(upbeat music) >> From ''theCUBE studios,'' in Palo Alto, in Boston, connecting with thought leaders all around the world. This is ''theCUBE Conversation.'' >> Hi, I'm John Walls. And as we're all aware, technology continues to evolve these days at an incredible pace and it's changing the way industries are doing their business all over the world and that's certainly true in telecommunications, CSPs all around the globe are developing plans on how to leverage the power of 5G technology and their network operations are certainly central to that mission. That is the genesis of ''IBM's Cloud for Telecommunications Service.'' That's a unified open hybrid architecture, that was recently launched and was developed to provide telecoms with the solutions they need to meet their very unique network demands and needs. I want us to talk more about that. I'm joined by Steve Canepa, who is the Global GM and Managing Director of the communication sector at IBM. Steve, good to see you today. >> Yeah, you too, John. >> And Jeffrey Hammond. So, he's the Principal Analyst and Vice President at Forrester. Jeffrey, thank you for your time as well today. Good to see you. >> Thanks a lot. It's great to be here. >> Yeah, Steve, let's just jump right in. First off, I mean, to me, the overarching question is, why telecom, I know that IBM has been very focused on providing these kinds of industries specific services, you've done very well in finance, now you're shifting over to telecom. What was the driver there? >> First, great to be with you today, John, and, you know, if we look at the marketplace, especially in 2020, I think the one thing that's, everyone can agree with, is that the rate and pace of change is just really accelerating and is a very, very dynamic marketplace. And so, if we look at the way both our personal lives are now guided by connectivity, and the use of multiple devices throughout the day, the same with our professional lives. So, connectivity really sits at the heart of how value and solutions are delivered and for businesses, this is becoming a critical issue. So, as we work with the telecommunication providers around the world, we're helping them transform their business to make it much more agile, to make it open and make them deliver new services much more quickly and to engage digitally with their clients to bring that kind of experience that we all expect now, so, that the rate pace of change, and the need for the telecommunications industry to bring new value, is really driving a tremendous opportunity for us to work with them. >> Jeffrey what's happening in the telecom space? That, I mean, these aren't just small trends, right? These are tectonic shifts that are going on in terms of their new capabilities and their needs. I'm sure this digital transformation has been driven in some part by COVID, but there are other forces going on here, I would assume too. What do you see from your analyst seat? >> Yeah, I look at it, you know, from a glass half full and a glass half empty approach. From a half empty approach, the shifts to remote work and remote learning, and from traditional retail channels, brick and mortar channels to digital ones, have really put a strain on the existing networking infrastructure, especially, at the Edge, but they've also demonstrated just how critical it is to get that right. You know, as an example, I'm actually talking to you today over my hotspot on my iPhone. So, I think a lot more about the performance of my local cell tower now than I ever did a year ago. and I want it to be as good as it can possibly be and give me as many capabilities as it can. From a glass half full perspective, the opportunities that a modernized network infrastructure gives us are, I think, more readily apparent than ever, you know, most of my wife's doctor's appointments have shifted to remote appointments and every time she calls up to connect, I kind of cringe in the other room and it's like, are they going to get video working? Are they going to get audio working? Are they actually going to have to shift to an old-style phone call to make this happen? Well, things like 5G really are poised to solve those kinds of challenges. They promise, 5G promises, exponential improvements in connectivity speed, capacity, and reductions in latency that are going to allow us to look at some really interesting workloads, IOT workloads, automation workloads, and a lot of Edge use cases. I think 5G sets the stage or Edge compute. Expanding Edge compute scenarios, make it possible to distribute data and services where businesses can best optimize their outcomes, whether it's IOT enabled assets, whether it's connected environments, whether it's personalization, whether it's rich content, AI, or even extended reality workloads. So, you might seem like, that's what a little over the horizon, but it's actually not that far away. And as companies gain the ability to manage and analyze and localize their data, and unlocks real-time insights in a way that they just haven't had before, it can drive expanded engagement and automation in close proximity to the end point devices and customers. And none of that happens without the telco providers and the infrastructure that they own being on board and providing the capabilities for developers like me to take advantage of the infrastructure that they've put in place. So, my perspective on it is, that transformation, that digital transformation, is not going to happen on its own. Someone's got to provision the infrastructure, someone's got to write the code, someone's got to get the services as close to my cell tower or to the Edge as possible and so, that's one of the reasons that when we ask decision makers in the telco space about their priorities from a business perspective, what they tell us is, one of their top three priorities is, we need to improve our ability to innovate and the other two are, we need to grow our revenue and we need to improve our product and services. What's going on from a software perspective in the telco space, is set to make all three of those possible, from my perspective. >> You know, Steve, Jeffrey just unpacked an awful lot there, did a really nice job of that. So, let's talk about first off, that telco relationship IBM's had, or has. You work with data, the 10 largest communication service providers in the world, and I'm sure you're on this journey with them, right? They've been telling you about their challenges and you recognize their needs. This is, you have had maybe some specific examples of that dialogue, that has progressed as your relationship has matured and you provide a different service to them. What are they telling you? What did they tell you say, '' This is where we have got to get better. We've got to get a little sharper, a little leaner.'' And then how did IBM respond to that? >> Yeah, I mean, critical to what Jeffrey just shared is under the covers. You know, 5G is going to take five times the cost that 4G took to deploy. So, if you're a telco, you have to get much more efficient. You have to drive a much more effective TCO into cost of deploying and managing and running that network architecture. When the network becomes a software defined platform, it opens up the opportunity to use open source, open technology, and to drive a tremendous ecosystem of innovation that you can then capture that value onto that open software network. And as the Edge emerged as compute and storage and connectivity, both to the Edge as Jeffrey described, then the opportunity to deliver B2B use cases to take advantage of the latency improvements with 5G, take advantage of the bandwidth capabilities that you have moving video and AI out to the Edge, so, you can create insights as a service. These are the underlying transformations that the telcos are making right now to capture this value. And in fact, we have an institute for business value on our website. You can see some of the surveys and analysis we've done but 84% of the telco clients say, you know, '' Improving the automation and the intelligence of this network platform becomes critical.'' So, from our standpoint, we see a tremendous opportunity to create an open architecture to allow the telcos to regain control of their architecture so that they can pick the solutions and services that work best for them to create value for their customers and then allows them to deploy them incredibly quickly. In fact, just this last week, we announced a milestone with Bharti, a project that we're doing in India, already has over 300 million subscribers. We've taken their ability to deploy their run environment, one of the core domains of the network, where you actually do the access over the cell towers. We've improved that from weeks down to a few days. In fact, our objective is to get to a few minutes. Applying that kind of automation dramatically improves the kind of service they can deliver. When we talk about relationships we have with Vodafone, AT$T, Verizon, about working with them on their mobile Edge compute platforms, it will allow them to extend their network. In fact, with our cloud announcement that you highlighted at the top, we announced a capability called the IBM Cloud Satellite and what IBM Cloud Satellite does is, it's built with Red Hat, so, it's open architecture, it takes advantage of the millions and millions of upstream developers, that are developing every single day to build a foundational shift architecture that allows us to deploy these services so quickly and we can move that capability right now to the Edge. What that means for a telco, is they can deploy those services wherever they want to deploy them, on their private infrastructure or on a public cloud, on a customer's premise, that gives them the flexibility. The automation allows them to do it smartly and very quickly and then in partnering with clients, they can create new end Edge services, things like, you know, manufacturing 4.0 you may have heard of or as you mentioned, advanced healthcare services. Every single industry is going to take advantage of these changes and we're really excited about the opportunity to work in combination with the telcos and speed the pace of innovation in the market. >> Jeffrey, I'd like to go back to the Bharti there. I was going to get into it a little bit later but Steve brought it up. This major Indian CSP, as you mentioned, 300 million subs, 400 million around the world. What does that say to you in terms of its commitment and its, the needs that are being addressed and how it's going to fundamentally change the way it is doing business as far as setting the pace in the telecom industry? >> Well, I think, one of the things that highlights it is, you know, this isn't just a U.S phenomenon or a European phenomenon. Indeed, in some cases we're seeing countries outside the U.S in advance, moving faster, Switzerland, as an example. We expect 90% of the population in Germany to be covered by 5G By 2025, we expect 90% of the population in South Korea to be covered by 2026, 160 million connections in in China as well. So, in some ways, what's happening in the telco world is mirroring what has happened in the public cloud world, which is the world's gone flat. And that's great from a developer perspective because that means that I don't have to learn specialized technologies or specialized services, in order to look at these network infrastructure platforms as part of the addressable surface that I have. That's one of the things that I think has always held the larger developer population back and has kept them from taking advantage of the telco networks. Is, they've always been bit of a black box to the vast majority of developers, you know, IP goes in, IP comes out but that's about all the control I have, unless I want to go and dig deep into those, you know, industry specific specifications. I was cleaning out my office last week because I'm in the process of moving and I came across my '' IMS Explained Handbook from 2006,'' and I remember going deep into that because, you know, we were told that that's going to make it so that IT infrastructure and telco infrastructure is going to converge and it did to a little bit, but not in a way that all the developers out there could really take advantage of telco infrastructure. And then I remember the next thing was like, well, '' Java Amiens on the front end with mobile clients, that's going to make everything different and we're going to be able to build apps everywhere.'' What ended up being was we would write once and test everywhere, across all the different devices that we had to support. And you know, what really drove you equity? Was the iPhone and apps that we could use HTML like technology or that we could use Java to build and it exploded. And we got millions of applications on the front end of the network. What I see potentially happening now, is the same thing on the backend infrastructure side, because the reality is for any developer that is trying to build modern applications, that's trying to take advantage of cloud native technologies, things start with containers and specifically, OCI compliant containers. That is the basis for how we think about building services and handing them off to operators to run them for us. And with what's going on here, by building on top of OpenShift, you take that, you know, essentially de facto standard of containers as the way that we communicate on the infrastructure side globally, from a software development perspective and you make that the entry point for developers into the modern telco outcome system. And so, basically, it means that if I want to push all the way out to the Edge and I want to get as close as I possibly can, as long as I can give you a container to execute that capability, I'm well on the way to making that a reality, that's a game changer in my opinion. >> Yeah, I was on. >> Just to pick it, just if I could, just to pick up on that because I think Jeffrey made a really important point. So, it's kind of like, in a way, an auntie to the ball here is this open architecture because it empowers the entire ecosystem and it allows the telcos to take advantage of enormous innovation that's happening in the marketplace. And that's why, you know, the 35 ecosystem partners that we announced when we announced the IBM Cloud for telco, that's why they're so important because it allows you to have choice. But the other piece, which he hinted at, I wanted to just underscore, is today, in it kind of the first wave of cloud, only about 20% of the applications move to cloud. They were mostly funny digital applications. In fact, we moved our funny digital applications as well into Watson, we have over 1.5 billion customers of telcos today around the world that can access Watson, through our various chatbot and call center or an agent assist solutions we've deployed. But the 80% of applications that haven't moved yet, haven't moved because it's tough to move them, because they're mission critical, they need, you know, regulatory controls, they have to have world-class security, they need to be able to provide data sovereignty as you're operating in different countries around the world and you have to make sure that you have the data in places that you need, these are the attributes, that kind of open up the opportunity for all these other workloads to move. And those are the exact kind of capabilities that we've built into the IBM Cloud for telco, so that we can enable telcos to move their applications into this environment safely, securely, and do it, as Jeffrey described, on an open architecture that gives them that agility and flexibility. And we're seeing it happen real time, you know, I'll just give you another quick example, Vodafone India, their CTO has said publicly and moving to this cloud architecture, he sees it as a universal cloud architecture, so, they're going to run not just their internal it workloads, not just their network services, their voice data and multimedia network services workloads, but also their B2B enterprise workloads, as Jeffrey was starting to describe. Those workloads that are going to move out to the Edge. And by being able to run on a common platform, he's said publicly that they're seeing an 80% improvement in their CapEx, a 50% improvement in their OPEX, and then 90% improvement in the cost to get productions and services deployed. So, the ability to embrace this open architecture and to have the underlying capabilities and attributes in a cloud platform that responds to the specific needs of telco and enterprise workloads, we think is a really powerful combination. >> Steve, the ecosystem, Jeffrey, you brought it up as well. So, I'd like, just to give you a moment to talk about that a little bit, not a small point, by any means you have nearly 40 partners lined up in this respect, from a hardware vendor, software vendors, SAS providers. I mean, it's a pretty impressive lineup and what kind of a statement is that in your, from your perspective, that you're making to the marketplace when you bring that kind of breadth and depth, that kind of bench, basically the game? >> From our view, it's exciting, and we're only getting started. I mean, we literally have not made the announcement, just a matter of a couple of months ago, and every day that passes, we have additional partners that see the power in joining this open architecture approach that we've put in place. The reason that it delivers such values for all the players, you know, one of the hallmarks of a platform approach is that for every player that joins the platform, it brings value to all the players on the cloud. So as we build this ecosystem and we take the leverage of the open source community, and we build on the power of OpenShift and containers, as Jeffrey was saying, we're creating momentum in the marketplace and back to my very first point I made, when the market's moving really quickly, you've got to be agile. And to be agile in today's market, you have to infuse automation at scale, you have to infuse security at scale and you have to infuse intelligence at scale. And that's exactly what we can help the telcos do, and do it in partnership with these enterprise clients. Instinctively >> One of the values of that is that, you know, we're seeing the larger trend in the cloud native space of folks that used to build packaged software services, is essentially taking advantage of these architectural capabilities and containerizing their applications as part of their future strategy. I mean, just two weeks ago, Salesforce basically said, we're reinvisioning Salesforce as a set of containerized workloads that we deliver, SAP is going in very much the same direction. So as you think about these business workloads, where you get data coming from the infrastructure and you want to go all the way back to the back office and you want to make sure that data gets updated in your supply chain management system, being able to do that with a consistent architecture makes these integration challenges just an order of magnitude easier. I actually want to drill in on that data point for a minute because I think that that's also key to understanding what's going on here, because, you know, during the early days of the public cloud and even WebDuo before that, one of the things that drove WebDuo was the idea that data is the new Intel inside and in some ways that was around centralized data because we had 40 or 50 years to get all the data into the data centers and into the, and then put it in the public cloud. But that's not what is happening today. So much of the new data is actually originating at the Edge and increasingly it needs to stay at the Edge if for no other reason than to make sure that the folks that are trying to use it well aren't running up huge ingestion costs, trying to move it all back to the public cloud providers, analyze it and then push it back out and do that within the realm of the laws of physics. So, you know, one of the big things that's driving the Edge is, in the move toward the Edge, and the interest in 5G is that allows us to do more with data where the data originates. So, as an example, a manufacturer that I've been working with that basically came across exactly that problem, as they stood up more and more connected devices, they were seeing their data ingestion volume spiking and kind of running ahead of their budgets for data ingestion but they were like, well, we can't just leave this data and discard it at the Edge, because what happens if it turns out to be valuable for the maintenance, preventative maintenance use cases that we want to run, or for the machine wear characteristics that we want to run. So, we need to find a way to get our models out close to the data so we don't have to bring it all back to the core. In retailing, personalization is something that a lot of folks are looking at right now and even clientelling and that's, again, another situation where you want to get the data close to where the customer actually lives from a geographic basis and into the hands of the person that's in the store but you don't want to necessarily have to go and install a lot of complex hardware in the retail outlet because then somebody has to manage, you know, those servers and manage all those capabilities. So, you know, in the case of the retailer that I was working with, what they wanted was to get that capability as close as possible to the store, but no closer. And the idea of essentially a virtual back office that they could stand up whenever they opened up a new retail outlet, or even had a franchisee open up an outlet, was an extremely powerful concept and that's the kind of thing that you can do when you're saying,'' Well it's just a set of containers and if I have a, you know, essentially a control plane that I deploy it to, then I can do that on top of that telco provider that they sign up to be a strategic services provider.'' There are lots of other interesting scenarios, tourism, if you think about, you know, the tourist economies that we have around the world and the data that, you know, mobile devices throw off that let us get anonymized information about who's coming, where they're going, what they're spending, how long they're staying, there's a huge set of data there that you can use to grow revenue. You know, other types of use cases, transportation? We see, you know, municipal governments kind of looking at how they can use anonymized data around commute patterns to impact their planning. That's all data that's coming from the the telco infrastructure. >> You know, when we're talking about these massive advantages, right, as this hybrid cloud approach about skill ones, build one's, easy management, efficient management, all of these things, Steve, I think we almost, we'd be derelict to duty if we didn't talk about security a little bit. Just ultimately at the end of the day, you've got to provide this as you pointed out, world-class secure environment. And so, in terms of the hybrid approach, what kind of considerations do you have to make that are special to that and that are being deployed and have been considered >> You know, that's a great point. One of the benefits to Comms from moving to an open architecture, is that you componentize the framework of that architecture, and you have suppliers supplying applications for the various different services that we just talked through. And the ability then to integrate security is essentially a foundational element to the entire Premack architecture. We've stayed very compliant with the Nanci framework architecture and the way that we've worked with the telcos and bringing forth a solution, because we specifically want them to have the choice but how is that choice being married with the kind of security you just talked about. And to Jeffrey's point, you know, when you move those applications out to the Edge and that data, you know, many of the analysts are saying now by 2025, as much as 75% of the data created in the world will happen at the Edge. So, this is a massive shift. And when that shift occurs, you have to have the security to make sure that you're going to take care of that data in the way that it should be and that meets all regulatory, you know, governance already rules and regulations. So, that becomes really critical. The other piece though, is just the amount of value that gets created. The reason that data is at the Edge is because now you can act on it at the Edge, you can extract insights and in fact, most of the analysts will say,'' In the next three years, we'll see $675 billion of new value created at the Edge with these kinds of applications.'' And going back on the manufacturing example, I mean, we're already working today with manufacturers and they already had, you know, hundreds of IOT sensors deployed in the factory and we have an Edge application manager that extends right out to the far Edge, if you will, right out onto that factory floor to help get intelligence from those devices. But now think about adding to that the AI capabilities, the video capabilities, watching that manufacturing line to make sure every product that comes off that line is absolutely perfect, Watching the employees to make sure they're staying in safety zones, you know, watching the actual equipment itself to make sure it is performing the way it's supposed to, maybe using an analytics and AI capabilities to predict, you know, issues that might arise before they even happen, so you can take preventative action. This kind of intelligence, you know, makes the business run smarter, faster, more effective. So, that's where we see tremendous service. So, it's not just the fact that data will be created and it will be higher fidelity data to include the analytics, AI, you don't include unstructured data like video data and image data, audio data, but the ability to then extract insights and value out of it. And this is why we believe the ecosystem we talked about earlier, our partnership with the telco's and the ability to bring ecosystem partners and they can add value is just a tremendous momentum that we're going to build. >> Well, the market opportunity is certainly great. As you pointed out, a lot of additional value yet to be created, significant value and obviously, a lot of money to be spent as well by telcos, by some estimates, a hundred billion plus, just by the year 2022 and getting this new software defined platforms up and running. So, congratulations to IBM for this launch and we wish you continued success, Steve, in that endeavor and thank you for your time and Jeffrey, thank you as well for your insights from Forester. >> Always a pleasure. (upbeat music)

>> Narrator: From around the globe, it's theCUBE! With digital coverage of DevOps Virtual Forum, brought to you by Broadcom. >> Hi, Lisa Martin here covering the Broadcom DevOps Virtual Forum. I'm very pleased to be joined today by a CUBE alumni, Jeffrey Hammond, the Vice President and Principal Analyst serving CIOs at Forrester. Jeffrey, nice to talk with you today. >> Good morning, it's good to be here. >> So, a virtual forum, a great opportunity to engage with our audiences. So much has changed in the last, it's an understatement, right? Or it's an overstated thing, but it's obvious. So much has changed. When we think of DevOps, one of the things that we think of is speed, enabling organizations to be able to better serve customers or adapt to changing markets like we're in now. Speaking of the need to adapt, talk to us about what you're seeing with respect to DevOps and Agile in the age of COVID. What are things looking like? >> Yeah, I think that for most organizations, we're in a period of adjustment. When we initially started, it was essentially a sprint. You run as hard as you can for as fast as you can for as long as you can and you just kind of power through it. And that's actually what the folks at GitHub saw in May, when they run an analysis of how developers commit times and level of work that they were committing and how they were working. In the first couple months of COVID, was progressing, they found that developers, at least in the Pacific Time Zone, were actually increasing their work volume, maybe 'cause they didn't have two hour commutes, or maybe because they work stuck away in their homes, but for whatever reason, they were doing more work. And it's almost like, if you've ever run a marathon, the first mile or two in the marathon, you feel great, you just want to run and you want to power through it, you want to go hard. And if you do that, by the time you get to mile 18 or 19, you're going to be gassed, sucking for wind. And that's I think where we're starting to hit. So as we start to gear our development shops up for the reality that most of us won't be returning into an office until 2021 at the earliest. And many organizations will be fundamentally changing their remote work policies, we have to make sure that the agile processes that we use, and the DevOps processes and tools that we use to support these teams are essentially aligned to help developers run that marathon, instead of just kind of power through. So, let me give you a couple specifics. For many organizations, they have been in an environment where they will tolerate remote work and what I would call remote work around the edges, like developers can be remote, but product managers and essentially scrum masters and all the administrators that are running the SCM repositories and the DevOps pipelines are all in the office. And it's essentially centralized work. That's not where we are anymore. We're moving from remote workers at the edge to remote workers at the center of what we do. And so, one of the implications of that is that we have to think about all the activities that you need to do from a DevOps perspective, or from an agile perspective. They have to be remotable. One of the things I found with some of the organizations I talked to early on was, there were things that administrators had to do that required them to go into the office, to reboot the SCM server as an example, or to make sure that the final approvals for production were made. And so, the code could be moved into the production environment. And so, it actually was a little bit difficult because they had to get specific approval from the HR organizations to actually be allowed to go into the office in some states. And so, one of the the results of that is that, while we've traditionally said tools are important, but they're not as important as culture, as structure, as organization, as process, I think we have to rethink that a little bit. Because to the extent that tools enable us to be more digitally organized and to achieve higher levels of digitization in our processes, and be able to support the idea of remote workers in the center. They're now on an equal footing with so many of the other levers that organizations have at their disposal. I'll give you another example. For years, we've said that the key to success with Agile at the team level is cross functional, co-located teams that are working together. Physically co-located. It's the easiest way to show agile success. We can't do that anymore. We can't be physically located at least for the foreseeable future. So, how do you take the low hanging fruits of an agile transformation and apply it in the time of COVID? Well, I think what you have to do is you have to look at what physical co-location has enabled in the past and understand that it's not so much the fact that we're together looking at each other across the table, it's the fact that we're able to get into a shared mind space. From a measurement perspective, we can have shared purpose, we can engage in high bandwidth communications. It's the spiritual aspect of that physical co-location that is actually important. So, one of the biggest things that organizations need to start to ask themselves is, how do we achieve spiritual co-location with our Agile teams, because we don't have the ease of physical co-location available to us anymore. >> Well, spiritual co-location is such an interesting kind of provocative phrase there, but something that probably was a challenge. Here we are seven, eight months in, for many organizations as you say, going from physical workspaces, co-location, being able to collaborate face to face to a light switch flip overnight, and this undefined indeterminate period of time where all we were living with was uncertainty. How does spiritual... When you talk about spiritual co-location in terms of collaboration and processes and technology. Help us unpack that and how are you seeing organizations adopt it? >> Yeah, it's a great question. And I think it goes to the very root of how organizations are trying to transform themselves to be more agile and to embrace DevOps. If you go all the way back to the original Agile Manifesto. There were four principles that were espoused. Individuals and interactions over processes and tools. That's still important, individuals and interactions are at the core of software development. Processes and tools that support those individuals in those interactions are more important than ever. Working software over comprehensive documentation. Working software is still more important. But when you are trying to onboard employees, and they can't come into the office, and they can't do the two day training session, and kind of understand how things work, and they can't just holler over theCUBE, to ask a question, you may need to invest a little bit more in documentation to help that onboarding process be successful in a remote context. Customer collaboration over contract negotiation. Absolutely still important. But employee collaboration is equally as important if you want to be spiritually co-located and if you want to have a shared purpose. And then, responding to change over following a plan. I think one of the things that's happened in a lot of organizations is we have focused so much of our DevOps effort around velocity. Getting faster, we need to run as fast as we can. Like that sprinter, okay? Trying to just power through it as quickly as possible. But as we shift to the marathon way of thinking, velocity is still important but agility becomes even more important. So when you have to create an application in three weeks to do track and trace for your employees, agility is more important than just flat out velocity. And so, changing some of the ways that we think about DevOps practices is important to make sure that that agility is there. For one thing, you have to defer decisions as far down the chain to the team level as possible. So those teams have to be empowered to make decisions. Because you can't have a program level meeting of six or seven teams in one large hall and say, here's the lay of the land, here's what we're going to do, here are our processes, and here are our guardrails. Those teams have to make decisions much more quickly. The developers are actually developing code in smaller chunks of flow. They have to be able to take two hours here, or 50 minutes there and do something useful. And so, the tools that support us have to become tolerant of the reality of how we're working. So, if they work in a way that it allows the team together to take as much autonomy as they can handle, to allow them to communicate in a way that delivers shared purpose, and allows them to adapt and master new technologies, then they're in the zone, they'll get spiritually connected. I hope that makes sense (chuckles). >> It does, I think we all could use some of that. But you talked about in the beginning and I've talked to numerous companies during the pandemic on theCUBE about the productivity or rather the number of hours worked has gone way up for many roles, and times that they normally at late at night on the weekends. So, but it's a cultural, it's a mind shift. To your point about DevOps focused on velocity, sprint, sprint, sprint, and now we have to. So that cultural shift is not an easy one for developers and even the biz folks to flip so quickly. What have you seen in terms of the velocity at which businesses are able to get more of that balance between the velocity, the sprint and the agility? >> I think at the core, this really comes down to management sensitivity. When everybody was in the office, you could kind of see the mental health of development teams by watching how they work, you can call it management by walking around, right? We can't do that, managers have to be more aware of what their teams are doing, because they're not going to see that developer doing a check in at 9:00 p.m. on a Friday, because that's what they had to do to meet the objectives. And they're going to have to find new ways to measure engagement and also potential burnout. A friend of mine once had a great metric that he called the Parking Lot Metric. It was helpful as the parking lot at nine and helpful was it at five. And that gives you an indication of how engaged your developers are. What's the digital equivalent of the Parking Lot Metric in the time of COVID, it's commit stats, it's commit rates, it's the turn rate that we have in our code. So we have this information, we may not be collecting it, but then the next question becomes how do we use that information? Do we use that information to say, well, this team isn't delivering at the same level of productivity as another team? Do we weaponize that data? Or do we use that data to identify impedances in the process? Why isn't a team working effectively? Is it because they have higher levels of family obligations, and they've got kids that are at home? Is it because they're working with hardware technology, and guess what, it's not easy to get the hardware technology into their home office, because it's in the lab, at the corporate office. Or they're trying to communicate halfway around the world. And they're communicating with an office lab that is also shut down. And the bandwidth just doesn't enable the level of high bandwidth communications. So, from a DevOps perspective, managers have to get much more sensitive to the exhaust that the DevOps tools are throwing off, but also how they're going to use that in a constructive way to prevent burnout. And then they also need to, if they're not already managing, or monitoring or measuring the level of developer engagement they have, they really need to start. Whether that's surveys around developer satisfaction, whether it's more regular social events where developers can kind of just get together and drink a beer and talk about what's going on in the project and monitoring who checks in and who doesn't. They have to work harder, I think than they ever have before. >> Well, and you mentioned burnout. And that's something that I think we've all faced in this time at varying levels, and it changes and it's a real, there's a tension in the air regardless of where you are. There's a challenge, as you mentioned, people having their kids as co-workers and fighting for bandwidth, because everyone is forced in this situation. I'd love to get your perspective on some businesses that have done this, well, this adaptation. What can you share in terms of some real world examples that might inspire the audience? >> Yeah, I'll start with Stack Overflow. They recently published a piece in the Journal of the ACM around some of the things that they had discovered. First of all, just a cultural philosophy. If one person is remote, everybody is remote. And you just think that way from the executive level. Social spaces, one of the things that they talk about doing is leaving the video conference room open at the team level all day long. And the team members will go on mute, so that they don't have to, that they don't necessarily have to be there with somebody else listening to them. But if they have a question, they can just pop off mute really quickly and ask the question and if anybody else knows the answer, it's kind of like being in that virtual pod, if you will. Even here at Forrester, one of the things that we've done is we've invested in social ceremonies. We've actually moved our team meetings on my analyst team from once every two weeks to weekly. And we have built more time in for socialization, just so we can see how we're doing. I think Microsoft has really made some good information available in how they've managed things like the onboarding process. I think Amanda Silver over there mentioned that a couple of weeks ago, a presentation they did that Microsoft's onboarded over 150,000 people since the start of COVID. If you don't have good remote onboarding processes, that's going to be a disaster. Now, they're not all developers, but if you think about it, everything from how you do the interviewing process, to how you get people their badges, to how they get their equipment. Security is another issue that they called out. Typically, IT security, security of developers machines, ends at the corporate desktop. But now since we're increasingly using our own machines, our own hardware, security organization's going to have to extend their security policies to cover employee devices. And that's caused them to scramble a little bit. So, the examples are out there. It's not a lot of like, we have to do everything completely differently. But it's a lot of subtle changes that have to be made. I'll give you another example. One of the things that we are seeing is that more and more organizations to deal with the challenges around agility with respect to delivering software and embracing low code tools. In fact, we see about 50% of firms are using low code tools right now, we predict it's going to be 75% by the end of next year. So, figuring out how your DevOps processes support an organization that might be using Mendix or OutSystems, or the Power Platform, building the front end of an application, like a track and trace application really, really quickly. But then hooking it up to your back end infrastructure. Does that happen completely outside the DevOps investments that you're making? And the agile processes that you're making? Or do you adapt your organization. Are hybrid teams now, teams that not just have professional developers, but also have business users that are doing some development with a low code tool. Those are the kinds of things that we have to be willing to entertain in order to shift the focus a little bit more toward the agility side, I think. >> A lot of obstacles but also a lot of opportunities for businesses to really learn, pay attention here, pivot and grow and hopefully some good opportunities for the developers and the business folks to just get better at what they're doing and learning to embrace spiritual co-location. Jeffrey, thank you so much for joining us on the program today, very insightful conversation. >> It's my pleasure, it's an important thing. Just remember, if you're going to run that marathon, break it into 26, 10 minute runs, take a walk break in between each, and you'll find that you'll get there. >> Digestible components, wise advice. Jeffrey Hammond, thank you so much for joining. For Jeffrey, I'm Lisa Martin. You're watching Broadcom's DevOps Virtual Forum. (bright upbeat music)

>>Yeah. Hey, welcome back. Friday, Jeffrey here with the Cube, come to you from our Palo Alto studios today, talking about event that we're gonna have in November. It's pretty exciting. And to talk about it and give us a little bit of a preview, we're joined in the segment by Jeffrey Hammond. He's the vice president and principal analyst at Forrester. Jeffrey, great to see you. >>It's good to be here, Jeff. Thanks for having me. >>Absolutely so lot of social media memes about. You know, what's driving your digital transformation is the CEO, the CEO or CO of it, and I think we all know what the answer is. But what's what's happened is, as we've, you know, accelerated digital transformation, and we had the lights light switch moment, everybody working from home. We're now six months, eight months into this, and this is gonna be going on for a while. So specifically in the context of Dev Ops, where such a foundation of that is us getting together every morning in a room and having a quick stand up and talking about what our challenges isn't going out to develop. We have been able to do that for six months, and we're probably not gonna be able to do it for a little while longer. So how is Dev? Ops in 2021? The Age of Covert and even Post Cove? It's gonna be different from what we had say 2019. >>Yeah, Jeff. A couple years ago I wrote a piece called Designing Developer Spaces, and it was all about creating physical spaces for agile teams. Toe work in because as creative teams, they needed to have an environment that supported them. And the idea of remote working was kind of like unaudited e. You know, there was a list up on git hub of companies. It's a or did remote developers. And it was maybe 100 companies long at that point. And, you know, now you know, in in 2020 every company is a remote development company. And so all those investments in physical spaces to support cross functional co located teams aren't something that we're able to take advantage of today, and as a result, it's forcing companies Thio become even more disciplined with respect to the things that they do to help development teams work together. It's enforcing them to to, you know, focus on what I would call spiritual co location, because physical co location is no longer an option. And you can't do that without having and even higher attention toe automation on Dev ops practices that enable it, but also an increased focus on enabling digital collaboration, moving from things like the physical con bond wall that you put index cards on onto tools that help you replicate that sort of capability. But do it in a digital world when you have 100% remote developers, right, >>right, so so just begs a lot of questions. You know? What should people be measuring? How should they be measuring? I mean, we have all kinds of measurement tools, and obviously the devolves process is continuous thing that's happening every day, pushing out new releases every day. How dio the managers kind of rethink about how they're measuring outcomes. I don't wanna say success because it's really outcomes and not activity. >>Yeah, it's a really timely question, Jeff. You know, I've been getting a lot of questions from from large enterprise development shops about Well, how doe I make sure that my employees are still productive now that I can't see them. Should I be measuring individual productivity? You know my answers. You know, I don't think so. You really want to be able Thio? You really want to be able Thio measure the team level, But you may want to allow individuals to begin toe look at their own productivity metrics and benchmarks themselves because they can't see the person next to them in the other desk or have that conversation and know that they're doing a good job. So the way that managers works changes significantly. Andi. That's one of the things that we'll talk about in November, >>right? And I'm just curious. How much stuff can we pull from? Generic leadership is well, because it's the same situation. I love your I love your concept of spiritual alignment that's also got to come not only from the Dev Ops team, but from all the senior leadership now who don't necessarily have the opportunity to reinforce those messages in the hallway or whatever the kind of the normal communication channels that they used before. But this this is well beyond Dev ops, but really, you know, leadership in general, I would say, >>Yeah, it comes down to data collaboration and shared vision. You know, those principles are not unique to software development, but they're extremely important for any type of creative work. And and that's what software development is. So we can learn a lot from from from from the businesses, the whole. But then we need to apply it specifically in the process and context of developing software. And that's where Dev Ops creates the link to enable that happened. >>Yeah, really? An interesting kind of fork in the road, if you will. Dev Ops has been around for 20 some odd years. Fundamental change in the way software respect and built and delivered. But as you said, I mean, even by definition, um, cross functional co located teams simply aren't enabled today and probably won't be for a little while longer. So I think this is probably, ah, lot of information that people are really excited to hear. >>Yeah, especially because we're now out of the sprint phase. We're moving into a marathon. We're gonna have to deal with this for probably at least the next 8 to 12 months. So we've got to start thinking differently for the long term and and and how we keep our employees productive. But we also keep them happy and make sure that they aren't burning out so that they're developing great software. That really matters. >>Yeah, that's great. Well, thanks for the little tease we look forward to getting. Ah, a lot more meat in this topic and diving in in November. So, Jeffrey, Thanks for stopping by and again. His Dev Ops Virtual Form, November 18th, 11 a.m. Eastern 80 and Pacific. Jeffrey, we'll see you there. >>Can't wait. It'll be a lot of, um >>Alright. He's Jeffrey. I'm Jeff. You're watching the Cube, So get ready. Mark your calendars for November. It's the Dev Ops Virtual Forum. Um, November 18 11 a.m. Eastern eight, Pacific Sea There. Thanks for watching.

>>Hey, welcome back Friday, Jeffrey here with the Cube coming to you from our Palo Alto studios today, talking about event that we're gonna have in November. It's pretty exciting. And to talk about it and give us a little bit of a preview, we're joined in the segment by Jeffrey Hammond. He's the vice president and principal analyst at Forrester. Jeffrey, great to see you. >>It's good to be here, Jeff. Thanks for having me. >>Absolutely so lot of social media memes about. You know, what's driving your digital transformation is the CEO, the CEO or CO of it, and I think we all know what the answer is. But what's what's happened is, as we've, you know, accelerated digital transformation, and we had the lights light switch moment, everybody working from home. We're now six months, eight months into this, and this is gonna be going on for a while. So specifically in the context of Dev Ops, where such a foundation of that is us getting together every morning in a room and having a quick stand up and talking about what our challenges isn't going out to develop. We have been able to do that for six months, and we're probably not gonna be able to do it for a little while longer. So how is Dev? Ops in 2021? The Age of Covert and even Post Cove is gonna be different from what we had say, 2019. >>Yeah, Jeff. A couple years ago I wrote a piece called Designing Developer Spaces. And it was all about creating physical spaces for agile teams. Toe work in because as creative teams, they needed to have an environment that supported them. And the idea of remote working was kind of like unaudited e. You know, there was a list up on git hub of of companies that supported remote developers. And it was maybe 100 companies long at that point. And, you know, now you know, in 2020 every company is a remote development company. And so all those investments in physical spaces, too, for cross functional co located teams aren't something that we're able to take advantage of today, and as a result, it's forcing companies Thio become even more disciplined with respect to the things that they do to help development teams work together. It's enforcing them to to, you know, focus on what I would call spiritual co location because physical co location is no longer an option. And you can't do that without having and even higher attention toe automation on Dev ops practices that enable it, but also an increased focus on enabling digital collaboration. Moving from things like the physical con bond wall that you put index cards on onto tools that help you replicate that sort of capability. But do it in a digital world when you have 100% remote developers, right? >>Right, so so just begs a lot of questions. You know? What should people be measuring? How should they be measuring? I mean, we have all kinds of measurement tools, and obviously the devolves process is continuous thing that's happening every day, pushing out new releases every day. How dio the managers kind of rethink about how they're measuring outcomes. I don't wanna say success because it's really outcomes and not activity. >>Yeah, it's a really timely question, Jeff. You know, I've been getting a lot of questions from from large enterprise development shops about Well, how doe I make sure that my employees are still productive now that I can't see them. Should I be measuring individual productivity? You know my answers. You know, I don't think so. You really want to be able Thio? You really want to be able Thio measure the team level, But you may want to allow individuals to begin toe look at their own productivity metrics and benchmarks themselves because they can't see the person next to them in the other desk or have that conversation and know that they're doing a good job. So the way that managers works changes significantly. Andi. That's one of the things that we'll talk about in November, >>right? And I'm just curious. How much stuff can we pull from? Generic leadership is well, because it's the same situation. I love your I love your concept of spiritual alignment that's also got to come not only from the Dev Ops team, but from all the senior leadership now who don't necessarily have the opportunity to reinforce those messages in the hallway or whatever the kind of the normal communication channels that they used before. But this this is well beyond Dev ops, but really, you know, leadership in general, I would say >>Yeah, it comes down to data collaboration and shared vision. You know, those principles were not unique to software development, but they're extremely important for any type of creative work. And and that's what software development is. So we can learn a lot from from from from the businesses, the whole. But then we need to apply it specifically in the process and context of developing software. And that's where Dev Ops creates the link to enable that happen. >>Yeah, really? An interesting kind of fork in the road, if you will. Dev Ops has been around for 20 some odd years. Fundamental change in the way software respect and built and delivered. But as you said, I mean, even by definition, um, cross functional co located teams simply aren't enabled today and probably won't be for a little while longer. So I think this is probably, ah, lot of information that people are really excited to hear. >>Yeah, especially because we're now out of the sprint phase. We're moving into a marathon. We're gonna have to deal with this for probably at least the next 8 to 12 months. So we've got to start thinking differently for the long term and and and how we keep our employees productive, but we also keep them happy and make sure that they aren't burning out so that they're developing great software. That really matters. >>Yeah, that's great. Well, thanks for the little tease we look forward to getting. Ah, a lot more meat in this topic and diving in in November. So, Jeffrey, Thanks for stopping by and again. His Dev Ops Virtual Form, November 18th, 11 a.m. Eastern 80 and Pacific. Jeffrey, we'll see you there. >>Can't wait. It'll be a lot of, um >>Alright. He's Jeffrey. I'm Jeff. You're watching the Cube, so get ready. Mark your calendars for November. It's the Dev Ops Virtual Forum. Um, November 18. 11 a.m. Eastern eight, Pacific Sea There. Thanks for watching. Yeah.

>> Narrator: Live from San Juan, Puerto Rico. It's theCUBE, covering Blockchain Unbound. Brought to you by Blockchain Industries. >> Hello everyone, welcome back to our exclusive coverage of, in Puerto, Rico for Blockchain Unbound. This is the industry conference room. People around the world from Silicon Valley, New York, and around the glove, coming to Puerto, Rico to talk about Blockchain decentralized internet cryptocurrency and really the future of society and global economic value creation of course our continuing coverage is focusing La Sierra for 2018. Our next guest is Mark Jeffery, CEO and Co-Founder of a company called Guardian Circle. Welcome. >> Thank you, thanks for having me. >> So you guys are doing something really interesting, so we, first of all, we like to geek out, as Fred say, "We're alpha-geeks." But we love IoT, cloud computing. You're doing something really interesting right now with Blockchain and this new decentralized internet around something of a critical infrastructure nature. Take a minute to talk about Guardian Circle's product, the coin, token that you're doing, and what it all means. >> So, Guardium is the token, the company's called Guardian Circle. Together they comprise global decentralized emergency response. So, six billion people on earth have no 911, There's just no magic number you can call, right? So hold that in your mind for a second. The other one billion of us, we do have 911, but it's not very good, it hasn't been really updated since the 60's. If you call 911 and if you're lucky enough to not get a busy signal, they have no idea where you are. Your location information is not transmitted. Which Uber can find you more easily than 911. Which is just insane, but that is the way it is. So, nevermind, so throw all that out >> So 911 is broken? 911 is broken. >> Yep If you have it, it's broken, and most people don't have it, so throw the whole thing out the window, let's start over. What would we build today? The way the world should work is whenever you're in trouble, no matter where you are on the globe, all you should have to do is press a button, that button sends an alert up to the Cloud, the Cloud looks down and sees what people and resources are already nearby, and then activates, coordinates, pushes all that help to you as quickly as possible. So, ten people in three minutes. That's what were, that's our-- >> So a couple things going on. So to me when you say, what should we start from scratch, put in my little operating system design network solutions add on, all kind of rolled into one as a stable, fault-tolerant, resilient, robust, always on network. >> Yes. >> Database that is fully interoperable and updated in real time of every number, every location, every persons capability to understand the discovery and resolution of a number. >> Yeah, so >> So that sounds like the internet. That sounds like the internet. >> (laughs) Well that's a little bit, probably further than we're going right now, but yes. Ultimately, you're correct. That would be the ultimate-- >> So no legacy baggage, 1960's Telco. >> No >> We're talking about immobile, in Africa for instance, there's more mobile penetration than anything else. That's what they got. >> Yes. >> So every country is their own sovereign kind of architecture? >> Yes >> Are you guys looking at it from a global perspective or regional? >> Global, so we think that, I mean, this is, this thing should be mobile native, location aware, and the alert should go out to multiple parties. And the phone number is your identifier in this system, but it's effectively an IP based system, really, so you're right. We have to balance that against privacies, so you get to decide who is on your alert grid, right? So you have to emphatically say, yes my friends, family and neighbors, and the subscription services, and if available, these official services. >> So Blockchain can solve the immutability privacy issue? >> Yes. >> The decentralized nature of network effect is a dynamic that people look for in good deals or good architecture. That's in place. >> Yes. >> People have a social graph, interest graphs connections. So the analog world is going digital. I mean, the old days was, is there a doctor in the house? But you were limited by how far you could yell. >> Right. >> So here you're saying literally, if you connect properly, the users in charge are their, their data. >> Yeah. >> They can dictate what they want to connect to, where, is that kind of how it works, is it peer to peer? >> Yeah, it's sort of peer to peer. I mean, a lot of people think, a lot of people mishear me a little bit and think that when you press that button, the alert goes out to everybody that's nearby, right? So total strangers that may or may not be trustworthy are suddenly coming, that's not what I'm saying. That is not what we're doing because we don't want to accidentally summon Jack the Ripper, like that's, you don't want to make a bad situation worse, right? So, you explicitly invite people into your protection grid, we call them guardians, hence, Guardian Circle, that would be your guardian circle. And you can have an unlimited number of them, so six, 6000, however many friends you have. Then we will also feature paid subscription services where you will be able to subscribe to, like, your local EMT collective, or your local license and bonded arms security, or if you're in a remote corner of the world, you could subscribe to the guy with a truck, who could run you down the mountain, right? When you're having medical problems. So it's going to vary depending on where you are in the world. We're also working with the Women's Safety Xprize, we're a partner, we're the backend of that prize. Which is an IoT device contest to make a panic button device, right? So when you push the panic button, what happens? It goes into Guardian Circle. >> So how does token economics fit into this? So I'm getting why it's tokenizable, How does it work mechanically? Do I buy tokens for safety? Is it like, I mean, take us through some of the use cases. >> Yeah sure, so there's five different ways in which we use the token. The first one is, obviously, to create the, to buy emergency response subscriptions. Now we're going to allow you, or provide a way for you to, as a consumer, just swipe your credit card in the app, and in the background you'll be purchase Guardium tokens, right? And it'll re-up every month if you don't have enough in, it'll be that sort of thing. So you might not even really be conscious of the fact that you're using cryptocurrency. If you are, there's a wallet that'll allow you to just use the cryptocurrency manually, the way you do any, any right now, right? >> And. >> So there's that. >> Okay so continue. >> Yep, the second thing we're going to do, we think that giving will be a big behavior in our universe, so you're going to be able to send Guardium directly to a beneficiary in the developing world. And what's cool about that is it doesn't go through a governments, a bank, or an organization. So remember Red Cross in Haiti? Can't happen here, and we're going to go even further than that, down the road, you're going to be able to track every dollar that you donated as easily as a FedEx, right? >> So you are creating a direct relationship between people who might want to help people and then a direct access for resources for the user. >> Correct. >> And so that's the primary, kind of a two >> That's one major flywheel. >> major flywheels going on. >> Just like people sponsor a child, safety is one of the biggest problems in the world. In fact, some people say, this guy named, Greg Hahn, who says it's the number one problem in the world that all other problems flow from the fact that people in the developing world aren't safe. Why don't they have water? Cause they're not safe. Why don't they have education? Cause they're not safe. Lawlessness has to be solved first. >> Trust is a huge part of this too. >> Yeah. >> So how do I set this up, where are you guys in the system, is there a product up and running, how do people get involved with your project? Take a minute to share that. >> Sure, so we have apps released today and they're distributed world-wide on IOS, Android, and Alexa. We also have an open API that lets anyone plug any alert device into our grid, obviously we have to, we want to know who you are first, but basically everyone is welcome. And so, and then our token sales site is at Guardium, Guardium.co. >> G, Guard, ium, Guardium. >> Yes, Guardium. >> And then Guardian Circle? >> Correct. >> Guardium with the m and the end of the token. What's the plan, what are you guys, how much have you raised, what's the story? Yeah, so we're selling ten million dollars worth of tokens, which represents 30% overall, 33% overall. We have a 100 million tokens in the sys, that, that's it, that will ever be distributed. It's on the NEO Blockchain, so we are, we are, we're sort of different from a lot of other folks. We're one of the very first western, we're not the first but we're one of the firsts. >> NEO has a good reputation of high performance. >> Yes >> Is that one of the considerations you had for them? >> Yeah, without a doubt. I mean, we deal in emergencies, so our tolerance for things like CryptoKitty swamping the network is very low. So yeah, so we liked what NEO had to say in a lot of ways because of that. >> I interviewed the CryptoKitties at Polycon, interesting story. It's a Pokemon moment for the internet stare. Well congratulations Mark, what's next for you guys, get through the sale, how's the team makeup look, what's going on with the company? >> Yeah, get through, I mean, definitely get through the sale is the biggest thing right now. We're a small team of, like about five people, plus some contractors. The next big thing that we have on our agenda is we're going out to India in four weeks to actually test the Xprize IoT panic button devices on the streets of Mumbai, so Guardian Circle plus device. >> Intense environment a lot of people there. >> Yeah. >> So let's talk about you. What is your background that got you here, or was there an itch you were scratching? Why this time, also the way to attract a lot of alph entrepreneurs, this is a disruptive time, but why Mark Jeffrey's, why now, why Guradian Circle, what's the passion behind it? >> So, well I started life as an engineer, but I won't bore you with all my adventures up until this moment. But in 2013, I became very interested in Bitcoin, wrote a book called, Bitcoin Explained Simply. Got the book, got the little crazy thoughts in my head. >> You're an author, speaker >> Right, same thing. >> distinguished influencer. (laughs) >> So that was sort of how that side began. In 2014, I basically, my girlfriend at the time had a stroke, she's fine, but at the time she was all alone. And she was on the floor of her garage, and I took her to the hospital, brought her back, and afterwards, I realized, she was alone for about a half an hour, if this had been a real stroke, this could have been very serious, she could have died, she could have been paralyzed. And she was drowning in help, there were about seven people who were either driving by or nearby while this was going on, within a 1000 yards. And she had no way to get to them. >> Yeah, yeah, a personal example of what you're doing. >> And I also realized, the other component was, all the help, I didn't know six, five of the other six people, they're her friends, they're not mine. But during her emergency, all of us need to be sharing location and in communication with each other immediately. And the importance of that just cannot be overstated in emergencies, seconds count. And so putting instant communications so that we can coordinate a response is the second-half of the problem. I initially did not intend to build an app. I went looking for this app and what I discovered was there are a ton of panic button apps, but all of them neglected solving the second-half of the problem, which is organizing the response. >> Yeah. >> And getting people on, in the same-- >> Mobilizing resources. >> Yeah, getting everyone into a war room without requiring them to know each other ahead of time, that was the big thing, no one had thought of that, so. >> It's like rolling up services when you need it instantly. It's like a compiler. >> It's at hawk services. >> You know, compile everything >> Yes, exactly. >> at real time assembly. >> Real time assembly, yeah >> Operating system. (laughs) >> that's exactly, it's great. That's actually a really good way to put it, yeah. >> No, but this is also pretty important, so it was a great personal example, thanks for sharing that personal story. But you know, there's a avalanches, whether you're a skier, it's people who go rock climbing, there's all kinds of use cases where a mountain biker is missing, all kinds of-- >> Remote locations are really big ones. >> I'm scuba diving, where are people, where were they last? So a lot of this is, are location based, and no one knows what the situation is, so the alerting is only one step to the value chain. >> It is, but I think, sorry you have a question. >> No, no, I was going to ask you, where does it go from there? >> Well I think, I think there are a lot of, I think safety check-ins, I think there's other things that we can do, but the one thing that, the one lesson that I've seen again, and again, and again, and again is that the companies that fail invariably, oh, the companies that don't focus always fail. So you got to pick one thing and be the best in the world at that one thing. And the emergency situation is our one thing, and that's big enough. >> Well, I think you have a great opportunity and we'll splint through the, as the evolution of this market grows, it's kind of a moving train, but the value promises is legit. I was talking to Fred Krueger, your friend and colleague in the business, it's a marketplace of these days, so it's money and marketplaces, in your case it's safety, marketplace. I could envision a day with your services where I publish and subscribe to services, I got in a catalog. >> Yes. >> Hey, I know my risks, everyone knows what they do in vanity, or risk factors whether you're jumping out of an airplane, or double black diamond skier. I would love to go to Lake Tahoe, or a mountain, or a place like this, and saying, I'm going to take some chances, here's what I'm going to subscribe to. >> (laughs) You're going to have to subscribe to some extra tokens while you're there. >> I would use Guardium. It could be more, I'm just brainstorming, thinking out loud, but I mean, that's the kind of web services framework you could bring. >> That's exactly right. >> Is that they way you guys are thinking about it? >> I do, I do, I'm so focused on this sort of food and shelter stage of our life right now. >> Yeah, get an ICO done. So yeah, we've got tons of all those ideas written done but we're not quite there yet, but when we get there, great ideas, absolutely. >> Well the use cases are changing because the peoples expectations are changing and now technology can meet these cases. So I'm seeing a lot of social entrepreneurship being done that are coming in through a funding vehicles that never would have got funded on venture capital funding. >> Totally correct. >> Whether it's battered women applications, human trafficking, safety apps, stuff that can make money, not be a kazillion, billion dollar business, but really change society and makeup. >> You've hit the nail on the head. There are a lot of Blockchain companies or ICO companies, this stuff, the venture guys, would never fund it because their model doesn't allow for it. They have, all these things have to be Facebook potentially, or they just have no tolerance for it. >> And the philanthropy world is not incented on economics, and also when the project loses its grant or funding the stack just gets thrown away. >> So this allows for sustainability for mission-based investing and developing. Slowly, I see societal entrepreneurship categorically going to boom from this wave. >> Yeah, totally agree. >> Across the board. >> The world will become a better place, we'll have better companies. >> Mark Jeffery, Guardian Circle, co-founder and CEO. This is theCUBE's exclusive coverage here on the ground in Puerto, Rico for Blockchain Unbound. A lot of great stuff here, a lot of great start-ups, investors, of course theCUBE. 2018 will be covering all the shows. I'm John Furrier, thanks for watching.

>>live from San Francisco, extracting the signal from the noise. It's the cues covering Oracle OpenWorld 2015. Brought to you by Oracle. How your hosts, John Courier and Jeff Rick Wait, >>We are here. Live in Howard's treated oracle. OpenWorld for Silicon Angles, The Cube Exclusive coverage Star flagship program. We go out to the events extract the cinnamon noise. I'm John Kerry, the founder of Silicon, and Brian gracefully lead analyst on all the cloud and all the infrastructure stuff going on here. Next guess is Jeffrey Davis, Principal Gore, Oracle, global leader for Deloitte and Touche. Legend in the industry. I've been covering Oracle for a long time. Good to see you, John Bryan allegedly knew she had to get that in there. Love that. You know you guys are. The service's angle has been something that the service's business is. It's been changing radically. Now more than ever with clouds. I really want to get your take because you are an executive looking at this transformation of cloud. But the Lloyd across all the Oracle customer base, your party with customers. So you're the front lines. I gotta ask you straight up. What is the number one thing customers are looking at right now that you partner with four Cloud to figure it out. Is it a migration? All the above, And what do you think about that? So when customers are evaluating the cloud or our clients are looking at the club, you really focus on three things. One is agility. Thea other one is time and the other one is valued. So how quickly can we adopt to the changing environment? How quickly can we leverage technologies like clouds in order to be able to respond to our customers, to adapt to the changing needs of our employees, to embrace our business strategy in a new and innovative way? So I said legend, you know, talk about the eighties for women on camera. That's important point I want to bring up. Is that Is that the old way? Big growth of client server was around software middleware right year BC around you name it that created huge consultancies like Lloyd, you participated in that create a lot of wealth creation for the customers, create value, right, but their cycles were long in the deal. That'll be about 12 13 years now, months and almost a year or two, there were all these big deployments. Now the cloud is accelerating when you compare and contrast time of then share. And now with the cloud Just how much the deployments change the software, the organizations, How you guys operate a new way to do that job well, and we're all responding to the market, right? While responding to customers needs Cloud didn't come about because of technology in it of itself. But we're really all in this ecosystem responding to our customers must customers a really demanding from us is there demanding agility and speed. As I said before, if you take a look at the way we used to do things, basically you had a a large capital investment on the part of the customers. They went, they bought the software, they bought the hardware, they had to hire the expertise of an advantage, mail the eggs, and you're looking at a transformation for them that could take anywhere from 12 to 24 months or longer before they would get time to value. And, you know, these projects didn't go as planned. No, that's this is Yeah, I know the change orders came in paid more cash on DSO. We all got a really bad reputation because of the high costs in a long time to value and even if value was ever realized in some cases, now we take a look at the environment and what the cloud enables us to do is move in a much faster pace. Way used to have what we call a waterfall approach to design and implementation went into a big room and you talked about the world and I never ran that way. And then you put it into the system and then people never really embraced it, because when it came out, it didn't look like anything they thought they were gonna get. This is completely different with cloud. Now you can take an agile approach. Now you can sit and listen to the customer demands very quickly respond to what they think they need, where they really generate value. And then you can focus on those things and very quickly there, in a design session with you And at the end of the day, >>changed management is much easier because they've been a part of the process and also, you know, looking at 90 days sprints. You're looking at things that are done. You know, in >>six months, six months, time to value that can give you compress a competitive advantage. You know, that could help you retain Maur employees or customers. So it's really some timetable. Met Lavery s V p of the Cloud Gru. Gru Integration was saying they were doing provisioning on in 24 minutes. Multiple deployments like like nobody's business. What has them in the timetable that you're seeing for some of these times of value, horizons means hurdles. These milestones said days, weeks, months, hours, minutes. I mean, when you go to a customer base where their expectations of what you guys deliver, there's some insight there. Some of it depends on the environment. So remember they're still clients. We have local customers that are in a highly regulated industry or have a very complex prisons process. Those are gonna take a longer there is they're gonna take in. Technology is not necessarily on the critical path. But when you look at those other areas that frankly, you don't differentiate yourself very much or speed with a solution concave you a competitive advantage. You know, you're looking at a client expectations of anywhere from 90 days, you know, to six months, you know, manager here, very manager, but aggressive. Visa VI the old way. Well, certainly, And the other piece that we're not really talking about is, you know, it's not enough for us to put the technology out there. It's also got to be used and adopted. You know, when you had those large transformations. It's very hard for an organization to absorb all of that change. Now we're looking at the fine entry point that you could get with clouds with that fine entry point. Now we can sub select areas with greatest impact, but we're not changing the entire organization. >>Mark Hurd has the C I. O. G. On this morning and one of the comments that he made. I've heard this a number of times over the last 12 18 months. He essentially said, I have a ton of undifferentiated applications now. They're things that that Oracle thinks are fantastic. HCM and C. R. M and Air P. But in essence, everybody has those. Every business has those very undifferentiated, but they're complicated. What? You Seymour, you see more people saying you know what take those. Help me migrate those into SAS applications, you know, save costs. Where do you see more saying, You know what? Give me the other 20%. The ones that drive business differentiation, ones that are new cloud native applications. What do you see in your mix? What's pushing your customers >>to push you? You know, it depends on the geography, and it depends on the industry and some other things. If you want to talk about North America, which tends to be one of the largest markets in the world, if not the largest market in the world, when you're looking in North America, really people have gone through a lot of the major ear piece. Remember the earlier conversation? You know, they have suffered through tens of millions, hundreds of millions of dollars, and their boards were not satisfied that they got the results of the expected. Now, when you take a look at what's happening, you know, people are now being much more strategic in their investments, much more prescriptive there. Look how they spent exactly, because now the boards have different expectations. They've already gone and spent all that money on technology. They can't go back to the board. Can't say we need to redo this. What they do are willing to fund is you want to get into a new business. If you want to spin something off, you need to stand it up right away. If a customer you know, provide you a new opportunity, you want to shift to that new opportunity. Really? Well, technology is the basis of a lot of this transformation. So Cloud provides that opportunity and it's modest investment with really quick, high value. It's a great point >>you look at I t In the past decades prior to this evolution, we're seeing the cloud consolidate, consolidate, consolidate, right? I don't know the well again. I just went to the well, apparently running, you know, whatever the model was there. But now they're under a lot of pressure to drive top line revenue. Absolute. Now, the top line revenue equations, a completely different mindset. You have to go out and oh, cut the market. You gotta use a shadow I t or your authorized go out. Do legitimate stand up new platforms are Can you give me an example of that? We're seeing more of that now. A clear Mandate. Cee Io's Go take a New Hill or let's consolidate these apt and reposition for this new use case, which is not. That's experiment, but it's certainly a new market opportunity, and they gotta do their due diligence, so it's almost unparalleled. Due diligence kills your waterfall. That's one doesn't talk about that dynamic. Where examples you give go. Take that new top line revenue driver. So you know that there are customers that are looking at new partnerships in the marketplace, and those new partnerships have dynamic new business models. You know, it's not like opening up another hamburger stand. You know, they're not necessarily expanding into our core business. They're really looking at ways to amplify growth. If you're gonna take that as a strategic position, then you know customer or client of ours would focus on, you know, let's take this innovation the market. We don't want to invest a lot in it, waste a lot of time and lose the competitive advantage. Let's >>get to market first. Let's provide a new product or service to the market where we can move very quickly, and then the >>net result is we can see the benefits right away. And if it isn't way, haven't sunk a lot of time and money and something that's not necessarily gonna have the same values. We just had Shawn Price on. And I'm gonna ask this because it's a lemon that you're in because you're part of the customer right here, the strategic partner of the customer. So that idea top line revenue growth could come from a partner. When I see How do you work in that? Quick, You're cool to work with my Aunt VI's. Bring that into the table. You're absolutely so this market is changing. You know, Cloud clearly changes everything and much more so than some of the things we've seen in the past. And so now we need to position ourselves differently now for the Deloitte Business Model way. We're really in a specialized business of focusing highly on value and value creation. We weren't necessarily in other areas and we have different partnerships now. Those partnerships are shifting. Oracle provides us a complete platform. You know, we don't >>have to really get involved in a lot of the aspects of the platform that, frankly, we're in our core competency and frankly, weren't our clients what >>you talked about that customer interaction? What do you have to do to change what we've seen? Different size, trying different approaches? We've seen some that are partnering with cloud Provider, but they want to be their own flat for acquiring them. What changes in terms of the skills you have to hire the way you expect that interaction toe happen between you and customer. Because to a certain extent, like for developers, developers love self service. They do. You know, they they are shadow I because they're driving What changes in your world for that? >>So this is really kind of an interesting question. Very early on, when Oracle made cloud product available >>in HCM, we saw an opportunity. Our clients had the demand because they wanted to create a more sticky environment from customers. What better >>way than providing them better products in the HCM space? We made major investments there. Now we're a leader in HCM, and if I look back over that experience, what do we do differently? First of all, we had to change our mindset. You know, it's not enough just to say the cloud, but you gotta live the cloud because it truly is more agile. It truly is faster. You can take your old methods and tools and approaches all the things that worked for you before. A lot of them don't work anymore. There's some but some really good winds here, especially in the change management side. Also, you know, we'd have clients that had to kind of do it yourself brain surgery that have to order their own hardware that have provisional themselves. You know, that became a real mess. Now we're looking at something that's a lot different. We're not in that business anymore. You know, we do support on Prem where our clients think it's important and strategic course. But now we've got a new, agile methodology. Now we've trained our workforce. We've got 14,500 professionals around the world. We've had to move that group, and Oracle really helped us do that. They've been very collaborative in sharing I p and sharing methods and tools with us so we can make that adjustment. Not only have we had to change that when you think about our other methodologies, all of our other methodology to create value to change management, they were all thoroughly integrated. We've had to rethink those, but it's been a great story because we could go to the client. We can say we can get you there faster because where technology was a barrier world, >>it was on the critical path. We're now changing that. And by the way, this technology is not your old technology. It's much better. It's much more robust. How >>do you you know, obviously we're here It at an oracle OpenWorld. It could be called Oracle Cloud >>World if we really wanted to. I mean, >>it's a lot of it is the red stack. A lot of it is one cloud. How do you manage that against customers saying, Well, look, there's other options as well. I wanna have the ability to leverage this cloud for something. Oracles cloud for certain things. How do you do? You find your customers want multiple clouds or one cloud is good enough? >>Well, we're all teaching right? We're all teaching the world about God because you know there's still people that look at it in a variety of different ways. I think it's an excellent question, so let's think about this. >>Do you want to be your own systems integrator for your smartphone. You want to go by an operating system? Do you want to go buy a separate peace of heart? Where do you >>want to decide what APS fit? What don't. And do you want to actually try to get those abs together? I don't think we want to do that anymore. And I try to use that as an example for my clients. Tell them. Look, let's not be your own systems integrator. You is a iittie executive. You could be an officer toe, help the organization get to their business goals. You know, you're not in another yourself a business objective, but you could be an agent for change. I try to educate them so they can help their colleagues explain cloud, take the fear out and then show the art of the possible. What about the security model? I mean, I wouldn't get your take on you little bit biased because your manager Oracle really? But what would be global, critical or complementary events? How you feel about it? But the intense security message is really a game changer in my mind. Follows on incredible theory. Incredible application. Certainly the product's gonna be ready soon. If it works, it's like a car that does the key turnover. It's like it's all good on paper. Certainly a game changer. Security outside number One thing you're hearing Get some color to that because, you know, if that plays out, if you believe that end N security on the chips and software Silicon plays out the way they say it would, that's gonna change the game. For sure. It is. So none of us and you can go through a week without hearing about a major security breach. When you think about this, you step back and think about the potential here. Our stuff is starting to talkto our stuff. But our stuff isn't unless it's based on. Oracle isn't all thoroughly integrated, so somebody can break into our stuff and they can get access to our lives and they can change our lives. That's hugely powerful. So we are very concerned about security, and Lloyd is one of the largest organizations. In fact, we have a cyber practice that looks at both Proactiv reactive aspects of security. Here's the big concern we have as all this stuff starts, get interconnected. The Internet of things, security becomes a major issue. We need more breakthroughs and security. And I think oracles on the vanguard certainly as we get into what we call a hyper hybrid cloud on Prem on Cloud. Some of that's gonna be a great emotion is no. Perimeter is nothing either. Protect is the Wild West total while and, you know, despite what you believe, boards and people are not reacting fast enough to security threats. And that's why you're seeing these breaches into my knowledge. I don't think anybody has been breached with Orgel security in place. But that said, you have to be really, But still, they probably would get out. There's not that they're hiding it, but the point is, you need to be united engine system. It's hard to do that in a open source world, right? So you have a horizontally scaled open source phenomenon, and it's growing our market and a vertically integrated product requirement. You believe I want Indian security, then you gonna go vertically integrated. You do purpose built. But if you want scale a 1,000,000,000 large scale a k a cloud, you want horizontally scalable. How do you reconcile that with your customers? Well, you know so again. It's difficult for them because unless you've had a security threat, it's very difficult to really get them to take the initiative. You know, the more that we can build security in, the more that it's covered in the Red Sea. More that we get a comprehensive end to end product. I think it allows us to help the client realize you know the risk and help them. The old Fowler said. In The Cube they had they had this done in 2005. Finally took a bunch of security breaches to get people's attention to your point. It's on everyone's agenda. Number one right it is. And yet you know how much is enough? Well, we find the people are too reactive and not not proactive enough. >>What's the What's the temperature of your customers right now? I mean, you know, Tesla's out, they're disrupting Uber's out. Their Airbnb are they? Are they sort of defensive and paranoid? You know that Andy Grove, always trying to be aggressive with a saying No, no, no, no. I'm not letting these little guys into my market. I'm gonna go be aggressive and try and push back what a general feeling. There's a lot of interesting startup disruption going on really changing industry. >>There is, and you know, there's so many sort of partnerships and alliances, mergers and new innovations. You know, right now, clients are very uncomfortable. Just the transition from on Prem to Cloud is a major change in our clients have been the expert for technology for decades for their organization. They are having trouble keeping up with all of it. It can be disruptive. They're looking at what's unique in their industry. You know what is regulation driving? You know what is innovation driving in their industry? But, you know, they're always on the learning curve. They're always trying to figure out if we want to get your final thought wrapping up here to get your take for the folks that are watching here on camera that couldn't make it here were beloved world. What is this show about it? We've been here six years. You've seen that transformation. About four years ago, Larry looked like a deer in the headlights, almost stuck in his tracks and smoke coming out of his ears like he felt that the scene felt like a pivotal moment couple years ago. And then since then, just been every year. Oracle just gets more and more energy, just like dominated that march of the crowd. Almost like four years ago. Like we're gonna win that. What's your vibe? You see that same thing here and shared some color on the take is over the years, and we've been doing this a lot in various forms Over the years. There's been the promise of riel innovation. There's been the promise, real change in the industry. We saw sort of incremental change. We really see increments. Exponential change now and now. The promises fulfilled. We have real product. We're taking the market. We're doing interesting product, right? Israel product. It's very riel, and we have work to be done. But yeah, really studies and customers? Well, it's an evolution. But this is really sort of an epiphany at the moment, because we've never had, >>you know, full sweets of product in the marketplace. Not right now. I don't know that there are any other large you know. Air Pia options in the clouds away there is for Oracle and look at the host of service is that have been announced over the last year. >>This this particular show for us, you know, really isn't accelerating. All these products and service is in the cloud that are now available. They give us a lot of different options that we never had. A great quote. Put that on a cube. Jim. Thanks for joining Us. Way are here live in San Francisco's Howard Street for the Cube Special. Exclusive coverage of Oracle OpenWorld Q. Be right back with more of this short break. Thanks for watching.

(upbeat music) >> Every company needs great salespeople, it's one of the most lucrative professions out there. And there's plenty of wisdom and knowledge that's been gathered over the years about selling. We've heard it all, famous quotes from the greatest salespeople of our time, like Zig Ziglar and Jeffrey Gitomer, and Dale Carnegie and Jack Welch, and many others. Things like, "Each of us has only 24 hours in a day, "it's all about how we use our time." And, "You don't have to be great to start, "but you have to start to be great." And then I love this one, "People hate to be sold, but they love to buy." "There are no traffic jams on the extra mile, "make change before you have to." And the all time classic, "Put that coffee down. "Coffee is for closers." Thousands of pieces of sales advice are readily available in books, videos, on blogs and in podcasts, and many of these are free of charge. So why would entrepreneurs start a company to train salespeople? And how is it that sharp investors are pouring millions of dollars into this space? Hello everyone, and welcome to this Cube Video Exclusive, my name is Dave Vellante, and today we welcome Paul Fifield who's the co-founder and CEO of Sales Impact Academy who's going to answer these questions and share some exciting news on the startups. Paul, welcome to "The Cube" good to see you again. >> Yeah, good to see you again, Dave, great to be here. >> Hey, so before we get into the hard news, tell us a little bit about the Sales Impact Academy, why'd you start the company, maybe some of the fundamentals of this market, your total available market, who you're targeting, you know, what's the premise behind the company? >> Yeah sure. So I mean, I started the company, it was actually pretty organic in the way it began. I had a 10 year career as a CRO and it was, you know, had a couple of great hits with two companies, but it was a real struggle to basically, you know, operate as a CRO and learn your craft at the same time. And so when I left my last company, I kind of got out there, I wanted to kind of give back a little bit and I started doing some voluntary teaching in and around London, and I actually, one of the companies I started was in New York so I got schooled very much on a sort of US approach to how you build a modern you know, go to market and sales operation. Started going out there, doing some teaching, realized that so many people just didn't have a clue about how to build a scalable and predictable revenue function, and I kind of felt sorry for them. So I literally started doing some, you know, online classes myself, got my co-founder Alex to put curriculum together as well and we literally started just doing online classes, very live, very organic, just a Google Drive and some decks, and it really just blew up from there. >> That's amazing. I mean, so you've my, you know, tongue and cheek up front, but people might wonder, why do you need a platform 'cause there's so much free information out there? Is it to organize, is it a discipline thing? Explain that. >> Well, I think the way I sort of see this is that is that the lack of structured learning and education is actually one of the greatest educational travesties, I think, of the last 50 years, okay. Now sales and go to market is a huge global profession, right? Half the world's companies are B2B, so roughly that's a proxy for half the world's GDP, right? Which is $40 trillion of GDP. Now that 40 trillion rests on kind of the success of the growth and the sales functions of all those companies. Yet in its infinite wisdom, the global education system literally just ignored sales and go to market as a profession. Some universities are kind of catching up, but it's really too little too late. So what I sort of say to people, you imagine this Dave, right. You imagine if the way that law worked as a profession let's say, is that there's no law school, there's no law training, there's no even in work professional continuous professional development in law. The way that it works is you leave university, join a company, start practicing law and just use like YouTube just to maybe like, you know, where you're struggling, just use YouTube to like work out what's going on. The legal profession would be in absolute chaos. And that's what's happened in the sales and go to market profession, okay. What this profession desperately desperately needs is structured learning, good pedagogy, good well designed course and curriculum. And here's the other thing, right? Is the sort of paradox of infinite information is that just because all the information is out there, right, doesn't mean it's actually a good learning experience. Like, where do you find it? What's good? What's not good? And also the other thing I'd point out is that there is this kind of myth that all the information is out there on the internet. But actually what we do, and we'll come into it in a second is, the people teaching on our platform are the elite people from the industry. They haven't got time to do blog posts and just explain to people how they operate. They're going from company to company working at like, you know, working at these kind of elite companies. And they're the people that teach, and that information is not readily available and freely out there on the internet. >> Yeah, real opportunity, you made some great points there. I think business schools are finally starting to teach a little bit about public speaking and presenting, but nobody's teaching us how to sell. As Earl Nightingale says, "To some degree we're all salespeople, "selling our family on living the good life" or whatever. What movie we want to see tonight. But okay, let's get to the hard news. You got fresh funding of 22 million, tell us about that, congratulations. You know, the investors, what else can you share with us? >> Sure. Well, I mean, obviously, you know, immensely proud. We started from very sort of humble beginnings, as I said, we've now scaled very rapidly, we're a subscription business, we're a SaaS business. We'll come onto some of the growth metrics shortly, but just in a couple of years, you know, the last year which ended January, we grew 500% from year one, we're now well over 125 people, and I'm very, very, very honored, flattered, humbled that MIT, obviously one of those prestigious universities in the world, has taken a direct investment by their endowment fund, HubSpot Ventures. Another Boston great has also taken a direct investment as well. They actually began as a customer and loved what we were doing so much that they then decided to make an investment. Stage 2 Capital who invested in our seed round pretty much tripled down, played a huge role in helping us assemble MIT and HubSpot ventures as investors, and they continue to be an incredible VC giving us amazing, amazing support that their LP network of go to market leaders is second to none. And then Emerge Education, who is our pre-seed investor, they're actually based in London, also joined this round as well. >> Great, well actually, let's jump ahead. Let's talk about the metrics. I mean, if Stage Two is involved, they're hardcore. What can you share with us about, you know, everybody's chasing AR and NR and the like, what can you share with us? >> They are both pretty important. Well, I think from a headcount perspective, so as I mentioned our fiscal ends at the end of January, each year. We've gone from 25 to over 125 employees in that time. We've gone from 82 to 260 customers also in that time. And customers now include HubSpot, Gong, Klaviyo, GitHub, GT, Six Cents, so some really sort of major SaaS companies in the space. Our revenue's grown significantly with 5X. So 500% increase in revenue year over year, which is pretty fast, very proud of that. Our learning community has gone from over 3000 people to almost 15,000 professionals, and that makes us comfortably, the largest go to market learning community in the world. >> How did you decide when to scale? What were the sort of signals that said to you, "Okay, we're ready, "we have product market fit, "we can now scale the go to market." What were the signals there, Paul? >> Yeah. Well, I mean, I think for a very small team to achieve that level of growth in customers, to be kind of honest with you, like it's the pull that we're getting from the market. And I think the thing that has surprised me the most, perhaps in the last 12 months, is the pull we're getting from the enterprise. We're you know, I can't really announce, we've actually got a huge pilot with one of the largest companies actually in the world which is going fantastically well, our pipeline for enterprise customers is absolutely huge. But as you can imagine, if you've got distributed teams all over the world, we're living and working in this kind of hybrid world, how on earth do you kind of upscale all those people, right, that are, like I say, that are so distributed. It's impossible. Like in work, in the office delivery of training is pretty much dead, right? And so we sort of fill this really big pain, we solved this really, really big pain of how to effectively upskill people through this kind of live curriculum and this live teaching approach that we have. So I think for me, it's the pull that we're getting from the market really meant that you know, we have to double down. There is such a massive TAM, it is absolutely ridiculous. I mean, I think there are 20 million people just in sales and go to market in tech alone, right. And I mentioned to you earlier, half the world's companies effectively, you know, are B2B and therefore represent, you know, at its largest scope, our TAM. >> Excellent, thank you for that. Tell us more about the product and the platform. How's it work if I'm a customer, what type of investment do I have to make both financially? And what's my time commitment? How do you structure that? >> So the model is basically on a seat model. So roughly speaking, every seat's about a thousand dollars per year per rep. The lift is light. So we've got a very low onboarding, it's not a highly complex technical product, right? We've got a vast curriculum of learning that covers learning for, you know, SDRs, and the AEs, and CS reps, and leadership management training. We're developing curriculum for technical pre-sales, we're developing curriculum for revenue operations. And so it's very, very simple. We basically, it's a seat model, people literally just send us the seats and the details, we get people up and running in the platform, they start then enrolling and we have a customer success team that then plots out learning journeys and learning pathways for all of our customers. And actually what's starting to happen now, which is very, very exciting is that, you know, we're actually a key part of people's career development pathway. So to go from you know, SDR1 let's say to SDR2, you have to complete these three courses with Sales Impact Academy, and let's say, get 75% in your exam and it becomes a very powerful and simple way of developing career pathway. >> Yeah, so really detailed curriculum. So I was going to say, do I as a sales professional, do I pick and choose the things that are most relevant for me? Or are people actually going through a journey in career progression, or maybe both? >> Yeah, it's a mixture of both. We tend to see now, we're sort of starting to standardize, but really we're developing enough curriculum that over, let's say a 15 year period, you could start with us as an SDR and then end as a chief revenue officer, you know, running the entire function. This is the other thing about the crazy world of go to market. Very often, people are put into roles and it's sink or swim. There's no real learning that happens, there's no real development that happens before people take these big steps. And what this platform does so beautifully is is it equips people with the right skills and knowledge before they take that next step in their profession and in their career. And it just dramatically improves their chances of succeeding. >> Who are the trainers? Who's leading the classes, how do you find these guys, how do you structure? What are the content, you know, vectors, where's all that come from? >> Yeah. So the sort of secret source of what we do, beyond just the live instruction, beyond the significant amount of peer to peer learning that goes on, is that we go and source the absolute most elite people in go to market to teach, okay. Now I mentioned to you before, you've got these people that are going from like job to job at the very like the sort of peak of their careers, working for these incredible companies, it's that knowledge that we want to get access to, right. And so Stage 2 Capital is an incredible resource. The interesting thing about Stage 2 Capital as you know Dave, you know, run by Mark Roberge, who was on when we spoke last year and also Jay Po is all the LPs of Stage 2 Capital represent 3 to 400 of the most elite go to market professionals in the world. So, you know, about seven or eight of those are now on an advisory board. And so we have access to this incredible pool of talent. And so we know by consulting these amazing people who are the best people in certain aspects of go to market. We reach out to them and very often they're at a stage in their career where they're really kind of willing to give back, of course there are commercials around it as well, and there's lots of other benefits that we provide our teachers and our faculty, and what we call our coaches. But yeah, we source the very, very best people in the world to teach. >> Now, how does it work as a user of your service? Is it all on demand? Do you do live content or a combination? >> Yeah look, one of the big differentiators is this is a live delivery of learning, okay. Most learning online is typically done on demand, self-directed, and there's a ton of research. There's a great blog post on Andrew's recent site. A short time ago, which is talking about how the completion rates of on demand learning are somewhere between 3 and 6%. That is like, that's awful. >> Terrible. >> I was like why bother? However, we're seeing through that live instruction. So we teach two, one hour classes a week, that's it. We're upskilling very busy people, they're stressed, they've got targets. We have to be very, very cognizant of that. So we teach two, one hour classes a week. Typically, you know, Monday and a Wednesday, or a Tuesday and a Thursday. And that pace of learning is about right, it's kind of how humans learn as well. You know, short bursts of information, and then put that learning and those skills that you've acquired in class literally to work minutes after the class finishes. And so through that, and it sits in your calendar like a meeting, it doesn't feel overwhelming, you're learning together as a team as well. And all that combined, we see completion rates often in excess of 80% for our courses. >> Okay, so they block that time out- >> In the calendar, yeah. >> And they make an investment. Go ahead, please. >> Yeah yeah, exactly, sorry Dave. Yeah, yeah, exactly. So like, you know, we have course lengths. So one of our shorter courses are like four hours long over two weeks. And again, it's just literally in the calendar. We also teach what we call The Magic Learning Hour. And the magic learning hour is this one specific hour in the day that enables teams all over the western hemisphere to join the same class. And that magic learning hour is eight o'clock Pacific 11 o'clock Eastern, >> 4: 00 PM over in the UK, and 5:00 PM in the rest of Europe. And that one time in the day means that these enterprises have got teams all over the western hemisphere joining that class, learning together as a team, plus it's in the calendar and it's that approach is why we're seeing such high engagement and completion. >> That's very cool, the time zone thing. Now who's the target buyer? Are you selling only to sales teams? Can I as an individual purchase your service? >> Yeah, that's a good question. Currently it's a very much like a B2B motion. As I mentioned earlier on, we're getting an enormous pull from the enterprise, which is very exciting. You know, we have an enterprise segment, we have sort of more of a startup earlier stage segment, and then we have a mid-market segment that we call our sort of strategic, and that's typically and most of like venture backed, fast growth tech companies. So very much at the moment a B2B motion. We're launching our own technology platform in the early summer, and then later on this year we're going to be adding what's called PLG or a product led growth, so individuals can actually sign up to SIA. >> Yeah, I mean, I think you said $1,000 per year per rep, is that right? I mean, that's- >> Yeah. >> That's a small investment for an individual that wants to be part of, you know, this community and grow his or her career. So that's the growth plan? You go down market I would imagine, you talked about the western hemisphere, there's international opportunities maybe, local language. What's the growth plan? >> Yeah, I mean look, we've identified the magic learning hour for the middle east and APAC, which is eight o'clock in the morning in Istanbul, right. Is 5:00 PM in Auckland, it's quite fun trying to work out like what this optimum magic learning hour is. What's incredible is we teach in that time and that opens up the whole of the middle east and the whole of APAC, right, right down to Australia. And so once we're teaching the curriculum in those two slots, that means literally you can have teams in any country in the world, I think apart from Hawaii, you can actually access our live learning products in work time and that's incredibly powerful. So we have so many like axis of growth, we've got single users as I mentioned, but really Dave that's single users we'll be winning from the enterprise and that will represent pipeline that we could then potentially convert as well. And look, you make a very good point. You know, we've seen students are now leaving university with over $100,000 dollars in debt. We've got a massive, massive debt problem here in the US with student debt. You could absolutely sign up to our platform at let's say a hundred bucks a month, right. And probably within six months, gain enough knowledge and skill to walk into a $60,000 a year based salary job as an SDR, that's a huge entry level salary. And you could do that without even going to university. So there could be a time here where we become a really viable alternative to actually even going to university. >> I love it. The cost education going through the roof, it's out of reach for so many people. Paul, congratulations on the progress, the fresh funding. Great to have you back in "The Cube." We'd love to have you back and follow your ascendancy. I think great things ahead for you guys. >> Thank you very much, Dave. >> All right, and thank you for watching. This is Dave Vellante for "The Cube, we'll see you next time. (upbeat music)

>>Hey, welcome back everyone to the cubes coverage of Avis reinvent 2021 here in Las Vegas. Um, John, for your host, the Q with my coach, Dave Nicholson cloud analyst here with SiliconANGLE in the queue. We've got a great guest Rez, the honor, man, SVP cloud hyperscalers transformation TD. Synnex welcome to the cube. Thanks for coming on resident. Hey, >>Good morning. Good >>Morning to you guys. You guys just had this big acquisition with billions and billions of dollars in revenue. Take us through, what are you guys do for set the table for the, for the company? Right. >>Okay. Yeah, it is a pretty big one. Uh, we're now foot number 60 on the fortune 100, um, worldwide revenues around just under $60 billion. Uh, we represent somewhere in the region of, uh, 1500 vendors and OEMs and uh, in over a hundred countries. And, uh, we serve over a hundred thousand parts, 150,000 partners now worldwide. So you got everything from the, uh, end points, style products, uh, all the way up to, uh, data center cloud, serving from the retail to SMB, to VARs going go all the way to enterprise specialists, NSIs. So DD >>And X, big company, you won't global reach. You hit everybody. Basically you T you sell a lot of products, software, hardware, you name it. Cloud is here. What is the big trend that you guys are seeing with cloud? Because you you're innate. You're, you're talking to all the customers, you have a lot of services and you have products. You represent a lot of different brands. How are people rolling them together? Are they composing cloud what's? What are you seeing in the global landscape? >>Um, we specialize in cloud. They've been doing that for a number of years and actually depending on where partners are within the journey, uh, they will have different levels of specialization. And, um, the way we like to look at it is a matrix, um, in terms of where is the complexity of the product that they're trying to take to market, um, versus what is the size and their own maturity. So we, uh, tune our services and our support for those partners to help them better understand and onboard all of that technology and address it towards their partners. Um, so if you can imagine, um, you got many, many announcements that were made here, right? And our partners have to consume all of that information, all of that technology and learn how to use it. And that's where we come in. We, we, we effectively act as the bridge to help them get up there, running and lower the barrier of entry for them to execute >>On those products and they want to add services to it all. Good. Cloud's perfect for that. So what's the relationship with AWS? I'm sure they're obviously enabling a lot of value. What is the relationship with AWS partner network? How do you guys, what are you guys enabled? What are you guys enabled with Amazon? >>So, um, if I give you the, uh, picture of our cloud practice builder, that's a good place to start. Our cloud practice builder program starts with, um, looking at the partner, understanding what is their maturity in that path specifically related to the technologies that they want to work on with AWS. And, um, we look at them in terms of have they got the sales capability, have they got the operational capability, the financial setup, and, um, really helped them then on that journey. So, um, so yeah, we, um, can go very, very deep, uh, where we have our own cohorts who help those partners get up to speed with, >>Do a little, you gotta do a little vetting, you gotta make sure people have the right capabilities. And certain people have certain orientation to certain things, maybe levels of certification. Yep. Is there a swim lanes developing in the partner network that you guys are working with? Big trends, they specializing more in application modernization. Is it more infrastructure or what are you guys seeing in terms of the trends? >>There are multiple, uh, uh trend-setter. So as you say, we have one lane specifically for our ifs. Um, one lane for our, um, uh, people who host with infrastructure. We are, um, you know, obviously data centers, one of our biggest focus areas. Um, and, um, so each of our partners goes into a specific lane specifically related to where they want to focus on. So if you consider for instance, um, somewhere in the area of, uh, ISV ISBNs, um, the primary thing that many of the ISV is out there don't have is the ability to understand all of the AWS programs. So we help them understand that, understand how they can get the most optimal, uh, cost and program with AWS. And then you get into, you get into the next level, which is around, um, uh, their cloud operations, how they actually transact with us. Uh, and you can, you can build a stack, you get into security and then you get a well architected frameworks. So this is just one of the swim lanes that you could effectively go, and we can help, help build them, build that out for them. >>Yeah. So, so Raza draw a little map for me, a sort of a mental map from the perspective of an end user customer say, I'm a very large organization, I've got a large it footprint. I'm looking towards modernizing in the future. How am I engaging with what TD Synnex is actually delivering to the market? We've been talking about partners. So give us a hypothetical again, I'm the customer who is, who's the sales rep. Who's calling on me initially, how am I interacting with you versus the partner? And I know that there are a variety of ways, but give me, give us an example. I want to make sure that people watching this understand cause we use the term partner to me in a whole variety of different things. >>Yeah. Very, very good question. Cause, uh, he is index is one of the biggest companies that the vast majority of the consumers out there have inherited, right? Yeah. We are for number 600 fortune 100. Now most organization deal with a local. It trusted it partner that trusted it partner, um, then is who they would go to, whether it is their infrastructure, whether there is there, uh, um, security that we work with that partner, um, to help them manage it. Now, what we do is really support the partner to have the knowledge they need to have the expertise. They need to have the services that they need to have the solutions that they need to have to deploy those technologies. Um, with that customer. Now, in majority of the cases, the customer will never come in contact with us because we are behind the scenes supporting our partners. >>However, increasingly we are seeing three motions that we work with. One is with our partners, we do sell to right partner, knows what they want. They've worked with the customer, they've established a need. Um, they come to us and we help them deliver that technology. We do a cell width. So this is the part where you're talking about more of the newer technologies, where the partner may be lacking some of that expertise. So this is where are our experts and give you an idea. We have over 300 certifications just in the last year with AWS, um, where our experts would then help the partner actually land that technology with the customer. And then the ultimate level is a sell for you're talking about longer sales cycles, very complex, where they really need to get deep. So we have our own, um, experience centers, uh, customer immersion, uh, uh, programs where the customer actually comes to us with a partner where we then help them actually get through that process. >>So you're a multi-tiered distribution system. You provide service layer to the frontline partners before the end-users provide support and it software technology and, and executive services for them to serve their customer because they're probably not staffed up. They don't have the resources, they have a good business model and they want to make a lot of money. They >>Do, they do. And, um, they have good gross >>Profit margins. >>I hope so. I hope we, we, we help them actually deliver better profit margins and as they move to services and recurring revenues with cloud that becomes more predictable and sustainable for them as well. >>Well, just, I was kidding, but I'm, I'm serious. I want to get into this gross margin because think one of the things that you're bringing up with this question is if I'm a re a partner and I'm talking to an end-user, I might, I want to make a lot of profits. So services are naturally important. I make more gross profit on services. So if you have volume discounts on things that I might not have that volume discount, if I'm going direct to the manufacturer or a platform you provide that, is that right? Like getting that right, that you guys get, provide that discount pass through. >>We do. Um, we laid up, yes, we get a lot of support through their programs. They announced many programs this week, for instance, and as the partner gains more specializations and they gain access to more support through us, they also gain access to some preferred, um, uh, pricing. So to an extent it's about volume. It's also about how deep they go, how, how, how much they invest in their own expertise. So really is a, uh, not just a volume game, but it's a quality game as well. >>Operational value that you provide because you guys must have a lot of programs that pass through to the partner, uh, software systems. What kind of examples can you give if I'm the partner and I have an end-user and I have a boutique, let's just say I specialize in data analytics and whatever unique thing you're providing me services. Is there like certain software systems that you guys have? What operational support do you give to your customers? >>So in terms of the, um, technology that the consumer consumes, um, there is a whole range of technologies around data management and data analytics. Um, then if you're talking about, in terms of the support, operational support that we give to the partner, again, there's the bigger the partner, the more transactions, the more volume they do, they need to have that operational optimization as well. Again, that's where we come in and give them the tools and the technologies. They need to optimize that. >>It's going to ask you the re-invent now that we're in person again, been a year and two years since we've been to reinvent. What's the, what, what are you, what's your assessment of the show this year? What's the big takeaway, um, that you see this year, uh, that that's gonna be relevant for you? >>I, I love the way these guys, um, land some incredibly new technologies. Uh, and I love the theme of Pathfinders from yesterday. Um, so when I look at the, uh, 5g, I mean, that sounds like a game changer to me. And I think there should be a lot of partners out there thinking, hold on a minute, this is a massive opportunity for us. Um, yeah, I mean, so >>The serverless stuff is getting better and better. I mean, like >>It's, they do a good job on their announcements. There is a reason why their technologies so highly rated, uh, these guys know how to do technology. >>And I think if, if I'm, uh, I think of the services that you could roll on top of this, I mean, if you're in front of a customer big, medium or large, I mean, if I'm a developer, a service provider, I can make so much more profit by building more of these services because that pathfind opens up these net new things, 5g AI as a service, kind of the anything. >>Yeah. Um, I mean partners with they, they have their business models. They, the ones who have figured out how to wrap the services around the solutions that are out there. Um, typically we find that they are the most successful with the fastest growth rates and they kind of get themselves into very, uh, positive virtual cycle. Um, the more they can wrap around those services, the higher their value, the more margin they tend to make, the more profitable they are. And actually then they continue to invest and expand their footprint. So >>Quick advice pretend that I am about to become essentially a local trusted value added reseller partner for my end user customers. And I'm going to become a partner of your company. What would your counsel be to me about what I should focus, focus on? What's hot. What's the hottest tip of the spear right now. Yes, right now I need to go out and hire these people, >>Data, data, data, and analytics data. I would absolutely zoom in on that. Um, it is the new oil and every organization needs to have insights. And if businesses out there do not have those insights, they are at a disadvantage partners who can figure out how to build services around data. They're the guys who are really winning. >>Awesome. Great insight. Thanks for coming on the cube here at re-invent great conversation with gradients. I thanks for coming on. Appreciate it. Pleasure. Okay. Cube covers. You're watching the cube, the leader in worldwide tech coverage here in Raven. I'm Jeffrey with Dave Nicholson, host of the cube. Thanks for watching. We'll be right back.

>>Hey, welcome back everyone. We're live here in the cube in Las Vegas Raiders reinvent 2021. I'm Jeffrey hosted the key we're in person this year. It's a hybrid event online. Great action. Going on. I'm rolling. Vice-president of ADF analytics. David is great to see you. Thanks for coming on. >>It's great to be here, John. Thanks for having me again. >>Um, so you've got a really awesome job. You've got serverless, you've got analytics. You're in the middle of all the action for AWS. What's the big news. What are you guys announcing? What's going on? >>Yeah, well, it's been an awesome reinvent for us. Uh, we've had a number of several us analytics launches. So red shift, our petabyte scale data warehouse, EMR for open source analytics. Uh, and then we've also had, uh, managed streaming for Kafka go serverless and then on demand for Kinesis. And then a couple of other big ones. We've got RO and cell based security for AWS lake formation. So you can get really fine grain controls over your data lakes and then asset transactions. You can actually have a inserts, updates and deletes on data lakes, which is a big step forward. >>Uh, so Swami on stage and the keynote he's actually finishing up now. But even last night I saw him in the hallway. We were talking about as much as about AI. Of course, he's got the AI title, but AI is the outcome. It's the application of all the data and this and a new architecture. He said on stage just now like, Hey, it's not about the old databases from the nineties, right? There's multiple data stores now available. And there's the unification is the big trend. And he said something interesting. Governance can be an advantage, not an inhibitor. This is kind of this new horizontally scalable, um, kind of idea that enables the vertical specialization around machine learning to be effective. It's not a new architecture, but it's now becoming more popular. People are realizing it. It's sort of share your thoughts on this whole not shift, but the acceleration of horizontally scalable and vertically integrated. Yeah, >>No, I think the way Swami put it is exactly right. What you want is the right tool for the right job. And you want to be able to deliver that to customers. So you're not compromising on performance or functionality of scale, but then you wanted all of these to be interconnected. So they're, well-integrated, you can stay in your favorite interface and take advantage of other technologies. So you can have things like Redshift integrated with Sage makers, you get analytics and machine learning. And then in Swami's absolutely right. Governance is actually an enabler of velocity. Once you've got the right guardrails in place, you can actually set people free because they can innovate. You don't have to be in the way, but you know that your data is protected. It's being used in the way that you expect by the people that you are allowing to use that data. And so it becomes a very powerful way for customers to set data free. And then, because things are elastic and serverless, uh, you can really just match capacity with demand. And so as you see spikes in usage, the system can scale out as those dwindle, they can scale back down, and it just becomes a very efficient way for customers to operate with data at scale >>Every year it reinvented. So it was kind of like a pinch me moment. It's like, well, more that's really good technology. Oh my God, it's getting easier and easier. As the infrastructure as code becomes more programmable, it's becoming easier, more Lambda, more serverless action. Uh, you got new offerings. How are customers benefiting for instance, from the three new offerings that you guys announced here? What specifically is the value proposition that you guys are putting out there? Yeah, so the, >>Um, you know, as we've tried to do with AWS over the years, customers get to focus on the things that really differentiate them and differentiate their businesses. So we take away in Redshift serverless, for example, all of the work that's needed to manage clusters, provision them, scale them, optimize them. Uh, and that's all been automated and made invisible to customers, the customers to think about data, what they want to do with it, what insights they can derive from it. And they know they're getting the most efficient infrastructure possible to make that a reality for them with high performance and low costs. So, uh, better results, more ability to focus on what differentiates their business and lower cost structure over time. >>Yeah. I had the essential guys on it's interesting. They had part of the soul cloud. Continuous is their word for what Adam was saying is clouds everywhere. And they're saying it's faster to match what you want to do with the outcomes, but the capabilities and outcomes kind of merging together where it's easy to say, this is what we want to do. And here's the outcome it supports that's right with that. What are some of the key trends on those outcomes that you see with the data analytics that's most popular right now? And kind of where's that, where's that going? >>Yeah. I mean, I think what we've seen is that data's just becoming more and more critical and top of mind for customers and, uh, you know, the pandemic has also accelerated that we found that customers are really looking to data and analytics and machine learning to find new opportunities. How can they, uh, really expand their business, take advantage of what's happening? And then the other part is how can they find efficiencies? And so, um, really everything that we're trying to do is we're trying to connect it to business outcomes for customers. How can you deepen your relationship with your customers? How can you create new customer experiences and how can you do that more efficiently, uh, with more agility and take advantage of, uh, the ability to be flexible. And you know, what is a very unpredictable world, as we've seen, >>I noticed a lot of purpose-built discussion going on in the keynote with Swami as well. How are you creating this next layer of what I call purpose-built platform like features? I mean, tools are great. You see a lot of tools in the data market tools are tools of your hammer. You want to look for a nail. We see people over by too many tools and you have ultimately a platform, but this seems to be a new trend where there's this connect phenomenon was showing me that you've got these platform capabilities that people can build on top of it, because there's a huge ecosystem of data tools out there that you guys have as partners that want to snap together. So the trend is things are starting to snap together, less primitive, roll your own, which you can do, but there's now more easier ways. Take me through that. Explain that, unpack that that phenomenon role rolling your own firm is, which has been the way now to here. Here's, here's some prefabricated software go. >>Yeah. Um, so it's a great observation and you're absolutely right. I mean, I think there's some customers that want to roll their own and they'll start with instances, they'll install software, they'll write their own code, build their own bespoke systems. And, uh, and we provide what the customers need to do that. But I think increasingly you're starting to see these higher level abstractions that take away all of that detail. And mark has Adam put it and allow customers to compose these. And we think it's important when you do that, uh, to be modular. So customers don't have to have these big bang all or nothing approaches you can pick what's appropriate, uh, but you're never on a dead end. You can always evolve and scale as you need to. And then you want to bring these ideas of unified governance and cohesive interfaces across so that customers find it easy to adopt the next thing. And so you can start off say with batch analytics, you can expand into real time. You can bring in machine learning and predictive capabilities. You can add natural language, and it's a big ecosystem of managed services as well as third parties and partners. >>And what's interesting. I want to get your thoughts while I got you here, because I think this is such an important trend and historic moment in time, Jerry chin, who one of the smartest VCs that we know from Greylock and coin castles in the cloud, which kind of came out of a cube conversation here in the queue years ago, where we saw the movement of that someone's going to build real value on AWS, not just an app. And you see the rise of the snowflakes and Databricks and other companies. And he was pointing out that you can get a very narrow wedge and get a position with these platforms, build on top of them and then build value. And I think that's, uh, the number one question people ask me, it's like, okay, how do I build value on top of these analytic packages? So if I'm a startup or I'm a big company, I also want to leverage these high level abstractions and build on top of it. How do you talk about that? How do you explain that? Because that's what people kind of want to know is like, okay, is it enabling me or do I have to fend for myself later? This is kind of, it comes up a lot. >>That's a great question. And, um, you know, if you saw, uh, Goldman's announcement this week, which is about bringing, building their cloud on top of AWS, it's a great example of using our capabilities in terms of infrastructure and analytics and machine learning to really allow them to take what's value added about Goldman and their position to financial markets, to build something value, add, and create a ton of value for Goldman, uh, by leveraging the things that we offer. And to us, that's an ideal outcome because it's a win-win for us in Goldman, but it's also a win for Goldman and their customers. >>That's what we call the Supercloud that's the opportunity. So is there a lot of Goldmans opportunities out there? Is that just a, these unicorns, are these sites? I mean, how do you, I mean, that's Goldman Sachs, they're huge. Is there, is this open to everybody? >>Absolutely. I mean, that's been one of the, uh, you know, one of the core ideas behind AWS was we wanted to give anybody any developer access to the same technology that the world's largest corporations had. And, uh, that's what you have today. The things that Goldman uses to build that cloud are available to anybody. And you can start for a few pennies scale up, uh, you know, into the petabytes and beyond >>When I was talking to Adams, Lipski when I met with him prior to re-invent, I noticed that he was definitely had an affinity towards the data, obviously he's Amazonia, but he spent time at Tableau. So, so as he's running that company, so you see that kind of mindset of the data advantage. So I have to ask you, because it's something that I've been talking about for a while and I'm waiting for it to emerge, but I'm not sure it's going to happen yet. But what infrastructure is code was for dev ops and then dev sec ops, there's almost like a data ops developing where data as code or programmable data. If I can connect the dots of what Swami's saying, what you're doing is this is like a new horizontal layer of data of freely available data with some government governance built in that's right. So it's, data's being baked into everything. So data is any ingredient, not a query to some database, it's gotta be baked into the apps, that's data as code that's. Right. So it's almost a data DevOps kind of vibe. >>Yeah, no, you're absolutely right. And you know, you've seen it with things like ML ops and so on. It's all the special case of dev ops. But what you're really trying to do is to get programmatic and systematic about how you deal with data. And it's not just data that you have. It's also publicly available data sets and it's customers sharing with each other. So building the ecosystem, our data, and we've got things like our open data program where we've got publicly hosted data sets or things like the AWS data exchange where customers can actually monetize data. So it's not just data as code, but now data as a monetizeable asset. So it's a really exciting time to be in the data business. >>Yeah. And I think it's so many too. So I've got to ask you while I got you here since you're an expert. Um, okay. Here's my problem. I have a lot of data. I'm nervous about it. I want to secure it. So if I try to secure it, I'm not making it available. So I want to feed the machine learning. How do I create an architecture where I can make it freely available, but yet maintain the control and the comfort that this is going to be secure. So what products do I buy? >>Yeah. So, uh, you know, a great place to start at as three. Um, you know, it's one of the best places for data lakes, uh, for all the reasons. That's why we talked about your ability scale costs. You can then use lake formation to really protect and govern that data so you can decide who's allowed to see it and what they're allowed to see, and you don't have to create multiple copies. So you can define that, you know, this group of partners can see a, B and C. This group can see D E and F and the system enforces that. And you have a central point of control where you can monitor what's happening. And if you want to change your mind, you can do that instantly. And all access can be locked down that you've got a variety of encryption capabilities with things like KMS. And so you can really lock down your data, but yet keep it open to the parties that you want and give them specifically the access that you want to give them. And then once you've done that, they're free to use that data, according to the rules that you defined with the analytics tools that we offer to go drive value, create insight, and do something >>That's lake formation. And then you got a Thena querying. Yes, we got all kinds of tooling on top of it. >>It's all right. You can have, uh, Athena query and your data in S3 lake formation, protecting it. And then SageMaker is integrated with Athena. So you can pull that data into SageMaker for machine learning, interrogate that data, using natural language with things like QuickSight Q a like we demoed. So just a ton of power without having to really think too deeply about, uh, developing expert skill sets in this. >>So the next question I want to ask you is because that first part of the great, great, great description, thank you very much. Now, 5g in the edges here, outpost, how was the analytics going on that as edge becomes more pervasive in the architecture? >>Yeah, it's going to be a key part of this ecosystem and it's really a continuum. So, uh, you know, we find customers are collecting data at the edge. They might be making local ML or inference type decisions on edge devices, or, you know, automobiles, for example. Uh, but typically that data with some point will come back into the cloud, into S3 will be used to do heavy duty training, and then those models get pushed back out to the edge. And then some of the things that we've done in Athena, for example, with federated query, as long as you have a network path, and you can understand what the data format or the database is, you can actually run a query on that data. So you can run real-time queries on data, wherever it lives, whether it's on an edge device, on an outpost, in a local zone or in your cloud region and combine all of that together in one place. >>Yeah. And I think having that data copies everywhere is a big thing deal. I've got to ask you now that we're here at reinvent, what's your take we're back in person last year was all virtual. Finally, not 60,000 people, like a couple of years ago, it's still 27,000 people here, all lining up for the sessions, all having a great time. Um, all good. What's the most important story from your, your area that people should pay attention to? What's the headline, what's the top news? What should people pay attention to? >>Yeah, so I think first off it is awesome to be back in person. It's just so fun to see customers and to see, I mean, you, like, we've been meeting here over the years and it's, it's great to so much energy in person. It's been really nice. Uh, you know, I think from an analytics perspective, there's just been a ton of innovation. I think the core idea for us is we want to make it easy for customers to use the right tool for the right job to get insight from all of their data as cost effectively as possible. And I think, uh, you know, I think if customers walk away and think about it as being, it's now easier than ever for me to take advantage of everything that AWS has to offer, uh, to make sense of all the data that I'm generating and use it to drive business value, but I think we'll have done our jobs. Right. >>What's the coolest thing that you're seeing here is that the serverless innovation, is it, um, the new abstraction layer with data high level services in your mind? What's the coolest thing. Got it. >>It's hard to pick the coolest that sticks like kicking the candies. I mean, I think the, uh, you know, the continued innovation in terms of, uh, performance and functionality in each of our services is a big deal. I think serverless is a game changer for customers. Uh, and then I think really the infusion of machine learning throughout all of these systems. So things like Redshift ML, Athena ML, Pixar, Q a just really enabling new experiences for customers, uh, in a way that's easier than it ever has been. And I think that's a, that's a big deal and I'm really excited to see what customers do with it. >>Yeah. And I think the performance thing to me, the coolest thing that I'm seeing is the graviton three and the gravitron progression with the custom stacks with all this ease of use, it's just going to be just a real performance advantage and the costs are getting lowered. So I think the ECE two instances around the compute is phenomenal. No, >>Absolutely. I mean, I think the hardware and Silicon innovation is huge and it's not just performance. It's also the energy efficiency. It's a big deal for the future reality. >>We're at an inflection point where this modern applications are being built. And in my history, I'm old, my birthday is today. I'm in my fifties. So I remember back in the eighties, every major inflection point when there was a shift in how things were developed from mainframe client server, PC inter network, you name it every time the apps change, the app owners, app developers all went to the best platform processing. And so I think, you know, that idea of system software applications being bundled together, um, is a losing formula. I think you got to have that decoupling large-scale was seeing that with cloud. And I think now if I'm an app developer, whether whether I'm in a large ISV in your ecosystem or in the APN partner or a startup, I'm going to go with my software runs the best period and where I can create value. That's right. I get distribution, I create value and it runs fast. I mean, that's, I mean, it's pretty simple. So I think the ecosystem is going to be a big action for the next couple of years. >>Absolutely. Right. And I mean, the ecosystem's huge and I think, um, and we're also grateful to have all these partners here. It's a huge deal for us. And I think it really matters for customers >>What's on your roadmap this year, what you got going on. What can you share a little bit of a trajectory without kind of, uh, breaking the rules of the Amazonian, uh, confidentiality. Um, what's, what's the focus for the year? What do you what's next? >>Well, you know, as you know, we're always talking to customers and, uh, I think we're going to make things better, faster, cheaper, easier to use. And, um, I think you've seen some of the things that we're doing with integration now, you'll see more of that. And, uh, really the goal is how can customers get value as quickly as possible for as low cost as possible? That's how we went to >>Yeah. They're in the longterm. Yeah. We've always say every time we see each other data is at the center of the value proposition. I've been saying that for 10 years now, it's actually the value proposition, powering AI. And you're seeing because of it, the rise of superclouds and then the superclouds are emerging. I think you guys are the under innings of these emerging superclouds. And so it's a huge treading, the Goldman Sachs things of validation. So again, more data, the better, sorry, cool things happening. >>It is just it's everywhere. And the, uh, the diversity of use cases is amazing. I mean, I think from, you know, the Australia swimming team to, uh, to formula one to NASDAQ, it's just incredible to see what our >>Customers do. We see the great route. Good to see you. Thanks for coming on the cube. >>Pleasure to be here as always John. Great to see you. Thank you. Yeah. >>Thanks for, thanks for sharing. All of the data is the key to the success. Data is the value proposition. You've seen the rise of superclouds because of the data advantage. If you can expose it, protect it and govern it, unleashes creativity and opportunities for entrepreneurs and businesses. Of course, you got to have the scale and the price performance. That's what doing this is the cube coverage. You're watching the leader in worldwide tech coverage here in person for any of us reinvent 2021 I'm John ferry. Thanks for watching.

(upbeat rhythmic music) >> Everyone, I'm John Furrier with theCUBE here at Palo Alto on a remote interview for a special video interview. The EC2 15th birthday party celebration event. Raj Pai, who's the Vice President of EC2 Product Management AWS is here with me. Congratulations on Amazon Web Services, EC2 with the compute. What a journey. 15 years old. Soon we got the keys to the car at a couple more years. So Raj, great to see you. You guys have been doing great work. Congratulations. >> Thank you. It's great being here. It's super exciting for me too. I can't believe it's 15 years and you know that big, we're still at the very beginning as you know, that we often say. >> The building blocks that have been there from the beginning really set the table, and it's just been fun to watch the innovation on behalf of customers that you guys have done at AWS and more, and for entrepreneurs and for developers, it just continues to be great and the edge is right on the corner. Wavelength, all the great stuff. But let's talk about the specific topic here that I really want to drill into is that as you look at the 15th year and birthday for EC2, okay? You're looking at the future as well. You're looking at the past, present and future. And one of the things that's most compelling about recent re-invent was the Graviton performance numbers are amazing. You guys have been building custom silicon for a while. You also worked with Intel and AMD. What is it about? What's the huge investment for you guys? Where do you started to see some returns? Are you seeing returns? And then why did AWS decide to build its own processors? >> Yeah, now, that's a really good question. And I mean, like with everything else we do in AWS, it's all about innovating on behalf of our customers. And one of the things our customers are telling us, that they continue to tell us is they want to see better performance at lower prices. And we've been able to deliver that with our hardware partners for the last 15 years. But as we've understood the workloads that run on EC2 and AWS, we saw an opportunity. Like, what if we were going to go and design our own processor that was really optimized for the sort of workload that customers run on the Cloud? And make design decisions when designing the CPU and the system and the chip around the CPU that does things like bring a lot more core local cache and speed up the parts of the operations that really benefit real-world workload. So, this isn't about benchmarks. It's about how do real world workloads perform and how do we build systems that optimize that performance? And with Graviton, we were able to hit the nail on the head. We were also very pleasantly surprised when we got our first chips off the line. And we're seeing that a customer, like about 40% performance improvement at significantly lower cost. And that's super exciting. And that's one of the reasons we're getting so much interest from our customers. >> I got to say as a geek and a tech nerd, I love the silicon development. And there's benefits there, also the performance is there. The thing that also is pretty obvious that's happening is and the world seeing it is the shift towards ARM-based computing. What kinds of customers and use cases are you seeing adopt to Graviton? And what kind of workloads were they running on? What are the things that surprise you guys, that didn't surprise me. Did you guys always talk about the upcheck and how everyone's leveraging it? What are some of the examples? Take us through some of the customers, use cases, workloads. What's surprising you and what's going on with Graviton? >> Yes, so I think that the biggest surprise for us is how broadly applicable it's been. So one of the things we did, we launched with reinvent is like we have different form factors of compute. We have memory-optimized instances that are good for databases and in memory caches. We have compute optimized for HPC and workloads that really take advantage of the performance of the chip and then we have general purpose workloads. And we we introduced Graviton variants of all those instance families And we're actually seeing the same sort of performance benefits across workload. So, and it's one of the reasons why companies like Metrol, and Snap and SmugMug, they move one workload over, they see the performance benefit and before you know it, they're starting to move workloads and mass over across kind of that spectrum. So, I think that's one of the biggest surprises is that Graviton seems to do well across a wide range and we're going to keep on introducing it more and more of instance families, because we've seen this uptick well. >> You're seeing a lot of people move to the Graviton. You mentioned a few of those early adopters who were pushing the envelope, and they're always kind of trotted out there as examples at reinvent, which is always fun to see what they're working on next. And now is that people see the Graviton2 instances, okay, the architecture's different, higher performance. How much effort do our customers typically need to move to Graviton2 instances? And what are some of the benefits they're seeing on performance and price performance? Can you talk about that transition? Because that's natural evolution for them. >> Yeah. It's actually a lot less than they originally think. So, some of the hardest effort is just getting them over the line to try it. So, one of the things that we tell our customers who are considering Graviton is it just takes one or two developers take one workload and go off for a couple of weeks and just try reporting it to Graviton. And more often than not, they come back to us in four or five days. They're like, it works. And we just had to do some testing and verification, but we were able to afford it because, you know, the operating system support was there, the ISP support was there and the tools that they use, and they're using most cases, modern programming languages like Python or Go or Java or PhD where, you know, interpret the language and it just run. And so there's very little lift in comparison to what people think it's going to be. And that's one of the reasons that, you know, one of the big announcements we made in the last few weeks is what we're calling the Graviton challenge, right? So it's a set of blueprints for customers to essentially have best practices on how to in four days take, you know, a piece of code and piece of that workload and execute it and run it and migrate it to the Graviton. And we're seeing a lot of interest in that as people in the community realize how easy that actually is. >> What are some of the cool price performance things that are emerging? Obviously it makes sense if you don't really need it, don't pay for it, but you have that option. A lot of people are going there. Is there a wave you see coming that Graviton2 is going to be really set up for that you kind of see some early signals coming in, Raj? Because, I can see the 64 bit. I can see where Graviton fits today. Obviously, performance is key. Is it certain things that are emerging? What's the main problems that it solves? >> Well, I think anything that's a multi-threaded architecture is going to do really well in Graviton because of the, we have really densely packed 64 course. And so you're going to see things like microservices and containers and workloads that are more, that are able to take advantage of that parallel execution do really, really well. And so, we say 40% performance improvement, but like, when our customers have gone and tried this, they've seen upwards of 50% depending on the workload. So yeah, it's going to be more your multi-threaded application. There's some applications that may not be a fit, like it can give a legacy, you know, for example, like, there's some software that hasn't yet been moved over and we're going to continue to invest super heavily in our whole ecosystem of hardware, for the longterm. So I think that because there's a great option and we just encourage them to try it. And then they'll learn from their experience what works and what doesn't. >> Wow. 15th birthday. Still growing up and it's starting to get more mature. You're the VP of Product Management. You have the keys to the kingdom. So, you have wide-ranging responsibilities. Share with us if you can. I know that you really can't say much, but try to give a little bit of teaser. You got Wavelength. I can see the dots connecting at the edge. You got Outposts, so we see all that emerging. I can almost imagine that this is going to get stronger. What should people think about? Where's the headroom for EC2 with Graviton and Graviton2? >> Yeah, I know. I think like, a new architect (mumbles) yourself. But like, our goal is to have AWS kind of everywhere our customers are. And that means the full power of AWS. So, I think you're going to see more and more of us having EC2 in compute capacity, wherever customers need it. That could be in an Outpost. That could be on their 5G network. That could be in a city right next to them, right? And you're going to see us continue to offer the variety, the selection of instances and platforms in all those locations as well. So, I think the key for us is to be ubiquitous and have compute power everywhere our customers need it, in the form factors they need it. >> That's awesome. Congratulations. I love the power. You can't go wrong with sending computers where the data is, where the customers are. AWS, Amazon Web Services. Building their own custom silicon with Graviton2 processors. This is EC2 continuing to grow up. Raj Pai, Vice President of EC2 Product Management. Thank you for coming on and sharing the update and congratulations on the 15th birthday to EC2. >> Yeah, thanks for having me. It's been great. Have a great Friday. >> All right. Great. I'm Jeffrey with theCUBE. You're watching theCUBE coverage of EC2's 15th birthday event. Thanks for watching. (soft rhythmic music)

>>Hello everyone. Thank you, add appreciating the studio. We're here at the cube here in cloud city telco DRS Cloud city. I'm Jeffrey Day Volonte. We're here for the next three days. Wall to wall live coverage. It's a physical event with a virtual program. It's hybrid. We're here with Daniel Royston, the Ceo of telco D. R. And the acting Ceo Toby, which is announced today. Great >>to see you. It's awesome to see you guys. >>Awesome to see how you doing, how you >>Feeling? I'm feeling congratulations. Right. 101 days ago, I didn't even think this doesn't exist. Right. And we got in contact with you guys and we said we knew there was always going to be a big virtual component and we invited you guys and here we are together. It's insane. >>Well we did the preview videos, but we're kind of walking through and document in the early stages. It all came together beautifully spectacular For the folks watching behind us is the most spectacular build out clouds. It's an ecosystem open concept. It feels like the Apple store meets paradise. Of course. We got the cube here in the set and we got the studio with all the command and control of adam there. So I gotta ask you with the connected keynotes going on right now. The connected world. Yeah. It's connected. We all know that everyone knows that what's, what's different now real quick before we get into the program, what's going on? >>Yeah. I think a big part of my messages and advocating it's more than just the network, Right? And I think telcos forever have relied on. That's all it is. That's what it's about. And I'm like, nope, you guys got to start focusing on your subscribers, right? And so the over the top players keep coming in and siphoning away their revenue and it's time for them to start focusing on us, right and making experience great. And I think that's what this is all about. >>So we're gonna get the news but I want to toss it to Katie. The roving reporter is going to give it a detail on how it all came together. So Katie take it away. >>Mhm We're here in Barcelona and so excited to be back in this beautiful city over at the convention center. The team is working hard putting the finishing touches to tell Cody are amazing cloud city booth at MwC Barcelona 2021. I'm sure you know the story of how this all came together as one of the biggest vendors Erickson pulled out of M. W. C. With just over 100 days until the start of the event. When this happened last year, it kicked off a tidal wave of departures and MwC was called off this year. We all wondered if MWC was going to be cancelled again and that's when Daniel Royston Ceo of Telco D. R. And Tito G swooped in and took over the booth all 6000 square meters of it. The plan turn the booth into cloud city, the epicenter of public cloud innovation at MWC crews have been working around the clock. Over 100 and 50 people have been on this construction site for over three weeks with covid testing every day to prevent outbreaks during the build and in 100 days, it's become just that Cloud city has over 30 vendors presenting over 70 demos with 24 private meeting areas. Cloud City Live is a virtual showcase and live broadcast studio featuring 50 guests from cloud Thought leaders around the world. They have telepresence robots for a more personalized experience and the Cloud city quest game with a chance to win more than $100,000 to gain access to live streams of our nightly concerts with rosario flores and rock legend Jon bon Jovi. And don't forget to visit cloud city dot telco D R dot com to join in on the fun Daniel Royston and Nacho Gomez, founder and Ceo of one of the key vendors in the construction of the booth gave us a behind the scenes tour of the booth. >>Nacho. We did it. Yeah, we did. It can't even touch because of Covid. Yeah, but look what we did. But right, 100 days ago I called and I said I'm taking over the Ericsson booth. What did you think? I know you were crazy but just a little bit crazy, realized that you were mortgages than I thought. So at the very, at the very beginning I thought, yeah, she's crazy. But then I couldn't sleep that night. But the next uh then I realized that it was a very good it's a great idea. Yeah super smart. So yeah we're gonna show everyone toward the booth. Yeah let's go. Let's go. Okay So how do we build such an amazing, beautiful building now? So this is we've made building inside a book. So it was very hard to find a glassful of facade. The roof is around 24 tones. Yeah so it's crazy crazy but we made it work and it's totally amazing. Yeah. Do you want to go to tragedy life? Do let's go. Okay so here we are Cloud city live. I know we're producing a whole live streaming tv show. We always knew because of covid that not everyone will be able to come to Mwc as we wanted to make sure that people can learn about the public cloud. So over here we have the keynote stage, we're gonna have awesome speakers talking all throughout M. W. C. People from AWS Microsoft, google vendors companies. So really really great content. And then over there we have the cube interviewing people again 15 minute segments, live streaming but also available on demand. And you can find all of this content on cloud city. Tell Cody are calm and it's available for anyone to you. Well, a lot of content. And what about the roberts? I never get them out. Come on. We remember 100 days ago we were locked down. So we came up with the idea of having robots for the people who cannot attend in person. I know right. We always knew that there was gonna be a big virtual component to MWC this year. So we bought 100 telepresence robots. It's a great way to have a more personal experience inside the boot. Just sign up for one on cloud city dot telco D r dot com and you can control it yourself. Right? So today we have Nikki with us, who's dialing in from the Philippines in Manila? Hello, Nicky. Hi there, how are you? I were great. Can you show us a twirl all gaining on us? Super cool. Yeah, it is. What an experience. So Nikki robots are not the only cool thing we have in cloud city. We also have super awesome concert. We have rosario flores on monday. Who's a latin grammy award winner. We have Jon bon Jovi, Jon bon Jovi on Tuesday, can't be changing telephone that a little bit of rock n roll and that's Tuesday. And on Wednesday we have DJ official, it's going to be a super party. Now if you play our cloud city quest on cloud city telco D R dot com you can participate in a live streaming concert and so I know a lot of people out there have been a lockdown. Haven't been able to be going to concerts. Things from austin texas, which is the live music capital of the world, How to have music. It would be so exciting is gonna be great. I'm getting hungry. Why don't we go to the restaurant? Let's go eat. Let's go. Yeah, Here is our awesome restaurant. I know it's called Cloud nine. Right? It's a place to come and sit down and relax now. Barcelona is known for its great food and I'm a foodie. So we had to have a restaurant. Should we go check out my secret bar? Let's go. Mhm. Yeah, here >>thanks to a R. And thank you Nacho if you're watching this at home, I'm so sorry you can't join us in person. However, let's not forget this is a hybrid event meaning we're bringing all the public cloud action right to you wherever in the world you might be. This includes the Pact cloud city live program. We've partnered with the cube Silicon angle Media's live streaming video studio to make sure that all of the keynotes, panel discussions, demos, case studies interviews and way more are available on demand so you can watch them whenever and wherever you want or you can live stream and enjoy all things cloud city as and when they happen. So for those of you not able to join us in, Barcelona, be sure to log in to cloud city live and catch all the action and don't miss the awesome concert Tuesday night with Jon bon Jovi available for free. If you participate in our cloud city quest game, I'll be here throughout MWc bringing you reports and updates. Stay >>tuned. Yeah. >>Mhm. Okay, we're back here on the cube on the floor at mobile world congress in cloud city telco DRS clouds. They were here with D. R. Of telco, D R. Danielle Rice and great to see you back, we're back. So the keynotes going on connected world, the big news here, I'll see the open shift that's happening is going open. Open ran, it's been a big thing. Open ran alliance. You're starting to see the industry come together around this clear mandate that applications are gonna be cloud native and the public cloud is just coming in like a big wave and people are gonna be driftwood or they'll be surfing the wave. Yeah, this is what's happening. >>Yeah, I think public cloud is an unstoppable megatrend. It's hit every other industry regulated industries like banking, right? Top secret industries like government. They all use the public cloud tells us the last, you know, standing old school industry and it's coming and I don't think we could have had an MWc without talking about open man. That's the other major shift. And so we're bringing both of those ideas here together in cloud city. So >>the big theme is telco transformation. Maybe we could start with the basics like paint a picture of what the telco infrastructure looks like, particularly the data center stuff because they all have big data centers >>because that's >>those are the candidates to go into the cloud explained to the audience. >>Well, do you have a time machine? I think if any of us were in tech in the late 90s and early 2000s, that's what telcos like today. Right. So for people outside of the industry don't know right there mostly still managing their own data centers, they're just sort of adopting virtualization. Some of the more advanced telcos are mostly virtualized public cloud. Is this idea that like this advanced thought and so yeah, I mean things are on premise, things are in silom, things don't use a P. I. S there all integrated with custom code. And so the transformation, we can all see it because we've lived it in other industries. And I'm bringing that to telco and say come along for the ride. It totally works and it's gonna be amazing. >>So it's hardened purpose built infrastructure. Okay. That ultimately parts of that need to go to the public cloud. Right. What parts do you see going first? >>I think all of it. Really. Yeah. And I think when you look at like dish in the W. S. Which was an announcement that came out about two months ago. Right. I mean dish was doing all these are FPs. Everyone knew about it. They were looking for a cloud native software and no one knew what they were. They knew a big part was open man. But their coupling open ran with AWS and deploying their parts of their network onto the public cloud and the whole industry is like wait we thought this was years away, right? Or number two, you're crazy. And I'm saying this is what I've been talking about guys. This is exactly what you can do, leverage the Capex over. Let's see. I think Amazon did $100 billion 2020 right, leverage that Capex for yourself. Get that infinite scalability right? It's going to, well we >>have, we have a saying here in the queue, we just made this up called D. R. That's your initial tucker. The digital revolution and the three Rs reset re platform and re factor. I think the observation we're seeing is that you're coming in with the narrative what everyone's kind of like they're waking up because they have to reset and then re platform with the cloud. But the opportunity is gonna be the re factoring, You're seeing the public cloud, do that already with the Enterprise Enterprises. Already re factoring has done that. Already done that now. Telcos the last area to be innovated by the cloud. >>Yeah, I think there's old school big, we're kind of on a hollowed ground here in the Ericsson booth that I took over, right? They bailed and I kind of made fun of them. I was like, they don't have anything to say, right, They're not going to go to the show. I'm like, this is this is a revolution that's happening in telco and I don't think the big guys are really interested in rewriting their software that frankly makes them billions and billions of dollars of revenue. And I'm like to use the public cloud. All of the software needs to be rewritten needs to be re factored and you've got to start training your teams on how to use it. They don't have any capability. The telcos, in terms of those skills hire the right people, retrain your teams, move your applications, rewrite them. And I think that's what we're talking, this is not a short journey, this is a 10 year journey. So >>let's fast forward to the future a little bit because when I look around cloud city, I see ecosystem everywhere. So as you well know, the telcos have generally done a poor job of attacking adjacent seas. So my question is can they go beyond should they go beyond connectivity or is that going to be the role of the ecosystem? >>Yeah, I think it's time that the telco starts to focus on their subscriber, right? It's been really easy for them to rely on the oligopoly of the network, Right? The network, we live in the United States, we see the 18 T Verizon T mobile five G network, five G network. Like what about us? Right. And it's really easy for the over the top players right, that come in and they're always, telcos are always complaining about being coming dumb pipes and I'm like, you don't focus on the customer, we would rather buy from an Apple and amazon if they provided a mobile service because the customer experience will be better. Right? They need to start focusing on us. They have great businesses but they want to make them better. They need to start focusing on the subscriber, so >>it's a partnership with the ecosystem then for them to go beyond just straight connectivity because you're right, those are the brands that we want to do business >>with. You know, there was a great survey, Peter Atherton who will be talking as a speaker I think um I can't remember when he's talking but he was talking about how there was a survey done, where would you rather get your mobile service from? And it had a couple of big names in telco and then of course the obvious, you know, consumer brands, the ones that we all know and it was like overwhelmingly would rather buy from an amazon or an apple. And I'm like, this is like if you guys don't change, right, if telco doesn't change they keep rolling out 60 and blah blah blah. It's about the network and I don't start making about the subscriber right? Those revenues are going to continue to erode and they just sit there and complain about the O. T. T. Players. Like it's time to fight back. Yeah, I own the subscriber >>relationship. It's a digital revolution and I think This event really encapsulates in my mind this hybrid world here because it's physical events back. It's been since 2019 winter that this event actually happened. >>Well no it was even longer than, well I guess winter it was February of 19, right? And so like you look at ericsson and some of the big names that dropped out of the show, the time they come back, three years will have passed three years, right? This is how you feel your sales funnel is how you connect with your customers right? Tokyo is a very global, you know experience and so you gotta, you gotta get in front of people and you got to talk a >>lot of change to its happened, look at just what public clouds done in 2.5 years. You imagine three years being just >>gone, right? And I think a lot of people back to edition A. W. S. I think the industry was a little bit surprised by that announcement. So I've been telling executives if you were surprised by that, if you think that's, you know, if you don't know how that's gonna work, you need to come to cloud cities, you start meeting all the vendors are here. We have over 30 vendors, 70 demos, right? People who are pushing the technology forward, you need to learn what's going on here. We have several dish vendors here. Come learn about open rand, come learn about public cloud. So >>we're tight on time today, but we're going to have you back and we want to get into the tech, Get it to open, ran a little bit, get into what 5G and beyond and how we're going to take advantage of that and monetize it and what that all means. >>And also we want to hear what's going on the hallways. I know you got a lot of your key noting, you're gonna be a lot of events, the yacht. You've got a lot of briefings, >>yep. Yeah, I've already had two meetings this morning. I shot a video. Um, I met with one of the world's largest groups and I met with a tiny little super app company. Right? So running the gamut, doing everything reporter >>now, we could be like our roaming >>reporter. You know, I love, I love talking to execs and telco getting their perspective on what is public cloud and where are they going, what are they thinking about? And you talked to people who really, really get it and you get people who are just nascent and everywhere in between and I love mwc it's going great. >>Daniel Rose and you are a digital revolution telco DDR. There's amazing. Davis has been fantastic. Again for the folks watching, this is a hybrid events, there's an online component and we're reaching out with our remote interviews to get people brought in and we're shipping this content out to the masses all over the world. It's gonna be really amazing cube coverages here. It's gonna be rocking you guys are doing great. I just want to give you a compliment that you guys just did an amazing job. And of course we've got adam in the studio with the team. So adam, I'm gonna pass it off back to you in the studio

>>Well, good day and welcome back to the cube as we continue our segment featuring AWS star showcase we're with now Mike Bilodeau, who's in corporate development and operations at Kong. Mike, uh, thank you for joining us here on the cube and particularly on the startup showcase. Nice to have you and pong represented here today. Thanks for having me, John. Great to be here. You bet. All right, first off, let's just tell us about pong a little bit and, and, uh, con cadet, which I know is your, your feature program, um, or, um, service. Oh, I love the name by the way. Um, but tell us a little bit about home and then what connect is all about to? Sure. So, uh, Kong as a company really came about in the past five years, our two co-founders came over from Italy in, uh, in the late, in the late aughts, early 20 teens and, uh, had a company called Mashape. >>And so what they were looking at and what they were betting on at that time was that API APIs, uh, were going to be the future of how software was built and how developers interacted with software. And so what came from that was a piece of, uh, they were running that shape as a marketplace at the time. So connecting developers sit in for an API so they can consume them and use them to build new software. And what they found was that actually the most valuable piece of technology that they created was the backbone for running that marketplace. And that backbone is what Kong is. And so they created it to be able to handle a massive amount of traffic, a massive amount of API APIs, all simultaneously. This is a problem that a lot of enterprises have, especially now that we've started to get some microservices, uh, started to, to have more distributed technologies. >>And so what Kong is really is it's a way to manage all of those different API APIs, all of the connections between different microservices, uh, through a single platform, which is called connect. And now that we've started to have Coobernetti's, uh, the, sort of the birth and the, the nascent space of service mesh con connect allows all of those connections to be managed and to be secured and made reliable, uh, through a single platform. So what's driving this right. I mean, um, you, you mentioned micro services, um, and Coobernetti's, and that environment, which is kind of facilitating, you know, this, uh, I guess transformation you might say. Um, but what's the big driver in your opinion, in terms of, of what's pushing this microservices phenomenon, if you will, or this revolution. Sure. And when I think it starts out at, at the simple active of technology acceleration in general, um, so when you look at just the, the real shifts that have come in enterprise, uh, especially looking, you know, start with that at the cloud, but you could even go back to VMware and virtualization is it's really about allowing people to build software more rapidly. >>Um, all of these different innovations that have happened, you know, with cloud, with virtualization now with containers, Kubernetes, microservices, they're really focused on making it, uh, so that developers can build software a lot more quickly, uh, develop the, the latest and greatest in a more rapid way. >>A huge driver out of this is just making it easier for developers, for organizations to bring new technologies to market. Uh, and we see that as a kind of a key driver in a lot of these decisions that are being made. I think another piece of it that's really coming about is looking at, uh, security, uh, as a really big component, you know, do you have a huge monolithic app? Uh, it can become very challenging to actually secure that if somebody gets into kind of that initial, uh, into the, the initial ops space, they're really past the point of no return and can get access to some things that you might not want them to similar for compliance and governance reasons that becomes challenging. So I think you're seeing this combination of where people are looking at breaking things into smaller pieces, even though it does come with its own challenges around security, um, that you need to manage, it's making it so that, uh, there's less ability to just get in and cause a lot of damage kind of all at once. Often Melissa malicious attackers. >>Yeah. You bring up security. And so, yeah, to me, it's almost, in some cases it's almost counterintuitive. I think about, I've got the, if I got this model, the gap and I've got a big parameter around it, right. And I know that I can confine this thing. I can contain this. This is good. Now microservices, now I got a lot of, it's almost like a lot of villages, right. They're all around. And, and uh, I don't have the castle anymore. I've got all these villages, so I have to build walls around all these villages. Right. But you're saying that there that's actually easier to do, or at least you're more capable of doing that now as opposed to living >>Three years ago. Well, you can almost think of it, uh, as if you have this little just right, and you might, um, if you have one castle and somebody gets inside, they're going to be able to find whatever treasury may have, you know, to extend the analogy here a bit, but now it's different, uh, 50 different villages that, you know, uh, an attacker needs to look in, it starts to become really time-consuming and really difficult. And now when you're looking at, especially this idea of kind of cybersecurity, um, the ability to secure a monolithic app is typically not all that different from what you can do with a microservice or with a once you get past that initial point, instead of thinking of it, you know, I have my one wall around everything, you know, think of it almost as a series of walls where it gets more and more difficult. Again, this all depends on, uh, that you're, you're managing that security well, which can get really time-consuming more than anything else and challenging from a pure management standpoint, but from an actual security posture, it is a way of where you can strengthen it, uh, because you're, you're creating more, um, more difficult ways of accessing information for attackers, as well as just more layers potentially of security. >>But what do you do to lift that burden then from, from the customer? Because like you said, that that that's a concern they really don't want to have. Right. They want, they want you to do that. They want somebody to do that for them. So what can, what do you do to alleviate those kinds of stress >>On their systems? Yeah, it's a great question. And this is really where the idea of API management and, um, in it's in its infancy came from, was thinking about, uh, how do we extract a way these different tasks that people don't really want to do when they're managing, uh, how API, how people can interact with their API APIs, whether that be a device or another human, um, and part of that is just taking away. So what we do and what API gate management tools have always done is abstract that into a, a new piece of software. So instead of having to kind of individually develop and write code for security, for logging, for, you know, routing logic, all these different pieces of how those different APIs will communicate with each other, we're putting that into a single piece of software and we're allowing that to be done in a really easy way. >>And so what we've done now with con connect and where we've extended that to you, is making it even easier to do that at a microservices level of scale. So if you're thinking about hundreds or thousands of different microservices that you understand and be able to manage, that's what we're really building to allow people to do. And so that comes with, you know, being able to, to make it extremely easy, uh, to, to actually add policies like authentication, you know, rate-limiting, whatever it may be, as well as giving people the choice to use what they want to use. Uh, we have great partners, you know, looking at the Datadog's, the Okta's of the world who provide a pretty, pretty incredible product. We don't necessarily want to reinvent the wheel on some of these things that are already out there, and that are widely loved and accepted by, uh, technology, practitioners and developers. We just want to make it really easy to actually use those, uh, those different technologies. And so that's, that's a lot of what we're doing is providing a, a way to make it easy to add this, you know, these policies and this logic into each one of these different services. >>So w if you're providing these kinds of services, right. And, and, and, and they're, they're, they're new, right. Um, and you're merging them sometimes with kind of legacy, uh, components, um, that transition or that interaction I would assume, could be a little complex. And, and you've, you've got your work cut out for you in some regards to kind of retrofit in some respects to make this seamless, to make this smooth. So maybe shine a little light on that process in terms of not throwing all the, you know, the bath out, you know, with, with the baby, all the water here, but just making sure it all works right. And that it makes it simple and, and, um, takes away that kind of complexity that people might be facing. >>Yeah, that's really the name of the game. Uh, we, we do not believe that there is a one size fits all approach in general, to how people should build software. Uh, there are going to need instances aware of building a monolithic app. It makes the most sense. There are going to be instances where building on Kubernetes makes the most sense. Um, the key thing that we want to solve is making sure that it works and that you're able to, to make the best technical decision for your products and for your organization. And so in looking at, uh, sort of how we help to solve that problem, I think the first is that we have first class support for everything. So we support, you know, everything down to, to kind of the oldest bare metal servers to NAMS, to containers across the board. Uh, and, and we had that mindset with every product that we brought to market. >>So thinking about our service mesh offering, for instance, um, Kula is the open source project that under tens now are even, but looking at Kumo, one of the first things that we did when we brought it out, because we saw this gap in space was to make sure that that adds first-class support for and chance at the time that wasn't something that was commonly done at all. Uh, now, you know, there there's more people are moving in that direction because they do see it as a need, which is great for the space. Um, but that's something where we, we understand that the important thing is making sure your point, you said it kind of the exact way that we like to, which is it needs to be reliable. It needs work. So I have a huge estate of, you know, older applications, older, uh, you know, potentially environments, even. I might have data centers that might've cloud being, trying to do everything all at once. Isn't really a pragmatic approach. Always. It needs to be able to support the journey as you move to, to a more modern way of building. So in terms of going from on-premise to the cloud, running in a hybrid approach, whatever it may be, all of those things shouldn't be an all or nothing proposition. It should be a phase approach and moving to, to really where it makes sense for your business and for the specific problem >>Talking about cloud deployments, obviously AWS comes into play there in a major way for you guys. Um, tell me a little bit about that, about how you're leveraging that relationship and how you're partnering with them, and then bringing the, the value then to your customer base and kind of how long that's been going on and the kinds of work that you guys are doing together, uh, ultimately to provide this kind of, uh, exemplary product or at least options to your customers. >>Yeah, of course. I think the way that we're doing it first and foremost is that, um, we, we know exactly who AWS is and the space and, and, you know, a great number of our customers are running on AWS. So again, I think that first class support in general for AWS environments services, uh, both from the container service, their, their Kubernetes services, everything that they can have and that they offer to their customers, we want to be able to support, uh, one of the first areas of really that comes to mind in terms of first-class integration and support is thinking about Lambda and serverless. Um, so at the time when we first came out, was that, again, it was early for us, uh, or early in our journey as product and as company, uh, but really early for the space. And so how we were able to support that and how we were able to see, uh, that it could support our vision and, and what we wanted to bring as a value proposition to the market has been, you know, really powerful. So I think in looking at, you know, how we work with AWS, certainly on a partnership level of where we share a lot of the same customers, we share a very similar ethos and wanting to help people do things in the most cost-effective rapid manner possible, and to build the best software. Uh, and, you know, I mean, for us, we have a little bit of a backstory with AWS because Jeffrey's us was a, an early investor in, in common. >>Yeah, exactly. I mean, the, the whole memo that he wrote about, uh, you know, build an API or you're fired was, was certainly an inspiration to, to us and it catalyzed, uh, so much change in, in the technology landscape in general, about how everyone viewed API APIs about building a software that could be reused and, and was composable. And so that's something that, you know, we, we look at, uh, kind of carrying forward and we've been building on that momentum ever since. So, >>Well, I mean, it's just kind of take a, again, a high level, look at this in terms of microservices. And now that it's changing in terms of cloud connectivity. Thank you. Actually, I have a graphic to that. Maybe we can pull up and take a look at this and let's talk about this evolution. You know, what's occurring here a little bit, and, and as we take a look at this, um, tell us what you think those, these impacts are at the end of the day for your customers and how they're better able to provide their services and satisfy their customer needs. >>Absolutely. So this is really the heart of the connect platform and of our vision in general. Um, we'd spoken just a minute ago about thinking how we can support the entire journey or, uh, the, the enterprise reality that is managing a, a relatively complex environment of modelists different services, microservices, you know, circle assumptions, whatever it may be, uh, as well as lots of different deployment methods and underlying tech platforms. You know, if you have, uh, virtual machines and Kubernetes, whatever, again, whatever it may be. But what we look at is just the different sort of, uh, design patterns that can occur in thinking about a monolithic application. And, um, okay. Mainly that's an edge concern of thinking about how you're going to handle connectivity coming in from the edge and looking at a Kubernetes environment of where you're going to have, you know, many Kubernetes clusters that need to be able to communicate with each other. >>That's where we start to think about, uh, our ingress products and Kubernetes ingress that allows for that cross applic, uh, across application communication. And then within the application itself, and looking at service mesh, which we talked a little bit about of just how do I make sure that I can instrument and secure every transaction that's happening in a, a truly microservices, uh, deployment within Kubernetes or outside of it? How do I make sure that that's reliable and secure? And so what we look at is this is just a, uh, part of it is evolution. And part of it is going to be figuring out what works best when it, um, certainly if you're, if you're building something from scratch, it doesn't always make sense to build it, your MDP, as, you know, microservices running on Kubernetes. It probably makes sense to go with the shortest path, uh, at the same time, if you're trying to run it at massive scale and big applications and make sure they're as reliable as possible, it very well does make sense to spend the time and the effort to, to make humanize work well for you. >>And I think that's, that's the, the beauty of, of how the space is shifting is that, uh, it's, it's going towards a way of the most practical solution to get towards business value, to, to move software quicker, to give customers the value that they want to delight them to use. Amazon's, uh, you know, phrase ology, if that's, uh, if that's a word, uh, it's, it's something of where, you know, that is becoming more and more standard practice versus just trying to make sure that you're doing the, the latest and greatest for the sake of, of, uh, of doing it. >>So we've been talking about customers in, in rather generic terms in terms of what you're providing them. We talked about new surfaces that are certainly, uh, providing added value and providing them solutions to their problems. Can you give us maybe just a couple of examples of some real life success stories, where, where you've had some success in terms of, of providing services that, um, I assume, um, people needed, or at least maybe they didn't know they needed until, uh, you, you provided that kind of development that, but give us an idea of maybe just, uh, shine, a little light on some success that you've had so that people at home watching this can perhaps relate to that experience and maybe give them a reason to think a little more about calm. >>Yeah, absolutely. Uh, there, there's a number that come to mind, but certainly one of the customers that I spent a lot of time with, uh, you know, become almost friends would be with, uh, with the different, with a couple of the practitioners who work there is company called Cargill. Uh, it's a shared one with us and AWS, you know, it's one we've written about in the past, but this is one of the largest companies in the world. Um, and, uh, the, the way that they describe it is, is that if you've ever eaten a Vic muffin or eaten from McDonald's and had breakfast there, you you've used a Cargill service because they provide so much of the, the food supply chain business and the logistics for it. They had a, uh, it's a, it's an old, you know, it's a century and a half old company. >>It has a really story kind of legacy, and it's grown to be an extremely large company that's so private. Uh, but you know, they have some of the most unique challenges. I think that I've, I've seen in the space in terms of needing to be able to ensure, uh, that they're able to, to kind of move quickly and build a lot of new services and software that touch so many different spaces. So they were, uh, the challenge that was put in front of them was looking at really modernizing, you know, again, a century and a half old company modernizing their entire tech stack. And, you know, we're certainly not all of that in any way, shape or form, but we are something that can help that process quite a bit. And so, as they were migrating to AWS, as they were looking at, you know, creating a CICB process for, for really being able to ship and deploy new software as quickly as possible as they were looking at how they could distribute the, the new API APIs and services that they were building, we were helping them with every piece of that journey, um, by being able to, to make sure that the services that they deployed, uh, performed in the way that they expected them to, we're able to give them a lot of competence and being able to move, uh, more rapidly and move a lot of software over from these tried and true, uh, you know, older or more legacy of doing things to a much more cloud native built as they were looking at using Kubernetes in AWS and, and being able to support that handle scale. >>Again, we are something that was able to, to kind of bridge that gap and make sure that there weren't going to be disruptions. So there, there are a lot of kind of great reasons of why they're their numbers really speak for themselves in terms of how, uh, how much velocity they were able to get. You know, they saying them saying them out loud on the sense fake in some cases, um, because they were able to, you know, I think like something, something around the order of 20 X, the amount of new API APIs and services that they were building over a six month period, really kind of crazy crazy numbers. Um, but it is something where, you know, the, for us, we, we got a lot out of them because they were open source users. So calling is first and foremost, an open source company. >>And so they were helping us before they even became paying customers, uh, just by testing the software and providing feedback, really putting it through its paces and using it at a scale that's really hard to replicate, you know, the scale of a, uh, a couple of hundred thousand person company, right? Yeah. Talking about a win-win yeah. That worked out well. It's certainly the proof is in the pudding and I'm sure that's just one of many examples of success that you've had. Uh, we appreciate the time here and certainly the insights and wish you well on down the road. Thanks for joining us, Mike. Thanks, Sean. Thanks for having me. I've been speaking with Mike Villa from Kong. He is in corporate development and operations there on John Walls, and you're watching on the cube, the AWS startup showcase.

>>from >>around the globe. It's the Cube with digital coverage of AWS reinvent 2020 sponsored by Intel AWS and our community partners. >>Hey, welcome back. You're ready, Jeffrey here with the Cube coming to you from our Palo Alto studios with our continuing coverage of aws reinvent 2020 the virtual event. We're excited to be back. We've been coming to reinvent for years and years and years, I think since 2013 1st years virtual But that's the way it is. And we're gonna jump into Cloud and government and D o d. And we're really excited to have our next guest. You know a lot about the topic. We have Robert Grote. He is the VP of technology and strategy from spark Tronics coming to us from Virginia. Great to see you, Robert. >>Great. Thank you. >>And joining him is Anthony Voltaggio, the CTO of Smartronix. Anthony. Good to see you as well. Thank you. Great. So let's jump into it. I think Rob, we had you on a couple of years ago. I I looked it up. It was early October 18 and you guys were getting a lot of success with cloud in government and I think it was before the Jedi and all that other stuff was going down. Two years is forever in cloud time. I wonder if you could just share a little bit about how the market has changed since I think it was February or March of 2018 to now late November 2020 in terms of cloud and government and Department of Defense. And you're highly regulated customers. >>Sure, I think one of the things that's changed is that security certainly used to be a headwind on bond. Now we're actually seeing it more of a tailwind where our customers, especially are heavily regulated, compliance driven customers in the public sector and the D. O. D are really looking at new ways of embracing the value of the cloud. So one of the things that has changed is that maybe two years ago, we were looking at How do we move digital estate from on premise into the cloud environment? We're now we're looking at. How do we actually achieve value in the cloud? How do we allow our customers to optimize their portfolio? How do they modernize their application footprint in a in a secure way and some of the things that we focused on, particularly smartronix, is how do we remove that friction that exists when a new kind of legacy customer really wants to transform the way that they deliver services. So we built, uh, capabilities that really allow them to more rapidly migrate their services into the cloud environment. We created and have an 80 0, now for a cloud assured manage services, which means that our customers who want to meet the rigorous security mandates now have that ability to utilize our services when they're deploying these services. And it really enables them to focus on the development of the modernization, you know, versus having to do the cumbersome components of security compliance and operation on def. You if you look at what we're trying to build and trying Thio intersect with where our customers we're going, they really want to get to that pace of innovation that the cloud provides. Um, you know, I think I've said this before to the Cube that the slope of disruption is correlated to the pace of innovation. And if you continue to build technical debt like our customers may have done in the past, they're gonna fall behind and it might be okay, um, for, you know, Blockbuster to fall behind the Netflix or for uber disrupted industry. But for our customers, there's national security consequences when they fall behind. So we've got to create a platform and a capability that enables them to innovate on, deliver very agile services rapidly. >>And then I wanna go. I wanna go to you because I think Robin, in your last interview, talked about your customers very secure, highly regulated, compliance driven environments. Right? And? And to be clear, you guys sell a lot to Department of Defense and all the various branches of the U. S. Military etcetera. You know, Anthony, a lot of talk of digital transformation on the commercial side and and people going right And then, of course, all the jokes and memes about Covic, you know, being the accelerator to that for >>your >>customers. The accelerators thio at modernization in the digital transformation are very different. It's not about necessarily the competitors down the street, but it's about some nasty competitors that want to cause this real harm. How how have they adopted? You know, kind of this this digital transformation and what's different in terms of accelerating it in your customer base. >>We're looking our defense customers and national security customers. Absolutely. The velocity and scale of cloud is becoming an enabler again. Looking at those information work was that they have looking at the nation state adversaries that we're facing right now. Information is information warfare. So if we're not ready to scale, innovate at much higher velocity than we have in the past, we're gonna become victim to those attacks. Methodologies that score matters of using so that the scale and power of the cloud as well is that tailwind of all these authorized services that are offered by Amazon that are already at the federal federal high and D o D. Impact. Those for higher, up to impact level six really, really enable them to go ahead and meet that mission. But mad and speed and agility. They need toe mash that for necessary, >>right? Well lets you just talked about impact level, and I want to dig into that for a little bit because in doing research on you guys and a lot of the solutions that customers you talk about, there's there's constant conversation about these impact levels Impact level for impact level five Impact Level six Again. It's highly regulated industry. You guys have a very, very high bar that you have to hit in your solutions. What does impact level mean and why is it important? And how are you basically working your way up the chart, which I assume is a much more impactful? Not not no pun intended, but much more significant solution delivery. >>So impact levels really have to do with information risk. So what is the level of information that that system is processing? So as you move up the impact levels, that information becomes more more critical to national security. So on impact Level four system may have to do with standard mission operations and Ministry of Task, etcetera, where when you go up the staff to impeccable five and even to impact level six or higher, you're really dealing with, let's say, in the d. O d, uh, perspective, the horror fighter eso. Now you're dealing with where that war fighters deployed the capabilities of the water fighter that they're leveraging To fight that battle against the adversary eso you have to put more and more rigorous controls around that information to ensure the adversaries can gain the tactical advantage over our war fighters. >>It's really interesting. You know how all these systems are really designed? Uh, toe work together. And as you said, kind of for that, that warfighter, if you you know, you you watch anything on defense, it's kind of the point into the stick, but there's a whole lot of support behind that behind that person at the very end to help them get the information to be successful in their job and support them. Um, etcetera. But I'm curious. Have you seen a change in attitude in terms of not only the data and the information in the systems as a support for the war fighter, but in fact, that data itself being a significant asset as well as a significant target, probably bigger and more valuable than an aircraft carrier or any other kind of traditional defense assets? >>Yeah, I would say we've definitely seen that change. Our our our customers air really looking at data and aggregate and when you're when you're building a cloud profile when you're building a portfolio systems, um, and it's all in a single type environment or an enclave where you can unlock the value of that data, the aggregate of all of those applications. The aggregate of that data has increased value, and that allows you to do a lot more things with it. Allows you to innovate a lot. Mawr toe. Learn more about that data on We're seeing our customers really looking at. How can they unlock that value? Whether it's looking at improving the supply chain, looking at data feeds that they're able to aggregate from commercial sources as well as sources that they're getting in a distributed fashion or whether it's just, you know, looking at, how can they improve the efficiency of of delivering services to the to the warfighter? Um, it really is about unlocking that value of data. So that's why it's also important that we have capabilities that protect that data. And then we provide more capabilities that allow our customers to be able to leverage as the C. S. P s as AWS innovates. Allow them to leverage these new capabilities much more rapidly than they could in the past, >>right? Well, and you talk about technical debt and you know there's kind of technical dead and There's application dead, and there's kind of application portfolio stuff that that you have right that may or may not work well, that's probably running and has been running for years. That doesn't necessarily all have to be modernized. You said Sometimes you know it's it's best to leave. Leave it as it lies. How are you helping people figure out? You know what, what to modernize, what to leave it as as it is. And then you know, or you know how much effort should really be spent on new on new applications and new development. You know, taking taking advantage of the latest because that's kind of a tricky portfolio strategy. And as you said, there's a whole lot of legacy stuff that's still running in those old data centers. >>You mentioned the key word there and that strategy. Our our customers are looking to us to help them evaluate their portfolio, determine what things that they should be doing next, the sequencing events and how they can unlock some of those values in the cloud. So, you know, one of the things that we talk about is that ability to even if you're taking stuff from a legacy environment and moving that estate into the cloud. There's certain things that you can do to opportunistically re factor and get value out of the cloud. You don't have to rewrite the application every time there's things that you can do to just re factor. Um, and one of those components is that when you look at cloud and you look at the a p I nature of the cloud, um, transparency is the gift of the cloud. And automation is how you get value out of that gift. And when when you look at how automation and transparency you're kind of tied together for our customers and you look at the fact that again everything's in a P I based, you know, with, you know, full non repudiation who made that call when they made that call? You've got an ability to create this autonomic response system, and this is This is a key part of application modernization, giving that customer the ability to rapidly respond to an event, create automation, create run books, use you know, advanced technologies like machine learning for anomaly detection, create, you know, security orchestration, all of those components when you could build that framework. Then your customers can even take some of their legacy assets and be able to utilize, you know, the high value of the cloud and respond to events much faster and in, um, or automated an autonomic manner. >>I love that transparency in automation. And I want to go back to you. Anthony, you've been doing this for a long time. Um, you didn't have these tools at your disposal before, and you didn't have necessarily the automation that you have before. And I think more importantly, you know, interesting thing that Rob you touched on on on your earlier interview a couple of years back, you know, kind of this scale learning something identified by by Bill Chamorro's I once in terms of calling it out where you learn something in one place and you can apply that learning, you know, across many, many places. And then the other piece. I want you to comment on its automation because, as we know, a lot of errors happen from silly things, fat fingers, bad copy paste, putting in a wrong config code. This that and the other. So, by adding mawr and Mawr automation and continuing to kind of remove potential little slip ups that can cause big big problems. It's a really different world that you've got in the tools that you have in your portfolio to offer these solutions up to your clients >>absolutely again, as we've learned MAWR Maura about these repeatable patterns that have happened across our different customers. That allows us to create that run book automation library that then allows our team and our capabilities scale across multiple workloads and kind of like Robert identified earlier. There's a lot of these cognitive services, and I'll take Amazon a specific example. Guard duty. It is a very innovative capability with M. L. A. I behind it that allow you to look at these access patterns and communication patterns of these application workloads and quickly identify threats. But the automation and road book and orchestration that you can build behind this then allows you to leverage that library to immediately respond to these events. When you see a threat and you see that pattern, your your ability to rapidly respond to that and mitigate that threat, Israel allows your business and information systems continue providing no the primary business use case and again in our GOP customer. National security system. Customers dividing to the warfighter complete their mission. >>Yeah, well, what a good and let you give. Give a plug for some of your processes and techniques. You have something that you call fast, um, to help people, you know, go through this decision process. And I think, as you said, Rob, you know, you gotta have some strategy before you start making some decisions. And also, this thing that we're seeing out there called the shift left. Um, what does that mean to you? What does it mean to your customers? Why is that important? Why should people know about it? Start with you, Rob. >>So what? We notice we've been doing cloud services, you know, since 2009, Really? One of the first eight of us public sector partners delivering the first capabilities to that market. And what we noticed is that ah, lot of organizations found it easy to move one or two workloads into the cloud. But they struggled in making a cloud, a true enterprise asset. So we took a step back and we created something that we call foundational agile strategic transformation. And that's fast. It's a It's a program that we developed that allows complex organizations. Security minded organizations understand What are all the foundational things that need to be in place to really treat cloud as an enterprise asset? And it covers much more than just the technical components. It covers the organizational components. It covers all the stakeholders around security. But one of the key things that we've changed in the past couple of years is how do we not only look at, you know, leveraging the cloud is an enterprise asset, But how do we allow them to accelerate how they can get the value out of the cloud, modernize their applications, create thes capabilities? And the shift left component of fast is providing as much capability all the way down to where the developer is, where you have maybe dead set cops when it used to be a developer on one side and operations on the other. Security is kind of a binding function. Now we're talking about how can we create more capability, right at the point of development? How can we shift that capability? And I think the role of the managed service provider is to enable that in an organization provide capability, provide operations capability but also help them in a You know, we use the term SRE quite a bit. Site reliability, engineering. How can we really help them continuously optimize their portfolio and build a set of capabilities and services? So when they're building new applications, they're not adding to their technical debt. >>That's great and so and so, so important. And it's just been so interesting. Toe watch again. A security specifically for Public Cloud in AWS has become from you know, what was potentially a concern and a headwind to now being a tailwind. And all you have to do is go to go to some of the the architectural keynotes my some of my favorites and see the scale in massive investments that they can put into infrastructure. And they can put into security that no single company, unless you have the biggest, biggest ones you know, can possibly invested to be able to leverage that opportunity. And obviously, Teresa Carlson and the Public Sector team have done a really good job and giving you guys the solutions that satisfy the very tight requirements that you're very important customers have. So it's really a great story and really enjoy learning mawr and continued success to you guys And, uh, and your teams and your importance, your customers and all the important stuff that they protect for us. Uh, eso thank you very much. All right. Thank you. All right, well, signing off. That's Robert and Anthony. I'm Jeff. You're watching the Cube. Ongoing coverage of aws reinvent 2020. Thanks for watching. See you next time. Thank you.

>>from around the globe. It's the Cube with digital coverage of AWS reinvent 2020 sponsored by Intel, AWS and our community partners. >>Hey, welcome back already, Jeffrey here with the Cube coming to you from Palo Alto studios today for our ongoing coverage of aws reinvent 2020. It's a digital event like everything else in 2020. We're excited for our next segment, so let's jump into it. We're joined in our next segment by Andrew Rafa. He is the principal and zero trust offering lead at the Light and Touche LLP. Andrew, great to see you. >>Thanks for having me. >>Absolutely. And joining him is Robbie Deval. He is the AWS cyber risk lead for Deloitte and Touche LLP. Robbie, Good to see you as well. >>Hey, Jeff, good to see you as well. >>Absolutely. So let's jump into it. You guys are all about zero trust and I know a little bit about zero trust I've been going to are safe for a number of years and I think one of the people that you like to quote analysts chase Cunningham from Forrester, who's been doing a lot of work around zero trust. But for folks that aren't really familiar with it. Andrew, why don't you give us kind of the 101? About zero trust. What is it? What's it all about? And why is it important? >>Sure thing. So is your trust is, um, it's a conceptual framework that helps organizations deal with kind of the ubiquitous nature of modern enterprise environments. Um, and then its course. Your trust commits to a risk based approach to enforcing the concept of least privileged across five key pillars those being users, workloads, data networks and devices. And the reason we're seeing is your trust really come to the forefront is because modern enterprise environments have shifted dramatically right. There is no longer a defined, clearly defined perimeter where everything on the outside is inherently considered, considered untrusted, and everything on the inside could be considered inherently trusted. There's a couple what I call macro level drivers that are, you know, changing the need for organizations to think about securing their enterprises in a more modern way. Um, the first macro level driver is really the evolving business models. So as organizations are pushing to the cloud, um, maybe expanding into into what they were considered high risk geography is dealing with M and A transactions and and further relying on 3rd and 4th parties to maintain some of their critical business operations. Um, the data and the assets by which the organization, um transact are no longer within the walls of the data center. Right? So, again, the perimeter is very much dissolved. The second, you know, macro level driver is really the shifting and evolving workforce. Um, especially given the pandemic and the need for organizations to support almost an entirely remote workforce nowadays, um, organizations, they're trying to think about how they revamp their traditional VPN technologies in order to provide connectivity to their employees into other third parties that need to get access to, uh, the enterprise. So how do we do so in a secure, scalable and reliable way and then the last kind of macro level driver is really the complexity of the I t landscape. So, you know, in legacy environment organizations on Lee had to support managed devices, and today you're seeing the proliferation of unmanaged devices, whether it be you know, B y o d devices, um, Internet of things, devices or other smart connected devices. So organizations are now, you know, have the need to provide connectivity to some of these other types of devices. But how do you do so in a way that, you know limits the risk of the expanding threat surface that you might be exposing your organization to by supporting from these connected devices? So those are some three kind of macro level drivers that are really, you know, constituting the need to think about security in a different >>way. Right? Well, I love I downloaded. You guys have, ah zero trust point of view document that that I downloaded. And I like the way that you you put real specificity around those five pillars again users, workloads, data networks and devices. And as you said, you have to take this kind of approach that it's kind of on a need to know basis. The less, you know, at kind of the minimum they need to know. But then, to do that across all of those five pillars, how hard is that to put in place? I mean, there's a There's a lot of pieces of this puzzle. Um, and I'm sure you know, we talk all the time about baking security and throughout the entire stack. How hard is it to go into a large enterprise and get them started or get them down the road on this zero trust journey? >>Yeah. So you mentioned the five pillars. And one thing that we do in our framework because we put data at the center of our framework and we do that on purpose because at the end of the day, you know, data is the center of all things. It's important for an organization to understand. You know what data it has, what the criticality of that data is, how that data should be classified and the governance around who and what should access it from a no users workloads, uh, networks and devices perspective. Um, I think one misconception is that if an organization wants to go down the path of zero trust, there's a misconception that they have to rip out and replace everything that they have today. Um, it's likely that most organizations are already doing something that fundamentally aligned to the concept of these privilege as it relates to zero trust. So it's important to kind of step back, you know, set a vision and strategy as faras What it is you're trying to protect, why you're trying to protect it. And what capability do you have in place today and take more of an incremental and iterative approach towards adoption, starting with some of your kind of lower risk use cases or lower risk parts of your environment and then implementing lessons learned along the way along the journey? Um, before enforcing, you know more of those robust controls around your critical assets or your crown jewels, if you >>will. Right? So, Robbie, I want to follow up with you, you know? And you just talked about a lot of the kind of macro trends that are driving this and clearly covert and work from anywhere is a big one. But one of the ones that you didn't mention that's coming right around the pike is five g and I o t. Right, so five g and and I o. T. We're going to see, you know, the scale and the volume and the mass of machine generated data, which is really what five g is all about, grow again exponentially. We've seen enough curves up into the right on the data growth, but we've barely scratched the surface and what's coming on? Five G and I o t. How does that work into your plans? And how should people be thinking about security around this kind of new paradigm? >>Yeah, I think that's a great question, Jeff. And as you said, you know, I UT continues to accelerate, especially with the recent investments and five G that you know pushing, pushing more and more industries and companies to adopt a coyote. Deloitte has been and, you know, helping our customers leverage a combination of these technologies cloud, Iot, TML and AI to solve their problems in the industry. For instance, uh, we've been helping restaurants automate their operations. Uh, we've helped automate some of the food safety audit processes they have, especially given the code situation that's been helping them a lot. We are currently working with companies to connect smart, wearable devices that that send the patient vital information back to the cloud. And once it's in the cloud, it goes through further processing upstream through applications and data. Let's etcetera. The way we've been implementing these solutions is largely leveraging a lot of the native services that AWS provides, like device manager that helps you onboard hundreds of devices and group them into different categories. Uh, we leveraged device Defender. That's a monitoring service for making sure that the devices are adhering to a particular security baseline. We also have implemented AWS green grass on the edge, where the device actually resides. Eso that it acts as a central gateway and a secure gateway so that all the devices are able to connect to this gateway and then ultimately connect to the cloud. One common problem we run into is ah, lot of the legacy i o t devices. They tend to communicate using insecure protocols and in clear text eso we actually had to leverage AWS lambda Function on the edge to convert these legacy protocols. Think of very secure and Q t t protocol that ultimately, you know, sense data encrypted to the cloud eso the key thing to recognize. And then the transformational shift here is, um, Cloud has the ability today to impact security off the device and the edge from the cloud using cloud native services, and that continues to grow. And that's one of the key reasons we're seeing accelerated growth and adoption of Iot devices on did you brought up a point about five G and and that's really interesting. And a recent set of investments that eight of us, for example, has been making. And they launched their AWS Waveland zones that allows you to deploy compute and storage infrastructure at the five G edge. So millions of devices they can connect securely to the computer infrastructure without ever having to leave the five g network Our go over the Internet insecurely talking to the cloud infrastructure. Uh, that allows us to actually enable our customers to process large volumes of data in a short, near real time. And also it increases the security of the architectures. Andi, I think truly, uh, this this five g combination with I o t and cloudy, I m l the are the technologies of the future that are collectively pushing us towards a a future where we're gonna Seymour smart cities that come into play driverless connected cars, etcetera. >>That's great. Now I wanna impact that a little bit more because we are here in aws re invent and I was just looking up. We had Glenn Goran 2015, introducing a W S s I O T Cloud. And it was a funny little demo. They had a little greenhouse, and you could turn on the water and open up the windows. But it's but it's a huge suite of services that you guys have at your disposal. Leveraging aws. I wonder, I guess, Andrew, if you could speak a little bit more suite of tools that you can now bring to bear when you're helping your customers go to the zero trust journey. >>Yeah, sure thing. So, um, obviously there's a significant partnership in place, and, uh, we work together, uh, pretty tremendously in the market, one of the service are one of solution offering that we've built out which we dub Delight Fortress, um is a is a concept that plays very nicely into our zero trust framework. More along the kind of horizontal components of our framework, which is really the fabric that ties it all together. Um s o the two horizontal than our framework around telemetry and analytics. A swell the automation orchestration. If I peel back the automation orchestration capability just a little bit, um, we we built this avoid fortress capability in order for organizations to kind of streamline um, some of the vulnerability management aspect of the enterprise. And so we're able through integration through AWS, Lambda and other functions, um, quickly identify cloud configuration issues and drift eso that, um, organizations cannot only, uh, quickly identify some of those issues that open up risk to the enterprise, but also in real time. Um, take some action to close down those vulnerabilities and ultimately re mediate them. Right? So it's way for, um, to have, um or kind of proactive approach to security rather than a reactive approach. Everyone knows that cloud configuration issues are likely the number one kind of threat factor for Attackers. And so we're able to not only help organizations identify those, but then closed them down in real time. >>Yeah, it's interesting because we hear that all the time. If there's a breach and if if they w s involved often it's a it's a configuration. You know, somebody left the door open basically, and and it really drives something you were talking about. Ravi is the increasing important of automation, um, and and using big data. And you talked about this kind of horizontal tele metrics and analytics because without automation, these systems are just getting too big and and crazy for people Thio manage by themselves. But more importantly, it's kind of a signal to noise issue when you just have so much traffic, right? You really need help surfacing. That signals you said so that your pro actively going after the things that matter and not being just drowned in the things that don't matter. Ravi, you're shaking your head up and down. I think you probably agree with this point. >>Yeah, yeah, Jeff and definitely agree with you. And what you're saying is truly automation is a way off dealing with problems at scale. When when you have hundreds of accounts and that spans across, you know, multiple cloud service providers, it truly becomes a challenge to establish a particular security baseline and continue to adhere to it. And you wanna have some automation capabilities in place to be able to react, you know, and respond to it in real time versus it goes down to a ticketing system and some person is having to do you know, some triaging and then somebody else is bringing in this, you know, solution that they implement. And eventually, by the time you're systems could be compromised. So ah, good way of doing this and is leveraging automation and orchestration is just a capability that enhances your operational efficiency by streamlining summed Emmanuel in repetitive tasks, there's numerous examples off what automation and orchestration could do, but from a security context. Some of the key examples are automated security operations, automated identity provisioning, automated incident response, etcetera. One particular use case that Deloitte identified and built a solution around is the identification and also the automated remediation of Cloud security. Miss Consideration. This is a common occurrence and use case we see across all our customers. So the way in the context of a double as the way we did this is we built a event driven architectures that's leveraging eight of us contribute config service that monitors the baselines of these different services. Azzan. When it detects address from the baseline, it fires often alert. That's picked up by the Cloudwatch event service that's ultimately feeding it upstream into our workflow that leverages event bridge service. From there, the workflow goes into our policy engine, which is a database that has a collection off hundreds of rules that we put together uh, compliance activities. It also matched maps back to, ah, large set of controls frameworks so that this is applicable to any industry and customer, and then, based on the violation that has occurred, are based on the mis configuration and the service. The appropriate lambda function is deployed and that Lambda is actually, uh, performing the corrective actions or the remediation actions while, you know, it might seem like a lot. But all this is happening in near real time because it is leveraging native services. And some of the key benefits that our customers see is truly the ease of implementation because it's all native services on either worse and then it can scale and, uh, cover any additional eight of those accounts as the organization continues to scale on. One key benefit is we also provide a dashboard that provides visibility into one of the top violations that are occurring in your ecosystem. How many times a particular lambda function was set off to go correct that situation. Ultimately, that that kind of view is informing. Thea Outfront processes off developing secure infrastructure as code and then also, you know, correcting the security guard rails that that might have drifted over time. Eso That's how we've been helping our customers and this particular solution that we developed. It's called the Lloyd Fortress, and it provides coverage across all the major cloud service providers. >>Yeah, that's a great summary. And I'm sure you have huge demand for that because he's mis configuration things. We hear about him all the time and I want to give you the last word for we sign off. You know, it's easy to sit on the side of the desk and say, Yeah, we got a big security and everything and you got to be thinking about security from from the time you're in, in development all the way through, obviously deployment and production and all the minutes I wonder if you could share. You know, you're on that side of the glass and you're out there doing this every day. Just a couple of you know, kind of high level thoughts about how people need to make sure they're thinking about security not only in 2020 but but really looking down the like another road. >>Yeah, yeah, sure thing. So, you know, first and foremost, it's important to align. Uh, any transformation initiative, including your trust to business objectives. Right? Don't Don't let this come off as another I t. Security project, right? Make sure that, um, you're aligning to business priorities, whether it be, you know, pushing to the cloud, uh, for scalability and efficiency, whether it's digital transformation initiative, whether it be a new consumer identity, Uh uh, an authorization, um, capability of china built. Make sure that you're aligning to those business objectives and baking in and aligning to those guiding principles of zero trust from the start. Right, Because that will ultimately help drive consensus across the various stakeholder groups within the organization. Uh, and build trust, if you will, in the zero trust journey. Um, one other thing I would say is focus on the fundamentals. Very often, organizations struggle with some. You know what we call general cyber hygiene capabilities. That being, you know, I t asset management and data classifications, data governance. Um, to really fully appreciate the benefits of zero trust. It's important to kind of get some of those table six, right? Right. So you have to understand, you know what assets you have, what the criticality of those assets are? What business processes air driven by those assets. Um, what your data criticality is how it should be classified intact throughout the ecosystem so that you could really enforce, you know, tag based policy, uh, decisions within, within the control stack. Right. And then finally, in order to really push the needle on automation orchestration, make sure that you're using technology that integrate with each other, right? So taken a p I driven approach so that you have the ability to integrate some of these heterogeneous, um, security controls and drive some level of automation and orchestration in order to enhance your your efficiency along the journey. Right. So those were just some kind of lessons learned about some of the things that we would, uh, you know, tell our clients to keep in mind as they go down the adoption journey. >>That's a great That's a great summary s So we're gonna have to leave it there. But Andrew Robbie, thank you very much for sharing your insight and and again, you know, supporting this This move to zero trust because that's really the way it's got to be as we continue to go forward. So thanks again and enjoy the rest of your reinvent. >>Yeah, absolutely. Thanks for your time. >>All right. He's Andrew. He's Robbie. I'm Jeff. You're watching the Cube from AWS reinvent 2020. Thanks for watching. See you next time.