(upbeat music) >> Voiceover: Live from Las Vegas, it's The Cube, covering VMworld 2017. Brought to you by VMware and its ecosystem partners. >> Hey, welcome back to The Cube's continuing coverage of VMworld 2017. Day 2, lots of stuff going on. I'm Lisa Martin with my esteemed colleague Dave Vellante. >> Hey hey. >> Hey hey! I'm excited to welcome an old friend, Eric Herzog, the CMO of IBM, as well as Sam Warner offering management IBM software-defined storage. Welcome, guys! >> Well thanks, we always love to be on The Cube, always. >> Dave: Love the shirt. >> Thank you, I'm glad I'm wearing a Hawaiian shirt again. >> Dave: Thank you for making sure you wore that, yeah. >> I think it's like my 25th time on The Cube with a Hawaiian shirt. >> Lisa: Oh you're like the Alec Baldwin of The Cube. (laughs) >> Lisa: Alright guys, so here we are- >> Dave: If we have the record, that is the same shirt you wore last year, isn't it? >> Yes, but I did clean it, Dave. (laughs) >> He wears it once a year. >> I've never had to ask anyone about dry cleaning on The Cube but there's a first time for everything. Alright guys, so here we are at VMworld. What's new with IBM and VMware? Kind of talk to us, Eric, from a marketing perspective. What's going on there? >> Sure, well the big thing is IBM and VMware have a very strong alliance across our entire portfolio. The Cloud Division has a big agreement with VMware that was announced with Pat Gelsinger and the head of the division last year, the Storage Division has all kinds of heavy duty integration with our VersaStack product, as well as in all of our all-flash arrays, and then Sam's team brought out a new backup and recovery product, Spectrum Tech Plus, which is optimized for VMware and hypervisor and cloud environments. >> Excellent. And that's one of the things actually thematically that we heard yesterday is that, you know, backup is hot. So tell us a little bit more about that hotness and how you guys are working with VMware to dial that- >> Dial that heat. >> Yeah, dial that heat up. >> Sam: Well it's actually, it's more than backup, right, it's about data availability, and ensuring your data's safe, data's the bloodline of your company now, right? Everything's moving toward cognitive and AI, you can't do that without data. Most of your data's trapped as a backup. And what we're trying to do now is make it really easy for people to get at that data and use it for other purposes. So first of all, making sure you're safe from things like ransomware, but also making sure you can get some value out of that data. Make it very easy to recover that data. >> So, lots of topics that we could cover there, I wonder, did you have one more and I want to jump in. >> I did. Just, Eric from a, as the CMO, from a messaging perspective now we've heard backup is hot, you've just kind of articulated that a little bit more, same with storage. From a conversation perspective, and you talked about the importance of data, Michael Dell talked about that this morning, that the data conversation is a CEO agenda. How is the conversation changing, and the position of IBM changing when you guys are talking to customers that, is backup, is storage a conversation around data that you're having with the C-suite of your customers? >> So, a couple things, and I've done storage for 32 years. EMC, IBM twice, seven startups, and the C-suite hates storage, including the CIO, but they do love their data. So they all know they need storage but when you talk about data, data availability, the resiliency of the data, the data always needs to be there, you don't even use things like data resiliency 'cause the CEO doesn't know what that is, so you need to say, so how'd you like it if you were in Star Trek, and Bones wanded you with a new healthcare wand, and it came back with no answer? (laughs) That's 'cause your storage is not resilient and it's not fast enough. So the data has to be available and it has to be fast. So we're moving to this world where everything is AI and everything is immediate. If your storage goes down and you're in dark trading, you just lost ten million bucks per second. So, but it's all about the data. So basically what we're doing is getting out of the storage conversation and talking about the data conversation. How data is used to optimize their business, and then you weave the storage in underneath as, well as you know if you've got a bad foundation to your building and the earthquake hits, boom. You building falls down. So data is that building, and storage is the foundation on which your data rests. >> I love this conversation, and I think you're right on. The C-suite, they hate storage because it's to them, it's just an expense, but I want to pick up on something that was one of my favorite interviews thus far this year. Believe it or not, it was the interview that you and Burris and Ed Walsh did in our studio in Palo Alto. And I wonder if you could add some color, and then Sam I want you to chime in. What I loved about that interview is you guys talked about digital business and digital business being all about data and how you leverage data. And you said something there, and I want to unpack it a little bit. Storage should not be just a dumb target that is unintelligent. it should be an active element of your data and digital strategy. >> Eric: Right. >> So what did you mean by that and how does IBM make it, storage, an active element of a data strategy? >> So the first thing you want to do is you want to make it all automated. You want to make it transparent to the user. So, whether it's in the healthcare space, I don't care what your business, Herzog's bar and grill? My storage is transparent. Okay I'm running a bar and grill, I don't have time to fool around with the storage. I need it automated, I need it fast, I need to see who's drinking what, how many cigars I can sell, I don't have time to fart around. Right? Storage can make that happen. So you've got certain CPU that's done on the server level or in the virtual machines, and then you've got to have storage that's intelligent. So, we're working on some products we're not ready to announce yet, but we've got some products that have built-in AI into the storage themselves. So things like, you can search in the storage instead of search on the server. How do like, be able to look at metadata and have the storage actually fetch the data not the server fetch the data, so the server's crunching, crunching, crunching, and the storage is smart enough to go grab the data on its own and then bring it to the server. Versus the server having to do that work. So all that's about making data more available, more resilient, and again, having smart storage not dumb storage. >> So Sam, when we were talking about backup it's how you say, it's not just backup, it's more than that. >> Sam: Right. >> Pick up on what Eric just said. How is Spectrum Protect more than just backup and playing into what Eric just talked about? >> Well a lot of things Eric was just talking about you don't necessarily, you're not necessarily going to be able to do all this analysis reporting, analytics on your production data, you don't want to get in the way of your critical workloads, so how can we make copies off to the side where you can do things like analytics, where you can do dev test, quickly build new applications, so we give the ability to have access to that data in a way that's not going to jeopardize your core applications as well. And of course, that data, you can't lose it, right? I mean, you've got to make sure it's protected. So we also offer you a very simple way to protect it, and very rapidly restore it. >> So, let's go through an example or use case. You mentioned ransomware before. >> Yeah. >> So a lot of people think okay I'll create an air gap, but air gap, in and of itself, you know, you watch these Black Hat shows, and they go, "Air gap is a joke. It's easy for me to get through an air gap." >> Sam: Right. >> So how do you deal with that problem? Presumably, you have insights and analytics that can help you identify anomalies, but I wonder if you can address what's the conversation like with your customers and how are you solving a problem like that? >> Well I think there's a lot of stages that would solve it. First of all, there's simple things you can do like have copies that are immutable, so they can't be changed, encryption can't go and encrypt a read-only volume, there is air gapping, which like you said there are ways around that, but then there's also, Eric touched on some of the metadata analysis. If you can find anomalies and changes in the metadata that are unexpected, you can take action and alert an administrator and let them know that something doesn't seem right, so there's a lot more work we're doing to introduce cognitive capabilities that can also detect that. >> One of the things actually that Pat Gelsinger said this morning, and this may have put a smile on your face when you said there's something you can't quite talk to yet is, companies have to integrate AI into their products. And machine learning. >> Eric: So, that's the plan at IBM, and we've already done some of that, we have some products that we've hinted at, that's product code name Harmony, and we've already done a public blog on that, a statement of direction, and that is our first step in implementing AI technology directly into the storage, again it's part of what I talked about a couple weeks ago when I filmed at your Palo Alto office, storage is not dumb anymore. I may be dumb, but storage is not. Storage is smart, storage is intelligent, storage is active not passive, and in the old worlds, when I started doing storage a long time ago, storage was just passive. Just a big brick. It's no longer a brick. It's a brain, and it thinks and it acts, and it relieves the CPU, and the other areas of your IT infrastructure from having to do the work, which is part of the metadata action that Sam talked about that we're working on and also this project Harmony that we talked about, is adding AI intelligence, things like Watson for example, maybe, but I can't quote me on that yet, but maybe we might put Watson inside of our storage, since we happen to own Watson, the dominant AI platform on the planet, we could probably put that into our storage. Maybe we will. >> So there's still a... okay why not? There's still a lot of dumb storage out there though. >> Yes. >> Huge install base. You actually probably sold a lot of it back in the day, so fixing the problem that you created, that's smart marketing. (laughs) But when you talk about the technical debt that exists, how do you go from point A to point B, going from that dumb storage to that active element? What's that conversation like with customers? >> So, it's actually pretty easy. First of all, storage refreshes every three to five years anyway. So now you can say, "Well you know the storage you had only did this, how about if we could do this, this, this or this, and really raise the bar?" The other thing of course is that IBM is the number one storage software company in the world, so anything we do is going to be integrated into the software side of our business, not just embedded in the storage systems we sell. And that software works with everyone's arrays. So that, if you will, artificial intelligence that we can bring to bear in an IBM Storwize or flash systems would also work on an EMC VNX2, would also work on a Dell Compellent, would also work on an HP 3PAR, would also work on this guy, that guy, and the other guy, because we are the number one storage software company in the world, for the guys that track the numbers, and all of this is being implemented into the software layer, which means it'll work with the other guys' gear. So we can take the old stuff I used to do at the evil machine company and make that stuff smart. >> What do you mean when you say you're the number one software company, because when you worked for that company you guys would always tell me, us as analysts, "Look, we don't really have any hardware engineers any more, we spend all our time on software, so we're a software company." You're talking about something different today, you guys leaned in to software to find, you've put your chips in, you did your billion dollar Steve Mills bet, what does it mean today to be a software company in storage? >> So for us, let's take all of our storage systems for example, FlashSystem V9 comes with Spectrum virtualized software, which works with over 400 arrays that aren't IBM logo. That software comes on that system. FlashSystem A9000 comes with Spectrum Accelerate, which is a scale-out block infrastructure that works both on-premise and in the cloud. Again, not just with our own gear. So we basically decided that, do we want to sell the full system solution? Sure we do. But if we sell the software only, that's fine with us, and remember, most of the big shops in IBM is exceedingly strong, enterprise to the Global Fortune 1000, and the Global Fortune 1000 down to those sort of, you know, one billion dollar company and up, most of them are heterogeneous anyway, so you're, if you're smart, and we think we are at IBM, to this effect, we made sure our software works with everybody else's gear. Spectrum Protect and Spectrum Protect Plus will back up any storage from any vendor, old or new, will go to any tape drive, will go to any cloud, we can automatically back up to the cloud, will automatically go to an object store, not just to our own object store, but other object stores. Will automatically go to disk or flash, so we've made it completely heterogeneous and, if you will, media and technology independent. And we're doing that across the board with all the IBM storage software. >> So that compatibility matrix, if I can call it that, is very important, has always been important in the storage business, but I feel like it's insufficient in today's cloud world. And let me tell you, explain what I mean and get your reaction. I'll start with Sam. So we've been talking all week about the imperative to not try to reform your business and bring it to the cloud, but rather to shape the cloud and bring cloud services to your data. And that's the right model, and now part of that, a big part of that, a huge part of that is simplicity. So we're here at VMworld, we're talking about backup and data protection, simplicity is fundamental. What are you guys doing in that regard, generally and specifically with regard to Spectrum Protect? >> Yeah, I think what you want is a very simple way to do data protection, and a methodology to do data protection that's consistent between your applications that you're running in your own data center and what you're running in the cloud. So you don't want to find out that, yeah your traditional applications that you've been you know, running in your data center for years are all protected, but it turns out all the new applications being built out on the cloud don't have the same rigor, aren't following the same standards, you're breaking your governance models, and you're at risk. So what you want is a simple way to manage both sides, you want a simple dashboard that gives you visibility to the entire environment in one space, so you know I've got 2,000 VMs, 1,800 of them are backed up, two of them aren't backed up, oh those are in the cloud, somebody didn't set it up correctly. You want to be able to see it very easily on a simple dashboard, and that's what we're bringing with Spectrum Protect Plus. >> Speaking of simple, Eric, last question to you, as the CMO, how do you make this message simple for a C-suite to comprehend and understand and help take them to the next level for them? >> Well for us, we don't even talk storage anymore. We just talk data, applications, their workloads and their use cases. That's it, and then you bring storage up underneath it, again it's the foundation of your data infrastructure, your data is the primary building, but if you don't have a solid foundation and, being from Silicon Valley and being from the '89 earthquake, when the earthquake hits, if you have a solid foundation, the building stays up, if you don't the building falls down. So, we lead with data, data, data, ease of use, simplicity, but really focus on what's your application, what's the workload you're trying to accomplish, what's the use case you need. And when you do it that way, you take the discussion away from being, "You're a storage guy." It's, "You're the data guy. You're the business guy." And that's how you have to pitch it. >> I like that. Hashtag data data data you heard it here first. (laughs) Eric and Sam, thank you so much for joining us on The Cube, I wish you best of luck and we'll be keeping our eyes and ears open for what's coming with AI and machine learning. Thank you for watching The Cube, continuing coverage live from VMworld 2017 Day 2, I'm Lisa Martin for Dave Vellante. Stick around, we've got more great conversations coming right back up. (upbeat music)

>> Announcer: Live from Las Vegas, it's theCUBE, covering VMworld 2017. Brought to you by VMware and its ecosystem partners. (electronic music) >> Chad: Thank you. >> Welcome back to VMworld 2017 here in Las Vegas. I'm Dave Vellante with my co-host Peter Burris. This is Day 2. Chad Sakac is here. He's the president of Dell EMC, long-time CUBE guest, CUBE alumn. Chad, we were talking about eight years >> Yeah, it's crazy, man, it's been great. >> Dave: And you were one of the first. >> It's been great. I was thinking about it. What I love is it's always a great events where there's great things happening. And you guys ask killer, right to the point questions, and I always try to give killer, right to the point answers. >> Dave: All right, well let's get into it. Your ascendancy, personally, kind of coincided with VMware's explosion. You are down and dirty with the customers. So, first of all, congratulations on-- >> Thanks, dude. >> Dave: that role and being the president at Dell EMC. Awesome. >> I have a passion for it, Dave. Passion is the key, right? >> Okay, so we're all talking about cloud, right? Cloud first is something that you hear from customers all the time. I want to be cloud first. What does that mean to you, to Dell EMC, VMware? >> I think the first thing is is that to all of us, cloud is much more about an operating model than a place. And people have started to internalize that it's about changing the way that they operate their business, both for some of their traditional apps, as well as how they build cloud-native apps. That's the first thing. Operating model, not place. The second thing is, I think I'm seeing the customers in the market get a little more, I don't how to say this without sounding pejorative, but a little more mature in their view that the answer is going to have to be a hybrid model based on data and data gravity, based on elasticity of workloads, based on governance factors, that lead to hybrid being the answer. And if you think about what we've seen just in the last two days, VMware on AWS, Google partnering with VMware and Pivotal around Pivotal Container Services. Those are all about hybridizing both traditional IT and how people build new cloud applications. So operating model, not place. Hybrid is the answer. And the third thing is that it's multi. I still occasionally encounter somebody that says, "It's all going to be one cloud." And I'm like, "Okay, just out of curiosity, "does your definition of cloud include SalesForce.com?" "Well, yeah." "Does it include Office 365?" "Well, yeah." "Does it include AWS?" "Well, yeah." "Does it include your own private cloud?" "Well, yeah." "So, what are you talking about?" >> Peter: Where's the one? (laughs) >> Where's the one, right? And I think that there's a... Things start to matter once they move out of hyperbole and into pragmatism. >> Well, and when you paid attention, let's say four or five years ago, when you listened to Andy Jassy speak, the notion of hybrid cloud, or hybrid IT, or private cloud was not in his lexicon. And then yesterday, we saw him up on stage with Pat Gelsinger. They were talking about hybrid and private cloud. >> Chad: Well, by the way, I don't want to throw the dart at Andy. I think if you talked to Vmware or Dell EMC four or five years ago, public cloud wasn't in our-- >> Dave: Absolutely. >> (laughs) in our vernacular either. >> Dave: Absolutely, so those worlds have come together with the customer reality that says, "Well there isn't just one cloud. "And I can't just bring my business, "reform my business for the cloud." So what do you make of the fact that we've evolved as an industry and as a vendor community? >> I think it's time to get on to the brass tacks of solving the problems for the customers, ma'am. And I see actually that happening in the industry more and more. People are solving problems that they can't solve in their private clouds using public clouds. They're figuring out that the best place to put a dollar is to rebuild their applications using cloud-native principles. But they're also realizing that sometimes that it's not even a legitimate choice or option. And they're trying to figure out also, at the same time, "How do I support some of those "more traditional application stacks "and make them more automated and cloud-like, "even if they're not going to be cloud-native maybe ever." >> Peter: Let me jump in here for a minute. >> Dave: So this gets to the promise that you've got to make. And please jump in. >> Yeah, because in many respects, what we're really saying, let me test this with you, Pat, is that, ultimately, it may be one cloud, but that one cloud is going to be defined by the business and not by a particular vendor. >> Chad: It's a higher-order function. >> Peter: That's right. So what we like to say is we like to say, "You're not going to take your business to the cloud. "You're going to bring the cloud to your business." And your business attributes and your business characteristics, where you operate, how you operate, how you use data, who your customers are, how are you going to reach them, all those different things, the physical realities, the legal realities, the IP realities, all that's going to shape the architectural choices that you make regarding cloud. And you have to have a strategy for that becoming consistent and coherent for your business. So a lot of piece parts, but it becomes your cloud. Does that make sense to you? >> It makes sense to me. It means that it's an answer that involves a little more sophistication and nuance for the customer, because they've got to think about what it means for them. And the answer is not the same for every single customer. However, there are common base elements in that formula. Number one, digital transformation always starts with applications that are written using cloud-native principles, often using data fabrics that are modern distributed data fabrics. That's one piece. There's a consistent piece that says, "I'm going to leverage public and private cloud models." And the definition of which workload goes to one or another, like you said, is very much driven by data gravity. Compute tends to co-locate with the data against which it's computing. Governance rules, which is not security. Public and private clouds are equivalent. In some cases, one or the other is more secure than the other. But those are common elements. There's one other common element that I've learned over the last four years of being on the journey myself with many of our customers, which is that the only way that the on-premises part of cloud stacks work is through radical simplification and deploying their on-premises infrastructure using design and automation principles that look a lot more like the public cloud than they look like their most traditional IT. >> No, you're absolutely right. And I think that's a crucial point, that ultimately the physics of all this. >> Chad: Mm-hmm. >> And I agree, cloud is not a We like to say the cloud is not a place, it's a time. >> Chad: Yeah. >> Because at the end of the day, all this is defined by the realities of your data. >> Chad: Yep. >> And if your data can't If you don't have time to move the data or it's too expensive to move the data, that's going to dictate where the process actually runs. And I like the way you've redefined, I'll say redefined data gravity. Most people think data gravity, "Oh, once you put data in place, "it's going to accrete more gravity." And you're saying, "No, that's not the way to think about it. "It's going to accrete more function." >> Chad: Right. >> 100% agreement. And I don't think a lot of people are talking about things that way. >> By the way, the linkage to physics, I don't know how many of the viewers basically were physics majors, but it's actually related to quantum physics and mechanics. Information inherently can't simultaneously be in two places at once. That's a law of physics, right? >> Data, okay, keep going, keep going. >> If any bit, any information, basically, is connected between two points at the speed of light, that's not a function of vendor technology until someone-- >> Well, let me we get into quantum entanglement, nano >> Yeah. >> But I think where you are, where you're absolutely correct is that ultimately, that there is a cost to moving data. >> Chad: Bingo. Bingo >> And we have to start When we think about digital transformation, our approach is the difference between a digital business and a business is a digital business treats data as an asset and builds strategic capabilities to treat data as an asset and apply data as an asset. And one of the beauties of what you were saying earlier with simplification, is for example, the idea that if I build around data, >> Chad: Yup. >> then I can use hyper-converged, I can use converged, I can use Flash, I can use VC, and I can use all these different things to treat my data differently. >> And do it as simple as possible. The thing that I think I'll give you an example from this morning. I was meeting with a customer that's in the finance and insurance vertical, right? And they're pretty advanced down there, use of both public and private clouds. They've got a software-defined data center. And they're trying to basically redefine how they're using mobile apps and customer intelligence. They provide a ton of services. They're a great, great customer and a partner. But again, to highlight that cloud is a place, or a time, to use your vernacular, as they build their mobile app, sets of assets are running in a public cloud, the data was born in the public cloud, the compute is running in the public cloud, it's built around a cloud-native app principle using PCF and Kubernetes. Great! When that person is using that application, there's a moment when they go in and do a transaction where literally it's hitting a mainframe running DB2 in their core data center. >> And there's nothing wrong with that. >> And there's nothing wrong with that. In fact, that pattern is universal, right? And so it highlights basically that you've got to be a little practical about how you do this stuff. >> Okay, so in the limited time we have remaining, give us the the quick why Dell EMC, Dell EMC, VMware, why you guys Maybe talk a little bit about the portfolio. >> So if you look at this week, the one thing that jumps out, at least to me, I'm probably a little close to it, Dave, but I hope it jumps out to the viewers, right, is while we maintain an open ecosystem, Dell EMC has its open ecosystem, VMware has its ecosystem, Pivotal has its ecosystem, we're becoming much more opinionated, right? And that matters because customers want clarity. So I'll give you clarity. Clarity that jumped out on stage and it came out of the mouth of Pat, not me, was the easiest way to deploy VSAN is on VxRail. The easiest way to deploy VMware Cloud Foundation is on VxRack SDDC. Period, full stop. Now, why are we saying that so emphatically? It's because if you don't have a good foundation for an SDS and SDC, or SDC, SDS, and SDN, so software-defined network and compute and storage, in the case of VMware Cloud Foundation and VxRack SDDC, then your whole underpinning is just way too complex, right? So there's a very clear opinionated point of view that says hyper-converged infrastructure that's being built by the combined team is the way forward for customers who have standardized on vSphere. >> Well, and you nailed it earlier. If you're going to bring the cloud model to on-prem, to the data, it's got to be simple. >> Chad: Mm-hmm. >> Peter: That's the cloud model. >> That is the cloud model, right? And and without it, you can't fulfill that promise. With it, you can. >> I'll give you a second example. For the last four years, we've been supporting our customers with the Enterprise Hybrid Cloud. We've learned more about what does it take to lifecycle, manage, and deploy vRealize Suite on top of HCI, where we own the lifecycle, right? At the same time, VMware has been learning about, "What does it take to take vRealize and run it "in the VMware cloud on AWS, not as software, "but as a service?" And that's all about simplification and lifecycle management. What we're doing between VMware and Dell EMC is taking that knowledge and saying, "HCI is the foundation, and on top of that, "here's how you build your IaaS "for your traditional applications, "and the foundation for what's coming next." And then the last part that we saw today loud and clear is a strongly opinionated point of view that says PCF, Pivotal Cloud Foundry, is the best structured PaaS in the market, and a full embrace of Kubernetes, Pivotal Kubernetes Services, Pivotal Container Services using Kubernetes, is going to be the best way to build container as a service. How do you deploy it best? On vRealize. How do you deploy it best? On top of VxRack SDDC. It's pretty clear. >> Covered all the bases, we could go all day with you, but we're out of time. >> Yeah. >> Chad, thanks very much for coming on theCUBE yet again. Really appreciate it. >> It's my pleasure, guys, thank you. >> All right, keep it right there, everybody. We'll be back with our next guest right after this short break. This is theCUBE. (electronic music)

(click) >> Welcome this special Cube conversation in the Intel Tech Lounge at the Sundance Film Festival. I'm John Furrier with The Cube. We are here with Ari Kuschnir, who is the founder and managing partner of Missing Pieces. Doing some really amazing work on the future of filmmaking. He's got a great entrepreneurial spirit. And creative desire to deliver great product. Welcome! >> Thank you, thank you. >> So, tell them about Missing Pieces and what's going on in your world. So, there's context. Take a minute to explain what you are working on. >> Well, the premise is to be at this intersection of storytelling technology. And to make stuff people actually want to watch. And VR and AR are parts of it. But not the whole. So, I know some of the conversation focus is on, is on VR, and we're just as excited about where storytelling is headed. In terms of what technology allows us to do. But the key for me is. I'm just passionate about, a new thing comes out. And I want to figure out how to make something really great. But meaningful, and powerful with that. >> We were talking before you came out about filmmaking, obviously trained in the discipline, obviously a variety of other things. But I want to get your perspective, we're on top of this new generation, what does that mean to you? When you hear that new generation, a new creative is coming? What does that mean to you? >> Yeah, I feel like I've ridden the wave of the thing as it's happened. And I mean, the company has too. So, I went to film school in the late 90s. And it was the first time you could buy like, first Final Cut, and the first wave of that. So you could make art little movies on the weekend, you no longer needed even to go to the school itself to borrow the equipment. That was revolutionary in 1999. And then 2005, when we started thinking about the company. You know, your Vimeo, YouTube, video i-Pod all come out within five months of each other. Towards the later part of the year. And it's a revolution. It's clear that with distribution, now not only can we make it and edit it in our laptops. But we can put it out, and millions of people could watch it. And that was the first time that was possible. And it was revolutionary. And I think it still is, to some degree. So, we've just, you know, as it evolves what I see is that, it's not, I've always felt like it's not enough to make the sausage as they say. You know, the directors, the talent that I sign now. Like the project we have now here at Sundance, young Jake. Jake is a great example of a creative who you can't fit in a box. He's an Internet artist, he's a rapper. He's an interactive video maker. He did an app called Emoji.Ink. And he does celebrity emoji portraits. He has a hundred thousand followers on Instagram. So, he can command his own audience. So, when a brand, or an agency comes to him. It's a very different approach than when they come for a very straight up work for hire, director's commercial kind of thing. That is the future, I mean. The future is about having a passionate audience, making things for that audience, understanding it. And being able to communicate with them on a daily basis, or a weekly basis in a powerful way, right? Through story. >> Yeah, I mean, you're riding the wave. And the waves are getting bigger. One of the things we do, we do a lot of tech coverage. And we see this in Cloud computing where software changed from Waterfall to Agile. And now the craft's coming back on the software side. But still now, software is eating the creative world. Because now a new wave is coming. So, speak to that, because you're, this is, you can almost look at the old ways. You mentioned the commercials and films. Almost like the Waterfall. You know, crafts, craft it up and you ship it. And you hope it works well. >> Ari: Yeah. >> But now, you have this new model of iteration. Where it's more Agile creative. How do you do Agile, like your artist, and not lose the craft? >> Yeah, well it's a challenge. Look, I've had so many opportunities in our 10 plus year career to kind of go in that direction of just like quantity over quality. And we could just never do it. I mean we're just not cut out for it. But at the same time, I'm not, I never ignore, how to optimize the content based on data, and based on what the landscape is looking like. So, an important thing for example that we consider in every project is context. Like what, how is this project going to be released? Oh, it turns out that, it's really a big social media push. It's not a TV thing. Or it turns out specifically it's Facebook versus Instagram. And that's a very different type of edit. And a very different type of way you start the video. 'Cause you've got a certain, even a different format, and a different way of looking at the content. So, you start to get into, and then you start to iterate, and look at the different ways in which you can repurpose, and rerelease the content, but customize it for each thing. So, you get into this really interesting place where the data is driving the story. And the feedback is driving the story. >> And the audience is part of the journey. >> Yes. And the comments, and the way in which people are taking the thing that you've made and re-interpreting it, is really interesting. And part of the story. >> You trigger a lot of emotion with me, when we're talking, because, you know, as an entrepreneur, I started media businesses turning into, and no-one has even seen this kind of media business before. But I have no media training of any kind. I did a science major. So, there's certain, and I've observed that there's dogma in the journalism business. And there's, but you know, how dare I challenge that, or others. You're doing the same thing. >> I love that by the way. >> So, I want to ask you. What is the dogma with the old world, 'cause the naysayers are usually the ones with the dogma. "Oh, it will never work!" >> Ari: Yeah. >> So, you're on the front end of this new trend. But you're going to have a visibility into what they're thinking, what is that? >> The dogma is, you know, the whole like, there's only big name directors, and you know, it's a certain caliber of work. And that craft is the ultimate thing. And that you just have to make the thing great. And it'll do the thing that is needs to do. Without any thinking in terms of context, or media buyer. How it can actually become a social, socially engaged piece. So, the thing that we're always fighting is some version of that. And then because we came from a scrappy place, but we're now, you know, a pretty legit thing, I think people, some people will still be like, well that's the kind of like, the problem solving sometimes gets interpreted as scrappy. Which is a word I really don't like. And I think-- >> It's a compliment on one hand. >> Yeah. >> But some people look at it as an insult. "Oh, he's just scrappy!" >> Well-- >> "He's not legit!" >> You never want to be the cheap solution. You want to be the solution that people call because nobody else can solve this problem for you. I think we, there's a strand of the company that's like, the kind of like, pick up the phone and we'll figure it out. And, the impossible project that nobody else can do. And then there's another strand where it's just like, you just want to make stuff people actually want to watch. How hard it that? The thing where you could just buy the media, and expect the results is trickier and trickier. >> I mean you could be different, and innovative, but that might not be good. But if you're good doing it, you're differentiated and you're innovating. >> Ari: That's right. >> What's the filmmaking track on that line. Because certainly there's a lot of innovation. And with innovation comes failure. But people are trying to be different. And being different actually is a good thing. What are some of the trends that you're seeing where people are having some success. And where people are stumbling. >> Yeah, that's a good. I mean what I see is, the things that do well take cultural context into account, and again speak to the people in that way. So, it's like a feedback loop that it's creating with its own audience. And we almost always, there's almost always a time in the process when we're dealing with an agency, or a brand where things start to go a little bit like, too, too much, and in that direction that you don't want it to take. Somebody, usually me, or someone will say, "Look, if we make these changes. "Or if we go in this direction. "We won't want to share it. "And if we don't want to share it, "nobody's going to want to share it." So, that becomes a key thing. Whereas before you could sort of away with some of that, now it's like, well, it has to pass this sort of, kind of litmus test in terms of like, are you comfortable with sharing this thing, because it speaks to you or not. >> So, I want to ask you the hard question, we're here at the Intel Tech Lounge, obviously Intel is doing a lot of tech things. They're trying to get all this new tech. And I see it on, whether you watch the NFL playoffs, with, you know, with the camera angles, the games, on basketball games. You see them using the power of technology-- >> We're actually working on an Intel Olympics VR related project that got a little tease ad, CES. So, I can just say that. >> Yeah I know, so what's the tech? What's the cool new game changer in your mind. As a tool that you need to be more successful, and other artists could use? >> Hmmm, well, you tend to, yeah I mean, I think we-- >> John: More horsepower, more compute, more-- >> No, I mean it's really the, What happened with the AR was really interesting, which was, everyone realized, oh, the phone's already in our pocket. While the headset needs to be something that really needs to be standalone. It needs to be $200. You know, like, you sort of, there's different kinds of headsets, of course. They do different kinds of things. But that's an extra hardware. The phone we already have in our pockets. So, everyone's started taking AR seriously. Including the big players. And what that allowed was a, a rethinking of what the possibilities with story would be. So, in some ways this last year has been a readjustment, and a rethinking of, well, what can you do with the phone that you've already got in your pocket. In terms of expanding the storytelling. Or placing a story in the middle of your living room, you know. A layer, using the phone as a window and a layer. But I'm equally as excited about what's coming in VR, interactive VR, room-scale VR, you know. The project that we have here is an interactive 360 project with a phone. >> What's that called? >> It's called On My Way. And the artist is young Jake. And the original conceit of it, is, it's Jake, there's four Jakes in a car. And every time you move the phone to a different Jake, it changes the Jake. So, as soon as it passes the quadrants. So, the four quadrant it kind of swaps the Jake. And that creates a really fun, and interesting thing. And he actually designed it for the phone, vertical. Because that's the way most people are going to experience it. >> John: That's awesome. >> But it's playing on a headset as well. >> Oh you're definitely a new creative. Love chatting with you. >> Thank you. >> Final, well, I have two questions, first one is, Sundance, what's the story this year? What's your report? If you had to go back and your friend asked you to give him a report, "Hey, what happened Ari, "what's going on at Sundance this year?" >> A combination of really interesting high-end VR projects. Some of them leaning into this kind of like more psychedelic less narrative driven stuff. Which I really like. Kind of like really embracing the fact that it's another world, and taking you there. And then the AR stuff. There's a thing called Tender, Ten Day R. Or Tendar. Which is a play on Tinder, by Tinder Claus. Which is, uses augmented reality, and emotion, and machine learning, everything that you could hope for in a really interesting way. So, that's kind of showing you where it's going. So, I think those two things. >> Psychedelic's interesting. I always, I mean this kind of tangent. But in, I've been seeing on The Cube interviews, I think we're going to have a digital hippy revolution. >> Ari: Definitely! >> And it's coming. I mean you can feel it. It's a different culture. >> When I was looking a lot of people, yeah, a lot of people are scared to, I mean, VR is a really great consciousness expanding way to go to get into other worlds. Without, you know-- >> And will all the crap going on in the world today you can almost look at this as a Sixties like movement in this modern era. Where it could be a major catalyst for massive change. >> Yeah, and there's a piece about, you know, this female shaman that grows through the tribe in Ecuador. And became the first ever female shaman for her tribe. And there's a piece called Chorus that, within it. Which is just super weird and trippy. And almost has no plot, but is amazing. >> All right Ari, you've got to run. Quick soundbite. What are you working on, what's exciting you these days? Share a little bit about what's happening. >> A variety of, again it's the full spectrum of storytelling, so it's not one thing. It's really pushing, experiential pushing, branded content pushing, original content that we're getting a lot more into that game. Long form series. VR series. Really, that's kind of the next wave for the company is to set foot, much stronger in the original space, and create our own original IP. Our own original content. >> Awesome, Ari Kuschnir managing partner and founder of Missing Pieces, check them out. Lot of great work. And again, it's a whole new game changing, from storytelling to the tech. The collision between technology and artistry, and creative, and it's happening. It's here at Sundance, at the Intel Tech Lounge. I'm John Furrier with The Cube conversation here at Sundance, which is part of our coverage. Was to look at the angle of Sundance 2018. Thanks for watching. (upbeat music)