>>Mhm. Mhm Hello and welcome back to the cubes coverage of AWS summit here. Public sector summit here in Washington, D. C. I'm john for your host, We're live at a physical event. People face to face. We're here with the cube on the ground back in business. Of course we have a virtual cube. We got the cube studios in Palo alto in boston. We're gonna bring you all the great coverage and our next guest is parallel casa, Anita Casanova got it. Chief of Channels at Pegasystems, also known as mega official titles, head of global partner ecosystem. But you're known as the Chief of channels. >>Absolutely, thank >>you for coming on. >>Absolutely nice to be here face to face in an event. >>Feel happy, feels good. It feels great. People are happy. I'm still good attendance. Considering what it is about 5, 6000 people roughly give or take maybe up to 7000, who knows. But you guys have a really strong relationship with AWS, you're the chief of the channel. You guys have a great enabling product that crashes itself, as you guys say. So let's get into it before explain what PEG A does. >>Okay, so paga he's a $1 billion dollar company. It's a software company and we call it that software built itself Because we are definitely here to crash customer complexity. So we do it by three doing three things, 1-1 customer engagement customers, customer service and also intelligent automation. So we are a platform and we are helping any single client that has a complex solution to make it simple and to have a good customer experience. >>So I got it wrong. It doesn't crash itself, it crashes complexity, It builds itself okay there it is. All right, I got that out of the way. Software that crashes itself actually doesn't really kind of doesn't sound like a compelling products, but it's not the case. So I gotta ask you So ecosystems are a big part of the cloud amazon has a great ecosystem but the ecosystem has ecosystem is starting to see an expansion of the cloud business with the software model. With cloud scale. What are you guys doing in the channel within the public sector? How do you guys work, how do people engage with you? >>Okay, so first of all we we were always very friendly channel partner but we were using our partners only for implementation because our product is so so uh built for each of the clients, there's a lot of services opportunity and we have very strong peg a practices in the different partners. But last year when I came in I came in almost 16 months ago we decided that we wanted also to improve our our sales with the partners. So we are engaging with partners and to and from the beginning of a sale cycle and brainstorming on what the client needs in order to be more efficient to reduce cost to the moment of the implementation. So we have been working with several uh system integrators, some resellers and with aws as our cloud platform. So we have been moving everything we can to the peg, a cloud that is on aws and clients are are really happy to be modernized in there because there you have the security, the scalability then you the new versions of the product without having to be worrying about it because it's done by our support. >>So it's software on amazon. So customers can buy your software through the marketplace or whatever through a partner or the marketplace and then they can still use the higher level services at in AWS, correct? >>They can use a high services in AWS or with any other partner system Integrator that also works with AWS and we have many cases where we are we we use the power of three. Right. We work with AWS accenture and and for example, Peg or we can use lay does or or booz allen or a parrot on any of the partners that are here in government. >>So you know, the channel equation, you're the chief of the channel. Channel channels love simplicity, simple products to buy. They love products that can throw off gross profit. And you said services, how is that going? Are you guys seeing a good economic equation with your partners? >>Well, our partners do between five and 10 IX of uh, of the revenue that we do on software on services. So that equation definitely works and they love it for that. At the same time we have invested five x the quantity of people that we have supporting the channel. For example, here in government we have invested also two or three times on the rest of the of the business. But there has been definitely good investments for partners. The partners are happy with us because again they not only they can do a good business one off, they can then radiate one. You usually clients one day once they buy peg for one of their use cases or case management as we call it, they usually want to replicate it in other cases and that is where the partners are doing enormous money because they are replicating the same use case in different departments. >>That's the way it's supposed to be, it's their touching the customer, they're adding value on top of your product. So they get to have the best of both worlds high margins on the profits and the services but yet worked with the customer directly to engage, make sure they get the right solution from you and a W. S together. >>Absolutely. Okay, >>what are the key challenges that you find that partners need to solve and overcome to keep this this this equation going. What do you guys focus on? You mentioned more people, what are some of the trends in the public cloud? I mean public sector area? What's this with the dynamics? >>So in in this moment the whole world is with a huge need of digital transformation the every single client but especially in government, they had all digital transformation projects. But they were going at slow motion because of the situation of the pandemic that I don't even want to name it again because everybody's talking about it but it's a reality. These projects have to accelerate 10 times. So whatever it was going to be done in five years has been done in one. So the biggest challenge that we are having is to ensure that we have that capacity to support all these projects that are being done very fast and and for that that's why we also need our partners right Because they have big mega practices. They have been investing as well as we are to ensure that we cover all those needs and but for now we are doing well and so that's that's right. We are growing as a company and with the partners >>carol great to have you on board with the company now kicking some butt now in the channel, Chief of channel good margins happy customers growth. What are some of the use case successes that you've had. Can you name a few customers and what they've done and what's their best practice? >>Well we have, I will name some government because we are in a public secretary event but we have and I will name north America although we also have in the rest of the world. So U. S. Census. That is something that everybody has done right. Even if you did in your mobile, you did it on paper, you did it on the phone. All of that was managed by paga And for the first time ever there was zero than downtime. Not a single problem to access the web. For example, the the US census took us 50% less expense than the one that we did in 2010 just because we use this digital approach And then we also were 50% more efficient because we needed, we didn't need to use all that paper storage that was used in the past. So we taxpayers have to be happy because they really spend less than what they should have spent on this topic. So definitely that was one of the biggest cases that we have in 2020. We have other, we took big big projects like the US and or we do smaller projects and there's one that is not small but that is smaller, that is the New Jersey court that caught my attention because I imagine myself in a situation like that that you are like my mistake taken to the court and you and they are, they are you have to defend yourself that was taking three hours and it's stressful, right? And you don't have to be there if you don't need to And this process got to 20 minutes, that is also reduction and expenses even jail expenses sometimes. So that was one that we did as well. And and that was just by making four legacy systems getting to one having a much faster experience on that. So >>a lot of migrations, a lot of cloud native re factoring going on in the applications sounds like >>yes. What we do is whatever legacy systems you have, we managed to ensure that we connect them all and to have a front line so that you can access information real time and that you can as a user and that you can really have a better experience whatever you do today, whatever company telco company you have, bank you use, I can guarantee you have you have, you speak to you just don't know about >>that. It's under the covers. I gotta ask you my final question. So you guys really doing some good business out here, what if people watching here trying to understand the dynamics of public sector market? What's your take, what's your what do you what would you say, that person? What's the big story happening in public sector? >>Well, to begin with, I'm not a public sector experts, I'm sure that there's a lot of public sector experts out there that can tell me, oh no, you missed this point. But what I have seen in these days that I have been here with the team is that the government needs to act fast in order to digitalized all these projects. So one of our partners yesterday was telling me that there is a mandate in in the army for example to move everything to cloud. How do you do it? They don't even know they're there, there are people that they don't they don't know how to do this. So our partners are building solutions to help them faster get into the cloud because they have to do it by the end of the year. And these are the key things that we are working on with partners to build solutions that can really can access for robust and they can >>escape. It's a very robust ecosystem. Yes, So amazon is an ecosystem you guys and you have an ecosystem. >>It's an ecosystem of ecosystems and that is what works right because Amazon has very good sellers for example, very good people that know the clients and they have a lot of experience but they are not specialized in what to do >>with the channel. These >>other partners have a peg a practice, they are experts and as I told you this is about crushing complexity. So it's making you need to understand the technology and the details behind it to make the best solution to the client. >>Corolla. Great to have you on very dynamic. Love, Love chatting with you Corolla Cazenove >>Cazenove >>Cazenove chief of channels that Pegasystems also known as peg a great to have you on, congratulations on your success. Ecosystems within an ecosystem crushing complexity. Mr que bringing you all the signal out there from the noise. I'm john Kerry. Thanks for watching. Mhm. Mhm.

>> Announcer: From around the globe, it's theCUBE. With digital coverage of IBM Think 2021. Brought to you by IBM. >> Welcome back to IBM Think 2021. This is "theCUBE's" ongoing coverage, where we go out to the events, in this case, of course, virtually, to extract the signal from the noise. And now we're going to talk about the shifts in customer employee experiences and channels. The past year, obviously, has exposed gaps in both of those areas. The shift to digital channels, something that hit every industry. If you weren't a digital business, you were out of business. So, there's huge demand for better, a.k.a. less frustrating, and hopefully superior, customer experiences. That's never been higher. It puts a lot of pressure on companies and their marketing departments to deliver. And with me to talk about these trends are two great guests. Alex Shootman, the General Manager of Adobe Workfront. Alex was CEO of Workfront, which Adobe acquired last year. And Matthew Candy, Global Managing Director of IBM iX. Gentleman, welcome. Thanks for coming on. >> Thanks for having us. >> Great to be here. >> Matt, let's start with you. Maybe you could talk to the shifts that I talked about earlier, in the past year, and customers' expectations, and how they changed, and how you guys responded. >> Yes, so, Dave, I mean, it's been, my goodness, what a year, right? If we'd gone back and thought, we never would have seen this coming. And certainly, I guess, for the clients, I run the digital customer experience business, the services business, here at IBM, and certainly, we have been very busy helping clients, across just about every industry, accelerate their digital transformation efforts. And I think what has been absolutely clear, is digital, mobile, all of these ways of engaging with customers through channels, has been an absolutely critical way in which businesses have kept going, and survived over this time. And certainly, we've seen that transformation accelerate, right? And companies shifting from face-to-face interactions from a B2B sales perspective, into a kind of online B2B commerce, et cetera. So, really it's become digital by default. And I think customers really demanding personalized experiences, and wanting to make sure that these companies really know you in how they deal with you. >> You know Matt, I mean, our business, you think about our business, it was predominantly going out to events, live events, and then overnight, our entire industry had to shift to virtual. And what it was is, you had all these physical capabilities, and people trying to shove it into virtual, and it was really hard. There was a lot of unknowns, and really different. I imagine there's some parallels within marketing organizations. And I wonder if you could talk, Matt, about what kind of barriers you saw about delivering those kind of digital interactions and experiences. >> Yes. So, I guess, we've seen kind of five core challenges that companies have been facing. So, firstly, around volume and velocity of content. So, as we're putting more demand into organizations, right, for more content at a greater pace, right, this causes challenges for companies in terms of being able to get content out there, and surface it through their digital channels, right? Whether that's kiosks, or voice, web, mobile, et cetera. And that pace is not slowing down. Second thing is this demand for personalization. So, as companies and individuals are touching through all of these touch points across marketing sales and service, the need to be able to interact in the right way, showing that you know me, using personal data to match the right offer at the right time, critically important. Thirdly, the martech stack, right. Across many of these organizations, this explosion in marketing technology over the last 10 years has been absolutely incredible. And so one of the big challenges companies have is how we tie all of these different components of the stack together, to build this seamless experience. Fourth challenge, right? Additional communication channels. So, as we need more content and personalization, and we've got to join up across all these different systems, how do we make this consistent across all of these channels, right, whether it's digital or physical, is a true test of many organizations' ability to respond. And the fifth point is the coordination needed across departments within companies. And so, how the marketing department deals with legal, with regulatory approvals, with sales. How they go out to their agency partners. And this has certainly got a lot more complex across geographies, and across boundaries, within companies and outside. And so we see, absolutely, this need to put in place, basically, the marketing system of record that helps manage this. And this is where we see huge opportunity together with Adobe. >> Yeah, so, Alex, maybe you could talk about this a little bit. I mean, you guys are well-known for deep expertise and leadership, and orchestrating marketing workflows and the like. Matt talked about the martech stack. What's your take on this? And how are IBM iX and Adobe Workfront working together? >> What has occurred in response to what Matt talked about, is that companies started realizing that work was a tier one asset inside the marketing team. You know, they looked at, if you go back in time, and you look at financials in a company, people thought, "Wow, this is really important to us. We should put a system in place to manage financials." They realized their customers were really important, so they said, "We should put a system in place to manage our customers." People are important. They bought Workday to make sure that they could manage their people. And all of this complexity that Matt talked about caused enterprises to realize that the work of marketing was as important as some of those other activities in the organization. And so they started investing in a marketing system of record, like Workfront. >> You know, that's interesting. Just a quick aside. I mean, if you think about a lot of the problems we have in data and big data, typical to talk about stovepipe. You just mentioned three examples, finance, HR, and now marketing, where we've contextualized the system. In other words, the domain experts, the people in finance, and HR, and marketing, they're the ones who know the data the best. They don't have to go, necessarily, to some big data team, and data scientist, and all this stuff. They know what they want and they know it. And that's really what you guys are serving in your streamlining. This notion, Alex, of a marketing system of record is really interesting. I mean, it's relatively new, isn't it? So, why does it matter so much to marketers? >> Yeah, if you think about it, we've been able to serve 3,000 enterprises around the globe. We serve all 10 of the top 10 brands. Half of the Fortune 100. And what has created the need for the new, if you think about it, are the challenges that start arising when you implement the concepts that Matt talked about. Consider one of the largest private credit card issuers on the planet. And you think about delivering that personalized experience all the way to an end customer. You've got a private credit card issuer. They do business with hundreds of thousands of companies. Their account managers are interacting with those companies, and all of that lands back on a marketing organization that has to jointly plan promotions with those companies to drive the private credit card business. That marketing team needs visibility to the work that's happening. Or consider a major medical manufacturer who's trying to get medical products out the door. And the marketing team is trying to coordinate with the product team, with the regulatory team, with the supply chain team, with the legal team. And they're trying to orchestrate all of that work, so that they can get products out the door more quickly. Or maybe a financial services organization that's also trying to get new products out the door, and they're trying to get all the approval about the content that goes with those products, and it's all about speed to market. That's what's creating the need for the new, as you phrased it, Dave. >> Yes. Excellent. Thank you. So, then Matt, paint a picture. A lot of people may not be familiar with IBM iX. Maybe how you guys... You got creators, you got deep expertise in this area. So, maybe talk about where you add value, and how you work with Adobe. >> Okay, so IBM iX, so, we sit within the services business at IBM. As you said, Dave, right, we have designers, experienced strategists, engineers, basically able to deliver kind of end-to-end digital and customer experience solution, right from the creative, all the way through to the technology platforms, and the operations. Adobe is one of our key strategic partners across IBM, and certainly within my part of the business. And so, we couldn't have been more delighted when Workfront joined Adobe, through the acquisition there. So, we already had a strong relationship with the Workfront team. And so now seeing that as part of the Adobe platform and family there, really opens up massive opportunities. We're working with several major airlines, automotive companies, retailers, using Adobe technology to transform the customer experiences that they have. Putting in place new digital platforms, and new ways of engaging with those customers. But what is absolutely clear, as Alex was talking about, this need for a marketing systems of record, as this landscape becomes more complex, as the velocity of change increases the need to not just focus on the customer experience, and how a customer interacts with the brand, but the need to get the workflows and the processes within the organization that sit behind that, organized, executing in the correct way, in an efficient way, in order to make sure that you can deliver on that customer promise. And so this is absolutely critical, effectively, to drive this kind of workflow improvement, the productivity improvement, and put intelligence and automation into these processes, across the organization. So there is, certainly, we believe a huge opportunity together in the market, to help clients transform, and to deliver the value in this space. >> Got it. Alex, maybe you can just, at a high level, share some examples of how Adobe, and drawing on your experiences from Workfront, how you've helped companies where they had to get content out, they had to automate the processes, and the outcomes that you saw, that you hope to share with other clients. >> You know what, what Matt's talking about is the need for intelligent workflows within a marketing organization. Because a marketing organization is trying to solve one of two challenges. Either they're trying to be more efficient because they can't get more resources to do the work that they need to do, or they're trying to operate with speed. And so what our breakthrough thinking was, Dave, in terms of solving these problems, and then I'll give an example, is the realization that while it seemed like work should be different in different enterprises, ultimately, all work has five elements to it. The first thing is, you decide to do something, or I ask you to do something. So, we have to have the strategic planning around the intake of work. Then we have to plan out the work. Then we actually have to execute the work. We have to understand who's doing what. We have to have transparency to whether or not that work is getting done, or if people need help in that work. Then that work needs to be approved by somebody. And then finally, especially in marketing, then we have to actually deliver that work to a technology like ADM, where we're going to publish it on the web. So, if you take the case of a major financial, a financial company that serves consumers, that financial company is constantly bringing new products to market. Now, if you're bringing new products to market, if you think about the United States, you have to make sure that you have supported the regulatory approval that's necessary for a product. So, that product has to be able to go to the right investor. That product, if it's in a certain state, has to have oversight to it. So, now you're a marketing team, in a financial services organization that's supporting getting new product to market, and in a particular customer, it used to take 'em 63 days to go through all of the approvals necessary to just get content out the door. Now that they are effectively intaking the work, planning the work, executing the work reviewing the work, and delivering the work digitally, that's down to eight days. >> And with the martech platform, you have the data. So, you know what content you want to get out, and you can make decisions much better. I mean, my big takeaway is, you got the art of marketing, and those with the marketing DNA, I don't have that gene, but it's intersecting with the science and automation, and the data, and the workflows, and driving efficiency, and ultimately driving results and revenue. So, that's my big takeaway from this conversation, but Alex, maybe you could give us your takeaway, and then Matt, you can bring us home. >> Yeah. I mean, my takeaway is in this new economy, marketing is a tier one corporate activity. Marketing is a peer activity to manufacturing, to distribution, to sales, and to finance. And every one of those disciplines are managed with a system. Marketing needs its own system, because it's as important as any other organization. And so to me, Dave, it's no more complicated than that. That marketing is now as important as every other function. And it needs to be managed as every other function. And Workfront is the application that marketing manages the workflows, and the business of marketing. >> All right, Matt. Give us your final thoughts, please. >> Yep, no. My final thought, building on what Alex said, so, we've put together a joint point of view with Adobe, and with Workfront, called "Intelligent Content Transformation," right. That is our strategic framework to help clients accelerate on this journey, both of delivering these amazing customer outcomes, but how we transform the processes within the marketing organization. And I think that yes, you can continue to focus on delivering amazing digital experiences for customers, and it's absolutely critical, and that's critical to revenue growth, but actually, what's also critical, is to drive efficiency in these workflows across the enterprise, right? And that is not only going to enable the revenue growth, it's going to enable you to deliver on that promise. But it's also going to result in significant cost and efficiency improvements for these companies, by focusing on marketing in the same way as we have done for procurement transformation, supply chain transformation, finance transformation, HR transformation, right? There's a lot of effort gone into the efficiency of those workflows. We've got to do the same for marketing. So, massive opportunity, Dave, massive. >> It is massive. Every company has to, in some way, shape, or form, put high-quality content in front of their customers to engage with them. Gentlemen, thanks so much for coming on "theCUBE." Really appreciate your time. >> Yeah, thanks for having us. >> All right- >> See you again. >> And thank you everybody for watching. This is Dave Vellante for "theCUBE." You're watching IBM Think 2021, the virtual edition. We'll be right back. (bright music) ♪ Da, de, de, da, da, de, da, la ♪ (bright music)

>>Live from Seattle, Washington. It's the cube covering Smartsheet engage 2019 brought to you by Smartsheet. >>Welcome back everyone. You are watching the cube and we are here in Seattle, Washington at Smartsheet engage 2019 I'm your host, Rebecca Knight along with my cohost Jeff Frick. We're joined by Mark Klein. He is the principal at populace. Thank you so much for coming on the show. My pleasure. Thank you. So you have a very cool job. Tell our viewers a little bit about populace and about what you do. Sure. So populace is actually an architect firm. Our main focuses architecture. We one of the largest sports architecture firms in the world. So we build stadiums and arenas and convention centers and airports and places that people gather is our bread and butter is over 500 worldwide employees that work on that. But we have an event office out of Denver, Colorado where we take our architectural principles and apply them to major gatherings of people in the sporting world and other areas. >>And these are sporting include the includes include the final four >> in the Olympics and all of your NFL major events that are not a regular season game. All of your inner NHL events that happen in stadiums outdoors, all star games, things like that. Any major event, it's a nonstandard event. They really call on us to help make sure that that goes off without a hitch. Yup. >> All right, so talk a little bit about what it was like before you believe what it was like before you use Smartsheet and entered the, the headaches and the problems and that and now what life is like now. Sure, >> so a little more than 10 years ago when I joined the firm, we had a good stable of events and events. We're still kind of just operating off spreadsheets and back in napkins and drawings and things like that as security and to nine 11 was actually a major factor in kind of the growth of our industry where events now had to be planned a little more with more scrutiny. >>We needed a way to better pull our information together and get everybody to to, to, to collaborate on one set of drawings, one schedule who's doing what and when. And Smartsheet has become that prime resource for all of our event planning >> and for in for an event, there's so many outside contractors that you guys have to orchestrate with, whether it be the teams and the associations and the security and the venue and the concessions. The list goes on transportation, on and on and on. So to be able to bring outsiders into your project, >> and that's a new set every year with every event. So you think of the final four, we're going to a new city every year. So EV, I have literally eight months to work with a team to plan a major event that's going to be seen by hundreds of millions of people. And then I've got to pick up and do it again in another city and then another. >>And we're doing that across dozens of events across our team every year. So we may have a vendor that touches the system once. We may have someone who sees us once every third year. So within our environment we have extremely high turnover of people. We have very short period to get them up to speed and working with us. So Smartsheet has been really, really a big part of Hey I need you to better get in here, get your information and work with the tool, get us the information and guess what, you're going to get some feedback on this one too. So it benefits them. >>Right. It's just interesting to me that the level of granularity and detail, you know, we get, we go to a lot of events, obviously there's so much minutia that you have to keep track of from printing on the napkins, you know, to signage, etc. But at the same time, especially in the sporting world, you know, there can be huge changes, you know, especially at the same plow who wins a game, changes the venue. Right? So how do you, how do you use a tool to manage the boat? The tremendous detail when you have the opportunity to plan versus the change of plan a we got to got to shift, >>he hears well so, so we use a lot of the tools that Smartsheet is has built into it for automation. So for example, at the final four, we don't know our teams until Sunday night and that that that Monday we have decor going up, team specific decor. So locker room assignments. As soon as the game is final we send out notifications in Smartsheet to the decor printers that you're printing this graphic, this size, these a locker room assignments, these are the bus assignments. So all of that is, is queued up and ready to go. Um, so a lot of those last minute things that you may think of, we've thought through them and are ready to trigger as many as we can. You're never 100%, but if we can get that 80% 90% triggered and out the door as soon as the decision is made or the team has decided that lets us deal with those others that are a little less planned. >>So, but those are ones where, you know, those are sort of the known unknowns. What about when you have the unknown unknowns, when things like bad weather can affect an event or, I mean, how do you, how do you use Smartsheet into change on a dime when that happened? >>So, um, we, we plan and we plan and we plan. So for example, bad weather is something we have multiple plans for. But where Smartsheet comes into play as I have real time scheduling information sitting on my screen in a control room at an event. So if we have a weather event, we have two or three options that we can pick from. But I'm now looking at the realtime Smartsheet schedule going, all right, if we select option one, be aware we're going to affect these items. If we go with option two, these are the items. So it's the information that has been gathered through that planning phase and everybody's put their information in. So I know what our action is going to cause and the ripple effects of those. >>And Lindsay, the smart, the choose your own adventures when you were a kid reading those, choose your own adventure, want to open >>a door and guess what's there. I want to open a door of a decision and know that this is the follow on effect and I can look at the schedule and the vendors involved of who I'm about to impact with my decision. Right. And do you have the car, you have the comms and all that stuff dialed in there as well? Correct. Yeah. So we're on radio and we're, you know, these, these events, we run control centers. So there's eight or nine of us sitting in a control room. I, I send Mark meter a picture every year of my Smartsheet screen with some field of play behind it, beautiful ball or basketball field and go smart. We're ready to go, keep it up, keep it running for the next few hours. So, um, yeah, it's a, it's a, it's a fairly intense time. Um, when, when we opened doors or we turn on the cameras if those events, because let's face it, there's 70,000 people sitting there and there's usually three triple digit, a hundred millions of people watching on television. >>So it has to go right. That's a lot of pressure. Yes. How do you deal with it? How does your team deal with it? I mean you're used to it of course, but is there, uh, it's the confidence in the plan. I think that has really shaped how we get to that point and don't and don't overreact or get too caught up in the moment. So, um, what we do within the planning of, of our events and with our staff and is we put everybody's tasks in in Smartsheet of course. So my tunnel captain only has to focus on the 40 things that he or she is responsible for. So he may be standing at a team tunnel and we've extracted from the schedule are Austin, here are your 40 items. Don't worry about every, all the chaos going around you. Cause I've got 40 other people out working those items. >>So we filter schedules by either location or staff member so that they can put their blinders on and stay focused on their tasks. And that's really how people can focus and stay. Stay in the moment. What's coming next? What do I need to worry about? Cause there's 4,000 line items in that schedule. I can't have him trying to figure out what are his right at that moment. Mark, I would shift gears a little bit cause you guys came from an architectural bet, the company's architectural background and buildings, venues and stadiums. We just had the new chase. Then you just got finished in San Francisco. Beautiful new facility as the way you guys think about, it's kind of people centric. It's Vinnie's for people in its events for people. What are some of the kind of the guiding principles that make for a good event? A good venue from the people experience point of views. >>There's really multiple sets of customers that I look at at every venue. Obviously we always started the field of play. You gotta get that right? It's gotta be a hundred yards long. It's gotta be. And I thought they broke that rule the other day. We won't go there. Um, so feel to play out. So you've got your competitors, your spectators, and then your operators. All three of those. We focus on all of them equally because if one piece of that triad doesn't work, then the overall experience doesn't work. So obviously the field of play honestly is the easiest part to deal with. But it's an important part. So you look at how a team is going to arrive at a venue bus, whatever the case may be, so that they get to their locker room, get to their services that out to their field and back and forth to media obligations. >>So you don't want to put a media work room halfway across the stadium because then they're making a long Trek. It's a little things like that in the, in the team component, spectators, obviously theirs could be 50 to, if it's a baseball park, 50,000 up to 70,000 in a stadium. We want to ensure that they're going to fully enjoy their two to four hours in that building. Um, so we work on scheduling with our vendor. The one of the biggest things we found in the, in that area is we have really engaged with our contractors, the concessions folks, because they were kind of operating on their own. So engaging concessions to say, don't be moving product when there are people in the building, no one, the timeouts are, we'll call you from control based on the schedule so that we're synchronizing building operations so that they're, the customers are running out of water. >>Well we didn't run out of water, we couldn't get it to you. So things like that are really important to our planning. And then the group that really gets overlooked at, I spend a lot of time on is the people that helped build and get the building ready. Because if my vendors are having a rough time getting their things in the building or building the platform I've asked for or setting up the stage, they're just not going to be in a good frame of mind when the lights turn on. And I want everybody to be, yeah, let's go. We've had a great experience in the five days leading up to this event, whatever it may be. I'm ready now to put on a show. So we use Smartsheet IX so much with our vendors to help guide them through the build process, scheduling, deliveries, getting their credentials where they're going to park and where do I take my breaks? >>Everything is there at their fingertips. So even the mom and pop vendors that I deal with, and there are quite a few of them from city to city, feel like they're as important as my Avi company. So they're excited. They do their load in there like, Hey, this is a great experience and now they're here to help support the event. And then when I call and go, guess what? We have a problem. I need your help. They're going to share, Mark, what can we do? Right? Cause they're there, they're enthusiastic and they didn't feel like I beat 'em up right during that load in great, great insight. People centric. But you're talking about it's treating people like people, not just that they are some cog in the wheel that they are to to execute this task. Right, right. Yeah. No happy staff deliver happy events. >>So what's next in terms of, in terms of a broader adoption in terms of more improvements that you're seeing on the pipeline? Um, so I'm really excited about the collaboration component that was announced today at the keynote. Um, we are an architect firm, so the base of all of our plant, all of our events is a set of drawings, drawings that show what we need, where it is, when it's gonna happen. So all of our non drawing material has lived in Smartsheet for 10 years. I'm now gonna be able to bring those drawings in and get the collaborative information to feedback. So we take a drawing, we'll send it to CBS and say, please Mark up how you think we've drawn your broadcast compound. That has all been email. Now with this collaboration tool, it's going to live in Smartsheets. So I cannot tell you how excited I am about the collaboration component. >>It's gonna. It's gonna really streamline how we do our business. I, I'm kinda lost for words to get in there and try it. My staff is gonna probably go Mark. You can't go to any more conferences, but, uh, I think it's really going to be a great addition to our work process. Um, the other one that has been a personal part of mine, a personal goal that I've seen is the adoption by our staff are the to day work process. Um, I listened in the office, we have a big open work plan space and I listened for my staff going, I've got to put this plan together, attract this and I go, I literally will stand up and walk over. Have you thought about using Smartsheet? And half of the time they haven't. And um, I will say, let me help you through it. Let me get you started and see if it works for you. >>Um, so that organic growth with Smartsheet, um, is, is the big step that we're doing on a day to day basis, um, to get staff introduced to a new way to work and be more collaborative of how they, they manage your information. So, um, just that that kind of growth is, is, is ongoing. Um, but after I've been to the conference, I can say I've got a little more knowledge about it. Let me, uh, let me, uh, help you out a little bit and get you to use it. Right, right, right, right. And you're even finding ways to use it in your personal life, you said? Sure. I use it for home tasks. We plan, we plan our kid's birthday celebrations in it. So my wife and I will share a sheet about who's visiting for graduation. My daughter's high school graduation is coming up. We actually post a forum on Smartsheet coming where they staying at the tag that I put up on the wall over there as people think I work for Smartsheet with how much we use it. So yes, it bleeds into the personal life, but why not exactly a word. I don't fix it. Thank you so much for coming on. The show is a lot of fun talking pleasure. Thank you. Thank you both. Thank you. I'm Rebecca Knight for Jeff Frick. Stay tuned. Have more of engaged 2019 here in Seattle. You're watching the cube.

>> live from San Francisco, celebrating 10 years of high tech coverage. It's the Cube covering Veum World 2019 brought to you by IBM Wear and its ecosystem partners. >> Oh, good afternoon and welcome back as we continue our coverage live here on the cue from Mosconi North in beautiful San Francisco. Clouds of melted away In a way, of course, we're still talking about hybrid Multi. They're not going anywhere. In fact, there are very much entrenched into this show. John Wall's Justin Warren. Glad to have You with us. Joined now by Kevin Chats. Camera. Who's the vice president of Product management Enterprise and SP Solutions of Dental Technologies. Kevin. Good to see you again, sir. Nice to see you, too. Two shots in one week on the Q. We love that and Wait Holmes, who's the director of technical product management at Veum? Where? Wade, Good to see you this afternoon. >> But if you also >> so this this is kind of your party here, VM where? I mean, just give me your impression so far. First off, just kind of what you're sensing that the vibe here of the show and, ah, the kind of work that you're getting done. >> So the vibe here is excitement. I mean, I think everyone's excited about a lot of the announcements around either probably Pacific and how we're redefining the V's Fair platform and Tan Xue and now these capabilities on how these capabilities are going to be able to enhance our capabilities of our cloud provider partners. So I'm part of our club fighter salt for business unit, who specifically makes products and solutions for our cloud provider V, C P P program. And I think couldn't beam or excitement. And they've been a crescendo the past few years and be anywhere and b m world. And I think this has been one of the best ever. >> If the waves hitting the shore big time now. So you you talk about cloud providers about service providers. I mean, one of the same. Or Or how do you guys define that now? Or how do you separate that? >> Yeah, I think these terms are largely used interchangeably. To a large degree, I think if we look att at the cloud industry in the provider industry over the last several years, maybe about 5 to 7 years ago, there was a belief from every single cloud provider that they needed to build a scaled platform like a W s like Microsoft Azure like Google Compute. And that they were all in the business of a race to building the most robust, most scalable, most feature rich, most differentiated cloud that was largely erased the bottom from an economics perspective. And I think just about all of all of the service providers and now these cloud providers that we work with have really moved to a different model. What they've recognized is first off. The race to the hyper scale is not a profitable business that you want to race against. Number two. Ah, the transition for large enterprise I t small enterprise medium business to the cloud is so complex that it's not a game of building clouds and not a game of building platforms. It's a game of building practices at this point and cloud providers or building practices that allow them to find their own niche and differentiation off differentiated offerings. Whether that be on Prem Private Cloud hosted Private Cloud and then partnering with the hyper scale er's for the massively scaled multi tenant cloud world. And when we start to realize that this managed offering these cloud practices are there to help the enterprise and small medium business in their transition to the public cloud in transition to cloud and moving towards more managed I t offerings. What we're finding is the reemergence of these cloud providers in a meaningful way, starting to bridge the gap of skill, set, mismatches and expertise. Mismatches at Enterprise I t just doesn't have to embrace cloud technology. >> Yeah, for a long time there, there was the cloud Geraghty, who were saying that the public cloud is the only way this is gonna happen. Everything's going to be there. And some some of us I would count myself among them was a little bit skeptical about that. That approach to things and a lot of it with a lot of the pressure on on service providers was you don't even bother getting into the cloud business. Just shut up shop and go home. This is never going to be a good idea for you to compete in this at all. And it sounds like that that some of these providers have actually gone. You know what we've We've got a viable business here. There are customers here who need things done that we do really well that are not available out in public Cloud. So what are some of the things that some of the things that you're hearing from these cloud cloud providers, that that they are finding from customers that they value, that they not finding anywhere else? >> So I grew 100% that the club wider there, find their business is still growing, and it's due to their expertise. Is Kevin said, that the building practices they understand enterprise customers? Veum, Where business? They understand the platform that they're running the enterprise and are able to provide additional differentiated service's while leverage in the technology that the enterprise they're utilizing in their own data centers. So it's able to pride value out of service is with the same platform that air using in their own premises and providing those capability of same platform in a cloud model. So, given a pragmatic way for enterprises to be able to migrate to a cloud in a hybrid cloud, >> are there specific practices you noticing that is that kind of stand out as being particularly common? >> Yeah, s so I think that through the answer is yes, right? And the answer is that vertical expertise is king here, right? Understanding the industries in which the cloud platforms get deployed and how those industries consume. Resource is the use cases. How they monetize their business is key for success. But I think that what we where we've lived over the last several years is that the building blocks for all of these vertical industries, the only uniform way you had to do it was with the massively scaled public cloud providers. The hyper scale er's what we're doing now, Adele Technologies Cloud is we're enabling a consistent set of building blocks for all of these vertical industries that all of these vertical X three experts in the vertical industries across the cloud providers can then bring a common building block and go address the complex problems of building the use cases, building the monetization models, building the differentiated feature set. >> So I mean, can you give me an example? I mean, what you talking about? It's like if you're going about health care versus transportation versus manufacturing, some things that were going to a different way, we're going to slice this That's right. It's a different >> set of ecosystem partners. It's a different set of vertical applications, a different set of problems. It's different set of monetization models across the board, right? You know, retail has very specific requirements around Leighton See sensitivity and the need to be able to address micro transactions. Security capabilities of those transactions or what not, Health care is governed by hip on various other legislative. When you build in Europe, you have, ah, various data protection and privacy implications to keep in mind. It's right, so all of this is not typically available in public Cloud Public Cloud is built for a lowest common denominator. One size fits all, and then you come bring differentiation. On top of that now is enterprise. I T organizations start to migrate their workloads to Public Cloud. They're looking for consistency in terms of how they've lived before and how they work before how they've operated before. How do they migrate those applications, right? It's not I'm building everything natively for public cloud is that I have an entire set of applications that were designed in my enterprise i d environment that I just want to find a new way to operate in VM wears a consistent abstraction. Layers is really the path forward, So DT Cloud on Deli emcee and TT Cloud leveraging the public cloud providers in the V M wear abstraction with both feet spheres. Well, it's vey cloud foundations, eyes really a commonality that they can now the uses a foundational building block for all their service is >> yes. So where one of the things that a lot of customers have invested over a decade or Maur envy em where? And they have a lot of processes and tools and skills that they have invested in. And it sounds like for some of these cloud providers specializing in a particular industry, that there's a risk there that you will end up with building blocks that, yes, they're customized for one particular thing. But now I have to operate them a little bit differently. And now I've got a lot of different ways of doing things, and particularly as a provider, then that that adds cost. And I want to try to get some of those costs out there because they think that influences my margin. So is the choice. Of'em were one way of dealing with that because I can maintain that same consistent way of managing things. >> Absolutely. And that's key to some of the work that VM wear and Dell has been working together on two. Allow for Kevin Mention, Adele Technology Cloud Platform, which the baseline of that is being more cloud foundation. So been ableto have that homogeneous operational model, and Mona's data plane set is the same V sphere and XXV sand based originality perspective. So the operational model, whether it's in the providers infrastructure or whether it's on premises within enterprise is similar. >> And I think there's even 1/3 vector to this, which is, um, yeah, one public cloud provider is not gonna win. All of the public cloud providers are going to exist, and the scale of a Microsoft azure and the scale of an AWS on a scale of a Google compute put them in position to continue to lead this industry forward. And it's it's difficult to bet on one horse, right? So the GMC model on the DT Cloud model allows us to be able to scale across all of these different cloud providers and as an enterprise organization that's making specific decisions based on region or based on other financials that some of these workloads are going to say in AWS, and some of them are going to sit in Microsoft Azure, etcetera, etcetera is a common abstraction across all of them. >> But at that point, I mean the fact that you're talking about, um, vertical practices, right? Verticals having practices that might be unique to their particular industry. And now you're talking about them deciding that they might all flowed work Thio, maybe an azure. Maybe in Google. Maybe I'd be it. Whatever, Um, I mean multiple complexities for you in dealing with that because you're gonna be the translator, right? You've got to be. You've got to be multi lingual, not only within in the cloud world, but also in a vertical world too. Right? So tough road for you guys to provide that kind of flexibility and that kind of knowledge. >> Oh, I mean, that's the key to the software and solutions that GM was providing and allowing for solutions and sat space capabilities to provide a modernise, softer, defined capabilities across clouds or a and be able to manage things across, such as cost in via cloud health and other manage service's capabilities by our software platform and then be ableto have this. These capabilities in the Bean Imlay consumed by providers and turnkey fashion by utilizing del technologies, bx rail are and VCF one VX rail and having us all package together, and so that providers no longer have to focus on building a core infrastructure. But they're now able to focus on that integration layer. Focus on the additional higher level service is that are able to stitch together the use this multi cloud environment >> decision logic that our customers have. It's just so complex, and I think that the message that we've heard loud and clear from them is that they feel like once they're in particular ecosystem, they're locked into that ecosystem. And the more that we can do that give them flexibility to bring these ecosystems together and leverage the benefits and the capabilities and the regional and geo location of just about all the different ecosystems that exists and build their own ecosystems. On top of that, especially if you're a cloud provider, is really what they're looking to do. And when the foundational building blocks all look different, the integration look different the automation look different. The orchestration look different in the storage. Later look different. It's just It was impossible, right? It's really on us to provide an abstraction to make that easy for them to accomplish their business. >> Consistent foundation is critical, and that's what we're bringing through the cloud provider today. >> One thing that has changed from from technology of 12 12 15 20 years ago is the consumption model that cloud has provided. S. So what are you seeing around service providers, providing that pretty much you have to provide if your cloud provided you have to provide some kind of consumption model because that's what people have in their minds when they think about about Cloud it is. It's not just about the technology side of things. Actually, we're out the business operations about, you know, the financing and the funding models of things. What are you seeing with the cloud providers and service providers? How are they changing the way that they allow people to finance the buy of this infrastructure? >> So that's one of the pieces that, in being where Rendell is working together to allow for not just software, which through the visa program all of our software solutions are consumed through a subscription like model. So it's pay as you go, but also be able to consume hardware and consume the turnkey patches package so that VCF on Vieques rail and the Cloud Provider platform can be consumed in a pay as you go subscription model, which is a way that providers want to be able to then provides software and capabilities to their enterprise customers. >> Have they completely changed across to being purely consumption? Or do we still have a lot of industries that preferred by things that with Catholics >> it would be fantastic if the world converged on one answer? Everything is always easier when there's one answer. But I think, ah, one of the things we recognize is that, ah, and it's true and technology. It's true in business models. It's true. In operational models, there's never in. It's never just a or answer right. It's always an end, and there's a need for us to embrace multiple different models in order to meet the needs of our customers. And even a single service provider will find particular areas that they wanted, consumption based model and others that they realize that it's a well entrenched business for them, and the risk is a little bit lower, and they're willing to take on that risk and look at a Cap IX base model right there. Certainly financial implications to both an Op X and the Catholics model. There's tax implications, and you know where. We're still a little bit all over the map in terms of their preferences. >> Hopefully, we'll see that shake out a little bit and we'll have some standard patents to match the practices that will just make it a little bit easier to design the solution. >> I think the Saturn standard pattern that I expect to emerge is that we have to do everything >> for everyone >> in every way that they want to see. >> Oh, you left there, Kevin. I can't imagine that being too difficult. Everything. Everyone it all at every time. That's right. All right. Hey, thanks for the time of and the discussion and good luck with handling that. I know. That's a that's a big lift on. I know we're joking, but, uh, it's a great world for you. Certainly exciting time. And we thank you for your time here. >> Thank you. Thank you guys appreciate the time. >> I appreciate being World 2019. Coverage continues right here on the Cube. We're live and we're in San Francisco.

>> Ladies and gentlemen, please welcome Red Hat President Products and Technologies. Paul Cormier. Boring. >> Welcome back to Boston. Welcome back. And welcome back after a great night last night of our opening with with Jim and talking to certainly saw ten Jenny and and especially our customers. It was so great last night to hear our customers in how they set their their goals and how they met their goals. All possible because certainly with a little help from red hat, but all possible because of because of open source. And, you know, sometimes we have to all due that has set goals. And I'm going to talk this morning about what we as a company and with community, have set for our goals along the way. And sometimes you have to do that. You know, audacious goals. It can really change the perception of what's even possible. And, you know, if I look back, I can't think of anything, at least in my lifetime, that's more important. Or such a big golden John F. Kennedy setting the gold to the American people to go to the moon. I believe it or not, I was really, really only three years old when he said that, honestly. But as I grew up, I remember the passion around the whole country and the energy to make that goal a reality. So let's sort of talk about in compare and contrast, a little bit of where we are technically at that time, you know, tto win and to beat and winning the space race and even get into the space race. There was some really big technical challenges along the way. I mean, believe it or not. Not that long ago. But even But back then, math Malik mathematical calculations were being shifted from from brilliant people who we trusted, and you could look in the eye to A to a computer that was programmed with the results that were mostly printed out. This this is a time where the potential of computers was just really coming on the scene and, at the time, the space race at the time of space race it. It revolved around an IBM seventy ninety, which was one of the first transistor based computers. It could perform mathematical calculations faster than even the most brilliant mathematicians. But just like today, this also came with many, many challenges And while we had the goal of in the beginning of the technique and the technology to accomplish it, we needed people so dedicated to that goal that they would risk everything. And while it may seem commonplace to us today to trust, put our trust in machines, that wasn't the case. Back in nineteen sixty nine, the seven individuals that made up the Mercury Space crew were putting their their lives in the hands of those first computers. But on Sunday, July twentieth, nineteen sixty nine, these things all came together. The goal, the technology in the team and a human being walked on the moon. You know, if this was possible fifty years ago, just think about what Khun B. Accomplished today, where technology is part of our everyday lives. And with technology advances at an ever increasing rate, it's hard to comprehend the potential that sitting right at our fingertips every single day, everything you know about computing is continuing to change. Today, let's look a bit it back. A computing In nineteen sixty nine, the IBM seventy ninety could process one hundred thousand floating point operations per second, today's Xbox one that sitting in most of your living rooms probably can process six trillion flops. That's sixty million times more powerful than the original seventy ninety that helped put a human being on the moon. And at the same time that computing was, that was drastically changed. That this computing has drastically changed. So have the boundaries of where that computing sits and where it's been where it lives. At the time of the Apollo launch, the computing power was often a single machine. Then it moved to a single data center, and over time that grew to multiple data centers. Then with cloud, it extended all the way out to data centers that you didn't even own or have control of. But but computing now reaches far beyond any data center. This is also referred to as the edge. You hear a lot about that. The Apollo's, the Apollo's version of the Edge was the guidance system, a two megahertz computer that weighed seventy pounds embedded in the capsule. Today, today the edge is right here on my wrist. This apple watch weighs just a couple of ounces, and it's ten ten thousand times more powerful than that seventy ninety back in nineteen sixty nine But even more impactful than computing advances, combined with the pervasive availability of it, are the changes and who in what controls those that similar to social changes that have happened along the way. Shifting from mathematicians to computers, we're now facing the same type of changes with regards to operational control of our computing power. In its first forms. Operational control was your team, your team within your control? In some cases, a single person managed everything. But as complexity grows, our team's expanded, just like in the just like in the computing boundaries, system integrators and public cloud providers have become an extension of our team. But at the end of the day, it's still people that are still making all the decisions going forward with the progress of things like a I and software defined everything. It's quite likely that machines will be managing machines, and in many cases that's already happening today. But while the technology at our finger tips today is so impressive, the pace of changing complexity of the problems we aspire to solve our equally hard to comprehend and they are all intertwined with one another learning from each other, growing together faster and faster. We are tackling problems today on a global scale with unsinkable complexity beyond anyone beyond what any one single company or even one single country Khun solve alone. This is why open source is so important. This is why open source is so needed today in software. This is why open sources so needed today, even in the world, to solve other types of complex problems. And this is why open source has become the dominant development model which is driving the technology direction. Today is to bring two brother to bring together the best innovation from every corner of the planet. Toe fundamentally change how we solve problems. This approach and access the innovation is what has enabled open source To tackle The challenge is big challenges, like creating the hybrid cloud like building a truly open hybrid cloud. But even today it's really difficult to bridge the gap of the innovation. It's available in all in all of our fingertips by open source development, while providing the production level capabilities that are needed to really dip, ploy this in the enterprise and solve RIA world business problems. Red Hat has been committed to open source from the very, very beginning and bringing it to solve enterprise class problems for the last seventeen plus years. But when we built that model to bring open source to the enterprise, we absolutely knew we couldn't do it halfway tow harness the innovation. We had to fully embrace the model. We made a decision very early on. Give everything back and we live by that every single day. We didn't do crazy crazy things like you hear so many do out there. All this is open corps or everything below. The line is open and everything above the line is closed. We didn't do that, and we gave everything back Everything we learned in the process of becoming an enterprise class technology company. We gave it all of that back to the community to make better and better software. This is how it works. And we've seen the results of that. We've all seen the results of that and it could only have been possible within open source development model we've been building on the foundation of open source is most successful Project Lennox in the architecture of the future hybrid and bringing them to the Enterprise. This is what made Red Hat, the company that we are today and red hats journey. But we also had the set goals, and and many of them seemed insert insurmountable at the time, the first of which was making Lennox the Enterprise standard. And while this is so accepted today, let's take a look at what it took to get there. Our first launch into the Enterprise was rail two dot one. Yes, I know we two dot one, but we knew we couldn't release a one dato product. We knew that and and we didn't. But >> we didn't want to >> allow any reason why anyone of any customer anyone shouldn't should look past rail to solve their problems as an option. Back then, we had to fight every single flavor of Unix in every single account. But we were lucky to have a few initial partners and Big Eyes v partners that supported Rehl out of the gate. But while we had the determination, we knew we also had gaps in order to deliver on our on our priorities. In the early days of rail, I remember going to ask one of our engineers for a past rehl build because we were having a customer issue on it on an older release. And then I watched in horror as he rifled through his desk through a mess of CDs and magically came up and said, I found it here It is told me not to worry that the build this was he thinks this was the bill. This was the right one, and at that point I knew that despite the promise of Lennox, we had a lot of work ahead of us. The not only convinced the world that Lennox was secure, stable, an enterprise ready, but also to make that a reality. But we did. And today this is our reality. It's all of our reality. From the Enterprise Data Center standard to the fastest computers on the planet, Red Hat Enterprise, Lennox has continually risen to the challenge and has become the core foundation that many mission critical customers run and bet their business on. And an even bigger today Lennox is the foundation of which practically every single technology initiative is built upon. Lennox is not only standard toe build on today, it's the standard for innovation that builds around it. That's the innovation that's driving the future as well. We started our story with rail two dot one, and here we are today, seventeen years later, announcing rally as we did as we did last night. It's specifically designed for applications to run across the open hybrid. Clyde Cloud. Railed has become the best operating simp system for on premise all the way out to the cloud, providing that common operating model and workload foundation on which to build hybrid applications. Let's take it. Let's take a look at how far we've come and see this in action. >> Please welcome Red Hat Global director of developer experience, burst Sutter with Josh Boyer, Timothy Kramer, Lars Carl, it's Key and Brent Midwood. All right, we have some amazing things to show you. In just a few short moments, we actually have a lot of things to show you. And actually, Tim and Brandt will be with us momentarily. They're working out a few things in the back because we have a lot of this is gonna be a live demonstration, some incredible capabilities. Now you're going to see clear innovation inside the operating system where we worked incredibly hard to make it vast cities. You're free to manage many, many machines. I want you thinking about that as we go to this process. Now, also, keep in mind that this is the basis our core platform for everything we do here. Red hat. So it is an honor for me to be able to show it to you live on stage today. And so I recognize the many of you in the audience right now. Her hand's on systems administrators, systems, architect, citizens, engineers. And we know that you're under ever growing pressure to deliver needed infrastructure. Resource is ever faster, and that is a key element to what you're thinking about every day. Well, this has been a core theme, and our design decisions find red Odd Enterprise Lennox eight and intelligent operating system, which is making it fundamentally easier for you manage machines that scale. So hold what you're about to see next. Feels like a new superpower and and that redhead azure force multiplier. So first, let me introduce you to a large. He's totally my limits guru. >> I wouldn't call myself a girl, but I I guess you could say that I want to bring Lennox and light meant to more people. >> Okay, Well, let's let's dive in. And we're not about the clinic's eight. >> Sure. Let me go. And Morgan, >> wait a >> second. There's windows. >> Yeah, way Build the weft Consul into Really? That means that for the first time, you can log in from any device including your phone or this standard windows laptop. So you just go ahead and and to my Saturday lance credentials here. >> Okay, so now >> you're putting >> your limits password and over the web. >> Yeah, that might sound a bit scary at first, but of course, we're using the latest security tech by T. L s on dh csp on. Because that's the standard Lennox off site. You can use everything that you used to like a stage keys, OTP, tokens and stuff like this. >> Okay, so now I see the council right here. I love the dashboard overview of the system, but what else can you tell us about this council? >> Right? Like right here. You see the load of the system, some some of its properties. But you can also dive into logs everything that you're used to from the command line, right? Or lookit, services. This's all the services I've running, can start and stuff them and enable >> OK, I love that feature right there. So what about if I have to add a whole new application to this environment? >> Good that you're bringing that up. We build a new future into hell called application streams. Which the way for you to install different versions of your half stack that are supported I'LL show you with Youngmin a command line. But since Windows doesn't have a proper terminal, I'll just do it in the terminal that we built into the Web console Since the browser, I can even make this a bit bigger. Go to, for example, to see the application streams that we have for Poskus. Ijust do module list and I see you know we have ten and nine dot six Both supported tennis a default on defy enable ninety six Now the next time that I installed prescribes it will pull all their lady towards from them at six. >> Ok, so this is very cool. I see two verses of post Chris right here What tennis to default. That is fantastic and the application streams making that happen. But I'm really kind of curious, right? I loved using know js and Java. So what about multiple versions of those? >> Yeah, that's exactly the idea way. Want to keep up with the fast moving ecosystems off programming language? Isn't it a business? >> Okay, now, But I have another key question. I know some people were thinking it right now. What about Python? >> Yeah. In fact, in a minimum and still like this, python gives you command. Not fact. Just have to type it correctly. You can't just install which everyone you want two or three or whichever your application needs. >> Okay, Well, that is I've been burned on that one before. Okay, so no actual. Have a confession for all you guys. Right here. You guys keep this amongst yourselves. Don't let Paul No, I'm actually not a linnet systems administrator. I'm an application developer, an application architect, And I recently had to go figure out how to extend the file system. This is for real. And I'm going to the rat knowledge base and looking up things like, you know, PV create VD, extend resized to f s. And I have to admit, that's hard, >> right? I've opened the storage space for you right here, where you see an overview of your storage. And the council has made for people like you as well not only for people that I knew that when you two lunatics, right? It's if you're running, you're running some of the commands only, you know, some of the time you don't remember them. So, for example, I haven't felt twosome here. That's a little bit too small. Let me just throw it. It's like, you know, dragging this lighter. It calls all the command in the background for you. >> Oh, that is incredible. Is that simple? Just drag and drop. That is fantastic. Well, so I actually, you know, we'll have another question for you. It looks like now this linen systems administration is no longer a dark heart involving arcane commands typed into a black terminal. Like using when those funky ergonomic keyboards you know I'm talking about right? Do >> you know a lot of people, including me and people in the audience like that dark out right? And this is not taking any of that away. It's on additional tool to bring limits to more people. >> Okay, well, that is absolute fantastic. Thank you so much for that Large. And I really love him installing everything is so much easier, including a post gra seeker and, of course, the python that we saw right there. So now I want to change gears for a second because I actually have another situation that I'm always dealing with. And that is every time I want to build a new Lenox system, not only I don't want to have to install those commands again and again, it feels like I'm doing it over and over. So, Josh, how would I create a golden image? One VM image that can use and we have everything pre baked in? >> Yeah, absolutely. But >> we get that question all the time. So really includes image builder technology. Image builder technology is actually all of our hybrid cloud operating system image tools that we use to build our own images and rolled up in a nice, easy to integrate new system. So if I come here in the web console and I go to our image builder tab, it brings us to blueprints, right? Blueprints or what we used to actually control it goes into our golden image. Uh, and I heard you and Lars talking about post present python. So I went and started typing here. So it brings us to this page, but you could go to the selected components, and you can see here I've created a blueprint that has all the python and post press packages in it. Ah, and the interesting thing about this is it build on our existing kickstart technology. But you can use it to deploy that whatever cloud you want. And it's saved so that you don't actually have to know all the various incantations from Amazon toe azure to Google, whatever it's all baked in on. When you do this, you can actually see the dependencies that get brought in as well. Okay. Should we create one life? Yes, please. All right, cool. So if we go back to the blueprints page and we click create blueprint Let's, uh let's make a developer brute blueprint here. So we click great, and you can see here on the left hand side. I've got all of my content served up by Red Hat satellite. We have a lot of great stuff, and really, But we can go ahead and search. So we'LL look for post grows and you know, it's a developer image at the client for some local testing. Um, well, come in here and at the python bits. Probably the development package. We need a compiler if we're going to actually build anything. So look for GCC here and hey, what's your favorite editor? >> A Max, Of course, >> Max. All right. Hey, Lars, about you. I'm more of a person. You Maxim v I All right, Well, if you want to prevent a holy war in your system, you can actually use satellite to filter that out. But we're going to go ahead and Adam Ball, sweetie, I'm a fight on stage. So wait, just point and click. Let the graphical one. And then when we're all done, we just commit our changes, and our image is ready to build. >> Okay, So this VM image we just created right now from that blueprint this is now I can actually go out there and easily deploys of deploy this across multiple cloud providers. And as well as this on stage are where we have right now. >> Yeah, absolutely. We can to play on Amazon as your google any any infrastructure you're looking for so you can really hit your Clyburn hybrid cloud operating system images. >> Okay. All right, listen, we >> just go on, click, create image. Uh, we can select our different types here. I'm gonna go ahead and create a local VM because it's available image, and maybe they want to pass it around or whatever, and I just need a few moments for it to build. >> Okay? So while that's taking a few moments, I know there's another key question in the minds of the audience right now, and you're probably thinking I love what I see. What Right eye right hand Priceline say. But >> what does it >> take to upgrade from seven to eight? So large can you show us and walk us through an upgrade? >> Sure, this's my little Thomas Block that I set up. It's powered by what Chris and secrets over, but it's still running on seven six. So let's upgrade that jump over to my house fee on satellite on. You see all my relate machines here, including the one I showed you what Consul on before. And there is that one with my sun block and there's a couple others. Let me select those as well. This one on that one. Just go up here. Schedule remote job. And she was really great. And hit Submit. I made it so that it makes the booms national before. So if anything was wrong Kans throwback! >> Okay, okay, so now it's progressing. Here, >> it's progressing. Looks like it's running. Doing >> live upgrade on stage. Uh, >> seems like one is failing. What's going on here? Okay, we checked the tree of great Chuck. Oh, yeah, that's the one I was playing around with Butter fest backstage. What? Detective that and you know, it doesn't run the Afghan cause we don't support operating that. >> Okay, so what I'm hearing now? So the good news is, we were protected from possible failed upgrade there, So it sounds like these upgrades are perfectly safe. Aiken, basically, you know, schedule this during a maintenance window and still get some sleep. >> Totally. That's the idea. >> Okay, fantastic. All right. So it looks like upgrades are easy and perfectly safe. And I really love what you showed us there. It's good point. Click operation right from satellite. Ok, so Well, you know, we were checking out upgrades. I want to know Josh. How those v ems coming along. >> They went really well. So you were away for so long. I got a little bored and I took some liberties. >> What do you mean? >> Well, the image Bill And, you know, I decided I'm going to go ahead and deploy here to this Intel machine on stage Esso. I have that up and running in the web. Counsel. I built another one on the arm box, which is actually pretty fast, and that's up and running on this. Our machine on that went so well that I decided to spend up some an Amazon. So I've got a few instances here running an Amazon with the web console accessible there as well. On even more of our pre bill image is up and running an azure with the web console there. So the really cool thing about this bird is that all of these images were built with image builder in a single location, controlling all the content that you want in your golden images deployed across the hybrid cloud. >> Wow, that is fantastic. And you might think that so we actually have more to show you. So thank you so much for that large. And Josh, that is fantastic. Looks like provisioning bread. Enterprise Clinic Systems ate a redhead. Enterprise Enterprise. Rhetta Enterprise Lennox. Eight Systems is Asian ever before, but >> we have >> more to talk to you about. And there's one thing that many of the operations professionals in this room right now no, that provisioning of'em is easy, but it's really day two day three, it's down the road that those viens required day to day maintenance. As a matter of fact, several you folks right now in this audience to have to manage hundreds, if not thousands, of virtual machines I recently spoke to. Gentleman has to manage thirteen hundred servers. So how do you manage those machines? A great scale. So great that they have now joined us is that it looks like they worked things out. So now I'm curious, Tim. How will we manage hundreds, if not thousands, of computers? >> Welbourne, one human managing hundreds or even thousands of'em says, No problem, because we have Ansel automation. And by leveraging Ansel's integration into satellite, not only can we spin up those V em's really quickly, like Josh was just doing, but we can also make ongoing maintenance of them really simple. Come on up here. I'm going to show you here a satellite inventory and his red hat is publishing patches. Weaken with that danceable integration easily apply those patches across our entire fleet of machines. Okay, >> that is fantastic. So he's all the machines can get updated in one fell swoop. >> He sure can. And there's one thing that I want to bring your attention to today because it's brand new. And that's cloud that red hat dot com And here, a cloud that redhead dot com You can view and manage your entire inventory no matter where it sits. Of Redhead Enterprise Lennox like on Prem on stage. Private Cloud or Public Cloud. It's true Hybrid cloud management. >> OK, but one thing. One thing. I know that in the minds of the audience right now. And if you have to manage a large number servers this it comes up again and again. What happens when you have those critical vulnerabilities that next zero day CV could be tomorrow? >> Exactly. I've actually been waiting for a while patiently for you >> to get to the really good stuff. So >> there's one more thing that I wanted to let folks know about. Red Hat Enterprise. The >> next eight and some features that we have there. Oh, >> yeah? What is that? >> So, actually, one of the key design principles of relate is working with our customers over the last twenty years to integrate all the knowledge that we've gained and turn that into insights that we can use to keep our red hat Enterprise Lennox servers running securely, inefficiently. And so what we actually have here is a few things that we could take a look at show folks what that is. >> OK, so we basically have this new feature. We're going to show people right now. And so one thing I want to make sure it's absolutely included within the redhead enterprise in that state. >> Yes. Oh, that's Ah, that's an announcement that we're making this week is that this is a brand new feature that's integrated with Red Hat Enterprise clinics, and it's available to everybody that has a red hat enterprise like subscription. So >> I believe everyone in this room right now has a rail subscriptions, so it's available to all of them. >> Absolutely, absolutely. So let's take a quick look and try this out. So we actually have. Here is a list of about six hundred rules. They're configuration security and performance rules. And this is this list is growing every single day, so customers can actually opt in to the rules that are most that are most applicable to their enterprises. So what we're actually doing here is combining the experience and knowledge that we have with the data that our customers opt into sending us. So customers have opted in and are sending us more data every single night. Then they actually have in total over the last twenty years via any other mechanism. >> Now there's I see now there's some critical findings. That's what I was talking about. But it comes to CVS and things that nature. >> Yeah, I'm betting that those air probably some of the rail seven boxes that we haven't actually upgraded quite yet. So we get back to that. What? I'd really like to show everybody here because everybody has access to this is how easy it is to opt in and enable this feature for real. Okay, let's do that real quick, so I gotta hop back over to satellite here. This is the satellite that we saw before, and I'll grab one of the hosts and we can use the new Web console feature that's part of Railly, and via single sign on I could jump right from satellite over to the Web console. So it's really, really easy. And I'LL grab a terminal here and registering with insights is really, really easy. Is one command troops, and what's happening right now is the box is going to gather some data. It's going to send it up to the cloud, and within just a minute or two, we're gonna have some results that we can look at back on the Web interface. >> I love it so it's just a single command and you're ready to register this box right now. That is super easy. Well, that's fantastic, >> Brent. We started this whole series of demonstrations by telling the audience that Red Hat Enterprise Lennox eight was the easiest, most economical and smartest operating system on the planet, period. And well, I think it's cute how you can go ahead and captain on a single machine. I'm going to show you one more thing. This is Answerable Tower. You can use as a bell tower to managing govern your answerable playbook, usage across your entire organization and with this. What I could do is on every single VM that was spun up here today. Opt in and register insights with a single click of a button. >> Okay, I want to see that right now. I know everyone's waiting for it as well, But hey, you're VM is ready. Josh. Lars? >> Yeah. My clock is running a little late now. Yeah, insights is a really cool feature >> of rail. And I've got it in all my images already. All >> right, I'm doing it all right. And so as this playbook runs across the inventory, I can see the machines registering on cloud that redhead dot com ready to be managed. >> OK, so all those onstage PM's as well as the hybrid cloud VM should be popping in IRC Post Chris equals Well, fantastic. >> That's awesome. Thanks to him. Nothing better than a Red Hat Summit speaker in the first live demo going off script deal. Uh, let's go back and take a look at some of those critical issues affecting a few of our systems here. So you can see this is a particular deanna's mask issue. It's going to affect a couple of machines. We saw that in the overview, and I can actually go and get some more details about what this particular issue is. So if you take a look at the right side of the screen there, there's actually a critical likelihood an impact that's associated with this particular issue. And what that really translates to is that there's a high level of risk to our organization from this particular issue. But also there's a low risk of change. And so what that means is that it's really, really safe for us to go ahead and use answerable to mediate this so I can grab the machines will select those two and we're mediate with answerable. I can create a new playbook. It's our maintenance window, but we'LL do something along the lines of like stuff Tim broke and that'LL be our cause. We name it whatever we want. So we'Ll create that playbook and take a look at it, and it's actually going to give us some details about the machines. You know what, what type of reboots Efendi you're going to be needed and what we need here. So we'LL go ahead and execute the playbook and what you're going to see is the outputs goingto happen in real time. So this is happening from the cloud were affecting machines. No matter where they are, they could be on Prem. They could be in a hybrid cloud, a public cloud or in a private cloud. And these things are gonna be remediated very, very easily with answerable. So it's really, really awesome. Everybody here with a red hat. Enterprise licks Lennox subscription has access to this now, so I >> kind of want >> everybody to go try this like, we really need to get this thing going and try it out right now. But >> don't know, sent about the room just yet. You get stay here >> for okay, Mr. Excitability, I think after this keynote, come back to the red hat booth and there's an optimization section. You can come talk to our insights engineers. And even though it's really easy to get going on your own, they can help you out. Answer any questions you might have. So >> this is really the start of a new era with an intelligent operating system and beauty with intelligence you just saw right now what insights that troubles you. Fantastic. So we're enabling systems administrators to manage more red in private clinics, a greater scale than ever before. I know there's a lot more we could show you, but we're totally out of time at this point, and we kind of, you know, when a little bit sideways here moments. But we need to get off the stage. But there's one thing I want you guys to think about it. All right? Do come check out the in the booth. Like Tim just said also in our debs, Get hands on red and a prize winning state as well. But really, I want you to think about this one human and a multitude of servers. And if you remember that one thing asked you upfront. Do you feel like you get a new superpower and redhead? Is your force multiplier? All right, well, thank you so much. Josh and Lars, Tim and Brent. Thank you. And let's get Paul back on stage. >> I went brilliant. No, it's just as always, >> amazing. I mean, as you can tell from last night were really, really proud of relate in that coming out here at the summit. And what a great way to showcase it. Thanks so much to you. Birth. Thanks, Brent. Tim, Lars and Josh. Just thanks again. So you've just seen this team demonstrate how impactful rail Khun b on your data center. So hopefully hopefully many of you. If not all of you have experienced that as well. But it was super computers. We hear about that all the time, as I just told you a few minutes ago, Lennox isn't just the foundation for enterprise and cloud computing. It's also the foundation for the fastest super computers in the world. In our next guest is here to tell us a lot more about that. >> Please welcome Lawrence Livermore National Laboratory. HPC solution Architect Robin Goldstone. >> Thank you so much, Robin. >> So welcome. Welcome to the summit. Welcome to Boston. And thank thank you so much for coming for joining us. Can you tell us a bit about the goals of Lawrence Livermore National Lab and how high high performance computing really works at this level? >> Sure. So Lawrence Livermore National >> Lab was established during the Cold War to address urgent national security needs by advancing the state of nuclear weapons, science and technology and high performance computing has always been one of our core capabilities. In fact, our very first supercomputer, ah Univac one was ordered by Edward Teller before our lab even opened back in nineteen fifty two. Our mission has evolved since then to cover a broad range of national security challenges. But first and foremost, our job is to ensure the safety, security and reliability of the nation's nuclear weapons stockpile. Oh, since the US no longer performs underground nuclear testing, our ability to certify the stockpile depends heavily on science based science space methods. We rely on H P C to simulate the behavior of complex weapons systems to ensure that they can function as expected, well beyond their intended life spans. That's actually great. >> So are you really are still running on that on that Univac? >> No, Actually, we we've moved on since then. So Sierra is Lawrence Livermore. Its latest and greatest supercomputer is currently the Seconds spastic supercomputer in the world and for the geeks in the audience, I think there's a few of them out there. We put up some of the specs of Syrah on the screen behind me, a couple of things worth highlighting our Sierra's peak performance and its power utilisation. So one hundred twenty five Pata flops of performance is equivalent to about twenty thousand of those Xbox one excess that you mentioned earlier and eleven point six megawatts of power required Operate Sierra is enough to power around eleven thousand homes. Syria is a very large and complex system, but underneath it all, it starts out as a collection of servers running Lin IX and more specifically, rail. >> So did Lawrence. Did Lawrence Livermore National Lab National Lab used Yisrael before >> Sierra? Oh, yeah, most definitely. So we've been running rail for a very long time on what I'll call our mid range HPC systems. So these clusters, built from commodity components, are sort of the bread and butter of our computer center. And running rail on these systems provides us with a continuity of operations and a common user environment across multiple generations of hardware. Also between Lawrence Livermore in our sister labs, Los Alamos and Sandia. Alongside these commodity clusters, though, we've always had one sort of world class supercomputer like Sierra. Historically, these systems have been built for a sort of exotic proprietary hardware running entirely closed source operating systems. Anytime something broke, which was often the Vander would be on the hook to fix it. And you know, >> that sounds >> like a good model, except that what we found overtime is most the issues that we have on these systems were either due to the extreme scale or the complexity of our workloads. Vendors seldom had a system anywhere near the size of ours, and we couldn't give them our classified codes. So their ability to reproduce our problem was was pretty limited. In some cases, they've even sent an engineer on site to try to reproduce our problems. But even then, sometimes we wouldn't get a fix for months or else they would just tell us they weren't going to fix the problem because we were the only ones having it. >> So for many of us, for many of us, the challenges is one of driving reasons for open source, you know, for even open source existing. How has how did Sierra change? Things are on open source for >> you. Sure. So when we developed our technical requirements for Sierra, we had an explicit requirement that we want to run an open source operating system and a strong preference for rail. At the time, IBM was working with red hat toe add support Terrell for their new little Indian power architecture. So it was really just natural for them to bid a red. A rail bay system for Sierra running Raylan Cyril allows us to leverage the model that's worked so well for us for all this time on our commodity clusters any packages that we build for X eighty six, we can now build those packages for power as well as our market texture using our internal build infrastructure. And while we have a formal support relationship with IBM, we can also tap our in house colonel developers to help debug complex problems are sys. Admin is Khun now work on any of our systems, including Sierra, without having toe pull out their cheat sheet of obscure proprietary commands. Our users get a consistent software environment across all our systems. And if the security vulnerability comes out, we don't have to chase around getting fixes from Multan slo es fenders. >> You know, you've been able, you've been able to extend your foundation from all the way from X eighty six all all the way to the extract excess Excuse scale supercomputing. We talk about giving customers all we talked about it all the time. A standard operational foundation to build upon. This isn't This isn't exactly what we've envisioned. So So what's next for you >> guys? Right. So what's next? So Sierra's just now going into production. But even so, we're already working on the contract for our next supercomputer called El Capitan. That's scheduled to be delivered the Lawrence Livermore in the twenty twenty two twenty timeframe. El Capitan is expected to be about ten times the performance of Sierra. I can't share any more details about that system right now, but we are hoping that we're going to be able to continue to build on a solid foundation. That relish provided us for well over a decade. >> Well, thank you so much for your support of realm over the years, Robin. And And thank you so much for coming and tell us about it today. And we can't wait to hear more about El Capitan. Thank you. Thank you very much. So now you know why we're so proud of realm. And while you saw confetti cannons and T shirt cannons last night, um, so you know, as as burned the team talked about the demo rail is the force multiplier for servers. We've made Lennox one of the most powerful platforms in the history of platforms. But just as Lennox has become a viable platform with access for everyone, and rail has become viable, more viable every day in the enterprise open source projects began to flourish around the operating system. And we needed to bring those projects to our enterprise customers in the form of products with the same trust models as we did with Ralph seeing the incredible progress of software development occurring around Lennox. Let's let's lead us to the next goal that we said tow, tow ourselves. That goal was to make hybrid cloud the default enterprise for the architecture. How many? How many of you out here in the audience or are Cesar are? HC sees how many out there a lot. A lot. You are the people that our building the next generation of computing the hybrid cloud, you know, again with like just like our goals around Lennox. This goals might seem a little daunting in the beginning, but as a community we've proved it time and time again. We are unstoppable. Let's talk a bit about what got us to the point we're at right right now and in the work that, as always, we still have in front of us. We've been on a decade long mission on this. Believe it or not, this mission was to build the capabilities needed around the Lenox operating system to really build and make the hybrid cloud. When we saw well, first taking hold in the enterprise, we knew that was just taking the first step. Because for a platform to really succeed, you need applications running on it. And to get those applications on your platform, you have to enable developers with the tools and run times for them to build, to build upon. Over the years, we've closed a few, if not a lot of those gaps, starting with the acquisition of J. Boss many years ago, all the way to the new Cuban Eddie's native code ready workspaces we launched just a few months back. We realized very early on that building a developer friendly platform was critical to the success of Lennox and open source in the enterprise. Shortly after this, the public cloud stormed onto the scene while our first focus as a company was done on premise in customer data centers, the public cloud was really beginning to take hold. Rehl very quickly became the standard across public clouds, just as it was in the enterprise, giving customers that common operating platform to build their applications upon ensuring that those applications could move between locations without ever having to change their code or operating model. With this new model of the data center spread across so many multiple environments, management had to be completely re sought and re architected. And given the fact that environments spanned multiple locations, management, real solid management became even more important. Customers deploying in hybrid architectures had to understand where their applications were running in how they were running, regardless of which infrastructure provider they they were running on. We invested over the years with management right alongside the platform, from satellite in the early days to cloud forms to cloud forms, insights and now answerable. We focused on having management to support the platform wherever it lives. Next came data, which is very tightly linked toe applications. Enterprise class applications tend to create tons of data and to have a common operating platform foyer applications. You need a storage solutions. That's Justus, flexible as that platform able to run on premise. Just a CZ. Well, as in the cloud, even across multiple clouds. This let us tow acquisitions like bluster, SEF perma bitch in Nubia, complimenting our Pratt platform with red hat storage for us, even though this sounds very condensed, this was a decade's worth of investment, all in preparation for building the hybrid cloud. Expanding the portfolio to cover the areas that a customer would depend on to deploy riel hybrid cloud architectures, finding any finding an amplifying the right open source project and technologies, or filling the gaps with some of these acquisitions. When that necessarily wasn't available by twenty fourteen, our foundation had expanded, but one big challenge remained workload portability. Virtual machine formats were fragmented across the various deployments and higher level framework such as Java e still very much depended on a significant amount of operating system configuration and then containers happened containers, despite having a very long being in existence for a very long time. As a technology exploded on the scene in twenty fourteen, Cooper Netease followed shortly after in twenty fifteen, allowing containers to span multiple locations and in one fell swoop containers became the killer technology to really enable the hybrid cloud. And here we are. Hybrid is really the on ly practical reality in way for customers and a red hat. We've been investing in all aspects of this over the last eight plus years to make our customers and partners successful in this model. We've worked with you both our customers and our partners building critical realm in open shift deployments. We've been constantly learning about what has caused problems and what has worked well in many cases. And while we've and while we've amassed a pretty big amount of expertise to solve most any challenge in in any area that stack, it takes more than just our own learning's to build the next generation platform. Today we're also introducing open shit for which is the culmination of those learnings. This is the next generation of the application platform. This is truly a platform that has been built with our customers and not simply just with our customers in mind. This is something that could only be possible in an open source development model and just like relish the force multiplier for servers. Open shift is the force multiplier for data centers across the hybrid cloud, allowing customers to build thousands of containers and operate them its scale. And we've also announced open shift, and we've also announced azure open shift. Last night. Satya on this stage talked about that in depth. This is all about extending our goals of a common operating platform enabling applications across the hybrid cloud, regardless of whether you run it yourself or just consume it as a service. And with this flagship release, we are also introducing operators, which is the central, which is the central feature here. We talked about this work last year with the operator framework, and today we're not going to just show you today. We're not going to just show you open shift for we're going to show you operators running at scale operators that will do updates and patches for you, letting you focus more of your time and running your infrastructure and running running your business. We want to make all this easier and intuitive. So let's have a quick look at how we're doing. Just that >> painting. I know all of you have heard we're talking to pretend to new >> customers about the travel out. So new plan. Just open it up as a service been launched by this summer. Look, I know this is a big quest for not very big team. I'm open to any and all ideas. >> Please welcome back to the stage. Red Hat Global director of developer Experience burst Sutter with Jessica Forrester and Daniel McPherson. All right, we're ready to do some more now. Now. Earlier we showed you read Enterprise Clinic St running on lots of different hardware like this hardware you see right now And we're also running across multiple cloud providers. But now we're going to move to another world of Lennox Containers. This is where you see open shift four on how you can manage large clusters of applications from eggs limits containers across the hybrid cloud. We're going to see this is where suffer operators fundamentally empower human operators and especially make ups and Deb work efficiently, more efficiently and effectively there together than ever before. Rights. We have to focus on the stage right now. They're represent ops in death, and we're gonna go see how they reeled in application together. Okay, so let me introduce you to Dan. Dan is totally representing all our ops folks in the audience here today, and he's telling my ops, comfort person Let's go to call him Mr Ops. So Dan, >> thanks for with open before, we had a much easier time setting up in maintaining our clusters. In large part, that's because open shit for has extended management of the clusters down to the infrastructure, the diversity kinds of parent. When you take >> a look at the open ship console, >> you can now see the machines that make up the cluster where machine represents the infrastructure. Underneath that Cooper, Eddie's node open shit for now handles provisioning Andy provisioning of those machines. From there, you could dig into it open ship node and see how it's configured and monitor how it's behaving. So >> I'm curious, >> though it does this work on bare metal infrastructure as well as virtualized infrastructure. >> Yeah, that's right. Burn So Pa Journal nodes, no eternal machines and open shit for can now manage it all. Something else we found extremely useful about open ship for is that it now has the ability to update itself. We can see this cluster hasn't update available and at the press of a button. Upgrades are responsible for updating. The entire platform includes the nodes, the control plane and even the operating system and real core arrests. All of this is possible because the infrastructure components and their configuration is now controlled by technology called operators. Thes software operators are responsible for aligning the cluster to a desired state. And all of this makes operational management of unopened ship cluster much simpler than ever before. All right, I >> love the fact that all that's been on one console Now you can see the full stack right all way down to the bare metal right there in that one console. Fantastic. So I wanted to scare us for a moment, though. And now let's talk to Deva, right? So Jessica here represents our all our developers in the room as my facts. He manages a large team of developers here Red hat. But more importantly, she represents our vice president development and has a large team that she has to worry about on a regular basis of Jessica. What can you show us? We'LL burn My team has hundreds of developers and were constantly under pressure to deliver value to our business. And frankly, we can't really wait for Dan and his ops team to provisioned the infrastructure and the services that we need to do our job. So we've chosen open shift as our platform to run our applications on. But until recently, we really struggled to find a reliable source of Cooper Netease Technologies that have the operational characteristics that Dan's going to actually let us install through the cluster. But now, with operator, How bio, we're really seeing the V ecosystem be unlocked. And the technology's there. Things that my team needs, its databases and message cues tracing and monitoring. And these operators are actually responsible for complex applications like Prometheus here. Okay, they're written in a variety of languages, danceable, but that is awesome. So I do see a number of options there already, and preaches is a great example. But >> how do you >> know that one? These operators really is mature enough and robust enough for Dan and the outside of the house. Wilbert, Here we have the operator maturity model, and this is going to tell me and my team whether this particular operator is going to do a basic install if it's going to upgrade that application over time through different versions or all the way out to full auto pilot, where it's automatically scaling and tuning the application based on the current environment. And it's very cool. So coming over toothy open shift Consul, now we can actually see Dan has made the sequel server operator available to me and my team. That's the database that we're using. A sequel server. That's a great example. So cynics over running here in the cluster? But this is a great example for a developer. What if I want to create a new secret server instance? Sure, we're so it's as easy as provisioning any other service from the developer catalog. We come in and I can type for sequel server on what this is actually creating is, ah, native resource called Sequel Server, and you can think of that like a promise that a sequel server will get created. The operator is going to see that resource, install the application and then manage it over its life cycle, KAL, and from this install it operators view, I can see the operators running in my project and which resource is its managing Okay, but I'm >> kind of missing >> something here. I see this custom resource here, the sequel server. But where the community's resource is like pods. Yeah, I think it's cool that we get this native resource now called Sequel Server. But if I need to, I can still come in and see the native communities. Resource is like your staple set in service here. Okay, that is fantastic. Now, we did say earlier on, though, like many of our customers in the audience right now, you have a large team of engineers. Lost a large team of developers you gotta handle. You gotta have more than one secret server, right? We do one for every team as we're developing, and we use a lot of other technologies running on open shift as well, including Tomcat and our Jenkins pipelines and our dough js app that is gonna actually talk to that sequel server database. Okay, so this point we can kind of provisions, Some of these? Yes. Oh, since all of this is self service for me and my team's, I'm actually gonna go and create one of all of those things I just said on all of our projects, right Now, if you just give me a minute, Okay? Well, right. So basically, you're going to knock down No Jazz Jenkins sequel server. All right, now, that's like hundreds of bits of application level infrastructure right now. Live. So, Dan, are you not terrified? Well, I >> guess I should have done a little bit better >> job of managing guests this quota and historically just can. I might have had some conflict here because creating all these new applications would admit my team now had a massive back like tickets to work on. But now, because of software operators, my human operators were able to run our infrastructure at scale. So since I'm long into the cluster here as the cluster admin, I get this view of pods across all projects. And so I get an idea of what's happening across the entire cluster. And so I could see now we have four hundred ninety four pods already running, and there's a few more still starting up. And if I scroll to the list, we can see the different workloads Jessica just mentioned of Tomcats. And no Gs is And Jenkins is and and Siegel servers down here too, you know, I see continues >> creating and you have, like, close to five hundred pods running >> there. So, yeah, filters list down by secret server, so we could just see. Okay, But >> aren't you not >> running going around a cluster capacity at some point? >> Actually, yeah, we we definitely have a limited capacity in this cluster. And so, luckily, though, we already set up auto scale er's And so because the additional workload was launching, we see now those outer scholars have kicked in and some new machines are being created that don't yet have noticed. I'm because they're still starting up. And so there's another good view of this as well, so you can see machine sets. We have one machine set per availability zone, and you could see the each one is now scaling from ten to twelve machines. And the way they all those killers working is for each availability zone, they will. If capacities needed, they will add additional machines to that availability zone and then later effect fast. He's no longer needed. It will automatically take those machines away. >> That is incredible. So right now we're auto scaling across multiple available zones based on load. Okay, so looks like capacity planning and automation is fully, you know, handle this point. But I >> do have >> another question for year logged in. Is the cluster admin right now into the console? Can you show us your view of >> operator suffer operators? Actually, there's a couple of unique views here for operators, for Cluster admits. The first of those is operator Hub. This is where a cluster admin gets the ability to curate the experience of what operators are available to users of the cluster. And so obviously we already have the secret server operator installed, which which we've been using. The other unique view is operator management. This gives a cluster I've been the ability to maintain the operators they've already installed. And so if we dig in and see the secret server operator, well, see, we haven't set up for manual approval. And what that means is if a new update comes in for a single server, then a cluster and we would have the ability to approve or disapprove with that update before installs into the cluster, we'LL actually and there isn't upgrade that's available. Uh, I should probably wait to install this, though we're in the middle of scaling out this cluster. And I really don't want to disturb Jessica's application. Workflow. >> Yeah, so, actually, Dan, it's fine. My app is already up. It's running. Let me show it to you over here. So this is our products application that's talking to that sequel server instance. And for debugging purposes, we can see which version of sequel server we're currently talking to. Its two point two right now. And then which pod? Since this is a cluster, there's more than one secret server pod we could be connected to. Okay, I could see right there the bounder screeners they know to point to. That's the version we have right now. But, you know, >> this is kind of >> point of software operators at this point. So, you know, everyone in this room, you know, wants to see you hit that upgrade button. Let's do it. Live here on stage. Right, then. All >> right. All right. I could see where this is going. So whenever you updated operator, it's just like any other resource on communities. And so the first thing that happens is the operator pot itself gets updated so we actually see a new version of the operator is currently being created now, and what's that gets created, the overseer will be terminated. And that point, the new, softer operator will notice. It's now responsible for managing lots of existing Siegel servers already in the environment. And so it's then going Teo update each of those sickle servers to match to the new version of the single server operator and so we could see it's running. And so if we switch now to the all projects view and we filter that list down by sequel server, then we should be able to see us. So lots of these sickle servers are now being created and the old ones are being terminated. So is the rolling update across the cluster? Exactly a So the secret server operator Deploy single server and an H A configuration. And it's on ly updates a single instance of secret server at a time, which means single server always left in nature configuration, and Jessica doesn't really have to worry about downtime with their applications. >> Yeah, that's awesome dance. So glad the team doesn't have to worry about >> that anymore and just got I think enough of these might have run by Now, if you try your app again might be updated. >> Let's see Jessica's application up here. All right. On laptop three. >> Here we go. >> Fantastic. And yet look, we're We're into two before we're onto three. Now we're on to victory. Excellent on. >> You know, I actually works so well. I don't even see a reason for us to leave this on manual approval. So I'm going to switch this automatic approval. And then in the future, if a new single server comes in, then we don't have to do anything, and it'll be all automatically updated on the cluster. >> That is absolutely fantastic. And so I was glad you guys got a chance to see that rolling update across the cluster. That is so cool. The Secret Service database being automated and fully updated. That is fantastic. Alright, so I can see how a software operator doesn't able. You don't manage hundreds if not thousands of applications. I know a lot of folks or interest in the back in infrastructure. Could you give us an example of the infrastructure >> behind this console? Yeah, absolutely. So we all know that open shift is designed that run in lots of different environments. But our teams think that as your redhead over, Schiff provides one of the best experiences by deeply integrating the open chief Resource is into the azure console, and it's even integrated into the azure command line toll and the easy open ship man. And, as was announced yesterday, it's now available for everyone to try out. And there's actually one more thing we wanted to show Everyone related to open shit, for this is all so new with a penchant for which is we now have multi cluster management. This gives you the ability to keep track of all your open shift environments, regardless of where they're running as well as you can create new clusters from here. And I'll dig into the azure cluster that we were just taking a look at. >> Okay, but is this user and face something have to install them one of my existing clusters? >> No, actually, this is the host of service that's provided by Red hat is part of cloud that redhead that calm and so all you have to do is log in with your red hair credentials to get access. >> That is incredible. So one console, one user experience to see across the entire hybrid cloud we saw earlier with Red update. Right and red embers. Thank Satan. Now we see it for multi cluster management. But home shift so you can fundamentally see. Now the suffer operators do finally change the game when it comes to making human operators vastly more productive and, more importantly, making Devon ops work more efficiently together than ever before. So we saw the rich ice vehicle system of those software operators. We can manage them across the Khyber Cloud with any, um, shift instance. And more importantly, I want to say Dan and Jessica for helping us with this demonstration. Okay, fantastic stuff, guys. Thank you so much. Let's get Paul back out here >> once again. Thanks >> so much to burn his team. Jessica and Dan. So you've just seen how open shift operators can help you manage hundreds, even thousands of applications. Install, upgrade, remove nodes, control everything about your application environment, virtual physical, all the way out to the cloud making, making things happen when the business demands it even at scale, because that's where it's going to get. Our next guest has lots of experience with demand at scale. and they're using open source container management to do it. Their work, their their their work building a successful cloud, First platform and there, the twenty nineteen Innovation Award winner. >> Please welcome twenty nineteen Innovation Award winner. Cole's senior vice president of technology, Rich Hodak. >> How you doing? Thanks. >> Thanks so much for coming out. We really appreciate it. So I guess you guys set some big goals, too. So can you baby tell us about the bold goal? Helped you personally help set for Cole's. And what inspired you to take that on? Yes. So it was twenty seventeen and life was pretty good. I had no gray hair and our business was, well, our tech was working well, and but we knew we'd have to do better into the future if we wanted to compete. Retails being disrupted. Our customers are asking for new experiences, So we set out on a goal to become an open hybrid cloud platform, and we chose Red had to partner with us on a lot of that. We set off on a three year journey. We're currently in Year two, and so far all KP eyes are on track, so it's been a great journey thus far. That's awesome. That's awesome. So So you Obviously, Obviously you think open source is the way to do cloud computing. So way absolutely agree with you on that point. So So what? What is it that's convinced you even more along? Yeah, So I think first and foremost wait, do we have a lot of traditional IAS fees? But we found that the open source partners actually are outpacing them with innovation. So I think that's where it starts for us. Um, secondly, we think there's maybe some financial upside to going more open source. We think we can maybe take some cost out unwind from these big fellas were in and thirdly, a CZ. We go to universities. We started hearing. Is we interviewed? Hey, what is Cole's doing with open source and way? Wanted to use that as a lever to help recruit talent. So I'm kind of excited, you know, we partner with Red Hat on open shift in in Rail and Gloucester and active M Q and answerable and lots of things. But we've also now launched our first open source projects. So it's really great to see this journey. We've been on. That's awesome, Rich. So you're in. You're in a high touch beta with with open shift for So what? What features and components or capabilities are you most excited about and looking forward to what? The launch and you know, and what? You know what? What are the something maybe some new goals that you might be able to accomplish with with the new features. And yeah, So I will tell you we're off to a great start with open shift. We've been on the platform for over a year now. We want an innovation award. We have this great team of engineers out here that have done some outstanding work. But certainly there's room to continue to mature that platform. It calls, and we're excited about open shift, for I think there's probably three things that were really looking forward to. One is we're looking forward to, ah, better upgrade process. And I think we saw, you know, some of that in the last demo. So upgrades have been kind of painful up until now. So we think that that that will help us. Um, number two, A lot of our open shift workloads today or the workloads. We run an open shifts are the stateless apse. Right? And we're really looking forward to moving more of our state full lapse into the platform. And then thirdly, I think that we've done a great job of automating a lot of the day. One stuff, you know, the provisioning of, of things. There's great opportunity o out there to do mohr automation for day two things. So to integrate mohr with our messaging systems in our database systems and so forth. So we, uh we're excited. Teo, get on board with the version for wear too. So, you know, I hope you, Khun, we can help you get to the next goals and we're going to continue to do that. Thank you. Thank you so much rich, you know, all the way from from rail toe open shift. It's really exciting for us, frankly, to see our products helping you solve World War were problems. What's you know what? Which is. Really? Why way do this and and getting into both of our goals. So thank you. Thank you very much. And thanks for your support. We really appreciate it. Thanks. It has all been amazing so far and we're not done. A critical part of being successful in the hybrid cloud is being successful in your data center with your own infrastructure. We've been helping our customers do that in these environments. For almost twenty years now, we've been running the most complex work loads in the world. But you know, while the public cloud has opened up tremendous possibilities, it also brings in another type of another layer of infrastructure complexity. So what's our next goal? Extend your extend your data center all the way to the edge while being as effective as you have been over the last twenty twenty years, when it's all at your own fingertips. First from a practical sense, Enterprises air going to have to have their own data centers in their own environment for a very long time. But there are advantages of being able to manage your own infrastructure that expand even beyond the public cloud all the way out to the edge. In fact, we talked about that very early on how technology advances in computer networking is storage are changing the physical boundaries of the data center every single day. The need, the need to process data at the source is becoming more and more critical. New use cases Air coming up every day. Self driving cars need to make the decisions on the fly. In the car factory processes are using a I need to adapt in real time. The factory floor has become the new edge of the data center, working with things like video analysis of a of A car's paint job as it comes off the line, where a massive amount of data is on ly needed for seconds in order to make critical decisions in real time. If we had to wait for the video to go up to the cloud and back, it would be too late. The damage would have already been done. The enterprise is being stretched to be able to process on site, whether it's in a car, a factory, a store or in eight or nine PM, usually involving massive amounts of data that just can't easily be moved. Just like these use cases couldn't be solved in private cloud alone because of things like blatant see on data movement, toe address, real time and requirements. They also can't be solved in public cloud alone. This is why open hybrid is really the model that's needed in the only model forward. So how do you address this class of workload that requires all of the above running at the edge? With the latest technology all its scale, let me give you a bit of a preview of what we're working on. We are taking our open hybrid cloud technologies to the edge, Integrated with integrated with Aro AM Hardware Partners. This is a preview of a solution that will contain red had open shift self storage in K V M virtual ization with Red Hat Enterprise Lennox at the core, all running on pre configured hardware. The first hardware out of the out of the gate will be with our long time. Oh, am partner Del Technologies. So let's bring back burn the team to see what's right around the corner. >> Please welcome back to the stage. Red Hat. Global director of developer Experience burst Sutter with Kareema Sharma. Okay, We just how was your Foreign operators have redefined the capabilities and usability of the open hybrid cloud, and now we're going to show you a few more things. Okay, so just be ready for that. But I know many of our customers in this audience right now, as well as the customers who aren't even here today. You're running tens of thousands of applications on open chef clusters. We know that disappearing right now, but we also know that >> you're not >> actually in the business of running terminators clusters. You're in the business of oil and gas from the business retail. You're in a business transportation, you're in some other business and you don't really want to manage those things at all. We also know though you have lo latest requirements like Polish is talking about. And you also dated gravity concerns where you >> need to keep >> that on your premises. So what you're about to see right now in this demonstration is where we've taken open ship for and made a bare metal cluster right here on this stage. This is a fully automated platform. There is no underlying hyper visor below this platform. It's open ship running on bare metal. And this is your crew vanities. Native infrastructure, where we brought together via mes containers networking and storage with me right now is green mush arma. She's one of her engineering leaders responsible for infrastructure technologies. Please welcome to the stage, Karima. >> Thank you. My pleasure to be here, whether it had summit. So let's start a cloud. Rid her dot com and here we can see the classroom Dannon Jessica working on just a few moments ago From here we have a bird's eye view ofthe all of our open ship plasters across the hybrid cloud from multiple cloud providers to on premises and noticed the spare medal last year. Well, that's the one that my team built right here on this stage. So let's go ahead and open the admin console for that last year. Now, in this demo, we'LL take a look at three things. A multi plaster inventory for the open Harbor cloud at cloud redhead dot com. Second open shift container storage, providing convert storage for virtual machines and containers and the same functionality for cloud vert and bare metal. And third, everything we see here is scuba unit is native, so by plugging directly into communities, orchestration begin common storage. Let working on monitoring facilities now. Last year, we saw how continue native actualization and Q Bert allow you to run virtual machines on Cabinet is an open shift, allowing for a single converge platform to manage both containers and virtual machines. So here I have this dark net project now from last year behead of induced virtual machine running it S P darknet application, and we had started to modernize and continue. Arise it by moving. Parts of the application from the windows began to the next containers. So let's take a look at it here. I have it again. >> Oh, large shirt, you windows. Earlier on, I was playing this game back stage, so it's just playing a little solitaire. Sorry about that. >> So we don't really have time for that right now. Birds. But as I was saying, Over here, I have Visions Studio Now the window's virtual machine is just another container and open shift and the i d be service for the virtual machine. It's just another service in open shift open shifts. Running both containers and virtual machines together opens a whole new world of possibilities. But why stop there? So this here be broadened to come in. It is native infrastructure as our vision to redefine the operation's off on premises infrastructure, and this applies to all matters of workloads. Using open shift on metal running all the way from the data center to the edge. No by your desk, right to main benefits. Want to help reduce the operation casts And second, to help bring advance good when it is orchestration concept to your infrastructure. So next, let's take a look at storage. So open shift container storage is software defined storage, providing the same functionality for both the public and the private lads. By leveraging the operator framework, open shift container storage automatically detects the available hardware configuration to utilize the discs in the most optimal vein. So then adding my note, you don't have to think about how to balance the storage. Storage is just another service running an open shift. >> And I really love this dashboard quite honestly, because I love seeing all the storage right here. So I'm kind of curious, though. Karima. What kind of storage would you What, What kind of applications would you use with the storage? >> Yeah, so this is the persistent storage. To be used by a database is your files and any data from applications such as a Magic Africa. Now the A Patrick after operator uses school, been at this for scheduling and high availability, and it uses open shift containers. Shortest. Restore the messages now Here are on premises. System is running a caf co workload streaming sensor data on DH. We want toe sort it and act on it locally, right In a minute. A place where maybe we need low latency or maybe in a data lake like situation. So we don't want to send the starter to the cloud. Instead, we want to act on it locally, right? Let's look at the griffon a dashboard and see how our system is doing so with the incoming message rate of about four hundred messages for second, the system seems to be performing well, right? I want to emphasize this is a fully integrated system. We're doing the testing An optimization sze so that the system can Artoo tune itself based on the applications. >> Okay, I love the automated operations. Now I am a curious because I know other folks in the audience want to know this too. What? Can you tell us more about how there's truly integrated communities can give us an example of that? >> Yes. Again, You know, I want to emphasize everything here is managed poorly by communities on open shift. Right. So you can really use the latest coolest to manage them. All right. Next, let's take a look at how easy it is to use K native with azure functions to script alive Reaction to a live migration event. >> Okay, Native is a great example. If actually were part of my breakout session yesterday, you saw me demonstrate came native. And actually, if you want to get hands on with it tonight, you can come to our guru night at five PM and actually get hands on like a native. So I really have enjoyed using K. Dated myself as a software developer. And but I am curious about the azure functions component. >> Yeah, so as your functions is a function is a service engine developed by Microsoft fully open source, and it runs on top of communities. So it works really well with our on premises open shift here. Right now, I have a simple azure function that I already have here and this azure function, you know, Let's see if this will send out a tweet every time we live My greater Windows virtual machine. Right. So I have it integrated with open shift on DH. Let's move a note to maintenance to see what happens. So >> basically has that via moves. We're going to see the event triggered. They trigger the function. >> Yeah, important point I want to make again here. Windows virtue in machines are equal citizens inside of open shift. We're investing heavily in automation through the use of the operator framework and also providing integration with the hardware. Right, So next, Now let's move that note to maintain it. >> But let's be very clear here. I wanna make sure you understand one thing, and that is there is no underlying virtual ization software here. This is open ship running on bear. Meddle with these bare metal host. >> That is absolutely right. The system can automatically discover the bare metal hosts. All right, so here, let's move this note to maintenance. So I start them Internets now. But what will happen at this point is storage will heal itself, and communities will bring back the same level of service for the CAFTA application by launching a part on another note and the virtual machine belive my great right and this will create communities events. So we can see. You know, the events in the event stream changes have started to happen. And as a result of this migration, the key native function will send out a tweet to confirm that could win. It is native infrastructure has indeed done the migration for the live Ian. Right? >> See the events rolling through right there? >> Yeah. All right. And if we go to Twitter? >> All right, we got tweets. Fantastic. >> And here we can see the source Nord report. Migration has succeeded. It's a pretty cool stuff right here. No. So we want to bring you a cloud like experience, but this means is we're making operational ease a fuse as a top goal. We're investing heavily in encapsulating management knowledge and working to pre certify hardware configuration in working with their partners such as Dell, and they're dead already. Note program so that we can provide you guidance on specific benchmarks for specific work loads on our auto tuning system. >> All right, well, this is tow. I know right now, you're right thing, and I want to jump on the stage and check out the spare metal cluster. But you should not right. Wait After the keynote didn't. Come on, check it out. But also, I want you to go out there and think about visiting our partner Del and their booth where they have one. These clusters also. Okay, So this is where vmc networking and containers the storage all come together And a Kurban in his native infrastructure. You've seen right here on this stage, but an agreement. You have a bit more. >> Yes. So this is literally the cloud coming down from the heavens to us. >> Okay? Right here, Right now. >> Right here, right now. So, to close the loop, you can have your plaster connected to cloud redhead dot com for our insights inside reliability engineering services so that we can proactively provide you with the guidance through automated analyses of telemetry in logs and help flag a problem even before you notice you have it Beat software, hardware, performance, our security. And one more thing. I want to congratulate the engineers behind the school technology. >> Absolutely. There's a lot of engineers here that worked on this cluster and worked on the stack. Absolutely. Thank you. Really awesome stuff. And again do go check out our partner Dale. They're just out that door I can see them from here. They have one. These clusters get a chance to talk to them about how to run your open shift for on a bare metal cluster as well. Right, Kareema, Thank you so much. That was totally awesome. We're at a time, and we got to turn this back over to Paul. >> Thank you. Right. >> Okay. Okay. Thanks >> again. Burned, Kareema. Awesome. You know, So even with all the exciting capabilities that you're seeing, I want to take a moment to go back to the to the first platform tenant that we learned with rail, that the platform has to be developer friendly. Our next guest knows something about connecting a technology like open shift to their developers and part of their company. Wide transformation and their ability to shift the business that helped them helped them make take advantage of the innovation. Their Innovation award winner this year. Please, Let's welcome Ed to the stage. >> Please welcome. Twenty nineteen. Innovation Award winner. BP Vice President, Digital transformation. Ed Alford. >> Thanks, Ed. How your fake Good. So was full. Get right into it. What we go you guys trying to accomplish at BP and and How is the goal really important in mandatory within your organization? Support on everyone else were global energy >> business, with operations and over seventy countries. Andi. We've embraced what we call the jewel challenge, which is increasing the mind for energy that we have as individuals in the world. But we need to produce the energy with fuel emissions. It's part of that. One of our strategic priorities that we >> have is to modernize the whole group on. That means simplifying our processes and enhancing >> productivity through digital solutions. So we're using chlo based technologies >> on, more importantly, open source technologies to clear a community and say, the whole group that collaborates effectively and efficiently and uses our data and expertise to embrace the jewel challenge and actually try and help solve that problem. That's great. So So how did these heart of these new ways of working benefit your team and really the entire organ, maybe even the company as a whole? So we've been given the Innovation Award for Digital conveyor both in the way it was created and also in water is delivering a couple of guys in the audience poll costal and brewskies as he they they're in the team. Their teams developed that convey here, using our jail and Dev ops and some things. We talk about this stuff a lot, but actually the they did it in a truly our jail and develops we, um that enabled them to experiment and walking with different ways. And highlight in the skill set is that we, as a group required in order to transform using these approaches, we can no move things from ideation to scale and weeks and days sometimes rather than months. Andi, I think that if we can take what they've done on DH, use more open source technology, we contain that technology and apply across the whole group to tackle this Jill challenge. And I think that we use technologists and it's really cool. I think that we can no use technology and open source technology to solve some of these big challenges that we have and actually just preserve the planet in a better way. So So what's the next step for you guys at BP? So moving forward, we we are embracing ourselves, bracing a clothed, forced organization. We need to continue to live to deliver on our strategy, build >> over the technology across the entire group to address the jewel >> challenge and continue to make some of these bold changes and actually get into and really use. Our technology is, I said, too addresses you'LL challenge and make the future of our planet a better place for ourselves and our children and our children's children. That's that's a big goal. But thank you so much, Ed. Thanks for your support. And thanks for coming today. Thank you very much. Thank you. Now comes the part that, frankly, I think his best part of the best part of this presentation We're going to meet the type of person that makes all of these things a reality. This tip this type of person typically works for one of our customers or with one of with one of our customers as a partner to help them make the kinds of bold goals like you've heard about today and the ones you'll hear about Maura the way more in the >> week. I think the thing I like most about it is you feel that reward Just helping people I mean and helping people with stuff you enjoy right with computers. My dad was the math and science teacher at the local high school. And so in the early eighties, that kind of met here, the default person. So he's always bringing in a computer stuff, and I started a pretty young age. What Jason's been able to do here is Mohr evangelize a lot of the technologies between different teams. I think a lot of it comes from the training and his certifications that he's got. He's always concerned about their experience, how easy it is for them to get applications written, how easy it is for them to get them up and running at the end of the day. We're a loan company, you know. That's way we lean on accounting like red. That's where we get our support front. That's why we decided to go with a product like open shift. I really, really like to product. So I went down. The certification are out in the training ground to learn more about open shit itself. So my daughter's teacher, they were doing a day of coding, and so they asked me if I wanted to come and talk about what I do and then spend the day helping the kids do their coding class. The people that we have on our teams, like Jason, are what make us better than our competitors, right? Anybody could buy something off the shelf. It's people like him. They're able to take that and mold it into something that then it is a great offering for our partners and for >> customers. Please welcome Red Hat Certified Professional of the Year Jason Hyatt. >> Jason, Congratulations. Congratulations. What a what a big day, huh? What a really big day. You know, it's great. It's great to see such work, You know that you've done here. But you know what's really great and shows out in your video It's really especially rewarding. Tow us. And I'm sure to you as well to see how skills can open doors for for one for young women, like your daughters who already loves technology. So I'd liketo I'd like to present this to you right now. Take congratulations. Congratulations. Good. And we I know you're going to bring this passion. I know you bring this in, everything you do. So >> it's this Congratulations again. Thanks, Paul. It's been really exciting, and I was really excited to bring my family here to show the experience. It's it's >> really great. It's really great to see him all here as well going. Maybe we could you could You guys could stand up. So before we leave before we leave the stage, you know, I just wanted to ask, What's the most important skill that you'LL pass on from all your training to the future generations? >> So I think the most important thing is you have to be a continuous learner you can't really settle for. Ah, you can't be comfortable on learning, which I already know. You have to really drive a continuous Lerner. And of course, you got to use the I ninety. Maxwell. Quite. >> I don't even have to ask you the question. Of course. Right. Of course. That's awesome. That's awesome. And thank you. Thank you for everything, for everything that you're doing. So thanks again. Thank you. You know what makes open source work is passion and people that apply those considerable talents that passion like Jason here to making it worked and to contribute their idea there. There's back. And believe me, it's really an impressive group of people. You know you're family and especially Berkeley in the video. I hope you know that the redhead, the certified of the year is the best of the best. The cream of the crop and your dad is the best of the best of that. So you should be very, very happy for that. I also and I also can't wait. Teo, I also can't wait to come back here on this stage ten years from now and present that same award to you. Berkeley. So great. You should be proud. You know, everything you've heard about today is just a small representation of what's ahead of us. We've had us. We've had a set of goals and realize some bold goals over the last number of years that have gotten us to where we are today. Just to recap those bold goals First bait build a company based solely on open source software. It seems so logical now, but it had never been done before. Next building the operating system of the future that's going to run in power. The enterprise making the standard base platform in the op in the Enterprise Olympics based operating system. And after that making hybrid cloud the architecture of the future make hybrid the new data center, all leading to the largest software acquisition in history. Think about it around us around a company with one hundred percent open source DNA without. Throughout. Despite all the fun we encountered over those last seventeen years, I have to ask, Is there really any question that open source has won? Realizing our bold goals and changing the way software is developed in the commercial world was what we set out to do from the first day in the Red Hat was born. But we only got to that goal because of you. Many of you contributors, many of you knew toe open source software and willing to take the risk along side of us and many of partners on that journey, both inside and outside of Red Hat. Going forward with the reach of IBM, Red hat will accelerate. Even Mohr. This will bring open source general innovation to the next generation hybrid data center, continuing on our original mission and goal to bring open source technology toe every corner of the planet. What I what I just went through in the last hour Soul, while mind boggling to many of us in the room who have had a front row seat to this overto last seventeen plus years has only been red hats. First step. Think about it. We have brought open source development from a niche player to the dominant development model in software and beyond. Open Source is now the cornerstone of the multi billion dollar enterprise software world and even the next generation hybrid act. Architecture would not even be possible without Lennox at the core in the open innovation that it feeds to build around it. This is not just a step forward for software. It's a huge leap in the technology world beyond even what the original pioneers of open source ever could have imagined. We have. We have witnessed open source accomplished in the last seventeen years more than what most people will see in their career. Or maybe even a lifetime open source has forever changed the boundaries of what will be possible in technology in the future. And in the one last thing to say, it's everybody in this room and beyond. Everyone outside continue the mission. Thanks have a great sum. It's great to see it

>> live from Boston, Massachusetts. It's the queue covering your red hat. Some twenty nineteen lots. You buy bread >> and good morning. Welcome to Beantown, Boston, Massachusetts to Mina Mons Hometown by the police Town of residents. John Wallis was stupid from here on the Q. Bert had summit and stew for you. Good to see you here. And a home game. >> Yeah, John, Thanks so much. Nice. You know, Boston, The Cube loves Boston. The B C E C is actually where the first cube event was way back in twenty ten. And we wish there were more conferences here in Boston. Gorgeous weather here in the spring. Ah, little chilly at night with the wind coming off the water, but really good. Here is the sixth year we've had the Cube here, right? Had some in my fifth year at the show. Great energy. And, you know, thirty four billion reasons why people are spending a lot of time keeping a close eye on. Let's just know. Yeah, >> jump right in thirty four billion dollar deal. I am red hatt gotta prove by doj uh, here in the States. But there's still some hurdles that they have to get over in order for that to come to fruition, Maybe later this year. That's the expectation. But just your thoughts right now about about that synergy about that opportunity that that we think is about to have. >> Yeah, so? So right, let's get this piece out of the way. Because here at the conference, we're talking about Red Hat. The acquisition has not completed. So while the CEO of IBM you know Jenny will be up on stage tonight along with, you know, Jim White Hirsi over at Hat and Sakina della, you know, flying in from Seattle, where you might get your name yesterday. So you know, at least two of those three your Cuba Lem's. So we'LL get Jenny on one of these days. But, you know, this is a big acquisition, the largest software acquisition ever, and third largest acquisition in tech history. Now we watched the first biggest tech acquisition in history, which was Del buying AMC just a couple of years ago. And this is not the normal. Okay? Hey, we announced it and you know, it closed quietly in a few months. So as you mentioned, DOJ approved it. There's a few more government agencies Europe needs to go through. You never know what China might ask to come in here, but, you know, really, at the core if you look at it, you know, IBM and Red Hat have worked together for decades. You know, we wrote a lot about this when the announcement happened. You know, IBM is no stranger to open source. IBM is no stranger to the clinics and the areas where Red Hat has been growing and expanded too. You see, IBM, they're so communities, you know, super hot space. If you look, you know, Red hat is they're they're open shift platform, which is what Red Hat does for cloud. Native Development has over a thousand customers. They're adding between one hundred one hundred fifty a quarter is what they talk about publicly. We're gonna have some of those customers on this week. So huge area. That multi cloud hybrid cloud world absolutely is where it's at. We did four days of broadcast from IBM. Think earlier this year in San Francisco. And, you know, once again, Jim white hairs and Jenny were on stage together. They're talking about where they've been working together for a long time. and just, you know, some things will change, but from IBM standpoint, they said, Look, you know, the day after this closes, you know, Red Hat doesn't go away. That had just announced new branding, and everybody's like, Well, why are they changing their branding? You know, when you know IBM is taking over and the answer was, Look, Red Hat's going to stay as a standalone entity. IBM says they're not going to have a single lay off, not even HR consolidation, at least in the beginning. We understand, you know, give me your stuff to work out some of these pieces, but there are ears. They will work together. I look at it. John is like the core. What is the biggest piece of IBM's business is services. That Army of services, both from IBM and all of their Esai partners and everybody they worked with Khun really supercharge and help scale some of the environment that red hats doing so really interesting. Expect them to talk a little bit about it. Red hat is way more transparent than your average company. They had an analyst event like a week or two after it happened, and I was really surprised how much they would tell us and that we could talk about publicly. As I said, just cause I've seen so many acquisitions happen, including some you know, mega ones in the past. And we know how little usually you talk about until it it's done and it's signed. And, you know, the bankers and lawyers have been paid all their fees. >> Let me ask you, you raise an interesting point. Um, you know that there are some different approaches, obviously, between IBM redhead, just in terms of their institutional legacies in terms of processes. Red hat. You mentioned very transparent organization. Open source. Right. So we're all about the rebrand. They come out, you know, the drop shadow, man, They got the hat. What's that cultural mix going to be like? Can they truly run independently? Yeah, they're a big piece. So And if your IBM can you let that run on its own? >> So, John, that is the question most of us have. So, you know, I've worked with Red Hat for coming up on twenty years now, you know, Remember when Lennox was just this mess of colonel dot organ. So much changes that red hat came and gave, you know, adult supervision to help move that forward on. The thing I I wrote about is what Red Hat is really, really good at. If you look at the core, there do is managing that chaos and change on the industry. If you look how many changes happen, toe Lennox, you know every you know, day, week, month and they package all that together and they test all that same thing in Kou Burnett is the same thing in so many different spaces where that open source world is just frenetic and changing. So they're really geared for today's industry. You talk what's the only constant in our industry? John is it is changed. IBM, on the other hand, is like, you know, over one hundred years old, and I tried and true, you know, Big Blue. You know, I ibm is this, you know, the big tanker, you know, it's not like they turn on a dime and you know, rapid pace of change. You think of IBM, you think of innovation. You think of, you know, trust. You think of all the innovations that have come out over the century. Plus do there and absolutely there is a little bit of impeded mismatch there and we'LL see So if ibm Khun truly let them do their own thing and not kind of merged suit groups and take over where the inertia of a larger group can slow things down I hope it will be successful But they're definitely our concerns And time will tell we'll see But you know analytics front You know, they just announced this morning Rehl eight Red hat enterprise linen, you know, just got announced and definitely something will be spent a lot of time So >> let's just jump in a relative Look again, We're gonna hear a little bit later on. We have several folks coming on board to talk aboutthe availability. Now what? What do you see from the outside? Looking at that. What is it going to allow you or us to do that? Seven Didn't know. Where did they improve? Is that on the automation side? Is it being maybe more attentive, Teo Hybrid environment or just What is it about? Really? That makes that special? >> Yes. So you know, first of all, you know these things take a while in the nice thing about being open sources. We've had transparency. If you wanted to know it was going to be in relate. You just look in the Colonel and and it's all out there. They've been working on this since twenty thirteen. Well, seven came out back in June of twenty fourteen. This has been a number of years in the mix. You know, security. The new, like crypto policy is a big piece that that's in their thie bullets that I got when I got the pre briefing on, It was, you know, faster and easier Deploy faster on boarding for non lennox users on, you know, seamless nondestructive migration from earlier versions of rail. So that's one of the things they really want to focus on is that it needs to be predictable, and I need to be able to move from one version the other. If you look at the cloud world, you know, when you don't go asking customers say, Hey, what version of Azure a ws are you running on your running on the latest and greatest? But if you look at traditional shrink wrap software, it was well, what virginity running? Well, I'm running in minus two and Why is that? Because I have to get it. I have to test it out. And then I, you know, find a time that I'm gonna roll that out, work it in my environment. So there is stability and understanding of the release cycle. My understanding is that they're going to do major releases every three years and minor releases every six months. So that cadence a little bit more like the cloud. And as I said, getting from one version a rail to the next should be easier and more non disruptive. Ah, a lot of people are going to want manage offerings where they don't really think about this. I have the latest version because that has not just the latest features but the latest security setting, which, of course, is a major piece of my infrastructure today to make sure that if there was some vulnerability released, I can't wait, You know, six or nine months for me to bake that in there. The limits community's always good have done a good job of getting fixes into it. But how fast can I roll that out into my environment is >> something I would assume that's that's a major factor in any consideration right now is is on the security front, because every day we hear about one more problem and these are just small little issues. These these air are could be multi billion dollar problems. But in terms of making products available today, how Muchmore important? How's that security shift? If you could put a percentage on it used to be, you know, axe and now it's X plus. I mean I mean, what kind of considerations are being given? >> You know what I'd say? Used to be that security got great lip service A. Said it was usually top of mind, but often towards bottom of budget. When you talk to administrators and you say, Oh, hey, where's your last security initiative? And that, like I've had that thing sitting on my desk for the last six months and I haven't had a chance to roll that out. I will get to it, but I want to again. If you go to that cloud operating model. If you talk about you know Dev, Ops movement is, I need to bake security into the process. If I'm doing C i D. It's not, I do something and then think about security afterwards. Security needs to be built in from the ground level. A CZ. You know, I I've heard people in the industry. Security is everyone's responsibility, and security must be baked in everywhere. So from the application all the way down to the chipset, we need to be thinking about security along the bar. Mind it is a board level discussion. Any user you talk too, you know, you don't say, Hey, where's the security sitting? Your priorities. You know, it's up there towards the top, if not vey top, because that's the thing that could put us out of business or, you know, definitely ruin careers. If if it doesn't go >> right, so there are there are probably a couple of platforms, every will or pillars. I think you like to call them that. You're looking forward to learning more about this week. I think in terms of red hats work one of those green hybrid cloud infrastructure, and we'LL get to the other to a little bit. But just your thoughts about how they're addressing that with the products that they offered the services they offer and where they're going in that >> Yeah, so look everything for red at start with rail. Everything is built on Lenox, and that's a good thing, because Lennox Endeavor is everywhere. If last year is that Microsoft ignite for the first time. And when you hear them talking a Microsoft talking about how Lennox is the majority of the environment, more than fifty percent of the environment are running linen goto a ws Same thing. All the cloud deployment Lennox is the preferred substrate underneath and Rehl doing very well to live in all those environment. So what we look at is, you know, some people say, is this olynyk show. It's like, well, at the core. Lin IX is the piece of it and relate the latest and greatest substantiation. But everywhere you go, there's going to be Lennox there from doing container ization. If a building on top of it with the the new cloud native models, it's there. And if you talk about how I get from my data center to a multi cloud environment, it's building things like Cooper Netease, which read that of course, uses open shift and you know those ties to eight of us and azure and you know, Google they're all there. So we mention Santina della's on stage tonight at Microsoft build. Yesterday there was announcement of this thing called Kita ke e d A, which has, like as your functions and ties in with open shift and spend a little time squinting it, trying to tease it apart. We've got some guests this week that'LL hopefully give some clarity, but it is. The answer is people today have multiple clouds and they have a lot of different ways they want. They want to do things, and Red has going to make sure that they help bridge the gap and simplify those environments across the board. Two years ago, when we were at the show big announcement about how open shift integrates with a W s so that if I'm using a ws But I want to have things in my environment still leverage some of those services. That was something that that Red had announced. I was, you know, quite impressed a time it was, you know, just last week being at the Del Show, it's V m. Where is the del strategy for how they get you know, A W, S, G, C, P and Azure and, you know, Red Hat does that themselves. Their software company. They live in all these cloud worlds, and therefore, open shift will help you extend from your data center through all of those public cloud environments on DH, you know? Yeah. So it's fascinating >> you've talked about Lennox to we're going to hear a little bit later on to about a fascinating the global economic study, that Red Hat Commission with the I. D. C. Of that talks about this ten trillion dollar impact of Lennox around the globe like to dive into that a little bit later on. >> Yeah, well, it's interesting, you know, it's the line I used is you say, and you say, Oh, well, how much impact is Lennox had? You know? You know, Red hats now, a three billion dollar company. That's good. But I was like, Okay, let's just take Google. You know, no slots of a company. Google underneath. It's not Red Hat Lennox, but Lennox is the foundation. I don't really think that Google could become the global search and advertising powerhouse they were. If it wasn't for Lennox to be able to help them get environment, there's a CZ we always talk with these technologies. You talk about Lennox, you talk about How do you talk about, you know, Cooper Netease? There are companies that will monetize it, but the real value is what business models and creation by. You know, all the enterprise is the service riders in the hyper scales that those technologies help enable. And that's where open source really shines is, you know, the order of magnitude network effect, that open source solutions have that its you say okay, three billion dollars? And is that what ten trillion dollars? It doesn't faze me, doesn't surprise me at all, but because my attention it look it. I'm not trying to trivialize. There's no But, you know, I've been watching clinics for twenty years, and I've seen the ripples of that effect. And if you dig down underneath your often finding it inside, >> I mentioned pillars that you were talking about cloud native development being another. But automation, let's just hit on that real quick before we head off on DH just again, with how that is being, I guess, highlighted. Or that's a central focus at and relate and and what automation? How that's playing in there I guess the new efficiencies they're trying to squeeze out. >> Yes. So? So what we always looked for it shows you're probably the last year is you know, you. How are they getting beyond the buzzwords? Aye, aye. When you talk about automation on area that that we've really enjoyed digging into is like robotic process automation. How do I take something that was manual? And maybe it was a fish injure? Not great. How can I make it perfectly efficient and use software robots to do that? So where are the places where I know that the amount of change and the scale and the growth that we have that I couldn't just put somebody to keyboard, you know, and have them typing or even a dashboard to be able to monitor and keep up with things? If I don't have the automation and intelligence in the system to manage things, I can't reach the scale and the growth that I need to. So where are you know, real solutions that are helping customers, you know, get over a little bit of the fear of Oh, my gosh, I'm losing a job. Or will this work or will this keep my business running and oh, my gosh, this will actually enabled me to be able to grow work on that security issue if I need to, rather than some of the other pieces and help really allow it agility to meet the requirements of what the business requires to help me move forward. So those are some of the things we kind of look across the shows. So, you know? Yeah. How much do we get? You know, buzzword, Bingo at the show. Where How much do we hear? You know, real customers with real solutions digging in and having, you know, new technologies that a couple of years ago would have had a saying, Wow, that's magic. >> But you say, Oh, my gosh. Yeah, and I don't want gosh right back with more. You're watching to serve the cube with the red had summit. We're in Boston, Massachusetts, that we'll be back with more coverage right after this

>> Live from San Francisco, it's theCUBE! Covering IBM Think 2019, brought to you by IBM. >> Welcome back to intermittently sunny San Francisco, this is theCUBE, the leader in live tech coverage. We're here at day four at IBM Think. My name is Dave Vellante. I am here with Stu Miniman. John Furrier is also here. Wall to wall coverage Stu. The second Think, first big show really of the year at Moscone. The new Moscone, Armando Ortiz is here. He is the vice president and partner from Mobile & Extended Reality Leader at IBM iX. An interesting part of IBM that you may not know about. Armando, welcome to theCUBE, thanks for coming on. >> Thanks for having me. >> So tell us a little bit about iX. >> So IBM iX is a part of IBM services. We focus on user experiences, whether it's a consumer experience or an employee experience. And the we look at user experience it really kind of sticks together and allow you to unlock the value of all the technology investments that companies are making. >> So, you guys are not making headsets, or are you? >> No we don't make hardware, we just put hardware to work. >> So talk a little bit about the sort of state of whether its augmented reality or extended reality. Lay out the terminology for us if you would. >> Sure, sure. As part of the role I have I lead our mobile practice as well as the extended reality practice and this kind of all related together. We use the term extended reality to kind of encompass all of the different technologies along that spectrum from augmented reality to mixed reality to virtual reality. Of course there are a lot of technologies whether it's the glasses on your face like the wearables or it's in your hand as a lot of mobile platforms today like Apple's ARKit and Google's ARCore allow you to have AR experienced within your mobile apps. >> Yeah, I wonder if you can expand a little bit on that? We're all ready for the role out of 5G and that's going, holds the promise at least for a lot more band width and a lot more applications and that's one of the lynch pins we understand kind of make your world more of a reality. When do we see that role out? What devices are going to happen? You got a preview of the next iPhone for us? >> I certainly don't have a preview of the next iPhone, even though I do lead the Apple partnership for us in North America, the Apple IBM partnership. When you look at 5G, obviously some of the use cases for extended reality in enterprise are around field services and 5G will have an amazing impact on the ability. Not only because of the band width but also the low latency that you have for 5G. So we're excited to see that role out in the different markets around the world and you know the pilots and things that are starting this year. There are going to be a lot of great devices and I think for handsets all the way to the wearables. It'll really allow us to put more use cases on these devices. >> Can you walk us through some of those use cases? Any specific customer examples you have that may make our audience understand a little bit more what's really available today. Sure, I mean in the XR space or in the extended reality space there's a lot that we learned through what we've done in mobile for years. I mean, even our Apple partnership for the past five years and things we've done across the 16 industries we work on. But the initial sort of wave one use cases that we're really seeing today kind of follow along these categories of work related use cases that are like in field services, training related use cases that go all the way from virtual reality immersive training like teaching someone how to do something in a dangerous situation where you want to simulate that. All the way to on the job sort of training and step-by-step guidance that you can get with AR. Step one attach the cable here. Step two, check this over here. Those kind of use cases and then into use cases related to shopping and retail. If you look at what augmented reality is going to do for shopping and retail allow people to assess sort of fit and purpose of something they want to buy. Does it fit in my home? Does it fit in my life? And then also even in the stores as people in retail sort of navigate a store they can use AR to help understand. Add all that metadata to the in store experience that we're gotten used to in our online experiences. And the last broad category we sort of call it share ideas or sharing of ideas, which kind of expands the game from collaboration to even having AR brochures and augmented realty tools to help people understand a product or a service that you're offering. Imagine that we can just kind of expand a piece of equipment here on the table, walk through it and help understand how that piece of equipment is going to help your business. >> You're giving me flashbacks. I remember IBM had a huge initiative in like Second Life and it was like come build an island and we're going to do recruiting and things like that. So, tell us why this generation is, going to be better for business and not have everyone put some money in and have it stolen by you know. >> Not as goofy. >> It's funny you should ask that, the Second Life topic actually came up with someone I was speaking to yesterday. It's come up before. I think there is a significant difference between what Second Life was trying to be and what extended reality is going to be and it already is. I mean when you look at extended reality today, I think one important thing to think about this is not future tech, this is not some sort of dream of sort of Ready Player One type of situation. But more, it's looking at real enterprise use cases that are already driving a value; time savings on inspections, productivity enhancements for people assembling, consistency and increase safety. All the key performance indicators and value drivers we have for mobile. So there's a real path to business value and the uses are much clearer than it might have been in the days of Second Life. >> Less mistakes, less rework. Armando, what kind of infrastructure would a consumer need? You gave the example of retail for instance, what kind of infrastructure would I need? Am I just, is it just my mobile home? Am I going to wear headsets, what does that look like? >> So when we talk about extended reality, we tend to keep one foot in today and one foot in the future cause its changing so fast. When you talk about retail there is a sale associate side of things that might be helping you decide an automotive. Maybe you're looking at configuring a car right in front of you or in a retail store maybe you're looking to look at a piece of furniture or something that's not on the show room floor. Now those experiences can start today with tablets and iPhones and other devices. But we see also as well devices that people be wearing wearables that are available today and that trend moving that glass kind of from your hand to your face is going to be something that is really going to be accelerated. >> So, this is maybe how a piece of clothing will fit or what a couch might look like in a particular room, is that right? >> Yeah. >> And you would envision that people will purchase this infrastructure for a variety of uses. Not only to see how things look but maybe there's gaming. So it's a multi-use kind of environment or not necessarily? Is it more specialized to use it? >> No absolutely, it's important, it's a good thing that you brought up sort of gaming as well. Because, obviously we all know that gaming has been kind of at the fore front for virtual reality but when you look at gaming and entertainment those are also going to include many use cases. When we look at the enterprise side we're kind of focused on those other wave one use cases. But I also expect in the sort of share ideas category I spoke of marketing and sales activities will also include AR experienced to help people understand the product or service that you're positioning. >> What's the state of adoption? We always joke about google glass. Remember the movie The Jerk with the Opti-Grab and the guy was cross-eyed? So that didn't take off but what's the state of hardware and hardware adoption today? >> So I think what's unique about this technology and what's happening now, the technology we already all have in our hands on our mobile phones is already there and that's where you're going to see it happen first. I think the numbers by next year are like 3.4 billion phones will have an AR capability so the technology is already with us. The next sort of technology set that we're talking about is getting to the wearables and of course we see things today in the VR space that's much more available in the consumer side, things like the oculus go. In the enterprise space you also have headsets from many manufacturers that maybe grew up doing things in the military that are now more commercially available. Things like someone trying to repair something that needs to be hand free. We're seeing those technologies readily available in the enterprise. >> Tell about how AI fits into this new world? >> That's a great question. If you think about it its really kind of a really great combination. You take XR, extended reality, so whether its AR or VR and you add AI to it you can kind of give AI the ability to kind of enter the 3D space. So as you think about AI solutions that we had in the mobile world where you might be using AI to solve a problem, diagnose a problem, visual diagnostics, acoustic detection AI can kind of give sort of super powers to an employee. At the same time we see that the experiences that we have in the extended reality space get really enhanced because you now have the ability to democratize expertize with AI. You take all of the expertize of your organization and that one technician whose only been there for 10 days now has the power of your entire collective knowledge. >> What about privacy? Anytime you hear some of these and I think about you can have wearables out there, there is concern about you know with facial recognition is going to be everywhere my privacy is going to be invaded. What's IBM positioning? Where does that fit in this whole environment? >> Of course we take privacy very seriously. When we talk about our AI and Watson you know your data is your data. If you look at some of the things, I mean, you'll make decisions, enterprises will make decisions on the same way they do with mobile devices. Is it okay to have a camera in this environment? And if I do have a camera in this environment, what's my cloud strategy and where am I going to host this data to make sure that I have not just privacy but also IP concerns, considered? All of the same things we've learned in the mobile world are going to apply to this and it'll get even a little more important as you think of the different types of sensors that are required to make these experiences happen. >> I wonder if you could help us understand about the pre-requisites to do things like technician actually trouble shooting a problem. Many of us have seen, we put on the glasses you walk around a show floor and you look at a new system or something and its really very cool. You can look inside and inspect the different layers. What has to be done, I'm inferring from what you're saying that a technician would be able to inspect live, real time a device and identify problems on that device. So what has be done? It has to be instrumented? It has to have cameras installed? What does the infrastructure build out look like? >> Sure, when you look at. Lets take the technician scenario for a moment and unpack that. When you look at that there are a couple of things that are already happening like a lot of major pieces of equipment are instrumented. So you have the internet of things data, sort of the data streams coming off of that. How do you make that available to that technician in the moment, sort of the vital signs of that piece of equipment that you might be operating on? So, having all that information like temperature and all the things from an IOT perspective, that's one angle of it. The other side of it really is when you think of failure of equipment usually at some point there's a situation that technician may not have encountered before but maybe someone else has. Maybe you've already had a bunch of closed tickets on that three years ago. So having all that information available and using cognitive processing to kind of navigate that unstructured data, that will let you navigate that. Voice will be part of this interface as well. I think voice is an important part because you're going to be hands free and you're going to be having a dialogue with Watson, let's say to help diagnose a problem. >> How about healthcare? It's not something we've really talked about a lot. Just in terms of applications, whether its for the operating room of the future, remote guidance from doctor, training. Do you see those kind of use cases emerging? >> Yeah absolutely, all the way from training through execution of surgery and other things. This is where the 5G topic really comes into play because low latency is really required if you're talking about surgery and things like that. >> Give me a few minutes. >> You get that round trip of that signal going back and forth. I think when you think about the VR side of things for training is immensely powerful. The AR side for during execution of procedures will also be powerful as well and it comes back to that general theme od democratizing expertize. One expert that's physically on this part of the world can serve many people that need their services around the world. >> It sounds like there are a lot of uncertainties in terms of how this is going to evolve. First of all od the a fair statement? Given that, not withstanding that can you give us a sense of expectations for how it will evolve and the adoption levels that you expect over the next two to five years. >> Five years is a long horizon for this technology. >> Too long, too long perhaps so what's more fair, 18 months? >> Lets talk more immediate. I think when you look at, there may be some uncertainty in terms of which use cases will drive the most value but there are already many use cases that companies are probably sharing information out. Like some companies, especially inspection use cases, you know there is a company that published 96% savings on time because really you are using AR to document. Okay inspect this point, this point, this point, this point. Assembly use cases, diagnostics with AI and AR are working together. All of these are already happening, so what I think is going to happen is enterprises are going to be able to more and more easily justify the spend to make these investments because the RY is rapid. Just like the RY in mobile was rapid for enterprise, the RY in XR will be extremely rapid. >> Armando for people who didn't come to IBM Think, give them a little taste of what they missed from an iX stand point. Some of the conversations that you've been having. >> Yeah, when we look at, I mean iX across the IBM Think we've had a lot of conversations and a lot of sessions around how experience is really driving the business value and also around marketing technologies and marketing services and all of the things that relate to experience on the consumer side and the employee side. We're really enjoyed some great show casing of our client stories and the works we've done. Everything from mobile to commerce to marketing platforms to sales floors across everything we do in the IBM services part that we're in. >> How long has this been around? >> IBM iX? >> Yeah. >> IBM iX has been a part of IBM originally since the 96 Olympics in Atlanta. I've been with IBM about 25 years and this space is kind of like really evolved in terms of the position of user experience and design. IBM has become really a design focused company and you look at enterprise design thinking in everything we do so this is really a part of our business that's really become focal point as companies start thinking more about design. >> Wow, it's been a long time but it's certainly not mature but it's a revenue generating business obviously. >> Yeah and a very high growth part of the company. >> Awesome, well Armando thanks so much for sharing this part of IBM that's not well known. Really exciting futures and I really appreciate you coming on theCUBE. >> Thank you very much, I appreciate being here. >> Alright, keep it right there everyone. Stu and I will be back. Day four, IBM Think, we're at Moscone. Stop by, we're at Moscone North. I'm Dave Vellante, Stu Miniman and John Furrier is here. We'll be right back, you're watching theCUBE. (techno music)

>> Live from London, England, it's theCUBE, covering .NEXT Conference Europe 2018. Brought to you by Nutanix. >> Welcome back to London, England. I'm Stu Miniman with my cohost, Eup Piscar, and we're going to dig into one of the partnerships that Nutanix have. Joining me, two CUBE alums, Michael Cade, who's a technologist with Veeam. Had you on the program last year in Nice, and welcome back a little closer to home for you, here in London. >> Yeah cheers Stu, Hidey-ho. >> And welcome, six months with Nutanix, someone I've known. CUBE alumni. So, wherever you go, you know, there are CUBE alumnis always. So Jay Chitnis, who's the head of Global Strategic Alliances with Nutanix. Jay, thanks for joining us. >> Stu, thanks for having me. It's great to be here, guys. >> Alright, first of all You know, Michael, what's it mean having the show here in London, and would love your opinion, having kind of, how Nutanix's doing with Europe adoption. >> Yeah, so, obviously being in London means I don't have to go on a plane and travel anywhere, right? So, that's one benefit, but one thing, I was there last year, obviously, we spoke. I think one of the things I can see here is how many people are here. Feel's like its doubled in numbers, doubled in size. Doubled the conversations, obviously with us, with our product coming out in July/August of this year. Only a version one but we're seeing good feedback, good strong feedback and lots of questions around that. >> Yeah absolutely, 3500 is the number I heard here. Jay, we're going to talk about with Veeam, so set the stage for us, data protection, what's going, Nutanix positioning, and what you look to that. >> Yeah, its a vibrant landscape, right? So, just to kind of pick up a little bit on the thread around the European side. We've got over 50 partners here. Over 50 technology partners and a number of channel partners. There's just a vibrant buzz and one of the first things that people always talk about is we're in the the nation of GDPR. If you start to think about just where's this nation, this notion of data and where does it reside, data mobility and that sort of thing. That's one of the first things that we get hit with all the time; we get asked a lot. And so, it's really core to what we do. That's where the relationship really comes in. >> I love the little commentary there at that GDPR. Cause I remember last year, like most of last year, every show that had data protection, everything, we talked about GDPR a lot. To be honest, once we got past May, we didn't talk about it a lot. I mean, we said we knew it's real when there were some lawsuits and that happened rather fast to some of the really large companies, but is this still a major conversation with costumers, where are we and? >> Yeah, yeah, massively so that sovereignty of data, where is resides is something that, speaking to enterprise and mid-market customers over in Europe, there absolutely still top of mind is, why are we keeping that data? Where are we keeping that data? How do we leverage our tool set to understand where that data is? And then actually provide some insight into where it is, and report against things like violations between different locations. And just, We obviously had to go through that process of becoming GDPR compliant ourselves, and obviously as a global company, you have to kind of eat your own dog food. And understand, you have to know your own data, understand what that's doing, why we're keeping that? How it's being stored, and the message we just relay back into content and let our customers then use that. >> So what does that look? Maybe from a technology perspective, if you had to deal with GDPR, from an Nutanix standpoint, from a Veeam standpoint. What does it change, right? What does it change in terms of backing up? What does it change in terms of storing it? In a cloud or on print? Have you seen any majors changes in how that works for customers? >> Yeah, so the good the is that thinking about what that data is and where it's being stored. They know that in Germany that data may not be able to leave Germany or that data may not be able to leave the UK or Ireland and they might have offices in remote locations in various different countries. So, a simple thing that we put in was the ability to put tagging on repositories, on our physical constructs so that we knew the data path and the workflow. And then be able to use then Veeam one to be able to report against that so you understood where that data was going but also flag up any of those violations that may be where a backup job has pushed it to a different location. We need to know about that and we need to fix it as fast as possible. So that's one of the areas that we're talking >> So, I can imagine that this is not only has had an impact from a technology perspective from a vendor's side, but also in the service provider market. I guess a lot of service providers have gone into that phase to be able to help customers with their GDPR issues. >> Yeah, yeah, absolutely, so we were already aligned with our VCSP program. 20,000 VCSP partners out there and their model is as a service, so being able to provide, as a service and help them understand what that data is and know where that data is residing, is key to, that those customers that can't necessarily put their workloads into the public cloud but they can put it into a trusted service provider of VCSP. >> Or a trusted, like an enterprise private cloud. Or, one of the things that we're seeing is, when you start to think about data and where it resides, it's not just the cloud. It's not a discussion of is it on prem, is it in the cloud. There's this notion about this distributed cloud, some of this stuff that we talked about earlier this morning around what does that mean when you start to think about where, first of all, the amount of data that's sitting in everything other than what we would consider an enterprise cloud. That's one. The second thing is, how do you protect it? How do you back it up? What do you do at things that at the edge, right? That requires a fundamentally different way of looking at things. Just the size and the volume of the data. >> Yeah, one of the key things that we're seeing is that sprawl of data. Not necessarily, it doesn't really matter where that data resides. Whether it is on premises or whether it's in the public cloud. It's the data and that sprawl of data that can sit on many different platforms. >> Alright, Want to pivot the conversation a little bit lets talk about AHV. So, in the earnings announcement earlier this week, the number I heard was 38% looking at the last four quarters trailing, so strong growth. I actually, when I had asked Dheeraj about two years ago and said, "okay well what's the goal?" He said "Look, we're going to keep building and do it, and customers will have choice." You know, if we get to 50%, that felt about right to him then, when I talked to him he said "This seems right." It's not like we're going to eradicate everybody's other virtualization. That's not the goal. It's to do what makes sense. I remember one of the .NEXT's when Veeam said "We're going to go down the path to adopt AHV". There are actually tears in the audience. So, we know that ecosystem is super important to AHV. So Jim, maybe set the table for us with the guideline as to where we are with the partner eco system. Obviously Veeam's got some good, exciting stuff recently. But overall? >> Look, at the end of the day, the 38% number that you mentioned is critical, right? One of the things that we look at is, this is it's, our philosophy has always been about freedom and, so, some semblance of choice. And it doesn't matter whether you have a preference for a private cloud, a public cloud, a hypervisor. What we really are focused on is, how do we enhance incremental value add, especially in a management staff, right? So it's not necessarily a, we absolutely want to become a Hypervisor company. That's not the goal here. In order to, when you look at our partner landscape, and our partner ecosystem, it kind of fits into a few things. First and foremost, it's about customers who want, when they buy Nutanix, it's because they're buying Nutanix to fit in to a certain environment. Data protection, management, management and orchestration, networking and security. And then there's obviously customers who buy Nutanix for running something on top us, right? An, ISV, and enterprise ISV, big data applications, cloud native applications and things of that nature. One of the cornerstones for that ecosystem is to support AHV and we're starting to see a significant amount of our partners, not only looking at supporting AHV but actually going further and deeper. So, we look at things in terms of the breadth of the ecosystem, which is great, we want to grow that, but we also look as the depth. And someone like Veeam, who said, "Hey look, we were partnering with you on the breadth, where we were doing some stuff around supporting ESX." But really, the game changer was AHV. AHV support which was what, August? >> Yeah, yeah, beginning of August. I think the same premise as to what you were just saying Jay, so bring that simplicity model, we don't really care about what that is sitting on top. With a management layer, we're offering this hardware up as a service, or this layer of abstraction. From a Veeam, obviously, form a Veeam perspective, it's all about the ease of use, the reliability, but also the flexibility. And that's something that we kind of have that synergistic approach. >> I think that's a very shared common vision, right? It's making sure that you provide a seamless experience. One click sort of experience. But, being able to do so in a more cohesive manner. >> Michael, I want you to bring us inside. I remember back when Veeam supported Microsoft Hyper-V. It was a big deal. There's a lot of engineering work that goes into it. And a move, Veeam was more than just a virtualization company. Today Veeam is multi-cloud, they can play in lots of environment. Give us a little insight as to what happened and what's special has been done for the interface and the technology to fully support AHV with Veeam. >> Yeah, I think, so 12 years ago, Veeam started out protecting those virtual workloads. Virtualization first, Vmware first, then Hyper-V. And then the physical agents came and really that platform started to get broadened. What then happened is the AHV adoption rate from you guys was obviously rising so saw that and went in, and, but we took a different approach in terms of, okay, just because of what we've done in a Vmware and Hyper_V world, doesn't necessarily mean that that will fit our Nutanix AHV customers. So we went out, we seeded the market, understood what that looked like, how it looked from both a Nutanix point of view and also existing AHV customers. And then built the new AHV platform that we have to be able to protect them. But we still wanted to keep that agentless approach. But from a management perspective, we offer out a web interface that allows us to look very similar to the prism interface, the management layout. So that, an admin doesn't have to shift his command stature, his knowledge of working in management into that mind set. So, version one, and again, there's a considerable amount of effort gone into that has a pretty, pretty full-on feature list of features in that version one and that's going to continue to roll out over 2019 and beyond. >> So looking at this from a customers perspective, you know, back when I built an IS platform based on Nutanix, based on VH, one of the things that was high on my list was a AVH support. Simply because AVH over hypervisor, it became a commodity. I, even as a service provider, even as an IS provider, I didn't really care what hypervisor I ran. And so, support from VM to actually be able to back up VM's on AHV, and that was top priority for me. And seeing you guys use that different UI, even though it was a little bit over shot, because you know, we've been using VM for maybe a decade already. We're used to it. A little bit of a culture shock to start using it, but when you do, it becomes a totally different experience because it is aligned with Nutanix. So maybe tell us about why you've taken that approach of using the way of integrating with the Nutanix UI instead of staying at your old UI? >> Yeah, and so exactly, so mostly around Nutanix admins and their feedback around, if we could just have another tab that looks and feels exactly how our management plane looks like. Then that would be of more of a benefit. Now, obviously we didn't feedback on replication. There's still visibility of those jobs, there's no configuration, lettered out, that's one of the biggest asks that we're getting in the forums, in the public forums, is when can we have exactly what you're asking for there. Is it around how can we bring that central management back into VBR because they may have Nutanix clusters running different hypervisors and that's all supported from us but then, but, then, now we've got to go outside of that single management interface into the prism-like management for that, so, I kind of see that from that perspective. But, so that was really the main key for version one is, get something out that's the same as what our Nutanix administrators are used to. >> So, if we're talking about future, right, so what's next for VM and Nutanix? Real short question, short answer maybe. >> Yeah, without being fired, I'm but... (Jay laughs) So, version two, update one, so 1.1. That will be out in the next few, let's say weeks, months. And that really doesn't bring any major features or changes. That's the generic bug fixes, there's a few things that needed to be ironed out in the interface but also as the process. So that will be relatively soon. Then, the good thing around the ability to develop against what we're doing with AHV, is that because it's so separate from the VBR piece. It allows us to hopefully keep that much more frequent cadence of release. So we'll be starting to see more news about version two as we get into early 2019. >> Just a last thing, wondering what you could say about adoption so far? How much pent up demand was there? You know, I'd like to hear first from the Veeam standpoint. How many customers, if you can share anything about that? And then, Jay, what this means for AHV adoption? >> So, I don't know specific numbers, up to date numbers, but I have seen the sales force numbers grow from an opportunity perspective, and that's specifically where Veeam availability and Nutanix AHV is included in that sales force opportunity. So one of the things, though, is that we're seeing, if you're familiar with the Veeam forums, that, in particular, forum thread is growing and growing because people are understanding that we can help shape what we do here, we want those customers that are using it on a daily business to give us that feedback. >> Do you expect there to be new Veeam customers due to this offering? >> Yeah, yeah, absolutely. >> Yeah, I think we absolutely expect new Veeam customers. I think at the end of the day, going back your question around AVH, having a healthy ecosystem is really what's going to drive AHV adoption. So partners like Veeam who've done that is really what is providing some choice back. So you're question around what do we expect in the next few months, quarters, what we're seeing is a lot demand on, what's the right way, We're seeing a lot more demand on additional functionality that people customers would like to add into their grate. So AHV is just the beginning of the platform. It's not the end state and then, we're starting to see is a lot of customers, partners who are taking on things like, "Oh, well that's interesting, now I can do something with files, or buckets, or add on top of it where now all of a sudden, I can derive even more value. So AHV is just step one if you will, right? >> Yeah, I think that's important as well. So we've got update four coming out early next year that's going to bring the ability to leverage the Nutanix buckets that we've heard about this week. There's also other cloud mobility, but for the option of being able to convert those machines and send the up into Azure or AWS to be able to run tests and development up there. But, that whole cloud mobility about movement of data and making it seamless using the same tool set. One of the key differentiators is the VBK format. So those who know Veeam, they use the VBK format and that's exactly the same format that the Nutanix AHV product uses as well. >> Yeah, yeah, absolutely. Well, congratulations. Really looked at, as I said, this is really opening the door to start the journey as to where your customers are going. I've been hearing feedback from customers that have been waiting for this for a while and excited to see how this matures as things go forward. So, Jay, Michael, thanks so much for joining us and stay with us, full day of coverage here at Nutanix .NEXT 2018 in London. Thanks of watching theCUBE. (electronic beat)

>> Announcer: Live from Las Vegas, it's The Cube, covering IBM Think 2018, brought to you by IBM. (lively music) >> Hello everyone, welcome back to The Cube. We're here live in Las Vegas for IBM Think 2018. It's where all the action's happening. Third day of three days, wall to wall coverage, I'm John Furrier, co-host of The Cube, we have two great guests here, Paul Papas, Global Leader of Digital Strategy at IBM's iX, new digital agency, and his cohort Matt Candy, European leader of IBM iX, a new agency within IBM specifically developed for expanding the digital services to their customers, to create the best experiences, using technology, data, and other analog and digital capabilities. Wimbledon and among others. Guys, welcome to The Cube. >> Thank you, thank you, and thanks for that great introduction. >> So Paul, so take a minute, this is a novel concept. When I think of agency I think ad agency, buy some keywords, PR firms, you know, more of an adjunct to a core organization, kind of a service provider. >> Yeah. >> You guys have it a little bit different agency focus, more like management consultants meets World Economic Forum, meets, you know, UX UI design, because you are building this company. Take a minute to explain what iX is, and what's different about it in context what people might think it is. >> Sure, and thanks, a great set up in there it's like you melded a lot in there of what we do. So you can think of us as a combination of strategy consultancy, digital agency, consulting systems integrator. So we do three things with our clients, we help them design, well we help them define, their digital strategies, really their business strategy in a digital world. We help them design world-class customer experiences. Experiences that are going to be personalized, and have an impact. And then lastly we help them implement the technology. Implement the customer platforms that they use to engage with their customers in a personalized, meaningful, omni-channel way, all of those things that we do help drive a measurable business impact so nothing we do is hypothetical, everything we do is real and drives a real business impact for our clients. So, where if you might look at an agency a lot of people think of agency as marketing communications agencies, and the world has changed so fast around digital, >> Or ad agencies. >> Or advertising agencies, you know, in that vein, we're on the more transformational side. In fact we consider ourselves a business design partner. So what we're trying to do with our clients around the world is help them redefine, redesign their businesses, so that they're fit for purpose, so that they can survive and thrive in this modern world. >> Yeah, I want to get your thoughts on this, because you know looking back as a historian if you will of evolution, technology used to be slower, so agencies added value on something complex, ad agencies would create ad campaigns and some glam, glamour around something. And we even saw it in some of the lead gen side of the business, where this beautiful micro-site and the graphics are amazing, it looked great but actually didn't scale there's no tech behind it. Now fast forward, you have the requirement for cool, relevant, and glamorous, but actually having tech involved. Cloud computing has really enabled this, and the role of data has really enabled it, so this is now the new normal, the new normal for these higher-end functionalities is actually having a tech stack, technology stack, combined with business engineering logic, >> Paul: Yeah. >> And real business outcome, like profit, money outcome objectives that people might want. How do you guys explain that story because, you know, I would just call a consultant up in the past, are you guys combining it to make it easier? What's the purpose that customers call you guys in for? What are they asking for from you guys? >> So I'll start off and then Matt, you can add color commentaries, so, the way we describe what you just, what you just brought to life there, was, we have multi-disciplinary teams, so we have a combination of business strategists right, so when our clients are engaging us, they could be working with a business strategist who's really comfortable showing up for work and wearing a suit and tie, and he could be sitting next to, in our studio, sitting next to one of our creative designers who's tattooed from his wrist to his neck. >> The hoodie guy building everything. >> The hoodie guy, right, sitting there building there, next to one of our data scientists who's popping open his Lenovo laptop, it's got the latest chip in it, and he's so pumped 'cause he's going to run some crazy data analytics on it, applying AI on top of it. And all of these people work together using Design Thinking so we have an approach we call IBM Design Thinking, they've all been trained, we've trained over 16 thousand people on Design Thinking, and they all work together and come together to solve our clients' ploblems. They work in a studio environment, and we've opened up 38 studios around the world. Studios are places where we co-create with our clients, or we invite our clients in to ideate, innovate and co-create >> So it's agile on the format, on the projects, not like Waterfall, hey now you pass the ball to the other guy, it's all integrated team. >> Yes, and what you end up having is, you end up having the view of understanding the business and the client's business challenge, which is where we start when we define the strategy, when we do the design work, it's underpinned with an understanding of the technology that's going to bring this to life. So we like to say that we don't do creative for creative's sake or creative just for the beauty of the art, we do creative that can actually be made real. >> Yeah, you guys put a relevant package together. So I got to ask you now, the beauty of cloud computing was, is that you don't have to provision a data center if you don't need it. Now you see people needing a data center for privacy reasons they store their data, hence the hybrid cloud strategy, et cetera et cetera, but if I want to do something like what you guys are doing, it's going to cost me money to build it out. One, where are the people? Skills of the people, salaries of the people, tools for the people, all that is expensive to build out. So it's natural to go to someone who's already got it. So I want you guys to talk about that dynamic, of buy versus build, what stays in-house that's core competency, and what's the scale leverage that the clients get from working with you guys, 'cause you have that advantage. >> Yeah, and actually what I like to tee up is, this cost effective approach that we use to help our clients jumpstart the work that they're doing, we call it an innovation garage, and Matt and the team in the UK and in Europe have really been champions of this approach. Why don't you share some of the work we do around innovation garages. >> Yeah, so, I mean, one example is our client BP who we've been working with in this space, and helping them drive a lot of the digital reinvention of their business. And so, teams of data scientists, designers, developers, working hand in hand with product owners from the client side but ideating, finding new different digital products and services that help improve advocacy of customers drive loyalty, drive new revenue streams but very quickly taking those ideas and turning them into prototypes right, paper prototypes, actual MVPs, minimum viable products, launching them into market right, choosing some target markets, but putting very measurable KPIs around each of those things >> What's the timetable on that roughly, ballpark? >> Probably getting those MVPs out at eight to 10 weeks right >> So, fast. >> Oh yeah, fast. >> It's not months, not eight months. >> No, no, there's no Waterfall. And so a radically different approach to getting things out there, in the hands of real users. And then testing and learning, iterating, and then based on the data, actual fact and data backed against those KPIs and measurements then starting taking the decision around whether we're going to scale that into a global product. >> Yeah before we go to drill down on that, what's the alternative to doing that? How many months would it take if I want to do it from scratch in-house? >> Spinning up large transformation programs right, and >> John: A year. >> Yeah, at least, multi-years >> John: At minimum. >> Multi-years, and I think the other thing John, that's kind of key about this way of working, is that you're starting to infuse new ways of working and new ways of thinking into the client's organization right, and so Design Thinking: lean, agile, dev ops, right all of these approaches to get things done in a more rapid way and so, you're kind of driving change and transformation through making and creating and doing, not through some big change management program. And so we've been, if I took BP for example, training and certifying their people in IBM Design Thinking, certifying them as product owners and so, through the act of making and creating these services, it's changing their culture and changing how they get stuff done and it's a bit like a fire, kind of a little fire that burns and spreads within the organization as people see what's going on and want to become part of it. >> And one of the ways we do that we actually co-locate in these innovation garages. So you take a company like BP, if you go to our South Bank office, we have a dedicated floor where you have a hundred BP people with the IBM iX team, working in this innovation garage model, >> So they're learning too with you it's not like you're doing all the work and they're integrating in. No, no, we're learning together and they're building new skills and we're building new skills, and we're coming up with new ideas and innovations we're doing it in a cost-effective way, to your point before, in the past companies would spend a lot of money to try to go down a big path and try to in essence, boil an ocean sometimes. >> Yeah and your one guy quits, you got to replace, skill gaps, massive challenges. >> But also I find that from the client's perspective the thing that they're most proud of, some of the things they're most proud of, is the bin, what they call the bin. And so it's all of those ideas that we've killed as far to the left as possible right, and taking an idea that traditionally may have turned into some big program, multi-millions spent on doing it to find that it actually didn't deliver the outcome for the end consumer. >> So Matt, talk about the example with Wimbledon 'cause obviously everyone kind of can recognize that brand, you guys have been working at Wimbledon, you have a relationship with them so they've known IBM for years. What's the current state of the art with Wimbledon? What are some of the things you're doing for those guys and how is iX team, your integrated design team, working with those guys? >> So we've been partnering with Wimbledon now for about 28 years, so relationship goes back to 1990, I mean Wimbledon's been around back since the 1870s, you know, the home of kind of tennis, tennis in an English garden, so complete with rain and drizzle and gray clouds and everything else. And so, probably over the last seven years we've been working with them to drive their digital transformation, and so, how they engage with fans, and so how they use data and analytics to drive insights to put very personalized experiences in the hands of fans. So if you think about an event like Wimbledon, runs for 13 days, and about 500 thousand people get to physically experience Wimbledon in the grounds. And so their whole strategy from a digital perspective is taking the beauty of the grounds and the experience, and how they can manifest that digitally to millions of people around the world. >> And that's more than live streaming that's more than highlights, that's replicating the vibe the buzz, the experience of being there. >> Completely, so if you look at the web channel right when you go to that website, you don't actually see tennis players and stuff on there. What you might see is a beautiful flower just wafting in the breeze right, so a lot of the technology and the experience that we put together is trying to bring to life the beauty of the grounds right, through those digital mediums. And also being very thoughtful and purposeful about the different channels, so when you think about the mobile app right people use that to get snack access to data they're on the move, they want to understand the scores, alerts, iPad, people tend to use that sat on the sofa in front of the telly, you know, second screen experience so there's a different set of use cases and demands. We launched the first Apple TV app for grand slam tennis tournaments. So again, people tend to be using that for catch up and replays and so, being very thoughtful and purposeful about the... >> And you got to keep track of the digital culture 'cause it's like fashion, you got to know what's state of the art, what's going to sell VR, AR, whole new creatives coming out >> You do but you also have to do it in a way that's authentic to the product. >> Tech fashion. (laughter) The latest and greatest. >> Hashtag new hashtag tech fashion But you also have to do it, what I was going to say, you have to do it in a way that's authentic to the brand that you're representing. >> John: And relevant. >> Correct, so we're expressing the brand of Wimbledon online through digital channels and mobile channels, it has to be consistent with the brand, the brand values, the brand purpose, the brand mission. >> And that goes in to the design side of it 'cause they're going to tell you look if we go off the brand, we're not... >> The beauty, the elegance, the elegance of the sport, the elegance of the All England Tennis Club, you have to capture all of that and represent it in a way that's genuine. >> Alright so this is where the melting pot between agency, creative, ad agency, where it's much more about experience, less about the tech, and tech come together. So I wanted to ask you, I did a panel this year at Sundance called the New Creative, with Intel and it was all about the emerging new creative artists that have tech behind it, and here's what we talked about, I want to get your reaction to it. Agile, which killed Waterfall development, made things less risky, the old days was, you build something, a lot of craftsmanship goes into it, but you ship it, you don't know if it's going to work, and you hope it works and sells. Then Agile de-risked that, but you're shipping code every day. But what we lost with Agile that's now coming back, and I think this is where you guys are hitting the mark, the idea of craftsmanship in the product is coming back. So you got Agile, that's good, but it felt boring, it felt, the products didn't feel great. Yeah, certainly they were successful and they used data to be agile and always be iterating, fail fast, et cetera, but now the users want craftsmanship, they want art, they want more experience in the tech product What's your reaction to that, what's your vision? Do you agree and, if you do, what's your opinion? >> Well I agree on the recommitment to craft, and the approach that we take to that is really starting with Design Thinking, and we view this a couple different ways. One, we think Design Thinking is a way to actually solve business problems in the modern world. Now design, we view as a craft. So we have very specific craftspeople that are pure designers, that's what they do every day for a living. Everyone in our organization practices Design Thinking. So I believe that the use of Design Thinking coupled with our design community and the world-class talent that we have there, has enabled to really get an underlying need, right. So when you're doing a design, you have to have the understanding of the underlying need of the customers that you're trying to serve. And that's what we really get at, so the craftsmanship that comes in through applying Design Thinking, applying your design principles to creating something that can then be made real and have an impact. If you ask our designers, in our 38 studios around the world what they love about being part of IBM iX and being part of IBM, it's the impact that they can have. That they can see their design scale, they can see it brought to life in a way that is far beyond anything they could've done at any agency >> Can't fake design, it's like security, you can't fake it, it either works or it doesn't. >> And the way we think about design right is about almost design with a capital D. And so it's not just about how things look and feel, it's about how they work, and so how you can apply design to help solve problems in a very different way right. And how you apply design to strategy because designers are problem solvers. And so actually having people apply a designer's mindset to problem solving, you end up with very different outcomes right, you end up with a lot more innovation driving into what you're building, and I think you end up with products and services that actually help make somebody's life a little bit easier right, you're taking friction out of their life you're delivering something meaningful and of value to them. >> You're doing empathy mapping, you're doing customer journey mapping, you're doing a persona development. I want to build on what Matt said though that designers are problem solvers. When we look at Design Thinking, we have a method called IBM Design Thinking, and the logo that we use for Design Thinking is actually an infinity loop. So what we do is we combine Design Thinking with Agile and I think of IBM Design Thinking as a 3-D printing of a solution to a problem. We're designing it, we're getting at an underlying need, we're prototyping something fitting a proof of concept, we're learning, we're now doing another iteration of Design Thinking and learning more about the underlying need, testing something, and as we keep testing and learning, we add more texture to the solution of the problem and it starts coming into focus for us. >> Yeah, and the key word's problem. I interviewed a Stanford professor on the cutting edge of innovation, design she said, "Don't fall in love with your product. Fall in love with solving problems." And I think that's kind of what you guys believe. >> And I think John, to the point that you raised, about Agile, you know, we see many organizations driving kind of Agile transformation and shifting, and you know, I think our perspective is very much is you need this combination of design, of Agile and dev-ops together, because Agile allows you to pivot quickly, dev-ops allows you to kind of learn and get rapid feedback from production and putting things out there, and you've got to have this kind of design-led approach to doing stuff, because you've got to make sure that what you're building and putting out there serves a purpose and a real outcome for the end user. >> That's perfect, and most people think oh, we're Agile, check. No, whoa, hold on, stop, yeah it's not a silver bullet. >> You brought up a great point from a business leadership perspective that don't fall in love with your products, fall in love with the problems that you're solving, We are seeing that across every industry we work in, and I think this new digital age, with all these emerging technologies going mainstream so fast, AI, AR, VR, blockchain, it's allowing companies to, in some ways, reimagine their purpose, but in some ways, revisit their original purpose. So if you look at, Ford as an example, they've declared that they're going from pure car manufacturing, to mobility services. If you look at our clients in the life sciences industry, years ago they would've declared themselves as pharmaceutical manufacturers right? But now they would look at themselves as partners in health and partners in the health ecosystem. And every industry we're operating in, there's that re-imagining or revisit of the core mission. >> I think this is the only interview I haven't asked about blockchain, but I was just talking to Jesse Lund about blockchain and we talked about digital currencies, digital, and we observed, and we were talking about things are happening faster. So what's happening on digital it's a speed gain, across the board, with currency there's no clearing, it's digital, it moves instantly. So his banking side, that's his thesis, but here, your customers are challenged with looking down the barrel and being scared when, damn, this is going to be fast, what if I screw this up? I mean this is kind of how I see it happening, like it's accelerated in all aspects. >> And this is where I think, in terms of the business that we're in how we're different, and you've kind of raised the traditional agencies and stuff earlier, John. I think the difference for us is, you know when you think about the world of advertising, and companies driving their message out through shouting loudly and campaigns and building micro-sites, actually, our perspective very much is that these, most organizations need to look at how they digitally reinvent, right. And so therefore the scale of change needed as they look to reinvent their businesses, the business models, the skill pools within the organization, how they're going to use data and insights to drive different experiences you start to move to a very different level of change and transformation right, and one where these technology platforms, and becoming a platform business in these organizations, right, need a partner fundamentally who can help them scale and drive that change. >> And the data's critical, using data, using cloud, dev-ops, Agile, design, all rolled into a highly accelerated process, that's hard. >> It is hard but, >> You guys are doing it though. >> Well yeah, that's what we do for a living. It's what our clients are faced with right now. It's kind of a like a Dickensian-like challenge, right, it's A Tale of Two Cities. With all the emerging tech that we were talking about before there's never been a better time to create new innovations. To be innovative in some of the things that we're doing with BP was a great example of that. And some of the bigger things we're doing with some clients that are trying to reinvent their organization around a renewed purpose. But at the same time, there's never been a bigger threat to existing companies, in terms of there's never been more opportunity to be disrupted. So between these two poles of never been a better time to be in business, never been a tougher time to be disrupted, that's where our clients are operating. And this juxtaposition of core and new where our clients have mostly been in business for more than a few years. They have a core business that they need to grow and optimize, while they also need to expand into the new. And they can't do one or the other, they have to do both at the same time. >> And you know the customers I talk to in the industry, around this area, really look down, they look at three choices. Go for it, that's scary, need a partner to do that you guys are there for that. Don't do anything, put your head in the sand. Or three, create blockers and ban stuff. So you're seeing, you kind of walk in and you kind of figure out who's doing what. You see the blockers with all these excuses, no well we've got this other... And then the head, well we should be, they don't do anything, they're not moving. And then people who move. >> Yeah. >> I mean that's the reality right now. >> You know, what we see, we just published this research you know, a C-suite study, so we interviewed 12,000 C-suite executives, over 2,500 CEOs, and the title of this study's The Incumbents Strike Back, and that's what we're seeing now, so we're not seeing folks kind of sitting or putting their heads in the sand, they're looking at their legacy business, and the competitive advantage they have because of all the knowledge and incumbent advantage that they have, and now applying that. >> Well Paul and Matt, we don't have enough time to go into the impact of blockchain and cryptocurrencies, and initial coin offering's impact, to the token economics of how your business will change but we'll do that another time. >> Fantastic. >> Alright thanks for joining The Cube. I'm John Furrier here live in Las Vegas for IBM Think 2018. A lot of great conversations here in The Cube number one live tech coverage, extracting the signal from the noise. We'll be back with more after this short break. (techno music)