(soft music) >> Good morning from Detroit, Michigan. theCUBE is live on our second day of coverage of KubeCon + CloudNativeCon North America 2022. Lisa Martin here with John Furrier. John, great to be back with you. The buzz is here, no doubt. We've been talking a lot about the developers. And one of the biggest bottlenecks that they face in software delivery, is when they're stuck waiting for access to environments. >> Yeah, this next segment's going to be very interesting. It's a company that's making DevOps more productive, but recognizing the reality of how people are working remotely, but also company to company developers. People are collaborating in all kinds of forms, so this is really going to be a great segment. >> Exactly. Two new guests to theCUBE who know theCUBE, but are first time on theCUBE from Release Hub, Tommy McClung, it's CEO and Matt Carter, it's CMO. Guys, great to have you on the program. >> Thank you. >> Thanks for having us here. >> So we want to dig into Release Hub, so the audience really gets an understanding. But Tommy, I want to get an understanding of your background. >> Sure. >> You've been at Release Hub for what, three years? >> Yep, I'm the co-founder. >> Before that you were at TrueCar? >> I was, yeah, I was the CTO at TrueCar. And prior to that, I've been a software engineer my entire career. I've started a couple of companies before this. Software engineer at heart. I've been working on systems management and making developers productive since 2000, long time. So it's fun to be working on developer productivity stuff. And this is our home and this is where I feel the most comfortable. >> Lisa: Yeah. And Matt, you're brand new to the company as it's chief marketing officer. >> Matt: Yeah, so I just joined earlier this month, so really excited to be here. I came over from Docker, so it's great to be able to keep working with developers and helping them, not only get their jobs done better and faster, but just get more delight out of what they do every day, that's a super important privilege to me and it's exciting to go and work on this at Release here. >> Well, they're lucky to have you. And we work together, Matt, at Docker, in the past. Developer productivity's always been a key, but communities are now more important. We've been seeing on theCUBE that developers are going to decide the standards, they're going to vote with their axes and their code. And what they decide to work on, it has to be the best. And that's going to be the new defacto standard. You guys have a great solution that I like. And I love the roots from the software engineering background because that's the hardest thing right now, is how do you scale the software, making things simpler and easier. And when things happen, you don't want to disrupt the tool chains, you want to make sure the code is right, you guys have a unique solution. Can you take a minute to explain what it is and why it's so important? >> Tommy: Yeah, I'll use a little bit of my experience to explain it. I was the CTO of a company that had 300 engineers, and sharing a handful of environments, really slowed everybody down, you bottleneck there. So in order to unlock the productivity of that team, developers need environments for development, they need it for testing, they need it for staging, you run your environments in production. So the environment is the key building block in every software development process. And like my last company, there were very few of them, one or two, everybody sharing them. And so the idea at Release is to make environments available on demand, so if a developer needs one for anything, they can spin one up. So if they want to write their code in a environment based in the cloud, they can do that, if they want to test on a poll request, an environment will automatically spin up. And the environments are full stack, include all the services, data, settings, configuration that runs the app. So developers literally get an isolated copy of the application, so they can develop knowing they're not stepping on other developers' toes. >> John: Can you give an example of what that looks like? Do they have to pre-configure the environment, or how does that work? Can you give an example? >> Yeah, sure. You have to, just like infrastructure is code, we call this environments is code. So you need to define your environment, which we have a lot of tools that help you do that. Analyze your repositories, help you define that environment. Now that you have the template for that, you can easily use that template to derive multiple environments out of it. A key part of this is everybody wants to make sure their development and data is secure. It runs within the AWS account of our customer. So we're the control plane that orchestrates it and the data and applications run within the context of their AWS account, so it's- >> John: What's the benefit? >> Tommy: Well, bottlenecking, increased developer productivity, developer happiness is a big one. Matt talks about this all the time, keeping developers in flow, so that they're focused on the job and not being distracted with, "Hey DevOps team, I need you to go spin up an environment." And a lot of times in larger organizations, not just the environments, but the process to get access to resources is a big issue. And so DevOps was designed to let developers take control of their own development process, but were still bottlenecking, waiting for environments, waiting for resources from the DevOps team, so this allows that self-service capability to really be there for the developer. >> Lisa: Matt, talk about... Target audience is the developer, talk about though... Distill that down into the business value. What am I, if I'm a financial services organization, or a hospital, or a retailer in e-commerce, what is my business value going to be with using technology like this and delighting those developers? >> Matt: I think there's three things that really matter to the developers and to the financial leader in the organization, A, developers are super expensive and they have a lot of opportunities. So if a developer's not happy and finding joy and productivity in what they're doing, they're going to look elsewhere. So that's the first thing, the second thing is that when you're running a business, productivity is one measure, but also, are you shipping something confidently the first time, or do you have to go back and fix things? And by having the environment spun up with all of your name space established, your tendencies are managed, all of your data being brought in, you're testing against a very high fidelity version of your application when you check in code. And so by doing that, you're testing things more quickly, and they talk a lot about shifting left, but it's making that environment as fully functional and featured as possible. So you're looking at something as it will appear in production, not a subset of that. And then the last thing, and this is one where the value of Figma is very important, a lot of times, you'll spin up an environment on AWS and you may forget about it and might just keep running and chewing up resources. Knowing that when you're done it goes away, means that you're not spending money on things just sitting there on your AWS instance, which is very important for competitors. >> Lisa: So I hear retention of developers, you're learning that developers, obviously business impact their speed to value as well. >> Tommy: Yep. >> And trust, you're enabling your customers to instill trust in their developers with them. >> Tommy: That's right, yeah. >> Matt: And trust and delight, they can be across purposes, a developer wants to move fast and they're rewarded for being creative, whereas your IT team, they're rewarded for predictability and consistency, and those can be opposing forces. And by giving developers a way to move quickly and the artifact that they're creating is something that the IT team understands and works within their processes, allows you to let both teams do what they care about and not create a friction there. >> John: What about the environment as a service? I love that 'cause it makes it sound like it's scaling in the cloud, which you have mentioned you do that. Is it for companies that are working together? So I don't want to spin up an environment, say we're a businesses, "Hey, let's do a deal. "I'm going to integrate my solution into yours. "I got to get my developers to maybe test it out, "so I'm spinning up an environment with you guys," then what do I do? >> Tommy: Well as far as if you're a customer of ours, is that the way you're asking? Well, a lot of times, it's being used a lot in internal development. So that's the first use case, is I'm a developer, you have cross collaboration amongst teams, so a developer tools. And what you're talking about is more, I'm using an environment for a demo environment, or I'm creating a new feature that I want to share with a customer, That's also possible. So if I'm a developer and I'm building a feature and it's for a specific customer of mine, I can build that feature and preview it with the customer before it actually goes into production. So it's a sandbox product development area for the developers to be actually integrating with their customers very, very quickly before it actually makes its way to all of the end users. >> A demo? >> It could be a demo. >> It's like a collaboration feature? >> Sandbox environment. We have customers- >> Kind of like we're seeing more of this collaboration with developers. This becomes a well- >> Tommy: And it's not even just collaboration with internal teams, it's now you're collaborating with your customer while you're building your software, which is actually really difficult to do if you only have one environment, you can't have- >> John: Yeah, I think that's a killer right there, that's the killer app right there. >> Matt: Instead of sending a Figma to a customer, this is what's going to look like, it's two dimensions, this is the app. That is a massive, powerful difference. >> Absolutely. In terms of customer delay, customer retention, employee engagement, those are all inextricably linked. Can you share, Matt, the voice of the customer? I just saw the release with TripActions, I've been a TripActions user myself, but give us this sense, I know that you're brand new, but the voice of the customer, what is it? What is it reflecting? How is it reinforcing your value prop? >> Matt: I think the voice that comes through consistently is instead of spending time building the system that is hard to do and complicated and takes our engineering cycles, our engineers can focus on whether it's platform engineering, new features and whatnot, it's more valuable to the company to build features, it's more exciting for a developer to build features and to not have to keep going back and doing things manually, which you're doing a... This is what we do all day long. To do it as a sideline is hard. And the customers are excited 'cause they get to move onto higher value activities with their time. >> Lisa: And everybody wants that, everybody wants to be able to contribute high value projects, programs for their organization rather than doing the boring stuff. >> Tommy: Yeah. I think with TripActions specifically, a lot of platform engineering teams are trying to build something like this in house, and it's a lot of toil, it's work that isn't value added, it enables developers to get their job done, but it's not really helping the business deliver a feature to the user. And so this whole movement of platform engineering, this is what those groups are doing and we're a big enabler to those teams, to get that to market faster. >> John: You're targeting businesses, enterprises, developers. >> That's right. >> Mainly, right, developers? >> Yeah. >> What's the business model? How are you guys making money? What's the strategy there? >> Yeah, I mean we really like to align with the value that we deliver. So if a user creates an environment, we get paid when that happens. So it's an on-demand, if you use the environment, you pay us, if you don't, you don't. >> John: Typical cloud-based pricing. >> Yeah. >> Pay as you go. >> Tommy: Usage based pricing. >> Is there a trigger on certain of how it gets cost? Is it more of the environment size, or what's the- >> Yeah, I mean there's a different tier for if you have really large, complicated environments. And that's the trend, that distributed applications aren't simple anymore, so if you have a small little rails app, it's going to be cheaper than if you have a massive distributed system. But manageable, the idea here is that this should help you save money over investing deeply into a deep platform engineering team. So it's got to be cost effective and we're really cognizant of that. >> So you got a simple approach, which is great. Talk about the alternative. What does it look like for a customer that you want to target? What's their environment? What does it look like, so that if I'm a customer, I would know I need to call you guys at Relief Hub. Is it sprawl? Is it multiple tool chains? Chaos, mayhem? What does it look like? >> Tommy: Yeah, let's have Matty, Matt could do this one. >> When you look at the systems right now, I think complexity is the word that keeps coming up, which is that, whether you're talking about multi-cloud or actually doing it, that's a huge thing. Microservices proliferation are happening over and over again, different languages. What I'm excited about with Release, is not dissimilar from what we saw in the Docker movement, which is that there's all this great stuff out there, but there's that common interface there, so you can actually run it locally on your machine, do your dev and test, and know that it's going to operate with, am I using Couchbase or Postgres or whatever, I don't care, it's going to work this way. Similar with Release, people are having to build a lot of these bespoke solutions that are purpose built for one thing and they're not designed to the platform. And the platform for platform engineering gives us a way to take that complexity out the equation, so you're not limited to what you can do, or, "Oh crud, I want to move to something else, "I have to start over again," that process is going to be consistent no matter what you're doing. So you're not worried about evolution and success and growth, you know that you've got a foundation that's going to grow. Doing it on your own, you have to build things in that very bespoke, specific manner, and that just creates a lot more toil than you'd want to get if you were using a platform and focusing on the value after your company. >> Matt Klein was just on here. He was with Lyft, he was the one who open source Envoy, which became very popular. We asked him what he thought about the future and he's like, it's too hard to work with all this stuff. He was mentioning Yamo code, but he got triggered a little bit, but his point was there's a lot to pull together. And it sounds like you guys have this solution, back in the old days, spin up some EC2, compute, similar way, right? "Hey, I don't want to person a server, I person a server, rack and stack, top of rack switch, I'm going to go to the cloud, use EC2. >> Tommy: Yeah, I mean just think about if- >> You're an environment version of that. Why wait for it to be built? >> Yeah. >> Is that what I'm getting- >> Yeah, I mean, and an application today isn't just the EC2 instances, it's all of your data, it's your configuration. Building it one time is actually complicated to get your app to work it, doing it lots of times to make your developers productive with copies of that, is incredibly difficult. >> John: So you saw the problem of developers waiting around for someone to provision an environment. >> Tommy: That's right. >> So they can do whatever they want to do. >> Tommy: That's right. >> Test, ship, do, play around, test the customer. Whatever that project scope is, they're waiting around versus spinning up an environment. >> Yeah, absolutely, 100%. >> And that's the service. >> That's what it is. >> Take time, reduce the steps it takes, make it more productive. >> And build an amazing developer experience that you know your developers are going to love. If you're at Facebook or Google, they have thousands of DevOps people building platforms. If you're a company that doesn't have that resource, you have a choice of go build this yourself, which is a distraction, or invest in something like us and focus on your core. >> John: You got Matt on board, got a new CMO, you got enterprise class features and I saw the press release. Talk about the origination story, why you developed it, and then take a minute to give a plug for the company, on what you're looking for, I'm sure you're hiring, what's going on? >> Tommy: Yeah, I've been an entrepreneur for 20 years. My last experience at TrueCar, I saw this problem firsthand. And as the CTO of that company, I looked into the market for a solution to this, 'cause we had this problem of 300 developers, environments needed for everything. So we ended up building it ourselves and it costs multiple millions of dollars to build it. And so as the buyer at the time, I was like, man, I would've spent to solve this, and I just couldn't. So as a software engineer at heart, having seen this problem my entire career, it was just a natural thing to go work on. So yeah, I mean, for anybody that wants to create unlimited environments for their team, just go to releasehub.com. It's pretty self-explanatory, how to give it a shot and try it out. >> Environments is a service, from someone who had the problem, fixed it, built it- >> That's right. >> For other people. What are you guys hiring, looking for some people? >> Yeah, we have engineering hires, sales hires, Matt's got a few marketing hires coming, >> Matt: I was going to say, got some marketing coming. >> Selfishly he has that. (John laughs) The team's growing and it's a really great place to work. We're 100% remote. Part of this helps that, we build this product and we use it every day, so you get to work on what you build and dog food, it's pretty cool. >> Great solution. >> We love remote development environments. Being here and watching that process where building a product and a feature for the team to work better, wow, we should share this with customers. And the agility to deliver that was really impressive, and definitely reinforced how excited I am to be here 'cause we're building stuff for ourselves, which is- >> Matt: Well we're psyched that you're here in theCUBE. Matt, what's your vision for marketing? You got a hiring plan, you got a vision, I'm sure you got some things to do. What's your goals? What's your objective? >> My goal is... The statement people say, you can't market to developers. And I don't want to market to developers, I want to make sure developers are made aware of how they can learn new things in a really efficient way, so their capabilities grow. If we get people more and more successful with what they're doing, give them joy, reduce their toil and create that flow, we help them do things that make you excited, more creative. And that's to me, the reward of this. You teach people how to do that. And wow, these customers, they're building the greatest innovations in the world, I get to be part of that, which is awesome. >> Lisa: Yeah. Delighted developers has so many positive business outcomes that I'm sure organizations in any industry are going to be able to achieve. So exciting stuff, guys. Thank you so much for joining John and me on the program. Good luck with the growth and congrats on what you've enabled so far in just a few short years. >> Thank you, appreciate it. >> Thanks you so much. >> Thank you for having us on. >> Appreciate it. >> Pleasure. >> Thank you. >> For our guests and for John Furrier, I'm Lisa Martin. You're watching theCUBE, live in Detroit, at KubeCon + CloudNativeCon '22. We're back after a short break. (soft music)

(upbeat music) >> Good afternoon and welcome back to Las Vegas. You're watching theCUBE's coverage of AWS 2021. My name is Dave Vellante. theCUBE goes out to the events. We extract the signal from the noise. Very few physical events this year doing a lot of hybrid stuff. It's great to be back in hybrid event... Physical event land, 25,000 people here. Probably a little few more registered than that. And then on the periphery, got to be another at least 10,000 people that came in, flew in and out, see what's happening. A bunch of VCs, checking things out, a few parties last night and so forth. A lot of action here. It's like re:Invent is back. Matt Coulter is here. He's a technical architect at Liberty Mutual. Matt, thanks for flying in from Belfast. Good to see ya. >> Dave, and thanks for having me today. >> Pleasure. So what's your role as a technical architect? Maybe describe that, we'll get into a little bit. >> Yeah so I am here to empower and enable our developers across the globe to rapidly deliver business value and solve problems for our customers in a well-architected way that doesn't introduce problems or risks, you know, later down the line. So instead of thinking of me as someone who directly every day, build software, I try to create the environment where other people can rapidly build software. >> That's, you know, it's interesting. because you're a developer, right? You can use like, "Hey I code." That's what normally you would say but you're actually creating frameworks and business model so that others can learn, teach them how to fish, so we speak. >> Yeah because I can only scale, there's a certain amount. Whereas if I can teach, there's 5,000 people in Liberty Mutual's tech organization. So if I can teach the 5,000 to be 5% better, it's way more than me even if I 10Xed >> When did you first touch the Cloud? >> Personally, it would have been four/five years ago. That's when I started in the Cloud. >> What was that experience like for you? >> Oh, it was hard. It was very different to anything that we'd done in the past. So it's because you... Traditionally, you would have just written your small piece of code. You would have had a big application that was out there, it had been out there maybe 20 years, it was deployed, and you were just adding a couple of lines. Whereas when you start putting stuff into the Cloud, it's out there. It's on the internet for anyone there to try and hack or try to get into. It was a bit overwhelming the amount that you needed to learn. So it was- >> Was it worth it? >> Oh yeah. Completely. (laughing) So that's the thing, that I would never go back to the way we did things before. And that's why I'm so passionate, enthusiastic about the stuff I've been doing. Because to me, the amount of benefits you can get, like now we can deliver thing. We have teams going out there and doing discovery and framing with the business. And they're pushing well-architected products three days later into production. That was unheard of before, you know, this year. >> Yeah. So you were part of Werner's keynote this morning. Of course that's always one of the keynotes that's most anticipated at re:Invent. It's on the sort of last day. He's awesome. This is you know, 10th year of re:Invent. He sort of did a look back. He started out (chuckles) he's just a cool guy and very passionate. But talk about what your role was in the keynote. >> Yeah so I had a section towards the end of the keynote, and I was to talk about Liberty Mutual's serverless first journey. I actually went through from 2014 through to the current day of all the major Cloud milestones that we've hit. And I talked through some of the impact it's had on our business and the impact it's had on our developers. And yeah it's just been this incredible journey where as I said, it was hard at the start. So we had to spark this culture within our company that we were going to empower and enable our developers and we were going to get them excited about doing this. And that's why we needed to make it safe. So there was a lot of work went down at the start to make the Cloud safe for our developers to experiment. And then the past two years have been known that it's safe, okay? Let's see what it can do. Let's go. >> Yeah so Liberty Mutual has been around many many years, Boston-based, you know, East Coast-based, my home city. I don't live in Boston but I consider it my city. And so talk about your business a little bit because you're an established company. I don't know, probably a hundred years old, right? Any all other newbies nipping at your business, right? Coming in with low-cost products. Maybe not bringing as much protection as you dig into it. But regardless, you've got to compete with them technically. So what are some of the drivers in your business and how are you using the Cloud to sort of defend your turf and grow? >> Yeah so first of all, we're 109 years old. (laughing) Yeah. So absolutely, there's an entire insurtech market of people here gunning for the big Liberty Mutual because we've been here for so long. And our whole thing is we're focused on our customers. So we want to be there for people in their time of need. Because at a point in time whenever you need insurance, typically something is going wrong. And that's why we're building innovative solutions like a serverless call center we built, that after natural disaster, it can automatically process claims in less than four minutes. So instead of having to wait on hold for maybe an hour, you can just text or pick up the phone, and four minutes later your claims are through. And that's we're using technology always focused on the customer. >> That's unbelievable. Think about that experience, to me. I mean I've filed claims before and it's, it's kind of time consuming. And you're saying you've compressed that to minutes? Days, weeks, you know, and now you've compressed that to minutes? >> Yeah. >> Tell us more about how you did that. >> And that's because it's a fully serverless solution that was built. So it doesn't require like people to scale. It can scale to whatever number of our customers need to make a claim at that point because that would typically be the bottleneck if there's some kind of natural disaster. So that means that if something happens we can just switch it on. And customers can choose not to use it. You can always choose to say I want to speak to a person. But now with this technology, we can just make it easy and just go. Everything, all the information we know in the back end, we just use it and actually make things better for you. >> You're talking about the impact that it had on your business and developers. So how do you quantify that? Maybe start with the business. Maybe share some ways in which you look at that measure. >> Yeah, so I mean, in terms of how we measure the impact of the Cloud on our business, we're always looking at our profitability and we're always looking, as I say, at our customers. And ideally, I want our Cloud bill to go down as our number of customers goes up because that's why we're using the serverless fast mindset, we call it. We don't want to build anything we don't have to build. We want to take the best that's out there and just piece it together and produce these products for our customers. So yeah, that's having an impact on our business because now developers aren't spending weeks, months, years doing all this configuration. And they can actually sit down with the business and understand how we write insurance. So now we can start being innovative with our products and talking about the real business instead of everything else. >> When you say you want your Cloud bill to go down, you know, it reminds me like in the old days of IT budgeting, right? It was always slash, do more with less cut, cut, cut, right? And it was kind of going in cycles. But with the Cloud a lot of customers that I talk to, they were like, might be going down as a percentage of revenues but actually it might be going up as you launch more projects because they're driving revenue. There's a tighter tie between revenue and Cloud bill. How do you look at that? >> Yeah. So I mean, with every project, you have to look at the worth-based development often and whether or not it's going to hold this away in the market. And the key thing is with the serverless products that are being released now, they cost pennies if they're low scale. So you can actually launch a new product into the market and it maybe only cost you $20 to see if that thing would fit in the market. So by the time you're getting into the big bills you know whether or not you've got a market fit and you can decide whether you want to pivot. >> Oh wow. So you you've compressed, that's another business metric. You've compressed the time to get certainty around product market fit, right? Which is huge because you really can't go to market until you have product market fit (laughing) >> Exactly. You have to be. Thoroughly understand if it's going to work. >> Right because if you go to the market and you've got 50% churn. (laughing) Well, you don't want to be worried about the go-to market. You got to get back to the product so you can test that and you can generate. >> So that's why, yeah, As I said, we have developers who can go out and do discovery and framing on a potential product and deliver it three days later which (chuckles) >> How has the Cloud effected developer satisfaction or passion? I guess it's... I mean we're in AWS Cloud. Our developers, we tell them "Okay, you got to go back on-prem." They would say, "I quit." (laughing) How has it affected their lives? >> Yeah it's completely there for them, it's way better. So now we have way more ownership over any, you know, of everything we ever did. So it feels like you're truly a part of Liberty Mutual and you're solving Liberty's problems now. Because it's not a case of like, "Okay, let's put in a request to stand up a server, it's going to take six months. And then let's do some big long acquisition." It's a case of like, "Let's actually get done into the nitty gritty of what we going to build." And that's- >> How do you use the Cloud developer kit? Maybe you could talk about that. I mean, explain what it is. It's a framework. But explain from your perspective. >> Yeah so the Cloud typically, it started off, and lot of it was done by Cloud infrastructure engineers who created these big YAML files. That's how they defined all the stuff that's going to be deployed. But that's not typically the development language that most developers use. The CDK is in like Java, TypeScript, .NET, Python. The language is developers ready known love. And it means that they can use everything they already know from all of their previous development experience and bring it to the Cloud. And you see some benefits like, you get, I talked about this morning, a 1500 line YAML file was reduced to 14 lines of TypeScript. And that's what we're talking about with the cognitive difference for a developer using CDK versus anything else. >> Cognitive abstraction, >> Right? >> Yeah. And so it just simplifies your living and you spend more time doing cool stuff. >> Yeah we can write an abstraction for our specific needs once. And then everybody can use that abstraction. And if we want to make a change and make it better, everyone benefits instead of everybody doing the same thing all the time. >> So for people who are unfamiliar, what do you need? You need an AWS account, obviously. You got to get a command-line interface, I would imagine. maybe some Node.js often running, or is it- >> Yeah. So that's it. You need an AWS account, and then you need to install CDK, which is from Node Package Manager. And then from there, it depends on which way you want to start. You could use my project CDK patterns, has a whole ray of working patterns that you can clone among commands. You just have to type, like one command you've got a pattern, and then CDK deploy. And you'll have something working. >> Okay so what do you do day-to-day? You sort of, you evangelize folks to come in and get trained? Is there just like a backlog of people that want your time? How do you manage that? >> So I try to be the place that I'm needed the most based on impact of the business. And that's why I try to go in. Liberty split up into different areas and I try to go into those areas, understand where they are versus where they need to be. And then if I can do that across everywhere, you can see the common thesis. And then I can see where I can have the most impact across the board instead of focusing on one micro place. So there's a variety of tools and techniques that I would do, you know, to go through that but that's the crux of it. >> So you look at your business across the portfolio, so you have portfolio view. And then you do a gap analysis essentially, say "Okay, where can I approach this framework and technology from a developer standpoint, add value? >> Yeah like I could go into every single team with every single project, draw it all out and like, what we call Wardley map, and then you can draw a line and then say "Everything blue in this line is undifferentiated, heavy-lifted. I want you to migrate that. And here's how you're going to do it I've already built the tools for that." And that's how we can drive those conversations. >> So, you know, it's funny, I spent a lot of time in the insurance business not in the business but consulting with heads of application development and looking at portfolios. And you know, they did their thing. But you know, a lot of people sort of question, "Can developers in an insurance company actually become cool Cloud native developers?" You're doing it, right? So that's going to be an amazing transformation for your colleagues and your industry. And it's happening as we look around here (indistinct) >> And that's the thing, in Liberty I'm not the only one. So there's Tommy Gloklin, he's an AWS hero, and there's Diali Mikan, who's an AWS hero. And Diali is in Workgrid but we're still all the same family. >> So what does it mean to be an AWS hero? >> Yeah so this is something that AWS has to offer you to join. So basically, it's about impacting the community. It's not... There's not like a checklist of items you can go through and you're hero. It's you have to be nominated internally through AWS, and then you have to have the right intentions. And yeah, just follow through. >> Dave: That's awesome. Yeah so our producer, Lynette, is looking for an Irish limerick. You know, every, say I'm half Irish is through my marriage. Dad, you didn't know that, did you? And every year we have a St Patrick's Day party and my daughter comes up with limericks. So I don't know, if you have one that you want to share. If you don't, that's fine. >> I have no limericks for now. I'm so sorry. (laughing) >> There once was a producer from, where are you from? (laughing) So where do you want to take this, Matt? What's your future look like with this program? >> So right now, today, I actually launched a book called the CDK book. >> Dave: Really? Awesome. >> Yeah So me and three other heroes got together and put everything we know about CDK and distilled it into one book. But the... I mean there's two sides, there's inside Liberty. The goal as I've mentioned is to get our developers to the point that they're talking about real insurance problems rather than tech. And then outside Liberty in the community the goal is things like CDK Day, which is a global conference that I created and run. And I want to just grow those farther and farther throughout the world so that eventually we can start learning you know, cross business, cross market, cross the main instead of just internally one company. >> It's impressive how tuned in you are to the business. Do you feel like the Cloud almost forces that alignment? >> It does. It definitely does. Because when you move quickly, you need to understand what you're doing. You can't bluff almost, you know. Like everything you're building you're demonstrating that every two weeks or faster. So you need to know the business to do it. >> Well, Matt, congratulations on all the great work that you've done and the keynote this morning. You know, true tech hero. We really appreciate your time coming in theCUBE. >> Thank you, Dave, for having me. >> Our pleasure. And thank you for watching. This is Dave Vellante for theCUBE at AWS re:Invent. We are the leader global tech coverage. We'll be right back. (light upbeat music)

>>From around the globe. It's the cube covering Fortinet security summit brought to you by Fortinet. >>Welcome back to the cube. Lisa Martin here at the Fordham het championship security summit. Napa valley has been beautiful and gracious to us all day. We're very pleased to be here. I'm very pleased to welcome a first-timer to the cube. Rupesh Chuck Chuck Xi, VP a T and T cybersecurity and edge solutions at, at and T cybersecurity. Refresh. Welcome. >>Thank you. Thank you so much for having me, Lisa, I'm looking forward to our conversation today. >>Me too. First of all, it's we're in Napa we're outdoors. It's beautiful venue, no complaints, right? We're at a golf PGA tournament. Very exciting. Talk to me about the at and T Fordanet relationship. Give me, give me an, a good insight into the partnership. >>Sure, sure. So, as you said, you know, beautiful weather in California, Napa it's my first time. Uh, so it's kind of a new experience for me going back to your question in terms of the relationship between eight P and T and Ford in that, uh, a long lasting, you know, 10 plus years, you know, hand in hand in terms of the product, the technology, the capabilities that we are brought together in the security space for our customers. So a strategic relationship, and I'm so thrilled to be here today as a, Fordanet invited us to be part of the championship. Tommy, >>Talk to me. So your role VP of, and T cybersecurity and edge solutions, give me an, a deep dive into what's in your purview. >>Sure, sure. So I, uh, sort of, you know, run the PNL or the profit and loss center for product management for all of at and T cybersecurity and ed solutions and the whole concept behind putting the teams together is the convergence in networking and security. Um, so, you know, we are supporting the entire customer continuum, whether it's a fortune 50, the fortune 1000 to mid-market customers, to small businesses, to, you know, government agencies, you know, whether it's a local government agency or a school district or a federal agency, et cetera. And my team and I focus on bringing new product and capabilities to the marketplace, you know, working with our sales team from an enablement perspective, go to market strategy. Um, and the whole idea is about, uh, you know, winning in the marketplace, right? So delivering growth and revenue to the business, >>Competitive differentiation. So we've seen so much change in the last year and a half. I know that's an epic understatement, but we've also seen the proliferation at the edge. What are some of the challenges that you're seeing and hearing from customers where that's concerned >>As you stated, right. There's a lot happening in the edge. And sometimes the definition for edge varies when you talk with different people, uh, the way we look at it is, you know, definitely focused on the customer edge, right? So if you think about many businesses, whether I am a, a quick serve restaurant or I'm a banking Institute or a financial services or an insurance agency, or I'm a retail at et cetera, you know, lots of different branches, lots of different transformation taking place. So one way of approaching it is that when you think about the customer edge, you see a lot of virtualization, software driven, a lot of IOT endpoints, et cetera, taking place. So the cyber landscape becomes more important. Now you're connecting users, devices, capabilities, your point of sale system to a multi-cloud environment, and that, you know, encryption of that data, the speed at which it needs to happen, all of that is very important. And as we think ahead with 5g and edge compute and what that evolution revolution is going to bring, it's going to get even more excited because to me, those are kind of like in a playgrounds of innovation, but we want to do it right and keep sort of, you know, cyber and security at the core of it. So we can innovate and keep the businesses safe. >>How do you help customers to kind of navigate edge cybersecurity challenges and them not being synonymous? >>That's a great, great question. You know, every day I see, you know, different teams, different agendas, different kinds of ways of approaching things. And what I tell customers and even my own teams is that, look, we have to have a, a blueprint and architecture, a vision, you know, what are the business outcomes that we want to achieve? What the customer wants to achieve. And then start to look at that kind of technology kind of convergence that is taking place, and especially in the security and the networking space, significant momentum on the convergence and utilize that convergence to create kind of full value stack solutions that can be scaled, can be delivered. So you are not just one and done, but it's a continuous innovation and improvement. And in the security space, you need that, right. It's never going to be one and done. No >>We've seen so much change in the last year. We've seen obviously this rapid pivot to work from home that was overnight for millions and millions of people. We're still in that too. A fair amount. There's a good amount of people that are still remote, and that probably will be permanently there's. Those that are going to be hybrid threat landscape bloated. I was looking at and talking with, um, 40 guard labs and the, the nearly 11 X increase in the last 12 months in ransomware is insane. And the ransomware as a business has exploded. So security is a board level conversation for businesses I assume in any. >>Absolutely. Absolutely. I agree with you, it's a board level conversation. Security is not acknowledged the problem about picking a tool it's about, you know, the business risk and what do we need to do? Uh, you mentioned a couple of interesting stats, right? So we've seen, uh, you know, two things I'll share. One is we've seen, you know, 440 petabytes of data on the at and T network in one average business day. So 440 petabytes of data. Most people don't know what it is. So you can imagine the amount of information. So you can imagine the amount of security apparatus that you need, uh, to Tofino, protect, and defend and provide the right kind of insights. And then the other thing that VOC and along the same lines of what you were mentioning is significant, you know, ransomware, but also significant DDoSs attacks, right? So almost like, you know, we would say around 300% plus said, DDoSs mitigations that we did from last year, you know, year over year. >>So a lot of focus on texting the customer, securing the end points, the applications, the data, the network, the devices, et cetera. Uh, the other two points that I want to mention in this space, you know, again, going back to all of this is happening, right? So you have to focus on this innovation at the, at the speed of light. So, you know, artificial intelligence, machine learning, the software capabilities that are more, forward-looking have to be applied in the security space ever more than ever before, right. Needs these do, we're seeing alliances, right? We're seeing this sort of, you know, crowdsourcing going on of action on the good guys side, right? You see the national security agencies kind of leaning in saying, Hey, let's together, build this concept of a D because we're all going to be doing business. Whether it's a public to public public, to private, private, to private, all of those different entities have to work together. So having security, being a digital trust, >>Do you think that the Biden administrations fairly recent executive order catalyst of that? >>I give it, you know, the president and the, the administration, a lot of, you know, kudos for kind of, and then taking it head on and saying, look, we need to take care of this. And I think the other acknowledgement that it is not just hunting or one company or one agency, right? It's the whole ecosystem that has to come together, not just national at the global level, because we live in a hyper connected world. Right. And one of the things that you mentioned was like this hybrid work, and I was joking with somebody the other day that, and really the word is location, location, location, thinking, network security, and networking. The word is hybrid hybrid hybrid because you got a hybrid workforce, the hybrid cloud, you have a hybrid, you have a hyper-connected enterprise. So we're going to be in this sort of, you know, hybrid for quite some time are, and it has to >>Be secure and an org. And it's, you know, all the disruption of folks going to remote work and trying to get connected. One beyond video conference saying, kids are in school, spouse working, maybe kids are gaming. That's been, the conductivity alone has been a huge challenge. And Affordanet zooming a lot there with links to us, especially to help that remote environment, because we know a lot of it's going to remain, but in the spirit of transformation, you had a session today here at the security summit, talked about transformation, formation plan. We talk about that word at every event, digital transformation, right? Infrastructure transformation, it security. What context, where you talking about transformation in it today? What does it transformation plan mean for your customers? >>That's a great question because I sometimes feel, you know, overused term, right? Then you just take something and add it. It's it? Transformation, network, transformation, digital transformation. Um, but what we were talking today in, in, in the morning was more around and sort of, you know, again, going back to the network security and the transformation that the customers have to do, we hear a lot about sassy and the convergence we are seeing, you know, SD van takeoff significantly from an adoption perspective application, aware to experiences, et cetera, customers are looking at doing things like internet offload and having connectivity back into the SAS applications. Again, secure connectivity back into the SAS applications, which directly ties to their outcomes. Um, so the, the three tenants of my conversation today was, Hey, make sure you have a clear view on the business outcomes that you want to accomplish. Now, the second was work with a trusted advisor and at and T and in many cases is providing that from a trusted advisor perspective. And third, is that going back to the one and done it is not a one and done, right? This is a, is a continuous process. So sometimes we have to be thinking about, are we doing it in a way that we will always be future ready, will be always be able to deal with the security threats that we don't even know about today. So yeah, >>You bring up the term future ready. And I hear that all the time. When you think of man, we really weren't future ready. When the pandemic struck, there was so much that wasn't there. And when I was talking with 49 earlier, I said, you know, how much, uh, has the pandemic been a, uh, a catalyst for so much innovation? I imagine it has been the same thing that >>Absolutely. And, you know, I remember, you know, early days, February, March, where we're all just trying to better understand, right? What is it going to be? And the first thing was, Hey, we're all going to work remote, is it a one week? Is it a two week thing? Right? And then if you're like the CIO or the CSO or other folks who are worried about how am I going to give the productivity tools, right. Businesses in a one customer we work with, again, tobacco innovation was said, Hey, I have 20,000 call center agents that I need to take remote. How do you deliver connectivity and security? Because that call center agent is the bloodline for that business interacting with their end customers. So I think, you know, it is accelerated what would happen over 10 years and 18 months, and it's still unknown, right? So we're still discovering the future. >>There's a, there will be more silver linings to come. I think we'll learn to pick your brain on, on sassy adoption trends. One of the things I noticed in your abstract of your session here was that according to Gardner, the convergence of networking and security into the sassy framework is the most vigorous technology trend. And coming out of 2020, seeing that that's a big description, most vigorous, >>It's a big, big description, a big statement. And, uh, we are definitely seeing it. You know, we saw some of that, uh, in the second half of last year, as the organizations were getting more organized to deal with, uh, the pandemic and the change then coming into this year, it's even more accelerated. And what I mean by that is that, you know, I look at sort of, you know, three things, right? So one is going back to the hybrid work, remote work, work from anywhere, right. So how do you continue to deliver a differentiated experience, highly secure to that workforce? Because productivity, human capital very important, right? The second is that there's a back and forth on the branch transformation. So yes, you know, restaurants are opening back up. Retailers are opening back up. So businesses are thinking about how do I do that branch transformation? And then the third is explosive business IOT. So the IOT end points, do you put into manufacturing, into airports in many industries, we continue to see that. So when you think about sassy and the framework, it's about delivering a, a framework that allows you to protect and secure all of those endpoints at scale. And I think that trend is real. I've seen customer demand, we've signed a number of deals. We're implementing them as we speak across all verticals, healthcare, retail, finance, manufacturing, transportation, government agencies, small businesses, mid-sized businesses. >>Nope, Nope. Not at all. Talk to me about, I'm curious, you've been at, at and T a long time. You've seen a lot of innovation. Talk, talk to me about your perspectives on seeing that, and then what to you think as a silver lining that has come out of the, the acceleration of the last 18 months. >>She and I, I get the question, you know, I've been with at and T long time. Right. And I still remember the day I joined at T and T labs. So it was one of my kind of dream coming out of engineering school. Every engineer wants to go work for a brand that is recognized, right. And I, I drove from Clemson, South Carolina to New Jersey Homedale and, uh, I'm still, you know, you can see I'm still having the smile on my face. So I've, you know, think innovation is key. And that's what we do at, at and T I think the ability to, um, kind of move fast, you know, I think what the pandemic has taught us is the speed, right? The speed at which we have to move the speed at which we have to collaborate the speed at which we have to deliver, uh, to agility has become, you know, the differentiator for all of us. >>And we're focusing on that. I also feel that, uh, you know, there have been times where, you know, product organizations, technology organizations, you know, we struggle with jumping this sort of S-curve right, which is, Hey, I'm holding onto something. Do I let go or not? Let go. And I think the pandemic has taught us that you have to jump the S-curve, you have to accelerate because that is where you need to be in, in a way, going back to the sassy trend, right. It is something that is real, and it's going to be there for the next three to five years. So let's get ready. >>I call that getting comfortably uncomfortable, no businesses safe if they rest on their laurels these days. I think we've learned that, speaking of speed, I wanna, I wanna get kind of your perspective on 5g, where you guys are at, and when do you think it's going to be really impactful to, you know, businesses, consumers, first responders, >>The 5g investments are happening and they will continue to happen. And if you look at what's happened with the network, what at and T has announced, you know, we've gotten a lot of kudos for whatever 5g network for our mobile network, for our wireless network. And we are starting to see that, that innovation and that innovation as we anticipated is happening for the enterprise customers first, right? So there's a lot of, you know, robotics or warehouse or equipment that needs to sort of, you know, connect at a low latency, high speed, highly secure sort of, you know, data movements, compute edge that sits next to the, to the campus, you know, delivering a very different application experience. So we're seeing that, you know, momentum, uh, I think on the consumer side, it is starting to come in and it's going to take a little bit more time as the devices and the applications catch up to what we are doing in the network. And if you think about, you know, the, the value creation that has happened on, on the mobile networks is like, if you think about companies like Uber or left, right, did not exist. And, uh, many businesses, you know, are dependent on that network. And I think, uh, it will carry on. And I think in the next year or two, we'll see firsthand the outcomes and the value that it is delivering you go to a stadium at and T stadium in Dallas, you know, 5g enabled, you know, that the experience is very different. >>I can't wait to go to a stadium again and see it came or live music. Oh, that sounds great. Rubbish. Thank you so much for joining me today, talking about what a T and T is doing with 49, the challenges that you're helping your customers combat at the edge and the importance of really being future. Ready? >>Yes. Thank you. Thank you so much. Really appreciate you having me. Thanks for 49 to invite us to be at this event. Yes. >>Thank you for refresh talk. She I'm Lisa Martin. You're watching the cube at the 40 net championship security summits.

from around the globe it's thecube with digital coverage of exascale day made possible by hewlett packard enterprise welcome everyone to the cube celebration of exascale day ben bennett is here he's an hpc strategist and evangelist at hewlett-packard enterprise ben welcome good to see you good to see you too son hey well let's evangelize exascale a little bit you know what's exciting you uh in regards to the coming of exoskilled computing um well there's a couple of things really uh for me historically i've worked in super computing for many years and i have seen the coming of several milestones from you know actually i'm old enough to remember gigaflops uh coming through and teraflops and petaflops exascale is has been harder than many of us anticipated many years ago the sheer amount of technology that has been required to deliver machines of this performance has been has been us utterly staggering but the exascale era brings with it real solutions it gives us opportunities to do things that we've not been able to do before if you look at some of the the most powerful computers around today they've they've really helped with um the pandemic kovid but we're still you know orders of magnitude away from being able to design drugs in situ test them in memory and release them to the public you know we still have lots and lots of lab work to do and exascale machines are going to help with that we are going to be able to to do more um which ultimately will will aid humanity and they used to be called the grand challenges and i still think of them as that i still think of these challenges for scientists that exascale class machines will be able to help but also i'm a realist is that in 10 20 30 years time you know i should be able to look back at this hopefully touch wood look back at it and look at much faster machines and say do you remember the days when we thought exascale was faster yeah well you mentioned the pandemic and you know the present united states was tweeting this morning that he was upset that you know the the fda in the u.s is not allowing the the vaccine to proceed as fast as you'd like it in fact it the fda is loosening some of its uh restrictions and i wonder if you know high performance computing in part is helping with the simulations and maybe predicting because a lot of this is about probabilities um and concerns is is is that work that is going on today or are you saying that that exascale actually you know would be what we need to accelerate that what's the role of hpc that you see today in regards to sort of solving for that vaccine and any other sort of pandemic related drugs so so first a disclaimer i am not a geneticist i am not a biochemist um my son is he tries to explain it to me and it tends to go in one ear and out the other um um i just merely build the machines he uses so we're sort of even on that front um if you read if you had read the press there was a lot of people offering up systems and computational resources for scientists a lot of the work that has been done understanding the mechanisms of covid19 um have been you know uncovered by the use of very very powerful computers would exascale have helped well clearly the faster the computers the more simulations we can do i think if you look back historically no vaccine has come to fruition as fast ever under modern rules okay admittedly the first vaccine was you know edward jenner sat quietly um you know smearing a few people and hoping it worked um i think we're slightly beyond that the fda has rules and regulations for a reason and we you don't have to go back far in our history to understand the nature of uh drugs that work for 99 of the population you know and i think exascale widely available exoscale and much faster computers are going to assist with that imagine having a genetic map of very large numbers of people on the earth and being able to test your drug against that breadth of person and you know that 99 of the time it works fine under fda rules you could never sell it you could never do that but if you're confident in your testing if you can demonstrate that you can keep the one percent away for whom that drug doesn't work bingo you now have a drug for the majority of the people and so many drugs that have so many benefits are not released and drugs are expensive because they fail at the last few moments you know the more testing you can do the more testing in memory the better it's going to be for everybody uh personally are we at a point where we still need human trials yes do we still need due diligence yes um we're not there yet exascale is you know it's coming it's not there yet yeah well to your point the faster the computer the more simulations and the higher the the chance that we're actually going to going to going to get it right and maybe compress that time to market but talk about some of the problems that you're working on uh and and the challenges for you know for example with the uk government and maybe maybe others that you can you can share with us help us understand kind of what you're hoping to accomplish so um within the united kingdom there was a report published um for the um for the uk research institute i think it's the uk research institute it might be epsrc however it's the body of people responsible for funding um science and there was a case a science case done for exascale i'm not a scientist um a lot of the work that was in this documentation said that a number of things that can be done today aren't good enough that we need to look further out we need to look at machines that will do much more there's been a program funded called asimov and this is a sort of a commercial problem that the uk government is working with rolls royce and they're trying to research how you build a full engine model and by full engine model i mean one that takes into account both the flow of gases through it and how those flow of gases and temperatures change the physical dynamics of the engine and of course as you change the physical dynamics of the engine you change the flow so you need a closely coupled model as air travel becomes more and more under the microscope we need to make sure that the air travel we do is as efficient as possible and currently there aren't supercomputers that have the performance one of the things i'm going to be doing as part of this sequence of conversations is i'm going to be having an in detailed uh sorry an in-depth but it will be very detailed an in-depth conversation with professor mark parsons from the edinburgh parallel computing center he's the director there and the dean of research at edinburgh university and i'm going to be talking to him about the azimoth program and and mark's experience as the person responsible for looking at exascale within the uk to try and determine what are the sort of science problems that we can solve as we move into the exoscale era and what that means for humanity what are the benefits for humans yeah and that's what i wanted to ask you about the the rolls-royce example that you gave it wasn't i if i understood it wasn't so much safety as it was you said efficiency and so that's that's what fuel consumption um it's it's partly fuel consumption it is of course safety there is a um there is a very specific test called an extreme event or the fan blade off what happens is they build an engine and they put it in a cowling and then they run the engine at full speed and then they literally explode uh they fire off a little explosive and they fire a fan belt uh a fan blade off to make sure that it doesn't go through the cowling and the reason they do that is there has been in the past uh a uh a failure of a fan blade and it came through the cowling and came into the aircraft depressurized the aircraft i think somebody was killed as a result of that and the aircraft went down i don't think it was a total loss one death being one too many but as a result you now have to build a jet engine instrument it balance the blades put an explosive in it and then blow the fan blade off now you only really want to do that once it's like car crash testing you want to build a model of the car you want to demonstrate with the dummy that it is safe you don't want to have to build lots of cars and keep going back to the drawing board so you do it in computers memory right we're okay with cars we have computational power to resolve to the level to determine whether or not the accident would hurt a human being still a long way to go to make them more efficient uh new materials how you can get away with lighter structures but we haven't got there with aircraft yet i mean we can build a simulation and we can do that and we can be pretty sure we're right um we still need to build an engine which costs in excess of 10 million dollars and blow the fan blade off it so okay so you're talking about some pretty complex simulations obviously what are some of the the barriers and and the breakthroughs that are kind of required you know to to do some of these things that you're talking about that exascale is going to enable i mean presumably there are obviously technical barriers but maybe you can shed some light on that well some of them are very prosaic so for example power exoscale machines consume a lot of power um so you have to be able to design systems that consume less power and that goes into making sure they're cooled efficiently if you use water can you reuse the water i mean the if you take a laptop and sit it on your lap and you type away for four hours you'll notice it gets quite warm um an exascale computer is going to generate a lot more heat several megawatts actually um and it sounds prosaic but it's actually very important to people you've got to make sure that the systems can be cooled and that we can power them yeah so there's that another issue is the software the software models how do you take a software model and distribute the data over many tens of thousands of nodes how do you do that efficiently if you look at you know gigaflop machines they had hundreds of nodes and each node had effectively a processor a core a thread of application we're looking at many many tens of thousands of nodes cores parallel threads running how do you make that efficient so is the software ready i think the majority of people will tell you that it's the software that's the problem not the hardware of course my friends in hardware would tell you ah software is easy it's the hardware that's the problem i think for the universities and the users the challenge is going to be the software i think um it's going to have to evolve you you're just you want to look at your machine and you just want to be able to dump work onto it easily we're not there yet not by a long stretch of the imagination yeah consequently you know we one of the things that we're doing is that we have a lot of centers of excellence is we will provide well i hate say the word provide we we sell super computers and once the machine has gone in we work very closely with the establishments create centers of excellence to get the best out of the machines to improve the software um and if a machine's expensive you want to get the most out of it that you can you don't just want to run a synthetic benchmark and say look i'm the fastest supercomputer on the planet you know your users who want access to it are the people that really decide how useful it is and the work they get out of it yeah the economics is definitely a factor in fact the fastest supercomputer in the planet but you can't if you can't afford to use it what good is it uh you mentioned power uh and then the flip side of that coin is of course cooling you can reduce the power consumption but but how challenging is it to cool these systems um it's an engineering problem yeah we we have you know uh data centers in iceland where it gets um you know it doesn't get too warm we have a big air cooled data center in in the united kingdom where it never gets above 30 degrees centigrade so if you put in water at 40 degrees centigrade and it comes out at 50 degrees centigrade you can cool it by just pumping it round the air you know just putting it outside the building because the building will you know never gets above 30 so it'll easily drop it back to 40 to enable you to put it back into the machine um right other ways to do it um you know is to take the heat and use it commercially there's a there's a lovely story of they take the hot water out of the supercomputer in the nordics um and then they pump it into a brewery to keep the mash tuns warm you know that's that's the sort of engineering i can get behind yeah indeed that's a great application talk a little bit more about your conversation with professor parsons maybe we could double click into that what are some of the things that you're going to you're going to probe there what are you hoping to learn so i think some of the things that that are going to be interesting to uncover is just the breadth of science that can be uh that could take advantage of exascale you know there are there are many things going on that uh that people hear about you know we people are interested in um you know the nobel prize they might have no idea what it means but the nobel prize for physics was awarded um to do with research into black holes you know fascinating and truly insightful physics um could it benefit from exascale i have no idea uh i i really don't um you know one of the most profound pieces of knowledge in in the last few hundred years has been the theory of relativity you know an austrian patent clerk wrote e equals m c squared on the back of an envelope and and voila i i don't believe any form of exascale computing would have helped him get there any faster right that's maybe flippant but i think the point is is that there are areas in terms of weather prediction climate prediction drug discovery um material knowledge engineering uh problems that are going to be unlocked with the use of exascale class systems we are going to be able to provide more tools more insight [Music] and that's the purpose of computing you know it's not that it's not the data that that comes out and it's the insight we get from it yeah i often say data is plentiful insights are not um ben you're a bit of an industry historian so i've got to ask you you mentioned you mentioned mentioned gigaflop gigaflops before which i think goes back to the early 1970s uh but the history actually the 80s is it the 80s okay well the history of computing goes back even before that you know yes i thought i thought seymour cray was you know kind of father of super computing but perhaps you have another point of view as to the origination of high performance computing [Music] oh yes this is um this is this is one for all my colleagues globally um you know arguably he says getting ready to be attacked from all sides arguably you know um computing uh the parallel work and the research done during the war by alan turing is the father of high performance computing i think one of the problems we have is that so much of that work was classified so much of that work was kept away from commercial people that commercial computing evolved without that knowledge i uh i have done in in in a previous life i have done some work for the british science museum and i have had the great pleasure in walking through the the british science museum archives um to look at how computing has evolved from things like the the pascaline from blaise pascal you know napier's bones the babbage's machines uh to to look all the way through the analog machines you know what conrad zeus was doing on a desktop um i think i think what's important is it doesn't matter where you are is that it is the problem that drives the technology and it's having the problems that requires the you know the human race to look at solutions and be these kicks started by you know the terrible problem that the us has with its nuclear stockpile stewardship now you've invented them how do you keep them safe originally done through the ascii program that's driven a lot of computational advances ultimately it's our quest for knowledge that drives these machines and i think as long as we are interested as long as we want to find things out there will always be advances in computing to meet that need yeah and you know it was a great conversation uh you're a brilliant guest i i love this this this talk and uh and of course as the saying goes success has many fathers so there's probably a few polish mathematicians that would stake a claim in the uh the original enigma project as well i think i think they drove the algorithm i think the problem is is that the work of tommy flowers is the person who took the algorithms and the work that um that was being done and actually had to build the poor machine he's the guy that actually had to sit there and go how do i turn this into a machine that does that and and so you know people always remember touring very few people remember tommy flowers who actually had to turn the great work um into a working machine yeah super computer team sport well ben it's great to have you on thanks so much for your perspectives best of luck with your conversation with professor parsons we'll be looking forward to that and uh and thanks so much for coming on thecube a complete pleasure thank you and thank you everybody for watching this is dave vellante we're celebrating exascale day you're watching the cube [Music]

>> Presenter: From around the globe, it's the cube, with digital coverage of pager duty summit 2020. Brought to you by pager duty. >> Welcome to this cube conversation. I'm Lisa Martin, today talking with Tammy Bryant is a cube alumna, the principal Site reliability engineer at Gremlin and the co-founder and CTO of the Girl Geek Academy. Tammy, it's great to have you on the program again. >> Hi Lisa, thanks so much for having me again. It's great to be here. >> So one of the things I saw in your background 10 plus years of technical expertise, and SRE, and chaos engineering, and I thought chaos engineering, I feel like I'm living in chaos right now. What is chaos engineering and why do you break things on purpose? >> Yep. So the idea of chaos engineering is that we're, breaking systems but in a thoughtful controlled way, to identify weaknesses in systems. So that's really what it's all about. The idea there is, you know, When you're doing really complicated work with technical systems, so like, for example, distributed systems and say, for example, you're working at a bank, it's tough to be able to pinpoint the exact failure mode that could cause a really large outage for your customers. And that's what chaos engineering is all about. you inject the failure proactively, to identify the issues and then you fix them before they actually cause really big problems for customers and you do it during the middle of the day, you know, when you're feeling great, instead of being paged in the middle of the night for an incident, that's actually like causing your customers pain, and making you lose a lot of money. So that's what chaos engineering really is. >> Are you seeing in the last six months since the world is so different, are you seeing an increase in customers? Now with, the for example, Brick and Mortars shut down and everything having to convert to digital if it wasn't already? Is there an increase in demand for chaos engineering services? >> Yeah, definitely. So a lot of people are asking what is chaos engineering, how can I use ,it will it help me reduce my incidents? and definitely because there are a lot of new services that have been rolled out recently, say, for example, curbside pickup. That's a whole new thing that had to be created really recently to be able to handle a large amount of load. And you know, people show up, they want to get their product really fast, 'cause they want to be able to just get back home quickly. And that's something that we've been working on with our customers is to make sure that curbside pickup experience is really great. The other interesting thing that we've been working on because of the pandemic is making sure that banks are really reliable, and that customers are able to get access to their money when they need it. And able to see that information too. And you can imagine that not as when you're in lockdown, and you only can leave your house for maybe an hour a day, you need to be able to quickly get access to your money to buy food, and we've seen some big incidents recently, where that hasn't been the case. Yeah. >> And I can imagine I mean, just thinking of what happened with, everything six months ago and how people were, we are just, demanding, right, consumers were demanding, we expect to get whatever we want, whether it's something we buy on Amazon, something that we stream on Netflix, or whatnot, we have this expectation that we can almost get it in real time. But there was a there was, you know what, there was a delay a few months ago, and there still is to some degree. But companies like Amazon and Netflix, I can imagine, really must have a big focus on chaos engineering, to test these things regularly. And now have proved, I would imagine to some degree that with chaos engineering that they have built, they're built to withstand that. >> Yes, exactly. So our founders at Gremlin came from Netflix and Amazon, our CEO had worked at both where he done chaos engineering, and that's actually why he decided to create Gremlin. It's the first company in the world to offer chaos engineering as a service. And you know, obviously, when you're working somewhere like Netflix, you know the whole product, you have to be able to get access to that movie, that TV show, right in that moment, and also customers expect to be able to see that on for example. There PlayStation in their living room and it should work and there paying for a subscription, So, to be able to keep them on that subscription, you need to offer a great service. Same thing with Amazon, you know, Amazon.com, they've done a lot of chaos engineering work over many years now to be able to make sure that everything is available. And it's not just that, the entire amazon.com is up and running. It's also for example, that when you go and look at a page that the recommendation service works toO and they're able to show you, hey, here's some other things that you might like to get to buy at this time. And I like as as a consumer, I love that 'cause it helps me save time and effort and even money as well 'cause it's giving you some good advice. So that's the type of statement we do. >> Exactly, So. when you're working with customers, I'd love to understand just a little bit from the, like the conversational standpoint is this now, is chaos engineering now, at kind of the sea level or is it still sort of in within the engineering folks 'cause looking at this as a make or break, knowing that for example, Netflix, there's Hulu, there's Disney Plus, there's Apple TV. Plus, if we don't get something that we're looking for right away, there's prime, we're going to go to another streaming service. So are you starting to see like an increase in demand from companies that no, we have competition right behind us, we've got to be able to set up the infrastructure and ensure that it is reliable. Now more than ever. >> Yeah, exactly. That's really, really important. I'm seeing a lot of executives. I mean, I've seen that since the beginning, really, since I first started working at Gremlin. I would often be invited by executives to come and give talks actually, within their company, to help the teams learn about chaos engineering, and I love doing that, It's really great. So I'd be invited by C levels, or VPs, from different departments. And I often get people adding me on LinkedIn from all over the world who are in leadership roles, because really, like, you know, they're responsible for making sure that their companies can hit those critical metrics and make sure that they're able to achieve their really, you know, demanding business goals, and then they're trying to help their teams be able to achieve that, too. So I've actually been so pleased to see that as well. Like it is really cool to have an executive reach out and say, hey, I'm thinking of helping my team, I'd like to get them introduced to you can you come and just teach them about this topic? And I love being able to do that it's really positive. And it's the right way to improve. >> It is, and I think nowadays, with reliability being more important than ever, you know, we talked to leaders from industry, from every industry. And there are certain things right now that are going to be shaping the winners and the losers of tomorrow. And it sounds to me like chaos engineering is one of those things that's going to be fundamental to any type of business to not just survive these times, but to thrive going forward. >> Yes, I definitely think so. I mean, obviously, people can easily just go to a different URL and try and use a different service. And you know, we're seeing now failure across so many different industries. We didn't see that before. But for example, you know, I'm sure you've seen in the news or heard from friends and family about schools, now being completely online. And then kids can't actually access, their calls their resources, what they need to learn every day. So that really just shows you how much it's impacting us as a society, we really know that the internet is critical. It's amazing that we have the internet, like how lucky we are to have this, but it needs to work for us to actually be able to get value out of it. And that's what chaos engineering is all about. You know, were able to make sure that everything is reliable, so it's up and running. And we do that by looking at things like redundancy. So we'll do failover work where we completely shut down an application or service and make sure it gracefully fails over. We also do a lot of dependency failure work, where you're actually looking to say, this is the critical path of this service. And a lot of people don't think about this, but the critical path really starts at sign in. So you need to make sure that login and sign in works really well. It's not just about like the experience once you've signed in, that has to work well all the way through. So actually if you have a good understanding of user experience, it helps you create a much better pathway and understand those critical pieces that the customer needs to be able to do to have a great experience. And I care a lot about that. Like whenever I go and work somewhere, I always read customer tickets, I always try and understand what are the customer pain points. And I love listening to customers and then just solving their problems. The last thing I want them to do is, you know, be complaining or be really annoyed on Twitter because something just isn't working when they need it to be working. And it is really critical these days. It's a the internet is a really serious part of our day to day life. >> Oh, it's a lifeline. I mean, that's, some folks. It's the only way that they're connecting with the outside world, is through the internet. So when things aren't, I had a friend whose son first day of college couple weeks ago, freshman year, first class couldn't get into zoom. And that's a stressful situation. But I imagine too, though, that and I know you're going to be speaking at the pager duty summit that more folks need to understand what this is. And I can tell the you have a real authentic passion for it. Talk to us about what you're going to be talking about at the pager duty summit. >> Sure thing, I'm really excited to be speaking at Pager Duty Summit very soon. My talk is called building, and scaling SRE teams, so site reliability engineering teams. And this is something that I've done previously. I've built out the SRE teams at Dropbox for both databases as well as storage. So block storage, and then I also lead the code workflows team. And that's for, you know, over 500 million users, people accessing the critical data that they store on Dropbox all the time. You know the way that folks use Dropbox is in so many different ways. Maybe it's like really famous music musicians who are trying to create an amazing new album that happens or maybe it's a lawyer preparing for a court case, and they need to be able to access their documents. So those are a lot of customer stories that would come up over time. And prior to that, I worked at the National Australia Bank as well leading teams too and obviously like people care about their money if they can't access their money. If there incorrect transactions, if there are missing transactions, you know, duplicate transactions, maybe people don't mind so much about it you get like a double deposit, but it's still not good from the bank's perspective. So there's all types of different chaos that can happen. And I found it to be really interesting to be able to dive into that and make sure that you can make improvements. And I love that it makes customers happier. And also, it helps you improve your company as a whole. So it's a really good thing to be able to do, And with my talk, I'm going to talk to folks about, you know, not only why it's important to build out a reliability practice at your organization, you know, back in the day, people used to go, why would you need a security team? You know, why would we need that? now everybody has a security team, everyone has a chief security officer as well. But why don't we focus on reliability, like we know that we see incidents out in the news all the time, but for some reason, we don't have the chief reliability officer. I think that's definitely going to be something that will appear in the future just like the chief security officer roll up. But that's what I'm going to talk about there. How you can find site reliability engineers, I'll share a few of my secrets. I won't give any spoilers out. But there's actually quite a few places that you can find amazing people. There's even a school that you can hire them from, which I've done in the past. And then I'll talk to you about how you can interview them to make sure that you get the best people on your team. There are a number of things that I think are very important to interview for. And then once you've got those folks on your team, I'll talk to you about how you can make sure that they're successful. How to set them up for success and make sure that they're aligned to not only your business goals, but also your core values as a company, which is really important too. >> Yeah, that's fantastic. It's very well rounded, I'm curious, what are some of the the characteristics that you think are really critical for someone to become a successful SRE? >> Yeah, so there's a few key things that I look for. One thing is that, somebody who is really good at troubleshooting, so they need to be able to be comfortable with complexity, ambiguity and open ended challenges and problems and also thrive in those types of environments. Because often you're seeing something that you've never seen happen before. And also you're working with really complicated systems. So you just need to be able to feel good in that moment. And you can test for that during an interview question on troubleshooting and debugging. So that's something that I'll go into in more detail. But that's definitely the first characteristic. The other thing, of course, is you want to have someone who is good at being able to build solutions. So they can code, they understand automation, they can figure out how can I take this pain point, this problem? And how can I automate it and then scale this out and make it available for everyone across my organization? So someone who has that mindset of building tools for others, and often they are internal tools, because maybe you're building a tool that helps everybody know, who's on call every single critical service at the company and also non critical service and they can identify that in a minute or less like maybe even just in a few seconds, and then they can quickly get that person involved, if anything need to escalate to them. Via for example, a tool like pager duty, that's really what you want. You want them to be able to think, how can I just make this efficient? How can I make sure that we can get really great results? And yeah, I think they also just need to be really personable too and work well in a really complicated organizational structure. Because usually they have to work with the engineering team, the finance team to understand the revenue impact. They need to be able to work with the PR team and the social media team, if they're incidents, and then they need to provide information about when this incident is going to be resolved, and how they can update VIP customers. They need to talk to the sales team, because what happens if you're giving a demonstration, and then somehow there's an issue, or failure that happens, an incident and then in the middle of your very important sales demo, you're not able to actually deliver it that can happen a lot too. So there are a lot of very important key skills. >> Sounds like it's a really cross functional role, pivotal to an organization, that needs to understand how these different functions not only operate, but also operate together, is that somebody that you think has certain types of previous work experience? Is this something that you talked to the Girl Geek Academy girls about? How did they get into? I'm curious, like what the career path is? >> Yeah, it's interesting, like I find a lot of SRE's often come from either a few different backgrounds. One is they came through the world of Linux and understanding systems, and just being really interested in that. Like deep diving into the kernel, understanding how to improve performance of systems. The other side is maybe they came from coding background where they were actually building applications and features. I started off actually on that side, but I also had a passion for Linux. And then I sort of spread over into the other side and was able to learn both. And then often you know, someone who's comfortable with being on call and handling incidents, but it is a lot of skills, like that's actually something that I often talk to folks about, and they asked me how can I become a great SRE? There's so many things I need to learn. And I just say, you know, take it slow, try and gradually increase your number of skills. People often say that there is like there's some curve for SRE's, where you have the operations side, on one side, and then the coding side on the other. And often like the best person sits right in the middle where they have both ops and engineering skills. But it's really hard to find those people. It's okay if you have someone that's like, really deep, has amazing knowledge of Linux and scaling systems and internet management, and then you can pair them up with a really amazing programmer who's great at software engineering and software architecture, that's okay, too. >> We've been hearing for a long time about this sort of negative unemployment with respect to cyber security professionals. Is that, are you guys falling into that same category as well with SRE? Or is it somehow different or you just know this is exactly what we're looking for? We want to go out there, and even in the Girl, Greek Academy, maybe help girls learn how to be able to find what I imagine are a lot of opportunities. >> Yeah, there are so many opportunities for this. So it's definitely an opportunity because what I see is there's not enough SRE's. So tons of companies all over the world will actually ping me and say, hey, Tommy, how do I hire SRE's, that's why I decided to give this talk because I wanted to package that up and just share that information as to how you can do it. And also, maybe you can't find the SRE's because they don't exist. But you can help retrain your team. So you can have an engineer learn the skills that are required to be an SRE, that's totally possible too, maybe move them over to become an SRE. With girl geek Academy, one of the things that I've done is run hackathons and workshops and just online training sessions to help girls learn these new skills. So that's exactly what our mission is, is to teach 1 million girls technical skills by 2025. And I love to do mentoring at scale, which is why it's been really cool to be able to do it online and through these like workshops and remote hackathons. And I definitely love to do something where else work with some of our customers actually, and run an event. I did one a while back, it was really cool, we were able to have all of the girls come in and be at the customer's office and actually learn skills with the customer, which was really fun. And it helps them actually think, hey, I could work one day that would be really amazing. And I'm going to do that again in November. And it's kind of fun too. We can do things like have like, you know, dad and mom and then daughter day, where you actually bring your daughter to work and help her learn technical skills. That's really fun because they get to see what you do and they understand it more and see how cool chaos engineering really is. Then they think oh, wow, you're so awesome, this is great. >> I love it, that's fantastic. Well it sounds like, like I said before your passion for it is really there. What, I think is really interesting is how you're talking about chaos engineering and just the word in and of itself chaos. But you painted in such a positive lights critical business critical, but also the all the opportunities there that businesses have to learn and fine tune so such an interesting conversation. Yeah, Tammy. We have you back on the program. But I thank you so much for joining me today. And for those folks that lucky enough that are attending the pager duty summit, they're going to get to learn a lot from you. Thank you. >> Thanks so much for having me, Lisa. >> For Tammy Bryant, I'm Lisa Martin. You're watching this cube conversation. (upbeat music)

live from San Francisco it's the cube covering micron insight 2019 brought to you by micron welcome back to San Francisco everybody we're here at Pier 27 the Sun is setting behind the the buildings in San Francisco you're watching the cube the leader in live tech cover jump date Volante with my co-host David Flair we've been here all day covering micron insight 2019 Tommy Vee is here is the senior vice president and general manager of the compute and networking business unit at micron Tama great to see you again great to see you so you got compute and networking two of the big three you're in your business unit there you go but we're gonna talk about 3d crosspoint today but so anyway you know absolutely we're kind of bringing you outside the swimlane or maybe not but tell us about your bu and what's the update yes we you know we sell primarily memory today DRAM although in the future we see 3d crosspoint it's a great opportunity into the the data center you know both traditional servers and the cloud players pcs graphics and networking yes so you get some hard news today why don't we dig into that a little bit we surely haven't covered much of it but okay yeah so I guess you know a couple couple things of interest probably most directly as we we announced our our first 3d crosspoint storage device it's a it's a it's the highest performance SSD in the world and offers compared to other 3d crosspoint based solutions on the market you know anywhere from three and a half to five times the performance on a range of both sequential and random reads and writes two and a half million I ops bandwidth readin right north of nine gigabytes a second and I'm super fast super fast fast and you know similar similar you know a very positive comparisons up against up against me and SSDs ok and so we're excited about that so where's the fit what are the use cases who you're targeting with sure yeah I mean I think you know that one way to think about it is that anytime you introduce a new layer into the memory and storage hierarchy you know historically it was SRAM caches and then it was SSDs going in between dear and rotating media now this is 3d crosspoint sitting in between DRAM and and NAND and and the reason it is a benefit in terms of another layer is it's you know higher density and and greater persistence than DRAM it's greater performance and and you know you can it can cycle greater endurance than the man and and when you do that you do nibble away at either side of that layer so in this case that nibbles away a little bit from DRAM and a little bit from NAND but it grows the overall pie and it's the only player in the industry that provides DRAM 3d crosspoint in and we think that's a great opportunity at some code to the economics cuz it's more expensive than and less expensive than the DRAM higher performance than the traditional flash short lower performance well under the performance of DRAM so yeah I mean so again I think you know the the the you know the benefits like I said is it's it offers greater density and it offers greater persistence than DRAM and so that's the advantage there and it offers much greater performance on things like bandwidth and I ops and much greater endurance than the NAND and certainly our preliminary results are in in applications like databases in certain AI and machine learning workloads and in workloads that that benefit from low latency I think financial service markets is one specific example you know we think there's a good value bro so so a Colombo question if I may yeah so si P would say no throw it throw everything in memory in Hana and of course sell the DRAM and say ok that's ok with us so you mentioned databases how should we think about this relative to in-memory databases sure I mean I think that if if you can afford it and of course it will be more expensive we would love to provide you know our highest density DRAM modules on on the highest end server platforms and you know put put you know you mentioned you know Hana database in the terabytes and terabytes of the RAM that would be great that is is not free if we refer you to do it right exactly and and so if you have the need for that performance that's will do but we we see there's a you know a an attractive range of workloads that cannot afford you know there's a costume that very high-end solution and so this affords something that that gives you know good benefits a database performance but at a slightly more I know you want to jump in go oh yeah sure I compare yourself with Intel which is obviously got the same raw technology they have gone for consumer type obtain [Music] SSDs but they put all their effort into combining it with a DVD or envied him and have combined that with the processor itself and made a combination which is very good for storage controllers yeah so the quest you can very well in in in the SSD much much much more than they have are you looking to go into that and the dim because he obviously you don't have the processes themselves to to to man yeah I mean you know to be clear the you know what we're offering today you know is a product that runs on standard and yeah and via me and while there may in the future be opportunities to further enhance performance with software optimization it runs you know out of the box absolutely without any software optimization and but I do think that you know there are opportunities both to use this technology in you know more of a storage type of configuration and and looking forward there are also opportunities to use it in a memory configuration you know what what what we're announcing today is our is our first storage and with regard to additional products you know stay tuned so if I think about the storage hierarchy you know the the classical pyramid and forget about let's let's focus on the persistent end of that spectrum yeah this is at the tip right is that how we should think about this or not necessarily I mean it is at the storage tip yes but I think we 10 to think a little bit more holistically that you know that that triangle extends from you know from DRAM traditionally to SSDs to rotating and we're now inserting a 3d crosspoint based layer in between and and so from that perspective it is it is the tip of the storage triangle right but it does sit below it does sit below DRAM so in the overall and the reason for my question was sort of a loaded question because if you eliminate the the DRAM piece now you've got that tip sewn and benefits from the volume of consumer thoughts on how you get volume with 3d crosspoint sure you know again I think there are you know at a at a lower performance point you know you can get higher density you know more cost effective storage solutions with that um and we certainly don't see you know NAND going away or we're quite bullish on that you're like man you know it's both a both a SATA and a nvme 96 layer TLC nan based products today so that's that continues to be a major area of investment but you know from a you know from a from a value and opportunity point of view we see a better opportunity you know applying this technology again into this layer in the you know in the in the server or datacenter hierarchy um you know as opposed to what one might be able to do in the consumer space and your OEM say bring it on right I mean they they want this we're talking about the server manufacturers data center yeah I mean I think we're in you know we're in we're in limited sampling with select customers so you know more to say about our go-to-market you know at a at a future date but certainly we we see that there is you know we're we're bullish about the opportunity the marketplace so just asking a question about volume making sure you if you look at the marketplace it's arm has been incredibly successful and it's driven a huge amount of memory and and Nan for yourself then that seems to be where the volume is growing much faster than most other platforms are you looking to use this technology 3d crosspoint as in in in that environment as even memory as in DRAM itself as memory itself at a much lower level I'm just thinking of ways that you could increase volume sure I mean so to be just just to be clear you're talking about what's driven overwhelmingly by by the cell phone market right obviously it's it's proliferating into IOT you know I guess again our our our view of the of the first and best opportunity is in the data center which is still today an x86 dominated world I would say you know in terms of opportunities like I said for you know memory based solutions in the data center um and for how we apply this in other areas you know stay tuned let's talk about this forward next acquisition so it's really interesting to see micron making moves in an AI why the acquisition tell us more about it sure yeah so it's a it's a it's a small small start-up you know handful of players although you know fairly experienced as as I believe sanjay mentioned they're on their their fifth generation of their architecture and so what we've acquired it's both it's both the hardware architecture that currently runs on FPGAs along with the supporting software that supports all the common frameworks the tensorflow is the the PI torches as well as the range of the network architectures you know that that are necessary to support again primarily on the inference side you know are we see the best opportunities in edge in fencing but in terms of what's behind the acquisition first of all there is there's an explosion of opportunity in machine learning we see that in particular on you know on edge inferencing and we feel that in order for us to continue to optimize and develop the best solutions both over all of a deep learning platform that includes memories but also just memories that are best optimized we need to understand you know when you noticed in the workloads we understand the best solutions and and and so that's why we made this acquisition we integrated it with our team that has for some time developed FPGA based adding cards and it's actually the basis of the technology for some of the dialog that used to offer example with OHSU when you talk about edge inferencing we're envisioning this sort of massively scalable distributed system that of course comprises edge you want to bring the compute to the data wherever the data lives obviously don't want to start moving data around now you're bringing a eye to that data which is the data data ai cloud all these superpowers coming together uh-huh so our premise is that the inferencing is going to be done at the edge much much of the data if not most of the data is going to stay at the edge yeah so this is what you're enabling through that integration provision heterogeneous combination of technologies correct I mean you know to use the extreme example that we talked about you know on stage earlier you know CERN has this massive amount of information that comes from the I think it's 40 million collisions a second or I may have my figures wrong and you cannot possibly store nor do you want to transmit that data and and so you you have to be applying AI to figure out what the good stuff is and there's no stream it's exactly and that solution exists in a myriad of applications you know the very you know simplistic one you're not going to send you know the picture of who's at your front door you know to a core data center to figure out if it's somebody in your family yeah you don't want to be doing that maybe not in the camera but certainly a lot closer because you just you know the network simply will not can't handle the capacity all right we got to go but but last word you know what are the takeaways from today what do you want our audience to remember from this event well I think you know I think it's just we continue to build on our memory and storage base to to move up the stack and add values in way that maybe storage subsystems like our our NAND SSD and 3d crosspoint that you know go a little further up the stack in terms of our gaining greater expertise in you know machine learning solutions or or the example with authentic of providing you know a broader solution including key management for how we secure the billions of devices they're gonna be at the edge touching all the bases Tom all right congratulations on all the hard work and it was great to see you again thanks guys Dave and Dave thank you and you keep right there but it will be back to wrap micron insight 2019 right after this short break from San Francisco you watching the cube

>> live from San Francisco celebrating 10 years of high tech coverage. It's the Cube covering Veum World 2019 brought to you by IBM Wear and its ecosystem partners. >> Welcome back to San Francisco. We continue our coverage here. Live on the Cube. 10th year John of covering Veum World This is 29 teens version John for John Wall's Got to have inside the Moscone Center. We're joined now by Varun Chabrol It was the vice president of marketing at Delhi M. C. Good to see you today. >> Thanks for having me. >> How's your week been? So far? >> It's been amazing. How can you don't get excited? All the innovation we're seeing this week >> we'll hear about some big announcements. Do you guys have made? And Moon Young Man Azzedine, who is the vice president of product marketing that for cloud security and works based solutions at Veum wear when you're good to see you. >> Good to see you again. You, By >> the way, you might be the busiest guy here. Yesterday, when you came into the set, you were coming in. Just spoken to 1300 people in a standing room only session You coming out? 500 folks, How many sessions have you done? The seven. So >> you don't count the the one on one with the analyst. And, uh, you know, the customers and partners and press. And tomorrow actually host ah 140 press media analyst on campus in Palo Alto from Asia Pacific because they float all the way from Asia >> plus 140. Yeah, it's a piece of cake. >> Yeah, hose them from 10 to 4. So, I mean, >> you're always smiling >> knowing that this is a pretty wide audience to whom you've been speaking. But just generally, what are you if there's a common thread at all about the kinds of questions that people are coming to you with, or or the concerns or maybe just the things they want to talk about being inspired. But what they're hearing here at the show, >> Okay. Now, according to two aspects of it, one obviously from analysts themselves, you know, they are actually have been very complimentary about the way we've taken our approach. I'm not sure if you could have paid attention. In the last couple of years, we've been talking especially the cloud side, the narrative, to be very much about use cases, solving problems. You know the key? No, we talked about hate my grade modernize. It wasn't about Hey, I've got the next big product here with all these features and capabilities. You do this and that. So we're gonna shifted out narrative. And it was very, you know, the the analyst across the boat. You know, we've been seeing an appreciative of the fact that you actually changing a narrative to be re compelling and we're gonna reflected. And we have some things here like Cloud City, where it's not a standard demo boot. It's a it's ah, Customers walk in and they touch and feel and see which we did it, Adele technology will, too. It's like, What's your business? Probably going through these applications. I'm sitting. I don't know if I should be modernizing them or should be migrating into Amazon. A ridge or so. So you know that narrative the analysts are appreciative off, and that reflects into the customer conversations I've been having in the briefings, like one on one with customers. They're really kind of lost us. D'oh! Hey, I've I'm working in this environment. There's a lot of pressure for me. Thio modernize my applications or go adopt my cloud. First strategy is where do I start? Where do I go? It's like, you know, there's a big pressure, so they just want clarity. I think in the end, everything we're gonna we're doing in our study that comes out obviously the buzzword for this weird world. It stanza, right? And, you know, >> we've won the product announcements was >> actually Brandon can Oh, yeah. Branding announcement, to be honest is yeah, because we're trying to bring together, as you know, in Tansy has landed in Bill Run Manage billed as in you know how our intent to acquire Pivotal Already acquired Big Tommy. How all our different acquisitions with different brand names are coming together to establish our bills portfolio again. The sphere. Everybody knows the sphere Project Pacific P ks. All of those create a good run time, environment and manageability like Adi manage with assets from ve Franta gain morbid Nami and you know it. So this multiple brands that are coming into this package off Iran. So we had a creative tan Xue too, you know, put forward statement together that yes is going to be 78 different brands coming into this, but going forward to stand. >> So so that's a great strategy on De Liam Seaside on Del Technology. Michael Dell was in here and I asked him. I said he could have been number one in everything you could. Let's talk about I'm number one in servers again. You kind of get on HP, little baby. But those air peace parts now. So we've got the cloud game. It's bringing despair it at parts together kind and making it coherent from a positioning standpoint and understandable and deployable. So you guys are going down there. That's your cloud strategy. Take a minute to explain that. >> Yeah, absolutely, John. So So what? What we've been doing. We announced this at Del Technologies will this year. But, you know, in the cloud infrastructure space, we're working very closely with the anywhere too tightly integrate our hardware solutions with their their cloud software. And we think that by combining these two in a tightly integrated joined engineer, jointly engineered solutions coupled with the service, is that you know, both of'em were and l e m c bring the customers we think we have. We're giving customers are very consistent experience both with their own premises, infrastructure with public cloud as well as with the edge cloud. And that's really what we're trying to do. That's what we've been building upon and uniting the announcements this week. You know, just just hopefully show customers that the sky's the limit, whether it's not just your infrastructure management. Also app development. Managing your APS both traditional and and cloud native. It's all here for And >> what's the big takeaway free from your standpoint that you'd like people to know about what's going on? Adele the emcee for the VM. Where relation. What's the big top item? >> Yeah, there's there's there's just so much good Doctor Wait forever drank the town about. If someone rises >> way, only have two hours >> time work. The most important thing that people should should know about it, >> you know, both deli M. C and V. M. R. I think, are very, very customer driven companies that we respond to customer feedback and we try to respond to them very fast. That's been true to our respective lifetimes and what we've done in the so that I think there's two broad areas of collaboration. One is in the cloud space, which is all about, you know, making sure that the the innovation that GM is bringing the market, we're providing that in a toy tightly integrated infrastructure solution. Right. So we announced from a deli in seaside support for Vienna, where p ks being deployed automatically on Vieques trail using VCF return. Our customers can you know, a lot of teams were telling us we have our developers and turning developers banging slash knocking on the door, saying we need to build a cloud. Native applications. You need to give us an environment that we can use. And you know, if if all righty, if these IittIe teams don't turn around and give them something relatively quickly Well, guess what? The developers will go somewhere else, right? Yeah, exactly. So And if you look at the kubernetes environment today, if you really look look at what the work that's required to set up kubernetes and ready infrastructure. So a lot of scripting a lot of manual, you know, work command line interface is testing stuff. And what what? V m r p k s does. And you know what times you will do as well is really makes it easy when we've taken that with the magic of the American Foundation sitting on top of the exhale to make it super easy for our customers to be able to deploy kubernetes ready infrastructure and then have it be ready for scale, right? And then the important thing here also is this is the same infrastructure of the expelling bcf that our customers are using for traditional applications as well, right? Trying to reduce that complexity. Give them the one platform. So this cloud, you know, we had we were doing the same integration on just with R A C I platform, but also with our best to breach storage or we're not working with the C f. And then we're also making investments on data protection like it's so important to be able to manage your data in this multi cloud world. We have applications sitting everywhere, data. We all know that it is a crown jewel. So >> it's really a king validating from the Vienna a point of view. How that works right is is about applications is about the infrastructure, and it's about the operation and it really kind of together as we talk about Han Xue p. K s is giving our customers that Chuy's off. You pick Cuban eighties, you know, environments, application choice. >> Um, >> it took us. Actually, we didn't We didn't arrive it in that order. Wait. Did it. In the outer off Infrastructure Plot Foundation is a critical piece of the joint engineering. But being aware and the Della Bella Technologies is really from aviary perspective. It took Locke Foundation, and that's the stack that runs in every public cloud. So, you know AWS as your G C P 4000 plus, you know, cloud provider partners. But Flat Foundation is a platform that was validated on. They'll take hardware and you know, that's the package. But now, as you see, we're lighting that it's same infrastructure up for traditional and culminated applications. >> I think the app sides important to point out, because if you could ve m wears heritage, you look at Dale's heritage. You had abs that ran on PCs absent, ran on servers, client server. And if you look at the fertilization that wasn't under the covers, apt an innovation that didn't require code changes. So that's the DNA that you guys have. Now, when you think about like cloud to point out which we've been riffing on that concept that's basically enterprise cloud mean donut. Hybrid cloud applications are gonna drive. The value on our premises is that they're going to be customer requirements that traditionally wouldn't have fit in the product. Marketing, management, featureless customs. Gonna define what they want. They'll build it, and then they'll dictate to the infrastructure to make it run. What? We can't do that yet. It'll be, Yes, we cannot be enabled to be dynamics. This is a a new cloud. 2.0, feature. This changes the complete game on suppliers >> completely agree. You know to your point, because, you know, you bring it thio back toward civilization. We've been going higher up the stack on So Day zero virtualization infrastructure will virtual eyes. So the line off abstraction has just been climbing from hardware retort realization next to like, you know, Pat platform of the service, and you kind of were working up our way down infrastructure. Now that base infrastructure platform looks like plants. Right? >> And there were times out a little bit over here. On the upside, you meet in the middle of >> it in the middle >> that is Hello, >> absolutely so ap and at middle wears shrinking down this way. Infrastructures. You know that the cloud incriminating stride in the middle to say, Well, that's a bit of, you know, infrastructure is a Kodak and pull. He's a bit of a AP AP eyes I can can I draw from And that's kind of nice future middleware. But our dad, I >> mean, I think applications air in charge, right? I mean, that's not sure That's the dynamic. That's the way it should be. But it never was that way before is basically the infrastructure was your gating factor. The network exact cloud two points Network security data. Yes, Dev Ops. A true Dev Ops Devane, Ops, Infrastructures Code. >> The only point I wanted to add is the reason the emphasis on abscess change acts in the past. Used to be a business support system after today is business. >> Yeah, I mean, it's >> really or you're you're gonna live or die based on the digital services you provide your customers. The other thing I was going to say about cloud 2.0, is that it's also becoming increasingly clear when we Dr customers that, um, customers are realizing Cloud is not a place right. There was this kind of cloud. One point it was okay. Big honking data centers, hyper skaters will be found now is that customers have gone through that process of and there's a lot more maturity in terms of understanding. What is good, better running on premises. What is what's better running in public Cloud? There's a place for both of them and that, um, and the cloud is actually the automation, the service delivery. It's Maurin operation and a way of being almost than a place. >> And what is it? Well, what does it do for you all? Then, in terms of challenge, especially at your teams, because you talk about all this customization, you're allowing the application to almost drive. You know, you're changing places in terms of who's the power of the relationship? Yes. Oh, me, yeah, How what? What does that do for you? Oh, in terms of how you approach that, how you change of mindset and how you change what you deliver? >> I think John, it's the way I think about it is that both daily emcee in Vienna, or any technology provider that's worth their salt is in the business of building platforms. Right? And platforms are essentially extensible. They're really they really provide a foundation that other people can innovate on top of it. And that's how I think you handled the customers issue. If one thing I think we can all agree on is that I t has always taught us there's no one size fits. All right? Right. So I think providing choice along every single dimension is super important for our >> customers. Yeah, I think that platform thing is a huge point. And I was gonna ask that question before John got jumped in because one of the things that you just brought up was platform is you guys have to build an enabling platform. One as suppliers. Okay, The successful cloud to point out cos are ones that are innovating in weird areas. Monitoring, for instance, they who will have thought that monitoring now observe ability would be such a massive, lucrative sector four. I pose M and A Why? Because it's data. It's instrumentation. This is operating system kind of thinking here is like network. So thinking like a platform on the supplier size one, the customers got to start thinking like a platform because their stakeholders air their internal developers or a P I shipping to suppliers. This is new for enterprises. This is news requires full hybrid capability. This requires date at the center of the value proposition. >> That's again the biggest value is business and I tr coming together on the area of applications and data. Yeah, that's starting up giving because the successful businesses are the ones who leveraged. Those guys have failed in the future, or the ones who don't pay attention to how critical applications are to the business logic and how critical data is to be able to mine and get the behavioral analytics to get ahead. And >> now the challenge in all this. But I'm learning and covering some of the public sector activity from the C I. A contract Jedi with Amazon to we had Raytheon Her here earlier is another customer example with another client is that procurement? And how they do business is not just a technical thing. There's like all this old legacy, things like, How do you procure technology, who you hire her and we hire developers? We build our own stack, so there's a lot of things going on. >> Yes, and you know, it's really interesting on the even on the procurement front, how our customers experience with Cloud has changed expectations, right, And that's really what we're doing with the McLaren DMC is what customers told us is, Hey, I love the agility of the cloud portal based access. Easy procurement. I love just being able to click a button and not have to navigate all this complexity. I need that for my own premises infrastructure. Imagine FRA structure. And that's, you know, in an example, while all of these dynamics are really all converging, >> well, if you can create abstraction, layer on a level of complexity and make things easy, simple and affordable, that's good business. Model >> one of our customers without taking the name right. The massive retailer you know they're spinning up, um, the retail outlets like crazy. They measure success in This was one truck roll, so they wanna have the entire infrastructure come into stand up one of the retail outlets in one truck roll. When everything comes in one button push that everything gets in a provision and up together. >> So that means I gotta have full software instrumentation automation Got intelligence. This is kind of where cloud 2.0, will lead us all >> likely. And that's expectation now that they go so fast and deploying this one Truck roll Hardware's there. Switch it on from the cloud it stood up and they're in operation 24 hours. >> Well, guys, we're going to get you on our power panels in our Palace of studio on this topic cloudy. But it's gonna be very aggressive and controversial topic because it's going to challenge the status quo. And that's really what this we're talking about >> that's in our DNA. >> And the good news is that that's more time with John. >> So as we before, we say so long, we've talked about clients. We talked about the folks you bet here. We talked about the presentation on this thing and what they're all getting out of it. What are you getting out of this? I mean, what are your takeaways? As you had back to your respective work orders, you get first. Okay? >> I think for me the biggest takeaway is just how incredibly vibrant via more user communities. I mean, it is unlike anything else I've seen before and now with the things like Project Pacific. I just feel like it's It's an opportunity for this community to be able to take the skills they have right now and actually go into this brave new world of containers with so much help forces having to do this all by yourself. Which means it's gonna be, you know, if you think about how largest community is, think about how much innovation this will spore in the container space and because of that in the application space and then because of that in business is I mean, this is a It just feels like a tipping point for me >> to me. Sure, I got high fives from every tech geek, you know, when we came out, you know, I also on our technical advisory boats for the company that these are the hot core geeks who were followed and you know us to the, you know, these were the fans and they were like, you know, they always kind of like if you walk out of them and you talk to them and they, uh how did it work? Because they my bar, you have a very high bar. They cut through all your marketing messaging. They go right to the hay. Is there meet in this And the high fives? I got the hajj. I got out. This is like, guys, you're nailing it. That's enough to tell me that a This is, like, 10 years ago. Yeah, that body. It's like you're so busy. I'm still smiling because the energy is I >> can't give you a hug. Give me a high five. Right. Good work, gentlemen. Thanks for the time. Always, he's still smiling to >> get you to a step. >> Good deal. Thanks for being with us. Thank you. Live on the Cube. You're watching our coverage in world 2019. Where? San Francisco. Back with more. Right after this.

>> live from Boston, Massachusetts. It's the Cube covering A W s reinforce 2019 brought to you by Amazon Web service is and its ecosystem partners. >> Hey, welcome back, everyone to Cubes. Live coverage here in Boston, Massachusetts for eight of us reinforced Amazon Web service is inaugural event around Cloud Security. I'm Jeffrey Day Volante. Two days of coverage. We're winding down Day two. We're excited to have a year in The Cube Special guest, part of Big and that one of the big announcements. Well, I think it's big. Nerdy Announcement is the automated reasoning. Byron Cook, director of the Automated Reasoning Group within AWS. Again, this is part of the team that's gonna help figure out security use automation to augment humans. Great to have you on big part of show here. Thanks very much to explain the automated reasoning group. Verner Vogel had a great block post on All things distributed applies formal verification techniques in an innovative way to cloud security and compliance for our customers. For our own there's developers. What does that mean? Your math? >> Yeah, let me try. I'll give you one explanation, and if I puzzle, you all try to explain a different way. 300 So do you know the Pythagorean Theorem? Yeah, sure, Yeah. So? So that the path I agree in theory is about all triangles that was proved in approximately B. C. It's the proof is a finite description in logic as to why it's true and holds for all possible triangles. So we're basically using This same approach is to prove properties of policies of networks of programs, for example, crypto virtualization, the storage, et cetera. So we write software. This finds proofs in mathematics and this the proofs are the same as what you could found for thuggery and should apply into >> solve problems that become these mundane tasks of checking config files, making sure things are that worries kind of that's I'll give you an example. So so that's two in which is the T. L s implementation used, for example, in history. But the large majority >> of AWS has approximately 12,000 state holding elements, so that with if you include the stack of the heat usage, so the number >> of possible >> states it could reach us to to the 12,000. And if you wanted to show that the T. L s handshake Implementation is correct or the H Mac implementation is correct. Deterministic random bit generator implementation is correct, which is what we do using conventional methods like trying to run tests on it. So you would need, if you have, like, 1,000,000 has, well, microprocessors and you would need many more lifetimes in the sun is gonna admit light at 3.4 $4,000,000,000 a year to test to exhaustively test the system. So what we do is we rather than just running a bunch of inputs on the code, we we represent that as the mathematical system and then we use proof techniques, auto automatically search for a proof and with our tools, we in about 10 minutes or able to prove all those properties of s two in the way of your intimidates. And then we apply that to pieces of s three pieces of easy to virtual ization infrastructure on. Then, uh, what we've done is we've realized that customers had a lot of questions about their networks and their policies. So, for example, they have a complicated network worldwide different different availability zones, different regions on. They want to ask. Hey, does there exist away for this machine to connect to this other machine. Oh, are you know, to do all this all SS H traffic coming in that eventually gets to my Web server, go through a bastion host, which is the best, best practice. And then we can answer that question again, using logic. So we take the representation that semantics of easy to networking the policy, the network from the customer, and then the question we're asking, expressing logic. And we throw a big through their call ifthere improver, get the answer back. And then same for policy. >> So you're analyzing policies, >> policies, networks, programs, >> networks, connections. Yeah, right. And it to the tooling is sell cova. Eso >> eso eso basically way come with We come with an approach and then we have many tools that implement the approach on different, different problems. That's how you apply Volkova all underneath. It's all uses of a kind of tool called SMT inside. So there's a south's over, uh, proves theorems about formula and proposition. A logic and SMT is sat modular theories. Those tools can prove properties of problems expressed in first order logic. And so what we do is we take the, for example, if you have a question about your policies answering, answering semantic level questions about policies is actually a piece space problem. So that's harder than NP complete. We express the question in logic and then call the silvery and they get their answer back on Marshall it back. And that's what Volkova does. So that's calling a tool called CVC four, which is which is an open source. Prove er and we wenzel Koval. We take the policy three question encoded to logic. Call a Silver and Marshall answer back. >> What's the What's the root of this? I mean, presumably there's some academic research that was done. You guys were applying it for your specific use case, But can you share with this kind of He's the origination of this. >> So the first Impey complete problem was discovered by a cook and not not me. Another cook the early seventies on. So he proved that the proposition a ll satisfy ability problem is impeccably and meanwhile, there's been a lot of research from the sixties. So Davis and Putnam, for example, I think a paper from the mid sixties where they were, we're trying to answer the question of can we efficiently solved this NP complete problem proposition will satisfy ability on that. Researchers continue. There have been a bunch of breakthroughs, and so now we're really starting to see very from. There's a big breakthrough in 2001 on, then some and then some further breakthroughs in the 5 4008 range. So what we're seeing is that the solvers air getting better and better. So there's an international competition of Let's Save, usually about 30 silvers. And there's a study recently where they took all of the winners from this competition each year 2001 5 4008 30 2002 to 2011 and compared them on the same bench marks and hardware, and the 2002 silver is able to solve 1/4 of the benchmarks in the 2011 solved practically all of them and then the the 2019 silvers, or even better. Nowadays they can take problems and logic that have many tens of millions of variables and solve them very efficiently. So we're really using the power of those underlying solvers and marshaling the questions to those to those overs, codifying thinking math. And that's the math. The hour is you gave a talk in one sessions around provable security. Kind of the title proves provable. >> What's what is that? What is that? Intel. Can you just explain that concept and sure, in the top surfaces. So, uh, uh, >> so mathematical logic. You know, it's 2000 years old, right? So and has refined Sobule, for example, made logic less of a philosophical thing and more of a mathematical thing. Uh, and and then automated reasoning was sort of developed in the sixties, where you take algorithms and apply algorithms to find proofs and mathematical logic. And then provable security is the application of automated reasoning to questions and security and compliance. So we you wanna prove absence of memory, corruption errors and C code You won't approve termination of of event handling routines that are supposed to handle security events. All of those questions, their properties of your program. And you can use these tools to automatically or uh oh, our find proofs and then check The proofs have been found manually. That's what that's >> where approvable security fix. What was the makeup of the attendee list where people dropping this where people excited was all bunch of math geeks. You have a cross section of great security people here, and they're deep dive conversations Not like reinvent this show. This is really deep security. What was some of the feedback and makeup of the attendees? >> Give you two answers because I actually gave to talks. And the and the answers are a little bit different because the subject of the talk So there was one unprovable security, which was a basically the foundation of logic And how we how Cheers since Volkova and our program, because we also prove correctness of crypto and so on. So those tools and so that was largely a, uh uh, folks who had heard about it. And we're wanting to know more, and we're and we're going to know how we're using it and trying to learn there was a second talk, which was about the application of it to compliance. So that was with Tomic, Andrew, who is the CEO of Coal Fire, one of the third party auditors that AWS uses in a lot of customers used and also Chad Wolf, who's vice president of security, focused on compliance. And so the three of us spoke about how we're using it internally within eight of us to automate, >> uh, >> certification compliance, sort of a commission on. So that crowd was really interesting mixture of people interested in automated reasoning and people interested in compliance, which are two communities you wouldn't think normally hang together. But that's sort of like chocolate and peanut butter. It turns out to be a really great application, >> and they need to work together to, because it is the world. The action is they don't get stuck in the compliance and auditing fools engineering teams emerging with old school compliance nerds. So there's a really interesting, uh, sort of dynamic to proof that has a like the perfect use casing compliance. So the problem of like proving termination of programs is undecided ble proving problems and proposition a logic is np complete as all that sounds very hard, difficult and you use dearest six to solve this problem. But the thing is that once you've found a proof replaying, the proof is linear and size of the proof, so actually you could do extremely efficiently, and that has application and compliance. So one could imagine that you have, for example, PC I hip fed ramp. You have certain controls that you want to prove that the property like, for example, within a W s. We have a control that all data dressed must be encrypted. So we are using program verification tools, too. Show that of the code base. But now, once we've run that tool that constructs a proof like Euclid founded the sectarian serum that you can package up in a file hand to an auditor. And then a very simple, easy to understand third party open source tool could replay that proof. And so that becomes audit evidence. It's a scale of total examples >> wth e engineering problem. You're solving a security at scale. The business problem. You're solving it. Yeah. His customers are struggling. Just implementing There just >> aren't enough security professionals to hire right? So the old day is, the talk explains. It's out there all on YouTube's. The people watching the show can go check it out. But I am by the way I should I should make a plug for if you Google a W s provable security. There's a Web page on eight of us that has papers and videos and lots of information, so you might wanna check that out. I can't remember what I was answering now, but >> it's got links to the academic as >> well. Oh, yes. Oh, yes. That was the point that Tommy Kendra is pointing out, as in the old days, you would do an audit would come in to be a couple minutes box that we win this box. You check a few things to be a little network. Great. But now you have machines across the world, extremely complex networks, interaction between policies, networks, crypto, etcetera. And so there's There's no way a human or even a team of human could come in and have any reasonable chance of actually deeply understanding the system. So they just sort of check some stuff and then they call it success. And these tools really allow you to actually understand the entire system buyer and you guys doing some cutting edge work, >> folks watching and want to know how math translates into the real world with all your high school kids out their parents. This is stuff you learn in school like you could be played great work. I think I think this is cutting edge. I think math and the confidence of math intersects with groups. The compliance example audited example shows that world's gonna come together with math. I think this is a big mega trend. It's gonna not eliminate the human element. It's going augment that so great stuff, its final question just randomly. And while you're here, since your math guru we're always interested, we always covering our favorite topic of Blockchain, huh? We believe that a security conference is gonna soon have a Blockchain component because because of the mutability of it, there's a lot of math behind it. So as that starts to mature certainly Facebook entering him at their own currency. Whole nother conversation you don't want to have here is bring a lot of attention. So we see the intersection of security being a supply chain problem in the future. Your thoughts on that just generally. So So the problem of proving programs is undecided, and that means that you can't build a general solution. What you're gonna have to do is look >> for niche areas like device drivers, networks, policies, AP, I used to dream crypto et cetera, and then make the tools work for that area, and you will have to be comfortable with the idea that occasionally the tools aren't gonna be able to find an answer. And so the Amazon culture of being customer obsessed and working as closely as possible with the customer has been really helpful to my community of of logic, uh, full methods, practitioners, because they were really forced to work with a customer, understand the problem. So what I've been doing is listening to the customer on finding out what the problems with concerns. They are focusing my attention on that. And I haven't yet heard of, uh, of customers asking for mathematical proof on crypto currency Blockchain sorts of stuff. But I'm I I await further and you're intrigued. Yeah, I'm s I always like mathematics, but where we have been hearing customers asked for help is for Temple. We're working on free Our toss s o i o T applications Understand the networks that are connecting up the coyote to the cloud, understanding the correctness of machine learning. So why, why So I reused. I've done some machine learning. I've constructed a model. How do I know what it does? And is it compliant? Does it respect hip fed ramp PC, i et cetera, and some other issues like that. >> There's a lot of talk in the industry about quantum computing and creating nightmares for guys like you. How much thought given that you have any thing that you can share with us? >> Yes. Oh, there's there's work in the AWS crypto team preparing for the post quantum world. So imagine Adversary has quantum computer. And so there are proposals on eight of us has a number of proposals, and we've and those proposals have been implemented. So their standards and we've our team has been doing proof on the correctness of those. So, actually, in the one of my talks, I think the talk not with Chad and Tom. I show a demo of our work to prove the correctness of someplace quantum code. >> So, Byron, thank you for coming on the inside. Congratulations on the automated reason. Good to see it put in the practice and appreciate the commentary. Thank you very much. Thank you. Here for the first inaugural security cloud security event reinforced AWS is putting on cube coverage. I'm John Fairy with Day Volonte. Thanks for watching

(upbeat music) >> Welcome to this special Cube Conversation. We're here in Palo Alto, California with a special guest. Dialing in remotely Paul Martino, the founder of Bullpen Capital and also the producer of an upcoming film called The Inside Game. It's a story about a true story about an NBA betting scandal. It's really, it's got everything you want to know. It's got sports, it's got gambling, it's got fixing of games. Paul Martino, known for being a serial entrepreneur and then an investor, investing in some great growth companies, and now running his own firm called Bullpen Capital, which bets on high-growth companies and takes them to the next level. Paul, great to see you. Thanks for spending the time. Good to see you again. >> John, always good to see you. Thanks for having me on the show. >> So, you're a unique individual. You're a computer science whiz, investor, entrepreneur, now film producer. This story kind of crosses over your interests. Obviously in Philly, you're kind of like me, kind of a blue collar kind of guy. You know hot starters when you see it. You also were an investor in a lot of the sports, gambling, betting, kind of online games, we've talked about in the past. But now you're crossing over into filming movies. Which is, seems like very cool and obviously we're living in a date of digital media where code is software, code is content, obviously we believe that. What's this movie all about? All the buzz is out there, Inside Game. You get it on sports radio all the time. Give us the scoop. Why Inside Game? What's it about? Give us the 411. >> Yeah, so John, I mean, this is a story that picked me. My producing partner in this is a guy named Michael Pierce who made a bunch of great movies, including The Cooler, one of the best gambling movies, with William H Macy. And he says sometimes the movie picks you and sometimes you pick the movie. And I wasn't sitting around one day going wow I want to be a movie producer, it was just much more that my cousin is the principal in the story. My cousin was the go-between between the gambler and the referee. The three of them were friends ever since they were kids. And when they all got out of jail Tommy called me, Tommy Martino. He said hey Paulie, you're about the only legitimate business guy I know. Could you help me with my life rights? And that's how this started almost six years ago. >> And what progressed next? You sat down, had a couple cocktails, beers, said okay here's how we're going to structure it. Was it more brainstorming and then it kind of went from there? Take us through that progression. >> It was a pure intellectual property exercise, and this is where being a startup guy was helpful. I was like, Tommy, I'll buy your life rights. Maybe we'll get a script written, we'll put it on the shelf, so that if anybody ever wants to make this story they have to go through us. Almost like a blocking patent or a copyright. And he's like okay cool. And so I said I have no delusions of ever making this movie. I actually don't know that, I don't know anybody to make a movie. This is not my skill set. But if anybody ever wants to make the movie, they're going to have to come deal with us. And then the lucky break happens, like anything in a startup. I have this random meeting with a guy named Michael Pierce, who was at a firm called WPS Challenger out of London. And we're down in Hillstone in Santa Monica, and I say to him, I say I've got this script written about this NBA betting scandal, would you do me a favor? He literally laughs in my face. He goes a venture guy from Silicon Valley is going to hand me a script. What a bad, anyway, I was like look dude, I'm a good guy to have owe you a favor so just read this dang thing. About 8 hours later my phone rings, he says who the hell is Andy Callahan? This is the best script I've ever read in my entire life. Let's go make a movie. Andy Callahan was a friend of a friend from high school who wrote the script. He actually once beat Kobe Bryant when he was a center at Haverford when Kobe Bryant played at Lower Merion here in the Philly suburbs. So, it's kind of this local Philly story. I'm a local Philly blue collar guy, we put the pieces together, and I'll be danged and now six years later the film is in the can and you're probably going to see it during the NBA finals this year in June. >> All right, so there's some news out there it's on the cover on ESPN Magazine, the site is now launched. I've been hearing buzz all morning on this in the sports radio world. A lot of buzz, a lot of organic virality around it. Reminds of the Crazy, Rich Asians, which kind of started organically, similar kind of community behind it. This has really got some legs to it. Give us some taste of what's some of the latest organic growth here around the buzz. >> Yeah so, think about this. This happened in, primarily '06 and '07. They were sentenced in 2010 and were in jail in 2011. It is 2019 and the front page story on ESPN is What Tim, Tommy, and Jimmy Battista Did. Those were the three guys, the gambler, the ref, and the go-between. And this is a front page story on ESPN all these years later. So we know this story has tremendous legs. We know this movie has a tremendous built-in audience. And so now it's just our job to leverage all those marketing channels, places we pioneered, like Zynga and FanDuel to get people who care about the story into the theaters. And we're hoping we can really show people how to do a modern way to market a film using those channels we've pioneered at places like FanDuel and Zynga. >> You and I have had many conversations privately and here on the Cube in the past around startups disruption, and it's the same pattern right? No one thinks it's a great idea, you get the rights to it, and you kind of got to find that inflection point, that magical moment which comes through networking and just hard work and hustle. And then you've got everything comes together. And then it comes together. And then it grows. As the world changes, you're seeing digital completely change the game on Hollywood. For instance, Netflix, you've got Prime, you've got Hulu. This is, essentially, a democratization, I'm not saying, well first of all you've made some money so you had some dough to put into it, but here's a script from a friend. You guys put it together. This is now the new startup model going to Hollywood. Talk about that dynamic, what's your vision there? Because this, I think, is an important signal in how digital content, whether it's guys in the Cube doing stuff or Cube Studios, which we'll, we have a vision for. This is something that's real. Talk about the dynamic. How do you see the entrepeneurial vision around how movies are made, how content's made, and then, ultimately, how they're merchandised in the future. >> Right, there's a whole, there's a whole bunch of buckets. There's the intellectual property bucket of the story, the script, etc. Then there's the bucket of getting the movie made. You know, that's the on the set and that's the director and that's post-production, and then there's the marketing. And what was really interesting is even though I'd never made a movie, two of those three buckets I knew a tremendous amount about from my experience as a startup investor. The marketing and the IP side I understood almost completely, even though I'd never made a film. And so all of the disruptive technologies that we learn for doing disruptive things like marketing a new thing called Daily Fantasy Sports, we were able to bring to bear to this film. Now, I had fun on the set and meeting all the actors, etc. But I had no delusion that I knew about the making of the movie part. So I plead ignorance there, but of the three buckets that you need to go make something in the media space 66% of what I knew as a startup guy overlapped and I think this is what the future of the media is. Because guys like me and you, John, we actually know a lot about this because we're startup people as opposed to we have to learn about it in terms of how to market and how to get an audience. I mean, my last company Aggregate Knowledge designs custom audiences for ad targeting. So we know how to find gamblers to go see this movie. That's literally the company I started. And so that's a thing that I'm very, very comfortable with and it's exciting to then work with the producer who did the creative and the director and I say hey guys, I've got this marketing thing under control, I know how to do it, oh by the way, the old Head of Marketing from FanDuel, he's a consultant to the project. Right, so, we got that. >> You got that, and the movie's being made. That's also again, back to entrepreneurship, risk. You got to take risks, right? This is all about risk management at the end of the day and you know, navigating as the lead entrepreneur, getting it done, there's heavy lifting and costs involved in making the movie, >> Right >> How did you, that's like production, right? You got to build a product. That is ultimately the product when it has to get to market. How did that go, what's your thoughts on your first time running a movie like this, from a production standpoint, learnings, observations? >> I learned a tremendous amount. I must admit, I was along for the ride on that piece of the puddle, puzzle. The product development piece of this was all new to me. But then again, I mean think about it, John, I started four companies, a social network, an ad targeting company, a game company, and a security company. I didn't know anything about those four companies when I started them either in terms of what the product needed to do. So learning a new product called make a movie was kind of par for the course, even though I didn't really know anything about it. You know, if you're going to be a startup person you got to have no fear. That's the real attribute you need to have in these kinds of situations. >> So I got to >> And so, witnessed that first-hand and, you know what, now, if I ever make a movie again I kind of know how to make that product. >> Yeah, well looking forward. You've got great instincts as an entrepreneur. I love hanging out with you. I got to ask you a question. I talk to a lot of young people, my son and his friends and I see people coming out of business school, all this stuff. You know, every college has an entrepreneurial program. Music, film, you know, whatever, they all have kind of bolted on entrepreneurship. You're essentially breaking down that kind of dogma of that you have to have a discipline. Anyone can do this, right? So talk about the folks that are out there, trying to be entrepreneurial, whether you're a musician. This is direct to consumer. If you have skills as an entrepreneur it translates. Talk about what it takes to be an entrepreneur, if you're a musician or someone who has, say, content rights or has content story. What do they do? What's your advice? >> We have lived through, perhaps the most awesome period of the last five to 10 years, where it got cheap to do a startup. You know, when we're doing our first startups 20 years ago, it cost 5 million bucks to go get a license from Oracle and go hire a DBA and do all that stuff. You know what, for 5 grand you can get your website up, you can build, you can use your iPhone, you can film your movie. That's all happened in the last five to 10 years. And what it's done is exactly the word you used. It's democratized who can become an entrepreneur. Now people who never thought entrepreneurship was for them, are able to do it. One of our great examples of this is Ipsy, our cosmetics company. You know, Michelle Phan was a cocktail waitress working in Florida, but she had this YouTube following around watching her videos of her putting her makeup on. And you know when we met her, we're like you know what? You're the next generation of what entrepreneurs look like. Because no, she didn't go to Stanford. She didn't have a PhD in computer science, but she knew what this next generation of content marketing was going to look like. She knew what it was to be a celebrity influencer. You know, that company Ipsy makes hundreds of millions of dollars every year now, and I don't think most people on Sand Hill would've necessarily given Michelle the chance because she didn't look like what the traditional entrepreneur looked like. So it's so cool we live in a time where you don't need to look like what you think an entrepreneur needs to look like or went to the school you had to think you'd go to to become an entrepreneur. It's open to everybody now. >> And the key to success, you know, again, we've talked about those privately all the time when we meet, but I want to get your comment on the record here. But I mean, there's some basic blocking and tackling that's independent of where you went to school that's being creative, networking, networking, networking, you know, and being, good hustle. And being, obviously good judgment and being smart. Do your thoughts on the keys to success for as those folks saying hey you know I didn't have to go to these big, fancy schools. I want to go out there. I want to test my idea. I want to go push the envelope. I want to go for it. What's the tried and true formula from your perspective? >> So when you're in the early stage of hustling and you want to figure out if you're good at being an entrepreneur, I tell entrepreneurs this all the time. Every meeting is a job interview. Now, you might not think it's a job interview, but you want to think about every meeting, this might be the next person I start my company with. This might be the person I end up hiring to go run something at my company. This might be the person I end up getting money for, from to start my company. And so show up, have some skills, have some passion, have a vision, and impress the person on the other side of the table. Every once in a while I get invited to a college and they're like well Paul, life's easy for you, you started a company with Mark Pinkus and you're friend with Reid Hoffman and this... Well how the hell do you think I met those people? I did the same thing I'm telling you to do. When I was nobody coming out of school, I went and did stuff for these guys. I helped them with a business plan. I wrote the code of Tribe, and then now all of the sudden we've got a whole network of people you can go to. Well, that didn't happen by accident. You had to show up and have some skills, talent, and passion and then impress the person on the other side of the table. >> Yeah >> And guess what? If you do that enough times in a row, you're going to end up having your own network. And then you're going to have kids come in and say, wow, how can I impress you? >> Be authentic, be genuine, hustle, do networking, do the job interview, great stuff. All right, back to final point I want to get your thoughts on because I think this is your success and getting this movie out of the gate. Everyone, first, everyone should go see Inside Game. Insidegamemovie.com is the URL. The site just went up. This should be a great movie. I'm looking forward to it, and knowing the work that went in, I followed your journey on this. It should be great. I'm looking forward to seeing it. Uh, digital media, um, your thoughts because we're seeing a direct to consumer model. You've got the big companies, YouTube, Amazon, others. There's kind of a, a huge distribution of those guys. The classic Web 2.0 search kind of paradigm and portal. But now you've got a whole 'nother set of distribution or network effects. Your thoughts, because you were involved in, again, social networking before it became the monster that it is now. How is digital media changing? What's your vision of how that's happening and how does someone jump on that wave and be successful? >> Yeah, we're in the midst of disruption. I mean, I'm in the discussions and final negotiations right now on how we're going to end up ultimately doing the film distribution. And I am very disappointed with the quality of the thinking of the people on the other side of the table. Because they come from very traditional backgrounds. And I'm talking to them about, I want to do a site takeover across Zynga. I want to do a digital download on FanDuel of a 20 minute clip of the film. And they're like what's FanDuel? Who's Zynga? And I'm sitting there, I'm like guys, this is the new media. Oh, by the way, there's a sports app called Wave and Wave is where the local influencers in the markets who want to write the stories are, and we want to do a deal with those guys. And oh, by the way, the CEO of that company is a buddy of mine I met years ago, right? One of those kids I gave advice to, and now I'm going to ask him for a favor from, right, that's how it works. But, it's amazing when you have these conversations with traditional old line media companies. They don't understand any of the words coming out of your mouth. They're like Paul, here's how much I'll give you for your film. Thank you, we'll go market it. I'm like, really? Seriously? I got the former CMO of FanDuel going to help out on this. You don't want to talk to him? >> Yeah >> And so this is where the industry is really ripe for disruption. Because the people from the startup world have already disrupted the apple cart and now we've just got to demonstrate that this model is going to continue to work for the future and be ready when the next new kind of digital transmedia thing comes along and embrace that, as opposed to be scared to death of it or not even know how to talk the language of the people on it. >> Well, you're doing some amazing venturing in your, kind of, unique venture capital model on Bullpen Capital. Certainly isn't your classic venture capital thing, so I'm sure people are going to be talking to you about oh, Paul, are all VCs going to be doing movies? I'm sure that's a narrative that's out there. But you're not just a normal venture capital. You certainly invest. So, venture capitals have reputation issues right now. People talk about, well, you know, they're group think. You know, they only invest in who they see themselves. You mentioned that comment there. The world's changing in venture. Your thoughts on that, how you guys started your firm, and your evolution of venture capital. And is this a sign that you'll see venture capitalists go into movies? >> Well, I don't know about that part. There have been a couple venture people who have done movies. But the part I will talk about is the you got to know somebody, it's an inside game, ha ha, we'll play double entendre on Inside Game here. You know, 20% of the deal we've done at Bullpen, we've done over 100. 20% of them were cold emails on something like LinkedIn or business plans at bullpen.com. 20%, now there's this old trope in venture if you don't get a warm intro I won't even talk to you. Well 20% of our deals came in and we had no idea who the person on the other side was. That's how we run the firm. And so if you're out there going I'm one of those entrepreneurs in the Midwest and no one, I don't know anyone. I'm not in a network, send me a plan. I'm someone who's going to look at it. It doesn't mean I'm going to be an investor, but you know what I'm going to do? I'm going to give you a shot. And I don't care where you're from or what school you went to or what social clique you're in or what your political persuasion is. Matter of fact, I literally don't care. I'm going to give you a shot. Come into my office and that, I think, is what was missing in a lot of firms, where it's a we only do security and we only look at companies that spun out of Berkeley and Stanford. And yeah, there can be an old boys network in that. But you know what, we like to talk to everybody. And the more blue collar the CEO is, the more we love them at Bullpen. >> That's awesome. Talk about the movie real quick on terms of how Hollywood's handling it. Um, expectations, in terms of reaction, was it positive, is it positive, what's the vibe going on in Hollywood, is this going to be a grassroots kind of thing around the FanDuels and your channels? What's your plan for that and what's the reaction of Hollywood? >> So it's going to be a lot of all of the above. But PR is going to be a huge component, I mean, part of the reason we're on today is there's a huge front page story on ESPN about Tim Donaghy and the NBA betting scandal of 2007. And so the earned media is going to be a huge component of this. And I think this is where the Hollywood people do understand the language we're speaking. We're like, look, we have a huge built-in audience that we know how to market to. We have a story. Actually, in the early days, you asked about risk? Back when I was thinking about if I would do this project I would do the following little market research. I'd walk into a sports bar, it didn't matter what town I was in. I could be in Dallas, I could be in Houston, I could be in Boston. I would literally walk up to the bar and say, hey, uh, six of you at the bar, ever hear of Tim Donaghy? It'd be amazing. About seven out of 10 people would go yeah he was the referee, crooked referee in the NBA. I'm like, this is amazing. Seven out of 10 people I meet in a bar know about the story I want to go tell. That sounds like a good chance to make a movie, as opposed to a movie that has no built-in audience. And so, a built-in audience with PR channels that we know work, I think we can really show Hollywood how to do this in a different way if this all works. >> And this comes back to my point around built-in audiences. You know, YouTube has got a million subscribers. That's kind of an old metric. That means they, like an RSS feed kind of model. That's a million people that are, could be, amplifying their network connections. It is a massive built-in audience. The iteration, the DevOps kind of mindset, we talk about cloud computing, can be applied to movies. It's agile movie making. That's what you're talking about. >> Yeah, and by the way, so we have a social network of all the actors and people in the film. So when it's ready, let's go activate our network of all the actors that are in the film. Each of them have a couple million followers. So let's go be smart. Let's, two weeks before the movie, let's send some screenshots. A week before the movie let's show some exclusive videos. Two days before the film, go see it, it's now out in the theaters. You know what, that's pretty, that's 101. We've got actors. We've got producers. Like, let's go use the influencer network we built that actually got the movie made. Let's go on Sports Talk, talk about the movie. Let's go on places like this and talk about how a venture guy made a movie. This is the confluence of all of the pieces all coming together at once. And I just don't think enough people in the film business or in the media business think big enough about going after these audiences. It's oh, we're going to take ads out on TV and I'm going to see my trailer and we're going to do this and that's how we do it. There's so many better ways to get your audience now. >> And this is going to change, just while I've got you here, it's just awesome, awesome conversation. Bringing it back to kind of the CMO in big companies, whether it's consumer or B to B or whatever, movies, the old model of here's our channels. There's certainly this earned media kind of formula and it's not your classic we've got a website, we're going to do all this instrumentation, it's a whole 'nother mechanism. So talk about, in your opinion, the importance of earned media, vis a vis the old other buckets. Owned media, paid media, well-defined Web 1.0, Web 2.0 tactics, earned media is not just how good is our PR? It's actually infrastructure channels, it's networks, a new kind of way to do things. How relevant and how important will this be going forward? Because there's no more website. It's a, you're basically building a media company for this movie. >> That is exactly right. We're building an ad hoc media business. I think this is what the next generation of digital agencies are going to look like. And there are some agencies that we've talked to that really understand all of what you've just said. They are few and far between, unfortunately. >> Yeah, well, Paul, this was theCube. We love talking to people, making it happen. Again, our model's the same as yours. We're open to anyone who's got signal, and you certainly are doing a great job and great to know you and follow your entrepreneur journey, your investment journey, and now your film making journey. Paul Martino, General Pen on Bullpen Capital, with the hot film Inside Game. I'm definitely going to see it. It should be really strong and it's going to be one of those movies like Crazy, Rich Asians, where not looking, not really well produced, I mean not predicted to be great and then goes game buster so I think this is going to be one of those examples. Paul, thanks for coming on. >> Love it, thank you! >> This Cube Conversation, I'm John Furrier here in Palo Alto, California, bringing ya all the action. Venture capitalist turned film maker Paul Martino with the movie Inside Game. I'm John Furrier, thanks for watching. (triumphant music)

For Las Vegas, it's the cube covering vm world 2018, brought to you by vm ware and its ecosystem partners. Hello everyone. Welcome back to the cubes exclusive coverage live coverage here in Las Vegas for Vm world 2018. I'm John furrier with Dave Volante cohost of the cube. Our next guest ed walls. Cube alumni is also the general manager of storage and software defined infrastructure for IBM. Great to see you. Yeah, likewise. So we just were talking to Michael Dell earlier and again, the open ecosystem of vm world again, continues to be a little bit more better vibes this year. It seems to be an uplift around, hey, on premise as is working now, it seems to have some visibility. It's not gloom and doom for all this data center, but certainly some work going on. You guys were out front and software defined infrastructure and storage from so leader. Yep. What's the update? What's going on? Well, I think the, uh, the upbeat here that we're seeing from vm world is the same. We're seeing across the industry there You don't wear a boom happening and being data driven, is a, almost a renaissance. which plays a storage heavily. You do have to have right infrastructure to pull this off either on premises or in a hybrid or a multicloud at ECC. I like Lvm, we're kind of clear, you know the nomenclature around hybrid is homogeneous across the cloud and multicloud is all different types, which we see both so I think it's helping our business. You're seeing us grow since I've been You're seeing a large explosion and what we're doing on flash mostly because the here a growing pretty consistently above market. performance does matter. We did a major new and non. So you've seen our, our innovation pipelines alive and really kicking in and it really plays what clients are trying to really be more data driven of the drivers of your growth suddenly successes. What are the key drivers? Yeah, so I think it has to come down to offerings if you don't have the right offerings to help people to get. We use the term, you know, during the cloud, but it's really turning more of a journey to being data driven and it has to be in a cloud context and that is all about having the right offerings. We do focus in different areas for innovation, what we're doing, our flash, and it's not just flashed for individual raise, but where that's going as far as how you're going to access the data, you know, it's very different and modernizing the cognitive infrastructure or what you're going to do in these new cloud apps, data center compared to what you can do on ai infrastructure, but they need different things. But it's all about being more data driven, being more agile, but also really taking the complexity down. So, and I think when we're doing the exact same thing, all the announcements this week, we're all about making it easier to be data driven regardless of where you're at, which is what we're seeing and security to continues to pound this at the core, which is you're going to see the same thing from ibm. We're going to talk about technology innovation. We talked about the industry context, but it has to be the trust and security at the core and that's where I think that's why ibm has been doing so well. You know, it's interesting when I've been in this business a long time, you've been in the storage business awhile. Me, me a little longer than you guys, but John and I were talking about this the other day, the stores, everybody's been saying infrastructure is dead. I've been hearing that for 35 years. Tommy Rosen believe infrastructure matters, but it's consistently a growth market and a 60 percent plus gross margin product. Now you've got so many people don't understand that. I hear people that well, how come the VC's are putting so much money into storage? Backup is now data particular booming. Yep. Lot of companies say, well, we're going to divest of this or that or get out. You know, you've seen some companies say, oh well you're going to go here. It's just a consistent performer. Your thoughts. So I agree and and decided just storage, but I would say in most stores plays into that, right? It's all about being data driven and eventually it has to land someplace for performance, but it's the agility piece is that you're seeing us in the other industry. Leaders really drive that you can You mentioned backup, you know, actually leverage this data in different ways. so we'll talk about storage rays need to be flexible and fast, but backup ends up really turning into an interesting segment which you're seeing us lead in is how do you get more effective? All those copies of data instead of being some, you know, insurance policy, you hope you never get to and it might take you a long time to get the data back. Now these instantaneous copies for recovery, but also for how do you leverage that for being data driven. So all of a sudden if you're trying to be doing digital transformation, you have to deal with the infrastructure on prem or in the cloud. You're looking for ways to do that easier. We use it on a journey to cloud. It seems more and more it's a journey to being data driven, but it has to be in cloud context, but it plays in a storage or ugly it. You need the right infrastructure to build on to be honest. Sure. Yeah. The data driven thing and you're pounding that Mr Hardy, which I love by the way, it's not new for you guys, but one of the things we've been talking about from day one, you know our wrap data's at the center of the value proposition, but we were talking early on years ago about data being a real part of the development process now apps, so one of things gelsinger kind of talked about apps are now the new networks or something around networking networks and they also sent security. NSX has putting security of around the apps. Decoupling that from say network security. She's starting to see data in the APP component. Highly coupled with the application, new models around how that's stored and retrieved. Yep. Service Meshes and things going on around the application. How has that changed or have you been vectoring to that place where IBM. So one of the investment themes is how to do that and there's a couple different reasons. How do you become more data driven, so all that data, how do you use it to get better insights, right? Uh, and then all the data is typically on, you know, in your infrastructure, a lot of this on prem or in the cloud. So one is getting more insights, right? So you need to flexibly go after those copies. And then, uh, the other thing is how to use it to do better APP development. So you want to do Dev ops, which is how do you just get better quality, faster delivery for a pipeline. But a lot of times if you can't bring the data, bringing, like even if you do a test of a mobile app, you need to test it with the production data sets. So how do you do that? Flexibility and data is a hardest part of all this stuff. So we're doing on ai, how do you get application driven to go after it and the right performance. But we see Dev ops, you can see across our entire product line an API layer, yes, we have apis across all of our storage for our products and software, but a separate API layer to allow you to do a lot of these things with, not to replace any devops tools put to enable those devops tools or Coobernetti's or whatever orchestration engine to drive the flexibility of your will. I'll say mission critical, either primary storage or secondary storage cause. So programmability is critical through the apis infrastructure's code. If you don't have the right API layer and we play grandma will. That's exactly okay. And it's in place across our entire portfolio today. So you don't have to have an API for this device or that device or that backup? No, it's an API layer that covers them all. Voices you guys perfectly for the growth of containers, Coobernetti's and service measures. So as Dev ops starts to move up the stack, you need to have an under the hood programmable model and that is the software defined. So you guys are saying you have that today. Okay. So let's go. It was a big. We had major investments to get there and also do it in such a way that it's a consistent api layer that is abstracted away from the infrastructure you never want to give in general, you don't want get developers access to lower end technology and your system of record data, but you do need to give them access and have the rights, you know, security rounded access control. But it has to be api driven because sometimes there's not a human. It's, it's Dev ops. Okay, so let's stay on that for a secretary we made because I had. You're known as a business whiz kid. Oh, okay. But, but people don't realize how technical you are, which probably drives a lot of the people that work for you crazy. But when you think about the ascendancy of virtualization, it changed the way in which, for example, you had to do data protection and then one of your old companies, you know, you're popularize a source side district location, which made a lot of sense because you were taking 10 servers down to one. Right? As you go into this world of cloud and multicloud. Yep. You were just touching upon architecturally some of the things you What are the key components sort of architecturally that you've been driving have to do with microservices, etc. in your r and d pipeline, which we've noticed over the last two years that you've accelerated at ibm? So we talked about this data driven multi cloud architecture and the only reason for it, it's not a how do you go across a very broad portfolio that ibm storage has and how do you have a way to say we're going to be able to give you a modern, agile and flexible infrastructure that allows you to participate in modernizing your existing environment or allow you to ai, you know, lilly industry leading type, the ai technologies or these new apps. But hoW do you give clients a way to say this portfolio allows you to do that across your entire portfolio? So one is this api layers. You need to not only have rich apis around the storage self, but a lot of times you don't want to give those to developers or other people. So we need a separate api layer, which we put across both our primary storage and secondary storage. That was one that gives you the agility to do almost anything and it, and it doesn't compete with all these orchestration or dev ops tools. It enables them, it's the last mile if you would a second thing, you need to be software defined that gives you a way to api but also literally be able to move things, a flexibility but also investment protection and then you need some core innovation, right? So we still make it a lot of hardware, so we're making flash technologies that keep the low latency at workload with encryption on the card, at line speed with ddup, etc. All the things on the card. So you'll see us innovating on the technology side, but it's also having the agility and a and a flexibility. So you'll see that as a theme and we can have it in. We see clients adopting it in three areas. It's either modernizing traditional, I would say this is all about modernizing nutritional application more agile mode, private cloud or multi cloud. infrastructure and how to make it faster, The other thing is ai in it. It is huge right now. Getting insights right? So how did you machine learning deep learning, true ai on prem or in the cloud and this different technologies to get that insight. So you saw what we did. The largest ai supercomputer in the world was designed to use 100 percent ibm storage, actually ibm systems with a power, a power ai environments. That's a great point about this community is really an it footprint kind of app and its operation. So ai maybe ai ops but they're not. ai is not a core competency like tensor flow. So they need simplicity tools to do that easier. Right. So and I think that's what vm ware is doing with a lot of their announcements, just making it easier to deploy, but that's where ibm's been doing. Driving that pretty aggressively with our software side, our cloud side, but also what we're doing in infrastructure itself aliens and I was saying I think ai is not core comps in this community. essentially in this ai. So we just had an argument, not argument and discussion on the cube yesterday with jim colby, And he had brought up a good point about ai operations. Ai's going to automate a lot of things, but I was saying that's under the hood is a general purpose. Ai tensor flows, all these cools that developers want. Those are the guys who want programmable infrastructure. The guys who want ai ops is going to be Infrastructure guys. So really both are very important. under the hood, making things work faster. A very important. But there's different personas at the mechanic fix the engine. We do you get your ai, is it, is it sort of homegrown and your where's it come from? division is a little bit from the watson group, So, uh, we like our clusters. So we have obviously watson, which is very high end of what we do on a cognitive and since you're very deep learning, but we'll use all the open source tools. different than normal ai or machine learning, So what you're seeing, what we're doing in our, um, we did the latest product launch our flashlights from 9,100, which is granted hardware, innovation and vme through and through. We talk about ai infused, so it allows you to have better service and support. So what are we using machine learning, you know, we say deep learning of all the coal home data allows you to do a lot of analysis. Yes. It's an ibm's cloud. Yes. We use some of the things that we're using in watson, but it's all the tools you also see in our power ai for systems or what we're doing. Icp, ibm will go all the way to say here's all the open source tools you want to but you're wrestling with all the open source will help you put together a tool use mr. Customer, without limiting it, but allows you to kind of move forward Let's move forward to. You'd be data driven, and said, are wrestling with that technology. will make it easier to deploy. So you see that in our storage but in systems and really kind of an ibm theme if you would. So cloud, native compute foundation, I already asked you a question on the customer impact and you know, we cover the linux foundation heavily, cncf, you know, doing all this coobernetti's so it's been great being there from the beginning. So, but a lot of, I've noticed a pattern, there's a lot of talking about new players seeing their software defined infrastructure that would find storage. you mentioned earlier here that you guys made a significant investment. So the question is how do customers, potential buyers of this journey of going digital data, data driven, how do they determine the people who are saying it and actually doing it? What's required? I mean because that's ultimately the trying to squint through the noise as dave says, what, who's got what? So you've got multiple years doing this. If someone says hey, I got them to solidify storage. I just launched last week. Yeah, they might not have the trajectory. So how do customers test? Who's got the real deal? It's actually a real. You can. I'm looking at the floor across the way. So you have to get past the hype, right? So, so this is where I like being ibm, so why didn't I do the ceo the next gig or why did they come? and I thInk I think storage or infrastructure is a, I use the term Big boy, big girl gaMe. I think it's more than just building the next era is how to bring all this together and make it easier for clients, deliberate in the way they want. So I think the will see a lot of these point products people come up and say, I am the leader of this or a leader at that. And you saw a couple of stores guy say I'm the best ai, look the my benchmark within video, right? Um, but then you'll look at like an ibm, maybe not aS aggressive and the marketing of the infrastructure, but we're building the largest, you know, super cues, ai in the world. And we can take the exact same technology and give you a quarter rack or half rack or full rack of the exact same technology knowing you can scale it. So sometimes you have to say is, you know, it's not just a, the point, hey, um, you kind of get dig under the, I would say the, uh, culture of question you could customer what's the investment you've made? I mean, going ask like how many years you've been doing it, how does the customer and truly know someone's really going to be software defined and positioned for that data driven integration, that holistic package. Is there a, well, why don't we be, you know, so software defined, you know, the easy thing is, and this gets a little technical, but just, okay, show me your proposal and tell me how I can run the exact same infrastructure in a cloud of my choice. And you know, either on prem or not or on software is that software to find. And there's a lot of [inaudible] then Now that is self is not maybe the biggest thing, you know, that not suffered a fine. but who can you partner with, um, that can help you. Not only, okay, I'm going to get your next array. That's kind of a tactical, but who can I partner with to kind of go forward and you can't partner with 20 different firms. Who can you partner with to kind of get you from where you are to kind of where you want to get to. So I guess my questions are, I would start asking him how can you help me in a broader scope? And that's where ibm does well. The cloud is a good one. Can you run the storage on premise and on any cloud seamlessly route? What we did in the last launches flashes now you 100. We also say it's multi cloud enabled and what we did is we put all the software in the bundle. We have these validated designs that show you how to exactly do all the major use cases in any cloud and allow you to actually show you test environments. You do this cookbook at works but also the software go try it. But it's kinda how do you make it real compared to put a bunch of clouds and a configuration. But then it's the use cases. So we do a lot with the leaders and laggards, I mean we're with our leaders, but then we have some people that are really struggling to keep up and some of it is just showing the way forward and it's a, you gotta have a broad enough portfolio Otherwise you end up with a point product here and that point park there to get them over time, the right location. and I think that's where no one has enough team to keep up. But you also look at the developers and our developers abstracted away and does the storage to the performance and versatile for developers without even touching it back to your infrastructure as code comment. Oh well now the next one. So can I run, you know, you know, tell me whatever technology you ansible, if you're gonna run a whatever a workflow you got to use for your pipeline, will it work for the api? Should write without opening up the whole storage api. You can, you can drive the car, not even look at the engine. That's the key storage. Right? And it has to be that way. And then can I get all the key abilities in the same function? So it's a good question. I'll think about it more. well, I didn't mean to put you on the spot there. It's just good. It's good. Question number one question we get from people is how do you tell the pretenders when the players, that's ultimately what customers are. And they do bake offs when you see bake off. We had to, we had an auto nation earlier. Listen less, right? But what's the new bakeoff just run code on it. Right? So the world's changing and thanks for. Come on real quick. What's your thoughts on vm world 2018 this year? What's the vibe that you're feeling? What's the overall sentiment? What's your view? I think it's overall very positive. You mentioned early on it feels like an uplifting. I think you're seeing that across infrastructure and infrastructure does matter. I think uh, you know, there's big data economy, you, you hear a boom and it's going pretty well. So I think it's exciting and I think you feel among the ecosystem, any predictions for next year? What we'll see because we like to roll the predictions from next year, predictions for 2018 next year at vm world. What? What's going to happen? Oh geez. I think more of the same. I think you're gonna see even more and more how to be data driven. Yeah. The clouds have given during the cloud, but how to be more data driven and we're going to make it even easier and easier for our clients to do that and the ecosystems driving that and I think you can see more and more of that. Here he goes. This is robin. Thanks for coming on this cubes. Coverage here live in las vegas. I'm john furrier. dave. A lot. They stayed with us. We're on only day two. We've got three days of wall to wall coverage, two sets, tons of interviews, a lot of great people, a lot of great content. A lot of data we've got that data was sharing with you here. We're data driven on the cube. Stay with us. We'll be back after this short break. Okay.

>> Live, from Toronto, Canada, it's theCUBE! Covering Global Cloud and Blockchain Summit 2018, brought to you by theCUBE. >> So, welcome to the Global Cloud and Blockchain Summit. I'm about to hand you over to John Furrier, who is the Co-Founder and Co-CEO of SiliconANGLE Media and Executive Editor at theCUBE, he's about to do a Fireside Chat with Al and Mathew, I'll let him introduce you to them as well. He's also involved in a major blockchain project himself, so he's going to get into that with those guys as well. So, and tomorrow we start at nine, in the meantime, enjoy the evening, enjoy the food, enjoy the chat, and I'll let you go. >> Okay. Hello? Thank you Ruth, appreciate it, thanks everyone for being part of this panel, Fireside Chat, want to make it loose, but high impact for you guys, I know, having some cocktails, having a good time. If there's any questions during, then at the end we'll pass the mic around, but. We want to have a conversation, kind of like we always do down in the lobby bar, just talking about crypto and cloud, and we ended up talking about cloud computing and crypto a lot because those are two areas that are kind of converging, and the purpose of this event. So we really wanted to share some thoughts around those two massively growing markets, one is already growing, it's continuing to be great: the cloud, and blockchain certainly is changing everything. These two important topics, we want to flesh them out, Al Burgio is the Serial Entrepreneur/Founder of DigitalBits, he's founded companies both in cloud and blockchain, so he brings a great perspective. And Matt Roszak, leading crypto investor, entrepreneur and advocate, well known in the crypto space for goin' way back, I think you gave a couple bitcoins to some very famous people early on, we'll get into that a little bit later. So guys, thanks for being part of the panel and Fireside. First question is: we know how big the money is, I mean the money is crypto is is flowin' around the world, and cloud computing we've seen specifically, and certainly in coverage now with Amazon's success, Amazon Web Services, and Microsoft and others. Trillions of dollars being disrupted in the traditional kind of the enterprise, data center area, and blockchain is doing that too, so we want to get into that. But first, before we get into it, I want you guys to take a minute to explain for the folks, just to set the context, the kinds of projects you're working on. Now Al, you have DigitalBits, Matt you're investing and you're finding a lot of interesting token dynamics. So just take a minute. Al, start. >> (mic off) So-- Everybody hear me okay? Alright, perfect. Well thanks for that lovely intro. Yes, my name is Al Burgio, I'm, I've founded a few companies, as John mentioned. Before the cloud there was internet, (light laugh) and so it started for me in the late '90s in the e-commerce era. But more recently I pioneered what's known as Interconnection 2.0, and I did that with the company called Console, for those that may know PCCW, recently it was acquired by PCCW. And with that we disrupted the way networks at the core of the internet were connected together More recently I've founded the DigitalBits project, and now DigitalBits blockchain network, and with that, you can kind of think of that as the trading and transaction layer for the points economy and other digital assets, and you can do a lot of really interesting thing with that, it's really about bringing blockchain to the masses. >> Matt, what're you workin' on? >> So, Matthew Roszak, Co-Founder and Chairman of Bloq. Bloq is a enterprise software company, we do two things, the premise is the tokenization of things, so we think the money identity, new layers of the internet are going to be tokenized. And so, we go to market in two ways, one is through Bloq Enterprise, and these are all the software layers you need to to connect to tokenized networks, so think a wallet, a node, a router, etc. And then Bloq Labs we build, and partner with, some of the leading tokenize networks and applications, so we build a connective tissue and then we actually build these new networks. I started this space as an investor over five/six years ago, investing in some of the best entrepreneurs and technologists in the space build a great network. But I love building companies, and so my Co-Founder and I, Jeff Garzik, built Bloq two and a half years ago. And then lastly, also serve of Chairman of the Chamber of Digital Commerce, so, so if you believe in these new tokenized money layers, identity layers, etc, regulation comes into play. Certainly today from an institutional adoption level, and so if you care about this space, you need to spend time to kind of help that dialogue improve; this technology moves way faster than folks in DC and elsewhere, so. >> And the project that we're workin' on at SiliconANGLE, is we've tokenized our media platform, and we're opening it up to a token model, and have kind of changed the game. So all three of us have projects, want to put those in context, we build everything on Amazon Web Services, so, the view of the cloud, we also cover it. The cloud computing market is booming, we see that Amazon Web Services numbers empower the earnings for Amazon's company, obviously Apple's trillion dollar evaluation those are clear case studies; but blockchain could potentially disrupt it all, and Al, I want to get your thoughts, because even today in the news at Microsoft Azure, which is their big cloud provider, announced blockchain as a service. And folks that are in either the data center business or in cloud know the shift that's happening in the IT world, but no ones really connected the dots on where blockchain intersects, and also, is it an opportunity for the cloud guys, what's the landscape look like, so. What's your thoughts on that, how are they connected, what does it mean, how does a cloud company maintain their relevance and competitiveness with blockchain? >> Well, just pointing on the fact that, you know, today we had that new Microsoft, the Azure cloud, their support and evangelism for blockchain. You know, a company, I think it's very important that this isn't an ICO, two kids in a garage saying their doing something blockchain this is a massive, multi-billion dollar company; and making a decision like that is not trivial, it's many, many departments, a lot of resources, before such a thing's announced. So, that's, not only is it validation, but it's a leading indicator as to this trend, that this is clearly something that's important. And a lot of people, if you're not paying attention, you need to be paying attention, including if you're in the cloud industry, 'cause many companies obviously do compete with, with Microsoft and AWS, so. It may be still early, but it's not that early, in light of the news that we saw today. With that, I would say that, a lot of the parallels I like to kind of, if I was an infrastructure provider I'd look at this from the standpoint of the emergence of Linux when it first came on the scene. What was important for companies like Red Hat to be successful, they had competition at the time, and you had shortages of Linux, let's say engineers, and what have you. And so, a company like Red Hat built a business around that, and they did that by how they kind of surfaced and validated themselves to the enterprise of that era, was partnering with hardware companies, so, it was Intel, IBM, and then Dell, HP, and they all followed, and then all of a sudden, which version of Linux do you want to use? It's Red Hat, you're paying for that support, you're paying Red Hat. And, you know, then they had their hockey stick moment. Today, you know, it's not about hardware companies per se, it's about the cloud, right? So cloud is the new hardware per se, and many enterprises obviously are looking at cloud computing companies and cloud computing providers, infrastructure providers, as the company that they need to support them with the infrastructure that they use, or sorry the technologies that they use, right? Because they're not necessarily supporting these things and making sure that they're always on within the basement of that enterprise, they're depending, or outsourcing, to depending on these managed IT providers. This was very important that whatever technologies they're using in the lab, that ultimately their infrastructure partners are able to support the implementation, the integration, the ongoing support of these technologies. So if you think of blockchain like an operating system or a database technology, or whatever you want to call it, it's important that you're able to really identify these key trends, and be able to support your customer and what they're going to need, and ultimately for them, they can't have a clog in their digital supply chain, right? So, it's clearly emerging. Microsoft is validating that today, you know, clearly they have the data, that they're seeing for their existing enterprise customers, and they don't want to lose them. >> Yeah, but remember when cloud came out; you and I have talked about this many times Al that it wasn't easy to use, I remember when Amazon Web Services came out, it was just basically, it was hard to command line, basically you had to use it, so, it became easier now, it's so easy and consumable. Blockchain, similar growing pains, but, we don't want to judge it too early with the opportunity that it has, it's going to get easier, what're your thoughts? And it has to scale by the way, Amazon, at a large scale. >> Yeah, I mean-- >> So blockchain has to scale and be easier, your thoughts? >> Another kind of way to think of it is, to not necessarily think of cloud computing, but the evolution the internet went, you know, in Internet 1.0, you know, we went through this dial-up modem era, things were very raw back then; great visions we had of the future, like, it's going to be amazing for video one day! But, not during dial-up modem era, and eventually, you know, it eventually happened. And user interfaces improved, and tool sets improved and so forth. You know, fast forward to today, we have all of that innovation to leverage, so things will move a lot faster with blockchain, it did start very raw, but it's, it's moving much faster than anything we've seen definitely in the '90s and in the last decade, so. It's just, you know, it's a matter of moments, not years. >> And I think Al brings up a great point on leverage, because Amazon leverages infrastructure to a point where it's larger than Google, Azure, and IBM's public cloud combined, and so yeah, massive leverage there. And so, when these big cloud providers provide this blockchain as a service, it is instrumented and built on top of their existing infrastructure, not necessarily on blockchain infrastructure. So, it's an interesting dynamic where they're putting it on top of existing infrastructure that's there, but what's being build right now is the decentralized Amazon Web Services. So you have every layer of Amazon being re-imagined, like, and incentivized so you have distributed compute and access and storage and database. And so, what will be interesting to see is that, given this massive opportunity, will Amazon and some of these other incumbent cloud providers become the provisioning networks of the future? Of all this new decentralized resources that get, again, if you want storage, you have to start having smarts to say: if I'm going to go to Sia or Filecoin or Genaro or Storj, compute, etc; you have to start being a provisioning layer on top of that to kind of, you know, make that blockchain essentially work. So, it'll be interesting to see the transition 'cause today the lightweight versions to say yeah, I have a blockchain as a service strategy, and that's like, well done, and check the box. Now, the question is how far in this new world will they go down? And, as it gets more decentralized, as universities and governments, corporations, plug their access utility into these networks, and to see how that changes. That is much bigger than the Amazon of today. >> I think that's an interesting point, I want to just drill down on that if you don't mind, 'cause I think that's a fundamental observation that every layer's going to be decentralized. The questions I think I'm asking and I'm seeing is: How does it all work together? And then what's the priorities? And the old model was easy; got to get the infrastructure, got to get servers, (laughs lightly) and you know, work your way up to the top of the stack. What cloud brings also is that: a software developer can whip up an application, maybe a dApp on a test network and go viral, and the next thing you know they have a great opportunity, and then they got to build down. So the question is: What are you seeing in terms of priorities on stacks, portions of the stack that are being decentralized and tokenized, do you see patterns, trends, as an investor, is there a hotter (laughs) area than others, how do you look at that? >> Well, I think it's, it's in motion right now it's, like I said, every layer of AWS is getting thought through in how to create these digital cooperatives, I have excess storage, I'm going to contribute it to this network, and I'm going to get paid in tokens when a user uses that storage network, and pays for it in those native tokens and so that, coupled with all the other layers, is happening. From a user perspective, we may not want to be going to pick a database provider, a storage, a compute, etc, we're likely going to say: I want a provisioning layer, and provision this and execute this, much like if we, you know, there'll be new provisioning layers for moving money, I don't care if routes through Lightning or Litecoin or Doge or whatever, as long as the value gets across the pond or the app gets provisioned appropriately based on you know, time, security, and cost, and whatever other tendance are important, that's all I care about, but; given the depth and the market for all that, I think it'll be interesting to see how these are developed with the provisioning layers, and I would think Amazon or Azure, the future of that is, is more provisioning than actually going and doing all that at the end of the day. >> That's great. I want to get your thoughts guys on innovation. My good friend Andy Kessler wrote an op-ed in today's Wall Street Journal around, an article around the government, the US government getting involved. You know, there's Twitter, Facebook, the big platforms, in terms of how they're handling their media, but it brings up a good point that with more regulation, there's less innovation. You mentioned some things outside the United States, it's a global cloud, cloud's operating globally with regions, it's a global fabric. Startups are really hot in this area so; how do you view the ecosystems of startups, in terms of being innovative, things happening that you think that're good, and things that aren't good, obviously I'm not a big of the government getting involved, and managing startups, the ecosystems but, blockchain has a lot of alpha entrepreneurs jumping in, you've looked at all the top ventures, the legit ventures, they're all alpha entrepreneurs, multi-time serial entrepreneurs, they see the opportunity and they go for it. Is the startup environment good, is there enough innovation opportunities, what're you thoughts on the opportunity to be innovative? >> Yeah, Al and I were just talking about this before the panel here, and were talking about our travels in Asia, and when we go there it is 10, 100 X of energy and get-it factor, and capital, and the markets are just wildly more vibrant than you know, going to some typical markets here in San Fran and New York in North America, and, so it's interesting to see that when you heat map the world, what's really happening. And you know, people are always saying: oh well this, this FinTech, or InsurTech, or whatever tech, is going to make a dent in Silicon Valley or Wall Street. This technology, this new frontier, is definitely going to do that. I think some of that will get put into more focus based on regulation, and there's two things that will happen; there's obviously a lot of whippersnapper countries that are promoting a safe place to innovate with crypto, I think Malta, Gibraltar, Barbados, etc, and there were-- >> Even Bermuda's getting in on the mix now. >> Yeah! I mean so there's no shortage of that, and so, and obviously this ecosystem outpaces the pace of regulation and then we'll see like the US doing something, or you know, other fast followers to try and catch up, and say hey, we're going to do the cryptocurrency act of 2022, miners get free power, tax-free, you know crypto trading, you know just try and play catch up. 'Cause it's kind of hard in the last year or 18 months we've seen this ecosystem go from this groundswell to this now institutional discussion; and how do you back end the the banking, the custody, all these form factors that are still relatively absent. And so, you know, we're right in the middle of it. >> It's a whole new way, you got to follow the money, right? Al, you and I talked about this; capital markets, you know entrepreneurs need to raise money and that's a good thing, you need to get capital to do stuff. >> Yeah, this is a new phenomenon that the world has never experienced before, it's awesomeness when it comes to capital formation; you know, without capital formation there is no innovation. And so the fact that more capital can be raised, it's the ultimate crowd sourcing in such an efficient period of time, capital being able, the ability to track capital from various different corners of the world, and deploy that capital to try to fuel innovation. Of course, you know, not all startups or what have you succeed, but that was true yesterday, right? You know, 90% of startups fail, but they all will give it some meaningful amounts of checks, people were employed and innovation was tried; and every once in a while something emerges that's amazing. If you can do that faster, right, when you have the opportunity to produce more and more innovation. And, of course with something so new as cryptocurrency, things like ICOs and what have you, people may kind of refer to it as the wild wild West, it's not, it's an evolution. And you have-- >> It's still the wild west though, you got to admit. (laughs) >> Well, it is but, we're getting better at it, right? As a world, this isn't the Silicon Valley community getting better at venture capital or some other part of the United States or Canada getting better at venture capital; this is the world as a whole getting better at capital formation. >> Yeah, that's a great point. >> In the new way of capital formation. >> And I wanted to just get an observation on that. I moved to Silicon Valley 20 years ago, and I love it there, for venture capital and new startups, it's the best place in the world. And I've seen people try to replicate Silicon Valley, we're the Silicon Valley of Canada, we're the Silicon Valley of the East or Europe, and it's always been hard to replicate, because it was a venture model, and you needed venture capitalists and you need money, you need a community, the culture, the failure, the starting over, and just, you know, gettin' back on the horse kind of thing. Crypto is the first time that I've seen the replica of that Silicon Valley dynamic, in a new way, because the money's flowing, (laughs) and there's community involved in crypto, crypto has a big community aspect to it. Do you guys see that as well? I mean I'm seeing, outside the United States, a lot of activity. Is that something that you're seeing? >> So, the first time we saw, well, last time we saw everybody trying to replicate Silicon Valley was first internet, you know, there was Silicon Swamp, there was Silicon Alley, there was silicon this-- >> Prairie. >> Every city was >> Silicon Beach. >> A silicon version of something, and then the capital evaporated, right? We had a mass correction happen. What wasn't being disrupted was value exchange, right, and so this is being created now, it is now possible for this to happen, and it's happening, we're seeing amazing things, Matt said, you know, in Asia. It's a truly awesome force, if anybody has an opportunity to go, they should go, it's unbelievable to experience it, and it really opens your eyes. >> And you've lived through a lot of investments during those .com days and through history now, you've seen a lot of different things. Your observations with the current state of the capital formation, startup landscapes, the global ecosystem around crypto and how it's different from say venture or classic rolling up companies and those kinds of things? >> Yeah, you hear a lot of this, you know, we're in a bubble, it's speculative, etc. And I think that when you look back at history of infrastructure, whether it's railroads, telephony, internet, and now crypto and blockchain, it's interesting, like, if you said: it would take this amount of money to innovate and come out the other end of internet with this kind of infrastructure, these kinds of applications, with these kinds of lessons learned, nobody would sign up for that number, right? It needs this fear, and greed, and all the other effervescence of markets to kind of come out the other end and have innovation. I think we're going through a very similar dynamic here with crypto and blockchain where you know, everything's getting tokenized, everything's getting decentralized. We're talking about fundamental things like money, you know, it's not like we're talking about pet food and women's shoes and airline tickets, we are talking about money, identity, things that will enable like other curves to really come into focus like in and out of things and the kind of compounding of intersections when some of these things get right is pretty extraordinary. And so, but I like what Al said in terms of capital formation and that friction to get from, you know, idea to capital to building, is getting compressed Yes, there will be edge cases of people taking advantage of that, but at the other end of this flow will be some amazing innovation. >> What do you guys think about the, if you had to answer the question with one answer, of what is the high order bit of why blockchain's so important? For me, I see it, from my standpoint, I'll just start, I see it making inefficient things more efficient for any use case, and that's being re-imagined, which is everything from IOT or whatever. Efficiency is a big thing, at least I see that. What do you guys see as a high order bit in terms of you know, the one thing that you'd say blockchain really impacts the world in terms of you know, impact, financial, etc? >> Well, I think with decentralization and all these things that we're seeing it's kind of evened the playing field. It's allowing for participation where parts of the world were unable to participate. And it's doing a whole lot of things in that area. And that's truly awesome, to really grow the economy, grow the global market, and the number of participants in that market in all areas. That's the ultimate trend at what's happening here. >> And your information? >> Absolutely, and I think there's two things, there's this blockchain dialogue, and then there's this crypto decentralization, tokenization dialogue, and on the blockchain side you have lots of companies engaging in blockchain and trying to figure out how it applies to their business, and you hear everything from McKinsey and Goldman saying financial services will save 100 billion dollars in operating expenses by applying blockchain technology, and that's great. That is probably low in terms of what they'll save, it's, to me, is just not the point of the technology, I think that when you kind of distill that down to say hey, for a group of folks to use this technology as a shared services thing to lower opex a trading settlement and decrease that, that's great, that is a step stone to creating these tokenized economies, these digital cooperatives. Meaning you contribute something and then you get something back, and it's measured in the value that this token is, like a barometric kind of value of how healthy that ecosystem is. And so, regulated public enterprises, and EC consortiums around insurance and financial services and banking, that is all fantastic, and that gets them in the pool, gets them exercising on what blockchain is, what it isn't, how they apply it, but it's, at the end of the day for them it's cost reduction The minute there's growth or IP, or disruption on the table, they're all going back to their boardrooms to say: hey let's do this, this, or that, but, if there's a way, my favorite class in college was industrial organization, and it sounds weird but, it was, it kind of told ya like how to dissect an industry, you know, what makes them competitive, who the market leaders are, and then, if you overlay like blockchain networks with tokens, with incentives, interesting things could happen, right? And so that future is going to be real interesting to see how market leaders think about how to tokenize their network, how to be, how to say: no I don't want to own this whole industrial network, I have to engage with some other participants and make sure everybody is incentivized to climb on board. So that I think is going to be more of the interesting part than just blockchain-ifying a workflow. >> Well let's just quickly drill down on that, token economics, what you're getting to. So let's assume blockchain just happens, as evolution of technology, let's just assume for a second that it's going to happen in a big way, it's private, public, hybrid chains, with all that good stuff happening, but the token economics is where the business value starts to be extracted, so the question for you is: How do you describe that to someone to look for, what are the key elements of token economics? When does it matter, when is it in play, and how should they be thinking about it? >> Yeah, I mean token economic design and getting a flywheel going to create a network and network effects is really important. You could have great technology, but Al could be a better marketer, and he gets tokens adopted better, and his network will do better because, you know, he was better able to get people to adopt and market a particular, you know, layer application. And so, it's really important to think about how you get that flywheel going, and how you get that kindling going on a particularly new ecosystem, and get users adoption and growth. That is really hard to do these days because some people don't even know what Bitcoin is, let alone to say I'm going to tokenize this layer, and every time you contribute, every time you take an action, you're going to get rewarded for it, and you're share the value of this network. >> Can you give me a good example of what's happening today that you can point to and say: that's a great example of token economics? >> Well, you see, I mean the most basic one is shared file storage, right? You know, it's like the Filecoin, Sia, Genaro model where, you know, you contribute you know, the unused storage in your laptop or your university data center or a corporate data center, and you say I'm going to contribute this, and when it's used I get these tokens and, you know at the end of the day or week or year you see what these tokens are worth, and was that worth your contribution? And so as these markets develop, and as utility develops, we'll see what that holds. >> Al, you got an example you could share? DigitalBits is a good use case obviously. >> Actually, I'm not going to use DigitalBits (John laughs) just to be neutral. This is one that Matt will know very well, definitely better than I, but one that I've-- the simpler something is, the easier it is for people to understand, and its like oh that makes sense, you know. You know, Binance is one that's very simple, you know it's a payment token, if you pay with some other currency, you pay, you know, Pricex, if you pay in the next few years with their token, you'll get the service at a discount. And in addition to that, they're using a percentage of profits, I think it's every quarter, to buy back up to, ultimately up to, 50% of tokens that are in circulation. So, you know, it's driving value, and driving return, in essence, if I can use that word. So for a user it's simple to understand, for someone that likes to speculate it's easy for someone to understand in terms of how the whole model works, so it's not some insanely complicated mathematical equation, that we can yes we can trust the math. And so in some cases, some adoption is going to just be, you know, attract participants based on simplicity. In other cases the math is important, and people will care about that, so, you know not all things are necessarily equal, and not necessarily one method is right, but there are some simple examples out there that that have proven to be successful. >> That's awesome, one last question, before we open it up if anyone has any questions. If anyone has any questions, if they want to come up, grab the microphone, and ask the three of us if you've got anything on your mind. And while you're thinking about that I'll get the final question for these guys is: A lot of people ask me hey, I want to be on the right side of history, what side of the street should I be on when the reality comes down that decentralization, blockchain, token economics, decentralized applications, becomes the norm, and that re-imagining actually happens? I don't want to be on the wrong side of history. What should I be doing, how should I be thinking differently, who should I be following, what should I be paying attention to? How do you answer that question? >> I think, at the basic level, you know, turn off your phone, lock your door, and study this technology for a day, it's the best advice I could give. Two: buy some crypto. Once you kind of have crypto on your phone, in your wallet, something changes in your brain, I think you just feel like you-- >> You check the prices every day. (all laugh) >> You lose a lot of sleep. And then after that, you know, I think you start engaging in this space in a very different way. So I think starting small, starting basic, is an important tenet. And then, what's amazing about this space is that it attracts the best and brightest out of industry, and law, and government, and technology, and you name it, and I'm always fascinated the people that show up and they're like yeah, I'm in a 20 year, you know, veteran in this space and I want to get into blockchain, it just attracts some of the best and brightest. And, I think we're going to see a lot of experience coming into the space, you know, this has been a, what I'd say a bottoms up groundswell of crypto and blockchain and the evolution of the space. And I think we're starting to see more some more mature folks come in the space to to add some history and perspective and helpin' the build out of this, and to build a lot of these networks. I think that the kind of intersection of both is going to be very healthy for the space. >> Al, your thoughts? >> Definitely agree with Matt. Definitely to lock yourself up and just try to absorb information, everyone has access to the internet, there's plenty of information. If you don't like to read go watch a few YouTube videos, just people explaining the stuff, it's really fascinating, the various different use cases and so forth. You definitely have to buy some, and, you know, whether it's five dollars worth, just go through the whole experience of being able to trade something of value that a few years ago didn't exist, and be able to trade it for something else of value is a pretty phenomenal experience. Then trying to go buy something with it, it's even more of a fascinating experience, I just bought something that used, again, something that didn't exist a few years ago. But, what I would add to that as well, you really have to get out there; if you keep surrounding yourself with people saying aw, this is, eh, whatever, >> It's never going to work. >> It's crazy, it's for criminals, and all that fun stuff. You're going to be last place. So coming to conferences, obviously future's conference you're going to meet a lot of interesting, great people, and that consistent experience, you'll learn something every time. You know, at the end of the day, I remember, I'm sure all three of us remember, with the birth of the internet there was many people that said you know the internet thing, it's crap, it's for kids, you know. And we had first movers, we had willing followers, and then the unwilling followed, you don't want to end up being-- >> The unwilling followers. >> Yeah, the unwilling. >> Alright. Does anyone have any questions they'd like to ask? Come on up. Yeah. We're recording, so we want to get it on film. >> So I have two questions. The first one is for you, Al: Two years ago I interviewed with IIX before it was Console, and I want to know why you didn't hire me? (Sparse laughs) No I'm kidding! That was a joke. Actually, I thought each of you brought up some good points, minus you Al. (chuckles) I'm just kidding. But what I really wanted to ask you guys is: so you talk a lot about this, the tokenized economy and kind of the roadmap and the things to get there, you talk about sediment layer, right, Fiat to crypto, sediment layer, your identity protocols, your dApps, X, Y, Z, right? The whole web 3.0 stack, I want each of you, or I want at least input from both of you or all of you, what are the hurdles to getting to a full adoption of web 3.0 stack, and make a bold prediction on the timing before we have a full web 3.0 stack that we use every day. >> That is a awesome question actually, timelines. You could be, being in technology, being in venture, you could be right, and you could be off by three, five, seven, 10 years, and be so wrong, right? And then at your retirement dinner you could say: I was right, but Tommy wasn't right. So, this is really hard technology, in terms of building systems that are distributed, creating the economic models, the incentive models, it takes a lot to go right in the intersection of all this. But it's not a question like is this happening? No, this is happening, this is like, it's in motion. The timelines are going to be a little elusive, I'm way more pragmatic, I was one of the early guys in the early internet, and you know everything was going to be .com and awesome and fantastic. But the timelines were a little elusive then, right? You know, it's like when was, people are thinking of today's Amazon was going to be the 2005 Amazon, you know, it's like, that took about another decade to get there, right? And people could easily just buy stuff and a drone or a UPS guy would just deliver it, and so, similar things apply today. And you know at the same time we all have a super computer in our pocket, and so it's a lot different. At the same time we're dealing with trusted mediums right? The medium of money, the medium of identity, all these different things they're, they're things that you know if I say download Instagram, and let's share cat pictures or whatever, it's not a big deal, our trust is really low for that, let's do it. For money, it's a different mental state, it's a different dynamic, especially if you're an individual, a government, or an enterprise, you go through a whole different adoption curve on that, so, you know, it is at grand scale five to 10 years, right? In any meaningful way. And so we still have a lot of work to do. >> My answer to that question, it's a good one, your question was a good one, my answer's a little bit weird because it's multi-generational. The first generation pivot was when the internet was born was because of standards, right? The government had investment. The OSI model, open system interconnect, actually never happened, the seven layers didn't get standardized, only a few key ones did; that created a lot of great things. And then when the we came out, that was very interesting protocol development there, the TCP/IP stuff, I mean HTP stuff. I don't see the standardization happening, because cloud flipped the stack model upside down because Amazon and these guys let the software developers drive the value. It used to be infrastructure drove the value of what software could do, then software became so proliferated that that drove the value of the infrastructure, so the whole cloud computing equation is making the infrastructure programmable for the first time, not the other way around, so. The cloud phenomenon's all about software driving the value, and that's happening, so. It's interesting because with blockchain you can almost do levels of services in a cloud-like way with crypto, I mean with blockchain and token economics, and have a partial stack. So think that this whole web 3.0 might be something that no one's every seen before. So, that's kind of my answer, I don't really know if that's going to be right or not, but just looking at the future, connecting the dots, it's probably not going to look like what we've seen before, and if the cloud's an indicator it's probably going to be some weird looking stack where certain sections are working, and then evolution might fill in the other ones, so. I mean, that's my take, I mean, but standards will play a role, the communities will have to get involved around certain things, and I think that's a timeless concept. >> Timing. >> Oh, timing. I think it's going to be pretty quick, I think if you look at the years it took for internet, and then the web, everything's being compressed down, but I think it's going to be much shorter. If it was a 20 year cycle in the past, that gets shortened down to 15 with the internet, and this could be five years. So five to 10 years, that could be the impact in my mind. The question I always ask is: what year will banks no longer be involved in anything? Is that 20 years or 10 years? (laughs) Exactly, so, yeah, follow the money. >> So I would say that in terms of trying to keep your finger on the pulse with things and how you kind of things, see things evolve; things are definitely moving a lot faster, you know in the past you would probably say seven to 10, I'm not sure if I would say five, sorry five to 10, it definitely feels to me that it's five max til we could start to see some of these key things fall into place, so. >> So could you answer the first question? >> What was the first question? >> Why didn't you hire me? (audience cringes) >> We've met before? Sorry. (all laugh) >> I have a question, this is Dave Vellante, Co-Host of theCUBE. And I want to pick up on something John you just said, and Matt you were talking about Goldman Sachs and Morgan Stanley, it's not about them saving hundreds of millions of dollars, it's really about them transforming business, so. And John, you just asked the question about banks, I want to actually get your answer to this: Will traditional banks, in your opinion, lose control of payment systems? Not withstanding your bias. (laughter) >> Yeah, I am definitely biased on this. But, I mean, I've been in front of the C-suite of banks, credit card companies, etc, and I said, you know, in about a decade, the center of what you do and how you make money is going to be zero. And, 'cause there'll be networks, and ways to transmit money that'll be by far cheaper, or will be subsidized by other networks, meaning, and those networks are Apple, Amazon, Alibaba, you know, Tencent, whatever networks that're out there, that're engaging in collaboration and commerce and everything else, they will give away payments as just a courtesy, like people give away messaging or email or something, as a courtesy to that network, and will harden that network, and it'll be built and based on blockchain technology and cryptocurrencies, so they don't necessarily have to worry about, you know, kind of subtle payments. But these new networks will start to encroach on banks, the banks are not worried about other banks today, the banks should be worried about these new networks that're being developed. >> How many people still have a home phone line? >> That was elegant, I like that. >> You know, I mean there's a generation of people that still like going to banks, they'll keep them in business for a while. But I think that comes to an end. >> I mean, when we covered a lot of the big data market when it started, the argument was mobile will kill the banks outlets, and now with ATMs there's more bank, more baking branches than ever before, so I think the services piece is interesting. >> And also, if you look at even the cloud basis, the software as a service, SaaS space, a decade, decade and a half ago, you would ask SAP, Oracle, what have you, what's your cloud strategy? And they'd be like cloud? That's just more efficient delivery model, not interested. 90 some billion dollars of M and A later, SAP, Oracle, etc, are cloud companies, right? And so, if banks kind of get into that same mode to say well, yeah, we need to play catch up and buy digital currency exchanges and multi-currency wallets, and this infrastructure and plumbing to be relevant in the next world, that would be interesting. But I think technology companies have as much an advantage to do that as as financial services companies, so it'll be interesting to see who kind of goes into that, goes into the crypto ecosystem to make that their own. >> It's interesting. We were talking before we came on and the OSS market, operational support systems is booming, and that's traditionally been these big operational outsource companies would manage big projects, but, if you look at in the first half of 2018, there's been a greater than 20 billion dollar commercial exits of companies through private equity merchants, IPOs, around OSS, and that's where we see operational things happening, CoreOS, Alfresco, MuleSoft, Pivotal went public, Magneto, GitHub, Treasure Data, Fastly, Elastic, DataStax, they're all in the pipeline. These are all companies that aren't cloud, they're like running stuff in cloud, so, this could be a tell sign that potentially the the blockchain operating market is going to be potentially a big one. >> Yeah, and then even look at BitMate, the world's largest miner in crypto. So, they did about a billion dollars in profit last year, did about a billion dollars in profit just in the first quarter going public, just raised a billion dollars last month, at a reportedly 50 to 70 billion dollar evaluation in Hong Kong in the next month, and the amount of money they'll raise will eclipse what Facebook raised. And so I think the institutional, the hardware, the cloud computing, the whole ecosystem starts to like resonate and think about this space a lot differently, and we need these milestones, we need these, whether they're room huddles or data points to kind of like think about how this is going to affect your business and what you do tomorrow morning. >> Any more questions from the crowd? Audience? Okay, great, well thanks for attending, appreciate you guys watching and listening, and guys thanks for the conversation; cloud and blockchain convergence. Collision course, or is it going to happen nicely, Al? >> Yeah, I think it's going to be a convergence, I don't see it necessarily as a collision course. >> And a lot of money to be made on this opportunity these days, and cloud convergence with blockchain. >> I concur with Al, I think there's going to be convergence, I think us most smarter players will engage and figure out their models in this new crypto and tokenized era. >> Thanks so much guys, appreciate it, give these guys a round of applause. (audience applause) Thank you very much. (bubbly music)

in Cambridge Massachusetts it's the cube covering the MIT chief data officer and information quality symposium now here are your hosts Stu miniman and George Gilbert you're watching the cube SiliconANGLE media's flagship program we go out to lots of technology shows and symposiums like this one here help extract the signal from the noise I'm Stu miniman droid joined by George Gilbert from the Wikibon research team and really thrilled to have on the program the keynote speaker from this MIT event Tom Davenport whose pressure at babson author of some books including a new one that just came out and thank you so much for joining us my pleasure great to be here all right so uh you know so many things your morning keynote that I know George and I want to dig into I guess I'll start with you talk about the you know for eras of you called it data today used to be formation from the information sorry but you said you started with when it was three eras of analytics and now you've came to information so I'm just curious we you know we get caught up sometimes on semantics but is there a reason why you switch from you know analytics to information now well I'm not sure it's a permanent switch I just did it for this occasion but you know I I think that it's important for even people who aren't who don't have as their job doing something with analytics to realize that analytics or how we turn data into information so kind of on a whim I change it from four errors of analytics 24 hours of information to kind of broaden it out in a sense and make people realize that the whole world is changing it's not just about analytics ya know I it resonated with me because you know in the tech industry so much we get caught up on the latest tool George will be talking about how Hadoop is moving to spark and you know right if we step back and look from a longitudinal view you know data is something's been around for a long time but as as you said from Peter Drucker's quote when we endow that with relevance and purpose you know that that's when we get information so yeah and that's why I got interested in analytics a year ago or so it was because we weren't thinking enough about how we endowed data with relevance and purpose turning it into knowledge and knowledge management was one of those ways and I did that for a long time but the people who were doing stuff with analytics weren't really thinking about any of the human mechanisms for adding value to to data so that moved me in analytics direction okay so so Tommy you've been at this event before you know you you've taught in written and you know written books about this about this whole space so willing I'm old no no its you got a great perspective okay so bring us what's exciting you these days what are some of our big challenges and big opportunities that we're facing as kind of kind of humanity and in an industry yeah well I think for me the most exciting thing is they're all these areas where there's just too much data and too much analysis for humans to to do it anymore you know when I first started working with analytics the idea was some human analysts would have a hypothesis about how to do that about what's going on in the data and you'd gather some data and test that hypothesis and so on it could take weeks if not months and now you know we need me to make decisions in milliseconds on way too much data for a human to absorb even in areas like health care we have 400 different types of cancer hundreds of genes that might be related to cancer hundreds of drugs to administer you know we have these decisions have to be made by technology now and so very interesting to think about what's the remaining human role how do we make sure those decisions are good how do we review them and understand them all sorts of fascinating new issues I think along those lines come you know in at a primitive level in the Big Data realm the tools are kind of still emerging and we want to keep track of every time someone's touched it or transformed it but when you talk about something as serious as cancer and let's say we're modeling how we decide to or how we get to a diagnosis do we need a similar mechanism so that it's not either/or either the doctor or you know some sort of machine machine learning model or cognitive model some waited for the model to say here's how I arrived at that conclusion and then for the doctor to say you know to the patient here's my thinking along those lines yeah I mean I think one can like or just like Watson it was being used for a lot of these I mean Watson's being used for a lot of these oncology oriented projects and the good thing about Watson in that context is it does kind of presume a human asking a question in the first place and then a human deciding whether to take the answer the answers in most cases still have confidence intervals you know confidence levels associated with them so and in health care it's great that we have this electronic medical record where the physicians decision of their clinicians decision about how to treat that patient is recorded in a lot of other areas of business we don't really have that kind of system of record to say you know what what decision did we make and why do we make it and so on so in a way I think health care despite being very backward in a lot of areas is kind of better off than then a lot of areas of business the other thing I often say about healthcare is if they're treating you badly and you die at least there will be a meeting about it in a healthcare institution in business you know we screw up a decision we push it under the rug nobody ever nobody ever considered it what about 30 years ago I think it was with Porter's second book you know and the concept of the value chain and sort of remaking the the understanding of strategy and you're talking about the you know the AP AP I economy and and the data flows within that can you help tie your concept you know the data flows the data value chain and the api's that connect them with the porters value chain across companies well it's an interesting idea I think you know companies are just starting to realize that we are in this API economy you don't have to do it all yourself the smart ones have without kind of modeling it in any systematic way like the porter value chain have said you know we we need to have other people linking to our information through api's google is fairly smart i think in saying will even allow that for free for a while and if it looks like there's money to be made in what start charging for access to those api so you know building the access and then thinking about the the revenue from it is one of the new principles of this approach but i haven't seen its i think would be a great idea for paper to say how do we translate the sort of value chain ideas a michael porter which were i don't know 30 years ago into something for the api oriented world that we live in today which you think would you think that might be appropriate for the sort of platform economics model of thinking that's emerging that's an interesting question i mean the platform people are quite interested in inner organizational connections i don't hear them as talking as much about you know the new rules of the api economy it's more about how to two sided and multi-sided platforms work and so on Michael Porter was a sort of industrial economist a lot of those platform people are economists so from that sense it's the same kind of overall thinking but lots of opportunity there to exploit I think so tell me what want to bring it back to kind of the chief data officer when one of the main themes of the symposium here I really like you talked about kind of there needs to be a balance of offense and defense because so much at least in the last couple of years we've been covering this you know governance and seems to be kind of a central piece of it but it's such an exciting subject it's exciting subject but you know you you put that purely in defense on and you know we get excited the companies that are you know building new products you know either you know saving or making more money with with data Kenny can you talk a little bit about kind of as you see how this chief data officer needs to be how that fits into your kind of four arrows yeah yeah well I don't know if I mentioned it in my talk but I went back and confirmed my suspicions that the sama Phi odd was the world's first chief data officer at Yahoo and I looked at what Osama did at Yahoo and it was very much data product and offense or unity established yahoo research labs you know not everything worked out well at Yahoo in retrospect but I think they were going in the direction of what interesting data products can can we create and so I think we saw a lot of kind of what I call to point o companies in the in the big data area in Silicon Valley sing it's not just about internal decisions from data it's what can we provide to customers in terms of data not just access but things that really provide value that means data plus analytics so you know linkedin they attribute about half of their membership to the people you may know data product and everybody else as a people you may know now well we these companies haven't been that systematic about how you build them and how do you know which one to actually take the market and so on but I think now more and more companies even big industrial companies are realizing that this is a distinct possibility and we oughta we ought to look externally with our data for opportunities as much as supporting internal and I guess for you talk to you know companies like Yahoo some of the big web companies the whole you know Big Data meme has been about allowing you know tools and processes to get to a broader you know piece of the economy you know the counterbalance that a little bit you know large public clouds and services you know how much can you know a broad spectrum of companies out there you know get the skill set and really take advantage of these tools versus you know or is it going to be something that I'm going to still going to need to go to some outside chores for some of this well you know I think it's all being democratized fairly rapidly and I read yesterday the first time the quote nobody ever got fired for choosing amazon web services that's a lot cheaper than the previous company in that role which was IBM where you had to build up all these internal capabilities so I think the human side is being democratized they're over a hundred company over 100 universities in the US alone that have analytics oriented degree programs so i think there's plenty of opportunity for existing companies to do this it's just a matter of awareness on the part of the management team I think that's what's lacking in most cases they're not watching your shows i guess and i along the lines of the you know going back 30 years we had a preference actually a precedent where the pc software sort of just exploded onto the scene and it was i want control over my information not just spreadsheets you know creating my documents but then at the same time aighty did not have those guardrails to you know help help people from falling off you know their bikes and getting injured what are the what tools and technologies do we have for both audiences today so that we don't repeat that mistake ya know it's a very interesting question and I think you know spreadsheets were great you know the ultimate democratization tool but depending on which study you believe 22 eighty percent of them had errors in them and there was some pretty bad decisions that were made sometimes with them so we now have the tools so that we could tell people you know that spreadsheet is not going to calculate the right value or you should not be using a pie chart for that visual display I think vendors need to start building in those guardrails as you put it to say here's how you use this product effectively in addition to just accomplishing your basic task but you wouldn't see those guardrails extending all the way back because of data that's being provisioned for the users well I think ultimately if we got to the point of having better control over our data to saying you should not be using that data element it's not you know the right one for representing you know customer address or something along those lines we're not there yet and the vast majority of companies I've seen a few that have kind of experimented with data watermarks or something to say yes this is the one that you're allowed to to use has been certified as the right one for that purpose but we need to do a lot more in that regard yeah all right so Tommy you've got a new book that came out earlier this year only humans need apply winners and losers in the age of smart machines so ask you the same question we asked eric donaldson and Auntie McAfee when they wrote the second Machine Age you know are we all out of job soon well I think big day and I have become a little more optimistic as we look in some depth at at the data I mean one there are a lot of jobs evolving working with these technologies and you know it's just somebody was telling me the other day that is that I was doing a radio interview from my book and the guy was hung who said you know I've made a big transition into podcasting he said but the vast majority of people in radio have not been able to make that transition so if you're willing to kind of go with the flow learn about new technologies how they work I think there are plenty of opportunities the other thing to think about is that these transitions tend to be rather slow I mean we had about in the United States in 1980 about half a million bank tellers since then we've had ATMs online banking etc give so many bank tellers we have in 2016 about half a million it's rather shocking i think i don't know exactly what they're all doing but we're pretty slow in making these transitions so i think those of us sitting here today or even watching her probably okay we'll see some job loss on the margins but anybody who's willing to keep up with new technologies and add value to the smart machines that come into the workplace i think is likely to be okay okay do you have any advice for people that either are looking at becoming you know chief data officers well yeah as I as you said balanced offense and defense defense is a very tricky area to inhabit as a CDO because you if you succeed and you prevent you know breaches and privacy problems and security issues and so on nobody gives you necessarily any credit for it or even knows that it's helps of your work that you were successful and if you fail it's obviously very visible and bad for your career too so I think you need to supplement defense with offense activities are analytics adding valued information digitization data products etc and then I think it's very important that you make nice with all the other data oriented c-level executives you know you may not want to report to the CIO or if you have a cheap analytics officer or chief information security officer chief digitization officer chief digital officer you gotta present a united front to your organization and figure out what's the division of labor who's going to do what in too many of these organizations some of these people aren't even talking to each other and it's crazy really and very confusing to the to the rest of the organization about who's doing what yeah do you see the CDO role but you know five years from now being a standalone you know peace in the organization and you know any guidance on where that should sit is structurally compared to say the CIO yeah I don't you know I I've said that ideally you'd have a CIO or somebody who all of these things reported to who could kind of represent all these different interests of the rest of the organization that doesn't mean that a CDO shouldn't engage with the rest of the business I think CIO should be very engaged with the rest of the business but i think this uncontrolled proliferation has not been a good thing it does mean that information and data are really important to organization so we need multiple people to address it but they need to be coordinated somehow in a smart CEO would say you guys get your act together and figure out sort of who does what tell me a structure I think multiple different things can work you can have it inside of IT outside of IT but you can at least be collaborating okay last question I've got is you talked about these errors and you know that they're not you know not one dies in the next one comes and you talked about you know we know how slow you know people especially are to change so what happened to the company that are still sitting in the 10 or 20 era as we see more 30 and 40 companies come yeah well it's not a good place to be in general and I think what we've seen is this in many industries the sophisticated companies with regard to IT are the ones that get more and more market share the the late adopters end up ultimately going out of business I mean you think about in retail who's still around Walmart was the most aggressive company in terms of Technology Walmart is the world's largest company in moving packages around the world FedEx was initially very aggressive with IT UPS said we better get busy and they did it to not too much left of anybody else sending packages around the world so I think in every industry ultimately the ones that embrace these ideas tend to be the ones who who prosper all right well Tom Davenport really appreciate this morning's keynote and sharing with our audience everything that's happening in the space will be back with lots more coverage here from the MIT CDO IQ symposium you're watching the q hi this is christopher

Las Vegas expensing the signal from the noise it's the kue covering you interconnect 2016 brought to you by IBM now your host John hurry and Dave vellante okay welcome back everyone we are live here in Las Vegas this is silicon angles the cube our flagship program when we go out to the events and extract the signal annoys we are at IBM interconnect 2016 it's our fifth year now doing all the IV meds now interconnecting out the cloud show I'm John furrier with my coach Dave vellante our next guest is Eric Herzog vice president of storage and software-defined at IBM welcome back you belong great to see you great thank you very much always loved helping guys out of the cube thank you very much for including us pleasure we are very cognitive today we get cognition going on the cube we have all kinds of real-time we've got api's and notifications or and we're going to stract some insight and predictive and prescriptive analytics from you right first what's going on with storage and software obviously storage right now you're seeing huge change Dell buying EMC which you know a lot about emc IBM buys the weather company two contrasting strategies but Stewart still it's the center of the value proposition we also heard Robert de Blanc say on stage today cheap compute he didn't say cheap storage storage visited it did he didn't say so long about cheap storage okay I stand corrected but you talk about a commoditization of resource still valuable I always said what's wrong with cheap compute want more of it I want more and more compute so storage does he changing the software values their last time we spoke about that what's the update in context to cloud what's the storage equation was a storage angle well for us there's a huge value proposition when both the cognitive side and in the cloud infrastructure side obviously with the tumultuous change in storage both from just where the world is going we believe that you ride the wave a flash and software-defined and that is our mantra as you know one of the industry analyst firms who tracks the numbers we were number one in flash capacity shift and number one in flash units last year are all flash and we've been number one several years in row and software-defined storage so while the storage envelope is changing if you open up that envelope we're writing the change inside that omelet which is flash software to find converged infrastructure with our pure power product and also with our partnership with Cisco on the verses stack that's two years in a row for flash leadership right yes charge same thing with software to bunt well the good thing is well the other guy leads in revenue we believe in a fair price for an outstanding award-winning product line on the software value now the cell where that fits in we had multiple guests on today we had you know Jamie Thomas former GM and storage now thinking a more systems view its horizontally composable infrastructure now our dead loss infrastructure as code how does that change the equation certainly we want storage but now you've got software driving the change where's the wisdom value points there well when you look at the software-defined infrastructure the magic fairy dust is in the software so we can work with our own hardware we can work with our competitors hardware over 300 different raise from our competitors are completely compatible with our software to find solutions for storage and we can use with white box if one of our channel partners our end users would rather have a white box storage bear hard drives from seagate OWD and some some flash and just a wrapper of metal we are software provides the value add for integration into hybrid cloud configurations in the cognitive configurations into the oceans of data and big data and into analytic environments all powered by software-defined storage ok so you've been on less than a year now all right you came on last summer right yes mid year so what nine months roughly yes inland what are the big learnings that you've encountered and then we'll start from there and then we're going to get into result are you going to transfer yeah I think the big learning is the world is evolving and a lot of the customer base hasn't gotten there yet so we're going to take them on that journey with flash software-defined converged infrastructure so we're going to lead that charge we're going to ride the wave not fight the wave sometimes iBM has fought the wave we've changed that in the storage world so we're going to be a leader we're are a leader in flash we're leader and software-defined are converged infrastructure particularly with Cisco had an incredible year last year you know for our first year we had over 250 customers over 400 units sold and while there are others who are bigger in our first year that was one of the best first years in the converging instructor of any vendor and that's the power of our software to find portfolio our flash portfolio and the things we deliver from a storage perspective that helps customers they convert either the software-defined infrastructure or converged infrastructure so that case so that sort of answers the question as to how you're going to deal with immediate it's not unique you got old stuff that's declining you got new stuff that's growing like crazy but still not big enough to offset the decline of the old stuff you got currency headwinds but the there's light at the end of the tunnel in terms of that transformation to those newer architectures is that fair yes absolutely last year if you look whether it was in the channel with our award from computer reseller news as the best enterprise storage provider in the world and that was in the fall of 2015 so when you look at the channel and what they're looking for from their provider unlike the guys in hopkinton in Austin who are merging they didn't win that IBM one that so great solution for our Channel Partner base we've won awards for software-defined for all flash we did very well in the hybrid or a category last year with several product of the Year awards so again yes we have an older installed base one of our big goals this year is to refresh that installed base with software-defined with all flash with a comprehensive family of hybrid raise to make sure that people understand this is where the market is going this is where you need to go to drive cognitive value hybrid cloud value quite honestly it's all about applications workloads and use cases and even though I've done storage for 31 years let's face it most CEOs can't stand storage have to put it in the language that they understand which is software value-add and how it can enhance their ability to meet the business SLA s that the CIO is under pressure from the VP of Operations the VP of Marketing the finance side and of course ultimately the CEO so in this business I've been in the business maybe not 31 years but maybe 35 okay so the product portfolio is very very important one of the criticisms I've had of IBM over the years has been just not enough product innovation coming out great R&D but doesn't hit the pipeline so when you came to see us in Boston you showed us a little you know glimpse of the roadmap and it's very clear that's accelerating I wonder if you could talk about that what can you share with our audience sure we've done it we've done a couple things first of all we have the flash religion we acquired a flash company get started but so did several of our competitors in addition to spending money on that acquisition we've invested over a billion dollars in engineering resources on the flash site software-defined we're spending a billion dollars in that as you know we recently bought the award-winning and market-leading object storage technology with clever safe and we spent money on that so IBM is putting its money where its mouth is its focus is on storage and how storage enhances hybrid clouds cognitive big data analytics and you know deals with these oceans of data that our customers are facing and how do you manage that and how do you make the data more valuable and more productive to the business because that's what about it's not about storage it's about the management that data to optimize our customers business and how we can deliver that with effective cost so clever save was mentioned in the keynote in context to LeBlanc's reference to the digital transport transit of you know new stream the video stuff interesting how he plugged in clever see how it is that relate I mean honestly I know it's a recent acquisition is it's just the objects towards an unstructured data why is clever stay plugged into that kind of portfolio of those four companies you mentioned around you know is when you develop that type of technology you end up with incredible amounts of data and an object store is designed to handle exabytes of capacity and exabytes of information it doesn't necessarily have to be fast for example video surveillance data and all kinds of other data may be hot for a while and one of the values of clever say for example is on our spectrum scale product which is our scale out network attached storage actually will automatically cheer too clever safe we're in a public beta right now our spectrum protect product we've also talked about is going to support clever safe either as an source so you could back it up but more importantly as a target so you could take gobs of data and back it up into a clever safe repository when you've got oceans of data and people are generating exabytes and exabytes of data what you can get with clever safe on premises or in a cloud configuration allows you to handle this extensive data growth cost-effectively and in an easy to manage and configure way about the end where relationship with storage obviously there in an announcement today with IBM EMC recently had an announcement with VMware and VX rail rom and the big debate was I see his hybrid cloud was deposition using their software stack to be a glue and into the hybrid cloud journey but one of the comments that we made note of that we captured on the prowl chat was from Keith Townsend one of our members of our community he wrote it took Netflix seven years to move to the public cloud meaning everything all flash they had one of the first all flesh implementations that Amazon ever rolled out what does that mean for the average VMware customer in this case IBM customer from a product perspective so you got you know your relationship VMware you have this notion of hybrid cloud right it took Netflix seven years there in the cutting edge what does that mean for the average customer this whole notion of using software in storage plugging the hybrid cloud it took them seven years was it 70 years for an average company well you've got to remember that that started a while ago and the move to the hybrid cloud is just accelerated dramatically so our spectrum scale product our spectrum accelerate product our spectrum protect product all are designed for hybrid cloud configurations right this minute they're easy to employ they're easy to use they're all available in softlayer they're also filled with other cloud providers spectrum protect as close to a hundred different msps and csps who provide backup and archive services with award-winning spectrum protect so our specialist families and I've different than it was seven years ago today actually its accelerated easy-to-deploy it's easy to use you have a wide choice of msps and csps to use whether it's soft layer or other providers in the industry and our software-defined storage supports all of that vendor base regardless of whether it's IBM SoftLayer or other cloud providers as well well you could argue to Netflix did it at a time when it was early days right it was near the Pioneer they were they were final trees hack and you know right they're the ones with the arrows in motion tracking chaos monkeys everywhere so so Tommy you guys okay all right sorry John I want to talk about the state of the industry it's a lot of interesting stuff going on even in the business for four decades you understand some of the trends you've seen a lot of the ebb and the flow how would you describe where we're at right now seems like an uncertain time so storage is incredibly tumultuous right now one of the good things about storage it's constantly filled with innovation as you know from my past I've done seven startups thank God five have been acquired so I can wear a Hawaiian shirt they're expensive these days ISA why insurance so every five six years you have a wave of startups of the storage business that's not common in most other segments of the IT market space but in storage it is so you have a constant wave of startups that happens on a normal basis and we're in one of those phases right now at the same time you have massive change in the Tier one vendor base EMC and Dell emerging HP splits into two network appliance which had been an incredibly great company it's fast has now missed their numbers almost eight quarters in Rowan just last week announced they're laying off 1500 people so the world is changing dramatically also the applications workloads and use cases are changing dramatically so you've gone to a cognitive ear you don't have cereal management of data you now have parallel management of data you don't want databases that react or let's say a data warehouse it takes 30 hours to run a report you want the report to run in one so if you will real-time cognitive data availability and ability to analyze that data and that is dramatically changing what startups are out how successful they'll be how the tier 1 vendors are reacting you know for example one of the great things about IBM is we are focused on flash which is the fastest grain storage systems market and software to find which was one of the fastest growing storage software markets and we're leaders in both market spaces so when you open up the envelope of what's inside storage it's a slow growth market three to four percent per year is all it's growing but certain segments are growing rapidly and IBM focuses on those rapid growth segments now but the cloud piece right so you make you guys are talking about clever safe before I was thought that was a cloud acquisition which it was in part right but it's also something that falls into the storage portfolio right and that's because clever safe can be configured in a number of different ways on-premises only cloud only or hybrid configuration we can have an on-premises clever safe configuration talking to a cloud-based configuration so again part of IBM strategy to make sure that from a storage perspective all of our software to find infrastructure and what we acquired with clever safe are designed for hybrid cloud configurations or private cloud configurations or public again our spectrum family is used by hundreds of public cloud service writers to deliver a backup service for example a spectrum protect so the reason my question was this very clearly in effect on that you talked about three percent or whatever you know the the latest numbers are it's flat Marcus gases and flat is flat but the cloud market of course is growing like that from a smaller base but it's clearly having an impact on demand is that a fair statement yeah I think what's happening when you look at it from a storage perspective where you're really having the biggest impact on cloud is in the lower end in the entry space yes the capacity is growing exponentially but whether it's the department level of a giant at global fortune 500 whether it's Herzog's bar and grill or a midsize company when they need a small array a lot of times are going to a public cloud configuration so that low end of the market is shrinking at the same time when you do software-defined if you're one of the tier 1 vendors the storage could come from off-the-shelf hard drives so the values in the software but that also delivers a revenue hit to the vendor base and Ashley when you think about how would you get incredible performance five or six years ago you would have bought an array that was five to eight million dollars best case if not closer to 10 you'd be lucky if you could get 200,000 I ops maybe you could get five milliseconds latency today at an average sale place of 300,000 dollars we can deliver over a million I ops and sub hundred micro center and latency so you don't need to buy your big iron at five eight 10 million you can do it with something for three hundred thousand dollars huge the bottleneck John okay I mean this is back to our kena brian.krall from Apple was on stage another great company leaders in the delivering great value but he made a comment I want to get your reaction to because I know it's a phone analogy but I want to bring into storage if the values and the software and all flash is the bet you guys are making the numbers are impressive in terms of performance in terms of I ops throughput and and cost per puss per megabyte he said you got to get closer to the hardware to write your native apps and he's referring to the iphone software app using Swift and xcode to the hardware so in storage look different how does the software piece take advantage of the hardware and is that built-in is an obstacle the customer because we're seeing this notion of okay take care of it take advantage of the hardware so what was how do you reconcile the we've done some very strong things there so let's take for example our spectrum virtualized software spectrum virtualize allows enterprise class data services across heterogeneous storage environments hours our competitors and anything that's white box over 300 arrays we have taken the spectrum virtualized platform and integrate it into our v nine thousand flash systems all-flash array into our mid tier storwize v7000 and our mid tier storwize v5000 which we just launched last week three new configurations we also have the sand volume controller but what we've done is integrate that spectrum virtualized software which rides a virtual back end of all storage not just our own provides a single way to replicate a single way to snapshot transparent block migration on the fly and integrate that right into flash systems and storwize as a software comes as a hard annick Stauffer comes with it exactly it's built into the size of Jeff managed as a code or estructuras code like an apple programa billion native app to the iphone what does that develop or doing with you guys is it through that software layer or how they could be right i mean the key thing when you look from a DevOps perspective they want to quickly be able to provision storage okay and with things like all the spectrum family and with the gooeys we've implemented into our store wise our XIV and all of our storage products it's very easy to deploy storage you can do it in minutes so whether the DevOps guy does or where the deadlock flight calls the storage guy the bottom line is they can get the storage up and running in a virtual environment a containerized environment in a matter of minutes and from a DevOps perspective that's what they want so we're able to meet the needs of the DevOps guy but also the traditional storage vendor as well don't get one last question for me for the henna we've run out of time they might have one more but I want to get your take on this because it's really been an interesting industry chess game with VCE and VMware and EMC doing the hyper converged x4 star calling it this hyper conversion without Cisco right this is because no longer you mentioned you in partnership with Cisco so VCC and bx rails was talked about last week what's going on with VCE is it still going to be around you see you're taking multiple forms is the increased breadth of solution is going to be multi-vendor what's your in it what you're taking on so you were at IBM cell you have relationship with cisco has that how does that what a customer's deal and what does the customer do because they're like okay who do I so I think there's a couple things that customers to look at first of all there's going to be a transformation VCE as it was originally constructed a partnership with cisco EMC and VMware will not exist after the acquisition this is my theory what will happen this distinctive sorry Cisco is go in there's no luck involved so all happen is those Cisco servers will be transitioned now and dell servers will be tradition did it's exactly what's going to happen so cisco is aware of this and cisco has been engaging with other partners like i mentioned the vs. tak had the best first year of any converged infrastructure in the history within its first year why well in the middle of last year what happened Dell an EMC an announced a merger so a lot of the business partners a lot of the end users there's cause for concern and EMC is already taken Cisco out of a number of configurations and there's a number of things for an end-user to think about one look at the development budgets what was the EMC development budget what's the dell development budget and substantially lower EMC did an outstanding job of acquiring startups with the debt load that's been written about publicly not just in the storage fresh but really in the financial press will be able to afford to buy a bunch of cool startups like EMC used to do the old days hard to say an EMC well I thought of stata domain was a great acquisition for uniting isilon same thing will they be able to continue to do that and like IBM EMC has a pretty good reputation for support and service that's not really reputation of the guys in Austin their reputation is cost-effective rapid delivery not necessarily the best important service the enterprise side people looking for that enterprise-class important service so those the questions that a customer needs to ask at the end user level where a channel partner use a civ as this merger goes for how's it going to impact the roadmap for the future the development expense my support capability those are things that have different models in those two companies so being should see how it pans out unfortunately we're out of time because we could do a whole cube second just on that area thanks for coming by give you the last word what does the digital transformation for the customer of IBM the buyer when they talked to you in the elevator and they say hey what's the storage angle on this digital treasure where the stores fit into my digital transformation what's the what's the bumper sticker what's the value proposition well the key thing digital transformation is a different sort of data it's been data for years and years and years data has to sit on storage the better the storage is your better the digital environment is the faster it is things like flash systems or our spectrum scale for cognitive the better that date is going to be so the digital era is powered by storage underneath it's like the foundation of a home good foundation great home good foundation great digital data great foundation the cube day one here more foundational coverage tomorrow the cube conversation will continue tomorrow day two we had more interviews today but tomorrow a lot of big names the biggest names in tech most powerful people here IBM interconnect is the cube we right back with more coverage here on day ones wrap up after the short break