from Orlando Florida it's the cube covering si P sapphire now 2018 brought to you by net app welcome to the cube I'm Lisa Martin with Keith Townsend and we are in Orlando Florida that sa piece a fire now 2018 or in the net out booth really cool sa piece a fire is an enormous event this is like the 25th year they've been doing it and it's been really interesting to learn Keith about sa P and how they have really transformed and one of the things that's critical is their partner ecosystem so we're excited to welcome back to the cube a cube alumni Paul Young who is the director of sa P go to market from Google platform Paul it's nice to see you thanks so what is the current news with Google and sa P so you know I think we're making a major push into this three Marquette I think the the yesterday's announcements are we all still have a four tire buy on a server online but we also brought up capacity all the way up to 20 terabytes so we really can handle pretty much all the customer base at this point so on the one end that's good there is however a lot of other stuff we're doing in the AI space in the joint engineering space with SCP and and a lot of work we're doing in the make it a lot easier for SUV customers to adopt the cloud right and and beyond just what's happening a lot in the market right now which is you know 80 percent of the customers who mu and s pieces in the cloud just do straight lift and shift so there's no for momentum with a it's just ticking the box you're in the cloud we're doing a ton of work in engineering on our own and with SCP right now to make that a much more valuable journey for the customers so yeah I don't wake up in the morning at Google and think what am I going to do today it's you know it's a there's a lot of stuff going on so Paul let's not be shy that we've had you on the cube before and your ear s AP alone and as you look out at the hyper scalars the big cloud providers s ap more or less has a reference architecture for how to do cloud how to do s AP and a hyper scale of cloud but it's not just about that base capability when I when I talk to my phone I love asking Google questions when I look at you know capabilities like AI and tensor flow and machine learning that gets me excited just in general what as you looked out at the Haifa scalers what excited you about Google is specific as you we were s ap work to fall 3 so what's so exciting about Google I did I joke internally I was I was a customer of recipes for seven years I did 20 years of SVP and and yeah and and then woke up one morning and decided to go to Google yeah I do I get this question a lot on the yeah my conversation always is it wasn't based on the cafeteria food there are other things to join me across it seriously cuz in my last roll at scpi I was working with all three the hyper scalars and one of the questions I always got from SCP people is well they're all just the same right or and when you actually work with them you discover the are different and that's no disrespect to anyone but they approach the world differently they all have different business models and and the Google thing that really put me is that the the kind of engineering and the future focus was just tremendous right this other girl could do was was immense and so I said I'll jump forward to the future and then will come back but just if you look at the investment school was making in AI and machine learning all the stuff we were order a Google i/o with the the you know custom-built testable computers that can just do an amazing performance greatness or but it's got to be applied right so so things that partially built with Deloitte it's a deletion of the demonstration for it but just to give an example of where we think the future is we build a model in Nai where we have we basically two invoices and we taught the AI system to do data entry and SCP so that's not an interface we didn't say hey here's an invoice and here's all the fields and we map them all across and here's ETL and here's other things we do right here's our interface mapping we literally said imagine you're an AP processor how do you enter an invoice and you give it detail universities and it spends a lot of time doing really stupid things trying to put addresses in the number field of someone else and then suddenly it works so how to enter an invoice and at that point it knows how to enter an invoice and then what you do is you give it more and more invoices or more and more different structures and it learns how to what an invoice is and it learns how to process that and then suddenly it can do complete data entry right so we build as a model this is sort of thing Google does just to test the limits Deloitte came along and said well that's really cool could we actually take it and run it as a product and so the light now has that in there there are engineering further out where literally you can give it any invoice it will it's not OCR it will look at the invoice and it will work out that is an invoice where all the bits you need are from it it will then work out how you would do data entry on that into an SUV system and it will enter the invoice that's a future world where I know SUVs already launched the I our own doing three-way match interesting we're talking about future won't where your your entire accounts payable Department is a Gmail inbox where they mail you invoices that you've never seen before but we're able to understand what a vendor is grantee as a vendor guarantee is not fraud checked and do the deed to entry completely automatically that is the massive new world right and that's just a tiny little bit of what we can do at Google we have it just pretty also we haven't demo running on the booth where we have tensorflow looking at pure experience pharmaceuticals right right we have we have a demo run on the booth which is a graphic of someone we're actually running at customers where we have a camera reading pharmaceutical boxes as they go past or their pinky perfect curlers in this case but it doesn't just look at the box and say I count one box it reads the text on the box but it reads the text in the box was in noise from STP was supposed to be manufactured and it comes back and says well am I putting double-strength pills and single side boxes is this most legal have I mean sent the correct box is it you know is the packaging correct it also knows what a good box looks like and it learns what a damaged box looks like a nice packaging looks like an it knows how to reject them and again that level of technology where we can monitor all of your production lines and give you guarantee quality and pharmaceuticals anywhere else tell me six months ago anyone even imagined that was possible we're doing that right now all right that that ability to work with SCP because it's all integrated with SCP we're doing Depot of efficient that ability to deliver that sort of capability at the speed we deliver that is world-changing right well you know one of the things that I just kept imagining as you gwangsu the description of invoicing thankee was on a run of the day I'm a small business owner and these things are troublesome like you get in an invoice and I'm thinking you know I got a deal my my wife does the Council of payable accounts receivable I'm like there has to be a way to automate get but then I thought about just those challenges like you get one person says an invoice that the invoices at the bottom right hand corner the the invoice numbers on the bottom right hand corner the the amount due etcetera etc just really silly questions that AI should be AI machine learning should be able to deal with build mederma yesterday on stage says that AI should all been human capability and that's a great example of how a I augments you might take a bit and it doesn't in the AP example it doesn't do a hundred percent correct all the time right it knows what it's wrong in the example of Joey runs your seat comes up and says the dates wrong here I need to fix it so it's taken the it's taken the menial work out of the process and it's lighten people really add value in it but it's also a great example of the cloud at work and what it's supposed to do right again if all you do is take official SCP and drop it in the cloud you're just running in a different place if you get to a world where with Google we we don't expose your data to everybody else but we understand what the world's invoices look like and we have that knowledge and we make the entire world more efficient by having the model know how to work that's a radically better place right and that's that's that's there's just never been that value prop before and that's it's a great big exciting thing to wake up in the morning to think that's what we do right so Lisa in the industry we have this term that data has credit I think it's fairly safe at the this week we can say that processing technology compute has gravity it's we had another guest on it says that they use a process and a technology in solution and one customer works out fine and another customer not the same results it's this complexity is this kind of dish 'part of technology that is just not easy to apply across across companies so the other part really quickly that I want to talk about is you know this isn't just about AI right it's not just about the future I mean one of the key in me I said I'm a long-term HCV customer I work a lot of customers everybody wants to get to the cool bit you know and though I always used to joke internally everybody wants to eat candy they're ready vegetables first right and so we better get you across or you can candida vegetables whichever way you've got to eat both there's some point right so um so look just getting customers into the club becomes one of the challenges it's one of the other areas where we're really applying engineering so I'm three weeks ago we bought della Strada as an example Villa Stratos is an amazing company what well so it does basically it's a plug into VMware you drop it into VMware and it watches your SUV systems running it profiles them and it works out what size capacity you're going to need in the cloud at the point where it's then got enough information it'll basically ping you and say hey I know no I'm not a machine do you want exactly the same performance at lowest price in the cloud or do you want better performance here's two configurations pick the one you want give it your Google user ID and password it will build the security build the application servers and begin a migration for you automatically depending on the timing demand the size the box between 30 minutes and two hours later you will have a running version of your SCP system in the closet never been done before that's been performance the way it works basically it's a bit a little bit of magic but it knows how much what's the minimum amount of data we need to ship across through NSEP it knows where all the data is hidden on the box on the disk then sdb needs to run and it just ships that first and then it fills in the gaps afterwards the repair mechanism so from there on the one hand you could do lists and share and frankly our competitors have been using it to do lift and shift in the past it over some a ton of potential right for a bunch of customers we can replicate their production boxes in real time and give them 30-second RPO RTO in high availability but that done but it's like that I can now take that replicated image and I can run operations on it I can run tests on I can run QE rebuilds were you because of the Google pricing model you don't pay me in advance you pay me in arrears for only the computer time that you use so you are a QA system you've got two days worth of work to rebuild it don't shut down your QA system pay me for two days rebuild and you're done or we have integrated it directly into the SDP upgrade tools so you can pipe across your system to us and we will immediately do a test upgrade for you into s4 HANA or you see us rocky or BW an Hana whatever you want I have a customer in Canada who really jumped from ECC e6 and hazard by 5 to s4 Hana using an earlier version of the tools in 72 hours with a lot of gaps to look at in between we reckon we're gonna crush that down into under 24 hours so under 24 hours we can you can literally click on an SUV server and we will not just bring you to the cloud but we will upgrade you all the way to the latest version and we we have all the components we've done it we're pushing that through right and so what we're doing now is taken the hard work and automating that so we can get to the really cool stuff in the eye side right that's way again this is where all of us for all the hyper scalers hosts you know SV systems we want to do something that's better than that right we want to make it easy to get there but we know that in order to justify what you do we're all have seven your room app 2x or hard on right so we want to make it really easy to do that and we want to make it incredibly easy to add in AI and all the other technologies along the way that's a DES and a pricing model that nobody will be right and that's that's a pretty cool place to be I'm mighty glad to be a good place I could tell by your energy so ease of use everybody wants that you talked about just the example of invoices how they can vary so dramatically and you know whether you're a small business owner to a large enterprise there's so much complexity and and fact that was one of the things that was talked about it was this morning well yeah when how so plot I was even talking about naming conventions and how customers were starting to get confused with all of the different acquisitions SAT has done so a I what Google is doing with AI on sa piece sounds like a huge differentiator so tell us as we wrap up here what makes you know in a nutshell Google different than the other hyper scale that s AP partners with and specifically what excites you about going to market with s AP at the base level your Google's just on a different scale from everybody right we are effectively put 25% of the internet if you look at our own assets we we own dark fiber that's equivalent to about 4% of the entire caballo sorry four times the entire capacity of the Internet right MA so my ability to deliver to those customers at scale and up performance levels just unchallenged in this space so you know it's a Google clearly is excelled in a lot of different areas it's been credibly starting to bring that to SVP and carry through but you're right that the the the value add ultimately isn't just the hey I can I can run you and I can run you better write the value add is so March we announced direct innovation rihana and Google bigquery when you're talking about bigquery right massive datasets that you can know Bridge to Hana if you're a retailer this is one last example I can now join all the ad tech data Google has so I can tell you all the agile currently run in Google once we march was being viewed anonymized in clusters so you can't tell the original consumers but I know that data and directly worded to bigquery and I can join at stp so I can now say you are advertising in this area let's being clicked on but I know you don't have the inventory to actually support the advertising so I want you to move advertising somewhere else right and so I can do that manually rename when I had any I to that the potential is is incredible right we've only just started so ya know next time I want the cube we'll see where we're at but it's a it's a fun place to be speaking the next time gasps have a conference coming up Google next is coming up at the end of July yeah it's we have a lot of announcements through probably the rest of the year right there's a lot of stuff going on as we come to massive scale in the SUV space so yeah anyone who's interested in this stuff especially even if you're just interesting the I stuff Google next is the place to be so sounds like it I'm expecting some big things from that based on what you talked about on how enthusiastic you are about being at Google Paul thanks so much for joining Keith and me back on the cube and we look forward to talking to you again Thanks thank you for watching the cube Lisa Martin with Keith Townsend @s AP Safire 2018 thanks for watching

live from Las Vegas it's the cube covering service now knowledge 2018 brought to you by service now welcome back to the cubes live coverage of service now knowledge 18 we are here in Las Vegas Nevada I'm your host Rebecca Knight along with my co-host Dave allanté we are joined by John Donahoe who is the president and CEO of ServiceNow thanks so much for coming on the cube it's great to be here Rebecca so I want to talk with you a little bit about what you said on the main stage this morning you said this is your first year your anniversary of joining ServiceNow you said when you got here you could barely spell IT but when you reflect back on this year what has been sort of the biggest surprise challenges and surprises about about leading this company well I would say a couple things one I've sort of fallen in love with our customers and the challenges and opportunities they have and what I spoke about this morning this digital transformation thing even a year ago is a bit of a buzzword it's a reality for CEOs for companies and therefore for CIOs and then the second thing that is as I talked about it something very exciting is the role of the CIO the role of IT is transforming before our very eyes out of necessity because technology is here to stay technology's driving strategic change at every company can call it a digital transformation called a tech transformation and CEOs need the most technically savvy leader in the c-suite to help with that and that's often the CIO and so I think that's an enormous ly exciting opportunity for the people that are our traditional customer base and then the last thing I just I'm thrilled about is how many companies are saying that ServiceNow is a strategic platform of choice going forward far beyond just IT and so that's something to roll build upon I was struck yesterday in the Financial Analysts session you shared with us your meeting with the board yeah and you said to them look if you want to clean this thing up flip it whatever that don't hire me I'm here to build a sustainable company during company I think is what you said and the attributes of an enduring companies that are Purpose Driven they both innovate and execute they invest in talent and they have a will to win they got a fight in them a lot of good sports analogies there yeah so okay so you've set that framework where do you see this thing going in the next near term mid term and long term well we've said I think it's really important to set the aspiration of what it is you're shooting toward I've been surprised how many customers have responded well to the statement that we aspire to create a built to last company it starts with the purpose I defined our purpose and that purpose is a long term investment and our employees are already deeply resonating with the purpose and then comes the hard work the hard work of how you bring the purpose to life and our purpose and our product and the work we do with our customers all fit together you talked about automation and in many executives that we talked to kind of run away from that we don't want to talk about automation because it implies we're gonna replace humans you said hey we're at the center of automation we have to take that issue head-on what's the conversation like with the executives and customers that you talk to well the first thing is I have to think yet to look at the data which is what I've spent time doing and two things jump out one if you look at where automation is really gonna have the biggest impact it's not in any given job it's actually the third of all of our jobs that are repetitive administrative redundant right that's so we need to automate the low value-added parts of all of our jobs and then that will free our time up to be due to leverage our more creative capabilities to add more value and so if you look at it both at a micro and macro standpoint where automation is going to impact jobs it's not a given category it's more of a horizontal cut of all jobs and then secondly looking at aggregate job creation I've done a fair amount of work with James mineka the McKinsey Institute is to blow up a suit who's got to think the best objective macro study about job creation and there going to be some jobs they'll be fewer of and other jobs they'll be more of and how do we migrate the skills migration so that people have the skills for the jobs of the future one of which by the ways things like being a ServiceNow administrator you do not have to be a computer science major or an engineer to be a ServiceNow administrator you have to like technology you have to embrace technology but you can do it as a mere mortal and so we're looking at ways of how do we help retrain people to have the skills to create one of the jobs that we're creating through ServiceNow administrators John you talk to a lot of people I think five or six hundred customers know and they'll have since I met you a year ago it ServiceNow headquarters we obviously talked to a lot of people on the cube and no question every CEO the ax talked it was trying to get digital right yep they understand it but there's somewhat of a dissonance and I wonder if you sense it in and I wonder if you could talk about how ServiceNow can help wear this the c-suite gets it and they're driving for that but when you go below the line there's a lot of sometimes complacency not in our industry not in my lifetime I'll be retired by then do you hear a lot of that and how can ServiceNow help increase the urgency well I'd say I take a couple things Dave one is the c-suite gets it by not every c-suites role-modeling what's necessary without the cross-functional leadership the partnership of ITN HR and the business units then what happens by tama goes to three levels down people have functional identities and so people role model are behaving the way they see their leadership team role modeling and so if that if that c suite is embracing technology and understanding technology demands cross-functional engagement to deliver great customer experiences and employee experiences then it makes it a lot easier two three steps down the second thing I think c-suite people need to do is be able to say we take if off the table we said I talked about top-down goals most people are scared of a top-down goal the problem is if there's a not a top-down goal then people can debate if we need to make this change and how but if the CEO the c-suite says we are going to improve the employee experience and I'm setting this goal then it's when you go a level two levels down it's not if no no they said if now our job is how and so I think leadership has to do its role and I think I think the c-suite and leadership's learning how you lead and a technology enabled environment so leadership is the key and and the CEO is really leading a little suite I think the whole the whole C suite set of leaders and partnering and reaching out to one another so we I mean as you said on the main stage in many ways the technology is the easy part but what you're talking about is the hard stuff because this is the real change management and and it's human lead so what are you hearing what are you seeing and do you have any ideas for best practices I mean as you said that the the C suite needs to embrace it yes and then push that down but how do you do it what are some what are some of the things you've seen that work well here's some of the things that we're trying to do to contribute toward that because obviously we're a software platform but one is to do what I did this morning which is be more articulate about what best practice looks like what is best in class so that anyone in any organization can can go to their boss and say oh this is best practice this is best-in-class we need to emulate this and here are the returns we can get if we emulate it so one is just hold out the successes successful examples and illustrate what's required that's why I kept saying over and over this morning employee experience is not just an HR issue employee experience is not just an IT issue you need a powerful team of CIO C HR o other functional leaders and then the second thing I think is getting people on i.t to see themselves a little bit differently we have a CIO track going on upstairs with a hundred top CIOs and the whole day is around driving culture change and CIO is leader and I think good leaders they don't just allow a label to be attached to them they invest in themselves they build their skills they build change management skills communication skills and I think whether it's a CIO or IT if they're going to have the kind of transformative impact they can across the company they need to build their technical expertise along with other skill sets you heard Andrew Wilson talk about that and they need to learn to speak business and not just IT John I want to push on something that I'm discerning from you guys and get your reaction so obviously cloud you guys are born in the cloud cloud is a tailwind for you we've seen this Asif occation of business but we seem to be entering a new era moving from a cloud of remote services to one of us fabric Ubiquiti is fabric of digital services so my question is around innovation you talked about that as one of the key attributes of an enduring company what's the innovation equation going forward yeah it's not Moore's law anymore it's not cloud mobile social Big Data at least it doesn't feel that way anymore is it machine intelligence combined with cloud what do you see I think it gets down actually to what I talked about this morning user experience I think machine learning I think AI is going to be a commodity functionality we're gonna get it from AWS or Azure or Google the cloud infrastructure providers whether it's natural language processing whether it's the kind of machine learning capabilities that's that's gonna be sort of available widely then it's our job as a software platform to build that into our platform so we built machine learning capability into our platform we built chat bot functionality into our platform we built leading-edge mobile capability into our platform and again I'll call that I don't know it's the easy part but that's our job in this equation the hard job then is how you apply that to real-world use cases whether you're applying using real-world datasets specific customer data sets and real-world workflows and use cases so let me give you a small example we bought a machine learning company a year ago called DX continuum great machine learning team great machine learning technology we rebuilt it inside the ServiceNow platform okay and I don't believe a AI is a horizontal platform is I don't you know we didn't call it a name it after a a dead scientist that's out what we're gonna do and I'm not casting judgment on it but it's not a solution looking for a problem we built machine learning into our platform and then so we want to be the first user we want to use it on a specific challenge so the case we used it on our own inbound customer support we have about 800 customer support agents that serve our customers about 11 percent of their time is spent on something we call incident categorization and incident routing sounds kind of grunty terms but when summer calls with a problem we have to be able to identify what that problem is and then route it to the right person to fix the problem so 11% of our peoples time was doing that that's not a fun task so we turned on machine learning and within two weeks the machine was categorizing the issue and routing it more accurately than a human can so now what happens is our customers problems are getting solve faster and the 11% of those resources those customer support resources who are engineers in our case are focused on solving customer problems not doing what felt like an administrative task to them and so I think the actual application of machine learning the actual application in many of these these technologies it's the application that's going to matter not the invention so a lot of what you said makes it makes sense to me because you're saying that your customers are gonna be buying essentially that machine learning capability in relative and applying it in very narrow use cases to solve their business problems rather than trying to build it right and you do see some companies trying to maybe get over out over their skis and over-rotate to try to build some of that stuff that's gonna come from the technology suppliers what yours if we're doing our job the infrastructure providers the software platforms like us we're doing our job we're making it easy another small example will be mobile I talked this morning about companies everywhere need to build mobile experiences and so there one do I need to build a mobile design team a mobile coding team if you're up if you're a bank or utility or an oil and gas company or a retailer or well platforms like ours make building mobile experiences really easy for them so we're trying to build that mobile capability that design capability that Design Thinking the mobile capability into the platform so they can just get out-of-the-box functionality and they don't have to have their own mobile designers they don't have their own mobile engineers they can just be saying how do I want to use mobile inside my company and then there they're taking our mobile platform if you will and and creating mobile applications and mobile experiences that are relevant for them so your brand identity is now making work work better for people yes when you are doing your blue sky thinking about the pain points that employees feel and that job candidates feel because that's their another important part of of companies trying to keep their people happy yes what what are what do you see I mean as you said the next three to five years are going to be this the revolution is going to be in the workplace yes what do you see as sort of the biggest challenges that you want to help solve well let me just take a simple use case that that comes to mind as you mention that let's take from the time you start being recruited for a company through that let's say you get hired and get started so the recruiting process you're sending a resume and you don't know if I got in didn't get in if anyone someone may or may not contact you you may get an interview you got to find out where you're going if you're going did you get called back maybe you get an offer letter it comes you get it all set all kind of I would call an unstructured workflow let's say you get hired then the onboarding process onboarding is a classic unstructured workflow you got to go to this security to get your badge you got to go to facilities to get your desk you got to go to it2 get your laptop or mobile phone you got to get to another part of IT to get your email credentials put on you've got to enter your information into the payroll system you got to reenter your same information and pick a health care provider you got a range of the same information and and and get a in the tini system you got to do all this compliance training painting an accurate ownerís picture this is your first impression of the company you're joining now there is no reason they took my mobile phone away from me so I'm twitching there's no reason why there shouldn't be an app that says a recruit says I want to interview if the company they download the app they submit their resume based on the app we give a response in the app they say oh might my resume was accepted and I they want me to do an interview and they want me to be in Santa Clara next once at 8:00 and here's who I'm going to be meeting with and here's their background in the app then they do the interview let's say they get invited back who they're interviewing with we're inside the app okay let's say then they get an offer well then the app has more permission in the offer comes through the app you can print it or you can read it then onboarding starts onboarding can be a seamless experience it still can connect but you enter your data in once it pre fills all those systems and then in one mobile experience you're picking what's your laptop what's your healthcare system what's the bank you want your payroll in teeny to go into and all the complexity is hidden underneath it that's what we have in the consumer world our lives at home when you buy something on eBay all the complexities hidden when you pay with PayPal all the complexities hidden there's no reason why all the complexity can't be hidden in the recruiting and onboarding process and and so the technology's there to do it but it's managing all the workflows managing all the processes underneath so you can pull that together into a seamless experience and that's the kind of experience it's funny I have four grown kids my daughter she started working I won't say where but a major technology company and she's like dad what's up with this onboarding process why isn't it in a mobile app and the Millennials will start demanding this and so I I just think there's so much opportunity to make our lives at work feel more like our lives at home and you just described the capability that allow you to reach your aspirations of the next great enterprise software company when we think of great enterprise software companies we think of Oracle and si P you're nothing like Oracle and si P in my opinion and then of course you think of Salesforce different you know you're not a an SMB how should we be thinking about the next great enterprise software company so this I think this is a really important question Dave and I'd look at it through the eyes that what I heard from the 500 customers and here's what I heard they're embracing digital transformation they're embracing cloud they're embracing cloud at the infrastructure level figuring out their data center strategy and how much they embrace public cloud and then at the software platform level they're saying we want to have four to six strategic platforms and often it's the born in the cloud platforms often its sales force and workday and service now and maybe office 365 or Google for email or communications maybe if they have a supply chain ASAP and they're saying I want those platforms to work well together so no one platform should be claiming they can do everything each of us needs to figure out what's our role and how do we work with one another and our role ServiceNow I'm proud to say is one of those strategic platforms as I said earlier people see our capabilities as being connective tissues helping to pull those platforms together you know in the onboarding example we pull all the data sets and platforms together by the way we don't slap our brand on top because actually employees want to see their own brands they want to see their own company's brand they don't want to know what the enterprise software brand underneath it is they just wanna have a great experience and so I I don't view it I think the winning enterprise software I see a chance for Salesforce and workday and ServiceNow and Microsoft to all be winners and delivering this future for companies where you are the platform of platforms though correct but that's not and I'm being very careful the way I say it I'm not saying we're the top dog sure I'm saying what we're good at is cross-functional workflow actually it's probably the grunt 'ya stuff all those things and you're the best at it and we're the best at you are and our brand we're not we're not forcing our brand everywhere that we're doing it in service to our customers and so I just want to always be listening to what our customers want that's gonna be our North Star they're gonna guide us it always has been I know you know Fred Letty started that from the beginning and that's what we're gonna continue to do well John it's always a pleasure having you on the cube so thanks so much for coming on our show thank you very much Becky thank you Dave great to be happy John I'm Rebecca night for Dave Allante we will have more from ServiceNow knowledge 18 in just a little bit [Music]

live from Orlando Florida it's the kue covering sapphire now headline sponsored by ASAP Hana cloud the leader in platform-as-a-service with support from console Inc the cloud internet company now here's your host John furrier hey welcome back and we are here live in sapphire now in orlando florida this is the cube silicon angles flagship program we go out to the events and extract the signal noise want to thank our sponsors SI p HANA cloud platform and console inc at consoled cloud our next guest is an eel cebu vp of business development at fred balboni who is the GM of IBM here on the cube together SI p time you book them back of the cube good to see you guys like when is down so microsoft's up on stage ibm's here with SI p this is the old sav no real change of the game in terms of you guys have been multi-vendor very partnering very eco system driven but yet the game is changing very rapidly in this ecosystem of multi partnering with joint solutions i mean even apple your announcement earlier so is this kind of like a bunch of Barney deals as we used to say in the old days or what is the new relationship dynamic because data is the new currency it's the new oil it's the digital capital data is capital data is a digital asset partnerships are critical talk about this dynamic partnerships are critical and I think what we're doing is we are going deeper than we've ever gone with these partnerships with IBM we announced last month we announced the joint ASAP IBM partnership for digital transformation what does this do so what we've been doing traditionally with IBM we've had siloed partnerships with different IBM brands right we had a partnership with a power brand we had a partnership with the cloud team we are a partnership with GBS what we've done now with the digital transformation is bringing it all together so we have a CEO level discussion that's driven this partnership and I think that's really the differentiation so we have moved away from the so-called Barney deals because our customers expect bill talked about it in the keynote today he says when it's a multi partner situation customers expect that you're going to have one voice you're going to be a line you're going to provide value to those customers that's what we're trying to do and that's what this partnership is all right I want to get your thoughts on this I mean I'm Barnum's reference to the character you know I love you you love me kind of like a statement of mission but really not walking the talk so to speak but but I want to get your thoughts because you have a look at the analytics background at IBM when you built that business up there's a conflict in a way but it's also a great thing in the market apps are changing in very workload specific at the edge with its IOT or a mobile or whatever digital app they have to be unique they have to have data they got to be they have to be somewhat siloed but yet the trend is to break down the silos for the customer so how do you guys is it the data that does that because you guys doing a lot of work in this year you want to build great apps and be highly differentiated yet no silos how do you make that ok so it is its first of all it's very exciting and a confronting but also exciting for not only our companies but also for our customers it's all enabled really simply because of a couple of major technology shifts that have happened number one technology shift is the cloud the cloud without question is driving driving all of this in addition to your notion about data readily available data and the algorithms and software that can you know make cognitive sense of that is both driving of this whole change last but not least and I think Hana really enables this you know embodies this is the architectural change so you put those three things together availability of data cloud which means the capital investment required to build the infrastructure is inexpensive and then finally Hana which is the technology platform that rapidly allows you to take using you know a generic term api's and wire them to different sources allow you to dynamically reconfigure businesses now there's one last thing I think is really important here that we don't want to underplay and this is the social phenomena of the consumerization of IT and this has been going on for many many years but we've really seen it accelerate in the last 3 to 4 100 ala dated yeah absolutely and when you see a device like this becomes the system of engagement and oh by the way if you don't like if you don't like dark skies weather app well then go to the weather channel's weather app and if you don't like their weather I've go to one of 40 other weather apps so therefore this consumerization of IT is bombarding our CIOs what's exciting is that cloud cognitive insight a flexible core with great social engagement allows a CIO to really rapidly reconfigure so that's why these partnerships are rising that's very important you just said to about this relationship now about consumerization of IT is a complete game changer on the enterprise software business because now the relationship to the suppliers I'm the CXO or CIO I had a traditional siloed as you use that word earlier relationship with my my vendors one pane of glass like that IT Service Management down here I got the operations I up changed my appt every six months or six years the cadence of interaction was very inside the firewall absolutely so the relationship has changed with the suppliers expand on that because that really hits a whole nother thread I'm the buyer i don't want complexity you don't and what you do want is time to value so combining that with the beautiful user experience that you know thanks to devices like the one that Fred showed you know are an absolute necessity they it's it's understood now it's an expectation that customers have and customers of customers also have so i think that is impacted us in multiple ways what you heard and build scheme out you heard that with our supplier Network you heard our president for ASAP Arriba Alex talk about it he is that the change within that organization itself with our different vendors with the fact that we have to provide choice to our customers i think that is that has changed the way we do business and it's interesting to just I mean this is right now a moment in history as a flashpoint not that's a big of event but it's been seeing this trend happening over the hundreds of cube events that we've been to over the past few years is that now in just today highlights it the Giants of tech are here ASAP IBM or I mean Microsoft Office state's atty Nutella the apple announcement you guys have a similar deal with Apple these are the Giants okay working together now iBM has bluemix you have HANA cloud platform you have on a cloud everyone's got cloud so this kind of highlights that it's not a one cloud world absolutely and so this really kind of changes the game so I got to ask you given all that how do you guys talk to the ecosystem because they're our total transistors going on at capgemini Accenture pwc CSC it's an outside-in dynamic now how is that change for you guys as you guys go to market together in a variety of things in a coop efficient some faces how does that dynamic change with it for the partners that have to implement this stuff so co-op edition is is a reality i think we've asap we've learnt this probably from a partner that does the best which is IBM they probably they practically invented cooperation in the enterprise software space so i think here's how here's the way we look at it right so so we are looking at with with hana with HANA cloud platform we're really morphing into a platform and applications company and and we have the strategy of essentially later thousand apps blue so what are we doing on HANA cloud platform in such a short time so we have two about 2600 plus customers we have I think the more important part is that our ecosystem around HANA cloud platform is 400 + partners so that's an advantage visa V say Oracle for instance which is waves to have an ecosystem they lot of people there too I think I think the DNA of SI p isn't being an open company we've had that for ages so we work closely with Barton's and by the way I used to be at Oracle I was there for seven years and I know the difference its it's stuck Oracle's got a different strategy we've got a very very different very open strategy so I think what we're doing is we coalescing around these key assets right our digital Korres for Hana Hana cloud platform as the key platform for our customers okay so a nice watching out there and looking out over the next year so what execution successes do you put out there that's a to prove that you guys are are open and you guys are doing good deals what success kpi's key indicators would you say look for the following things to happen so number one available availability of AP is I think if you look at the different api's they access to the variety of SI p systems what you did see is that there's a digital core there's all of the different assets we've got in the cloud easy access to those I think customers can look for that right how can they rapidly develop an essay p successfactors extension or how can they extend ASAP arriba very quickly integrating that with the s100 digital core I think that's number one number two is the HCP App Center so we have probably about a thousand plus apps out there and by the way I do need to give a shout out here because we've got three apps that three iOS apps that IBM pour it onto HANA cloud platform in the last six weeks was it Fred six weeks we're talking about you know an incredibly short amount of time that are now highlighted on HANA cloud platform app center Fred talk about IBM right now because this isn't a game finished shift I've noticed more aggressively the three years ago I saw the wave coming at IBM and now remote past two years it's just been constant battering on the beachhead iBM has been donating a ton of IP with open sores everyone's behind blue bluemix has gone from you know a fork of cloud foundry to a now really fast they're moving very very quickly yes sir writing apps you're partnering is this part of the strategy just to kind of keep humbling the Markowitz assets like this is that's open the more open IBM and how is open mean to for you guys today well because I think at the end of the day we got to realize that I mean us to question a couple couple questions ago and I Neal answered it quite well which is customers are going to make the choice customers want to be flexible in their choice so understand I want to first of all shout outs IV to Apple excuse me to sav a shadow tennis AP here which is s ap has always been about partnering an ecosystem and so that's a court that's a core belief of theirs so when you look at what they've technically done here with the HANA cloud platform you know one of the many strategists can put this on a board enjoys well this is what this is what they should be doing but the reality of it is is the reason companies stay with existing service providers the reason companies say with existing technologies is because they've already got it it's what they know how to do and so and what they want to do is very hard so the Hana architecture in the hunting club platform was probably drawn on a board ten years ago the fact that it's real and here now now mace clients the ability to actually make these kind of ships IBM's move to the cloud moving assets to the cloud because we recognize clients are actually going to want to pick and choose and build these things in a dynamic fashion and we want our workloads to be on the IBM cloud every single show I go to down basically feels like a cloud in a data show even amplify which is kind of a commerce show sure it's all about data and the cloud so I we got to get we got to get wrapped up I want to get one final thread in with you guys and that is unpardonable Apple just spent the billion dollars with the uber clone and China so you see their partner strategy they did partner with you guys and now SI p this is a really interesting strategy for Apple to go into the enterprise they don't have to get over their skis and over-rotate on this market that can come in pre existing players and extend out versus trying to just have a strategy of rolling products out so it seems that Apple is partnering creating alliances as their way into the enterprise similar to what they're doing in in China with who were just a random example but which is impressed this week is that the Apple strategy I mean you guys both talk to Apple I mean you guys have both of deals share some color on Apple's partnering and alliances their joint venture not your invention for joint development seems to be very cool so I it's not I I I want you know when I look at what we're doing with that you know we have a goal and our goal is we believe that we can transform the enterprise you know we I BM we IBM and SI p we IBM and our partners including Apple we want to transform enterprise Apple signed on to that because Apple realized that they were changing consumers lives and and then they woke up and they said well actually but many people spend a large part of their waking day at work so if I can change a consumers life I can also change an enterprise employees life and that is the work that we are setting about doing and so therefore the partnership IBM understands enterprise really well SI p was Bill statistic today seventy-three percent of the world's transactions run through an essay peak or so yeah Apple's very obviously very delivered in picking their partners we're thrilled with the mobile first for iOS worked in Swiss great programming language has great legs is so elegant and sweet it's like see but more elegant absolutely I think again when you look at what Apple's mission has been and you look at sa peace mission right we talked about helping companies run better and transforming lives so i think i think the missions actually do intersect here and and I think SI p is a very different company than we were you know 20 years ago so for us now that user experience and product while agent by the way absence proc solid quality absolutely so I think I i think you know we converge on those areas so I would say that it's a it's a very natural farming from Apple's a brilliant strategy because it's interbred and it prizes hard you guys to live that every day it's not easy and we see venture-backed startups try to get into the enterprise and the barriers just go up every day with dev ops and you know integration now is mrs. Ann we could talk about another segment with a break but we haven't gone to the whole what does it mean to integrate that's a whole nother complex world that requires orchestration really really interesting and you just write that over the weekend and a hackathon absolutely and I think now with the tools that we're making available on our cloud platform as part of a platform as a service I think again that's the way where we can get the user interface the experience that apple provides combined with the enterprise solid stuff that we do that's awesome I'll give you guys both the final word on the segment and a bumper sticker what is this show about this year what is s AP sapphire 2016 about what's the the bumper sticker what's the theme I you know what I love builds words today I think it's about empathy it's about making it real for customers I think you'll see you know our demos are joined demos as well both in an essay p IBM Joint Center here as well as in the IBM boat you see real life solutions that are real that customers can touch that they can use so I'd like to go with that predicate real hey listen to me it's a really simple to two simple words digital reinvention every single company in the world is trying to become a digital company I think about my Hilton app when I checked into my hotel yesterday and I opened my door with my iPhone my hotel my room door you know it is every company is endeavoring to become a digital company and what what sapphire is about this year is everyone realizes at the core of every company is that platform that s AP gahanna or ECC platform and every major enterprise that's waking up to that suddenly realizes we've got to do something an essay p nibm our partner here to help thanks guys so much for sharing your insight digital reinvention going on for real here at sapphire this is the cube you're watching the cube live at sapphire now we'll be right back thank you

okay we're back here live at IBM iod this is the cube our flagship program about the advances in there from the noise i'm john furrier the founders look at an angle enjoy my co-host David on to the co-founder Wikibon or go to SiliconANGLE calm for the reference point in tech innovation Kotobuki bun or for free research research analysts they're putting out free content and of course you always come by the Cuban see where we are in the events wouldn't be at Amazon Web Services event with all the events extracted sniffle noise and share that with you our next guest is Tom de Klerk CIO of superior group welcome to the queue thank you Dave you and I'd love to talk about CEOs because you know maybe we get the real scoop on things so first why you here at IBM iod let's get that out of the way to talk about some of the things you doing here and what you're seeing here sure so we something with the company three years we're a staffing organization why I'm here I was actually here last year and we've implemented three major systems in the last three years one was SI p and embrace the ERP system second being IBM connections and the third being IBM cognos and so over the course of the three years you know trying to roll off these projects so I'm here to to learn more about you know the capabilities of cognos and the biggest one for me is that with cognos and SI p SI p when they bought their in iowa city i'm sorry when IBM bought cognos it was 881 they had a report pack specifically for SI p customers so when they went to 10 1 and 10 2 they didn't offer that product so there they just started developing a year ago I sat down with some senior executives if the IBM organization and said you guys are losing an opportunity here customers that have an implementation of SI p and trying to get information out other than using SI piece product business analytics so they over the course of the year have been developing a rapport pack that they can offer the customers so we were part of the beta testing program for IBM and so that's I'm here to actually talk to some other people and understand something listen to you see how they impact on product development that's good well yeah there's there's the continuous improvements even I'm even on the well you look at the report pack now it's still in my mind and I fed this feedback back night there's it's a do list oh absolutely but that's not any type of a rollout of any product you can expect that so tell us a little bit more about superior group you guys your staffing company would yes we're a we're a company that's headquartered in Buffalo New York and we started back in nineteen fifty-seven it's a privately held company we have a total of 400 staff employees and roughly anywhere from seven to nine thousand contract employees so we provide workforce solutions as well as outsourcing and primarily in three areas people process as well as the outsourcing project outsourcing so on the people side it's your traditional recruiting for staff augmentation executive Research recruiting as well as direct placement and then on the process ID we offer managed services program we also offer vendor managed services independent independent contractor compliance and then on the outsourced and we have IT outsourcing HR outsourcing so that's pretty much our companies make up and tell we were talking off-camera about sort of the role the CIO and you'd like to everybody would like to be more strategic if they had time but a lot of the cios especially mid-sized organizations she doesn't don't have as many you know people to to be able to sit back and do some of those more strategic things but so a lot of CIOs talk about transforming their organization you've kind of transformed it with three huge projects in the past what would you say this was two years yes sir yeah the solicitors perspective SI p was started in july of 2010 and then started last year with the IBM connections and the Cognos reporting okay so but still over sure yeah let me that's that's some major disruptions to talk about how you manage that so it was extremely challenging especially given the number of resources that we have were a mid-sized company and when I came from a manufacturing organization spent 15 years working for manufacture Murray so going from that vertical into professional services vertical I was used to used to having a lot of IT resources to be able to support an organization so you highly leveraged the contractors and consultants both with sa fie they're implementing partner as well as an IBM it was critical for us to leverage IBM's knowledge and their skill set in order to be successful in rolling out our products so the SI p rollout was was the most complicated i'm sonia to me by far by far it took yeah we rolled out ECC six-point lead us with the full suite payroll sore we provide pay Rowling's one of our services so HCM which is human capital management the sales and distribution material management so a lot of the fundamental components of sa p we rolled out so it was it was quite a an interesting experience that was that core yes he went capital measurement or success factors no ms core we've looked at successfactors about it about a year ago and it just doesn't fit quite fit at this point in time as they start to develop in the product becomes a little more mature that may be a better fit for our organization and connections what was the driver behind bringing them in and talk about that a little bit sure so for us connections we did some analysis early this year breaking in january went a project strategy where we looked and discussed with some of our internal associates and interviewed about 30 staff employees and one of the only two fundamental things that came back out of that analysis was one we don't communicate properly our business goals throughout our organization so we're headquartered in Buffalo but we have over 50 locations worldwide so we have a lot of connect you know offices remotely and people that aren't sitting at our headquarters and that was another concern of feedback that was brought back to us was that we don't have the ability or the people with the remote offices felt like they weren't part of the the whole process or communicating properly with a corporate headquarters so we felt that this was the perfect platform to allow us to enable them so we did quite a bit of research we have a director of marketing and mobile strategy that went through a complete analysis and we looked at the SharePoint product but what's nice about the this product as opposed to the SharePoint is the the look and feel of you know like a linkedin the Twitter and that social media aspect of it so it really leveraged us leverage for us an opportunity to to collaborate and to reach out to these locations so the objectives were collaboration better communication so how is that being used how widely is it being used how did it change things it's really curious as to the outcome so actually it wasn't very positive outcome in it you know as you roll out of when you take a company you actually do a transformation into a social media type organization it's never in my opinion ever done it's a continuous process so we're still evolving as we go along I think the key is to be a front is that have the right adoption strategy so last year in january i attended the IBM connect down in florida and i actually participated an event with some senior execs with sandy sandy carter from IBM who heads up that part of the organization the social media and so it really it was about adoption strategy it's keith really not only is it just to implement it that's an IT thing and that's pretty straightforward but i've seen in the past it's always the challenge of not only just implementing the technology but then it's it's adopting and getting your users to use that and so because it had that look and feel that a lot of the people are familiar with you and your facebooks and that it's X have been extremely successful in rolling that out now that said we still think there's additional opportunities and we're looking at doing some enhancements social dashboarding looking at executive blogs a big value at four ization it's just when we roll it out not just internally to our staff employees but rolling it out to our contractors so we have anywhere between seven to nine thousand contractors working for superior and so they'll be working in our business there's a high turnover rate yoko and we'll place someone at a company but maybe work there for a month two months a week and that when they leave that now which goes away with them so we're really targeting our value add to be able to roll this out to even to our contract employee so when they go work on site they start to collaborate share information and invent that they do leave we still harvest that information that's bi-directional too I mean they're a representation of your company even though they are transient but so you can communicate to them like you say executive blogs what the what the corporate messaging is policies whatever it is that they can take it to as representing you essentially as an extension of your workforce and as you say you get knowledge back right oh absolutely and so one of the key values that we places that when we did that analysis I said earlier is that we didn't feel like there was a communication so now with the social media platform in place now we have people that are in our bangalore office can communicate and feel like they're in touch with our corporate headquarters and also their co-workers that are saying it on-site facilities that our customers so it really is improved that collaboration and communication it's really brought the organization together did you ever think at one point we just used you know publicly available social tools Facebook or LinkedIn just start a blog yet we and our organization has done that we have the Twitter count the facebook account but this was an opportunity for us to develop it and Taylor more customized it more for hours or specific names you've integrated those public network lots of little works right you if you go to our website you'll see the links and connections right into that yeah so functionally it's obviously a more rich environment connections right so why don't we talk about that a little bit what sort of what additional value did that bring to you is paying for it well sure is you how to justify it what value did you get there several areas that we feel it brought value one is you can it's a platform that can accessed anywhere so you don't have to be on our internal network to be able to access and collaborate and communicate right so that was a huge value add for our organization allows us to connect and stay stay together it empowered our users to be able to contribute openly be able to collaborate to be able to innovate and be able to take calculated risks from IT standpoint we see a reduction in email I don't have the actual numbers to tell you what percentage reduction an email but I'm pushing very strongly that we have an opportunity to use and leverage connections instead of sending emails traditionally you know people send an email check this where with connections you put the hosts the content or you put the files upload the files in there and they'll send a notification so you're not plugging you know plugging up your email system with additional data so yeah there's a Productivity aspect of that absolutely I think oh god I was Christian and the other thing is that you know the time to market for solutions has definitely reduced and even the the increase in efficiency so I know we spent some time looking at like this ed brillz book on opting in and then there's his situation identifies in the book is the traditional product manager they find him in manufacturing is really moving more towards a social product manager leveraging the IBM connections or for superior we took an opportunity to do that so I got to ask you about the social software Dave and I've been tracking jive all these other companies amor the facebook for the enterprise is kind of what they've been calling it but the feedback we've been hearing from CIOs was that I just favorited I signed something is it's in the social media team is running it that other team and so we were talking about the metaphor that the social media teams are a lot like the web teams in the 90s oh yeah we need a website yeah the kids are doing it right like the new guys the young guys are putting a web pages searchable it grew obviously it's relevant the websites grew and became big business e-commerce social media is the same way it's like everyone can see that it's real they know it's gonna be important it's not a lot of budget associating there's not a lot of personnel so the issue is is that they get implemented these say if they get sold these software packages and then they got to implement it kind of like communities yet this other stuff happening twitter facebook linkedin events live streaming so a lot of other social activations going on so so i want to get your take on as a CIO do you look at get involved in levels like that on the app's side is those apps decisions made with that in mind of like the personnel costs and and and the actual to run it and i've got some guys just for the hey i bought that i don't use anymore why it's just too much hassle right so there's a hassle factor what do you take what's your to my taste first of all I'm very big on when i get an asset or acquire an asset as best you realizing that asset you know and i came to this organization i saw several situations where assets were purchased to your point and just sitting idle because maybe it was a head take additional initiative to implement that so in our situation i work very closely with a gentleman that really did most of the work and doing all the research and its name is Franco he handles our he's a director of digital mobile strategy and so he went out and did all the work for us came back and sat down with myself and our president reviewed what makes the most sense I came from a manufacturing facilities it utilized the SharePoint so I was big at SharePoint so I was kind of was pushing in that direction but when I actually sat down with him i we went through really the true value adds what we can gain from that it was really a no-brainer for us do you ever have a situation where you put you put your fist down so hey you know what we just got to abandon that right now let's cut our losses move on in physics for example is another use case where same same situation I won't name the vendor was an IBM it was another one where hey want to do some new things we don't the staff the guys making us drive this engine until we get an roi out of in other words they were like we're going to ride this Pony until either collapses or ROI comes out of it when in reality they just driving down a cul-de-sac yeah so at some point in an emerging market like we're in agile is the option to abandon right you got to know and to cut the cord right oh absolutely and I'm not you know I'm not in a position where I'd say absolutely one band if it made sense it's right it's got to be a business decision well altima tlie position has always been it's got to work with the business and let the business drive and not i.t i.t is there to enable the business so we can provide our input and on the day they let them make the decisions now we didn't talk about the Cognos implementation any kind of depth so tell me tell me what you're doing with with cognos we talked a little bit about the essay p extension but how are you using cognos so primarily we have as i mentioned before part of our businesses and the managed services programs we offer MSPs which we have a tool called work nexus which is our vendor management solution involves our MSP they our customers will use this tool for recruiting for looking at time clocks looking at the proving timesheets invoicing and so forth so we have some pretty strict requirements of pulling that information now in providing reports to our customers we use our platform developed on it's based on abdominal environment so we in order to give them the reports we create what's called ad-hoc reports out of Domino very limited capabilities so that was our first target area was to use cognos to provide more enrich type dashboards active type reports for our customers we're just about completed with that part of the project the next is really to pulp reports out of sa p and so the standard reports that that i have with that IBM has provided is really more in the SD area as well as in the MM area so for our organization we're so heavily on payroll and people we really need to have report start in that area so and the next year i'm trying to work with a partner local partner in our area LPA systems to help develop more reports tailored towards SI p to provide workers compensation but i need to run a report that pulls out the work of compensation to do an essay p is so much more costly than to do it out of out of the Cognos so that's our goal in the next year's really to pull more reports using cognos out of sa p okay um what if we could talk a little bit about cloud which you're sort of stance on that you know some cio say no way others say yes others get you know shadow I t he coming to the cloud what's the state of cloud from an infrastructure standpoint and even a SAS you organization sure so we're currently in the process actually I'm looking at our organization and a traditional IT become a cost center so I'm trying to actually move it into a profit Center by offering services so we're targeting in the Buffalo area anyways small companies we're offering hosting cloud-based service whether it be private or rather be a public cloud services I'm not opposed at all to using a cloud-based solution in fact I'm on my essay p side for my dr site i'm doing just that i have a contract with a where the company is providing me a a cloud-based solution for my dr ok so but so you use it for disaster recovery are you doing any sort of Production apps in the cloud or would you ever consider doing that or no because we would consider i'm not sure if i consider this company because our information is very this very controlled we fall under the ssae 16 because we house that we host data that has in the HIPAA regulations all the different regulations so we have people social security number in that so to offer that in the cloud not to say that's not secure but we have much better control and we have an infrastructure in our organization that has enough bandwidth has enough cooling all the normal environmental that you have for data center so right now for us it makes more sense for us but in three to five years from now maybe even sooner that will probably look at possibly what's the cost differentiation between doing it in house having the resources to a versus offering what about test endeavor you do any tested dev stuff oh yes we have in our SP environment have a traditional three-tier landscape so we've got a dev quality in the production all of which is housed inside the decision actually to have that to have that done was before I joined the company so we the decision was made at say in May of 2010 I joined in July had I been before and I really would have pushed to have that hosted somewhere else because my opinion for an organization mostly like ours we don't have the technical expertise to be able to you know the basis capabilities the architecture the hardware all that type of stuff so I think that's a better fit for most people in do an essay p implementations of looking at that may be the first second or third year if you trust me we don't have that experience if you're new to an essay p type environment no no no no use case for it right no using Bitcoin at all no you have a from Association last night about Bitcoin still look at the next to look crazy were down yeah PayPal's looking at is that in the news it's not mainstream enterprises yeah we loved we loved talking to see iOS housley Wikibon community we have a lot of CIOs with a lot of CEOs in our network and you know this is challenging opportunity but the days the good days are ahead i mean we're seeing huge investment opportunity growth new top line drivers that are changing the business where the CIO is kind of CEO like dealing with all the normal cost side but really drop driving profits so so i got to get the question before we end the segment is cost center versus profit center and you guys mentioned you guys are down pnl profit center right how does that change the game mindset wise and how you execute and what you can adopt and how fast well obviously the owners of the organization love the fact that we're offering that as a as an opportunity to generate some additional revenue i'm assuming you took the facilities equation out of your pnl yeah right what was it so good before i joined the organization write that down at her i keep track of that for sure okay go ahead but before join the our organization i joke jokingly say this we had more bandwidth in some banks I mean we really had the the infrastructure in place I fully redone it and so forth so we had long-term contracts so I've got five-year contracts with services with companies that I have to keep otherwise you can pay the penalty and get out but so we said you know why not leverage and we did a virtualization project when I first joined we recovered over fifty percent of our data center space so I have all this empty space I've all this band was sitting here I've got all the redundancies in the environment to be able to support that why not go after a small company i'm not going to be able to compete you know with the bigger companies and that but we're targeting some of the local companies and we're doing quite successful yeah why not that's great yeah awesome okay we're here live at the iod conference this is the cube we'll be right back with our next guest after this short break stay with us the q