>>Yeah, yeah. Okay. Welcome back, everyone to the cubes. Coverage of reinvent 20 twenty-one Jon, your host of the Cube. We're here. Live in person for a real event. It's a hybrid event is a live stream of action to cube sets here, wall to wall coverage dot com. And, of course, you don't need to check the coverage out. And Amazon has got their own live event site. Go check out all the action. Stewart, See two of Micro Focus, the company That was part of the big announcement involving the mainframe modernization that Adam announced on stage and his first keynote CEO. And under the covers Micro Focus powering a lot of that functionality. Stuart, thanks for coming on. The break it down with >>Thanks. >>So what does the announcement? I mean that that Adam gave the i b. M. I mean the mainframe announcement that I've known for the main frame, but he had the mainframe modernization program. What's that all about? >>I think I'd like to think of this is the next evolution of the main frame for those customers that have been running on the main thing for 40 years. They had their business on it. Where do they go next? What does the future? What does the future hold? And this is all part of the announcement yesterday is this is the journey that many, many customers are going to decide to go on. >>So it's all about the relationship between A. W S and micro Focus. Obviously, Um, yeah. I was talking about migration for the Oracle, and a lot of our customers have these main friends that are in the classic data centers. And he told me personally when I interviewed him that the main part of that data center mindset that people are chipping away at now they want to move them out and keep some functionality, but for the most part, migrated out eventually. Yeah, This is where you guys are involved. Take us through why that's important. >>I think it's the next level of agility that it is actually delivered for many customers. They need to move a hell of a lot faster than they currently are. Let's face it, the world is changing at pace. The applications support these customers need to also a change of pace. What a W s does give this market and momentum which is, Where do we go next? Where do we take customers where workloads have been running the business? Where? How are they going to run the business in five years time? How they're gonna run their business in 10. >>Well, congratulations on microphone. Big part of the announcement. Specifically explained to me, Micro focuses role in the announcement with a W S. What's the relationship? >>I think they're too old to call it out. Actually, we've been working with A W S for many, many years. This isn't something that radically new. We've been engaging with them for literally 10 years, at least. But the key elements Microphone provides technology That's an enabler to facilitate delivering the service as well as the competency partner to help customers actually accelerate their journey to take advantage of it. >>So we're bundling micro focus into that capability. Is it software that you guys have? What's going on the covers? >>I think it's software. It's capability. It's expertise. It's everything that a customer might need to help and be successful. Our job is to a W S H A W s job to make sure the customer is absolutely satisfied. >>Give me an example of a customer mainframe. I'm a bank. I've been using the main frame and just squeaked Time to get my back up before I turned the light in the morning. It's just working. It's coming. It's pumping it all cylinders, my cobalt program or just quit. What do I do? How do you help me? >>Well, I think there are two reasons why you can give us a call Is number one? Yeah, You need to move your business of pace. So what's going to run your business going forward? So you need to understand your applications. Number two, the cost profile of your existing infrastructure is going to be incredibly expensive. So what you wanna do is essentially make the change accelerate the change delivered at a much lower cost. >>So it looks like the application. So the software Okay, what's the app? And then create a replica of digital twin? I'm just trying to visualized. Now I see what you mean. What happens because, I mean, you know what? That is A big deal with that animal for a long time. What happens next is a container eyes. That application, >>the customer determines how far they want to go if they would like the application to run in the cloud exactly as is so it supports their customers exactly as they expect today. We can do that. On the other hand, if they need to enhance the experience for their customers if they need to take it into a completely different environment. If they do want to contain, arise if they want to take it into new levels of service. If they do want to leverage artificial intelligence and machine learning, then again they can determine the journey. Micro focus is that essentially support them. Do that first step, which is get the applications ready to be delivered into cloud as fast as possible. >>Congratulations. Relationship. I guess I've got to ask you a question. Which on my mind is that Okay? It's the death of the mainframe. Long live the mainframe. You know the expression, uh, mainframe dying. I'm gonna hang around for a while. The dinosaurs are out there. >>I think it is. We like to position there is an evolution. We don't think the main friends gonna die. There will be customers who want to stay there, and we respect their choices. But on the other hand, this is a way to truly accelerate the future of mainstream applications. >>You know, student, I talked to a lot of success and C E O. S. And they tell me the same thing when they moved into the cloud. White hardcore is pretty much the main or critical laps to get the edges first moved into the cloud. And then they come and they start chipping away at the main, the main core and then slowly move it out because they don't want to get in there and disrupt so disruptions. A huge concerns. How does this new, um, modernization Tranz, uh, migration program for the mainframe ensure that disruption doesn't happen? What? I'm sure that's on their mind >>as well. I think what you're describing is what's the cut over when you're running on the main street today? You wanna run on the main from tomorrow, You know, if that's the case, or do you want to run the main from today and you want to run the cloud tomorrow? Essentially, the cut over is the same. The process is fairly separate from the mainframe itself. You obviously bringing applications off. We're getting them ready to go tested, you know, regulated. So it's been approved securities all in place, and then essentially, it's literally a switch cut. We literally have customers that turn off the main frame and, you know, they're already running in the cloud, and then we don't even have some that photographs of them shipping mainframe out the door. >>So I've got to ask, Is there a party at that point? You know, some people do >>that. It's certainly true. Remember that people are also going along for this journey, and they're not, You know, it's a big moment for them. >>You know, I hate the sound of today's my birthday. So I have to say this, Um, I remember when I was breaking into the business in my twenties. I never I never program punch cards, But remember pointing at the mainstream guys are seeing those old relics. I guess that's what I would be today. But the young guns coming into the industry, they want containers. They want micro services. They want cloud and see what's going on here. I mean, some really cool stuff happening. >>Uh, they want to take advantage of all the stuff that is there and every single announcement has been made today and yesterday on the days ahead. All of those great capabilities if you can get them into the core of your business. And so the key is to actually take us running your business today, enhance it and improve it and take it forward. I >>think I think the key points great insight on your part about this cut over because people know what that means. It's a project plan. Cut it over, get set up. And I think that's the hard part. How hard is that? On the cloud side, In terms of staging, can you share some timetables with me? Just kind of Give me a feel for order of magnitude Mainframe. Assuming, pumping it snap I'm using. I really can't shut it down, but I want to put it on. How much time to prepare to get into the cloud? Um, roughly just order of magnitude. Most >>customers, they tend to face these things they're not trying to. If you're a really big bank, you are not gonna do that overnight. That isn't gonna come as a surprise. But what we're gonna do is we're gonna take it in chunks and typically 12 to 15 months, which is the biggest step of the journey, which is going from mainframe to cloud. The next generation is going to be modernizing those applications, and it's going to be much short timeframes. Then you're getting into months, weeks, days >>after that. Is there any category that you see that are more susceptible to migration? You mentioned banks. I know some banks that they will never going to touch the mainstream because it's just so critical that the migration longer is there. Other areas of your insurance is a big market mainframe. Is the verticals that kind of like a more converting than others? >>Well, yes. But actually, I take it back. One of the reasons are these applications absolutely critical to these businesses. If they are, that's the reason why they're still running where they are, because they're really truly valuable. They are the business, so you're you're taking the business into new framework. So in that context actually tends to be financial services insurance, as you say, but also government, For example, the federal government, state and local as well as you move into retail. And it's surprising how often as you go into some of the other verticals where some of these mainframe applications are still existing. >>I hate to ask a question, because I don't know. So I want to ask, Um, and you can see it's a dumb question. If you think it is. Just tell me, Are there still cobalt programmers out there? >>There are to be clear. Actually, it's not a problem. You can train a new guy and literally weeks. If the issue is, yeah, actually use the mainstream itself, the mainstream experience about how it works as getting rarer. And so the key element is, how can how can you take the new young guns, give them, give them the application and see what they can do? This is a mechanism to do that. >>Great, Great announcement. Congratulations. I was really impressed at the moment. I'm actually surprised to see Adam kind of focus on that. But again, in the spirit of the traditional, uh, reinvent jazzy before Adam and he did the same thing with Oracle and all the other kind of big the legacy old guard they call them Technologies maintains one. You guys are part of that. So congratulations. Final word. Your take on the event so far. What's been the feedback on the announcement? Share some color commentary on what the feedback for you guys >>were. Actually, since the announcement, we've had some great customer conversations. I mean, there are a lot of businesses that really do want to make this change. We're kind of there to help them. And that's really the next step, which is what needs to happen to make that a reality. >>Amazon may not like me saying it, but I think there's some cases where you keep them in there and you don't touch. It works there. You keep it unless you wanna move. But if you want to move it, people, sometimes we want to move faster. And just there >>even a W s respects customer choice. The purpose is to meet the demand for the customer. And if the customer to sounds great, if they want to move off, we're there to help >>with the mainframe. Long live the main friends. The Cube coverage here in Las Vegas. I'm John. I love the mainframe Thirty-seven terminal. When I worked at the back in the eighties getting myself, um, thanks for coming in. And I appreciate it. Okay. Coverage here in Las Vegas. The Cube. You're watching the leader in global tech event coverage? I'm your host. Thanks for watching. Yeah, Yeah, yeah, yeah, yeah. Uh, mhm, yeah.

>>Back cubes back on day three here in cloud city, global world Congress. This is where all the action is. And this is the cube set. I'm John. We're here with Dr., who is the CEO of telco VR, as well as the CEO of Tacoma. Great to see you again. Hey, Hey, how are you guys? Good, great time. Great boat last night. Good industry executives. A lot of intimate high player players here in the industry, even though not a lot of attendance, but the right people are here and events are back. >>Yeah. Yeah. I think, um, you know, MWC was the first event to cancel with COVID in, uh, February of 20 end of February, 2020. So first big event to come back. It's such a nice symmetry. Um, yeah, typically you have big delegations, hundreds of people from the big groups coming to the show, we're seeing the executives are coming smaller delegations, but they're all in the booth and that we're having great conversations and it's awesome. >>Yeah. And the thing I will say is that the cubes back to we'd like them to be fee in here in the action. He says, one of the things that's happened with this hybrid events is that people are watching. And so there's a virtual space and the physical space and cloud city has built out paradise. It's beautiful and spectacular behind this. Look, you look around for the people who can't see, it's really made for the combination of onsite and virtual experience, the content, the people Bon Jovi last night, just, it's just the top of mobile world Congress. And it's translating to the industry. This has been amazing. So congratulations. Well, >>I think I got to say you have a lot to say as we all know. Yeah. But I think it was easy for the big guys. That's why we love you in the queue, but I think it was easy for the big guys to tap out and say, Hey, we can save a bunch more money. We don't really have much to talk about. Right. We're going to talk about again, let's talk about 5g revolution. Whereas, whereas the narrative here is all about the future and it's not about the future of blah, blah, blah. It's about the future. You know, this is the journey that we're taking and here's where it starting and with leaving the boat. >>Yeah. And I think what's really interesting about cloud city is the fact that we've brought these different players together that are all focused, as you said, on the, on the future. And I'm starting to see these connections where they're collaborating right vendors that didn't know each other probably would never have partnered before. Totally different areas. I'm hearing the conversation in the booth about like, Hey, I talked to Pete when security or I went and talked to, you know, LMX and we're putting deals together because we're complimentary and it's amazing. >>And integration partnership heard that from Google yesterday on our, our news exclusive break in there, they see integration. And they're talking about Android with Android, for mobile. They're seeing a whole new software paradigm coming into telephones it's partnership ecosystem and open. These are new kind of dynamics >>For you guys. When you say integration and open, I think those things are really paired and they're important. A lot of times telco people will hear integration, I'll think customization, right? Coding it up and customizing it so that they talk to each other. But I think the open part of that is really important where we're connecting via API APIs. And I think that's bringing in the hyperscalers, that's what they do. Right? They provide these systems and the software, it's all API base and you can use it very quickly and you can unravel it if you need to. It's feature velocity that we talked about a couple of days and automation >>Is the underpinning. I mean, that's really the theme, right? It's not like a one-off hardcore custom integration. That's gonna be, I have >>To upgrade every 18 months or whatever it is. Yeah. It's, it's alive. Yeah. >>How about Musk yesterday? I mean, he's always a crowd pleaser. First of all, my kids love him. He's crazy. >>I mean, he is amazing. >>He's he's, he's a builder. He takes no prisoners. He's just, you know what? My goal was not to go bankrupt. That's what he said a couple of years ago, which >>Was brilliant because everybody's gone bankrupt in that business. And he's just, you know, and he's just like, look it, we're here to >>Just want to chip away at it. And we're just going to keep striving, not making up excuses. He takes the failures, he takes the face plant. He gets back up and he keeps going. He's focused on buildings, >>Some one thing, right? He's not focused on everything. He's focused on getting to Mars. And I think that's what I like to compare myself to Elon Musk, right? Not that I'm building rockets or getting to Mars, but that the hard problem that I'm solving is getting telco to the public cloud. And that's going to take a decade. It might've been accelerated because of COVID, it might've taken 20 years and now it might take 10, but you look at what he does and that guy, he has, he has haters on Twitter there. Pew, pew always like throwing their bars, but he's like, I got, I got my rocket company. I got my, you know, communication and space company. We're going to need the bore holes, the boring company. I need batteries. I got my Tesla company. And so this guy focuses. He's got >>Some haters, but he's got a lot more lovers on his other side because people might not know this, but he fires entire PR department because he's like, I don't need PR. I'm just going to go do my own, his own PR actually the crypto, stuff's always fun. Goats, coins, >>Always a laugh. >>And it's just more of like playing watch this. >>I said, I live was interesting thing he did, but I think he illustrates the point of a new generation. And I think my young kids, not young, they're in their twenties. Now they look at him and they say, that's aspirational because he's building and he's not, he's focused on that one thing. And again, the growth that you mentioned telco to the cloud, thinking back to that, I want to ask you this growth question. It used to be like, okay, growth was there, people expand itself? Howard's networks were networks. Now it seems like the growth of telco for telco is going into what's the edge and all the open ranch stuff, which means that we need more infrastructure. Yeah. We need more stuff. There's more and more needed and there's grow. Find them. >>What's your, what's your, I think we need more software. Right. Software eats the world. Right. And it's, I mean, there was a lot of hardware to Trump in telco and it's just gonna keep eating it. Um, and that's just gonna accelerate. I think that's where tacos needs to start to build that muscle. They don't have great software capability. They don't have public cloud building capability. And so that's a big upskilling. That's a new hiring. And I think it's a, it's an executive conversation. It's not just an it thing or just a marketing thing. I got to chime >>In here for a second because there are a lot of parallels with how the data center transition has occurred. And what's happening here. We talk about all the time. It was a mainframe, et cetera. There are parallels. Yeah. And what happened when the data center went to software defined a whole bunch of hardware was allocated to run all the software defined stuff. It wasn't built for that. But the cloud, what you guys are doing with Togi and taken advantage of AWS is nitro and graviton. That's built to two V software defined. Correct. And so the telcos are going to go through the same thing. If they just virtualized, they're going to say, oh wow, we're wasting 30% of our power, our compute power on just supporting all this software defined stuff, because it wasn't built for that. But the cloud is built for that. And that is going to be a huge >>Difference. And I keep trying to make this distinction. And I think people in telcos still don't get this about the public cloud. They think of it as a place. It's a place to run a workload. And that tells me, they think of it as infrastructure. I think of it as servers still like, well, I'm going to run it in my closet. Or AWS has closet. I'm like, I was just having a conversation about this with a senior person from DSMA. I'm like, it's actually about the software. That's there. It's about the databases they're building and the analytics and the AI and ML that they let you buy by the minutes by the API call. And that is my, like, you need to think about that. Cause it's mindblowing, it's a totally different way. And you're >>Totally right. And just spend it again, give you props on this. I've had many one on with Andy gesture the past seven years, not for exclusives, but over the years it's been consistent. Each platform lifting and shift. Wasn't the end game. Okay. Replatforming in the cloud. Certainly a great advantage, a great starting point. It was the refactoring. And that's why you see Amazon web services. For instance, keep adding more services because that's the model. They keep offering more goodness so that the businesses could refactor, not just replatform. Yeah. And that's what you're getting. I think with the AI and machine learning where you start getting into these new use cases, but why couldn't do that before? Right? Right. This is going to be a huge >>Game changer. Forest Brazil, right? A great guy. A cloud guru wrote a great blog called a lift and shift is a ticking time bomb. And it's a great start to get your stuff over there. It forces your team to start to interact with like an AWS or GCP in a real way. Like now they, they gotta use it. You take it away. And I'm like, but once you move it, you got to read factor. You got to rewrite. And then that's why it's a ticking time bomb. You got to get, move it over and get you're going >>To rush him. Dr. Digital revolution of you are one. You got it here, tells the VR. And this has been a great experience for the cube. As we get back to business with real life events and virtual, the folks who couldn't make it here, Barcelona is still a great city, obviously a great place to come and events. We'll be back. There'll be hybrid. There'll be different. Certainly the queue we'll wait doubling down, but, but we've got a great video. I want to share with the group, the Barcelona and cloud city. This is a montage of what it's like here and a little experiential video. So they get away and run that video. >>Hi, I'm Katie Goldfinch here in Barcelona for an action packed day two at telco DER's cloud setting this morning, the focus was firmly on Dr. And her MWC keynote, which told telco exactly in no uncertain terms that now is the time to act on embracing public clouds back in cloud city content ruled the day with both the cube and cloud city life stages, hosting public cloud, thought-leaders covering a wide range of topics to educate and inspire attendees and in the beautiful space of cloud city, the excitement grew throughout the day. As we streamed MW cities, exclusive keynotes from Elon Musk and preparations got underway for tonight. Star performer, Jon Bon Jovi. Wow. What an amazing day from groundbreaking keynotes into space and back to a star studded performance. Don't forget. You can catch up on anything you missed and join us for the rest of the week@cloudcitydottelcor.com or following hashtag cloud Ceci. >>Yeah, that was a great look at what's going on here in cloud city. This next video, Dr. You're going to love this. Your keynote highlights and some Bon Jovi highlights, which by the way, was the most epic thing people were packed. It was excited. It was packed. It had the security flicking, peoples counting. All the people, people are standing back. All the people from their booths are all coming in to watch. He was pumped. Let's take a look at this awesome highlight video from yesterday isolation. >>Dave, that was a highlight reel yesterday. Um, VR has got some action on stage, great messaging, um, revolution, digital revolution. >>You know your comment about how you think like Elon Musk, that's an inspiration from it. I mean, what a lot of people don't know is when you look at autonomous vehicles, remember you're driving down Palo Alto, you see one of those LIDAR things he's doing away with lidars too expensive. It's $7,000. He's taken it with cheap cameras and software down to a couple hundred bucks per vehicle. That's the way he thinks. And you're doing the same thing to telco. >>I am, I am. I'm trying to change ELCA, right? I mean, he's changing the world. He might be one of the most important humans on earth right now. I don't think I'm exactly that level, but I'm trying to become a really important person to taco. We had this great message. I think it's going to help tacos get better businesses. And I think it's a great idea. >>The folks out there watching, what is that big change you're going to drive down this cloud city street, main street of cloud city and just all about cloud. Because public clouds here, it's going to become hybrid dynamics, operating models, and changing. What is the key message that you'd like to send me? >>I think all of the software in telco needs to be written. And that's how many millions of lines of code is that. And it's going to shrunk down and put out on the public cloud and rewritten using the software Legos of the public cloud. That is a big undertaking. No, one's working on it. I'm working on it. I'm doing it. >>Let's go do it. Let's do it. If you look out a couple of years, what would be a successful? What does checkmate look like in this >>I'm winning hashtag. I mean, I think it takes, again, it takes singular focus like Elon Musk on Mars. So when these to singularly focused on getting to the public cloud and you can't sit there and protect your old business models, your, you know, uh, CR revenue, if you're Amdocs, right? Give that up. When they start to give up their CR revenue to focus on public cloud, then they'll be okay. There's there's a worthy adversary out there really. >>I mean the late clay Christianson had all the same things. Innovator's dilemma. You just get stuck here. What do you do? You kill your own debris. You eat your own to bring in the new, I mean, all these things are going on and this is, this is a huge test. >>Have to be willing to burn some boats. >>I think it's transparency, simplicity, and the consumer saying, Hey, this is a great experience. That's the thing. Yeah. Right. And that's what we're going to see. Consumers >>Love their telco. I can't wait for that. I want to love my Netflix. Yes, exactly. >>We'd love you because you've got a bold vision. You putting it out there and you're driving it. You're walking the talk. Congratulations. And again, cloud cities, a home run. Great success. Thanks for >>Having me. It's always super fun. >>Okay. Cubes coverage here. And remember we're here getting all the action and it's all going to go online after the synchronous consumption. But right now it's all about mobile world Congress and cloud city. This is the action. And of course, Adam in cloud city studio was waiting for us and you're going to take it from here.

>> Data is at the heart of transformation and the change every company needs to succeed, but it takes more than new technology. It's about teams, talent and cultural change. Empowering everyone on the front lines to make decisions all at the speed of digital. The transformation starts with you. It's time to lead the way it's time for Thought leaders. >> Welcome to "Thought Leaders" a digital event brought to you by ThoughtSpot. My name is Dave Vellante. The purpose of this day is to bring industry leaders and experts together to really try and understand the important issues around digital transformation. We have an amazing lineup of speakers and our goal is to provide you with some best practices that you can bring back and apply to your organization. Look, data is plentiful, but insights are not. ThoughtSpot is disrupting analytics by using search and machine intelligence to simplify data analysis and really empower anyone with fast access to relevant data. But in the last 150 days, we've had more questions than answers. Creating an organization that puts data and insights at their core requires not only modern technology, but leadership, a mindset and a culture that people often refer to as data-driven. What does that mean? How can we equip our teams with data and fast access to quality information that can turn insights into action. And today we're going to hear from experienced leaders who are transforming their organizations with data, insights and creating digital first cultures. But before we introduce our speakers, I'm joined today by two of my co-hosts from ThoughtSpot first chief data strategy officer at the ThoughtSpot is Cindi Howson. Cindi is an analytics and BI expert with 20 plus years experience and the author of "Successful Business Intelligence "Unlock the Value of BI & Big Data." Cindi was previously the lead analyst at Gartner for the data and analytics magic quadrant. And early last year, she joined ThoughtSpot to help CDOs and their teams understand how best to leverage analytics and AI for digital transformation. Cindi, great to see you welcome to the show. >> Thank you, Dave. Nice to join you virtually. >> Now our second cohost and friend of the cube is ThoughtSpot CEO Sudheesh Nair Hello, Sudheesh how are you doing today? >> I'm well Dave, it's good to talk to you again. >> It's great to see you thanks so much for being here. Now Sudheesh please share with us why this discussion is so important to your customers and of course, to our audience and what they're going to learn today. (upbeat music) >> Thanks, Dave. I wish you were there to introduce me into every room and that I walk into because you have such an amazing way of doing it. Makes me feel all so good. Look, since we have all been cooped up in our homes, I know that the vendors like us, we have amped up our sort of effort to reach out to you with invites for events like this. So we are getting very more invites for events like this than ever before. So when we started planning for this, we had three clear goals that we wanted to accomplish. And our first one that when you finish this and walk away, we want to make sure that you don't feel like it was a waste of time. We want to make sure that we value your time and this is going to be useful. Number two, we want to put you in touch with industry leaders and thought leaders, generally good people that you want to hang around with long after this event is over. And number three, as we plan through this, we are living through these difficult times. We want an event to be this event, to be more of an uplifting and inspiring event too. Now, the challenge is how do you do that with the team being change agents because change and as much as we romanticize it, it is not one of those uplifting things that everyone wants to do, or like to do. The way I think of it sort of like a, if you've ever done bungee jumping and it's like standing on the edges waiting to make that one more step, all you have to do is take that one step and gravity will do the rest, but that is the hardest step to take. Change requires a lot of courage. And when we are talking about data and analytics, which is already like such a hard topic, not necessarily an uplifting and positive conversation in most businesses, it is somewhat scary. Change becomes all the more difficult. Ultimately change requires courage. Courage to first of all challenge the status quo. People sometimes are afraid to challenge the status quo because they are thinking that maybe I don't have the power to make the change that the company needs. Sometimes they feel like I don't have the skills. Sometimes they may feel that I'm probably not the right person do it. Or sometimes the lack of courage manifest itself as the inability to sort of break the silos that are formed within the organizations, when it comes to data and insights that you talked about. There are people in the company who are going to hog the data because they know how to manage the data, how to inquire and extract. They know how to speak data. They have the skills to do that. But they are not the group of people who have sort of the knowledge, the experience of the business to ask the right questions off the data. So there is the silo of people with the answers, and there is a silo of people with the questions. And there is gap. This sort of silos are standing in the way of making that necessary change that we all know the business needs. And the last change to sort of bring an external force sometimes. It could be a tool. It could be a platform, it could be a person, it could be a process, but sometimes no matter how big the company is or how small the company is, you may need to bring some external stimuli to start the domino of the positive changes that are necessary. The group of people that we are brought in, the four people, including Cindi, that you will hear from today are really good at practically telling you how to make that step, how to step off that edge, how to dress the rope, that you will be safe and you're going to have fun. You will have that exhilarating feeling of jumping, for a bungee jump. All four of them are exceptional, but my honor is to introduce Michelle and she's our first speaker. Michelle, I am very happy after watching her presentation and reading our bio, that there are no country vital worldwide competition for cool patterns, because she will beat all of us because when her children were small, they were probably into Harry Potter and Disney. She was managing a business and leading change there. And then as her kids grew up and got to that age where they like football and NFL, guess what? She's the CIO of NFL. What a cool mom? I am extremely excited to see what she's going to talk about. I've seen the slides, tons of amazing pictures. I'm looking to see the context behind it. I'm very thrilled to make the acquaintance of Michelle and looking forward to her talk next. Welcome Michelle, it's over to you. (upbeat music) >> I'm delighted to be with you all today to talk about thought leadership. And I'm so excited that you asked me to join you because today I get to be a quarterback. I always wanted to be one. And I thought this is about as close as I'm ever going to get. So I want to talk to you about quarterbacking, our digital revolution using insights data. And of course, as you said, leadership, first a little bit about myself, a little background, as I said, I always wanted to play football. And this is something that I wanted to do since I was a child. But when I grew up, girls didn't get to play football. I'm so happy that that's changing and girls are now doing all kinds of things that they didn't get to do before. Just this past weekend on an NFL field, we had a female coach on two sidelines and a female official on the field. I'm a lifelong fan and student of the game of football. I grew up in the South. You can tell from the accent. And in the South football is like a religion and you pick sides. I chose Auburn university working in the athletic department. So I'm Testament to you can start the journey can be long. It took me many, many years to make it into professional sports. I graduated in 1987 and my little brother, well, not actually not so little. He played offensive line for the Alabama Crimson Tide. And for those of you who know SCC football, you know this is a really big rivalry. And when you choose sides, your family is divided. So it's kind of fun for me to always tell the story that my dad knew his kid would make it to the NFL. He just bet on the wrong one. My career has been about bringing people together for memorable moments at some of America's most iconic brands, delivering memories and amazing experiences that delight from Universal Studios, Disney to my current position as CIO of the NFL. In this job I'm very privileged to have the opportunity to work with the team that gets to bring America's game to millions of people around the world. Often I'm asked to talk about how to create amazing experiences for fans, guests, or customers. But today I really wanted to focus on something different and talk to you about being behind the scenes and backstage because behind every event, every game, every awesome moment is execution, precise, repeatable execution. And most of my career has been behind the scenes doing just that assembling teams to execute these plans. And the key way that companies operate at these exceptional levels is making good decisions, the right decisions at the right time and based upon data so that you can translate the data into intelligence and be a data-driven culture. Using data and intelligence is an important way that world-class companies do differentiate themselves. And it's the lifeblood of collaboration and innovation. Teams that are working on delivering these kinds of world casts experiences are often seeking out and leveraging next-generation technologies and finding new ways to work. I've been fortunate to work across three decades of emerging experiences, which each required emerging technologies to execute a little bit first about Disney in the 90s, I was at Disney leading a project called destination Disney, which it's a data project. It was a data project, but it was CRM before CRM was even cool. And then certainly before anything like a data-driven culture was ever brought up, but way back then we were creating a digital backbone that enabled many technologies for the things that you see today, like the magic band, Disney's magical express. My career at Disney began in finance, but Disney was very good about rotating you around. And it was during one of these rotations that I became very passionate about data. I kind of became a pain in the butt to the IT team asking for data more and more data. And I learned that all of that valuable data was locked up in our systems. All of our point of sales systems, our reservation systems, our operation systems. And so I became a shadow IT person in marketing, ultimately leading to moving into IT. And I haven't looked back since. In the early two thousands, I was at universal studios theme park as their CIO preparing for and launching "The Wizarding World of Harry Potter" bringing one of history's most memorable characters to life required many new technologies and a lot of data. Our data and technologies were embedded into the rides and attractions. I mean, how do you really think a wan selects you at a wan shop. As today at the NFL? I am constantly challenged to do leading edge technologies, using things like sensors, AI, machine learning, and all new communication strategies and using data to drive everything from player performance, contracts, to where we build new stadiums and hold events with this year being the most challenging yet rewarding year in my career at the NFL. In the middle of a global pandemic, the way we are executing on our season is leveraging data from contract tracing devices joined with testing data, talk about data, actually enabling your business without it w wouldn't be having a season right now. I'm also on the board of directors of two public companies where data and collaboration are paramount. First RingCentral, it's a cloud based unified communications platform and collaboration with video message and phone all in one solution in the cloud and Quotient technologies whose product is actually data. The tagline at Quotient is the result in knowing I think that's really important because not all of us are data companies where your product is actually data, but we should operate more like your product is data. I'd also like to talk to you about four areas of things to think about as thought leaders in your companies. First just hit on it is change how to be a champion and a driver of change. Second, how do you use data to drive performance for your company and measure performance of your company? Third, how companies now require intense collaboration to operate. And finally, how much of this is accomplished through solid data driven decisions. First let's hit on change. I mean, it's evident today more than ever, that we are in an environment of extreme change. I mean, we've all been at this for years and as technologists we've known it, believed it, lived it and thankfully for the most part, knock on what we were prepared for it. But this year everyone's cheese was moved. All the people in the back rooms, IT, data architects and others were suddenly called to the forefront because a global pandemic has turned out to be the thing that is driving intense change in how people work and analyze their business. On March 13th, we closed our office at the NFL in the middle of preparing for one of our biggest events, our kickoff event, the 2020 draft. We went from planning a large event in Las Vegas under the bright lights, red carpet stage to smaller events in club facilities. And then ultimately to one where everyone coaches GM's prospects and even our commissioner were at home in their basements. And we only had a few weeks to figure it out. I found myself for the first time being in the live broadcast event space, talking about bungee jumping. This is really what it felt like. It was one in which no one felt comfortable because it had not been done before. But leading through this, I stepped up, but it was very scary. It was certainly very risky, but it ended up being all so rewarding when we did it. And as a result of this, some things will change forever. Second, managing performance. I mean, data should inform how you're doing and how to get your company to perform at it's level. Highest level. As an example, the NFL has always measured performance, obviously, and it is one of the purest examples of how performance directly impacts outcome. I mean, you can see performance on the field. You can see points being scored in stats, and you immediately know that impact those with the best stats usually when the games. The NFL has always recorded stats since the beginning of time here at the NFL a little this year is our 101 year and athletes ultimate success as a player has also always been greatly impacted by his stats. But what has changed for us is both how much more we can measure and the immediacy with which it can be measured. And I'm sure in your business it's the same. The amount of data you must have has got to have quadrupled and how fast you need it and how quickly you need to analyze it is so important. And it's very important to break the silos between the keys, to the data and the use of the data. Our next generation stats platform is taking data to a next level. It's powered by Amazon web services. And we gathered this data real-time from sensors that are on players' bodies. We gather it in real time, analyze it, display it online and on broadcast. And of course it's used to prepare week to week in addition to what is a normal coaching plan would be. We can now analyze, visualize route patterns, speed match-ups, et cetera. So much faster than ever before. We're continuing to roll out sensors too that will gather more and more information about a player's performance as it relates to their health and safety. The third trend is really, I think it's a big part of what we're feeling today and that is intense collaboration. And just for sort of historical purposes, it's important to think about for those of you that are IT professionals and developers, more than 10 years ago, agile practices began sweeping companies where small teams would work together rapidly in a very flexible, adaptive, and innovative way. And it proved to be transformational. However, today, of course, that is no longer just small teams, the next big wave of change. And we've seen it through this pandemic is that it's the whole enterprise that must collaborate and be agile. If I look back on my career, when I was at Disney, we owned everything 100%. We made a decision, we implemented it. We were a collaborative culture, but it was much easier to push change because you own the whole decision. If there was buy-in from the top down, you've got the people from the bottom up to do it and you executed. At Universal we were a joint venture. Our attractions and entertainment was licensed. Our hotels were owned and managed by other third parties. So influence and collaboration and how to share across companies became very important. And now here I am at the NFL and even the bigger ecosystem, we have 32 clubs that are all separate businesses. 31 different stadiums that are owned by a variety of people. We have licensees, we have sponsors, we have broadcast partners. So it seems that as my career has evolved, centralized control has gotten less and less and has been replaced by intense collaboration, not only within your own company, but across companies. The ability to work in a collaborative way across businesses and even other companies that has been a big key to my success in my career. I believe this whole vertical integration and big top-down decision-making is going by the wayside in favor of ecosystems that require cooperation yet competition to co-exist. I mean, the NFL is a great example of what we call co-op petition, which is cooperation and competition. We're in competition with each other, but we cooperate to make the company the best it can be. And at the heart of these items really are data driven decisions and culture. Data on its own isn't good enough. You must be able to turn it to insights. Partnerships between technology teams who usually hold the keys to the raw data and business units who have the knowledge to build the right decision models is key. If you're not already involved in this linkage, you should be. Data mining isn't new for sure. The availability of data is quadrupling and it's everywhere. How do you know what to even look at? How do you know where to begin? How do you know what questions to ask it's by using the tools that are available for visualization and analytics and knitting together strategies of the company. So it begins with first of all, making sure you do understand the strategy of the company. So in closing, just to wrap up a bit, many of you joined today, looking for thought leadership on how to be a change agent, a change champion, and how to lead through transformation. Some final thoughts are be brave and drive. Don't do the ride along program. It's very important to drive. Driving can be high risk, but it's also high reward. Embracing the uncertainty of what will happen is how you become brave. Get more and more comfortable with uncertainty, be calm and let data be your map on your journey. Thanks. >> Michelle, tank you so much. So you and I share a love of data and a love of football. You said you want to be the quarterback. I'm more an old line person. (Michelle and Cindi laughing) >> Well, then I can do my job without you. >> Great. And I'm getting the feeling now, Sudheesh is talking about bungee jumping. My vote is when we're past this pandemic, we both take them to the Delaware water gap and we do the cliff jumping. >> That sounds good, I'll watch. >> Yeah, you'll watch, okay. So Michelle, you have so many stakeholders when you're trying to prioritize the different voices. You have the players, you have the owners, you have the league, as you mentioned, the broadcasters, your partners here and football mamas like myself. How do you prioritize when there's so many different stakeholders that you need to satisfy? >> I think balancing across stakeholders starts with, aligning on a mission. And if you spend a lot of time understanding where everyone's coming from, and you can find the common thread that ties them all together, you sort of do get them to naturally prioritize their work. And I think that's very important. So for us, at the NFL and even at Disney, it was our core values and our core purpose, is so well known and when anything challenges that we're able to sort of lay that out. But as a change agent, you have to be very empathetic. And I would say empathy is probably your strongest skill if you're a change agent. And that means listening to every single stakeholder, even when they're yelling at you, even when they're telling you your technology doesn't work and you know that it's user error, or even when someone is just emotional about what's happening to them and that they're not comfortable with it. So I think being empathetic and having a mission and understanding it is sort of how I prioritize and balance. >> Yeah, empathy, a very popular word this year. I can imagine those coaches and owners yelling. So, thank you for your leadership here. So Michelle, I look forward to discussing this more with our other customers and disruptors joining us in a little bit. (upbeat music) So we're going to take a hard pivot now and go from football to Chernobyl. Chernobyl what went wrong? 1986, as the reactors were melting down, they had the data to say, this is going to be catastrophic. And yet the culture said, "no, we're perfect, hide it. "Don't dare tell anyone." Which meant they went ahead and had celebrations in Kiev. Even though that increased the exposure, the additional thousands getting cancer and 20,000 years before the ground around there can even be inhabited again, this is how powerful and detrimental a negative culture, a culture that is unable to confront the brutal facts that hides data. This is what we have to contend with. And this is why I want you to focus on having, fostering a data-driven culture. I don't want you to be a laggard. I want you to be a leader in using data to drive your digital transformation. So I'll talk about culture and technology. Is it really two sides of the same coin, real-world impacts and then some best practices you can use to and innovate your culture. Now, oftentimes I would talk about culture and I talk about technology. And recently a CDO said to me, "Cindi, I actually think this is two sides "of the same coin. "One reflects the other." What do you think? Let me walk you through this. So let's take a laggard. What does the technology look like? Is it based on 1990s BI and reporting largely parametrized reports, on premises data, warehouses, or not even that operational reports at best one enterprise data warehouse, very slow moving and collaboration is only email. What does that culture tell you? Maybe there's a lack of leadership to change, to do the hard work that Sudheesh referred to, or is there also a culture of fear, afraid of failure, resistance to change complacency. And sometimes that complacency it's not because people are lazy. It's because they've been so beaten down every time a new idea is presented. It's like, no we're measured on least cost to serve. So politics and distrust, whether it's between business and IT or individual stakeholders is the norm. So data is hoarded. Let's contrast that with a leader, a data and analytics leader, what is their technology look like? Augmented analytics search and AI driven insights, not on premises, but in the cloud and maybe multiple clouds. And the data is not in one place, but it's in a data Lake and in a data warehouse, a logical data warehouse. The collaboration is being a newer methods, whether it's Slack or teams allowing for that real time decisioning or investigating a particular data point. So what is the culture in the leaders? It's transparent and trust. There is a trust that data will not be used to punish that there is an ability to confront the bad news. It's innovation, valuing innovation in pursuit of the company goals, whether it's the best fan experience and player safety in the NFL or best serving your customers. It's innovative and collaborative. There's none of this. Oh, well, I didn't invent that. I'm not going to look at that. There's still pride of ownership, but it's collaborating to get to a better place faster. And people feel empowered to present new ideas to fail fast, and they're energized knowing that they're using the best technology and innovating at the pace that business requires. So data is democratized. And democratized, not just for power users or analysts, but really at the point of impact what we like to call the new decision-makers or really the frontline workers. So Harvard business review partnered with us to develop this study to say, just how important is this? We've been working at BI and analytics as an industry for more than 20 years. Why is it not at the front lines? Whether it's a doctor, a nurse, a coach, a supply chain manager, a warehouse manager, a financial services advisor. Everyone said that if our 87% said, they would be more successful if frontline workers were empowered with data driven insights, but they recognize they need new technology to be able to do that. It's not about learning hard tools. The sad reality, only 20% of organizations are actually doing this. These are the data-driven leaders. So this is the culture in technology. How did we get here? It's because state-of-the-art keeps changing. So the first-generation BI and analytics platforms were deployed on premises on small datasets, really just taking data out of ERP systems that were also on premises. And state-of-the-art was maybe getting a management report, an operational report. Over time visual-based data discovery vendors disrupted these traditional BI vendors, empowering now analysts to create visualizations with the flexibility on a desktop, sometimes larger data, sometimes coming from a data warehouse. The current state of the art though, Gartner calls it augmented analytics at ThoughtSpot, we call it search and AI driven analytics. And this was pioneered for large scale datasets, whether it's on premises or leveraging the cloud data warehouses. And I think this is an important point. Oftentimes you, the data and analytics leaders will look at these two components separately, but you have to look at the BI and analytics tier in lockstep with your data architectures to really get to the granular insights and to leverage the capabilities of AI. Now, if you've never seen ThoughtSpot, I'll just show you what this looks like. Instead of somebody hard coding, a report it's typing in search keywords and very robust keywords contains rank top bottom, getting to a visual visualization that then can be pinned to an existing Pin board that might also contain insights generated by an AI engine. So it's easy enough for that new decision maker, the business user, the non analyst to create themselves. Modernizing the data and analytics portfolio is hard because the pace of change has accelerated. You use to be able to create an investment place a bet for maybe 10 years, a few years ago, that time horizon was five years, now it's maybe three years and the time to maturity has also accelerated. So you have these different components, the search and AI tier, the data science tier, data preparation and virtualization. But I would also say equally important is the cloud data warehouse and pay attention to how well these analytics tools can unlock the value in these cloud data warehouses. So ThoughtSpot was the first to market with search and AI driven insights. Competitors have followed suit, but be careful if you look at products like power BI or SAP analytics cloud, they might demo well, but do they let you get to all the data without moving it in products like Snowflake, Amazon Redshift, or Azure synapse or Google big query, they do not. They require you to move it into a smaller in memory engine. So it's important how well these new products inter operate. the pace of change, its acceleration Gartner recently predicted that by 2022, 65% of analytical queries will be generated using search or NLP or even AI. And that is roughly three times the prediction they had just a couple years ago. So let's talk about the real world impact of culture. And if you read any of my books or used any of the maturity models out there, whether the Gartner IT score that I worked on, or the data warehousing Institute also has the money surety model. We talk about these five pillars to really become data-driven. As Michelle, I spoke about it's focusing on the business outcomes, leveraging all the data, including new data sources, it's the talent, the people, the technology, and also the processes. And often when I would talk about the people and the talent, I would lump the culture as part of that. But in the last year, as I've traveled the world and done these digital events for Thought leaders, you have told me now culture is absolutely so important. And so we've pulled it out as a separate pillar. And in fact, in polls that we've done in these events, look at how much more important culture is as a barrier to becoming data-driven it's three times as important as any of these other pillars. That's how critical it is. And let's take an example of where you can have great data, but if you don't have the right culture, there's devastating impacts. And I will say, I have been a loyal customer of Wells Fargo for more than 20 years. But look at what happened in the face of negative news with data, it said, "hey, we're not doing good cross selling, "customers do not have both a checking account "and a credit card and a savings account and a mortgage." They opened fake accounts facing billions in fines, change in leadership that even the CEO attributed to a toxic sales culture, and they're trying to fix this. But even recently there's been additional employee backlash saying the culture has not changed. Let's contrast that with some positive examples, Medtronic, a worldwide company in 150 countries around the world. They may not be a household name to you, but if you have a loved one or yourself, you have a pacemaker, spinal implant diabetes, you know this brand. And at the start of COVID when they knew their business would be slowing down, because hospitals would only be able to take care of COVID patients. They took the bold move of making their IP for ventilators publicly available. That is the power of a positive culture. Or Verizon, a major telecom organization looking at late payments of their customers. And even though the U.S federal government said, "well, you can't turn them off. They said, "we'll extend that even beyond "the mandated guidelines." And facing a slow down in the business because of the tough economy, they said, you know what? "We will spend the time up skilling our people, "giving them the time to learn more "about the future of work, the skills and data "and analytics," for 20,000 of their employees, rather than furloughing them. That is the power of a positive culture. So how can you transform your culture to the best in class? I'll give you three suggestions, bring in a change agent, identify the relevance, or I like to call it WIFM and organize for collaboration. So the CDO, whatever your title is, chief analytics officer, chief digital officer, you are the most important change agent. And this is where you will hear that oftentimes a change agent has to come from outside the organization. So this is where, for example, in Europe, you have the CDO of Just Eat a takeout food delivery organization coming from the airline industry or in Australia, National Australian bank, taking a CDO within the same sector from TD bank going to NAB. So these change agents come in disrupt. It's a hard job. As one of you said to me, it often feels like Sisyphus. I make one step forward and I get knocked down again. I get pushed back. It is not for the faint of heart, but it's the most important part of your job. The other thing I'll talk about is WIFM. What is in it for me? And this is really about understanding the motivation, the relevance that data has for everyone on the frontline, as well as those analysts, as well as the executives. So if we're talking about players in the NFL, they want to perform better and they want to stay safe. That is why data matters to them. If we're talking about financial services, this may be a wealth management advisor. Okay we could say commissions, but it's really helping people have their dreams come true, whether it's putting their children through college or being able to retire without having to work multiple jobs still into your 70s or 80s for the teachers, teachers, you ask them about data. They'll say we don't, we don't need that. I care about the student. So if you can use data to help a student perform better, that is WIFM. And sometimes we spend so much time talking the technology, we forget what is the value we're trying to deliver with it. And we forget the impact on the people that it does require change. In fact, the Harvard business review study found that 44% said lack of change management is the biggest barrier to leveraging both new technology, but also being empowered to act on those data-driven insights. The third point organize for collaboration. This does require diversity of thought, but also bringing the technology, the data and the business people together. Now there's not a single one size fits all model for data and analytics. At one point in time, even having a BICC, a BI competency center was considered state-of-the-art. Now for the biggest impact what I recommend is that you have a federated model centralized for economies of scale. That could be the common data, but then in bed, these evangelists, these analysts of the future within every business unit, every functional domain. And as you see this top bar, all models are possible, but the hybrid model has the most impact, the most leaders. So as we look ahead to the months ahead, to the year ahead an exciting time, because data is helping organizations better navigate a tough economy, lock in the customer loyalty. And I look forward to seeing how you foster that culture that's collaborative with empathy and bring the best of technology, leveraging the cloud, all your data. So thank you for joining us at Thought Leaders. And next I'm pleased to introduce our first change agent, Tom Mazzaferro chief data officer of Western union. And before joining Western union, Tom made his Mark at HSBC and JPMorgan Chase spearheading digital innovation in technology, operations, risk compliance, and retail banking. Tom, thank you so much for joining us today. (upbeat music) >> Very happy to be here and looking forward to talking to all of you today. So as we look to move organizations to a data-driven, capability into the future, there is a lot that needs to be done on the data side, but also how does data connect and enable different business teams and technology teams into the future. As you look across, our data ecosystems and our platforms and how we modernize that to the cloud in the future, it all needs to basically work together, right? To really be able to drive and over the shift from a data standpoint, into the future, that includes being able to have the right information with the right quality of data, at the right time to drive informed business decisions, to drive the business forward. As part of that, we actually have partnered with ThoughtSpot, to actually bring in the technology to help us drive that as part of that partnership. And it's how we've looked to integrate it into our overall business as a whole we've looked at how do we make sure that our business and our professional lives right, are enabled in the same ways as our personal lives. So for example, in your personal lives, when you want to go and find something out, what do you do? You go onto google.com or you go on to Bing we go onto Yahoo and you search for what you want search to find and answer. ThoughtSpot for us as the same thing, but in the business world. So using ThoughtSpot and other AI capability it's allowed us to actually, enable our overall business teams in our company to actually have our information at our fingertips. So rather than having to go and talk to someone or an engineer to go pull information or pull data, we actually can have the end-users or the business executives, right. Search for what they need, what they want at the exact time that action need it to go and drive the business forward. This is truly one of those transformational things that we've put in place. On top of that, we are on the journey to modernize our larger ecosystem as a whole. That includes modernizing our underlying data warehouses, our technology, or our Eloqua environments. And as we move that, we've actually picked two of our cloud providers going to AWS and GCP. We've also adopted Snowflake to really drive and to organize our information and our data then drive these new solutions and capabilities forward. So they portion of us though is culture. So how do we engage with the business teams and bring the IT teams together to really drive these holistic end to end solutions and capabilities to really support the actual business into the future? That's one of the keys here, as we look to modernize and to really enhance our organizations to become data-driven, this is the key. If you can really start to provide answers to business questions before they're even being asked and to predict based upon different economic trends or different trends in your business, what does this is maybe be made and actually provide those answers to the business teams before they're even asking for it, that is really becoming a data-driven organization. And as part of that, it's really then enables the business to act quickly and take advantage of opportunities as they come in based upon, industries based upon markets, based upon products, solutions, or partnerships into the future. These are really some of the keys that become crucial as you move forward, right, into this new age, especially with COVID. With COVID now taking place across the world, right? Many of these markets, many of these digital transformations are accelerating and are changing rapidly to accommodate and to support customers in these very difficult times, as part of that, you need to make sure you have the right underlying foundation ecosystems and solutions to really drive those capabilities and those solutions forward. As we go through this journey, both of my career, but also each of your careers into the future, right? It also needs to evolve, right? Technology has changed so drastically in the last 10 years, and that change is only accelerating. So as part of that, you have to make sure that you stay up to speed, up to date with new technology changes both on the platform standpoint tools, but also what do our customers want? What do our customers need and how do we then service them with our information, with our data, with our platform and with our products and our services to meet those needs and to really support and service those customers into the future. This is all around becoming a more data organization such as how do you use your data to support the current business lines, but how do you actually use your information, your data to actually put a better support your customers, better support your business, better support your employees, your operations teams, and so forth, and really creating that full integration in that ecosystem is really when you start to get large dividends from this investments into the future. But that being said, hope you enjoy the segment on how to become and how to drive it data driven organization. And, looking forward to talking to you again soon. Thank you. >> Tom that was great thanks so much. Now I'm going to have to brag on you for a second as a change agent you've come in disrupted and how long have you been at Western union? >> Only nine months, so just started this year, but, doing some great opportunities and great changes. And we have a lot more to go, but, we're really driving things forward in partnership with our business teams and our colleagues to support those customers going forward. >> Tom, thank you so much. That was wonderful. And now I'm excited to introduce you to Gustavo Canton, a change agent that I've had the pleasure of working with meeting in Europe, and he is a serial change agent, most recently with Schneider electric, but even going back to Sam's clubs, Gustavo welcome. (upbeat music) >> So, hey everyone, my name is Gustavo Canton and thank you so much, Cindi, for the intro, as you mentioned, doing transformations is high effort, high reward situation. I have empowered many transformations and I have led many transformations. And what I can tell you is that it's really hard to predict the future, but if you have a North star and where you're going, the one thing that I want you to take away from this discussion today is that you need to be bold to evolve. And so in today, I'm going to be talking about culture and data, and I'm going to break this down in four areas. How do we get started barriers or opportunities as I see it, the value of AI, and also, how do you communicate, especially now in the workforce of today with so many different generations, you need to make sure that you are communicating in ways that are non-traditional sometimes. And so how do we get started? So I think the answer to that is you have to start for you yourself as a leader and stay tuned. And by that, I mean, you need to understand not only what is happening in your function or your field, but you have to be varying into what is happening in society, socioeconomically speaking wellbeing. The common example is a great example. And for me personally, it's an opportunity because the one core value that I have is well-being, I believe that for human potential, for customers and communities to grow wellbeing should be at the center of every decision. And as somebody mentioned is great to be, stay in tune and have the skillset and the courage. But for me personally, to be honest, to have this courage is not about not being afraid. You're always afraid when you're making big changes when you're swimming upstream, but what gives me the courage is the empathy part. Like I think empathy is a huge component because every time I go into an organization or a function, I try to listen very attentively to the needs of the business and what the leaders are trying to do. What I do it thinking about the mission of how do I make change for the bigger, workforce? for the bigger good. Despite this fact that this might have a perhaps implication on my own self-interest in my career, right? Because you have to have that courage sometimes to make choices that I know we'll see in politically speaking, what are the right thing to do? And you have to push through it. And you have to push through it. So the bottom line for me is that I don't think they're transforming fast enough. And the reality is I speak with a lot of leaders and we have seen stories in the past. And what they show is that if you look at the four main barriers that are basically keeping us behind budget, inability to act cultural issues, politics, and lack of alignment, those are the top four. But the interesting thing is that as Cindi has mentioned, these topics culture is actually gaining, gaining more and more traction. And in 2018, there was a story from HBR and it was about 45%. I believe today it's about 55%, 60% of respondents say that this is the main area that we need to focus on. So again, for all those leaders and all the executives who understand and are aware that we need to transform, commit to the transformation and set a state, deadline to say, "hey, in two years, we're going to make this happen. "What do we need to do to empower and enable "this change engines to make it happen?" You need to make the tough choices. And so to me, when I speak about being bold is about making the right choices now. So I'll give you samples of some of the roadblocks that I went through as I think transformation most recently, as Cindi mentioned in Schneider. There are three main areas, legacy mindset. And what that means is that we've been doing this in a specific way for a long time and here is how we have been successful what was working the past is not going to work now. The opportunity there is that there is a lot of leaders who have a digital mindset and there're up and coming leaders that are not yet fully developed. We need to mentor those leaders and take bets on some of these talent, including young talent. We cannot be thinking in the past and just wait for people, three to five years for them to develop because the world is going to in a way that is super fast. The second area, and this is specifically to implementation of AI is very interesting to me because just example that I have with ThoughtSpot, right, we went to implementation and a lot of the way is the IT team function of the leaders look at technology, they look at it from the prism of the prior all success criteria for the traditional Bi's. And that's not going to work. Again the opportunity here is that you need to really find what successful look like. In my case, I want the user experience of our workforce to be the same as user experience you have at home is a very simple concept. And so we need to think about how do we gain the user experience with this augmented analytics tools and then work backwards to have the right talent processes and technology to enable that. And finally, with COVID a lot of pressuring organizations, and companies to do more with less. And the solution that most leaders I see are taking is to just minimize costs, sometimes in cut budget, we have to do the opposite. We have to actually invest some growth areas, but do it by business question. Don't do it by function. If you actually invest in these kind of solutions, if you actually invest on developing your talent, your leadership to see more digitally, if you actually invest on fixing your data platform, it's not just an incremental cost. It's actually this investment is going to offset all those hidden costs and inefficiencies that you have on your system, because people are doing a lot of work and working very hard, but it's not efficiency, and it's not working in the way that you might want to work. So there is a lot of opportunity there. And you just to put into some perspective, there have studies in the past about, how do we kind of measure the impact of data. And obviously this is going to vary by your organization maturity, is going to, there's going to be a lot of factors. I've been in companies who have very clean, good data to work with. And I think with companies that we have to start basically from scratch. So it all depends on your maturity level, but in this study, what I think is interesting is they try to put attack line or attack price to what is the cost of incomplete data. So in this case, it's about 10 times as much to complete a unit of work when you have data that is flawed as opposed to have perfect data. So let me put that just in perspective, just as an example, right? Imagine you are trying to do something and you have to do 100 things in a project, and each time you do something, it's going to cost you a dollar. So if you have perfect data, the total cost of that project might be $100. But now let's say you have any percent perfect data and 20% flawed data by using this assumption that flawed data is 10 times as costly as perfect data. Your total costs now becomes $280 as opposed to $100. This is just for you to really think about as a CIO CTO, CHRO CEO, are we really paying attention and really closing the gaps that we have on our data infrastructure. If we don't do that, it's hard sometimes to see the snowball effect or to measure the overall impact. But as you can tell the price that goes up very, very quickly. So now, if I were to say, how do I communicate this? Or how do I break through some of these challenges or some of these various, right. I think the key is I am in analytics. I know statistics obviously, and love modeling and data and optimization theory and all that stuff. That's what I came to analytics. But now as a leader and as a change agent, I need to speak about value. And in this case, for example, for Schneider, there was this tagline called free up your energy. So the number one thing that they were asking from the analytics team was actually efficiency, which to me was very interesting. But once I understood that I understood what kind of language to use, how to connect it to the overall strategy and basically how to bring in the, the right leaders, because you need to focus on the leaders that you're going to make the most progress. Again, low effort, high value. You need to make sure you centralize all the data as you can. You need to bring in some kind of augmented analytics solution. And finally you need to make it super simple for the, in this case, I was working with the HR teams in other areas, so they can have access to one portal. They don't have to be confused in looking for 10 different places to find information. I think if you can actually have those four foundational pillars, obviously under the guise of having a data-driven culture, that's when you can actually make the impact. So in our case, it was about three years total transformation, but it was two years for this component of augmented analytics. It took about two years to talk to IT get leadership support, find the budgeting, get everybody on board, make sure the safe criteria was correct. And we call this initiative, the people analytics portal, it was actually launched in July of this year. And we were very excited and the audience was very excited to do this. In this case, we did our pilot in North America for many, many manufacturers. But one thing that is really important is as you bring along your audience on this, you're going from Excel, in some cases or Tableau to other tools like, ThoughtSpot, you need to really explain them what is the difference and how these tools can truly replace, some of the spreadsheets or some of the views that you might have on these other kind of tools. Again, Tableau, I think it's a really good tool. There are other many tools that you might have in your toolkit. But in my case, personally, I feel that you need to have one portal going back to Cindi's point. I really truly enable the end user. And I feel that this is the right solution for us, right? And I will show you some of the findings that we had in the pilot in the last two months. So this was a huge victory, and I will tell you why, because it took a lot of effort for us to get to the station. Like I said, it's been years for us to kind of lay the foundation, get the leadership, and shaping culture so people can understand why you truly need to invest on (indistinct) analytics. And so what I'm showing here is an example of how do we use basically, a tool to capture in video the qualitative findings that we had, plus the quantitative insights that we have. So in this case, our preliminary results based on our ambition for three main metrics, hours saved user experience and adoption. So for hours saved or a mission was to have 10 hours per week per employee save on average user experience, or ambition was 4.5. And adoption, 80%. In just two months, two months and a half of the pilot, we were able to achieve five hours per week per employee savings. Our user experience for 4.3 out of five and adoption of 60%. Really, really amazing work. But again, it takes a lot of collaboration for us to get to the stage from IT, legal, communications, obviously the operations teams and the users in HR safety and other areas that might be, basically stakeholders in this whole process. So just to summarize this kind of effort takes a lot of energy. You are a change agent. You need to have a courage to make the decision and understand that I feel that in this day and age, with all this disruption happening, we don't have a choice. We have to take the risk, right? And in this case, I feel a lot of satisfaction in how we were able to gain all these very source for this organization. And that gave me the confidence to know that the work has been done and we are now in a different stage for the organization. And so for me, it to say, thank you for everybody who has believed, obviously in our vision, everybody who has believe in the word that we were trying to do and to make the life of four workforce or customers or in community better. As you can tell, there is a lot of effort. There is a lot of collaboration that is needed to do something like this. In the end, I feel very satisfied. With the accomplishments of this transformation, and I just want to tell for you, if you are going right now in a moment that you feel that you have to swim upstream what would mentors, what would people in this industry that can help you out and guide you on this kind of a transformation is not easy to do is high effort, but is well worth it. And with that said, I hope you are well, and it's been a pleasure talking to you. Talk to you soon, take care. >> Thank you, Gustavo, that was amazing. All right, let's go to the panel. (air whooshing) >> Okay, now we're going to go into the panel and bring Cindi, Michelle, Tom, and Gustavo back and have an open discussion. And I think we can all agree how valuable it is to hear from practitioners. And I want to thank the panel for sharing their knowledge with the community. And one common challenge that I heard you all talk about was bringing your leadership and your teams along on the journey with you. We talk about this all the time, and it is critical to have support from the top. Why? Because it directs the middle and then it enables bottoms up innovation effects from the cultural transformation that you guys all talked about. It seems like another common theme we heard is that you all prioritize database decision-making in your organizations and you combine two of your most valuable assets to do that and create leverage, employees on the front lines. And of course the data. And as you rightly pointed out, Tom, the pandemic has accelerated the need for really leaning into this. The old saying, if it ain't broke don't fix it. Well COVID is broken everything. And it's great to hear from our experts, how to move forward. So let's get right into it. So Gustavo, let's start with you if I'm an aspiring change agent and let's say I'm a budding data leader. What do I need to start doing? What habits do I need to create for long lasting success? >> I think curiosity is very important. You need to be, like I say, in tune to what is happening, not only in your specific field, like I have a passion for analytics, I can do this for 50 years plus, but I think you need to understand wellbeing other areas across not only a specific business, as you know I come from, Sam's club Walmart, retail, I mean energy management technology. So you have to try to push yourself and basically go out of your comfort zone. I mean, if you are staying in your comfort zone and you want to use lean continuous improvement, that's just going to take you so far. What you have to do is, and that's what I try to do is I try to go into areas, businesses, and transformation that make me stretch and develop as a leader. That's what I'm looking to do so I can help transform the functions organizations and do the change management, change of mindset required for these kinds of efforts. >> Michelle, you're at the intersection of tech and sports and what a great combination, but they're both typically male oriented fields. I mean, we've talked a little bit about how that's changing, but two questions. Tell us how you found your voice and talk about why diversity matters so much more than ever now. >> No, I found my voice really as a young girl, and I think I had such amazing support from men in my life. And I think the support and sponsorship as well as sort of mentorship along the way, I've had amazing male mentors who have helped me understand that my voice is just as important as anyone else's. I mean, I have often heard, and I think it's been written about that a woman has to believe they'll 100% master topic before they'll talk about it where a man can feel much less mastery and go on and on. So I was that way as well. And I learned just by watching and being open, to have my voice. And honestly at times demand a seat at the table, which can be very uncomfortable. And you really do need those types of, support networks within an organization. And diversity of course is important and it has always been. But I think if anything, we're seeing in this country right now is that diversity among all types of categories is front and center. And we're realizing that we don't all think alike. We've always known this, but we're now talking about things that we never really talked about before. And we can't let this moment go unchecked and on, and not change how we operate. So having diverse voices within your company and in the field of tech and sports, I am often the first and only I'm was the first, CIO at the NFL, the first female senior executive. It was fun to be the first, but it's also, very challenging. And my responsibility is to just make sure that, I don't leave anyone behind and make sure that I leave it good for the next generation. >> Well, thank you for that. That is inspiring. And Cindi, you love data and the data's pretty clear that diversity is a good business, but I wonder if you can add your perspectives to this conversation? >> Yeah, so Michelle has a new fan here because she has found her voice. I'm still working on finding mine. And it's interesting because I was raised by my dad, a single dad. So he did teach me how to work in a predominantly male environment, but why I think diversity matters more now than ever before. And this is by gender, by race, by age, by just different ways of working in thinking is because as we automate things with AI, if we do not have diverse teams looking at the data and the models and how they're applied, we risk having bias at scale. So this is why I think I don't care what type of minority you are finding your voice, having a seat at the table and just believing in the impact of your work has never been more important. And as Michelle said more possible. >> Great perspectives, thank you. Tom I want to go to you. I mean, I feel like everybody in our businesses in some way, shape or form become a COVID expert, but what's been the impact of the pandemic on your organization's digital transformation plans? >> We've seen a massive growth actually in a digital business over the last, 12 months, really, even in celebration, right? Once COVID hit, we really saw that in the 200 countries and territories that we operate in today and service our customers, today, that there's been a huge need, right? To send money, to support family, to support, friends and support loved ones across the world. And as part of that we are very, honored to get to support those customers that we, across all the centers today. But as part of that acceleration we need to make sure that we had the right architecture and the right platforms to basically scale, right, to basically support and provide the right kind of security for our customers going forward. So as part of that, we did do some pivots and we did accelerate some of our plans on digital to help support that overall growth coming in and to support our customers going forward, because there were these times during this pandemic, right? This is the most important time. And we need to support those that we love and those that we care about and doing that it's one of those ways is actually by sending money to them, support them financially. And that's where, really our part of that our services come into play that we really support those families. So it was really a great opportunity for us to really support and really bring some of our products to this level and supporting our business going forward. >> Awesome, thank you. Now I want to come back to Gustavo, Tom I'd love for you to chime in too. Did you guys ever think like you were, you were pushing the envelope too much in doing things with data or the technology that was just maybe too bold, maybe you felt like at some point it was failing or you're pushing your people too hard. Can you share that experience and how you got through it? >> Yeah, the way I look at it is, again, whenever I go to an organization, I ask the question, hey, how fast you would like transform. And, based on the agreements from the leadership and the vision that we want to take place, I take decisions. And I collaborate in a specific way now, in the case of COVID, for example, right. It forces us to remove silos and collaborate in a faster way. So to me, it was an opportunity to actually integrate with other areas and drive decisions faster, but make no mistake about it. When you are doing a transformation, you are obviously trying to do things faster than sometimes people are comfortable doing, and you need to be okay with that. Sometimes you need to be okay with tension, or you need to be okay debating points or making repetitive business cases until people connect with the decision because you understand, and you are seeing that, "hey, the CEO is making a one two year, efficiency goal. "The only way for us to really do more with less "is for us to continue this path. "We cannot just stay with the status quo. "We need to find a way to accelerate the transformation." That's the way I see it. >> How about you Tom, we were talking earlier with Sudheesh and Cindi, about that bungee jumping moment. What could you share? >> Yeah, I think you hit upon it, right now, the pace of change with the slowest pace that you see for the rest of your career. So as part of that, right, that's what I tell my team is that you need to be, you need to feel comfortable being uncomfortable. I mean, that we have to be able to basically scale, right, expand and support that the ever-changing needs in the marketplace and industry our customers today, and that pace of change that's happening, right. And what customers are asking for and the competition in the marketplace, it's only going to accelerate. So as part of that, as you look at what, how you're operating today in your current business model, right. Things are only going to get faster. So you have to plan into a line into drive the agile transformation so that you can scale even faster in the future. So as part of that, that's what we're putting in place here, right, is how do we create that underlying framework and foundation that allows the organization to basically continue to scale and evolve into the future? >> Yeah, we're definitely out of our comfort zones, but we're getting comfortable with it. So, Cindi, last question, you've worked with hundreds of organizations, and I got to believe that, some of the advice you gave when you were at Gartner, which is pre COVID, maybe sometimes clients didn't always act on it. They're not on my watch for whatever variety of reasons, but it's being forced on them now. But knowing what you know now that we're all in this isolation economy, how would you say that advice has changed? Has it changed? What's your number one action and recommendation today? >> Yeah, well, first off, Tom just freaked me out. What do you mean? This is the slowest ever even six months ago I was saying the pace of change in data and analytics is frenetic. So, but I think you're right, Tom, the business and the technology together is forcing this change. Now, Dave, to answer your question, I would say the one bit of advice, maybe I was a little more, very aware of the power and politics and how to bring people along in a way that they are comfortable. And now I think it's, you know what you can't get comfortable. In fact, we know that the organizations that were already in the cloud have been able to respond and pivot faster. So if you really want to survive as Tom and Gustavo said, get used to being uncomfortable, the power and politics are going to happen. Break the rules, get used to that and be bold. Do not be afraid to tell somebody they're wrong and they're not moving fast enough. I do think you have to do that with empathy, as Michelle said, and Gustavo, I think that's one of the key words today besides the bungee jumping. So I want to know where's the dish going to go bungee jumping. >> Guys fantastic discussion, really. Thanks again to all the panelists and the guests. It was really a pleasure speaking with you today. Really virtually all of the leaders that I've spoken to in the Cube program. Recently, they tell me that the pandemic is accelerating so many things, whether it's new ways to work, we heard about new security models and obviously the need for cloud. I mean, all of these things are driving true enterprise wide digital transformation, not just, as I said before, lip service. Sometimes we minimize the importance and the challenge of building culture and in making this transformation possible. But when it's done, right, the right culture is going to deliver tremendous results. Yeah, what does that mean getting it right? Everybody's trying to get it right. My biggest takeaway today is it means making data part of the DNA of your organization. And that means making it accessible to the people in your organization that are empowered to make decisions, decisions that can drive new revenue, cut costs, speed access to critical care, whatever the mission is of your organization. Data can create insights and informed decisions that drive value. Okay. Let's bring back Sudheesh and wrap things up. Sudheesh, please bring us home. >> Thank you. Thank you, Dave. Thank you, the Cube team, and thank goes to all of our customers and partners who joined us and thanks to all of you for spending the time with us. I want to do three quick things and then close it off. The first thing is I want to summarize the key takeaways that I had from all four of our distinguished speakers. First, Michelle, I will simply put it. She said it really well. That is be brave and drive. Don't go for a drive along. That is such an important point. Oftentimes, you know that I think that you have to do to make the positive change that you want to see happen but you wait for someone else to do it, not just, why not you? Why don't you be the one making that change happen? That's the thing that I've picked up from Michelle's talk. Cindi talked about finding the importance of finding your voice. Taking that chair, whether it's available or not, and making sure that your ideas, your voices are heard, and if it requires some force, then apply that force. Make sure your ideas are heard. Gustavo talked about the importance of building consensus, not going at things all alone sometimes building the importance of building the quorum. And that is critical because if you want the changes to last, you want to make sure that the organization is fully behind it. Tom, instead of a single takeaway, what I was inspired by is the fact that a company that is 170 years old, 170 years old, 200 companies and 200 countries they're operating in. And they were able to make the change that is necessary through this difficult time. So in a matter of months, if they could do it, anyone could. The second thing I want to do is to leave you with a takeaway that is I would like you to go to topspot.com/nfl because our team has made an app for NFL on Snowflake. I think you will find this interesting now that you are inspired and excited because of Michelle's talk. And the last thing is please go to thoughtspot.com/beyond our global user conference is happening in this December. We would love to have you join us. It's again, virtual, you can join from anywhere. We are expecting anywhere from five to 10,000 people, and we would love to have you join and see what we've been up to since last year. We have a lot of amazing things in store for you, our customers, our partners, our collaborators, they will be coming and sharing. We'll be sharing things that we've have been working to release something that will come out next year. And also some of the crazy ideas our engineers have been cooking up. All of those things will be available for you at the Thought Spot Beyond. Thank you. Thank you so much.

>> Announcer: From around the globe, it's theCUBE with digital coverage of DockerCon Live 2020. Brought to you by Docker and its ecosystem partners. >> Okay Jenny, great to see you again. >> Good to see you. >> James Governor, nail on the Keynote there. Chat was phenomenal. That was pre-recorded but James is also in the chat stream. A lot of good conversations. That hit home for me that keynote. One, because memory lane was going down right into the 80s when it was a revolution. And we got him in the green room here. James Governor, welcome. >> James is here, hi James. >> Here we go. >> Fresh off the keynote. >> It's always a revolution. (John laughs) >> Well, in the 80s, I used to love your talk. A couple of key points I want to share and get your thoughts on was just to some highlights for the crowd is one, you walk through. Some of the key inflection points that I think were instrumental and probably some other ones depending on your perspective of where you were in the industry at that time. Whether you were a systems programmer or a networking guy, there was a proprietary world and it was a revolution back then. And UNIX was owned by AT&T if no one remembers. You couldn't even use the word. You had to trade market. So we actually had to call it XINU which is UNIX spelled backwards in all the text and whatnot. And even open source software freeware was kind of illegal. MIT did some work, Northeastern and Berkeley and other schools. It was radical back then so-- >> Yeah, we've come a long way for sure. I think that for me that was one of the things that I wanted to really point to in the keynote was that yes we have definitely come a long way and development culture is about open culture. >> I think the thing that I like to point out especially hate to sound like I'm old but I am. But I lived through that and the younger generation coming and have all these new tools. And I got to say not that I walked through to school in the snow with no shoes on but it's a pretty cool developer environment now. But remember things were proprietary back then. If you start to see the tea leaves now, I look at the world, you see these silos. You see silos that's kind of, they're not nestle proprietary but they might necessarily be open. So you kind of have a glimpse of open source on these projects and these companies. Whether they're tech companies, it feels open but it might not be. It could be walled garden. It could be data being hoarded. So as data opens up, this is interesting to me because I want to get your thoughts on this because in a way it feels proprietary but technically it's not proprietary. What's your thoughts on this? Because this is going to be the next 20 years of evolution. What's your thoughts? >> I think the productivity wins. Whoever packages technology in a way that makes it most productive for people. That's what wins. And open source, what's productive. It is very accessible. It enabled new waves. Get installed and you've got a package from... You got access to just a world of open-source. A world of software that was a big revolution. And I guess the cloud sort of came next and I think that's been one of the big shifts. You talk about proprietary. What matters is how easy you make things to people to do their work. And in that regard, obviously Amazon is in fact a bigger distribution network. Makes technology super consumable by so many people. I guess I would say that open is good and important but it's not the only thing. As you say, data is a lock-in and it's right and people are choosing services that make them productive. Nobody worries about whether Amazon Lambda is proprietary. They just know that they can build companies or businesses or business processes on it. >> You know it's interesting back in the day just to kind of segue with the next topic. We were fighting proprietary operating systems, UNIX and others. We're also fighting for proprietary Network protocol stacks. SNA was owned by IBM. DECnet was digital, the number one network. And then TCP/IP and OpenSan's interconnect came out. That's the OSI model for us old ones. That set the table. That changed the face of everything. It really enabled a lot. So when I see containers, what Docker did early on the pioneering phases of Docker containers, it unleashed a new reality of coolness and scale and capabilities. And then in comes Kubernetes and in comes micro services. So this path is showing some real strength for new kinds of capabilities. So how does a developer navigate all this because data lock-in does it a data plane seems to be a control point. What are we fighting now in your opinion? shouldn't say we're fighting but what are we trying to avoid if operating systems was for closing opportunities and network protocol stacks before closing in the past? What do you see as barriers that need to be broken down in the open source world around going down this great path of micro services, decomposed applications, highly cohesive architectures? >> Honestly there's enough work to be getting on with without like fighting someone in that regard. I mean we're fighting against technical debt. I just don't think that people are serrated about fighting against proprietary anymore. I think that's less than a concern. Open-source technology is great. It's how most work gets done in our industry today. So you mentioned Kubernetes and certainly Docker. Though we did a phenomenal job of packaging up and experience that map to see CICD. That map to the developer workplace people like do. Phenomenal job and I think that for me at least when I look at where we are as an industry, it's all about productivity. So there are plenty of interesting new platforms. I think in my keynote, that's my question. I'm less interested in microservices than I am in distributed work. I'm interested in one of the tools that are going to enable us to become more productive, solve more problems, build more applications and get better at building software. So I think that's my sort of focus. There will always be lock-in. And I think you will also have technologies mitigate against that. I mean clear messages today from Docker about supporting multiple clouds. For a while at least multiclouds seem like something only the kind waivers were interested in but increasingly we're seeing organizations where that is definitely part of how they're using the cloud. And again I think very often it's within specific areas. And so we see organizations that are using particular clouds for different things. And we'll see more of that. >> And the productivity. I love the passion, love that in the keynote. That was loud and clear. Two key points I want to get your reaction on that. You mentioned one was inclusion. Including more people, not seeing news. It's kind of imperative. And also virtual work environments, virtual events. You kind of made a highlight there. So again people are distributed remote first. It's an opportunity to be productive. Can you share your thoughts on those two points? One is, as we're distributed, that's going to open the aperture of more engagement. More people coming in. So code of conduct not as a file you must read or some rule. Culturally embracing a code of conduct. And then also, virtual events, virtual groups convening like we're doing here. >> Yeah I mean for me at least Allison McMillan from github and she just gave such a great demo at the recent sunlight event where she finished and she was like, it was all about, I want to be able to put the kids to bed for a nap and then go code. And I think that's sort of thinking people band around the phrase ruling this together but I mean certainly parenting is a team sport. But I think it's interesting we're not welcome. It was interesting that was looking at the chat, going through, I was being accused of being woke. I was being accused of being a social justice warrior. But look at the math. The graph is pretty clear. Women are not welcomed in tech. And that means we're wasting 50% of available resource to us. And we're treating people like shit. So I thought I underplayed that in the talk actually. Something like, "Oh, why is he complaining about Linus?" Well, the fact is that Linus himself admitted he needed to change his persona in order to just be more modern and welcoming in terms of building software and building communities. So look we've got people from around the world. Different cultural norms. All of the women I know who work in tech suffer so much from effectively daily harassment. Their bonafides are challenged. These are things that we need to change because women are brilliant. I'm not letting you signaling or maybe I am. The fact is that women are amazing at software and we do a terrible job of supporting them. So women of other nationalities, we're not going to be traveling as much. I think you can also grow. No we can't keep flying around as much. Make an industry where single parents can participate more effectively. Where we could take advantage of that. There're 200 million people in Nigeria. That hunger to engage. We won't even give them a visa and then we may not be treating them right. I just think we need an industry reset. I think from a we need to travel less. We need to do better work. And we need to be more welcoming in order that that could be the case. >> Yeah, there's no doubt a reset is here and you look at the COVID crisis is forcing that function there because one, people are resetting and reinventing and trying to figure out a growth strategy. Whether it's a business or teams. And what's interesting is new roles and new responsibilities is going to emerge and I think you're right about the women in tech. I completely agree and have evidence myself and reported on it ad nauseam. But the thing is data trumps opinion. And the data is clear on this issue. So if anyone will call you a social justice warrior I just say pound sand and tell them that go on their way. And just look at the data and clear. And also the field is getting wider. When I was in computer science major back in the day, it was male-dominated yes but it was very narrow. Wasn't as broad as it is now. You can do things so much more and in fact in Kelsey Hightower's talk, he talks to persona developers. The ones that love to learn and ones that don't want to learn anything. Just want to code and do their thing. And ones that care about just app development and ones that just want to get in and sling k-8 around like it's nobody's business or work with APIs, work with infrastructure. Some just want to write code. So there's more and more surface area in computer science and coding. Or not even computer science, it's just coding, developing. >> Well, I mean it's a bigger industry. We've got clearly all sorts of challenges that need to be solved. And the services that we've got available are incredible. I mean if you look at the work of companies like Netlify in terms of developer experience. You look at the emergence of JamStack and the productivity that we're seeing there, it's a really exciting time in the industry. >> No doubt about that. >> And as I say I mean it's an exciting time. It's a scary time. But I think that we're moving to a world of more distributed work. And that's my point about open source and working on code bases from different places and what the CapCloud can enable. We can work in a different way and we don't all need to be in San Francisco, London, or Berlin as I said in the Keynote. >> I love the vision there and the passion. I totally agree with it. I think that's a whole another distributed paradigm that's going to move up the stack if you will and software. I think it's going to be codified in cloud native and cloud scale creates new services. I mean it's the virtual world. You mentioned virtual events. Groups convening like the 67,000 people coming together virtually here at DockerCon. Large, small one-on-ones group dynamics are a piece of it. So share your thoughts on virtual events and certainly it's people are now just kicking the tires, learning. You do a zoom, you do a livestream. You do some chat. It's going to evolve and I think it's going to look more like a CICD pipeline and anything else. As you start to bring media together, we get 43 sessions here. Why not make it a hundred sessions? So I think this is going to be one of those learning environments where it's not linear, it's different. What's your vision of all this if you had to give advice for the folks out there? Not event plans, with people who want to gather groups and be productive. What's your thinking on this? >> Well, it sort of has to happen. I mean there are a lot of people doing good work in this regard. Patrick Dubois, founder of DevOps days. He's doing some brilliant work delineating. Just what are all the different platforms? What does the streaming platform look like that you can use? Obviously you've got one here with theCUBE. Yeah, I mean I think the numbers are pretty clear. I mean Microsoft Build had 245,000 registered attendees and I think something that might have been to begin. The patterns are slightly different. It's not like they're going to be there the whole time but the opportunity to meet people where they are, I think is something that we shouldn't ignore. Particularly in a world not everyone again has the privilege of being able to travel. You're in a different country or as I say perhaps your life circumstances mean you can't travel. From an accessibility perspective, clearly virtual events offer an opportunity that we haven't fully nailed. I think Microsoft performance in this regard has been super interesting. They were already moving that way and Kobe just slammed it up to another level. What they did with Build recently was actually, I mean they're a media company, right? But certainly developed a focused media company. So I think you'll be okay. You're about the business of software John. Don't worry Microsoft don't give you some space there. (John and James laughing) We're under the radar at theCUBE 365 for the folks who are watching this. This is our site that we built with our software. So we're open and Docker was instrumental and I think the Docker captains were also very instrumental and trying to help us figure out the best way to preserve the content value. I personally think we're in this early stage of, content and community are clearly go hand in hand and I think as you look at the chat, some of the names that are on there. Some of the comments, really there's a new flywheel of production and this to me is the ultimate collaboration when you have these distinct groups coming together. And I think it's going to just be a data dream where people aren't the product, they're actually a contributor. And I think this open source framework that you're talking about is going to be certainly just going to evolve rapidly. I think it's just not even scratching the surface. I just think this is going to be pretty massive. And services whatever you want to define that. It could be an API to anything. It's going to be essentially the scale point. I mean why have a monolith piece of software running something. Something Microsoft teams will work well here. Zoom will work well there but ultimately what's in it for me the person? This is the key question. Developers just want to develop. You're going to hear that throughout the day. Kelsey Hightower brings up some great points in his session and Amanda silver at Microsoft, she had a quote on one of her videos. She said, "App developers are the first responders "in this crisis." And that's the first time I've heard someone say that out loud and that hits home for me because it's true. And right now app developers are one of the front lines. They're providing the app support. They're providing to the practitioners in the field. This is something that's not really written about in the press. What's your reaction to app developers are the first responders in this crisis. >> Well I mean first I think it's important to pay tribute to people that actually are first responders. Writing code can make us responsive but let's not forget there are people that are lacking PPE and they are on the frontline. So not precise manner but I might frame it slightly differently. But certainly what the current situation has shown us is productivity is super important. Target has made huge investments in building out its own software development capabilities. So they used to be like 70% external 30% internal and they turn that round to like 80% internal 20 external. And they've been turning on a dime and well there's so much going on at the moment. I'm like talking about target then I'm remembering what's happening in Minneapolis today. But anyway we'll talk about that. But yeah organizations are responding quickly. Look at the numbers that Shopify is happening because all sorts of business is something like we need to be an online business. What's the quickest way to do that. And Shopify was able to package something up in a way that they they could respond to challenges. Huge social challenges. I'm a big believer the future's unwritten at this point and I think there's a lot of problems out there you point out and the first responders are there I agree. I'm just thinking that there's got to be a better path for all of us. And this brings up the whole new roles and responsibilities around this new environment and I know you're doing a lot of research. Can you share some thoughts on what you're kind of working on now James? That's important, I'll see what's trending here at DockerCon is. Compose the relationship with Microsoft, we've got security, Dockers now, multicloud approach, making it easier, that's their bread and butter. That's what they're known for. They kind of going back to that roots of why they pioneered in the first place. So as that continues ease-of-use, what's your focus area right now that you're researching that you could share with the audience? >> Well, I mean I'd say this year for me I've got probably three key areas. One is what's called GitOps. So it's the notion that you're using Git as a system of record. So that started off randomly making changes, you have an audit trail. You begin to have some sort of sense of compliance in software changes. I think the idea of everything has to be by a sort of a pull request. That automation model is super thing to me. So I've been looking at that. A lot of development teams are using those approaches. Observability is a huge trend. We're moving to the idea of testing and production. The kind of stuff that's been evangelized so successfully by charity majors honeycomb. It's super exciting to me and it's true because in effect, you're always testing in production, your dev environment. I mean we used to have this idea that you'd have a Dev and a Dev stage. You're have a staging environment. The only environment that really matters is where the rubber meets the road. And that is deployment. So I think that having having better tools for that is one of the areas I'm looking at. So how are tools innovating that area? And it won't be the thing that this is my own personal thing. I've been talking about progressive delivery which is asking a question about reducing risk by really understanding the blast radius of the service to be able to roll it out to specific use of populations first. Understanding who they are and enrolling it up so it's the idea that like maybe you brought something out to your employees first. Maybe you are in California and you roll something out in Tokyo knowing that not many people are using that service. It is a live environment but people are not going to be adversely affected if it happens. So Canary's Blue-Green deployments and also experimentation. This is sort of one of the areas I'm being sort of pulled towards. It's sort of product management and how that's really converging with software development. I feel like that's one of the things I haven't fully, I mean I think it's when they have research focused but you have to respond to new information. Anyhow, I'm spending a lot of time thinking about the world of product management. It's those companies to be most respect in terms of companies that are crushing it in the digital economy. They have such a strong product management focused. Everything is driven by product managers that understand technology and that's an exciting shift. The one that I'm paying greater attention. >> You do some great work and I love the focus on productivity software development. Getting those app developers out there and it's interesting. I just think that it's such an exciting time. It's almost intoxicating. Some people drinking on Twitter online and having beers because they're in different time zone. But if you look up and down the action that's going on, you got at the application developers side, all the things you were mentioning services. But when you look at the cloud side, you got almost this operating system reset. It's a systems architecture. So you have the hall and that's up and down. The middle of the stack to the bottom, you have this operating systems thinking and evolution. And then you got at the top, the pure software developers. And this is again to me the big aha moment. For the industry there's a true opportunity to scale that in unbelievable ways. And you don't have to pick a side. You can do a top of the stack bottom stack. So I think kubernetes and micro services really bring this whole enablement piece to the table. And that fascinates me and I think that's going to change what the apps will look like. It'll give more productivity and then making the internet programmable unit, that's new systems. So that seems to be the trend. You're a systems guy, your girl or you're a developer. How do you see that evolving? Do you get to that level? >> Developer experience is not necessarily the key value of Kubernetes. It's supremely flexible sort of system. It does offer you that portability. But I think what I'm seeing now is how people are taking Kubernetes and kind of thinking, so you've got VMware, acquires Heptio, brings Pivotal into the fold, starting about what that platform looks like. I think Pivotal with cloud foundry did a great job of thinking through operator experience. Operator experience is not the same as developer experience. I think we're going to see a bit more specialization of roles. Meanwhile at that point, you've got the cloud players all doing pretty awesome job supporting Kubernetes. But it gives that portability promise. So I think for me, one of the things is not expecting everyone to do everything. It's like Kelsey said, some people just want to come into work and do their job and they're super important. And so VMware I think a history of certification of application environments. So of them it's sort of quite--and certification of humans. It's quite natural that they would be somebody that would think about how do we make Kurbenetes more consumable and packaged in a way that more people take advantage of it. Docker was such a phenomenon and now seeing how that sort of evolving into that promise of portability is beginning to be realized. So I think the specialization, the pendulum is going to swing back just a little bit. >> I think it's just great timing and congratulations on all the work and thanks for taking the time for participating in DockerCon with the Keynote. Taking time out of your day and coming in and doing this live interview. The chat looks good. Hit some great, get some fans in there. It's a great opportunity and I think Docker as the pioneers, pivoting in a new direction, it's all about developer productivity and James you've been on it. @monkchips is his Twitter handle, follow him, hit him up. I'm John Furrier here in the studio for DockerCon 2020. Ginebra CEO and you got Brett Fisher on the captain's channel. If you go to the site, you'll see the calendar. Jump into any session you want. They'll be live on the time or on-demand instantly. TheCUBE track has a series of enemies. You've got Amazon, we got Microsoft, get some great guests, great practitioners that are literally having an impact on society. So thanks for watching. James, thanks for spending the time. >> Thank you very much John. >> Okay James Governor, founder of Monkchips, great firm, great person-- >> RedMonk, RedMonk is the company. Monkchips is the Twitter. >> Redmonk, Monkchips. RedMonk, RedMonk. >> RedMonk is the company. >> RedMonk, RedMonk. >> @monkchips is his Twitter handle and RedMonk is the firm, thank you for the correction. Okay more coverage DockerCon after this short break. Stay with us. The next segment is coming up. Stay with us here at theCUBE DockerCon. (gentle music)

>> Announcer: Live from Las Vegas, It's the Cube. Covering AWS reInvent 2019. Brought to you by Amazon Web Services and Intel along with its ecosystem partners. >> Welcome back everyone, we're live here in Las Vegas in the Cube for live coverage of Amazon reInvent 2019. I'm John Furrier here instructing the singer from the noise. We have an amazing guest here, the founder of Aviatrix, I mean the CEO of Aviatrix, Steve Mullaney. Welcome to the Cube, thanks for comin' out. >> Thank you, good to see you. >> So first of all, I want to get into your experience, because I think it's notable having you on, because you've been in the industry for years, you're CEO of a multicloud software, a new kind of company. And this is what Andy Jassy was talking about on his Keynote today, that there's new kinds of companies, there's the born in the cloud, then there's enterprises re-borning in the cloud, my word. It's actually pivoting or re-platforming, re-imagining, whatever you want to call it. This is the new game, and if you're not on that side of the street you could be out of business. >> Steve: Yeah, no we're definitely seeing that and I think that's the thing that really got me excited about a year ago, was watching enterprises make that transition and say you know what, the center of gravity has gone from architectures inside the on-prem data center, is now moved to in the cloud. That shift has happened, people talked about it five years ago, but they didn't mean it. Now when you talk to enterprises, they are actually moving into the cloud, not just talking about it. And they're saying that is the center of gravity. And what's interesting to me was, I think even just the tone of Andy Jassy today and what he was talking about was once you define what your architecture is, you push it everywhere. So cloud 1.0 and 2.0 was really more about taking my architecture that was on-prem and pushing it into the cloud. So let me take virtual clients, a virtual router, basically my hardware router, package it up, put it on the cloud. That's not cloud native, it's cloud naive as we talk, right? So the change that's happened is now everybody realizes that the center of gravity is in the cloud, and you start seeing things like outposts. You see things like wavelength, you see things like TGW network Manager and things getting pushed out. The architecture of the cloud, now actually pushing out and extending out into on premises. >> John: Well, I want to give you a prop for a couple things. One is, for the folks watching, and read my post about my interview with Andy Jassy, I said two things in there that I borrowed or stole from Steve. One was cloud native without the T is cloud naive. And T for trust, T for IT, that was clever. And we're going to get into that-- >> Well I stole that from our sales guy Harold Hilderbrand, so you know what? >> John: Harold shout out to you. The second thing that I heard used when we were talking, we were talking about transitions vs. transformations. I think that is so on point because I think that encapsulates what Jassy's saying and what the industry is feeling right now. Transitions are for incremental improvements, transformations are for flipping the script. >> Steve: Right, right. >> This is really happening. Can you share what you mean by transitions vs. transformations? >> Yeah, so when you're in a computing model, there's been really three computing models. There's mainframe, which was 50's or 60's, to 80's or 90's, there's a 20-30 year period where IBM, DAC and so forth. That was the way you did enterprise computing. Then this PC client server thing came along, which was viewed as a toy at the beginning. For print sharing and work groups and people said are you kidding me? PCs, Servers are just PCs with two power supplies. I'm not running my mission critical infrastructure on PCs. But in the 90's with the internet, IP protocol, it's shifted. That became that transformation. So incumbents never win transformations. DEC, IBM and what happens is they're never in the conversation, because it's a transformation. Incumbents always win transitions, so for the last 20 to 30 years, Cisco, great, fantastic company. Very respected company. John Jamers will talk about transitions and talk about he would pat himself on the back, and how they would win market transitions. You're supposed to win a market transition as an incumbent, don't pat yourself on the back. The customers will force you to win the transition because they don't want another leader when you're in that same model. We are now entering that third transformation, this a model of computing change. This is from the top down business transformation Andy was talking about, which is true. You have companies redefining who they are, and they are leveraging cloud technologies to do that. This is not a cost thing, this is not a bottoms up technology thing that IT guys just say ah I want to learn something new. This is top down business transformation, existential threat to the survival of my company kind of stuff, and we need to move fast, and enterprises all move together. That's now happening and transformations, that confusion creates opportunities, because it moves so fast that the legacy vendors just don't have time. They have the innovators dilemma, they can't move to the new way quick enough. >> Yeah and one of the things I want to get your thoughts on and I want to get your reaction to is as we go to all the events in cloud, in this business, we see everything, the one tell sign, for me, is the security market. Security got unbuckled out of IT, in the board conversation. The jewels are on the table, the security, if you get hacked you're out of business. Talk about threats to the business, security is the leading indicator. What's going on in security? They're building their own staff, they're hiring developers in house. They are really changing the game on how they use technology. That's just in one area. You're talking about a complete reset, or reconsideration of everything that Jassy said. >> Everything, yeah, it's the business, right? Your applications are your business, right? And then all the infrastructure underneath that is there to service the applications and the data, that's why it's there. When you talk to different people, and you talk to customers like NBC and CBS, and content people, they're moving to the cloud. They're now having channels that are 100% hosted on AWS for the first time. Why are you doing that? I asked this of CBS. Because we need to move faster. Guess what, they're competing with Netflix and Amazon. They can't do it the old way, they're going to die. So they're moving all of their channels, hundreds of channels to be now cloud enabled. Because it allows them to deliver it in months as opposed to years. >> Your really interesting background, I'll share with the audience, you have a networking background, the old WellFleet became Bay Networks. Early employee at Cisco, then went to early employee at Palo Alto Networks security company. CEO Of Nicira, which is a big pioneer in software-defined networking. Which, at the time, evolved into the crown jewels of AVMWare. >> Yep, in a sense. >> You would say I would agree with that. And now you're on Aviatrix where it's got a multi-cloud abstraction, so you're kind of riding this new wave. So the question I have for you is, I coined the term being reborn in the cloud. Not born in the cloud. People who are born in the cloud, clean sheet of paper, they can scale up. But an enterprise has got to transform. Has to become reborn with cloud architecture. >> Steve: Yes, yes. >> This is a fundamental, almost look in the mirror moment as an enterprise executive, saying are we being reborn? >> Yes. >> How do companies do that? >> So we have a number of companies, enterprise companies, that are 30 year old, 40 year old enterprise software companies that, honestly, were left for dead. Where people thought, they weren't SaaS. They missed out on the whole Benny Hoff SaaS movement and they were on-prem. They had all the features, all the functionality, but they didn't have the delivery model of SaaS. They were hurting, they were going to die. People left them for dead. Now what they are doing is they've reborn themselves, in the cloud. They are pushing themselves in the cloud. Informatic, Variant, Epsolon, Eluysian, Teradata. We've got tens of these companies, that are, have reinvented themselves and now they're actually doing really, really, well. Because they had the functionality that they've always had, but now they have the delivery mechanism. There not SaaS actually, and the customers like that. Because I get my own three or four VPCs, it's my own network, it's not multi-tenant. It's hosted within AWS and now they're just migrating as fast as they can, all of their on-prem applications of customers into AWS and other clouds. >> John: All right, so I want to ask you about multi-cloud. Jassy didn't use the word multi-cloud, the critics are tweeting away on that. But, of course he's going to say multi-cloud, he's the cloud. He's the one cloud, he wants to be. >> Yeah. >> Multi-cloud is a reality. He did point out in my interview, and I think he might have mentioned on stage, that people are picking up primary and secondary. And then it's not 50/50 it's 70/30, 90/10. Whatever the ratio is then just pick one. Amazon gets picked a lot for the leader. What's your vision and how do you see the multi-cloud playing out? As people start becoming more cloud operations based. >> My view, and people, we are in the first pitch in the first inning of this cloud and people say AWS is a 40 billion dollar run rate, how can that be? Because the money has always been and always will be with large enterprise. They are now just starting to move into the cloud. There's trillions of dollars of spend that's coming into public cloud. So, first off, it's very beginning, early days. Second thing is AWS has done incredibly well with the developers and the born in the cloud people. Enterprises, not so much. And, you know what? Microsoft kind of understands enterprises. So I think we're going to be set up for a little bit of battle here, and it's, by no means, over. So I think AWS recognizes that and every single enterprise that I have talked to says I may not be a third, a third, a third across all three of the big clouds. Maybe I'll have one primary, and I think Andy Jassy says that, which I kind of agree with. I think people will have a primary, but I don't think everyone's primary is going to be AWS. I think there's going to be a lot of Azure primaries. And even some Google primaries, probably more, and I think it will be a two horse race for that. But then they're going to use the other clouds because, I was just talking to a customer today. The signature recognition software runs better in Azure. They're an AWS customer, they're moving to Azure for this. Why, because that app runs better in Azure for some reason. I think people, particularly enterprises, will make that decision. >> All right, so I want to get your take on two things, first of all I agree with you. >> I think that's what will happen. >> I would agree with that, so let's just take this scenario. Amazon wins on capabilities, they're constantly adding new stuff everyday. So, if you're a builder, it's the ultimate tool shed for technology. Azure isn't there yet, they're trying to catch up as fast as they can, they're pedaling as fast as they can. But there's a build out level and then there's a consumption level. So there's having all that capability, but also the customer's consumption has to be addressed. Solutions packaging, ease of use. So delivery mechanisms for infrastructure in the cloud. The consumption, how I buy and use, is now a consideration. Or consumer experience or whatever you want to call it. What's your take on those two dynamics? >> I think you'll see, from AWS, I don't know this, but it has to be, because this is what enterprises want. The phrase 'Go Build' is great for an early adopter. You go tell that to an enterprise, here's the power tools, go build your house. They go, I'm going to cut my hand off. I don't want to go build anything, I want to consume. So I think you're going to see them changing their tune a little bit, because the markets evolved, and I think it's caught them a little bit by surprise as well. I think Microsoft, because they know the enterprise, they won't say 'Go Build'. They're going to say 'Come Consume'. And I think that's going to resonate with enterprises. Because, at the end of the day, they don't really want to do that. Now, either way, I think it's going to be a battle. That's where Aviatrix comes into play. We help enterprises, no matter what cloud you're on, across multiple clouds or one, actually consume services. So we abstract away all the details of those native services. >> Well, I would say, if you got to transform, you have to do some building, but it would have to be the easy kit. >> Steve: Yeah, I want the easy button, I mean. >> John: Paint by numbers. >> Yeah. >> John: Self-installing house. So I got your take on that. So you got a lot of buzz in the analyst community around a phrase I've heard you say. >> Steve: Which one is that? >> There's no more food left in the data center. >> Oh, okay, yeah. >> John: And the animals are leaving the data center. >> And that's right. >> John: Food being the supplier. >> The on-prem data center. >> John: The on-prem are money and the animals being the vendors. So if there's no food in the data center, what's happening? What does that mean? >> Steve: They're goin' through, the center of gravity has moved into the cloud, that's where the food is. So you're going to see a lot of cloud naive legacy vendors put cloud on things, right? It's the same crap they had, they're just going to put cloud on it because, like I said, what do animals do when they run out of food? They go find where the food is, right? If people get mad when I say that because data centers are not going away. I know that data centers aren't goin' away, but they're going to get quarantined like mainframes got quarantined. It's going to be an expense area, it's not going to be an investment. And what do you do with an expense? You quarantine it, you cap it, you hopefully keep it flat, or your reduce it. But, sure, the data centers are going to be around for a long time but all their market caps are based on big growth. And, where people are confused is, for the last five years, everybody said we are moving to cloud. But they were talking. So if you look over the last five years, all the people selling the on-prem have done very well. So, clearly, this whole cloud thing was a hoax, right? Because, for five years, you said it was coming and it hasn't, so therefore I'm good. The problem is you're good right up until you're not good and that just happened. >> And that's happening now in your opinion? >> That's happening now and your seeing it in peoples results, publicly. And they're washing it over. They're saying it's a temporary problem. I compensated the field wrong. Bullshit, I know what's going on and, you know what? There's going to be no hiding from that. >> Yeah, and the expansion's going to be in the cloud where the developers are building apps that drive top line. >> Steve: That's where all the investment's going. >> Okay so, there's a couple of major areas developing with the cloud dynamic. The cloud scale and now data tsunami and data scale. Diversity of data and all those things are happening. You can see that in the announcements. Large scale data, the data layer network, data ops, data as code, infrastructure as code, large scale, all that's great. But networking still becomes the fundamental problem. Jassy talked about it on stage. Hops to the network, they got this wavelength thing for 5G. That's really cool. All the kind of important things that are going on, is going on at the network. Same concepts being applied to a new architecture. >> Yeah. >> Your thoughts? >> Exactly right. One of our customers, I forget who it was, said a phrase to me that I love. Again I steal everything John. >> John: I steal from you. >> Yeah, he said the network comes first. I go that is perfect, I'm going to use that. In fact, actually it's on our website. The network comes first. Because when you're building up that infrastructure, in all of computing. Compute network and storage, what's the most important? Network by far. Why, because if the network isn't architected correctly, you're screwed for life. So you've got to get that right. So that's what everybody is doing right now. Is they look and they say strategically, we're going to go build a city. First thing I got to go and do is get the basic infrastructure, and the network comes first. That is the core of my basic infrastructure. If you get that wrong, life is bad for a long long time. That's what's going on right now. >> Okay, so you've had a great career, you got the CEO of Aviatrix going on. You're also looking at startups, you advise, been on boards. What's your view of the startup landscape if you're advising startups to go at this market, this trillion dollar enterprise market, the money's being thrown in the air and the money's in the middle of the table. How do they attack that money, how do they attack the marketplace? >> First thing, number one, you got to be cloud native. You have got to understand the basic native constructs of Azure, Google, AWS. You cannot be just this thing that plops on top of it, you got to be able to programmatically, program that infrastructure and leverage it. Because all of the hundreds of billions of dollars being spent, you want to use that, right. You don't want to have to go recreate that. So that, to me, is number one. And then number two, I think there's a lot of opportunity in the cloud. Everybody thinks AWS will do anything and everything you need in networking. That is a bunch of crap. There is so many limitations that they have for enterprises. Like hundreds of limitations. The beautiful thing with networking is you push one area, and ten other problems happen. So we've got 20 years of things to do to make networking better. So that's what we're going to do. But also at the edges, right? I would say where the interesting thing happens, is the interface between on-prem and cloud. So BGP, IOS, Cisco IOS, all the things that, because it's kind of like the virtual, the physical interface. It's the cloud to on-prem interface. There's still going to be an interface. >> John: You still need plumbing. >> Then there's still going to be an interface. That interface is where a lot of the complexity and friction comes. So whether it's IoT, edge computing type things, or things that we do of bringing that cloud in a seamless, kind of simple, automated way. Bringing on the on-prem into the cloud world in a very seamless way. >> John: So, I'm got to ask you a final question. You came out of retirement. You had the good life on boards, golfing, clipping coupons, going to the beach every day. Now you're the CEO of a company going grinding it out again. A lot of older ageism coming back into the biz. A lot of people who have been in the systems business. >> Steve: Oh yeah. >> A lot of people coming back into the game. Why did you come back, what was the main driver for you to come back out of retirement? >> 'Cause this is a thousand foot wave and it's ten times bigger than what I saw in client server. It's the biggest opportunity of value creation and innovation that I have ever seen and ever will see in my life. What's also fun is every single one of the customers that we are dealing with are all old guys like me. They're all 40s, 50s, 60s, it's the IT guys from 30 years ago that everyone left for dead. Everyone thought, oh it's the developer-led infrastructure, the developers are going to do everything, uh uh. This is IT, IT is coming back and saying thank you very much developer, we got it from here. This is serious business now. This isn't fun and games anymore. We're taking over. >> But it's serious IT, it's reborn IT, it's not the old IT. >> Not the old IT, they want to do it. It's the old guys. But they're enlightened guys and gals and they want to do it in the cloud way, with the simplicity and the automation. But yet I want to bring the functionality, visibility, and control that I had on-prem. I don't want to do it the old way. I want to do it the new way. Guy today I was just talking to a customer who said, I don't want to build my Dad's network. But he's 50 years old, he's my age, you know. And so, but I think that's the key, they're enlightened networking people, yet they have the 30 years of history of understanding the subtleties of BGP and networking. >> This was our chance to hear you in the Cube, we had such a great time, our team's awesome. It's our seventh year doing reInvent, eight years total of this conference. What's your take of Jassy's Keynote this year? Is this an inflection point? Is this one of those moments where you're going to look back and say this was a time that Amazon made a change, or gassed it extra hard? >> I think, my take is, look every year he says amazing things and every year is another step function. But I think this year will go down as the year that people will look back a couple of years from now and say that was the point, that it got serious, like really serious in terms of big enterprises coming in and I think it's going to send a message to the other public clouds, and a message to all the other enterprises that say hey, maybe I'm falling behind. When you see Goldman Sachs and you see banks are laggers to the cloud. They're not early adopters, they're laggers. You see that and you go well, wait a minute, maybe I'm missing out. I think it's going to actually accelerate because he's seeing it, you know. So I think it will go down as a big inflection point. >> John: Steve Mullaney, President and CEO of Aviatrix, who's going to, you'll be on Thursday to go over some of the stuff you guys do as a company. Appreciate the commentary, and great experience riding the wave. How high was that wave? >> A thousand foot. >> Thousand foot wave. We've been riding this wave for years. What a great time it is to be here at reInvent. Keep coverage, I'm John Furrier. We will be back with more coverage after this short break. Here in the Cube Intel Studios sponsored by Intel. Thanks to Intel for your generous contributions to making the Cube and supporting our mission. We really appreciate it. Thanks for watching, we've got the more coverage after this short break. (upbeat music) (upbeat music)

la from Las Vegas it's the cube covering AWS reinvent 2019 brought to you by Amazon Web Services and Vinum care along with its ecosystem partners hello everyone welcome to the cube we're here live in Las Vegas for AWS reinvent 2019 I'm John Farrar your host is silicon Angles flagship the cube we're extract a signal noise leader in event coverage with day Volante my co-host and justin warren tech analysts Forbes contributor guru of cube host guys keynote for J&E jassie first of all I don't know how he does it he's just like continues hissing Marc loved the live music in there but a slew of announcements this is a reinvention of AWS you can tell that they're just essentially trying to go the next level on what the cloud means how they're gonna bring it to customers and you know they've been criticized for you know kind of nut I won't say falling behind I could say Microsoft's been probably praised more for catching up and it's been a lot of discussion around that the loss of the Jedi contract variety of enterprise wins Microsoft has the field Salesforce Google's just kind of retooling but Amazon clearly the leader with a little pressure for the first time in the rearview mirror they've got someone on their on their tail win and Microsoft's far back but this isn't a statement from from chassis and Amazon of okay you want to see the Jets we're gonna we're gonna turn on the Jets and blow pass everybody Jesse gets cocky self Justin what do you think yeah so a lot of signaling to enterprise that it's safe to come here it's this is where you can have everything that you need to get everything that you need done you can get all of it in one place so there there is a real signal there to say Enterprise if you want to do cloud there's only one place to do cloud enterprise customers they tried out some big names Goldman Sachs not a small enterprise they had all the classic born in the cloud but you know we put out this concept on I'm on our Silicon angle post called reborn in the cloud almost born-again enterprise you start to see the telegraphing of what their core message is which is transform just don't kick the tires and fall into the Microsoft trap go with em is on and transform your business model transform your miss not just run IT a better way than before well yeah I mean I'm impressed they got two CEOs the CEO of Goldman Sachs David Solomon the CEO of Cerner coming to the show it's kind of rare that the CEO of your customer comes to the show I guess the second thing I'd say is you know Amazon is not a rinse and repeat company at these shows although they are when it comes to shock and awe so they ticked the Box on shock and awe but you're right John they're talking a lot about transformation I sort of think of it as disruption here's what I would say to that Amazon has a dual disruption agenda one is its disrupting the horizontal technology stack and 2 its disrupting industries it wants to be the platform of which startups in particular but also incumbents can disrupt industries and it's in their DNA because it's in Amazon's DNA and I think it's the last thing I'll say as Amazon is the reach a Amazon retailers the you can buy anything here store and now to your point Justin Amazon Web Services is you can get AWS anywhere at the edge and a little mini data centers that they're built on outpost and of course in the cloud all right I want to get you guys reactions a couple things I saw and I want to just analyze the keynote one as we saw Jesse come out with the transformation message that's really more of their posture to the market you should be transforming we're gonna take Amazon as a center of gravity and push it out to the edge without post so kind of a customer company posture there on the industry then you had the announcements and I thought that the sage maker studio was pretty robust a lot of data and announcements so you had the transformation message a lot of core data and then they kind of said hey we're open we got open source databases we got kubernetes and multiple flavors a couple steers from the Twitter crowd on that one and then finally outpost with the edge where they're essentially you know four years ago Dave they said no more data centers in ten years now they're saying we're gonna push Amazon to the your datacenter so you know a posture for the company a lot of data centric data ops almost program and build I'm also DevOps feel to it what's your reaction to that I think the most interesting part for me was the change there was a bit of a shift there I think he made the statement of rather than bringing the data to the computer we want to bring the compute to the data and I think that's that's acknowledging reality that data has gravity and it's very difficult for enterprises particularly if you've already invested a lot in building a data Lake so being able to just pick that up and then move it to any cloud nothing let alone AWS just moving that around is is a big effort so if you're going to transform your business you have to kind of rethink completely how you address some of these issues and one of that would be well what if rather than let's just pick everything up and move it to cloud what if we could actually do something a little bit better than that and we can pick and choose what we want to suit our particular solution and your point Dave I think that's where Amazon strength comes from is it they are the everything store so you can buy whatever you want be at this tiny little piece that only five companies need or the same thing that everyone else on the planet needs you can come and buy everything from us and that's what I think they're trying to signal to an organization that says look if you want to transform and you're concerned that it'll be difficult to do we've got you we've got something here that will suit your needs and we will be able to work with you to transform your business and we're seeing you know Amazon years ago we wouldn't talk about hybrid and now they're going really all-in on hybrid and it's not outpost is no longer just this thing they're doing with VMware it's now a fundamental piece of their infrastructure for the edge and I think the key point there is the the edge is going to be one with developers and Amazon is essentially bringing its development platform to the edge without posts as the the underpinning and I like the strategy much much better than I like what I'm seeing from some of the guys like HP and Dell which is they're throwing boxes you know over the fence with really without a strong developer angle your thoughts I mean my my big takeaway was I think this is key knows about a next-generation shift on the business model but that's the transformation he didn't come out and say it I said it in my post but I truly believe if you're not born in the cloud or reborn in the cloud you'll probably be out of business and as a startup were to ask them of the VCS this question how do you go after and target some of those people who aren't gonna be reborn in the cloud to have the scale advantage but the data announcements was really the big story here because we look at DevOps infrastructure as code programming infrastructure we've seen that that that's of now an established practice now you start to see this new concept around data ops some people call it AI ops whatever but Dana now the new programmability it's almost a devops culture - data and I think what got my attention the most was the IDE for stage maker which kind of brings in this cool feature of what everyone was which is I want machine learning but I can't hire anybody and I got to make I got a democratized machine learning I got to make application developers get value out of the data because the apps need to tap the data it's got to be addressable so I think this is a stake in the ground for the next five to ten years of a massive shift from increasing the DevOps mission to add a layer making that manageable multiple databases he's totally right on that it's not one database if you want time series for real-time graph for you know network constructs it's pick your database you know that shouldn't be it inhibitor at all I think the data story is real that's the top story in my mind the data future what that's going to enable and then the outpost is just a continuation of Amazon realizing that the center of the cloud is not the end game it's just the center of gravity and I think you gonna start to see edge become really huge I mean I count ten into ten purpose-built databases now and jesse was unequivocal he said you gotta have the right database tool for the right job you're seeing the same thing with their machine learning and AI tools it's been shocking dozens and dozens of services each with their own sort of unique primitives that give you that flexibility and so where you can disagree with the philosophy but their philosophy is very clear we're gonna go very granular and push a lot of stuff out there I think there's two bits at play there that I can see you know I think you're right on the data thing and something that people don't quite realize is that modern data analysis is programming like it's code your data scientists know how to code so there was a lot of talk there about notebooks going in there like they love their notebooks they love using different frameworks to solve different problems and they need to be able to use for this one I need tens of flow for another one I might need MX net yeah so if you couple that that idea that we need to it's all about the data and you couple that with developers and AWS knows developers really really well so you've got modern enterprises lot wanting to do more with the data that they have the age or business problem of I've got all this information I need to process I need to do be out bi I need to do data analysis and you couple that with the Pala that iws has with developers I think it's a pretty strong story then you know in my interview with Jesse I asked him the question and I stole the line from Steve Moe Mulaney from aviatrix you take the tea out of cloud native it's cloud naive and I think what I've been seeing is a lot of customers have been naive about what cloud is and it's actually been buying IT and so they really don't are not sensitive to the capabilities message so I asked Jeff see I'm like you got these capabilities that's cool if you want to go to the store and buy everything or look at everything and buy what you want and construct and transform check no problem I buy that however some customers just want a package solution and Amazon has not always been great on having something packaged for customers so he kind of addressed that and this might be an Achilles heel for Amazon as Microsoft has such entrenched sales sales presence that they might be pushing a solution that frankly customers might not care about capabilities we did see one bit where there was a little bit of a nudge towards is fees and and systems integrators and I think that that really for me is there needs to be a lot more work done by Amazon there because that's what Enterprise me enterprise is used to dealing with systems integrators that will help them to use the raw materials that ados provides to solve that promote you said there are two segments of developers and customers one that wants all the low level building blocks and others want simpler faster results with abstractions aka packaging so they're going down the road but again they're not shy don't like hey we're just going to continue to build we're not going to try to move off our trajectory they're gonna stay with adding more power and frankly some digs at snowflake I fought with red shift and I thought the dig to the kubernetes community with we code our own stuff wink wink we don't have to slow down was a nice jab at the CN CF I thought because he's saying hey you know what we're not in committees deciding features which is the customers and implementing them so a kind of a jab well sure that's gonna rapid a I would say the snowflake is sort of a copycat separating compute from stores that's what snowflakes has been doing forever but he did take direct jabs at IBM Oracle and obviously Microsoft with with Windows so I like to see that you know usually Jessie doesn't do that it's good take the gloves so much so many announcements out there you got to go to silk and angled comm will have all the stories but one of the top stories coming into the reinvent that we didn't hear anything about but if you squint through and connect the dots on Jessie's keynote it is pretty evident what the strategy is and that's multi-cloud so I'll see multi-cloud is a word that Amazon is not using at all onstage as you can tell they don't really they're in well they're one cloud they don't really care about the other clouds but their customers do so guys multi cloud is a legit conversation how they get multi cloud is debatable acquisition sprawl by the end of the day multiple clouds is reality I think Jessie was kind of predicting and laying down some early narratives around the multi cloud story by saying hey we have more capabilities we're faster we're doing more stuff so I think he's trying to cede the base on the concept of hey if you want to go look at other clouds try to go apples to apples NIT that other than that he didn't really address at all multi-cloud what do you guys think about multi cloud yeah what it's pretty much that if you're gonna have multiple clouds at least one of them's gonna be AWS so they're gonna get some of your money if we came a bi can't get all your money I'll get at least get some of your money that's reasonable but I think part of the multi cloud conversation is that enterprises are actually trying to clarify their existing way of doing things so cloud isn't a destination it's not like a it's not a physical location it's a state of mind it's a way of operating things an enterprise that that's that's the transformation part that enterprises are trying to do so transform the way that they operate themselves to be more cloud like so part of the multi cloud piece I think that people are kind of missing is well it's not just Amazon or some of its competitors its existing on-site infrastructure and making that into a cloud which i think is where something like outpost becomes a really strong proposition and I've said a million times multiplied cloud is more of a symptom than it is a strategy that'll start to change they will see an equilibrium there you know right cloud for the right job but today it's a problem that CIOs are asked being asked to clean up the crime scene all right let's wrap up by summarizing the keynote each of you guys give me your take on I'll start I think this was a inflection point for AWS and Jesse in the sense of they now know they have to go the next gen loud it's Amazon enterprise it's data it's outpost it's all these things it's truly next-gen I think this is going to be all about data it's all gonna be about large-scale infrastructure and data scaling and with edge and outpost I think is really an amazing move for them in the sense that's gonna probably put in motion another five to ten years of continuing architectural reshipping and I think that if you're not born in the cloud or reborn in the cloud you're gonna be naive to the fact that you're not gonna have the capabilities to be success when I think that's going to be an opportunity for entrepreneurs and for companies pivoting into enterprises so I think this goes will go might go down as one of the most pax keynotes but I think it'll look back as one of the instrumental transitions for Amazon so I think he did a good job beginning and to rush 30 announcements in three hours marathon but overall I thought he did a great job I think I would agree Jesse always does a good job he's giving a message to you know CEOs as opposed to the CIO and he had two CEOs on stage I thought there was quite a gap between you know that message of transformation and then sort of geeking out on all the new services so there's still some work to be done there but I think it's a lot of developers in the audience I'm seeing them tell your boss to get on the train it's a very hard keynote to serve both audiences but so it's a start but there's a lot of work to be done there Justin yeah I agree with that I think this is probably one of the first keynotes maybe last year but certainly this year there's like AWS is very serious about enterprise and is trying to talk to enterprise a lot more than it ever has it still talks to developers but we didn't see anywhere near as much interesting in kind of the startup ecosystem it's like no no cloud is for serious companies doing serious work and I think that we're just going to see Amazon talking about that more and more and more because that's where all the money is yeah next-generation cloud new architectures all about the enterprise guys this is the cube opening day for three days of wall-to-wall coverage keynote analysis from Andy Jessie and Amazon Andy Jessie will be on Thursday at 3 o'clock we got a lot of top Amazon executives will who'll help us open and unpack all these to make mega announcements stay with us for more cube coverage and go to Silicon angle comm cube net for the videos be back back after this short break [Music]

live from Washington DC it's the cube covering booby world 19 to you by booby welcome to the cubes coverage of boomy world 2019 I'm Lisa Martin with John Fourier John it's great to be back hosting gloomy world with you in DC this year last year in Vegas this year in DC a lot of government business a lot of public sector a lot of tech for good going on in the keynotes we will be continuing to take their culture expanding this cloud mindset and service model low code data integration unified platforms boomy verts a new introduction a lot of great announcements a great company I like I'm like I like gloomy I do too the energy here is great you know Lumi world 2018 was only 11 months ago John you mentioned we were in Vegas and they have added another 1500 plus new customers now there are over nine thousand customers in 80 countries 580 partners and customers are crossing every industry I had a great opportunity to speak with about a dozen boomy customers in the last week and their Bhoomi fandom it sounds kind of silly but it's really true what they have enabled their customers to achieve like this morning we heard from American Cancer Society for example Gilead leading hotels of the world is really enabling businesses to transform yeah you know day Volante and i we started covering the big data world in 2010 when we first started the cube you know one of the things that they observe and the research was that the value was going to be created and captured by practitioners not so much the vendor selling product at that point but it was cloud computing you know the theme of Bumi is business outcomes accelerated and the big trend that's driving it is that practitioners who are launching projects of either aanchal in the cloud or on-premise premises they're the ones who are getting the value out of it so what's happening is you're seeing with the ability to start projects quickly small projects and the number of projects a company has in their digital transformation is increasing this is the mega trend and from those projects whether it's a mobile app or a SAS solution or anything it's thrown off data so what's happening is you have this trend trend of more projects with the need to get them up and running fast getting to value and that is where Bumi's kind of hit their sweet spot because they got a platform that allows people to launch projects fast small medium or large projects and get them done quickly and that's throwing off value but from the value not only is the doubling down on those projects it's the data so the unification of the data and integrating it in it really kind of is Nirvana for a business owner a developer or an application because the platform allows that to happen and that's where this new world of Cloud 2.0 is kind of hitting its stride right now and that's why companies are getting the profitability and the old model of you know get growth at all costs and losses like we see on the public markets we work in other unicorns they're just investing to take territory and the profits aren't there because they're not enabling those kinds of outcomes so I think Bumi's in a nice spot I think is a nice portfolio for Dell to have this company I think this is gonna be the next pivotal I think what pivotal did with JAL technologies was a big part of their growth I think that and they were very successful in public then they ended up getting bought back by VMware and Dell technologies I think Bumi's the next rising star in the Dell technologies portfolio they won't say that publicly they won't say it on the record they won't even admit it privately but that's kind of what's going on well when we were at Dell technology's world Jon covering the cube with two sets for three days Michael talked about Michael Dell talked about Bumi as the number one cloud integration platform and as the iPad market has evolved in the last ten years you know it's gone from needing to connect cloud to on-prem unprimed edge and Bumi's uniquely positioned as this single instance multi-tenant cloud application delivered as a service and as Chris McNab CEO of Bhumi says who will be on momentarily with us our unfair advantage is our customers and the customers are all leveraging the platforms we just talked about the outcomes with the projects but here's the other advantage that bloomie has they have a anonymized data model where they get the benefit of the collective customer base so the collective data can give them better insights and companies that are successful that have gone public recently coppa software and others these guys are using the data create more advantage for their customers again this is one of those again nuance points but that's where the value is the value is in the day to date is the new software and this is where the advantage is interesting Michael Dell is interested in Bhumi I asked him around 2014 you know outside of VMware the crown jewel of Dell I said what are you interested in and he said pivotal and he was geeking out on pivotal because he saw the value of pivotal last year I asked Michael Dell what do you want sitting down and he said Bhumi I think he sees Bhumi as a key element in that bringing the glue together for the overall dealt with technology platform well there's a great story how when Dell was acquiring many companies not too long ago Gumi was really the center of that universe for facilitating these integrations you talk about data we talk about it John at every show customers do as well whether you're calling it the new oil gold the lifeblood currency of an organization if it is siloed in hundreds of applications and a business cannot trust where's my single source of truth its value cannot be harnessed and one of the things Bhoomi does really well with master data hub is to allow I think they said there they can connect now with over 1500 endpoints like Salesforce NetSuite for example allowing customers to synchronize data between applications dramatically transforming everything from customer our employee onboarding to a call center experience yeah I mean I think the digital transformation is a topic that's been talking about ad nauseam it's been kicked around become a cliche but we look at digital transformation it's people process and technologies and the process and technology side people have good visibility and what the options are out they get cloud you've got on-premise got a lot of software software-defined stuff but the people equation is interesting we were just at Red Hat's ansible Fest last week and in the automation space on the DevOps side the people are actually getting the outcomes that they need and that value piece and we were talking about that's the third leg of the stool of digital transformation so Dell tech Gee's has boomy which hits that spot directly the people here are achieving their outcomes that they want in their projects they're getting that value that energizes the people component and helps the cultural shift on digital transformation so I think the people aspect of what boom he's doing is super critical that is the the final chapter of digital transformation people process technology processes are up being automated the technology's there it's the people equation and they're doing it you're right they are doing it and that's hard a number of customers have Bumi's that I spoke with yesterday I talked about one of the main I always say to customers what were the business differentiators what were the technical differentiators and a lot of them will talk about Bumi's cultural alignment with their own culture as really standing out considerably against their peers you and I were talking before we went live about just the atmosphere in the keynote sort of some of the the tongue-in-cheek they are really people helping other people and you get that feeling but customers are talking as well about dramatic transformations to their productivity that they actually didn't even expect to get when they said we need to integrate a sales force with a transport management system for example and whoa suddenly we are saving whatever it's X number of clicks that really starts to snowball in terms of hours saved per person per month per year yeah I think what's interesting from the keynote today is there it builds on last year's boomy where we asked Chris port the CE OS variety and the CEO as well what their what their strategy was what they're investing in they said we're investing in the product and they continue to invest in the product and now with AI and The Voice integration voice enabled our voice accessible data sets you're starting to see that integration piece go another level I think that's interesting that sets the table for the AI stuff that they're doing and I think that's gonna be again leveraging that unified data set that to me is a big deal I think that's the top story here is that you starting to see a product focus using the data having those data integration points with voice and other mediums and if they can get that right then that's a nice automation layer that's gonna be where the next level of value for bloom he's gonna be created you know and their challenge is their small team they hired 750 people in q2 of this year they're hiring more people so can they kind of keep the rocket ship going on the customer growth and again it's a SAS business model it's a unified data set so I like this I like their their fundamentals so you talk about AI and one of the big announcements came out this morning that Chris McNabb CEO talked about with Accenture is what they're doing to partner together to enable conversational AI and one of the women from eccentric who was on stage will be joining us later today and I loved how she and Chris we're talking about you know we all interact with AI whether we're calling an ISP or some sort of call center and you're screaming agent into the phone because it's really starting to frustrate you one of the things that I had a mind shift on earlier this year while covering a show for the cube was hey that's actually our opportunity as regular folks on the street to help the models learn and train and what they showed today on that fun demo was how they're actually talking to be the boom I bought about looking at you know for example employee onboarding what percent complete is that what needs to be done and how can I actually use voice recognition to get other processes within the organization across business units done I do though think what about somebody like Meryl Streep who can do all these different accents when conversational AI comes up and it's gonna recognize your voices the footprint that was one thing I thought about these people that you know that have great ability to mimic accents gonna do well and they're as big as Amazon they can get the celebrities Amazon just kept Alexa as now the voices from celebrities I think it's pretty cool I think one of the things that I think is important to talk about in this keynote was the key my key takeaway was they hit the core themes unified data set which is their value multi-cloud global customers ecosystem partners low code developer environments are changing and developing fast and data integration this is the key areas of topics and what they announced here on stage was the voice accessible data services that secure and scalable more low code conversations projects are being deployed faster and this transformation journey and I think if I look at blew me outside of those strengths I just mentioned I think they're challenged lisa is going to be can they foster the ecosystem can they build those blocking and tackling things that they need to get done in the marketplace on the go to market how see the customer growth is there can they develop that ecosystem once that ecosystem is developed then you're gonna see more more action there but it's still small then they got to do some more work I think the momentum is there and we should definitely point out that we are in DC which is symbolic for a be me just a few weeks ago in August they announced FedRAMP authorization they are one of not the first but one of the first iPad vendors in the a in the FedRAMP marketplace but something that that Chris McNabb and look at my notes here said this morning was they were the first iPads vendor to get certified in five months and their competitor I have a feeling I know who it is took 18 months so they're proud of that that really but he also said in something that we can unpack with Chris McNabb a little bit later today is that the federal certification the availability in the marketplace opens up even more opportunities not just for federal from a security from a privacy perspective yeah this is a big this is a big story I think this is gonna be a subtext because they're well they're another announcements but that FedRAMP certification in record time as you pointed out it's significant for a couple of reasons we've been following the government transformation since the CIA deal of AWS and the recent jedi contract which we've been talking a lot about really points to the modernization of the government and the procurement and the government is going through its own transformation and the ones that are being successful the ones that have all the attributes that boom he has cloud-based unified data sets security built in these are the fast track to the modern infrastructure that's what the government's doing so I'm expecting a lot of DC business I think it's kind of not a flu that they're in DC here for a reason they're here to do some business they're doing work with the veterans they're doing work with American Cancer Society other things but the government I think they're gonna do a lot of government business because once they get that certification that's going to open up a ton of business and we've seen the government is leaning towards modern architectures not the old-school Oracle's of the world so you know that is definitely changing and I think they're in a good position you brought up American Cancer Society and veterans two things that we're nearing dear to my heart and it was great see one how boomy is working with American Cancer Society their CIO was on stage he will be joining you and I this afternoon about how they are leveraging Bhumi for I think they call it service match to match cancer patients with uber and lyft drivers to get people to their treatment in back and how that was enabled by Bhumi I just thought was was the story that will resonate with every single person regardless of where you live what industry that you're in that's transformative and that's such a service that is so critical well that's that points to the validation of the trend we were just talking about that at the beginning was the trend about getting projects off the ground isn't about some IT department it could come from someone who sees an opportunity to solve a problem in the business or their mission in this case your example this is huge because the time to value is faster so it's not an IT lead thing it's a business or mission driven outcome so throwing an app together and and mashing up you know GPS and other things to provide value that's where the action is that's why there's so much action in cloud that's why boom he's doing so well because they're hitting that mark right there doesn't it's not hard to do you know time to value can be one of those as a marketer how do you actually measure that but we're seeing roles exactly it works seeing that in so many different use cases of themI in so many different industries whether it's American Cancer Society or Sky powering Internet and services for customers elisa listen this is this is a big thing that people always whitewash and they try to hide the ball on and we're now living in a transparent era of a modern infrastructure and these applications you cannot hide the ball on success it's either has value or a dozen as valuating throwing off revenue because people pay for value and if it's being used from a mission standpoint that's undeniable so what's happening now is that the new kpi's our success can be defined and you you haven't helped KPIs and dashboards and say hey are people paying for it boom top-line revenue bottom line profit usage on apps so there's no more you know people fudging the numbers or trying to hide the ball on whether a project was successful that this is a gonna change the landscape significantly it is and we're gonna unpack all of that today John we've got a whole bunch of the booming on today some partners and some customers as well so guys stick with us John and I have a grateful day packed Lisa Martin with John Fourier you're watching the cube from booming world 19

>> Announcer: Live from Orlando, Florida it's theCUBE covering Accelerate19. Brought to you by Fortinet. >> Welcome to theCUBE's coverage of Fortinet Accelerate 2019 live from Orlando, Florida. I'm Lisa Martin with Peter Burris. Peter, it's great to be with you our third year co-hosting Accelerate together. >> Indeed, Lisa. >> So we moved from, they've moved from Vegas to Orlando, hence we did so we had a little bit of a longer flight to get here. Just came from the Keynote session. We were talkin' about the loud music kind of getting the energy going. I appreciated that as part of my caffeination (laughs) energy this morning but a lot of numbers shared from Fortinet Accelerate. 4,000 or so attendees here today from 40 different countries. They gave a lot of information about how strong their revenue has been, $1.8 billion, up 20% year on year. Lots of customers added. What were some of the takeaways from you from this morning's keynote session? >> I think it's, I got three things, I think, Lisa. Number one is that you've heard the expression, skating to where the puck's going to go. Fortinet is one of those companies that has succeeded in skating to where the puck is going to go. Clearly cloud is not a architectural or strategy for centralizing computing. It's a strategy for, in a controlled coherent way, greater distribution of computing including all the way out to the edge. There's going to be a magnificent number of new kinds of architectures created but the central feature of all of them is going to be high performance, highly flexible software-defined networking that has to have security built into it and Fortinet's at the vanguard of that. The second thing I'd say is that we talk a lot about software defined wide-area networking and software-defined networking and software-defined infrastructure and that's great but it ultimately has to run on some type of hardware if it's going to work. And one of the advantages of introducing advanced ACICS is that you can boost up the amount of performance that your stuff can run in and I find it interesting that there's a clear relationship between Fortinet's ability to bring out more powerful hardware and its ability to add additional functionality within its own stack but also grow the size of its ecosystem. And I think it's going to be very interesting over the next few years to discover where that tension is going to go between having access to more hardware because you've designed it and the whole concept of scale. My guess is that Fortinet's growth and Fortinet's footprint is going to be more than big enough to sustain its hardware so that it can continue to drive that kind of advantage. And the last thing that I'd say is that the prevalence and centrality of networking within cloud computing ultimately means that there's going to be a broad class of audiences going to be paying close attention to it. And in the Keynotes this morning we heard a lot of great talk that was really hitting the network professional and the people that serve that network professional and the security professional. But Fortinet's going to have to expand its conversation to business people and explain why digital business is inherently a deeply networked structure and also to application developers. Fortinet is talking about how the network and security are going to come together which has a lot of institutional and other implications but ultimately that combination of resources is going to be very attractive to developers in the long run who don't necessarily like security and therefore security's always been a bull time. So if Fortinet can start attracting developers into that vision and into that fold so the network, the combined network security platform, becomes more developer-friendly we may see some fascinating new classes of applications emerge as a consequence of Fortinet's hardware, market and innovation leadership. >> One of the things that they talked about this morning was some of the tenets that were discussed at Davos 2019 just 10 weeks ago. They talked about education, ecosystem and technology, and then showed a slide. Patrice Perche, the executive senior vice president of sales said, hey we were talking about this last year. They talked about education and what they're doing to not only address the major skills gap in cybersecurity, what they're doing even to help veterans, but from an education perspective, rather from an ecosystem perspective, this open ecosystem. They talked about this massive expansion of fabric-ready partners and technology connector partners as well as of course the technology in which Ken Xie, CEO and founder of Fortinet, was the speaker at Davos. So they really talked about sort of, hey, last year here we were talking about these three pillars of cybersecurity at the heart of the fourth industrial revolution and look where we are now. So they sort of set themselves up as being, I wouldn't say predictors of what's happening, but certainly at the leading edge, and then as you were talking about a minute ago, from a competitive perspective, talked a lot this morning about where they are positioned in the market against their competitors, even down from the number of patents that they have to the number of say Gartner Magic Quadrants that they've participated in so they clearly are positioning themselves as a leader and from the vibe that I got was a lot of confidence in that competitive positioning. >> Yeah and I think it's well deserved. So you mentioned the skills gap. They mentioned, Fortinet mentioned that there's three and a half million more open positions for cybersecurity experts than there are people to fulfill it and they're talking about how they're training NSEs at the rate of about, or they're going to, you know, have trained 300,000 by the end of the year. So they're clearly taking, putting their money where their mouth is on that front. It's interesting that people, all of us, tend to talk about AI as a foregone conclusion, without recognizing the deep interrelationship between people and technology and how people ultimately will gate the adoption of technology, and that's really what's innovation's about is how fast you embed it in a business, in a community, so that they change their behaviors. And so the need for greater cybersecurity, numbers of cybersecurity people, is a going to be a major barrier, it's going to be a major constraint on how fast a lot of new technologies get introduced. And you know, Fortinet clearly has recognized that, as have other network players, who are seeing that their total addressable market is going to be shaped strongly in the future by how fast security becomes embedded within the core infrastructure so that more applications, more complex processes, more institutions of businesses, can be built in that network. You know there is one thing I think that we're going to, that I think we need to listen to today because well Fortinet has been at the vanguard of a lot of these trends, you know, having that hardware that opens up additional footprint that they can put more software and software function into, there still is a lot of new technology coming in the cloud. When you start talking about containers and Kubernetes, those are not just going to be technologies that operate at the cluster level. They're also going to be embedded down into system software as well so to bring that kind of cloud operating model so that you have, you can just install the software that you need, and it's going to be interesting to see how Fortinet over the next few years, I don't want to say skinnies up, but targets some of its core software functionality so that it becomes more cloud-like in how it's managed, its implementations, how it's updated, how fast patches and fixes are handled. That's going to be a major source of pressure and a major source of tension in the entire software-defined marketplace but especially in the software-defined networking marketplace. >> One of the things Ken Xie talked about cloud versus edge and actually said, kind of, edge will eat the cloud. We have, we live, every business lives in this hybrid multi-cloud world with millions of IoT devices and mobile and operational technology that's taking advantage of being connected over IP. From your perspective, kind of dig into what Ken Xie was talking about with edge eating cloud and companies having to push security out, not just, I shouldn't say push it out to the edge, but as you were saying earlier and they say, it needs to be embedded everywhere. What are your thoughts on that? >> Well I think I would say I had some disagreements with him on some of that but I also think he extended the conversation greatly. And the disagreements are mainly kind of nit-picky things. So let me explain what I mean by that. There's some analyst somewhere, some venture capitalist somewhere that coined the term that the edge is going to eat the cloud, and, you know, that's one of those false dichotomies. I mean, it's a ridiculous statement. There's no reason to say that kind of stuff. The edge is going to reshape the cloud. The cloud is going to move to the edge. The notion of fog computing is ridiculous because you need clarity, incredible clarity at the edge. And I think that's what Ken was trying to get to, the idea that the edge has to be more clear, that the same concepts of security, the same notions of security, discovery, visibility, has to be absolutely clear at the edge. There can be no fog, it must be clear. And the cloud is going to move there, the cloud operating model's going to move there and networking is absolutely going to be a central feature of how that happens. Now one of the things that I'm not sure if it was Ken or if was the Head of Products who said it, but the notion of the edge becoming defined in part by different zones of trust is, I think, very, very interesting. We think at Wikibon, we think that there will be this notion of what we call a data zone where we will have edge computing defined by what data needs to be proximate to whatever action is being supported at the edge and it is an action that is the central feature of that but related to that is what trust is required for that action to be competent? And by that I mean, you know, not only worrying about what resources have access to it but can we actually say that is a competent action, that is a trustworthy action, that agency, that sense of agency is acceptable to the business? So this notion of trust as being one of the defining characteristics that differentiates different classes of edge I think is very interesting and very smart and is going to become one of the key issues that businesses have to think about when they think about their overall edge architectures. But to come back to your core point, we can call it, we can say that the edge is going to eat the cloud if we want to. I mean, who cares? I'd rather say that if software's going to eat the world it's going to eat it at the edge and where we put software we need to put trust and we need to put networking that can handle that level of trust and with high performance security in place. And I think that's very consistent with what we heard this morning. >> So you brought up AI a minute ago and one of the things that, now the Keynote is still going on. I think there's a panel that's happening right now with their CISO. AI is something that we talk about at every event. There are many angles to look at AI, the good, the bad, the ugly, the in between. I wanted to get your perspective on, and we talked about the skills gap a minute ago, how do you think that companies like Fortinet and that their customers in every industry can leverage AI to help mitigate some of the concerns with, you mentioned, the 3.5 million open positions. >> Well there's an enormous number of use cases of AI obviously. There is AI machine learning being used to identify patterns of behavior that then can feed a system that has a very, very simple monitor, action, response kind of an interaction, kind of a feedback loop. So that's definitely going to be an important element of how the edge evolves in the future, having greater, the ability to model more complex environmental issues, more complex, you know, intrinsic issues so that you get the right action from some of these devices, from some of these censors, from some of these actuators. So that's going to be important and even there we still need to make sure that we are, appropriately, as we talked about, defining that trust zone and recognizing that we can't have disconnected security capabilities if we have connected resources and devices. The second thing is the whole notion of augmented AI which is the AI being used to limit the number of options that a human being faces as they make a decision. So that instead of thinking about AI taking action we instead think of AI, taking action and that's it, we think of AI as taking an action on limiting the number of options that a person or a group of people face to try to streamline the rate at which the decision and subsequent action can get taken. And there, too, the ability to understand access controls, who has visibility into it, how we sustain that, how we sustain the data, how we are able to audit things over time, is going to be crucially important. Now will that find itself into how networking works? Absolutely because in many network operating centers, at least, say, five, six years ago, you'd have a room full of people sitting at computer terminals looking at these enormous screens and watching these events go by and the effort to correlate when there was a problem often took hours. And now we can start to see AI being increasingly embedded with the machine learning and other types of algorithms level to try to limit the complexity that a person faces so you can the better response, more accurate response and more auditable response to potential problems. And Fortinet is clearly taking advantage of that. Now, the whole Fortiguard Labs and their ability to have, you know, they've put a lot of devices out there. Those devices run very fast, they have a little bit of additional performance, so they can monitor things a little bit more richly, send it back and then do phenomenal analysis on how their customer base is being engaged by good and bad traffic. And that leads to Fortinet becoming an active participant, not just at an AI level but also at a human being level to help their customers, to help shape their customer responses to challenges that are network-based. >> And that's the key there, the human interaction, 'cause as we know, humans are the biggest security breach, starting from basic passwords being 1, 2, 3, 4, 5, 6, 7, 8, 9. Well, Peter-- >> Oh, we shouldn't do that? >> (laughs) You know, put an exclamation point at the end, you'll be fine. Peter and I have a great day coming ahead. We've got guests from Fortinet. We've got their CEO Ken Xie, their CISO Phil Quade is going to be on, Derek Manky with Fortiguard Labs talking about the 100 billion events that they're analyzing and helping their customers to use that data. We've got customers from Siemens and some of their partners including one of their newest alliance partners, Symantec. So stick around. Peter and I will be covering Fortinet Accelerate19 all day here from Orlando, Florida. For Peter Burris, I'm Lisa Martin. Thanks for watching theCUBE. (techno 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. (audience applauding) (upbeat music) ♪ Ba da bop bop bop ♪ ♪ Ba da bop bop bop ♪ ♪ Ba da bop bop bop ♪ ♪ Ba da bop bop bop ♪ ♪ Ba da bop bop bop ♪ ♪ Ba da bop bop bop ♪ ♪ Ba da bop bop bop ba do ♪

>> From Orlando, Florida, it's theCUBE. Covering SAP SAPPHIRE NOW 2018. Brought to you by NetApp. >> Welcome to theCUBE, Lisa Martin with Keith Townsend. We are just wrapping up day two at SAP SAPPHIRE 2018. Keith, this event is enormous. We were just comparing our step goals. This event size is 16 American football fields. Enormous, 20,000 people. I think, combined, we have around 15,000 steps today. >> That sounds about right. >> Quite a few of them go to your longer legs than mine but this event is really been incredible, the energy that SAP's CEO Bill McDermott kicked off with yesterday morning has really been carried through this event and with our guests on the show for the last two days. >> No, we did 23, 24 interviews and every last one of them was high-energy. The guests were extremely excited about the products, the solutions, and the problems they're solving for, not just enterprise, but for society. I thought that was a really great theme of the guests today specifically. >> It's amazing, and you talk about, you know, the impact on society and SAP wants to be one of the top world's most valuable brands like Apple, Google, Coca Cola, who are all customers of SAP's and who all sell products that we can interact with, that we can taste, you know, Mercedes Benz, we can drive. They've got this invisible software product. They've been around for 46 years. And to your point, the stories that we have heard about how these invisible product, products, are transforming industries, are saving lives, was really something that I did not expect. >> Well when you make a great product that impact lives or... I compare it to making great content. theCUBE makes great content, that content would be found, people would take notice, you make a great product that impacts people's lives. It's no wonder that SAP is near the top of that brand recognition, brand value, 17th on the list. If they continue to do that, if they become the product, the ERP solution that you can talk to and you can ask a question, you know, not just business questions of what were the numbers the last quarter for Chicago, but you can ask a question, you know what, where is the best place to take my family to live in Eastern Europe during the summer months? That becomes value-add that people wouldn't be able to ignore. >> They've done a tremendous job building this partner ecosystem. There were hundreds of partner sessions alone. We've heard from a lot of their partners. We're in the NetApp booth, thanks to NetApp for having theCUBE here. NetApp is a customer and a partner of SAP and we heard a lot about how SAP is transforming to the cloud dramatically with the help of this massive partner ecosystem. >> You know what, we've had Microsoft, Fujitsu, SAP, NetApp, Nvidia, the list goes on and on of customers and partnerships of examples of companies that have come together and they've been consistent. In some areas, obviously Microsoft competes with SAP. In some areas, Microsoft competes with NetApp. But they recognize that without these alliances, without these partnerships, they can't solve these large, complex problems of ridding parts of Africa with mosquitoes. SAP can't do that by themselves. Microsoft can't do that by themselves. And this week was a great acknowledgement and a example of how the ecosystem works. >> They also talked a lot at this event about the intelligent enterprise where it's, you know, it's not just about digital transformation as table stakes. Companies that do it well have, or are working towards getting, this true 360-degree view of the customer which is essential. They talked about enabling that via certain things that they're leading in, or pioneering, which is connecting the demand chain and the supply chain. They really talked about enabling this new, this current SAP that's built for this fourth generation customer experience. Our lives as consumers have dramatically influenced business. We expect to have the ability to, you know, try and buy an app if we want it, right? And they're using that model very well to give customers in many industries, they have 390,000 customers, choice and flexibility. And the partner ecosystem is just part of that flexibility that they have to give. And they do a great job of listening to their customers who really are helping with a lot of the co-development in a very symbiotic way. >> Yeah, SAP is reentering this people-centric view of ERP, CRM, of data, saying that their relationship is about people. Bill McDermott spent a lot of time talking about trust. One of the reasons why people trust the brand of theCUBE is because we're on the ground, we're talking to the users, we're talking to the people. People can reach out and touch and feel you, there's a personal relationship between that brand and the community. The same thing with, got the same feel for what SAP is trying to do of, you know, obviously with over 20,000 people, I dunno if the number is 21,000, 22,000, but more than 20,000 people, a million people online watching the event, SAP the serious about this C/4HANA move, of being able to say, you know what, we are going to create a ecosystem of trust. We talked about trust with the app center and being able to validate applications on the platform. SAP has long been one of those companies that's serious about their partnerships and validation and certification of platforms. So whether it's HCI, storage with NetApp, the deep relationship with NetApp, SAP is going to put its brand upfront and say that if you're going to engage with one of our partnerships, there's a transient trust that goes from SAP to their partners. >> And we talked with a number of folks working in different groups within SAP focused on the customer. This morning we had on their Chief Customer, a guy from their Chief Customer Office who talked about these, kinda top 100 strategic accounts that they partner with who then also they take that information, those learnings and don't just improve the technologies but they also use them to influence much greater than a hundred customers. They're strategically utilizing that data. We talked yesterday with one of the gentlemen running the SAP four, S/4HANA community rather, and the Leonardo community and the amount of engagement that they have in that community, especially in Leonardo which has only been around for a year. The customer engagement is key but also their reaction to it, and I would say even, I think we heard a lot of how they're being proactive with creating content and enabling their customers to be able to learn at the same time as they're learning from their customers. >> Yeah some hero numbers that we heard this week: 6,000 people in that HANA, the S/4HANA community. While the Customer Success Group focuses on the top 100 customers, there were, I think 38,000 people following the Twitter account, so there's obviously outreached stretch. The Leonardo and S/4 communities have created a thousand videos on how-to. So obviously the impact of and the reach of SAP has ambitions of not just raising brand awareness and getting into that Top 10 with Apple and Google, they also have the ambitions of becoming a platform, a ecosystem. You know, we look at Microsoft as kinda one of the ultimate platform companies. Microsoft partners make more money off of Windows than Microsoft makes off of Windows. SAP seems to have the same goal of their partners, there's a hundred partners on the show floor, that should generate more revenue than SAP which would be impressive. SAP, I looked the other day, $136 billion market capital, not a small company at all. >> So you have an interesting perspective, for many reasons, but one you've run large SAP infrastructures before. And here you are now at SAPPHIRE from the press and media, the analyst perspective. What are some of the things that really surprised you in all of your experience as a user of SAP to now covering it from this angle. >> You know what, I don't know if it was a year ago. It was not even a full year, my anniversary for running my company is August. So less than a year ago I ran SAP for a large pharmaceutical. And we're in the throes of selecting where our next platform was gonna be hosted. Cloud was a possibility and it is amazing how the conversations have changed from my peers a year ago, or a year and a half or even a year ago, to now to how readily acceptable customers are of running mission-critical, the core of the business, 77% of the world's transactions, we heard today, goes through SAP, how willing customers are at running those work goals in the cloud. Second piece, which was probably a proof point, how much SAP has improved SAP in the cloud. SAP has marketed SAP HANA and SAP as cloud-ready applications, it was more of something that you... I took legacy application, I installed it on VMs in the cloud, cloud-ready. No we've given examples from the hyperscalers, specifically Google, of how, and Microsoft of how, customers are coming whipping their credit card up, spinning up instances of HANA, spinning them down. Google talked about how you can migrate your whole ECC on HANA to the cloud within 30 minutes to two hours, amazing movement in cloud. I think it's by far my biggest surprise coming to this show. I didn't expect SAP to accelerate their cloud adoption as fast as they have. >> I'm curious to your thoughts too about simplicity, simplicity of message, you know, what's their best-run businesses campaign? Best-run businesses run on SAP. Simplicity has long been part of their messaging. As we look at the SAP cloud platform and some of the announcements there today and you look at, they've got Ariba, and Concur, and Fieldglass, and SuccessFactors, with the C/4 announcement from yesterday, what is your impression on, have they been able to sort of simplify and kind of reduce customer confusion in terms of this breadth of products and technologies that SAP now delivers? >> You know, SAP is a big company and they have a lot of products. They've been around for 46 years. You know, we didn't talk about any legacy database stuff. They still own Siebel so they still own a traditional database company. It's easier said than done to simplify the message. When you come to... You know, we talked to interviewee after interviewee, customers are still overwhelmed when they look at a overall problem. They can even identify SAP as the potential partner to solve it, but 300 products is still 300 products. It's very... You can help simplify the message by throwing those products in categories, sales force, which product you lead with, so new customers, you know, sales force will help you with that. Traditional customers that don't have deep relationships with their sales force and solution providers, maybe, I think there's still a little difficulty around understanding the messaging around all of 300 products. I mean, it's 300 products. >> Well, there's always work to be done and well we have... There was a lot of product announcements, a lot of energy, and evangelicalism that you and I heard consistently throughout the event and on-set here. A third area that I think really struck me is, SAP has been very vocal about having an initiative to raise the profile of women in technology. They did an excellent job of getting women onstage during both keynote sessions, yesterday and today. From their CMO, Alicia Tillman, to Lindsey Vonn and a whole suite of women Olympic athletes that were yesterday in the general session, to some of the women that were doing some of these outstanding demos and I, I really tip my hat to SAP because for being as large and as lengthy of an incumbent as they are, they're really able to focus on some of these key areas and we at theCUBE love to cover that because it's something that really needs consistent awareness. >> Well, I dunno if people would notice but we probably, both of us, are very vested in diversity and Silicon Valley, in general, is always appreciated when companies go, not just acknowledge the challenge of diversity, it is a very, very difficult problem. It's probably one of the most difficult problems in our industry. So to actually put some meat on a bone, announce the problem, announce the challenge, and go forth and put, you know, obviously, extremely capable women and minorities in the forefront. >> Yeah. Well Keith, always a pleasure hosting with you. Thanks so much for working with me the last couple of days, it's been-- >> I always enjoy it. >> I do too. It's really been a really fun, energetic show so thanks for all of your help. >> Thank you. >> Keith and I wanna thank you for watching theCUBE. Lisa Martin for Keith Townsend, we're from SAP SAPPHIRE 2018. Thanks for watching. (energetic music)

>> Narrator: Live from Austin, Texas, it's The Cube covering DockerCon 2017 brought to you by Docker and support from its ecosystem partners. (upbeat tech music) >> Hi, I'm Stu Miniman and this is SiliconANGLE Media's The Cube. We're the worldwide leader in enterprise tech coverage. Happy to be coming to you from DockerCon 2017 here in the Austin Convention Center of course in Austin, Texas. My host for the next few days will be Jim Kobielus, Jim thank you so much for joining us. >> It's great to join the team. >> Alright, so we'll get to you in a second, Jim, but first of all, it is the fourth year of the DockerCon show Docker The Company, just celebrated its fourth year of existence, CEO Ben Golub started off the keynote Founder, CTO, Chief Product Guy, Solomon Heights, introduced a bunch of opensource initiatives, did a bunch of demos, the first DockerCon event back in 2014, I actually had the pleasure of attending, was my favorite show of that year, I got to hear some of these HyperScale guys talk about how they were using containers, how Google spins up and spins down two billion containers in a week and there were about 400 people there and Docker, the company, was 42 people. Fast forward to where we are today in 2017, Docker, the company, I believe is 320 people, there is over 5,500 people here, you can see 'em all streaming in behind me here as the Keynote just let out, so, we've got two full days here of coverage. This morning, we're going to go through a little bit of the news, talk about who we're going to cover, but first of all, I want to introduce you to Jim Kobielus, so John Furrier sends his regards to the community, he's real sorry he couldn't make it out, just had some things came up at the last minute, so he couldn't come, but stepping in for him with lots of knowledge and experience is Jim, so Jim, please, for our audience that hasn't gotten chance to see, you did some intro videos with our crew out in our 4,500 square foot Palo Alto studio at the beginning of the month, but why don't you tell 'em what brought you to the SiliconANGLE Media team, your background, and what you're going to be doing. >> Great, yeah, thanks Stu. Yeah, I've joined just recently in the last few weeks, I am Wikibon's lead analyst for application development as well as data science and deep learning. I create data science and the development of artificial intelligence as a huge and really one of the predominant developer themes now in the business world and really much of that that's going on in business in terms of development of the AI applications is in the form of microservices in containerized format for deployment out to multiclouds and increasingly serverless computing environments. So, I am totally pumped and excited to be at DockerCon and there were some great announcements this morning, I was very impressed that this community is making great progress, both on the sheer complexity and sophistication of the ecosystem, but on just the amount of support for Docker technology, for Kubernetes and so forth for the full range of technologies that enable containerized application development. Hot stuff. >> Yeah, Jim, and you talked about things like community and ecosystem and that was definitely the theme here day one. Docker did some changing in their packaging since we were at the show last year. They now have Docker CE which is the community edition. Focus on the developers and today was developer day. I'm pretty sure everything that was announced today is opensourced, it's in there, it's in the free version. I expect tomorrow we'll probably hear more about EE, it's the Enterprise Edition >> Enterprise, yes. >> A question I know we all have is how is the monetization of what Docker's doing progressing, the press and analyst dinner last night, I heard from a Docker employee and said look, we all understand, we are the early days of the monetization of Docker, but Solomon, this morning, said really, the success of Docker the company is tied directly to the ecosystem. We've got Microsoft coming on today, we've got Sysco, Oracle, lots of partners coming on this week talk about what Docker's doing, what's happened in opensource is going to help a broad ecosystem and all, not just the developers, but enterprises and the companies, so, what are you looking at this week, what are you hoping to come out of, what grabbed you from the Keynotes this morning? >> Well, grabbing from the Keynotes this morning is the maturation of the containerized Docker ecosystem in the form of greater portability, in terms of the LinuxKit announcement, we'll get to that later, as well as great customization capabilities to the Moby project. This is just milestones in the development and maturation of a truly robust ecosystem of innovation, really, what Docker's all about now that it's a real platforms company, is helping its partners to be raving successes in this rapidly expanding marketplace, so, that's what I see, the chief themes so far of this today. >> Yeah and it's interesting, one of the things we've always looked at Docker is like what does the opensource community do, what does the company do, what's the co-opetition play? Two years ago at the show in San Francisco, there was taking the container run time and really making sure that's opensource. You had the CoreOS guys and the Docker guys hugging. I got a picture of Ben Golub and Alex Polvi standing together and it was like oh, okay, that little cold war was over. LinuxKit is something we're going to look at, they lined up some really good partners. We got Intel, Microsoft, HPE, and IBM, but, we're going to talk to Red Hat and Canonical and see what they think about this because from the Linux guys, I've been hearing for the last couple of years, well, Linux really is containers. It's all just something that sits on top and containers, of course, is the Windows variant now, too, but you just buy your Linux and Containers comes with it and now, we say oh, we've got LinuxKit which is, I'm going to have a distribution that's fast, optimized, four containers that Docker and that ecosystem they're building's going to do. >> Same as everywhere, I mean Ben Golub laid it out maybe with Solomon this morning. Containers are really the predominant packaging of applications large and small across increasingly not just traditional enterprise and consumer applications but also the internet of things, so, but internet of things and the development of AI for the IOT is a huge theme that I'm focusing on in my coverage for Wikibon. I see a fair amount of enablers for that here. >> Great, and Jim, and absolutely, there was a big slide with Docker will be where you need to be, so, whether you're in the public cloud, of course, there's container services from, we've got Amazon ECS right here. You've got what's going on with Google and their containers. Microsoft Badger of course, so, there's so many pieces, so, a lot we're going to go through, we've got a full slate of interviews, of course, everybody can watch here at SiliconANGLE TV. If you want to participate in social conversation, John Furrier's actually been banging away, it's CrowdChat.net/DockerCon is where we're having some of the social conversations, of course, you can always reach out, I'm just @Stu on Twitter, Jim is @JamesKobielus which you'll see on the lower third when we put him up here is where he is on Twitter, if you're at the Expo Hall, you'll see the Expo Hall's behind us, we're just in the corner of the Expo Hall, going to be here for two days. Jim, I want to give you the final word on our intro here, come to the end of the day, what do you hope to have walked away with? >> Well, I hope to walk away with a more rich and nuance understanding of this ecosystem and the differentiators among the dozen upon dozens of companies here. Partners of Docker. Really what I see is a huge growth of the Kubernetes segment in terms of orchestration, scaling, of cluster management for all things to do with, not just Docker, but really Container D, which, of course, Docker recently opensourced, it's core container engine. I think this is totally exciting to see just the vast range of specialty vendors in the area providing tools to help you harden your containerized microservices environment for your CloudNative computing environments, that's what I hope to take away. I'm going to walk these halls when I'm not physically on The Cube and talk to these vendors here, exciting stuff, innovation. >> Yeah, absolutely, and you gave us so many pieces there, Jim. You mentioned Kubernetes, of course. There is that little bit of do I use Dockers Forum or do I use Kubernetes? Docker, of course, would like you to use Forum, that's what they're >> And in fact, that was an excellent discussion this morning about swarms advantages as well. I don't want to make it sound like I'm totally shifting towards Kubernetes in terms of my preferences. I mean, clearly, it's a highly innovative and dynamic space, so, Docker is making some serious investments and beefing up their entire enterprise stack including Swarm. >> Where I wanted to go, actually, with that is the Moby project actually is one of those things I saw as a nice maturation of what we hear from Docker. For the first couple of years, Docker said batteries are included but swapable, which means things like Swarm are going to make it in there, but you could use an alternative, so you want to use Kubernetes, go ahead and that's fine and Moby has allowed them to take all the components that are opensource. People inside Docker can work on them, people outside can collaborate them, much more modular. Reminds me of how when we talk about how development teams work, it's those two pizza teams, Docker has them internal, they're pulling more people in, how is that opensource collaboration going to expand? Scalability, I think, is the word that I heard over and over again in the Keynote. Scaling of the company, scaling of the products, scaling of the ecosystem, so something more interesting, say, we've been scaling our operations and we got two full days here of coverage so make sure to stay with The Cube for everything we've got here and thank you for watching The Cube. (upbeat tech music)