>> Narrator: theCUBE presents Ignite 22. Brought to you by Palo Alto Networks. >> Hey, welcome back to Las Vegas. Lisa Martin here with Dave Vellante. This is day two of theCUBE's coverage of Palo Alto Ignite 2022. Dave we're just talking about how many times we're in Vegas. And we were here two weeks ago with our guest who's back in Alumni. And it's a blur, right? >> It's true, I lost count. Luckily I'm not flying red eye tonight. So that's good. >> I'm impressed. >> Excited about that. >> Yeah >> I'm actually going to enjoy the, nightlife here for a period of time. And, you know, we were at re-Invent. >> Yeah. >> And what a difference. This is nice and relaxed. You have time. You're not getting bumped in the hallway. >> Right. >> A lot of time for learning. So it's been great show. >> It's been great. And one of the things that we've been talking about is the supply chain. Securing the modern software supply chain is really complicated. We've got an Alumni back with us, to talk about what Palo Alto is doing in that respect. Ankur Shah joins us. The SVP and GM of Cloud Security at Palo Alto Networks. Welcome back. >> Yeah, happy to be back. Good to see you again. Dave and Lisa. >> It's been two long weeks. >> Ankur: I know. It's been two weeks, yeah >> Dave: It's kind of crazy. I mean, ReInvent really was a blur. And it's like you had everything coming at you. And there was obviously a big chunk of security, but you. It was just so much to absorb. >> Yeah. >> Right? >> Yeah, and I couldn't get into any of the sessions versus at Ignite. I mean, you could, you could learn a lot. To your point Dave. And 70,000 people versus 3000 in change. Big difference. >> Dave: Yeah. >> Lisa: Huge difference. >> Yeah. >> Lisa: Huge difference. So we touched on the Cider acquisition. >> Ankur: Yeah. >> Which was announced the intent to acquire last month. Let's dig into a little bit more of that, and then some of the great things that had been announced. >> Ankur: Yeah. >> In the last couple of days. >> Oh, absolutely. So, this is something that we have been marinating for last nine months. Thinking about how best to secure supply chain. And this is software supply chain. The modern application software is fairly complex. You know, back in the days when I was a developer, it was a simple three tier application. Ship the code once a year, et cetera. But now with microservices, new architectures, Kubernetes Public Cloud, we talked about this. It's getting super complicated, and the customers are really worried about securing their entire supply chain. Which is nothing but the software pipeline. And so we started looking at a whole bunch of companies and Cider really stood out. I mean, they had, they were the innovators in this space. Very early days, we've seen supply chain attack. But there hasn't been a really good and strong solution in that space. And Cider just delivered that incredible team. Great technology, super excited about what that integration will look like. in the coming quarters. >> What do we need to know about them? I mean, I'll be honest with you, I wasn't familiar with Cider until I saw you guys made the announcement of the intent to acquire them. What, what should we know about them? Why Cider? What was it that attracted you to them? >> Ankur: Yeah, so, you know, we have a history of technology acquisitions as you know, over the last four years, just in the public cloud. We acquire over half a a dozen companies, small and large. And typically we are always looking for companies who have the next gen technology available. Technology that is more in tune with how application software is going to look like in future. So we're not always going after companies that are making you know, tens of hundreds of millions of dollars in a year and all. We're looking for the right tech. The future. And that's what we found in Cider. Like they have a really strong application security background. And AppSec just broadly speaking, supply chain is part of it. But application security, just broadly speaking, is right for disruption. You've got a lot of vendors, who have been around for like last two decades. Old school stuff, lots and lots of false positives. So we've been bolstering, beefing up our portfolio in the application security space. And Cider really fits right nicely into it. Because it can like I said, secure a lot of technology and tooling, that software developers use as part of their software supply chain. So, great founding team, great technology. It was a perfect fit. >> Talk about integration. We spoke with Nikesh yesterday, with Nir, with a whole bunch of folks. Lee this morning. BJ yesterday as well. And one of the things that seems to stick out at me. With all the shows that we do, is the focus that Palo Alto has on ensuring that it's making the right acquisitions. But that it's the integration, is really seems to be like leading part of the strategy. That seems to be a little bit of a differentiator to me. >> Yeah, it absolutely is. There are two ways to integrate a technology into an existing platform. And Prisma Cloud is a platform as you know. Code-to-cloud, CNAPP platform as we call it. One is just kind of slotted in, put the whole thing in a box. And that's basically making one plus one equal to two. We're looking for high leverage in integrations, whereby once that integration comes along. It makes the rest of the platform even better and superior. It makes that technology look even better. So that's why there's a lot of focus on ensuring that we're delivering the right type of integration, that delivers instant customer value. And that makes the overall platform even superior. So customers don't feel like hey, like there's just one more add-on, on top of the other thing. >> Lisa: Right, not a bolt on. >> So that's why there's a lot of focus on that. Getting the strategy nailed. Because the founding teams generally have a preconceived notion about how the world looks like. Then they understand how Prisma cloud and Palo Alto Networks think about it. And then, we sort of merge the two ideas, and build something that's incredible. So I am, we're spending a lot of time in integration. That honeymoon phase of like, let's high five acquisitions done, that's over. Now it's the grinding work of actually getting this right. And you know, getting hundreds and thousands of customers. >> Well I like how you don't have the private equity mentality. It's not about EBITDA and cashflow. We'll take care of that. >> Ankur: Yeah. >> You know, it's about getting that integration. Getting that flywheel effect, inside the platform. You know, we said one plus one equals, maybe even more than two. Can you explain Prisma Cloud Secrets Security? What is that all about? What do we need to know about that? >> Ankur: Absolutely. So, the developers, you know generally store some stuff in the code repo for their automation work to build application. And that thing, the API keys or as Secrets are stored in code repo. It shouldn't be. Or even if they are, they should be encrypted, or locked down and things of that nature. But, you know, the need for speed trumps everything else. Developers want to go fast. And sometimes they're like, okay well. I guess my application needs this particular, you know API access token or secret. I'm just going to stick it in the code. Now the challenge with that is that, if somebody gets hold of your code repo. Now not only is your code repo, which has all your sensitive data. Your code is the life and blood of a technology company. That's in trouble. But also those secrets and API access keys can be used to log into your cloud accounts. And there you may have sensitive customer data. Everything that you have as a technology company stored in that public cloud accounts. So that's the worry. It's usually the initial access for the kill chain. Because that's where the attacks start. Let me get the secret, let me get the API access key. And let me see what I can do in public cloud. So we are now giving customers the visibility into where the secrets are stored. More importantly, it just right there on developer's face. In the code repo as they're checking in the code. They say why, hey, there's a secret here. Are you sure you want to, you want to keep it like this, no? Okay, well then you can either encrypt it, or just get rid of it. So we're making, we're bringing security where the developers are in their code repo, et cetera. >> So I can see a lot of developers saying, yeah, go ahead, encrypt it. So I don't have to do anything else, you know, extra. It's almost, the analogy is a very small you know, version of this. Its like, use a password manager. You store all your passwords in your contacts on your phone, right? I mean, somebody gets a hold of your contacts, you're screwed. >> Ankur: That's exactly right. >> And so, but I could still see a lot of developers say, check in the box. Say, yeah just encrypt it, leave it there. But you're saying best practice is to not to do that, right? >> Yeah, usually you're not supposed to, you know, store all your secrets, et cetera in code repo to begin with. But if you do, you know, you use a key wall like technology to really encrypt it and store it in a secret manner, yeah. >> Dave: There's an old saying, bad user behavior trump's great security every time. >> Ankur: Every time. >> But this is an example where, we know you're going to have bad behavior. So we're going to protect the bad behavior. >> Yeah, and actually, sorry Lisa, just to that point. The bad user behavior trumps good security. The classic example, this happened three weeks ago. Three, four weeks ago, where Dropbox, one of the file sharing companies there. 120 plus code repos were exposed. And the way their attack started, was a simple social engineering attack. Bad user behavior. There was an email, hey, like your passwords are updated for your, you know, this code plugin. Can you enter the password? And boom, now you have access to the code repo. And now if you have secrets inside of it, now, you know all bets are off. >> Are there hard-coded secrets versus like, I mean, like I think like, like you were saying, Dave. Like usernames and passwords and tokens, versus like soft coded secrets. >> Ankur: It's, I think it, this is more so two forms of it, you know. The most primary one is what we call the API access keys. And this keys are used to access cloud accounts, workloads and things of that nature. But there are actually secret secrets. Could be database login passwords, et cetera. The application is using it to spin up databases. Now, you know, you have access to the data stores. Any other application, there's a login password, all of that stuff. So it's less about the user password, but more the application and databases and things of that nature. >> Dave: So again, and, again, everybody should be using password managers. But when you use a password manager, it's going to give you a long list of passwords, that are either been compromised or are weak. And you just go uh, okay. So can you help? How do you help customers identify what the high risk? You know, API, you know, access are versus those ones that they may not have to worry about. >> Ankur: Yeah, look. You know, secrets aside. Risk prioritization is one of the biggest topics that our customers have across the board, in cloud security. All the security vendors are really, really good at one thing, generating alerts. Everybody does it. They generate an alert. You know, your ring camera, if you've got one. I mean this pop up every day, like every minute rather. Well like can you prioritize it for me? What should I really look at it? So that's a number one thing. What Prisma Cloud does is, you know, contextualize it. What the real risk is? They can tell you like, hey, here's the kill chain. If this thing, you know, goes to public internet. These are the potential exposures that you have. So we provide a prioritized risk of critical alerts that customers have to take care of before they can start taking care of more hygiene type of stuff, right? So that's how we do it. Like we leverage a lot of technology. We apply a lot of context. We tell you like, hey, this code repo is not protected by multifactor authentication. And then there's a secret inside. Are you sure, you know, you don't want to fix it? So that's what we do. But it's a great question. Top of mind for all our customers. And that's how we think about it across the board. Versus generating just alerts all the time. >> Dave: Is the strategy, Because we all know phishing is the sort of most, you know obvious way to. It's the top way in which people get hacked. >> Ankur: Yeah. >> Is your strategy essentially to say. Okay we know that's going to happen, so we're going to try to protect it at the back end. How much of the, maybe it's an industry question. more so than just a Palo Alto specifically, How much emphasis is do you think the industry is taking or should be taking on stopping that, you know that those phishing attacks? Because if that's the number one problem you know, maybe that's where we should be starting. >> Yeah, it's a great question. It's typically the initial vector, for a lot of attacks to your point. But there is one thing that technology and AI cannot solve. Which is the user behavior, to your point. Like we can't get into the heads of the user. I mean, you can train them, you can do everything. You can't prevent somebody from clicking a button. Of course there's technology out there for email security that does that. But your point is, right, it's going to happen. Now what do you do? How do you protect your applications, your crown jewel? You know, whether it's in the cloud or it's in the code repo. So a lot of what we are trying to do in code security, or cloud security, or in general at Palo Alto Networks. is to protect those crown jewel. Because we can't prevent somebody from doing something. User behavior is hard to change. >> Dave: So it's almost like, okay, you left your front door open. Somebody's going to walk in, but oh, they walk into a vault. And they don't know where to go. And there's nowhere they can- >> Ankur: Yeah. >> You know, nothing they can take. They can't get to the silverware or the jewelry. >> I think that's it, yeah. >> What are some of the things, like as we look at, we're wrapping up calendar year '22 heading into '23. That customers can look to Palo Alto Networks to help them achieve? One of the things that we talked about with Nikesh and Niri yesterday, is consolidation. Like, and you guys just did a recent, survey. >> Ankur: Yeah. >> About the state of Cyber, and organizations on average have 366 apps in their environment. 31 security tools, 30 to 50 security tools. >> Ankur: Yeah. >> Consolidation is really key there. What are some of the things that you are excited about to deliver to customers where consolidation is concerned? >> Ankur: Yeah. >> Where software supply chain security is concerned in the next year? >> Yeah, absolutely. Look, there are over 3000 security vendors. And this can be, I mean you talked about average customer having 300. I was talking to a CSO, this was last year for one of the largest financial institution I go, "How many security tools do you have?" He got 120. I said, why? He goes, we have a no vendor left behind policy. >> Wow. >> It's crazy. >> Dave: What? >> Obviously he was joking, but it's crazy, right? Like that's how the CSO's are. >> Dave: I mean, he was kidding. >> Yeah. >> Dave: But recognized that. Wow. >> Yeah, and, this is the state the security industry is in. And our mission has been, and Lee and Nikesh and Niri talked about it. Is just platforms, will platforms take moonshots, things long term. And especially the, macro headwinds that we're seeing. We're hearing more and more from the customers that, look we're not going to buy point product. Then we got to buy another product that stitches it all together. We need platforms, whether it's for zero trust, Prisma SaaS, whether it's cloud. Prisma cloud or for your sock transformation. You know XIM and Cortex line of products. So I think you're going to see more and more of that in 2023. I'm confident in that. >> We heard from Lee today, the world record's 400. >> Yes. >> Yeah. >> That's crazy. >> He's going for it. He's got a ways to go. 120 He's got to... >> Maybe he wasn't, that guy wasn't kidding about his no vendor left behind policy. (laughing) Do you have Ankur, a favorite customer story that really articulates the value of what Palo Alto delivers and continues to. You know, 'cause one of the things that Nikesh said in his keynote was that you know, security's a data problem. Well every company these days, in every industry has to be a data company. But really what they need to be able to be is a secured data company. >> Ankur: Yeah. >> How are you guys enabling that? >> Oh, absolutely. Look, many customer examples come to mind, but speaking of data. You know, one of, some of our largest customers who are protecting their PCI workers where they have sensitive data. They're using for example, Prisma Cloud, to ensure that malicious attacks don't happen. And those workloads are used for credit card processing. They're processing tens of thousands of credit card transactions a second. And make sure that nobody gets hold of that. And that's why they have to make sure that nobody is. No attacker is trying to get hold of the sensitive data, to your point, So we have customers across financial services, media and entertainment technology company. Where we are helping them go as fast as possible in public cloud. Go through digital transformation, by securing their applications. >> Dave: What's the T-shirt say? I see code. >> Oh yeah. >> Dave: Secure from Code to Cloud. >> Lisa: Shift Happens. >> Shift Happens, Secrets from Code to Cloud. >> I love that. I was looking at that, going back to that, what's next in cyber survey? >> Ankur: Yeah. >> It said 74% of respondents, and I believe there was 1300 CIO's, CXO's that were surveyed globally. Where they said security is slowing down DevOps. Can customers look to Palo Alto Networks to help them? >> Ankur: Be enablers? >> Yes. >> Yeah, hundred percent. Look, the conversation over the last few years have changed now. Security used to say like, oh, I don't know about these people who are building applications. The DevOps is like security slowing down. I think there's an opportunity for companies like Palo Alto Networks, to build the bridge between the two. And the way we do it is make the securities easy, simple and not super intrusive. Where developers have to do a natural thing. And one part of it, and I talked about it earlier, is bring security where the developers are. In their code repo, in their IDE. Make it super simple. Don't make them do unnatural things. And it just, this is no different from changing the behavior of our kids. Right? Like you make them do unnatural things, they're not going to do it. But if it is part of their regular, you know, day-to-day operating procedures. I think they're going to be more open to change. Yeah. So I think it's possible. And Palo Alto has a huge responsibility to bridge the divide between the apps team, or the DevOps and the security organization. >> Lisa: Lots of great stuff to come. We thank you so much for coming back, two weeks. Only being on two weeks ago. We appreciate your insights, learning more information. It's great to see you at Palo Alto Ignite. And we'll have to have you back on. 'Cause we know that there's so much more to follow with respect to what you're doing. And shifting left, shift happens. >> Awesome. Lisa, Dave, thank you so much. It's been a pleasure. >> Lisa: Thank you so much. For Ankur Shah and Dave Vellante. I'm Lisa Martin. You're watching theCUBE. The leader in live and emerging tech coverage.

(bright music) >> Welcome back everyone. theCube's live coverage here. Day two, of two sets, three days of theCube coverage here at VMware Explore. This is our 12th year covering VMware's annual conference, formerly called VM World. I'm John Furrier, with Dave Vellante. We'd love seeing the progress and we've got great security comes Tom Gill, senior vices, president general manager, networking and advanced security business group at VMware. Great to see you. Thanks for coming on. >> Thanks. for having me. >> Yeah, really happy we could have you on. >> I think this is my sixth edition on the theCube. Do I get frequent flyer points or anything? >> Yeah. >> You first get the VIP badge. We'll make that happen. You can start getting credits. >> Okay, there we go. >> We won't interrupt you. Seriously, you got a great story in security here. The security story is kind of embedded everywhere, so it's not called out and blown up and talked specifically about on stage. It's kind of in all the narratives in the VM World for this year. But you guys have an amazing security story. So let's just step back and to set context. Tell us the security story for what's going on here at VMware and what that means to this supercloud, multi-cloud and ongoing innovation with VMware. >> Yeah, sure thing. So probably the first thing I'll point out is that security's not just built in at VMware. It's built differently. So, we're not just taking existing security controls and cut and pasting them into our software. But we can do things because of our platform, because of the virtualization layer that you really can't do with other security tools. And where we're very, very focused is what we call lateral security or East-West movement of an attacker. 'Cause frankly, that's the name of the game these days. Attackers, you've got to assume that they're already in your network. Already assume that they're there. Then how do we make it hard for them to get to the stuff that you really want? Which is the data that they're going after. And that's where we really should. >> All right. So we've been talking a lot, coming into VMware Explore, and here, the event. About two things. Security, as a state. >> Yeah. >> I'm secure right now. >> Yeah. >> Or I think I'm secure right now, even though someone might be in my network or in my environment. To the notion of being defensible. >> Yeah. >> Meaning I have to defend and be ready at a moment's notice to attack, fight, push back, red team, blue team. Whatever you're going to call it. But something's happening. I got to be able to defend. >> Yeah. So what you're talking about is the principle of Zero Trust. When I first started doing security, the model was we have a perimeter. And everything on one side of the perimeter is dirty, ugly, old internet. And everything on this side, known good, trusted. What could possibly go wrong. And I think we've seen that no matter how good you make that perimeter, bad guys find a way in. So Zero Trust says, you know what? Let's just assume they're already in. Let's assume they're there. How do we make it hard for them to move around within the infrastructure and get to the really valuable assets? 'Cause for example, if they bust into your laptop, you click on a link and they get code running on your machine. They might find some interesting things on your machine. But they're not going to find 250 million credit cards. >> Right. >> Or the script of a new movie or the super secret aircraft plans. That lives in a database somewhere. And so it's that movement from your laptop to that database. That's where the damage is done and that's where VMware shines. >> So if they don't have the right to get to that database, they're not in. >> And it's not even just the right. So they're so clever and so sneaky that they'll steal a credential off your machine, go to another machine, steal a credential off of that. So, it's like they have the key to unlock each one of these doors. And we've gotten good enough where we can look at that lateral movement, even though it has a credential and a key, we're like wait a minute. That's not a real CIS Admin making a change. That's ransomware. And that's where you. >> You have to earn your way in. >> That's right. That's right. Yeah. >> And we're all kinds of configuration errors. But also some user problems. I've heard one story where there's so many passwords and username and passwords and systems that the bad guys scour, the dark web for passwords that have been exposed. >> Correct. >> And go test them against different accounts. Oh one hit over here. >> Correct. >> And people don't change their passwords all the time. >> Correct. >> That's a known vector. >> Just the idea that users are going to be perfect and never make a mistake. How long have we been doing this? Humans are the weakest link. So people are going to make mistakes. Attackers are going to be in. Here's another way of thinking about it. Remember log4j? Remember that whole fiasco? Remember that was at Christmas time. That was nine months ago. And whoever came up with that vulnerability, they basically had a skeleton key that could access every network on the planet. I don't know if a single customer that said, "Oh yeah, I wasn't impacted by log4j." So here's some organized entity had access to every network on the planet. What was the big breach? What was that movie script that got stolen? So there wasn't one, right? We haven't heard anything. So the point is, the goal of attackers is to get in and stay in. Imagine someone breaks into your house, steals your laptop and runs. That's a breach. Imagine someone breaks into your house and stays for nine months. It's untenable, in the real world, right? >> Right. >> We don't know in there, hiding in the closet. >> They're still in. >> They're watching everything. >> Hiding in your closet, exactly. >> Moving around, nibbling on your cookies. >> Drinking your beer. >> Yeah. >> So let's talk about how this translates into the new reality of cloud-native. Because now you hear about automated pentesting is a new hot thing right now. You got antivirus on data is hot within APIs, for instance. >> Yeah. >> API security. So all kinds of new hot areas. Cloud-native is very iterative. You know, you can't do a pentest every week. >> Right. >> You got to do it every second. >> So this is where it's going. It's not so much simulation. It's actually real testing. >> Right. Right. >> How do you view that? How does that fit into this? 'cause that seems like a good direction to me. >> Yeah. If it's right in, and you were talking to my buddy, Ahjay, earlier about what VMware can do to help our customers build cloud native applications with Tanzu. My team is focused on how do we secure those applications? So where VMware wants to be the best in the world is securing these applications from within. Looking at the individual piece parts and how they talk to each other and figuring out, wait a minute, that should never happen. By almost having an x-ray machine on the innards of the application. So we do it for both for VMs and for container based applications. So traditional apps are VM based. Modern apps are container based. And we have a slightly different insertion mechanism. It's the same idea. So for VMs, we do it with a hypervisor with NSX. We see all the inner workings. In a container world we have this thing called a service mesh that lets us look at each little snippet of code and how they talk to each other. And once you can see that stuff, then you can actually apply. It's almost like common sense logic of like, wait a minute. This API is giving back credit card numbers and it gives five an hour. All of a sudden, it's now asking for 20,000 or a million credit cards. That doesn't make any sense. The anomalies stick out like a sore thumb. If you can see them. At VMware, our unique focus in the infrastructure is that we can see each one of these little transactions and understand the conversation. That's what makes us so good at that East-West or lateral security. >> You don't belong in this room, get out or that that's some weird call from an in memory database, something over here. >> Exactly. Where other security solutions won't even see that. It's not like there algorithms aren't as good as ours or better or worse. It's the access to the data. We see the inner plumbing of the app and therefore we can protect the app from. >> And there's another dimension that I want to get in the table here. 'Cause to my knowledge only AWS, Google, I believe Microsoft and Alibaba and VMware have this. >> Correct >> It's Nitro. The equivalent of a Nitro. >> Yes. >> Project Monterey. >> Yeah. >> That's unique. It's the future of computing architectures. Everybody needs a Nitro. I've written about this. >> Yeah. >> Right. So explain your version. >> Yeah. >> It's now real. >> Yeah. >> It's now in the market, right? >> Yeah. >> Or soon will be. >> Here's our mission. >> Salient aspects. >> Yeah. Here's our mission of VMware. Is that we want to make every one of our enterprise customers. We want their private cloud to be as nimble, as agile, as efficient as the public cloud. >> And secure. >> And secure. In fact, I'll argue, we can make it actually more secure because we're thinking about putting security everywhere in this infrastructure. Not just on the edges of it. Okay. How do we go on that journey? As you pointed out, the public cloud providers realized five years ago that the right way to build computers was not just a CPU and a graphics process unit, GPU. But there's this third thing that the industry's calling a DPU, data processing unit. And so there's kind of three pieces of a computer. And the DPU is sometimes called a Smartnic. It's the network interface card. It does all that network handling and analytics and it takes it off the CPU. So they've been building and deploying those systems themselves. That's what Nitro is. And so we have been working with the major Silicon vendors to bring that architecture to everybody. So with vSphere 8, we have the ability to take the network processing, that East-West inspection I talked about, take it off of the CPU and put it into this dedicated processing element called the DPU and free up the CPU to run the applications that Ahjay and team are building. >> So no performance degradation at all? >> Correct. To CPU offload. >> So even the opposite, right? I mean you're running it basically Bare Metal speeds. >> Yes, yes and yes. >> And you're also isolating the storage from the security, the management, and. >> There's an isolation angle to this, which is that firewall, that we're putting everywhere. Not just that the perimeter, but we put it in each little piece of the server is running when it runs on one of these DPUs it's a different memory space. So even if an attacker gets to root in the OS, they it's very, very, never say never, but it's very difficult. >> So who has access to that resource? >> Pretty much just the infrastructure layer, the cloud provider. So it's Amazon, Google, Microsoft, and the enterprise. >> Application can't get in. >> Can't get in there. Cause you would've to literally bridge from one memory space to another. Never say never, but it would be very. >> But it hasn't earned the trust to get. >> It's more than barbwire. It's multiple walls. >> Yes. And it's like an air gap. It puts an air gap in the server itself so that if the server is compromised, it's not going to get into the network. Really powerful. >> What's the big thing that you're seeing with this supercloud transition. We're seeing multi-cloud and this new, not just SaaS hosted on the cloud. >> Yeah. >> You're seeing a much different dynamic of, combination of large scale CapEx, cloud-native, and then now cloud-native drills on premises and edge. Kind of changing what a cloud looks like if the cloud's on a cloud. >> Yeah. >> So we're the customer, I'm building on a cloud and I have on premise stuff. So, I'm getting scale CapEx relief from the hyperscalers. >> I think there's an important nuance on what you're talking about. Which is in the early days of the cloud customers. Remember those first skepticism? Oh, it'll never work. Oh, that's consumer grade. Oh, that's not really going to work. Oh some people realize. >> It's not secure. >> Yeah. It's not secure. >> That one's like, no, no, no it's secure. It works. And it's good. So then there was this sort of over rush. Let's put everything on the cloud. And I had a lot of customers that took VM based applications said, I'm going to move those onto the cloud. You got to take them all apart, put them on the cloud and put them all back together again. And little tiny details like changing an IP address. It's actually much harder than it looks. So my argument is, for existing workloads for VM based workloads, we are VMware. We're so good at running VM based workloads. And now we run them on anybody's cloud. So whether it's your east coast data center, your west coast data center, Amazon, Google, Microsoft, Alibaba, IBM keep going. We pretty much every. >> And the benefit of the customer is what. >> You can literally VMotion and just pick it up and move it from private to public, public to private, private to public, Back and forth. >> Remember when we called Vmotion BS, years ago? >> Yeah. Yeah. >> VMotion is powerful. >> We were very skeptical. We're like, that'll never happen. I mean we were. This supposed to be pat ourselves on the back. >> Well because alchemy. It seems like what you can't possibly do that. And now we do it across clouds. So it's not quite VMotion, but it's the same idea. You can just move these things over. I have one customer that had a production data center in the Ukraine. Things got super tense, super fast and they had to go from their private cloud data center in the Ukraine, to a public cloud data center out of harm's way. They did it over a weekend. 48 hours. If you've ever migrated a data center, that's usually six months. Right. And a lot of heartburn and a lot of angst. Boop. They just drag and dropped and moved it on over. That's the power of what we call the cloud operating model. And you can only do this when all your infrastructures defined in software. If you're relying on hardware, load balancers, hardware, firewalls, you can't move those. They're like a boat anchor. You're stuck with them. And by the way, they're really, really expensive. And by the way, they eat a lot of power. So that was an architecture from the 90's. In the cloud operating model your data center. And this comes back to what you were talking about is just racks and racks of X86 with these magic DPUs, or smart nics, to make any individual node go blisteringly fast and do all the functions that you used to do in network appliances. >> We just had Ahjay taking us to school, and everyone else to school on applications, middleware, abstraction layer. And Kit Culbert was also talking about this across cloud. We're talking supercloud, super pass. If this continues to happen, which we would think it will happen. What does the security posture look like? It feels to me, and again, this is your wheelhouse. If supercloud happens with this kind of past layer where there's vMotioning going on. All kinds of spanning applications and data across environments. >> Yeah. Assume there's an operating system working on behind the scenes. >> Right. >> What's the security posture in all this? >> Yeah. So remember my narrative about the bad guys are getting in and they're moving around and they're so sneaky that they're using legitimate pathways. The only way to stop that stuff, is you've got to understand it at what we call Layer 7. At the application layer. Trying to do security to the infrastructure layer. It was interesting 20 years ago, kind of less interesting 10 years ago. And now it's becoming irrelevant because the infrastructure is oftentimes not even visible. It's buried in some cloud provider. So Layer 7 understanding, application awareness, understanding the APIs and reading the content. That's the name of the game in security. That's what we've been focused on. Nothing to do with the infrastructure. >> And where's the progress bar on that paradigm. One to ten. Ten being everyone's doing it. >> Right now. Well, okay. So we as a vendor can do this today. All the stuff I talked about, reading APIs, understanding the individual services looking at, Hey, wait a minute this credit card anomalies, that's all shipping production code. Where is it in customer adoption life cycle? Early days 10%. So there's a whole lot of headroom for people to understand, Hey, I can put these controls in place. They're software based. They don't require appliances. It's Layer 7, so it has contextual awareness and it's works on every single cloud. >> We talked about the pandemic being an accelerator. It really was a catalyst to really rethink. Remember we used to talk about Pat as a security do over. He's like, yes, if it's the last thing I do, I'm going to fix security. Well, he decided to go try to fix Intel instead. >> He's getting some help from the government. >> But it seems like CISOs have totally rethought their security strategy. And at least in part, as a function of the pandemic. >> When I started at VMware four years ago, Pat sat me down in his office and he said to me what he said to you, which is like, "Tom," he said, "I feel like we have fundamentally changed servers. We fundamentally change storage. We fundamentally change networking. The last piece of the puzzle of security. I want you to go fundamentally change it." And I'll argue that the work that we're doing with this horizontal security, understanding the lateral movement. East- West inspection. It fundamentally changes how security works. It's got nothing to do with firewalls. It's got nothing to do with Endpoint. It's a unique capability that VMware is uniquely suited to deliver on. And so Pat, thanks for the mission. We delivered it and it's available now. >> Those WET web applications firewall for instance are around, I mean. But to your point, the perimeter's gone. >> Exactly. >> And so you got to get, there's no perimeter. so it's a surface area problem. >> Correct. And access. And entry. >> Correct. >> They're entering here easy from some manual error, or misconfiguration or bad password that shouldn't be there. They're in. >> Think about it this way. You put the front door of your house, you put a big strong door and a big lock. That's a firewall. Bad guys come in the window. >> And then the windows open. With a ladder. >> Oh my God. Cause it's hot, bad user behavior trumps good security every time. >> And then they move around room to room. We're the room to room people. We see each little piece of the thing. Wait, that shouldn't happen. Right. >> I want to get you a question that we've been seeing and maybe we're early on this or it might be just a false data point. A lot of CSOs and we're talking to are, and people in industry in the customer environment are looking at CISOs and CSOs, two roles. Chief information security officer, and then chief security officer. Amazon, actually Steven Schmidt is now CSO at Reinforce. They actually called that out. And the interesting point that he made, we had some other situations that verified this, is that physical security is now tied to online, to your point about the service area. If I get a password, I still got the keys to the physical goods too. >> Right. So physical security, whether it's warehouse for them or store or retail. Digital is coming in there. >> Yeah. So is there a CISO anymore? Is it just CSO? What's the role? Or are there two roles you see that evolving? Or is that just circumstance. >> I think it's just one. And I think that the stakes are incredibly high in security. Just look at the impact that these security attacks are having on. Companies get taken down. Equifax market cap was cut 80% with a security breach. So security's gone from being sort of a nuisance to being something that can impact your whole kind of business operation. And then there's a whole nother domain where politics get involved. It determines the fate of nations. I know that sounds grand, but it's true. And so companies care so much about it they're looking for one leader, one throat to choke. One person that's going to lead security in the virtual domain, in the physical domain, in the cyber domain, in the actual. >> I mean, you mention that, but I mean, you look at Ukraine. I mean that cyber is a component of that war. I mean, it's very clear. I mean, that's new. We've never seen. this. >> And in my opinion, the stuff that we see happening in the Ukraine is small potatoes compared to what could happen. >> Yeah. >> So the US, we have a policy of strategic deterrence. Where we develop some of the most sophisticated cyber weapons in the world. We don't use them. And we hope never to use them. Because our adversaries, who could do stuff like, I don't know, wipe out every bank account in North America. Or turn off the lights in New York City. They know that if they were to do something like that, we could do something back. >> This is the red line conversation I want to go there. So, I had this discussion with Robert Gates in 2016 and he said, "We have a lot more to lose." Which is really your point. >> So this brand. >> I agree that there's to have freedom and liberty, you got to strike back with divorce. And that's been our way to balance things out. But with cyber, the red line, people are already in banks. So they're are operating below the red line line. Red line meaning before we know you're in there. So do we move the red line down because, hey, Sony got hacked. The movie. Because they don't have their own militia. >> Yeah. >> If their were physical troops on the shores of LA breaking into the file cabinets. The government would've intervened. >> I agree with you that it creates tension for us in the US because our adversaries don't have the clear delineation between public and private sector. Here you're very, very clear if you're working for the government. Or you work for an private entity. There's no ambiguity on that. >> Collaboration, Tom, and the vendor community. I mean, we've seen efforts to try to. >> That's a good question. >> Monetize private data and private reports. >> So at VMware, I'm very proud of the security capabilities we've built. But we also partner with people that I think of as direct competitors. We've got firewall vendors and Endpoint vendors that we work with and integrate. And so coopetition is something that exists. It's hard. Because when you have these kind of competing. So, could we do more? Of course we probably could. But I do think we've done a fair amount of cooperation, data sharing, product integration, et cetera. And as the threats get worse, you'll probably see us continue to do more. >> And the government is going to trying to force that too. >> And the government also drives standards. So let's talk about crypto. Okay. So there's a new form of encryption coming out called processing quantum. >> Quantum. Quantum computers have the potential to crack any crypto cipher we have today. That's bad. Okay. That's not good at all because our whole system is built around these private communications. So the industry is having conversations about crypto agility. How can we put in place the ability to rapidly iterate the ciphers in encryption. So, when the day quantum becomes available, we can change them and stay ahead of these quantum people. >> Well, didn't NIST just put out a quantum proof algo that's being tested right now by the community? >> There's a lot of work around that. Correct. And NIST is taking the lead on this, but Google's working on it. VMware's working on it. We're very, very active in how do we keep ahead of the attackers and the bad guys? Because this quantum thing is a, it's an x-ray machine. It's like a dilithium crystal that can power a whole ship. It's a really, really, really powerful tool. >> Bad things will happen. >> Bad things could happen. >> Well, Tom, great to have you on the theCube. Thanks for coming on. Take the last minute to just give a plug for what's going on for you here at VMWorld this year, just VMware Explore this year. >> Yeah. We announced a bunch of exciting things. We announced enhancements to our NSX family, with our advanced load balancer. With our edge firewall. And they're all in service of one thing, which is helping our customers make their private cloud like the public cloud. So I like to say 0, 0, 0. If you are in the cloud operating model, you have zero proprietary appliances. You have zero tickets to launch a workload. You have zero network taps and Zero Trust built into everything you do. And that's what we're working on. Pushing that further and further. >> Tom Gill, senior vices president, head of the networking at VMware. Thanks for coming on. We do appreciate it. >> Thanks for having us. >> Always getting the security data. That's killer data and security of the two ops that get the most conversations around DevOps and Cloud Native. This is The theCube bringing you all the action here in San Francisco for VMware Explore 2022. I'm John Furrier with Dave Vellante. Thanks for watching. (bright music)

>>Welcome back everyone Cube's live coverage here. Day two, two sets, three days of cube coverage here at VMware Explorer. This is our 12th year covering VMware's annual conference, formally called world I'm Jean Dave ante. We'd love seeing the progress and we've got great security comes Tom Gill, senior rights, president general manager, networking and advanced security business group at VMware. Great to see you. Thanks for coming on. Thanks >>For having me. Yeah, really happy we could have you on, you know, I think, I think this is my sixth edition on the cube. Like, do I get freaking flyer points or anything? >>Yeah, you get first get the VIP badge. We'll make that happen. You can start getting credits. >>Okay. There we go. >>We won't interrupt you. No, seriously, you got a great story in security here. The security story is kind of embedded everywhere, so it's not like called out and, and blown up and talked specifically about on stage. It's kind of in all the narratives in, in the VM world for this year. Yeah. But you guys have an amazing security story. So let's just step back into set context. Tell us the security story for what's going on here at VMware and what that means to this super cloud multi-cloud and ongoing innovation with VMware. Yeah, >>Sure thing. So, so probably the first thing I'll point out is that, that security's not just built in at VMware it's built differently, right? So we're not just taking existing security controls and cut and pasting them into, into our software. But we can do things because of our platform because of the virtualization layer that you really can't do with other security tools and where we're very, very focused is what we call lateral security or east west movement of an attacker. Cuz frankly, that's the name of the game these days. Right? Attackers, you gotta assume that they're already in your network. Okay. Already assume that they're there, then how do we make it hard for them to get to what the, the stuff that you really want, which is the data that they're, they're going after. Right. And that's where we, >>We really should. All right. So we've been talking a lot coming into world VMware Explorer and here the event about two things security as a state. Yeah. I'm secure right now. Yeah. Or I, I think I'm secure right now, even though someone might be in my network or in my environment to the notion of being defensible. Yeah. Meaning I have to defend and be ready at a moment's notice to attack, fight, push back red team, blue team, whatever you're gonna call it, but something's happening. I gotta be a to defend. Yeah. >>So you, what you're talking about is the principle of zero trust. So the, the, when we, when I first started doing security, the model was we have a perimeter and everything on one side of the perimeter is dirty, ugly, old internet and everything on this side known good, trusted what could possibly go wrong. And I think we've seen that no matter how good you make that perimeter, bad guys find a way in. So zero trust says, you know what? Let's just assume they're already in. Let's assume they're there. How do we make it hard for them to move around within the infrastructure and get to the really valuable assets? Cuz for example, if they bust into your laptop, you click on a link and they get code running on your machine. They might find some interesting things on your machine, but they're not gonna find 250 million credit cards. Right. Or the, the script of a new movie or the super secret aircraft plans, right. That lives in a database somewhere. And so it's that movement from your laptop to that database. That's where the damage is done. Yeah. And that's where VMware shines. If they don't >>Have the right to get to that database, they're >>Not >>In and it's not even just the right, like, so they're so clever. And so sneaky that they'll steal a credential off your machine, go to another machine, steal a credential off of that. So it's like they have the key to unlock each one of these doors and we've gotten good enough where we can look at that lateral movement, even though it has a credential and a key where like, wait a minute, that's not a real CIS admin making a change. That's ransomware. Yeah. Right. And that's, that's where we, you have to earn your way in. That's right. That's >>Right. Yeah. And we're all, there's all kinds of configuration errors. But also some, some I'll just user problems. I've heard one story where there's so many passwords and username and passwords and systems that the bad guy's scour, the dark web for passwords that have been exposed. Correct. And go test them against different accounts. Oh one hit over here. Correct. And people don't change their passwords all the time. Correct? Correct. That's a known, known vector. We, >>We just, the idea that users are gonna be perfect and never make mistake. Like how long have we been doing this? Like humans with the weakest link. Right. So, so, so people are gonna make mistakes. Attackers are gonna be in here's another way of thinking about it. Remember log for J. Remember that whole ago, remember that was a Christmas time. That was nine months ago. And whoever came up with that, that vulnerability, they basically had a skeleton key that could access every network on the planet. I don't know if a single customer that was said, oh yeah, I wasn't impacted by log for J. So seers, some organized entity had access to every network on the planet. What was the big breach? What was that movie script that got stolen? So there wasn't one. Right? We haven't heard anything. So the point is the goal of attackers is to get in and stay in. Imagine someone breaks into your house, steals your laptop and runs. That's a breach. Imagine someone breaks into your house and stays for nine months. Like it's untenable, the real world. Right, right. >>We don't even go in there. They're still in there >>Watching your closet. Exactly. Moving around, nibbling on your ni line, your cookies. You know what I mean? Drinking your beer. >>Yeah. So, so let's talk about how this translates into the new reality of cloud native, because now know you hear about, you know, automated pen testing is a, a new hot thing right now you got antivirus on data. Yeah. Is hot is hot within APIs, for instance. Yeah. API security. So all kinds of new hot areas, cloud native is very iterative. You know, you, you can't do a pen test every week. Right. You gotta do it every second. Right. So this is where it's going. It's not so much simulation. It's actually real testing. Right. Right. How do you view that? How does that fit into this? Cuz that seems like a good direction to me. >>Yeah. It, it, it fits right in. And you were talking to my buddy AJ earlier about what VMware can do to help our customers build cloud native applications with, with Zu, my team is focused on how do we secure those applications? So where VMware wants to be the best in the world is securing these applications from within looking at the individual piece parts and how they talk to each other and figuring out, wait a minute. That, that, that, that, that should never happen by like almost having an x-ray machine on the ins of the application. So we do it for both for VMs and for container based applications. So traditional apps are VM based. Modern apps are container based and we, and we have a slightly different insertion mechanism. It's the same idea. So for VMs, we do it with the hypervisor, with NSX, we see all the inner workings in a container world. >>We have this thing called a service me that lets us look at each little snippet of code and how they talk to each other. And once you can see that stuff, then you can actually apply. It's almost like common sense logic of like, wait a minute. You know, this API is giving back credit card numbers and it gives five an hour. All of a sudden, it's now asking for 20,000 or a million credit card that doesn't make any sense. Right? The anomalies stick out like a sore thumb. If you can see them. And VMware, our unique focus in the infrastructure is that we can see each one of these little transactions and understand the conversation. That's what makes us so good at that east west or lateral >>Security. Yeah. You don't belong in this room, get out or that that's right. Some weird call from an in-memory database, something over >>Here. Exactly. Where other, other security solutions won't even see that. Right. It's not like there algorithms aren't as good as ours or, or better or worse. It's that, it's the access to the data. We see the, the, the, the inner plumbing of the app. And therefore we can protect >>The app from, and there's another dimension that I wanna get in the table here, cuz to my knowledge only AWS, Google, I, I believe Microsoft and Alibaba and VMware have this, it nitro the equivalent of a nitro. Yes. Project Monterey. Yeah. That's unique. It's the future of computing architectures. Everybody needs a nitro. I've I've written about this. Yeah. Right. So explain your version. Yeah. Project. It's now real. It's now in the market right. Or soon will be. Yeah. Here. Here's our mission salient aspects. Yeah. >>Here's our mission of VMware is that we wanna make every one of our enterprise customers. We want their private cloud to be as nimble, as agile, as efficient as the public cloud >>And secure >>And secure. In fact, I'll argue, we can make it actually more secure because we're thinking about putting security everywhere in this infrastructure. Right. Not just on the edges of it. So, so, so, okay. How do we go on that journey? As you pointed out, the public cloud providers realized, you know, five years ago that the right way to build computers was not just a CPU and a GPU graphics process, unit GPU, but there's this third thing that the industry's calling a DPU data processing unit. So there's kind of three pieces of a computer. And the DPU is sometimes called a smart Nick it's the network interface card. It does all that network handling and analytics and it takes it off the CPU. So they've been building and deploying those systems themselves. That's what nitro is. And so we have been working with the major Silicon vendors to bring that architecture to everybody. So, so with vSphere eight, we have the ability to take the network processing that east west inspection. I talked about, take it off of the CPU and put it into this dedicated processing element called the DPU and free up the CPU to run the applications that AJ and team are building. >>So no performance degradation at all, correct. >>To CPU >>Offload. So even the opposite, right? I mean you're running it basically bare metal speeds. >>Yes, yes. And yes. >>And, and, and you're also isolating the, the storage right from the, from the, the, the security, the management. And >>There's an isolation angle to this, which is that firewall that we're putting everywhere. Not just that the perimeter, we put it in each little piece of the server is running when it runs on one of these DPU, it's a different memory space. So even if, if an attacker gets to root in the OS, they it's very, very, never say never, but it's very difficult. >>So who has access to that? That, that resource >>Pretty much just the infrastructure layer, the cloud provider. So it's Google Microsoft, you know, and the enterprise, the >>Application can't get in, >>Can't get in there. Cause it, you would've to literally bridge from one memory space to another, never say never, but it would be very, very, >>It hasn't earned the trust >>To get it's more than Bob wire. It's, it's, it's multiple walls and, and >>It's like an air gap. It puts an air gap in the server itself so that if the server's compromised, it's not gonna get into the network really powerful. >>What's the big thing that you're seeing with this super cloud transition we're seeing, we're seeing, you know, multicloud and this new, not just SAS hosted on the cloud. Yeah. You're seeing a much different dynamic of combination of large scale CapEx, cloud native. And then now cloud native develops on premises and edge kind of changing what a cloud looks like if the cloud's on a cloud. So rubber customer, I'm building on a cloud and I have on-prem stuff. So I'm getting scale CapEx relief from the, from the cap, from the hyperscalers. >>I, I think there's an important nuance on what you're talking about, which is, is in the early days of the cloud customers. Remember those first skepticism? Oh, it'll never work. Oh, that's consumer grade. Oh, that's not really gonna work. And some people realize >>It's not secure. Yeah. >>It, it's not secure that one's like, no, no, no, it's secure. It works. And it, and it's good. So then there was this sort of over rush. Like let's put everything on the cloud. And I had a lot of customers that took VM based applications said, I'm gonna move those onto the cloud. You gotta take 'em all apart, put 'em on the cloud and put 'em all back together again. And little tiny details, like changing an IP address. It's actually much harder than it looks. So my argument is for existing workloads for VM based workloads, we are VMware. We're so good at running VM based workloads. And now we run them on anybody's cloud. So whether it's your east coast data center, your west coast data center, Amazon, Google, Microsoft, Alibaba, IBM keep going. Right. We pretty much every, and >>The benefit of the customer is what you >>Can literally vMotion and just pick it up and move it from private to public public, to private, private, to public, public, back and forth. >>Remember when we called VMO BS years ago. Yeah, yeah, yeah. >>We were really, skeptic is >>Powerful. We were very skeptical. We're like, that'll never happen. I mean, we were, I mean, it's supposed to be pat ourselves on the back. We, well, >>Because it's alchemy, it seems like what you can't possibly do that. Right. And so, so, so, and now we do it across clouds, right? So we can, you know, it's not quite VMO, but it's the same idea. You can just move these things over. I have one customer that had a production data center in the Ukraine, things got super tense, super fast, and they had to go from their private cloud data center in the Ukraine to a public cloud data center outta harm's way. They did it over a weekend, 48 hours. If you've ever migrated data, that's usually six months, right? And a lot of heartburn and a lot of angst, boom. They just drag and drop, moved it on over. That's the power of what we call the cloud operating model. And you can only do this when all your infrastructure's defined in software. >>If you're relying on hardware, load, balancers, hardware, firewalls, you can't move those. They're like a boat anchor. You're stuck with them. And by the way, really, really expensive. And by the way, they eat a lot of power, right? So that was an architecture from the nineties in the cloud operating model, your data center. And this goes back to what you were talking about is just racks and racks of X 86 with these magic DPU or smart necks to make any individual node go blisteringly fast and do all the functions that you used to do in network appliances. >>We just said, AJ taking us to school and everyone else to school on applications, middleware abstraction layer. Yeah. And kit Culver was also talking about this across cloud. We're talking super cloud, super pass. If this continues to happen, which we would think it will happen. What does the security posture look like? It has. It feels to me. And again, this is, this is your wheelhouse. If super cloud happens with this kind of past layer where there's B motioning going on, all kinds of yeah. Spanning applications and data. Yeah. Across environments. Yeah. Assume there's an operating system working on behind the scenes. Right. What's the security posture in all this. Yeah. >>So remember my narrative about like VA guys are getting in and they're moving around and they're so sneaky that they're using legitimate pathways. The only way to stop that stuff is you've gotta understand it at what, you know, we call layer seven at the application layer the in, you know, trying to do security, the infrastructure layer. It was interesting 20 years ago, kind of less interesting 10 years ago. And now it's becoming irrelevant because the infrastructure is oftentimes not even visible, right. It's buried in some cloud provider. So layer seven, understanding, application awareness, understanding the APIs and reading the content. That's the name of the game in security. That's what we've been focused on. Right. Nothing to do with >>The infras. And where's the progress bar on that, that paradigm early one at the 10, 10 being everyone's doing it >>Right now. Well, okay. So we, as a vendor can do this today. All the stuff I talked about about reading APIs, understanding the, the individual services looking at, Hey, wait a minute. This credit card anomalies, that's all shipping production code. Where is it in customer adoption life cycle, early days, 10%. So, so there's a whole lot of headroom. We, for people to understand, Hey, I can put these controls in place. There's software based. They don't require appliances. It's layer seven. So it has contextual awareness and it's works on every single cloud. >>You know, we talk about the pandemic. Being an accelerator really was a catalyst to really rethink. Remember we used to talk about pat his security a do over. He's like, yes, if it's the last thing I'm due, I'm gonna fix security. Well, he decided to go try to fix Intel instead, but, >>But, but he's getting some help from the government, >>But it seems like, you know, CISOs have totally rethought, you know, their security strategy. And, and at least in part is a function of the pandemic. >>When I started at VMware four years ago, pat sat me down in his office and he said to me what he said to you, which is like Tom, he said, I feel like we have fundamentally changed servers. We fundamentally changed storage. We fundamentally changed networking. The last piece of the puzzle of security. I want you to go fundamentally change it. And I'll argue that the work that we're doing with this, this horizontal security understanding the lateral movement east west inspection, it fundamentally changes how security works. It's got nothing to do with firewalls. It's got nothing to do with endpoint. It's a unique capability that VMware is uniquely suited to deliver on. And so pat, thanks for the mission. We delivered it and available >>Those, those wet like web applications firewall for instance are, are around. I mean, but to your point, the perimeter's gone. Exactly. And so you gotta get, there's no perimeter. So it's a surface area problem. Correct. And access and entry, correct. They're entering here easy from some manual error or misconfiguration or bad password that shouldn't be there. They're >>In. Think about it this way. You put the front door of your house, you put a big strong door and a big lock. That's a firewall bad guys, come in the window. Right. And >>Then the window's open and the window with a ladder room. Oh my >>God. Cause it's hot, bad user behavior. Trump's good security >>Every time. And then they move around room to room. We're the room to room people. Yeah. We see each little piece of the thing. Wait, that shouldn't happen. Right. >>I wanna get you a question that we've been seeing and maybe we're early on this, or it might be just a, a false data point. A lot of CSOs and we're talking to are, and people in industry in the customer environment are looking at CSOs and CSOs, two roles, chief information security officer, and then chief security officer Amazon, actually, Steven Schmidt is now CSO at reinforced. They actually called that out. Yeah. And the, and the interesting point that he made, we've had some other situations that verified. This is that physical security is now tied to online to your point about the service area. If I get a password, I still at the keys to the physical goods too. Right. Right. So physical security, whether it's warehouse for them is, or store or retail digital is coming in there. Yeah. So is there a CSO anymore? Is it just CSO? What's the role or are there two roles you see that evolving or is that just, >>Well, >>I circumstance, >>I, I think it's just one. And I think that, that, you know, the stakes are incredibly high in security. Just look at the impact that these security attacks are having on it. It, you know, companies get taken down, Equifax market cap was cut, you know, 80% with a security breach. So security's gone from being sort of a nuisance to being something that can impact your whole kind of business operation. And then there's a whole nother domain where politics get involved. Right. It determines the fate of nations. I know that sounds grand, but it's true. Yeah. And so, so, so companies care so much about it. They're looking for one liter, one throat to choke, you know, one person that's gonna lead security in the virtual domain, in the physical domain, in the cyber domain, in, in, you know, in the actual, well, it is, >>I mean, you mentioned that, but I mean, mean you look at Ukraine. I mean the, the, that, that, that cyber is a component of that war. I mean, that's very clear. I mean, that's, that's new, we've never seen >>This. And in my opinion, the stuff that we see happening in the Ukraine is small potatoes compared to what could happen. Yeah, yeah. Right. So the us, we have a policy of, of strategic deterrents where we develop some of the most sophisticated cyber weapons in the world. We don't use them and we hope never to use them because the, the, our adversaries who could do stuff like, oh, I don't know, wipe out every bank account in north America, or turn off the lights in New York city. They know that if they were to do something like that, we could do something back. >>I, this discuss, >>This is the red line conversation I wanna go there. So >>I had this discussion with Robert Gates in 2016 and he said, we have a lot more to lose, which is really >>Your point. So this brand, so I agree that there's the, to have freedom and Liberty, you gotta strike back with divorce and that's been our way to, to balance things out. Yeah. But with cyber, the red line, people are already in banks. So they're addresses are operating below the red line, red line, meaning before we know you're in there. So do we move the red line down because Hey, Sony got hacked the movie because they don't have their own militia. Yeah. If they were physical troops on the shores of LA breaking into the file cabinets. Yeah. The government would've intervened. >>I, I, I agree with you that it creates, it creates tension for us in the us because our, our adversaries don't have the clear delineation between public and private sector here. You're very, very clear if you're working for the government or you work for an private entity, there's no ambiguity on that. And so, so we have different missions in each department. Other countries will use the same cyber capabilities to steal intellectual, you know, a car design as they would to, you know, penetrate a military network. And that creates a huge hazard for us on the us. Cause we don't know how to respond. Yeah. Is that a civil issue? Is that a, a, a military issue? And so, so it creates policy ambiguity. I still love the clarity of separation of, you know, sort of the various branches of government separation of government from, >>But that, but, but bureau on multinational corporation, you then have to, your cyber is a defensible. You have to build the defenses >>A hundred percent. And I will also say that even though there's a clear D mark between government and private sector, there's an awful lot of cooperation. So, so our CSO, Alex toshe is actively involved in the whole intelligence community. He's on boards and standards and we're sharing because we have a common objective, right? We're all working together to fight these bad guys. And that's one of the things I love about cyber is that that even direct competitors, two big banks that are rivals on the street are working together to share security information and, and private, is >>There enough? Is collaboration Tom in the vendor community? I mean, we've seen efforts to try to, that's a good question, monetize private data, you know? Yeah. And private reports and, >>And, you know, like, so at VMware, we, we, I'm very proud of the security capabilities we've built, but we also partner with people that I think of as direct competitors, we've got firewall vendors and endpoint vendors that we work with and integrate. And so cooperation is something that exists. It's hard, you know, because when you have these kind of competing, you know, so could we do more? Of course we probably could, but I do think we've done a fair amount of cooperation, data sharing, product integration, et cetera, you know, and, you know, as the threats get worse, you'll probably see us continue to do more. >>And the governments is gonna trying to force that too. >>And, and the government also drives standards. So let's talk about crypto. Okay. So there's a new form of encryption coming out called quantum processing, calling out. Yeah. Yeah. Quantum, quantum computers have the potential to crack any crypto cipher we have today. That's bad. Okay. Right. That's not good at all because our whole system is built around these private communications. So, so the industry is having conversations about crypto agility. How can we put in place the ability to rapidly iterate the ciphers in encryption? So when the day quantum becomes available, we can change them and stay ahead of these quantum people. Well, >>Didn't this just put out a quantum proof algo that's being tested right now by the, the community. >>There's a lot of work around that. Correct. And, and, and this is taking the lead on this, but you know, Google's working on it, VMware's working on it. We're very, very active in how do we keep ahead of the attackers and the bad guys? Because this quantum thing is like a, it's a, it's a x-ray machine. You know, it's like, it's like a, a, a di lithium crystal that can power a whole ship. Right. It's a really, really, really powerful >>Tool. It's bad. Things will happen. >>Bad things could happen. >>Well, Tom, great to have you on the cube. Thanks for coming. Take the last minute to just give a plug for what's going on for you here at world this year, VMware explore this year. Yeah. >>We announced a bunch of exciting things. We announced enhancements to our, our NSX family, with our advanced load balancer, with our edge firewall. And they're all in service of one thing, which is helping our customers make their private cloud like the public cloud. So I like to say 0, 0, 0. If you are in the cloud operating model, you have zero proprietary appliances. You have zero tickets to launch a workload. You have zero network taps and zero trust built into everything you do. And that's, that's what we're working on and pushing that further and further. >>Tom Gill, senior vices president head of the networking at VMware. Thanks for coming up for you. Appreciate >>It. Yes. Thanks for having guys >>Always getting the security data. That's killer data and security of the two ops that get the most conversations around dev ops and cloud native. This is the queue bringing you all the action here in San Francisco for VMware. Explore 2022. I'm John furrier with Dave, Alan. Thanks for watching.

(light upbeat music) >> Hey, everyone, welcome back to theCUBE's day two live coverage of VMware Explore 2022 from Moscone Center in San Francisco. Lisa Martin here as your host with Dave Nicholson. We've got a couple of guests here and we have some props on set. Get a load of this Nature Fresh Farms produce. Keith Bradley joins us, the VP of IT from Nature Fresh Farms, and Alison Biers is back, as well, director of marketing at Edge Solutions for Dell. Guys, welcome back to the program and thanks for bringin' some food. >> Well, thank you, yeah. >> Thank you so much. >> So, Keith, talk to us a little bit about technology from Nature Fresh Farm's perspective. How do we look at this farming organization as a tech company? >> As technical, we're something that measures everything we grow. So, we're 200 acres of greenhouse, spanning probably about 3 or 400 acres of land. Everything's entirely environmentally controlled. So, the peppers that we have in front of you, the tomatoes, they're all grown and controlled from everything they get from light to moisture to irrigation and nutrients. So, we do all that. >> So, should I be able to taste the Dell goodness in these cucumbers, for example? >> I'd like to say Nature Fresh slash Dell good. >> Connect the dots for us. So, let's go through that sort of mental exercise of how are these end products for consumers better because of what you're doing in IT? >> So, one of the things that we've been able to do, and one of the transformations we made is we are now able to run our ETLs. So, analyze the data realtime at the Edge. So, making decisions which used to be only once a day based on analytics to now multiple times a day. Our ETLs used to take 8 to 10 hours to run. Now they run- >> So, extraction, transformation and load. >> Yep, yep. >> Okay. So, we consider it a party foul if you use a TLA and you don't find it the first time. >> Okay. >> But you get a pass 'cause you're an actual and real person. >> I'll give you that one. >> I already had a claim laid on that. I'm sorry, so continue. >> Yeah, yeah. So, it allowed now the growers to make multiple decisions and then you start adding the next layer. As we expanded our technology base, we started introducing AI into it. So now, AI is even starting to make decisions before the grower even knows to make them based on historical data. So, it's allowed us to become more proactive in protecting the health and longevity and even taste of that plant and the product coming out to you. >> That's awesome. Alison, talk to us about from Dell's perspective how is it helping Nature Fresh to simplify the Edge which there's a lot of complexity there? You talked about the size of the organization but how do you help simplify it? >> I think Nature Fresh had a lot of common problems that we see customers have. So, they had some really interesting ambitions to improve their produce and do it in a GMO free way and really bring a quality product to their customer. But yet, they were each solving their problems on their individual farms in different ways. And so, one of the ways that we were able to help was to consolidate a lot of those silos as they were expanding the scope and scale of what they really wanted to do from a technology perspective. And then being able to do that in a secure way that's delivering the insights they need when they need them right there at the Edge is really critical. >> I think it's wonderful that we have the actual stuff here. Because we often talk in these abstract terms about outcomes. There's your outcome right there. >> Yeah. >> Right. >> But talk about this growing in the soil somewhere. You have growers. It's not an abstraction. These are actual actual people. Where does the technology organism interface occur here? You have organically grown crops. Where's that interface? Where's the first technology involved in this process? Literally physically. >> Physically. >> Yeah, yeah, yeah. Is there a shack with a server in it somewhere? >> So, we actually have, we have a core data center at the center of Nature Fresh set up basically where everything ends up. We have our Edge. So, we have computers, we're at the Edge analyzing stuff. But if you want to go right back to the grassroots of where it actually is, is it's right at, not dirt, but a ground up coconut husk. That is what the plants are grown in. And we analyze the data right there, 'cause that is our first Edge. And people think that's static for us. The Edge isn't static. 'Cause the Edge now moves. We have a plant that grows. Then we pick it. And then we have to store it and then we have to ship it. So, our Edge actually does move from area to area to area. So, statically one thing isn't the same all the time. It's a hard thing to say how it all starts but it's just a combination of everything from natural gas to everything. >> Okay, then are those, 'cause we think of things in terms of like internet of things and these sensors. >> Oh yeah. >> Things are being gathered. So, you've got stuff happily growing in husks and then being picked. What's the next step there? Where is that aggregated? Where does that go? Is that all going straight back to your data center or are there sort of intermediate steps in the process? >> So, what we do is we actually store everything at the Edge, and we do daily processes right there. And then it aggregates that data and it drops it down from a large number to a smaller number to go to the core. >> Got it. >> And then that way, at the core, it does the long term analysis. 'Cause again, a lot of the data that we collect, we don't need to keep. A lot of it is the temperature was X, the temperature was X, the temperature, we don't need that. So, it aggregates it all down. So, that way the information coming to the core doesn't overwhelm it. Because we do store enough information. And to give you an idea of how our 1.8 million plants are living and breathing. We actually have estimated 1.8 million plants throughout our 200 acres. >> At any moment. >> Yeah. >> That's how many plants they're tracking. And so, that realtime information is helping to make sure that they water the plants precisely with the amount that they need, that they're fertilizing them. And you were telling me about how the life of a plant, you're really maintaining that plant over the life of 12 months. So, if you make a mistake at any point along the line, then you're dealing with that in terms of their yield throughout the life of the plant. But you aggregate a lot of that data right there on site so that you're not having to send so much back to the cloud or to the core. And you do that a lot with VxRail as well as other technology you have on site. Right? >> Yeah. Our VxRail is the center of the core of how we process things. It allowed us to even expand, not even just for compute but GPUs for our AIs to do it. So, it's what we did. And it allowed us to mold how we do things. >> Alison, question for you, this sounds like a dynamic Edge the way that you described it, Keith, and you described it so eloquently. How does the partnership that Dell has with Nature Fresh, how is Dell enabling and accelerating and advancing its Edge solutions based on what you're seeing here and this need for realtime data analytics. >> Well, we spend a lot of time with customers like Keith and also across all kinds of other industries. And what we see is that they have a really common set of problems. They're all trying to derive realtime data right then and there so that they can make business decisions that impact their profitability and their competitiveness and all of their customers experience their product quality. And what we see a lot of times is that they have a common set of concerns around security. How to manage all of the hardware that they're implementing. And at the same time, they really want to be an enabler for the business outcome. So, people have creative ideas and they come to IT hoping for support in that journey. If you're managing everything as a snowflake, it becomes really hard and untenable. So, I think one of the things that we have as our mission is to help customers simplify their Edge so that they can be the enabler that's helping the business to transform and modernize. One of the things I really admire about Nature Fresh Farms is that they decided it from a full organization perspective. So, everybody from the operational technologists to the IT to the business decision makers and leaders at the company, they all decided to modernize together. And so, I think from a partnership perspective, too, that's one of the areas that we try to work with our customers on is really talking about total transformation and modernization. >> So, it sounds like, Keith, there was an appetite there as Alison was saying for a digital transformation and IT transformation. Talk to me a little bit about from a historical perspective, how old Nature Fresh is and how did you get the team on board sounds so eloquent. How did you get the team on board to go, "This is what we need to do and technology needs to fuel our business because it's going to impact the end user, consumer of our fabulous English cucumbers." >> So, it's actually really neat. Our owner, Pete Quiring, when he first started out he really wanted to embrace technology. And this is going back right to 2000. 2000 is when we first had our first planting. And he was actually a builder by nature. He actually was a builder and fabricator and he built greenhouses for other companies. But he said they're getting a little bigger and it's the labor amount, and the number of growers he needed for a range was getting exponentially higher. So, he was one of the first ones that said, "I'm going to put a computer right in the middle and control this 16 acre range." >> It's a pretty visionary view when you really think about it. He's trying to operate his farm. >> Yeah. >> Right? >> From one single computer. >> Operationalize it. It's really cool. >> So, it was neat concept and it was actually very much not a normal concept then. You go back to 2000, people weren't talking about internet of things. They didn't talk about automation. It wasn't there. And he basically said, this is the way to go. And unfortunately, he thought, "I'll sell it to somebody. I'll grow it, I'll put a product in for a year and I'll sell it." And then guess what happened? He didn't sell it. He says, "Ah, it's not big enough. I'll build another phase two." And then his comment to me was after he built the fourth phase, he says, "I guess I'm in the pepper and cucumber business now." And that's what he is just grown. But he said it was a great relationship we had and it's a great concept. And it even goes back, and I know we talked about before, is the computer allowed one senior grower to control large number of acreages. Where before, you'd need multiple growers that know exactly what to do, 'cause they'd have to manually change all these things. Now, from a single computer they can see everything that's going on in the entire range. >> You mentioned temperature and water. And this is kind of out of the blue question, but how have global circumstances and increases in the cost of fertilizer affected you? Or is that fertilizer that's not the type that you use in your operation? You have any insight into that. >> Yeah, everything has, the global change in cost has changed everybody. I don't think there's anybody that's exempt from it. The only thing that we've been able to do is we're able to control it. We don't need to rely on, I guess you can say, rely on the weather to help us do things. We can control how much is. And we recycle all of our water. So, what the plant doesn't absorb today for nutrients, we'll put it back in the system, sterilize- >> Wait, when you say 200 acres, it's all enclosed? >> Yep, 200 acres. >> 200 acres of greenhouse. >> Yep, at 200 acres of greenhouse entirely enclosed. >> Okay, okay. >> There is not a single portion of our greenhouse that's actually gets exposed to the outside. And if you ever see a picture of a greenhouse and you see one of these lovely plants here wet, that's not true. That's just a nice to make it look better. >> Spray it for the photo. >> Yeah, yeah. They spray it for the photo. But actually everything is dry. That water goes directly to the roots and we monitor how much we put in and how much comes out. And then we recycle it. We even get so much recycling, we run natural gas generators to heat the water to heat the greenhouse. We take the burn-off of natural gas, the CO2, and funnel that into the greenhouse to give it natural stimulant. >> So, this is starting to remind me of "The Martian", if you read the book or if you seen the movie. >> Oh yeah. >> But planting the potatoes inside the hab, in the habitat. >> Yeah, and you cut 'em in half and the little ones grow with that next ones. But yep, we recycle everything that we do. And that's what we do. >> That's amazing. >> And all that information at their fingertips. Really, I think what technology is enabling you all to do is focus on what you all are good at, which is focusing on your farming operation and not necessarily the technology. So, one of the places I think we deliver some value is in validating a lot of the solutions so that customers don't have to figure that all out themselves. >> Yeah, 'cause I'm not a security expert. I don't always understand the true depth of security, but that's where that relationship is. We need this and we need that. And we need a secure way to let those communicate. And we can hand that off to the experts at Dell and let us do what we do best. >> What have been some of the changes? In the last couple of years, we've seen the security elevate skyrocket to a board level conversation. Ransomware is a when, not if, we get attacked. How does Dell help you from a security perspective ensure that what you're able to do ultimately gets these products to market in a secure fashion so that all that data that you're generating isn't exposed? >> So, like I said, I agree 100%. It's not matter of if it's going to happen, it's when it's going to happen. So, one of the things that we've actually done is we started to use Dell solution, the PowerProtect Data Manager to back up our solutions on the VxRail. And it actually did twofold for us. It allowed us to do a lot of database manipulation from restores and stuff like that. But we're now actually even investing in the cyber recovery vault that gives us that protection. And it allows us to now look at how long will it take us to get back up. And we're doing some tests right now and the last test we did is we're able to get back up going as a company from a full attack in about an hour. >> Wow. >> We've actually done a few simulations now. So, we are able to recover what our core needs are within an hour. >> Which is a very different metric than simply saying, "Oh, the data's available." >> Yeah. >> No, no, no, no, no, no, no, no. You get zero credit for that. We need our operations to be back up and running. >> Even that hour is stressful to our growers. >> Sure. >> It's a variable within a variable because if you go in the summer when it's super hot, they'll be very stressed out within an hour. And then you got nice calm weather day, it's not as bad. But the weather can change in how they have to close the vents. And you're not just closing one vent, you're closing 32, 64, 100 acres of vents. And you're changing irrigation cycle. You need that automation to do it for you. >> How do you let people eat these things after all the care that goes into it? I'm going to feel mildly guilty for just about a second and a half before I sink my teeth into the cucumber. >> Oh, but that's the joy of it. That's one of the things that I love. >> This is serious. You're proud of this, aren't you? >> Oh yeah. You know what? There's not single person at Nature Fresh that isn't proud of what we do each day. We enjoy what we do and it's a culture that makes us strive to do better every day. It's just a great feeling to be there every day and to just enjoy what you're doing. >> And see, it's real. It's real. Isn't it great? Isn't it great to be a part of? My background's in economics. I think of these things in terms of driving efficiency. And this is just a beautiful thing. When you control those variables, you leverage the technology and what's the end result? You're essentially uplifting everything in the world. >> Yeah, so true. >> Not to get philosophical on ya. >> Right, and feeding the world, especially during the last couple of years, that access. One of the things we learned in the pandemic, one of many, is access to realtime data isn't a nice to have anymore, it's essential. >> Yeah. >> So true. >> And so, the story that you're telling here, the impact to the growers, enabling them to focus what you were saying, Alison, on what they do best, Dell Technologies, VxRail enabling Nature Fresh to focus on what it does best, ultimately delivering food to people during the last couple of years was huge. >> Yeah, and allowing even at a reduced labor number for us to keep growing and doing things by automation. We still need labor in the greenhouse to pick, prune and do stuff like that. But again, we're looking into technologies to help offset that. But again, it was one of those things that we just had to be efficient at everything we do. And we drove that through everything we have. >> Well, and you guys haven't stopped. Right? >> Yeah. >> You're continuing to figure out, he was just telling me a little bit about what their next step is. So, just getting more and more accurate, more intelligence as they grow. So, it's the possibilities, that's what's exciting to me about Edge. I think this example is great, 'cause it's so relatable. Everybody can understand what the Edge is in this context. And it's really driven by the fact that you can put compute into so many different places now. It's more though a matter about how do you gather it? How do you do it in a way where you can actually understand and glean information and insights from it? And that, I think, is what you all are really focused on. >> Yeah, yeah, information is key. >> It is key. What's next from Dell's perspective for Edge computing technologies? what are some of the things you guys got cooking? >> Yeah, we're going to try to help customers to continue to simplify their Edge. So, to deliver those insights that they need where they need them, to do it in a really secure way. I know we talked about security but to do it in really a zero trust fashion. And to help customers to do it also in a zero IT fashion. Because in this example, it's the growers that are out there in the fields, or in your greenhouse in this sense, helping people that aren't necessarily IT specialists to be able to get all the benefits from the technology. >> So, do you think that VxRail technology could be used to optimize say the production of olive oil? I'm looking here and we have the makings of a pretty good salad. >> Yeah, you do. >> There you go. >> It obviously doesn't just apply to food production. >> Yeah, it really goes across the board. Whether we're talking about manufacturing or retail or energy, putting technology right there at the point of data creation and being able to figure out how to manage that inflow of data, be able to figure out which portion of the data is really valuable, and then driving decisions and being able to understand and intelligently make decisions for your business based on that data is really important. >> Keith, what's next? Give us, as we wrap out this segment here, what's next from a technology perspective? You mentioned a couple things you're looking into. >> Yeah, so I think automation is really going to change the way we do things. And automation within the greenhouse is truly just becoming a reality. It's funny we go back and we say, can we do this stuff? And now it's like, oh, even three years ago, I don't think we were quite ready for it, but now it's right there. So, I see us doing a lot more work with vendors like Dell and to do automatic picking, automatic scouting, all that stuff that we do by hand, do it in an automated fashion. >> And at scale, right? >> Yeah. >> That's the important part. I think when you're managing a snowflake, you can only do it to some level, and to be able to automate it and to be able to break down those silos, you're going to be able to apply it to so many parts of your business. >> Yeah, wide applicability. Guys, thank you so much for joining us, sharing the Nature Fresh, Dell story, bringing us actual product. This is so exciting. We congratulate you on how you're leveraging technology in a really innovative way. And we look forward to hearing what's next. Maybe we'll see you at Dell Technologies World next year. >> Sounds great. >> Sounds great. >> Thank you so much. >> All right, our pleasure, guys. >> Thank you. >> For our guests and Dave Nicholson, I'm Lisa Martin. You're watching theCUBE live from VMware Explorer 2022. Dave and I will be right back with our next guest. So, stick around. (light upbeat music)

>>When AWS introduced the modern cloud in 2006, many people didn't realize the impact that it would have on the industry, but some did see the future of an as a service economy coming. I mean, SAS offerings came out several years before. And the idea of applying some of these concepts to infrastructure and simplifying deployment and management, you know, kinda looked enticing to a lot of customers and a subscription model, or, but yet a consumption model was seen as a valuable proposition by many customers. Why not apply it to infrastructure? And why should the hyperscalers have all the fun welcome to at your storage service? My name is Dave ante. And as an analyst at the time, I was excited about the, as a service trend early on. And one of the companies that caught my attention back in the beginning of last decade was pure storage. >>Pure not only was delivering cloud- simplicity, but it's no forklift approach to infrastructure was ahead of its time. And that's why we're here today to dig into what's happening with the, as a service trends that we see popping up all over the world today, we're gonna dig into three sessions with noted experts in the field. First pre Darie is the general manager of the digital experience business unit at pure storage. He's gonna join us. And then we bring in Steve McDowell, Steve's a senior analyst for data and storage at more insights and strategy, a well known consultancy and analyst firm. And finally, we close with Amil sta Emil is the chief commercial officer and chief marketing officer at open line, open lines, a managed service provider. They serve the mid-market and Emil's got a very wide observation space. He's gonna share what he's seeing with customers. So sit back and enjoy the show. >>The cloud has popularized many useful concepts in the past decade, working backwards from the customer two pizza teams, a DevOps mindset, the shared responsibility model in security. And of course the shift from CapEx to OPEX and as a service consumption models. The last item is what we're here to talk about today. Pay for consumption is attractive because you're not over provisioning. At least not the way you used to you'd have to buy for peak capacity events, but there are always two sides to every story and well pay for use more closely ties. It consumption to business value procurement teams. Don't always love the uncertainty of the cloud bill each month, but consumption pricing. And as a service models are here to stay in software and hardware. Hello, I'm Dave ante and welcome to at your storage service made possible by pure storage. And with me is Pash DJI. Who's the general manager of the digital experience business unit at pure Pash. Welcome to the program. >>Thanks Dave. Thanks for having me. >>You bet. Okay. We've seen this shift to, as a service, the, as a service economy, subscription models, and this as a service movement have gained real momentum. It's it's clear over the past several years, what's driving this shift. Is it pressure from investors and technology companies that are chasing the all important ARR, their annual recurring revenue stream? Is it customer driven? Give us your insights. >>Well, look, um, I think we'll do some definitional stuff first. I think we often mix the definition of a subscription and a service, but, you know, subscription is, Hey, I can go for pay up front or pay as I go. Service is more about how do I not buy something just by the outcome. So, you know, the concept of delivering storage as a service means, what do you want in storage performance, capacity availability? Like that's what you want. Well, how do you get that without having to worry about the labor of planning capacity management, those labor elements are what's driving it. So I think in the world where you have to do more with less and in a world where security becomes increasingly important, where standardization will allow you to secure your landscape against ransomware and those types of things, those trends are driving the ation of storage and the only way to deliver that is storage as a service. >>So that's, that's good. You maybe thinking about it differently than some of the other companies that I talked to, but so you, you, you've made inroads here pretty big inroads actually, and changed the thinking in enterprise data storage with a huge emphasis on simplicity. That's really pures rayon Detra. How does storage as a service fit into your innovation agenda overall? >>Well, our innovation agenda started, as you mentioned with the simplicity, you know, a decade ago with the evergreen architecture, that architecture was beyond the box. How do you go ahead and say, I can improve performance or capacity as I need it? Well, that's a foundational element to deliver a service because once you have that technology, you can say, oh, you know what? You've subscribed to this performance level. You want to raise your performance level and yes, that'll be a higher dollar per gig or dollar per terabyte. But how do you do that without a data migration? How do you do that with a non disruptive service change? How do you do that with a delivery via a software update, those elements of non disruptive updates. When you think SAS, Salesforce, you don't know when Salesforce doesn't update, you don't know when they're increasing something, adding a new capability just shows up. It's not a disruptive event. So to drive that standardization and sation and service delivery, you need to keep that simplicity of delivery first and foremost, and you can't allow, like, if the goal was, I want to change from this service tier to that service tier and a person needed to show up and do a day data migration, that's kind of useless. You've broken the experience of flexibility for a customer. >>Okay. So I like the Salesforce analogy, but I wanna jump out, do a little side for a second. So I I've gotta, I've gotta make some commitment to pure, right. Some baseline commitment. And if I do, then I can dial up and pay for what I use and I can dial it down. Correct? Correct. Okay. I can't do that with Salesforce. <laugh> right. I could dial up, but then I'm stuck with those licenses. So you have a better model in Salesforce. I would argue. Okay. Yeah, >>I would, I would agree with that. >>Okay. So, and I gotta pay for everything up front anyway. Um, let's go back. I was kind of pushing at you a little bit at my upfront, you know, about, you know, the ARR model, the, the all important, you know, financial metric, but let's talk from the customers standpoint. What are the benefits of consuming storage as a service from your customer's perspective? >>Well, one is when you start your storage journey, do you really know what you need? And I would argue most of the time people are guessing, right? It's like, well, I think I need this. This is the performance I think I need. Or this is the capacity I think I need. And, you know, with the scientific method, you actually deploy something and you're like, do I need more? Do I need less? You find out as you're deploying. So in a storage as a service world, when you have the ability to move up performance levels or move out capacity levels, and you have that flexibility, then you have the ability to just to meet demand as you deploy. And that's the most important element of meeting business needs today. The applications you deploy are not in your control when you're providing storage to your end consumers. >>Yeah. They're gonna want different levels of storage. They're gonna want different performance thresholds. That's kind of a pay, you know, pay for performance type culture, right? You can use HR analogies for it. You pay for performance. You want top talent, you pay for it. You want top storage performance, you pay for it. Um, you don't, you can pay less and you can actually get lower performance, tiers, not everything is a tier one application. And you need the ability to deploy it. But when you start, how do you know the way your end customers are gonna be consuming? Or do you need a dictated upfront? Cause that's infrastructure dictating business inflexibility, and you never want to be in that position. >>I, I got another analogy for you. It's like, you know, we do a lot of hosting at our home and you know, like Thanksgiving, right? And you go to the liquor store and say, okay, what should I get? Should we get red wine? We gotta go white wine. We gotta get some beer. Should I get bubbles? Yeah, I get some bubbles. Cause you don't know what people are gonna have. And so you over provision everything <laugh> and then there's a run on bubbles and you're like, ah, we run outta bubbles. So you just over buy, but there's a liquor store that actually will take it back. So I gotta do business with those guys every time. Cuz it's way more flexible. I can dial up capacity or can dial up performance and dial it back down if I don't use it >>Or you or you're gonna be drinking a lot more the next few weeks. >>Yeah, exactly. Which is the last thing you want. Okay. So let's talk about how pure kind of meets this as a service demand. You've touched upon your, your differentiators from others in the market. Um, you know, love to hear about the momentum. What, what are you seeing out there? >>Yeah. Look, our business is growing well, largely built on, you know, what customers need. Um, specifically where the market is at today is there's a set of folks that are interested in the financial transformation of CapEx to OPEX, where like that definitely exists in the industry around how do I get a pay use model? The next kind of more advanced customer is interested in how do I go ahead and remove labor to deliver storage? And a service gets you there on top of a subscription. The most sophisticated customer says, how do I separate storage production with consumption and production of storage. Being a storage producer should be about standardization. So I could do policy based management. Why is that important? You know, coming back to some of the things I said earlier in the world where ransomware attacks are common, you need the standardized security policies. >>Linux has new vulnerabilities every, every other day, like find 2, 2, 3 critical vulnerabilities a week. How do you stay on top of it? The complexity of staying on top of it should be, look, let's standardize and make it a vendor problem. And assume the vendor's gonna deliver this to me. So that standardization allows you to have business policies that allow you to stay current and modern. I would argue in, you know, the traditional storage and appliance world, you buy something and the day a, the day after you buy it, it's worthless. It's like driving a car off a lot, right? The very next day, the car's not worth what it was when you bought it. Storage is the same way. So how do you ensure that your storage stays current? How do you ensure that it gets like a fine line that gets better, better with age? Well, if you're not buying storage and you're buying a performance SLA, it's up to the vendor to meet that SLA. So it actually never gets worse over time. This is the way you modernize technology and avoid technology debt as a customer. >>Yeah. I mean, just even though words you're using in the way you're thinking about this precaution, I think are, are, are different. Uh, and I love the concept of essentially taking my labor cost and transferring them to pures R and D I mean, that's essentially what you're talking about here. Um, so let's, let's, let's stick with the, the, the tech for a minute. What do you see as new or emerging technologies that are helping accelerate this shift toward the, as a service economy? >>Well, the first thing is I always tell people, you can't deliver a service without monitoring, because if you can't monitor something, how you're gonna know what your, whether you're meeting your service level obligation, right? So everything starts with data monitoring. The next step layering on the technology. Differentiation is if you need to deliver a service level, OB obligation on top of that data monitoring, you need the ability to flexibly, meet whatever performance obligations you have in a tight time window. So supply chain and being able to deliver anywhere becomes important. So if you use the analogy today of how Tesla works or a IOT system works, you have a SaaS management that actually provides instructions that push pushes those instructions and policies to the edge. In Tesla's case, that happens to be the car it'll push software updates to the car. It'll push new map updates to the car, but the car is running independently. >>It's not like if the car becomes disconnected from the internet, it's gonna crash and drive you off the road in the same way. What if you think about storage as something that needs to be wherever your application is? So people think about cloud as a destination. I think that's a fallacy. You have to think about the world in the world in the view of an application, an application needs data, and that data needs to sit in storage wherever that application sits. So for us, the storage system is just an edge device. It can be sitting in your data center, it can be sitting in a Equinix. It can be sitting in hosted, an MSP can run. It can, can even be sitting in the public cloud, but how do you have central monitoring and central management where you can push policies to update all those devices? >>Very similar to an I IOT system. So the technology advantage of doing that means that you can operate anywhere and ensure you have a consistent set of policies, a consistent set of protection, a consistent set of, you know, prevention against ransomware attack, regardless of your application, regardless of, uh, you know, where it sits, regardless of what content in you're on that approach is very similar to the way the T industry has been updating and monitoring edge devices, nest, thermostats, you know, Tesla cars, those types of things. That's the thinking that needs to come to. And that's the foundation on which we built PI as a service. >>So that implies, or at least I infer that you've obviously got control of the experience on Preem, but you're extending that, uh, into AWS, Google Azure, which suggests to me that you have to hide the underlying complexity of the primitives and APIs in that world. And then eventually, actually today, cuz you're treating everything like the edge out to the edge, you know, maybe, maybe mini pure at some point in time. But so I call that super cloud that abstraction layer that floats above all the clouds on-prem and adds that layer of value. And is this singular experience? What you're talking about pushing, you know, policy throughout, is that the right way to think about it and how does this impact the ability to deliver true storage as a service? >>Oh, uh, that's absolutely the right way of thinking about it. The things that you think about from a, an abstraction kind of fall in three buckets, first, you need management. So how do you ensure a consistent management experience creating volumes, deleting volumes, creating buckets, creating files, creating directories, like management of objects and create a consistent API across the entire landscape. The second one is monitoring, how do you measure utilization and performance obligations or capacity obligations or uh, you know, policy violations, wherever you're at. And then the third one is more of a business one, which is procurement because you can't do it independent of procurement. Meaning what happens when you run out, you need to increase your reserve commits. Do you want to go on demand? How do you integrate it into company's procurement models, such that you can say, I can use what I need and any, it's not like every change order is a request of procurement. That's gonna break an as a service delivery model. So to get embedded in a customer's landscape where they don't have to worry about storage, you have to provide that consistency on management, monitoring and procurement across the tech. And yes, this is deep technology problems, whether it's running our storage on AWS or Azure or running it on prem or, you know, at some point in the future, maybe even, um, you know, pure mini at the edge. Right. <laugh> so, you know, tho all of those things are tied to our pure, a service delivery. >>Yeah, technically non-trivial but uh, Hey, you guys are on it. Well, we gotta leave it there. Pash. Thank you. Great stuff. Really appreciate your time. >>All right. Thanks for having me, man. >>You're very welcome. Okay. In a moment, Steve McDowell from more insights and strategies, it's gonna give us the analyst perspective on, as a service, you're watching the cube, the leader in high tech enterprise coverage. >>Why are customers making the change to pure as a service >>Other vendors, offering flexible consumption models will promise you the world on the surface. It's just what you need. But then you notice the asterisk that dreaded fine print. That turns just what you need into long-term commitments, disruptive upgrades and unpredictable costs, pure storage, launched pure as a service to provide the flexibility to respond to your ever changing needs. With clear per unit costs, no large upfront purchases and no asterisks. A usage based model should be simple, innovative, and adapt with the changing market. Unlike other vendors, pure is offering exactly that with options, for service tiers and short term contracts in a single unified subscription that allows you to improve your discounts over time. Pure makes sure you can grow and upgrade without ever taking your environment offline and without the constant worry of hidden costs with complete billing, transparency, unlike any other, you only pay for what you use and pure one helps track and predict demand from day to day, making sure you never outgrow your storage. So why are customers making the change to pure as a service convenient solutions with unlimited potential without the dreaded fine print? It's as simple as that, >>We're back with Steve McDowell, the principal analyst for data and storage at more insights and strategy. Hey Steve, great to have you on, tell us a little bit about yourself. You got a really interesting background and kind of a blend of engineering and strategy and what's your research focus? >>Yeah, so my research, my focus area is data and storage and all the things around that, right? Whether it's OnPrim or cloud or, or, or, you know, software as a service. Uh, my background, as you said, is a blend, right? I grew up as an engineer. I started off as an OS developer at IBM. Uh, came up through the ranks and, and shifted over into corporate strategy and product marketing and product management. Uh, and I've been doing, uh, working as an industry analyst now for about five years, more insights and strategy. >>Steve, how do you see this playing out in the next three to five years? I mean, cloud got it all started. It's gonna snowballing, you know, however you look at it, percent of spending on storage that you think is gonna land in as a service. How, how do you see the evolution here? >>I think it buyers are looking at as a service, a consumption based is, is, uh, uh, you know, a natural model. It extends the data center, brings all of the flexibility, all of the goodness that I get from public cloud, but without all of the downside and uncertainty around cost and security and things like that, right. That also come with a public cloud and it's delivered by technology providers that I trust and that I know, and that I've worked with, you know, for, in some cases, decades. So I don't know that we have hard data on how much, uh, adoption there is of the model, but we do know that it's trending up, uh, you know, and every infrastructure provider at this point has some flavor of offering in the space. So it's, it's clearly popular with CIOs and, and it practitioners alike. >>So Steve organizations are at a they're different levels of maturity in their, their transformation journeys. And of course, as a result, they're gonna have different storage needs that are aligned with their bottom line business objectives. From an it buyer perspective, you may have data on this, even if it's anecdotal, where does storage as a service actually fit in and can it be a growth lever >>Can absolutely be, uh, a growth leader. Uh, it, it gives me the flexibility as, as an it architect to scale my business over time, without worrying about how much money I have to invest in, in storage hardware. Right? So I, I get kind of, again, that cloudlike flexibility in terms of procurement and deployment. Uh, but it gives me that control by oftentimes being on site within my permit. And I manage it like a storage array that I own. Uh, so you know, it, it's, it's beautiful for, for organizations that are scaling and, and it's equally nice for organizations that just wanna manage and control cost over time. Um, so it's, it's a model that makes a lot of sense and fits and, and certainly growing in adoption and popularity. >>How about from a technology vendor perspective you've worked for in the, in the tech industry mm-hmm <affirmative> for, for companies? What do you think is gonna define the winners and losers in this space? If you were running strategy for, uh, storage company, what would you say? >>I, I think the days of, of a storage administrator managing, you know, rate levels and recovering and things of that sort are over, right, what would, what these organizations like pure delivering, but they're offerings is, is simplicity. It's a push button approach to deploying storage to the applications and workloads that need it, right. It becomes storage as a utility. So it's not just the, you know, the consumption based economic model of, of, uh, as a service. Uh, it, it's also the manageability that comes with that, or the flexibility of management that comes with that. I can push a button, deploy bites to, to, uh, you know, a workload that needs it. Um, and it just becomes very simple, right. For the storage administrator in a way that, you know, kind of old school OnPrim storage can't really deliver. >>You know, I wanna, I wanna ask you, I mean, I've been thinking about this because again, a lot of companies are, are, you know, moving, hopping on the, as a service bandwagon, I feel like, okay, in and of itself, that's not where the innovation lives, the innovation is gonna come from making that singular experience from on-prem to the clouds across clouds, maybe eventually out to the edge. Um, do you, do you, where do you see the innovation in as a service? >>Well, there there's two levels of innovation, right? One, one is business model innovation, right? I, I now have an organizational flexibility to build the infrastructure, to support my digital transformation efforts. Um, but on the product side and the offering side, it really is, as you said, it's about the integration of experience. Every enterprise today touches a cloud in some way, shape or form, right. I have data spread, not just in my data center, but at the edge, uh, oftentimes in a public cloud, maybe a private cloud, I don't know where my data is and it really lands on the storage providers to help me manage that and deliver that, uh, uh, manageability experience, uh, to, to the it administrators. So when I look at innovation in this space, you know, it's not just a storage array and rack that I'm leasing, right? This is not another lease model. It's really fully integrated, you know, end to end management of my data and, and, you know, and all of the things around that. >>Yeah. So you, to your point about a lease model is if you're doing a lease, you know, yeah. You can shift CapEx to OPEX, but you're still committed to, to, you have to over provision, whereas here, and I wanted to ask you about that. It's, it's, it's, it's an interesting model, right? Cuz you gotta read the fine print. Of course the fine print says you gotta commit to some level typically. And then if, you know, if you go over you, you charge for what you use and you can scale that back down and that's, that's gotta be very attractive for folks. I, I wonder if you will ever see like true cloud-like consumption pricing, that is two edges to it. Right. You see consumption based pricing in some of the software models and you know yeah. People like it, the lines of business maybe cuz they pay in by the drink, but then procurement hates it cuz they don't have predictability. How do you see the pricing models? Do you see that maturing or do you think we're sort of locked in on, on where we're at? >>No, I, I do. I do see that maturing. Right? And, and when you work with a company like pure to understand their consumption based and as a service offerings, uh, it, it really is sitting down and understanding where your data needs are going to scale, right? You, you buy in at a certain level, uh, you have capacity planning. You can expand if you need to, you can shrink if you need to. So it really does put more control in the hands of the it buyer than uh, well certainly then traditional CapEx based on-prem but also more control than you would get, you know, working with an Amazon or an Azure. >>Okay. Thanks Steve. We'll leave it there for now. I'd love to have you back. Keep it right there at your storage service continues in a moment. >>Some things are meant to last your storage should be one of them say hello to the evergreen storage program, say goodbye to refreshes and rebates. Forget planned downtime, performance impact and data migrations. Forget forklift upgrades. Evergreen storage starts with your agile storage architecture and covers the entire life cycle of the array from first purchase to ongoing use. And whenever it's time to modernize and grow, your satisfaction is covered with an evergreen subscription. You can get a full refund within 30 days for any reason, >>Our right size guarantee lets you buy just the storage you need never too much. Never not enough. Your array software is all inclusive. Even future releases and features maintenance and support costs remain constant throughout the life of your array. Proactive expert support is a true white glove experience. Evergreen maintenance ensures availability of any replacement components. Meet the demands of your business and protect your investment. Evergreen gold includes controller upgrades every three years. And if something unplanned comes up, evergreen gold provides upgrade flex the leading anytime upgrade feature to upgrade controllers whenever you need it. As you expand evergreen gold provides credits to consolidate storage with denser more modern flash. Evergreen is your subscription to continuous innovation for storage that lasts 10 years or more. Some things are meant to last make your storage. One of them >>We're back at your storage service. Emil Stan is here. He's the chief commercial officer and chief marketing officer of open line. Thank you Emil for coming on the cube. Appreciate your time. >>Thank you, David. Nice. Uh, glad to be here. >>Yes. Yeah. So tell us about open line. You're a managed service provider. What's your focus? >>Yeah, we're actually a cloud managed service provider and I do put cloud in front of the managed services because it's not just only the spheres that we manage. We have to manage the clouds as well nowadays. And then unfortunately, everybody only thinks there's one cloud, but it's always multiple layers in the cloud. So we have a lot of work in integrating it. We're a cloud manages provider in the Netherlands, focusing on, uh, companies who have head office in the Netherlands, mainly in the, uh, healthcare local government, social housing logistics department. And then in the midst size companies between say 250 to 10,000 office employees. Uh, and that's what we do. We provide 'em with excellent cloud managed services, uh, as it should be >>Interesting, you know, a lot early on in the cloud days, highly regulated industries like healthcare government were somewhat afraid of the cloud. So I'm sure that's one of the ways in which you provide value to your customers is helping them become cloud proficient. Maybe you could talk a little bit more about the value prop to customers. Why do they do business with you? >>And I think, uh, there are a number of reasons why they do business with us or choose to choose for our manage services provider that first of course are looking for stability and continuity. Uh, and, and from a cost perspective, predict predictable costs. But nowadays you also have a shortage in personnel and knowledge. So, and it's not always very easy for them to access, uh, those skill sets because most it, people just want to have, uh, a great variety in work, what they are doing, uh, towards, towards the local government, uh, healthcare, social housing. They actually, uh, a sector that, uh, that are really in between embracing the public cloud, but also have a lot of legacy and, and bringing together best of all, worlds is what we do. So we also bring them comfort. We do understand what legacy, uh, needs from a manager's perspective. We also know how to leverage the benefits in the public cloud. Uh, and, uh, I'd say from a marketing perspective, actually we focus on using an ideal cloud, being a mix of traditional and future based cloud. >>Thank you. I, you know, I'd like to get your perspective on this idea of as a service and the, as a service economy that we often talk about on the cube. I mean, you work with a lot of different companies. We talked about some of the industries and, and increasingly it seems like organizations are focused more on outcomes, continuous value delivery via, you know, suites of services and, and they're leaning into platforms versus one off product offerings, you know, do you see that? How do you see your customers reacting to this as a service trend? >>Yeah. Uh, to be honest, sometimes it makes it more complex because services like, look at your Android or iPhone, you can buy apps, uh, and download apps the way you want to. So they have a lot of apps about how do you integrate it into one excellent workflow, something that works for you, David or works for me. Uh, so the difficulty, some sometimes lies in, uh, the easy accessibility that you have to those solutions, but nobody takes into account that they're all part of a chain, a workflow supply chain, uh, and, and, uh, they're being hyped as well. So what we also have a lot of time in, in, in, in managing our customers is that the tremendous feature push feature push that there is from technology providers, SaaS providers. Whereas if you provide 10 features, you only need one or two, uh, but the other eight are very distracting from your prime core business. Uh, so there's a natural way in that people are embracing, uh, SA solutions, embracing cloud solutions. Uh, but what's not taken into account as much is that we love to see it is the way that you integrate all those solutions toward something that's workable for the person that's actually using them. And it's seldomly that somebody is only using one solution. There's always a chain of solutions. Um, so yeah, there are a lot of opportunities, but also a lot of challenges for us, but also for our customers, >>You see that trend toward, as a service continuing, or do you actually see based on what you're just saying that pendulum, you know, swinging back and forth, somebody comes out with a new sort of feature product and that, you know, changes the dynamic or do you see as a service really having legs? >>Ah, I, I think that's very, very good question, David, because that's something that's keeping our busy all the time. We do see a trend in a service looking at, uh, talk about pure later on. We also use pure as a service more or less. Yeah. And that really helps us. Uh, but you see, uh, um, that sometimes people make a step too, too fast, too quick, not well thought of, and then you see what they call sort of cloud repatriation, tend that people go back to what they're doing and then they stop innovating or stop leveraging. The possibilities are actually there. Uh, so from our consultancy, our guidance and architecture point of view, we try to help them as much as possible to think in a SA thought, but just don't use the, cloud's just another data center. Uh, and so it's all about managing the maturity on our side, but on our customer side as well. >>So I'm interested in how your sort of your philosophy and, and as relates, I think in, in, in terms of how you work with pure, but how do you stay tightly in lockstep with your customers so that you don't over rotate so that you don't and send them to over rotate, but then you're not also, you don't wanna be too late to the game. How, how do you manage all that? >>Oh, there's, there's, there's a world of interactions between us and our customers. And so I think a well known, uh, uh, thing that people is customer intimacy. That's very important for us to get to know our customers and get to predict which way they're moving. But the, the thing that we add to it is also the ecosystem intimacy. So no, the application and services landscape, our customers know the primary providers and work with them, uh, to, to, to create something that, that really fits the customers. They just not looked at from our own silo where a cloud managed service provider that we actually work in the ecosystem with, with, with, with the primary providers. And we have, I think with the average customers, I think we have, uh, uh, in a month we have so much interactions on our operational level and technical levels, strategic level. >>We do bring together our customers also, and to jointly think about what we can do together, what we independently can never reach. Uh, but we also involve our customers in, uh, defining our own strategy. So we have something we call a customer involvement board. So we present a strategy and say, does it make sense? Eh, this is actually what you need also. So we take a lot of our efforts into our customers and we do also, uh, understand the significant moments of truth. We are now in this, in this broadcast, David there. So you can imagine that at this moment, not thinking go wrong. Yeah. If, if, if the internet stops that we have a problem. And now, so we, we actually know that this broadcast is going on for our customers and we manage that. It's always on, uh, uh, where in the other moments in the week, we might have a little less attention, but this moment we should be there. And these moments of truth that we really embrace, we got them well described. Everybody working out line knows what the moment of truth is for our customers. Uh, uh, so we have a big logistics provider. For instance, you does not have to ask us to, uh, have, uh, a higher availability on black Friday or cyber Monday. We know that's the most important part in the year for him or her. Does it answer your question, David? >>Yes. We know as well. You know, when these big, the big game moments you have to be on your top, uh, top of your game, uh, you know, the other thing Emil about this as a service approach that I really like is, is it's a lot of it is consumption based and the data doesn't lie, you can see adoption, you know, daily, weekly, monthly. And so I wonder how you're leveraging pure as a service specifically in what kind of patterns you're seeing in, in, in the adoption. >>Uh, yeah, pure as a service for our customers is mainly never visible. Uh, we provide storage services to provide storage solutions, storage over is part of a bigger thing of a server of application. Uh, so the real benefits, to be honest, of course, towards our customer, it's all flash, uh, uh, and they have the fastest, fastest storage is available. But for ourself, we, uh, we use less resources to manage our storage. We have far more that we have a near to maintenance free storage solution now because we have it as a service and we work closely together with pure. Uh, so, uh, actually the way we treat our customers is that way pure treats us as well. And that's why there's a used click. So the real benefits, uh, uh, how we leverage is it normally we had a bunch of guys managing our storage. Now we only have one and knowing that's a shortage of it, personnel, the other persons can well be, uh, involved in other parts of our services or in other parts of an innovation. So, uh, that's simply great. >>You know, um, my takeaway the meal is that you've made infrastructure, at least, least the storage infrastructure, invisible to your customers, which is the way it should be. You didn't have to worry about it. And you've, you've also attacked the, the labor problem. You're not, you know, provisioning lungs anymore, or, you know, tuning the storage, you know, with, with arms and legs. So that's huge. So that gets me into the next topic, which is business transformation. That, that means that I can now start to attack the operational model. So I've got a different it model. Now I'm not managing infrastructure same way. So I have to shift those resources. And I'm presuming that it's a bus now becomes a business transformation discussion. How are you seeing your customers shift those resources and focus more on their business as a result of this sort of as a service trend? >>I think I do not know if they, they transform their business. Thanks to us. I think that they can more leverage their own business. They have less problems, less maintenance, et cetera, cetera, but we also add new, uh, certainties to it, like, uh, uh, the, the latest service we we released was imutable storage being the first in the Netherlands offering this thanks to, uh, thanks to the pure technology, but for customers, it takes them to give them a good night rest because, you know, we have some, uh, geopolitical issues in the world. Uh, there's a lot of hacking. People have a lot of ransomware attacks and, and we just give them a good night rest. So from a business transformation, does it transform their business? I think that gives them a comfort in running your business, knowing that certain things are well arranged. You don't have to worry about that. We will do that. We'll take it out of your hands and you just go ahead and run your business. Um, so to me, it's not really a transformation is just using the right opportunities at the right moment. >>The imutable piece is interesting because, because, but speaking of as a service, you know, anybody can go on the dark web and buy ransomware as a service. I mean, as it's seeing the, as a service economy hit, hit everywhere, the good and the, and the not so good. Um, and so I presume that your customers are, are looking at, I imutability as another service capability of the service offering and really rethinking, maybe because of the recent, you know, ransomware attacks, rethinking how they, they approach, uh, business continuance, business resilience, disaster recovery. Do you see that? >>Yep, definitely. Definitely. I tell not all of them yet. Imutable storage. So it's like an insurance as well, which you have when you have imutable storage and you have been, you have a ransomware attack at least have you part of data, which never, if data is corrupted, you cannot restore it. If your hardware is broken, you can order new hardware. Every data is corrupted. You cannot order new data. Now we got that safe and well. And so we offer them the possibility to, to do the forensics and free up their, uh, the data without tremendous loss of time. Uh, but you also see that you raise the new, uh, how do you say, uh, the new baseline for other providers as well? Eh, so there's security of the corporate information security officer, the CIO, they're all very happy with that. And they, they, they raise the baseline for us as well. So they can look at other security topics and look from say, security operation center. Cuz now we can really focus on our prime business risks because from a technical perspective, we got it covered. How can we manage the business risk, uh, which is a combination of people, processes and technology. >>Right. Makes sense. Okay. I'll give you the last word. Uh, talk about your relationship with pure, where you wanna see that that going in the future. >>Uh, I hope we've be working together for a long time. Uh, I, I ex experienced them very involved. Uh, it's not, we have done the sell and now it's all up to you now. We were closely working together. I know if I talk to my prime architect, Marcel height is very happy and it looks a little more or less if we work with pure, like we're working with colleagues, not with a supplier and a customer, uh, and uh, the whole pure concept is fascinating. Uh, I, uh, I had the opportunity to visit San Francisco head office and they told me to fish in how they launched, uh, pure being, if you want to implement it, it had to be on one credit card. The, the, the menu had to be on one credit card. Just a simple thought of put that as your big area, audacious goal to make the simplest, uh, implementable storage available. But for us, uh, it gives me the expectation that there will be a lot of more surprises with pur in the near future. Uh, and for us as a provider, what we, uh, literally really look forward to is that, that for us, these new developments will not be new migrations. It will be a gradual growth of our services or storage services. Uh, so that's what I expect. And that was what I, and we look forward to. >>Yeah, that's great. Uh, thank you so much, Emil, for coming on the, the cube and, and sharing your thoughts and best of luck to you in the future. >>Thank you. You're welcome. Thanks for having me. >>You're very welcome. Okay. In a moment, I'll be back to give you some closing thoughts on at your storage service. You're watching the cube, the leader in high tech enterprise coverage. >>Welcome to evergreen, a place where organizations grow and thrive rooted in the modern data experience in evergreen people find a seamless, simple way to leverage data through market leading sustainable technology, financial flexibility, and effortless management, allowing everyone to innovate with data confidently. Welcome to pure storage. >>Now, if you're interested in hearing more about Pure's growing portfolio of technology and services and how they're transforming the enterprise data experience, be sure to register for pure accelerate tech Fest. 22 digital event is also taking place as an in-person event. On June 8th, you can register at pure storage.com/accelerate, pure storage.com/accelerate. You're watching the cue, the leader in enterprise and emerging tech coverage.

>>Welcome everyone to the cubes coverage of women in data science conference width 2022. Live from Stanford at the Arriaga alumni center. I'm Lisa Martin. My next guest is joined me. Sharon Hutchins is here the VP and chief of AI plus data operations at Intuit Sharon. Welcome. Thank you. >>Excited to >>Be here. This is your first woods, very first but into it in words. >>That's right. Intuitively it's goes way back. I'm relatively new to the organization, but Intuit has been a long time sponsor of woods, and we love this organization. We have a great alignment with our goals, which has a passion and commitment to advancing women in technology and data science. And we have the same goal added to it. We are at 30% women in technology with the goal of hitting 37% by 2024. And I know that widths has a great goal of 30 by 30, so that's awesome. >>30 by 30. And here we are around, I think it's still less than 25% of stem positions are filled by women. But obviously you're ahead of that on Intuit congratulate. >>I think we're ahead of that. And I think part of the reason why we're ahead of that is because we've got great programs at Intuit to support women. One of our key programs is tech women at Intuit. And so it's an internal initiative where we focus on attracting, retaining and advancing women. So it's a great way for women across technology to support one another. Sure. You've heard of the term there's power in the pack, and we believe that when we connect women, we can help elevate their voices, which elevates our business and elevates our products. >>It does. In fact, there's some stats I was looking at recently that just showed if there was even 30% females at the executive level, how much more profitable organizations can be in how much higher performance they can have. So the data is there that suggests this is a really smart business decision to be making. >>Absolutely absolutely the data is, is no lie. I see it firsthand in my own business. And in fact, at Intuit, we've got a broader initiative around diversity and inclusion. It's led from the top. We have set goals across the company and we hold ourselves accountable because we know that if there are more women at the table and more diversity at the table, all around, we make better business decisions. And if you look at our product suite, which is a terrible tax, QuickBooks, mint, credit, karma, and MailChimp, we've got a diverse customer base of a hundred thousand, sorry, a hundred million customers. And so it's a lot of diversity in our customer base and we want a lot of diversity in the company. >>Fantastic. That there's such a dedicated effort to it. You just came in here from the career panel. Talk to me about that. What were some of the key things that were discussed? Yeah, >>I have my notebook open here because there were so many great takeaways from actually just from the day in general. I'm just so at, at the types of issues that women are tackling across different industries, they're tackling bias. And we know that bias is corrected when women are at the table, but from a career perspective, some of the things that were mentioned from the panel is the fact that women need to own their own careers and they need to actively manage their careers. And there's only so much your manager can do and should do. You've got to be in the driver's seat, driving your own career. One of the things that we've done at Intuit as we've implemented sort of a self promoting process. So twice a year during our promotion period, either your manager can nominate you for a promotion or you can self promote. So it's all about you creating a portfolio of all of your great work. And of course, you know, managers are very supportive of the process and support, you know, women and, and all technologists in crafting their portfolios for a fair chance at promotion. And so we just believe that if you take bias out of a career progression, you can close that fair and equitable gap that we see sometimes across industries with compensation. >>This is, that would be great if we can ever get there. One of the things that's nice about woods, I think it was last year or the year before they opened it up to high school students. So it was so nice walking in this morning, seeing the young, fresh faces, the mature faces, but you bring up a great point of women need to be their own mini to create their own personal board of directors and really be able to, to be at the helm of their career. Do you, did you find that the audience is receptive to that? Do they have the confidence to be able to do that? >>Yeah, absolutely. And, and that was a point that was raised a couple of times this morning, there were women who talked about having great mentors, but it is more important to have a board of your personal board of directors than one mentor, because you've got to make sure that you sort of tackle all aspects of your career life. And you know, it's not all about the technology, a good portion of how you spend your time and where you spend your time is collaborating and negotiating and communicating across the company. And so that's very important. And so that was a key message that folks shared this morning. >>That's good. That's incredibly important. I wish we had more time. You've got to run to the airport. Sharon, it's been a pleasure to have you on the program. Thank you for sharing what Intuit and woods are doing together, your involvement and some of the great messages, inspiring messages from the career panel. >>Exactly. And for all of the young expiring high school students. Yes. We want them to check out into it. www.intuit.com, careers, >>Intuit.com. Is it slash careers slash careers slash careers perfectly. I'm an Intuit customer. I will say. Awesome. It's been a pleasure talking to you. Thank you, Sharon. Bye-bye for Sharon Hutchins. I'm Lisa Martin. You're watching the cubes coverage of women in data science, 2022.

(upbeat music) >> Hi, I'm Joe Rodriguez, Managing Director of Financial Services at Cloudera. Welcome to the Fight Fraud with Data session. At Cloudera we believe that fighting fraud begins with data. So financial services is Cloudera's largest industry vertical. We have approximately 425 global financial services customers, which consists of 82 out of a hundred of the largest global banks of which we have 27 that are globally systemic banks. Four out of the five top stock exchanges, eight out of the top 10 wealth management firms and all four of the top credit card networks. So as you can see, most financial services institutions utilize Cloudera for data analytics and machine learning. We also have over 20 central banks and a dozen or so financial regulators. So it's an incredible footprint which gives Cloudera lots of insight into the many innovations that our customers are coming up with. Criminals can steal thousands of dollars before a fraudulent transaction is detected. So the cost to purchase your account data is well worth the price to fraudsters. According to Experian, credit and a debit card account information sells on the dark web for a mere $5 with the CVV number and up to $110 if it comes with all the bank information, including your name, social security number, date of birth, complete account numbers, and other personal data. Our customers have several key data and analytics challenges when it comes to fighting financial crime. The volume of data that they need to deal with is huge and growing exponentially. All this data needs to be evaluated in real time. There are new sources of streaming data that need to be integrated with existing legacy data sources. This includes biometrics data and enhanced authentication video surveillance, call center data, and of course all that needs to be integrated with existing legacy data sources. There is an analytics Arms Race between the banks and the criminals, and the criminal networks never stop innovating. They also have to deal with disjointed security and governance. Security and governance policies are often set per data source or application requiring redundant work across workloads. And they have to deal with siloed environments. The specialized nature of platforms and people results in disparate data sources and data management processes. This duplicates efforts and divides the business risk and crime teams, limiting collaboration opportunities between them. CDP enhances financial crime solutions to be holistic by eliminating data gaps between siloed solutions, with an enterprise data approach, advanced data analytics and machine learning. By deploying an enterprise wide data platform, you reduce siloed divisions between business risk and crime teams and enable better collaboration through industrialized machine learning, you tighten up the loop between detection and new fraud patterns. Cloudera provides the data platform on which a best of breed applications can run and leverage integrated machine learning. Cloudera stands rather than replaces your existing fraud modeling applications. So Oracle, SAS, Actimize, to name a few, integrate with an enterprise data hub to scale the data, increase speed and flexibility and improve efficacy of your entire fraud system. It also centralizes the fraud workload on data that can be used for other use cases in applications like Enhanced KYC and Customer 360 for example. I just wanted to highlight a couple of our partners in financial crime prevention, Simudyne and Quantexa. So Simudyne provides fraud simulation using agent-based modeling machine learning techniques to generate synthetic transaction data. This data simulates potential fraud scenarios in a cost-effective GDPR-compliant virtual environment to significantly improve financial crime detection systems. Simudyne identifies future fraud topologies for millions of simulations that can be used to dynamically train new machine learning algorithms for enhanced identification. And Quantexa connects the dots within your data using dynamic entity resolution, and advanced network analytics to create context around your customers. This enables you to see the bigger picture and automatically assesses potential criminal behavior. Now let's go over some of our customers and how they're using Cloudera. First, we'll talk about United Overseas Bank or UOB. UOB is a leading full service bank in Asia with a network of more than 500 offices in 19 countries and territories, in Asia Pacific, Western Europe and North America. UOB built a modern data platform on Cloudera that gives it the flexibility and speed to develop new AI and machine learning solutions and to create a data-driven enterprise. UOB set up it's big data analytics center in 2017. It was Singapore's first centralized big data unit within a bank to deepen the bank's data analytic capabilities and to use data insights to enhance the bank's performance. Essential to this work was implementing a platform that could cost efficiently bring together data from dozens of separate systems and incorporate a range of unstructured data, including voice and text. Using Cloudera CDP and machine learning, UOB gained a richer understanding of its customer preferences to help make their banking experience simpler, safer, and more reliable. Working with Cloudera, UOB has a big data platform that gives business staff and data scientists, faster access to relevant and quality data for self-service analytics, machine learning and emerging artificial intelligence solutions. With new self-service analytics and machine learning driven insights, UOB has realized improvements in digital banking, asset management, compliance, AML, and more. Advanced AML detection capabilities, help analysts detect suspicious transactions either based on hidden relationships of shell companies and high risk individuals with Cloudera and machine learning technologies, UOB was able to enhance AML detection and reduce the time to identify new links from months to three weeks. Next, let's speak about MasterCard. So MasterCard's principle business is to process payments between banks and merchants and the credit issuing banks and credit unions of the purchasers who use the MasterCard brand debit and credit cards to make purchases. MasterCard chose Cloudera Enterprise for fraud detection and to optimize their DW infrastructure, delivering deep insights and best practices and big data security and compliance. Next, let's speak about Bank Rakyat in Indonesia or BRI. BRI is one of the largest and oldest banks in Indonesia and engages in the provision of general banking services. It's headquartered in Jakarta, Indonesia. BRI is well-known for its focus on microfinancing initiatives and serves over 75 million customers through its more than 11,000 offices and rural service outposts. BRI required better insight to understand customer activity and identify fraudulent transactions. The bank needed a solid foundation that allowed it to leverage the power of advanced analytics, artificial intelligence, and machine learning to gain better understanding of customers and the market. BRI used Cloudera Enterprise data platform to build an agile and reliable, predictive augmented intelligence solution to enhance its credit scoring system. And to address the rising concern around data security from regulators and customers, BRI developed a real-time fraud detection service powered by Cloudera and Kafka, BRI's data scientists developed a machine learning model for fraud detection by creating a behavioral scoring model based on customer savings, loan transactions, deposits, payroll and other financial real-time data. This led to improvements in its fraud detection and credit scoring capabilities, as well as the development of a new digital microfinancing product. With the enablement of real-time fraud detection, BRI was able to reduce the rate of fraud by 40%. It improved relationship manager productivity by two and a half fold. It improved the credit scoring system to cut down on micro-financing loan processing times from two weeks to two days to now two minutes. So fraud prevention is a good area to start with data focus if you haven't already. It offers a quick return on investment and it's a focused area that's not too entrenched across the company. To learn more about fraud prevention, go to www.cloudera.com, and you should schedule a meeting with Cloudera to learn even more. And with that, thank you for listening and thank you for your time. (upbeat music)

>>Mhm >>Hello and welcome to today's session of the 2021 AWS Global Public Sector Partner Awards And I'm delighted to introduce our next guests. They are chris Saks Ceo of think stack and Michael Matthews President Ceo at mutual Credit Union. I'm your host for the cube Natalie. Ehrlich of course. And we're going to highlight the most impactful nonprofit partner award. Thank you gentlemen for joining the program. >>Thank you so much for having us. >>Terrific. Well delighted for you to be here. And Michael, I'd love to start with you. How did you figure out that cloud technology was critical to the future of mutual credit union? >>It's kind of by chance, Natalie, we're sitting down, we're looking at uh, racks of equipment in our I. T. Room and trying to keep everything up to date, um software updated, become a full time job and all of my staff and sat around and it come to a point where we were spending more time keeping upgrades, keeping servers upgraded. And we asked we reached out the things that they were a network provider at the time and we said, hey, whatever, what are our options? And they came back with several options and one of them was a W. S. And we explored it and uh we've not looked back. >>Terrific. Well, can you explain in further detail how you identified some of the gaps and what stood out to you about think stack, how this uh collaboration happened specifically? >>Well, some of the major gaps that you have is, you know, we're in Vicksburg Mississippi and I would say it's probably not the I. T mecca of the United States and staffing. What was a huge requirement for us if you're gonna make a move such as this, you've got to have the staffing and then along with the staffing is okay if you go out and we hire all these individuals to help help with this journey, are they going to become bored and you know, if we uh personally, if if I asked think stack, they would say, oh yes, don't do that hire us, but that's their job there, there there are parker vendor and so we went out, we asked other vendors that we use and what are the chances of us doing this and it was slim to none. And this type of technology you want, somebody who you can call and and all honesty, I want to be able to call chris and say chris, I'm having a problem versus, you know, one of my team called me and say we're having a problem, I'd rather call it and I love the vendor relationship. It has worked out well. Our major gaps in staffing though, Natalie >>what about staffing? >>That was our major gap. >>Oh God, it got it. Well, chris let's move on to you now. I'd love it if you could explain, you know, in some detail for our audience about the methodology of your company and also how you help your clients visualize their transformation processes. >>Yeah, for sure. Thanks Natalie. So we work with credit unions around the country and many of them are facing similar challenges to Michael at mutual. And in addition to staffing, they're often challenged with just the uncertain future of technology and that can include things like hurricanes, wildfires, various different disasters, pandemics and having to work remotely. But it also includes all of the opportunities that exist in transformative technologies for credit union. They need to keep pace with organizations like Robin Hood and stash and some of these other organizations that are providing cutting edge mobile apps and technology to their customers. And so how do you as an organization generally, that's a small nonprofit organization. How do you build the technology that will allow you to have a foundation to respond and react to whatever the world happens to throw actually, be that an opportunity to take advantage of for growth or some kind of risk from a cyber attack to a natural disaster. So what we try to do with our clients is take a very human centered approach first. And the idea behind that is to not walk in the door and talk about all the wonderful benefits of AWS or any other particular technology, but rather look at What do you expect. So if you take Michael, for example, you know, sitting down with him and trying to look out 10 years, what do you expect the industry to look like? What do you expect your organization to look like in? What goals do you have as a credit? You need to take advantage of those opportunities and to mitigate those risks. Once you identify those business needs, we can start looking at the humans that are involved in that experience. And so that would obviously be the employees and partners and vendors that support and make up the team at the credit union. And then obviously it's their current members and then any other members that they want to attract. And so you have to look at both sides of this. How how do you work securely efficiently? Um, as an employee on the flip side, how do you serve your members as well as you can serve them with cutting edge technology with technology that's always up and available. And then obviously with, with utmost security. So as we identify and build that picture, uh, we we generally do that with stick figures Natalie so we try to go in and and you know take um different personas and we use journey mapping and we use strategic foresight and various other exercise that help us uh literally paint a picture. Um and then from there we kind of back into that and say okay in order for you to accomplish these things into Have the organization that you want to have the next 10 years, what is your technology foundation and footprint need to look like to support that. And that's where we start to then back into that design which typically would include some type of public cloud services like AWS among other technologies from a cyber security perspective to build out that foundation and then allow them To respond and react to whatever the world throws at him over the next 10 years. >>Terrific. Well Michael would love to get your insight. How did you experience that human centered design focus, that think stack uh you know, is known for >>I think that's what says things take apart. You know, we there's numerous vendors you can go direct, there's there's plenty of software, there's plenty of technology out there you can buy. And as a credit union we can go out, we can just about get anything we wanted. But when we have a problem that we're trying to solve, it's not about that, it's about sitting down with chris his team and saying chris this this is a problem. We recently had one in password management, but we just this is a problem we're having. How do we solve this problem? And so the focus is not about trying to sell you another software. The focus is about solving the problem and having your staff and your team work more efficiently and effectively at their task. At the end of the day, you know, we're not arty people were in the financial service business. We rely on the solutions that we have to to help us do our jobs better and serve our members more effectively. >>Yeah, well, chris uh, you know, from your perspective, obviously human centered designed a really big component of your business, but what other key feature set your business apart from the competitive landscape? >>So I think the human centered design bleeds into another area that we really pride ourselves on, which is which is education and what I will call plain talk. So again, as Michael said, these organizations are our financial services, they're not technology experts, so you need to be able to communicate to those teams, those boards of directors, executive teams in a way that they can understand, and it can be uh somewhat difficult to talk about complex technical problems, um but when you boil it down back to that experience level, or you boil it down to a picture, it becomes a little easier to talk about. And what we want to be able to do as a partner is make sure our clients have confidence in the services or the products that they're purchasing, that they understand. How is this investment going to impact our credit union? How is this going to impact our members? And is this the right investment? It investments are, are significant. So we need to make sure that both parties understand the expectations of that investment and why they're doing that. So we take a lot of pride in the education and then probably the biggest piece uh and you know, it's one of those things that can be unappreciated, but its cybersecurity building, our infrastructure's with the tools and the processes and and the techniques so that everyone stays secure. I can tell you that there is nothing that would derail a digital transformation of an organization faster than a breach. So it's very important for us to make sure that those organizations, that everything that we do as fun as it is to talk about transformational technology equally as important that everything stays secure as we do it. >>Yeah. Well, excellent point. Certainly cybersecurity going to be a top uh topic for 2021 and beyond. Now, Michael, I'd like to move to you um what were the expected and unexpected business outcomes as a result of this partnership? >>Well, now we we we expected to have issues in the transition, which we really didn't um, I'll be honest with you, we we expected to have failures of servers. We expected stuff not to work because we were told by some of our other vendors that this will not work in a W S. Um and we were very surprised that most everything worked on AWS and it worked even better. Um some of the unexpected. So one of the main drivers of us moving to AWS was, I told you we had were limited on Rackspace I T room is when we want to implement a new service today, everything requires its own server. So everything needs an independent service, virtual server or physical server. We did not know how fast that could be done. So we would send a ticket in uh and we would say, hey, we need a new server here. The specs we're putting on this vendor, this is our time frame and we will get an email back the next morning. The servers ready to go where before? We weren't we didn't have that. That that was not an option. The main delay for new projects was to build up time and we weren't expecting that speech. No longer was that we all we expected that hey, we're not in a rush, but it'll be at least three months. And so now the team has to be ready to go as soon as you send the request in that we need this server is done uh and its speed up, speed up our time from uh, the idea our concept to going live with projects and we weren't that was something we had to get adjusted to. >>Yeah. And following up on that. What were some of the rational as well as the emotional impacts as a result of this collaboration? >>All right too. Two things and I don't know if they meet their, meet your that answer your question directly. But so one item we had in in a call, it's been several weeks back is when is the last time that anyone had to call it? Said, hey, I'm not working. My my can't access the server or I can complete dysfunction. And it's not been that way. We we've seen significantly improved up time, not only externally for our members who are logging in to do home banking or any other, any other feature, but internally for our staff we saw and I think it's just the entire transformation just made our company more resilient. What that was. I was as the metric we were seeing fewer instances of downtime. If we have downtown now, it's a power. We had an ice storm here in Mississippi, which is rare. Uh and we were down for a day. Um and if you lose internet today at any business you're down um The emotional side of I tell you, and it's been several years back on July four, we had a major major failure and our entire network was down and we this is prior to us moving to AWS and I'll just tell you I go home at night, this is the peace of mind that you can't put a dollar value on. I go home at night. And the last thing I'm worried about is my I. T. Network. I'm not worried about up time, I'm not worried about members, you know, going on facebook or any other social media and saying hey we can't we can't access your site what's going on and we don't have that anymore. And you know, I'm sure we could have had it any other way. But I leave that to the process of us moving from an in house holding everything on premise to moving to AWS, not only did it want to improve the results of those servers were able to back up to do different things, but it is to improve the overall working, working the functionality of our network. And I like I said I you can't put a dollar on this peace of mind and that is something I don't think there's any metric out there. You can measure, you can't measure that, but you know me and my team, we see it all the time. So >>Yeah, I agree, a peace of mind is certainly a priceless now Chris Let's move to you if you could outline to our audience some of the solutions that you provide, some of your other clients as well. Just give us a fuller picture of the services that you provide. Let's perhaps talk about, you know, 24/7 socks um services as well as data loss prevention or anything else that you think would be of interest to our audience? >>Yeah, for sure. So so obviously we I like to think of us like we design so we come in and we like to help you design and and figure out what your network needs to look like. That's not only your server and production network but also routing, switching. So Land Win S T Win various other networking projects equally. It's important that you can access the cloud as it is to move to the cloud, help with with productivity suite collaboration tools. Um and then finally, cyber security is a big part of that as well. So we try to come in and and look at all those things on the cybersecurity side. Very similar concept of what we do on the, on the cloud side, which is well design the tools and the infrastructure on the perimeter of the network, the configuration of any cloud environments, um such that they're secure and appropriate for your organization. Uh look at active directory or whatever organizational user management system you have to be using, implement those tools. Um and then as you mentioned, Natalie, we have a 24 x seven socks um with analysts watching that um that are all things that employees watching that board responding and reacting um using our our sin platform. And then we also have a 24 by seven uh network operations center or knocked. Um that is managing both the on site uh tools and network as well as any cloud uh networks that that they may have, keeping them up to date, doing all the routine maintenance, I will say from a cyber security perspective while it's not called the sock, the knock is just as important for cybersecurity as is the knock because we see that many cybersecurity attacks are often just taking advantage of systems that are not kept up to date. So the knock and that preventative maintenance is so important. So we do that for a lot of our clients. Some people pick and choose certain features. Some people use all of our services. >>Yeah. Terrific. Is that what you mean by security that's made to order? >>Yeah, exactly. Um you know, I think that's true of all technology. Um the biggest thing that we can do his look at the systems that you have during that design phase, we not only look at what technology should be should you be using, but also we take an assessment of your current team, What talent does your team have and where can we fill gaps if you have people that are doing security really well or you're doing preventative maintenance or some of these features? Uh Certainly you should keep that in house and we'll try to build services around those individuals that you have so that you're utilizing your talent to the best of your abilities and we're really fitting in um where you need us. >>Yeah. Terrific. Well, um you know, Michael, I'd like to shift to you now. What do you think will be the broader impact, you know, for the credit union industry? If others are not, you know, adopting the same kind of technologies um you know, to secure their cloud strategies. Mhm. >>I think whether credit unions want to or not, they're moving to the cloud. Um Most of our newest vendors are all cloud based. Um And so yes, he's either do it now or do it later. Which one do you want to be? And I do think that you're going to see more and more larger credit unions begin to move and it's scalable. It's more up time. It's easier to back up. A lot of people are hesitant. They don't want to take their information and move it out of town. They try to find a local data center are somewhere secure. And, and we looked at is what's the difference? You know, we, we we don't have latency issues with internet and fiber today. And so what is the difference of movement out of town and move to AWS by moving out of town? I still on the servers. I still leased the space. I still have to go over there. We have to have somebody there at all the time. And I'll be honest with you, I look at AWS as a trusted partner versus trying someone and then, and then it's not working locally and there's a lot of data centers you can, you can move to um I think I think it's going to come to the industry one way or the other. >>Yeah. Well, Terrific. Do you have any insight or you know, perhaps advice for another credit union who will, you know, like to take the next step? But, you know, as you mentioned, maybe a bit hesitant, >>I think doing your homework on it and looking at it as a, as a viable option is the first step. I know when I took it to my board and I talked about this um with chris and several people have so we we we talk about these things like the cloud, like it's this magical space and and our data is out there in Netherland and who knows where our data is. But when you break it down, you say, I have a East Coast data center and I have a West Coast data center. These are physical spaces where my dad is higher is held. Um I think it makes people think about a little differently. And and so when when you're if you're thinking about moving, if your if your in house today and you're thinking about how I'm gonna start outsourcing evaluate the cost, what are your ongoing cost, You know, who's gonna service you, Who's going to provide that service? And we've looked at other vendors over the years and I'll tell you, chris and his team have something unique that I found. Um I found very desirable in our situation is at our size and we're just under $300 million credit union. I don't think we have major projects that are too complicated to chris we're still, we're one of his better customers. I assume, chris me tell you something different in a minute, but we're not just a number, so I wouldn't go into a cube. You know, everybody knows each other. We're both small enough companies to where they're getting a lot bigger than we are now, but they're both small of companies where we're still, we we mean something to them, they care about moving to start versus just checking the box off. And so that's that's been our journey so far. Mhm. >>Yeah. Well, um, so, chris, uh, you know, first I want to know if Michael is one of your better customers, but uh, you know, really what I would I would really like to know is um, you know, what is your like, big sales pitch to? You know, as I mentioned to Michael, just some of those companies that are a little bit hesitant, a little bit on the edge. >>Michael is our best client of course because he's here doing this interview with us. No, um, you know, that that's something for us that are those, those human connections are, are, are so important and we do get very invested with any of the clients that we work with. But, um, in, in terms of the industry, I think Michael started to say at the beginning, which is, you're already there. We hear a lot of times from folks that they, I can't move to the cloud that the examiners or that the regulations do not allow them to be there. And that's, that's not true. Um, so what we're trying to do in partnership with KWS is educate the marketplaces as well as we can. Um, one of the biggest things that the cloud offers is this idea of flexibility and nimbleness and you know, unfortunately, I think Covid taught us that lesson, but there's, there's other lessons out there. I don't want to harp on Covid, I feel like that's all we talk about. Um, but if you look at any opportunity, whether it's a I machine learning, um, you know, Blockchain, pick the next technology, right? The reality is, none of us can really tell you where you're going to be in two years, maybe one year, three years, right? Like can you truly sit down after the past three years and tell me that you with no uncertainty, can tell me where your organization is going to be. And the reality is if you build your own data center right now, you have to make that guess Because you have to build something and designed for something and if you're making that investment, then you're doing that for the next probably 5-7 years. Whereas if you move to amazon you have the flexibility, whether that's scaling your organization up quickly, whether that's moving to the cloud, whether that's leveraging one of these technologies I just mentioned or in some cases even scaling back because things have hit a recession, we don't know what the future holds. But if you're in an environment like AWS, then you have the scalability and the flexibility to be able to move and pivot with that. And if you build your own and you happen to pick the wrong future, then then you could be in a bind and you've created your own limitations because you've decided to build for yourself. And I think that's the biggest thing is you can't build for yourself. You have to be flexible in this environment. That is that is the key. And the organizations that are flexible are the ones that are going to survive and thrive through all this uncertainty. Yeah. >>Well, really excellent point there. I totally agree with you. Wonderful to have you on our program. That was chris Saks Ceo of think stack as well as Michael Matthews, the president and Ceo at Mutual Credit Union. Thank you gentlemen for joining the show. Thanks so much. And that's all for this session of the AWS Global Public Sector Partner Awards. I'm your host Natalie or like thanks for >>watching. Mm.

>> Narrator: From the CUBE Studios in Palo Alto, in Boston. Connecting with thought leaders all around the world, this is a CUBE Conversation. >> Hi, everybody. Welcome to the special Cube Conversation. With COVID-19 hitting, organizations really had to focus on business resiliency, and we've got two great guests here to talk about that topic. Bob Bender's the chief technology officer at Founders Federal Credit Union. And he's joined by Jim Shook, who is the director of cybersecurity and compliance practice at Dell Technologies. Gentlemen, thanks for coming on the CUBE, great to see you. >> Thanks, Dave, great to see you, thank you. So, Bob, let's start with you, give us a little bit of background on Founders and your role. >> Founders Federal Credit Union is a financial institution that has about 225,000 members, serving them in 30 different locations, located in the Carolinas. I serve as chief technology officer bringing in the latest technology and cyber resilient direction for the company. >> Great. And Jim, talk about your role. Is this a new role that was precipitated by COVID or was this something that Dell has had for a while? Certainly relevant. >> It's actually been around for a while, Dave. The organization invested in this space going back about five years, I founded the cyber security and compliance practice. So really, my role is most of the time in the field with our customers, helping them to understand and solve their issues around the cyber resilience and cyber recovery field that we're talking about. But I also, to do that properly, spend a lot of time with organizations that are interested in that space. So it could be with an advisory partner, could be the FBI, might be a regulator, a particular group like Sheltered Harbor that we've worked with frequently. So it's just really, as you point out, taken off first with ransomware a couple of years ago, and then with the recent challenges from work from home in COVID. So we're really helping out a lot of our customers right now. >> Bob, I've talked privately to a number of CIOs and CSOs and many have said to me that when COVID hit that their business continuance was really much too (voice cuts out) Now, you guys actually started your journey way back in 2017. I wonder if you could take us back a few years and what were the trends that you were seeing that precipitated you to go on this journey? >> Well, I think we actually saw the malware, the horizon there. And I'll take you back a little further 'cause I just love that story is, when we looked at the relationship of Dell EMC, we talked to the 1% of the 1%, who is protecting their environment, their data capital, the new critical asset in our environment. And Dell EMC was the top of the line every time. When we looked at the environment and what it required, to put our assets under protection, again, we turned to Dell EMC and said, where do we need to go here? You look at this Mecklenburg County, you look at the city of Atlanta, you look at Boeing and I hate to use the examples, but some very large companies, some really experienced companies were susceptible to this malware attacks that we just knew ourself it was going to change us. So the horizon was moving fast and we had to as well. >> Well, you were in a highly regulated industry as well. How did that factor into the move? Well, you're exactly right. We had on our budget, our capital budget horizon, to do an air gap solution. We were looking at that. So the regulatory requirements were requiring that, the auditors were in every day talking about that. And we just kept framing that in what we were going to do in that environment. We wanted to make sure as we did this purpose built data bunker, that we looked at everything, talk to the experts, whether that was federal state regulation. You mentioned Sheltered Harbor, there's GDPR. All these things are changing how are we going to be able to sustain a forward look as we stand this environment up. And we also stood up a cyber security operations center. So we felt very confident in our Runbooks, in our incident response, that you would think that we would be ready to execute. I'll share with you that we reached out every which way and a friend called me and was actually in a live ransomware event and asked if I wanted to come on to their site to help them through that incident. We had some expertise on our staff that they did not possess at that time. So going into that environment, spending 30 hours of the last 72 hours of an attack we came back changed. We came back changed and went to our board and our executives and said, "We thought we knew what we were doing." But when you see the need to change from one to 10 servers recovery to 300 in 72 hours, we just realized that we had to change our plan. We turned to the investment we had already made and what we had looked at for some time, and said, "Dell EMC, we're ready to look at that "PowerProtect Cyber Recovery solution. "How can you stand this up very quickly?" >> So, Jim, Bob was saying that he looked at the 1% of the 1%, so these guys are early adopters, but anything you can add to that discussion in terms of what you saw precipitate the activity, let's go pre-COVID, certainly ransomware was part of that. Was that the big catalyst that you saw? >> It really was. So when we started the practice, it was following up on the Sony Pictures attack, which only hit Sony in that. But it was unique in that it was trying to destroy an organization as opposed to just steal their data. So we had financial industry really leading the way, the regulators in the financial industry saying, "Gosh, these attacks could happen here "and they would be devastating." So they led the way. And as our practice continued, 2016 became the year of ransomware and became more prevalent, with the attackers getting more sophisticated and being able to monetize their efforts more completely with things like cryptocurrencies. And so as we come around and start talking to Bob, he still was well ahead of the game. People were talking about these issues, starting to grow concerned, but didn't really understand what to do. And Dave, I know we'll get to this a little bit later, but even today, there's quite a bit of disconnect, many times between the business, understanding the risks of the business and then the technology, which really is the business now, but making those pieces fit together and understanding where you need to improve to secure against these risks is a difficult process. >> Well, I think I'd love to come back to Bob and try to understand how you pitch this to the board, if you will, how you made the business case. To Jim's point, the adversaries are highly capable. It's a lucrative business. I always talk to my kids about ROI numerator and denominator. If you can raise the denominator, that's going to lower the value. And that's the business that you're in is making it less attractive for the bad guys. But how did you present this to the board? Was it a board level discussion? >> It was, exactly. We brought Dell EMC PowerProtect Cyber Recovery solution to them and said, not only you're experiencing and seeing in the news daily, these attacks in our regions, but we have actually gone out into an environment and watch that attack play out. Not only that is when we stepped away, and we ran through some tabletops with them and we stepped away. And we said, "Are you okay? "Do you know how it got in? "Are you prepared to protect now and detect that again?" Within 30 days, they were hit again by the same ransomware attacks and hackers. So I hate to say this, but I probably fast forwarded on the business case and in the environment, the horizon around me, players, they made my case for me. So I really appreciated that top down approach. The board invested, the executive invested, they understood what was at risk. They understood that you don't have weeks to recover in the financial institution. You're dealing with hundreds of thousand transactions per second so it made my case. We had studied, we had talked to the experts. We knew what we wanted. We went to Dell EMC and said, "I have six months and here's my spend." And that's from equipment hitting our CoLOS and our data centers, standing it up, standing up the Runbooks and it's fully executed. And I wanted an environment that was not only holistic. We built it out to cover all of our data and that I could stand up the data center within that environment. I didn't need another backup solution. I needed a cyber recovery environment, a lifestyle change, if you would say. It's got to be different than your BCP/DR. While it inherits some of those relationships, we fund it with employees separately. We treated the incident response separately, and it is really benefited. And I think we've really grown. And we continue to stress that to educate ourselves not only at the board level, but a bottom up approach as well with the employees. 'cause they're a part of that human firewall as well. >> I think you've seen this where a lot of organizations, they do a checkbox on backup or as I was saying before, DR. But then in this world of digital, when a problem hits, it's like, "Oh-oh, we're not ready." So I wonder Jim, if we can get into this solution that Bob has been talking about the Dell EMC PowerProtect Cyber Recovery solution, there's a mouthful there. You got the power branding going on. What is that all about? Talk to us about the tech that's behind this. >> It's something that we've developed over time and really added to in our capability. So at its core, PowerProtect Cyber Recovery is going to protect your most critical data and applications so that if there is a cyber attack, a ransomware or destructive attack, they're safe from that attack. And you can take that data and recover the most important components of the business. And to do that, we do a number of things, Dave. The solution itself takes care of all these things. But number one is we isolate the data so that you can't get there from here. If you're a bad actor, even an insider, you can't get to the data because of how we've architected. And so we'll use that to update the critical applications and data. Then we'll lock that data down. People will use terms like immutability or retention lock. So we'll lock it down in that isolated environment, and then we'll analyze it. So it's one thing to be able to protect the data with the solution, it's another, to be able to say that what I have here in my data vault, in my air gapped isolated environment is clean. It's good data. And if there was an attack, I can use that to recover. And then of course over time, we've built out all the capabilities. We've made it easier to deploy, easier to manage. We have very sophisticated services for organizations that need them. And then we can do a much lighter touch for organizations that have a lot of their built in capabilities. At its core, it's a recover capability so that if there was an attack that was unfortunately successful, you don't lose your business. You're not at the mercy of the criminals to pay the ransom. You have this data and you can recover it. >> So Bob, talk to us about your objectives going into this. It's more than a project. It really is a transformation of your resiliency infrastructure, I'll call it. What were your objectives going in? A lot of companies are reacting, and it's like, you don't have time to really think. So what are the objectives? How long did it take? Paint a picture of the project and what it looked like, some of the high level milestones that you were able to achieve. >> Well, I think several times Dell EMC was able to talk us off the edge, where it really got complicated. The Foundation Services is just one of your more difficult conversations, one of the top three, definitely, patch management, notification, and how you're going to rehydrate that data, keeping that window very small to reduce that risk almost completely as you move. I think other area this apply is that we really wanted to understand our data. And I think we're on a road to achieving that. It was important that if we were going to put it into the vault, it had a purpose. And if we weren't going to put it in a vault, let's see why would we choose to do that? Why would we have this data? Why would we have this laying around? Because that's a story of our members, 225 stories. So their ability to move into financial security, that story is now ours to protect. Not only do we want to serve you in the services and the industry and make sure you achieve what you're trying to, but now we have that story about you that we have to protect just as passionately. And we had that. I think that was two of the biggest things. I think the third is that we wanted to make sure we could be successful moving forward. And I'll share with you that in the history of the credit union, we achieved one of the biggest projects here, in the last two years. That umbrella of the Cyber Recovery solution protection was immediate. We plugged in a significant project of our data capital and it's automatically covered. So I take that out of the vendor of responsibility, which is very difficult to validate, to hold accountable sometimes. And it comes back under our control into this purpose built data security and cyber resilient, business strategy. That's a business strategy for us is to maintain that presence. So everything new, we feel that we're sized, there's not going to be a rip and replace, a huge architectural change because we did have this as an objective at the very beginning. >> Tim, when you go into a project like this, what do you tell customers in terms of things that they really should be focused on to have a successful outcome? >> I'm going to say first that not everybody has a Bob Bender. So we have a lot of these conversations where we have to really start from the beginning and work through it with our customers. If you approach this the right way, it's really about the business. So what are the key processes for your business? It can be different from a bank than from a hospital than from a school point. So what are the key things that you do? And then what's the tech that supports that and underlies those processes? That's what we want to get into the vault. So we'll have those conversations early on. I think we have to help a lot of organizations through the risks too. So understand the risk landscape, why doing one or two little things aren't really going to protect you from the full spectrum of attackers. And then the third piece really is, where do we start? How do we get moving on this process? How do we get victory so that the board can understand and the business can understand, and we can continue to progress along the way? So it's always a bit of a journey, but getting that first step and getting some understanding there on the threat landscape, along with why we're doing this is very important. >> So, Bob, what about any speed bumps that you encountered? What were some of those? No project is ever perfect. What'd you run into? How'd you deal with it? >> Well, I would say the Foundation Services were major part of our time. So it really helped for Dell EMC to come and explain to us and look at that perimeter and how our data is brought into that and size that for us and make sure it's sustainable. So that is definitely, could be a speed bump that we had to overcome. But today, because of those lifts, those efforts invested the Runbooks, the increase in new products, new data as our business organically grows is a non-event. It's very plug and play and that's what we wanted from the start. Again, you go back to that conversation at 1% of the 1%, it's saying, who protects you? We followed that. We stayed with the partner we trusted, the horizon holistically has come back and paid for itself again and again. So speed bumps, we're just enjoying that we were early adapters. I don't want to throw anybody out there, but you look about two weeks ago, there was a major announcement about an attack that was successful. They got them with ransomware and the company paid the ransom. But it wasn't for the ransomware, it was for the data they stole so that they would delete it. That's again, why we wanted this environment is we needed time to react in the case that these malwares are growing much faster than we're capable of understanding how they're attacking. Now it's one, two punch, where's it going to be? Where is it going to end? We're not going to likely be patient zero, but we're also not going to have to be up at night worrying that there's a new strain out there. We have a little time now that we have this secure environment that we know has that air gap solution that was built with the regulatory consideration, with the legal considerations, with the data capital, with the review of malware and such. You can go back in time and say, "Scan to see if I have a problem. So again, the partnership is while we focus on our business, they're focusing on the strategy for the future. And that's what we need. We can't be in both places at once. >> How long did the project take from the point of which you agreed, signed the contract to where you felt like you were getting value out of the solution? >> Six months. >> Really? >> We were adamant. I'd put it off for a year and a half, that's two budget cycles basically is what it felt. And then I had to come back and ask for that money back because we felt so passionate that our data, our critical data didn't need to be at that risk any longer. So it was a very tight timeline. And again, product on prem within six months. And it was a lot of things going on there. So I just wasn't idle during that time. I was having a conversation with Dell EMC about our relationship and our contracts. Let's build that cyber resilience into the contract. Now we've got this, PowerProtect Cyber Recovery environment, let's build it here where you also agree to bring on extra hardware or product if I need that. Let's talk about me being on a technology advisory panel So I can tell you where the pricing of the regulations are going, so you can start to build that in. Let's talk about the executive board reporting of your products and how that can enable us. We're not just talking about cyber and protecting your data. We're talking about back then 60% of your keep the lights on IT person will spend with auditors, talking about how we were failing. This product helped us get ahead of that to now where we're data analytic. We're just analysts that can come back to the business table and say, "We can stand that up very quickly." Not only because of the hardware and the platform solution we have, but it is now covered with a cyber resilience of the the cyber security recovery platform. >> I want to ask you about analytics. Do you feel as though you've been able to go from what is generally viewed as a reactive mode into something that is more anticipatory or proactive using analytics? >> Well, I definitely do. We pull analytics daily and sometimes hourly to make sure we're achieving our KPIs. And looking at the KRIs, we do risk assessments from the industry to make sure if our controls layer of defenses are there, that they will still work what we stood up three years ago. So I definitely think we've gone from an ad hoc rip and replace approach to transformation into a more of a threat hunting type of approach. So our cyber security operation center, for us, is very advanced and is always looking for opportunities not only to improve, to do self-assessments, but we're very active. We're monetizing that with a CUSO arm of the credit union to go out and help others where we're successful, others that may not have that staff. It's very rewarding for us. And I hate to say it sometimes it's at their expense of being in-evolved in the event of a ransomware attack or a malware event. We learned so much the gaps we have, that we could take this back, create Runbooks and make the industry stronger against these types of attacks. >> Well, so Jim, you said earlier, not every company has a Bob Bender. How common is it that you're able to see customers go from that reactive mode into one that is proactive? Is that rare or is it increasingly common? It can't be a 100%, but what are you seeing as trends? >> It's more common now. You think of, again, back to Bob, that's three plus years ago, and he's been a tireless supporter and tireless worker in his industry and in his community, in the cyber area. And efforts like those of Bob's have helped so many other organizations I think, understand the risks and take further action. I think too, Bob talks about some of the challenges with getting started in that three year timeframe, PowerProtect Cyber Recovery has become more productized, our practice is more mature. We have more people, more help. We're still doing things out there that nobody else is touching. And so we've made it easier for organizations that have an interest in this area, to deploy and deploy quickly and to get quick value from their projects. So I think between that some of the ease of use, and then also there's more understanding, I think, of what the bad actors can do and those threats. This isn't about somebody maybe having an outage for a couple of hours. This is about the very existence of a business being threatened. That if you're attacked, you might not come back from it. And there've been some significant example that you might lose hundreds of millions of dollars. So as that awareness has grown, more and more people have come on board and been able to leverage learnings from people like Bob who started much earlier. >> Well, I can see the CFO saying, "Okay, I get it. "I have no choice where we're going to be attacked. "We know that, I got to buy the insurance. You got me." But I can see the CFO saying, "Is there any way we can "get additional value out of this? "Can we use it to improve our processes and cut our costs? "Can we monetize this in some way?" Bob, what's the reality there? Are you able to find other sources of value beyond just an insurance policy? >> Definitely, Dave you're exactly right. We're able to go out there and take these Runbooks and really start to educate what cyber resilience means and what air gap means, what are you required to do, and then what is your responsibility to do it. When you take these exercises that are offered and you go through them, and then you change that perspective and go through a live event with other folks that see that after 60 hours of folks being up straight, it really changes your view to understand that there's no finish line here. We're always going to be trying to improve the product and why not pick somebody that you're comfortable with and you trust. And I think that's the biggest win we have from this is that was a Dell EMC partnership with us. It is very comfortable fit. We moved from backup and recovery into cyber resilience and cybersecurity as a business strategy with that partner, with our partner Dell, and it hasn't failed us. It's a very comforting. We're talking about quality of life for the employee. You hear that, keep the lights on. And they've really turned into professionals to really understand what security means differently today and what that quality of data is. Reports, aren't just reports, they're data capital. The new currency today of the value we bring. So how are we going to use that? How are we going to monetize that? It's changing. And then I hate to jump ahead, but we had our perimeters at 1% of our workforce remote and all of a sudden COVID-19 takes on a different challenge. We thought we were doing really good and next, we had to move 50% of our employees out in five days. And because of that Dell EMC, holistic approach, we were protected every step of the way. We didn't lose any time saying, we bought the wrong control, the wrong hardware, the wrong software. It was a very comfortable approach. The Runbooks held us, our security posture stayed solid. It's been a very rewarding. >> Well, Bob, that was my next question, actually is because you've started the journey. >> Sorry. >> No, no, it's okay. Because you started the journey early, were you able to respond to COVID in a more fast sell manner? it sounds like you just went right in. But there's nuance there, because you've got now 50% or more of the workforce working at home, you got endpoint security to worry about. You got identity access management, and it sounds like you were, "No problem. "We've got this covered." Am I getting that right? >> You're exactly right, Dave. We test our endpoints daily. We make sure that we understand what residue of data is where. And when we saw that employee shift to a safe environment, our most consideration at that time, we felt very comfortable that the controls we had in place, again, Dell and their business partners who we are going to hold true and be solid. And we test those metrics daily. I get reports back telling me, what's missing in patch management, what's missing in a backup. I'll go back to keeping BCP and cyber security separate. In the vault, we take approach of recovery and systems daily. And now that goes from maybe a 2% testing rate almost to 100% annually. So again, to your point, COVID was a real setback. We just executed the same Runbooks we had been maturing all along. So it was very comfortable for employees and it was very comfortable for our IT structure. We did not feel any service delays or outages because of that. In a day, when you have to produce that data, secure that data, every minute of every day of every year, it's very comforting to know it's going to happen. You don't push that button and nothing happens. It's executed as planned. >> Jim, did you see a huge spike in demand for your services as a result of COVID and how did you handle it? You guys got a zillion customers, how did you respond and make sure that you were taking care of everybody? >> We really did see a big spike, Dave. I think there were a couple of things going on. As Bob points out, the security posture changes very quickly when you're sending people to work from home or people remotely, you've expanded or obliterated your parameter, you're not ready for it. And so security becomes even more important and more top of mind. So with PowerProtect Cyber Recovery, we can go in and we can protect those most critical applications. So organizations are really looking at their full security posture. What can we do better to detect and protect against these threats? And that's really important. For us, we're focusing on what happens when those fail? And with that extension and people going home, and then the threat actors getting even more active, the possibilities of those failures become more possible and the risks are just in front of everybody. So I think it was a combination of all of those things. Many, many customers came to us very quickly and said, "Tell us more about what you're doing here. "How does it fit into our infrastructure? "What does it protect us against? "How quickly can we deploy?" And so there has been a huge uptake in interest. And we're fortunate in that, as you pointed out early on, Dave, we invested early here. I'm five years into the practice. We've got a lot of people, very mature, very sophisticated in this area, a lot of passion among our team. And we can go take care of all those customers. >> Bob, if you had a mulligan, thinking about this project, what would you do differently if you had a chance to do it over? >> I think I would start earlier. I think that was probably the biggest thing I regret in that realizing you need to understand that you may not have the time you think you do. And luckily, we came to our senses, we executed and I got to say it was with common sense, comfortable products that we already understood. We didn't have to learn a whole new game plan. I don't worry about that. I don't worry about the sizing of the product 'cause we did it, I feel correctly going in and it fits us as we move forward. And we're growing at an increased rate that we may not expect. It's plug and play. Again, I would just say, stay involved, get involved, know that what we know today about malware and these attacks are only going to get more complicated. And that's where I need to spend my time, my group become experts there. Why I really cherish the Dell EMC relationship is from the very beginning, they've always been very passionate on delivering products that recover and protect and now are cyber resilient. I don't have to challenge that, you pay for what you get for. And I just got to say, I don't think there's much other than I would have started earlier. So start today, don't put it off. >> So you said earlier though, you're never done, you never are, in this industry. So what's your roadmap look like? Where do you want to go from here with this capability? >> I definitely want to keep educating my staff, keep training them, keep working with Dell. Again, I tell you they're such forward thinking as a company. They saved me that investment. So if you're looking at part of the investment, it's got to be, are you with a partner that's forward thinking? So we definitely want to mature this, challenge it, keep challenging, keep working with Dell and their products to deliver more. Again, we go to the federal and state regulatory requirements. You go to the Sheltered Harbor, the ACET testing from the NCUA regulators, just software asset management. You can keep on going down the line. This product, I hate to say it, it's like the iPhone. You think about how many products the iPhone has now made not relevant. I don't even own a flashlight, I don't think. This is what the Dell product line brings to me is that I can trust they're going to keep me relevant so I can stay at the business table and design products that help our members today. >> Jim, how about from Dell's perspective, the roadmap, without giving away any confidential information, where do you want to take this? We talk about air gaps. I remember watching that documentary Zero Days and hearing them say, "We got through an air gap. "No problem." So analytics obviously plays a role in this machine intelligence, machine learning, AI. Where does Dell want to take this capability? Where do you see that going? >> We've got some things in mind and then we're always going to listen to our customers and see where the regulations are going to. And thus far, we've been ahead of those with the help of people like Bob. I think where we have a huge advantage, Dave is with PowerProtect Cyber Recovery. It's a product. So we've got people who are dedicated to this full time. We have a maturity in the organization, in the field to deliver it and to service it. And having something as a product like that really enables us to have roadmaps and support and things that customers need to really make this effective for them. So as we look out on the product, and thanks for your reminder, I don't want to risk saying anything here I'm going to get in trouble for. We look at things in three paths. One is we want to increase the ability for our customers to consume the product. So they want it in different forms. They might want it in appliances, in the Cloud, virtual, all of those things are things that we've developed and continue to develop. They want more capabilities. So they want the product to do more things. They want it to be more secure, and keeping up. As you mentioned, machine learning with the analytics is a big key for us. Even more mundane things like operational information makes it easier to keep the vault secure and understand what's going on there without having to get into it all the time. So those are really valuable. And then our third point, really, we can't do everything. And so we have great partners, whether they're doing delivery, offering cyber recovery as a service or providing secure capabilities, like our relationship with Unisys. They have a stealth product that is a zero knowledge, zero trust product that helps us to secure some of the connections to the vault. We'll keep iterating on all of those things and being innovative in this space, working with the regulators, doing things. Bob's mentioned a couple of times, Sheltered Harbor. We've been working with them for two years to have our product endorsed to their specification. Something that nobody else is even touching. So we'll continue along all those paths, but really following our customer's lead in addition to maybe going some places that they haven't thought about before. >> It's great guys. I have to fear that when you talk to SecOps pros, you ask them what their biggest challenge is, and they'll say lack of talent, lack of skills. And so this is a great example, Jim, you're mentioning it, you've productized this. This is a great example of a technology company translating, IT labor costs into R&D. And removing those so customers can spend time running their business. Bob and Jim, thanks so much for coming on the CUBE. Great story. Really appreciate your time. >> Thank you, Dave. >> Thank you, Dave. >> Thanks, Bob. >> All right. And thank you everybody for watching. This is Dave Vellante for the CUBE. We'll see you next time. (instrumental music)

>>from around the globe. It's the Cube covering space and cybersecurity. Symposium 2020 hosted by Cal Poly. Yeah, Lauren, Welcome to the Space and Cybersecurity Symposium 2020 put on by Cal Poly and hosted with Silicon Angle acute here in Palo Alto, California for a virtual conference. Couldn't happen in person this year. I'm John for a year. Host the intersection of space and cybersecurity. I'll see critical topics, great conversations. We got a great guest here to talk about the addressing the cybersecurity workforce gap, and we have a great guest, a feature speaker. Stewart Knox, the undersecretary with California's Labor and Workforce Development Office. Stewart Thanks for joining us today. >>Thank you so much, John. Appreciate your time today and listening to a little bit of our quandaries with making sure that we have the security that's necessary for the state of California and making sure that we have the work force that is necessary for cybersecurity in space. >>Great, I'd love to get started. I got a couple questions for you, but first take a few minutes for an opening statement to set the stage. >>Sure, realizing that in California we lead the nation in much of cybersecurity based on Department of Defense contractors within the Santa California leading the nation with over $160 billion within the industry just here in California alone and having over 800,000 bus workers. Full time employment in the state of California is paramount for us to make sure that we face, um, defense manufacturers approximate 700,000 jobs that are necessary to be filled. There's over 37,000 vacancies that we know of in California, just alone in cybersecurity. And so we look forward to making sure that California Workforce Development Agency is leading the charge to make sure that we have equity in those jobs and that we are also leading in a way that brings good jobs to California and to the people of California, a good education system that is developed in a way that those skills are necessarily met for the for the employers here in California and the nation, >>One of the exciting things about California is obviously look at Silicon Valley, Hewlett Packard in the garage, storied history space. It's been a space state. Many people recognize California. You mentioned defense contractors. It's well rooted with with history, um, just breakthroughs bases, technology companies in California. And now you've got technology. This is the cybersecurity angle. Um, take >>them into >>Gets more commentary to that because that's really notable. And as the workforce changes, these two worlds are coming together, and sometimes they're in the same place. Sometimes they're not. This is super exciting and a new dynamic that's driving opportunities. Could you share, um, some color commentary on that dynamic? >>Absolutely. And you're so correct. I think in California we lead the nation in the way that we developed programs that are companies lead in the nation in so many ways around, uh, cyberspace cybersecurity, Uh, in so many different areas for which in the Silicon Valley is just, uh, such a leader in those companies are good qualified companies to do so. Obviously, one of the places we play a role is to make sure that those companies have a skilled workforce. Andi, also that the security of those, uh, systems are in place for our defense contractors onda For the theater companies, those those outlying entities that are providing such key resource is to those companies are also leading on the cutting edge for the future. Also again realizing that we need to expand our training on skills to make sure that those California companies continue to lead is just, um, a great initiative. And I think through apprenticeship training programs on By looking at our community college systems, I think that we will continue to lead the nation as we move forward. >>You know, we've had many conversations here in this symposium, virtually certainly around. The everyday life of consumer is impacted by space. You know, we get our car service Uber lyft. We have maps. We have all this technology that was born out of defense contracts and r and D that really changed generations and create a lot of great societal value. Okay, now, with space kind of on the next generation is easier to get stuff into space. The security of the systems is now gonna be not only paramount for quality of life, but defending that and the skills are needed in cybersecurity to defend that. And the gap is there. What >>can we >>do to highlight the opportunities for career paths? It used to be the day when you get a mechanical engineering degree or aerospace and you graduated. You go get a job. Not anymore. There's a variety of of of paths career wise. What can we do to highlight this career path? >>Absolutely correct. And I think it starts, you know, k through 12 system on. I know a lot of the work that you know, with this bow and other entities we're doing currently, uh, this is where we need to bring our youth into an age where they're teaching us right as we become older on the uses of technology. But it's also teaching, um, where the levels of those education can take them k through 12. But it's also looking at how the community college system links to that, and then the university system links above and beyond. But it's also engage in our employers. You know, One of the key components, obviously, is the employers player role for which we can start to develop strategies that best meet their needs quickly. I think that's one of the comments we hear the most labor agency is how we don't provide a change as fast as we should, especially in technology. You know, we buy computers today, and they're outdated. Tomorrow it's the same with the technology that's in those computers is that those students are going to be the leaders within that to really develop how those structures are in place. S O. K. Through 12 is probably primary place to start, but also continuing. That passed the K 12 system and I bring up the employers and I bring them up in a way, because many times when we've had conversations with employers around what their skills needs were and how do we develop those better? One of the pieces that of that that I think is really should be recognized that many times they recognized that they wanted a four year degree, potentially or five year, six year degree. But then, when we really looked at the skill sets, someone coming out of the community college system could meet those skill sets. And I think we need to have those conversations to make sure not that they shouldn't be continue their education. They absolutely should. Uh, but how do we get those skill sets built into this into 12 plus the two year plus the four year person? >>You know, I love the democratization of these new skills because again. There's no pattern matching because they weren't around before, right? So you gotta look at the exposure to your point K through 12 exposure. But then there's an exploration piece of whether it's community, college or whatever progression. And sometimes it's nonlinear, right? I mean, people are learning different ways, combining the exposure and the exploration. That's a big topic. Can you share your view on this because this now opens up mawr doors for people choice. You got new avenues. You got online clock and get a cloud computing degree now from Amazon and walk in and help. I could be, you know, security clearance, possibly in in college. So you know you get exposure. Is there certain things you see? Is it early on middle school? And then I'll see the exploration Those air two important concepts. Can you unpack that a little bit exposure and exploration of skills? >>Absolutely. And I think this takes place, you know, not only in in the K 12 because somebody takes place in our community colleges and universities is that that connection with those employers is such a key component that if there's a way we could build in internships where experiences what we call on the job training programs apprenticeship training pre apprenticeship training programs into a design where those students at all levels are getting an exposure to the opportunities within the Space and Cybersecurity Avenue. I think that right there alone will start to solve a problem of having 37 plus 1000 openings at any one time in California. Also, I get that there's there's a burden on employers. Thio do that, and I think that's a piece that we have to acknowledge. And I think that's where education to play a larger role That's a place we had. Labor, Workforce, Development Agency, player role With our apprenticeship training programs are pre apprenticeship training programs. I could go on all day of all of our training programs that we have within the state of California. Many of the list of your partners on this endeavor are partners with Employment Training Panel, which I used to be the director of the Brown administration of um, That program alone does incumbent worker training on DSO. That also is an exposure place where ah worker, maybe, you know, you know, use the old adage of sweeping the floors one day and potentially, you know, running a large portion of the business, you know, within years. But it's that exposure that that employee gets through training programs on band. Acknowledging those skill sets and where their opportunities are, is what's valid and important. I think that's where our students we need to play a larger role in the K 12. That's a really thio Get that pushed out there. >>It's funny here in California you're the robotics clubs in high school or like a varsity sport. You're seeing kids exposed early on with programming. But you know, this whole topic of cybersecurity in space intersection around workforce and the gaps and skills is not just for the young. Certainly the young generations gotta be exposed to the what the careers could be and what the possible jobs and societal impact and contributions what they could be. But also it's people who are already out there. You know, you have retraining re Skilling is plays an important role. I know you guys do a lot of thinking on this is the under secretary. You have to look at this because you know you don't wanna have a label old and antiquated um systems. And then a lot of them are, and they're evolving and they're being modernized by digital transformation. So what does the role of retraining and skill development these programs play? Can you share what you guys are working on in your vision for that? >>Absolutely. That's a great question. And I think that is where we play a large role, obviously in California and with Kobe, 19 is we're faced with today that we've never seen before, at least in my 27 years of running program. Similar Thio, of course, in economic development, we're having such a large number of people displaced currently that it's unprecedented with unemployment rates to where we are. We're really looking at How do we take? And we're also going to see industries not return to the level for which they stood at one point in time. Uh, you know, entertainment industries, restaurants, all the alike, uh, really looking at how do we move people from those jobs that were middle skill jobs, topper skilled jobs? But the pay points maybe weren't great, potentially, and there's an opportunity for us to skill people into jobs that are there today. It may take training, obviously, but we have dollars to do that generally, especially within our K 12 and are que 14 systems and our universities. But we really wanna look at where those skill sets are are at currently. And we want to take people from that point in time where they said today, and try to give them that exposure to your point. Earlier question is, how do we get them exposed to a system for which there are job means that pay well with benefit packages with companies that care about their employees? Because that's what our goal is. >>You know. You know, I don't know if you have some visibility on this or ah opinion, but one observation that I've had and talking to whether it's a commercial or public sector is that with co vid uh, there have been a lot of awareness of the situation. We're adequately prepared. There's, um, readiness. But as everyone kind of deals with it, they're also starting to think about what to do. Post covert as we come out of it, Ah, growth strategy for a company or someone's career, um, people starting to have that on the top of their minds So I have to ask you, Is there anything that you see that they say? Okay, certain areas, maybe not doubling down on other areas. We're gonna double down on because we've seen some best practices on a trajectory of value for coming out of co vid with, you know, well, armed skills or certain things because you because that's what a lot of people are thinking right now. It's probably cyber is I mean, how many jobs are open? So you got well, that that's kind of maybe not something double down on here are areas we see that are working. Can you share your current visibility to that dynamic? >>Absolutely. Another great question. One of the key components that we look at Labor Workforce Development Agency. And so look at industries and growth modes and ones that are in decline boats. Now Kobe has changed that greatly. We were in a growth rate for last 78 years. We saw almost every industry might miss a few. You know that we're all in growth in one way or enough, obviously, that has changed. Our landscape is completely different than we saw 67 months ago. So today we're looking at cybersecurity, obviously with 30 plus 1000 jobs cos we're looking at Defense Department contractor is obviously with federal government contracts. We were looking at the supply chains within those we're looking at. Health care, which has always been one, obviously are large one of our large entities that has has grown over the years. But it's also changed with covered 19. We're looking at the way protective equipment is manufactured in the way that that will continue to grow over time. We're looking at the service industry. I mean, it will come back, but it won't come back the way we've seen it, probably in the past, but where the opportunities that we develop programs that we're making sure that the skill sets of those folks are transferrable to other industries with one of the issues that we face constant labor and were forced moment programs is understanding that over the period of time, especially in today's world again, with technology that people skill sets way, don't see is my Parents Day that you worked at a job for 45 years and you retired out of one job. Potentially, that is, that's been gone for 25 years, but now, at the pace for which we're seeing systems change. This is going to continue to amp up. I will stay youth of today. My 12 year old nephew is in the room next door to me on a classroom right now online. And so you know, there. It's a totally different atmosphere, and he's, you know, enjoying actually being in helping learning from on all online system. I would not have been able to learn that way, but I think we do see through the K Through 12 system where we're moving, um, people's interest will change, and I think that they will start to see things in a different way than we have in the past. They were forced systems. We are an old system been around since the thirties. Some even will say prior to the thirties came out of the Great Depression in some ways, and that system we have to change the way we develop our programs are should not be constant, and it should be an evolving system. >>It's interesting a lot of the conversation between the private and public partnerships and industry. You're seeing an agile mind set where it's a growth mindset. It's also reality based mindset and certainly space kind of forces. This conversation with cyber security of being faster, faster, more relevant, more modern. You mentioned some of those points, and with co vid impact the workforce development, it's certainly going to put a lot of pressure on faster learning. And then you mentioned online learning. This has become a big thing. It's not just putting education online per se. There's new touch points. You know you got APS, you got digital. This digital transformation is also accelerating. How do you guys view the workforce development? Because it's going to be open. It's gonna be evolving. There's new data coming in, and maybe kids don't want to stare at a video conference. Is there some game aspect to it? Is there how do you integrate thes new things that are coming really fast? And it's happening kind of in real time in front of our eyes. So I love to get your thoughts on how you guys see that, because it will certainly impact their ability to compete for jobs and or to itself learn. >>I think one of the key components of California's our innovation right and So I think one of the things that we pride ourselves in California is around that, um that said, that is the piece that I think the Silicon Valley and there's many areas in California that that have done the same, um, or trying to do the same, at least in their economy, is to build in innovation. And I think that's part of the K through 12 system with our with our our state universities and our UCS is to be able to bridge that. I think that you we see that within universities, um, that really instill an innovative approach to teaching but also instill innovation within their students. I'm not sure there yet with our fully with our K 12 system. And I think that's a place that either our community colleges could be a bridge, too, as well. Eso that's one component of workforce development I think that we look at as being a key. A key piece you brought up something that's really interesting to me is when you talk about agile on day, one of the things that even in state government on this, is gonna be shocking to you. But we have not been an agile system, Aziz. Well, I think one of the things that the Newsome administration Governor Newsom's administration has brought is. And when I talk about agile systems, I actually mean agile systems. We've gone from Kobol Systems, which are old and clunky, still operating. But at the same time, we're looking at upgrading all of our systems in a way that even our technology in the state of California should be matching the technology that our great state has within our our state. So, um, there in lies. It's also challenges of finding the qualified staff that we need in the state of California for all of our systems and servers and everything that we have. Um, currently. So you know, not only are we looking at external users, users of labor, workforce development, but we're looking at internal users that the way we redevelop our systems so that we are more agile in two different ways. >>You just got me. I triggered with COBOL. I programmed in the eighties with COBOL is only one credit lab in college. Never touched it again. Thank God. But this. But this >>is the >>benefit of cloud computing. I think this is at the heart, and this is the undertone of the conference and symposium is cloud computing. You can you can actually leverage existing resource is whether there legacy systems because they are running. They're doing a great job, and they do a certain work load extremely well. Doesn't make sense to replace what does a job, but you can integrate it in this. What cloud does this is Opening up? Can mawr more and more capabilities and workloads? This is kind of the space industry is pointing to when they say we need people that can code. And that could solve data problems. Not just a computer scientist, but a large range of people. Creative, um, data, science, everything. How does California's workforce solve the needs of America's space industry? This is because it's a space state. How do you see that? Let your workforce meeting those needs. >>Yeah, I think I think it's an investment. Obviously, it's an investment on our part. It's an investment with our college partners. It's an investment from our K 12 system to make sure that that we are allocating dollars in a way through meeting the demand of industry Onda, we do look at industry specific around there needs. Obviously, there's a large one. We wanna be very receptive and work with our employers and our employee groups to make sure that we need that demand. I think it's putting our money where our mouth is and and designing and working with employer groups to make sure that the training meets their needs. Um, it's also working with our employer groups to make sure that the employees are taken care of. That equity is built within the systems, Um, that we keep people employed in California on their able to afford a home, and they're able to afford a life here in California. But it's also again, and I brought up the innovation component. I think it's building an innovation within systems for which they are employers but are also our incoming employees are incumbent workers. And you brought this up earlier. People that already employed and people that are unemployed currently with the skill set that might match up, is how do we bridge those folks into employment that they maybe have not thought about. We have a whole career network of systems out throughout the city, California with the Americans job Centers of California on day will be working, and they already are working with a lot of dislocated workers on day. One of the key components of that is to really look at how do we, um, take what their current skills that might be and then expose them to a system for which we have 37 plus 1000 job openings to Andi? How do we actually get those books employed? It's paying for potentially through those that local Workforce Innovation Opportunity Act, funding for Americans job centers, um, to pay for some on the job, training it Z to be able to pay for work experiences. It's to be able to pay for internships for students, um, to get that opportunity with our employers and also partner with our employers that they're paying obviously a percentage of that, too. >>You know, one of the things I've observed over my, um, career 54 times around the sun is you know, in the old days when I was in college in school, you had career people have longer jobs, as you mentioned. Not like that anymore. But also I knew someone I'm gonna be in line to get that job, maybe nepotism or things of that nature. Now the jobs have no historical thing or someone worked longer in a job and has more seniority. Ah, >>lot of these >>jobs. Stewart don't HAVA requirements like no one's done them before. So the ability for someone who, um, is jumping in either from any college, there's no riel. It's all level set. It's like complete upside down script here. It's not like, Oh, I went to school. Therefore I get the job you could be Anyone could walk into these careers because the jobs air so new. So it's not where you came from or what school you went to or your nationality or gender. The jobs have been democratized. They're not discriminating against people with skills. So this opens up mawr. How >>do you >>see that? Because this really is an opportunity for this next generation to be more diverse and to be mawr contributed because diversity brings expertise and different perspectives. Your thoughts on that? >>Absolutely. And that was one of the things we welcome. Obviously we want to make sure that that everybody is treated equally and that the employers view everyone as employer employer of choice but an employee of choices. Well, we've also been looking at, as I mentioned before on the COVITZ situation, looking at ways that books that are maybe any stuck in jobs that are don't have a huge career pathway or they don't have a pathway out of poverty. I mean, we have a lot of working for people in the state of California, Um, that may now do to cope and lost their employment. Uh, this, you know, Let's let's turn back to the old, you know? Let's try, eliminate, eliminate, eliminate. How do we take those folks and get them employed into jobs that do have a good career pathway? And it's not about just who you knew or who you might have an in with to get that job. It is based on skills, I think, though that said there we need to have a better way to actually match those jobs up with those employers. And I think those are the long, ongoing conversations with those employer groups to make sure that one that they see those skill sets is valid and important. Um, they're helping design this crew sets with us, eh? So that they do match up and that were quickly matching up those close skills. That so that we're not training people for yesterday skills. >>I think the employer angles super important, but also the educators as well. One of the things that was asked in another question by the gas they they said. She said The real question to ask is, how early do you start exposing the next generation? You mentioned K through 12. Do you have any data or insight into or intuition or best practice of where that insertion point is without exposure? Point is, is that middle school is a elementary, obviously high school. Once you're in high school, you got your training. Wheels are off, you're off to the races. But is there a best practice? What's your thoughts? Stewart On exposure level to these kinds of new cyber and technical careers? >>Sure, absolutely. I I would say kindergarten. We San Bernardino has a program that they've been running for a little bit of time, and they're exposing students K through 12 but really starting in kindergarten. One is the exposure Thio. What a job Looks like Andi actually have. I've gone down to that local area and I've had three opportunity to see you know, second graders in a health care facility, Basically that they have on campus, built in on dear going from one workstation as a second grader, Uh, looking at what those skills would be and what that job would entail from a nurse to a Dr Teoh physician's assistant in really looking at what that is. Um you know, obviously they're not getting the training that the doctor gets, but they are getting the exposure of what that would be. Andi, I think that is amazing. And I think it's the right place to start. Um, it was really interesting because I left. This was pre covet, but I jumped on the plane to come back up north. I was thinking to myself, How do we get this to all school district in California, where we see that opportunity, um, to expose jobs and skill sets to kids throughout the system and develop the skill set so that they do understand that they have an opportunity. >>We're here at Cal Poly Space and Cybersecurity Symposium. We have educators. We have, um, students. We have industry and employers and government together. What's your advice to them all watching and listening about the future of work. Let's work force. What can people do? What do you think you're enabling? What can maybe the private sector help with And what are you trying to do? Can you share your thoughts on that? Because we have a range from the dorm room to the boardroom here at this event. Love to get your thoughts on the workforce development view of this. >>Yeah, absolutely. I think that's the mix. I mean, I think it's going to take industry to lead A in a lot of ways, in terms of understanding what their needs are and what their needs are today and what they will be tomorrow. I think it takes education, toe listen, and to understand and labor and workforce development also listen and understand what those needs will look like. And then how do we move systems? How do we move systems quickly? How do we move systems in a way that meets those needs? How do we, uh, put money into systems where the most need is, but also looking at trends? What is that trend going to look like in two years? What does that train gonna look like in five years. But that's again listening to those employers. Um, it's also the music community based organizations. I think, obviously some of our best students are also linked to CBS. And one way or another, it may be for services. It maybe for, uh, faith based. It may be anything, but I think we also need to bring in the CBS is Well, ah, lot of outreach goes through those systems in conjunction with, but I think that's the key component is to make sure that our employers are heard on. But they sit at the table like you said to the boardroom of understanding, and I think bringing students into that so that they get a true understanding of what that looks like a well, um, is a key piece of this. >>So one of the things I want to bring up with you is maybe a bit more about the research side of it. But, um, John Markoff, who was a former New York Times reporter with author of the book What the Dormouse, said It was a book about the counter culture of the sixties and the computer revolution, and really there was about how government defense spending drove the computer revolution that we now saw with Apple and PC, and then the rest is history in California has really participated. Stanford, uh, Berkeley and the University of California School system and all the education community colleges around it. That moment, the enablement. And now you're seeing space kind of bringing that that are a lot of research coming in and you eat a lot of billionaires putting money in. You got employers playing a role. You have this new focus space systems, cybersecurity, defending and making it open and and not congested and peaceful is going to enable quickly new inflection points for opportunities. E want to get your thoughts on that? Because California is participate in drove these revolutions that created massive value This next wave seems to be coming upon us. >>Yeah, absolutely. And again, Nazis covered again as too much of ah starting point to this. But I think that is also an opportunity to actually, because I think one of the things that we were seeing seven months ago was a skill shortage, and we still see the skills shortage, obviously. But I think a key piece to that is we saw people shortage. Not only was it skills shortage, but we didn't have enough people really to fill positions in addition to and I think that people also felt they were already paying the bills and they were making ends meet and they didn't have the opportunities. Thio get additional skills This again is where we're looking at. You know that our world has changed. It changed in the sixties based on what you're you're just expressing in terms of California leading the way. Let's like California lead the way again in developing a system from which labor, workforce development with our universities are, you know, are amazing universities and community college system and structure of how do we get students back into school? You know, a lot of graduates may already have a degree, but how do they now take a skill so that they already have and develop that further with the idea that they those jobs have changed? Whales have a lot of folks that don't have a degree, and that's okay. But how do we make that connection to a system that may have failed? Ah, lot of our people over the years, um, and our students who didn't make it through the school system. How do we develop in adult training school? How do we develop contract education through our community college system with our employer sets that we developed cohorts within those systems of of workers that have amazing talents and abilities to start to fill these needs? And I think that's the key components of hearing Agency, Labor, Workforce Development Agency. We work with our community. Colleges are UCS in our state universities t develop and figure that piece out, and I think it is our opportunity for the future. >>That's such a great point. I want to call that out This whole opportunity to retrain people that are out there because these air new jobs, I think that's a huge opportunity, and and I hope you keep building and investing in those programs. That's that's really worth calling out. Thank you for doing that. And, yeah, it's a great opportunity. Thes jobs they pay well to cyber security is a good job, and you don't really need to have that classical degree. You can learn pretty quickly if you're smart. So again, great call out there question for you on geography, Um, mentioned co vid we're talking about Covic. Virtualization were virtual with this conference. We couldn't be in person. People are learning virtually, but people are starting to relocate virtually. And so one observation that I have is the space state that California is there space clusters of areas where space people hang out or space spaces and whatnot. Then you got, like, the tech community cybersecurity market. You know, Silicon Valley is a talented in these hubs, and sometimes cyber is not always in the same hubs of space. Maybe Silicon Valley has some space here, Um, and some cyber. But that's not generally the case. This is an opportunity potentially to intersect. What's your thoughts on this? Because this is This is something that we're seeing where your space has historical, you know, geography ease. Now, with borderless communication, the work boat is not so much. You have to move the space area. You know what I'm saying? So okay. What's your thoughts on this? How do you guys look at this? Is on your radar On how you're viewing this this dynamic? >>It's absolute on our radar, Like you said, you know, here we are talking virtually on and, you know, 75% of all of our staff currently in some of our department that 80% of our staff are now virtual. Um you know, seven months ago, uh, we were not were government again being slow move, we quickly transitioned. Obviously, Thio being able to have a tele work capacity. We know employers move probably even quickly, more quickly than we did, but we see that as an opportunity for our rural areas. Are Central Valley are north state um, inland Empire that you're absolutely correct. I mean, if you didn't move to a city or to a location for which these jobs were really housed, um, you didn't have an opportunity like you do today. I think that's a piece that we really need to work with our education partners on of to be able to see how much this has changed. Labor agency absolutely recognizes this. We are investing funding in the Central Valley. We're investing funding in the North State and empire to really look a youth populations of how the new capacity that we have today is gonna be utilized for the future for employers. But we also have to engage our universities around. This is well, but mostly are employers. I know that they're already very well aware. I know that a lot of our large employers with, um, Silicon Valley have already done their doing almost 100% tele work policies. Um, but the affordability toe live in rural areas in California. Also, it enables us to have, ah, way thio make products more affordable is, well, potentially in the future. But we want to keep California businesses healthy and whole in California. Of course, on that's another way we can We can expand and keep California home to our 40 plus million people, >>most to a great, great work. And congratulations for doing such a great job. Keep it up. I gotta ask about the governor. I've been following his career since he's been office. A za political figure. Um, he's progressive. He's cutting edge. He likes toe rock the boat a little bit here and there, but he's also pragmatic. Um, you're starting to see government workers starting to get more of a tech vibe. Um um just curious from your perspective. How does the governor look at? I mean, the old, almost the old guard. But like you know, used to be. You become a lawyer, become a lawmaker Now a tech savvy lawmaker is a premium candidates, a premium person in government, you know, knowing what COBOL is. A start. I mean, these are the things. As we transform and evolve our society, we need thinkers who can figure out which side the streets, self driving cars go on. I mean, who does that? I mean, it's a whole another generation off thinking. How does the Governor how do you see this developing? Because this is the challenge for society. How does California lead? How do you guys talk about the leadership vision of Why California and how will you lead the future? >>Absolutely no governor that I'm aware of that I've been around for 26 27 years of workforce development has led with an innovation background, as this governor has a special around technology and the use of technology. Uh, you know, he's read a book about the use of technology when he was lieutenant governor, and I think it's really important for him that we, as his his staff are also on the leading edge of technology. I brought a badge. I'll systems. Earlier, when I was under the Brown administration, we had moved to where I was at a time employment training panel. We moved to an agile system and deported that one of the first within within the state to do that and coming off of an old legacy system that was an antique. Um, I will say it is challenging. It's challenging on a lot of levels. Mostly the skill sets that are folks have sometimes are not open to a new, agile system to an open source system is also an issue in government. But this governor, absolutely. I mean, he has established three Office of Digital Innovation, which is part of California and department technology, Um, in partnership with and that just shows how much he wants. Thio push our limits to make sure that we are meeting the needs of Californians. But it's also looking at, you know, Silicon Valley being at the heart of our state. How do we best utilize systems that already there? How do we better utilize the talent from those those folks is well, we don't always pay as well as they dio in the state. But we do have great benefit packages. Everybody does eso If anybody's looking for a job, we're always looking for technology. Folks is well on DSO I would say that this governor, absolute leads in terms of making sure that we will be on cutting edge of technology for the nation, >>you know, and, you know, talk about pay. I mean, I know it's expensive to live in some parts of California, but there's a huge young population that wants a mission driven job and serving, um, government for the governments. Awesome. Ah, final parting question for you, Stuart, is, as you look at, um, workforce. Ah, lot of people are passionate about this, and it's, you know, you you can't go anywhere without people saying, You know, we got to do education this way and that way there's an opinion everywhere you go. Cybersecurity is a little bit peaked and focused, but there are people who are paying attention to education. So I have to ask you, what creative ways can people get involved and contribute to workforce development? Whether it's stem underrepresented minorities, people are looking for new, innovative ways to contribute. What advice would you give these people who have the passion to contribute to the next cyber workforce. >>Yeah, I appreciate that question, because I think is one of the key components. But my secretary, Julie Sue, secretary of Labor and Workforce Development Agency, talks about often, and a couple of us always have these conversations around. One is getting people with that passion to work in government one or on. I brought it up community based organizations. I think I think so many times, um, that we didn't work with our CBS to the level of in government we should. This administration is very big on working with CBS and philanthropy groups to make sure that thing engagement those entities are at the highest level. So I would say, You know, students have opportunities. Thio also engage with local CBS and be that mission what their values really drives them towards Andi. That gives them a couple of things to do right. One is to look at what ways that we're helping society in one way or another through the organizations, but it also links them thio their own mission and how they could develop those skills around that. But I think the other piece to that is in a lot of these companies that you are working with and that we work with have their own foundations. So those foundations are amazing. We work with them now, especially in the new administration. More than we ever have, these foundations are really starting to help develop are strategies. My secretary works with a large number of foundations already. Andi, when we do is well in terms of strategy, really looking at, how do we develop young people's attitudes towards the future but also skills towards the future? >>Well, you got a pressure cooker of a job. I know how hard it is. I know you're working hard, appreciate you what you do and and we wish you the best of luck. Thank you for sharing this great insight on workforce development. And you guys working hard. Thank you for what you do. Appreciate it. >>Thank you so much. Thistle's >>three cube coverage and co production of the space and cybersecurity supposed in 2020 Cal Poly. I'm John for with silicon angle dot com and the Cube. Thanks for watching

>> Announcer: From around the globe, it's theCUBE! Covering Space and Cybersecurity Symposium 2020. Hosted by Cal Poly. >> Hello everyone. Welcome to the Space and Cybersecurity Symposium 2020, put on by Cal Poly and hosted with SiliconANGLE theCUBE here in Palo Alto, California for a virtual conference. Couldn't happen in person this year, I'm John Furrier, your host. The intersection of space and cybersecurity, obviously critical topics, great conversations. We've got a great guest here to talk about the addressing the cybersecurity workforce gap. And we have a great guest, and a feature speaker, Stewart Knox, the undersecretary with California's Labor and Workforce Development Office. Stewart, thanks for joining us today. >> Thank you so much, John. I appreciate your time today and listening to a little bit of our quandaries with making sure that we have the security that's necessary for the state of California and making sure that we have the workforce that is necessary for cybersecurity in space. >> Great. I'd love to get started. I've got a couple of questions for you, but first take a few minutes for an opening statement to set the stage. >> Sure, realizing that in California, we lead the nation in much of cybersecurity based on Department of Defense contractors within the state of California, leading the nation with over 160 billion dollars within the industry just here in California alone and having over 800,000 plus workers full time employment in the state of California is paramount for us to make sure that we face defense manufacturers, approximately 700,000 jobs that are necessary to be filled. There's over 37,000 vacancies that we know of in California, just alone in cybersecurity. And so we look forward to making sure that California Workforce Development Agency is leading the charge to make sure that we have equity in those jobs and that we are also leading in a way that brings good jobs to California and to the people of California, a good education system that is developed in a way that those skills are necessarily met for the employers here in California, and the nation. >> One of the exciting things about California is obviously look at Silicon Valley, Hewlett Packard and the garage story, history, space, it's been a space state, many people recognize California. You mentioned defense contractors. It's well rooted with history, just breakthroughs, bases, technology companies in California. And now you've got technology. This is the cybersecurity angle. Take a minute to give some more commentary to that because that's really notable, and as the workforce changes, these two worlds are coming together and sometimes they're in the same place, sometimes they're not. This is super exciting and a new dynamic that's driving opportunities. Could you share some color commentary on that dynamic? >> Absolutely. And you're so correct. I think in California, we lead the nation in the way that we develop programs, that our companies lead in the nation in so many ways around cyberspace, cybersecurity in so many different areas, for which in the Silicon Valley is just such a leader and those companies are good, qualified companies to do so. Obviously one of the places we play a role is to make sure that those companies have a skilled workforce. And also that the security of those systems are in place for our defense contractors and for the feeder companies, those outlying entities that are providing such key resources to those companies are also leading on a cutting edge for the future. Also again, realizing that we need to expand our training and skills to make sure that those California companies continue to lead, is just such a great initiative. And I think through apprenticeship training programs, and looking at our community college systems, I think that we will continue to lead the nation as we move forward. >> You know, we've had many conversations here in this symposium virtually, certainly around the everyday life of a consumer is impacted by space. You know, we get our car service, Uber, Lyft, we have maps, we have all this technology that was born out of defense contracts and R and D that really changed generations and created a lot of great societal value. Okay, now with space kind of going to the next generation, it's easier to get stuff into space. The security of the systems is now going to be not only paramount for quality of life, but defending that, and the skills are needed in cybersecurity to defend that. And the gap is there. What can we do to highlight the opportunities for career paths? It used to be the day where you get a mechanical engineering degree or aerospace and you graduate and you go get a job, not anymore. There's a variety of paths, career-wise. What can we do to highlight this career path? >> Absolutely correct. And I think it starts, you know, K through 12 system. And I know a lot of the work that (indistinct) and other entities are doing currently. This is where we need to bring our youth into an age where they're teaching us, right, as we become older, on the uses of technology, but it's also teaching where the levels of those education can take them, K through 12, but it's also looking at how the community college system links to that. And then the university system links above and beyond, but it's also engaging our employers. You know, one of the key components, obviously as the employers play a role, for which we can start to develop strategies that best meet their needs quickly. I think that's one of the comments we hear the most, at Labor Agency is how we don't provide a change as fast as we should, especially in technology. You know, we buy computers today and they're outdated tomorrow. It's the same with the technology that's in those computers is that those students are going to be the leaders within that to really develop how those structures are in place. So K through 12 is probably our primary place to start, but also continuing that past the K-12 system. And I bring up the employers and I bring them up in a way, because many times when we've had conversations with employers around what their skills needs were and how do we develop those better? One of the pieces of that, that I think really should be recognized, many times they recognize that they wanted a four year degree, potentially, or a five year or six year degree. But then when we really looked at the skillsets, someone coming out of the community college system could meet those skillsets. And I think we need to have those conversations to make sure, not that they shouldn't be continuing their education. They absolutely should. But how do we get those skillsets built into this into a K-12 plus the two year plus the four year person? >> Yeah, I love the democratization of these new skills, because again, there's no pattern matching 'cause they weren't around before, right? So you got to look at the exposure, to your point, K through 12 exposure, but then there's an exploration piece of it, whether it's community college or whatever progression, and sometimes it's nonlinear, right? I mean, people are learning different ways, combining the exposure and the exploration. That's a big topic. Can you share your view on this? Because this now opens up more doors for people, choice, you got new avenues, you got online, I can get a cloud computing degree now from Amazon and walk in and help. I can be, you know, security clearance possibly in college. So, you know, you get exposure. Is there certain things you see, is it early on? Middle school? And then obviously the exploration, those are two important concepts. Can you unpack that a little bit, exposure and exploration of skills? >> Absolutely, and I think this takes place not only in the K-12 system, but it takes place in our community colleges and our four year universities is that, that connection with those employers is such a key component, that if there's a way we could build in internships, work experiences, what we call on the job training programs, apprenticeship training, pre-apprenticeship training programs, into a design where those students at all levels are getting an exposure to the opportunities within the space and cybersecurity avenue. I think that right there alone will start to solve a problem of having 37 plus thousand openings at any one time in California. Also, I get that there's a burden on employers to do that. And I think that's a piece that we have to acknowledge, and I think that's where education can play a larger role. That's a place we at Labor Workforce Development Agency play a role with our apprenticeship training programs, our pre-apprenticeship training programs. I could go on all day of all of our training programs that we have within the state of California. Many of the list of your partners on this endeavor are partners with Employment Training Panel, which I used to be the director of the Brown administration of. That program alone does incumbent worker training. And so that also is an exposure place where a worker may be, you know, I use the old adage of sweeping the floors one day and potentially writing a large portion of the business, within years. But it's that exposure that that employee gets through training programs, and acknowledging those skill sets and where their opportunities are, is what's valid and important. I think that's where our students, we need to play a larger role than the K-12 system, really, to get that pushed out there. >> It's funny, here in California, you were the robotics clubs in high school are like a varsity sport, you're seeing kids exposed early on with programming, but it's, you know, this whole topic of cybersecurity and space intersection around workforce, and the gaps in the skills, it's not just for the young, certainly the young generation's got to be exposed to what the careers could be and what the possible jobs and societal impact and contributions, what they could be, but also it's people who are already out there. You know, you have retraining, re-skilling, this plays an important role. I know you guys do a lot of thinking on this as the undersecretary, you have to look at this because you know, you don't want to have a label "old and antiquated" systems. And a lot of them are, and they're evolving and they're being modernized by digital transformation. So what does the role of retraining and skill development for these programs play? Can you share what you guys are working on and your vision for that? >> Absolutely. That's a great question. 'Cause I think that is where we play a large role, obviously in California and with COVID-19 is we are faced with today that we've never seen before. At least in my 27 years of running programs, similar to all workforce and economic development, we are having such a large number of people displaced currently that it's unprecedented, we've got employment rates to where we are. We're really looking at how do we take, and we're also going to see industries not return to the level for which they stood at one point in time, you know, entertainment industries, restaurants, all of the alike, really looking at how do we move people from those jobs that were middle skill jobs to upper skill jobs, but the pay points maybe weren't great, potentially. And there's an opportunity for us to skill people into jobs that are there today. It may take training, obviously, but we have dollars to do that, generally, especially within our K-12 and our K-14 systems and our universities. But we really want to look at where those skillsets are at, currently. And we want to take people from that point in time where they sit today, and try to give them that exposure to your point earlier question is how do we get them exposed to a system for which there are job with means that pay well, with benefit packages, with companies that care about their employees. 'Cause that's what our goal is. >> You know, I don't know if you have some visibility on this or an opinion, but one of the observations that I've had and talk to whether it's a commercial or public sector, is that with COVID, there's been a lot of awareness of the situation. We're adequately prepared. There's some readiness, but as everyone kind of deals with it, they're also starting to think about what to do post-COVID as we come out of it, a growth strategy for a company or someone's career. People are starting to have that on the top of their minds. So I have to ask you, is there anything that you see that they say, "Okay, certain areas, maybe not doubling down on other areas, we're going to double down on because we've seen some best practices on a trajectory of value for coming out of COVID with, you know, well-armed skills or certain things." 'Cause that's what a lot of people are thinking right now. And certainly cyber is, I mean, how many jobs are open? So you got "Well that that's kind of maybe not something to double down on, here are areas we see that are working." Can you share your current visibility into that dynamic? >> Absolutely. Another great question. One of the key components that we look at at Labor Workforce Development Agency is to look at the industries in growth modes and ones that are in decline modes. Now COVID has changed that greatly. We were in a growth mode for the last seven, eight years. We saw almost every industry, minus a few, that were all in growth in one way or another, but obviously that has changed. Our landscape is completely different than we saw six, seven months ago. So today we're looking at cybersecurity, obviously with 30 plus thousand job openings, we are looking at Defense Department contractors, obviously, with federal government contracts. We are looking at the supply chains within those. We are looking at healthcare, which has always been one of obviously our large, one of our large entities that has grown over the years. But it's also changed with COVID-19. We're looking at the way protective equipment is manufactured and the way that that will continue to grow over time, we're looking at the service industry. I mean, it will come back, but it won't come back the way we've seen it probably in the past, but where are the opportunities that we develop programs that we are making sure that the skill sets of those folks are transferable to other industries. We have one of the issues that we face constantly in Labor and Workforce Development programs is understanding that over the period of time, especially in today's world, again, with technology, that people's skillsets, we don't see as in my parents' day that you worked at a job for 45 years and you retired at one job potentially. That's been gone for 25 years, but now at the pace for which we are seeing systems change, this is going to continue to amp up, and I will say, youth of today, my 12 year old nephew is in the room next door to me, in a classroom right now online. And so, you know, it's a totally different atmosphere and he's enjoying actually being at home and learning from an all online system. I would not have been able to learn that way, but I think we do see through the K through 12 system, the way we're moving, people's interests will change. And I think that they will start to see things in a different way than we have in the past. They were forced systems. We are an old system, been around since the 30s. Some even we'll say prior to the 30s, came out of the Great Depression in some ways. And that system, we have to change the way we develop our programs. It should not be constant and it should be an evolving system. >> It's interesting. A lot of the conversations between the private and public partnerships and industry, you're seeing an agile mindset where it's a growth mindset, it's also a reality-based mindset and certainly space kind of forces this conversation with cybersecurity of being faster, faster, more relevant, more modern. And you mentioned some of those points, and with COVID impact, the workforce development is certainly going to put a lot of pressure on faster learning. And then you mentioned online learning. This has become a big thing. It's not just putting education online per se. There's new touchpoints. You know, you've got apps, you've got digital. This digital transformation is also accelerating. How do you guys view the workforce development? Because it's going to be open. It's going to be evolving. There's new data coming in and maybe kids don't want to stare at a video conference. Is there some game aspect to it? Is there, how do you integrate these new things that are coming really fast, and it's happening kind of in real time in front of our eyes. So I'd love to get your thoughts on how you guys see that because it'll certainly impact their ability to compete for jobs and/or to self-learn. >> Well, I think one of the key components of California is our innovation, right? And so I think one of the things that we pride ourselves in California is around that. That said, that is the piece that I think the Silicon Valley, and then there's many areas in California that have done the same, or tried to do the same, at least in their economy is to build in innovation. And I think that's part of the K through 12 system, with our state universities and our UCs is to be able to bridge that. I think that you, we see that within universities that really instill an innovative approach to teaching, but also instill innovation within their students. I'm not sure we're there yet fully, with our K-12 system, and I think that's a place that either our community colleges could be a bridge to as well. So that's one component of workforce development I think that we look at as being a key piece. You brought up something that's really interesting to me is when you talk about agile, and one of the things that even in state government, this is going to be shocking to you, but we have not been an agile system as well. I think one of the things that the Newsom administration, Governor Newsom's administration has brought is, and when I talk about agile systems, I actually mean agile systems. We've gone from COBOL systems, which are old and clunky, still operating, but at the same time, we're looking at upgrading all of our systems in a way that even in our technology, in the state of California should be matching, the technology that our great state has within our state. So therein lies, it's also challenges of finding the qualified staff that we need in the state of California for all of our systems and servers and everything that we have currently. So, you know, not only are we looking at external users of labor workforce development, but we're looking at internal users, that the way we redevelop our systems so that we are more agile in two different ways. >> You just got me triggered with COBOL. I programmed in the 80s with COBOL, only one credit lab in college. Never touched it again, thank God. But this is the benefit of cloud computing. I think this is at the heart and this is the undertone of the conference and symposium is cloud computing, you can actually leverage existing resources, whether they're legacy systems, because they are running, they're doing a great job and they do a certain workload extremely well. Doesn't make sense to replace if it does a job. You can integrate it and that's what cloud does. This is opening up more and more capabilities and workloads. This is kind of what the space industry is pointing to when they say "We need people that can code and that can solve data problems," not just the computer scientists, but a large range of people, creative, data, science, everything. How does California's workforce solve the needs of America's space industry? This is because it's a space state. How do you see the labor workforce meeting those needs? >> Yeah, I think it's an investment. Obviously it's an investment on our part. It's an investment with our college partners. It's an investment from our K-12 system to make sure that we are allocating dollars in a way through meeting the demand of industry. And we do look at industry-specific around their needs, obviously this is a large one. We want to be very receptive, and work with our employers and our employee groups to make sure that we meet that demand. I think it's putting our money where our mouth is and designing and working with employer groups to make sure that the training meets their needs. It's also working with our employer groups to make sure that the employees are taken care of and that equity is built within the systems, that we keep people employed in California, and they're able to afford a home and they're able to afford a life here in California, but it's also again and I brought up the innovation component. I think it's building an innovation within systems for which they are employers, but are also our incoming employees and our incumbent workers. And you brought those up earlier, people that are already employed and people that are unemployed currently with a skill set that might match up is how do we bridge those folks into employment that they maybe have not thought about? We have a whole career network of systems out throughout The City of California with the America's Job Centers of California, and they will be working, and they already are working with a lot of dislocated workers. And one of the key components of that is to really look at how do we take what their current skillset might be, and then expose them to a system for which we have 37 plus thousand job openings, too, and how do we actually get those folks employed? It's paid for potentially through that local Workforce Innovation and Opportunity Act funding through our America's Job Centers, to pay for some on the job training. It's to be able to pay for work experiences, it's to be able to pay for internships for students to get that opportunity with our employers and also partnering with our employers that they're paying, obviously a percentage of that too. >> You know, one of the things I've observed over my career, 54 times around the sun is, you know, in the old days, when I was in college and school, you had career, people had the longer jobs, as you mentioned it's not like that anymore. But also I knew someone I'm going to to be in line to get that job, maybe nepotism or things of that nature. Now the jobs have no historical thing or someone worked longer in a job and has more seniority. A lot of these jobs, Stewart, don't have requirements, like no one's done them before. So the ability for someone who is jumping in, either from any college, there's no real, it's all level set, it's a complete upside down script here. It's not like, "Oh, I went to school, therefore I get the job." It can be, anyone can walk into these careers because the jobs are so new. So it's not where you came from or what school you went to or your nationality or gender. The jobs have been democratized. They're not discriminating against people with skills. This opens up more. How do you see that? Because this really is an opportunity for this next generation to be more diverse and to be more contributive because diversity brings expertise and different perspectives. Your thoughts on that. >> Absolutely, and that was one of the things we welcome, obviously. We want to make sure that that everybody is treated equally and that the employers view everyone as an employer of choice, but an employee of choice as well. We've also been looking at, as I mentioned before on the COVID situation, looking at ways that folks that are maybe stuck in jobs that don't have a huge career pathway, or they don't have a pathway out of poverty. I mean, we have a lot of working poor people in the state of California that may now due to COVID lost their employment. This, you know, let's turn back to the old adage, let's turn lemons into lemonade. How do we take those folks and get them employed into jobs that do have a good career pathway? And it's not about just who you knew, or who you might have an in with to get that job. It is based on skills. I think though, that said, we need to have a better way to actually match those jobs up with those employers. And I think those are the ongoing conversations with those employer groups to make sure that, one, that they see those skill sets as valid and important. They're helping design those career sets with us so that they do match up and that we're quickly matching up those close skillsets so that we're not training people for yesterday's skills. >> I think the employer angle's super important, but also the educators as well. One of the things that was asked in another question by the guest, they said, she said, the real question to ask is, how early do you start exposing the next generation? You mentioned K through 12, do you have any data or insight into or intuition or best practice of where that insertion point is, that exposure point? Is it middle school? Is it elementary, honestly, high school, once you're in high school, you got your training wheels are off, you're off to the races, but is there a best practice? What's your thoughts, Stewart, on exposure level to these kinds of new cyber and technical careers? >> Sure, absolutely. I would say kindergarten. We, San Bernardino has a program that they've been running for a little bit of time, and they're exposing students K through 12, but really starting in kindergarten. One is the exposure to what a job looks like. And then actually I've gone down to that local area and I've had the opportunity to see, you know, second graders in a healthcare facility, basically, that they have on campus built-in. And they're going from one workstation as a second grader, looking at what those skills would be and what that job would entail from a nurse to a doctor, to a physician's assistant, and really looking at what that is. You know, obviously they're not getting the training that a doctor gets, but they are getting the exposure of what that would be. And I think that is amazing. And I think it's the right place to start. It was really interesting 'cause as I left, this was pre-COVID, but as I jumped on the plane to come back up north, I was thinking to myself, "How do we get this to all school districts in California where we see that opportunity to expose jobs and skill sets to kids throughout the system and develop those skill sets so that they do understand that they have an opportunity?" >> We are here at Cal Poly Space and Cybersecurity Symposium. We have educators, we have students, we have industry and employers and government together. What's your advice to them all watching and listening about the future of work, this workforce, what can people do? What do you think you're enabling? What can maybe the private sector help with and what are you trying to do? Can you share your thoughts on that? Because we have a range from the dorm room to the boardroom here at this event. I'd love to get your thoughts on the workforce development view of this. >> Yeah, absolutely. And I think that's the mix. I mean, I think it's going to take industry to lead, in a lot of ways in terms of understanding what their needs are and what their needs are today and what they will be tomorrow. I think it takes education to listen, and to understand, and labor and workforce development to also listen and understand what those needs will look like. And then how do we move systems? How do we move systems quickly? How do we move systems in a way that meets those needs? How do we put money into systems where the most need is, but also looking at trends? What is that trend going to look like in two years? What is that trend going to look like in five years, (indistinct), again, listening to those employers, it's also listening to the community-based organizations. I think obviously some of our best students are also linked to CBOs in one way or another. It may be for services, it may be for faith-based, it may be anything, but I think we also need to bring in the CBOs as well. A lot of outreach goes through those systems in conjunction with, but I think that's the key component is to make sure that our employers are heard and that they sit at the table, like you said, to the boardroom of understanding, and I think bringing students into that so that they get a true understanding of what that looks like as well, is a key piece of this. >> Stu, one of the things I want to bring up with you is maybe a little bit more about the research side of it, but John Markoff, who was a former New York times reporter, but author of the book, "What the Dormouse Said," it was a book about the counterculture of the 60s and the computer revolution. And really it was about how government defense spending drove the computer revolution that we now saw with Apple and PC. And then the rest is history in California, has really participated, Stanford, the Berkeley, and the University of California school system, and all the education community colleges around it. That moment, the enablement, and now you're seeing space kind of bringing that, a lot of research coming in, need a lot of billionaires putting money in, you've got employers playing a role. You have this new focus, space systems, cybersecurity defending and making it open and, not congested and peaceful, is going to enable quickly, new inflection points for opportunities. I want to get your thoughts on that because California's participated and drove those revolutions, that's created massive value. This next wave seems to be coming upon us. >> Yeah, absolutely. And again, not to use COVID again as too much of a starting point to this, but I think that is also an opportunity to actually, 'cause I think one of the things that we were seeing seven months ago was a skill shortage, and we still see the skill shortage, obviously. But I think a key piece to that is we saw a people shortage. Not only was it skill shortage, but we didn't have enough people really to fill positions in addition, too, and I think that people also felt they were already paying the bills and they were making ends meet and they didn't have the opportunities to get additional skills. This again is where we're looking at, you know, our world has changed. It changed in the 60s based on what you're just expressing in terms of California leading the way. Let's let California lead the way again in developing a system for which labor workforce development with our universities, our amazing universities and community college system structure, of how do we get students back into school? You know, a lot of graduates may already have a degree, but how do they now take a skill set that they already have and develop that further with the idea that those jobs have changed? We also have a lot of folks that don't have a degree, and that's okay, but how do we make that connection to a system that may have failed a lot of our people over the years, and our students who didn't make it through the school system, how do we develop an adult training school? How do we develop contract education through our community college system with our employer sets, that we develop cohorts within the systems of workers that have amazing talents and abilities to start to fill these needs. And I think that's the key components that here at Labor Workforce Development Agency, we work with our community colleges, our UCs and our state universities to develop and figure that piece out. And I think it is our opportunity for the future. >> That's such a great point. I want to call that out, this whole opportunity to retrain people that are out there because these are new jobs. I think that's a huge opportunity and, I hope you keep building and investing in those programs. That's really worth calling out. Thank you for doing that. And yeah, it's a great opportunity to gain these jobs. They pay well, too, cybersecurity's a good job and you don't really need to have that classical degree. You can learn pretty quickly if you're smart. So again, great call out there. A question for you on geography. You mentioned COVID, we're talking about COVID, virtualization, we're virtual with this conference. We couldn't be in person. People are learning virtually, but people are starting to relocate virtually. And so one observation that I have is the space state that California is, there's space clusters of areas where space people hang out, or space spaces and whatnot. Then you got like the tech community, the cybersecurity market, you know, Silicon Valley, you know, the talent is in these hubs. And sometimes cyber's not always in the same hubs as space. Maybe Silicon Valley has some space here, and some cyber, but that's not generally the case. This is an opportunity potentially to intersect. What's your thoughts on this? Because this is something that we're seeing, where space has historical, you know, geographies. Now with borderless communication, the work mode is not so much "You have to move to this space area." You know what I'm saying? So what's your thoughts on this? How do you guys look at, this is on your radar, and how you're viewing this dynamic. >> It's absolutely on our radar. Like you said, you know, here we are, talking virtually, and you know, 75% of all of our staff currently, in some of our departments, it's 80% of our staff, are now virtual. Seven months ago, we were not. Government, again, being slow move, we quickly transitioned, obviously, to being able to have a telework capacity. We know employers moved probably even more quickly than we did, but we see that as an opportunity for our rural areas, our Central Valley, our Northstate, Inland Empire. That you're absolutely correct. I mean, if you didn't move to a city or to a location for which these jobs were really housed, you didn't have an opportunity like you do today. I think that's a piece that we really need to work with our education partners on, to be able to see how much this has changed. Labor Agency absolutely recognizes this. We are investing funding in the Central Valley. We're investing funding in the Northstate and Inland Empire to really look at youth populations, of how the new capacity that we have today is going to be utilized for the future for employers. But we also have to engage our universities around this as well, but mostly our employers. I know that they're already very well aware. I know that a lot of our large employers within Silicon Valley have already done it. They're doing almost 100% telework policies, but the affordability to live in rural areas in California, also enables us to have a way to make products more affordable as well, potentially in the future. But we want to keep California businesses healthy and whole in California, of course. And that's another way we can expand and keep California home to our 40 plus million people. >> Well Stewart, great work and congratulations for doing such a great job. Keep it up. I got to ask you about the governor. I've been following his career since he's been in office as a political figure. He's progressive, he's cutting edge. He likes to rock the boat a little bit here and there, but he's also pragmatic. You're starting to see government workers starting to get more of a tech vibe. Just curious from your perspective, how does the governor look at, I mean, the old, I won't say "old guard," but like, you know, it used to be, you become a lawyer, you become a lawmaker. Now a tech savvy lawmaker is a premium candidate, is a premium person in government. Knowing what COBOL is, is a start. I mean, these are the things that as we transform and evolve our society, we need thinkers who can figure out which side of the streets self driving cars go on. I mean, who does that? It's a whole nother generation of thinking. How does the governor, how do you see this developing? Because this is the challenge for society. How does California lead? How do you guys talk about the leadership vision of why California and how will you lead the future? >> Absolutely. No governor that I'm aware of, and I've been around for 26, 27 years of workforce development, has led with an innovation background as this governor has, especially around technology and the use of technology. You know, he's wrote a book about the use of technology when he was lieutenant governor. And I think it's really important for him that we, as his staff are also on the leading edge of technology. I brought up agile systems earlier. When I was under the Brown administration, we had moved to where I was at the time, Employment Training Panel, we moved to an agile system and deployed that. One of the first within the state to do that and coming off of an old legacy system that was an antique. I will say it is challenging. It's challenging on a lot of levels. Mostly the skill sets that our folks have, sometimes are not open to a new agile system, to an open source system is also an issue in government. But this governor absolutely, I mean, he has established the Office of Digital Innovation, which is part of California Department of Technology, in partnership with, and that just shows how much he wants to push our limits to make sure that we are meeting the needs of Californians. But it's also looking at, you know, Silicon Valley being at the heart of our state, how do we best utilize systems that are already there? How do we better utilize the talent from those folks as well? We don't always pay as well as they do in the state, but we do have great benefit packages, everybody knows. So if anybody's looking for a job, we're always looking for technology folks as well. And so I would say that this governor absolutely leads in terms of making sure that we will be on cutting edge technology for the nation. >> And, you know, talk about pay, I mean, I know it's expensive to live in some parts of California, but there's a huge young population that wants a mission-driven job, and serving the government for the government, it's awesome. A final parting question for you, Stewart, is as you look at the workforce, a lot of people are passionate about this and it's, you know, you can't go anywhere without people saying, you know, "We've got to do education this way, and that way," there's an opinion everywhere you go. Cybersecurity, obviously a little bit peaked and focused, but there are people who are paying attention to education. So I have to ask you what creative ways can people get involved and contribute to workforce development, whether it's STEM, underrepresented minorities, people are looking for new, innovative ways to contribute. What advice would you give these people who have the passion to contribute to the next cyber workforce? >> Yeah, I appreciate that question because I think it's one of the key components that my secretary, Julie Su, secretary of Labor and Workforce Development Agency, talks about often. And a couple of us always have these conversations around one is getting people with that passion to work in government, one, or, and I brought it up community-based organizations. I think so many times that we didn't work with our CBOs to the level that in government, we should, this administration is very big on working with CBOs and philanthropy groups to make sure that the engagement of those entities are at the highest level. So I would say, students have opportunities to also engage with local CBOs and be that mission, what their values really drives them towards. And that gives them a couple of things to do, right? One is to look at ways that we're helping society in one way or another through those organizations, but it also links them to their own mission and how they can develop those skills around that. But I think the other piece to that is in a lot of these companies that you are working with and that we work with, have their own foundations. So those foundations are amazing. We work with them now, especially in the Newsom administration, more than we ever have. These foundations are really starting to help develop our strategies. My secretary works with a large number of foundations already, and we do as well in terms of strategy, really looking at how do we develop young people's attitudes towards the future, but also skills towards the future? >> Well, you got a pressure cooker of a job. I know how hard it is. I know you're working hard and appreciate what you do. And, and we wish you the best of luck, thank you for sharing this great insight on workforce development. And you guys are working hard. Thank you for what you do. Appreciate it. >> Great. Thank you so much. I appreciate it. >> This is theCUBE coverage and co-production of the Space and Cybersecurity Symposium 2020 with Cal Poly. I'm John Furrier with siliconangle.com and theCUBE. Thanks for watching. (calm music)

>> (vocalizing) >> Narrator: From theCube studios in Palo Alto and Boston, it's theCube. Covering IBM Think, brought to you by IBM. >> Hi everybody, this is Dave Vallante and this is our continuing coverage of Think 2020, the digital event experience. This is the post-thing, the sort of halo effect, the afterthoughts, and joining me is Rob Thomas, he's back. The Senior Vice president of Cloud and Data Platform. Rob, thanks for taking some time to debrief on Think. >> Absolutely Dave, great to be here, good to see you again. >> Yeah, so you have a great event, you guys put it together in record time. I want to talk about sort of your innovation agenda. I mean, you are at the heart of innovation. You're talking cloud, data, AI, really the pillars of innovation, I could probably add in edge to extend the cloud. But I wonder if you could talk about your vision for the innovation agenda and how you're bringing that to customers. I mean, we heard from PayPal, you talked about Royal Bank of Scotland, Credit Mutual, a number of customer examples. How are you bringing innovation forward with the customer? >> I wouldn't describe innovation, maybe I'd give it two different categories. One is, I think the classic term would be consumerization, and you're innovating by making interiorized technology really easy to use. That's why we built out a huge design capability, it's why we've been able to get products like Watson Assistant to get companies live in 24 hours. That's the consumerization aspect, just making enterprise products really easy to use. The second aspect is even harder, which is, how do you tap into an institution like IBM Research, where we're doing fundamental invention. So, one of our now strengths in the last couple of months was around taking technology out of IBM Debater, project Debater, the AI system that could debate humans and then putting that into enterprised products. And, you saw companies like PayPal that are using Watson Assistant and now they have access to that kind of language capability. There's only two aspects here, there's the consumerization and then there's about fundamental technology that really changes how businesses can operate. >> I mean, the point you made about speed and implementation in your key note was critical, I mean really, within 24 hours, very important during this pandemic. Talk about automation, you know, you would think by now right, everything's automation. But, now you're seeing a real boom in automation and it really is driven by AI, all this data, so there's seems to be a next wave, almost a renaissance, if you will, in automation. >> There is and I think automation, when people hear first of the term, it's sometimes a scary term. Because people are like hey, is this going to take my job? Gain a lot of momentum for automation is a difficult, repetitive tasks that nobody really wanted to do in the first place. Whether it's things like data matching, containerizing an application. All these are really hard things and the output's great, but nobody really wants to do that work, they just want the outcome. And, as we've started to demonstrate different use cases for automation that are in that realm, a lot of momentum has taken off, that we're seeing. >> I want to come back to this idea of consumerization and simplification. I mean, when you think about what's been happening over the last several years. And, you and I have talked about this a lot, AI for consumer versus AI for business and enterprise. And really, one of the challenges for the encumbrance, if you will, is to really become data driven, put data at the core and apply machine intelligence to that, just to that data. Now the good news is, they don't have to invent all this stuff, because guys like you are doing that and talk about how you're making that simple. I mean, cloud packs is an example of that, simplification, but talk about how customers are going to be able to tap into AI without having to be AI inventors. >> Well, the classic AI problem actually is a data problem, and the classic data problem is data slide over, which is a company has got a lot of data but it's spread across a hundred or a thousand or tens of thousands different repositories or locations. Our strategy when we say a hybrid cloud is about how do we unify those data storage. So, it's called PaaS, on red hat open shift. We do a lot of things like data virtualization, really high performance. So, we take what is thousands of different data sources and we have that packed like a single fluid item. So then, when you're training models, you can train your models in one place and connect to all your data. That is the big change that's happening and that's how you take something like hybrid cloud, and it actually starts to impact your data architecture. And once you're doing that, then AI becomes a lot easier, because the biggest AI challenge that I described is, where's the data? Is the data in a usable form? >> A lot of times in this industry, you know, we go whale hunting, there are a lot of big companies out there, a lot of times they take priority. You know, at the same time though, a lot of the innovations are coming from companies, you know, we've never even heard of that could be multi-billion dollar companies by the end of the decade. So, how can, you know, small companies and mid-sized companies tap into this trend? Is it just for the big whales or could the small guys participate? >> The thing that's pretty amazing about modern cloud and data technology, I'll call it, is it's accessible to companies of any size. When we talked about, you know, the hundred or so clients that have adopted Watson Assistant since COVID-19 started, many of those are very small institutions with no IT staff or very limited IT staff. Though, we're making this technology very accessible. when you look at something like data, now a small company may not have a hundred different repositories, which is fine, but what they do have is they do want to make better predictions, they do want to automate, they do want to optimize the business processes that they're running in their business. And, the way that we've transformed our model consumption base starting small, it's really making technology available to, you know, from anywhere from the local deli to the Fortune 50 Company. >> So, last question is, What are your big takeaways from Think? I would ask that question normally when we're in a live event. It's a little different with the digital event, but there are still takeaways. What was your reaction and what do to leave people with? >> Even as we get back to doing physical events, which I'm positive will happen at some point. What we learned is there is something great about an immersive digital experience. So, I think the future of events is probably higher than this. Meaning, a big digital experience, to complement the physical experience. That's one big takeaway because the reaction was so positive to the content and how people could access it. Second one is the, all the labs that we did. So, for developers, builders, those were at capacity, meaning we didn't even take any more. So, there's definitively a thirst in the market for developing new applications, developing new data products, developing new security products. That's clear just by the attendance that we saw, that's exciting. Now, I'd say third, that is that AI is now moving into the mainstream, that was clear from the customer examples, whether it was with Tansa or UPS or PayPal that I mentioned before, that was talking with me. AI is becoming accessible to every company, that's pretty exciting. >> Well, the world is hybrid, oh you know the lab, the point you're making about labs is really important. I've talked to a number of individuals saying, "Hey I'm using this time to update my skills. I'm working longer hours, maybe different times of the day, but I'm going to skill up." And you know, the point about AI, 37 years ago, when I started in this business AI was all the buzz and it didn't happen. It's real this time and I'm really excited Rob, that you're at the heart of all this innovation, so really, I appreciate you taking the time. And, best of luck, stay safe, and hopefully we'll see you face to face. >> Offscreen Man: Sure. >> Thanks Dave, same to you and the whole team at theCube, take care. >> Thank you Rob, and thank you for watching everybody, this is Dave Vellante for theCube and our coverage of IBM Think 2020, the digital event experience and the post-event. We'll see you next time. (music)

from London England it's the cube covering Koopa inspire 19 emia taught to you by Koopa hey welcome to the cube Lisa Martin coming to you from London I'm at Koopa inspire 19 pleased to be joined by one of Koopas spent setters hit me here is alla Williams the managing director and chief procurement officer at Barclays al welcome to the cube Thank You Lisa thanks for having me so Barclays is a three hundred plus year old Bank three hundred and thirty five years I think I also was was headquartered in London I didn't know this until he did some research Barclays is the pioneer of the ATM yes and a credit card in the UK credit card why first credit card in the UK and the pioneer in inventor of the ATM correct yes so when we think of an organization that is three hundred and thirty five years old we think how agile is that organization how transformative can it be talk to me about what it's like at Barclays from a digital perspective before we get into some of the procurement stuff which or not but tight and culture like that's a great question right could you think about a three hundred thirty-five year old Bank how innovative could it can it be right how agile can it be and the market in the the sector we work in requires us to be very agile because banking is a disrupted sector especially on the retail and consumer side expectations around technology and mobile capabilities and digital transformation are the most significant they've ever been in this sector and so for Barclays it's it's absolutely key that we deliver on those capabilities both in terms of our front office for our consumers and our corporate clients as well as for our own employees within the bank how influential is the consumer side because as consumers we are so used to being able to get anything that we want we can buy products and services we can pay bills with a click or swipe on the on the business side it's harder for businesses to transform and innovate it's a lot of other risks and security issues how influential is Barclays Barclays is your retail your consumer business in terms of your b2b work and that's a great question because I think the the experiences that shape people's expectations come from their interactions in retail and consumer when it comes to b2b and traditionally business-to-business commerce and financial transactions haven't been nearly as sophisticated streamlined or frictionless you know as you would in a consumer model so the expectations are built on the consumer side in consumer to business type models and then the business and business models been playing catch-up for the last several years as a result talk to me about now the role of finance leaders I was reading surgery that Kupa did recently have 253 uk-based financial decision makers and a big number of them I think it was 96 percent said we don't have complete visibility of all of our spent there's a big opportunity there to work with a company like Cooper but talk to me about how the role of the chief procurement officer is changing you've been doing it for quite a while you're a veteran right some of the trends that you have seen that you've really jumped on and said this is the direction we need to be going in right so I've been the chief procurement officer of Barclays for two and half years and the CEO of a large global technology company for nine years before that so I think the the the role of the chief procurement officer has changed significantly over the course of the last say 10 years five years two years we're at a point now where the chief procurement officer is seen as a source of and the organization of procurement is seen as a source of innovation it's seen as a source of capacity creation for the the the organization for the company and it's also seen as sort of a steward of the portfolio of spins for that particular organization to ensure we're maximizing the utility and value of that spend and of that supply chain so the expectations for procurement have tripled quadrupled or more fold in the last you know four or five years some of the interesting things that we're hearing from Koopa and from their customers and partners today is beyond simply initiative to simply but beyond you know dramatically improving procurement and invoicing and dispensing and leveraging the platform as one source for visibility of all that spent but it's being transformative to completely other areas like I was hearing a story of a customer who redefined procurement and is actually positively impacting corporate sustainability yes Wow so talk to me a little bit about I know one of the things that you really thrive on is competition how are you leveraging that and maybe your old American football days to build and maybe foster a sense of collaborative competition within your team to transform procurement at Barclays yes so I think that whether it's in sport or whether it's in business I think the concept of teams is key and effective teams are built on trust they're built on empowerment they they're built on collaboration open communication limited asymmetry and information as it's passed and that's all about kind of driving agility for whether you're on this on the football field American footballer or other football or on or in a business environment of business context so you know it's really and as a CEO and for all of the leaders on my team it's also about being a player coach and knowing when you need to be a player when you need to sort of roll up sleeves contribute in a particular area or particular solving a particular problem but more importantly when you need to be coached and and help those players sort of and those team members in on the team sort of step up to the challenge and coach them to be more success see Bennet Berkeley's a couple years now talk to me about your use case the purpose has with Koopa what are you guys doing together and what are some of the transformations that both internally and externally you've been able to achieve yeah so the relationship with coop has been great again I joined to make a couple of years ago one of the sort of first pillars associated with our overall transformation journey of centralizing procurement from five different procurement or six different procurement organizations really to moving to strategic locations to building out a new organization structure and operating model for for procurement I won't go into all that but one of the key pillars was around technology and we didn't have a common procure-to-pay or source to pay capability that extended or threaded throughout the bank for managing and supply chain so early on when I joined Barclays partnered partnering with Koopa working both of our teams working very effectively together to deploy sort of country by country and region by region we're now in 11 countries with the Koopa source to pay platform we're going to point to six more by the end of this calendar year and over 95% of our spend is flowing through Koopa as a multinational banks so it's been a significant component of our overall transformation journey for for Barclays and part of that transformation journey the technology piece is important that all a lot of its cultural we talked about a history of a three hundred and thirty-five year old organization but also going from five different procurement organizations down to one using a central platform that's challenging to get folks on board right being comfortable with change is your spirit of competitiveness was that a facilitator of getting adoption so that you could get them well I think so I mean I think to get the most out of teams and the most out of any organization large or small you need to galvanize around a common set of goals and objectives the the adage we ought to be pulling on the rope together to achieve achieve the end result and I think in the case of the sort of our Koopa journey both in terms of its strategy and overall deployment it was something more or less our entire procurement organization was able able to galvanize around and in feel like they were a part of and it it created an identity for us within Barclays as a procurement organization as well and kind of put his front and center with our business units and our stakeholders in a way we had we'd never been before so in terms of procurement having a seat at the board table is that something now that you have the ability to do with Barclays and be much more of a strategic driver of business yeah and look at Barclays compared to some of my other experiences it's not an it's not an issue of not having a seat at the table we might have a seat at too many tables sometimes there's a lot of attention on procurement within Barclays to help it deliver on its strategic objectives so with that seat comes a lot of responsibility so I often will coach my teams to ensure that they understand kind of that that that component of it's not just about having a seat at the table it's about what we're going to contribute what are we going to do differently when we're at that table when we're helping shape the decisions for the organization and what are the accountabilities and responsibilities that will pick up as a result and deliver on those promises that's absolutely critical one of the things that was talked about this morning is to trust Rob Bernstein talked about it they also had a guest speaker Rachel Botsman who's a trusted expert it was such an interesting conversation you know we talked about any chuck event that the cube goes to you always talk about trust got to have trust in the data you gotta have trust in your suppliers but what they were talking about here was really being an enabler of trust but cooper really working to earn the trust of its customers tell me about how has earned your trust and also allowed you to have those better discussions at the board table so that you have marked trusted relationships with your executive and your peer team yeah I mean it all starts for Barclays at the very top of the house in front office because we're in the business of trust I mean Bank a bank is in the business of trust that's what we deliver and promise to our consumers and our corporate clients and I think you know within procurement we need to make sure we're sort of delivering on that same promise around around trust and building trust with our teams and with our suppliers in the case of Kupa frankly it was about asking them to ensure they appropriately set expectations with me with my team in terms of what we could or couldn't do with the capability right don't over promise and under deliver but actually be very prudent and practical about what we're gonna be able to get done and then deliver on those promises to the best of your ability but if something and I always do if something goes so not according to plan right it's be open communicative and direct with the issue and how we're going to address it that to me is how we build trust in any team and that's how we built trust with Kupa through our transformation over the last two years that's critical mister your point no deployment probably ever goes perfectly according to plan there are always things that happen whatever it is software hardware is that we're talking about and I think for companies to address that confront it help the customer through those challenges to me that's more valuable I'm saying everything went beautifully was flawless that's not reality right I completely agree and I think that's that's what separates good from great companies to write is their ability to build that trust whether it be within their supply chain with their clients with their employees and look it's it's a journey it's not something you're one and done and you can say okay we've got the trust you can lose it as easy as you can obtain it and you have to keep a focus on on those trusting relationships should think about that we've earned this trust but we have to focus on it so we don't lose it so we grow X having the focus on that because you're right whether it's a deployment of software it's not one and it's the same thing with any sort of trusted relationship right it's maintaining that it's ensuring that there's value right being delivered on both sides that's right tell me a little bit about your ability Barclays ability as a spend setter in this program that Cooper has to influence technology directions like they talk a lot about the community all the insights that they're able to deliver to the community because of the community as Burton is able to be a strategic her gir with Cooper rather than just a customer yeah Phil we are I mean Rob and his team Raja Ravi the entire crew are very receptive and they're very collaborative in hearing from an organization like Barclays now look I'll be the first to admit Barclays and in banking and banking specifically in the UK it's a different animal than many other companies and sectors that kupo would work in so what might work for other companies doesn't always work for us and kind of flipping that around there's certain things that we need from Koopa that that we've been able to partner with them to deliver over the course of the last two years and the relationship of coop has been fantastic they hear us they listen to us they help us understand what the solution can do what it can't do or won't be able to do in the near term and then how do we augment that in the right way so we don't create cottage industries of activity with Impa cure med when we could be leveraging the capability of ghupat to deliver on those services right so you mentioned a little bit about what's next for you guys in terms of rolling out the deployment a little bit more broadly last question for you is some of the news that came out today with the expansion of Koopa pay with American Express for example and just some of the other innovations that Koopa is making what are some of your thoughts what are some of the things that excite you about the direction are going in well yes so on the Koopa pay front I'm actually going to be on stage with Ravi tomorrow talking about Koopa pay because Mark Lee card is also a key component of that capability for the first virtual card that they integrated probably I believe it was yeah and and so so I think about payments is sort of the one not the only but one of the next frontiers from a source to pay or a procurement perspective and it's about how do we innovate in the payment space to get away from having that through the old traditional methods of adding suppliers you know detailed information to our vendor masters so that we can then eventually get an invoice and then reconcile payment remittance to invoices and sort of work through there's a lot of cost in that a lot of time and very little speed we want to move the dial on speed the value we want to move the dial on efficiencies and eventually get to a point where we can offer things like early payment discounts so by having control over our our payment process and that's where Koopa pay and the Barclaycard partnership with Koopa pay is really played a key role in making that happen so in q1 we made our commitment to deploy Koopa pay in q1 after we're through some of our deployments through the rest of this year on the base of the platform and look forward to continuing that journey next year on the payment side one last thing that just popped up I was doing some research and the b2c side is transformed much faster a lot of demand from the consumers we talked about that a moment ago do you see what the direction could the pay is going in with Barclays card for example as bringing in some of the consumer implements to start facilitating the acceleration that's needed there and I think yes I think that's exactly right because again when you think about the consumer side of payments or use it we're all using our phones we're using other digital means we're using wearables we're using different ways of buying and paying especially in retail and the first question we have to ask ourselves why can't those innovations be applied in a b2b space now kupah pay is I think a start of sort of that journey and certainly not the end you know destination but certainly I think it sets us off in the right direction yeah we as consumers are quite demanding yes I'll thank you for doing you on the cube ensuring the Barclays spends that our success rate good luck tomorrow in your keynote thank you for having me thank you pleasure I'm Lisa Martin you're watching the cube from cuca inspire London 19 thanks for watching

(upbeat music) >> Announcer: Live from Las Vegas, it's theCUBE! Covering UIPath FORWARD America's 2019. Brought to you by UIPath. >> Welcome back, everyone, to theCUBE's live coverage of UIPath FORWARD, here in Sin City, Las Vegas Nevada. I'm your host, Rebecca Knight, co-hosting alongside Dave Velante. We have two guests for this segment. We have Kurt Carlson, Associate Dean for faculty and academic affairs of the Mason School of Business at the college of William and Mary. Thanks for coming on the show. >> Thanks you for having me. >> Rebecca: And we have Tom Clancy, the SVP of learning at UIPath, thank you so much. >> Great to be here. >> You're a Cube alum, so thank you for coming back. >> I've been here a few times. >> A Cube veteran, I should say. >> I think 10 years or so >> So we're talking today about a robot for every student, this was just announced in August, William and Mary is the first university in the US to provide automation software to every undergraduate student, thanks to a four million dollar investment from UIPath. Tell us a little bit about this program, Kurt, how it works and what you're trying to do here. >> Yeah, so first of all, to Tom and the people at UIPath for making this happen. This is a bold and incredible initiative, one that, frankly, when we had it initially, we thought that maybe we could get a robot for every student, we weren't sure that other people would be willing to go along with that, but UIPath was, they see the vision, and so it was really a meeting of the minds on a common purpose. The idea was pretty simple, this technology is transforming the world in a way that students, we think it's going to transform the way that students actually are students. But it's certainly transforming the world that our students are going into. And so, we want to give them exposure to it. We wanted to try and be the first business school on the planet that actually prepares students not just for the way RPA's being used today, but the way that it's going to be used when AI starts to take hold, when it becomes the gateway to AI three, four, five years down the road. So, we talked to UIPath, they thought it was a really good idea, we went all in on it. Yeah, all of our starting juniors in the business school have robots right now, they've all been trained through the academy live session putting together a course, it's very exciting. >> So, Tom, you've always been an innovator when it comes to learning, here's my question. How come we didn't learn this school stuff when we were in college? We learned Fortran. >> I don't know, I only learned BASIC, so I can't speak to that. >> So you know last year we talked about how you're scaling, learning some of the open, sort of philosophy that you have. So, give us the update on how you're pushing learning FORWARD, and why the College of William and Mary. >> Okay, so if you buy into a bot for every worker, or a bot for every desktop, that's a lot of bots, that's a lot of desktops, right? There's studies out there from the research companies that say that there's somewhere a hundred and 200 million people that need to be educated on RPA, RPA/AI. So if you buy into that, which we do, then traditional learning isn't going to do it. We're going to miss the boat. So we have a multi-pronged approach. The first thing is to democratize RPA learning. Two and a half years ago we made, we created RPA Academy, UIPath academy, and 100% free. After two and a half years, we have 451,000 people go through the academy courses, that's huge. But we think there's a lot more. Over the next next three years we think we'll train at least two million people. But the challenge still is, if we train five million people, there's still a hundred million that need to know about it. So, the second biggest thing we're doing is, we went out, last year at this event, we announced our academic alliance program. We had one university, now we're approaching 400 universities. But what we're doing with William and Mary is a lot more than just providing a course, and I'll let Kurt talk to that, but there is so much more that we could be doing to educate our students, our youth, upscaling, rescaling the existing workforce. When you break down that hundred million people, they come from a lot of different backgrounds, and we're trying to touch as many people as we can. >> You guys are really out ahead of the curve. Oftentimes, I mean, you saw this a little bit with data science, saw some colleges leaning in. So what lead you guys to the decision to actually invest and prioritize RPA? >> Yeah, I think what we're trying to accomplish requires incredibly smart students. It requires students that can sit at the interface between what we would think of today as sort of an RPA developer and a decision maker who would be stroking the check or signing the contract. There's got to be somebody that sits in that space that understands enough about how you would actually execute this implementation. What's the right buildout of that, how we're going to build a portfolio of bots, how we're going to prioritize the different processes that we might automate, How we're going to balance some processes that might have a nice ROI but be harder for the individual who's process is being automated to absorb against processes that the individual would love to have automated, but might not have as great of an ROI. How do you balance that whole set of things? So what we've done is worked with UIPath to bring together the ideas of automation with the ideas of being a strategic thinker in process automation, and we're designing a course in collaboration to help train our students to hit the ground running. >> Rebecca, it's really visionary, isn't it? I mean it's not just about using the tooling, it's about how to apply the tooling to create competitive advantage or change lives. >> I used to cover business education for the Financial Times, so I completely agree that this really is a game changer for the students to have this kind of access to technology and ability to explore this leading edge of software robotics and really be, and graduate from college. This isn't even graduate school, they're graduating from college already having these skills. So tell me, Kurt, what are they doing? What is the course, what does it look like, how are they using this in the classroom? >> The course is called a one credit. It's 14 hours but it actually turns into about 42 when you add this stuff that's going on outside of class. They're learning about these large conceptual issues around how do you prioritize which processes, what's the process you should go through to make sure that you measure in advance of implementation so that you can do an audit on the backend to have proof points on the effectiveness, so you got to measure in advance, creating a portfolio of perspective processes and then scoring them, how do you do that, so they're learning all that sort of conceptual straight business slash strategy implementation stuff, so that's on the first half, and to keep them engaged with this software, we're giving them small skills, we're calling them skillets. Small skills in every one of those sessions that add up to having a fully automated and programmed robot. Then they're going to go into a series of days where every one of those days they're going to learn a big skill. And the big skills are ones that are going to be useful for the students in their lives as people, useful in lives as students, and useful in their lives as entrepreneurs using RPA to create new ventures, or in the organizations they go to. We've worked with UIPath and with our alums who've implement this, folks at EY, Booz. In fact, we went up to DC, we had a three hour meeting with these folks. So what are the skills students need to learn, and they told us, and so we build these three big classes, each around each one of those skills so that our students are going to come out with the ability to be business translators, not necessarily the hardcore programmers. We're not going to prevent them from doing that, but to be these business translators that sit between the programming and the decision makers. >> That's huge because, you know, like, my son's a senior in college. He and his friends, they all either want to work for Amazon, Google, an investment bank, or one of the big SIs, right? So this is a perfect role for a consultant to go in and advise. Tom, I wanted to ask you, and you and I have known each other for a long time, but one of the reasons I think you were successful at your previous company is because you weren't just focused on a narrow vendor, how to make metrics work, for instance. I presume you're taking the same philosophy here. It transcends UIPath and is really more about, you know, the category if you will, the potential. Can you talk about that? >> So we listen to our customers and now we listen to the universities too, and they're going to help guide us to where we need to go. Most companies in tech, you work with marketing, and you work with engineering, and you build product courses. And you also try to sell those courses, because it's a really good PNL when you sell training. We don't think that's right for the industry, for UIPath, or for our customers, or our partners. So when we democratize learning, everything else falls into place. So, as we go forward, we have a bunch of ideas. You know, as we get more into AI, you'll see more AI type courses. We'll team with 400 universities now, by end of next year, we'll probably have a thousand universities signed up. And so, there's a lot of subject matter expertise, and if they come to us with ideas, you mentioned a 14 hour course, we have a four hour course, and we also have a 60 hour course. So we want to be as flexible as possible, because different universities want to apply it in different ways. So we also heard about Lean Six Sigma. I mean, sorry, Lean RPA, so we might build a course on Lean RPA, because that's really important. Solution architect is one of the biggest gaps in the industry right now so, so we look to where these gaps are, we listen to everybody, and then we just execute. >> Well, it's interesting you said Six Sigma, we have Jean Younger coming on, she's a Six Sigma expert. I don't know if she's a black belt, but she's pretty sure. She talks about how to apply RPA to make business processes in Six Sigma, but you would never spend the time and money, I mean, if it's an airplane engine, for sure, but now, so that's kind of transformative. Kurt, I'm curious as to how you, as a college, market this. You know, you're very competitive industry, if you will. So how do you see this attracting students and separating you guys from the pack? >> Well, it's a two separate things. How do we actively try to take advantage of this, and what effects is it having already? Enrollments to the business school, well. Students at William and Mary get admitted to William and Mary, and they're fantastic, amazingly good undergraduate students. The best students at William and Mary come to the Raymond A. Mason school of business. If you take our undergraduate GPA of students in the business school, they're top five in the country. So what we've seen since we've announced this is that our applications to the business school are up. I don't know that it's a one to one correlation. >> Tom: I think it is. >> I believe it's a strong predictor, right? And part because it's such an easy sell. And so, when we talk to those alums and friends in DC and said, tell us why this is, why our students should do this, they said, well, if for no other reason, we are hiring students that have these skills into data science lines in the mid 90s. When I said that to my students, they fell out of their chairs. So there's incredible opportunity here for them, that's the easy way to market it internally, it aligns with things that are happening at William and Mary, trying to be innovative, nimble, and entrepreneurial. We've been talking about being innovative, nimble, and entrepreneurial for longer than we've been doing it, we believe we're getting there, we believe this is the type of activity that would fit for that. As far as promoting it, we're telling everybody that will listen that this is interesting, and people are listening. You know, the standard sort of marketing strategy that goes around, and we are coordinating with UIPath on that. But internally, this sells actually pretty easy. This is something people are looking for, we're going to make it ready for the world the way that it's going to be now and in the future. >> Well, I imagine the big consultants are hovering as well. You know, you mentioned DC, Booz Allen, Hughes and DC, and Excensior, EY, Deloitte, PWC, IBM itself. I mean it's just, they all want the best and the brightest, and now you're going to have this skill set that is a sweet spot for their businesses. >> Kurt: That's the plan. >> I'm just thinking back to remembering who these people are, these are 19 and 20 year olds. They've never experienced the dreariness of work and the drudge tasks that we all know well. So, what are you, in terms of this whole business translator idea, that they're going to be the be people that sit in the middle and can sort of be these people who can speak both languages. What kind of skills are you trying to impart to them, because it is a whole different skill set. >> Our vision is that in two or three years, the nodes and the processes that are currently... That currently make implementing RPA complex and require significant programmer skills, these places where, right now, there's a human making a relatively mundane decision, but it's sill a model. There's a decision node there. We think AI is going to take over that. The simple, AI's going to simply put models into those decision nodes. We also think a lot of the programming that takes place, you're seeing it now with studio X, a lot of the programming is going to go away. And what that's going to do is it's going to elevate the business process from the mundane to the more human intelligent, what would currently be considered human intelligence process. When we get into that space, people skills are going to be really important, prioritizing is going to be really important, identifying organizations that are ripe for this, at this moment in time, which processes to automate. Those are the kind of skills we're trying to get students to develop, and what we're selling it partly as, this is going to make you ready of the world the way we think it's going to be, a bit of a guess. But we're also saying if you don't want to automate mundane processes, then come with us on a different magic carpet ride. And that magic carpet ride is, imagine all the processes that don't exist right now because nobody would ever conceive of them because they couldn't possibly be sustained, or they would be too mundane. Now think about those processes through a business lens, so take a business student and think about all the potential when you look at it that way. So this course that we're building has that, everything in the course is wrapped in that, and so, at the end of the course, they're going to be doing a project, and the project is to bring a new process to the world that doesn't currently exist. Don't program it, don't worry about whether or not you have a team that could actually execute it. Just conceive of a process that doesn't currently exist and let's imagine, with the potential of RPA, how we would make that happen. That's going to be, we think we're going to be able to bring a lot of students along through that innovative lens even though they are 19 and 20, because 19 and 20 year olds love innovation, while they've never submitted a procurement report. >> Exactly! >> A innovation presentation. >> We'll need to do a Cube follow up with that. >> What Kurt just said, is the reason why, Tom, I think this market is being way undercounted. I think it's hard for the IDCs and the forces, because they look back they say how big was it last year, how fast are these companies growing, but, to your point, there's so much unknown processes that could be attacked. The TAM on this could be enormous. >> We agree. >> Yeah, I know you do, but I think that it's a point worth mentioning because it touches so many different parts of every organization that I think people perhaps don't realize the impact that it could have. >> You know, when listening to you, Kurt, when you look at these young kids, at least compared to me, all the coding and setting up a robot, that's the easy part, they'll pick that up right away. It's really the thought process that goes into identifying new opportunities, and that's, I think, you're challenging them to do that. But learning how to do robots, I think, is going to be pretty easy for this new digital generation. >> Piece of cake. Tom and Kurt, thank you so much for coming on theCUBE with a really fascinating conversation. >> Thank you. >> Thanks, you guys >> I'm Rebecca Knight, for Dave Velante, stay tuned for more of theCUBEs live coverage of UIPath FORWARD. (upbeat music)

(funky guitar music) >> From our studios, in the heart of Silicon Valley, Palo Alto, California, This is theCUBE conversation. >> Everyone welcome to this CUBE conversation here in Palo Alto, California CUBE studios, I'm John Furrier, the host of theCUBE. Were with CUBE alumni, special guest Amit Walia, President of Products & Marketing at Informatica. Amit, it's great to see you. It's been a while. It's been a couple of months, how's things? >> Good to be back as always. >> Welcome back. Okay, Informatica worlds is coming up, we have a whole segment on that but we have been covering you guys for a long long time, data is at the center of the value proposition again and again, it's more amplified now, the fog is lifting. >> Sure. >> And the world is now seeing what we were talking about four years ago. (giggles) >> Yeah. >> With data, what's new? What's the big trends that going on that you guys are doubling down on? What's new, what's changed? Give us the update. >> Sure. I think we have been talking the last couple of years, I think your right, data has becoming more and more important. I think, three things we see a lot. One is obviously, you saw this whole world of digital transformation. I think that has de faintly has picked up so much steam now. I mean, every company is going digital and obviously that creates a whole new paradigm shift for companies to carry out almost recreate themselves, rebuild them, so data becomes the new definition. And that's what we call those things you saw at Infomatica even before data3.org, but data is the center of everything, right? And you see the volume of data growth, you know, the utilization of data to make decisions, whether it's, you know, decisions on the shop floor, decisions basically related to cyber security or whatever it is. And the key to what you see different now is the whole AI assisted data management. I mean the scale of complexity, the scale of growth, you know, multi-cloud, multi-platform, all the stuff that is in front of us, it's really difficult to run the old way of doing things, so that's why we see one thing that we see a whole lot is AI is becoming a lot more mainstream, still early days but it's assisting the whole ability for companies, what I call, exploit data to really become a lot more transformative. >> You have been on this for a while, again we can go back to theCUBE archives, we can almost pull out clips from two years ago, be relevant today, you know, the data control, understanding >> Yeah. >> Understanding where the data governance is-- >> Sure. >> That's always a foundational thing but you guys nailed the chat bots, you have been doing AI was previous announcements, this is putting a lot of pressure on you, the president of the products, you got to get this out there. >> What's new? What's happening inside Informatica? pedaling as fast as you can? What is some of the updates? >> No. >> Gives us the-- >> The best example always is like a duck, right? Your really swimming and feel things are calm at the top and then you are really paddling. No, I think it's great for us. I think, I look at AI's, AI is like, there is so much FUD [fear, uncertainty and doubt] around it and machine learning AI. We look at it as two different ways. One is how we leverage machine learning within our products to help our customers. Making it easy for them, like I said, so many different data types, think of IOT data, unstructured data, streaming data, how do you bring all that stuff together and marry it with your existing transactional data to make sense. So, we're leveraging a lot of machine learning to make the internal products a lot more easier to consume, a lot more smarter, a lot more richer. The second thing is that, we're what we call it our AI, CLAIRE, which we unveiled, if you remember, a couple of years ago at the Informatica World. How that then helps our customers make smarter decisions, you know, in data science and all of these data workbenches, you know, the old statistical models is only as good as they can ever be. So, we leveraging helping our customers see the value proposition of our AI, CLAIRE, then to what I make things that, you know, find patterns, you know, statistical models cannot. So, to me I look at both of those really, leveraging ML to shape our products, which is where we do a lot of innovation and then creating our AI, CLAIRE, to help customers to make smarter decisions, easier decisions, complex decisions, which I called the humans or statistical models, really cannot. >> Well this is the balance with machines and humans. >> Right. >> working together, you guys have nailed this before and I'm, I think this was two years ago. I started to hear the words, land, adopt, expand, form you guys, right? Which is, you got to get adoption. >> Right. >> And so, as you're iterating on this product focus, you got to getting working, making secure your products-- >> Big, big maniacal focus on that one. >> So, tell me what you have learned there because that's a hard thing. >> Right. >> You guy are doing well at it. You got to get adoption, which means you got to listen customers, you got to do the course correction. >> Yeah. >> what's the learnings coming out of that piece of that. >> That's actually such a good point. We've made such, we've always been a customer centric company but as you said, like, as whole world shifted towards a new subscription cloud model, we've really focused on helping our customers adopt our products and you know, in this new world, customers are struggling with new architectures and everything, so we doubled down on what we called customer success. Making sure we can help our customers adopt the products and by the way it's to our benefit. Our customers get value really quickly and of course we believe in what we call a customer for life. Our ability to then grow with our customers and help them deliver value becomes a lot better. So, we really focused, so, we have globally across the board customers, success managers, we really invest in our customers, the moment a customer buys a product from us, we directly engage with them to help them understand for this use case, how you implement the product. >> It's not just self service, that's one thing that I appreciate 'cause I know how hard it is to build products these days, especially with the velocity of change but it's also when you have a large scale data. >> Yeah. >> You need automation, you got to have machine learning, you got to have these disciplines. >> Sure. >> And this is both on your end and but also on the customer. >> Yes. >> Any on the updates on the CLAIRE and some customer learnings you're seeing that are turning into use cases or best practices, what are some of them? >> So many of them. So take a simple example, right? I mean, we think of, we take these things for granted, right? I mean, take note, we don't talk about IOB these days right? All these cell cells, we were streaming data, right? Or even robots on the shop floor. So much of that data has no schema, no structure, no definition, it's coming, right? Netflix data and for customers there is a lot of volume in it, a lot of it could be junk, right? So, how do you first take that volume of data? Create some structure to it for you to do analytics. You can only do analytics if you put some structure to it, right? So, first thing is I've leverage CLAIRE, we help our customers to create, what I call, schema and you can create some structure to it. Then what we do allow is basically CLAIRE through CLAIRE, it can naturally bring what we have the data quality on top of it, like how much of it is irrelevant, how much of it is noise, how much of it really makes sense, so, then, as you said it, signal from the noise We are helping our customers get signal from the noise of data. That's where it AI comes very handy because it's very manual, cumbersome, time consuming and sometimes very difficult to do. So, that's a area we have leveraged creating structure and data quality on top and finding rules that didn't naturally probably didn't exist, that you and me wouldn't be able to see. Machines are able to do it and to your point, our belief is, this is my 100% belief, we believe AI assisting the humans. We have given the value of CLAIRE to our users, so it complements you and that's where we are trying to help our users get more productive and deliver more value to you faster. >> Productivity is multifold, it's like, also, efficiency, people wasting time on project that can be automated, so you can focus that valuable resource somewhere else. >> Yeah. >> Okay, let's shift gears onto Informatica World coming up. Let's spend some time on that. What's the focus this year, the show, it's coming up, right around the corner, what's going to be the focus? What's going to be the agenda? What's on the plate? >> Give you a quick sense on how it's shape up, it's probably going to be our Informatica World. So, it's 20th year, again back in Waze, you know, we love Waze of course. We have obviously, a couple of days lined up over there, I know you guys will be there too. A great set of speakers. Obviously, we will have me on stage, speakers like, we'll have some, the CEO of Google Cloud, Thomas Kurian is going to be there, we'll have on the main stage with Anil, we'll have the CEO of Databricks, Ali, with me, we'll also have CMO of AWS, Ariel, there, then we have a couple of customers lined up, Simon from Credit Suisse, Daniel is the CDO of Nissan, we also have the Head of AI, Simon Guggenheimer from Microsoft as well as the Chief Product Officer of Tableau, Francois Ajenstat, so, we have a great line up of speakers, customers and some of our very very strategic partners with us. If you remember last year, We also had Scott Guthrie there main stage. 80 plus sessions, pretty much 90% lead by customers. We have 70 to 80 customers presenting. >> Technical sessions or going to be a Ctrack? >> Technical, business, we have all kinds of tracks, we have hands on labs, we have learnings, customers really want to learn our products, talk with the experts, some want to the product managers, some want to talk to the engineers, literally so many hands on labs, so, it's going to be a full blown couple of days for us. >> What's the pitch for someone watching that never been Informatica World? Why should they come for the show? >> I'll always tell them three things. Number one is that, it's a user conference for our customers to learn all things about data management and of course in that context they learn a lot about. So, they learn a lot about the industry. So, day one we kick it off by market perspectives. We are giving a sense on how the market is going, how everybody is stepping back from the day to and understanding, where are these digital transformation, AI, where is all the world of data going. We've got some great annalists coming, talkings, some customers talking, we are talking about futures over there. Then it is all about hands on learning, right?, learning about the product. Hearing from some of these experts, right?, from the industry experts as well as our customers, teaching what to do and what not to do and networking, it's always go to network, right, it's a great place for people to learn from each other. So, it's a great forum for all those three things but the theme this year is all about AI. I talked about CLAIRE, I'll in fact our tagline this year is, Clarity Unleashed. We really want, basically, AI has been developing over the last couple of years, it's becoming a lot more mainstream, for us in our offerings and this year we're really taking it mainstream, so, it's kind of like, unleashing it for everybody can genuinely use it, truly use it, for the day to day data management activities. >> Clarity is a great theme, I mean, it plays on CLAIRE but this is what we're starting to see some visiblility into some clear >> Yeah. >> Economic benefits, business benefits. >> Yep. >> Technical benefits, >> Yep. >> Kind of all starting to come in. How would you categorize those three areas because you know, generally that's the consensus these days that what was once a couple years ago was, like, foggy when you see, now you're starting to see that lift, you're seeing economic, business and technical benefits. >> To me it's all about economic and business. So, technology plays a role in driving value for the business, right, I'm a full believer in that, right, and if you think about some of the trends today, right, a billion users are coming into play that will be assisted by AI. Data is doubling every year, you know the volume of data, >> Yep. >> The amount of, and I always say business users today, I mean, I run a business, I want, I always say, tomorrow data, yesterday to make a decision today. It's just in time and that's where AI comes into play. So our goal is to help organizations transform themselves, truly be more productive, reduce operation cost, by the way governance and compliance, that's becoming such a mainstream topic. It's not just basically making analytical decisions. How do you make sure your data is safe and secure, you don't want to get basically get hit by all of these cyber attacks, they're all are coming after data. So, governance, compliance of data that's becoming very, so, those-- >> Again you guys are right on the data thing. >> Yeah. >> I want to get your reaction, you mentioned some stats. >> Sure. >> I've got some stats here. Data explosion, 15.3 zettabytes per year >> Yeah, in global traffic. >> Yeah. >> 500 million business data users and growing 20 billion in connected devices, one billion workers will be assisted by machine learning, so, thanks for plugging those stats but I want to get your reaction to some of these other points here. 80% of enterprises are looking at multicloud, their really evaluating where the data sits in that equation >> Sure. And the other thing is the responsibility and role of the Chief Data Officer >> Yes. >> These are new dynamics, I think you guys will be addressing that into the event. >> Absolutely, absolutely. >> Because organizational dynamics, skill gaps are issues but also you have multicloud. So your thoughts on those to. >> That's a big thing, look at, in the old world, John, Hidrantes is always still in large enterprises, right, and it's going to stay here. In fact I think it's not just cloud, think of it this way, on-premise is still here, it's not going a way. It's reducing in scope but then you have this multicloud world, SAS apps, PAS apps, infrastructure, if I'm a customer, I want to do all of it but the biggest problem is that my data is everywhere, how do I make sense of it and then how do I govern it, like my customer data is sitting somewhere in this SAS app, in that platform, on this on-prem application transaction app I'm running, how do I connect the three and how do I make sense it doesn't get, I can have a governance control around it. That's when data management becomes more important but more complex but that's why AI comes in to making it easier. What are the things we've seen a lot, as you touched upon, is the rise of CDO. In fact we have Daniel from Nissan, she is the CDO of Nissan North America, on main stage, talking about her role and how they have leveraged data to transform themselves. That is something we're seeing a lot more because you know, the role of the CDO is making sure that is not only a sense of governance and compliance, a sense of how do we even understand the value of data across an enterprise. Again, I see, one of the things we going to talk about is system thinking around data. We call it System Thinking 3.0, data is becoming a platform. See, there was OSA-D hardware layer whether it is server, or compute, we believe that data is becoming a platform in itself. Whether you think about it in terms of scale, in terms of governance, in terms of AI, in terms of privacy, you have to think of data as a platform. That's the other big thing. >> I think that is a very powerful statement and I like to get your thoughts, we had many conversations on camera, off camera, around product, Silicon Valley, Venture Capital, how can startups create value. On of the old antigens use to be, build a platform, that's your competitive strategy, you were a platform company and that was a strategic competitive advantage. >> Yes. >> That was unique to the company, they created enablement, Facebook is a great example. >> Yeah. >> They monetized all the data from the users, look where they are. >> Sure. >> If you think about platforms today. >> Sure. >> It seems to be table steaks, not as a competitive advantage but more of a foundational. >> Sure. >> Element of all businesses. >> Yeah. >> Not just startups and enterprises. This seems to be a common thread, do you agree with that, that platforms becoming table steaks, 'cause of if we have to think like systems people >> Mm-hmm. >> Whether it's an enterprise. >> Sure. >> Or a supplier, then holistically the platform becomes table steaks on premer or cloud. Your reaction to that. Do you agree? >> No, I think I agree. I'll say it slightly differently, yes. I think platform is a critical component for any enterprise when they think of their end to end technology strategy because you can't do piece meals otherwise you become a system integrator of your own, right? But it's no easy to be a platform player itself, right, because as a platform player, the responsibility of what you have to offer your customer becomes a lot bigger. So, we obviously has this intelligent data platform but the other thing is that the rule of the platform is different too. It has to be very modular and API driven. Nobody wants to buy a monolithic platform. I don't want to, as a enterprise, I don't buy all now, I'm going to implement five years of platform. You want it, it's going to be like a Lego block, okay you, it builds by itself. Not monolithic, very API driven, maybe microservices based and that's our belief that in the new world, yes, platform is very critical for to accelerate your transformational journeys or data driven transformational journeys but the platform better be API driven, microservices based, very nimble that is not a percussor to value creation but creates value as you go along. >> It's all, kind of up to, depends on the customer it could have a thin foundational data platform, from you guys for instance, then what you're saying, compose. >> Of different components. >> On whatever you need. >> For example you have data integration platform, you can do data quality on top, you can do master data management on top, you can provide governance, you can provide privacy, you can do cataloging, it all builds. >> Yeah. >> It's not like, oh my gosh, I have go do all these things over the course of five years, then I get value. You got to create value all along. >> Yeah. >> Today's customers want value like, in two months, three months, you don't want to wait for a year or two. >> This is the excatly the, I think, the operating system, systems mindset. >> Yes. >> You were referring too, this is kind of how enterprises are behaving now. There is the way you see on-premise, >> Yep. >> Thinking around data, cloud, multicloud emerging, it's a systems view distributed computing, with the right Lego blocks. >> That's what our belief is. That's what we heard from customers. See our, I spend most of my time talking to customers and are we trying to understand what customers want today and you know, some of this latent demands that they have, sometimes can't articulate, my job, I always end up on the road most of the time, just hearing customers, that's what they want. They want exactly to your point, a platform that builds, not monolithic, but they do want a platform. They do want to make it easy for them not to do everything piece meal. Every project is a data project. Whether it's a customer experience project, whether it's a governance project, whether it's nothing else but a analytical project, it's a data project. You don't repeat it every time. That's what they want. >> I know you got a hard stop but I want to get your thoughts on this because I have heard the word, workload, mentioned so many more times in the past year, if there was a tag cloud of all theCUBE conversations where the word workload was mentioned, it would be the biggest font. (laughs) >> Yes. >> Workload has been around for a while but now you are seeing more workloads coming on. >> Yeah. >> That's more important for data. >> Yes. >> Workloads being tied into data. >> Absolutely. >> And then sharing data across multiple workloads, that's a big focus, do you see that same thing? >> We absolutely see that and the unique thing we see also is that newer workloads are being created and the old workloads are not going away, which is where the hybrid becomes very important. See, we serve large enterprises and their goal is to have a hybrid. So, you know, I'm running a old transaction workload order here, I want to have a experimental workload, I want to start a new workload, I want all of them to talk to each other, I don't want them to become silos and that's when they look to us to say connect the dots for me, you can be in the cloud, as an example, our cloud platform, you know last time, we talked about a 5 trillion transactions a month, today is double that, eight to ten trillion transactions a month. Growing like crazy but our traditional workload is also still there so we connect the dots for our customers. >> Amit, thank you for coming on sharing your insights, obviously you guys are doing well. You've got 300,000 developers, billions in revenue, thanks for coming on, appreciate the insight and looking forward to your Informatica World. >> Thank you very much. >> Amit Walia here inside theCUBE, with theCUBE conversation, in Palo Alto, thanks for watching.