you were a STEM kid back in school, but you had this really interesting experience when you were at Salesforce a few years ago, related to security, where you went, I think I see one of the things people have been missing where cyber security is concerned. Tell us about that aha moment. >> Yeah, absolutely. So, having grown up in the security field, there's this saying that, the human is the weakest link. And I personally never believed that, and I was like, there's got to be a way of turning this around and so, I stepped back and said, What it would look like if people wanted to do security instead of had to? What it would look like if people were champions for security, and not because we made them do it, but because each of us were invested in it? And so, I took a step back from my Computer science and computer security background, and dove into the field of behavioral science, positive psychology, and game design. And started exploring how people think, and how we make decisions, to see if I can start applying that to security. And, would you know it, there's some really amazing findings that I came across in that space. >> So you were saying, before we went on that, a pretty significant percentage of breaches are, unfortunately, caused by us humans. >> Yeah, something like 95% have a human error related to it. And if you think about cyber attacks, it's a human being attacking another human being with a bunch of technology in the middle. And if we keep solving it with just technology we're going to keep ending up making the same mistakes we have been making for decades. But if we look at the human element, and why we make mistakes, and how we let ourselves learn from them and make better mistakes and also better choices, we can actually move the needle in a really significant way. >> So, Elevate Security co-founded just a couple of years ago. Really impressive with your board. Tell us about your leadership team and the board before we get into the significance of the name. >> Yeah, absolutely. So, it's co-founded by myself and my co-founder Robert Fly. So, we have a diverse founding team. And from the very beginning we believed that embracing our diversity, in our hires would be of significant differentiator and not just the way we hire, but also the way we build our product. Because we're building products for employees of a whole bunch of companies all over the world and so it was really important to us. And so, to date we're 50% women including our engineering team and we have an all outside female board, board of directors which is a fact I'm really excited to announce today. >> Excited and proud. So when you had this idea, (clears throat) excuse me, and clearly all of the data show that, like you said if we keep throwing technology at the problem with security we're not going to solve it. >> Yeah >> What were the conversations like as a female co-founder, going in and trying to get funding for this idea in something as, hot of a topic and sensitive as cyber security? >> Yeah, you know, it was challenging. Fundraising, I think if you ask any founder you'd say, it would be challenging. I would recommend anybody going into this know your stuff, and stand up behind it, know that you have experience and an idea or a brand, that brings you to the table, brings something to the table and that you have that behind you. So, just because several VCs might say no it doesn't mean that your idea's not worth fighting for or coming to life. And so, it took us a while but we found a fantastic set of venture partners to back us who had very similar philosophies in the way they both raise money and supported entrepreneurship and it's really exciting, exciting time to be have partnered with them. >> So, one of the things you mentioned before went on was the card that your mom gave you. >> Yeah. >> I think that's so inspiring and share that with our audience for those who might have a great idea like you did but say, I keep being told no. >> Yeah, just 'cause it's hard, doesn't mean it's not worth doing. If I, were to have gotten to the end of my life and I didn't try starting a company, I knew that I was always regret it. And, that is something I definitely couldn't live with. And, the card that my mom sent me, it was in late in 2016 it said, "A ship is safe in the harbor "but that is not what ships are built for." And I realized, I had to do this. I absolutely had to start this company, I had to see where it goes and I have a unique perspective and a unique set of experiences in the world. And ideas about how this really hard problem can be solved and I want to see it come to life. And I have had the opportunity to gather an amazing team around me to help me make that vision come to life and I'm really excited to see where it goes. >> So in terms of where it's going, humans are sensitive people. >> (chuckles) Yeah. >> When you're talking with companies, >> Yeah. >> Whether they're born in the cloud companies or legacy enterprise companies and you're saying, Hey, guys it's your people, we're all human. >> Yeah. >> From a cultural response. >> Yeah. >> What's that conversation like do they understand it? And how do you help them go from those really, like we were talking about boring-- >> Yeah. >> Videos and training tutorials to actually, impacting behavior? >> Mm hmm Yeah, so there's two schools of thought in security field. It's the people who believe that human element can't be solved, that humans will always make mistakes, so we need to throw as much technology at it as possible. We've been doing that for three decades and it hasn't worked. And honestly I'm waiting for that generation to move on until we get a new set of ideas in. And what I'm seeing is the up and coming, set of security leadership coming in saying, You know what? Let's try something new, let's try something different. And, you know, I have invested in technology and it hasn't solved it. What if we try a different approach? And, the thing is, security people aren't known for our human expertise. We're good at a lot of other things, but not human expertise, and so bringing in things like behavioral science which is known for understanding how and why we make decisions is a perfect combination to solve this problem that, to date has been unsolvable. Because we really haven't been bringing in expertise outside of our field which on the topic of diversity, is exactly what we need. >> Exactly. So what are you looking forward to as we are just about in the finishing the first month of 2019? >> Oh yeah so, we'll be at RSA at the end of February, early March speaking about our brand new product Snapshot. But I'm also really excited to continue hiring out our team. We are hiring tons of engineers, so if anyone is looking please-- >> Where can they go? >> Elevatesecurity.com. >> Elevatesecurity.com. >> Mm Hmm, yeah, and so continuing to build out our team in San Francisco and in Montreal. >> Well Masha, congratulations on the award, on this really innovative idea bringing in, behavior to security. We appreciate your time and look forward to seeing more of what you guys are about to do. >> Thank you so much. >> Congratulations. We want to thank you for watching theCUBE, I'm Lisa Martin on the ground at Facebook. See you next time. 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foreign okay we're back at Falcon 2022 crowdstrike's big user conference first time in a couple of years obviously because of kova this is thecube's coverage Dave vellante and Dave Nicholson wall-to-wall coverage two days in a row Michael Rogers the series the newly minted vice president of global alliances at crowdstrike Michael first of all congratulations on the new appointment and welcome to the cube thank you very much it's an honor to be here so dial back just a bit like think about your first hundred days in this new role what was it like who'd you talk to what'd you learn wow well the first hundred days were filled with uh excitement uh I would say 18 plus hours a day getting to know the team across the globe a wonderful team across all of the partner types that we cover and um just digging in and spending time with people and understanding uh what the partner needs were and and and and it was just a it was a blur but a blast I agree with any common patterns that you heard that you could sort of coalesce around yeah I mean I think that uh really what a common thing that we hear at crowdstrike whether it's internal is extra external is getting to the market as fast as possible there's so much opportunity and every time we open a door the resource investment we need we continue to invest in resources and that was an area that we identified and quickly pivoted and started making some of those new investments in a structure of the organization how we cover Partners uh how we optimize uh the different routes to Market with our partners and yeah just a just a it's been a wonderful experience and in my 25 years of cyber security uh actually 24 and a half as of Saturday uh I can tell you that I have never felt and had a better experience in terms of culture people and a greater mission for our customers and our partners you'll Max funny a lot of times Dave we talk about this is we you know we learned a lot from Amazon AWS with the cloud you know taking something you did internally pointing it externally to Pizza teams there's shared responsibility model we talk about that and and one of the things is blockers you know Amazon uses that term blocker so were there any blockers that you identified that you're you're sort of working with the partner ecosystem to knock down to accelerate that go to market well I mean if I think about what we had put in place prior and I had the benefit of being vice president of America's prior to the appointment um and had the pleasure of succeeding my dear friend and Mentor Matthew Pauley um a lot of that groundwork was put in place and we work collectively as a leadership team to knock down a lot of those blockers and I think it really as I came into the opportunity and we made new Investments going into the fiscal year it's really getting to Market as fast as possible it's a massive Target addressable market and identifying the right routes and how to how to harness that power of we to drive the most value to the marketplace yeah what is it what does that look like in terms of alliances alliances can take a lot of shape we've we've talked to uh service providers today as an example um our Global Systems integrators in that group also what what is what does the range look like yeah I mean alliances at crowdstrike and it's a great question because a lot of times people think alliances and they only think of Technology alliances and for us it spans really any and all routes to Market it could be your traditional solution providers which might be regionally focused it could be nationally focused larger solution providers or Lars as you noted service providers and telcos global system integrators mssps iot Partners OEM Partners um and store crouchstrike store Partners so you look across that broad spectrum and we cover it all so the mssps we heard a lot about that on the recent earnings call we've heard this is a consistent theme we've interviewed a couple here today what's driving that I mean is it the fact that csos are just you know drowning for talent um and why crowdstrike why is there such an affinity between mssps and crowdstrike yeah a great question we um and you noted that uh succinctly that csos today are faced with the number one challenge is lack of resources and cyber security the last that I heard was you know in the hundreds of thousands like 350 000 and that's an old stat so I would venture to Guess that the open positions in cyber security are north of a half a million uh as we sit here today and um service providers and mssps are focused on providing service to those customers that are understaffed and have that Personnel need and they are harnessing the crowdstrike platform to bring a cloud native best of breed solution to their customers to augment and enhance the services that they bring to those customers so partner survey what tell us about the I love surveys I love data you know this what was the Genesis of the survey who took it give us the breakdown yeah that's a great question no uh nothing is more important than the feedback that we get from our partners so every single year we do a partner survey it reaches all partner types in the uh in the ecosystem and we use the net promoter score model and so we look at ourselves in terms of how we how we uh rate against other SAS solution providers and then we look at how we did last year and in the next year and so I'm happy to say that we increased our net promoter score by 16 percent year over year but my philosophy is there's always room for improvement so the feedback from our partners on the positive side they love the Falcon platform they love the crowdstrike technology they love the people that they work with at crowdstrike and they like our enablement programs the areas that they like us to see more investment in is the partner program uh better and enhanced enablement making it easier to work with crowdstrike and more opportunities to offer services enhance services to their customers dramatic differences between the types of Partners and and if so you know why do you think those were I mean like you mentioned you know iot Partners that's kind of a new area you know so maybe maybe there was less awareness there were there any sort of differences that you noticed by type of partner I would say that you know the areas or the part the partners that identified areas for improvement were the partners that that uh either were new to crowdstrike or they're areas that we're just investing in uh as as we expand as a company and a demand from the market is you know pull this thing into these new routes to Market um not not one in particular I mean iot is something that we're looking to really blow up in the next uh 12 to 18 months um but no no Common Thread uh consistent feedback across the partner base speaking of iot he brought it up before it's is it in a you see it as an adjacency to i-team it seems like it and OT used to never talk to each other and now they're increasingly doing so but they're still it still seems like different worlds what have you found and learned in that iot partner space yeah I mean I think the key and we the way we look at the journey is it starts with um Discovery discovering the assets that are in the OT environment um it then uh transitions to uh detection and response and really prevention and once you can solve that and you build that trust through certifications in the industry um you know it really is a game changer anytime you have Global in your job title first word that comes to mind for me anyway is sovereignty issues is that something that you deal with in this space uh in terms of partners that you're working with uh focusing on Partners in certain regions so that they can comply with any governance or sovereignty yeah that's that's a great question Dave I mean we have a fantastic and deep bench on our compliance team and there are certain uh you know parameters and processes that have been put in place to make sure that we have a solid understanding in all markets in terms of sovereignty and and uh where we're able to play and how that were you North America before or Americas uh Americas America so you're familiar with the sovereignty issue yeah a little already Latin America is certainly uh exposed me plenty of plenty of that yes 100 so you mentioned uh uh Tam before I think it was total available Market you had a different word for the t uh total addressable Mark still addressable Market okay fine so I'm hearing Global that's a tam expansion opportunity iot is definitely you know the OT piece and then just working better um you know better Groove swing with the partners for higher velocity when you think about the total available total addressable market and and accelerating penetration and growing your Tam I've seen the the charts in your investor presentation and you know starts out small and then grows to you know I think it could be 100 billion I do a lot of Tam analysis but just my back a napkin had you guys approaching 100 billion anyway how do you think about the Tam and what role do Partners play in terms of uh increasing your team yeah that's a great question I mean if you think about it today uh George announced on the day after our 11th anniversary as a company uh 20 000 customers and and if you look at that addressable Market just in the SMB space it's north of 50 million companies that are running on Legacy on-prem Solutions and it really provides us an opportunity to provide those customers with uh Next Generation uh threat protection and and detection and and response partners are the route to get there there is no doubt that we cannot cover 50 50 million companies requires a span of of uh of of of a number of service providers and mssps to get to that market and that's where we're making our bets what what's an SMB that is a candidate for crowdstrike like employee size or how do you look at that like what's the sort of minimum range yeah the way we segment out the SMB space it's 250 seats or endpoints and below 250 endpoints yes right and so it's going to be fairly significant so math changes with xdr with the X and xdr being extended the greater number of endpoints means that a customer today when you talk about total addressable Market that market can expand even without expanding the number of net new customers is that a fair yeah Fair assessment yep yeah you got that way in that way but but map that to like company size can you roughly what's the what's the smallest s that would do business with crowdstrike yeah I mean we have uh companies as small as five employees that will leverage crowd strike yeah 100 and they've got hundreds of endpoints oh no I'm sorry five uh five endpoints is oh okay so it's kind of 250 endpoints as well like the app that's the sweets that's it's that's kind of the Top Line we look at and then we focus oh okay when we Define SMB it's below so five to 250 endpoints right yes and so roughly so you're talking to companies with less than 100 employees right yeah yeah so I mean this is what I was talking about before I say I look around the the ecosystem myself it kind of reminds me of service now in 2013 but servicenow never had a SMB play right and and you know very kind of proprietary closed platform not that you don't have a lot of propriety in your platform you do but you they were never going to get down Market there and their Tam is not as big in my view but I mean your team is when you start bringing an iot it's it's mind-boggling it's endless how large it could be yeah all right so what's your vision for the Elevate program partner program well I I look at uh a couple things that we've we've have in place today one is um one is we've we've established for the first time ever at crowdstrike the Alliance program management office apmo and that team is focused on building out our next Generation partner program and that's you know processes it's you know uh it's it's ring fencing but it's most important importantly identifying capabilities for partners to expand to reduce friction and uh grow their business together with crowdstrike we also look at uh what we call program Harmony and that's taking all of the partner types or the majority of the partner types and starting to look at it with the customer in the middle and so multiple partners can play a role on the journey to bringing a customer on board initially to supporting that customer going forward and they can all participate and be rewarded for their contribution to that opportunity so it's really a key area for us going forward Hub and spoke model with the center of the that model is the customer you're saying that's good okay so you're not like necessarily fighting each other for for a sort of ownership of that model but uh cool Michael Rogers thanks so much for coming on thecube it was great to have you my pleasure thank you for having me you're welcome all right keep it right there Dave Nicholson and Dave vellante we'll be right back to Falcon 22 from the Aria in Las Vegas you're watching thecube foreign [Music]

>> Narrator: From around the globe, it's theCUBE with coverage of the Global .NEXT Digital Experience brought to you by Nutanix. >> Welcome back, I'm Stu Miniman and this is theCUBE's coverage of the Nutanix .NEXT Digital Experience. We've got two of the c-suite here to really dig into some of the strategy and partnerships talked at their annual user conference. Happy to welcome back to the program two of our CUBE alumni first of all, we have Tarkan Maner. He is the Chief Customer Officer at Nutanix and joining us also Rajiv Mirani, he is the Chief Technology Officer, CTO. Rajiv, Tarkan, great to see you both. Thanks so much for joining us on theCUBE. >> Great to be back. >> Good to see you. >> All right. So Tarkan talk about a number of announcements. You had some big partner executives up on stage. As I just talked with Monica about, Scott Guthrie wearing the signature red polo, you had Kirk Skaugen from Lenovo of course, a real growing partnership with Nutanix, a bunch of others and even my understanding the partner program for how you go to market has gone through a lot. So a whole lot of stuff to go into, partnerships, don't need to tackle it all here upfront, but give us some of the highlights from your standpoint. >> I'll tell this to my dear friend Rajiv and I've been really busy, last few months and last 12 months have been super, super busy for us. And as you know, the latest announcements we made the new $750 million investment from Bain capital, amazing if by 20 results, Q4, big results. And obviously in the last few months big announcements with AWS as part of our hybrid multicloud vision and obviously Rajiv and I, we're making sale announcements, product announcements, partner announcements at .NEXT. So at a high level, I know Rajiv is going to cover this a little bit more in detail, but we covered everything under these three premises. Run better, run faster and run anywhere. Without stealing the thunder from Rajiv, but I just want to give you at a high level a little bit. What excites us a lot is obviously the customer partner intimacy and all this new IP innovation and announcement also very strong, very tight operational results and operational execution makes the company really special as a independent software vendor in this multicloud era. Obviously, we are the only true independent software vendor to do not run a business in a sense with fast growth. Timed to that announcement chain we make this big announcement with Azure partnership, our Nutanix portfolio under the Nutanix cluster ran now available as Bare-Metal Service on Azure after AWS. The partnership is new with Azure. We just announced the first angle of it. Limited access customers are taking it to look at the service. We're going to have a public preview in a few months, and more to come. And obviously we're not going to stop there. We have tons of work going on with other cloud providers, as well. Tying that, obviously, big focus with our Citrix partnership globally around our end user computing business as Rajiv will outline further, our portfolio on top of our digital infrastructure, tying the data center services, DevOps services, and you user computing services, Citrix partnership becomes a big one, and obviously you're tying the Lenovo and HP partnership to these things as the core platforms to run that business. It's creating tons of opportunity and I'll cover a little bit more further in a bit more detail, but one other partnership we are also focusing on, our Google partnership and on desktop as a service. So these are all coming to get around data center, DevOps, and user competent services on top of that amazing infrastructure Rajiv and team built over the past 10 years. I see Rajiv as one of our co-founders and one side with the right another. So the business is obviously booming in multiple fronts. This, if by 2020 was a great starting point with all this investment, that bank capital $750 million, big execution, ACD transition, software transition. And obviously these cloud partnerships are going to make big differences moving forward. >> Yeah, so Rajiv, want to build off what Tarkan was just saying there, that really coming together, when I heard the strategy run better, run faster, run anywhere, it really pulled together some of the threads I've been watching at Nutanix the last couple of years. There's been some SaaS solutions where it was like, wait, I don't understand how that ties back to really the core of what Nutanix does. And of course, Nutanix is more than just an HCI company, it's software and that simplicity and the experience as your team has always said, trying to make things invisible, but help if you would kind of lay out, there's a lot of announcements, but architecturally, there were some significant changes from the core, as well as, if I'm reading it right, it feels like the portfolio has a little bit more cohesion than I was seeing a year or so ago. >> Yeah, actually the theme around all these announcements is the same really, it's this ability to run any application, whether it's the most demanding traditional applications, the SAP HANA, the Epics and so on, but also the more modern cloud native application, any kind of application, we want the best platform. We want a platform that's simple, seamless, and secure, but we want to be able to run every application, we want to run it with great performance. So if you look at the announcements that are being made around strengthening the core with the Block Store, adding things like virtual networking, as well as announcements we made around building Karbon platform services, essentially making it easier for developers to build applications in a new cloud native way, but still have the choice of running them on premises or in the cloud. We believe we have the best platform for all of that. And then of course you want to give customers the optionality to run these applications anywhere they want, whether that's a private cloud, their own private data centers and service providers, or in the public cloud and the hyperscalers. So we give them that whole range of choices, and you can see that all the announcements fit into that one theme: any application, anywhere, that's basically it. >> Well, I'd like you to build just a little bit more on the application piece. The developer conversation is something we've been hearing from Nutanix the last couple of years. We've seen you in the cloud native space. Of course, Karbon is your Kubernetes offering. So the line I used a couple of years ago at .NEXT was modernize the platform, then you can modernize all of your applications on top of it, so where does Nutanix touch the developer? You know, how does that, building new apps, modernizing my apps tie into the Nutanix discussion? >> Yeah great question, Stu. So last year we introduced Karbon for the first time. And if you look at Karbon, the initial offering was really targeted at an IT audience, right? So it's basically the goal was to make Kubernetes management itself very easy for the IT professional. So essentially, whether you were creating a Nutanix, sorry, a Karbon cluster, or scaling it out or upgrading Kubernetes itself. We wanted to make that part of the life cycle very, very simple for IT. For the developer we offered the Vanilla Kubernetes system. And this was something that developers asked us for again and again, don't go around mucking around with Kubernetes itself, we want Vanilla Kubernetes, we want to use our Kube Cuddle or the tools that we're used to. So don't go fork off and build the economic Kubernetes distribution. That's the last thing we want. So we had a good platform already, but then we wanted to take the next step because very few applications today are self contained in the sense that they run entirely within themselves without dependence on external services, especially when you're building in the cloud, you have access, suppose you're building an Amazon, you have access to RDS to manage your databases. Don't have to manage it yourself. Your object stores, data pipelines, all kinds of platform services available, which really can accelerate development of your own applications, right? So we took the stand said, look, this is good. This is important. We want to give developers the same kind of services, but we want to make it much more democratic in the sense that we want them to be able to run these applications anywhere, not just on AWS or not just on GCP. And that's really the genesis of Kubernetes platform services. We've taken the most common services people use in the cloud and made them available to run anywhere. Public cloud, private cloud, anywhere. So we think it's very exciting. >> Tarkan, we had, you and I had a discussion with one of your partners on how this hybrid cloud scenario is playing out at HP discover, of course, with the GreenLake solution. I'm curious from your standpoint, all the things that Rajiv was just talking about, that's a real change, if you think about kind of the traditional infrastructure people they're needing to move up the stack. You've got partnerships with the hyperscalers. So help explain a little bit the ripple effect as Nutanix helps customers simplify and modernize, how your partners and your channel can still participate. >> So perfect, look, as you heard from Rajiv, this is like all coming super nicely together. As Rajiv outlined, with the data center, operations and services, DevOps services, to enable that faster time to market capable, that Kubernetes offering and user services, our desktop services on top of that classical industry-leading, record-breaking digital infrastructure. That hybrid cloud infrastructure we call today. You play this game with devoting a little bit, as you remember, we used to call hyper-converged infrastructure. Now we call it of the hybrid cloud infrastructure, in a sense. All those pieces coming together nicely end-to-end, unlike any other vendor, and from a software only perspective, we're not owned by a hardware company which is making a huge difference. Gives us tremendous level of flexibility, democratization, and freedom of choice. Cloud to us is basically is not a destination. It's an operating model. You heard me say this before, as Rajiv also said. So in our strategy, when you look at it, Stu, we have a three pronged approach on top of our on-prem, marketplace on-prem capable. There's been 17,000+ customers, 7,000+ channel and strategic partners. Also as part of this big announcement, this new partner program we called Elevate, on the Elevate brand, bringing all the channel partners, ISEs, platform partners, hyperscalers, Telco XPSs, and our global market partners all in one bucket where we manage them, simply the incentives. It's a very simple way to execute that opposite Chris Kaddaras, our Chief Revenue Officer, as well as Christian Alvarez, our Chief Partner Officer sort of speaking on global goal, the channels, working together tightly with our organization on the product front to deliver this. So one key point I want to share with you, tying to what Rajiv said earlier on the multicloud area, obviously we realize customers are looking for freedom of choice. So we have our own cloud, Nutanix cloud, under the XI brand. X-I, XI brand, which is basically our own logistics, our own basically, serviceability, payment capability and our software, running off our portal partnerships like Equinix delivering that software as a service. We started with disaster recovery as a service, very fast growing business. Now we announced our GreenLake partnership with HPE in the backend that data center as a service might be actually HP GreenLake if the customer wants it. So that partnership creates huge opportunities for us. Obviously, on top of that, we have these Telco XSP partnerships. As we're announcing partnerships with some amazing source providers like OBH. You heard today from college Sudani in society general, they are not only using AWS and Azure and Nutanix on-prem and Nutanix clusters on Azure and AWS for their internal departments, but they also use a local service provider in France for data gravity and data security reasons. A French company dealing with French business and data centers, with that kind of data governance requirements within the country, within the borders of France. So in that context we are also the service provider partnerships coming in. We're going to announce a partnership with OVHS vault, which is a big deal for us. And tying to this, as Rajiv talked about, our clusters portfolio, our portfolio basically running on-prem on AWS and Azure. And we're not going to stop there obviously. So give choice to the customers. So as Rajiv said, basically, Nutanix can run anywhere. On top of that we announced just today with Capgemini, a new dev test environment is a service. Where Rajiv's portfolio, end-to-end, data center, DevOps, and some of the UC capabilities for dev test reasons can run as a service on Capgemini cloud. We have similar partnerships with HCL, similar partnerships with (indistinct) and we're super excited for this .NEXT in FI21 because of those reasons. >> Rajiv, one of the real challenges we've had for a long time is, I want to be able to have that optionality. I want to be able to live in any environment. I don't want to be stuck in an environment, but I want to be able to take advantage of the innovation and the functionality that's there. Can you give us a little bit of insight? How do you make sure that Nutanix can live these environments like the new Azure partnership and it has the Nutanix experience, yet I can take advantage of, whether it be AI or some other capabilities that a Google, an Amazon or a Microsoft has. How do you balance that? You have to integrate with all of these partners yet, not lock out the features that they keep adding. >> Right, absolutely, that's a great point, Stu. And that's something we pride ourselves on, that we're not taking shortcuts. We're not trying to create our own bubble in these hyperscalers, where we run in an isolated environment and can't interact with the rest of the services they offer. And that's primarily why we have spent the time and the effort to integrate closely with their virtual networking, with the services that they provide and essentially offer the best of both worlds. We take the Nutanix stack, the entire software stack, everything we build from top to bottom, make it available. So the same experience is there with upgrades and prism, the same experience is available on-prem and in the cloud. But at the same time, as you said, we want people to have full speed access to cloud services. There's things the cloud is doing that will be very difficult for anybody to do. I mean, the kind of thing that, say Google does with AI, or Azure does with databases. It's remarkable what these guys are doing, and you want to take advantage of those services. So for us, it's very, very important, that access is not constrained in any way, but also that customers have the time to make this journey, right? If they want to move to cloud today, they can do that. And then they can refactor and redevelop their applications over time and start consuming these sales. So it's not an all or nothing proposition. It's not that you have to refactor it, rewrite before you can move forward. That's been extremely important for us and it's really topical right now, especially with this pandemic. I think one thing all of IT has realized is that you have to be agile. You have to be able to react to things and timeframes you never thought you needed to, right. So it's not just disaster recovery, but the amount of effort that's gone in the last few months in enabling a distributed workforce, who thought it would happen so quickly? But it's a kind of agility that, an optionality that we are giving to customers that really makes it possible. >> Yeah, absolutely. Right now, things are moving pretty fast. So let me let both of you have the final word. Give us a little bit viewpoint, as things are moving fast, what's on the plate? What should we be expecting to see from Nutanix and your ecosystem through the rest of 2020, Tarkan? >> So look, heard from us, Stu, I know you're talking to multiple folks and you had this discussions with us, end-to-end, and look for the company to be successful, customer partner intimacy, IP innovation, and execution, and operational excellence. Obviously, all three things need to come together. So in a sense, Stu, we just need to keep moving. I give this analogy a lot, as Benjamin Franklin says, the human beings are divided in three categories, you know? The first one is those who are immovable. They never move. Second category, those who, you know, are movable, you can move them if you try hard. And obviously third category, those who just move. Not only themselves, but they move others, like in a sense, in a nice way to refer to Benjamin Franklin, with one of our key founders in the US, in a sense as the founders of this company, with folks like Rajiv and other executives, and some of the newcomers, we a culture, which just keeps moving and the last 12 months, you've seen some of these. And obviously going back to the announcement day, AWS, now Azure, the Capgemini announcement then test as a service around some of the portfolio that Rajiv talked about or a Google partnership on desktop as a service, deep focus on Citrix globally with Azure, Google, and ourselves on-prem, off-prem. And obviously some of the big moves were making with some of the customers, it's going to continue. This is just the beginning. I mean, literally Rajiv and I are doing these .NEXT conferences, announcements, and so on. We're actually doing calls right now to basically execute for the next 12 months. We're planning the next 12 months' execution. So we're super excited now with this new Bain Capital investment, and also the partnership, the product, we're ready to rock and roll. So look forward to seeing you soon, Stu, and we're going to have more news to cover with you. >> Yeah, exactly right, Tarkan. I think as Tarkan said we are at the beginning of a journey right now. I think the way hybrid cloud is now becoming seamless opens up so many possibilities for customers, things that were never possible before. Most people when they talk hybrid cloud, they're talking about fairly separate environments, some applications running in the public cloud, some running on premises. Applications that are themselves hybrid that run across, or that can burst from one to the other, or can move around with both app and data mobility. I think the possibilities are huge. And it's going to be many years before we see the full potential of this platform. >> Well Rajiv and Tarkan, thank you so much for sharing all of the updates, congratulations on the progress, and absolutely look forward to catching up in the near future and watching the journey. >> Thanks, Stu. >> Thank you, Stu. >> And stay with us for more coverage here from the Nutanix .NEXT digital experience. I'm Stu Miniman, and as always, thank you for watching theCUBE. (bright music)

>>from >>the Cube Studios in Palo Alto and Boston. It's the Cube covering empowering the autonomous enterprise brought to you by Oracle >>Consulting. Welcome back, everybody, to this special presentation of the Cube. We're covering the rebirth of Oracle Consulting. It's a digital event. We're going out. We're extracting the signal from the noise we happened today to be in Chicago, which is obviously the center of the country. A lot of customers here, a lot of consultants and consulting organizations here. A lot of expertise. Mike Evans is here. He's the VP for cloud advisory and general manager of Oracle. Elevate, Mike. Thanks for coming on The Cube. >>Appreciate it. Good to be here. >>So you elevate in your title. What is Oracle Elevate it or >>elevate was actually announced or cold from world last year. It's the partnership that we really had to actually take our scale of the next levels who actually did it with Deloitte Consulting. So the goal is to actually take the capabilities of both organizations. Deloitte really has functional capabilities and expertise within Oracle practice, and obviously Oracle has Oracle technical expertise. That combination that to really allows us to scale provide sort of call. The one plus one equals three effort for customers. >>You've got a decent timeline or observation. Over the past several years you joined three years ago, you were brand name companies. First of all, what attracted you to come to Oracle Consultant? >>Absolutely. So Oracle was in the point where they were doing a lot of stuff around on prim on premise software, the old RP type stuff they were doing cloud. They sort of had to have this sort of transformational moment. I was asked to come in and consulting in the early days and say, Hey, look, we're trying to transform the organization for mantra consulting over to Cloud Consulting, coming to help us with this stuff that you've worked with prior to cloud companies and help us really move the organization forward and look at things differently. So it's definitely been a journey over the last three years have taken it from early 85% of the 90% of our revenue around on Prem type of engagements to now actually splitting the organization being dedicated 100% in cloud, which is a huge transformation last >>three years. What really, what's the underpinning of Gen two Cloud. Can you give us the bumper sticker on that? >>Yeah, Well, the underpinning agenda to cloud is really if you look at the Gen One cloud was purely just infrastructure layer. Gen two is really based on a segmenting security, which is a huge problem out in the marketplace, right? So we actually have a sort of a world class way. We take segments security outside of the actual environment itself. It's completely segment, which is awesome, right? But then they also when you actually moving forward. The capability of the entire thing is built on sort of the autonomous enterprise, autonomous capabilities. Everything is sort of self healing. Self funding are not sorry, self healing and self aware that continually moves it forward. So the goal with that is, is if you have something that takes mundane tasks back to that, you have people that are no longer doing those capabilities today. So the underpinning of that, and without allows you to do is actually take that business case, and you reduce that because you're no longer having a bunch of people do things that no value add. Those people can actually move on to do back to the innovation and doing those higher level. >>So the business case is really about primarily, I would imagine about labor costs, right? I t labor costs were very labor intensive. We're doing stuff that doesn't necessarily add differentiation and value to the business. You're shifting that other tasks, right? >>Yeah, So the big components are really the overall cost of the infrastructure, what it takes to maintain the infrastructure, and that's broken up into kind of two components. One of it is typical power, physical location of building all those kinds of things and then the people to do the automation that take care of that right at the lower level. The third level is, as you continue to sort of process and automation going forward, that people capability that actually maintains the applications becomes easier because you can actually extend those capabilities out into the application, then require fewer people actually do the typical day to day things. Whether it's DB is like that, so it kind of becomes a continuous stream. There's various elements of the business case. You could sort of start with just the pure infrastructure cost and then get some of the process and automation is going forward and then actually go that even further, right? And then as organizations, a c i 01 of the questions I always have is where do you want to end on this? And they say, What are you talking about, right? It's really never done. You're on. If you're on a journey on a transformation, I go. This is the big boy Big girl conversation, right? Do you want to have an organization that actually, it stays the same from a head count standpoint? Are you trying to look to a partner to do that? Were you trying to get their operating model? What is your company trying to get you to look at, right? Because all those inflection points takes a different steps in the cloud journey. So as an advisor, as a trusted advisor, I asked those there was 1/2 a dozen or so questions. I would kind of walk through the organization through on sort of a cloud strategy, and I'll pick the path that kind of work with them. If they want to go to a manage service provider at the end, we would actually prepare someone, either bring the partner in or have associated partner. We've heard it off to, but we put the right pieces in place to make sure that that business case, >>that's interest. That's a really important point because a lot of customers would say, I don't want to reduce headcount. I want O. I'm starving for people. I want to train people Some companies may want to say Okay, I got to reduce headcount. It's a mandate, but most least in these boom times are saying I want to shift. So my point to the business cases, If you're not gonna cut people, then you have to have those people be more productive. And the example that you gave in terms of making the application developers more productive is relevant. And I won't explain this. Is that, for example, very simple example. You're I'm inferring you're gonna be able to compress the time to value, reduce lower your break, even accelerate the time to positive cash flow, if you will. That's an example of a value component to the business and part of the business case that people look at that and >>really, that's what it is. Definitely the business case and when he called. You know, when you get your rate of return, right? Um, the more that we can compress that. And I would say back to the conversation we had earlier about elevate and some of the partnerships we have with Deloitte around that a lot of that is to actually come up with enough capabilities that we can actually take the business case and actually reduce that have special, other things we can do for our customers around financing and things like that to make it easier for them, Right? We have options to make customers and actually help that business case. Some of the business cases we've seen are entire i t organizations saving 30 plus percent. Well, if you multiply that on a, you know, a large fortune 100 that may have a $1,000,000,000 budget, that's real money. >>Yeah, and okay, yes, no doubt. But then when you translate that into the business impact like you talked about the i t impact. But if you look at the business impact now, it becomes telephone numbers and actually see if it was often times just don't even believe it. But it's true, because if you can make the entire organization just, you know, 1/2 a percentage point more productive and 100,000 employees. I mean, that is that overwhelms. Actually, the i t business case. >>Yeah, and that's where that back to the sort of the steps in the business case is on the business and application side is making those folks actually more productive in the business case in saving them and adding, you know, whether it's a financial services, you're getting a new application out to market that actually generates revenue. Right? So that's sort of the trickle effect. When I look at it, I definitely look at it from a I see all the way through business. I'm a technically a business architect. That does. I t pretty damn good, >>Yeah, enables that sort of. Absolutely. How do you let's talk about this notion of continuous improvement? How are people thinking about that? Because you're talking a lot about just sort of self funding and and self progressing in a sort of organic entity that you're describing. How are people thinking about that? >>Yeah, I would say there's a little bit older map, right? But I would say that the goals what we're trying to embed back to the operating model we want to really embed is sort of a concept of a cloud center of excellence, and as part of that at the end, you have to have a set of functionality of folks that's constantly looking at the applications and or services of the different cloud providers that capability we have across the board. Everyone's got a multi cloud environment, right? How do they take those services They're probably already paying for anyways. And as the components get released, how can you continually put little pieces in there and do little micro releases? Quarterly aren't started weekly every month versus a big bang twice a year, right? Those little automation piece is continually add innovation in smaller chunks, and that's really the goal of cloud computing. And, you know, as you can actually break it up. It's no longer the big bang theory, right? I love that concept in vetting that whether you actually have a partner with some of the stuff that we're doing that actually in bed, what we call like a date to services, that that's what it is, is to support them but constantly look for different ways to include capabilities that were just released to add value on an ongoing basis. You don't have to go. Hey, great. That capability came out. It will be a next year's release. No, it could be next week, next month. >>So the outcome should be should be dramatically lowering costs, really accelerating your time to value. It really is what you're describing and we've been talking about in terms of the autonomous enterprise. It's really a prerequisite for scale, isn't it? >>It is. Absolutely >>thanks so much for coming on the Cube. Really appreciate it. Good stuff. >>Thank you very much. >>Thank you for watching. Be right back with our next guest. You're watching the Cube? We're here in Chicago covering the reverse of Oracle Consulting. I'm Dave Volante. Right back.

>>From the cube studios in Palo Alto in Boston. It's the cube covering, empowering the autonomous enterprise brought to you by Oracle consulting. >>Welcome back everybody to this special presentation of the cube where we're covering the rebirth of Oracle consulting is a digital event where we're going out, we're extracting the signal from the noise. We happen today to be in Chicago, which is obviously the center of the country. A lot of big customers here, a lot of consultants and consulting organizations here. A lot of expertise. Mike Owens is here as a group VP for cloud advisory and the general manager of Oracle elevate. Mike, thanks for coming on the queue. Appreciate it. I'm glad to be here. So I can ask you elevate in your title, what is Oracle elevate? Yeah. Oracle elevate was actually announced Oracle OpenWorld last year and it's the partnership that we really had to actually take our scale to the next level. So we actually did it with a Deloitte consulting, so the goal is to actually take the capabilities of both organizations. >>Deloitte really has functional capabilities and expertise with an Oracle practice and obviously Oracle has Oracle technical expertise. The combination of the two really allows us to scale, provide sort of, I call the one plus one equals three effort for customers. Now you've got a decent timeline or observation over the past several years. I joined three years ago. Um, you were at some brand name companies. First of all, what attracted you to come to Oracle consulting? Yeah, absolutely. So Oracle was in the point where they were doing a lot of stuff around on-prem on premise software, right? The old ERP type stuff. They were doing cloud, they sort of had to have this sort of transformational moment. Um, I was asked to come in and Oracle consulting in the early days and say, Hey look, we're trying to transform the organization from on prem consulting over to cloud consulting. >>Come in and help us with this stuff that you've worked from your prior to cloud companies and help us really move the organization forward and look at things differently. So it's definitely been a journey over the last three years of taking it from really 85% of the 90% of our revenue around on-prem type of engagements to now actually splitting the organization being dedicated a hundred percent on cloud, which is just a huge transformation the last three years. What really, what's the underpinning of gen two cloud? Can you give us sort of the bumper sticker on that? Yeah, all of the underpinning the gen two cloud is really, if you look at the gen one, cloud was purely just an infrastructure layer. Gen two was really based on a segmenting security, which is a huge problem out in the marketplace, right? So we actually have a sort of a worldclass way that we take a segment security outside of the actual environment itself. >>It's completely segmented, which is awesome, right? But then the also when you actually move it forward, the capability of the entire thing is built on sort of the autonomous enterprise autonomous capabilities. Everything is sort of self healing, self funding or not, sorry, self healing and self-aware that continually moves it forward. So the goal with that is, is if you have something that takes mundane tasks back to that, you have people that are no longer doing those capabilities today. So the underpinning of that and what that allows you to do is actually take that business case and you reduce that because you're no longer having a bunch of people do things that are no value add. Those people can actually move on to do back to the innovation and doing those higher level components. So the, >>so the business case is really about, uh, I mean primarily I would imagine about labor costs, right? It labor costs were very labor intensive. We're doing stuff that doesn't necessarily add differentiation and value to the business. You're shifting that to other tasks, right? Yeah. And so the >>patients are really the overall cost of the infrastructure, what it takes to maintain the infrastructure. And that's broken up into kind of two components. One of it is typical power, physical location, a building, all those kinds of things. And then the people that do the automations that take care of that right at the lower level. The third level is as you continue to get, um, sort of, uh, process in automation going forward, the people capability that actually maintains the applications becomes easier because you can actually extend those capabilities out into the application. Then you require fewer people to actually do the typical day to day things, whether it's DBS, et cetera like that. So it kind of becomes a continuous stream. There's various elements of the business case. You could sort of start with just the pure infrastructure cost and then get some of the, um, process and automations going forward and then actually go that even further. >>Right? And then as organizations, as a CIO, one of the questions I always have is where do you want to end on this? And they say, well, what are you talking about? Right? It's really, you're, you're on it, you're on a journey, you're on a transformation. I go, this is the big boy, big girl conversation, right? Do you want to have an organization that actually, uh, is, stays the same from the head count standpoint? Are you trying to look to a partner to do the, where are you trying to get in your operating model? What is your company trying to get you to look at? Right? Because all those inflection points, it takes a different step in the cloud journey. So as an advisor, right, as a trusted advisor, I asked those herbs are half a dozen or so questions I would kind of walk your organization through on sort of a cloud strategy and I'll pick the path that kind of works with them. And if they want to go to a managed service provider at the end, we would actually prepare someone, either bring the partner in or have an associate department. We've heard it off too, but we put the right pieces in place to make sure that that business cake works >>well. That's interesting. That's a really important point because a lot of customers would say, I don't want to reduce head count. I want to, I'm starving for people. I want to retrain people. You know, some companies may want to say, Hey, okay, I got to reduce head count. It's a mandate. But, but most, at least in these boom times are saying, I want to shift. So by point to the business cases, if you're not going to cut people, then you have to have those people be more productive. And so the, the example that you gave in terms of making the application developers more productive as is relevant, and I want to explain this is that, for example, very simple example. You're, you're, I'm inferring you're going to be able to compress the time to value. You're gonna reduce your, lower your break even, you know, accelerate the time to positive cash flow if you will. That's an example of a value component to the business and part of the business case. The people look at that and is that absolutely, absolutely. >>That's what it is. Definitely the business case and when he call it the, you know, when you get your rate of return, right. Um, the more that we can compress that. And I would say back to the conversation we had earlier about elevate and some of the partnerships we have Deloitte around that, a lot of that is to actually come up with enough capabilities that we can actually take the business case and actually reduce that and have special other things we can do for our customers. We're on financing and things like that to make it easier for them. Right. We have options to make customers and actually help that business case. Some of the business cases we've seen our entire it organization saving 30 plus percent or if you multiply that on a, you know, a large fortune 100 that may have a billion dollar budget, that's real money. >>Yeah. And okay, yes, no doubt. But then when you translate that into the business impact, like you talked about the it impact, but if you look at the business impact now it becomes telephone numbers. And actually CFOs oftentimes just don't even believe it. But it's true because if you can make the entire organization just, you know, a half a percentage point more productive and you got a hundred thousand employees, I mean that is, that overwhelms actually the it business case. >>Yeah. And that's where that back to the sort of the steps in the business case is on the business and application side is making those folks actually more productive in the business case and saving them and adding, you know, whether it's a financial services and you're getting, um, an application out to market that actually generates revenue. Right. So that's, it's sort of the trickle effect. So when I look at it, I definitely look at it from a, it all the way through business. I am a technically a business architect that does it pretty damn good. >>Yeah. And it enables that sort of business transformation. How do you, let's talk about this notion of continuous improvement. How are people thinking about that? Um, cause you're talking a lot about just sort of self-funding, um, and, and, and self progressing in a sort of an organic entity that you're describing. How are people I >>think about that? Yeah. And I would say they're kind of a little bit older map. Right. Um, but I would say that the goal is what we're trying to embed back to the operating model we want to really embed is, you know, sort of the concept of the cloud center of excellence in as part of that at the end you have to have a set of functionality to have folks that's constantly looking at the applications and or services of the different cloud providers. A capability you have across the board. Everyone's got a multicloud environment, right? How do they take those services they're probably already paying for anyways. And as the components get released, how can you continually put little pieces in there and do little micro releases. Quarterly are, sorry, weekly, you know, every month versus a big bang twice a year. Right? Those little automation pieces continually add innovation in smaller chunks. >>And that's really the goal of cloud computing. And you know, as you can actually break it up, it's no longer the big bang theory. Right. And I love that concept, embedding that, whether you actually have a partner with some of the stuff that we're doing that actually we embed what we call like a day two services that that's what it is to support them. But Austin constantly look for different ways to include capabilities that were just released to add value on an ongoing basis. You don't have to go, Hey, great, that capability came out. It will be on next year's release. No, it could be next week. It could be next month. Right. >>Well, so the outcomes should be you be dramatically lowering costs, really accelerating your time to value. It really is what you're describing and we've been talking about in terms of the autonomous, you know, enterprise. It's really a prerequisite for scale, isn't it? >>It is. Absolutely right, and so when we use the term autonomous enterprise too, I love that because that's actually the term I've been using for a few years. Even before Larry started talking about the autonomous database, I talk about that environment of constantly look at an a cloud capability and everything that you can put from a machine earlier into AI under basically basically a bit let it run itself. The more that you can do that, the higher the value can you put those people off in a higher level tasks, right? That's been going on every provider for awhile. Oracle just has the capability now within the database that takes it to the next level, right? So we still are the only organization with that put that on top of our gen two cloud where all that is built in. Um, as part of it going forward, that's where we have the upper level really at the enterprise computing level, right? We can, we can work at all types of workload, but where we are niches is really those big enterprise workloads. Cause that's where we started from data enterprise. >>I didn't want to make it a technology discussion. But you said the only, only organization, you mean the only technology company with that autonomous database capabilities, is that correct, sir? Yes. Okay. So I know others sort of talk about it, but you know, Oracle I think talks about it more forcefully. We'll dig into that and uh, and report back. Mike, thanks so much for coming on the cube. Really appreciate it. Good stuff. Thank you very much. All right, and thank you for watching. We're right back with our next guest. You watching the cube. We're here in Chicago covering the rebirth of Oracle consulting. I'm Dave Volante. We'll be right back.

>> Announcer: From theCUBE studios in Palo Alto and Boston, it's theCUBE covering, empowering the Autonomous Enterprise brought to you by Oracle Consulting. >> Welcome back everybody to this special presentation of theCUBE where we're covering The Rebirth of Oracle Consulting. It's a digital event where we're going out, we're extracting the signal from the nose. We happen today to be in Chicago which is obviously, the center of the country, a lot of big customers here, a lot of consultants and consulting organizations here, a lot of expertise. Mike Owens is here, he's a group V.P. for cloud advisory and a general manager of Oracle Elevate. Mike, thanks for coming on theCUBE. >> Hi, I appreciate it, I'm glad to be here. >> So I got to ask you, Elevate in your title, what is Oracle Elevate? >> Yeah, Oracle Elevate was actually announced Oracle Open World last year, and it's the partnership that we really had to actually take our scale the next level. So it's actually did it with Deloitte Consulting. So the goal is to actually take the capabilities of both organizations, Deloitte really has functional capabilities and expertise with an oracle practice, and obviously, Oracle has Oracle technical expertise. The combination of the two really allows us to scale, provide, what I call the one plus one equals three effort for customers. >> Now, you've got a decent timeline or observation over the past several years. I think you joined three years ago? >> Yeah. >> You were at some brand name companies. First of all, what attracted you to come to Oracle Consulting? >> Yeah, absolutely. So Oracle was in the point where they were doing a lot of stuff around on-prem, on-premise software. The old ERP type stuff, they were doing cloud, they sort of had to had this sort of transformational moment. I was asked to come in on Oracle Consulting in the early days and say, hey look, we're trying to transform the organization from on-prem consulting over to cloud consulting, come in and help us with the stuff that you've worked from your prior two cloud companies and help us really move the organization forward and look at things differently. So it's definitely been a journey over the last three years. I've taken it from really 85 percent of, the 90 percent of our revenue around on-prem type of engagements to now actually split in the organization being dedicated 100 percent on Cloud, which is a huge transformation in the last three years. >> What really, what's the underpinning of Gen 2 cloud? Can you give us sort of the bumper sticker on that? >> Yeah, all about the underpinning the Gen 2 cloud is really, if you look at the gen 1 cloud was purely just an infrastructure layer. Gen 2 is really based on a segmenting security which is a huge problem out in the marketplace. >> Mm-hmm. >> So we actually have a sort of a world-class where we take segment security outside of the actual environment itself, it's completely segment which is awesome, right? But then they also, when you actually move it forward, the capability of the entire thing is built on sort of the Autonomous Enterprise or autonomous capabilities, everything is sort of self-healing, self-funding, or not, sorry, self-healing and self-aware, that continually moves it forward. So, the goal with that is, is if you have something that takes mundane tasks back to that you have people that are no longer doing those capabilities today. So the underpinning of that, and what that allows you to do, is actually take that business case and you reduce that because you're no longer having a bunch of people do things that are no value add. Those people can actually move on to do it back to that innovation and doing those higher level components. >> So the business case is really about, I mean, primarily, I would imagine about labor cost, right? I.T., labor costs that we're very labor intensive, we're doing stuff that doesn't necessarily add differentiation of value to the business, you're shifting that to other tasks, right? >> Yeah, so the big components are really the overall cost of the infrastructure, what it takes to maintain the infrastructure and that's broken up into kind of two components. One of it is typical power, physical location, a building, all those kinds of things, and then the people that do the automations that take care of that at the lower level. The third level is, as you continue to sort of process and automation going forward, the people capability that actually maintains the applications becomes easier because you can actually extend those capabilities out into the application, then require fewer people to actually do the typical day-to-day things whether it's DBAs, et cetera, like that. So it kind of becomes a continuous stream. There's various elements of the business case, you could sort of start with just the pure infrastructure cost and then get some of the process and automations going forward and then actually go that even further. And then as organizations as a CIO, one of the questions I always have is, where do you want to end on this? And they say, well what are you talking about? It is really-- >> Dave: We're never done! >> You're on a journey, you're on a transformation, I go, this is the big-boy, big-girl conversation. Do you want to have an organization that actually, it stays the same from a headcount standpoint? Are you trying to look to a partner to do the... Were you trying to get in your operating model? What is your company trying to get you to look at, right? Because all those inflection points takes a different step in the cloud journey. So as the advisor, as the trusted advisor, I ask those half a dozen or so questions, I would kind of walk your organization through on sort of a cloud strategy and I'll pick the path, to kind of works with them and if they want to go to a managed service provider at the end, we would actually prepare someone either bring the partner in or have associated partner we put it off to. But we put the right pieces in place to make sure that that business cake works. >> Well that's interesting, that's a really important point because a lot of customers would say, I don't want to reduce head count, I'm starving for people, I want to retrain people. You know, some companies may want to say, hey, okay, I got to reduced headcount, it's a mandate. But most, at least in these boom times are saying, I want to shift. So my point to the business case is, if you're not going to, you know, cut people, then you have to have those people be more productive. >> Correct. >> The example that you gave in terms of making the application developers more productive is relevant. And I want to explain this, is that, for example, very simple example, I'm inferring you're going to be able to compress the time to value, you're going to reduce, lower your break even, you know, accelerate the time to positive cash flow, if you will. >> Absolutely. That's an example of a value component to the business, and part of the business case. Do people look at that and is that real? >> Absolutely, that's what it is. Definitely, the business case and when you call the... You know, when you get your rate of return, right? >> Mm-hmm. >> The more that we can compress that, and I would say back to the conversation we had earlier about Elevate and some of the partnerships we have with Deloitte around that, a lot of that is to actually come up with enough capabilities that we can actually take the business case and actually reduce that and have special other things we can do for our customers around financing and things like that to make it easier for them. We have options to make customers and actually help that business case. Some of the business cases we've seen are entire I.T. organization saving 30 plus percent. Well, if you multiply that on a, you know, a large Fortune 100 that may have a billion dollar budget, that's real money. >> Okay, yes, no doubt. But then, when you translate that into the business impact, like you talked about the I.T. impact, but if you look at the business impact now it becomes telephone numbers. And actually the CFOs often times just don't even believe it, but it's true. >> Yes. >> Because if you can make the entire organization just you know, a half a percentage point more productive and you got 100,000 employees, I mean, that is, that overwhelms, actually, the I.T. business case. >> Yeah, and that's where back to sort of the steps in the business case is on the business and application side is making those folks actually more productive in the business case and saving them, and adding, you know, whether it's a financial services getting an application out to market that actually generates revenue. So that's, it's sort of the trickle effect. So when I look at it, I definitely look at it from a I.T. all the way through business. I am technically a business architect that does I.T. pretty damn good. >> Yeah, and I.T enables that sort of business transformation. >> Absolutely. >> How do you... Let's talk about this notion of continuous improvement. How are people thinking about that, 'cause you're talking a lot about just sort of self-funding, and self-progressing, sort of an organic entity that you're describing. How are people thinking about that? >> Yeah, I would say they're kind of a little bit all over the map. But I would say that the goal is what we're trying to embed back to the operating model, what we want to really embed is sort of a concept of the cloud set of excellence in as part of that at the end, you have to have a set of functionality of folks that's constantly looking at the applications and or services of the different cloud providers, their capabilities you have across the board, everyone's got to multicloud environment. How do they take those services they're probably already paying for anyways, and as the components get released, how can you continually put little pieces in there and do little micro-releases quarterly? I'm sorry, weekly? You know, every month versus a big bang twice a year. Those little automation pieces continually add innovation in smaller chunks and that's really the goal of cloud computing, you know, is you can actually break it up, it's no longer the big bang theory. And I love that concept, embedding that, whether you actually have a partner with some of the stuff that we're doing that actually embed, what we call, like a day two services that that's what it is, it's to support them but us constantly, look for different ways to include capabilities that were just released, to add value on an ongoing basis. You don't have to go, hey, they're great, that capability came out, it'll be on next year's release. No, it could be next week, it could be next month. >> Well, so the outcome should be dramatically lowering costs, really accelerating your time to value. It really is, what you're describing and we've been talking about in terms of the Autonomous, you know, Enterprise. Is really a prerequisite for scale, isn't it? >> It is, absolutely. And so, when we use the term Autonomous Enterprise too, I love that because that's actually the term I've been using for a few years even before Larry started talking about the autonomous database, I talk about that environment of constantly looking at a cloud capability and everything that you can put from the machine earlier into A.I., under to basically let it run itself. The more that you can do that, the higher the value, and you can put those people off into higher level tasks. That's been going on every provider for a while. Oracle just has the capability now within the database that takes it to the next level. So we still are the only organization with that, put that on top of our Gen 2 cloud where all that is built in, as part of it going forward. That's where we have the upper level really at the enterprise computing level. We can work on all types of workload but where we are niches, is really those big enterprise workloads 'cause that's where we started from data enterprise. >> I don't want to make it a technology discussion. We said they're the only organization, you mean the only technology company with that autonomous database capabilities, is that correct? >> Yes, sir, yes. >> Okay, so I know others sort of talk about it, but, you know, Oracle I think talks about it more forcefully? >> Yes. >> We'll dig into that and report back. Mike, thanks so much for coming on theCUBE. Really, I appreciate it, good stuff. >> Anytime, thank you very much. >> All right, and thank you for watching. We're right back with our next guest, you're watching theCUBE. We're here in Chicago covering, The Rebirth of Oracle Consulting. I'm Dave Vellante, we'll be right back.

(upbeat music) >> >> Welcome back everybody to this special presentation of theCUBE where we're covering the rebirth of Oracle Consulting. It's a digital event, where we're going out, we're extracting the signal from the noise. We happen today to be in Chicago, which is obviously the center of the country, a lot of big customers here, a lot of consultants and consulting organizations here, a lot of expertise. Mike Owens is here. He is the group VP for Cloud Advisory and the General Manager of Oracle Elevate. Mike, thanks for coming on theCUBE. >> I appreciate it. Glad to be here. >> So I'm got to ask you, elevate, in your title, what is Oracle Elevate? >> Yeah, Oracle Elevate was actually announced Oracle OpenWorld last year. And it's the partnership that we really had to actually take our scale to the next level. So we actually did it with Deloitte Consulting. So the goal is to actually take the capabilities of both organizations. Deloitte really has functional capabilities and expertise, with an Oracle practice and obviously Oracle has, Oracle technical expertise. The combination the two really allows us to scale, provide sort of what I call the one plus one equals three, effort for customers. >> Now you've got a decent timeline or observation over the past several years. I think you joined three years ago, you were at some brand name companies. First of all, what attracted you to come to Oracle Consulting? >> Yeah, absolutely. So Oracle was in the point where they were doing a lot of stuff around on-prem, on-premise software, right? The old ERP type stuff, they were doing cloud, they sort of had to had this sort of transformational moment. I was asked to come in Oracle Consulting in the early days and say, "Hey, look, "we're trying to transform the organization "from on-prem consulting over to cloud consulting. "Come in and help us with this stuff "that you've worked from your prior two cloud companies, "and help us really move the organization forward "and look at things differently." So it's definitely been a journey over the last three years. I've taken it from nearly 85% of the 90% of our revenue around on-prem type of engagements, to now actually splitting the organization, being dedicated 100% on cloud, which is the huge transformation in the last three years. >> Yeah and so of course Oracle is a product company and your then CTO, Larry Ellison said, "We're going cloud first." And that happened during your tenure. You came in, I believe prior to that. What kind of effect did that have on the organization? I mean, we know from a product standpoint, but just culturally and just the mindset. >> Yeah, absolutely. It had a huge effect on the organization. They started splitting the organization to actually have be dedicated organizations, whether it's sales on product, whether it's support for product, pre sales support or our engineering and solutions architecture, and our consulting. So we've now split the organizations to primarily support those different lines of business, and what that allows us to do is actually focus that and put a lot of the stuff on cloud and moving the company a cloud first at this point. We still have a lot of organizations that do either on-prem type of work and things like that, they can't move over, that's supported, but you're going to see a larger shift of the cloud first, right? To actually move our customers and our organizations and back to what you hear a bunch of our executives talk about. We also actually use our own capabilities as well too. Whether it's AI or machine learning and the way we actually use it in our own HR systems. If I do my expense reporting, there's actually an AI bot that I can actually put stuff in there and automatically pulls it in. We actually take those capabilities and consume them ourselves because we have to believe in what we actually create as well. >> Your definition of cloud, of course, is different from the hyperscale cloud providers would say, "Hey, our cloud is hyperscale. "Put it in our cloud. "On-prem doesn't equal cloud." You guys don't buy into that obviously. Your definition is, it's the experience, wherever your data is, we're going to bring that cloud experience. Clarify that if you would. >> Yeah, I'll kind of give the Oracle version and what I've talked about for years for Oracle, or for cloud consultancy as a whole or cloud capabilities, right? So Oracle really looks at true enterprise capabilities. And it's kind of what I've been talking about for years publicly as well too. Cloud is really, when they say cloud, it's not just 100% in cloud, it's a combination that you pull from on-prem your systems and engagement. Your systems of record all get created together. Sometimes it's an ecosystem with another company, right? So the more connected we are, so cloud is really an enabler to sort of pull everything together, right? Oracle is really focused on a lot on the enterprise capabilities. Some of the other cloud providers do great on some of the systems of engagement, the smaller applications, what's sitting in someone's cell phone or hands all the time. Oracle is really around foundation of the database in data. So we start with that enterprise and come up versus creating that really snazzy application coming down to make it enterprise level. So we take at that approach. I look at cloud computing, and my definition is really different than most people and it's really around a way of doing business. And what I mean by that is, it's a business that's technology enabled specifically, right? So you have to change the way that you do business. The way that you engage with your customers, with their customers, right? The actual customer on the end line. Cloud capabilities really aren't changing your operating model, it's change the way that you organize, you govern. You can't just, if you take a great capability and move it forward, and then turn around and do it in the same way in process, that's where you lose the efficiency. If you talk about things like business case, where we see the technology itself as a standalone, will give 30% of that business case, changing the way that you operate and engage people, will actually give you the bigger benefit, right? So if you actually go forward and as we talked about a cloud transformation, not only is around changing the capabilities from the tool standpoint, it's your people and your skills and your operating model, right? So if you look at an operating model potentially has seven or eight dimensions depending on what organization you kind of talk to, right? Gartner or whatever. If you don't hit every single and understand the impacts of every portion of the operating model and make the change, you will not reap the benefits. >> And my litmus test is that experience has to be the same whether it's in your public cloud, whether it's on-prem, whether it's in a partner, multicloud, and that you guys actually came up with the notion of same, same. It took some time to actually deliver that, but do you feel like you're there now with customers that buy in and lean in? >> Yeah, absolutely. And so the concept of what I call your mess for less or picking it up and moving it over there, has no value. It could be the first step. So a cloud journey, it may give you incremental value, but it should be the first step in your journey. So if we talk about like cloud journeys, if you're going to say, no, it's the same, same, you're going to move it over there, that may give you back to the sort of the slope on the business case. That's going to give you an increment of that which should self fund then it to go okay, I'm going to take that, I'm going to decompose that. Okay, great. Now, I'm going to expand on that, I'm going to take that money to actually reinvest in automation, right? So if you move it over to infrastructure, right? Where are you going to get the automation, is really on the path's layer. All the services, the monitoring, the autonomous capabilities, all those kind of things, that's where you drive efficiency and scale. So you basically self fund with the infrastructure transformation with potentially, typical journey we see customers with right? As let's move it, let's use that funding to actually automate it, it gets more savings, we use that more for innovation. So it's kind of a continuous stream. You want to get to the point where you can actually have a continuous innovation stream. And what I mean by that is, you have a mechanism or a capability. If you look at our Gen 2 Cloud versus our Gen 1 Cloud. Gen 2 cloud actually can take advantage of all the capabilities that we have from the past layer through automation, right? And then as you do that, we actually want to have a continuous process where you constantly look for innovation and incrementally add pieces over time. It's no longer, it's a bing bing. It's just a continuous stream of innovation. >> So okay, so you've made the statement that the business case for Oracle Gen 2 Cloud is overwhelming. First of all, what really, what's the underpinning of Gen 2 Cloud? Can you give us sort of the bumper sticker on that? >> Yeah, well, the underpinning the Gen 2 Cloud is really, if you look at the Gen 1 Cloud was purely just an infrastructure layer. Gen 2 is really based on a segmenting security, which is a huge problem out in the marketplace, right Dave? So we actually have a sort of a world class way where we take this segments security outside of the actual environment itself. It's completely segmented. Which is awesome, right? But then they also, when you actually move it forward, the capability of the entire thing is built on sort of the autonomous enterprise or autonomous capabilities. Everything is sort of self healing, self funding, or no sorry, self healing and self aware that continually moves it forward. So the goal with that is, is if you have something that takes mundane tasks back to that, you have people that are no longer doing those capabilities today. So the underpinning of that, and what that allows you to do is actually take that business case, and you reduce that because you're no longer having a bunch of people do things that are no value add. Those people can actually move on to do back to the innovation and doing those higher level components. >> So the business case is really about, I mean, primarily, I would imagine about labor cost, right? IT labor costs, we're very labor intensive, we're doing stuff that doesn't necessarily add differentiation of value to the business. You're shifting that to other tasks, right? >> Yeah. So the big components are really the overall cost of the infrastructure, what it takes to maintain the infrastructure and that's broken up into kind of two components. One of it is typical power, physical location, a building, all those kinds of things. And then the people that do the automations that take care of that right? At the lower level. The third level is, as you continue to sort of process in automation going forward, the people capability that actually maintains the applications becomes easier because you can actually extend those capabilities out into the application. Then you require fewer people to actually do the typical day to day things, whether it's DBAs, et cetera, like that. So it kind of becomes a continuous stream. There's various elements of the business case, you could sort of start with just the pure infrastructure cost, and then get some of the process and automations going forward, and then actually go that even further, right? And then as organizations, as a CIO, one of the questions I always have is, where do you want to end on this? And they say, "What are you talking about?" All right? (Dave chuckles) And it's really-- >> You're never done. >> You're on a journey, you're on a transformation I go, this is the big boy, big girl conversation, right? Do you want to have an organization that actually, it stays the same from a headcount standpoint? Or are you trying to look to a partner to do the-- Where are you trying to get your operating model? What is your company trying to get you to look at, right? Because all those inflection points takes a different step in the cloud journey. So as an advisor, right? As a trusted adviser, I ask those a half a dozen or so questions, I would kind of walk your organization through on sort of a cloud strategy, and I'll pick the path that kind of works with them. And if they want to go to a managed service provider, at the end, we would actually prepare someone either bring the partner in or have an associated partner we paired it off too, but we put the right pieces in place to make sure that that business case works. >> Well, that's interesting. That's a really important point because a lot of customers would say, "I don't want to reduce headcount. "I want to, I'm starving for people. "I want to retrain people." Some companies may want to say, "Hey, okay, "I got to reduce headcount. "It's a mandate." But most at least in these boom times are saying, "I want to shift." So my point to the business case is, if you're not going to cut people, then you have to have those people be more productive. And so the example that you gave in terms of making the application developers more productive is relevant. And I want to explain this is that, for example, very simple example, I'm inferring, you're going to be able to compress the time to value, you're going to reduce, lower your breakeven, accelerate the time to positive cash flow, if you will. >> That's an example. >> Absolutely. >> Of a value component to the business and part of the business case. Do people at look is that real? >> Absolutely, that's what it is. Definitely in the business case and I want you to call it the, when you hit your rate of return, right? The more that we can compress that and I would say back to the conversation we had earlier about elevate and some of the partnerships we have with Deloitte around that, a lot of that is to actually come up with enough capabilities that we can actually take the business case and actually reduce that and have special other things we can do for our customers, we're on financing and things like that to make it easier for them, right? We have options to make customers and actually help that business case. Some of the business cases we've seen, our entire IT organization saving 30% plus. Well, if you multiply that on a large fortune 100, that may have a billion dollar budget, that's real money. >> Yeah, but and-- Okay, yes, no doubt. But then, when you translate that into the business impact, you talked about the IT impact, but if you look at the business impact now it becomes telephone numbers. And actually CFOs oftentimes just don't even believe it, but it's true. Because if you can make the entire organization just, a half a percentage point more productive and you got 100,000 employees I mean, that overwhelms actually the IT business case. >> Sure. Yeah, and that's where that back to the sort of the steps in the business case is on the business and application side is making those folks actually more productive in the business case and saving them and adding whether it's a financial services and you're getting an application out to market that actually generates revenue, right? So that's, it's sort of the trickle effect. So when I look at I definitely look at it from a IT all the way through business. I am technically a business architect that does IT pretty damn good. >> Yeah and IT enables that sort of business. >> Absolutely. >> How do you, let's talk about this notion of continuous improvement, how are people thinking about that? Because you're talking a lot about just sort of self funding, and self progressing, sort of an organic entity that you're describing. How are people thinking about that? >> Yeah, I would say they're kind of a little bit over their map, right? But I would say that the goal is what we're trying to embed back to the operating model, we want to really embed is, sort of the concept of the cloud center of excellence. And as part of that, at the end, you have to have a set of functionality of folks that's constantly looking at the applications and our services of the different cloud providers or capabilities you have across the board. Everyone's got a multicloud environment, right? How do they take those services? They're probably already paying for it anyways, and as the components get released, how can you continually put little pieces in there and do little micro releases quarterly or in sorry, weekly, every month versus a big bang twice a year, right? Those little automation pieces continually add innovation in smaller chunks. And that's really the goal of cloud computing. And as you can actually break it up. It's no longer the Big Bang Theory, right? And I love that concept. Embedding that, whether you actually have a partner, with some of the stuff that we're doing that actually embed what we call like a day two services, that that's what it is. It's to support them, but also constantly look for different ways to include capabilities that were just released to add value on an ongoing basis. You don't have to go, "Hey, great, that capability came out. "It'll be on next year's release." No, it could be next week, next month, right? >> Well, so the outcome should be dramatically lowering costs. Really accelerating your time to value. It really is what you're describing and we've been talking about in terms of the autonomous enterprise. It's really a prerequisite for scale, isn't it? >> It is, absolutely, right? And so, when we use the term autonomous enterprise, I love that because that's actually a term I've been using for a few years, even before Larry started talking about the autonomous database. I talk about that environment of constantly look at a cloud capability and everything that you can put from a machine earlier into AI under to actually, basically let it run itself. The more that you can do that, the higher the value. And you put those people off in a higher level tasks, right? That's been going on every provider for a while. Oracle just has the capabilities now within the database that takes it to the next level, right? So we still are the only organization with that. Put that on top of our Gen 2 Cloud where all that is built in, as part of it going forward, that's where we have the upper level really at the enterprise computing level, right? We can work at all types of workload, but where we are niches, is really those big enterprise workloads, because that's where we started from data enterprise. >> I don't want to make it a technology discussion but said the only organization. You mean the only technology company with that autonomous database capabilities. Is that correct? >> Mike: Yes sir, yes. >> Okay, so I know I should have sort of talk about it, but Oracle I think talks about it more forcefully. We'll dig into that and report back. Mike, thanks so much for coming on theCUBE. I really appreciate it. Good stuff. >> Thank you very much. >> And thank you for watching. We'll be right back with our next guest. You're watching theCUBE. We're here in Chicago covering the rebirth of Oracle Consulting. I'm Dave Vellante. We'll be right back. (soft music)

(upbeat music) >> Hi everybody, welcome back. You're watching theCUBE, we go out to the events we extract the signal from the noise. This is a very special digital event and we're really covering the transformation not only the industry, but the transformation of Oracle Consulting and its rebirth. Mike Owens is here Group VP of Cloud Advisory and GM of Oracle Elevate, which is a partnership that Oracle announced last Open World with Deloitte, and Don Schmidt is here, who is a Managing Director at Deloitte. Gents, good to see you, welcome. >> Good to be here Dave. >> So, Don I want to start with you. Transformation, right? Everybody talks about that, there's a lot of trends going on in the industry. What do you guys see as the big gestalt transformation that's going on? >> Yeah I think there's an inflection point right now. Everybody have been saying they want to get out their data centers. The leaves haven't really been taking place, right? They've been kind of moving in small bits. We're now at the point where large transformation at scale, of getting out of your data centers, is now here. So, we are here to try to help our clients move faster. How can we do this more effectively, cost efficiently, and get them out of these data centers so they can move on with their day to day business? >> So data centers is just not an efficient use of capital for your customers. >> No, no there's lots of ways to do this a lot faster, cheaper, and get on to innovation. Spend your money there, not on hardware, floor space, power cooling, those fun things. >> Well you guys are spending money on data centers though right? So this is a good business for you all. >> Mike: We do it on behalf of other customers though. Right? >> Yeah and that's what's happening right? My customers, they essentially want to take all this IT labor cost and shift it into R&D get them on your backs and your backs right? Is this that what you see it? You know where are we in terms of that? I mean it started ten plus years ago but it really has started to uptake right? What's driving that? What's the catalyst there? >> You know so from my perspective, I've been doing this a while. A lot of it is either organizations are driving costs or what you're also seeing is IT organizations are no longer the utility in the organization and taking the orders, you're using them to try to top line value, but to do that, they actually have to take their business and change the model of it, so they can take that money and reinvest it in what Don had talked about, investment or continuous investment. So you're starting to hit those inflection points, you know years ago a CIO would be in his job for 15, 20 years, the average tenure for a CIO is you know three to five years on average, and it's because if they're not driving innovation or driving top line growth with an organization, organizations are now starting to flip that around so you're seeing a huge inflection point, with organizations really looking for IT not to be just a back office entity anymore, to truly drive them they have to transform that back to Don's point, because that inflection point, this large data center move over is a good sort of lever to kind of get them and really use it as opportunity to transform their organization. >> And the transformations are occurring, you know within industries, but at different pace. I mean some industries have transformed radically. You think about Ride shares, and digital music and the like others are taking more time, financial services, health care, they're riskier businesses, and you know there's more government in public policy so what do you see in terms of the catalyst for transformation and is there any kind of discernible, industry variance? >> Yeah there definitely is and he's mentioned some of the more start-up kind of organizations where Cloud was right for them at the early stages. These other organizations that have built these large application stacks and have been there for years, it's scary for them to say, "Let me take this big set of equipment and applications, and move it to the Cloud." It's a big effort. Starting from scratch with start-ups, that's a little different story right? So we are kind of at a different point, there are different stages within different industries, some are faster adopters than some of the others with government regulations and some of the technologies that have to kind of catch up to be able to provide those services. >> Do people generally want to take their sort of mission-critical apps which are largely running often on Oracle infrastructure database, they want to move that into the Cloud but do they want to bring that sort of Cloud-operating model to their on-prem and maybe reduce their overall data center footprint but preserve some of that? What are you guys seeing? >> So, two different probably viewpoints. So my viewpoint is, depends on the organization, depends on the regulatory they have, and there's a lot of factors in there. But I would say, as a standard organization would take their journey, mission-critical systems are historically not the first one in there. 'Cause back to the point of changing the operating model the way you want to do business and be effective, you don't go with the crown jewels first, historically, take some other work loads learn how to work in that operating model, how you're doing things change and then you evolve some of those pieces over time. There are organizations that basically, pull the band-aid off and just go right into it, right? But a lot of large enterprises sort of that's why we talk about Cloud as a journey, right? You take this journey you have to make the journey based on what's going on back what Don had talked about the regulatory requirements in history are the right controls in place for what they need at that point. If not, okay so what's an interim step to the journey? Could you bring Cloud in those capabilities on-prem and then have some of the other stuff off-prem? So it's really situational dependent, and we actually walk a customer through and now Don's organization does the same thing. You walk them through what makes best for their journey for where they're at in the industry and what they have today and what they're trying to achieve. >> So Don Deloitte doesn't just do IT it does business transformation, right? So it's like a chicken and egg, let's say that what comes first? The chicken or the egg? The IT transformation or the business transformation? >> I don't think it's an or it's an and. So have the total conversation of where's your Cloud journey for your entire enterprise, and then decide how that's going to be played out in both in IT and in the business. How the joint conversation from an enterprise perspective. >> So let's talk a little bit about the partnership, to your very well known brands, you guys get together, so what was the sort of impetus to get together? How's it going? Give us the update on that front. >> Yeah you know so from Oracle standpoint, Oracle has been really technology focused. It was really created by technologists, right? And back to the point of what we're trying to do with the Cloud and trying to do larger transformation, those aren't some of the skills that we have. We've been bringing in some of those skills in DNA, but if you look at it as why would you try to recreate this situation? Why would you not partner with an organization who does large business transformation like Deloitte? Right? And so the impetus of that is, how do we take the technology with the business transformation, pull that together and back of the one plus one equals three for my customer, right? That's what they really want, so how do we actually scale that into really big things and get big outcomes for our customers? Our partnership is not about trying to take a bunch of customers and move a couple application work loads. Our job, what we're really charted to do is make huge transformational leaps for our customers, using the combined capabilities of the two organizations. So this it's a hug paradigm for us to kind of do this. >> And in our collaboration with the two organizations just the opposite from what Mike just said right? So Deloitte wasn't really big in big IT, right? Business led transformations kind of what Deloitte's been known for, along with our cyber practice, and so we needed the deep skills of the technical experts. >> Right, so take me through what transformation engagement looks like. They don't call you up and say, "Hey want to buy me some transformation." Right? Where does it start? Who are the stake holders? How long does it take? I mean it could be multi year, I presume and never ends maybe but you want to get to business value first, so let's shorten up the time frame. Take me through typical engagement. Typical I know in quotes. And then, how long like take me through the point at which you start to get business value. What do I got to do to get there? >> Yeah so we see two different spectrums on a transformation. And it really aligns to what are your objectives. Do you just need to get out of the data center because you're on archaic dying hardware? Or do you want to take that, take your time and make a little bit more of a transformation journey? Or do you want to play somewhere in the middle of that spectrum? But on either one of those we'll come in and we'll do a discovery conversation. We'll understand what's in your data center, understand what the age or the health of your data center is, help the customers through, business case, TCO, how fast or how slow that journey needs to be for them, crave look our wave groups of how fast and we're going to sequence those over time to get out of their data center. In parallel we're going to be doing as Mike was saying running all the operational aspects. So while we're doing that discovery, we want to start standing up their Cloud center of excellence. Getting Cloud operations into the organization is a different skill set for IT to have, right? They're going to need to retrain themselves, retool themselves in the world of Cloud. So we kind of do that in parallel and then what we want to do is when we start a project, we want to start with a little POC or small little group of safe applications that we can prove how the model works. Move those into the Cloud, and then what we want to do is we want to scale at it, its large pace, right? Get the IT savings, get the cost cuts out of the organization. >> So I cleaned out my barn this weekend and the first thing I did is I got a dumpster. So I could throw some stuff out. So, is that part of the equation like getting rid of stuff? Is that part of the assessment? You know what's not delivering value that you can live without? >> Absolutely right, so there is kind of things that are just going to not go to Cloud, right? No longer need it, it's just laying around in the side, just get rid of that and move forward. >> And earlier one you'll see there's models depends you hear there's the 6 Rs, the 7 Rs and it's really the journey to Cloud it's almost you look at your status is it going to get re-platformed, is it going to get re-hosted, is it going to get retired back to your point. And if it's had something that's an appliance, right? That's something you're not going to put out to Cloud. Okay keep that in your data center. I have something that's so old, I hope it dies in the next two years. Don't spend the money move it to Cloud, let it die over the next two years. So back to the point, you kind of take this discovery and you go, where do things fall on the spectrum? And each one actually has a destination and a lever that you're going to pull, right? And if you're going to retire things okay so out of the business case, those are status quo for the next you're going to kill it over three years, right? Re-platform re-host means different things that they're going to take, right? Whether they do just to infrastructure or take advantage of PaaS or they'll go, "I'm going to blow up the entire application who directed to Cloud native services." Right? As you go through that journey you kind of map that out for them through the discovery process, and that tells you how much value you're going to get based on what you're going to do. >> But boy, this starts to get deep I mean as you used to peel the onions. So you just described what I would think of as wave 1. And then as you keep peeling you got the applications, you got the business process, you might have, reorganizations that's really where you guys have expertise, right? >> Well combined right? 'Cause yeah we're on the organizational side of things, but yeah there's a lot of things you have to sort through, right? And that's where the combined Elevate program really synergizes itself around the tools that we have. We both have tools that will help make sure we get this right, right? Deloitte has a product called Atadata, Oracle has a product called Soar, they married together properly into this transformational journey, to make sure we get the discovery done right and we get the migrations done right as well. >> Well you also have a lot of different stake holders, than you know, let's face it P&L Managers are going to try to hold on to their P&L. So you've got to bring in the senior executives. Clearly the CIOs involved is the CFO, CSWE. Who are the stake holders that you bring together in the room to kick this thing off? >> Depends on the message and depends on the outcome right? So if it's I need to get out of my data center, my data center strategy, historically the CIO. If it's there's an overall cost reduction and I want to re-implement my cost into innovating the business, sometimes that starts the CEO, CFO levels, right? >> Dave: Sure. >> So depends on that one but it is absolutely, back to your point of, the people want to hold their P&L huggers or kind of hold the cost or whatever. And one of the things, if you're not having the right conversations with people at the right level, the analogy that I've used for years is sometimes you're talking to a turkey about thanksgiving, right? So if you're trying to actually help transform and the entity is feeling that they're impacted by that negatively, even though there's a senior direction, so working through the right levels the organization to make sure you're showing how you're enabling them, it's key it's part of this journey. Helping them understand the future and how it's valuable, 'cause otherwise you'll get people that push back, even though it's the right thing for the company. We've seen that time and time again. >> Well it's potentially a huge engagement, so do you guys have specific plays or campaigns that you know I can do to get started maybe do a little test case, any particular offerings that-- >> Mike: I think-- >> Do you want to talk about the campaigns? >> So ]s under the program of Elevate, we've got a couple of campaigns. So the biggest one we've been talking about is around the data center transformation, so that's kind of the first campaign that we're working on together. The next one is around moving JD Edwards specific applications to Oracle's Cloud. And then the third one is around our analytics offering that Deloitte has and how we're going to market through to general put that in as well. Those are our three major campaigns. >> So data center transformation we hit it pretty hard. I'm sorry the third one was Cloud-- >> Analytics. >> Sorry analytics right okay which is kind of an instate that everybody wants to get to. The JDE migration, so you've got what, situations where people have just, the systems. >> And I would say it's actually more of a JDE modernization, alright? >> Okay. >> So you have an organization, right? They may have a JDE or JD Edwards instance that's really it's older, they're maybe on version nine or something like that, they don't want to go all the way to SaaS 'cause they can't simplify the business processes. They need to do that, but they also want to take advantage of the higher level capabilities of Cloud computing, right? IOT, Mobil, et cetera right? So as a modernization, one of the things we're doing is an approach together we work with customers depending where they're going and go hey great, you can actually modernize by taking up this version of JDE through an upgrade process, but that allows you then to move it over to Oracle Cloud infrastructure, which allows you to actually tap into all those platform services, the IOT and stuff like that to take to the next level. Then you can actually do the higher level analytics that sits on top of that. So it's really a journey where the customer wants to get. There's a various kind of four major phases that we can do or entry points with the customer on the JDE modernization, we kind of work them through. So that's a skill of some of the capabilities that Deloitte has as a deep JDE, and as well as Oracle Consulting, and we actually are going to market that together, matter of fact, we're even at conferences together, talking about our approaches here and our future. >> Okay. So that'll allow you to get to a Cloud PaaS layer that'll allow you to sort of modernize that and get out of the sort of technical debt that's built up. >> Where customers are not ready to maybe move their entire data center, right? This gets them on the journey, right? That's the important pieces. We want to get them on the Cloud journey. >> In the analytics campaign, so it seems to me that a lot of companies don't have their data driven, they want to be data driven, but they're not there yet. And so, their data's in silos and so I would imagine that that's all helping them understand where the data is, breaking down, busting down those silos and then actually putting in sort of an analytics approach that drives their, drives us from data to insights. Is that fair? >> Yeah fair. Yeah it's not just doing reporting and dashboards it's actually having KPI-driven insights into their information and their data within their organizations. And so Deloitte has some pre-configured applications for HR, finance, and supply chains. >> So the existing EDW for example would be fitter into that, but then you've got agile infrastructure and processes that you're putting in place, bringing in AI and machine intelligence. That's kind of the future state that you're in. >> And it also has, they look at the particular that's one of the things we like about the other stuff that Deloitte has done. They've actually done the investment of the processes back into those particular business units that they do and actually have KPI-driven ones it prebuilt configurations that actually adds value. These are the metrics that should be driving an HR organization. Here's the metrics that should be driving finance. So rather than doing better analytics, hey help me write my report better. No, we're going to help you transform the way you should be running your business from a business financial transformation, that's why the partnership with Deloitte. So it's really changing the game of true analytics, not better BI. >> Right okay, guys, two power houses. Thanks so much for explaining in The Cube and to our audience, appreciate it. (mumbling) >> Alright, thank you everybody for watching we'll be right back with our next guest you're watching The Cube, from Chicago. We'll be right back right after the short break. (upbeat music)

(upbeat music) >> Reporter: From Chicago, it's The Cube. Covering Oracle transformation date 2020. Brought to you by Oracle Consulting. >> Hi everybody, welcome back. You're watching theCUBE, we go out to the events we extract the signal from the noise. This is a very special digital event and we're really covering the transformation not only the industry, but the transformation of Oracle Consulting and its rebirth. Mike Owens is here Group VP of Cloud Advisory and GM of Oracle Elevate, which is a partnership that Oracle announced last Open World with Deloitte, and Don Schmidt is here, who is a Managing Director at Deloitte. Gents, good to see you, welcome. >> Good to be here Dave. >> So, Don I want to start with you. Transformation, right? Everybody talks about that, there's a lot of trends going on in the industry. What do you guys see as the big gestalt transformation that's going on? >> Yeah I think there's an inflection point right now. Everybody have been saying they want to get out their data centers. The leaves haven't really been taking place, right? They've been kind of moving in small bits. We're now at the point where large transformation at scale, of getting out of your data centers, is now here. So, we are here to try to help our clients move faster. How can we do this more effectively, cost efficiently, and get them out of these data centers so they can move on with their day to day business? >> So data centers is just not an efficient use of capital for your customers. >> No, no there's lots of ways to do this a lot faster, cheaper, and get on to innovation. Spend your money there, not on hardware, floor space, power cooling, those fun things. >> Well you guys are spending money on data centers though right? So this is a good business for you all. >> Mike: We do it on behalf of other customers though. Right? >> Yeah and that's what's happening right? My customers, they essentially want to take all this IT labor cost and shift it into R&D get them on your backs and your backs right? Is this that what you see it? You know where are we in terms of that? I mean it started ten plus years ago but it really has started to uptake right? What's driving that? What's the catalyst there? >> You know so from my perspective, I've been doing this a while. A lot of it is either organizations are driving costs or what you're also seeing is IT organizations are no longer the utility in the organization and taking the orders, you're using them to try to top line value, but to do that, they actually have to take their business and change the model of it, so they can take that money and reinvest it in what Don had talked about, investment or continuous investment. So you're starting to hit those inflection points, you know years ago a CIO would be in his job for 15, 20 years, the average tenure for a CIO is you know three to five years on average, and it's because if they're not driving innovation or driving top line growth with an organization, organizations are now starting to flip that around so you're seeing a huge inflection point, with organizations really looking for IT not to be just a back office entity anymore, to truly drive them they have to transform that back to Don's point, because that inflection point, this large data center move over is a good sort of lever to kind of get them and really use it as opportunity to transform their organization. >> And the transformations are occurring, you know within industries, but at different pace. I mean some industries have transformed radically. You think about Ride shares, and digital music and the like others are taking more time, financial services, health care, they're riskier businesses, and you know there's more government in public policy so what do you see in terms of the catalyst for transformation and is there any kind of discernible, industry variance? >> Yeah there definitely is and he's mentioned some of the more start-up kind of organizations where Cloud was right for them at the early stages. These other organizations that have built these large application stacks and have been there for years, it's scary for them to say, "Let me take this big set of equipment and applications, and move it to the Cloud." It's a big effort. Starting from scratch with start-ups, that's a little different story right? So we are kind of at a different point, there are different stages within different industries, some are faster adopters than some of the others with government regulations and some of the technologies that have to kind of catch up to be able to provide those services. >> Do people generally want to take their sort of mission-critical apps which are largely running often on Oracle infrastructure database, they want to move that into the Cloud but do they want to bring that sort of Cloud-operating model to their on-prem and maybe reduce their overall data center footprint but preserve some of that? What are you guys seeing? >> So, two different probably viewpoints. So my viewpoint is, depends on the organization, depends on the regulatory they have, and there's a lot of factors in there. But I would say, as a standard organization would take their journey, mission-critical systems are historically not the first one in there. 'Cause back to the point of changing the operating model the way you want to do business and be effective, you don't go with the crown jewels first, historically, take some other work loads learn how to work in that operating model, how you're doing things change and then you evolve some of those pieces over time. There are organizations that basically, pull the band-aid off and just go right into it, right? But a lot of large enterprises sort of that's why we talk about Cloud as a journey, right? You take this journey you have to make the journey based on what's going on back what Don had talked about the regulatory requirements in history are the right controls in place for what they need at that point. If not, okay so what's an interim step to the journey? Could you bring Cloud in those capabilities on-prem and then have some of the other stuff off-prem? So it's really situational dependent, and we actually walk a customer through and now Don's organization does the same thing. You walk them through what makes best for their journey for where they're at in the industry and what they have today and what they're trying to achieve. >> So Don Deloitte doesn't just do IT it does business transformation, right? So it's like a chicken and egg, let's say that what comes first? The chicken or the egg? The IT transformation or the business transformation? >> I don't think it's an or it's an and. So have the total conversation of where's your Cloud journey for your entire enterprise, and then decide how that's going to be played out in both in IT and in the business. How the joint conversation from an enterprise perspective. >> So let's talk a little bit about the partnership, to your very well known brands, you guys get together, so what was the sort of impetus to get together? How's it going? Give us the update on that front. >> Yeah you know so from Oracle standpoint, Oracle has been really technology focused. It was really created by technologists, right? And back to the point of what we're trying to do with the Cloud and trying to do larger transformation, those aren't some of the skills that we have. We've been bringing in some of those skills in DNA, but if you look at it as why would you try to recreate this situation? Why would you not partner with an organization who does large business transformation like Deloitte? Right? And so the impetus of that is, how do we take the technology with the business transformation, pull that together and back of the one plus one equals three for my customer, right? That's what they really want, so how do we actually scale that into really big things and get big outcomes for our customers? Our partnership is not about trying to take a bunch of customers and move a couple application work loads. Our job, what we're really charted to do is make huge transformational leaps for our customers, using the combined capabilities of the two organizations. So this it's a hug paradigm for us to kind of do this. >> And in our collaboration with the two organizations just the opposite from what Mike just said right? So Deloitte wasn't really big in big IT, right? Business led transformations kind of what Deloitte's been known for, along with our cyber practice, and so we needed the deep skills of the technical experts. >> Right, so take me through what transformation engagement looks like. They don't call you up and say, "Hey want to buy me some transformation." Right? Where does it start? Who are the stake holders? How long does it take? I mean it could be multi year, I presume and never ends maybe but you want to get to business value first, so let's shorten up the time frame. Take me through typical engagement. Typical I know in quotes. And then, how long like take me through the point at which you start to get business value. What do I got to do to get there? >> Yeah so we see two different spectrums on a transformation. And it really aligns to what are your objectives. Do you just need to get out of the data center because you're on archaic dying hardware? Or do you want to take that, take your time and make a little bit more of a transformation journey? Or do you want to play somewhere in the middle of that spectrum? But on either one of those we'll come in and we'll do a discovery conversation. We'll understand what's in your data center, understand what the age or the health of your data center is, help the customers through, business case, TCO, how fast or how slow that journey needs to be for them, crave look our wave groups of how fast and we're going to sequence those over time to get out of their data center. In parallel we're going to be doing as Mike was saying running all the operational aspects. So while we're doing that discovery, we want to start standing up their Cloud center of excellence. Getting Cloud operations into the organization is a different skill set for IT to have, right? They're going to need to retrain themselves, retool themselves in the world of Cloud. So we kind of do that in parallel and then what we want to do is when we start a project, we want to start with a little POC or small little group of safe applications that we can prove how the model works. Move those into the Cloud, and then what we want to do is we want to scale at it, its large pace, right? Get the IT savings, get the cost cuts out of the organization. >> So I cleaned out my barn this weekend and the first thing I did is I got a dumpster. So I could throw some stuff out. So, is that part of the equation like getting rid of stuff? Is that part of the assessment? You know what's not delivering value that you can live without? >> Absolutely right, so there is kind of things that are just going to not go to Cloud, right? No longer need it, it's just laying around in the side, just get rid of that and move forward. >> And earlier one you'll see there's models depends you hear there's the 6 Rs, the 7 Rs and it's really the journey to Cloud it's almost you look at your status is it going to get re-platformed, is it going to get re-hosted, is it going to get retired back to your point. And if it's had something that's an appliance, right? That's something you're not going to put out to Cloud. Okay keep that in your data center. I have something that's so old, I hope it dies in the next two years. Don't spend the money move it to Cloud, let it die over the next two years. So back to the point, you kind of take this discovery and you go, where do things fall on the spectrum? And each one actually has a destination and a lever that you're going to pull, right? And if you're going to retire things okay so out of the business case, those are status quo for the next you're going to kill it over three years, right? Re-platform re-host means different things that they're going to take, right? Whether they do just to infrastructure or take advantage of PaaS or they'll go, "I'm going to blow up the entire application who directed to Cloud native services." Right? As you go through that journey you kind of map that out for them through the discovery process, and that tells you how much value you're going to get based on what you're going to do. >> But boy, this starts to get deep I mean as you used to peel the onions. So you just described what I would think of as wave 1. And then as you keep peeling you got the applications, you got the business process, you might have, reorganizations that's really where you guys have expertise, right? >> Well combined right? 'Cause yeah we're on the organizational side of things, but yeah there's a lot of things you have to sort through, right? And that's where the combined Elevate program really synergizes itself around the tools that we have. We both have tools that will help make sure we get this right, right? Deloitte has a product called Atadata, Oracle has a product called Soar, they married together properly into this transformational journey, to make sure we get the discovery done right and we get the migrations done right as well. >> Well you also have a lot of different stake holders, than you know, let's face it P&L Managers are going to try to hold on to their P&L. So you've got to bring in the senior executives. Clearly the CIOs involved is the CFO, CSWE. Who are the stake holders that you bring together in the room to kick this thing off? >> Depends on the message and depends on the outcome right? So if it's I need to get out of my data center, my data center strategy, historically the CIO. If it's there's an overall cost reduction and I want to re-implement my cost into innovating the business, sometimes that starts the CEO, CFO levels, right? >> Dave: Sure. >> So depends on that one but it is absolutely, back to your point of, the people want to hold their P&L huggers or kind of hold the cost or whatever. And one of the things, if you're not having the right conversations with people at the right level, the analogy that I've used for years is sometimes you're talking to a turkey about thanksgiving, right? So if you're trying to actually help transform and the entity is feeling that they're impacted by that negatively, even though there's a senior direction, so working through the right levels the organization to make sure you're showing how you're enabling them, it's key it's part of this journey. Helping them understand the future and how it's valuable, 'cause otherwise you'll get people that push back, even though it's the right thing for the company. We've seen that time and time again. >> Well it's potentially a huge engagement, so do you guys have specific plays or campaigns that you know I can do to get started maybe do a little test case, any particular offerings that-- >> Mike: I think-- >> Do you want to talk about the campaigns? >> So ]s under the program of Elevate, we've got a couple of campaigns. So the biggest one we've been talking about is around the data center transformation, so that's kind of the first campaign that we're working on together. The next one is around moving JD Edwards specific applications to Oracle's Cloud. And then the third one is around our analytics offering that Deloitte has and how we're going to market through to general put that in as well. Those are our three major campaigns. >> So data center transformation we hit it pretty hard. I'm sorry the third one was Cloud-- >> Analytics. >> Sorry analytics right okay which is kind of an instate that everybody wants to get to. The JDE migration, so you've got what, situations where people have just, the systems. >> And I would say it's actually more of a JDE modernization, alright? >> Okay. >> So you have an organization, right? They may have a JDE or JD Edwards instance that's really it's older, they're maybe on version nine or something like that, they don't want to go all the way to SaaS 'cause they can't simplify the business processes. They need to do that, but they also want to take advantage of the higher level capabilities of Cloud computing, right? IOT, Mobil, et cetera right? So as a modernization, one of the things we're doing is an approach together we work with customers depending where they're going and go hey great, you can actually modernize by taking up this version of JDE through an upgrade process, but that allows you then to move it over to Oracle Cloud infrastructure, which allows you to actually tap into all those platform services, the IOT and stuff like that to take to the next level. Then you can actually do the higher level analytics that sits on top of that. So it's really a journey where the customer wants to get. There's a various kind of four major phases that we can do or entry points with the customer on the JDE modernization, we kind of work them through. So that's a skill of some of the capabilities that Deloitte has as a deep JDE, and as well as Oracle Consulting, and we actually are going to market that together, matter of fact, we're even at conferences together, talking about our approaches here and our future. >> Okay. So that'll allow you to get to a Cloud PaaS layer that'll allow you to sort of modernize that and get out of the sort of technical debt that's built up. >> Where customers are not ready to maybe move their entire data center, right? This gets them on the journey, right? That's the important pieces. We want to get them on the Cloud journey. >> In the analytics campaign, so it seems to me that a lot of companies don't have their data driven, they want to be data driven, but they're not there yet. And so, their data's in silos and so I would imagine that that's all helping them understand where the data is, breaking down, busting down those silos and then actually putting in sort of an analytics approach that drives their, drives us from data to insights. Is that fair? >> Yeah fair. Yeah it's not just doing reporting and dashboards it's actually having KPI-driven insights into their information and their data within their organizations. And so Deloitte has some pre-configured applications for HR, finance, and supply chains. >> So the existing EDW for example would be fitter into that, but then you've got agile infrastructure and processes that you're putting in place, bringing in AI and machine intelligence. That's kind of the future state that you're in. >> And it also has, they look at the particular that's one of the things we like about the other stuff that Deloitte has done. They've actually done the investment of the processes back into those particular business units that they do and actually have KPI-driven ones it prebuilt configurations that actually adds value. These are the metrics that should be driving an HR organization. Here's the metrics that should be driving finance. So rather than doing better analytics, hey help me write my report better. No, we're going to help you transform the way you should be running your business from a business financial transformation, that's why the partnership with Deloitte. So it's really changing the game of true analytics, not better BI. >> Right okay, guys, two power houses. Thanks so much for explaining in The Cube and to our audience, appreciate it. (mumbling) >> Alright, thank you everybody for watching we'll be right back with our next guest you're watching The Cube, from Chicago. We'll be right back right after the short break. (upbeat music)

(techno music) >> Announcer: Live, from Washington, D.C., it's the Cube. Covering .conf2017 brought to you by Splunk. >> Well, welcome inside the Walter Washington Convention Center here. We're at Splunk .conf2017, Washington, D.C. the nation's capital rolling out its red carpet. For Splunk, first time ever the show's been here and certainly I know from the 7000 plus who are here, so far it's a big thumbs up. John Walls and Dave Velante, and we're joined as well by Brian Goldfarb, who is the Chief Marketing officer of Splunk. And Brian, good to see you this morning sir. >> Great to be here, thanks for having me. >> Yeah, I just, Dave and I were talking about the vibe here, it's always so positive right? Anytime you're around a Splunk event. But coming here, Washington, you've got great attendance I mean your take so far on what you're feeling and what you're seeing. >> It's been unbelievable, we're so blessed with customers and users that really love our products. And helping each other and bringing them all together creates an environment that's unlike anything I've ever seen in my entire career, and I've been in this industry for a long time, I've done a lot of shows. There's an electricity, the information sharing, the conversation, and you kind of see it everywhere you go. >> Well I mean you've, came from the biggest of all shows, right? With Sales Force but, whole different vibe here, I mean really intimate. I was saying off camera this is our seventh year with the Cube. And we were following Splunk, pre IPO. >> Brian: Right. >> Now you're a you know, 1.2 plus billion dollar company, so you have to change in a lot of ways, but you're trying to keep that culture of intimacy. How do you do that as a CMO and as an organization? >> I mean ultimately that's the biggest challenge, is when you grow from a show that's 500 people to a show that's over 7000, how do you keep the roots that, about what makes it great? And intimacy is exactly the right word. How do you capture that, how do you make that real? And for us, there's a couple things. You know, one is just information sharing. It's intimate when people are talking to other people about the great use cases and things they've done with our products. Because Splunk lets you do anything, and so, when customer A says, "Oh I used to, I do it this way." And customer B sees that, it's incredible and you see that through the sessions, we talked about this before. Like so much user generated content. The second thing is all these cool kind of off the beaten paths activities. We have a thing called Boss of the Sock, and Boss of the Knock, which are curated games effectively. Big massive multi-player games, where everyone gets in the room, it started yesterday evening at 7:30 pm, it wrapped just after midnight, and you walked in, and people were glued to their screens trying to win, it's capture the flag style. It was unbelievable. And things like that help us keep it intimate. >> Well there's a lot- there's a culture of fun too, I was saying, we were talking about in the open. You know the t-shirts, take the SH out of IT, (chuckles) Me-trics, getting rid of me-trics. I mean really a lot of fun going on people dropping ping-pong balls in the one that they like the best. >> Brian: Yeah! >> So you've maintained that flavor, which is fantastic. So, what do you see as sort of the next wave of Splunk? I mean, what should we as an audience be thinking about and watching for Splunk? >> I mean for me this is the best conf ever. This is our eighth one, it's the biggest one, it's the best one. We've been able to land so many great partners. We have 71 partners here, telling there stories. We have all the different customer sessions, we just completed the keynote, which I think was absolutely fantastic, the office space parody was I think, bring-the-house-down funny. And I think that's the beginning of the future, how do we take, all the wonderful things that we see our customers doing and bring them to light, and bring them to life, in more inspirational and more personal ways? I'll give you one really great example, we talked about GEN, the Global Emancipation Network. And they're working to help, you know, help human trafficking and human slavery as much as they possibly can, which is a very large problem, and we were able to work with them and help them through our Splunk for good efforts, to give them access to software, which has contributed to the work that they're doing. And we're just honored to have been a part of that, and they're here on site and they told their story in the keynote. And I can, there's example after example after example of the good we're doing for the world, in addition to the work we're doing for companies. And I think that's where we're moving forward. How do you keep those things in lock step so you're actually contributing to the betterment of our global society. At the same time making our user's lives better. >> You know I think, an example at least that really struck me when I was listening to the keynotes, we talked about the Boss of the Sock event, you talk about your community, and the spirit you're trying to create, and continue to perpetuate, was that, the winning team was thrown together right at the last minute. And these were people from different parts, different communities, different sectors if you will. And yet they bound together, they came up with a game plan, they win and so now you've created like a sub-culture as part of the greater community, but that seems to be kind of the embodiment of your philosophy is no boundaries, no limits and let's see how big we can make our tribe, if you will. >> I think tribe is another great word, community. You know, it's a skill set, you want a language you can communicate with each other. You learn how to use Splunk, and all of the sudden you have a common language and a common bond. And team "Last Minute," which won Boss of the Knock, you can't beat, you cannot plan for those kinds of things. People came together with a common understanding of how to accomplish a task, formed instantaneous comradery, and then were able to solve difficult problems. And if you bridge that to a conversation about business, we're all trying to solve problems. Technology they say is hard, we all know it's the culture and the people that's the most difficult thing to do and if we can be something that provides technology that helps drive culture change and people change, that's critical in transformation, and that's one of the things, and I've only been at Splunk 10 months, that I've seen we can do with our customers and that's pretty incredible. >> That's a key part of your messaging, I wanted to make an observation, when we followed Splunk early on, during the ascendancy of the so called big data memes, Splunk never really talked about big data you just sort of did it. You know you solve problems. Now big data is sort of passe, actually you guys talk about big data, it's very interesting to me, I wonder if you could talk about that a little bit. >> You know, lots of people like to throw buzz words. Industry terminology, we try really hard to avoid really getting into it like digital transformation being one, no don't ever say that. Because it doesn't help anyone. Right, at the end of the day you have to find the problems that our customers have, build solutions to help them solve that, and it turns out when big data was the hype, that wasn't the problem that customers have. But with the explosion in data over the last decade that continues to grow, we are actually now seeing true big data style problems. And that's why in the keynote we talked about scale, and how today's scale and tomorrow's scale is just table stakes, because you have to continue to grow to meet that. And so as the machine data company, really trying to make sure people get value out of this machine data, and turn those, that data into answers and get the insights they need to take action, that's the future. And with big data, because it's no longer buzzy, there's new buzz words we can avoid. >> Dave: It just is. >> It just is, everyone has a ton of data. >> I think the point you're making about digital transformation is interesting. We do over a hundred of these a year and every, the vast majority of digital transformation with no meat on the bone. And to us, a digital business is, is one that leverages it's data. So when you think about the evolution of Splunk, it's all about leveraging data and we're seeing, do you envision a Splunk where Splunk actually becomes that development platform for applications which has been the nirvana of so-called big data for years, it appears that Splunk is becoming just that. >> I think that's part of our long-term strategy, in that, the beginning of that already exists. Splunk base has over 1200 apps that extend the Splunk platform already, and those apps do anything from make it easier to ingest data from different data sources, to visualize data through interesting dash boards, to customized searches. A great example, ransomware, we talked about it in the keynote, super hot topic in the industry. Something that's affecting the world at large and something we want to make sure we're helping people deal with, we launched a new product called Splunk Insights for Ransomware, which is just an app built on top of Splunk, that gives you better dash boarding, better searching and better licensing for customers to get in, pay per user, get started really fast and solve that particular problem. And we see that as really really critical, as we evolve our strategy to address these transformative types of things, and the application ecosystem that comes with them. >> We saw this in the demos, another buzz word of course machine learning, but we saw an application of machine learning to dramatically learning to simplify the number of events I have to look through as a security professional and map those to you know, actual problems that I can solve. Again, another application, practical application of Splunk at play. >> Meat on the bone, you said it. So at the end of the day, this is a user conference, and our users use the product every day, and if we're not giving them real value, they're going to let us know. We put tons of energy into that. >> How about the ecosystem, the message to the ecosystem. What is the message to those guys, what are the sort of swim lanes you guys will develop applications versus their opportunities? >> I think that's emerging, I think we're still learning how to work with our ecosystem. We're so blessed with an amazing ecosystem, a huge community of participants. We talked about the Splunk trust. This core group of 42 people, we inducted 14 new ones today who really embody everything that is so great about our company and our customers and what they do for their constituents. And they are helping us think through you know, where can you build, how do you build and who should build, and getting that real time feedback. And all the partners that are here right, are adding value. And that's our goal, create the platform so that we can solve everyone's machine data challenges at scale so they can provide better answers and ultimately more value to their company. >> So getting a little personal then, you mentioned first show, >> First show. >> You coming into this, so you inherit this seven year machine right? Growing, expanding and so your perspective coming into that, what have you brought, you think or you're seen as an outsider who's now an insider, and maybe leverage the culture that was being created to take us to where we are here this year here in D.C.? >> One of the main reasons I came to Splunk, was my extremely positive impression of the product, and the brand, and the customer community around it. My entire history, at Microsoft and Google, Cloud Platform and Sales Force, was predicated on customers who love the products. You can't create that, right, you earn that through amazing work, and amazing technology. And being able to walk in here at Splunk and already have that, was the gift that really got me excited. And so you talk about coming in, and what you already have I got handed the best thing ever. Hundreds of thousands, millions of users that are excited about our product. And so what I wanted to bring was not a lot of change in the culture, it's more how do you maintain that intimacy, how do you keep the what makes Splunk, Splunk and then do that on a grander scale? And I think if you look at .conf this year, this embodies the vision that I've had with my team and with the company on how to bring .conf, I'm sorry, bring Splunk to life in a massive way. And this is, you know you can see around us, all the activity going on, it's pretty amazing. >> How about the choice of the district? You know, love the venue, love being in D.C. always, of course east-coast guys, your backyard. >> John: It's a home game for me, yeah love that. >> Brian: I'm 20 minutes away, I love it. >> But so obviously a lot of government clients, they you know, don't go to Vegas or can't go to Vegas, it's a strong community here, very advanced. Talk about that choice. >> Yeah, very thoughtful choice. We do a lot of business with the federal government. We do a lot of business with state and local officials. We do a lot of business with education and universities. And so we thought coming to D.C. was the perfect place to really embrace the public sector in America. But also an amazing venue, weather's cooperated for the most part, all the things you would want. And what we've seen with the program, is we've had more public sector attendance which is great to be able to give them more skills. The work we do with veterans, we talked about giving free training to our service men and women. And veterans service men and women which is super important to us as a company, that was a big honor to be able to do it here in D.C. Kind of a no-brainer for us, and also seeing how the rest of the community has come, it's a lot of west-coast American folks, we have people from 65 countries from all over the world that have all descended here, and it's been really really incredible. So it's been really good for us, and as we think through next venues and future years, I think there's a lot really exciting things to come. But being in D.C. is an honor for the company, and it's been great to see the turnout. >> Hey my last question, several years ago Gartner came up with the stats, said CMO was going to spend more than the CIO on technology. I don't know if that ever came to fruition but it was an interesting prediction. As a CMO, somebody who's obviously using data, for marketing, at a data company, what's the state of that what's your philosophy around data, the intersection of data and marketing? >> Yeah, I've read those Gartner articles too. The Chief Marketing Technology Officer, and you know my background is deeply technical, I was an engineer by training. And our CIO Deckland and I have an incredibly tight relationship, and I actually think that's the future. Marketing is data, and that's the big change that's happening in the marketing landscape. There's old-school marketing, advertising and things like that, that make sense and maybe be to see kind of opportunities. But if you're in a business to business universe, working with larger enterprises and governments like we are at Splunk, there's a new age of marketing that's evolved over the last decade that is predicated with operational data, that helps you make better decisions, invest more, make more personalized engagements. This doesn't have to be throw a big thing and hope someone sees it. I can engage with you and you in a personal and intimate way which aligns incredibly well with our culture and who we want to be. And so I agree it doesn't matter how you calculate the dollars or the spend or the budget, but technology is an enormous driver of modern marketing, and being at a data company makes it incredibly easy. I Splunk everything, we have dash boards, you come by my office and we have a wall of TVs with Splunk dash boards showing our social status, and we're using LinkedIn Elevate, and we see what's coming out of sales force data on sales and pipeline, all the different things so we have this real time, operational dash board that Splunk is giving us from the business side. >> I love that answer, it's not an either or with marketing and IT it's an and. >> It has to be. You just put such a sharp point on that pencil right now as you said with metrics you have all the data you need, continued success, we with you all that. >> Brian: Thank you. >> Good job getting the plane off the ground here today, and happy landing for the rest of the week. >> Brian: Thank you so much, it's an honor to be here. Thank you for joining us for your seventh year, look forward to your eighth. >> Dale: Alright, thanks for having us. >> Absolutely, thanks Brian. Brian Goldfarb, the CMO at Splunk. We're back with more here on the Cube from Washington D.C. at .conf2017, right after this. (techno music)