(upbeat music) >> From theCube Studios in Palo Alto in Boston, bringing you data driven insights from theCube and ETR. This is Breaking Analysis with Dave Vellante. >> While by no means a safe haven, the cybersecurity sector has outpaced the broader tech market by a meaningful margin, that is up until very recently. Cybersecurity remains the number one technology priority for the C-suite, but as we've previously reported the CISO's budget has constraints just like other technology investments. Recent trends show that economic headwinds have elongated sales cycles, pushed deals into future quarters, and just like other tech initiatives, are pacing cybersecurity investments and breaking them into smaller chunks. Hello and welcome to this week's Wikibon Cube Insights powered by ETR. In this Breaking Analysis we explain how cybersecurity trends are reverting to the mean and tracking more closely with other technology investments. We'll make a couple of valuation comparisons to show the magnitude of the challenge and which cyber firms are feeling the heat, which aren't. There are some exceptions. We'll then show the latest survey data from ETR to quantify the contraction in spending momentum and close with a glimpse of the landscape of emerging cybersecurity companies, the private companies that could be ripe for acquisition, consolidation, or disruptive to the broader market. First, let's take a look at the recent patterns for cyber stocks relative to the broader tech market as a benchmark, as an indicator. Here's a year to date comparison of the bug ETF, which comprises a basket of cyber security names, and we compare that with the tech heavy NASDAQ composite. Notice that on April 13th of this year the cyber ETF was actually in positive territory while the NAS was down nearly 14%. Now by August 16th, the green turned red for cyber stocks but they still meaningfully outpaced the broader tech market by more than 950 basis points as of December 2nd that Delta had contracted. As you can see, the cyber ETF is now down nearly 25%, year to date, while the NASDAQ is down 27% and change. Now take a look at just how far a few of the high profile cybersecurity names have fallen. Here are six security firms that we've been tracking closely since before the pandemic. We've been, you know, tracking dozens but let's just take a look at this data and the subset. We show for comparison the S&P 500 and the NASDAQ, again, just for reference, they're both up since right before the pandemic. They're up relative to right before the pandemic, and then during the pandemic the S&P shot up more than 40%, relative to its pre pandemic level, around February is what we're using for the pre pandemic level, and the NASDAQ peaked at around 65% higher than that February level. They're now down 85% and 71% of their previous. So they're at 85% and 71% respectively from their pandemic highs. You compare that to these six companies, Splunk, which was and still is working through a transition is well below its pre pandemic market value and 44, it's 44% of its pre pandemic high as of last Friday. Palo Alto Networks is the most interesting here, in that it had been facing challenges prior to the pandemic related to a pivot to the Cloud which we reported on at the time. But as we said at that time we believe the company would sort out its Cloud transition, and its go to market challenges, and sales compensation issues, which it did as you can see. And its valuation jumped from 24 billion prior to Covid to 56 billion, and it's holding 93% of its peak value. Its revenue run rate is now over 6 billion with a healthy growth rate of 24% expected for the next quarter. Similarly, Fortinet has done relatively well holding 71% of its peak Covid value, with a healthy 34% revenue guide for the coming quarter. Now, Okta has been the biggest disappointment, a darling of the pandemic Okta's communication snafu, with what was actually a pretty benign hack combined with difficulty absorbing its 7 billion off zero acquisition, knocked the company off track. Its valuation has dropped by 35 billion since its peak during the pandemic, and that's after a nice beat and bounce back quarter just announced by Okta. Now, in our view Okta remains a viable long-term leader in identity. However, its recent fiscal 24 revenue guide was exceedingly conservative at around 16% growth. So either the company is sandbagging, or has such poor visibility that it wants to be like super cautious or maybe it's actually seeing a dramatic slowdown in its business momentum. After all, this is a company that not long ago was putting up 50% plus revenue growth rates. So it's one that bears close watching. CrowdStrike is another big name that we've been talking about on Breaking Analysis for quite some time. It like Okta has led the industry in a key ETR performance indicator that measures customer spending momentum. Just last week, CrowdStrike announced revenue increased more than 50% but new ARR was soft and the company guided conservatively. Not surprisingly, the stock got absolutely crushed as CrowdStrike blamed tepid demand from smaller and midsize firms. Many analysts believe that competition from Microsoft was one factor along with cautious spending amongst those midsize and smaller customers. Notably, large customers remain active. So we'll see if this is a longer term trend or an anomaly. Zscaler is another company in the space that we've reported having great customer spending momentum from the ETR data. But even though the company beat expectations for its recent quarter, like other companies its Outlook was conservative. So other than Palo Alto, and to a lesser extent Fortinet, these companies and others that we're not showing here are feeling the economic pinch and it shows in the compression of value. CrowdStrike, for example, had a 70 billion valuation at one point during the pandemic Zscaler top 50 billion, Okta 45 billion. Now, having said that Palo Alto Networks, Fortinet, CrowdStrike, and Zscaler are all still trading well above their pre pandemic levels that we tracked back in February of 2020. All right, let's go now back to ETR'S January survey and take a look at how much things have changed since the beginning of the year. Remember, this is obviously pre Ukraine, and pre all the concerns about the economic headwinds but here's an X Y graph that shows a net score, or spending momentum on the y-axis, and market presence on the x-axis. The red dotted line at 40% on the vertical indicates a highly elevated net score. Anything above that we think is, you know, super elevated. Now, we filtered the data here to show only those companies with more than 50 responses in the ETR survey. Still really crowded. Note that there were around 20 companies above that red 40% mark, which is a very, you know, high number. It's a, it's a crowded market, but lots of companies with, you know, positive momentum. Now let's jump ahead to the most recent October survey and take a look at what, what's happening. Same graphic plotting, spending momentum, and market presence, and look at the number of companies above that red line and how it's been squashed. It's really compressing, it's still a crowded market, it's still, you know, plenty of green, but the number of companies above 40% that, that key mark has gone from around 20 firms down to about five or six. And it speaks to that compression and IT spending, and of course the elongated sales cycles pushing deals out, taking them in smaller chunks. I can't tell you how many conversations with customers I had, at last week at Reinvent underscoring this exact same trend. The buyers are getting pressure from their CFOs to slow things down, do more with less and, and, and prioritize projects to those that absolutely are critical to driving revenue or cutting costs. And that's rippling through all sectors, including cyber. Now, let's do a bit more playing around with the ETR data and take a look at those companies with more than a hundred citations in the survey this quarter. So N, greater than or equal to a hundred. Now remember the followers of Breaking Analysis know that each quarter we take a look at those, what we call four star security firms. That is, those are the, that are in, that hit the top 10 for both spending momentum, net score, and the N, the mentions in the survey, the presence, the pervasiveness in the survey, and that's what we show here. The left most chart is sorted by spending momentum or net score, and the right hand chart by shared N, or the number of mentions in the survey, that pervasiveness metric. that solid red line denotes the cutoff point at the top 10. And you'll note we've actually cut it off at 11 to account for Auth 0, which is now part of Okta, and is going through a go to market transition, you know, with the company, they're kind of restructuring sales so they can take advantage of that. So starting on the left with spending momentum, again, net score, Microsoft leads all vendors, typical Microsoft, very prominent, although it hadn't always done so, it, for a while, CrowdStrike and Okta were, were taking the top spot, now it's Microsoft. CrowdStrike, still always near the top, but note that CyberArk and Cloudflare have cracked the top five in Okta, which as I just said was consistently at the top, has dropped well off its previous highs. You'll notice that Palo Alto Network Palo Alto Networks with a 38% net score, just below that magic 40% number, is healthy, especially as you look over to the right hand chart. Take a look at Palo Alto with an N of 395. It is the largest of the independent pure play security firms, and has a very healthy net score, although one caution is that net score has dropped considerably since the beginning of the year, which is the case for most of the top 10 names. The only exception is Fortinet, they're the only ones that saw an increase since January in spending momentum as ETR measures it. Now this brings us to the four star security firms, that is those that hit the top 10 in both net score on the left hand side and market presence on the right hand side. So it's Microsoft, Palo Alto, CrowdStrike, Okta, still there even not accounting for a Auth 0, just Okta on its own. If you put in Auth 0, it's, it's even stronger. Adding then in Fortinet and Zscaler. So Microsoft, Palo Alto, CrowdStrike, Okta, Fortinet, and Zscaler. And as we've mentioned since January, only Fortinet has shown an increase in net score since, since that time, again, since the January survey. Now again, this talks to the compression in spending. Now one of the big themes we hear constantly in cybersecurity is the market is overcrowded. Everybody talks about that, me included. The implication there, is there's a lot of room for consolidation and that consolidation can come in the form of M&A, or it can come in the form of people consolidating onto a single platform, and retiring some other vendors, and getting rid of duplicate vendors. We're hearing that as a big theme as well. Now, as we saw in the previous, previous chart, this is a very crowded market and we've seen lots of consolidation in 2022, in the form of M&A. Literally hundreds of M&A deals, with some of the largest companies going private. SailPoint, KnowBe4, Barracuda, Mandiant, Fedora, these are multi billion dollar acquisitions, or at least billion dollars and up, and many of them multi-billion, for these companies, and hundreds more acquisitions in the cyberspace, now less you think the pond is overfished, here's a chart from ETR of emerging tech companies in the cyber security industry. This data comes from ETR's Emerging Technologies Survey, ETS, which is this diamond in a rough that I found a couple quarters ago, and it's ripe with companies that are candidates for M&A. Many would've liked, many of these companies would've liked to, gotten to the public markets during the pandemic, but they, you know, couldn't get there. They weren't ready. So the graph, you know, similar to the previous one, but different, it shows net sentiment on the vertical axis and that's a measurement of, of, of intent to adopt against a mind share on the X axis, which measures, measures the awareness of the vendor in the community. So this is specifically a survey that ETR goes out and, and, and fields only to track those emerging tech companies that are private companies. Now, some of the standouts in Mindshare, are OneTrust, BeyondTrust, Tanium and Endpoint, Net Scope, which we've talked about in previous Breaking Analysis. 1Password, which has been acquisitive on its own. In identity, the managed security service provider, Arctic Wolf Network, a company we've also covered, we've had their CEO on. We've talked about MSSPs as a real trend, particularly in small and medium sized business, we'll come back to that, Sneek, you know, kind of high flyer in both app security and containers, and you can just see the number of companies in the space this huge and it just keeps growing. Now, just to make it a bit easier on the eyes we filtered the data on these companies with with those, and isolated on those with more than a hundred responses only within the survey. And that's what we show here. Some of the names that we just mentioned are a bit easier to see, but these are the ones that really stand out in ERT, ETS, survey of private companies, OneTrust, BeyondTrust, Taniam, Netscope, which is in Cloud, 1Password, Arctic Wolf, Sneek, BitSight, SecurityScorecard, HackerOne, Code42, and Exabeam, and Sim. All of these hit the ETS survey with more than a hundred responses by, by the IT practitioners. Okay, so these firms, you know, maybe they do some M&A on their own. We've seen that with Sneek, as I said, with 1Password has been inquisitive, as have others. Now these companies with the larger footprint, these private companies, will likely be candidate for both buying companies and eventually going public when the markets settle down a bit. So again, no shortage of players to affect consolidation, both buyers and sellers. Okay, so let's finish with some key questions that we're watching. CrowdStrike in particular on its earnings calls cited softness from smaller buyers. Is that because these smaller buyers have stopped adopting? If so, are they more at risk, or are they tactically moving toward the easy button, aka, Microsoft's good enough approach. What does that mean for the market if smaller company cohorts continue to soften? How about MSSPs? Will companies continue to outsource, or pause on on that, as well as try to free up, to try to free up some budget? Adam Celiski at Reinvent last week said, "If you want to save money the Cloud's the best place to do it." Is the cloud the best place to save money in cyber? Well, it would seem that way from the standpoint of controlling budgets with lots of, lots of optionality. You could dial up and dial down services, you know, or does the Cloud add another layer of complexity that has to be understood and managed by Devs, for example? Now, consolidation should favor the likes of Palo Alto and CrowdStrike, cause they're platform players, and some of the larger players as well, like Cisco, how about IBM and of course Microsoft. Will that happen? And how will economic uncertainty impact the risk equation, a particular concern is increase of tax on vulnerable sectors of the population, like the elderly. How will companies and governments protect them from scams? And finally, how many cybersecurity companies can actually remain independent in the slingshot economy? In so many ways the market is still strong, it's just that expectations got ahead of themselves, and now as earnings forecast come, come, come down and come down to earth, it's going to basically come down to who can execute, generate cash, and keep enough runway to get through the knothole. And the one certainty is nobody really knows how tight that knothole really is. All right, let's call it a wrap. Next week we dive deeper into Palo Alto Networks, and take a look at how and why that company has held up so well and what to expect at Ignite, Palo Alto's big user conference coming up later this month in Las Vegas. We'll be there with theCube. Okay, many thanks to Alex Myerson on production and manages the podcast, Ken Schiffman as well, as our newest edition to our Boston studio. Great to have you Ken. Kristin Martin and Cheryl Knight help get the word out on social media and in our newsletters. And Rob Hof is our EIC over at Silicon Angle. He does some great editing for us. Thank you to all. Remember these episodes are all available as podcasts. Wherever you listen, just search Breaking Analysis podcast. I publish each week on wikibond.com and siliconangle.com, or you can email me directly David.vellante@siliconangle.com or DM me @DVellante, or comment on our LinkedIn posts. Please do checkout etr.ai, they got the best survey data in the enterprise tech business. This is Dave Vellante for theCube Insights powered by ETR. Thanks for watching, and we'll see you next time on Breaking Analysis. (upbeat music)

>>The Cube presents UI Path Forward five. Brought to you by UI Path. >>Hi everybody. We're back at UI path forward to five. This is Dave Ante with Dave Nicholson. Derek Mu is here. He's automation product line lead for Merck. Thank you, by the way, for, you know, all you guys do, and thank you Dave for having in the, in the, in the vaccine area, saving our butts. And Bill Engel is back on the cube. He's the director at cgi. Guys, good to see you again. >>Good to see you. Thank >>You. So Merrick, Wow, it's been quite a few years for you guys. Take us through Derek, what's happening in sort of your world that's informing your automation strategy? >>Well, Dave, I mean as you know, we just came out of the pandemic. We actually have quite a few products like Gabriel Antiviral Pill. Obviously we worked, you know, continue to drive our products through a difficult time. But, you know, is during these can last few years that, you know, we've accelerated our journey in automation. We're about four years plus in our journey, you know, so just like the theme of this conference we're we're trying to move towards, you know, bigger automations, transformational change, continue to drive digital transformation in our company. >>Now Bill, you've been on before, but CGI tell people about the firm. It's not computer graphics imaging. >>Sure. No, it's, it's definitely not. So cgi, we're a global consultancy about 90,000 folks across the world. We're a, we're both a product company and a services company. So we have a lot of different, you know, software products that we deliver to our clients, such as CGI Advantage, which is a state local government EER P platform. And so outside of that, we, my team does automation and so we wrap automation around R IP and deliver that to our clients. >>So you guys are automation pros, implementation partners, right? So, so let's go back. Yep. Derek said four years I think. Yep. Right, You're in. So take us through what was the catalyst, how did you get started? Obviously it was pre pandemic, so it's interesting, a lot of companies pre pandemic gave lip service to digital transformation. Sounds like you guys already started your journey, but I'll come back to that. But take us back to the Catalyst four years ago. Why automation? We'll get into why UI path, >>Right. So I, I would say it started pretty niche in our company. Started first in our finance area. Of course, you know, we were looking in technology evaluating different companies, Blue Prism, ui P. Ultimately we chose UI p did it on-prem to start to use automation in sort of our invoice processing, sort of our financial processes, right? And then from there, after it was really when the pandemic hit, that's when sort of we all went to remote work. That's when the team, the COE continued to scale up, especially during pandemic. We were trying to automate more and more processes given the fact that more and more of our workers are remote, they reprocesses. How, how do you do events? You know, part of our livelihood is, is meeting with engaging with customers. Customers in this case is, are doctors and physicians, right? How do you engage with them digitally? How do you, you know, you know, a lot of the face to face contact now have to kind of shift to more digital, digital way. And so automation was a way to kind of help accelerate that, help facilitate that. >>You, you, I think you mentioned COE as in center of excellence. Yep. So, so describe your approach to implementing automation. It's, that sounds like when you say center, it sounds like something is centralized as, as opposed to a bunch of what we've been hearing a lot about citizen developers. What does that interaction >>Look like? We do have both. I would say in the beginning was more decentralized, but over time we, over the few years as, as we built more and more bots, we're now at maybe somewhere between four to 500 bots. We now have sort of internal to the company functional verticals, right? So there's an animal health, we have an animal health function. So there's, there's a team building engaging with the animal health business to build animal health box. There's human health, which is what I work on as well as hr, finance, manufacturing, research. And so internally there's engagement leads, one of the engagement leads that interact with the business. Then when there's an engineering squads that help build and design, develop and support and maintain those as well as sort of a DevOps team that supports the platform and maintains all the bot infrastructure. >>So you started in finance common story, right? I'm sure you hear this a lot Belt, How did you decide what to target? Was it, was it process driven decision? Was it, was it data oriented? Like some kind of combination? How did you decide, Do you remember? Or do you, could you take >>Us back to Oh yeah. So for, for cgi how we started to engage with MER is, you know, we, we do a lot of other business with Merck. We work on all their different business lines and we, we understand the business process. So we, we knew where there was potential for automation. So we brought those ideas to Merck and, and really kind of landed there and helped them realize the value from automation from that standpoint. And then from there the journey just continued to expand, you know, looking for those use cases that, that, you know, fit the mold for, for, for RPA to start. And now the evolution is to go to broader hyper automation. >>And, and was it CFO led into the finance department and then, or was it sort of more bottoms >>Up? Yeah, so, so I think it started in, in finance and, and, but we actually really started out in the business line. So out in regulatory clinical, that's, that's where we, we have the life science expertise that are embedded. And so I partnered with them to come up with, hey, here's a real solution we could do to help streamline, say submission archiving. So when, when submissions come back from the fda, they need to be archived into, you know, the, their system of record. So that's, those are the types of use cases that, that we helped automate. >>Okay. Cause you're saying a human had to sort physically archive that and you were able to sort of replicate that. Okay. And you started with software robots, obviously rpa and now you're expanding into, we we're hearing from UI this the platform message. How does that coincide Derek, with what you guys are doing? Are you sort of adding platform? What aspects of the platform are, are you adding? >>Yeah, no, I mean we are, we are on-premise, right? So we have the platform, but some of the cool things we just had, another colleague of mine presented earlier today. Some of the cool things we're, we're doing ephemeral infrastructure. So infrastructure as code, which essentially means instead of having all these dedicated bot machines, that that, you know, cuz these bots only in some cases run 10 minutes and they're done. So we're, we're soon of doing all on demand, you know, start up a server, run the bot when it's finished, you know, kill the server. So we only pay for the servers that we use, which allows us to save a whole >>Lot of money. Serverless bots. So you, but you're doing that OnPrem, so you >>No, >>No, but >>That's >>Cloud. We, >>We, we we're doing it OnPrem, but our, our bot machines that actually run the, let's say SAP process, right? We spin that machine up, it's on the cloud, it runs it finish, Let's say it's processed in one hour and then when it's done, we kill that machine. So we only play for that one hour usage of that bot machine. >>Okay. So you mentioned SAP earlier you mentioned Blue Prism when you probably looked at other competitors too. You pull the Gartner Magic quadrant, blah, blah, you know, with the way people, you know, evaluate technology, but SAP's got a product. Why UI path mean? Is it that a company like SAP two narrow for their only sap you wanted to apply it other ways? Maybe they weren't even in the business that back then four years ago they probably weren't. Right? But I'm curious as to how the decision was made for UiPath. >>Well, I think you hit it right on the nail. You know, SAP sort of came on a little later and they're specific to sort of their function, right? So UiPath for us is the most flexible tool can interact by UI to our sales and marketing systems, to, to workday, to service Now. It's, it cuts across every function that we have in the company as well as you're the most mature. I mean, you're the market leader, right? So Right. Definitely you, you continue to build upon those capabilities and we are exploring the new capabilities, especially being announced today. >>And what do you see Bill in the marketplace? Are you, are you kind of automation tool agnostic? Are you more sort of all in on? I >>Would say we are, we are agnostic as a company, but obviously as part of a, as an automation practice lead, you know, I want to deliver solutions to my clients that are gonna benefit them as a whole. So looking at UI path, you know, that this platform is, it covers the end to end spectrum of, of automation. So I can go really into any use case and be able to provide a solution that, that delivers value. And so that's, that's where I see the value in UI path and that's why CGI is, is a customer as well. We automate our internal processes. We actually have, we just launched probably SALT in the, in the market last week, expanded partnership with UiPath. We launched CGI, Excel 360. That's our fully managed service around automation. We host our clients whole UI path infrastructure and bots. It's completely hands off to them and they just get the value outta >>Automation. Nice, nice. Love >>It. Derek, you mentioned, you mentioned this ephemeral infrastructure. Yeah. Sounds like it's also ethereal possibility possibly you're saying, you, you're saying you have processes that are running on premises, right? But then you reach out to have an automation process run that's happening off pre and you're, and you're sort of, >>It's on the cloud, so, so yeah, so we have a in-house orchestrator, so we don't, we're not using your sort of on the cloud orchestrator. So, so we brought it in-house for security reasons. Okay. But we use, you know, so inside the vpn, you know, we have these cloud machines that run these automations. So, so that's, that's the ephemeral side of the, of the >>Infrastructure. But is there a financial angle to that in terms of when you're spinning these things up, are you, is it a, is it a pay by the drink or by the, by the CPU >>Hours, if you can imagine like we, you know, like I mentioned where somewhere between four to 500 bots and every bot has a time slot to run and takes a certain amount of time. And so that's hundreds and hundreds of bot machines that we in the old days have to have to buy and procure and, you know, staff and support and maintain. So in this new model, and we're just beginning to kind of move from pilot into implementation, we're moving all, all of bots this in ephemeral infrastructure, right? So these, okay, these machines, these bot machines are, you know, spun up. They run the, they, they run their automation and then they spin >>Down. But just to be clear, they're being spun up on physical infrastructure that is in your >>Purview and they spun up on aws. Yeah. Okay. And then they spin down. Okay, got >>It. Got it. Interesting. Four >>To 500 bots. You know, Daniel one point play out this vision of a bot chicken in every pot, I called it a bot for every employee. Is that where you're headed or is that kind of in this new ephemeral world, not necessary, it's like maybe every employee has access to an ephemeral bot. How, how are you thinking about that? >>That's a good question. So obviously the, the four to 500 is a mix of unattended bonds versus attended bonds, right? That, that we also have a citizen developer, sort of a group team. We support that as well from a coe. So, you know, we see the future as a mix. There's, there's a spectrum of, we are the professional development team. There's also, we support and nurture the personal automation and we provide the resources to help them build smaller scale automations that help, you know, reduce the, you know, the mundaneness and the hours of their own tasks. But you know, for us, we want to focus more and more on building bigger and bigger transfer transformational automations that really drive process efficiencies and, and savings. >>And what's the, what's the business impact been? You mentioned savings and maybe there's other sort of productivity. How do you measure the benefit, the ROI and, and >>Quantify that we, you know, I, I don't, I don't profess I don't think we have all the right answers, but yeah, simple metrics like number of hours saved or other sort of excitement sort of in like an nps, internal NPS between the different groups that we engage. But we definitely see automation demand coming from our, our functional teams going up, driving up. So it's, it's continued to be a hot area and hopefully we, we can, you know, like, like what the key message and theme of this, of this conference. Essentially we want to take and build upon the, the good work that we've done in terms of rpa and we want to drive it more towards digital transformation. >>So Bill, what are you seeing across the, your customer base in terms of, of, of roi? I'm not looking for percentages there. I'm sure they're off the charts, but in terms of, you know, you can optimize for fast payback, you know, maybe lower the denominator, you know, or you can optimize for, you know, net benefit over time, right? You know, what are you seeing? What are customers after they want fast payback and little quick hits? Or are they looking for sort of a bigger enterprise wide impact? >>Yeah, I think it's, it's the latter. It's that larger impact, right? Obviously they, you know, they want an roi and just depending upon the use case, that's gonna vary in terms of the, the benefits delivered. And a lot of our clients, depending on the industry, so in in life sciences it may be around, you know, compliance like GXP compliance is huge. And so that may may not be much of a time saver, but it ensures that they're, they're running their processes and they're being compliant with, you know, federal standards. So that's, that's one aspect to it. But you know, to, you know, a bank, they're looking to reduce their overall costs and and so on. But yeah, I think, I think the other, the other part of it is, you know, impacting broader business processes. So taking that top down approach versus kind of bottom up, you know, doing ta you know, the ones you choose the tasks is not as impactful as looking at broader across the entire business process and seeing how we can impact >>It. Now, Derek, when you guys support a citizen developer, how does that work? So, hey, I got this task I want to automate, I'm gonna go write a, you know, software robot. I'm gonna go do an automation. Do I just do it and then throw her to the defense? You guys, you guys send me a video on how to do it. Hold my hand. How's that work? >>Yeah, I mean, good question. So, so we obviously direct them to the UI path Academy, get some training. We also have some internal training materials to how to build a bot sort of internal inside Merck. We, we go through, we have writeups and SOPs on using the right framework for automations, using the right documentation, PDD kind of materials, and then ultimately how do we deploy bot inside the MER ecosystem. But I, I, maybe I'll just add, I think you asked the point about ROI before. Yeah. I'll also say because we're, we're a pharmaceutical company. I think one of the other key metrics is actually time saved, right? So if, if, if we have a bot that helps us get through the clinical process or even the getting a, a label approved faster, even if it's eight days saved, that's eight days of a product that can get out to the market faster to, to our patients and, and healthcare professionals. And that's, that, that's immeasurable benefit. >>Yeah, I bet if you compress that ELAP time of, of getting approval and so forth. All right guys, we've gotta go. Thanks so much. Congratulations on all the success and appreciate you sharing your story. Thank >>You so much. Appreciate it. You're welcome. >>Appreciate it. All right. Thank you for watching this Dave Ante for Dave Nicholson, The cubes coverage, two day coverage. We're here in day one, UI path forward, five. We'll be right back right after the short break. Awesome. >>Great.

>>the Cube presents H p E discover 2022. Brought to you by H P E. >>Okay, we're back at HPD. Discovered 2022 This is Day Three. We're kind of in the mid point of day three. John Furry and Dave Volonte Wall to wall coverage. I think there are 14th hp slash hp Discover we've sort of documented the history of the company over the last decade. Plus, I'm not a is here is executive vice president at Infosys and Cejudo. Sankaran Kutty is the CEO and vice president of Infosys. Infosys doing some amazing work in the field with clients. Guys, Thanks for coming on the Cube. Thank >>you for the opportunity. >>Yeah, absolutely so. Digital transformation. It's all the buzz word kind of pre pandemic. It was sort of Yeah, you know, we'll get there a lot of lip service to it. Some Some started the journey and then, of course, pandemic. If you weren't digital business, you are out of business. What are the trends that you're seeing now that we're exiting the isolation economy? >>Yeah, um, again, as you rightly called out pre pandemic, it was all about using sort of you know innovation at scale as one of the levers for digital transformation. But if you look at now, post Pandemic, one of the things that we see it's a big trend is at a broad level, right? Digital transformation is not about cost. Take out. Uh, it's all about growth, right? So essentially, uh, like, uh, what we hear from most of the CEO s and most of the customers and most of the executives in the tech company, Digital transformation should be used for business growth. And essentially, it means three things that we see three trends in that space. One is how can you build better products and solutions as part of your transformation strategy? How can you basically use digital transformation to expand into new markets and new new territories and new regions? And the third is, how can you better the experience for your customers? Right. So I think that is broadly what we see as, uh, some other things. And essentially, if you have better customer experience, they will buy more. If you expand into new markets, your revenue will increase. If you actually build better products and solutions, consumers will buy it right, so It's basically like a sort of an economy that goes hand in hand. So I would say the trend is clearly going towards business growth than anything else when it comes to the, >>you know, follow up on that. We had I d. C on yesterday and they were sharing with some of their high level numbers. We've looked at this and and and it seems like I t spending is pretty consistent despite the fact that, for example, you know, the to see the consumer businesses sort of tanking right now. Are you seeing any pullback or any evidence that people are pulling the reins back on the digital transformation Or they just going because if they don't keep keep moving fast, they're gonna fall behind. What are you seeing there? Absolutely. >>In fact, you know what? What we call them as the secular headwinds, right? I mean, if you look at the headwinds here, we see digital transformation is in the minds of everybody, every customer, right. So while there are budget constraints, where are all these macro tailwinds as we call with respect to inflation, with respect to what's happening with Russia and Ukraine with respect to everything that's happening with respect to supply chain right. I think we see some of those tail headwinds. But essentially, digital transformation is not stopping. Everybody is going after that because essentially they want to be relevant in the market. And if they want to be relevant in the market, they have to transform. And if they have to transform, they have to adopt digital transformation. >>Basically, there's no hiding anymore. You know, hiding and you can't hide the projects and give lip service because there's evidence of what the consequences are. And it can be quantified. Yes, you go out of business, you lose money. You mentioned some of the the cost takeouts growth is yes. So I got given the trends and the headwinds and the tail winds. What are you guys seeing as the pattern of companies that came out of the pandemic with growth? And what's going on with that growth driver? What are the elements that are powering companies to grow? Is that machine learning? Is that cloud scales and integration? What are some of the key areas that's given that extra up into the right? >>Yes, I I would say there are six technologies that are defining how growth is being enabled, right? So I think we call it as cloud ai edge five g, Iot and of course, everything to do with a And so these are six technologies that are powering digital transformation. And, uh, one of the things that we are saying is more and more customers are now coming and saying that we want to use these six technologies to drive business outcomes. Uh, for example, uh, we have a very large oil and gas customer of ours who says that, you know, we want to basically use cloud as a lever to Dr Decarbonization. E S G is such a big initiative for everybody in the SGS in the minds of everybody. So their outcome of using technology is to drive decarbonization. And they don't make sure that, you know, they achieve the goals of E. S G. Right There is another customer of ours in the retail space. They are saying we want to use cloud to drive experience for our employees. So I would say that you know, there is pretty much, you know, all these drivers which are helping not just growing their business, but also bettering the experience and meeting some of the organisation goals that they have set up with respect to cloud. So I would say Cloud is playing a big role in every digital transformation initiative of the company. >>How do you spend your time? What's the role of the CEO inside of a large organisation like Infosys? >>So, um, one is in terms of bringing in an outside in view of how technology is making an impact to our customers. And I'm looking at How do we actually start liberating some of these technologies in building solutions, you know, which can actually drive value for our customers? That's one of the focus areas. You know what I do? Um, And if you look at some of the trends, you know what we have seen in the past years as well as what we're seeing now? Uh, there's been a huge spend around cloud which is happening with our customers and predominantly around the cloud Native application development, leveraging some of the services. What's available from the cloud providers like eh? I am l in Hyoty. Um, and and there's also a new trend. You know what we are seeing off late now, which is, um, in terms of improving the experience overall experience liberating some of the technologies, like technologies like block, block, chain as well as we are, we are right, and and this is actually creating new set of solutions. Um, new demands, you know, for our customers in terms of leveraging technologies like matadors leveraging technologies like factory photo. Um, and these are all opportunities for us to build solutions, you know, which can, you know, improve the time to market for our customers in terms of adopting some of these things. Because there has been a huge focus on the improved end user experience or improve experience improved, uh, productivity of, uh, employees, you know, which is which has been a focus. Uh, post pandemic. Right? You know, it has been something which is happening pre pandemic, but it's been accelerated Post pandemic. So this is giving an opportunity for for my role right now in terms of liberating these technologies, building solutions, building value propositions, taking it to our customers, working with partners and then trying to see how we can have this tightly integrated with partners like HP E in this case, and then take it jointly to the market and and find out you know, what's what's the best we can actually give back to our customers? >>You know, you guys have been we've been following you guys for for a long, long time. You've seen many cycles, uh, in the industry. Um, and what's interesting to get your reaction to what we're seeing? A lot of acceleration points, whether it's cloud needed applications. But one is the software business is no longer there. It's open source now, but cloud scale integrations, new hybrid environment kind of brings and changes the game, so there's definitely software plentiful. You guys are doing a lot of stuff with the software. How are customers integrated? Because seeing more and more customers participating in the open source community uh, so what? Red hat's done. They're transforming the open shift. So as cloud native applications come in and get scale and open source software, cloud scale performance and integrations are big. You guys agree with that? >>Absolutely. Absolutely. So if you if you look at it, um, right from the way we can't socialise those solutions, um, open source is something What we have embedded big way right into the solution. Footprint. What we have one is, uh, the ability for us to scale the second is the ability for us to bring in a level of portability, right? And the third is, uh, ensuring that there is absolutely no locking into something. What we're building. We're seeing this this being resonated by our customers to because one is they want to build a child and scalable applications. Uh, it's something where the whole, I would say, the whole dependency on the large software stacks. Uh, you know, the large software providers is likely diminishing now, right? Uh, it's all about how can I simplify my application portfolio Liberating some of the open source technologies. Um, how can I deploy them on a multi cloud world liberating open standards so that I'm not locked into any of these providers? Um, how can I build cloud native applications, which can actually enable portability? And how can I work with providers who doesn't have a lock in, you know, into their solutions, >>And security is gonna be embedded in everything. Absolutely. >>So security is, uh, emperor, right from, uh, design phase. Right? You know, we call it a secure by design And that's something What? We drive for our customers right from our solutions as well as for developing their own solutions >>as opposed to secure by bolt on after the fact. What is the cobalt go to market strategy? How does that affect or how you do business within the HP ecosystem? Absolutely. >>I think you know what we did in, uh, in 2000 and 20. We were the first ones, uh, to come out with an integrated cloud brand called Cobalt. So essentially, our thought process was to make sure that, you know, we talk one consistent language with the customer. There is a consistent narrative. There is a consistent value proposition that we take right. So, essentially, if you look at the Cobalt gold market, it is based on three pillars. The first pillar is all about technology solutions. Getting out of data centres migrating were close to cloud E r. P on Cloud Cloud, Native Development, legacy modernisation. So we'll continue to do that because that's the most important pillar. And that's where our bread and butter businesses right. The second pillar is, uh, more and more customers are asking industry cloud. So what are you specifically doing for my industry. So, for example, if you look at banking, uh, they would say we are focused on Modernising our payment systems. We want to reduce the financial risk that we have because of anti money laundering and those kind of solutions that they're expecting. They want to better the security portion. And of course, they want to improve the experience, right? So they are asking for each of these imperatives that we have in banking. What are some of those specific industry solutions that you are bringing to the table? Right. So that's the second pillar of our global go to market. And the third pillar of our go to market as soon as I was saying is looking at what we call us Horizon three offerings, whether it is metal wars, whether it is 13.0, whether it is looking at something else that will come in the future. And how do we build those solutions which can become mainstream the next 18 to 24 months? So that's essentially the global >>market. That's interesting. Okay, so take the banking example where you've got a core app, it's probably on Prem, and it's not gonna have somebody shoved into the cloud necessarily. But they have to do things like anti money, money laundering and know your ky. See? How are they handling that? Are they building micro services? Are you building for them microservices layers around that that actually might be in the cloud or cloud Native on Prem and Greenway. How is that? How are customers Modernising? >>Absolutely brilliant question. In fact, what we have done is, uh, as part of cobalt, we have something called a reference. Architecture are basically a blueprint. So if you go to a bank and you're engaging a banking executive, uh, the language that we speak with them is not about, uh, private cloud or public cloud or AWS or HP or zero, right? I mean, we talk the language that they understand, which is the banking language. So we take this reference architecture, and we say here is what your core architecture should look like. And, as you rightly called out, there is K. I see there is retail banking. There is anti money laundering. There is security experience. Uh, there are some kpi s and those kind of things banking a PSR open banking as we call, How do we actually bring our solutions, which we have built on open source and something that are specific to cloud and something that our cloud neutral and that's what we take them. So we built this array of solutions around each of those reference architectures that we take to our customers. >>Final question for you guys. How are you guys leveraging the H, P E and new Green Lake and all the new stuff they got here to accelerate the customers journey to edge the cloud? >>So I would say it on three areas right now. This is one is Obviously we are working very closely with HP in terms of taking out solutions jointly to the market and, um, leveraging the whole green late model and providing what I call it as a hyper scale of like experience for our customers in a hybrid, multi cloud world. That's the first thing. The second thing is Onion talked about the cobalt, right? It's an important, I would say, an offering from, uh, you know and offering around cloud from our side. So what we've done is we've closely integrated the assets. You know what I was referring to what we have in our cobalt, uh, under other Kobold umbrella very closely with the HP ecosystem, right? You know, it can be tools like the Emphasis Polly Cloud Platform or the Emphasis pollinate platform very tightly integrated with the HP stack, so that we could actually offer the value proposition right across the value chain. The thought of you know we have actually taken the industry period, like what again mentioned right in terms of rather than talking about a public cloud or a private cloud solution or an edge computing solution. We actually talk about what exactly are the problem statements? What is there in manufacturing today? Or it's there in financial industries today? Or or it's in a bank today or whatever it's relevant to the industry. That's an industry people. So we talk right from an industry problem and and and and and and build that industry, industry people solutions, leveraging the assets, what we have in the and the framework that we have within the couple, plus the integrated solutions. What we bring along with HB. That's that's Those are the three things, what we do along with >>it and that that industry pieces do. There's a whole data layer emerging those industries learning cos they're building their own clouds. Look, working with companies like you because they want to monetise. That's a big part of their digital strategy, guys. Thanks so much for coming on the cue. Thank you. Appreciate your time. Thank >>you. Thank you very much. Really appreciate. >>Thank you. Thank you for watching John and I will be back. John Ferrier, Development at HPD Discovered 2022. You're watching the queue? >>Yeah. >>Mm.

>>Have you ever wondered how we sequence the human genome, how your smartphone is so well smart, how we will ever analyze all the patient data for the new vaccines or even how we plan to send humans to Mars? Well, at Cloudera, we believe that data can make what is impossible today possible tomorrow we are the enterprise data cloud company. In fact, we provide analytics and machine learning technology that does everything from making your smartphone smarter, to helping scientists ensure that new vaccines are both safe and effective, big data, no problem out era, the enterprise data cloud company. >>So I think for a long time in this country, we've known that there's a great disparity between minority populations and the majority of population in terms of disease burden. And depending on where you live, your zip code has more to do with your health than almost anything else. But there are a lot of smaller, um, safety net facilities, as well as small academic medical colleges within the United States. And those in those smaller environments don't have the access, you know, to the technologies that the larger ones have. And, you know, I call that, uh, digital disparity. So I'm, Harry's in academic scientist center and our mission is to train diverse health care providers and researchers, but also provide services to underserved populations. As part of the reason that I think is so important for me hearing medical college, to do data science. One of the things that, you know, both Cloudera and Claire sensor very passionate about is bringing those height in technologies to, um, to the smaller organizations. >>It's very expensive to go to the cloud for these small organizations. So now with the partnership with Cloudera and Claire sets a clear sense, clients now enjoy those same technologies and really honestly have a technological advantage over some of the larger organizations. The reason being is they can move fast. So we were able to do this on our own without having to, um, hire data scientists. Uh, we probably cut three to five years off of our studies. I grew up in a small town in Arkansas and is one of those towns where the railroad tracks divided the blacks and the whites. My father died without getting much healthcare at all. And as an 11 year old, I did not understand why my father could not get medical attention because he was very sick. >>Since we come at my Harry are looking to serve populations that reflect themselves or affect the population. He came from. A lot of the data you find or research you find health is usually based on white men. And obviously not everybody who needs a medical provider is going to be a white male. >>One of the things that we're concerned about in healthcare is that there's bias in treatment already. We want to make sure those same biases do not enter into the algorithms. >>The issue is how do we get ahead of them to try to prevent these disparities? >>One of the great things about our dataset is that it contains a very diverse group of patients. >>Instead of just saying, everyone will have these results. You can break it down by race, class, cholesterol, level, other kinds of factors that play a role. So you can make the treatments in the long run. More specifically, >>Researchers are now able to use these technologies and really take those hypotheses from, from bench to bedside. >>We're able to overall improve the health of not just the person in front of you, but the population that, yeah, >>Well, the future is now. I love a quote by William Gibson who said the future is already here. It's just not evenly distributed. If we think hard enough and we apply things properly, uh, we can again take these technologies to, you know, underserved environments, um, in healthcare. Nobody should be technologically disadvantage. >>When is a car not just a car when it's a connected data driven ecosystem, dozens of sensors and edge devices gathering up data from just about anything road, infrastructure, other vehicles, and even pedestrians to create safer vehicles, smarter logistics, and more actionable insights. All the data from the connected car supports an entire ecosystem from manufacturers, building safer vehicles and fleet managers, tracking assets to insurers monitoring, driving behaviors to make roads safer. Now you can control the data journey from edge to AI. With Cloudera in the connected car, data is captured, consolidated and enriched with Cloudera data flow cloud Dara's data engineering, operational database and data warehouse provide the foundation to develop service center applications, sales reports, and engineering dashboards. With data science workbench data scientists can continuously train AI models and use data flow to push the models back to the edge, to enhance the car's performance as the industry's first enterprise data cloud Cloudera supports on-premise public and multi-cloud deployments delivering multifunction analytics on data anywhere with common security governance and metadata management powered by Cloudera SDX, an open platform built on open source, working with open compute architectures and open data stores all the way from edge to AI powering the connected car. >>The future has arrived. >>The Dawn of a retail Renaissance is here and shopping will never be the same again. Today's connected. Consumers are always on and didn't control. It's the era of smart retail, smart shelves, digital signage, and smart mirrors offer an immersive customer experience while delivering product information, personalized offers and recommendations, video analytics, capture customer emotions and gestures to better understand and respond to in-store shopping experiences. Beacons sensors, and streaming video provide valuable data into in-store traffic patterns, hotspots and dwell times. This helps retailers build visual heat maps to better understand custom journeys, conversion rates, and promotional effectiveness in our robots automate routine tasks like capturing inventory levels, identifying out of stocks and alerting in store personnel to replenish shelves. When it comes to checking out automated e-commerce pickup stations and frictionless checkouts will soon be the norm making standing in line. A thing of the past data and analytics are truly reshaping. >>The everyday shopping experience outside the store, smart trucks connect the supply chain, providing new levels of inventory visibility, not just into the precise location, but also the condition of those goods. All in real time, convenience is key and customers today have the power to get their goods delivered at the curbside to their doorstep, or even to their refrigerators. Smart retail is indeed here. And Cloudera makes all of this possible using Cloudera data can be captured from a variety of sources, then stored, processed, and analyzed to drive insights and action. In real time, data scientists can continuously build and train new machine learning models and put these models back to the edge for delivering those moment of truth customer experiences. This is the enterprise data cloud powered by Cloudera enabling smart retail from the edge to AI. The future has arrived >>For is a global automotive supplier. We have three business groups, automotive seating in studios, and then emission control technologies or biggest automotive customers are Volkswagen for the NPSA. And we have, uh, more than 300 sites. And in 75 countries >>Today, we are generating tons of data, more and more data on the manufacturing intelligence. We are trying to reduce the, the defective parts or anticipate the detection of the, of the defective part. And this is where we can get savings. I would say our goal in manufacturing is zero defects. The cost of downtime in a plant could be around the a hundred thousand euros. So with predictive maintenance, we are identifying correlations and patterns and try to anticipate, and maybe to replace a component before the machine is broken. We are in the range of about 2000 machines and we can have up to 300 different variables from pressure from vibration and temperatures. And the real-time data collection is key, and this is something we cannot achieve in a classical data warehouse approach. So with the be data and with clouded approach, what we are able to use really to put all the data, all the sources together in the classical way of working with that at our house, we need to spend weeks or months to set up the model with the Cloudera data lake. We can start working on from days to weeks. We think that predictive or machine learning could also improve on the estimation or NTC patient forecasting of what we'll need to brilliance with all this knowledge around internet of things and data collection. We are applying into the predictive convene and the cockpit of the future. So we can work in the self driving car and provide a better experience for the driver in the car. >>The Cloudera data platform makes it easy to say yes to any analytic workload from the edge to AI, yes. To enterprise grade security and governance, yes. To the analytics your people want to use yes. To operating on any cloud. Your business requires yes to the future with a cloud native platform that flexes to meet your needs today and tomorrow say yes to CDP and say goodbye to shadow it, take a tour of CDP and see how it's an easier, faster and safer enterprise analytics and data management platform with a new approach to data. Finally, a data platform that lets you say yes, >>Welcome to transforming ideas into insights, presented with the cube and made possible by cloud era. My name is Dave Volante from the cube, and I'll be your host for today. And the next hundred minutes, you're going to hear how to turn your best ideas into action using data. And we're going to share the real world examples and 12 industry use cases that apply modern data techniques to improve customer experience, reduce fraud, drive manufacturing, efficiencies, better forecast, retail demand, transform analytics, improve public sector service, and so much more how we use data is rapidly evolving as is the language that we use to describe data. I mean, for example, we don't really use the term big data as often as we used to rather we use terms like digital transformation and digital business, but you think about it. What is a digital business? How is that different from just a business? >>Well, digital business is a data business and it differentiates itself by the way, it uses data to compete. So whether we call it data, big data or digital, our belief is we're entering the next decade of a world that puts data at the core of our organizations. And as such the way we use insights is also rapidly evolving. You know, of course we get value from enabling humans to act with confidence on let's call it near perfect information or capitalize on non-intuitive findings. But increasingly insights are leading to the development of data, products and services that can be monetized, or as you'll hear in our industry, examples, data is enabling machines to take cognitive actions on our behalf. Examples are everywhere in the forms of apps and products and services, all built on data. Think about a real-time fraud detection, know your customer and finance, personal health apps that monitor our heart rates. >>Self-service investing, filing insurance claims and our smart phones. And so many examples, IOT systems that communicate and act machine and machine real-time pricing actions. These are all examples of products and services that drive revenue cut costs or create other value. And they all rely on data. Now while many business leaders sometimes express frustration that their investments in data, people, and process and technologies haven't delivered the full results they desire. The truth is that the investments that they've made over the past several years should be thought of as a step on the data journey. Key learnings and expertise from these efforts are now part of the organizational DNA that can catapult us into this next era of data, transformation and leadership. One thing is certain the next 10 years of data and digital transformation, won't be like the last 10. So let's get into it. Please join us in the chat. >>You can ask questions. You can share your comments, hit us up on Twitter right now. It's my pleasure to welcome Mick Holliston in he's the president of Cloudera mic. Great to see you. Great to see you as well, Dave, Hey, so I call it the new abnormal, right? The world is kind of out of whack offices are reopening again. We're seeing travel coming back. There's all this pent up demand for cars and vacations line cooks at restaurants. Everything that we consumers have missed, but here's the one thing. It seems like the algorithms are off. Whether it's retail's fulfillment capabilities, airline scheduling their pricing algorithms, you know, commodity prices we don't know is inflation. Transitory. Is it a long-term threat trying to forecast GDP? It's just seems like we have to reset all of our assumptions and make a feel a quality data is going to be a key here. How do you see the current state of the industry and the role data plays to get us into a more predictable and stable future? Well, I >>Can sure tell you this, Dave, uh, out of whack is definitely right. I don't know if you know or not, but I happen to be coming to you live today from Atlanta and, uh, as a native of Atlanta, I can, I can tell you there's a lot to be known about the airport here. It's often said that, uh, whether you're going to heaven or hell, you got to change planes in Atlanta and, uh, after 40 minutes waiting on algorithm to be right for baggage claim when I was not, I finally managed to get some bag and to be able to show up dressed appropriately for you today. Um, here's one thing that I know for sure though, Dave, clean, consistent, and safe data will be essential to getting the world and businesses as we know it back on track again, um, without well-managed data, we're certain to get very inconsistent outcomes, quality data will the normalizing factor because one thing really hasn't changed about computing since the Dawn of time. Back when I was taking computer classes at Georgia tech here in Atlanta, and that's what we used to refer to as garbage in garbage out. In other words, you'll never get quality data-driven insights from a poor data set. This is especially important today for machine learning and AI, you can build the most amazing models and algorithms, but none of it will matter if the underlying data isn't rock solid as AI is increasingly used in every business app, you must build a solid data foundation mic. Let's >>Talk about hybrid. Every CXO that I talked to, they're trying to get hybrid, right? Whether it's hybrid work hybrid events, which is our business hybrid cloud, how are you thinking about the hybrid? Everything, what's your point of view with >>All those descriptions of hybrid? Everything there, one item you might not have quite hit on Dave and that's hybrid data. >>Oh yeah, you're right. Mick. I did miss that. What, what do you mean by hybrid data? Well, >>David in cloud era, we think hybrid data is all about the juxtaposition of two things, freedom and security. Now every business wants to be more agile. They want the freedom to work with their data, wherever it happens to work best for them, whether that's on premises in a private cloud and public cloud, or perhaps even in a new open data exchange. Now this matters to businesses because not all data applications are created equal. Some apps are best suited to be run in the cloud because of their transitory nature. Others may be more economical if they're running a private cloud, but either way security, regulatory compliance and increasingly data sovereignty are playing a bigger and more important role in every industry. If you don't believe me, just watch her read a recent news story. Data breaches are at an all time high. And the ethics of AI applications are being called into question every day and understanding the lineage of machine learning algorithms is now paramount for every business. So how in the heck do you get both the freedom and security that you're looking for? Well, the answer is actually pretty straightforward. The key is developing a hybrid data strategy. And what do you know Dave? That's the business cloud era? Is it on a serious note from cloud era's perspective? Adopting a hybrid data strategy is central to every business's digital transformation. It will enable rapid adoption of new technologies and optimize economic models while ensuring the security and privacy of every bit of data. What can >>Make, I'm glad you brought in that notion of hybrid data, because when you think about things, especially remote work, it really changes a lot of the assumptions. You talked about security, the data flows are going to change. You've got the economics, the physics, the local laws come into play. So what about the rest of hybrid? Yeah, >>It's a great question, Dave and certainly cloud era itself as a business and all of our customers are feeling this in a big way. We now have the overwhelming majority of our workforce working from home. And in other words, we've got a much larger surface area from a security perspective to keep in mind the rate and pace of data, just generating a report that might've happened very quickly and rapidly on the office. Uh, ether net may not be happening quite so fast in somebody's rural home in, uh, in, in the middle of Nebraska somewhere. Right? So it doesn't really matter whether you're talking about the speed of business or securing data, any way you look at it. Uh, hybrid I think is going to play a more important role in how work is conducted and what percentage of people are working in the office and are not, I know our plans, Dave, uh, involve us kind of slowly coming back to work, begin in this fall. And we're looking forward to being able to shake hands and see one another again for the first time in many cases for more than a year and a half, but, uh, yes, hybrid work, uh, and hybrid data are playing an increasingly important role for every kind of business. >>Thanks for that. I wonder if we could talk about industry transformation for a moment because it's a major theme of course, of this event. So, and the case. Here's how I think about it. It makes, I mean, some industries have transformed. You think about retail, for example, it's pretty clear, although although every physical retail brand I know has, you know, not only peaked up its online presence, but they also have an Amazon war room strategy because they're trying to take greater advantage of that physical presence, uh, and ended up reverse. We see Amazon building out physical assets so that there's more hybrid going on. But when you look at healthcare, for example, it's just starting, you know, with such highly regulated industry. It seems that there's some hurdles there. Financial services is always been data savvy, but you're seeing the emergence of FinTech and some other challenges there in terms of control, mint control of payment systems in manufacturing, you know, the pandemic highlighted America's reliance on China as a manufacturing partner and, and supply chain. Uh it's so my point is it seems that different industries they're in different stages of transformation, but two things look really clear. One, you've got to put data at the core of the business model that's compulsory. It seems like embedding AI into the applications, the data, the business process that's going to become increasingly important. So how do you see that? >>Wow, there's a lot packed into that question there, Dave, but, uh, yeah, we, we, uh, you know, at Cloudera I happened to be leading our own digital transformation as a technology company and what I would, what I would tell you there that's been arresting for us is the shift from being largely a subscription-based, uh, model to a consumption-based model requires a completely different level of instrumentation and our products and data collection that takes place in real, both for billing, for our, uh, for our customers. And to be able to check on the health and wellness, if you will, of their cloud era implementations. But it's clearly not just impacting the technology industry. You mentioned healthcare and we've been helping a number of different organizations in the life sciences realm, either speed, the rate and pace of getting vaccines, uh, to market, uh, or we've been assisting with testing process. >>That's taken place because you can imagine the quantity of data that's been generated as we've tried to study the efficacy of these vaccines on millions of people and try to ensure that they were going to deliver great outcomes and, and healthy and safe outcomes for everyone. And cloud era has been underneath a great deal of that type of work and the financial services industry you pointed out. Uh, we continue to be central to the large banks, meeting their compliance and regulatory requirements around the globe. And in many parts of the world, those are becoming more stringent than ever. And Cloudera solutions are really helping those kinds of organizations get through those difficult challenges. You, you also happened to mention, uh, you know, public sector and in public sector. We're also playing a key role in working with government entities around the world and applying AI to some of the most challenging missions that those organizations face. >>Um, and while I've made the kind of pivot between the industry conversation and the AI conversation, what I'll share with you about AI, I touched upon a little bit earlier. You can't build great AI, can't grow, build great ML apps, unless you've got a strong data foundation underneath is back to that garbage in garbage out comment that I made previously. And so in order to do that, you've got to have a great hybrid dated management platform at your disposal to ensure that your data is clean and organized and up to date. Uh, just as importantly from that, that's kind of the freedom side of things on the security side of things. You've got to ensure that you can see who just touched, not just the data itself, Dave, but actually the machine learning models and organizations around the globe are now being challenged. It's kind of on the topic of the ethics of AI to produce model lineage. >>In addition to data lineage. In other words, who's had access to the machine learning models when and where, and at what time and what decisions were made perhaps by the humans, perhaps by the machines that may have led to a particular outcome. So every kind of business that is deploying AI applications should be thinking long and hard about whether or not they can track the full lineage of those machine learning models just as they can track the lineage of data. So lots going on there across industries, lots going on as those various industries think about how AI can be applied to their businesses. Pretty >>Interesting concepts. You bring it into the discussion, the hybrid data, uh, sort of new, I think, new to a lot of people. And th this idea of model lineage is a great point because people want to talk about AI, ethics, transparency of AI. When you start putting those models into, into machines to do real time inferencing at the edge, it starts to get really complicated. I wonder if we could talk about you still on that theme of industry transformation? I felt like coming into the pandemic pre pandemic, there was just a lot of complacency. Yeah. Digital transformation and a lot of buzz words. And then we had this forced March to digital, um, and it's, but, but people are now being more planful, but there's still a lot of sort of POC limbo going on. How do you see that? Can you help accelerate that and get people out of that state? It definitely >>Is a lot of a POC limbo or a, I think some of us internally have referred to as POC purgatory, just getting stuck in that phase, not being able to get from point a to point B in digital transformation and, um, you know, for every industry transformation, uh, change in general is difficult and it takes time and money and thoughtfulness, but like with all things, what we found is small wins work best and done quickly. So trying to get to quick, easy successes where you can identify a clear goal and a clear objective and then accomplish it in rapid fashion is sort of the way to build your way towards those larger transformative efforts set. Another way, Dave, it's not wise to try to boil the ocean with your digital transformation efforts as it relates to the underlying technology here. And to bring it home a little bit more practically, I guess I would say at cloud era, we tend to recommend that companies begin to adopt cloud infrastructure, for example, containerization. >>And they begin to deploy that on-prem and then they start to look at how they may move those containerized workloads into the public cloud. That'll give them an opportunity to work with the data and the underlying applications themselves, uh, right close to home in place. They can kind of experiment a little bit more safely and economically, and then determine which workloads are best suited for the public cloud and which ones should remain on prem. That's a way in which a hybrid data strategy can help get a digital transformation accomplish, but kind of starting small and then drawing fast from there on customer's journey to the we'll make we've >>Covered a lot of ground. Uh, last question. Uh, w what, what do you want people to leave this event, the session with, and thinking about sort of the next era of data that we're entering? >>Well, it's a great question, but, uh, you know, I think it could be summed up in, uh, in two words. I want them to think about a hybrid data, uh, strategy. So, uh, you know, really hybrid data is a concept that we're bringing forward on this show really for the, for the first time, arguably, and we really do think that it enables customers to experience what we refer to Dave as the power of, and that is freedom, uh, and security, and in a world where we're all still trying to decide whether each day when we walk out each building, we walk into, uh, whether we're free to come in and out with a mask without a mask, that sort of thing, we all want freedom, but we also also want to be safe and feel safe, uh, for ourselves and for others. And the same is true of organizations. It strategies. They want the freedom to choose, to run workloads and applications and the best and most economical place possible. But they also want to do that with certainty, that they're going to be able to deploy those applications in a safe and secure way that meets the regulatory requirements of their particular industry. So hybrid data we think is key to accomplishing both freedom and security for your data and for your business as a whole, >>Nick, thanks so much great conversation and really appreciate the insights that you're bringing to this event into the industry. Really thank you for your time. >>You bet Dave pleasure being with you. Okay. >>We want to pick up on a couple of themes that Mick discussed, you know, supercharging your business with AI, for example, and this notion of getting hybrid, right? So right now we're going to turn the program over to Rob Bearden, the CEO of Cloudera and Manny veer, DAS. Who's the head of enterprise computing at Nvidia. And before I hand it off to Robin, I just want to say for those of you who follow me at the cube, we've extensively covered the transformation of the semiconductor industry. We are entering an entirely new era of computing in the enterprise, and it's being driven by the emergence of data, intensive applications and workloads no longer will conventional methods of processing data suffice to handle this work. Rather, we need new thinking around architectures and ecosystems. And one of the keys to success in this new era is collaboration between software companies like Cloudera and semiconductor designers like Nvidia. So let's learn more about this collaboration and what it means to your data business. Rob, thanks, >>Mick and Dave, that was a great conversation on how speed and agility is everything in a hyper competitive hybrid world. You touched on AI as essential to a data first strategy and accelerating the path to value and hybrid environments. And I want to drill down on this aspect today. Every business is facing accelerating everything from face-to-face meetings to buying groceries has gone digital. As a result, businesses are generating more data than ever. There are more digital transactions to track and monitor. Now, every engagement with coworkers, customers and partners is virtual from website metrics to customer service records, and even onsite sensors. Enterprises are accumulating tremendous amounts of data and unlocking insights from it is key to our enterprises success. And with data flooding every enterprise, what should the businesses do? A cloud era? We believe this onslaught of data offers an opportunity to make better business decisions faster. >>And we want to make that easier for everyone, whether it's fraud, detection, demand, forecasting, preventative maintenance, or customer churn, whether the goal is to save money or produce income every day that companies don't gain deep insight from their data is money they've lost. And the reason we're talking about speed and why speed is everything in a hybrid world and in a hyper competitive climate, is that the faster we get insights from all of our data, the faster we grow and the more competitive we are. So those faster insights are also combined with the scalability and cost benefit they cloud provides and with security and edge to AI data intimacy. That's why the partnership between cloud air and Nvidia together means so much. And it starts with the shared vision making data-driven, decision-making a reality for every business and our customers will now be able to leverage virtually unlimited quantities of varieties, of data, to power, an order of magnitude faster decision-making and together we turbo charge the enterprise data cloud to enable our customers to work faster and better, and to make integration of AI approaches a reality for companies of all sizes in the cloud. >>We're joined today by NVIDIA's Mandy veer dos, and to talk more about how our technologies will deliver the speed companies need for innovation in our hyper competitive environment. Okay, man, you're veer. Thank you for joining us over the unit. >>Thank you, Rob, for having me. It's a pleasure to be here on behalf of Nvidia. We are so excited about this partnership with Cloudera. Uh, you know, when, when, uh, when Nvidia started many years ago, we started as a chip company focused on graphics, but as you know, over the last decade, we've really become a full stack accelerated computing company where we've been using the power of GPU hardware and software to accelerate a variety of workloads, uh, AI being a prime example. And when we think about Cloudera, uh, and your company, a great company, there's three things we see Rob. Uh, the first one is that for the companies that will already transforming themselves by the use of data, Cloudera has been a trusted partner for them. The second thing seen is that when it comes to using your data, you want to use it in a variety of ways with a powerful platform, which of course you have built over time. >>And finally, as we've heard already, you believe in the power of hybrid, that data exists in different places and the compute needs to follow the data. Now, if you think about in various mission, going forward to democratize accelerated computing for all companies, our mission actually aligns very well with exactly those three things. Firstly, you know, we've really worked with a variety of companies today who have been the early adopters, uh, using the power acceleration by changing the technology in their stacks. But more and more, we see the opportunity of meeting customers, where they are with tools that they're familiar with with partners that they trust. And of course, Cloudera being a great example of that. Uh, the second, uh, part of NVIDIA's mission is we focused a lot in the beginning on deep learning where the power of GPU is really shown through, but as we've gone forward, we found that GPU's can accelerate a variety of different workloads from machine learning to inference. >>And so again, the power of your platform, uh, is very appealing. And finally, we know that AI is all about data, more and more data. We believe very strongly in the idea that customers put their data, where they need to put it. And the compute, the AI compute the machine learning compute needs to meet the customer where their data is. And so that matches really well with your philosophy, right? And Rob, that's why we were so excited to do this partnership with you. It's come to fruition. We have a great combined stack now for the customer and we already see people using it. I think the IRS is a fantastic example where literally they took the workflow. They had, they took the servers, they had, they added GPS into those servers. They did not change anything. And they got an eight times performance improvement for their fraud detection workflows, right? And that's the kind of success we're looking forward to with all customers. So the team has actually put together a great video to show us what the IRS is doing with this technology. Let's take a look. >>My name's Joanne salty. I'm the branch chief of the technical branch and RAs. It's actually the research division research and statistical division of the IRS. Basically the mission that RAs has is we do statistical and research on all things related to taxes, compliance issues, uh, fraud issues, you know, anything that you can think of. Basically we do research on that. We're running into issues now that we have a lot of ideas to actually do data mining on our big troves of data, but we don't necessarily have the infrastructure or horsepower to do it. So it's our biggest challenge is definitely the, the infrastructure to support all the ideas that the subject matter experts are coming up with in terms of all the algorithms they would like to create. And the diving deeper within the algorithm space, the actual training of those Agra algorithms, the of parameters each of those algorithms have. >>So that's, that's really been our challenge. Now the expectation was that with Nvidia in cloud, there is help. And with the cluster, we actually build out the test this on the actual fraud, a fraud detection algorithm on our expectation was we were definitely going to see some speed up in prom, computational processing times. And just to give you context, the size of the data set that we were, uh, the SMI was actually working, um, the algorithm against Liz around four terabytes. If I recall correctly, we'd had a 22 to 48 times speed up after we started tweaking the original algorithm. My expectations, quite honestly, in that sphere, in terms of the timeframe to get results, was it that you guys actually exceeded them? It was really, really quick. Uh, the definite now term short term what's next is going to be the subject matter expert is actually going to take our algorithm run with that. >>So that's definitely the now term thing we want to do going down, go looking forward, maybe out a couple of months, we're also looking at curing some, a 100 cards to actually test those out. As you guys can guess our datasets are just getting bigger and bigger and bigger, and it demands, um, to actually do something when we get more value added out of those data sets is just putting more and more demands on our infrastructure. So, you know, with the pilot, now we have an idea with the infrastructure, the infrastructure we need going forward. And then also just our in terms of thinking of the algorithms and how we can approach these problems to actually code out solutions to them. Now we're kind of like the shackles are off and we can just run them, you know, come onto our art's desire, wherever imagination takes our skis to actually develop solutions, know how the platforms to run them on just kind of the close out. >>I rarely would be very missed. I've worked with a lot of, you know, companies through the year and most of them been spectacular. And, uh, you guys are definitely in that category. The, the whole partnership, as I said, a little bit early, it was really, really well, very responsive. I would be remiss if I didn't. Thank you guys. So thank you for the opportunity to, and fantastic. And I'd have to also, I want to thank my guys. My, uh, my staff, David worked on this Richie worked on this Lex and Tony just, they did a fantastic job and I want to publicly thank him for all the work they did with you guys and Chev, obviously also. Who's fantastic. So thank you everyone. >>Okay. That's a real great example of speed and action. Now let's get into some follow up questions guys, if I may, Rob, can you talk about the specific nature of the relationship between Cloudera and Nvidia? Is it primarily go to market or you do an engineering work? What's the story there? >>It's really both. It's both go to market and engineering and engineering focus is to optimize and take advantage of invidious platform to drive better price performance, lower cost, faster speeds, and better support for today's emerging data intensive applications. So it's really both >>Great. Thank you. Many of Eric, maybe you could talk a little bit more about why can't we just existing general purpose platforms that are, that are running all this ERP and CRM and HCM and you know, all the, all the Microsoft apps that are out there. What, what do Nvidia and cloud era bring to the table that goes beyond the conventional systems that we've known for many years? >>Yeah. I think Dave, as we've talked about the asset that the customer has is really the data, right? And the same data can be utilized in many different ways. Some machine learning, some AI, some traditional data analytics. So the first step here was really to take a general platform for data processing, Cloudera data platform, and integrate with that. Now Nvidia has a software stack called rapids, which has all of the primitives that make different kinds of data processing go fast on GPU's. And so the integration here has really been taking rapids and integrating it into a Cloudera data platform. So that regardless of the technique, the customer's using to get insight from that data, the acceleration will apply in all cases. And that's why it was important to start with a platform like Cloudera rather than a specific application. >>So I think this is really important because if you think about, you know, the software defined data center brought in, you know, some great efficiencies, but at the same time, a lot of the compute power is now going toward doing things like networking and storage and security offloads. So the good news, the reason this is important is because when you think about these data intensive workloads, we can now put more processing power to work for those, you know, AI intensive, uh, things. And so that's what I want to talk about a little bit, maybe a question for both of you, maybe Rob, you could start, you think about the AI that's done today in the enterprise. A lot of it is modeling in the cloud, but when we look at a lot of the exciting use cases, bringing real-time systems together, transaction systems and analytics systems and real time, AI inference, at least even at the edge, huge potential for business value and a consumer, you're seeing a lot of applications with AI biometrics and voice recognition and autonomous vehicles and the like, and so you're putting AI into these data intensive apps within the enterprise. >>The potential there is enormous. So what can we learn from sort of where we've come from, maybe these consumer examples and Rob, how are you thinking about enterprise AI in the coming years? >>Yeah, you're right. The opportunity is huge here, but you know, 90% of the cost of AI applications is the inference. And it's been a blocker in terms of adoption because it's just been too expensive and difficult from a performance standpoint and new platforms like these being developed by cloud air and Nvidia will dramatically lower the cost, uh, of enabling this type of workload to be done. Um, and what we're going to see the most improvements will be in the speed and accuracy for existing enterprise AI apps like fraud detection, recommendation, engine chain management, drug province, and increasingly the consumer led technologies will be bleeding into the enterprise in the form of autonomous factory operations. An example of that would be robots that AR VR and manufacturing. So driving quality, better quality in the power grid management, automated retail IOT, you know, the intelligent call centers, all of these will be powered by AI, but really the list of potential use cases now are going to be virtually endless. >>I mean, this is like your wheelhouse. Maybe you could add something to that. >>Yeah. I mean, I agree with Rob. I mean he listed some really good use cases. You know, the way we see this at Nvidia, this journey is in three phases or three steps, right? The first phase was for the early adopters. You know, the builders who assembled, uh, use cases, particular use cases like a chat bot, uh, uh, from the ground up with the hardware and the software almost like going to your local hardware store and buying piece parts and constructing a table yourself right now. I think we are in the first phase of the democratization, uh, for example, the work we did with Cloudera, which is, uh, for a broader base of customers, still building for a particular use case, but starting from a much higher baseline. So think about, for example, going to Ikea now and buying a table in a box, right. >>And you still come home and assemble it, but all the parts are there. The instructions are there, there's a recipe you just follow and it's easy to do, right? So that's sort of the phase we're in now. And then going forward, the opportunity we really look forward to for the democratization, you talked about applications like CRM, et cetera. I think the next wave of democratization is when customers just adopt and deploy the next version of an application they already have. And what's happening is that under the covers, the application is infused by AI and it's become more intelligent because of AI and the customer just thinks they went to the store and bought, bought a table and it showed up and somebody placed it in the right spot. Right. And they didn't really have to learn, uh, how to do AI. So these are the phases. And I think they're very excited to be going there. Yeah. You know, >>Rob, the great thing about for, for your customers is they don't have to build out the AI. They can, they can buy it. And, and just in thinking about this, it seems like there are a lot of really great and even sometimes narrow use cases. So I want to ask you, you know, staying with AI for a minute, one of the frustrations and Mick and I talked about this, the guy go problem that we've all studied in college, uh, you know, garbage in, garbage out. Uh, but, but the frustrations that users have had is really getting fast access to quality data that they can use to drive business results. So do you see, and how do you see AI maybe changing the game in that regard, Rob over the next several years? >>So yeah, the combination of massive amounts of data that have been gathered across the enterprise in the past 10 years with an open API APIs are dramatically lowering the processing costs that perform at much greater speed and efficiency, you know, and that's allowing us as an industry to democratize the data access while at the same time, delivering the federated governance and security models and hybrid technologies are playing a key role in making this a reality and enabling data access to be hybridized, meaning access and treated in a substantially similar way, your respect to the physical location of where that data actually resides. >>That's great. That is really the value layer that you guys are building out on top of that, all this great infrastructure that the hyperscalers have have given us, I mean, a hundred billion dollars a year that you can build value on top of, for your customers. Last question, and maybe Rob, you could, you can go first and then manufacture. You could bring us home. Where do you guys want to see the relationship go between cloud era and Nvidia? In other words, how should we, as outside observers be, be thinking about and measuring your project specifically and in the industry's progress generally? >>Yeah, I think we're very aligned on this and for cloud era, it's all about helping companies move forward, leverage every bit of their data and all the places that it may, uh, be hosted and partnering with our customers, working closely with our technology ecosystem of partners means innovation in every industry and that's inspiring for us. And that's what keeps us moving forward. >>Yeah. And I agree with Robin and for us at Nvidia, you know, we, this partnership started, uh, with data analytics, um, as you know, a spark is a very powerful technology for data analytics, uh, people who use spark rely on Cloudera for that. And the first thing we did together was to really accelerate spark in a seamless manner, but we're accelerating machine learning. We accelerating artificial intelligence together. And I think for Nvidia it's about democratization. We've seen what machine learning and AI have done for the early adopters and help them make their businesses, their products, their customer experience better. And we'd like every company to have the same opportunity. >>Okay. Now we're going to dig into the data landscape and cloud of course. And talk a little bit more about that with drew Allen. He's a managing director at Accenture drew. Welcome. Great to see you. Thank you. So let's talk a little bit about, you know, you've been in this game for a number of years. Uh, you've got particular expertise in, in data and finance and insurance. I mean, you know, you think about it within the data and analytics world, even our language is changing. You know, we don't say talk about big data so much anymore. We talk more about digital, you know, or, or, or data driven when you think about sort of where we've come from and where we're going. What are the puts and takes that you have with regard to what's going on in the business today? >>Well, thanks for having me. Um, you know, I think some of the trends we're seeing in terms of challenges and puts some takes are that a lot of companies are already on this digital journey. Um, they focused on customer experience is kind of table stakes. Everyone wants to focus on that and kind of digitizing their channels. But a lot of them are seeing that, you know, a lot of them don't even own their, their channels necessarily. So like we're working with a big cruise line, right. And yes, they've invested in digitizing what they own, but a lot of the channels that they sell through, they don't even own, right. It's the travel agencies or third party, real sellers. So having the data to know where, you know, where those agencies are, that that's something that they've discovered. And so there's a lot of big focus on not just digitizing, but also really understanding your customers and going across products because a lot of the data has built, been built up in individual channels and in digital products. >>And so bringing that data together is something that customers that have really figured out in the last few years is a big differentiator. And what we're seeing too, is that a big trend that the data rich are getting richer. So companies that have really invested in data, um, are having, uh, an outside market share and outside earnings per share and outside revenue growth. And it's really being a big differentiator. And I think for companies just getting started in this, the thing to think about is one of the missteps is to not try to capture all the data at once. The average company has, you know, 10,000, 20,000 data elements individually, when you want to start out, you know, 500, 300 critical data elements, about 5% of the data of a company drives 90% of the business value. So focusing on those key critical data elements is really what you need to govern first and really invest in first. And so that's something we, we tell companies at the beginning of their data strategy is first focus on those critical data elements, really get a handle on governing that data, organizing that data and building data products around >>That day. You can't boil the ocean. Right. And so, and I, I feel like pre pandemic, there was a lot of complacency. Oh yeah, we'll get to that. You know, not on my watch, I'll be retired before that, you know, is it becomes a minute. And then of course the pandemic was, I call it sometimes a forced March to digital. So in many respects, it wasn't planned. It just ha you know, you had to do it. And so now I feel like people are stepping back and saying, okay, let's now really rethink this and do it right. But is there, is there a sense of urgency, do you think? Absolutely. >>I think with COVID, you know, we were working with, um, a retailer where they had 12,000 stores across the U S and they had didn't have the insights where they could drill down and understand, you know, with the riots and with COVID was the store operational, you know, with the supply chain of the, having multiple distributors, what did they have in stock? So there are millions of data points that you need to drill down at the cell level, at the store level to really understand how's my business performing. And we like to think about it for like a CEO and his leadership team of it, like, think of it as a digital cockpit, right? You think about a pilot, they have a cockpit with all these dials and, um, dashboards, essentially understanding the performance of their business. And they should be able to drill down and understand for each individual, you know, unit of their work, how are they performing? That's really what we want to see for businesses. Can they get down to that individual performance to really understand how their business >>Is performing good, the ability to connect those dots and traverse those data points and not have to go in and come back out and go into a new system and come back out. And that's really been a lot of the frustration. W where does machine intelligence and AI fit in? Is that sort of a dot connector, if you will, and an enabler, I mean, we saw, you know, decades of the, the AI winter, and then, you know, there's been a lot of talk about it, but it feels like with the amount of data that we've collected over the last decade and the, the, the low costs of processing that data now, it feels like it's, it's real. Where do you see AI fitting? Yeah, >>I mean, I think there's been a lot of innovation in the last 10 years with, um, the low cost of storage and computing and these algorithms in non-linear, um, you know, knowledge graphs, and, um, um, a whole bunch of opportunities in cloud where what I think the, the big opportunity is, you know, you can apply AI in areas where a human just couldn't have the scale to do that alone. So back to the example of a cruise lines, you know, you may have a ship being built that has 4,000 cabins on the single cruise line, and it's going to multiple deaths that destinations over its 30 year life cycle. Each one of those cabins is being priced individually for each individual destination. It's physically impossible for a human to calculate the dynamic pricing across all those destinations. You need a machine to actually do that pricing. And so really what a machine is leveraging is all that data to really calculate and assist the human, essentially with all these opportunities where you wouldn't have a human being able to scale up to that amount of data >>Alone. You know, it's interesting. One of the things we talked to Nicolson about earlier was just the everybody's algorithms are out of whack. You know, you look at the airline pricing, you look at hotels it's as a consumer, you would be able to kind of game the system and predict that they can't even predict these days. And I feel as though that the data and AI are actually going to bring us back into some kind of normalcy and predictability, uh, what do you see in that regard? Yeah, I think it's, >>I mean, we're definitely not at a point where, when I talked to, you know, the top AI engineers and data scientists, we're not at a point where we have what they call broad AI, right? You can get machines to solve general knowledge problems, where they can solve one problem and then a distinctly different problem, right? That's still many years away, but narrow why AI, there's still tons of use cases out there that can really drive tons of business performance challenges, tons of accuracy challenges. So for example, in the insurance industry, commercial lines, where I work a lot of the time, the biggest leakage of loss experience in pricing for commercial insurers is, um, people will go in as an agent and they'll select an industry to say, you know what, I'm a restaurant business. Um, I'll select this industry code to quote out a policy, but there's, let's say, you know, 12 dozen permutations, you could be an outdoor restaurant. >>You could be a bar, you could be a caterer and all of that leads to different loss experience. So what this does is they built a machine learning algorithm. We've helped them do this, that actually at the time that they're putting in their name and address, it's crawling across the web and predicting in real time, you know, is this a address actually, you know, a business that's a restaurant with indoor dining, does it have a bar? Is it outdoor dining? And it's that that's able to accurately more price the policy and reduce the loss experience. So there's a lot of that you can do even with narrow AI that can really drive top line of business results. >>Yeah. I liked that term, narrow AI, because getting things done is important. Let's talk about cloud a little bit because people talk about cloud first public cloud first doesn't necessarily mean public cloud only, of course. So where do you see things like what's the right operating model, the right regime hybrid cloud. We talked earlier about hybrid data help us squint through the cloud landscape. Yeah. I mean, I think for most right, most >>Fortune 500 companies, they can't just snap their fingers and say, let's move all of our data centers to the cloud. They've got to move, you know, gradually. And it's usually a journey that's taking more than two to three plus years, even more than that in some cases. So they're have, they have to move their data, uh, incrementally to the cloud. And what that means is that, that they have to move to a hybrid perspective where some of their data is on premise and some of it is publicly on the cloud. And so that's the term hybrid cloud essentially. And so what they've had to think about is from an intelligence perspective, the privacy of that data, where is it being moved? Can they reduce the replication of that data? Because ultimately you like, uh, replicating the data from on-premise to the cloud that introduces, you know, errors and data quality issues. So thinking about how do you manage, uh, you know, uh on-premise and, um, public as a transition is something that Accenture thinks, thinks, and helps our clients do quite a bit. And how do you move them in a manner that's well-organized and well thought of? >>Yeah. So I've been a big proponent of sort of line of business lines of business becoming much more involved in, in the data pipeline, if you will, the data process, if you think about our major operational systems, they all have sort of line of business context in them. And then the salespeople, they know the CRM data and, you know, logistics folks there they're very much in tune with ERP, almost feel like for the past decade, the lines of business have been somewhat removed from the, the data team, if you will. And that, that seems to be changing. What are you seeing in terms of the line of line of business being much more involved in sort of end to end ownership, if you will, if I can use that term of, uh, of the data and sort of determining things like helping determine anyway, the data quality and things of that nature. Yeah. I >>Mean, I think this is where thinking about your data operating model and thinking about ideas of a chief data officer and having data on the CEO agenda, that's really important to get the lines of business, to really think about data sharing and reuse, and really getting them to, you know, kind of unlock the data because they do think about their data as a fiefdom data has value, but you've got to really get organizations in their silos to open it up and bring that data together because that's where the value is. You know, data doesn't operate. When you think about a customer, they don't operate in their journey across the business in silo channels. They don't think about, you know, I use only the web and then I use the call center, right? They think about that as just one experience and that data is a single journey. >>So we like to think about data as a product. You know, you should think about a data in the same way. You think about your products as, as products, you know, data as a product, you should have the idea of like every two weeks you have releases to it. You have an operational resiliency to it. So thinking about that, where you can have a very product mindset to delivering your data, I think is very important for the success. And that's where kind of, there's not just the things about critical data elements and having the right platform architecture, but there's a soft stuff as well, like a, a product mindset to data, having the right data, culture, and business adoption and having the right value set mindset for, for data, I think is really >>Important. I think data as a product is a very powerful concept and I think it maybe is uncomfortable to some people sometimes. And I think in the early days of big data, if you will, people thought, okay, data is a product going to sell my data and that's not necessarily what you mean, thinking about products or data that can fuel products that you can then monetize maybe as a product or as a, as, as a service. And I like to think about a new metric in the industry, which is how long does it take me to get from idea I'm a business person. I have an idea for a data product. How long does it take me to get from idea to monetization? And that's going to be something that ultimately as a business person, I'm going to use to determine the success of my data team and my data architecture. Is that kind of thinking starting to really hit the marketplace? Absolutely. >>I mean, I insurers now are working, partnering with, you know, auto manufacturers to monetize, um, driver usage data, you know, on telematics to see, you know, driver behavior on how, you know, how auto manufacturers are using that data. That's very important to insurers, you know, so how an auto manufacturer can monetize that data is very important and also an insurance, you know, cyber insurance, um, are there news new ways we can look at how companies are being attacked with viruses and malware. And is there a way we can somehow monetize that information? So companies that are able to agily, you know, think about how can we collect this data, bring it together, think about it as a product, and then potentially, you know, sell it as a service is something that, um, company, successful companies, you're doing great examples >>Of data products, and it might be revenue generating, or it might be in the case of, you know, cyber, maybe it reduces my expected loss and exactly. Then it drops right to my bottom line. What's the relationship between Accenture and cloud era? Do you, I presume you guys meet at the customer, but maybe you could give us some insight. >>Yeah. So, um, I, I'm in the executive sponsor for, um, the Accenture Cloudera partnership on the Accenture side. Uh, we do quite a lot of business together and, um, you know, Cloudera has been a great partner for us. Um, and they've got a great product in terms of the Cloudera data platform where, you know, what we do is as a big systems integrator for them, we help, um, you know, configure and we have a number of engineers across the world that come in and help in terms of, um, engineer architects and install, uh, cloud errors, data platform, and think about what are some of those, you know, value cases where you can really think about organizing data and bringing it together for all these different types of use cases. And really just as the examples we thought about. So the telematics, you know, um, in order to realize something like that, you're bringing in petabytes and huge scales of data that, you know, you just couldn't bring on a normal, uh, platform. You need to think about cloud. You need to think about speed of, of data and real-time insights and cloud era is the right data platform for that. So, um, >>Having a cloud Cloudera ushered in the modern big data era, we kind of all know that, and it was, which of course early on, it was very services intensive. You guys were right there helping people think through there weren't enough data scientists. We've sort of all, all been through that. And of course in your wheelhouse industries, you know, financial services and insurance, they were some of the early adopters, weren't they? Yeah, absolutely. >>Um, so, you know, an insurance, you've got huge amounts of data with loss history and, um, a lot with IOT. So in insurance, there's a whole thing of like sensorized thing in, uh, you know, taking the physical world and digitizing it. So, um, there's a big thing in insurance where, um, it's not just about, um, pricing out the risk of a loss experience, but actual reducing the loss before it even happens. So it's called risk control or loss control, you know, can we actually put sensors on oil pipelines or on elevators and, you know, reduce, um, you know, accidents before they happen. So we're, you know, working with an insurer to actually, um, listen to elevators as they move up and down and are there signals in just listening to the audio of an elevator over time that says, you know what, this elevator is going to need maintenance, you know, before a critical accident could happen. So there's huge applications, not just in structured data, but in unstructured data like voice and audio and video where a partner like Cloudera has a huge role to play. >>Great example of it. So again, narrow sort of use case for machine intelligence, but, but real value. True. We'll leave it like that. Thanks so much for taking some time. Yes. Thank you so much. Okay. We continue now with the theme of turning ideas into insights. So ultimately you can take action. We heard earlier that public cloud first doesn't mean public cloud only, and a winning strategy comprises data, irrespective of physical location on prem, across multiple clouds at the edge where real time inference is going to drive a lot of incremental value. Data is going to help the world come back to normal. We heard, or at least semi normal as we begin to better understand and forecast demand and supply and balances and economic forces. AI is becoming embedded into every aspect of our business, our people, our processes, and applications. And now we're going to get into some of the foundational principles that support the data and insights centric processes, which are fundamental to digital transformation initiatives. And it's my pleasure to welcome two great guests, Michelle Goetz. Who's a Kuba woman, VP and principal analyst at Forrester, and doing some groundbreaking work in this area. And Cindy, Mikey, who is the vice president of industry solutions and value management at Cloudera. Welcome to both of >>You. Welcome. Thank you. Thanks Dave. >>All right, Michelle, let's get into it. Maybe you could talk about your foundational core principles. You start with data. What are the important aspects of this first principle that are achievable today? >>It's really about democratization. If you can't make your data accessible, um, it's not usable. Nobody's able to understand what's happening in the business and they don't understand, um, what insights can be gained or what are the signals that are occurring that are going to help them with decisions, create stronger value or create deeper relationships, their customers, um, due to their experiences. So it really begins with how do you make data available and bring it to where the consumer of the data is rather than trying to hunt and Peck around within your ecosystem to find what it is that's important. Great. >>Thank you for that. So, Cindy, I wonder in hearing what Michelle just said, what are your thoughts on this? And when you work with customers at Cloudera, does, are there any that stand out that perhaps embody the fundamentals that Michelle just shared? >>Yeah, there's, there's quite a few. And especially as we look across, um, all the industries that we're actually working with customers in, you know, a few that stand out in top of mind for me is one is IQ via and what they're doing with real-world evidence and bringing together data across the entire, um, healthcare and life sciences ecosystems, bringing it together in different shapes and formats, making the ed accessible by both internally, as well as for their, um, the entire extended ecosystem. And then for SIA, who's working to solve some predictive maintenance issues within, there are a European car manufacturer and how do they make sure that they have, you know, efficient and effective processes when it comes to, uh, fixing equipment and so forth. And then also, um, there's, uh, an Indonesian based, um, uh, telecommunications company tech, the smell, um, who's bringing together, um, over the last five years, all their data about their customers and how do they enhance our customer experience? How do they make information accessible, especially in these pandemic and post pandemic times, um, uh, you know, just getting better insights into what customers need and when do they need it? >>Cindy platform is another core principle. How should we be thinking about data platforms in this day and age? I mean, where does, where do things like hybrid fit in? Um, what's cloud era's point >>Of view platforms are truly an enabler, um, and data needs to be accessible in many different fashions. Um, and also what's right for the business. When, you know, I want it in a cost and efficient and effective manner. So, you know, data needs to be, um, data resides everywhere. Data is developed and it's brought together. So you need to be able to balance both real time, you know, our batch historical information. It all depends upon what your analytical workloads are. Um, and what types of analytical methods you're going to use to drive those business insights. So putting and placing data, um, landing it, making it accessible, analyzing it needs to be done in any accessible platform, whether it be, you know, a public cloud doing it on-prem or a hybrid of the two is typically what we're seeing, being the most successful. >>Great. Thank you, Michelle. Let's move on a little bit and talk about practices and practices and processes as the next core principles. Maybe you could provide some insight as to how you think about balancing practices and processes while at the same time managing agility. >>Yeah, it's a really great question because it's pretty complex. When you have to start to connect your data to your business, the first thing to really gravitate towards is what are you trying to do? And what Cindy was describing with those customer examples is that they're all based off of business goals off of very specific use cases that helps kind of set the agenda about what is the data and what are the data domains that are important to really understanding and recognizing what's happening within that business activity and the way that you can affect that either in, you know, near time or real time, or later on, as you're doing your strategic planning, what that's balancing against is also being able to not only see how that business is evolving, but also be able to go back and say, well, can I also measure the outcomes from those processes and using data and using insight? >>Can I also get intelligence about the data to know that it's actually satisfying my objectives to influence my customers in my market? Or is there some sort of data drift or detraction in my, um, analytic capabilities that are allowing me to be effective in those environments, but everything else revolves around that and really thinking succinctly about a strategy that isn't just data aware, what data do I have and how do I use it, but coming in more from that business perspective to then start to be, data-driven recognizing that every activity you do from a business perspective leads to thinking about information that supports that and supports your decisions, and ultimately getting to the point of being insight driven, where you're able to both, uh, describe what you want your business to be with your data, using analytics, to then execute on that fluidly and in real time. And then ultimately bringing that back with linking to business outcomes and doing that in a continuous cycle where you can test and you can learn, you can improve, you can optimize, and you can innovate because you can see your business as it's happening. And you have the right signals and intelligence that allow you to make great decisions. >>I like how you said near time or real time, because it is a spectrum. And you know, one of the spectrum, autonomous vehicles, you've got to make a decision in real time, but, but, but near real-time, or real-time, it's, it's in the eyes of the holder, if you will, it's it might be before you lose the customer before the market changes. So it's really defined on a case by case basis. Um, I wonder Michelle, if you could talk about in working with a number of organizations, I see folks, they sometimes get twisted up and understanding the dependencies that technology generally, and the technologies around data specifically can have on critical business processes. Can you maybe give some guidance as to where customers should start, where, you know, where can we find some of the quick wins and high return, it >>Comes first down to how does your business operate? So you're going to take a look at the business processes and value stream itself. And if you can understand how people and customers, partners, and automation are driving that step by step approach to your business activities, to realize those business outcomes, it's way easier to start thinking about what is the information necessary to see that particular step in the process, and then take the next step of saying what information is necessary to make a decision at that current point in the process, or are you collecting information asking for information that is going to help satisfy a downstream process step or a downstream decision. So constantly making sure that you are mapping out your business processes and activities, aligning your data process to that helps you now rationalize. Do you need that real time near real time, or do you want to start grading greater consistency by bringing all of those signals together, um, in a centralized area to eventually oversee the entire operations and outcomes as they happen? It's the process and the decision points and acting on those decision points for the best outcome that really determines are you going to move in more of a real-time, uh, streaming capacity, or are you going to push back into more of a batch oriented approach? Because it depends on the amount of information and the aggregate of which provides the best insight from that. >>Got it. Let's, let's bring Cindy back into the conversation in your city. We often talk about people process and technology and the roles they play in creating a data strategy. That's that's logical and sound. Can you speak to the broader ecosystem and the importance of creating both internal and external partners within an organization? Yeah. >>And that's, uh, you know, kind of building upon what Michelle was talking about. If you think about datas and I hate to use the phrase almost, but you know, the fuel behind the process, um, and how do you actually become insight-driven? And, you know, you look at the capabilities that you're needing to enable from that business process, that insight process, um, you're extended ecosystem on, on how do I make that happen? You know, partners, um, and, and picking the right partner is important because a partner is one that actually helps under or helps you implement what your decisions are. Um, so, um, looking for a partner that has the capability that believes in being insight-driven and making sure that when you're leveraging data, um, you know, for within process on that, if you need to do it in a time fashion, that they can actually meet those needs of the business, um, and enabling on those, those process activities. So the ecosystem looking at how you, um, look at, you know, your vendors are, and fundamentally they need to be that trusted partner. Um, do they bring those same principles of value of being insight driven? So they have to have those core values themselves in order to help you as a, um, an end of business person enable those capabilities. So, so yeah, I'm >>Cool with fuel, but it's like super fuel when you talk about data, cause it's not scarce, right? You're never going to run out. So Michelle, let's talk about leadership. W w who leads, what does so-called leadership look like in an organization that's insight driven? >>So I think the really interesting thing that is starting to evolve as late is that organizations enterprises are really recognizing that not just that data is an asset and data has value, but exactly what we're talking about here, data really does drive what your business outcomes are going to be data driving into the insight or the raw data itself has the ability to set in motion. What's going to happen in your business processes and your customer experiences. And so, as you kind of think about that, you're now starting to see your CEO, your CMO, um, your CRO coming back and saying, I need better data. I need information. That's representative of what's happening in my business. I need to be better adaptive to what's going on with my customers. And ultimately that means I need to be smarter and have clearer forecasting into what's about ready to come, not just, you know, one month, two months, three months or a year from now, but in a week or tomorrow. >>And so that's, how is having a trickle down effect to then looking at two other types of roles that are elevating from technical capacity to more business capacity, you have your chief data officer that is shaping the exp the experiences, uh, with data and with insight and reconciling, what type of information is necessary with it within the context of answering these questions and creating a future fit organization that is adaptive and resilient to things that are happening. And you also have a chief digital officer who is participating because they're providing the experience and shaping the information and the way that you're going to interact and execute on those business activities, and either running that autonomously or as part of an assistance for your employees and for your customers. So really to go from not just data aware to data driven, but ultimately to be insight driven, you're seeing way more, um, participation, uh, and leadership at that C-suite level. And just underneath, because that's where the subject matter expertise is coming in to know how to create a data strategy that is tightly connected to your business strategy. >>Right. Thank you. Let's wrap. And I've got a question for both of you, maybe Cindy, you could start and then Michelle bring us home. You know, a lot of customers, they want to understand what's achievable. So it's helpful to paint a picture of a, of a maturity model. Uh, you know, I'd love to go there, but I'm not going to get there anytime soon, but I want to take some baby steps. So when you're performing an analysis on, on insight driven organization, city, what do you see as the major characteristics that define the differences between sort of the, the early, you know, beginners, the sort of fat middle, if you will, and then the more advanced, uh, constituents. >>Yeah, I'm going to build upon, you know, what Michelle was talking about as data as an asset. And I think, you know, also being data where, and, you know, trying to actually become, you know, insight driven, um, companies can also have data and they can have data as a liability. And so when you're data aware, sometimes data can still be a liability to your organization. If you're not making business decisions on the most recent and relevant data, um, you know, you're not going to be insight driven. So you've got to move beyond that, that data awareness, where you're looking at data just from an operational reporting, but data's fundamentally driving the decisions that you make. Um, as a business, you're using data in real time. You're, um, you're, you know, leveraging data to actually help you make and drive those decisions. So when we use the term you're, data-driven, you can't just use the term, you know, tongue in cheek. It actually means that I'm using the recent, the relevant and the accuracy of data to actually make the decisions for me, because we're all advancing upon. We're talking about, you know, artificial intelligence and so forth. Being able to do that, if you're just data where I would not be embracing on leveraging artificial intelligence, because that means I probably haven't embedded data into my processes. It's data could very well still be a liability in your organization. So how do you actually make it an asset? Yeah, I think data >>Where it's like cable ready. So, so Michelle, maybe you could, you could, you could, uh, add to what Cindy just said and maybe add as well, any advice that you have around creating and defining a data strategy. >>So every data strategy has a component of being data aware. This is like building the data museum. How do you capture everything that's available to you? How do you maintain that memory of your business? You know, bringing in data from your applications, your partners, third parties, wherever that information is available, you want to ensure that you're capturing and you're managing and you're maintaining it. And this is really where you're starting to think about the fact that it is an asset. It has value, but you may not necessarily know what that value is. Yet. If you move into a category of data driven, what starts to shift and change there is you're starting to classify label, organize the information in context of how you're making decisions and how you do business. It could start from being more, um, proficient from an analytic purpose. You also might start to introduce some early stages of data science in there. >>So you can do some predictions and some data mining to start to weed out some of those signals. And you might have some simple types of algorithms that you're deploying to do a next next best action for example. And that's what data-driven is really about. You're starting to get value out of it. The data itself is starting to make sense in context of your business, but what you haven't done quite yet, which is what insight driven businesses are, is really starting to take away. Um, the gap between when you see it, know it and then get the most value and really exploit what that insight is at the time when it's right. So in the moment we talk about this in terms of perishable insights, data and insights are ephemeral. And we want to ensure that the way that we're managing that and delivering on that data and insights is in time with our decisions and the highest value outcome we're going to have, that that insight can provide us. >>So are we just introducing it as data-driven organizations where we could see, you know, spreadsheets and PowerPoint presentations and lots of mapping to help make sort of longer strategic decisions, or are those insights coming up and being activated in an automated fashion within our business processes that are either assisting those human decisions at the point when they're needed, or an automated decisions for the types of digital experiences and capabilities that we're driving in our organization. So it's going from, I'm a data hoarder. If I'm data aware to I'm interested in what's happening as a data-driven organization and understanding my data. And then lastly being insight driven is really where light between business, data and insight. There is none it's all coming together for the best outcomes, >>Right? So people are acting on perfect or near perfect information or machines or, or, uh, doing so with a high degree of confidence, great advice and insights. And thank you both for sharing your thoughts with our audience today. It's great to have you. Thank you. Thank you. Okay. Now we're going to go into our industry. Deep dives. There are six industry breakouts, financial services, insurance, manufacturing, retail communications, and public sector. Now each breakout is going to cover two distinct use cases for a total of essentially 12 really detailed segments that each of these is going to be available on demand, but you can scan the calendar on the homepage and navigate to your breakout session for choice of choice or for more information, click on the agenda page and take a look to see which session is the best fit for you. And then dive in, join the chat and feel free to ask questions or contribute your knowledge, opinions, and data. Thanks so much for being part of the community and enjoy the rest of the day.