>>from the cube studios in Palo alto >>in boston >>connecting with thought leaders all around the >>world. This >>is a cute conversation. Hello and welcome to today's session of the AWS Global Public sector Partner Awards. I'm your host Natalie ehrlich. Today we're going to focus on the following award for best partner transformation. I'm pleased to introduce our guests, josh door smith, vice president of public sector at Effectual and jeremy Yates, deputy technology architect at jenny May. Welcome gentlemen so glad to have you on our show. >>Hi there. Very nice to be here. Thank you so much for having me >>terrific. Well josh, I'd like to start with you. How can companies leverage cloud native solutions to deliver higher quality services? >>So Natalie, that's a great question. And in the public sector and our our government customers, we run into this all the time. It's kind of our bread and butter. What what they can do is the first thing they need to be aware of is you don't have to be afraid of the cloud as some very obscure technology that is just emerging. It's been out for 10, 11 years now, customers across government space are using it lock stock and barrel to do everything from just managing simple applications, simple websites all the way through hosting their entire infrastructure, both in production and for disaster recovery purposes as well. So the first thing to note is just don't be afraid of the cloud. Um secondly, it's, it's imperative that they select the right partner who is able to kind of be there Sherpa to go into however far they want to dip their toe into the, into the proverbial cloud waters. Um to select somebody who knows whatever it is that they need to go do. So if they want to go Aws as we are talking about today, pick a partner who has the right experience, past performance designations and competencies with the cloud that they're interested in. >>Terrific. Well, you know, Jeremy, I'd love to move to you. What does modern modernization mean to jenny May? >>Sure, Thanks Natalie, great to be here. Thanks josh as well, you know. So for jenny May, modernization is really, it's not just technology is holistic across the organization. So that includes things like the business, um not just you know, the the I. T. Division. So we're looking at the various things to modernize like our culture and structural changes within the organization. Um moving to implement some, some proven practices like def sec ops and continuous integration and continuous delivery or deployment. Uh and then, you know, our overall overarching goal is to give the best and most secure technology to the business that we can to meet the Jeannie Mai mission and the needs of our customers >>terrific. Well josh, how is Effectual planning to support jenny Maes modernization plans? >>So we have been supporting jenny May for about 14 months now. Uh and back in september of last year, we rewarded a co prime 10 year contract for Jeannie Mai to do exactly that. It's to provide all things cloud to Jeannie Mai for 10 years on AWS and that's including reselling AWS. That's including providing all sorts of professional services to them. And it's, it's providing some third party software applications to help them support their applications themselves. So what Effectual is doing is kind of a threefold. We are supporting the modernization of their process, which jeremy mentioned a moment ago and that includes in stan shih ating a cloud center of Excellence for jenny May, which enables them to modernize the way they do cloud governance while they're modernizing their technology stack. We're also providing a very expert team of cloud architects and Dempsey cops engineers to be able to, to design the Jeannie Mai environment, collaborating with our co prime uh to ensure that it meets the security requirements, the compliance requirements that jerry mentions. Uh, Jeannie Mai is a federal entity, but it also has to adhere to all the finance industry uh compliance requirements as well. So very strenuous from that perspective. And then the third thing that we're doing to help them kind of along their modernization journey is in stan shih aging infrastructure as code. So in the cloud, rather than building everything in the AWS management console, we script everything to build it automatically, so it improves consistency, it improves the customer experience regardless of which resource is working on it. And it improves disaster recovery capability as well. And also, just quite frankly, the speed by which they can actually deploy things. >>And jeremy, how is this transition helping your security really enhancing it now? >>Uh From a security perspective we're implementing a number of various tools um both, you know, a W. S based as well as other software that josh mentioned. Um So we're able to utilize those in a more scalable manner than we could previously in the traditional data center. Um we've got a number of things such as we're looking at multiple vulnerability management products like 10 of Ohio and Wallace. Um we're using uh tools such as Centra fi for our our pam or privileged access management capabilities. Um Splunk a pretty industry standard. Um software for log and data correlation and analysis um will also be using that for some system and application monitoring. Um as well as uh the Mcafee envision product for endpoint and other cloud service security. So being able to pull all those in in a more scalable and more cost efficient way as well from cloud based services. Uh, it's really helped us be able to get those services and integrate them together in a way that, you know, we may not previously been able to. >>Yeah, terrific. Well, josh, let's move back to you and talk further about compliance. You know, any insight here, how Effectual is building a modern cloud infrastructure to integrate AWS services with third party tools to really achieve compliance with the government requirements. Just any further insight on that >>front? That's a great question. Natalie and I'm gonna tag team with Jeremy on this one if you don't mind, but I'll start off so jenny may obviously I mentioned earlier has federal requirements and financial requirements so focused right now on on those federal aspects. Um, so the tools that Jeremy mentioned a moment ago, we are integrating all of them with a W. S native meaning all of the way we do log aggregation in the various tools within AWS cloudwatch cloud trail. All of those things were implementing an AWS native, integrating them with Splunk to aggregate all of that information. But then one of the key requirements that's coming up with the federal government in the very near future is tick three dot or trusted internet connection. Basically in the first iteration a decade or so ago, the government wanted to limit the amount of points of presence that they have with the public facing internet fast forward several versions to today and they're pushing that that onus back on the various entities like jenny May and like hud, which Jeannie Mai is a part of but they still want to have that kind of central log repository to where all of the, all of the security logs and vulnerability logs and things like that. Get shipped to a central repository and that will be part of DHS. So what effectual has done in partnership with jenny May is create a, a W. S native solution leveraging some of those third party tools that we mentioned earlier to get all of those logs aggregated in a central repository for Ginny MaE to inspect ingest and take action from. But then also provide the mechanism to send that to DHS to do that and correlate that information with everything coming in from feeds across the government. Now that's not required just yet. But we're future proofing jenny Maes infrastructure in order to be able to facilitate adherence to those requirements when it becomes uh required. Um, and so jeremy, I'll pass it over to you to talk a little bit further about that because I know that's one of the things that's near and dear to your sister's heart as well as jenny may overall. >>Yeah, absolutely. Thanks josh. Um, so yeah, we, as you mentioned, we have implemented um, uh, sort of a hybrid tech model right now, um, to to handle compliance on that front. Um, so we're still using a, you know, some services from the legacy or our existing T two dot x models. That that josh was mentioning things such as m tips, um, uh, the Einstein sensors, etcetera. But we're also implementing that take 30 architecture on our own. As josh mentioned that that will allow us to sort of future proof and and seamlessly really transitioned to once we make that decision or guidance comes out or, you know, mandates or such. Um, so that effort is good to future proof house from a compliance perspective. Um, also, you know, the tools that I mentioned, uh, josh reiterated, those are extremely important to our our security and compliance right. Being able to ensure, you know, the integrity and the confidentiality of of our systems and our data is extremely important. Not both, not just both on the r not only on the government side, but as josh mentioned, the finance side as well. >>Terrific. Well, I'd love to get your insight to on AWS workspaces. Um, if either one of you would like to jump in on this question, how did they empower the jenny May team to work remotely through this pandemic? >>That's a great question. I guess I'll start and then we'll throw it to jeremy. Um, so obviously uh effectual started working with jenny May about three weeks after the pandemic formally started. So perfect timing for any new technology initiative. But anyway, we, we started talking with Jeremy and with his leadership team about what is required to actually facilitate and enable our team as well as the government resources and the other contractors working for jenny May to be able to leverage the new cloud environment that we were building and the very obvious solution was to implement a virtual desktop infrastructure uh type solution. And obviously Jeannie Mai had gone all in on amazon web services, so it became the national natural fit to look first at AWS workspaces. Um, so we have implemented that solution. There are now hundreds of jenny May and jenny make contractor resources that have a WS workspaces functioning in the GovCloud regions today and that's a very novel approach to how to facilitate and enable not only our team who is actually configuring the infrastructure, but all the application developers, the security folks and the leadership on the jenny may side to be able to access, review, inspect, check log etcetera, through this remote capability. It's interesting to note that Jeannie Mai has been entirely remote since the pandemic initiated. Jeremy's coming to us from, from west Virginia today, I'm coming to us from national harbor Maryland And we are operating totally remotely with a team of 60 folks about supporting this specific initiative for the cloud, not to mention the hundreds that are supporting the applications that Jamie runs to do its day to day business. So jeremy, if you wouldn't mind talking about that day to day business that jenny may has and, and kind of what the, the mission statement of Jeannie Mai is and how us enabling these workspaces uh facilitates that mission >>or you know, so the part of the overall mission of jenny Maes to, to ensure affordable housing is, is made available to uh, the american public. Um that's hud and, and jenny may as part of that and we provide um mortgage backed securities to help enable that. Um, so we back a lot of V A. Loans, um, F H A, those sort of loans, um, workspaces has been great in that manner from a technology perspective, I think because as you mentioned, josh, it's really eliminated the need for on premise infrastructure, right? We can be geographically dispersed, We can be mobile, um, whether we're from the east coast or west coast, we can access our environment securely. Uh, and then we can, you know, administer and operate and maintain the technology that the business needs to, to fulfill the mission. Um, and because we're able to do that quickly and securely and effectively, that's really helpful for the business >>Terrific. And um, you know, I'd like to shift gears a bit and uh you know, discuss what you're looking ahead toward. What is your vision for 2021? How do you see this partnership evolving? >>Yeah, you >>Take that 1/1. >>Sure. Yeah. Um you know, definitely some of the things we look forward to in 2021 as we evolve here is we're going to continue our cloud journey um you know, through practices like Deb said cops, you realize that uh that journey has never done. It's always a continual improvement process. It's a loop to continually work towards um a few specific things or at least one specific thing that we're looking forward to in the future, as josh mentioned earlier was our arctic three Oh Initiative. Um, so with that we think will be future proofed. Um as there's been a lot of um a lot of recent cyber security activity and things like that, that's going to create um opportunities I think for the government and Jeannie Mai is really looking forward to to leading in that area. >>Mhm and josh, can you weigh in quickly on that? >>Absolutely. Uh First and foremost we're very much looking forward to receiving authority to operate with our production environment. We have been preparing for that for this last year plus. Uh but later on this summer we will achieve that 80 oh status. And we look forward to starting to migrate the applications into production for jenny May. And then for future proof, it's as jerry jerry mentioned, it's a journey and we're looking forward to cloud optimizing all of their applications to ensure that they're spending the right money in the right places uh and and ensuring that they're not spending over on any of the one given area. So we're very excited to optimize and then see what the technology that we're being able to provide to them will bring to them from an idea and a conceptual future for jenny may. >>Well thank you both so very much for your insights. It's been a really fantastic interview. Our guests josh duggar smith as well as jeremy Gates. Really appreciate it. >>Thank you very much. >>Thank you so much. >>Terrific. Well, I'm your host for the cube Natalie or like to stay tuned for more coverage. Thanks so much for watching.

(upbeat music) >> Announcer: From theCUBE studios in Palo Alto in Boston, connecting with thought leaders all around the world, this is a CUBE conversation. >> Everyone, welcome to this CUBE conversation. I'm John Furrier with theCUBE, host of theCUBE here in our Palo Alto office for remote interviews during this time of COVID-19. We're here with the quarantine crew here in our studio. We've got a great guest here from Google, Will Grannis, managing director, head of the office of the CTO with Google Cloud. Thanks for coming on, Will. Appreciate you spending some time with me. >> Oh, John, it's great to be with you. And as you said, in these times, more important than ever to stay connected. >> Yeah, and I'm really glad you came on because a couple of things. One, congratulations to Google Cloud for the success you guys had. Saw a lot of big wins under your belt, both on the momentum side, on the business side, but also on the technical side. Meet is available now for folks. Anthos is doing very, very well. Partner ecosystem's developing. Got some nice use cases in vertical markets, so I want to get in and unpack with you. But really, the bigger story here is that the world has seen the future before it was ready for it. And that is the at-scale challenge that the COVID-19 has shown everyone. We're seeing the future has been pulled forward. We're living in a virtualized environment. It's funny to say that, virtualization (laughs). Server virtualization is a tech term, but that enabled a lot of things. We're living in a virtualized world now 'cause we have to, but this is going to set in motion a series of new realities that you guys have been experiencing and supporting for many, many years. But now as a provider of Google Cloud, you guys have to operate at scale, you have. And now the whole world realizes that scale is a big deal. And so you guys have had some successes. I want to get your thoughts on the this at scale problem that the world now realizes. I mean, everyone's at home. That's a disruption that was unforecasted. Whether it's under-provisioning VPNs in IT to a surface area for security, to just work and play. And activities are now confined, so people aren't convening anymore and it's a huge issue. What's your take on all this? >> Well, I mean, to your point just now, the fact that we can have this conversation and we can have it fluidly from our respective remote locations just goes to show you the power of information technology that underlies so many of the things that we do today. And for Google Cloud, this is not a new thing. And for Google, this is not a new thing. For Google Cloud, we had a mission of trying to help companies accelerate their transformation and enable them in these new digital environments. And so many companies that we've been working with, they've already been on the path to operating in environments that are digital, that are fluid. And when you think about the cloud, that's one of the great benefits of cloud, is that scalability in common with the business demand. And it also helps the scale situation without having to do the typical, "Oh wait, "you need to find the procurement people. "We need to find the server vendors. "We need to get the storage lined up." It really allows a much more fluid response to unexpected and unforecasted situations. Whether that's customer demand or in this case a global pandemic. >> Yeah, one of the things I want to get in with you on, you have explained what your job is there 'cause obviously Google's got a new CEO now for over a year. Thomas Kurian came from Oracle, knows the enterprise up and down. You had Diane Greene before that. Again, another enterprise leader. Google Cloud has essentially rebuilt itself from the original Google Cloud to be very enterprise centric. You guys have great momentum, and this is a world where cloud-native is going to be required. I mean, everyone now sees it. The tide has been pulled out, everything's exposed, all the gaps in business from a tech standpoint is kind of exposed. And so the smart managers and companies are looking at things and saying, "Double down on that. "Let's kill that. "We don't want to pay that supplier. "They're not core to our business." This is going to be a very rapid acceleration of what I call a vetting of the new set of players that are going to emerge because the folks who don't adapt to this new cloud-native reality, whether it's app workloads for banking to whatever are going to have to reinvent themselves now and reset and tweak to come out of this crisis. So it's going to be very cloud-native. This is a big deal. Can you share your reaction to that? >> Absolutely. And so as you pointed out, there are kind of two worlds that exist right now. Companies that are moving to become more digital and transform, and you mentioned the momentum in Google Cloud just over the last year, greater than 50% revenue growth. And in a greater than $10 billion run rate business and adding customers at a really quick clip, including just yesterday, Splunk, and along the way, Telecom Italia, Major League Baseball, Vodafone, Lowe's, Wayfair, Activision Blizzard. This transformation and this digitization is not just for a few or just for any one industry. It's happening across the board. And then you add that to the implementations that have been happening across Shopify and the Spotify and HSBC, which was a early customer of ours in the cloud and it already has a little bit of a headstart into this transformation. So you see these new companies coming in and seeing the value of digital transformation. And then these other companies that have kind of lit the path for others to consider. And Shopify is a really good example of how seeing drastic uptick in demand, they're able to respond and keep roughly half a million shops up and running during a period of time where many retailers are trying to figure out how to stay online or even get online. >> Well, what is your role at Google? Obviously, you're the managing director. Title is managing director, head of the office of the CTO. We've seen these roles before, head of the CTO, obviously a technical role. Is it partnering with the CEO on strategy? Is it you're tire kicking new things? Are you overseeing any strategic initiatives? What is your role? >> So a little bit of all of those things combined into one. So I spent the first couple of decades of my career on the other side of the fence in the non-tech community, both in the enterprise. But we were still building technology and we were still digitally minded. But not the way that people view technology in Silicon Valley. And so spending a couple of decades in that environment really gave me insights into how to take technology and apply them to a specific problem. And when I came to Google five years ago, selfishly, it was because I knew the potential of Google's technology having been on the other side. And I was really interested in forming a better bridge between Google's technology and people like me who were CTOs of public companies and really wanted to leverage that technology for problems that I was solving. Whether it was aerospace, public sector, manufacturing, what have you. And so it's been great. It's the role of a lifetime. I've been able to build the team that I wanted as an enterprise technologist for decades and the entire span of technologies at our disposal. And we do two things. One is we help our most strategic customers accelerate their path to cloud. And two, we create these signals by working with the top companies moving to the cloud and digitally transforming. We learned so much, John, about what we need to build as an organization. So it also helps balance out the Google driven innovation with our customer driven innovation. >> Yeah, and I can attest. I've been watching you guys from day one. Hired a lot of great enterprise people that I personally know. So you get in the enterprise chops and stuff and you've seen some progress. I have to ask you though, because first of all, big fan of Google at scale from knowing them from when they were just a little search engine to what they are now. There was an expression a few years ago I heard from enterprise customers. It goes along the lines like this. "I want to be like Google," because you guys had a great network, you had large scale. You had all these things that were like awesome. And then they realized, "Well, we can't be like Google. "We don't have SREs. "We don't have large scale data centers." So there was a little bit of a translation, and I want to say a little bit of a overplay of the Google hand, and you guys had since realized that it wasn't just people are going to bang at your doorstep and be adopting Google Cloud because there was a little bit of a cultural disconnect from wanting to be like Google, then leveraging Google in their business as they transform. So as you guys have moved from that, what's changed? They still want to be like Google in the sense you have great security, got a great network, and you've got that scale. Enterprises are a little bit slower to adopt that, which you're focused on now. What is the story there? Because I think that's kind of the theme that I'm hearing. Okay, Google now understands me. They know I'm not as fast as Google. They got super great people (laughs). We are training our people. We're retraining them. This is the transformation that they're going through. So you might be a little bit ahead of them certainly, but now they need to level up. How do you respond to that? >> Well, a lot of this is the transformation that Thomas has been enacting over the last year plus. And it comes in kind of three very operational or tactical pillars that I think of. First, we expanded our customer and we continue to expand our customer facing teams. Three times what they were before because we need to be there. We need to be in those situations. We need to hear from the customer. We need to learn more about the problems they're trying to solve. So we don't just take a theoretical principle and try to overlay it onto a problem. We actually get very visceral understanding of what they're trying to solve. But you have to be there to gain that empathy and that understanding. And so one is showing up, and that has been mobilizing a much larger engine of customer facing personnel from Google. Second, it's also been really important that we evolve our own. Just as Google brought SRE principles and principles of distributed systems and software design out to the world, we also had a little bit to learn about transitioning from typical customer support and moving to more customer experience. So you've seen that evolution under Thomas as well with cloud changing... Moving from talking about support to talking about customer experience, that white glove experience that our customers get and our partners get from the beginning of their journey with us all the way through. And then finally making sure that our product roadmap has the solutions that are relevant across key priority industries for us. Again, that only comes from being present from having a focus in those industries and then developing the solutions that progress those companies. This isn't about taking a principle and trying to apply it blindly. This is about adding that connection, that really deep connection to our customers and our partners and letting that connection manifest the things that we have to do as a product company to best support them over a long period of time. I mean, look at some of these deals we've been announcing. These are 10-year, five-year, multi-year strategic partnerships that go across the canvas of all of Google. And those are the really exciting scaled partnerships. But to your point, you can't just take SRE from Google and apply it to company X, but you can things like error budgets or how we think about the principles of SRE, and you can apply them over the course of developing technology, collaborating, innovating together. >> Yeah, and I think cloud-native is going to be a key thing. It's just my opinion, but I think one of those situations where the better mouse trap will win. If you're cloud-native and you have APIs and you have the kind of services, people will beat it to your doorstep. So I got to ask you, with Thomas Kurian on board, obviously, we've been following his career as well at Oracle. He knows what he's doing. Comes into Google, it's being built out. It's like a rocket ship at this point. What bet is he making and what bet are you guys making on behalf of your customers? If you had to boil it down to Google Cloud's big bet, what is the bet on the technology side? And what's the bet on the business side? >> Sure. Well, I've already mentioned... I've already hinted at the big strategy that Thomas has brought in. And that's, again, those three pillars. Making sure that we show up and that we're present by having a scaled customer facing organization. Again, making sure that we transition from a typical support mindset into more of a customer experience mindset and then making sure that those solutions are tailored and available for our priority industries. If I was to add more color to that, I think one of the most important changes that Thomas has personally been driving is he's been converting us to a partner-led business and a partner-led organization. And this means a lot of investments in large global systems integrators like Accenture and Deloitte. But this also means that... Like the Splunk announcement from yesterday, that isn't just a sell to. This is a partnership that goes deep across go-to market product and sell to. And then we also bring in very specific partners like Temenos in Europe for financial services or a CETA or a Rackspace for migrations. And as a result, already, we're seeing really incredible lifts. So for example, nearly 200% year over year increase in partner influenced revenue in Google Cloud and almost like a 13X year over year increase in new customers won by partners. That's the kind of engine that builds a real hyper-scale business. >> Interesting you mentioned Splunk. I want to get to that in a second, but I also noticed there was a deal with TELUS Group on eSIM subscriptions, which kind of leads me into the edge piece. There's a real edge component here with Google Cloud, and I think I had a conversation with Jennifer Lynn a few years ago, really digging into the built-in security and the value of the Google network. I mean, a lot of the scuttlebutt around the Valley and the industry is Google's got an amazing network. Software-defined networking is going to be a hot programmable area. So you got programmable networking and you got edge and edge security. These are killer areas that need innovation. Could you comment on what you guys are doing there and do you agree? Obviously, you have a killer network and you're leveraging it. Can you just give some insight into what's going on in those two areas? Network and then the edge. >> Yeah, I think what you're seeing is the manifestation of the progression of cloud generally. And what do I mean by that? It started out as like get everything to the data center. We kind of had this thought that maybe we could take all the workloads and we could get them to these centralized hubs and that we could redistribute out the results and drive the latency down over time so we can expand the portfolio of applications and services that would become relevant over time. And what we've seen over the last decade really in cloud is an evolution to more of a layered architecture. And that layered architecture includes kind of core data centers. It includes CDN capacity, points of presence, it includes edge. And just in that list of customers over the last year I mentioned, there were at least three or four telcos in there. And you've also probably heard and seen quite a bit of telco momentum coming from us in recent announcements. I think that's an indication that a lot of us are thinking about, how can we take technology like Anthos, for example, and how could we orchestrate workloads, create a common control plane, manage services across those three shells, if you will, of the architecture? And that's a very strategic and important area for us. And I think generally for the cloud industry, is expanding beyond the data center as the place where everything happens. And you can look at Google Fi, you can look at Stadia. You can look at examples within Google that go well beyond cloud as to how we think about new ways to leverage that kind of criteria. >> All right, so we saw some earnings come out on Amazon side as Google, both groups and Microsoft as well, all three clouds are crushing it on the cloud side. That's a tailwind, I get that. But as it continues, we're expecting post-COVID some redistribution of development dollars in projects. Whether it's IT going cloud-native or whatever new workloads. We are predicting a Cambrian explosion of new things from core to edge. And this is going to create some lifts. So I want to get your thoughts on you guys' strategy with go-to market, as well as your customers as they now have the ability to build workloads and apps with AI and data. There seems to be a trend towards the verticalization of whether it's sales and go-to market and/or specialism because you have horizontal scalability with cloud and you now have data that has distinct (chuckles) value in these verticals. So it's really seems to be... I won't say ratification, but in a way, that seems to be the norm. Whether you come into a market and you have specialization, but the data is there so apps can be more agile. Are you guys seeing that? And is that something that you guys are considering from an organization standpoint? And how do customers think about targeting vertical industries and their customers? >> Yeah, I bring this to... And where you started going there at the end of the question is exactly the way that we think about it as well. Which is we've moved from, "Here are storage offers for everybody, "and here's basic infrastructure for everybody." And now we've said, "How can we make sure "that we have solutions that are tailored "to the very specific problems that customers "are trying to solve?" And we're getting to the point now where performance and variety of technologies are available to be able to impose very specific solutions. And if you think about the substrate that has to be there, we mentioned you have to have some really great partners, and you have to have a roadmap that is focused on priority solution. So for example, at Google Cloud, we're very focused on six priority vertical areas. So retail, financial services, healthcare, manufacturing and industrials, healthcare life sciences, public sector. And as a result of being very focused in those areas, we can make more targeted investments and also align our entire go-to market system and our entire partner ecosystem... Excuse me, ecosystem around those bare specific priority areas. So for example, we work with CETA and HDA Healthcare very recently to develop and maintain a national response portal for COVID-19. And that's to help better inform communities and hospitals. We can use Looker to help with like a Commonwealth Care Alliance nonprofit and that helps monitor patient symptoms and risk factors. So we're using a very specific focus in healthcare and a partner ecosystem to develop very tailored solutions. You can also look at... I mentioned Shopify earlier. That's another great example of how in retail, they can use something like Google Meet, inherent reliability, scalability, security, to connect their employees during these interesting times. But then they can also use GCP, Google Cloud Platform to scale out. And as they come up with new apps and experiences for their shoppers, for their shops, they can rapidly deploy, to your point. And those solutions and how the database performs and how those tiers perform, that's a very tight-knit feedback loop with our engineering teams. >> Yeah, one of the things I'm seeing obviously with the virtualization of the COVID is that when the world gets back to normal, it'll be a hybrid. And it'll be a hybrid between reality, not physical and a hundred percent virtual, hybrid. And that's going to impact events too, media, to everything. Every vertical will be impacted. And I want to point out the Splunk deal and bring that back in because I want you to comment on the relevance of the Splunk deal in context to Splunk has a cloud. And they've got a great slogan, "Data for everywhere." "Data to everywhere," I think it is. But theCUBE, we have a cloud. Every company will have a cloud scale. At some level, we'll progress to having some sort of cloud because they have data. How are you guys powering those clouds? Because I think the Splunk deal is interesting. Their partner, their stock price was up out on the news of the deal. Nice bump there for Splunk, shout out to those guys. But they're a data company and now they're cross-platform. But they're not Google, but they have a cloud. So you know what I'm saying? So they need to play in all the clouds, but they need infrastructure (laughs), they need support. So how do you guys talk to that customer that says, "Hey, the next pandemic that comes, "the next crisis that's going to cause some "either social disruption or workflow disruption "or supply chain disruption. "I need to be agile. "I need to have full cloud scale. "And so I need to talk to Google." What do you say to them? What's the pitch? And does the Splunk deal mirror some of those capabilities? Or tie that together for us, the Splunk deal and how it relates to how to proof themselves for the future. Sorry. >> For example, with the Splunk cloud deal, if you take a look at what Google is already really good at, data processing at scale, log analytics, and you take a look at what Splunk is doing with their events and security incident monitoring and the rest, it's a really great mashup because they see by platforming on Google Cloud, not only do they get highly performing infrastructure. But they also get the opportunity to leverage data tools, data analytics tools, machine learning and AI that can help them provide enhanced services. So not just about capacity going up and down through periods of demand, but also enhancing services and continuing to offer more value to their customers. And we see that as a really big trend. And this gets at something, John, a little bit bigger, which is kind of the two views of the world. And we talked about very tailored, focused solutions. Splunk is an example of taking a very methodical approach to a partnership, building a solution specifically with partners. And in this case, Splunk on the security event management side. But we're always going to provide our data processing platform, our infrastructure for companies across many different industries. And I think that addresses one part of the topic, which is, how do we make sure that in periods of demand rapidly changing, and this goes back to the foundational elements of infrastructure as a service and elasticity. We're going to provide a platform and infrastructure that can help companies move through periods of... It's hard to forecast, and/or demand may rise and fall in very interesting ways. But then there's going to be times where we... Because we're not necessarily a focused use case where it may just be generalized platform versus a focused solution. So for example, in the oil and gas industry, we don't develop custom AI, ML solutions that facilitate upstream extraction, for example. But what we do do is work with renewable energy companies to figure out how they might be able to leverage some of our AI machine learning algorithms from our own data centers to make their operations more efficient and to help those renewable energy companies learn from what we've learned building out what I consider to be a world leading renewable energy strategy and infrastructure. >> It's a classic enablement model where you're enabling your platform for your customers. Okay, so I've got to ask the question. I asked this to the Microsoft guys as well because Amazon has their own SaaS stuff. But really more of end to end. The better product's usually on the ecosystem side. You guys have some killer SaaS. G Suite, we're a customer. We use the G Suite really deeply. We also use some Bigtable as well. I want to build a cloud, we have a cloud, CUBE cloud. But you guys have Meet. So I want to build my product on Google Cloud. How do I know you're not going to compete with me? Do you guys have those conversations around the trade-off between the pure Google services, which provide great value for the areas where the ecosystem needs to develop those new areas that are going to be great markets, potentially huge markets that are out there. >> Well, this is the power of partnership. I mentioned earlier that one of the really big moves that Thomas has made has been developing a sense of partners. And it kind of blurs the line between traditional, what you would call a customer and what you would call a partner. And so having a really strong sense of which industries we're in, which we prioritize, plus having a really strong sense of where we want to add value and where our customers and partners want to add that value. That's the foundational, that's the beginning of that conversation that you just mentioned. And it's important that we have an ability to engage not just in a, "Here's the cloud infrastructure piece of the puzzle." But one of the things Thomas has also done and a key strategy of his has been to make sure that the Google Cloud relationship is also a way to access all amazing innovation happening across all of Google. And also help bring a strategic conversation in that includes multiple properties from across Google so that an HSBC and Google and have a conversation about how to move forward together that is comprehensive rather than having to wonder and have that uncertainty sit behind the projects that we're trying to get out and have high velocity on because they offer so much to retail bank, for example. >> Well, I've got a couple more questions and then I'll let you go. I know you got some other things going on. I really appreciate you taking the time, sharing this great insight and updates. As a builder, you've been on the other side of the table. Now you're at Google heading up the CTO. Also working with Thomas, understanding the go-to market across the board and the product mix. As you talk to customers and they're thinking... The good customers are thinking, "Hey, "I want to come out of this COVID on an upward trajectory "and I want to use this opportunity "to reset and realign for the future." What advice do you have for those enterprises? They could be small, medium-sized enterprises to the full large big guys. And obviously, cloud-native, we've talked some of that already, but what advice would you have for them as they start to really prioritize, as some things are now exposed? The collaboration, the tooling, the scale, all these things are out there. What have you seen and what advice would you give a CXO or CSO or a leader in the industry to think about and how they should come out of this thing, how they should plan, execute, and move forward? >> Well, I appreciate the question because this is the crux of most of my day job, which is interacting with the C-suite and boards of companies and partners around the world. And they're obviously very interested to learn or get a data point from someone at Google. And the advice generally goes in a couple of different directions. One, collaboration is part of the secret sauce that makes Google what it is. And I think you're seeing this right now across every industry, and whether you're a small, medium-sized business or you're a large company, the ability to connect people with each other to collaborate in very meaningful ways, to share information rapidly, to do it securely with high reliability, that's the foundation that enables all of the projects that you might choose to... Applications to build, services to enable, to actually succeed in production and over the long haul. Is that culture of innovation and collaboration. So absolutely number one is having a really strong sense of what they want to achieve from a cultural perspective and collaboration perspective and the people because that's the thing that fuels everything else. Second piece of advice, especially in these times where there's so much uncertainty, is where can you buy down uncertainty with...? You can learn without a high penalty. This is why cloud I think is really, really finding super scale. It was already on the rise, but what you're seeing now as you've laid back to me during this conversation, we're seeing the same thing, which is a high increase in demand of, "Let's get this implemented now. "How can we do this more? "This is clearly one way to move through uncertainty." And so look for those opportunities. I'll give you a really good example. Mainframes, (chuckles) one of the classic workloads of the on-premise enterprise. There are all sorts of potential magic solves for getting mainframes to the cloud and getting out of mainframes. But a practical consideration might be maybe you just front-end it with some Java. Or maybe you just get closer to other data centers within a certain amount of milliseconds that's required to have a performant workload. Maybe you start chunking at art and treat the workload a little bit differently rather than just one thing. But there are a lot of years and investments in our workload that might run on a mainframe. And that's a perfect example of how biting off too much might be a little bit dangerous, but there is a path to... So for example, we brought in a company called Cornerstone to help with those migrations. But we also have partnerships with data center providers and others globally plus our own built infrastructure to allow even a smaller step per se for more close proximity location of the workload. >> It's great. Everything kind of has a technical metaphor connection these days when you have a internet, digitally connected world. We're living in the notion of a digital business, was a research buzzword that's been kicked around for years. But I think now COVID-19, you're seeing the virtual or digital, it's really digital, but virtual reality, augmented reality is going to come fast too. Really get people to go, "Wow. "Virtualization of my business." So we've been kind of kicking around this term business virtualization just almost as a joke, but it's really more about, okay, this is about a new world, new opportunity to think about when we come out of this, we're going to still go back to our physical world. Now, the hybrid now kicks in. This kind of connects all aspects of business in every vertical. It's not like, "Hey, I'm targeting this industry." So there might be unique solutions in those industries, but now the world is virtualized. It's connected, it's a digital environment. These are huge concepts that I think has kind of been a lunatic fringe idea, but now it's brought mainstream. This is going to be a huge tailwind for you guys as well as developers and entrepreneurs and application software. This is going to be, we think, a big thing. What's your reaction to that? Based on your experience, what do you see happening? Do you agree with it? And do you have anything you might want to add to that? >> Maybe one kind of philosophical statement and then one more... I bruised my shins a lot in this world and maybe share some of the black and blue coloration. First from a philosophical standpoint, the greater the crisis, the more open-minded people become and the more creative people get. And so I'm really excited about the creativity that I'm seeing with all of the customers that I work with directly, plus our partners, Googlers. Everybody is rallying together to think about this world differently. So to your point, a shift in mindset, there are very few moments where you get this pronounced change and everyone is going through it all at the same time. So that creates an opportunity, a scenario where you're bold thinking new strategies, creativity. Bringing people in in new ways, collaborating in new ways and offer a lot of benefits. More practically speaking and from my experience, building technology for a couple decades, it has an interesting parallel to building tightly coupled, really large maybe monoliths versus microservices and the debate around, "Do we build small things "that can be reconfigured and built out by others "or built upon by others more easily? "Or do we create a golden path and a more understood development environment?" And I'm not here to answer the question of which one's better because that's still a raging debate. But I can tell you that the process of going through and taking a service or an application or a thing that we want to deliver to a customer, that one of our customers wants to deliver to their customer. And thinking about it so comprehensively that you're able to think about it in, what are its core functions? And then thinking methodically about how to enable those core functions. That's a real opportunity, and I think technology to your point is getting to the place where if you want to run across multiple clouds, this is the Anthos conversation were recently GA'ed. Global scale platform, multicloud platform, that's a pretty big moment in technology. And that opens up the aperture to think differently about architectures and that process of taking an application service and making it real. >> Well, I think you're right on the money. I think philosophically, it's a flashpoints opportunity. I think that's going to prove to be accelerating and to see people win faster and lose faster. You're going to to see that quickly happen. But to your point about the monolith versus service or decoupled based systems, I think we now live in a world where it's a systems view now. You can have a monolith combined with decoupled systems. That's distributed computing. I think this is the trend, it's a system. It's not one thing or the other. So I think the debate will continue just like VI versus Emacs (chuckles). We don't know, right? People are going to have the debate, but if you think about it as a system, the use case defines your architecture. That's the beautiful thing about the cloud. So great insight, I really appreciate it. And how's everything going over there at Google Cloud? You've got Meet that's available. How's your staff? What's it like inside the Googleplex and the Google Cloud team? Tell us what's going on over there. People still working, working remote? How's everyone doing? >> Well, as you can tell from my scenario here, my backdrop, yes, still part at work. And we take this as a huge responsibility. These moments as a huge responsibility because there are educators, loved ones, medical professionals, critical life services that run on services that Google provides. And so I can tell you we're humbled by the opportunity to provide the backbone and the platform and the people and the curiosity and the sincere desire to help. And I mentioned a couple of ways already just in this conversation where we've been able to leverage some of our investments technology to help form people that really gets at the root of who we are. So while we just like any other humans are going through a process of understanding our new reality, what really fires us up and what really charges us up is because this is a moment where what we do really well is very, very important for the world in every geo, in every vertical, in every use case, in every solution type. We're taking that responsibility very seriously. And at the same time, we're trying to make sure that all of our teams as well as all of the teams that we work with and our customers and partners are making it through the human moment, not just the technology moment. >> Well, congratulations and thanks for spending the time. Great insight, Will. Appreciate, Will Grannis, managing director, head of technology office of the CTO at Google Cloud. This certainly brings to the mainstream what we've been in the industry been into for a long time, which is DevOps, large scale, role of data and technology. Now we think it's going to be even more acute around societal benefits. And thank God we have all those services for the frontline workers. So thank you so much for all that effort and thanks for spending the time here in theCUBE Conversation. Appreciate it. >> Thanks for having me, John. >> Okay, I'm John Furrier here in Palo Alto studios for remote CUBE Conversation with Google Cloud, getting the update. Really looking at the future as it unfolds. We are going to see this moment in time as an opportunity to move to the next level, cloud-native and change not only the tech industry but society. I'm John Furrier, thanks for watching. (upbeat music)

>>Ly from San Diego, California at the cube covering to clock in cloud native con brought to you by red hat, the cloud native computing foundation and its ecosystem Marsh. >>Welcome back. This is the cube live coverage three days wall to wall coverage of CubeCon cloud native con in San Diego. I'm Stu Miniman. My cohost for these three days is John Troyer. And welcome to the program. First of all, from the keynote stage, Heather Kirksey, who is the vice president of community and ecosystem development with the Linux foundation for CNCF part of Linux foundation and from some of the technology behind the scenes joining her, Sandy Pennys are the SVP of strategic engagement at attorney. Thank you so much for joining us. Right. So Heather, this was a really cool demo with a lot of things going beyond the scene. Uh, if people actually go watch an interview we did yesterday, uh, with, uh, the people at red hat talk about, uh, it's a good thing. It was cloud native because there was a brownout cower was lost, had to rebuild the entire thing. Um, and everybody up on stage, you know, the next day, didn't know anything the wiser. So, uh, you know, really cool pot on stage. Uh, you know, talking about 5g global engagement, China mobile, uh, other banks. I like, um, I'm sorry, other mobile providers, uh, like from Canada and from Europe involved in this. Um, give us a little bit of the, the, the foundation view as to, you know, how something like this comes together and how you get participation from, you know, the technology providers, the telco providers. Uh, you know, it takes, it takes a village. >>First of all, you have to be slightly mad. Um, but I mean that's, that's really kind of the premise of open source, right? Is that people come together and they build things together. And so we done some demos in the past, um, where we looked at sort of, you know, the, the modernization of the central office. And so we had had some, you know, some tea, you know, some tapes of folks that had been building things. And then we, you know, we sent out a call basically to the community and said, yeah, we'd like to do another one. And what we're going to try to do is full five G full called native, if you're interested in joining, yo come on. And so it just ended up that basically 15 organizations said, yes, that sounds like something that we would like to prove out. And 80 volunteers across those organizations ended up working on it. >>My understanding was about four months, uh, to, to put all the pieces together, bring us, bring us through kinda, you know, how the stack gets built and. >>Yeah, well I mean, so amongst some of the issues where you have five G itself is fairly new. So we, we started with sort of the complexities of getting equipment, you know, and getting five G radio. You know, we had a partner in China who had a 5g handset that then wanted us to indemnify, you know, all of these things. Uh, to the extent that like we as a nonprofit didn't feel comfortable signing the agreement. So it was, you know, it started actually just, I mean, this was so cutting edge with in terms of the five G aspect that getting equipment was challenging. Um, yeah. And that's before you even get to sort of the challenges of building the stack. So, um, so, you know, it started kind of figuring out what pieces started building things, um, you know, found some yo gaps in Coobernetti's around supporting the, the, the sophistication of networking that we have to do. Um, so we figured out how to work around it for the demo, but what we want to do is start upstreaming some, um, some changes into, into some of the projects there. >>All right, so San Deepa, your company's one of the providers inside here. So tell us what, what drew you into it and how it is living on that bleeding edge was something like five. >>Well, it's, it's absolutely thrilling living on that leading edge. It's exciting, you know, lots of risks. But the payoff yesterday was fantastic. Be able to complete that call on stage. You know, from our perspective, we were invited in fairly early on into the project. Uh, and we're, we're thrilled to be part of it. And as once we understood the scope and what everyone's trying to do, we realized like we're providing the, the SD wan for this project, connecting the public cloud, the private cloud, and we're deploying, uh, using containers, Kubernetes. And we are able to bring the entire thing together by creating one virtual network so that it's seamless and all the underlying infrastructure, that layer, layer two, layer one, the underlay is just completely invisible to be able to transport that call, to do the signaling, to do everything that needs to be done. >>So for us to become part of this project was really powerful for one, for us to just, uh, just work with some of the companies that were there, like the Linux foundation and tell the Nobel all the other big name players that were out there. And so that was, that was amazing. An amazing experience. But then the community itself that came together, like the people that we met, we met them all at the show. It's all phone calls, we met them all at the show and it really is a community filled with love and a real drive and desire, uh, to build something new and different. Right. Sprinkled with a bit of crazy. >>Yeah. >>Well, so I mean this is a, is a great example of how the Linux foundation can be a catalyst here. I mean one of the Linux foundation is so broad, the CNCF is so broad and you're operating in many domains in this being, you know, bringing the telecom world together, being one of them. But I don't know, can you maybe just talk a little bit about the ecosystem and the unique challenges of, I mean there are some times open source approaches that are a little more strongly opinionated. Like this is going to be our, this is, this is what we're working on. This is going to be our stack. This is the projects in our stack. CNCF has a obviously a, a well documented and open, uh, process around bringing projects in and projects graduating. How does that make your >>life harder? >> Yeah. Well, I mostly focus on our networking projects and working with the telecom industry. And yeah, I mean Telekom definitely likes to be opinionated, you know, I mean that's, that's kind of, and our soul. Um, and so that is also is useful because really at the end of the day, interoperability for the type of scale that telecom operators has is very important. Right? It's um, yeah, some of the cloud providers, right? It's up to the people who want to run on them to like work with their API APIs. But the, the telecom operators, they're using all these applications to provide services to their customers so they have a business need to make sure everything really works end to end. And so there's actually an initiative right now between, um, the LF networking projects and the GSM, uh, where we're really trying to, not to prescriptively, because we do also understand that that doesn't know, you're not going to get the exact same pieces of software that worked for every single operator's network or business, but with a lot more sort of UPenn opinion around, you know, what should the cloud platforms, whether they are VM based or container based, what do they look like and how can we start doing things like compliance and verification programs around commercial implementations, whether it is the underlying platform or whether it's the applications on top. >>And so that's the thing that, you know, we're, we're working on right now because at the end of the day, we're really needing to help them accelerate their, their deployments and, um, get that agility. That's the promise of. >>So, Heather, I want to go back to something you mentioned earlier that there were some gaps in Coobernetti's speak to how fast the community rallied around to, you know, allow this, uh, solution to go forward. >>Yeah. So, um, I'll, I mean basically this is what happens when you get a bunch of engineers together, you know, for the demo itself, we weren't going to fork or make our own sort of changes Kubernetes. So we, we did some things to, to tie things together. Probably you've seen SD when I see Rampart. But yeah, one of the, one of the big issues is just being able to expose multiple interfaces. Um, which, you know, in a service writer network you have multiple interfaces, right? Um, fi six support is another big issue. And so being able to expose those natively in Kubernetes or natively just using cloud native, it's something that we're still working on. Um, there, there are a couple of projects that are looking at that um, network service mesh. Uh, you know, maybe there's some different CNI who are beginning to think through that problem. Um, none of them were quite there. So yeah, we didn't want to start forking and writing pseudo Kubernetes code. Um, so we kinda just use some of the tools and the players in place to work around that. But we, what we would love is to upstream that code and to main line. Sure. >>Yeah. So Sandy would love to hear a little bit more about how SD wind fits in the entire multicloud discussion. Um, we were, we had a pop here in San Diego. There's a lab in Montreal and then there is a, a lab in France and we use public, uh, a combination of, uh, the Alibaba cloud in North America and in Europe. And what we had to do is we had to create a way for the phones to reach each other. So we had to do this initial signaling where you do the request and you have to get to all of the different pods to make the, to make the request. So what we did is we put our, um, containers and all the, in all the cloud providers and also in the labs and we were able to create that private network. And that was what allowed for the call signaling to happen. >>And for the actual call to actually be completed from one to handset to the other. Cindy, you're uh, uh, you talked about community, you know, you're an engineer, a stye in our eyes, a word is SDN when a word, I suppose they usually hear more on an enterprise side of the show. Right. And, uh, you know, talk with lots of folks who provide, you know, in, in that space. This is a little bit different, right? As you, I don't know if you've had a chance to wander either in the sessions or on the floor, kind of curious. There is some, a little bit of networking out there, a little bit networking, security and a couple of other, certainly some service mesh stuff. Right. I don't know. What are your thoughts about how this is growing up on the, in this open source world? It's, listen, it's growing up very fast, right? >>That's, that's 100% sure. I mean, the show is, is, is growing like leaps and bounds every year. It's insane. And that, that, that debt, that performance yesterday was in front of, I don't know how many thousands of people, but I mean that was huge and it was amazing. Um, and you're right, you know, normally when you're thinking about this kind of stuff, you're not necessarily thinking about the networking, but at the end of the day, you know, Kubernetes is a platform or a tool. SD wan is a tool. Um, and if you take all of these tools and put them together, you can actually build something wonderful, right? And that's what we did in this project here. We were able to deliver a 5g call and you know, run it everywhere. So I think what's important in the community, even though this is really primarily a developer event and developer show, you are seeing some edge people here, you are seeing some networking people here and people are the awareness of, Oh wait, you know, we need edge and we need networking to actually build, you know, commercializable platforms or products, right. Is, it's that awareness that's just, I think this year at least is really starting to come out. And I think next year it's going to be even more prevalent and you're going to the show me evolve, you know? And that's why where I kind of see it going. >>Yeah. I mean, I think application developers and general tend to think networking is amazing. It just happens to be, they're sort of like plumbing and power. Um, but to actually deliver it is a fairly complicated challenge and it's part of the reason we want to do the demo yesterday was actually to kind of show some of the challenges and to kind of show what it takes to set up a mobile network. So the F we're going to use Kubernetes to do that. They, you know, the developers here would have a little bit more understanding so that when we were like, we need, you know, we need multiple interfaces or we need to be able to address things in a certain way. They, they, they have a better understanding of why so they can help us from the telecom industry, uh, design and build it out. >>Yeah. I guess the last thing is we've had the cube of the open source summit. We've been to the open networking summit. Uh, you know, when you get off the stage, you put, you know, there's so many different open source projects that Dan just give us a view as to how they span across all of these communities to make sure that we don't end up with a lot of fragmented things. How does everything kind of pull together in the networking? All right, so, so many projects across so many sources, how does, how does Linux foundation make sure that we don't just end up with, you know, siloed, uh, you know, places? >>Well, yeah, to be, to be honest, it's a little bit of a challenge because sometimes the reason that we end up with multiple projects serving what looks like similar needs is because there are different technical approaches. And so might be one will work better than the other. I mean, that's kind of the idea of open source that people can try different things. Um, and, uh, we just try to help people have more, less of a not invented here sort of mindset that if there's a good reason, uh, to try a different approach, go for it. And let's see what, what takes root and what flowers. Um, but you know, also other people are doing things, so just because you're not aware of them. So we, you know, there's a lot of stuff around education and, um, sharing of information that we try to do that, that helps with that. But I mean, yeah. >>Heather, Cindy, thank you so much for joining us regulations on, on the demo. A lot of hard work. >>Thank you. I just have to tell you, I feel as though a thousand pound weight has been lifted off my shoulders out, but it was extraordinarily fun to do actually. >>It was fun. Thank you for John Troyer. I'm Stu Miniman getting towards the end of our three days wall-to-wall coverage. They're running for the tee shirts that are left, but we've got a couple more interviews. Thank you for watching the queue.

(techno music) >> Live from Mountain View California, it's the Cube covering DEVNET CREATE 2019, brought to you by CISCO. >> Hey, welcome back to the Cube. Lisa Martin with John Furrier covering, day two covering I should say, CISCO DEVNET CREATE 2019, at the Computer History Museum in Mountain View California. We're please to welcome Prashanth Shenoy, the VP of Product Marketing, Enterprise Networks and DEVNET at CISCO. Prashanth it's great to have you join John and me this afternoon. >> Great to be here. >> So, this event is growing year after year. John and I have been talking about this very strong sense of collaboration and community with the attendees that are here in person. One of the big things yesterday that Susie was talking about was this, What's coming in Wi-Fi? Talk to us about this next-gen Wi-Fi and how it's going to be so impactful to everyone. >> Yeah it's, it's a phenomenal technology inflection point this year, I feel. We can't believe it, but you know, when was the first Wi-Fi that got started? >> 2001. >> Pretty close, 1999. So this is the 20th Anniversary of Wi-Fi. It's come to be life, right? so it's now in its fourteenth. >> I'm off by two years. >> Right, so yeah, I know. (laughter) But, 802.11A was the first Wi-Fi technology, and the speeds were ... promised speeds were 54-megabits, okay? Ah, but the real speeds were, like, 6-mega or something, right? And now, this is the sixth generation of Wi-Fi, so we've come a long way and we take it for granted in our daily life. >> Absolutely, we do. >> I don't think I can think a day without having Wi-Fi. >> Everyone talks about Wi-Fi. The kids, What's the Wi-Fi password? (laughter) I change it all the time, kids, this ... parents, pro tip. Change the password. >> Yes. You got to listen. They'll call you, your kids will call you back. It's an important tip. >> Full-on security, yeah. >> But distance is been an issue, distance, and >> Yeah. >> Radio Frequency has certain >> Yeah propagation technique so, >> Yeah. >> Are you close to the router? That room doesn't have, this doesn't have it. So there's always been distance. And throughput. >> latency, throughput, capacity. >> Most people say who's streaming Netflix, Wi-Fi is down, so again people know this they experience it everyday. >> Exactly. >> What's the big hubbub about Wi-Fi 6? What's different? I got a little preview from Todd so I'll let you explain it but >> Yeah. >> What is the notable bullet points of why it's different? >> Yeah. >> And, Why it's a game changer? >> So it's, as with every technology, three things that it always brings up, better experiences, better capacity, increase capacity, and better battery savings, which I think is very important for users but more importantly useful for IOT applications, which is ... I'm very very excited on what its going to unleash when it comes to IOT. It's been in the fringe side of IOT, like oil and gas mining utilities is what we think when we think of IOT. And now we're going to think IOT in corporate space like this, right? Each one these devices are IOT devices now, like your HVAC systems, your lighting system, air conditioning systems, physical surveillance cameras. Everything with the Wi-Fi is IOT. And because of this increased capacity, an increase density, high density environment where this capacity becomes really critical, imagine 20 devices simultaneously using Wi-Fi to communicate high Bandwidth intensive application. That's when Wi-Fi 6 becomes really critical and powerful and that opens up a huge - >> So more coverage area. >> Yeah. >> With the Antenna. It's MIMO Antenna. >> Yeah. >> And Bandwidth, right? >> Capacity and Bandwidth, like compare to .11A, and even .11AX, right it's up to 4X better capacity, 4X better battery savings and the promised throughput of like six gigabits, right, so, But the key part here is simultaneously talking to multiple devices at the same time. And that is very very crucial because of technologies ... I don't want to geek out here, like OFDMA and all this etc. >> Well let's all ... architectural because one thing Susie brought up was, architectural shifts are going to be the big game, One of the game changes you brought up and you know Wi-Fi ... and I have seen it grow from the beginning, I remember when they first came out was a revelation and you know the battery power was an issue but it always was viewed as a peripheral to the network. >> Yeah. >> You bolt on Wi-Fi and just basically extend your land - >> Yeah. >> To use network parlance and now you're seeing people working on making it much more Core 1 Network. >> Absolutely. And Meraki kind of shows the benefit of having wireless and wired - >> Yeah. work together as one. >> Yeah, absolutely >> This seems to be the thesis behind Wi-Fi six. One core thing. >> Yeah. >> Not a bolt-on extension. >> No, absolutely. I think there's a saying which is the reality, behind every wireless there are tons of wires, right. So, 'cause everything that's connected to the wire infrastructure, and with the Wi-Fi 6 now having increased capacity and increased density, it's causing a cascading effect into the rest of the network infrastructure so it becomes highly, highly crucial when you architect your network infrastructure not just to think about wireless but what happens to the access switch, to the core, to the distribution, to the aggregation. And that has a compounding effect, like multi gig speeds in the access to 10 gig to 40 gig in the core going all the way to 100 gig, right, so, the whole performance and reliability to have that immersive experience that Wi-Fi six needs to bring in, needs to be there. >> so for developers and entrepreneurs out there who always look for the white space, CISCO is a big Multi-Billion dollar company. You guys got big market share, whenever there's big moves like this it causes a new change in the order, the pecking order - >> Yeah >> of companies, it changes the landscape. This is going to be a game changer because it's going to create the new opportunities to create new things. >> Yeah, absolutely. >> What are some of the things that you see out there you could share for people watching who are you know hacking around creating things who say, I want to create something big. What's the enablement? What are some of the things that you see happening that are going to be emerging out of this? >> Yeah, a lot of Fringe technologies that are fringe right now are going to be mainstream, like imagine 2006, When iPhone came in, right so and we were just having the discussion, like, that came in at the heels of major shift in connectivity, that's when 3G came in, right, at that point and multi-megabit capacity, and you saw new applications come in. Now Uber, Lyft, all these kind of applications were possible because of the connectivity. And now, Wi-Fi 6 along with 5G will unleash the next wave of applications. So, first thing is immersive applications, things that are VR, AR, it's used for gaming right now, and kids use this, you're going to see that come in hospitals, where surgeons can do remote surgeries, they can have high-density imagery of your brain, for example, as you're operating, being sent to a remote expert and on the fly, make decisions, right? Like, that is going to be pretty normal and standard, in fact, quite a few of our customers are testing this out, right? VR learning, for students, like, if I were to go ... Like, imagine if you are at the Lincoln Memorial in Washington, August 1963, right, listening to MLK "I Have A Dream" speech, and you're in the crowd, immersed in the VR, like, which student wouldn't have more recollection and really connect with that, right? >> I'm sorry, wait - >> You're going to see more and more of these, so it's a better way of learning, and really getting that learning sticking in your brain, you're going to see more of that happening. And the same goes with retail experience, you're shopping, it's going to completely change the way, because of all these immersive experiences. And then, because of the higher density, you're going to see entertainment venues like stadiums where everybody now wants to share their experience to the outside world, and livestream it, right? And I was talking to Carnival Cruise Line, who's one of our customers, and they call themselves City On The Sea, which means, a cruise ship is nothing but it has entertainment, casinos, hotels - >> Lots of food. (laughs) >> Lots of food, swimming pools Concerts happening, and when people took vacation they just wanted to disconnect from everything in the world, right? Now, it's completely reversed. They want to connect full-on, and share their experience in the land, right? And they want to stream it live, 4K. And, these cruise ships are transforming themselves to provide this always-on, fully-on immersive digital experience, and they're creating things like a mobile app to order pizza no matter where you are on the ship. Within five minutes they're going to find the exact location of where you are on the ship and deliver pizza to you, right? These kind of experiences will happen! >> And you know, the perfect storm in all this too, is that the Cloud earnings are coming out, we saw Microsoft's earnings yesterday, Amazon Web Series' earning >> Yeah. do proud of Amazon today, the Cloud stocks are up, the Clouds are growing at a massive scale, they're a power source for these application developers. >> Yeah. >> As well as the on-premise business. So you have, you now have the perfect developer environment - >> A hundred percent. >> To create these new wacky ideas that will be standard. I mean, what was once ... what we take as standard as you mentioned, was a wacky idea in 2006. >> Yeah. >> Location services, checking into a hotel with my phone and having - >> Yeah. >> Cars being delivered to me, what? Who does that? >> And this, this becomes a reality, and Cloud really increased the pace of innovation, right? Now it's kind of cheaper, you don't need to get your own server, you can kind of swipe your credit card, get a bunch of VM, start building applications, and now you have the required bandwidth capacity and density in your infrastructure, and you have the right devices right now to bring that experiences to you, right? So, now it's this trifecta of things, awesome devices, the network ready to deliver those experiences, and Cloud being able to scale out to build those experiences. >> Prashanth, I know you've got a big announcement coming up on the 29th, it's a virtual event, I think Cisco.com, they can probably find out with the URL where the event is, without revealing all the secret sauce, I know you guys had Wi-Fi 6 inside Cisco, >> Yeah. >> testing it out, I heard people in the hallway here, >> Yeah. >> Talking about it, um, and they're pretty animated in their commentary. Can you share the vibe and what's it like when the engineers look at the data, when they say, we just deployed the Wi-Fi 6, what was the reactions, um - >> Yeah. >> Were they blown away, was it mediocre, was it - >> Yeah. >> What were some of the things that they were saying, what was the feedback? >> We were piloting that, and the best way to look at it is, if you go to the wireless dev center on DevNet, you're going to see that we compared a 4K video running with Wi-Fi 6 and without Wi-Fi 6. I think the results speak for themselves. Like, the kind of experience that you're going to see, it's going to be beautiful, and when employees look at those things, and I talked about a few experiences, last week we had a thing called Cisco Beat which is internal employees that we rally around and talk about technology, but more importantly, what it means to us as human beings in a personal way, and what it means to our customers, and they were blown away with some of the applications that are going to be mainstream in all of the industries that I talked about, right? Like Healthcare, hospitality, education, entertainment venues, et cetera. >> What's the low-hanging fruit use cases? What's the things that are going to be right obvious, right out of the gate for companies to implement, in terms of deploying Wi-Fi 6 and seeing immediate benefits? >> Immediate benefits is high-density environment, period. Like student lecture halls, convention centers, areas like this, where everybody wants, like, understand what's going on, but be digitally and visually connected, right? It's not only about email checking anymore, That happens automatically. But if you're here and you want to watch Susie's keynote livestream right now, with high density, and 20 other people want to watch with you, on their devices, it's possible, without a hitch. So that seamless, always-on experience becomes a reality that people can easily test out in small environments, right? Not in their entire environment, where there are high-density of people, accessing multi-media applications or high-bandwidth applications, so I feel that's a low-hanging fruit. And then it's going to go more and more towards IOT applications where sensors are getting connected, like some of our customers are brewers, have hundreds and thousands of sensors in their farms, in brewing machines, and they want all of their data to come and look at that simultaneously for quality control, right? Beer, no matter where it's made, should taste consistent, right? So you can see that coming to life, because now all of these can be connected, and because of better density and better capacity and better battery savings for these IOT devices that Wi-Fi 6 provides, you make these applications possible. So you're going to see very vertical-specific applications coming more and more with Wi-Fi 6. >> Vertical-specific, because you mentioned a number of different customer examples, you know, ranging from retailer, to - >> Yeah. >> Carnival Cruise Line, it's now this connected city - >> Yeah. >> Are there any verticals you see where, when you're talking with customers they're not quite there yet? >> Yeah, that's an interesting thing, it's ... for a change, you always have these early adopters but there is a lot of laggers who are just watching, waiting on the sidelines saying, mm, that's not for me. With Wi-Fi 6, there's been a lot of industry excitement, I would say, like manufacturing full-on, right, just coming on board. Retail, higher education, are always in the early-adopter phase, because for them, and there has been studies shown to say this directly impacts their brand - >> Yes. >> like customer experience defines brand. >> Oh, absolutely. >> And Wi-Fi, equals customer experience these days, right? So, you're going to see all of these industries really, I think I haven't seen much in maybe financial services, if you will, I think that's the only thing that I can remember, transportation, big on, like, machine to machine communication, autonomous driving is possible now because of 5G and Wi-Fi 6, right? So, and you are seeing more and more of this industry - >> This is right in your wheelhouse, and you guys have been pushing the edge for a long time, SD Wind, campus networking This is not new to Cisco. >> Yeah. >> But now with Wi-Fi 6, it literally lights that up. >> Yeah. Yup. >> Pun intended. >> I mean, you can now enable those environments to be completely robust, fully addressable, data-driven - >> Yeah. I think data that you mentioned becomes very, very crucial in this, because, especially now when you have so many more users, so many more devices, so many more applications getting on the network, people are really trying to figure out, what do I do with this? How do I get visibility into ... am I delivering the right experience? Am I providing the right security, et cetera, right? So, data becomes extremely crucial, and you'll see emergence of ML and AI technology because it's going to be humanly impossible to look at all of the data and make sense. So you've got to do machines, do their job, figure out patterns, air on dwell time, foot traffic, predictive ways of saying things may break, the experience may change, and predicting that even before they happen, and giving the right insight to the IT in the line of business, so Wi-Fi 6 is going to open up a whole new slew of ML and AI-driven operations and management capability too, so that's pretty exciting. >> When are they going to pull up a GPU on the Wi-Fi 6 devices? >> (laughs) Oh, it's happening. >> It's ready? >> It is going to happen, because you can run Edge computing applications right on Wi-Fi 6 devices, so you're going to see all of that, so, application hosting capabilities with GPU powered applications are going to be there. >> Just a network connection, right? >> Yeah. So you are going to see that, and frankly even I don't know what some of the Edge computing applications with Wi-Fi 6 will be, but we are seeing more and more of these coming ... DevNet buying tech, yeah. >> Well we did some research, we keep on a part of our SiliconANGLES team, where we prove that it's easier and more cost-effective, rather than moving data around, you move compute to the Edge - >> Edge. >> And then you use the backhaul, 'cause it costs money to send data around the network. It's costly. >> Yeah, absolutely. Yeah, and the autonomous cars was one great example, right? Like, it's a life-and-death situation when you are letting the car drive itself, right? So, you can't send all the data to the Cloud and say, analyze it for me. There are instantaneous decisions to be made, in milli-micro- nanoseconds, that need to be done on the Edge. So I think autonomous cars are a great example of Edge computing that needs to happen right on the Edge. The learning can then start happening in the Cloud, right? As in when these things get more and more smarter, you send all this data, you correlate all the intelligence there, you send it back to the machines. So you're going to see these kind of Edge computing applications. >> So you're excited by Wi-Fi 6? >> Nah. >> (laughter) >> Wi-Fi 6, so that's an even number, is that to be odd numbers, or lucky, I mean, the naming convention? >> No! >> Is there a - >> We want to be better than 5G. (laughter) So 5G is fifth generation of cellular, >> Okay. >> Wi-Fi 6 is sixth generation of Wi-Fi, right? I mean it's - >> So you're going to trump the 5G with the 6, >> Yeah. >> Kind of get ahead of it. >> Because it is truly the sixth generation of Wi-Fi. >> Okay, that's what it is. >> If we were to go back in time we would call 802.11ac, Wi-Fi 5. Right? It's kind of not that easy to say, but yeah, so Wi-Fi 5 happened like three or four years back, and now it's Wi-Fi sixth gen, so. >> We'll have to do a deep dive in the studio sometime, >> Oh, absolutely. >> on getting into all the spectrum issues, you know, the channels - >> Yeah. >> And the antennas and chains and all that good stuff. >> Yeah. There's a lot to geek out on that. (laughs) >> Yeah, it's going to be fun. >> So you talked about, kind of before we wrap up here, you talked about, you know, everything really kind of being related to, or how this can help companies with brand, and brand is everything to any type of company - >> Yeah. >> We talk at every event we go to about how it's all about customer experience. >> Yeah. >> So my last question for you is, how is Wi-Fi 6 and some of these new technologies that clearly you're excited about, how do you think that's going to change the experience for your internal customers, and from being able to get things out faster, to your external Cisco customers? >> Yeah, when you say internal, our own employees - >> Yes. >> Our R and D? >> Yes, exactly. >> Absolutely. So I think, and one of the examples was shown right here, right, so, and I'm connecting the two answers that you had, like, there's a lot of technology details behind what we do, right, we spend tons of money doing R and D, but we wanted to expose that to our own customers, to our channel partners, and to our developers, right? So, this is something that Wi-Fi 6 brings a lot to our customers. So, all the goodness, the intelligence that we have hidden in our network, now gets exposed, through these APIs, to our developers, and to our own customers. So the internal customers of ours, which are engineers, Cisco IT, are tremendously excited to see what that unveils to us, right? And DevNet provides that platform where you can expose this through APIs, whether it's for security, whether it's for application experience, whether it's for better operations, and have new co-creation of applications that we haven't envisioned, new ways of ecosystem partners coming up and building new applications that we haven't envisioned. So, for our own R and D teams, it's pretty exciting. Because - >> Big catalyst. >> Yeah, just, exactly. You're just providing the platform, it's the catalyst for innovations, and that's what the internet was when we created that, right? We didn't know the internet of 20 years back is going to be the internet of today, and we didn't envision that, but here we are. >> Well the ETI's going to open up your market, because you're going to create an enablement to pass that forward, the opportunities to other developers to come up with the ideas. >> Yeah, absolutely. And that's the whole idea, is to provide them a platform to come up with innovations and ideas, and help share these ideas to other folks, right, because when the minds meld, it gets better and better. >> Build some good apps, make ... get it distributed on Wi-Fi 6, make some money, build a business, create a great app - >> Runs on your feet. It's step by step. >> It's a big inflection point. >> That's a pretty good motto. >> It's an inflection point. >> It is. It is truly, I believe, an inflection point. Mainly because, frankly, Wi-Fi 6 and 5G coming together, truly, because me and you as a user really don't care whether I'm on Wi-Fi or cellular, and we shouldn't, right, all I expect is no matter what I do, where I go, and I use my device, I should get the same consistent seamless experience. >> It works. >> Well I don't have the unlimited plan, so I'd love to have it - >> You would with that. on the Wi-Fi. (laughter) >> So you've got this virtual event next week on the 29th - >> Yeah. >> Is that going to tee up anything, any exciting things we're going to hear at Cisco Live a few weeks later? >> Oh yeah. Big time. Big time. (laughs) >> Any teasers you can give us? >> Without getting fired? Yeah, it's going to be tough. (laughter) No, yeah, I think things that we talked today are what we're going to explain more, and we're going to give more flavor on what Cisco's actually is actually doing from our products perspective, solutions, partnership perspective, to bring it to life, right? So, that's really exciting, so I highly encourage the folks that are watching this to register for this on Cisco.com Go Wired For Wireless event, so it's fun, because we've got a lot of industry experts, customers because that's where rubber meets the road - >> Absolutely. >> And that's where the top good applications, how far along they are, what are they testing, what are they trying out, and then we can geek out on all the technology, right? But it always starts with why, and why does it matter. So ... and that's why I'm excited, yeah. >> It sounds exciting. My cheeks are hurting from smiling. Prashanth, thank you so much ... right? ... for sharing your enthusiasm, your energy and expertise, it's been fun. We look forward to, uh, the virtual event next week, and hearing more about what's going on at Cisco Live. >> Thanks Lisa, thanks John. >> Well, our pleasure. For John Furrier, I'm Lisa Martin, you're watching The Cube live from day two of our coverage, of Cisco DevNet Create 2019. Thanks for watching. (techno music)

(funky music) >> From our studios in the heart of Silicon Valley, Palo Alto, California, this is a CUBE conversation. >> Hi, I'm Peter Burress, and welcome to another CUBE conversation from our beautiful studios in wonderful Palo Alto, California. Enterprises have always struggled with how they're going to add more end points into their networks. More users, more devices, more machines, they need better speeds, lower latencies, greater security. How are they going to do it? Well, we've got a new set of standards coming along within the wifi world as well within the cellular world, to provide those greater densities, lower latencies, higher performance. Wifi Six is what we talk about within kind of the extension of the 802.11 family of protocols, but Wifi Six, like every other significant transformation has required that enterprises think differently about certain attributes of networking. So to have that conversation, we got Sachin Gupta who's a senior vice president of Cisco here, Sachin, welcome to theCUBE. >> Thanks Peter, very excited to be here. >> Alright, look, so I'm a CIO, and I am working with my team to incorporate these new technologies that are going to improve the quality of my endpoint services, and I'm looking at Wifi Six. What am I mainly worried about as I think about adopting these new technologies? >> So just before we just get into adopting of the new technologies, why are you going after Wi-Fi 6, like what's the reason for the CIO? And quite simply it's, all of the new use cases that are coming on, like everything, all the IoT endpoints have to connect securely, all the bandwidth hungry end users, and the immersive experiences I'm looking to enable, it could be augmented reality, it could be virtual reality, all those are driving a need for me to rethink access, and rethink the network overall. And Wi-fi 6 is one critical component of that. Wi-fi 6 promises four times the capacity, lower latency, a greater range, so the things you talked about in your set-up. So it's a wonderful technology to start addressing some of those problems, but in of it's own it's not sufficient. You got to go well beyond the standard in order to address the CIO problem. >> Okay, so specifically, so think about some of the adoption problems. I got the use cases nailed down, how am I thinking about where things are going to go? Am I going to have to lay out the network differently? What kinds of practical things do I have to start thinking about? >> Well first of all, you have to think about why are you moving, where are you moving with Wi-fi 6. So again, capacity, lower latency, better battery life, the new use cases it enables. After that you need to make sure that whatever you're going to connect, will interoperate. Right? So look, sometimes a standard comes out and it can take a few years before the endpoints and the infrastructure actually get the maximum capability from the new standard. And so we worked proactively with the likes of Samsung, with the likes of Intel, to make sure those endpoints, which any of the new Samsung Galaxy S10, already supports Wi-fi 6. Interaccess points work together to give you the best experience possible. So that's sort of step one. But there's many other things we need to think through. We're also thinking about the problem of just onboarding onto Wi-fi. You know the experience to onboard onto cellular, right? >> Oh, sure. >> You get off airplane mode >> And it works. >> It just works, you're on. What's the experience like on Wifi? >> Well it's certainly not just getting a message from my local carrier that I'm now roaming. You got to get on, yeah it's a lot more involved, you got to authenticate, exactly. >> Give me your phone number, give me your room number, I'll text you something, get on to the It's cumbersome, okay? And we want to make Wifi onboarding to something we call open roaming. Open roaming is a Cisco project, it's a consortium we've set up. That takes all the venue providers and the identity providers, brings them together. So that when you go round, and you roam with Wifi, you onboard the network just like you onboard with cellular. >> So get essentially the same experience you get in the cellular world. >> Same experience. It makes it easy for you to get connected. So those are some of the basic things, but you got to go beyond that then. Now you have to worry about, okay, what do those endpoints require, alright? Well, first of all you need to recognize what the endpoint is. Is this a light bulb, or is it a heart-rate monitor, is it a tablet of some sort, what is actually connecting? So for device recognition, and to understand the experience you're getting, I need virtual analytics. And that's something the infrastructure now needs to provide. So we for the first time now, we've embedded our own ACIG, our own silicon inside the access point. So that we can get visibility from layer one to seven. And now we can pinpoint, what is the device, is it behaving in a compliant way, and how do I deliver the right experience for it. So these are some of things to think about as you move, it's a yes I want Wi-fi 6, but again tying in back to the problem you're looking to solve, how does the entire solution address your problem. >> Alright so we've identified some of the issues that have to be addressed here, and Wifi Six is here. You said the Galaxy S10 already supports it. >> Our access points are shipping, yes. >> So talk to me about the role out of some of these new technologies, these new devices from Cisco, and how customers are going to have to think a little bit differently as they start to plan out their new network structure. >> That's a great question. So I think it's not about hey, I'm just going to roll out new AP's. You should really rethink networking. What am I trying to provide here? And that's why we came out with an architectural approach across the board which is intent based networking. And what we're really talking about there is how do you automate all of the things that IT needs to do, to deliver the security and experience for all of those users and things. How do you get the data, the power of data, the analytics out? And how do you deliver security and policy. >> But it's in the context of the application and the work that's being performed. >> Yes, it's the users and devices and the applications and data. What are you trying to achieve? That's what intent based networking is all about. And so, I love how your asking the question because if you think about the wireless AP's, we only talk about the top already with the endpoint, right? But then I think about the switching architecture, are you segmenting all of that traffic? Is it fully automated? Do you have an identity and policy engine? Can I take the location data that's coming out? Cause remember these APs now are multilingual. They speak BLE, they speak Zigbee and Thread, they're also Wi-fi 6. So how do I take the location data and deliver new business outcomes? How can I tell you that the wheelchair has left the premises? How can I tell you how many people walked in your store, verus walked outside it? How do I get you better asset utilization? Those outcomes are provided at the software step at the top. So you should really be thinking about what am I trying to do for my business, and what architectural approach allows me to deliver those outcomes that I'm looking for. And yes, Wi-fi 6 APs are one critical component there, but you should think about the entire solution though. >> So we got new access points that are Wifi Six enabled ready to go, how far back does this change go into the network? >> So the Wi-fi 6 APs, the beauty of these Wi-fi standards is they're backward compatible. So you can take all kinds of older endpoints, multiple generations, and get them to work in a Wi-fi 6 new environment. So that's nice because it's not a rip and replace of all your clients, when you put the new APs in, they're backward compatible, that's always the case. And a lot of the new software stack and the technology that I talked about with intent based networking, works with at least the two previous generations as well. So if you want some of that telemetry and analytics and security, you can start getting that with some of the APs you may already have, and then when you bring in Wi-fi 6, it's sort of purpose built for that architecture. >> Alright, so we've talked a lot about the use cases of the business side, let's spend a little bit of time describing the fact that you've got the sidecar co processor for analytics inside the APs. How is that going to change the work of IT, the work of network management and administration and security? >> That's a great one So, I'll give you one example of what that does. Today, if you want to go troubleshoot a wireless issue, you're literally walking around with a sensor acting like a client to go figure out what the behavior is, what's going on, how do I figure out what the interference is, why is the experience bad, right? Can take you hours, weeks, days, it's very costly. These new APs, and with our solution with W-fi 6, first of all, I get data with my relationship with Apple from the endpoint. So I get the view from a real client. Then on the access point itself, with that co processor, I can get layer one to seven data and packet captures to see did you fail during authentication, was there some sort of RF issue that's happening, what exactly is happening that's interfering with what's going on? Or, maybe the problem is not even there, it's somewhere else in the network. And the beauty of our Cisco DNA Center solution, which is our controller in intent based networking, is we see end to end. We see the entire network and we can help you pinpoint where that issue is and save a whole bunch of money you'd spend troubleshooting, to deliver the right experience. >> But it sounds as though some of the, historically, some of the analytics associated with network administration was very focused on the device. Intent based network is intended to focus on the application and service that's being provided, but the analytics didn't follow. So know what you're saying is we're going to follow the analytics so that the applications, the services become primary citizens within the network. >> That's exactly right So you have to be able to look at the client holistic view, the application performance holistic view, and the performance of each network element, and that's what the co processor that we talked about helps. Now another thing we did is, that portfolio now, on the enterprise side, we now run the same operating system that also helps simplify for IT. The entire access network with the Catalyst 9000 series, the new access points are called the Catalyst 9100, and we're making it part of one brand and one family, because it's one OS, one programmable architecture, one operational environment if you will, that simplifies the job of IT significantly as well, and then we're also introducing obviously with Wifi Six, our cloud managed Meraki access points to support those deployments as well. >> Alright so one more question on this and then I want to talk about something else in a second. But the beauty, or the essential feature of networking has to be a degree of openness. So new access points can talk to each other, new devices can talk to each other, et cetera. These are new technologies as you said they're going to roll out and diffuse, hopefully very very rapidly, but there will be both enterprise, but also some other network supplier issues. How is Cisco ensuring that your leadership and your thought leadership but also your engineering leadership gets into those other organizations at an appropriate rate so this entire industry can adopt and change and introduce these new kinds of capabilities. >> So I talked about that new family of the Catalyst 9000 series. Let me start there. So all the protocols we support are open interoperable so you can have my switch somebody else's AP, somebody else's AP my switch, all those combinations work. It supports net config open API's programmable models. We expose those through a Cisco dev net. So we have the largest developer community on top of sort of a networking infrastructure where you can write applications that can automate or can get data >> Or services? >> Or deploy services in a very open way. And then we do the same thing at our controller layer. On Cisco DNA Center, fully open so you can have partners ecosystem delivering services and applications on top of the network, on top of that controller. So we think about openness from every angle, and that's how you have to be in a networking world, right? I mean you need to be able to connect to anything. >> Right. Every significant change in networking, someone always presumed it was going to lead to various behavior by the leader to try to somehow close it down. You're saying that's not what's happening here. We're trying to dramatically extend the benefits and capabilities of networking because those enterprises need new use cases. >> But we are saying though, that if you buy that campus architecture, access architecture through Cisco, you're going to get a degree of consistency and automation and analytics and security that's unmatched. So you might as well go, but if you want to compose that with different components, that's absolutely doable. >> Alright, so one last question. The historical norm has been I get a cell service and I get Wifi. Cell had certain positive benefits, and Wifi had other positive benefits. We're talking about Wifi Six, but also we got to talk about 5G. How are the two of them going to work together in your estimation? >> Look, from a wireless standpoint, the problems that you're trying to solve are the same, right? I need more capacity, I need lower latency, more deterministic, better battery life, they're the same. So you need to solve those when you're in an SP outdoor ubiquitous environment, or whether your sort of indoor, where you have predominantly Wifi and that's where most of your traffic flows. So Wifi Six and 5G, it's a beautiful thing that they're both trying to allow you to be in this wireless first, cloud driven world, where most of your apps and data sit in the cloud, and where your experience is really optimized by the data and telemetry that's coming out of the infrastructure. So for me, it's not an or question, it's Wifi Six and 5G that allow you to start solving that problem. >> So everything just as we have today just more, better, faster, lower power. >> Yes, can I add one more thing? >> Of course! >> I just kind of need to do this, okay? So look, when you think about the wireless infrastructure and chaining that out, I talked about how it effects the rest of the network, right? So you do need to think about upgrading your switching infrastructure, we call it being wired for wireless, okay? So with that, we also introduced a new product called the Catalyst 9600. That's a modular core switch, so you're like why are you bringing this up Sasha? >> No, I know why you're bringing it up. >> After 20 years, we are providing the next generation of the Cat 6k, Cat 6k is iconic, it's the foundation of tens of thousands of mission critical networks in the world. This is next-gen, it's more than 10x the capacity, if you have all these endpoints and access points that have more capacity, you need to think about a switch that's bigger factor. >> Scales! >> But fits into intent based networking fully programmable the same way. Just want to do a shout-out for, look we've talked about every aspect of this. APs, switches, identity, everything. >> We're offering, Cisco is offering and the enterprises are going to adopt new classes of network technology at the endpoints, faster, better, but that's going to lead to new use cases, new services, and it's just going to drive that much more complexity and routing and switching and patching thorough the network, you got to be able to scale. >> Right, you have to think about all the components. >> Absolutely. Sachin Gupta is the senior vice president of Cisco, we've been talking about how to think through Wifi Six upgrades. Thank you very much for being on the CUBE. >> Thank you, Peter. >> And once again I'm Peter Burress, and this has been a CUBE conversation. Until next time. (funky music)

(electronic dance music) (Intel Jingle) (ethereal electronic dance music) ♪ Okay ♪ (upbeat techno dance music) ♪ Oh oh oh oh ♪ ♪ Oh oh oh oh ♪ ♪ Oh oh oh oh oh ♪ ♪ Oh oh oh oh ♪ ♪ Oh oh oh oh oh ♪ ♪ Take it back take it back ♪ ♪ Take it back ♪ ♪ Take it back take it back ♪ ♪ Take it back ♪ ♪ Take it back take it back ♪ ♪ Yeah everybody get loose yeah ♪ ♪ Yeah ♪ ♪ Ye-yeah yeah ♪ ♪ Yeah yeah ♪ ♪ Everybody everybody yeah ♪ ♪ Whoo whoo ♪ ♪ Whoo whoo ♪ ♪ Whoo yeah ♪ ♪ Everybody get loose whoo ♪ ♪ Whoo ♪ ♪ Whoo ♪ ♪ Whoo ♪ >> As a courtesy to the presenters and those around you, please silence all mobile devices, thank you. (electronic dance music) ♪ Everybody get loose ♪ ♪ Whoo ♪ ♪ Whoo ♪ ♪ Whoo ♪ ♪ Whoo ♪ ♪ Whoo ♪ ♪ Whoo ♪ ♪ Whoo ♪ ♪ Whoo ♪ (upbeat salsa music) ♪ Ha ha ha ♪ ♪ Ah ♪ ♪ Ha ha ha ♪ ♪ So happy ♪ ♪ Whoo whoo ♪ (female singer scatting) >> Ladies and gentlemen, please take your seats. Our program will begin momentarily. ♪ Hey ♪ (female singer scatting) (male singer scatting) ♪ Hey ♪ ♪ Whoo ♪ (female singer scatting) (electronic dance music) ♪ All hands are in don't go ♪ ♪ Red all hands are in don't go ♪ ♪ Red red red red ♪ ♪ All hands are in don't go ♪ ♪ Red all hands are in don't go ♪ ♪ Red red red red ♪ ♪ All hands are in don't go ♪ ♪ Red all hands are in don't go ♪ ♪ All hands are in don't go ♪ ♪ Red all hands are in don't go ♪ ♪ Red red red red ♪ ♪ Red don't go ♪ ♪ All hands are in don't go ♪ ♪ In don't go ♪ ♪ Oh red go ♪ ♪ All hands are in don't go ♪ ♪ Red all hands are in don't go ♪ ♪ All hands are in don't go ♪ ♪ Red all hands are in don't go ♪ ♪ Red red red red ♪ ♪ All hands are red don't go ♪ ♪ All hands are in red red red red ♪ ♪ All hands are in don't go ♪ ♪ All hands are in red go ♪ >> Ladies and gentlemen, there are available seats. Towards house left, house left there are available seats. If you are please standing, we ask that you please take an available seat. We will begin momentarily, thank you. ♪ Let go ♪ ♪ All hands are in don't go ♪ ♪ Red all hands are in don't go ♪ ♪ All hands are in don't go ♪ ♪ Red all hands are in don't go ♪ (upbeat electronic dance music) ♪ Just make me ♪ ♪ Just make me ♪ ♪ Just make me ♪ ♪ Just make me ♪ ♪ Just make me ♪ ♪ I live ♪ ♪ Just make me ♪ ♪ Just make me ♪ ♪ Hey ♪ ♪ Yeah ♪ ♪ Oh ♪ ♪ Ah ♪ ♪ Ah ah ah ah ah ah ♪ ♪ Just make me ♪ ♪ Just make me ♪ (bouncy techno music) >> Ladies and gentlemen, once again we ask that you please take the available seats to your left, house left, there are many available seats. If you are standing, please make your way there. The program will begin momentarily, thank you. Good morning! This is Lenovo Transform 2.0! (keyboard clicks) >> Progress. Why do we always talk about it in the future? When will it finally get here? We don't progress when it's ready for us. We need it when we're ready, and we're ready now. Our hospitals and their patients need it now, our businesses and their customers need it now, our cities and their citizens need it now. To deliver intelligent transformation, we need to build it into the products and solutions we make every day. At Lenovo, we're designing the systems to fight disease, power businesses, and help you reach more customers, end-to-end security solutions to protect your data and your companies reputation. We're making IT departments more agile and cost efficient. We're revolutionizing how kids learn with VR. We're designing smart devices and software that transform the way you collaborate, because technology shouldn't just power industries, it should power people. While everybody else is talking about tomorrow, we'll keep building today, because the progress we need can't wait for the future. >> Please welcome to the stage Lenovo's Rod Lappen! (electronic dance music) (audience applauding) >> Alright. Good morning everyone! >> Good morning. >> Ooh, that was pretty good actually, I'll give it one more shot. Good morning everyone! >> Good morning! >> Oh, that's much better! Hope everyone's had a great morning. Welcome very much to the second Lenovo Transform event here in New York. I think when I got up just now on the steps I realized there's probably one thing in common all of us have in this room including myself which is, absolutely no one has a clue what I'm going to say today. So, I'm hoping very much that we get through this thing very quickly and crisply. I love this town, love New York, and you're going to hear us talk a little bit about New York as we get through here, but just before we get started I'm going to ask anyone who's standing up the back, there are plenty of seats down here, and down here on the right hand side, I think he called it house left is the professional way of calling it, but these steps to my right, your left, get up here, let's get you all seated down so that you can actually sit down during the keynote session for us. Last year we had our very first Lenovo Transform. We had about 400 people. It was here in New York, fantastic event, today, over 1,000 people. We have over 62 different technology demonstrations and about 15 breakout sessions, which I'll talk you through a little bit later on as well, so it's a much bigger event. Next year we're definitely going to be shooting for over 2,000 people as Lenovo really transforms and starts to address a lot of the technology that our commercial customers are really looking for. We were however hampered last year by a storm, I don't know if those of you who were with us last year will remember, we had a storm on the evening before Transform last year in New York, and obviously the day that it actually occurred, and we had lots of logistics. Our media people from AMIA were coming in. They took the, the plane was circling around New York for a long time, and Kamran Amini, our General Manager of our Data Center Infrastructure Group, probably one of our largest groups in the Lenovo DCG business, took 17 hours to get from Raleigh, North Carolina to New York, 17 hours, I think it takes seven or eight hours to drive. Took him 17 hours by plane to get here. And then of course this year, we have Florence. And so, obviously the hurricane Florence down there in the Carolinas right now, we tried to help, but still Kamran has made it today. Unfortunately, very tragically, we were hoping he wouldn't, but he's here today to do a big presentation a little bit later on as well. However, I do want to say, obviously, Florence is a very serious tragedy and we have to take it very serious. We got, our headquarters is in Raleigh, North Carolina. While it looks like the hurricane is just missing it's heading a little bit southeast, all of our thoughts and prayers and well wishes are obviously with everyone in the Carolinas on behalf of Lenovo, everyone at our headquarters, everyone throughout the Carolinas, we want to make sure everyone stays safe and out of harm's way. We have a great mixture today in the crowd of all customers, partners, industry analysts, media, as well as our financial analysts from all around the world. There's over 30 countries represented here and people who are here to listen to both YY, Kirk, and Christian Teismann speak today. And so, it's going to be a really really exciting day, and I really appreciate everyone coming in from all around the world. So, a big round of applause for everyone whose come in. (audience applauding) We have a great agenda for you today, and it starts obviously a very consistent format which worked very successful for us last year, and that's obviously our keynote. You'll hear from YY, our CEO, talk a little bit about the vision he has in the industry and how he sees Lenovo's turned the corner and really driving some great strategy to address our customer's needs. Kirk Skaugen, our Executive Vice President of DCG, will be up talking about how we've transformed the DCG business and once again are hitting record growth ratios for our DCG business. And then you'll hear from Christian Teismann, our SVP and General Manager for our commercial business, get up and talk about everything that's going on in our IDG business. There's really exciting stuff going on there and obviously ThinkPad being the cornerstone of that I'm sure he's going to talk to us about a couple surprises in that space as well. Then we've got some great breakout sessions, I mentioned before, 15 breakout sessions, so while this keynote section goes until about 11:30, once we get through that, please go over and explore, and have a look at all of the breakout sessions. We have all of our subject matter experts from both our PC, NBG, and our DCG businesses out to showcase what we're doing as an organization to better address your needs. And then obviously we have the technology pieces that I've also spoken about, 62 different technology displays there arranged from everything IoT, 5G, NFV, everything that's really cool and hot in the industry right now is going to be on display up there, and I really encourage all of you to get up there. So, I'm going to have a quick video to show you from some of the setup yesterday on a couple of the 62 technology displays we've got on up on stage. Okay let's go, so we've got a demonstrations to show you today, one of the greats one here is the one we've done with NC State, a high-performance computing artificial intelligence demonstration of fresh produce. It's about modeling the population growth of the planet, and how we're going to supply water and food as we go forward. Whoo. Oh, that is not an apple. Okay. (woman laughs) Second one over here is really, hey Jonas, how are you? Is really around virtual reality, and how we look at one of the most amazing sites we've got, as an install on our high-performance computing practice here globally. And you can see, obviously, that this is the Barcelona supercomputer, and, where else in New York can you get access to being able to see something like that so easily? Only here at Lenovo Transform. Whoo, okay. (audience applauding) So there's two examples of some of the technology. We're really encouraging everyone in the room after the keynote to flow into that space and really get engaged, and interact with a lot of the technology we've got up there. It seems I need to also do something about my fashion, I've just realized I've worn a vest two days in a row, so I've got to work on that as well. Alright so listen, the last thing on the agenda, we've gone through the breakout sessions and the demo, tonight at four o'clock, there's about 400 of you registered to be on the cruise boat with us, the doors will open behind me. the boat is literally at the pier right behind us. You need to make sure you're on the boat for 4:00 p.m. this evening. Outside of that, I want everyone to have a great time today, really enjoy the experience, make it as experiential as you possibly can, get out there and really get in and touch the technology. There's some really cool AI displays up there for us all to get involved in as well. So ladies and gentlemen, without further adieu, it gives me great pleasure to introduce to you a lover of tennis, as some of you would've heard last year at Lenovo Transform, as well as a lover of technology, Lenovo, and of course, New York City. I am obviously very pleasured to introduce to you Yang Yuanqing, our CEO, as we like to call him, YY. (audience applauding) (upbeat funky music) >> Good morning, everyone. >> Good morning. >> Thank you Rod for that introduction. Welcome to New York City. So, this is the second year in a row we host our Transform event here, because New York is indeed one of the most transformative cities in the world. Last year on this stage, I spoke about the Fourth Industrial Revolution, and our vision around the intelligent transformation, how it would fundamentally change the nature of business and the customer relationships. And why preparing for this transformation is the key for the future of our company. And in the last year I can assure you, we were being very busy doing just that, from searching and bringing global talents around the world to the way we think about every product and every investment we make. I was here in New York just a month ago to announce our fiscal year Q1 earnings, which was a good day for us. I think now the world believes it when we say Lenovo has truly turned the corner to a new phase of growth and a new phase of acceleration in executing the transformation strategy. That's clear to me is that the last few years of a purposeful disruption at Lenovo have led us to a point where we can now claim leadership of the coming intelligent transformation. People often asked me, what is the intelligent transformation? I was saying this way. This is the unlimited potential of the Fourth Industrial Revolution driven by artificial intelligence being realized, ordering a pizza through our speaker, and locking the door with a look, letting your car drive itself back to your home. This indeed reflect the power of AI, but it just the surface of it. The true impact of AI will not only make our homes smarter and offices more efficient, but we are also completely transformed every value chip in every industry. However, to realize these amazing possibilities, we will need a structure built around the key components, and one that touches every part of all our lives. First of all, explosions in new technology always lead to new structures. This has happened many times before. In the early 20th century, thousands of companies provided a telephone service. City streets across the US looked like this, and now bundles of a microscopic fiber running from city to city bring the world closer together. Here's what a driving was like in the US, up until 1950s. Good luck finding your way. (audience laughs) And today, millions of vehicles are organized and routed daily, making the world more efficient. Structure is vital, from fiber cables and the interstate highways, to our cells bounded together to create humans. Thankfully the structure for intelligent transformation has emerged, and it is just as revolutionary. What does this new structure look like? We believe there are three key building blocks, data, computing power, and algorithms. Ever wondered what is it behind intelligent transformation? What is fueling this miracle of human possibility? Data. As the Internet becomes ubiquitous, not only PCs, mobile phones, have come online and been generating data. Today it is the cameras in this room, the climate controls in our offices, or the smart displays in our kitchens at home. The number of smart devices worldwide will reach over 20 billion in 2020, more than double the number in 2017. These devices and the sensors are connected and generating massive amount of data. By 2020, the amount of data generated will be 57 times more than all the grains of sand on Earth. This data will not only make devices smarter, but will also fuel the intelligence of our homes, offices, and entire industries. Then we need engines to turn the fuel into power, and the engine is actually the computing power. Last but not least the advanced algorithms combined with Big Data technology and industry know how will form vertical industrial intelligence and produce valuable insights for every value chain in every industry. When these three building blocks all come together, it will change the world. At Lenovo, we have each of these elements of intelligent transformations in a single place. We have built our business around the new structure of intelligent transformation, especially with mobile and the data center now firmly part of our business. I'm often asked why did you acquire these businesses? Why has a Lenovo gone into so many fields? People ask the same questions of the companies that become the leaders of the information technology revolution, or the third industrial transformation. They were the companies that saw the future and what the future required, and I believe Lenovo is the company today. From largest portfolio of devices in the world, leadership in the data center field, to the algorithm-powered intelligent vertical solutions, and not to mention the strong partnership Lenovo has built over decades. We are the only company that can unify all these essential assets and deliver end to end solutions. Let's look at each part. We now understand the important importance data plays as fuel in intelligent transformation. Hundreds of billions of devices and smart IoTs in the world are generating better and powering the intelligence. Who makes these devices in large volume and variety? Who puts these devices into people's home, offices, manufacturing lines, and in their hands? Lenovo definitely has the front row seats here. We are number one in PCs and tablets. We also produces smart phones, smart speakers, smart displays. AR/VR headsets, as well as commercial IoTs. All of these smart devices, or smart IoTs are linked to each other and to the cloud. In fact, we have more than 20 manufacturing facilities in China, US, Brazil, Japan, India, Mexico, Germany, and more, producing various devices around the clock. We actually make four devices every second, and 37 motherboards every minute. So, this factory located in my hometown, Hu-fi, China, is actually the largest laptop factory in the world, with more than three million square feet. So, this is as big as 42 soccer fields. Our scale and the larger portfolio of devices gives us access to massive amount of data, which very few companies can say. So, why is the ability to scale so critical? Let's look again at our example from before. The early days of telephone, dozens of service providers but only a few companies could survive consolidation and become the leader. The same was true for the third Industrial Revolution. Only a few companies could scale, only a few could survive to lead. Now the building blocks of the next revolution are locking into place. The (mumbles) will go to those who can operate at the scale. So, who could foresee the total integration of cloud, network, and the device, need to deliver intelligent transformation. Lenovo is that company. We are ready to scale. Next, our computing power. Computing power is provided in two ways. On one hand, the modern supercomputers are providing the brute force to quickly analyze the massive data like never before. On the other hand the cloud computing data centers with the server storage networking capabilities, and any computing IoT's, gateways, and miniservers are making computing available everywhere. Did you know, Lenovo is number one provider of super computers worldwide? 170 of the top 500 supercomputers, run on Lenovo. We hold 89 World Records in key workloads. We are number one in x86 server reliability for five years running, according to ITIC. a respected provider of industry research. We are also the fastest growing provider of hyperscale public cloud, hyper-converged and aggressively growing in edge computing. cur-ges target, we are expand on this point soon. And finally to run these individual nodes into our symphony, we must transform the data and utilize the computing power with advanced algorithms. Manufactured, industry maintenance, healthcare, education, retail, and more, so many industries are on the edge of intelligent transformation to improve efficiency and provide the better products and services. We are creating advanced algorithms and the big data tools combined with industry know-how to provide intelligent vertical solutions for several industries. In fact, we studied at Lenovo first. Our IT and research teams partnered with our global supply chain to develop an AI that improved our demand forecasting accuracy. Beyond managing our own supply chain we have offered our deep learning supply focused solution to other manufacturing companies to improve their efficiency. In the best case, we have improved the demand, focused the accuracy by 30 points to nearly 90 percent, for Baosteel, the largest of steel manufacturer in China, covering the world as well. Led by Lenovo research, we launched the industry-leading commercial ready AR headset, DaystAR, partnering with companies like the ones in this room. This technology is being used to revolutionize the way companies service utility, and even our jet engines. Using our workstations, servers, and award-winning imaging processing algorithms, we have partnered with hospitals to process complex CT scan data in minutes. So, this enable the doctors to more successfully detect the tumors, and it increases the success rate of cancer diagnosis all around the world. We are also piloting our smart IoT driven warehouse solution with one of the world's largest retail companies to greatly improve the efficiency. So, the opportunities are endless. This is where Lenovo will truly shine. When we combine the industry know-how of our customers with our end-to-end technology offerings, our intelligent vertical solutions like this are growing, which Kirk and Christian will share more. Now, what will drive this transformation even faster? The speed at which our networks operate, specifically 5G. You may know that Lenovo just launched the first-ever 5G smartphone, our Moto Z3, with the new 5G Moto model. We are partnering with multiple major network providers like Verizon, China Mobile. With the 5G model scheduled to ship early next year, we will be the first company to provide a 5G mobile experience to any users, customers. This is amazing innovation. You don't have to buy a new phone, just the 5G clip on. What can I say, except wow. (audience laughs) 5G is 10 times the fast faster than 4G. Its download speed will transform how people engage with the world, driverless car, new types of smart wearables, gaming, home security, industrial intelligence, all will be transformed. Finally, accelerating with partners, as ready as we are at Lenovo, we need partners to unlock our full potential, partners here to create with us the edge of the intelligent transformation. The opportunities of intelligent transformation are too profound, the scale is too vast. No company can drive it alone fully. We are eager to collaborate with all partners that can help bring our vision to life. We are dedicated to open partnerships, dedicated to cross-border collaboration, unify the standards, share the advantage, and market the synergies. We partner with the biggest names in the industry, Intel, Microsoft, AMD, Qualcomm, Google, Amazon, and Disney. We also find and partner with the smaller innovators as well. We're building the ultimate partner experience, open, shared, collaborative, diverse. So, everything is in place for intelligent transformation on a global scale. Smart devices are everywhere, the infrastructure is in place, networks are accelerating, and the industries demand to be more intelligent, and Lenovo is at the center of it all. We are helping to drive change with the hundreds of companies, companies just like yours, every day. We are your partner for intelligent transformation. Transformation never stops. This is what you will hear from Kirk, including details about Lenovo NetApp global partnership we just announced this morning. We've made the investments in every single aspect of the technology. We have the end-to-end resources to meet your end-to-end needs. As you attend the breakout session this afternoon, I hope you see for yourself how much Lenovo has transformed as a company this past year, and how we truly are delivering a future of intelligent transformation. Now, let me invite to the stage Kirk Skaugen, our president of Data Center growth to tell you about the exciting transformation happening in the global Data C enter market. Thank you. (audience applauding) (upbeat music) >> Well, good morning. >> Good morning. >> Good morning! >> Good morning! >> Excellent, well, I'm pleased to be here this morning to talk about how we're transforming the Data Center and taking you as our customers through your own intelligent transformation journey. Last year I stood up here at Transform 1.0, and we were proud to announce the largest Data Center portfolio in Lenovo's history, so I thought I'd start today and talk about the portfolio and the progress that we've made over the last year, and the strategies that we have going forward in phase 2.0 of Lenovo's transformation to be one of the largest data center companies in the world. We had an audacious vision that we talked about last year, and that is to be the most trusted data center provider in the world, empowering customers through the new IT, intelligent transformation. And now as the world's largest supercomputer provider, giving something back to humanity, is very important this week with the hurricanes now hitting North Carolina's coast, but we take this most trusted aspect very seriously, whether it's delivering the highest quality products on time to you as customers with the highest levels of security, or whether it's how we partner with our channel partners and our suppliers each and every day. You know we're in a unique world where we're going from hundreds of millions of PCs, and then over the next 25 years to hundred billions of connected devices, so each and every one of you is going through this intelligent transformation journey, and in many aspects were very early in that cycle. And we're going to talk today about our role as the largest supercomputer provider, and how we're solving humanity's greatest challenges. Last year we talked about two special milestones, the 25th anniversary of ThinkPad, but also the 25th anniversary of Lenovo with our IBM heritage in x86 computing. I joined the workforce in 1992 out of college, and the IBM first personal server was launching at the same time with an OS2 operating system and a free mouse when you bought the server as a marketing campaign. (audience laughing) But what I want to be very clear today, is that the innovation engine is alive and well at Lenovo, and it's really built on the culture that we're building as a company. All of these awards at the bottom are things that we earned over the last year at Lenovo. As a Fortune now 240 company, larger than companies like Nike, or AMEX, or Coca-Cola. The one I'm probably most proud of is Forbes first list of the top 2,000 globally regarded companies. This was something where 15,000 respondents in 60 countries voted based on ethics, trustworthiness, social conduct, company as an employer, and the overall company performance, and Lenovo was ranked number 27 of 2000 companies by our peer group, but we also now one of-- (audience applauding) But we also got a perfect score in the LGBTQ Equality Index, exemplifying the diversity internally. We're number 82 in the top working companies for mothers, top working companies for fathers, top 100 companies for sustainability. If you saw that factory, it's filled with solar panels on the top of that. And now again, one of the top global brands in the world. So, innovation is built on a customer foundation of trust. We also said last year that we'd be crossing an amazing milestone. So we did, over the last 12 months ship our 20 millionth x86 server. So, thank you very much to our customers for this milestone. (audience applauding) So, let me recap some of the transformation elements that have happened over the last year. Last year I talked about a lot of brand confusion, because we had the ThinkServer brand from the legacy Lenovo, the System x, from IBM, we had acquired a number of networking companies, like BLADE Network Technologies, et cetera, et cetera. Over the last year we've been ramping based on two brand structures, ThinkAgile for next generation IT, and all of our software-defined infrastructure products and ThinkSystem as the world's highest performance, highest reliable x86 server brand, but for servers, for storage, and for networking. We have transformed every single aspect of the customer experience. A year and a half ago, we had four different global channel programs around the world. Typically we're about twice the mix to our channel partners of any of our competitors, so this was really important to fix. We now have a single global Channel program, and have technically certified over 11,000 partners to be technical experts on our product line to deliver better solutions to our customer base. Gardner recently recognized Lenovo as the 26th ranked supply chain in the world. And, that's a pretty big honor, when you're up there with Amazon and Walmart and others, but in tech, we now are in the top five supply chains. You saw the factory network from YY, and today we'll be talking about product shipping in more than 160 countries, and I know there's people here that I've met already this morning, from India, from South Africa, from Brazil and China. We announced new Premier Support services, enabling you to go directly to local language support in nine languages in 49 countries in the world, going directly to a native speaker level three support engineer. And today we have more than 10,000 support specialists supporting our products in over 160 countries. We've delivered three times the number of engineered solutions to deliver a solutions orientation, whether it's on HANA, or SQL Server, or Oracle, et cetera, and we've completely reengaged our system integrator channel. Last year we had the CIO of DXE on stage, and here we're talking about more than 175 percent growth through our system integrator channel in the last year alone as we've brought that back and really built strong relationships there. So, thank you very much for amazing work here on the customer experience. (audience applauding) We also transformed our leadership. We thought it was extremely important with a focus on diversity, to have diverse talent from the legacy IBM, the legacy Lenovo, but also outside the industry. We made about 19 executive changes in the DCG group. This is the most senior leadership team within DCG, all which are newly on board, either from our outside competitors mainly over the last year. About 50 percent of our executives were now hired internally, 50 percent externally, and 31 percent of those new executives are diverse, representing the diversity of our global customer base and gender. So welcome, and most of them you're going to be able to meet over here in the breakout sessions later today. (audience applauding) But some things haven't changed, they're just keeping getting better within Lenovo. So, last year I got up and said we were committed with the new ThinkSystem brand to be a world performance leader. You're going to see that we're sponsoring Ducati for MotoGP. You saw the Ferrari out there with Formula One. That's not a surprise. We want the Lenovo ThinkSystem and ThinkAgile brands to be synonymous with world record performance. So in the last year we've gone from 39 to 89 world records, and partners like Intel would tell you, we now have four times the number of world record workloads on Lenovo hardware than any other server company on the planet today, with more than 89 world records across HPC, Java, database, transaction processing, et cetera. And we're proud to have just brought on Doug Fisher from Intel Corporation who had about 10-17,000 people on any given year working for him in workload optimizations across all of our software. It's just another testament to the leadership team we're bringing in to keep focusing on world-class performance software and solutions. We also per ITIC, are the number one now in x86 server reliability five years running. So, this is a survey where CIOs are in a blind survey asked to submit their reliability of their uptime on their x86 server equipment over the last 365 days. And you can see from 2016 to 2017 the downtime, there was over four hours as noted by the 750 CXOs in more than 20 countries is about one percent for the Lenovo products, and is getting worse generation from generation as we went from Broadwell to Pearlie. So we're taking our reliability, which was really paramount in the IBM System X heritage, and ensuring that we don't just recognize high performance but we recognize the highest level of reliability for mission-critical workloads. And what that translates into is that we at once again have been ranked number one in customer satisfaction from you our customers in 19 of 22 attributes, in North America in 18 of 22. This is a survey by TVR across hundreds of customers of us and our top competitors. This is the ninth consecutive study that we've been ranked number one in customer satisfaction, so we're taking this extremely seriously, and in fact YY now has increased the compensation of every single Lenovo employee. Up to 40 percent of their compensation bonus this year is going to be based on customer metrics like quality, order to ship, and things of this nature. So, we're really putting every employee focused on customer centricity this year. So, the summary on Transform 1.0 is that every aspect of what you knew about Lenovo's data center group has transformed, from the culture to the branding to dedicated sales and marketing, supply chain and quality groups, to a worldwide channel program and certifications, to new system integrator relationships, and to the new leadership team. So, rather than me just talk about it, I thought I'd share a quick video about what we've done over the last year, if you could run the video please. Turn around for a second. (epic music) (audience applauds) Okay. So, thank you to all our customers that allowed us to publicly display their logos in that video. So, what that means for you as investors, and for the investor community out there is, that our customers have responded, that this year Gardner just published that we are the fastest growing server company in the top 10, with 39 percent growth quarter-on-quarter, and 49 percent growth year-on-year. If you look at the progress we've made since the transformation the last three quarters publicly, we've grown 17 percent, then 44 percent, then 68 percent year on year in revenue, and I can tell you this quarter I'm as confident as ever in the financials around the DCG group, and it hasn't been in one area. You're going to see breakout sessions from hyperscale, software-defined, and flash, which are all growing more than a 100 percent year-on-year, supercomputing which we'll talk about shortly, now number one, and then ultimately from profitability, delivering five consecutive quarters of pre-tax profit increase, so I think, thank you very much to the customer base who's been working with us through this transformation journey. So, you're here to really hear what's next on 2.0, and that's what I'm excited to talk about today. Last year I came up with an audacious goal that we would become the largest supercomputer company on the planet by 2020, and this graph represents since the acquisition of the IBM System x business how far we were behind being the number one supercomputer. When we started we were 182 positions behind, even with the acquisition for example of SGI from HP, we've now accomplished our goal actually two years ahead of time. We're now the largest supercomputer company in the world. About one in every four supercomputers, 117 on the list, are now Lenovo computers, and you saw in the video where the universities are said, but I think what I'm most proud of is when your customers rank you as the best. So the awards at the bottom here, are actually Readers Choice from the last International Supercomputing Show where the scientific researchers on these computers ranked their vendors, and we were actually rated the number one server technology in supercomputing with our ThinkSystem SD530, and the number one storage technology with our ThinkSystem DSS-G, but more importantly what we're doing with the technology. You're going to see we won best in life sciences, best in data analytics, and best in collaboration as well, so you're going to see all of that in our breakout sessions. As you saw in the video now, 17 of the top 25 research institutions in the world are now running Lenovo supercomputers. And again coming from Raleigh and watching that hurricane come across the Atlantic, there are eight supercomputers crunching all of those models you see from Germany to Malaysia to Canada, and we're happy to have a SciNet from University of Toronto here with us in our breakout session to talk about what they're doing on climate modeling as well. But we're not stopping there. We just announced our new Neptune warm water cooling technology, which won the International Supercomputing Vendor Showdown, the first time we've won that best of show in 25 years, and we've now installed this. We're building out LRZ in Germany, the first ever warm water cooling in Peking University, at the India Space Propulsion Laboratory, at the Malaysian Weather and Meteorological Society, at Uninett, at the largest supercomputer in Norway, T-Systems, University of Birmingham. This is truly amazing technology where we're actually using water to cool the machine to deliver a significantly more energy-efficient computer. Super important, when we're looking at global warming and some of the electric bills can be millions of dollars just for one computer, and could actually power a small city just with the technology from the computer. We've built AI centers now in Morrisville, Stuttgart, Taipei, and Beijing, where customers can bring their AI workloads in with experts from Intel, from Nvidia, from our FPGA partners, to work on their workloads, and how they can best implement artificial intelligence. And we also this year launched LICO which is Lenovo Intelligent Compute Orchestrator software, and it's a software solution that simplifies the management and use of distributed clusters in both HPC and AI model development. So, what it enables you to do is take a single cluster, and run both HPC and AI workloads on it simultaneously, delivering better TCO for your environment, so check out LICO as well. A lot of the customers here and Wall Street are very excited and using it already. And we talked about solving humanity's greatest challenges. In the breakout session, you're going to have a virtual reality experience where you're going to be able to walk through what as was just ranked the world's most beautiful data center, the Barcelona Supercomputer. So, you can actually walk through one of the largest supercomputers in the world from Barcelona. You can see the work we're doing with NC State where we're going to have to grow the food supply of the world by 50 percent, and there's not enough fresh water in the world in the right places to actually make all those crops grow between now and 2055, so you're going to see the progression of how they're mapping the entire globe and the water around the world, how to build out the crop population over time using AI. You're going to see our work with Vestas is this largest supercomputer provider in the wind turbine areas, how they're working on wind energy, and then with University College London, how they're working on some of the toughest particle physics calculations in the world. So again, lots of opportunity here. Take advantage of it in the breakout sessions. Okay, let me transition to hyperscale. So in hyperscale now, we have completely transformed our business model. We are now powering six of the top 10 hyperscalers in the world, which is a significant difference from where we were two years ago. And the reason we're doing that, is we've coined a term called ODM+. We believe that hyperscalers want more procurement power than an ODM, and Lenovo is doing about $18 billion of procurement a year. They want a broader global supply chain that they can get from a local system integrator. We're more than 160 countries around the world, but they want the same world-class quality and reliability like they get from an MNC. So, what we're doing now is instead of just taking off the shelf motherboards from somewhere, we're starting with a blank sheet of paper, we're working with the customer base on customized SKUs and you can see we already are developing 33 custom solutions for the largest hyperscalers in the world. And then we're not just running notebooks through this factory where YY said, we're running 37 notebook boards a minute, we're now putting in tens and tens and tens of thousands of server board capacity per month into this same factory, so absolutely we can compete with the most aggressive ODM's in the world, but it's not just putting these things in in the motherboard side, we're also building out these systems all around the world, India, Brazil, Hungary, Mexico, China. This is an example of a new hyperscale customer we've had this last year, 34,000 servers we delivered in the first six months. The next 34,000 servers we delivered in 68 days. The next 34,000 servers we delivered in 35 days, with more than 99 percent on-time delivery to 35 data centers in 14 countries as diverse as South Africa, India, China, Brazil, et cetera. And I'm really ashamed to say it was 99.3, because we did have a forklift driver who rammed their forklift right through the middle of the one of the server racks. (audience laughing) At JFK Airport that we had to respond to, but I think this gives you a perspective of what it is to be a top five global supply chain and technology. So last year, I said we would invest significantly in IP, in joint ventures, and M and A to compete in software defined, in networking, and in storage, so I wanted to give you an update on that as well. Our newest software-defined partnership is with Cloudistics, enabling a fully composable cloud infrastructure. It's an exclusive agreement, you can see them here. I think Nag, our founder, is going to be here today, with a significant Lenovo investment in the company. So, this new ThinkAgile CP series delivers the simplicity of the public cloud, on-premise with exceptional support and a marketplace of essential enterprise applications all with a single click deployment. So simply put, we're delivering a private cloud with a premium experience. It's simple in that you need no specialists to deploy it. An IT generalist can set it up and manage it. It's agile in that you can provision dozens of workloads in minutes, and it's transformative in that you get all of the goodness of public cloud on-prem in a private cloud to unlock opportunity for use. So, we're extremely excited about the ThinkAgile CP series that's now shipping into the marketplace. Beyond that we're aggressively ramping, and we're either doubling, tripling, or quadrupling our market share as customers move from traditional server technology to software-defined technology. With Nutanix we've been public, growing about more than 150 percent year-on-year, with Nutanix as their fastest growing Nutanix partner, but today I want to set another audacious goal. I believe we cannot just be Nutanix's fastest growing partner but we can become their largest partner within two years. On Microsoft, we are already four times our market share on Azure stack of our traditional business. We were the first to launch our ThinkAgile on Broadwell and on Skylake with the Azure Stack Infrastructure. And on VMware we're about twice our market segment share. We were the first to deliver an Intel-optimized Optane-certified VSAN node. And with Optane technology, we're delivering 50 percent more VM density than any competitive SSD system in the marketplace, about 10 times lower latency, four times the performance of any SSD system out there, and Lenovo's first to market on that. And at VMworld you saw CEO Pat Gelsinger of VMware talked about project dimension, which is Edge as a service, and we're the only OEM beyond the Dell family that is participating today in project dimension. Beyond that you're going to see a number of other partnerships we have. I'm excited that we have the city of Bogota Columbia here, an eight million person city, where we announced a 3,000 camera video surveillance solution last month. With pivot three you're going to see city of Bogota in our breakout sessions. You're going to see a new partnership with Veeam around backup that's launching today. You're going to see partnerships with scale computing in IoT and hyper-converged infrastructure working on some of the largest retailers in the world. So again, everything out in the breakout session. Transitioning to storage and data management, it's been a great year for Lenovo, more than a 100 percent growth year-on-year, 2X market growth in flash arrays. IDC just reported 30 percent growth in storage, number one in price performance in the world and the best HPC storage product in the top 500 with our ThinkSystem DSS G, so strong coverage, but I'm excited today to announce for Transform 2.0 that Lenovo is launching the largest data management and storage portfolio in our 25-year data center history. (audience applauding) So a year ago, the largest server portfolio, becoming the largest fastest growing server OEM, today the largest storage portfolio, but as you saw this morning we're not doing it alone. Today Lenovo and NetApp, two global powerhouses are joining forces to deliver a multi-billion dollar global alliance in data management and storage to help customers through their intelligent transformation. As the fastest growing worldwide server leader and one of the fastest growing flash array and data management companies in the world, we're going to deliver more choice to customers than ever before, global scale that's never been seen, supply chain efficiencies, and rapidly accelerating innovation and solutions. So, let me unwrap this a little bit for you and talk about what we're announcing today. First, it's the largest portfolio in our history. You're going to see not just storage solutions launching today but a set of solution recipes from NetApp that are going to make Lenovo server and NetApp or Lenovo storage work better together. The announcement enables Lenovo to go from covering 15 percent of the global storage market to more than 90 percent of the global storage market and distribute these products in more than 160 countries around the world. So we're launching today, 10 new storage platforms, the ThinkSystem DE and ThinkSystem DM platforms. They're going to be centrally managed, so the same XClarity management that you've been using for server, you can now use across all of your storage platforms as well, and it'll be supported by the same 10,000 plus service personnel that are giving outstanding customer support to you today on the server side. And we didn't come up with this in the last month or the last quarter. We're announcing availability in ordering today and shipments tomorrow of the first products in this portfolio, so we're excited today that it's not just a future announcement but something you as customers can take advantage of immediately. (audience applauding) The second part of the announcement is we are announcing a joint venture in China. Not only will this be a multi-billion dollar global partnership, but Lenovo will be a 51 percent owner, NetApp a 49 percent owner of a new joint venture in China with the goal of becoming in the top three storage companies in the largest data and storage market in the world. We will deliver our R and D in China for China, pooling our IP and resources together, and delivering a single route to market through a complementary channel, not just in China but worldwide. And in the future I just want to tell everyone this is phase one. There is so much exciting stuff. We're going to be on the stage over the next year talking to you about around integrated solutions, next-generation technologies, and further synergies and collaborations. So, rather than just have me talk about it, I'd like to welcome to the stage our new partner NetApp and Brad Anderson who's the senior vice president and general manager of NetApp Cloud Infrastructure. (upbeat music) (audience applauding) >> Thank You Kirk. >> So Brad, we've known each other a long time. It's an exciting day. I'm going to give you the stage and allow you to say NetApp's perspective on this announcement. >> Very good, thank you very much, Kirk. Kirk and I go back to I think 1994, so hey good morning and welcome. My name is Brad Anderson. I manage the Cloud Infrastructure Group at NetApp, and I am honored and privileged to be here at Lenovo Transform, particularly today on today's announcement. Now, you've heard a lot about digital transformation about how companies have to transform their IT to compete in today's global environment. And today's announcement with the partnership between NetApp and Lenovo is what that's all about. This is the joining of two global leaders bringing innovative technology in a simplified solution to help customers modernize their IT and accelerate their global digital transformations. Drawing on the strengths of both companies, Lenovo's high performance compute world-class supply chain, and NetApp's hybrid cloud data management, hybrid flash and all flash storage solutions and products. And both companies providing our customers with the global scale for them to be able to meet their transformation goals. At NetApp, we're very excited. This is a quote from George Kurian our CEO. George spent all day yesterday with YY and Kirk, and would have been here today if it hadn't been also our shareholders meeting in California, but I want to just convey how excited we are for all across NetApp with this partnership. This is a partnership between two companies with tremendous market momentum. Kirk took you through all the amazing results that Lenovo has accomplished, number one in supercomputing, number one in performance, number one in x86 reliability, number one in x86 customers sat, number five in supply chain, really impressive and congratulations. Like Lenovo, NetApp is also on a transformation journey, from a storage company to the data authority in hybrid cloud, and we've seen some pretty impressive momentum as well. Just last week we became number one in all flash arrays worldwide, catching EMC and Dell, and we plan to keep on going by them, as we help customers modernize their their data centers with cloud connected flash. We have strategic partnerships with the largest hyperscalers to provide cloud native data services around the globe and we are having success helping our customers build their own private clouds with just, with a new disruptive hyper-converged technology that allows them to operate just like hyperscalers. These three initiatives has fueled NetApp's transformation, and has enabled our customers to change the world with data. And oh by the way, it has also fueled us to have meet or have beaten Wall Street's expectations for nine quarters in a row. These are two companies with tremendous market momentum. We are also building this partnership for long term success. We think about this as phase one and there are two important components to phase one. Kirk took you through them but let me just review them. Part one, the establishment of a multi-year commitment and a collaboration agreement to offer Lenovo branded flash products globally, and as Kurt said in 160 countries. Part two, the formation of a joint venture in PRC, People's Republic of China, that will provide long term commitment, joint product development, and increase go-to-market investment to meet the unique needs to China. Both companies will put in storage technologies and storage expertise to form an independent JV that establishes a data management company in China for China. And while we can dream about what phase two looks like, our entire focus is on making phase one incredibly successful and I'm pleased to repeat what Kirk, is that the first products are orderable and shippable this week in 160 different countries, and you will see our two companies focusing on the here and now. On our joint go to market strategy, you'll see us working together to drive strategic alignment, focused execution, strong governance, and realistic expectations and milestones. And it starts with the success of our customers and our channel partners is job one. Enabling customers to modernize their legacy IT with complete data center solutions, ensuring that our customers get the best from both companies, new offerings the fuel business success, efficiencies to reinvest in game-changing initiatives, and new solutions for new mission-critical applications like data analytics, IoT, artificial intelligence, and machine learning. Channel partners are also top of mind for both our two companies. We are committed to the success of our existing and our future channel partners. For NetApp channel partners, it is new pathways to new segments and to new customers. For Lenovo's channel partners, it is the competitive weapons that now allows you to compete and more importantly win against Dell, EMC, and HP. And the good news for both companies is that our channel partner ecosystem is highly complementary with minimal overlap. Today is the first day of a very exciting partnership, of a partnership that will better serve our customers today and will provide new opportunities to both our companies and to our partners, new products to our customers globally and in China. I am personally very excited. I will be on the board of the JV. And so, I look forward to working with you, partnering with you and serving you as we go forward, and with that, I'd like to invite Kirk back up. (audience applauding) >> Thank you. >> Thank you. >> Well, thank you, Brad. I think it's an exciting overview, and these products will be manufactured in China, in Mexico, in Hungary, and around the world, enabling this amazing supply chain we talked about to deliver in over 160 countries. So thank you Brad, thank you George, for the amazing partnership. So again, that's not all. In Transform 2.0, last year, we talked about the joint ventures that were coming. I want to give you a sneak peek at what you should expect at future Lenovo events around the world. We have this Transform in Beijing in a couple weeks. We'll then be repeating this in 20 different locations roughly around the world over the next year, and I'm excited probably more than ever about what else is coming. Let's talk about Telco 5G and network function virtualization. Today, Motorola phones are certified on 46 global networks. We launched the world's first 5G upgradable phone here in the United States with Verizon. Lenovo DCG sells to 58 telecommunication providers around the world. At Mobile World Congress in Barcelona and Shanghai, you saw China Telecom and China Mobile in the Lenovo booth, China Telecom showing a video broadband remote access server, a VBRAS, with video streaming demonstrations with 2x less jitter than they had seen before. You saw China Mobile with a virtual remote access network, a VRAN, with greater than 10 times the throughput and 10x lower latency running on Lenovo. And this year, we'll be launching a new NFV company, a software company in China for China to drive the entire NFV stack, delivering not just hardware solutions, but software solutions, and we've recently hired a new CEO. You're going to hear more about that over the next several quarters. Very exciting as we try to drive new economics into the networks to deliver these 20 billion devices. We're going to need new economics that I think Lenovo can uniquely deliver. The second on IoT and edge, we've integrated on the device side into our intelligent devices group. With everything that's going to consume electricity computes and communicates, Lenovo is in a unique position on the device side to take advantage of the communications from Motorola and being one of the largest device companies in the world. But this year, we're also going to roll out a comprehensive set of edge gateways and ruggedized industrial servers and edge servers and ISP appliances for the edge and for IoT. So look for that as well. And then lastly, as a service, you're going to see Lenovo delivering hardware as a service, device as a service, infrastructure as a service, software as a service, and hardware as a service, not just as a glorified leasing contract, but with IP, we've developed true flexible metering capability that enables you to scale up and scale down freely and paying strictly based on usage, and we'll be having those announcements within this fiscal year. So Transform 2.0, lots to talk about, NetApp the big news of the day, but a lot more to come over the next year from the Data Center group. So in summary, I'm excited that we have a lot of customers that are going to be on stage with us that you saw in the video. Lots of testimonials so that you can talk to colleagues of yourself. Alamos Gold from Canada, a Canadian gold producer, Caligo for data optimization and privacy, SciNet, the largest supercomputer we've ever put into North America, and the largest in Canada at the University of Toronto will be here talking about climate change. City of Bogota again with our hyper-converged solutions around smart city putting in 3,000 cameras for criminal detection, license plate detection, et cetera, and then more from a channel mid market perspective, Jerry's Foods, which is from my home state of Wisconsin, and Minnesota which has about 57 stores in the specialty foods market, and how they're leveraging our IoT solutions as well. So again, about five times the number of demos that we had last year. So in summary, first and foremost to the customers, thank you for your business. It's been a great journey and I think we're on a tremendous role. You saw from last year, we're trying to build credibility with you. After the largest server portfolio, we're now the fastest-growing server OEM per Gardner, number one in performance, number one in reliability, number one in customer satisfaction, number one in supercomputing. Today, the largest storage portfolio in our history, with the goal of becoming the fastest growing storage company in the world, top three in China, multibillion-dollar collaboration with NetApp. And the transformation is going to continue with new edge gateways, edge servers, NFV solutions, telecommunications infrastructure, and hardware as a service with dynamic metering. So thank you for your time. I've looked forward to meeting many of you over the next day. We appreciate your business, and with that, I'd like to bring up Rod Lappen to introduce our next speaker. Rod? (audience applauding) >> Thanks, boss, well done. Alright ladies and gentlemen. No real secret there. I think we've heard why I might talk about the fourth Industrial Revolution in data and exactly what's going on with that. You've heard Kirk with some amazing announcements, obviously now with our NetApp partnership, talk about 5G, NFV, cloud, artificial intelligence, I think we've hit just about all the key hot topics. It's with great pleasure that I now bring up on stage Mr. Christian Teismann, our senior vice president and general manager of commercial business for both our PCs and our IoT business, so Christian Teismann. (techno music) Here, take that. >> Thank you. I think I'll need that. >> Okay, Christian, so obviously just before we get down, you and I last year, we had a bit of a chat about being in New York. >> Exports. >> You were an expat in New York for a long time. >> That's true. >> And now, you've moved from New York. You're in Munich? >> Yep. >> How does that feel? >> Well Munich is a wonderful city, and it's a great place to live and raise kids, but you know there's no place in the world like New York. >> Right. >> And I miss it a lot, quite frankly. >> So what exactly do you miss in New York? >> Well there's a lot of things in New York that are unique, but I know you spent some time in Japan, but I still believe the best sushi in the world is still in New York City. (all laughing) >> I will beg to differ. I will beg to differ. I think Mr. Guchi-san from Softbank is here somewhere. He will get up an argue very quickly that Japan definitely has better sushi than New York. But obviously you know, it's a very very special place, and I have had sushi here, it's been fantastic. What about Munich? Anything else that you like in Munich? >> Well I mean in Munich, we have pork knuckles. >> Pork knuckles. (Christian laughing) Very similar sushi. >> What is also very fantastic, but we have the real, the real Oktoberfest in Munich, and it starts next week, mid-September, and I think it's unique in the world. So it's very special as well. >> Oktoberfest. >> Yes. >> Unfortunately, I'm not going this year, 'cause you didn't invite me, but-- (audience chuckling) How about, I think you've got a bit of a secret in relation to Oktoberfest, probably not in Munich, however. >> It's a secret, yes, but-- >> Are you going to share? >> Well I mean-- >> See how I'm putting you on the spot? >> In the 10 years, while living here in New York, I was a regular visitor of the Oktoberfest at the Lower East Side in Avenue C at Zum Schneider, where I actually met my wife, and she's German. >> Very good. So, how about a big round of applause? (audience applauding) Not so much for Christian, but more I think, obviously for his wife, who obviously had been drinking and consequently ended up with you. (all laughing) See you later, mate. >> That's the beauty about Oktoberfest, but yes. So first of all, good morning to everybody, and great to be back here in New York for a second Transform event. New York clearly is the melting pot of the world in terms of culture, nations, but also business professionals from all kind of different industries, and having this event here in New York City I believe is manifesting what we are trying to do here at Lenovo, is transform every aspect of our business and helping our customers on the journey of intelligent transformation. Last year, in our transformation on the device business, I talked about how the PC is transforming to personalized computing, and we've made a lot of progress in that journey over the last 12 months. One major change that we have made is we combined all our device business under one roof. So basically PCs, smart devices, and smart phones are now under the roof and under the intelligent device group. But from my perspective makes a lot of sense, because at the end of the day, all devices connect in the modern world into the cloud and are operating in a seamless way. But we are also moving from a device business what is mainly a hardware focus historically, more and more also into a solutions business, and I will give you during my speech a little bit of a sense of what we are trying to do, as we are trying to bring all these components closer together, and specifically also with our strengths on the data center side really build end-to-end customer solution. Ultimately, what we want to do is make our business, our customer's businesses faster, safer, and ultimately smarter as well. So I want to look a little bit back, because I really believe it's important to understand what's going on today on the device side. Many of us have still grown up with phones with terminals, ultimately getting their first desktop, their first laptop, their first mobile phone, and ultimately smartphone. Emails and internet improved our speed, how we could operate together, but still we were defined by linear technology advances. Today, the world has changed completely. Technology itself is not a limiting factor anymore. It is how we use technology going forward. The Internet is pervasive, and we are not yet there that we are always connected, but we are nearly always connected, and we are moving to the stage, that everything is getting connected all the time. Sharing experiences is the most driving force in our behavior. In our private life, sharing pictures, videos constantly, real-time around the world, with our friends and with our family, and you see the same behavior actually happening in the business life as well. Collaboration is the number-one topic if it comes down to workplace, and video and instant messaging, things that are coming from the consumer side are dominating the way we are operating in the commercial business as well. Most important beside technology, that a new generation of workforce has completely changed the way we are working. As the famous workforce the first generation of Millennials that have now fully entered in the global workforce, and the next generation, it's called Generation Z, is already starting to enter the global workforce. By 2025, 75 percent of the world's workforce will be composed out of two of these generations. Why is this so important? These two generations have been growing up using state-of-the-art IT technology during their private life, during their education, school and study, and are taking these learnings and taking these behaviors in the commercial workspace. And this is the number one force of change that we are seeing in the moment. Diverse workforces are driving this change in the IT spectrum, and for years in many of our customers' focus was their customer focus. Customer experience also in Lenovo is the most important thing, but we've realized that our own human capital is equally valuable in our customer relationships, and employee experience is becoming a very important thing for many of our customers, and equally for Lenovo as well. As you have heard YY, as we heard from YY, Lenovo is focused on intelligent transformation. What that means for us in the intelligent device business is ultimately starting with putting intelligence in all of our devices, smartify every single one of our devices, adding value to our customers, traditionally IT departments, but also focusing on their end users and building products that make their end users more productive. And as a world leader in commercial devices with more than 33 percent market share, we can solve problems been even better than any other company in the world. So, let's talk about transformation of productivity first. We are in a device-led world. Everything we do is connected. There's more interaction with devices than ever, but also with spaces who are increasingly becoming smart and intelligent. YY said it, by 2020 we have more than 20 billion connected devices in the world, and it will grow exponentially from there on. And users have unique personal choices for technology, and that's very important to recognize, and we call this concept a digital wardrobe. And it means that every single end-user in the commercial business is composing his personal wardrobe on an ongoing basis and is reconfiguring it based on the work he's doing and based where he's going and based what task he is doing. I would ask all of you to put out all the devices you're carrying in your pockets and in your bags. You will see a lot of you are using phones, tablets, laptops, but also cameras and even smartwatches. They're all different, but they have one underlying technology that is bringing it all together. Recognizing digital wardrobe dynamics is a core factor for us to put all the devices under one roof in IDG, one business group that is dedicated to end-user solutions across mobile, PC, but also software services and imaging, to emerging technologies like AR, VR, IoT, and ultimately a AI as well. A couple of years back there was a big debate around bring-your-own-device, what was called consumerization. Today consumerization does not exist anymore, because consumerization has happened into every single device we build in our commercial business. End users and commercial customers today do expect superior display performance, superior audio, microphone, voice, and touch quality, and have it all connected and working seamlessly together in an ease of use space. We are already deep in the journey of personalized computing today. But the center point of it has been for the last 25 years, the mobile PC, that we have perfected over the last 25 years, and has been the undisputed leader in mobility computing. We believe in the commercial business, the ThinkPad is still the core device of a digital wardrobe, and we continue to drive the success of the ThinkPad in the marketplace. We've sold more than 140 million over the last 26 years, and even last year we exceeded nearly 11 million units. That is about 21 ThinkPads per minute, or one Thinkpad every three seconds that we are shipping out in the market. It's the number one commercial PC in the world. It has gotten countless awards but we felt last year after Transform we need to build a step further, in really tailoring the ThinkPad towards the need of the future. So, we announced a new line of X1 Carbon and Yoga at CES the Consumer Electronics Show. And the reason is not we want to sell to consumer, but that we do recognize that a lot of CIOs and IT decision makers need to understand what consumers are really doing in terms of technology to make them successful. So, let's take a look at the video. (suspenseful music) >> When you're the number one business laptop of all time, your only competition is yourself. (wall shattering) And, that's different. Different, like resisting heat, ice, dust, and spills. Different, like sharper, brighter OLA display. The trackpoint that reinvented controls, and a carbon fiber roll cage to protect what's inside, built by an engineering and design team, doing the impossible for the last 25 years. This is the number one business laptop of all time, but it's not a laptop. It's a ThinkPad. (audience applauding) >> Thank you very much. And we are very proud that Lenovo ThinkPad has been selected as the best laptop in the world in the second year in a row. I think it's a wonderful tribute to what our engineers have been done on this one. And users do want awesome displays. They want the best possible audio, voice, and touch control, but some users they want more. What they want is super power, and I'm really proud to announce our newest member of the X1 family, and that's the X1 extreme. It's exceptionally featured. It has six core I9 intel chipset, the highest performance you get in the commercial space. It has Nvidia XTX graphic, it is a 4K UHD display with HDR with Dolby vision and Dolby Atmos Audio, two terabyte in SSD, so it is really the absolute Ferrari in terms of building high performance commercial computer. Of course it has touch and voice, but it is one thing. It has so much performance that it serves also a purpose that is not typical for commercial, and I know there's a lot of secret gamers also here in this room. So you see, by really bringing technology together in the commercial space, you're creating productivity solutions of one of a kind. But there's another category of products from a productivity perspective that is incredibly important in our commercial business, and that is the workstation business . Clearly workstations are very specifically designed computers for very advanced high-performance workloads, serving designers, architects, researchers, developers, or data analysts. And power and performance is not just about the performance itself. It has to be tailored towards the specific use case, and traditionally these products have a similar size, like a server. They are running on Intel Xeon technology, and they are equally complex to manufacture. We have now created a new category as the ultra mobile workstation, and I'm very proud that we can announce here the lightest mobile workstation in the industry. It is so powerful that it really can run AI and big data analysis. And with this performance you can go really close where you need this power, to the sensors, into the cars, or into the manufacturing places where you not only wannna read the sensors but get real-time analytics out of these sensors. To build a machine like this one you need customers who are really challenging you to the limit. and we're very happy that we had a customer who went on this journey with us, and ultimately jointly with us created this product. So, let's take a look at the video. (suspenseful music) >> My world involves pathfinding both the hardware needs to the various work sites throughout the company, and then finding an appropriate model of desktop, laptop, or workstation to match those needs. My first impressions when I first seen the ThinkPad P1 was I didn't actually believe that we could get everything that I was asked for inside something as small and light in comparison to other mobile workstations. That was one of the I can't believe this is real sort of moments for me. (engine roars) >> Well, it's better than general when you're going around in the wind tunnel, which isn't alway easy, and going on a track is not necessarily the best bet, so having a lightweight very powerful laptop is extremely useful. It can take a Xeon processor, which can support ECC from when we try to load a full car, and when we're analyzing live simulation results. through and RCFT post processor or example. It needs a pretty powerful machine. >> It's come a long way to be able to deliver this. I hate to use the word game changer, but it is that for us. >> Aston Martin has got a lot of different projects going. There's some pretty exciting projects and a pretty versatile range coming out. Having Lenovo as a partner is certainly going to ensure that future. (engine roars) (audience applauds) >> So, don't you think the Aston Martin design and the ThinkPad design fit very well together? (audience laughs) So if Q, would get a new laptop, I think you would get a ThinkPad X P1. So, I want to switch gears a little bit, and go into something in terms of productivity that is not necessarily on top of the mind or every end user but I believe it's on top of the mind of every C-level executive and of every CEO. Security is the number one threat in terms of potential risk in your business and the cost of cybersecurity is estimated by 2020 around six trillion dollars. That's more than the GDP of Japan and we've seen a significant amount of data breach incidents already this years. Now, they're threatening to take companies out of business and that are threatening companies to lose a huge amount of sensitive customer data or internal data. At Lenovo, we are taking security very, very seriously, and we run a very deep analysis, around our own security capabilities in the products that we are building. And we are announcing today a new brand under the Think umbrella that is called ThinkShield. Our goal is to build the world's most secure PC, and ultimately the most secure devices in the industry. And when we looked at this end-to-end, there is no silver bullet around security. You have to go through every aspect where security breaches can potentially happen. That is why we have changed the whole organization, how we look at security in our device business, and really have it grouped under one complete ecosystem of solutions, Security is always something where you constantly are getting challenged with the next potential breach the next potential technology flaw. As we keep innovating and as we keep integrating, a lot of our partners' software and hardware components into our products. So for us, it's really very important that we partner with companies like Intel, Microsoft, Coronet, Absolute, and many others to really as an example to drive full encryption on all the data seamlessly, to have multi-factor authentication to protect your users' identity, to protect you in unsecured Wi-Fi locations, or even simple things like innovation on the device itself, to and an example protect the camera, against usage with a little thing like a thinkShutter that you can shut off the camera. SO what I want to show you here, is this is the full portfolio of ThinkShield that we are announcing today. This is clearly not something I can even read to you today, but I believe it shows you the breadth of security management that we are announcing today. There are four key pillars in managing security end-to-end. The first one is your data, and this has a lot of aspects around the hardware and the software itself. The second is identity. The third is the security around online, and ultimately the device itself. So, there is a breakout on security and ThinkShield today, available in the afternoon, and encourage you to really take a deeper look at this one. The first pillar around productivity was the device, and around the device. The second major pillar that we are seeing in terms of intelligent transformation is the workspace itself. Employees of a new generation have a very different habit how they work. They split their time between travel, working remotely but if they do come in the office, they expect a very different office environment than what they've seen in the past in cubicles or small offices. They come into the office to collaborate, and they want to create ideas, and they really work in cross-functional teams, and they want to do it instantly. And what we've seen is there is a huge amount of investment that companies are doing today in reconfiguring real estate reconfiguring offices. And most of these kind of things are moving to a digital platform. And what we are doing, is we want to build an entire set of solutions that are just focused on making the workspace more productive for remote workforce, and to create technology that allow people to work anywhere and connect instantly. And the core of this is that we need to be, the productivity of the employee as high as possible, and make it for him as easy as possible to use these kind of technologies. Last year in Transform, I announced that we will enter the smart office space. By the end of last year, we brought the first product into the market. It's called the Hub 500. It's already deployed in thousands of our customers, and it's uniquely focused on Microsoft Skype for Business, and making meeting instantly happen. And the product is very successful in the market. What we are announcing today is the next generation of this product, what is the Hub 700, what has a fantastic audio quality. It has far few microphones, and it is usable in small office environment, as well as in major conference rooms, but the most important part of this new announcement is that we are also announcing a software platform, and this software platform allows you to run multiple video conferencing software solutions on the same platform. Many of you may have standardized for one software solution or for another one, but as you are moving in a world of collaborating instantly with partners, customers, suppliers, you always will face multiple software standards in your company, and Lenovo is uniquely positioned but providing a middleware platform for the device to really enable multiple of these UX interfaces. And there's more to come and we will add additional UX interfaces on an ongoing base, based on our customer requirements. But this software does not only help to create a better experience and a higher productivity in the conference room or the huddle room itself. It really will allow you ultimately to manage all your conference rooms in the company in one instance. And you can run AI technologies around how to increase productivity utilization of your entire conference room ecosystem in your company. You will see a lot more devices coming from the node in this space, around intelligent screens, cameras, and so on, and so on. The idea is really that Lenovo will become a core provider in the whole movement into the smart office space. But it's great if you have hardware and software that is really supporting the approach of modern IT, but one component that Kirk also mentioned is absolutely critical, that we are providing this to you in an as a service approach. Get it what you want, when you need it, and pay it in the amount that you're really using it. And within UIT there is also I think a new philosophy around IT management, where you're much more focused on the value that you are consuming instead of investing into technology. We are launched as a service two years back and we already have a significant number of customers running PC as a service, but we believe as a service will stretch far more than just the PC device. It will go into categories like smart office. It might go even into categories like phone, and it will definitely go also in categories like storage and server in terms of capacity management. I want to highlight three offerings that we are also displaying today that are sort of building blocks in terms of how we really run as a service. The first one is that we collaborated intensively over the last year with Microsoft to be the launch pilot for their Autopilot offering, basically deploying images easily in the same approach like you would deploy a new phone on the network. The purpose really is to make new imaging and enabling new PC as seamless as it's used to be in the phone industry, and we have a complete set of offerings, and already a significant number customers have deployed Autopilot with Lenovo. The second major offering is Premier Support, like in the in the server business, where Premier Support is absolutely critical to run critical infrastructure, we see a lot of our customers do want to have Premier Support for their end users, so they can be back into work basically instantly, and that you have the highest possible instant repair on every single device. And then finally we have a significant amount of time invested into understanding how the software as a service really can get into one philosophy. And many of you already are consuming software as a service in many different contracts from many different vendors, but what we've created is one platform that really can manage this all together. All these things are the foundation for a device as a service offering that really can manage this end-to-end. So, implementing an intelligent workplace can be really a daunting prospect depending on where you're starting from, and how big your company ultimately is. But how do you manage the transformation of technology workspace if you're present in 50 or more countries and you run an infrastructure for more than 100,000 people? Michelin, famous for their tires, infamous for their Michelin star restaurant rating, especially in New York, and instantly recognizable by the Michelin Man, has just doing that. Please welcome with me Damon McIntyre from Michelin to talk to us about the challenges and transforming collaboration and productivity. (audience applauding) (electronic dance music) Thank you, David. >> Thank you, thank you very much. >> We on? >> So, how do you feel here? >> Well good, I want to thank you first of all for your partnership and the devices you create that helped us design, manufacture, and distribute the best tire in the world, okay? I just had to say it and put out there, alright. And I was wondering, were those Michelin tires on that Aston Martin? >> I'm pretty sure there is no other tire that would fit to that. >> Yeah, no, thank you, thank you again, and thank you for the introduction. >> So, when we talk about the transformation happening really in the workplace, the most tangible transformation that you actually see is the drastic change that companies are doing physically. They're breaking down walls. They're removing cubes, and they're moving to flexible layouts, new desks, new huddle rooms, open spaces, but the underlying technology for that is clearly not so visible very often. So, tell us about Michelin's strategy, and the technology you are deploying to really enable this corporation. >> So we, so let me give a little bit a history about the company to understand the daunting tasks that we had before us. So we have over 114,000 people in the company under 170 nationalities, okay? If you go to the corporate office in France, it's Clermont. It's about 3,000 executives and directors, and what have you in the marketing, sales, all the way up to the chain of the global CIO, right? Inside of the Americas, we merged in Americas about three years ago. Now we have the Americas zone. There's about 28,000 employees across the Americas, so it's really, it's really hard in a lot of cases. You start looking at the different areas that you lose time, and you lose you know, your productivity and what have you, so there, it's when we looked at different aspects of how we were going to manage the meeting rooms, right? because we have opened up our areas of workspace, our CIO, CEOs in our zones will no longer have an office. They'll sit out in front of everybody else and mingle with the crowd. So, how do you take those spaces that were originally used by an individual but now turn them into like meeting rooms? So, we went through a large process, and looked at the Hub 500, and that really met our needs, because at the end of the day what we noticed was, it was it was just it just worked, okay? We've just added it to the catalog, so we're going to be deploying it very soon, and I just want to again point that I know everybody struggles with this, and if you look at all the minutes that you lose in starting up a meeting, and we know you know what I'm talking about when I say this, it equates to many many many dollars, okay? And so at the end the day, this product helps us to be more efficient in starting up the meeting, and more productive during the meeting. >> Okay, it's very good to hear. Another major trend we are seeing in IT departments is taking a more hands-off approach to hardware. We're seeing new technologies enable IT to create a more efficient model, how IT gets hardware in the hands of end-users, and how they are ultimately supporting themselves. So what's your strategy around the lifecycle management of the devices? >> So yeah you mentioned, again, we'll go back to the 114,000 employees in the company, right? You imagine looking at all the devices we use. I'm not going to get into the number of devices we have, but we have a set number that we use, and we have to go through a process of deploying these devices, which we right now service our own image. We build our images, we service them through our help desk and all that process, and we go through it. If you imagine deploying 25,000 PCs in a year, okay? The time and the daunting task that's behind all that, you can probably add up to 20 or 30 people just full-time doing that, okay? So, with partnering with Lenovo and their excellent technology, their technical teams, and putting together the whole process of how we do imaging, it now lifts that burden off of our folks, and it shifts it into a more automated process through the cloud, okay? And, it's with the Autopilot on the end of the project, we'll have Autopilot fully engaged, but what I really appreciate is how Lenovo really, really kind of got with us, and partnered with us for the whole process. I mean it wasn't just a partner between Michelin and Lenovo. Microsoft was also partnered during that whole process, and it really was a good project that we put together, and we hope to have something in a full production mode next year for sure. >> So, David thank you very, very much to be here with us on stage. What I really want to say, customers like you, who are always challenging us on every single aspect of our capabilities really do make the big difference for us to get better every single day and we really appreciate the partnership. >> Yeah, and I would like to say this is that I am, I'm doing what he's exactly said he just said. I am challenging Lenovo to show us how we can innovate in our work space with your devices, right? That's a challenge, and it's going to be starting up next year for sure. We've done some in the past, but I'm really going to challenge you, and my whole aspect about how to do that is bring you into our workspace. Show you how we make how we go through the process of making tires and all that process, and how we distribute those tires, so you can brainstorm, come back to the table and say, here's a device that can do exactly what you're doing right now, better, more efficient, and save money, so thank you. >> Thank you very much, David. (audience applauding) Well it's sometimes really refreshing to get a very challenging customers feedback. And you know, we will continue to grow this business together, and I'm very confident that your challenge will ultimately help to make our products even more seamless together. So, as we now covered productivity and how we are really improving our devices itself, and the transformation around the workplace, there is one pillar left I want to talk about, and that's really, how do we make businesses smarter than ever? What that really means is, that we are on a journey on trying to understand our customer's business, deeper than ever, understanding our customer's processes even better than ever, and trying to understand how we can help our customers to become more competitive by injecting state-of-the-art technology in this intelligent transformation process, into core processes. But this cannot be done without talking about a fundamental and that is the journey towards 5G. I really believe that 5G is changing everything the way we are operating devices today, because they will be connected in a way like it has never done before. YY talked about you know, 20 times 10 times the amount of performance. There are other studies that talk about even 200 times the performance, how you can use these devices. What it will lead to ultimately is that we will build devices that will be always connected to the cloud. And, we are preparing for this, and Kirk already talked about, and how many operators in the world we already present with our Moto phones, with how many Telcos we are working already on the backend, and we are working on the device side on integrating 5G basically into every single one of our product in the future. One of the areas that will benefit hugely from always connected is the world of virtual reality and augmented reality. And I'm going to pick here one example, and that is that we have created a commercial VR solution for classrooms and education, and basically using consumer type of product like our Mirage Solo with Daydream and put a solution around this one that enables teachers and schools to use these products in the classroom experience. So, students now can have immersive learning. They can studying sciences. They can look at environmental issues. They can exploring their careers, or they can even taking a tour in the next college they're going to go after this one. And no matter what grade level, this is how people will continue to learn in the future. It's quite a departure from the old world of textbooks. In our area that we are looking is IoT, And as YY already elaborated, we are clearly learning from our own processes around how we improve our supply chain and manufacturing and how we improve also retail experience and warehousing, and we are working with some of the largest companies in the world on pilots, on deploying IoT solutions to make their businesses, their processes, and their businesses, you know, more competitive, and some of them you can see in the demo environment. Lenovo itself already is managing 55 million devices in an IoT fashion connecting to our own cloud, and constantly improving the experience by learning from the behavior of these devices in an IoT way, and we are collecting significant amount of data to really improve the performance of these systems and our future generations of products on a ongoing base. We have a very strong partnership with a company called ADLINK from Taiwan that is one of the leading manufacturers of manufacturing PC and hardened devices to create solutions on the IoT platform. The next area that we are very actively investing in is commercial augmented reality. I believe augmented reality has by far more opportunity in commercial than virtual reality, because it has the potential to ultimately improve every single business process of commercial customers. Imagine in the future how complex surgeries can be simplified by basically having real-time augmented reality information about the surgery, by having people connecting into a virtual surgery, and supporting the surgery around the world. Visit a furniture store in the future and see how this furniture looks in your home instantly. Doing some maintenance on some devices yourself by just calling the company and getting an online manual into an augmented reality device. Lenovo is exploring all kinds of possibilities, and you will see a solution very soon from Lenovo. Early when we talked about smart office, I talked about the importance of creating a software platform that really run all these use cases for a smart office. We are creating a similar platform for augmented reality where companies can develop and run all their argumented reality use cases. So you will see that early in 2019 we will announce an augmented reality device, as well as an augmented reality platform. So, I know you're very interested on what exactly we are rolling out, so we will have a first prototype view available there. It's still a codename project on the horizon, and we will announce it ultimately in 2019, but I think it's good for you to take a look what we are doing here. So, I just wanted to give you a peek on what we are working beyond smart office and the device productivity in terms of really how we make businesses smarter. It's really about increasing productivity, providing you the most secure solutions, increase workplace collaboration, increase IT efficiency, using new computing devices and software and services to make business smarter in the future. There's no other company that will enable to offer what we do in commercial. No company has the breadth of commercial devices, software solutions, and the same data center capabilities, and no other company can do more for your intelligent transformation than Lenovo. Thank you very much. (audience applauding) >> Thanks mate, give me that. I need that. Alright, ladies and gentlemen, we are done. So firstly, I've got a couple of little housekeeping pieces at the end of this and then we can go straight into going and experiencing some of the technology we've got on the left-hand side of the room here. So, I want to thank Christian obviously. Christian, awesome as always, some great announcements there. I love the P1. I actually like the Aston Martin a little bit better, but I'll take either if you want to give me one for free. I'll take it. We heard from YY obviously about the industry and how the the fourth Industrial Revolution is impacting us all from a digital transformation perspective, and obviously Kirk on DCG, the great NetApp announcement, which is going to be really exciting, actually that Twitter and some of the social media panels are absolutely going crazy, so it's good to see that the industry is really taking some impact. Some of the publications are really great, so thank you for the media who are obviously in the room publishing right no. But now, I really want to say it's all of your turn. So, all of you up the back there who are having coffee, it's your turn now. I want everyone who's sitting down here after this event move into there, and really take advantage of the 15 breakouts that we've got set there. There are four breakout sessions from a time perspective. I want to try and get you all out there at least to use up three of them and use your fourth one to get out and actually experience some of the technology. So, you've got four breakout sessions. A lot of the breakout sessions are actually done twice. If you have not downloaded the app, please download the app so you can actually see what time things are going on and make sure you're registering correctly. There's a lot of great experience of stuff out there for you to go do. I've got one quick video to show you on some of the technology we've got and then we're about to close. Alright, here we are acting crazy. Now, you can see obviously, artificial intelligence machine learning in the browser. God, I hate that dance, I'm not a Millenial at all. It's effectively going to be implemented by healthcare. I want you to come around and test that out. Look at these two guys. This looks like a Lenovo management meeting to be honest with you. These two guys are actually concentrating, using their brain power to race each others in cars. You got to come past and give that a try. Give that a try obviously. Fantastic event here, lots of technology for you to experience, and great partners that have been involved as well. And so, from a Lenovo perspective, we've had some great alliance partners contribute, including obviously our number one partner, Intel, who's been a really big loyal contributor to us, and been a real part of our success here at Transform. Excellent, so please, you've just seen a little bit of tech out there that you can go and play with. I really want you, I mean go put on those black things, like Scott Hawkins our chief marketing officer from Lenovo's DCG business was doing and racing around this little car with his concentration not using his hands. He said it's really good actually, but as soon as someone comes up to speak to him, his car stops, so you got to try and do better. You got to try and prove if you can multitask or not. Get up there and concentrate and talk at the same time. 62 different breakouts up there. I'm not going to go into too much detai, but you can see we've got a very, very unusual numbering system, 18 to 18.8. I think over here we've got a 4849. There's a 4114. And then up here we've got a 46.1 and a 46.2. So, you need the decoder ring to be able to understand it. Get over there have a lot of fun. Remember the boat leaves today at 4:00 o'clock, right behind us at the pier right behind us here. There's 400 of us registered. Go onto the app and let us know if there's more people coming. It's going to be a great event out there on the Hudson River. Ladies and gentlemen that is the end of your keynote. I want to thank you all for being patient and thank all of our speakers today. Have a great have a great day, thank you very much. 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>> Announcer: Live from San Jose it's The Cube presenting Big Data, Silicon Valley brought to you by SiliconANGLE Media and its ecosystem partners. >> Good morning. Welcome to The Cube. We are on day two of our coverage our event Big Data SV. I'm Lisa Martin with my cohost Dave Vellante. We're down the street from the Strata Data Conference. This is The Cube's tenth big data event and we had a great day yesterday learning a lot from myriad guests on very different nuances of big data journey where things are going. We're excited to welcome back to The Cube an alumni, Octavian Tanase, the Senior Vice President of Data ONTAP fron Net App. Octavian, welcome back to The Cube. >> Glad to be here. >> So you've been at the Strata Data Conference for the last couple of days. From a big data perspective, what are some of the things that you're hearing, in terms of from a customer's perspective on what's working, what challenges, opportunities? I'm very excited to be here and learn about the innovation of our partners in the industry and share with our partners and our customers what we're doing to enable them to drive more value out of that data. The reality is that data has become the 21st Century gold or oil that powers the business and everybody's looking to apply new techniques, a lot of times machine learning, deep learning, to draw more value of the data, make better decisions and compete in the marketplace. Octavian, you've been at NetApp now eight years and I've been watching NetApp, as we were talking about offline, for decades and I've seen the ebb and flow and this company has transformed many, many times. The latest, obviously cloud came in, flash came into play and then you're also going through a major transition in the customer based to clustered ONTAP. You seemed to negotiate that. NetApp is back, thriving, stock's up. What's happening at NetApp? What's the culture like these days? Give us the update. >> I think we've been very fortunate to have a CEO like George Kurian, who has been really focused on helping us do basically fewer things better, really focus on our core business, simplify our operations and continue to innovate and this is probably the area that I'm most excited about. It's always good to make sure that you accelerate the business, make it simpler for your customers and your partners to do business with you, but what you have to do is innovate. We are a product company. We are passionate about innovation. I believe that we are innovating with more pace than many of the startups in the space so that's probably the most exciting thing that has been part of our transformation. >> So let's talk about big data. Back in the day if you had a big data problem you would buy a big Unix box, maybe buy some Oracle licenses, try to put all your data into that box and that became your data warehouse. The brilliance of Hadoop was hey we can leave the data where it is. There's too much data to put into the box so we're going to bring five megabytes to code to a petabyte of data. And the other piece of it is CFOs loved it, because we're going to reduce the cost of our expensive data warehouse and we're going to buy off the shelf components: white box, servers and off the shelf disk drives. We're going to put that together and life will be good. Well as things matured, the old client-server days, it got very expensive, you needed enterprise grade. So where does NetApp fit into that equation, because originally big storage companies like NetApp, they weren't part of the equation? Has that changed? >> Absolutely. One of the things that has enabled that transformation, that change is we made a deliberate decision to focus on software defined and making sure that the ONTAP operating system is available wherever data is being created: on the edge in an IoT device, in the traditional data center or in the cloud. So we are in the unique position to enable analytics, big data, wherever those applications reside. One of the things that we've recently done is we've partnered with IDC and what the study, what the analysis has shown is that deploying in analytics, a Hadoop or NoSQL type of solution on top of NetApp is half the cost of DAS. So when you consider the cost of servers, the licenses that you're going to have to pay for, these commercial implementations of Hadoop as well as the storage and the data infrastructure, you are much better off choosing NetApp than a white box type of solution. >> Let's unpack that a little bit, because if I infer correctly from what you said normally you would say the operational costs are going to be dramatically lower, it's easier to manage a professional system like a NetApp ONTAP, it's integrated, great software, but am I hearing you correctly, you're saying the acquisition costs are actually less than if I'm buying white box? A lot of people are going to be skeptical about that, say Octavian no way, it's cheaper to buy white box stuff. Defend that statement. >> Absolutely. If you're looking at the whole solution that includes the server and the storage, what NetApp enables you to do if you're running the solution on top of ONTAP you reduce the need for so many servers. If you reduce that number you also reduce the licensing cost. Moreover, if you actually look at the core value proposition of the storage layer there, DAS typically makes three copies of the data. We don't. We are very greedy and we're making sure that you're using shared storage and we are applying a bunch of storage efficiency techniques to further compress, compact that data for world class storage efficiency. >> So cost efficiency is obviously a great benefit for any company when they're especially evolving, from a digital perspective. What are some of the business level benefits? You mentioned speed a minute ago. What is Data ONTAP and even ONTAP in the cloud enabling your enterprise customers to achieve at the business level, maybe from faster time to market, identifying with machine learning and AI new products? Give me an example of maybe a customer that you think really articulates the value that ONTAP in the cloud can deliver. >> One of the things that's really important is to have your data management capability, whatever the data is being produced so ONTAP being consumed either as a VM or a service ... I don't know if you've seen some of the partnerships that we have with AWS and Azure. We're able to offer the same rich data management capabilities, not only the traditional data center, but in the cloud. What that really enables customers to do is to simplify and have the same operating system, the same data management platform for the both the second platform traditional applications as well as for the third platform applications. I've seen a company like Adobe be very successful in deploying their infrastructure, their services not only on prem in their traditional data center, but using ONTAP Cloud. So we have more than about 1,500 customers right now that have adopted ONTAP in the AWS cloud. >> What are you seeing in terms of the adoption of flash and I'm particularly interested in the intersection of flash adoption and the developer angle, because we've seen, in certain instances, certain organizations are able to share data off of flash much more efficiently that you would be, for instance, of a spinning disk? Have you seen a developer impact in your customer base? >> Absolutely I think most of customers initially have adopted flash, because of high throughput and low latency. I think over time customers really understood and identified with the overall value proposition in cost of ownership in flash that it enables them to consolidate multiple workloads in a smaller footprint. So that enables you to then reduce the cost to operate that infrastructure and it really gives you a range of applications that you can deploy that you were never able to do that. Everybody's looking to do in place, in line analytics that now are possible, because of this fast media. Folks are looking to accelerate old applications in which they cannot invest anymore, but they just want to run faster. Flash also tends to be more reliable than traditional storage, so customers definitely appreciate that fewer things could go wrong so overall the value proposition of flash, it's all encompassing and we believe that in the near future flash will be the defacto standard in everybody's data center, whether it's on prem or in the cloud. >> How about backup and recovery in big data? We obviously, in the enterprise, very concerned about data protection. What's similar in big data? What's different and what's NetApp's angle on that? >> I think data protection and data security will never stop being important to our customers. Security's top of mind for everybody in the industry and it's a source of resume changing events, if you would, and they're typically not promotions. So we have invested a tremendous deal in certifications for HIPAA, for FIPS, we are enabling encryption, both at rest and in flight. We've done a lot of work to make sure that the encryption can happen in software layer, to make sure that we give the customers best storage class efficiency and what we're also leveraging is the innovation that ONTAP has done over many years to protect the data, replicate its snapshots, peering the data to the cloud. These are techniques that we're commonly using to reduce the cost of ownership, also protect the data the customers deploy. >> So security's still a hot topic and, like you said, it probably always will be, but it's a shared responsibility, right? So customers leveraging NetApps safe or on prem hybrid also using Azure or AWS, who's your target audience? If you're talking to the guys and gals that are still managing storage are you also having the CSO or the security guys come in, the gals, to understand we've got this appointment in Azure or AWS so we're going to bring in ONTAP to facilitate this? There's a shared responsibility of security. Who's at the table, from your perspective, in your customers that you need to help understand how they facilitate true security? >> It's definitely been a transformative event where more and more people in IQ organizations are involved in the decisions that are required to deploy the applications. There was a time when we would talk only to the storage admin. After a while we started talking to the application admin, the virtualization admin and now you're talking to the line of business who has that vested interest to make sure that they can harness the power of the data in their environment. So you have the CSO, you have the traditional infrastructure people, you have the app administration and you have the app owner, the business owner that are all at the table that are coming and looking to choose the best of breed solution for their data management. >> What are the conversations like with your CXO, executives? Everybody talks about digital transformation. It's kind of an overused term, but there's real substance when you actually peel the onion. What are you seeing as NetApp's role in effecting digital transformations within your customer base? >> I think we have a vision of how we can help enterprises take advantage of the digital transformation and adopt it. I think we have three tenants of that vision. Number one is we're helping customers harness the power of the cloud. Number two, we're looking to enable them to future proof their investments and build the next generation data center. And number three, nobody starts with a fresh slate so we're looking to help customers modernize their current infrastructure through storage. We have a lot of expertise in storage. We've helped, over time, customers time and again adopt disruptive technologies in nondisruptive ways. We're looking to adopt these technologies and trends on behalf of our customers and then help them use them in a seamless safe way. >> And continue their evolution to identify new revenue streams, new products, new opportunities and even probably give other lines of business access to this data that they need to understand is there value here, how can we harness it faster than our competitors, right? >> Absolutely. It's all about deriving value out of the data. I think earlier I called it the gold of the 21st Century. This is a trend that will continue. I believe there will be no enterprise or center that won't focus on using machine learning, deep learning, analytics to derive more value out of the data to find more customer touch points, to optimize their business to really compete in the marketplace. >> Data plus AI plus cloud economics are the new innovation drivers of the next 10, 20 years. >> Completely agree. >> Well Octavian thanks so much for spending time with us this morning sharing what's new at NetApp, some of the visions that you guys have and also some of the impact that you're making with customers. We look forward to having you back on the program in the near future. >> Thank you. Appreciate having the time. >> And for my cohost Dave Vellante I'm Lisa Martin. You're watching The Cube live on day two of coverage of our event, Big Data SV. We're at this really cool venue, Forager Tasting Room. Come down here, join us, get to hear all these great conversations. Stick around and we'll be right back with our next guest after a short break. (electronic music)

>> Narrator: Live from Las Vegas, Nevada, it's The Cube, covering Accelerate 2017. Brought to you by Fortinet. Now, here's your host, Lisa Martin. >> Hi, welcome back to The Cube. We are Silicon Angle's flagship live streaming program, where we go out to the events and we extract the signal from the noise, and we bring it right to you. We are in beautiful Las Vegas with Fortinet. Today, or this week is their Accelerate 2017 event, and we've been excited to be chatting with a lot of their folks and technology partners. Today we are joined by two gentlemen from Fortinet. First, we have John Maddison. You are the Senior Vice President of Products and Solutions. >> Indeed. >> Lisa: Hey John. >> Hi. >> Lisa: Thanks for joining us. We've got Joe Sykora who is the Vice President of America's Channels. >> Thanks Lisa. >> So guys, a lot of exciting stuff going on today. I wanted to give the viewers here who haven't had a chance to meet you guys yet, what you're both doing. John, you have a veteran. You're a veteran of over 20 years experience at telecom >> At least. >> At least 20 in IT infrastructure, security industries, you've lived in Europe and Asia and the U.S. and worked in those. Joe, you oversee quite a big channel of over 7400 America's partners and the entire channel strategy. So you guys are kind of busy. >> A little bit. >> Joe, you're probably pretty proud of this. You were named, in 2015, by CRN as one of the 50 Most Influential Channel Chiefs. >> Yes I was. >> Did you get like a button or hat? >> No, I think it's a t-shirt. >> Oh, t-shirt. >> Absolutely. >> Outstanding, so speaking of t-shirts, I have no segue there, wanted to understand, we've been talking to a lot of your folks today, as I mentioned. We talked to your CEO who was talking about this third generation of security and kind of where we are today with that. And then we talked to Drew, the CFO, who was really talking about the criticalness of trusting data. With the announcement today, maybe John I'll throw this to you, the announcement today of the new products and technologies, how are they going to continue to facilitate or enable your customers, direct or indirect to be able to trust their data? >> Yeah, so we announced the fabric last year. Today, we announced our operating system Fi.6, which is extension of the fabric. We also announced something called intent-based network security, which is the next generation of network security that Ken Xie, our founder, talked about. And then we also announced, the third thing is our new security operations solution, which brings together several products for the infosec world. So I think all of these come together to make sure that we're continuing the effort to make sure our customers are safer, that they can integrate the fabric into their infrastructure and obviously, that's very important to their brand. >> That was going to be one of the things I was going to talk about is are you seeing that you're making a difference in the brand of a customer? We were talking, before we started today, and a lot of you are familiar with some of the the big breaches, I mean, breaches are a common, daily occurrence, but when when they start happening in brands it's the consumers know who aren't in technology becomes a suddenly, can I trust this particular brand where I normally go and buy household products. So it sounds like the announcements today are really next generation leading you guys to continue to be able to deliver, not just that comfort level that your customers need in terms of we can trust our data, but also helping them improve their brand so that their customers trust their brand. >> Exactly and so, you know, the fabric has expanded in that we've expanded it across multiple now attack vectors so what used to be really focused on the core network, we can now cover email, we can now cover the web, endpoint and also, you can see some of our partners around here, we've also expanded our fabric-ready so the fabric here has several APIs, multiple APIs that allow different partners to connect into it. And so, we haven't announced it totally yet but we've got six new partners, some big companies like Cisco and HBE, actually joining our fabric-ready program to be part of the fabric. So we can cover the entire infrastructure of any company. >> Fantastic, so speaking, we'll get to that in a minute but one of the topics that's also come out today, as we've seen the evolution of security from perimeter based security in the 90s to you know, web security, cloud security. Moving towards 2020 and the fact that it's 2017, a little scary, we're pretty close to that and we're seeing this explosion and proliferation of mobile devices, of IOT devices, lot of lack of security there. As we get to that point, one of the other themes that we're hearing a lot about here today is that there is a gap in terms of of resources. What is Fortinet doing to help bridge that gap, that your customers are facing? Where it comes to, specifically, network security programs? >> So one of the programs we launched again, a couple of years ago was the Network Security Expert program, NSE, in 2016, we had over 30,000 certificates issued on NSE. It's probably one of the largest security programs, 'cause one of the big issues for customers and our partners is just the skills gap, cybersecurity. We also, actually, use a lot of those materials and assets and give them to Universities who are starting to do their programs as well. That's really essential for our partners to be trained at the lowest level in terms of the basics, but also, we've had about 40 people take part in our Network Security Eight architecture program. You can see them, these are the pins, actually, we have, which are NSE one to seven, but the NSE eight are the red ones and there's about 40 now of what we call security solution architects, who can go into companies and look at their complete infrastructure and give them an update in terms of security. >> Excellent, so want to touch on the channel, for a moment. Ken talked about the security fabric architecture, you mentioned that it was launched last year. What has been the reaction of the channel? >> Oh, it's been absolutely great. It's about mid-year last year's when we announced that. Embraced by the channel, in fact, CRN named it the security product of the year, for 2016. >> Lisa: Oh, fantastic, congratulations. >> Very proud of that. And that's actually the feedback of the channel partners. It resonates. It's creating new opportunities for our partners. Combine that with the training that John just talked about, I mean, they're armed to really just go out there and help solve all those end user programs, problems. >> Thank you, and sorry for interrupting. What are some of the main pain points that you're hearing through the channel, that customers are experiencing as we start to see big attacks have become more and more prevalent, the Dyn attack recently, DdOS being common types of attacks. As more and more things, like critical infrastructures are becoming plugged into corporate networks, and more mobile and more IOT, what are some of the pain points that your customers are experiencing, and how are they, looking to resolve and mitigate some of the challenges that they have leveraging the security fabric architecture? >> Sure, well attacks are going to happen, right. We know they're going to happen. It's how fast can you react to those attacks. And the fabric actually enarms our partners to just have intelligence on what is actionable and what's not actionable. So we're tryin' to automate that. Some of the future stuff that we're going to be doing later in the year is going to even enable them more. But it's all about simplifying it for our partners to react to what needs to be reacted to. >> Are you seeing, from an industry perspective, we were talking with Derek Menke, excuse me, about healthcare really being at the top of the at risk from an industry perspective. But in the general session today, there was a CSO panel and there was Verizon was there, Levi's was there, as well as Lazard. We saw Telefonica throughout the event today, the Steelers. Are you seeing through the channel, and maybe this is a question for both of you, are you seeing particular industries at more risk coming to you through your customers' needs or is it fairly agnostic from a security perspective? >> Yeah, I think on the channel side, obviously, everyone's at risk, right. So I think it's the value of those of the incidences is really more highlighted. So when Derek talks about healthcare, for example, dealing with people's lives is important along with you health records. So that's much more valuable than say, at the Steelers, not being able to get on the guest wifi. So I think everyone's at risk. All of our channel partners have different verticals that they go after, and it's all the same, it really is. >> Yeah, I would say the risk is pretty broad across every vertical, I mean, yes healthcare, the healthcare records are extremely valuable, but also the financial industry. You've also got industrial controls systems, for example. You've also got retail and so, I think every vertical, every industry is taking security very, very seriously. And back to your previous question about how is the fabric helping partners, I think, previously, they had to kind of stitch together a lot of point solutions themselves. I think with the fabric, it gives them an architecture or a framework. It could be mostly Fortinet gear. It could be Fortinet plus some of their other partners. It helps them put that in place across the entire infrastructure. >> You bring up a good point, John, that that was brought up a number of times today and that is the role of the CSO now being, you know, kind of think, is that guy or girl at the lead of the digital army? But that person is inheriting, we were seeing a couple of different reports, North of 25 different security technology, really kind of a patchwork environment. In that kind of situation, where now security is a board level conversation, how is Fortinet direct, and through the channel, helping that CSO? Is that a key buyer for you that you're helping to figure out, I've got this patchwork here, how do I build it into a fabric or a fabric around it? >> What we've seen, what I've experienced in the last 10 plus years in security is, I'd often go into a room and there'll be the network security people on one side of the table, and the security people on the other side of the table with the CSO and the CIO and I think, that gradually over the last three years, I've seen more cooperation. So now, when we have briefings with customers and partners, you'll see both teams together. You'll see a new role inside customers called the Security Architect, that's looking holistically longer term over the security architecture. And one of our announcements today around the security operations center is to do, just do that, bring together the SOC and the infosec world, together with the network security world. We did a demo today on stage showing that bringing together our Forti SIM, our Forti analyzer with our fabric to bring those two worlds together, because as Joe says, you know, there's a report done by Verizon on the breach report that says, within 60 seconds, you can be compromised. You've got basically 60 seconds to stop that threat and so speed is very important. So giving our partners this ability to bring together a fabric, with Fortinet gear, with our partners' gear, that provides very fast protection is very important. >> Excellent, one of the things, too, that I found interesting today was learning about what FortiGuard Labs is doing. I read over the weekend what Derek Menke's team published, the 2017 predictions. Really quite frightening. And he was on the show earlier and saying, that they're already seeing a number of these things already in play. How much more intelligent malware is getting, and the pervasiveness of the threats there. How are some of the new technologies announced today, maybe enhancing or what FortiLabs is doing from a threat intelligence perspective, is that something that was part of? >> Yeah, that's a really important area. I think the vendor community needs to do better in sharing the threat intelligence. I think, today, it's in pockets, but I think long term, it's absolutely essential that threat intelligence get shared across the whole community because, with some of the new threats coming, the machine to machine threats, the scale and the speed's going to be even more. You saw the Dyn attack last year on Ddos. That's going to be small compared to some things coming up. So I think, longer term, the fabric across the infrastructure, and then the security vendors getting together and sharing that threat intelligence so you've got a bigger view of the attack surface is absolutely essential to stop the new type of threats. >> Exactly, and as that attack surface is growing by the day. So last question, before we wrap up here, give you guys both a chance to answer. At the beginning of your fiscal year, here we are in January, what are you most excited about for the channel in 2017, for example? >> Sure, opportunity, right. For our channel partners, we've got probably one of the strongest channel partners just the overall. We're aligning, realigning with our field teams, so just the resources that all of these partners have. I think the opportunity's great, the market's great, like you said, you open up anything now, and you see, okay, it's been infiltrated, it's been hacked. So I think we're all going to have a really good 2017. >> Fantastic, John, what about you? What are you most excited for? >> I was most excited about this interview, actually, that's what I was looking forward to. >> Wow, fantastic, we'll close there. (laughter). >> No, I think it's obviously, rolling out more of our technology, integrating more of our partners, training more of our partners and helping them with their customers. >> Fantastic, well the buzz and the momentum here and also, the passion for both yourselves and your roles and your peers and your colleagues is really palpable. So I want to thank you both for joining us on the Cube today. >> Thank you. >> And we wish you the best of luck at the rest of the event. >> Thanks Lisa. >> Alright, for John and Joe, I'm Lisa Martin. You've been watching the Cube, but stick around, we'll be right back.