(Upbeat intro music) >> Thanks guys. Hi everybody. Welcome back to The Spheres. My name is Dave Vellante and you're watching theCubes continuous coverage of AWS storage day. I'm really excited to bring on Wayne Duso. Wayne is the vice-president of AWS Storage Edge and Data Governance Services. Wayne, two Boston boys got to come to Seattle to see each other. You know. Good to see you, man. >> Good to see you too. >> I mean, I'm not really from Boston. The guys from East Boston give me crap for saying that. [Wayne laughs] That my city, right? You're a city too. >> It's my city as well I'm from Charlestown so right across the ocean. >> Charlestown is actually legit Boston, you know I grew up in a town outside, but that's my city. So all the sports fan. So, hey great keynote today. We're going to unpack the keynote and, and really try to dig into it a little bit. You know, last 18 months has been a pretty bizarre, you know, who could have predicted this. We were just talking to my line about, you know, some of the permanent changes and, and even now it's like day to day, you're trying to figure out, okay, you know, what's next, you know, our business, your business. But, but clearly this has been an interesting time to say the least and the tailwind for the Cloud, but let's face it. How are customers responding? How are they changing their strategies as a result? >> Yeah. Well, first off, let me say it's good to see you. It's been years since we've been in chairs across from one another. >> Yeah. A couple of years ago in Boston, >> A couple of years ago in Boston. I'm glad to see you're doing well. >> Yeah. Thanks. You too. >> You look great. (Wayne Laughs) >> We get the Sox going. >> We'll be all set. >> Mm Dave you know, the last 18 months have been challenging. There's been a lot of change, but it's also been inspiring. What we've seen is our customers engaging the agility of the Cloud and appreciating the cost benefits of the Cloud. You know, during this time we've had to be there for our partners, our clients, our customers, and our people, whether it's work from home, whether it's expanding your capability, because it's surging say a company like zoom, where they're surging and they need more capability. Our cloud capabilities have allowed them to function, grow and thrive. In these challenging times. It's really a privilege that we have the services and we have the capability to enable people to behave and, execute and operate as normally as you possibly can in something that's never happened before in our lifetimes. It's unprecedented. It's a privilege. >> Yeah. I mean, I agree. You think about it. There's a lot of negative narrative, in the press about, about big tech and, and, and, you know, the reality is, is big tech has, has stood and small tech has stepped up big time and we were really think about it, Wayne, where would we be without, without tech? And I know it sounds bizarre, but we're kind of lucky. This pandemic actually occurred when it did, because had it occurred, you know, 10 years ago it would have been a lot tougher. I mean, who knows the state of vaccines, but certainly from a tech standpoint, the Cloud has been a savior. You've mentioned Zoom. I mean, you know, we, productivity continues. So that's been, been pretty key. I want to ask you, in you keynote, you talked about two paths to, to move to the Cloud, you know, Vector one was go and kind of lift and shift if I got it right. And then vector two was modernized first and then go, first of all, did I get that right? And >> Super close and >> So help me course correct. And what are those, what are those two paths mean for customers? How should we think about that? >> Yeah. So we want to make sure that customers can appreciate the value of the Cloud as quickly as they need to. And so there's, there's two paths and with not launches and, we'll talk about them in a minute, like our FSX for NetApp ONTAP, it allows customers to quickly move from like to like, so they can move from on-prem and what they're using in terms of the storage services, the processes they use to administer the data and manage the data straight onto AWS, without any conversion, without any change to their application. So I don't change to anything. So storage administrators can be really confident that they can move. Application Administrators know it will work as well, if not better with the Cloud. So moving onto AWS quickly to value that's one path. Now, once they move on to AWS, some customers will choose to modernize. So they will, they will modernize by containerizing their applications, or they will modernize by moving to server-less using Lambda, right? So that gives them the opportunity at the pace they want as quickly or as cautiously as they need to modernize their application, because they're already executing, they're already operating already getting value. Now within that context, then they can continue that modernization process by integrating with even more capabilities, whether it's ML capabilities or IOT capabilities, depending on their needs. So it's really about speed agility, the ability to innovate, and then the ability to get that flywheel going with cost optimization, feed those savings back into betterment for their customers. >> So how did the launches that you guys have made today and even, even previously, do they map into those two paths? >> Yeah, they do very well. >> How so? Help us understand that. >> So if we look, let's just run down through some of the launches today, >> Great. >> And we can, we can map those two, those two paths. So like we talked about FSX for NetApp ONTAP, or we just like to say FSX for ONTAP because it's so much easier to say. [Dave laughs] >> So FSX for ONTAP is a clear case of move. >> Right >> EBS io2 Block Express for Sand, a clear case of move. It allows customers to quickly move their sand workloads to AWS, with the launch of EBS direct API, supporting 64 terabyte volumes. Now you can snapshot your 64 terabyte volumes on-prem to already be in AWS, and you can restore them to an EBS io2 Block Express volume, allowing you to quickly move an ERP application or an Oracle application. Some enterprise application that requires the speed, the durability and the capability of VBS super quickly. So that's, those are good examples of, of that. In terms of the modernization path, our launch of AWS transfer managed workflows is a good example of that. Manage workflows have been around forever. >> Dave: Yeah. >> And, and customers rely on those workflows to run their business, but they really want to be able to take advantage of cloud capabilities. They want to be able to, for instance, apply ML to those workflows because it really kind of makes sense that their workloads are people related. You can apply artificial intelligence to them, >> Right >> This is an example of a service that allows them to modify those workflows, to modernize them and to build additional value into them. >> Well. I like that example. I got a couple of followup questions, if I may. Sticking on the machine learning and machine intelligence for a minute. That to me is a big one because when I was talking to my line about this is this, it's not just you sticking storage in a bucket anymore, right? You're invoking other services: machine intelligence, machine learning, might be database services, whatever it is, you know, streaming services. And it's a service, you know, there it is. It's not a real complicated integration. So that to me is big. I want to ask you about the block side of things >> Wayne: Sure >> You built in your day, a lot of boxes. >> Wayne: I've built a lot of boxes. >> And you know, the Sand space really well. >> Yeah. >> And you know, a lot of people probably more than I do storage admins that say you're not touching my Sand, right? And they just build a brick wall around it. Okay. And now eventually it ages out. And I think, you know, that whole cumbersome model it's understood, but nonetheless, their workloads and our apps are running on that. How do you see that movement from those and they're the toughest ones to move. The Oracle, the SAP they're really, you know, mission critical Microsoft apps, the database apps, hardcore stuff. How do you see that moving into the Cloud? Give us a sense as to what customers are telling you. >> Storage administrators have a hard job >> Dave: Yeah >> And trying to navigate how they move from on-prem to in Cloud is challenging. So we listened to the storage administrators, even when they tell us, No. we want to understand why no. And when you look at EBS io2 Block Express, this is in part our initial response to moving their saying into the Cloud super easily. Right? Because what do they need? They need performance. They need their ability. They need availability. They need the services to be able to snap and to be able to replicate their Capa- their storage. They need to know that they can move their applications without having to redo all they know to re-plan all they work on each and every day. They want to be able to move quickly and confidently. EBS io2 Block Express is the beginning of that. They can move confidently to sand in the Cloud using EBS. >> Well, so why do they say 'no'? Is it just like the inherent fear? Like a lawyer would say, don't do that, you know, don't or is it just, is it, is it a technical issue? Is it a cultural issue? And what are you seeing there? >> It's a cultural issue. It's a mindset issue, but it's a responsibility. I mean, these folks are responsible for the, one of the most important assets that you have. Most important asset for any company is people. Second most important asset is data. These folks are responsible for a very important asset. And if they don't get it right, if they don't get security, right. They don't get performance right. They don't get durability right. They don't get availability right. It's on them. So it's on us to make sure they're okay. >> Do you see it similar to the security discussion? Because early on, I was just talking to Sandy Carter about this and we were saying, you remember the CIA deal? Right? So I remember talking to the financial services people said, we'll never put any data in the Cloud. Okay they got to be one of your biggest industries, if not your biggest, you know customer base today. But there was fear and, and the CIA deal changed that. They're like, wow CIA is going to the Cloud They're really security conscious. And that was an example of maybe public sector informing commercial. Do you see it as similar? I mean there's obviously differences, but is it a sort of similar dynamic? >> I do. I do. You know, all of these ilities right. Whether it's, you know, durability, availability, security, we'll put ility at the end of that somehow. All of these are not jargon words. They mean something to each persona, to each customer. So we have to make sure that we address each of them. So like security. And we've been addressing the security concern since the beginning of AWS, because security is job number one. And operational excellence job number two. So, a lot of things we're talking about here is operational excellence, durability, availability, likeness are all operational concerns. And we have to make sure we deliver against those for our customers. >> I get it. I mean, the storage admins job is thankless, but the same time, you know, if your main expertise is managing LUNs, your growth path is limited. So they, they want to transform. They want to modernize their own careers. >> I love that. >> It's true. Right? I mean it's- >> Yeah. Yeah. So, you know, if you're a storage administrator today, understanding the storage portfolio that AWS delivers will allow you, and it will enable you empower you to be a cloud storage administrator. So you have no worry because you're, let's take FSX for ONTAP. You will take the skills that you've developed and honed over years and directly apply them to the workloads that you will bring to the Cloud. Using the same CLIs, The same APIs, the same consoles, the same capabilities. >> Plus you mentioned you guys announced, you talked about AWS backup services today, announced some stuff there. I see security governance, backup, identity access management, and governance. These are all adjacency. So if you're a, if you're a cloud storage administrator, you now are going to expand your scope of operations. You, you know, you're not going to be a security, Wiz overnight by any means, but you're now part of that, that rubric. And you're going to participate in that opportunity and learn some things and advance your career. I want to ask you, before we run out of time, you talked about agility and cost optimization, and it's kind of the yin and the yang of Cloud, if you will. But how are these seemingly conflicting forces in sync in your view. >> Like many things in life, right? [Wayne Laughs] >> We're going to get a little spiritually. >> We might get a little philosophical here. [Dave Laughs] >> You know, cloud announced, we've talked about two paths and in part of the two paths is enabling you to move quickly and be agile in how you move to the Cloud. Once you are on the Cloud, we have the ability through all of the service integrations that we have. In your ability to see exactly what's happening at every moment, to then cost optimize, to modernize, to cost optimize, to improve on the applications and workloads and data sets that you've brought. So this becomes a flywheel cost optimization allows you to reinvest, reinvest, be more agile, more innovative, which again, returns a value to your business and value to your customers. It's a flywheel effect. >> Yeah. It's kind of that gain sharing. Right? >> It is. >> And, you know, it's harder to do that in a, in an on-prem world, which everything is kind of, okay, it's working. Now boom, make it static. Oh, I want to bring in this capability or this, you know, AI. And then there's an integration challenge >> That's true. >> Going on. Not, not that there's, you know, there's differences in, APIs. But that's, to me is the opportunity to build on top of it. I just, again, talking to my line, I remember Andy Jassy saying, Hey, we purposefully have created our services at a really atomic level so that we can get down to the primitives and change as the market changes. To me, that's an opportunity for builders to create abstraction layers on top of that, you know, you've kind of, Amazon has kind of resisted that over the years, but, but almost on purpose. There's some of that now going on specialization and maybe certain industry solutions, but in general, your philosophy is to maintain that agility at the really granular level. >> It is, you know, we go back a long way. And as you said, I've built a lot of boxes and I'm proud of a lot of the boxes I've built, but a box is still a box, right? You have constraints. And when you innovate and build on the Cloud, when you move to the Cloud, you do not have those constraints, right? You have the agility, you can stand up a file system in three seconds, you can grow it and shrink it whenever you want. And you can delete it, get rid of it whenever you want back it up and then delete it. You don't have to worry about your infrastructure. You don't have to worry about is it going to be there in three months? It will be there in three seconds. So the agility of each of these services, the unique elements of all of these services allow you to capitalize on their value, use what you need and stop using it when you don't, and you don't have the same capabilities when you use more traditional products. >> So when you're designing a box, how is your mindset different than when you're designing a service? >> Well. You have physical constraints. You have to worry about the physical resources on that device for the life of that device, which is years. Think about what changes in three or five years. Think about the last two years alone and what's changed. Can you imagine having been constrained by only having boxes available to you during this last two years versus having the Cloud and being able to expand or contract based on your business needs, that would be really tough, right? And it has been tough. And that's why we've seen customers for every industry accelerate their use of the Cloud during these last two years. >> So I get that. So what's your mindset when you're building storage services and data services. >> So. Each of the surfaces that we have in object block file, movement services, data services, each of them provides very specific customer value and each are deeply integrated with the rest of AWS, so that when you need object services, you start using them. The integrations come along with you. When, if you're using traditional block, we talked about EBS io2 Block Express. When you're using file, just the example alone today with ONTAP, you know, you get to use what you need when you need it, and the way that you're used to using it without any concerns. >> (Dave mumbles) So your mindset is how do I exploit all these other services? You're like the chef and these are ingredients that you can tap and give a path to your customers to explore it over time. >> Yeah. Traditionally, for instance, if you were to have a filer, you would run multiple applications on that filer you're worried about. Cause you should, as a storage administrator, will each of those applications have the right amount of resources to run at peak. When you're on the Cloud, each of those applications will just spin up in seconds, their own file system. And those file systems can grow and shrink at whatever, however they need to do so. And you don't have to worry about one application interfering with the other application. It's not your concern anymore. And it's not really that fun to do. Anyway. It's kind of the hard work that nobody really you know, really wants to reward you for. So you can take your time and apply it to more business generate, you know, value for your business. >> That's great. Thank you for that. Okay. I'll I'll give you the last word. Give us the bumper sticker on AWS Storage day. Exciting day. The third AWS storage day. You guys keep getting bigger, raising the bar. >> And we're happy to keep doing it with you. >> Awesome. >> So thank you for flying out from Boston to see me. >> Pleasure, >> As they say. >> So, you know, this is a great opportunity for us to talk to customers, to thank them. It's a privilege to build what we build for customers. You know, our customers are leaders in their organizations and their businesses for their customers. And what we want to do is help them continue to be leaders and help them to continue to build and deliver we're here for them. >> Wayne. It's great to see you again. Thanks so much. >> Thanks. >> Maybe see you back at home. >> All right. Go Sox. All right. Yeah, go Sox. [Wayne Laughs] All right. Thank you for watching everybody. Back to Jenna Canal and Darko in the studio. Its Dave Volante. You're watching theCube. [Outro Music]

(pensive music) >> Thank you, Jenna, it's great to see you guys and thank you for watching theCUBE's continuous coverage of AWS Storage Day. We're here at The Spheres, it's amazing venue. My name is Dave Vellante. I'm here with Mai-Lan Tomsen Bukovec who's Vice President of Block and Object Storage. Mai-Lan, always a pleasure to see you. Thanks for coming on. >> Nice to see you, Dave. >> It's pretty crazy, you know, this is kind of a hybrid event. We were in Barcelona a while ago, big hybrid event. And now it's, you know, it's hard to tell. It's almost like day-to-day what's happening with COVID and some things are permanent. I think a lot of things are becoming permanent. What are you seeing out there in terms of when you talk to customers, how are they thinking about their business, building resiliency and agility into their business in the context of COVID and beyond? >> Well, Dave, I think what we've learned today is that this is a new normal. These fluctuations that companies are having and supply and demand, in all industries all over the world. That's the new normal. And that has what, is what has driven so much more adoption of cloud in the last 12 to 18 months. And we're going to continue to see that rapid migration to the cloud because companies now know that in the course of days and months, you're, the whole world of your expectations of where your business is going and where, what your customers are going to do, that can change. And that can change not just for a year, but maybe longer than that. That's the new normal. And I think companies are realizing it and our AWS customers are seeing how important it is to accelerate moving everything to the cloud, to continue to adapt to this new normal. >> So storage historically has been, I'm going to drop a box off at the loading dock and, you know, have a nice day. And then maybe the services team is involved in, in a more intimate way, but you're involved every day. So I'm curious as to what that permanence, that new normal, some people call it the new abnormal, but it's the new normal now, what does that mean for storage? >> Dave, in the course of us sitting here over the next few minutes, we're going to have dozens of deployments go out all across our AWS storage services. That means our customers that are using our file services, our transfer services, block and object services, they're all getting improvements as we sit here and talk. That is such a fundamentally different model than the one that you talked about, which is the appliance gets dropped off at the loading dock. It takes a couple months for it to get scheduled for setup and then you have to do data migration to get the data on the new appliance. Meanwhile, we're sitting here and customers storage is just improving, under the hood and in major announcements, like what we're doing today. >> So take us through the sort of, let's go back, 'cause I remember vividly when, when S3 was announced that launched this cloud era and people would, you know, they would do a lot of experimentation of, we were storing, you know, maybe gigabytes, maybe even some terabytes back then. And, and that's evolved. What are you seeing in terms of how people are using data? What are the patterns that you're seeing today? How is that different than maybe 10 years ago? >> I think what's really unique about AWS is that we are the only provider that has been operating at scale for 15 years. And what that means is that we have customers of all sizes, terabytes, petabytes, exabytes, that are running their storage on AWS and running their applications using that storage. And so we have this really unique position of being able to observe and work with customers to develop what they need for storage. And it really breaks down to three main patterns. The first one is what I call the crown jewels, the crown jewels in the cloud. And that pattern is adopted by customers who are looking at the core mission of their business and they're saying to themselves, I actually can't scale this core mission on on-premises. And they're choosing to go to the cloud on the most important thing that their business does because they must, they have to. And so, a great example of that is FINRA, the regulatory body of the US stock exchanges, where, you know, a number of years ago, they took a look at all the data silos that were popping up across their data centers. They were looking at the rate of stock transactions going up and they're saying, we just can't keep up. Not if we want to follow the mission of being the watchdog for consumers, for transactions, for stock transactions. And so they moved that crown jewel of their application to AWS. And what's really interesting Dave, is, as you know, 'cause you've talked to many different companies, it's not technology that stops people from moving to the cloud as quick as they want to, it's culture, it's people, it's processes, it's how businesses work. And when you move the crown jewels into the cloud, you are accelerating that cultural change and that's certainly what FINRA saw. Second thing we see, is where a company will pick a few cloud pilots. We'll take a couple of applications, maybe one or a several across the organization and they'll move that as sort of a reference implementation to the cloud. And then the goal is to try to get the people who did that to generalize all the learning across the company. That is actually a really slow way to change culture. Because, as many of us know, in large organizations, you know, you have, you have some resistance to other organizations changing culture. And so that cloud pilot, while it seems like it would work, it seems logical, it's actually counter-productive to a lot of companies that want to move quickly to the cloud. And the third example is what I think of as new applications or cloud first, net new. And that pattern is where a company or a startup says all new technology initiatives are on the cloud. And we see that for companies like McDonald's, which has transformed their drive up experience by dynamically looking at location orders and providing recommendations. And we see it for the Digital Athlete, which is what the NFL has put together to dynamically take data sources and build these models that help them programmatically simulate risks to player health and put in place some ways to predict and prevent that. But those are the three patterns that we see so many customers falling into depending on what their business wants. >> I like that term, Digital Athlete, my business partner, John Furrier, coined the term tech athlete, you know, years ago on theCUBE. That third pattern seems to me, because you're right, you almost have to shock the system. If you just put your toe in the water, it's going to take too long. But it seems like that third pattern really actually de-risks it in a lot of cases, it's so it's said, people, who's going to argue, oh, the new stuff should be in the cloud. And so, that seems to me to be a very sensible way to approach that, that blocker, if you will, what are your thoughts on that? >> I think you're right, Dave. I think what it does is it allows a company to be able to see the ideas and the technology and the cultural change of cloud in different parts of the organization. And so rather than having a, one group that's supposed to generalize it across an organization, you get it decentralized and adopted by different groups and the culture change just goes faster. >> So you, you bring up decentralization and there's a, there's an emerging trend referred to as a data mesh. It was, it was coined, the term coined by Zhamak Dehghani, a very thought-provoking individual. And the concept is basically the, you know, data is decentralized, and yet we have this tendency to sort of shove it all into, you know, one box or one container, or you could say one cloud, well, the cloud is expanding, it's the cloud is, is decentralizing in many ways. So how do you see data mesh fitting in to those patterns? >> We have customers today that are taking the data mesh architectures and implementing them with AWS services. And Dave, I want to go back to the start of Amazon, when Amazon first began, we grew because the Amazon technologies were built in microservices. Fundamentally, a data mesh is about separation or abstraction of what individual components do. And so if I look at data mesh, really, you're talking about two things, you're talking about separating the data storage and the characteristics of data from the data services that interact and operate on that storage. And with data mesh, it's all about making sure that the businesses, the decentralized business model can work with that data. Now our AWS customers are putting their storage in a centralized place because it's easier to track, it's easier to view compliance and it's easier to predict growth and control costs. But, we started with building blocks and we deliberately built our storage services separate from our data services. So we have data services like Lake Formation and Glue. We have a number of these data services that our customers are using to build that customized data mesh on top of that centralized storage. So really, it's about at the end of the day, speed, it's about innovation. It's about making sure that you can decentralize and separate your data services from your storage so businesses can go faster. >> But that centralized storage is logically centralized. It might not be physically centralized, I mean, we put storage all over the world, >> Mai-Lan: That's correct. >> right? But, but we, to the developer, it looks like it's in one place. >> Mai-Lan: That's right. >> Right? And so, so that's not antithetical to the concept of a data mesh. In fact, it fits in perfectly to the point you were making. I wonder if we could talk a little bit about AWS's storage strategy and it started of course, with, with S3, and that was the focus for years and now of course EBS as well. But now we're seeing, we heard from Wayne this morning, the portfolio is expanding. The innovation is, is accelerating that flywheel that we always talk about. How would you characterize and how do you think about AWS's storage strategy per se? >> We are a dynamically and constantly evolving our AWS storage services based on what the application and the customer want. That is fundamentally what we do every day. We talked a little bit about those deployments that are happening right now, Dave. That is something, that idea of constant dynamic evolution just can't be replicated by on-premises where you buy a box and it sits in your data center for three or more years. And what's unique about us among the cloud services, is again that perspective of the 15 years where we are building applications in ways that are unique because we have more customers and we have more customers doing more things. So, you know, I've said this before. It's all about speed of innovation Dave, time and change wait for no one. And if you're a business and you're trying to transform your business and base it on a set of technologies that change rapidly, you have to use AWS services. Let's, I mean, if you look at some of the launches that we talk about today, and you think about S3's multi-region access points, that's a fundamental change for customers that want to store copies of their data in any number of different regions and get a 60% performance improvement by leveraging the technology that we've built up over, over time, leveraging the, the ability for us to route, to intelligently route a request across our network. That, and FSx for NetApp ONTAP, nobody else has these capabilities today. And it's because we are at the forefront of talking to different customers and that dynamic evolution of storage, that's the core of our strategy. >> So Andy Jassy used to say, oftentimes, AWS is misunderstood and you, you comfortable with that. So help me square this circle 'cause you talked about things you couldn't do on on-prem, and yet you mentioned the relationship with NetApp. You think, look at things like Outposts and Local Zones. So you're actually moving the cloud out to the edge, including on-prem data centers. So, so how do you think about hybrid in that context? >> For us, Dave, it always comes back to what the customer's asking for. And we were talking to customers and they were talking about their edge and what they wanted to do with it. We said, how are we going to help? And so if I just take S3 for Outposts, as an example, or EBS and Outposts, you know, we have customers like Morningstar and Morningstar wants Outposts because they are using it as a step in their journey to being on the cloud. If you take a customer like First Abu Dhabi Bank, they're using Outposts because they need data residency for their compliance requirements. And then we have other customers that are using Outposts to help, like Dish, Dish Networks, as an example, to place the storage as close as account to the applications for low latency. All of those are customer driven requirements for their architecture. For us, Dave, we think in the fullness of time, every customer and all applications are going to be on the cloud, because it makes sense and those businesses need that speed of innovation. But when we build things like our announcement today of FSx for NetApp ONTAP, we build them because customers asked us to help them with their journey to the cloud, just like we built S3 and EBS for Outposts for the same reason. >> Well, when you say over time, you're, you believe that all workloads will be on the cloud, but the cloud is, it's like the universe. I mean, it's expanding. So what's not cloud in the future? When you say on the cloud, you mean wherever you meet customers with that cloud, that includes Outposts, just the programming, it's the programmability of that model, is that correct? That's it, >> That's right. that's what you're talking about? >> In fact, our S3 and EBS Outposts customers, the way that they look at how they use Outposts, it's either as part of developing applications where they'll eventually go the cloud or taking applications that are in the cloud today in AWS regions and running them locally. And so, as you say, this definition of the cloud, you know, it, it's going to evolve over time. But the one thing that we know for sure, is that AWS storage and AWS in general is going to be there one or two steps ahead of where customers are, and deliver on what they need. >> I want to talk about block storage for a moment, if I can, you know, you guys are making some moves in that space. We heard some announcements earlier today. Some of the hardest stuff to move, whether it's cultural or maybe it's just hardened tops, maybe it's, you know, governance edicts, or those really hardcore mission critical apps and workloads, whether it's SAP stuff, Oracle, Microsoft, et cetera. You're clearly seeing that as an opportunity for your customers and in storage in some respects was a blocker previously because of whatever, latency, et cetera, then there's still some, some considerations there. How do you see those workloads eventually moving to the cloud? >> Well, they can move now. With io2 Block Express, we have the performance that those high-end applications need and it's available today. We have customers using them and they're very excited about that technology. And, you know, again, it goes back to what I just said, Dave, we had customers saying, I would like to move my highest performing applications to the cloud and this is what I need from the, from the, the storage underneath them. And that's why we built io2 Block Express and that's how we'll continue to evolve io2 Block Express. It is the first SAN technology in the cloud, but it's built on those core principles that we talked about a few minutes ago, which is dynamically evolving and capabilities that we can add on the fly and customers just get the benefit of it without the cost of migration. >> I want to ask you about, about just the storage, how you think about storage in general, because typically it's been a bucket, you know, it's a container, but it seems, I always say the next 10 years aren't going to be like the last, it seems like, you're really in the data business and you're bringing in machine intelligence, you're bringing in other database technology, this rich set of other services to apply to the data. That's now, there's a lot of data in the cloud and so we can now, whether it's build data products, build data services. So how do you think about the business in that sense? It's no longer just a place to store stuff. It's actually a place to accelerate innovation and build and monetize for your customers. How do you think about that? >> Our customers use the word foundational. Every time they talk about storage, they say for us, it's foundational, and Dave, that's because every business is a data business. Every business is making decisions now on this changing landscape in a world where the new normal means you cannot predict what's going to happen in six months, in a year. And the way that they're making those smart decisions is through data. And so they're taking the data that they have in our storage services and they're using SageMaker to build models. They're, they're using all kinds of different applications like Lake Formation and Glue to build some of the services that you're talking about around authorization and data discovery, to sit on top of the data. And they're able to leverage the data in a way that they have never been able to do before, because they have to. That's what the business world demands today, and that's what we need in the new normal. We need the flexibility and the dynamic foundational storage that we provide in AWS. >> And you think about the great data companies, those were the, you know, trillions in the market cap, their data companies, they put data at their core, but that doesn't mean they shove all the data into a centralized location. It means they have the identity access capabilities, the governance capabilities to, to enable data to be used wherever it needs to be used and, and build that future. That, exciting times we're entering here, Mai-Lan. >> We're just set the start, Dave, we're just at the start. >> Really, what ending do you think we have? So, how do you think about Amazon? It was, it's not a baby anymore. It's not even an adolescent, right? You guys are obviously major player, early adulthood, day one, day zero? (chuckles) >> Dave, we don't age ourself. I think if I look at where we're going for AWS, we are just at the start. So many companies are moving to the cloud, but we're really just at the start. And what's really exciting for us who work on AWS storage, is that when we build these storage services and these data services, we are seeing customers do things that they never thought they could do before. And it's just the beginning. >> I think the potential is unlimited. You mentioned Dish before, I mean, I see what they're doing in the cloud for Telco. I mean, Telco Transformation, that's an industry, every industry, there's a transformation scenario, a disruption scenario. Healthcare has been so reluctant for years and that's happening so quickly, I mean, COVID's certainly accelerating that. Obviously financial services have been super tech savvy, but they're looking at the Fintech saying, okay, how do we play? I mean, there isn't manufacturing with EV. >> Mai-Lan: Government. >> Government, totally. >> It's everywhere, oil and gas. >> There isn't a single industry that's not a digital industry. >> That's right. >> And there's implications for everyone. And it's not just bits and atoms anymore, the old Negroponte, although Nicholas, I think was prescient because he's, he saw this coming, it really is fundamental. Data is fundamental to every business. >> And I think you want, for all of those in different industries, you want to pick the provider where innovation and invention is in our DNA. And that is true, not just for storage, but AWS, and that is driving a lot of the changes you have today, but really what's coming in the future. >> You're right. It's the common editorial factors. It's not just the, the storage of the data. It's the ability to apply other technologies that map into your business process, that map into your organizational skill sets that drive innovation in whatever industry you're in. It's great Mai-Lan, awesome to see you. Thanks so much for coming on theCUBE. >> Great seeing you Dave, take care. >> All right, you too. And keep it right there for more action. We're going to now toss it back to Jenna, Canal and Darko in the studio. Guys, over to you. (pensive music)

>>from around the globe. >>It's the cube with coverage of Kublai khan and cloud Native >>Con, Europe 2021 Virtual >>brought to you by >>red hat, cloud >>Native Computing foundation >>and ecosystem partners. >>Welcome back to the cubes coverage of coupon 21 cloud native con 21 part of the C N C s annual event this year. It's Virtual. Again, I'm john Kerry host of the cube and we have two great guests from the C N C. F. Cheryl Hung VP of ecosystems and Katie Manji who's the ecosystem advocate for C N C F. Thanks for coming on. Great to see you. I wish we were in person soon, maybe in the fall. Cheryl Katie, thanks for coming on. >>Um, definitely hoping to be back in person again soon, but john great to see you and great to be back on the >>cube. You know, I have to say one of the things that really surprised me is the resilience of the community around what's been happening with the virtual in the covid. Actually, a lot of people have been, um, you know, disrupted by this, but you know, the consensus is that developers have used to been working remotely and virtually in a home and so not too much disruption, but a hell of a lot of productivity. You're seeing a lot more cloud native, um, projects, you're seeing a lot more mainstreaming and the enterprise, you're starting to see cloud growth, just a really kind of nice growth. And we've been saying for years, rising tide floats, all boats, Cheryl, but this year you're starting to see real mainstream adoption with cloud native and this has really been part of the work of the community you guys have done. So what's your take on this? Because we're going to be coming out of this Covid pretty soon. There's a post covid light at the end of the tunnel. What's your view? >>Yeah, definitely, fingers crossed on that. I mean, I would love Katie to give her view on this. In fact, because she came from Conde Nast and American Express, both huge companies that were adopting have adopted cloud Native successfully. And then in the middle of the pandemic, in the middle of Covid, she joined CN CF. So Katie really has a view from the trenches and Katie would love to hear your thoughts. >>Yeah, absolutely. Uh, definitely cloud native adoption when it comes to the tooling has been more permanent in the enterprises. And that has been confirmed of my role at American Express. That is the role I moved from towards C N C F. But the more surprising thing is that we see big companies, we see banks and financial organization that are looking to adopt open source. But more importantly, they're looking for ways to either contribute or actually to direct it more into these areas. So from that perspective, I've been pretty much at the nucleus of enterprise of the adoption of cloud Native is definitely moving, it's slow paced, but it's definitely forward moving as well. Um and now I think while I'm in the role with C N C F as an ecosystem advocate and leading the end user community, there has been definitely uh the community is growing um always intrigued to find out more about the cloud Native usage is one of the things that I find quite intriguing is the fact that not one cloud native usage, like usage of covering just one platform, which is going to be called, the face is going to be the same. So it's always intriguing to find new use cases, find those extremist cases as well, that it really pushes the community forward. >>I want to do is unpack. The end user aspect of this has been a hallmark of the CNC F for years, always been a staple of the organization. But this year, more than ever it's been, seems to be prominent as people are integrating in what about the growth? I mean from last year this year and the use and user ecosystem, how have you guys seen the growth? Is there any highlights because have any stats and or observations around how the ecosystem is growing around the end user piece? >>Sure, absolutely. I mean, I can talk directly about C N C F and the C N C F. End user community, much like everything else, you know, covid kind of slowed things down, so we're kind of not entirely surprised by that, But we're still going over 2020 and in fact just in the last few months have brought in some really, really big names like Peloton, Airbnb, Citibank, um, just some incredible organizations who are, who have really adopted card native, who have seen the success and the benefits of it. And now we're looking to give back to the community, as Katie said, get involved with open source and be more than just a passive consumer of the technologies, but actually become leaders in their own right, >>Katie talk about the dynamic of developers that end user organizations. I mean, you have been there, you're now you've been on both sides of the table if you will not to the sides of the table, it's more like a round table if you will, but community driven. But traditional, uh, end user organizations, not the early adopters, not the hyper scale is, but the ones now are really embedding hybrid, um, are changing how I t to how modern applications being built. That's a big theme in these mainstream organizations. What's the dynamic going on? What's your view? >>I think for any organization, the kind of the core, what moves the organization towards cloud Native is um pretty much being ahead of your competitors. And now we have this mass of different organization of the cloud native and that's why we see more kind of ice towards this area. So um definitely in this perspective when it comes to the technology aspect, companies are looking to deploy complex application in an easier manner, especially when it comes to pushing them to production system securely faster. Um and continuously as well. They're looking to have this competitive edge when it comes to how can they quickly respond to customer feedback? And as well they're looking for this um hybrid element that has been, has been talked about. Again, we're talking about enterprise is not just about public cloud, it's about how can we run the application security and getting both an element of data centers or private cloud as well. And now we see a lot of projects which are balancing around that age but more importantly there is adoption and where there's adoption, there is a feedback loop and that's how which represents the organic growth. >>That's awesome. Cheryl like you to define what you mean when you say end user driven open source, what does that mean? >>Mm This is a really interesting dynamic that I've seen over the last couple of years. So what we see is that more and more of the open source project, our end users who who are solving their own problems and creating their own projects and donating these back to the community. An early example of this was Envoy and lift and Yeager from Uber but Spotify also recently donated backstage, which is a developer portal which has really taken off. We've also got examples from Intuit Donating Argo. Um I'm sure there are some others that I've just forgotten. But the really interesting thing I see about this is that class classically right. Maybe a few years ago, if you were an end user organization, you get involved through a vendor, you'd go to a red hat or something and say, hey, you fix this on my behalf because you know that's what I'm paying you to do. Whereas what I see now is and user saying we want to keep this expertise in house and we want to be owners of our own kind of direction and our own fate when it comes to these open source projects. And that's been a big driver for this trend of open source and user driven, open source. >>It's really the open model is just such a great thing. And I think one of the interesting thing is that fits in with a lot of people who want to work from mission driven companies, but here there's actually a business benefit as you pointed out as in terms of the dynamic of bringing stuff to the community. This is interesting. I'm sure that the ability to do more collaboration, um, either hiring or contributing kind of increases when you have this end user dynamic because that's a pretty big decision to donate and bring something into the open source. What's the playbook though? If I'm sitting in an end user organization like american express Katie or a big company, say, hey, you know, we really developed this really killer use cases niche to us, but we want to bring it to the community. What do they do? Is there like a, like a manager? Do they knock on someone's door? Zara repo is, I mean, how does someone, I mean, how does an end user get this done? >>Mm. Um, I think one of the best resources out there is called the to do group, which is a organization underneath the Linux foundation. So it's kind of a sister group to C N C F, which is about open source program offices. And how do you formalize such an open source program? Because it's pretty easy to say, oh well just put something on get hub. But that's not the end of the story, right? Um, if you want to actually build a community, if you want other people to contribute, then you do actually have to do more than just drop it and get up and walk away. So I would say that if you are an end user company and you have created something which scratches your own itch and you think other people could benefit from it then definitely come. And like you could email me, you could email Chris and chick who is the ceo of C N C F and just get in touch and sort of ask around about what are the things that you could do in terms of what you have to think about the licensing, How do you develop a community governance program, um, trademark issues, all of these things. >>It's interesting how open source is growing so much now, chris has got so much action going on. New verticals are opening up, you know, so, so much action Cheryl you had posted on the internet predictions for cloud native, which I found interesting because there's so much action going on, you have to break things out into pillars, tech devops and ecosystem, each one kind of with a slew event of key trends. So take us through the mindset, why break it out like that? You got tech devops and ecosystem tradition that was all kind of bundled in one. Why? Why the pillars? And is it because there's so much action, what's, what's the basis behind the prediction? >>Um so originally this was just a giant list of things I had seen from talking to people and reading around and seeing what people are talking about on social media. Um And when, once I invested at these 10, I thought about what, what does this actually mean for the people who are going to look at this list and what should they care about? So I see tech trends as things related to tools, frameworks. Um, perhaps architects I see develops as people who are more as a combination of process, things that a combination of process and people and culture best practices and then ecosystem was kind of anything else broader than that. Things that happened across organizations. So you can definitely go to my twitter, you can go to at boy Chevelle, O I C H E R Y L and take a look at this and This is my list of 10. I would love to hear from you whether you agree with it, whether you think there are other things that I've missed or what would your >>table. I love. I love the top. Well, first of all I think this is very relevant. The one that I would ask you on is more rust and cloud native. That's the number one item. Um, I think cross cloud is definitely totally happening, I think people are really starting to think about that and so I'd love to get your comments on that. But I think the thing that jumped out at me was the devops piece because this is a trend that I've been seeing a lot more certainly even in academic institutions, for folks in school, right? Um going to college for computer science and engineering. This idea of, sorry, large scale, cloud is not so much an IT practice, it's much more of a cloud native mindset. So I think this idea of of ops so much more about scale. I use SRE only because I can't think of a better word around it and certainly the edge pieces with kubernetes, I think this is the, I think the biggest story to me that's where all the action seems to be when I talk to people around what they're working on in terms of training new people on boarding and what not Katie, you're shaking your head, you're like Yeah, what's your thoughts? Yeah, >>I have definitely been uh through all of these stages from having a team where the develops, I think it's more of a culture of like a pattern to adopt within an organization more than anything. So I've been pre develops within develops and actually during the evolution of it where we actually added an s every team as well. Um I think having these cultural changes with an organization, they are necessary, especially they want to iterate iterate quicker and actually deliver value to the customers with minimal agency because what it actually does there is the collaboration between teams which were initially segregated. And that's why I think there is a paradigm nowadays which is called deficit ops, which actually moves security more to its left. This has been very popular, especially in the, in the latest a couple of months. Lots of talks around it and even there is like a security co located event of Yukon just going to focus on that mainly. Um, but as well within the Devil's area, um, one of the models that has been quite permanent has been get ups as well, which pretty much uses the power of gIT repositories to describe the state of the applications, how it actually should be within the production system and within the cloud native ecosystem. There are two main tools that pretty much leave this area and there's going to be Argo City which has been donated by, into it, which is our end user And we have flux as well, which has been donated by we've works and both of these projects currently are within the incubation stage, which pretty much by default um showcases there is a lot of adoption from the organizations um more than 100 of for for some of them. So there is a wider adoption um, and everything I would like to mention is the get ups working group which has emerged I think between que con europe and north America last year and that again is more to define a manifest of how exactly get expert and should be adopted within organizations. So there is a lot of, I would say initiatives and this is further out they confirmed with the tooling that we have within the ecosystem. >>That's really awesome insight. I want to just, if you don't mind follow up on that, why is getups so important right now, Is it because the emphasis of security is that the emphasis of more scale, Is it just because it's pretty much kid was okay just because storing it over there, Is it because there's so much more inspections are going on around it? I mean code reviews have been going on for a long time. What's what's the big deal? Why is it so hot right now? In your opinion? >>I think there is definitely a couple of aspects that are quite important. You mentioned security, that's definitely one of them with the get ups battery. And there is a pool model rather than a push model. So you have the actual tool, for example, our great city of flux watching for repository and if any changes are identified is going to pull those changes automatically. So the first thing that we actually can see from this model is that we always will have a delta between what's within our depositors and the production system. Usually if you have a pool model, you can pull it uh can push the changes towards death staging environment but not always the production because you have the change window sometimes with the get ups model, you'll always be aware of what's the Dell. Can you have quite a nice way to visualize that especially for your city, which has the UI as well as well with the get ups pattern, there is less necessity to share the credentials with the actual pipeline tool. All of because Argo flux there are natively build around communities, all the secrets are going to be residing within the cluster. There is no need to share any extra credentials or an extra permissions with external tools as well. There are scale, there is again with kids who have historical data points which allows us to easily revert um to stable points of the applications in the past. So multiple, multiple benefits I would say, but definitely secured. I think it's one of the main one and it has been talked about quite a lot as well. >>A lot of these end user stories revolve around these dynamics and the ones you guys are promoting and from your members as well as in the community at large is I hate to use the word day two operations, but that really is the issue like okay, we're up and running. I want more automation. This is again tops kind of vibe here where it's like okay we gotta go troubleshoot all this, but it should be working as more stuff comes in. This becomes more and more the dynamic is that is that because of just more edges, more things, more devices, what's what's the what's the push behind all these stories around this automation and day to operation things? What do you guys think? >>I think, I think the expectations are getting higher and higher to be honest, a few years ago it was enough to use containers and start using the barest minimum, you know, to orchestrate those containers. But now what we see is that, you know, it's easy to choose the technology, it's easy to install it and even configure it. But as you said, john those data operations are really, really hard. For example, one of the ones that we've seen up and coming and we care about from CNCF is kubernetes on the edge. And we see this as enabling telco use cases and 5G and IOT and really, really broad, difficult use cases that just a few years ago would have been nice on impossible, Katie, your zone, Katie Katie, you also talk about edge. Right? >>Absolutely. I think I I really like to watch some of the talks that keep going, especially given by the big organizations that have to manage thousands or tens of thousands, hundreds of thousands of customers. And they have to deliver a cluster to these to these teams. Now, from their point of view, they pretty much have to manage clusters at scale. There is definitely the edge out there and they really kind of pushing the technology towards how can we get closer to the physical devices within the customers? Kind of uh, let's say bubble or area in surface. So age has been definitely something which has been moving a lot when it comes to the cloud native ecosystem. We've had a lot of projects moving to towards the incubation stage, carefree as has been there, um, for for a while and again, has a lot of adoption is known for its stability. But another thing that I would like to mention is that now currently we have a lot of projects that are age focus but within some box, so there is again, a lot of potential if there's gonna be a higher demand for this, I would expect this tools move from sandbox to incubation and even graduation. So that's definitely something which, uh, it's moving and there is dynamism around it. >>Well, Cheryl kid, you guys are awesome, love the work you're doing. I gotta ask the final question since you brought it up about the expectations. Cheryl, if you guys could both end the segment with the comment around expectations as the industry and companies and developers and participants continue to grow. What, what's changed with C N C F koo Kahne cloud, native khan as the expectation has been growing and the stakes are higher too, frankly, I mean you've got security, you mentioned these things edge get up, so you start to see the maturation of this ecosystem, what's new and what's expected of you guys, What do you see and how are you guys organizing? >>I think we can definitely say the ecosystem has matured a lot compared to a few years ago. Same with CNTF, same with Cuba con, I think the very first cubic on I went to was Berlin, which was about 1800 people. Um, the kind of mind boggling to see how much, how much it's grown since then. I mean one of the things that we try and do is to expand the number of people who can reach the community. So for example, we launched kubernetes community days and we launched, that means community organized events in africa, for example, for people who couldn't come to large events in north America or europe, um we also launching things to help students. I actually love talking to students because quite often now you talk to them and they say, oh, I've never run software in anything other than a container. You're like, yeah, well this was a new thing, this is brand new a few years ago and now you can be 18 and have never tried anything else. So it's pretty amazing. But yeah, there's definitely, there's always space to go to the community. >>Yeah, once you go cloud native, it's like, you know, like you've never load Lennox on them server before. I mean, what, what's going on? Get your thoughts as expectations go higher And certainly there's more in migration, not only for young folks because they're jumping into this was that engineering meets computer science is now cross discipline. You're seeing scale, you mentioned scaling up those are huge factors, you've got younger, you got cross training, you got cybersecurity and you've got Fin tech ops that's chris is working on so much is happening. What, what, what you guys keep up with your, how you gonna raise the ball? >>Absolutely. I think there's definitely technology moving forward, but I think nowadays there is a more need for actual end user stories while at the beginning of cube cons there is a lot of focus on the technical aspects. How can you fix this particular problem of deploying between two clusters are deploying at scale. There is like a lot of technical aspects nowadays they're looking for the stories because as I mentioned before, not one platform is gonna be the same when it comes to cloud native and I think there's still, the community is still trying to look for some patterns or some standards and we actually can see like especially when it comes to the open standards, we can see this moving within um the observe abilities like that application delivery will have for example cross plane and Que Bella we have open metrics and open tracing as well, which focuses on observe ability and all of the interfaces that we had around um, Cuban directory service men and so forth. All of these pretty much try to bring a benchmark, making it easier to integrate these special use cases um when it comes to actual extreme technology kind of solutions that you need to provide and um, I was mentioning the end user stories that are there more in demand nowadays mainly because these are very, very necessary from the community like for example the six or the project maintainers, they require feedback to actually move forward. And as part of that, I would like to mention that we've recently soft launched the injuries lounge, which really focuses on this particular aspect of end user stories. We try to pretty much question our end users and really understand what really moved them to adopt, coordinative, what keeps them on this path and what like future challenges they would like to um to tackle or are they facing the moment I would like to solve in the future. So we're trying to create the speed back home between the inducers and the projects out there. So I think this is something which needs to be a bit more closely together these two spheres, which currently are segregated, but we're trying to just solve that. >>Also you guys do great work, great job. Cheryl wrap us up real, take a minute to put a plug in for the C. N. C. F. In the ecosystem. What's the fashion this year? What's hot? What's the trend? What are you guys doing? Share some quick update on what's going on the ecosystem from your perspective? >>Yeah, I mean the ecosystem, even though I just said that we're maturing, you know, the growth has not stopped now, what we're seeing is these as Casey was saying, you know, more specific use cases, even bigger, even more demanding environments, even more kind of crazy use cases. I mean I love the story from the U. S. Department of Defense about putting kubernetes on their fighter jets and putting ston fighter jets, you know, it's just absurd to think about it, but I would say definitely come and be part of the community, share your stories, share what you know, help other people um if you are end user of these technologies then go to see NCF dot io slash and user and just come and be part of our community, you know, meet your peers and hear what everybody else is doing >>well. Having kubernetes and stu on jets, that's the Air Force, I would call that technical edge Katie to you know, bring, bring back the edge carol kitty, thank you so much for sharing the inside ecosystem is robust. Rising tide is floating all the boats as we always say here in the cube, it's been great to watch and continue to watch the rise. I think it's just the beginning, we're starting to see post pandemic visibility cloud native, more standards, more visibility into the economics and value and great to see the ecosystem rising up with the end users as well. So congratulations and thanks for coming up. >>Thank you so much, john it's a pleasure, appreciate >>it. Thank you for having us, john >>Great to have you on. I'm john for with the cube here for Coop Con Cloud, Native Con 21 virtual soon we'll be back in real life. Thanks for watching. Mhm.

(upbeat music) >> Everybody, welcome to this special digital presentation where we're tracking the rebirth of Oracle Consulting. And my name is Dave Vellante, and we're here with Aaron Millstone who's the senior vice president of Oracle Consulting. Aaron, thanks for coming on, good to talk to you. >> Dave, appreciate you having me and I like the introduction of a rebirth of Oracle Consulting. >> Well, it really is I mean, you know, you guys have gone from staff augmentation to being much more of a strategic partner and we're going to talk about that. But I want to start with this theme that you have about empowering the autonomous enterprise. Sounds good, you know, nice little marketing tagline. But give us what's behind that, put some meat on the bone? >> Sure, so you know, what we define as autonomous enterprise is really using artificial intelligence, using machine learning and using it to cognitively understand your actual data and processes you're using for your enterprise. And then really embedding that into everything you're doing as a company, and using it to be both drive optimization and costs, and increasing revenue. And I know that's a lot of kind of consulting speak. So, we tend to think about what we've been talking about in terms of what we call tri-modal IT. This is probably the most exciting space that I've really thought through with my team, as we build up a new consulting business, you pull it out, but this is really about pivoting away from the systems of record and the systems of interaction, and really building up the systems of intelligence capabilities that we see all enterprises needing to invest in heavily, if they're not already investing there already. >> Well, I want to talk about a couple of things there. You know, one is that notion of lowering cost or increasing revenue and you're right people say, Oh, yeah, that's consultancy people, but a good consultant digs in and starts peeling the onion. Well, how do you actually make money? You know, where are the inefficiencies in your business? And that's really what you're talking about, and that's what every business wants to know, right? That's the end game, but the how to is really what separates the good consultants from the pack. >> Right right. And we're, you know, again, we're on this journey now, we've been, you mentioned it right. I'm two years into Oracle Consulting. Myself, I spent 23 plus years at Accenture, where I was a managing director with them and part of their North American leadership team. When I came over to Oracle consulting we did, we pivoted from what you called staff augmentation business to a basic set of offerings, which were things that you recognize right migration, services of workloads to cloud or integration or security work or even, step paths for SAS augmentation that we would do, but you know, pretty basic services. We're now pivoting again into sort of two areas infrastructure and transformation, which is really our bold costs take out play, as you just said, and sort of good consultants know how to do that. And really what that is, is we're going and looking at companies that still have traditional data centers, or maybe they've got some things on clouds, and something's still in traditional data centers. And we're coming in, and we're saying there's a business case here, that looks at your total cost of ownership. And we think we can take out between 40 and 65% of your run rate costs, and that's everything from, facilities, fire suppression systems, through to the actual compute cost, through to the labor that's required to do the physical hands on activities in the data center. So, we have that sort of capability and we're pushing customers hard in that space at the moment, and then driving that into a secondary conversation system and by the way, with all these savings, you kind of have to choices. You can pocket the savings, obviously or we would propose that you go into what we're calling the autonomous enterprise space, and really building up your artificial intelligence machine learning capability with centralized capabilities, centralized data, versus letting every line of business, every department do it on their own. >> Now, the other thing a good consultant does is they make the initiative self funding, and that's a win win you keep getting paid, the customer makes money, that's a good thing. But I like the idea, you're starting with the obvious business case of cost, and I think I heard you really attacking OPPEX, labor is obviously big component of that, but it's not just labor, and then you transition if they don't pocket the gain to a gain sharing going forward to look for new revenue. Did I get that I get that right? >> Yeah, you actually got that right. And actually, what I'll tell you too, is I think the labor piece, again, you know, I came from Accenture, Accenture is big outsourcing company, big technology consulting, big strategy consulting. You know, I went in for years and did pitches on outsourcing arrangements which were fundamentally lower cost bodies running in a more effective way. What we're finding or what I'm finding with customer conversations over the last two years at Oracle has been actually I think, data centers are not, there's nothing competitively advantageous about having a data center if you're a company, there is a lot of advantageous. There's an advantage to having cloud and what we're seeing is that companies that might have outsourced their data center are just the lowest cost provider are now considering insourcing or co-sourcing as they pivot the cloud. So the funny thing is actually labor savings is not the big driver of that 40 to 65%, that plays a role of course, that's how you get to the 65%. But even go into the 40% you can get there by insourcing your labor and bringing them in house and recognizing that the speed at which you can operate on your cloud gives you a competitive advantage. >> So this requires a whole new skill set for Oracle, you mentioned, you came in from Accenture where I talked to another number of other folks in Oracle's North America Consulting Operation that came from, brand name firms, we're going to be talking to Deloitte we have and will continue. So there I know, a big part of you talk about the skills transformation that you've affected inside of Oracle Consulting. >> Sure, yeah I mean, it started when I showed up. It was primarily a staff augmentation business in our commercial space in particular, you know, if you need a DBA, here's a DBA. If you need a SAS admin, here's a SAS admin. Here's the hourly rates and quite frankly, very, very talented group of people, very talented, but focused on doing, you know, sort of nuts and bolts level work, very deep work on the Oracle technology stack, but also weren't particularly cloud certified. So we started by focusing on getting the team certified in our cloud products, invested a ton of hours, thousands and thousands of hours in training. It takes you know, we're doing something like six months investment initially to get people up and certified on multiple cloud products that Oracle is selling. And then right from there, we started putting together our basic offerings, again moved from staff augmentation to saying, look, would you like to move a workload. To move a workload is going to cost a fixed price, whatever that is 100, $200,000 move away from rate card conversations with augmentation. And we shifted the commercial contracts that had payments based on outcomes so they don't move successfully, there's no payment. And so you know that was really the focus. >> I'm going to come back to this notion of gain sharing and particularly focus on the revenue side for a moment. You mentioned a what I'll call a buzzword tri-modal IT and a buzzword because Gartner kind of with bimodal IT popularized that concept. And I think part of the problem that people had with bimodal IT was kind of had the legacy systems of record and then you had all the new cool stuff, the big data and you know now AI and systems of engagement and so forth. And everybody wanted to go to the ladder and run away from the former. But now, if I understand tri-model IT, you're talking about bringing machine intelligence to both of those spheres such that people can stay current, stay relevant and add new value to their organization. >> Yeah, that's exactly it. And we're trying to bring it to both but we're trying to make it its own sphere, independent of the other two. So, again, as we looked at this consulting evolution, I didn't come over to Oracle and Oracle is not interested in us, creating a consulting business, that's a me too consulting business that kind of looks like whatever everyone else is doing. So the goal really was okay. So if we started with sort of staff augmentation, and you know, really Oracle's legacy, a system of record stuff, we sell big back office systems, we have mission critical databases. Like it's the clunky stuff that has to work, but really at the end of the day, that's our heritage, going over to the systems of interaction which is, where the bimodal IT really came in from Gartner. That's a pretty saturated place, so again, coming from the background, I had a consulting, I looked at all the eight design agencies that were out there that were all selling digital, and we looked at the digital sales tactics going on, we're like, well, that's pretty saturated, it's not really a smart place for us to go make a lot of headway into. And so we looked and said, well really, the next layer, the next evolution of IT is this third sphere systems of intelligence. And really, since Oracle is, our heritage is mission critical and data, fundamentally, the logical step for us was to go okay, systems intelligence are powered by data, and they serve artificial intelligence as the primary consumer. So again, our thought process was you have a system of record which is process centric and really geared towards the CFO or a head of HR, you have systems of interaction, which is really geared towards the users, it's trying to make business frictionless. Those users can be consumers, they can be employees, whomever. And then systems intelligence is around artificial intelligence is the primary consumer of it. I mean really pivoting to that, and then making that something that is pervasive and structurally place across both those other two spheres, really felt like where we should be differentiating. When I brought in the talent rate that we looked to bring in, we were getting kind of affirmation that, yeah, the best talent in the market was starting to see this trend and so we kind of knew we were onto something there. >> Yeah, I mean, that makes a lot of sense, because as you as you point out, some of those new workloads, many of them are very consumer oriented, that's kind of you know, not your wheelhouse. I mean, that's your customers are, selling to consumers, but Oracle's B2B, hardcore data mission critical. But let me ask you, to that make sets, but by your cloud, you were sort of a later entrant into cloud. So where does cloud fit into this? How do you respond to when customers say, yeah, but you know, you guys were late on the cloud. >> Yeah, we are definitely late coming to cloud, like there's no two ways about it. I mean, what we've got is we have what we call a Generation 2 Cloud. And I jokingly tell customers that we have a late mover advantage. And that late mover advantage basically means that we've looked at what the first generation clouds have done. And quite frankly, they're great at what they do, they're fierce competitors, they're tough to compete with, they've got a lot of mindshare, but they fundamentally were about targeting consumers, or targeting enterprise collaboration tools, so if you want cat videos, if you want to watch humorous videos that people filmed and posted on social media, those are great clouds for that stuff. But if you want really mission critical enterprise cloud workloads, that's where we come into play. And so when you start to look at really the key differentiators in our cloud and through out, at least this is how I describe it to customers. So, we look at sort of three layers, we have an autonomous capability both on our operating system and our database. What that basically means is that we have machine learning and artificial intelligence that's driving the key, administrative activities in our cloud, we then have our Exadata platform. So Exadata for us is a secret weapon, we think that it is a differentiator in our products. And so, Exadata for those watching that doesn't know what it is, so Exadata emerged out of the Sun acquisition that Oracle did. It is purpose built hardware that is engineered for our software products, specifically our databases. And now we've taken that concept and moved it into our cloud and so customers can come in and take very intensive enterprise, mission critical workloads, run them straight in our cloud. And then, when we look at the last point, it's probably security where, again, we have total segmentation of our security layers from the customer workloads. So again, we've taken the concepts that first generation cloud providers have implemented, and they've scaled it globally. So it's really tough for them to walk back on it, it's a huge investment and we're now gone into a Generation 2 Cloud and quite frankly, I think that's what this is the frontier that everyone's racing to kind of grab. >> You know, we actually in our community, talk to a lot of Exadata customers and they get very intense, they do some really hardcore things with with Exadata. To me, the key to your cloud strategy, and specifically Exadata is you've got the same exact infrastructure, control plane, data plane, software, either on prem or in the cloud. So that's your same same narrative. But the real key, new key anyway is what autonomous, tell me if you agree with this. What autonomous gives you a scale, because as you say, you're related to cloud, you're not a hyper scalar in that sense, you're not selling just, race to the bottom infrastructure as a service. You're bringing applications and mission critical applications, so eponymous gives you the ability to scale and compete more effectively with some of those other, earlier movers. You buy that? >> Yeah, absolutely. So scaling and scaling in terms of, what has been historically human activities, when I say human activities, we're not replacing the humans, we're making some of the human activities that were highly repetitive way more efficient. So easy example I can give you is patching. Like security(mumbles) bases are very time consuming, I've talked to customers as recently as a couple weeks ago, that are three years behind on their patching. And when I look at that, it's you're like, why wouldn't you consider autonomous, they have their board of directors and their auditors are actually now demanding that they do something different about their patching problems. And they're talking about, man months, people months of trying to roll out this patching, and they're worried about breaking stuff, and they're worried about human error. Like when you look at something like autonomous, that patching would take place, pretty much instantaneous with no downtime. And we've seen it in our own cloud and our own services internally and we're able to patch, thousands and thousands of cores very, very quickly. >> So we got to wrap but I wanted to close on sort of the, I mean, again, we talked about good consultants and good consultants have continuous improvement mindset. They got a North star that they really never get through and that keeps moving because you got to keep innovating, you got to keep disrupting yourself, so maybe you could end by sort of talking about some of the things you're watching, some of the milestones you want to hit and some of that transformation that you want to keep going. How are you going to achieve that? >> Yeah, and it will skip some of it, when we hit the Deloitte segment too, but like we're definitely we've moved from, we've definitely move from the staff augmentation to basic offerings. We're now beyond that we're starting to sell the infrastructure lead transformation plays. What's exciting to me about that with our customers is, you know, Oracle's a big complex enterprise, as you'd expect with a company that has a tremendous amount of technology. We're now bringing holistic approaches to our customer say, let us help you optimize everything end to end, let's look at your data center, let's not look at a narrow slice, let's not look at just SAS admins and DBAs, we're looking at things comprehensively. So moving there has been a pretty big milestone for us to hit, we've started to get some good momentum with our customers. Our next milestone is really going to be taking that autonomous enterprise and blowing it out. We're in use case and incubation period right now with that, but again we've got some, I would argue we have the best talent in the world right now that thinks about this stuff and not just thinks about it from a pure technology standpoint, but thinks about how to actually make it effective for the business. And so once we get some of those motions going, like the use case for the autonomous enterprise that's artificial intelligence driven, it should have a continuous pace of change, and it's going to start to evolve in areas that you know, quite frankly, we can't even predict yet. But we're excited to see where it leads. >> Alright, thanks for spending some time with us. I am very excited to talk about that sort of collision course between your deep tech capabilities as Oracle as a product company and this, the Global SI, Deloitte, we're going to bring in those guys in a moment. So thanks very much for taking us through the transformation and great job, good luck. >> Thank you, appreciate it. >> All right, and thank you, everybody for watching. Keep right there, we'll be back with more coverage of Oracle's transformation. Right after the short break, you're watching the CUBE. (upbeat music)

[Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Applause] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Applause] [Music] [Music] [Music] [Music] [Applause] [Music] [Music] [Music] [Music] [Music] [Applause] [Music] [Music] [Music] [Music] you [Music] [Applause] [Music] live from Barcelona Spain it's the cube covering Cisco live 2020 rot to you by Cisco and its ecosystem partners come back this is the cubes coverage of Cisco live 2020 here in Barcelona doing about three and a half days of wall-to-wall coverage here I'm Stu minim and my co-host for this segment is Dave Volante John furs also here scouring the floor and really happy to welcome to the program to first-time guests I believe so Ron Daris is the product manager of product marketing for cloud computing with Cisco and sitting to his left is Matt Ferguson who's director of product development also with the Cisco cloud group Dave and I are from Boston Matt is also from the Boston area yes and Costas is coming over from London so thanks so much for joining us thanks IBPS all right so obviously cloud computing something we've been talking about many years we've really found fascinating the relationship Cisco's had with its customers as well as through the partner ecosystem had many good discussions about some of the announcements this week maybe start a little bit you know Cisco's software journey and you know positioning in this cloud space right now yes oh so it's a it's a really interesting dynamic when we start transitioning to multi cloud and we actually deal with cloud and compute coming together and we've had whether you're looking at the infrastructure ops organization or whether you're looking at the apps operations or whether you're looking at you know your dev environment your security operations each organization has to deal with their angle at which they view you know multi cloud or they view how they actually operate within those the cloud computing context and so whether you're on the infrastructure side you're looking at compute you're looking at storage you're looking at resources if you're an app operator you're looking at performance you're looking at visibility assurance if you are in the security operations you're looking at maybe governance you're looking at policy and then when you're a developer you really sort of thinking about CI CD you're talking about agility and there's very few organizations like Cisco that actually is looking at from a product perspective all those various angles of multi-cloud yeah definitely a lot of piece of cost us maybe up level it for us a little bit there's there's so many pieces you know we talked for so long you know you don't talk to any company that doesn't have a cloud strategy doesn't mean that it's not going to change over time and it means every company's got at home positioning but talk about the relationship cisco has with its customer and really the advisory position that you want to have with them it's actually a very relevant question to what to what Matt is talking about because we talk a lot about multi cloud as a trend and hybrid clouds and this kind of relationship between the traditional view of looking at computing data centers and then expanding to different clouds you know public cloud providers have now amazing platform capabilities and if you think about it the the it goes back to what Matt said about IT ops and the development kind of efforts why is this happening really you know there's there's the study that we did with with an analyst and there was an amazing a shocking stat around how within the next three years organizations will have to support 50% more applications than they do now and we have been trying to test this stat our events that made customer meetings etc that is a lot of a lot of change for organizations so if you think about why are they use why do they need to basically what go and expand to those clouds is because they want to service IT Ops teams want ER servers with capabilities their developers faster right and this is where you have within the IT ops kind of theme organization you have the security kind of frame the compute frame the networking where you know Cisco has a traditional footprint how do you blend all this how do you bring all this together in a linear way to support individual unique application modernization efforts I think that's what are we hearing from customers in terms of the feedback and this is what influences our strategy to converts the different business units and engineering engineering efforts right couple years ago I have to admit I was kind of a multi cloud skeptic I always said I thought it was more of a symptom than actually a strategy a symptom of you know shadow IT and different workloads and so forth but now I'm kind of buying in because I think IT in particular has been brought in to clean up the crime scene I often say so I think it is becoming a strategy so if you could help us understand what you're hearing from customers in terms of their strategy toward the multi cloud and how Cisco that was mapping into that yeah so so when we talk to customers it comes back to the angle at which they're approaching the problem in like you said the shadow IT has been probably around for longer than anybody won't cares to admit because the people want to move faster organizations want to get their product out to market sooner and and so what what really is we're having conversations now about you know how do I get the visibility how do I get you know the policies and the governance so that I can actually understand either how much I'm spending in the cloud or whether I'm getting the actual performance that I'm looking for that I need the connectivity so I get the bandwidth and so these are the kinds of conversations that we have with customers is is is going I realize that this is going on now I actually have to now put some you know governance and controls around that is their products is their solutions is their you know they're looking to Cisco to help them through this journey because it is a journey because as much as we talk about cloud and you know companies that were born in the cloud cloud native there is a tremendous number of IT organizations that are just starting that journey that are just entering into this phase where they have to solve these problems yeah I agree and it's just starting the journey with a deliberate strategy as opposed to okay we got this this thing but if you think about the competitive landscape its kind of interesting and I want to try to understand where Cisco fits because again you you initially had companies that didn't know in a public cloud sort of pushing multi cloud and you'd say oh well okay so they have to do that but now you see anthos come out with Google you see Microsoft leaning in we think eventually AWS is going to lean in and then you say I'm kind of interested in working with someone whose cloud agnostic not trying to force now now Cisco a few years ago you didn't really think about Cisco as a player now so this goes right in the middle I have said often that Cisco's in a great position John Fourier as well to connect businesses and from a source of networking strength making a strong argument that we have the most cost-effective most secure highest performance network to connect clouds that seems to be a pretty fundamental strength of yours and does that essentially summarize your strategy and and how does that map into the actions that you're taking in terms of products and services that you're bringing to market I would say that I can I can I can take that ya know it's a chewy question for hours yeah so I I was thinking about a satellite in you mentioned this before and you're like okay that's you know the world is turning around completely because we we seem to talk about satellite e is something bad happening and now suddenly we completely forgot about it like let let free free up the developers gonna let them do whatever they want and basically that is what I think is happening out there in the market so all the solutions you mentioned in the go to market approaches and the architectures that the public cloud providers at least are offering out there certainly the big three have differences have their strengths and I think those strengths are closer to the developer environment basically you know if you're looking into something like a IML there's one provider that you go with if you're looking for a mobile development framework you're gonna go somewhere else if you're looking for a dr you're gonna go somewhere else maybe not a big cloud but your service provider that you've been dealing with all these all these times and you know that they have their accreditation that you're looking for so where does Cisco come in you know we're not a public cloud provider we offer products as a service from our data centers and our partners data centers but at the - at the way that the industry sees a cloud provider a public cloud like AWS a sure Google Oracle IBM etc we're not that we don't do that our mission is to enable organizations with software hardware products SAS products to be able to facilitate their connectivity security visibility observability and in doing business and in leveraging the best benefits from those clouds so we we kind of we kind of moved to a point where we flip around the question and the first question is who is your cloud provider what how many tell us the clouds you work with and we can give you the modular pieces you can put we can put together for you so there's so that you can make the best out of your plan it's been being able to do that across clouds we're in an environment that is consistent with policies that are consistent that represent the edicts of your organization no matter where your data lives that's sort of the the vision in the way this is translated into products into Cisco's product you naturally think about Cisco as the connectivity provider networking that's that's really sort of our you know go to in what we're also when we have a significant computing portfolio as well so connectivity is not only the connectivity of the actual wire between geographies point A to point B in the natural routing and switching world there's connectivity between applications between cute and so this week you know the announcements were significant in that space when you talk about the compute and the cloud coming together on a single platform that gives you not only the ability to look at your applications from a experience journey map so you can actually know where the problems might occur in the application domain you can actually then go that next level down into the infrastructure level and you can say okay maybe I'm running out of some sort of resource whether it's compute resource whether it's memory whether it's on your private cloud that you have enabled on Prem or whether it's in the public cloud that you have that application residing and then why candidly you have the actual hardware itself so inter-site it has an ability to control that entire stack so you can have that visibility all the way down to the hardware layer I'm glad you brought up some of the applications wonderful we can you know stay there for a moment and talk about some of the changing patterns for customers a lot of talk in the industry about cloud native often it gets conflated with you know microservices containerization and lots of the individual pieces there but you know one of our favorite things that been talked about this week is the software that really sits at the application layer and how that connects down through some of the infrastructure pieces so help us understand what you're hearing from customers and and where how you're helping them through this transition to constants as you were saying absolutely there's going to be lots of new applications more applications and they still have the the old stuff that they need to continue to manage because we know an IT nothing ever goes away that's that's definitely true I was I was thinking you know there's there's a vacuum at the moment and and there's things that Cisco is doing from from technology leadership perspective to fill that gap between the application what do you see when it comes to monitoring making sure your services are observable and how does that fit within the infrastructure stack you know everything upwards network the network layer base again that is changing dramatically some of the things that Matt touched upon with regards to you know being able to connect the the networking the security in the infrastructure the computer infrastructure that the developers basically are deploying on top so there's a lot of there's a lot of things on containerization there's a lot of in fact it's you know one part of the of the self-injure side of the stack that you mentioned and one of the big announcements you know that there's a lot of discussion in the industry around ok how does that abstract further the conversation on networking for example because that now what we're seeing is that you have huge monoliths enterprise applications that are being carved down into micro services ok they you know there's a big misunderstanding around what is cloud native is it related to containers different kind of things right but containers are naturally the infrastructure de facto currency for developers to deploy because of many many benefits but then what happens you know between the kubernetes layer which seems to be the standard and the application who's gonna be managing services talking to each other that are multiplying you know things like service mesh network service mess how is the network evolving to be able to create this immutable infrastructure for developers to deploy applications so there's so many things happening at the same time where cisco has actually a lot of taking a lot of the front seat this is where it gets really interesting you know it's sort of hard to squint through because you mentioned kubernetes is the de facto standard but it's a de-facto standard that's open everybody's playing with but historically this industry has been defined by you know a leader who comes out with a de facto standard kubernetes not a company right it's an open standard and so but there's so many other components than containers and so history would suggest that there's going to be another de facto standard or multiple standards that emerge and your point earlier is you you got to have the full stack you can't just do networking you can't just do certain few so you guys are attacking that whole pie so how do you think this thing will evolve I mean you guys are obviously intend to put out as Casta as wide a net as possible capture not only your existing install base but attractive attract others and you're going aggressively at it as are as are others how do you see it shaking out deep do you see you know four or five pockets do you see you know one leader emerging I mean customers would love all you guys to get together come up with standards that's not going to happen so we're it's jump ball right now well yeah and you think about you know to your point regarding kubernetes is not a company right it is it is a community driven I mean it was open source by a large company but it's but it's community driven now and that's the pace at which open source is sort of evolving there is so much coming at IT organizations from a new paradigm a new software something that's you know the new the shiny object that sort of everybody sort of has to jump on to and sort of say that is the way we're going to function so IT organizations have to struggle with this influx of just every coming at them and every angle and I think what's starting to happen is the management and the you know that stack who controls that or who is helping IT organizations to manage it for them so really what we're trying to say is there's elements that you have to put together that have to function and kubernetes is just one example docker the operating system that associated with it that runs all that stuff then you have the application that goes rides IDEs on top of it so now what we have to have is things like what we just announced this week HX ap the application platform for HX so you have the compute cluster but then you have the on top of that that's managed by an organization that's looking at the security that's looking at the the actual making opinions about what should go in the stock and managing that for you so you don't have to deal with that because you can just focus on the application development yeah I mean Cisco's in a strong position to do there's no question about it and to me it comes down to execution if you guys execute and deliver on the the products and services that you say you know your nouns for instance this week and previously and you continue on a roadmap you're gonna get a fair share of this marketplace I think there's no question so last topic before we let you go is love your viewpoint on customers what's separating kind of leaders from you know the followers in this space you know there's so much data out there you know I'm a big fan of the state of DevOps report yeah focus you know separate you know some but not the not here's the technology or the piece but the organizational and you know dynamics that you should do so it sounds like Matt you you like that that report also love them what are you hearing from customers how do you help guide them towards becoming leaders in the cloud space yeah the state of DevOps report was fascinating and I mean they've been doing that for what a number of years yeah exactly and really what it's sort of highlighting is two main factors that I think that are in this revolution or this this this paradigm shift or journey we're going through there's the technology side for sure and so that's getting more complex you have micro services you have application explosion you have a lot of things that are occurring just in technology that you're trying to keep up but then it's really about the human aspect that human elements the people about it and that's really I think what separates you know the the elites that are really sort of you know just charging forward in the head because they've been able to sort of break down the silos because really what you're talking about in cloud native DevOps is how you take the journey of that experience of the service from end to end from the development all the way to production and how do you actually sort of not have organizations that look at their domain their data set their operations and then have to translate that or have to sort of you know have another conversation with another organization that it doesn't look at that that has no experience of that so that is what we're talking about that end-to-end view is that in addition to all the things we've been talking about I think Security's a linchpin here now you guys are executing on security you got a big portfolio and you've seen a lot of M&A and a lot of companies now trying to get in and it's gonna be interesting to see how that plays out but that's going to be a key because organizations are going to start there from a strategy standpoint and then build out yeah absolutely if you follow the DevOps methodology its security gets baked in along the way so that you're not having to sit on after do anything Custis give you the final word I was just as follow-up with regard what what Mark was saying there's so many there's what's happening out there is this just democracy around standards which is driven by communities and we will love that in fact cisco is involved in many open-source community projects but you asked about customers and and just right before you were asking about you know who's gonna be the winner there's so many use cases there's so much depth in terms of you know what customers want to do with on top of kubernetes you know take AI ml for example something that we have we have some some offering the services around there's the customer that wants to do AML there their containers that their infrastructure will be so much different to someone else's doing something just hosting yeah and there's always gonna be a SAS provider that is niche servicing some oil and gas company you know which means that the company of that industry will go and follow that instead of just going to a public law provider that is more organized if there's a does that make sense yeah yeah this there's relationships that exist the archer is gonna get blown away that add value today and they're not gonna just throw them out so exactly right well thank you so much for helping us understand the updates where your customers are driving super exciting space look forward to keeping an eye on it thank you thank you so much all right there's still lots more coming here from Cisco live 20/20 in Barcelona people are standing watching all the developer events lots of going on the floor and we still have more so thank you for watching the cute [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] you [Music] live from Barcelona Spain it's the cube covering Cisco live 2020 rot to you by Cisco and its ecosystem partners welcome back over 17,000 in attendance here for Cisco live 2020 in Barcelona ops to Minh and my co-host is Dave Volante and to help us to dig into of course one of the most important topic of the day of course that security we're thrilled to have back a distinguished engineer Francisco one of our cube alumni TK Kia Nene TK thanks so much for joining us ideal man good good all right so TK it's 2020 it's a new decade we know the bad actors are still out there they're there the the question always is you know it used to be you know how do you keep ahead of them then I've here Dave say many times well you know it's not you know when it's it's not if it's when you know you probably already have been okay you know compromised before so it gives latest so you know what you're seeing out there what you're talking to customers about in this important space yeah it's uh it's kind of an innovation spiral you know we we innovate we make it harder for them and then they innovate they make it harder for us right and round and round we go that's been going on for for many years I think I think the most significant changes that have happened recently have to deal with not essentially their objectives but how they go about their objectives and Defenders topologies have changed greatly instead of just your standard enterprise you now have you know hybrid multi cloud and all these new technologies so while while all that innovation happens you know they get a little clever and they find weaknesses and round and round we go so we talked a lot about the sort of changing profile of the the threat actors going from hacktivists took criminals now is a huge business and nation-states even what's that profile look like today and how has that changed over the last decade or so you know that's pretty much stayed the same bad guys are bad guys at some point in time you know just how how they go about their business their techniques they're having to like I said innovate around you know we make it harder for them they you know on Monday we're safe on Tuesday we're not you know and then on Wednesday it switches again so so it talked about kind of this multi-cloud environment when we talk to customers it's like well I want the developer to be able to build their application and not really have to think too much underneath it that that has to have some unique challenges we know security we knew long ago well I just go to the cloud it doesn't mean they take care of it some things are there some things they're gonna remind you now you need to make sure you set certain things otherwise you could be there but how do we make sure that Security's baked in everywhere and is up as a practice that everybody's doing well I mean again some of the practices hold true no matter what the environment I think the big thing was cognitive is in back in the day when when you looked at an old legacy data center you were part sort of administrator in your part detective and most people don't even know what's running on there that's not true in cloud native environments some some llamó file some some declaration it's it's just exactly what productions should look like right and then the machines instantiate production so you're doing things that machine scale forces the human scale people to be explicit and and for me I mean that's that's a breath of fresh air because once you're explicit then you take the mystery out of what you're protecting how about in terms of how you detect threats right phishing for credentials has become a huge deal but not just you know kicking down the door or smashing a window using your your own credentials to get inside of your network so how is that affected the way in which you detect yeah it's it's a big deal you know a lot of a lot of great technology has a dual use and what I mean by that is network cryptology you know that that whole crypto on the network has made us safer for us to compute over insecure networks and unfortunately it works just as well for the bad guys so you know all of their malicious activity is now private to so it you know for us we just have to invent new ways of detecting direct inspection for instance I think it's a thing of the past I mean we just can't depend on it anymore we have to have tools of inference and not only that but it's it's gave rise in a lot of innovation on behavioral science and as you say you know it's it's not that the attacker is breaking into your network anymore they're logging in ok what do you do then right Alice Alice's account it's not gonna set off the triggers so you have to say you know when did Alice start to behave differently you know she's working in accounting why is she playing around with the source code repository that's that's a different thing right yes automation is such a big trend you know how do we make sure that automation doesn't leave us more vulnerable that's rarity because we need to be able automate we've gone beyond human scale for most of these configurations that's exactly right and and how do how do we I always say just with security automation in particular just because you can automate something doesn't mean you should and you really have to go back and have practices you know you could argue that that this thing is just a you know machine scale automation you could do math on a legal pad or you can use a computer to do it right what so apply that to production if you mechanized something like order entry or whatever you're you're you're automating part of your business use threat modeling you use the standard threaten modeling like you would your code the network is code now right and the storage is code and everything is code so you know just automate your testing do your threat modeling do all that stuff please do not automate for your attacker matrix is here I want to go back to the Alice problem because you're talking about before you have to use inference so Alice's is in the network and you're observing her moves every day and then okay something anomalous occurs maybe she's doing something that normally she wouldn't do so you've got to have her profile in her actions sort of observed documented stored the data has got to be there and at the same time you want to make sure it's always that balance of putting handcuffs on people you know versus allowing them to do their job and be productive at the same time as well you don't want to let the bad guys know that you know that alice is doing something that she didn't be doing is actually not Alice so all that complexity how are you dealing with it and what's the data model look like doing it machines help let's say that machines can help us you know you and I we have only so many sense organs and the cognitive brain can only store so many so much state machines really help us extend that and so you know looking at not three dimensions of change but 7000 dimensions have changed right something in the machine is going to say there's an outlier here that's interesting and you can get another machine to say that's that's interesting maybe I should focus on that and you build these analytical pipelines so that at the end of it you know they may argue with each other all the way to the end but at the end you have a very high fidelity indicator that might be at the protocol level it might be at the behavioral level it might be seven days back or thirty days back all these temporal and spatial dimensions it's really cheap to do it with a machine yeah and if we could stay on that for a second so it try to understand I know that's a high-level example but is it best practice to have the Machine take action or is it is it an augmentation and I know it depends on the use case but but how is that sort of playing out again you have to do all of this safely okay a lot of things that machines do don't return back to human scale stuff that returns back to human scale that humans understand that is as useful so for instance if machines you know find out all these types of in assertions even in medical you know right now if if you've got so much telemetry going into the medical field see the machine tells you you have three weeks to live I mean you better explain what the heck you know how you came about that assertion it's the same with security you know if I'm gonna say look we're gonna quarantine your machine or we're gonna readjust machine it's not I'm not like picking movies for you or the next song you might listen to this is high stakes and so when you do things like that your analytics needs to have what is called entailment you have to explain what it is how you got to that assertion that's become incredibly important in how we measure our effectiveness in in doing analytics that's interesting because because you're using a lot of machine intelligence to do this and in a lot of AI is blackbox you're saying you cannot endure that blackbox problem in security yeah that black boxes is is very dangerous you know I you know personally I feel that you know things that should be open sourced this type of technology it's so advanced that the developer needs to understand that the tester needs to understand that certainly the customer needs to understand it you need to publish papers and be very very transparent with this domain because if it is in fact you know black box and it's given the authority to automate something like you know shut down the power or do things like that that's when things really start to get dangerous so good TK what wondered you know give us the latest on stealthWatch there you know Cisco's positioning when it when it comes to everything we've been talking about here you know stealthWatch again is it's been in market for quite some time it's actually been in market since 2001 and when I when I look back and see how much has changed you know how we've had to keep up with the market and again it's not just the algorithms rewrite for detection it's the environments have changed right but when did when did multi-cloud happen so so operating again cusp it's not that stealthWatch wants to go their customers are going there and they want the stealthWatch function across their digital business and so you know we've had to make advancements on the changing topology we've had to make advancements because of things like dark data you know the the network's opaque now right we have to have a lot of inference so we've just you know kept up and stayed ahead of it you know we've been spending a lot of time talking to developer communities and there's a lot of open-source tooling out there that that's helping enable developers specifically in security space you were talking about open-source earlier how does what you've been doing the self watch intersect with that yeah that's always interesting too because there's been sort of a shift in let's call them the cool kids right the cool kids they want everything is code right so it's not about what's on glass or you know a single pane of glass anymore it's it's what stealth watches code right what's your router as code look at dev net right yeah yeah I mean definite is basically Cisco as code and it's beautiful because that is infrastructure as code I mean that is the future and so all the products not just stealthWatch have beautiful api's and that's that's really exciting I've been saying for a while now it's do you I think you agree is that that is a big differentiator for Cisco I think you you're one of the few if not the only large established player and the enterprise that has figured out that sort of infrastructure is code play others have tried and are sort of getting there but you know start/stop you use a term that really cool is like living off the land you know bear bear grylls like the guy who lives down so bad so and and and threat actors are doing that now they're using your own installed software and tooling to hack you and and steal from you how were you dealing with that problem yeah it's a tough one and like I said you know much respect the the adversary is talented and they're patient they're well funded okay that's that's where it starts and so you know why why bring why bring an interpreter to a host when there's already one there right why right all this complicated software distribution when I can just use yours and so that's that's where the the play the game starts and and the most advanced threats aren't leaving footprints because the footprints are already there you know they'll get on a machine and behaviorally they'll check the cache to see what's hot and what's hot in the cache means that behaviorally it's a path they can go they're not cutting a new trail most of the time right so living off the land is not only the tools that they're using the automation your automation they're using against you but it's also behavioral and so that that makes it you know it makes it harder it's it impossible no can we make it harder for them yes so yeah no I'm having fun and I've been doing this for over twenty five years every week it's something new well it's a hard problem you're attacking and you know Robert Herjavec who came on the cube sort of opened my eyes and you think about what are we securing we're securing everything I mean a critical infrastructure were essentially exerted securing the entire global economy and he said something that really struck me it's an 86 trillion dollar economy we spend point zero one four percent on securing that economy and it's nothing now of course he's an entrepreneur and he's pimping for his is his business but it's true we are barely scratching the surface of this problem yeah I'm and it's changing I mean it's changing it could it be better yes it is changing his board awareness you know twenty years ago then right me to a dinner party they you know what does your husband do I'd say you know cyber security or something they'd roll their eyes and change the subject now they asked me the same question so oh you know my computer's running really slow right these are not this is everyone I'm worried about a life hack yeah how do I protect myself or what about these coming off the bank I mean that's those guys a dinner table cover every party so now now you know I just make something up I don't do cybersecurity I just you know a tort or a jipner's you've been to this business forever I can't remember have I ever asked you the superhero question what is that your favorite superhero that's a tough one there's all the security guys I know they like it's always dreamed about saving the world [Laughter] you're my superhero man I love what you do I think you've a great asset for Cisco and Cisco's customers really thanks TK give us a final word if people want to you know find out more about about what Cisco's doing read more of what you're working on but what's some of the best resource I have to go do you know just drop by the web pages I mean everything's published out that like I said even even for the super nerdy you know we published all our our laurs security analytics papers I think we're over 50 papers published in the last 12 years TK thank you so much always a pleasure to catch alright yeah and a travels thank you so much for de Villante I'm Stu Mittleman John furrier is also in the house we will be back with lots more coverage here from Cisco live 20/20 in Barcelona thanks for watching the keys [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Applause] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Applause] [Music] live from Barcelona Spain it's the cube covering Cisco live 2020s brought to you by Cisco and its ecosystem partners hello and welcome back to the cubes live coverage it's our fourth day of four days of coverage here in Barcelona Spain for Cisco live 2020 I'm John Faria my co-host to many men to great guests here in the dev net studio where the cube is sitting all week long been packed with action mindy Whaley senior director developer experiences but dev net and partner a senior director welcome back to this cube good to see you guys glad to be here so we've had a lot of history with you guys what from day one yes watching def net from an idea of hey we should develop earthing you also have definite create yes separate more developer focused definite is Cisco's developer environment we've been here from the beginning what a progression congratulations on the success thank you thank you so much it's great to be here in Barcelona with everybody here you know learning in the workshops and we just love these times to connect with our community at Cisco live and it definitely ate what you mentioned which is coming up in March so it's right around the corner def net zone which we're in it's been really robust spins it's been the top of the show every year and it gets bigger and the sessions are packed because people are learning developers new developers as well as Cisco engineers who were certified coming in getting new skills as the modern cloud hybrid environments are new skills is a technology shift yeah exactly and what we have in the definite zone are different ways that the engineers and developers can engage with that technology shift so we have demos around IOT and security and showing how you know to prevent threats from attacking the Industrial routers and things like that we have coding workshops from you know beginning intro to Python intro to get all the way up through advanced like kubernetes topics and things like that so people can really dive in with what they're looking for and this year we're really excited because we have the new definite certifications with those exams coming out right around the corner in February so a lot of people are here saying I'm ready to skill up for those exams I'm starting to dive into this topic well Susie we was on she's the chief of deaf net among other things and she said there's gonna be a definite 500 the first 500 certifications of deaf net are gonna be kind of like the Hall of Fame or you know the inaugural or founder certifications so can you explain what this it means it's not a definite certification badge it's a series of write different sir can you deeper in then yeah just like we have our you know existing network certifications which are so respected and loved around the world people get CCIE tattoos and things just like there's an associate and professional and expert level on the networking truck there's now a definite associate a definite professional and coming soon definite expert and then there's also specialist badges which help you add specific skills like data center automation IOT WebEx so it's a whole new set of certifications that are more focused on the software so there are about 80 80 % software skills 20 percent knowledge of networking and then how you really connect up and down the stock so these are new certifications not replacing anything all the same stuff they're new they're part of the same program they have the same rigor the same kind of tests they actually have ways to enter weave with the existing networking certifications because we want people to do both skill paths right to build this new IT team of the future and so it's a completely new set of exams the exams are gonna be available to take February 24th and you can start signing up now so with the definite 500 you know that's gonna be a special recognition for the first 500 people who get dead note certifications it'll be a lifetime achievement they'll always be in the definite 500 right and I've had people coming up and telling me you know I'm signed up for the first day I'm taking my exams on the first day I'm trying to get into them you and I only always want to be on the lift so I think we might be on them and what's really great is with the certifications we've heard from people in the zone that they've been coming and taking classes and learning these skills but they didn't have a specific way to map that to their career path to get rewarded at work you know to have that sort of progression and so with the certifications they really will have that and it's also really important for our partners and par is doing a lot of work with certifications and partners yeah definitely that would love to hear a little bit we've interviewed on the cube over the years some of the definite partners from a technology standpoint of course the the channels ecosystem hugely important to Cisco's business gives the update as to you know definite partnering as well as what will these certifications mean to both the technology and go to market partners yeah the wonderful thing about this is it really demonstrates Cisco's embracement of software and making sure that we're providing that common language for software developers and networkers to bring the two together and what we've found is that our partners are at different levels of maturity along that progression of program ability and this new definite specialization which is anchored in the individuals that are now certified at that partner allow them to demonstrate from a go-to-market standpoint from a recognition standpoint that as a practice they have these skills and look at the end of the day it's all about delivering what our customers need and our customers are asking us for significant help in automation digital transformation they're trying to drive new business outcomes and this this will provide that recognition on on who to partner with in the market it's so important I remember when Cisco helped a lot of the partner ecosystem build data center practices went from the silos and now embracing you've got the hardware the software we're talking multi cloud it's the practice that is needed today going forward to help customers with where they're going it really is and and another benefit that we're finding and talking to our partners is we're packaging this up and rolling it out is not only will it help them from a recognition standpoint from a practice standpoint and from a competitive differentiation standpoint but it'll also help them attract challenge I mean it's no secret there is a talent shortage right now if you talk to any CEO that's top of mind and how these partners are able to attract these new skills and attract smart people smart people like working on smart things right and so this has really been a big traction point for them as well it's also giving ways to really specifically train for new job roles so some of the ways that you can combine the new definite certifications with the network engineering certifications we've looked at it and said you know there's there's a role of Network automation developer that's a new role everyone we ask in one of our sessions who needs that person on their team so many customers partners raise their hands like we want the network Automation developer on our team and you can combine you know your CCNP Enterprise with a definite certification and build up the skills to be that Network automation developer certainly has been great buzz I got to get your guys thoughts because certainly it's for careers and you guys are betting on the the people and the people are betting on Cisco mm-hmm yes this is what's going on submit surety of Devin it almost it's like a pinch me moment for you guys because you continue to grow I got to ask you what are some of the cool things that you're showing here as you mature you still have the start here session which is intro to Python and other things pretty elementary and then there's more advanced things what are some of the new things that's going on yeah that you could share so some of the new things we've got going on and one of my favorites is the IOT insecurity demonstration there's a an industrial robot arm that's picking and placing things and you can see how it's connected to the network and then something goes wrong with that robot alarm and then you can actually show how you can use the software and security tools to see was there code trying to access you know something that that robot was it was using it's getting in the way of it working so you could detect threats and move forward on that we also have a whole automation journey that starts from modeling your network to testing to how you would deploy automation to a deep dive on telemetry and then ends with multi domain automation so really helping engineers like look at that whole progression that's been that's been really popular Park talked about the specialization which ones are more popular or entry-level which ones are people coming into getting certified first network engineering automation first or what's the yeah so we're so the program is going to roll out with three different levels one is a specialized level the second is an advanced level and then we'll look to that third level again they're anchored in the in the individual certs and so as we look for that entry level it's really all about automation right I mean some things you take for granted but you still need these new skills to be able to automate and scale and have repeatable scalable benefits from that this the second tier will be more cross-domain and that's where we're really thinking that an additional skill set is needed to deliver dashboard experience compliance experiences and then that next level again we'll anchor towards the expert level that's coming out but one thing I want to point out is in addition to just having the certified people on staff they also have to demonstrate that they have a practice around it so it's not just enough to say I've passed an exam as we work with them to roll out the practice and they earn the badge they're demonstrating that they have the full methodology in place so that it really there's a lot behind it that means we can't be in the 500 list then even if a 500 list I don't know that the cube would end up being specialized its advertising no seriously all fun it's all fun it's Cisco live in Europe is there a difference between European and USD seeing any differences in geographic talent you know in the first couple years we did it I think there was a bigger difference it felt like there were different topics that were very popular in the US slightly different in Europe last year and this year I feel like they have converged it's it's the same focus on DevOps automation security as a huge focus in both places and it also feels like the the interest and level of the people attending has also converged it's really similar congratulations been fun to watch the rise and success of Devon it continues to be strong how see in the hub here and the definite zone behind us pact sessions yes what's the biggest surprise for you guys in terms of things that you didn't expect or some of the success what's what's jumped out yeah I think you know one of the points that I want to make sure we also cover and it has been an added benefit we're hoping it would happen we just didn't realize it would happen this soon we're attracting new companies new partners so the specialization won't just be available for our traditional bars this is also available for our non resale and we are finding different companies accessing definite resources and learning these skills so that's been a really great benefit of Deb net overall definitely my favorite surprises are when I show up at the community events and I hear from someone I met last year what the what they went back and did and the change that they drove and they come in their company and I think we're seeing those across the board of people who start a grassroots movement take back some new ideas really create change and then they come back and we get to hear about that from them those are my favorite surprises and I tell you we've known for years how important the developer is but I think the timing on this has been perfect because it is no longer just oh the developer has some tools that they like in the corner the developer connected to the business and driving things forward exactly so perfect timing congratulations on this certification their thing that's been great is that our at Cisco itself we now have API is across the whole portfolio and up and down the stock so that's been a wonderful thing to see come together because it opens up possibilities for all these developers so Cisco's API first company we are building it guys everywhere we can and and that the community is is taking them and finding creative things to build it's been fun to watch you guys change Cisco but also impact customers has been great to watch far many thanks for coming up yeah games live coverage here in Barcelona for Cisco live 20/20 I'm John Ford Dave Dave Alon face to many men we right back with more after this short break [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Music] [Music] you live from Barcelona Spain it's the cube covering Cisco live 2020 brought to you by Cisco and its ecosystem partners hello and welcome back to the cubes live coverage here at Cisco live 20/20 and partial into Spain I'm John first evening men cube coverage we've got a lot of stuff going on with Cisco multi-cloud and cloud technologies of clarification of Cisco's happening in real time is happening right now cloud is here here to stay we got two great guests to unpack what's going on in cloud native and networking and applications as the modern infrastructure and software evolves we got eugene kim global product marketing and compute storage at cisco global part of marketing manager and fabio corey senior director cloud solutions marketing guys great comeback great thanks for coming back appreciate it thanks very much great to see a lot of guys so probably we've had multiple conversations and usually even out from the sales force given kind of the that the discussion and the motivation cloud is big it's here it's here to stay it's changing Cisco API first we hear and all the products it's changing everything what's the story now what's going on I would say you know the reason why we're so excited about the launch here in Barcelona it's because this time it's all about the application experience I mean the last two years we've been announcing some really exciting stuff in the cloud space right think about all the announcements with the AWS the Google's the Azure so the world but this time it really boils down to making sure that is incredibly hyper distributed world well there is an application explosion ultimately we will help for the right operations tools and infrastructure management tools to ensure that the right application experience will be guaranteed for the end customer and that's incredibly important because at the end what really really matters is that you will ensure the best possible digital experience to your customer otherwise ultimately nothing is gonna work and of course you're going to lose your brand and your customers one of the main stories that we're covering is the transformation of the industry also Cisco and one of the highlights to me was the opening keynote you had app dynamics first not networking normally it's like what's under the hood the routers and the gear no it was about the applications this is the story we're seeing it's kind of a quiet unveiling it's not yet a launch but it's evolving very quickly can you share what's going on behind this all this absolutely it's exactly along the lines of what I was saying a second ago in the end that the reason why we're driving the announcement if you want from the application experience side of the house is because without dynamics we already have a very very powerful application performance measurement tool which it's evolving extremely rapidly first of all after Amex can correlate not just the application performance to some technology kpi's but to true actual business KPIs so AB dynamics can give you for instance the real-time visibility of say a marketing funnel conversion rates transactions that you're having in your in your business operation now we're introducing an incredibly powerful new capability that takes the bar to a whole new level and that's the dynamics experience journey Maps what are those it's actually the ability of focusing not so much on front-ends and backends and databases performances but really focusing on what the user is seeing in front of his or her screen and so what really matters is capturing the journey that a given user of your application is is being and understanding whether the experience is the one that you want to deliver oh you have like a sudden drop of somewhere and you know why that is important because in the end we've been talking about is it a problem of the application performance user performance well it could be a badly designed page how do you know and so this is a very precious information is that were giving to application developers not just to the IT ops guys that is incredibly precious to get this in so you just brought up that journey so that's part of the news so just break down real quick one minute yeah what the news is yeah so we have three components the first one as you as you correctly pointed out is really introduction the application journey Maps right the experience journey Maps that's very very important the second is we are actually integrating after am it's with the inter-site action inter-site optimization manager the workload team is a workload promisor and so because there is a change of data between the two now you are in a position to immediately understand whether you have an application problem we have a workload problem or infrastructure problem which is ultimate what you really need to do as quickly as you can and thirdly we have introduced a new version of our hyper flex platform which is hyper-converged flat G flat for Cisco with a fully containerized version we tax free if you want as well there is a great platform for containerized application of parameter so you teen when I've been talking to customers last few years when they go through their transformational journey there's the modernization they need to do the patterns I've seen most successful is first you modernize the platform often HCI is you know and often for that it really simplifies the environment you know reduces the silos and has more of that operational model that looks closer to what the cloud experience is and then if I've got a good platform then I can modernize the applications on top of it but often those two have been a little bit disconnected it feels like the announcements now that they are coming together what are you seeing what are you hearing how is your solution set solving this issue yeah exactly I mean as we've been talking to our customers love them are going through different application modernisations and kubernetes and containers is extremely important to them and to build a container cloud on Prem is extremely one of their needs and so there's three distinctive requirements that they've kind of talked to us about a lot of it has to be able to it's got to be very simple very turnkey and a fully integrated ready to turn on the other one is something that's very agile right very DevOps friendly and the third being a very economic container cloud on Prem as far we mentioned high flex application platform takes our hyper-converged system and builds on top of it a integrated kubernetes platform to deliver a container as a service type capability and it provides a full stack fully supported element platform for our customers and the one of the best great aspects of is that's all managed from inside from the physical infrastructure to the hyper-converged layer to all the way to the container management so it's very exciting to have that full stack management and insight as well yeah it's great to you know John and I have been following this kubernetes wave you know since the early early days Fabio mentioned integrations with the Amazons and Google's the world because you know a few years ago you talked to customers and they're like oh well I'm just gonna build my own urbanity right back nobody ever said that is easy now just delivering at his service seems to be the way most people wanted so if I'm doing it on Amazon or Google they've got their manage service that I could do that or that they're through partners they're working with so explain what you're doing to make it simpler in the data center environment because I'm tram absolutely is a piece of that hybrid equation the customers need yes so essentially from the customer experience perspective as I mentioned it's very fairly turnkey right from the hyper flicks application platform we're taking our hyper grew software we're integrating a application virtualization layer on top of it Linux KVM based and then on top of that we're integrating the kubernetes stack on top as well and so in essence right it's a fully curated kubernetes stack right it has all the different elements from the networking from the storage elements and and providing that in a very turnkey way and as I mentioned the inner site management is really providing that simplicity that customers need for that management ok Fabio this the previous announcement you've made with the public clouds yeah this just ties into those hybrid environments that's exactly you know a few years ago people like oh is there gonna be a distribution that wins in kubernetes we don't think that's the answer but still I can't just move between kubernetes you know seamlessly yet but this is moving towards that direction so a lot of customers want to have a very simple implementation at the same time they want of course a multi cloud approach and I really care about you know marking the difference between you know multi-cloud hybrid cloud there's been a lot of confusion but if you think about it multi cloud is really rooted into the business need of harnessing innovation from whatever it comes from you know the different clouds PV different things and you know what they do today tomorrow it could even change so people want option maladie so they want a very simple implementation that's integrated with public cloud providers that simplifies their life in terms of networking security and application of workload management and we've been executing towards that goal to fundamentally simplify the operations of these pretty complex kind of hybrid environments I want you to nail that operations on ibrid that's where multi cloud comes in absolutely just a connection point absolutely you're not a shitty mice no isn't a shit so in order to fulfill your business like your I know business needs you then you have a hybrid problem and you want to really kind of have a consistent production rate environment between fins on Prem that you own and control versus things that you use and you want to control better now of course there are different school of thoughts but most of the customers who are speaking with really want to expand their governance and technology model right to the cloud as opposed to absorb in different ways of doing things from each and every clock I want to unpack a little bit of what you said earlier about the knowing where the problem is because a lot of times it's a point the finger at the other first and where's it's the application problem isn't a problem so I want to get into that but first I want to understand the hyper flex application platform Eugene if you could just share the main problem that you guys saw what did some of the pain points that customers had what problems does the AP solve yeah as I mentioned it's really the platform for our customers to modernize their applications on right and it addresses those things that they're looking for as far as the economics right really the ability to provide a full stack container experience without having to you know but you know bringing any third party hypervisor licenses as well as support cost so that's fully integrated there you have your integrated hyper-converged storage capability you have the cloud-based management and that's really developing you providing that developer DevOps simplicity from the data Julie that they're looking for internally as well as for their product production environments and then the other aspect is its simplicity to be able to manage all this right in the entire lifecycle management as well so it's the operational side of the whole yeah uncovers Papio on the application side where the problem is because this is where I'm a little bit skeptical you know normally rightfully so but I can see in a problem where it's like whose fault is it gasification is problem or the network I mean it runs into more serious workloads the banking app that's having trouble how do you know where it what the problem is and how do you solve that problem what what's going on for that specific issue absolutely and you know the name of the game here is breaking down this operational side right and I love what our app dynamics VP GM Danny winoker said you know it has this terminology beast DevOps which you know may sound like an interesting acrobatics but it's absolutely true the business has to be part of this operational kind of innovation because as you said you know developer edges you know drops their containers and their code to the IET ops team but you don't really know whether the problem a certain point is gonna be in the code or in how the application is actually deployed or maybe a server that doesn't have enough CPU so in the end it boils down to one very important thing you have to have visibility inside and take action and every layer of the stack I mean instrumentation absolutely there are players that only do it in their software overlay domain the problem is very often these kind of players assume that underneath links are fine and very often they're not so in the end this visibility inside inaction is the loop that everybody is going after these days to really get to the next if you want generational operation where you gotta have a constant feedback loop and making it more faster and faster because in the end you can only win in the marketplace right regardless of your IT ops if you're faster than your competitor well still still was questioning the GM of AppDynamics running observability and he's like no it's not to feature it's everywhere so he his comment was yeah but serve abilities don't really talk about it because it's big din do you agree with that absolutely it has to be at every layer of the stack and only if you have visibility inside an action through the entire stack from the software all the way to the infrastructure level that you can solve the problem otherwise the finger-pointing quote-unquote will continue and you will not be able to gain the speed that you need okay so the question on my mind I want to get both of you guys can weigh in on this is that you look at Cisco as a company you got a lot going on I mean a guy's huge customer base core routers - no applications there's a lot going on a lot of a lot of complexity you got IOT security Ramirez talked about that you got the WebEx rooms got totally popular it's kind of got a lot of glam to it having the WebEx kind of you know I guess what virtual presence was yeah telepresence kind of model and then you get cloud is there a mind share within the company around how cloud is baked into everything because you can't do IOT edge without having some sort of cloud operational things so there's stuff you're talking about is not just a division it's kind of gonna it's kind of threads everywhere across Cisco what's the what's the mind share right now within the Cisco teams and also customers around clarification well I would say it's it's a couple of dimension the first one is the cloud is one of the critical domains of this multi domain architecture that of course is the cornerstone of Cisco's technology strategy right if you think about it it's all about connecting users to applications wherever they are and not just the user the applications themselves like if you look at the latest stats from IDC 58% of workloads is heading to the public cloud and to the edge it's like the data center is literally exploding in many different directions so you have this highly distributed kind of fabric guess what sits in between all these applications and microservices is a secure network and that's exactly what we're executing upon now that's the first kind of consideration the second is if you look at the other silver line most of the Cisco technology innovation is also going a direction of absorbing cloud as a simplified way of managing all the components or the infrastructure you look at the IP flex ap is actually managed by inter site which is a SAS kind of component this journey started a long time ago with Cisco Meraki and then of course we have SAS properties like WebEx everything else is kind of absolutely migrants reporter we've been reporting eugen that from years ago we saw the movement where api's are starting to come in when you go back five years ago not a lot of the gear and stuff at Cisco had api's now you got api's building into all the new products that's right you see the software shift with you know you know intent-based networking to AppDynamics it's interesting it's you're seeing kind of this agile mindset this is some of you and I talk about all the time but agile now is the new model is it ready for customers I mean the normal Enterprise is still got the infrastructure and application it's separated okay how do I bring it together what are you guys seeing the customer base what's going on with with not that not the early adopters heavy-duty hardcore pioneers out there but you know the the general mainstream enterprise are they there yet have they had that moment of awakening yeah I mean I think they they are there because fundamentally it's all about that ensuring that application experience and you can only ensure that application experience right by having your application teams and your structure teams work together and that's what's exciting you mentioned the API is and what we've done there with AppDynamics integrating with inter-site workload optimizer as Fabio mentioned it's all about visibility inside action and what app dynamics is provides providing that business and end-user application performance experience visibility inner sites giving you know visibility on the underlining workload and the resources whether it's on Prem in your you know drive data center environment or in different type of cloud providers so you get that full stack visibility right from the application all the way down to the bottom and then inner side local optimizer is then also optimizing the resources to proactively ensure that application experience so before you know if we talk about someone at a checkout and they're about to have abandonment because the functions not working we're able to proactively prevent that and take a look at all that so you know in the end I think it's all about ensuring that application experience and what we're providing with app dynamics is for the application team is kind of that horizontal visibility of how that application is performing and at the same time if there's an issue the infrastructure team could see exactly within the workload topology where the issue is and insert' aeneas lee whether it be manual intervention or even automatically there's or a ops capability go ahead and provide that action so the action could be you know scaling out the VMS it's on-prem or looking at a new different type of ec2 template in the cloud that's what's very exciting about this it's really the application experience is now driving and optimizing infrastructure in real time and let me flip your question like do you even have a choice John when you think about in the next two years 50% more applications if you're a large enterprise you have 5 to 7,000 apps you have another to 3,000 applications just coming into into the the frame and then 50% of the existing ones that are gonna be refactor lifted and shifted or replace or retired by SAS application it's just like it's tsunami that's that's coming on you and oh by the way because of again the micro service is kind of affect the number of dependencies between all these applications is growing incredibly rapidly like last year we were eight average interdependencies for applications now we are 20 so imaging imaging what happens as as you are literally flooded with the way the scanner really you have to ensure that your application infrastructure fundamentally will get tied up as quickly as you can still and I have been toilet for at least five years now if not longer the networking has been the key kind of last changeover - clarification and I would agree with you guys I think I've asked the question because I wanted to get your perspective but think about it it's 13 years since the iPhone so mobile has shown people that a mobile app can change business but now if you look at the pressure the network's bringing the pressure on the network or the pressure for the network to be better than programmable is the rise of video and data I mean so you got mobile check now you've got video I mean more people doing video now than ever before videos of consumer oil as streaming you got data these two things absolutely forced yeah the customers to deal with it but what really tipped the the balance John is is actually the SAS effect is the cloud effect because as you know it's in IT sort of inflection points nothing is linear right so once you reach a certain critical mass of cloud apps and we're absolutely there already all of a sudden you're traffic pattern on your network changes dramatically so why in the world are you continuing kind of you know concentrating all of your traffic in your data center and then going to the internet you have to absolutely open the floodgates at the branch level as close to the users as possible and that implies a radical change I would even add to that and I think you guys are right on where you guys are going it may be hard to kind of tease out with all the complexity with Cisco but in the keynote the business model shifts come from SAS so you got all this technical stuff going on now you have this Asif ocation or cloud that's changes the business models so new entrants can come in and existing players can get better so I think that whole business model conversation yeah never was discussed at Cisco live before yeah in depth as well hey run your business connect your hubs campus move packets around that was applications in business model yeah but also the fact that there is increasing number of software capabilities and so fundamental you want to simplify the life of your customers through subscription models that help the customer by now using what they really need right at any given point in time all the way to having enterprise agreements I also think that's about delivering these application experiences for your business small different type experience that's really what's differentiating you from your different competitors right and so I think that's a different type of shift as well well you guys are good got some good angle on this cloud I love it I got to ask you the question what can we expect next from Cisco more progression along clarification what's next well I would say we've been incredibly consistent I believe in the last few years in executing on our cloud strategy which again is centered around helping customers really gluon this mix set of data centers and clouds to make it work as one write as much as possible and so what we really deliver is networking security and application of performance management and we're integrating there's more and more on the two sides of the equation right the the designer side and the powerful outside and more more integrating in between all of these layers again to fundamentally give you this operational capability to get faster and faster we'll continue doing so and you set up before we came on camera that you were talking to the sales teams what are they what's their vibe with the sales team they get excited by this what's that oh yeah feedback oh yeah absolutely from the inner side were claw optimizer and they have dynamics that's very exciting for them especially the conversations they're having with their customers really from that application experience and proactively insuring it and on the hyper flex application platform side this is extremely exciting with providing a container cloud to our customers and you know what's coming down is more and more capabilities for our customers to modernize their applications on hyper flex you guys are riding some pretty big waves here at Cisco I get a cloud way to get the IOT Security wave it's pretty exciting pretty big stuff thanks for coming in thanks for sharing the insights Fabio I appreciate it thank you for having us your coverage here in Barcelona I'm John Force dude Minutemen be back with more coverage fourth day of four days of cube coverage we right back after this short break [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Applause] [Music] [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Music] [Applause] [Music] [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Applause] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Applause] [Music] [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] why Trump Barcelona Spain it's the cube covering Cisco live 2020 rot to you by Cisco and its ecosystem partners welcome back to Barcelona everybody we're here at Cisco live and you're watching the cube the leader in live tech coverage we got to the events and extract the signal from the noise this is day one really we started a zero yesterday Eric Hertzog is here he's the CMO and vice president of storage channels probably been on the cube more than [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music] [Music] [Music] [Applause] [Music] [Music] [Music] [Music] [Music] [Music] [Music] live from Barcelona Spain it's the cube covering Cisco live 2020 rot to you by Cisco and its ecosystem partners welcome back everyone's two cubes live coverage day four of four days of wall-to-wall action here in Barcelona Spain Francisco live 2020 I'm John Ferrier with mykos Dave Volante with a very special guest here to wrap up Cisco live the president of Europe Middle East Africa and Russia Francisco Wendy Mars cube alumni great to see you thanks for coming on to kind of put a bookend to the show here thanks for joining us right there it's absolutely great to be here thank you so what a transformation as Cisco's business model of continues to evolve we've been saying brick by brick we still think is a big move coming I think there's more action I can sense the walls talking to us like let's just go live in the US and more technical announcements in the next 24 months you can see you can see where it's going it's cloud its apps yeah its policy based program ability it's really a whole nother business model shift for you and your customers the technology shift and the business model shift so I want to get your perspective of this year opening key no you let it off talking about the philosophy of the business model but also the first presenter was not a networking guy it was an application person yeah app dynamics yep this is a shift what's going on with Cisco what's happening what's the story well you know if you look for all of the work that we're doing is but is really driven by what we see from requirements from our customers the change that's happening in the market and it is all around you know if you think digital transformation is the driver organizations now are incredibly interested in how do they capture that opportunity how do they use technology to help them but you know if you look at it really there's the three items that are so important it's the business model evolution it's actually the business operations for for organisations plus their people there are people in the communities within that those three things working together and if you look at it with you know it's so exciting with application dynamics there because if you look for us within Cisco that linkage of the application layer through into the infrastructure into the network and bringing that linkage together is the most powerful thing because that's the insight and the value our customers are looking for you know we've been talking about the in the innovation sandwich you know you got you know date in the middle and you got technology and applications underneath that's kind of what's going on here but you I'm glad you brought up the year the part about business model business operations and people in communities because during your keno you had a slide that laid out three kind of pillars yes people in communities business model and business operations there was no 800 series in there there was no product discussions this is fundamentally the big shift that business models are changing I tweeted provocatively the killer app and digital the business model because you think about it the applications are the business and what's running under the covers is the technology but it's all shifting and changing so every single vertical every single business is impacted by this it's not like a certain secular thing in the industry this is a real change can you describe how those three things are operating with that constitute think if you look from you know so thinking through those three areas if you look at the actual business model itself our business models as organizations are fundamentally changing and they're changing towards as consumers we are all much more specific about what we want we have incredible choice in the market we are more informed than ever before but also we are interested in the values of the organizations that were getting the capability from as well as the products and the services that naturally we're looking to gain so if you look in that business model itself this is about you know organizations making sure they stay ahead from a competitive standpoint about the innovation of portfolio that they're able to bring but also that they have a strong strong focus around the experience that their customer gains from an application a touch standpoint that all comes through those different channels which is at the end of the day the application then if you look as to how do you deliver that capability through the systems the tools and the processes as we all evolve our businesses you have to change the dynamic within your organization to cope with that and then of course in driving any transformation the critical success factor is your people and your culture you need your teams with you the way teams operate now is incredibly different it's no longer command and control its agile capability coming together you need that to deliver on any transformation never never mind let it be smooth you know in the execution there so it's all three together what I like about that model and I have to say we this is you know ten years to do in the cube you you see that marketing in the vendor community often leads what actually happens not surprising as we entered the last decade it was a lot of talk about cloud well it kind of was a good predictor we heard a lot about digital transformations a lot of people roll their eyes and think it's a buzzword but we really are I feel like an exiting this cloud era into the digital era it feels real and there are companies that you know get it and are leaning in there are others that maybe you're complacent I'm wondering what you're seeing in in Europe just in terms of everybody talks digital yeah be CEO wants to get it right but there is complacency there when it's a services say well I'm doing pretty well not on my watch others say hey we want to be the disruptors and not get disrupted what are you seeing in the region in terms of that sentiment I would say across the region you know there will always be verticals and industries that are slightly more advanced than others but I would say that then the bulk of conversations that I'm engaged in independence of the industry or the country in which we're having that conversation in there is a acceptance of transfer digital transformation is here it is affecting my business i if I don't disrupt I myself will be disrupted and be challenged help me so I you know I'm not disputing the end state I need guidance and support to drive the transition and a risk mythic mitigated manner and they're looking for help in that and there's actually pressure in the boardroom now around a what are we doing within within organizations within that enterprise the service right of the public said to any type of style of company there's that pressure point in the boardroom of come on we need to move it speed now the other thing about your model is technology plays a role in contribute it's not the be-all end-all but plays a role in each of those the business model of business operations and developing and nurturing communities can you add more specifics what role do you see technology in terms of advancing those three spheres so I think you know if you look at it technology is fundamental to all of those spheres in regard to the innovation the differentiation technology can bring then the key challenges one of being able to reply us in a manner where you can really see differentiation of value within the business so in then the customers organization otherwise it's just technology for the sake of technology so we see very much a movement now to this conversation of talk about the use case the use cases the way by which that innovation can be used to deliver the value to the organization and also different ways by which a company will work look at the collaboration capability that we announced earlier this week of helping to bring to life that agility look at the app D discussion of helping to link the layer of the application into the infrastructure the network's to get to root cause identification quickly and to understand where you may have a problem before you thought it actually arises and causes downtime many many ways I think the agility message has always been a technical conversation a gel methodology technology software development no problem check that's ten years ago but business agility mmm it's moving from a buzzword to reality exactly that's what you're kind of getting in here and teams how teams operate how they work you know and being able to be quick efficient stand up stand down and operate in that way you know we were kind of thinking out loud on the cube and just riffing with Fabio gory on your team on Cisco's team about clarification with Eugene Kim around just just kind of real-time what was interesting is we're like okay it's been 13 years since the iPhone and so 13 years of mobile in your territory in Europe Middle East Africa mobilities been around before the iPhone so with in more advanced data privacy much more advanced in your region so you got you out you have a region that's pretty much I think the tell signs for what's going on in North America and around the world and so you think about that you say okay how is value created how the economics changing this is really the conversation about the business model is okay if the value activities are shifting and be more agile and the economics are changing with sass if someone's not on this bandwagon it's not an in-state discussion where it's done deal yeah it's but I think also there were some other conversation which which are very prevalent here is in in the region so around trust around privacy law understanding compliance you look at data where data resides portability of that data GDP are came from Europe you know and as ban is pushed out and those conversations will continue as we go over time and if I also look at you know the dialogue that you saw so you know within World Economic Forum around sustainability that is becoming a key discussion now within government here in Spain you know from a climate standpoint and many other areas as well Dave and I've been riffing around this whole where the innovation is coming from it's coming from Europe region not so much the u.s. I mean us discuss some crazy innovations but look at blockchain us is like don't touch it pretty progressive outside United States little bit dangerous to but that's where innovation is coming from and this is really the key that we're focused on I want to get your thoughts on how do you see it going next level the next level next-gen business model what's your what's your vision so I think there'll be lots of things if we look at things like with the introduction of artificial intelligence robotics capability 5g of course you know on the horizon we have Mobile World Congress here in Barcelona in a few weeks time and if you talked about with the iPhone the smartphone of course when 4G was introduced no one knew what the use case would that would be it was the smartphone which wasn't around at that time so with 5g in the capability there that will bring again yet more change to the business model for different organizations and the capability and what we can bring to market when we think about AI privacy data ownership becomes more important some of the things you were talking about before it's interesting what you're saying John and when the the GDP are set the standard and and you see in the u.s. there are stovepipes for that standard California is going to do one every state is going to have a different center that's going to slow things down that's going to slow down progress do you see sort of an extension of a GDP are like framework of being adopted across the region and that potentially you know accelerating some of these you know sticky issues and public policy issues that can actually move the market forward I think I think the will because I think there'll be more and more you know if you look at there's this terminology of data is the new oil what do you do with data how do you actually get value from that data and make intelligent business decisions around that so you know that's critical but yet if you look for all of ours we are extremely passionate about you know where is our data used again back to trust and privacy you need compliance you need regulation you know I think this is just the beginning of how we will see that evolve you know when do I get your thoughts does Dave and I have been riffing for 10 years around the death of storage long live storage and but data needs to be stored somewhere networking is the same kind of conversation just doesn't go away in fact there's more pressure now forget the smartphone that was 13 years ago before that mobility data and video now super important driver that's putting more pressure on you guys and so hey we're networking so it's kind of like Moore's law it's like more networking more networking so video and data are now big your thoughts on video and data video but if you look at the Internet of the future you know what so if you look for all of us now we are also demanding as individuals around capability and access to that and inter vetted the future the next phase we want even more so there'll be more and more - you know requirement for speed availability that reliability of service the way by which we engage and we communicate there's some fundamentals there so continuing to to grow which is which is so so exciting for us so you talk about digital transformation that's obviously in the mind of c-level executives I got to believe security is up there as a topic what other what's the conversation like in the corner office when you go visit your customers so I think that there's a huge excitement around the opportunity realizing the value of the of the opportunity you know if you look at top of mind conversations are around security around making sure that you can make tank maintain that fantastic customer experience because if you don't the custom will go elsewhere how do you do that how do you enrich at all times and also looking at markets adjacencies you know as you go in and you talk at senior levels within within organizations independent of the industry in which they're in there are a huge amount of commonalities that we see across those of consistent problems by which organizations are trying to solve and actually one of the big questions is what's the pace of change that I should operate at and when is it too fast and when is what am I too slow and trying to balance that is exciting but also a challenge for companies so you feel like sentiment is still strong even though we're 10 years into this this bull market you know you got Briggs it you get you know China tensions with the US u.s. elections but but generally you see Tennessee sentiment still pretty strong and demand so I would say that the the excitement around technology the opportunity that is there around technology in its broadest sense is greater than ever before and I think it's on all of us to be able to help organizations to understand how they can consume I see value from us but it's you know it's fantastic science it tastes trying to get some economic indicators but really the real thing I'm trying to get you is Minh set of the CEO the corner office right now is it is it we're gonna we're gonna grow short-term by cutting or do we do are we gonna be aggressive and go after this incremental opportunity and it's probably both you're seeing a lot of automation yeah and I think if you look fundamentally for organizations it's it's that the three things helped me to make money how me to save money keep me out of trouble you know so those are the pivots they all operate with and you know depending on where an organization is in its journey whether a start-up there you know in in the in the mid or the more mature and some of the different dynamics and the markets in which they operate in as well there's all different variables you know so it's it's it's mix Wendy thanks so much for spending the time to come on the cube really appreciate great keynote folks watching if you haven't seen the keynote opening sections that's a good section the business model I think it's really right on I think that's going to be a conversation it's going to continue thanks for sharing that before we look before we leave I want to just ask you a question around what you what's going on for you here at Barcelona as the show winds down you had all your activities take us in the day of the life of what you do customer meetings what were some of those conversations take us inside inside what what goes on for you here well I'd say it's been an amazing it's been an amazing few days so it's a combination of customer conversations around some of the themes we just talked about conversations with partners and there's investor companies that we invest in a Cisco that I've been spending some time with and also you know spending time with the teams as well the DEF net zone you know is amazing we have this afternoon the closing session where we've got a fantastic external guest who's coming in it's going to be really exciting as well and then of course the party tonight and we'll be announcing the next location which I'm not gonna reveal now later on today we kind of figured it out already because that's our job and there's the break news but we're not gonna break it for you you can have that hey thank you so much for coming on really appreciate Wendy Martin expecting the Europe Middle East Africa and Russia for Cisco she's got our hand on the pulse and the future is the business model that's what's going on fundamental radical change across the board in all areas this the cue bringing you all the action here in Barcelona thanks for watching [Music] [Music] [Music] [Applause] [Music] [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] [Music]

>>Live from Atlanta, Georgia. It's the cube covering Ansible Fest 2019 brought to you by red hat. >>Welcome back. This is the cubes coverage of Ansible Fest 2019. I'm Stu Miniman. My cohost of the week is John farrier. And this is the cube insights where we share our independent analysis, break down what we're hearing from the community, what we've learned from all of our interviews. John, uh, you know, we knew community would be a big portion of what we did here. Uh, culture and collaboration were things that we talked a lot about that wasn't necessarily what I thought I would be hearing. Uh, you've been talking a lot about how observability and automation are the, the huge wave. We've seen, you know, acquisitions, we've seen IPOs, we've seen investments. So, you know, your, your, your take here as we're wrapping up. Sure, sure. Last to, um, as we said in our opening in the big scene here has been automation for all that's Ansible's kind of rap because they're, you know, they're announcing their main news ants, full automation platform. >>So that's the big news. But the bottom line is where this emerged from was configuration management and supple started out as a small little project that's solved a very specific problem. It solved configuring devices and all the automation around, you know, opening up ports and things that that were important beyond the basic static routing, the old web one. Dot. O web 2.0 model. And it grew into a software abstraction layer for automating because a lot of that stuff, the mundane tasks in configuring networks and servers frankly were boring and redundant. Everyone hated them patches. So easy ground to automate. And I think, um, it's evolved a lot into dev ops because with the cloud scale more devices, just because software's defining everything, it doesn't mean servers go away. So we know that is more servers is more storage, it's in the cloud, it's on premise, it's cloud operations. >>So automation I think, and I'm, my prediction is is that automation will be as big of a category as observability was. And remember we kinda missed observability we saw it as important. We've covered all those companies, but especially in network management on steroids with the cloud. But look what happened. Multiple companies when public big companies getting sold for billions of dollars, a lot of M and a activity observability is the most, one of the most important areas of cloud 2.0 it's not just some white space around network management. The data is super important. I think automation is going to grow into a highly competitive, highly relevant in the lucrative marketplace for companies and I think Ansible is in pole position to capture that with red hat and now red hat part of IBM. I think automation is going to be very big land grab. It's going to be where the value is created. >>I think observability and automation are going to go hand in hand and I think AI and data, those are the things programming infrastructure revolve around those two spheres. I think it is going to be super important. I think that's why the cube is here. We smelled it out, we sniffing it and we can see. We can touch it and the community here, they're doing it. They're there actually have proof points. Yup. These, this community is demonstrating that the process is going to be more efficient. The technology works and the people are transforming and that is a key piece with automation. People can work on other things and it's certainly changing the game. So all three aspects of digital transformation are in lockstep and, and, and, and expanding rapidly. >>Yeah. John, I would expect nothing less than a bold prediction from you on this space. You know, it's only $150 million acquisition, which is really small compared to a lot of the acquisitions that we see these as heck. You know, red hat Ansible didn't get talked about all that much when you know, IBM went and spent over $30 billion for red hat. But absolutely automation is so important that infrastructure is code movement that we've been tracking for quite a long time helps enable automation across the entire stack. A lot of discussion this week here, networking and security, two areas that we know need to make progress and we need to have, you know, less errors. We need to be able to make changes faster and cloud. We just as in the infrastructure space, that configuration management, we need to be able to simplify things. Absolutely. One of the things that will slow down the growth of cloud is that if we can't simplify those environments, so the same type of tooling and where Ansible is trying to, you know, span between the traditional environments and the cloud is to get this working in the containerization cloud native Kubernetes world that we're living in. >>Yeah, and it's still, you're right on, I mean this is the analysis and that it's spot on. I think one of the nuances in the industry landscape is a, when red hat got acquired by IBM for a massive amount of money, everyone's scratching their heads. But if you think about what red hat has done and you know I'm a real big fan of red hat, you are too. They're smart. They make great acquisitions, Ansible, not a big payout. They had coral West, they, they got open shifts there. They're the decouple their operating systems people. They get the notion of systems architecture. I think red hat is executed brilliantly in that systems mindset, which is perfect for cloud computing. I think Arvin Krishna at IBM really understood the impact of red hat and when I talked to him at red hat summit two years ago, right before the acquisition, he had the twinkle in his eye when I asked him about red at, because you can see them connecting the dots. Red hat brings a lot to the table and if IBM doesn't screw up red hat, then they're going to do well and we talk about red hat not screwing up Ansible and they didn't. Now part of it, if IBM doesn't screw up the red hat acquisition, let red hat bring that systems mindset in. I think IBM could use red has a beautiful way to bring a systems architecture into cloud, cloud native and really take a lot of territory down these new cloud native apps. >>John F automation is a force multiplier for customers and Ansible has that capability to be a force multiplier for red hat. When you look at the ecosystem they're building out here, the Ansible automation platform really helps it get customers more in lock steps. So you know, I was talking to the people and said, Oh, you know, AWS has an update. Oh we need to roll the entire core and put out another version. I can't wait for that. I need to be able to decouple the partner activity, which by the way, they talked about how the disk project is the six most popular in get hub decoupling collections might actually put them lower on the on the list, but that's okay because they're solving real customer problems. And it's interesting, John, we talk about the ecosystem here. One of, there's only a couple of other companies other than red hat that can commit without having to go through approval. Microsoft is one of them. So you talk about the, the collaboration, the ecosystem here where this can be, >>let's do the, the thing about Ansible is that it's a double edged sword. There value is also an Achilles heel. And one of the critical analysis that I have is, is that they're not broad enough yet. On and there and there. I won't say misunderstood the customers here in the community, they totally get it. Everyone here loves Ansible. The problem is is that in the global landscape of the industry, they're tiny red hat needs to bring this out faster. I think IBM has to get animal out there faster because they have all the elements kind of popping right now. You got community, very strong customer base, loyal and dynamic. You got champions developing. That's classic sign of success. They got a great product, perfectly fit for this glue layer, this integration layer, you know, below containers and maybe you can even sitting above containers depending on how you look at it. And then finally the ecosystem of partners. Not yet fully robust, but all the names are here. Microsoft, Cisco net app F five kind of feels like VMworld on a small scale. They have to up level it. I think that's the critical problem I see with with these guys is that it's almost too good and too small. >>Yeah. Uh, you know, when I look back at when red hat made the acquisition, there were a handful of companies, most of them embracing open source as to which configuration management tool you're going to do. Ansible did well against them and red hat helped make them the category leader in this space. There is a different competitive landscape today. Just public cloud. You know, Ansible can help, but there's some customers that would be like, Oh, I've got different tooling and it doesn't fit into what I'm doing today. So there's some different competitors in the landscape and we know John, every customer we've talked to, they've got a lot of tools. So how does Ansible get mind share inside the company? They had some great stories that we heard both on the Q from like ING and the Southern company as well as in the keynotes from JP Morgan where they're scaling out, they're building playbooks, they're doing this, but you know, this is not, you know, it's not just push a button to get all of this rolled out. >>The IBM marketing should help here. And if I'm, you know, um, uh, the marketing team at IBM, I'd be like all over this because this is a, a game changer because this could be a digital transformation ingredient. The people equation. The problem is, is that again, IBM to embrace this and Ansible has that glue layer integration. This could be great. Now the benefit to them, I think they're tailwind is they can solve a lot of problems. One nuance from the show that I learned was, okay, configuration management, dev ops, great. The network automation is looking good. Security is a huge opportunity because if you think about the basic blocking and tackling patches, configuration, misconfigurations, automation plays perfect role. So to get beachhead in the enterprise as an extraction layer is to own and dominate those basics. Because think about the big hacks. Capitol one, misconfigured firewall to an S three bucket, that wasn't Amazon's fault, but the data on Amazon, this is automation can solve a lot of these problems, patches, malware, vulnerabilities, the adversaries are going to be all over that. >>So I think the security piece, huge upside position, Ansible and red hat as an abstraction layer to solve those basic problems rather than overselling it could be a great strategy. I think they're doing a good job with that. Uh, it totally, you know, built on simplicity and modularity. Uh, this, this tooling is something that it can sit lots of places in the organization, uh, and help that cultural communication. Uh, I was a bit critical of, uh, you know, enterprise collaboration, uh, that, that top down push that you'd get. Um, but here, you know, you've got a tool that uh, as we, we just had on our final interview with, uh, Pirog, you know, developers, they didn't build this for developers, but developers are embracing it. The infrastructure people are embracing it. It gives a sense of some why we here to why we're here is I think Ansible fast as a community event, which we love. >>But two, I think this is early, you know, days in the Canadian, the coal mine and saying that the Ansible formula for automation is going to be a growth year. That's my prediction. And we have data to back it up. If you look at our our community and the folks out in the cube alumni know no that when we reach out to them and get some data. But here's what supports why I think the automation thing with Ansible and red hat is relevant because it applies what we just talked about. The number one thing that came back from the community stew was focused efforts on better results. Automation from time efficiency days, hours to minutes check. Security is absolutely a top driver for automation. That's a tailwind. The job satisfaction issue is not like a marketing feel. Good thing. People actually liked their jobs when they have to, don't have to come in on the weekends. >>So this automation does align with that. And finally infrastructure and developers re-skilling with new capabilities and new things. Is it just an uplift? So those are the drivers driving the automation. That's why RPA is so hot and this is a critical foundation in my opinion. So you know Ansible's is the leading the wave here in this new automation wave and I think it's going to be a big part because it's controlling the plumbing. Yeah, John wanted the machinery. Johnny is the, the, the future of work. We know that automation is going to be hugely important. You mentioned >>RPA, a huge one. I had an interview with the associate professor from Syracuse university or they're teaching this to education. It's not just, Oh Hey you got to go learn coding and learn this programming language. No, we need to have that. That combination of the business understanding and the technology and automation can sit right at that intersection. What's your big learning point? What did you take away? Yeah, so it is, it's that point here that this is not just to some, you know, cool little tool on the side. This is something you John, we've talked at many shows. Software can actually be a unifying factor inside companies to help build platforms and for customers to help them collaborate and work together. This a tool like Ansible isn't just something that is done tactically but strategically, you know, gets everyone on the same page enables that collaboration isn't just another channel of you know, some other thing that a, I don't want to have to deal with it. >>It helps me get my job better. Increases that job satisfaction. That's so hugely important as to if you think about the digital transformation form of the people, process technology, how many interviews have we done, how many interviews have we done, a companies we've talked to where they have the great product and on the process side to address the process. They have the tech but they fail on the people side. It's the cultural adoption, it's the, it's the real enablement and I think Ansible's challenge is to take the platform, the capabilities of their, of their, of their software, launch the platform and create value because if they're not enabling value out of the platform that does not cross check with what platforms are supposed to do, which is create value. And John, the thing I want to look for when we come back to this show next year is how much are they allowing customers delivered through data? >>When we heard from their engineering division here, okay, the platforms, the first piece, but how do I measure internally and how do I measure against our peers? We know that that people want to have, there's so much information out there. How am I doing? Am I, where am I on my the five, five step progression and adoption of automation and you know, Hey, am I doing good against my competition or are they smoking me? Well? That's the metrics with the insight piece and tying it to the rail. Now people can say, look, I just saved a bunch of money. I saved some time. That's the business impact and I think you know when you have the KPIs and you had the analysts to back it up, good things will happen. Students been great. All right, John, always a pleasure to catch up with you. We got lot more here toward the second half of 2019 a big thanks to the whole community for of course watching this here at antelopes Fest. Check out the cube.net for all the upcoming shows. Thank you to our whole production team and to our hosts. Red hat for giving this beautiful set right in the middle of the show. And thanks as always for watching the cube.

>> Hello and welcome to a special CUBE Conversation. I'm John Furrier, the co-founder of SiliconANGLE on theCUBE. We're here in Sundance 2018 at the Intel Tech Lounge for a panel discussion with experts on the topic of The New Creative. We believe a new creative renaissance is coming in application development and also artistry. The role of craft and the role of technology and software coming together at the intersection. You're seeing results in the gaming industry. Virtual reality, augmented reality, mixed reality. A new wave is coming and it's really inspiring, but also there's a few thought leaders at the front end of this big wave setting the trends and they're here with us in this special panel for The New Creative. Here with us is Brooks Browne, Global Director of VR at Starbreeze Studios, a lot to share there, welcome to the panel. Lisa Watt, VR Marketing Strategist at Intel, Intel powering a lot of these VR games here. And Winslow Porter, co-founder and director of The New Reality Company. Many submissions at Sundance. Not this year, but a ton of experience talk about the role of Sundance and artistry. And then we have Gary Radburn who's a director of commercial VR and AR from media within Dell, Dell Technologies. Guys, welcome to this panel. Lisa, I want to start off with you at Intel. Obviously the Tech Lounge here, phenomenal location on Main Street in Sundance. Really drawing a massive crowd. Yesterday it was packed. This is a new generation here and you're seeing a younger demographic. You're seeing savvier consumers. They love tech, but interesting Sundance is turning into kind of an artistry tech show and the game is changing, your thoughts on this new creative. >> Yeah, it's been amazing to watch. I've been here for, this is my third year coming back with VR experiences. And it's really just been incredible to see. Sundance has been on the leading edge of exploring new technologies for a long time and I think this is, I feel like you know this feels like the break out year really. I mean, it's been successful the last few years, but something about this year feels a little bit different. And I think maybe it's the people are getting more familiar with the technology. I think the artists are getting more comfortable with how to push the boundaries. And then we certainly are getting a lot out of seeing what they're doing and how we can improve our products in the future. >> We were talking yesterday, Lisa, about the dynamic at Sundance. And you were mentioning that you see a few trends popping out. What is the most important story this year for the folks who couldn't make it, who might be watching this video that you see at Sundance? Obviously it's a great day today, it's snowing, it's a white day, it's beautiful powder, greatest snow on Earth. But there's some trends that are emerging. We had a march this morning, the Women's March. You're seeing interesting signals. What's your view? >> I think there's a lot less desire to put up with subpar experiences. I mean I think everyone is really starting to push the boundaries, I mean, we saw a lot of 360 video which we love for a linear narrative. But they're really breaking out and really exploring what does it mean to have autonomy especially in the virtual reality experiences, a lot more social is coming to the forefront. And then a lot more exploration of haptics and the new ways of extending into more 4D effects, etc. So I think it's very very exciting. We're really excited to see all the new innovations. >> Winslow, I want to ask you, if you can comment, you've been an active participant in the community with submissions here at Sundance. This year you're kind of chilling out, hanging out. You've been on the front lines, what is your take on the vibe? What's the sentiment out there? Because you're seeing the wave coming, we're feeling it. It feels early. I don't know how early it is, and the impact to people doing great creative work. What's that take? >> Well yeah, it's kind of like VR years are like dog years, you know. Like a lot can happen in a month in the VR space. So I had a piece here in 2014 called Clouds. It was an interactive documentary about Creative Code, but that was back when there was only two other VR pieces. It's interesting to see how the landscape has changed. Because CCP Games had a piece there. An early version of E Valkyrie. And unfortunately in the last three months, they had to close their VR wing. So, and then Chris Milk also had a Lincoln piece with Beck. Which was a multi camera 360, actually it was a flash video that they recorded to the DK1. And so that was, seeing that everyone was, saw the potential. The technology was still pretty rudimentary or crude even, we should say. Before any tracking cameras. But every year people learned from previous Sundances and other festivals. And we're seeing that Sundance kind of raises the bar every year. It's nice that it's in January because then there's all these other festivals that sort of follow through with either similar content, newer versions of content that's here, or people have just sort of learned from what is here. >> So I got to ask you. You know, obviously Sundance is known for pushing the boundaries. You see a lot of creative range. You see a lot of different stuff. And also you mentioned the VR. We've seen some failures, you've seen some successes, but that's growth. This market has to have some failures. Failures create opportunities to folks who are reiterating in that. What are some of the things that you can point to that are a positive? Things that have happened whether they're failures and/or successes, that folks can learn from? >> Well, I think that this year there's a lot more social VR. We're connecting people. Even though they're in the same space, they're able to be in this new virtual world together. There's something amazing about being able to interact with people in real life. But as soon as you have sort of a hyper reality where people are able to be experiencing a Sufi ritual together. Things that you wouldn't normally... That they're not possible in the real world. And also, I think that there's issues with lines too. Obviously every year, but the more that we can have larger experiences with multiple people, the more people we can get through. And then more impact we can make on the audience. It's really... We were in claim jumper last year. And we could only get one person in every 10 minutes. And that makes things pretty tricky. >> And what are you doing at Sundance this year? You've obviously got some stuff going on with some of the work you've done. What's your focus? >> So yeah we have a company called New Reality Company where we produce Giant and Tree. It's part of a trilogy where Breathe is going to be the third part. We're going to be completing that by the end of this year. And right now, I would say the best thing about Sundance is the projects, but also the people. Being able to come here, check in, meet new people, see partners that we've been working with in the past. Also new collaborations, everywhere you turn, there's amazing possibilities abound. >> I want to talk about empathy and social. I mentioned social's interesting in these trends. I want to go to Brooks Brown, who's got some really interesting work with Starbreeze and the Hero project. You know, being a pioneer, you've got to take a few arrows in your back, you've got to blow peoples' minds. You're doing some pretty amazing work. You're in the front lines as well. What's the experience that you're seeing? Talk about your project and its impact. >> Well for us, we set out with our partner's ink stories, Navid Khonsari, a wonderful creative, and his entire team to try to create that intensely personal experience kind of moving the opposite direction of these very much social things. The goal, ultimately being to try to put a person inside of an event rather than a game style situation where you have objective A, B, or C. Or a film that's a very, very hyper linear narrative. What is that sort of middle ground that VR itself has as unique medium? So we built out our entire piece. Deep 4D effects, everything is actually physically built out so you have that tactility as you walk around. Things react to you. We have smell, temperature, air movement, the audio provided by our partners at DTS is exceptional. And the goal is ultimately to see if we put you in a situation... I'm doing my best not to talk about what that situation is. It's pretty important to that. But to watch people react. And the core concept is would you be a hero? All over the world, every day people are going through horrific stuff. We're fortunate because we're the kind of people who, in order to experience, say a tragedy in Syria, we're fortunate that we have to go to Park City, Utah and go in virtual reality to experience something that is tragic, real, and deeply emotional. And so our goal is to put people through that and come out of it changed. Traumatized actually. So that way you have a little bit more empathy into the real world into the actual experiences they went through. >> And what's the goal? This is interesting because most of the some stuff you see, the sizzle out there is look at the beautiful vistas and the beaches and the peaks and you can almost be there. Now you're taking a different approach of putting people in situations that probe some emotional responses. >> Yeah. It's a big deal to us. The way Navid like to put it, and I'm going to steal this from him, is you see a great deal of people prototyping on hardware and all of these things, and it's great cause we need that. We need to be able to stand on the shoulders of those giants to be able to do these things. But you see very few people really prototyping what is the concept of story as per VR? We've been doing, at Starbreeze, we've been doing location based for some time now and I've been getting thousands upon thousands of pitches. And whenever you get a pitch, you can pretty much identify, oh you come from a film background, you come from a games background. There's very few people who come down that middle line and go, well this is what VR is supposed to be. This is that interesting thing that makes it very deeply unique. >> What's the confluence and what's the trend in your mind as this changes? Cause you mentioned that gamers have affinity towards VR. We were talking about that before we came on the panel. You know, pump someone in mainstream USA or around the world who does email, does work, may not be there, you're seeing this confluence. How is that culture shifting? How do you see that? Cause you're bringing a whole nother dimension. >> We're trying to go back to a little bit, something about this Sundance being a little bit different. I think in general in VR, you're seeing this sort of shift from a few years ago it was all potentiality. And I think a lot of us, the projects were great, but a lot of us who work in VR were like oh I see what they're trying to do. And people like my dad would be like I don't. I don't see what they're trying to do. But that is shifting. And you're seeing a larger shift into that actuality where we're not quite there yet where we can talk about the experiences every day Americans are going to have. What is the real ready player one that we're actually going to have existing. We're not there yet, but we're much closer every time. And we're starting to see a lot of these things that are pushing towards that. Final question before I go to some of the speeds and feeds questions I want to get with Intel and Dell on is what is the biggest impact that you're seeing with your project and VR in general that will have the most important consequences for societal impact? >> Well, we were fortunate yesterday we had a number of people come through Hero. And a number of them simply actually couldn't handle it. Had to come out. We had to pull people out. The moment we took the headset off, they were, tears were streaming down their face. There's a level of emotional impact VR is extremely able to cut through. It's not that you're playing a character. It's not that you're in a separate world. You are you inside of that space. And that is a dangerous but very promising ability of VR. >> Winslow, could you take a stab at that, I'd like to get your reaction to that because people are trying to figure out the societal impact in a positive way and potentially negative. >> Yeah I mean, so with that, whenever you traumatize somebody else or have the ability to possibly re-traumatize somebody... In Giant, we made sure that we gave them a trigger warning because yeah these things can be intensely intimate or personal for somebody who already has that sort of baggage with them or could be living in a similar experience. In Giant, we witnessed the last moments of a family. As they're convincing their daughter that the approaching bomb blast is a giant that actually wants to play with her. And so we put haptics in the chair so the audience was also surprised. But we let them know that it was going to be taking place in a conflict zone. So if that was something that they didn't want to participate in, that they could opt out. But again, like we didn't know... We had to go and buy tissues like right off the bat because people were crying in the headset. And that's kind of a... It's an interesting problem to have for the sake of what are sort of the rules around that? But also it makes it more difficult to get people through the experience in a timely fashion as well. But yeah, but we're seeing that as things become more real then there's also a chance to possibly impact people. It's the... >> So it's social for you? You see it as a social impact? >> Well, I mean if everyone's experiencing the same thing that can be social, but again if it's a one on one experience, it's sort of like up to the filmmaker to make sure that they have the scruples that they are playing by the rules. Cause there's right now most every piece of content is being released through Oculus, Steam, or Viveport. But there will be... It's heavily regulated right now, but as soon as there's other means of distributing the content, it could take a different sort of face. >> Certainly some exciting things to grab on, great stuff. I want to get to the commercial angle. Then we're going to talk more about the craft and the role of artistry in the creating side of it. Gary, you're the commercial VR expert at Dell. You're commercializing this. You're making the faster machines. We want faster everything. I mean everyone... Anyone who's in VR knows that all the graphics cards. They know the speeds and feeds. They're totally hardware nerds. What's going on? Where's the action? >> Okay, that's such a large question. I mean we've had some great stuff here that I also want to comment on as well. But inside the commercial side, then yeah everybody wants bigger, stronger, better, faster. And to Winslow's comment about the dog years, that really puts the pressure on us to continue that innovation and working with partners like Intel to get those faster processors in there. Get faster graphics cards in there so that we can get people more emotionally bought in. We can do better textures, we can get more immersion inside the content itself. We're working a lot around VR in terms of opening peoples' eyes for societal impact. So VR for good for instance. Where we're taking people to far flung corners of the Earth. We work with Nat Geo explorer Mike Libecki to show the plight of polar bears in Greenland and how they're gradually becoming extinct for an edutainment and a learning tool. The boundaries are really being pushed in entertainment and film. That's always been the case. Consumer has always really pushed that technology. Commercial's always been a bit of a lagger. They want stability in what's going on. But the creation that's going on here is absolutely fantastic. It's taken what is essentially a prosumer headset and then taking it into that commercial world and lit it up. 360 video, its very inception, people are using it for training inside of their businesses and so that's now going out into businesses now. We're starting to see advances in 360 video with more compute power needed. Where, to the point about immersion and getting people emotionally bought in. Then you can start doing volumetric, getting them in there. And then we're also working with people like Dr. Skip Rizzo who was on our panel yesterday where we're starting to go into, okay, we can treat PTSD. Help people with autism, through the medium of VR. So again, that buys into... >> These are disruptive use cases that are legit? >> Yeah. >> These are big time, market moving, helping people... >> Absolutely. And that where it becomes really, really powerful. Yes, we want our companies to embrace it. Companies are embracing it for training. But when you start seeing the healthcare implications and people crying inside of headsets. That's effecting you deeply, emotionally. If you can make that for good, and change somebody's trigger points inside of PTSD, and the autism side of helping somebody in interview techniques to be able to be more self sufficient, it's absolutely awesome. >> This is the new creative. So what's your take on the new creative? What's your definition? Cause you're talking about a big range of use cases beyond just film making and digital artistry. >> Yeah, absolutely so the new creative is like with all the great work that's here, people are looking at film and entertainment. Now the world really is the oyster for all the creatives out there. People are clamoring out for modelers, artists, story tellers, story experiencers to be able to use that inside their commercial environments to make their businesses more effective. But they're not going to have a 360 video production company inside of their commercial organization. And it's then leveraging all of the creative here and all of the great stuff here. Which is really going to help the whole world a lot. >> Lisa, I want to get your thoughts on this cause you guys at Intel here at the Tech Lounge have a variety of demos, but there's a range of pro and entry level tools that can get someone up and running quickly to pro. And so there's a creative range not only just for digital artistry, but also business we're hearing. So what's the... Cause AI's involved in a lot of this too though. It's not just AI, it's a lot of these things. What's the Intel take on this. >> Well I think it's really an interesting time for us at Intel because one of the things that we have that I think probably nobody else has. We have this amazing slate of products that really cover the end to end process. Both from the creation side of the house all the way to the consumption side. And we talk a lot about our processors. We worked on an amazing project, a couple of huge scenes inside of the Sansar environment. Which is a great tool for really democratizing the creation of spaces. It's a cloud hosted service but it utilizes this amazing client-server architecture. We created four huge spaces in a matter of eight weeks to launch at CES. And some of the technologies that Gary was referring to just in pure processing power like two generations old processors were taking three hours to render just a small portion of a model where our newest generation Core i9s with our opting technology took that time to 15 minutes. So when we think about what we can do now, and those technologies are going to be available in even portable laptop form factors. We've got the piece where we were working here SPHERES. They were able to actually make some corrections and some tweaks basically immediately without having to send them off to some render farm. They were able to do those things. And I know Winslow has talked about that as well. What does it mean to you to be able to react real time. And be able to do your creative craft where you are and then be able to share that so readily. And then you know... I just think that's kind of an amazing equalizer. It's really democratizing the creation process. >> Okay the next question that begs for everyone to address is where are we in this progression? Early? What work needs to get done? Where are we holding back? Is it speeds and feeds? Is it the software? Is it the routines, libraries, art? Where's the bottleneck? Why isn't it going faster? Or is it going faster? >> I would, and I'm sure the team would agree here, I would say that one of the key things is the creator tools themselves, right. They are still somewhat cumbersome. We were talking to another filmmaker. He was like I can't even, I have to play the whole piece from the beginning, I can't just go in and edit, you know change control, being able to collaborate on these pieces with other people. I mean, if you can collaborate in a real world space, you should be able to also collaborate in VR and have change control and all those sorts of things that are necessary to the iteration of a project. So we're trying to work with our software partners. They're all doing a really great job of trying to iterate that, but it's going to take some time. I mean I think that's probably the bigger thing that's holding everything back. We're going to be right there with the processing power and the other technologies that we bring to the table. OEM partners are going to be right there with the best devices. I really think it's something we've all got to push for as far as those tools getting better. >> Brooks, comment on anything? You're in the... >> So for me, the thing that's holding back VR in general is actually the art form itself. One of the great challenges, if you look back, at say the history of film... We're at Sundance, so it's probably fairly apropo. Very early on in the early movies, aside from penny arcade machines that you'd actually stare at, they were 10 minute almost like plays that people would go to almost a playhouse and they'd watch this thing. There were not cuts, there were no angles. It was a single wide shot. Great Train Robbery came around and there was this crazy thing they did called an edit. Where they spliced film together. And if you go back and you read, and they did these dolly shots. People will have no idea what they're watching. There's no way people will be able to follow that. Like people were not happy with it at the time. Now it's stuff that children do on their iMacs at home. They do iMacs all the time, they do it on their iPhones, on their Android devices. These are normal languages of film that we have. VR doesn't have that yet. And there's not a great deal of effort being made in that direction. There's people here doing that. So I'm kind of speaking in the middle of the group, but outside of these people, there's only a handful who are really doing that and it's a significant challenge. When people who are the mainstream consumer put on a VR headset, it needs to be more than just a magic trick where they go oh that's cool. And that tends to be the vast majority of experiences. So what is the thing that is going to make someone go oh I get why we have VR as a medium. And we're not there yet. We're in the direction, but that's >> So you mentioned earlier the point where you can tell if someone's from film or gaming or whatever when you talk to them about VR. Who is the future VR developer? Is it a filmmaker? Is it a gamer? Is it a digital artist? What is this evolving? >> It's a kid in his basement who no one knows and is screwing around with it and is going to do something that everyone thinks is stupid. Like, it's going to be that. Basically every major leap in gaming is kind of the same thing. It's when we understand how ludonarrative dissonance works inside of telling how people move around a space. It's about how we do Dutch angle suddenly in film. And these things get invented. It's going to be some kid who's just screwing around who doesn't have the baggage of the language of film. A lot of the people I know in VR have been fortunate to work in film, in games and interactive or web dev. So you come from a lot of places but someone's going to come along who has none of that baggage. And they're going to be... >> Well you guys are pioneers and you're doing it. So for the first person out there that's in their basement, that inspirational soundbite or comment. How can you guys talk to that person or that group? Because this is the democratization, this is what's happening. It's not the gatekeepers. It's real creatives out there that could come from anywhere. YouTube generation, Twitch generation, gaming. What would you say to that person to motivate them and to give them that passion? >> Well it's only going to get easier, faster, cheaper, all these things are happening. But again, yeah I totally agree with what Brooks said. It's really about the culture and about educating the audience and getting them up to speed. There are some VR experiences that as soon as they put on the headset, like somebody who's never done it before, immediately will take it off cause they'll get nauseated. And then there's people, like kids who are like jet fighters. They've seen everything. You could throw like a 30 frames per second experience at them and that doesn't even phase them. They can be, all of a sudden their worlds are changing and they're like bring it because they're ready for that. So I think it's sort of about raising the bar for what the audience is comfortable with, familiar with, educating the community. There's a lot of tools right now, you know with Unreal and Unity that allow people who have very little... They don't need to know C# or C++, they can get started in a lot of like visual. What you see is what you get. Being able to drag things into a virtual room. And the windows headsets that are out. They refer to them as mixed reality, but just even having the ability to flip up the screen and transition from the virtual world to the real world in milliseconds, it allows you to be able to create things more at the speed of thought instead of coming up with an idea, coding it, and making sure it works, and then eventually putting on the headset. The sooner that we can actually be ideating inside this virtual environment is when things will get really interesting. >> So the next question is to take to the next level is what's the playbook? How does someone get involved? How does someone ingratiate into a community? If I'm an artist, I want to get, and I'm proficient with technology, or maybe not, how do they get involved? Is it community driven? Is it social? You guys mentioned seeing social's a big trend here. How do people get involved? What's the track? >> Well yeah you don't just need to go to a grad school or... There's a lot of programs out there that are popping up. Almost every single major state school has like an interactive art program now. And that wasn't the case like two or three years ago. So we're seeing that that's a big shift in the culture. But again, VR is still... It's expensive and it's you know, like VR, I refer to it's in the stage of it's almost like in the neo geo phase, maybe a little before that. But it's the really expensive thing that your friend's neighbor has. Or his older brother or something. You get to play it a little bit, you're like that's great but there's no way in hell I'm going to... You know, I can't afford that or like that just doesn't really work with my lifestyle right now so it needs to incorporate itself into our everyday, our habits. And it needs to be something that... If we're all doing it then it makes sense for us to do it together not just somebody in their basement doing it by themselves. >> Yeah feel free to comment, this is a good topic. >> Oh yeah, absolutely. So what we're doing is sort of about democratization and accessibility. So for people to get into the then they're going to need a rig, they're going to need a headset and previously it's actually been quite expensive to actually take that first plunge into it. So now by democratizing and bringing price points down, it makes it more accessible. That helps content creators because there's now more of an audience that can now consume that content. And the people that can then play with the medium and consume it now have a better reason to do it. So we're working on that. We're also working on the education pieces like Key. It's actually going out there to schools and actually letting them experience VR and play with VR. Because it is a whole new different medium. We've seen film directors and filmmakers go into the VR space and things that worked in 2D film like fast pans and whatever else so the points have already been made don't really translate into VR without somebody losing their lunch. So it is going to be somebody who's coming up who hasn't got the baggage of previous skill sets inside of 2D doing it inside of VR. So we're going to see that. And in terms of the technology, everybody's wanting things to progress. That shows the level of excitement out there. And everybody wants to get into it. Everybody wants to see it go further. And I'm reminded of the mobile phone. Mobile phone, 30 years ago? Two suitcases for batteries, a large brick on the ear and a car antennae. Okay, so where we are now, if you had a time machine and you went back in time to talk to the inventor of the mobile phone, well, I'd be a lot richer because I know sports results and all, but that aside, but you go back and talk to them and you said do you know in 30 years time, everybody is going to be carrying that device? Everybody's going to be dependent on that device? They're going to get social anxiety and separation anxiety if they lose it. And they will probably laugh in your face. >> Alright so since you brought up the phone analogy, since I love that example, are we in the Blackberry moment of VR and no one yet has built the iPhone? Because the iPhone was the seminal moment for smartphones. And you see what happened there. Is VR needing that kind of break? Or is it there? >> I think we're on the cusp. Where we are at the moment with technology, we've had the headsets, which I say have been more in the consumer space, they've been designed to hit a certain price point. We had CES the other week where we've had advancements now in the resolutions of headset that are now coming out. One of the issues was well I can't see texts, I can't read texts. So from a working environment, if you're actually using tools that you would normally use on a 2D screen, you can now translate that and read that text. However, in terms of the tools that people use, why are we trying to put 2D screens into a VR headset? We've got a whole new way of interacting with data. We've got a whole new way of doing things that are going to be more intuitive than the mouse and keyboard interaction that we're used to. Why just translate that. Let's push that envelope and those are the developments that we're pushing our partners and our ISVs to really embrace. >> So it's an evoution. >> It's absolutely an evolution. >> You guys have any thoughts on that comment. That we have that inflection point, are we hitting that, will we see it soon, is it here? >> Well I think it's a very interesting symbiotic relationship between multiple factors. So you know, we hear the cost factor, we hear the technology factor, then we have the content factor. You know I saw an interesting evolution at CES we had created this virtual booth experience so that you could still come to the CES Intel booth without actually having to be there. And I met a guy in there and I was like hey where are you? He goes I've been in here like all week. (laughter) And I was like oh yeah, where do you live? He goes oh I'm in my basement in Nebraska. But he had just, this was Friday when I met him. He'd been in there all week, but in 2D mode. And he had gone out the night before and bought a headset just so he could come back and go in VR mode. And I think, yes, all these factors have to kind of line up, but I do think that content, those experiences that are going to keep people coming back for more. Like these guys literally kept coming back to our booth. Right, to see... >> Content gain. >> To see who was there. And to them at that point, it wasn't really a barrier of cost. It was like there is something that I want to consume therefore I am going to go get what I need to consume it. And I use the analogy of HDTV, right. When we kind of moved over that hump where there was enough content people didn't really care how much that television cost. >> Sports was great. Sports really highlighted HD. >> Yeah. >> But this is a good point. This is a good question to ask. Brooks, I'd love to get your thoughts. Content drives experiences, amazing experiences, but we're building the scaffolding of everything at the same time. So where are we, what's your opinion? >> So here on the Starbreeze side, we're fortunate because we have our own headset. We have the StarVR headset we've been building with Acer. 5K all of that stuff and we're upgrading it over the next year. Our focus has been, we skipped the consumer market very much. We went straight to location based and enterprise. And the reason we did that is because there's a promise of VR at a basic, I don't want to say technology stand point, but from an experience perspective, when it comes to that resolution, when it comes to that field of view, when it comes to these things people expect. Average consumers who go to a movie and they see these giant screens. They want that translated. They don't have the understanding like we do of well, LED panels are actually a pain in the ass to build and it takes a little bit and they flip at their own speeds. Time to photon is not a thing my dad will ever see in his life. But there's a reality that people have a need for that. And it is extremely expensive. It's again the reason we went straight to LBE. But for us it's about marrying the two and consistently trying to match what's happening. So when we're talking about, as I mentioned earlier the technology and how we're standing on the shoulders of giants very very quickly, someone who's doing technology is going to see what we're doing content wise and go well I can do that better technology wise. And then we're just going to keep leap frogging. And it's very similar to the phone in the same way that we're not at the final stage of the phone. Like we're at our stage of the phone and no doubt in 30 years people will laugh at us for carrying anything. The same way we laugh about the briefcases and the giant batteries in the cars we had to pull with us. So it's one of those things that's continually transitional. And VR's in an odd, amazing place. >> Well you know, it was a lot of waves that we've all seen. You mentioned the mobile phone, that's a good one to point to. It feels like the PC revolution to me because the same culture of entrepreneurs and pioneers come from a bunch of different backgrounds. So I'd like to get Brooks perspective and Winslow's perspective on this because I think there's an entrepreneurial culture out there right now that's just emerging very fast. It's not like your classic entrepreneur software developer. So in this movement, in this wave, the entrepreneur is the filmmaker, it could be the kid in the basement, could be the gamer. Those entrepreneurs are trying to find a path. >> Yeah, it's a weird mix. VR is at this odd point where not only is it the people who are wanting to be cutting edge in terms of content or technology, but also that first mover strategy from the business side of things. And so everyone wants to be those guys who are charging ahead because in reality, if you look at the financials around all of this, VR is one of those things that you don't want to finance. It's not nearly as safe as say Marvel Avengers or the next Call of Duty. >> You've got to be, you've got to hustle. >> Yeah you've got to hustle. You've got to make... >> What's your advice? >> Start doing it. That's really it. It's the same advice I used to give to game makers when people would be like well I want to learn how to make games. It's like go to YouTube, download a thing and go do it. There's literally no reason why you can't. >> Are there meetups or like the Homebrew Computer Club that spawned the Mac. >> There are, there are infinite groups of VR people who are more than happy to give you all the terrible and wonderful opinions that come with that. There's no shortage of people. There's no shortage and it's an amazingly helpful group. Because everyone wants someone else to figure out something so they can steal that and then figure out something else. >> Winslow, your advice to entrepreneurs out there that are young and/or 14 to 50, what should they do? Jump right in obviously is a good one. >> Well yeah, experiment, break things, that's really the only way to learn. I would say watch as much VR as you can because sometimes bad VR is the best VR. Because you can learn don't do that. And if you learn, if you put all that together, you can really... It's like this lexicon that you can really follow. Also, I think we... As people in tech, we kind of get obsessed with things like resolution, frame rate, and these are very important, but it's also good to remember, or at least for me, I watch some of the best experiences from storytelling when I was a kid, eight years old on a 12 inch screen that was 640 by 480. You know, like scan lines on the VHS. But for me the story still resonated and it's important to think of story first, but obviously it's a dance between the story and the technology. They kind of have to both organically work together. And if they don't, one thing in the story that doesn't work because the tech isn't supporting it, can throw you out of the experience. >> Other concern entrepreneurs might have is financing. How do I get someone to help me build it? And then doing relationships. Finding relationships that could... One plus one equals more than two, right. So how do you? >> You have to get really creative when it comes to funding right now. Unless you're doing location based, which also requires a certain amount of investment to get it up to a bar where you want to be showing it to people with all the haptic effects when it's heat, smell, vibration, stuff like that. You know, it's not cheap to develop. But as far as like working with film foundations, we're fortunate enough to be sponsored by Fledgling Fund and Chicken and Egg. But we also were able to get partnerships with people like Intel and NVidia. And also work with people who come from a traditional film background. There's not one way to successfully fund a project. There's a million. And that's why it's interesting that the technology's innovating, but also the market place is as well. >> One of the things I want to ask is as any new industry gets building, is cultures form early. DNA forms in the entrepreneurs, in the pioneers. And one of the big hottest topics in the creative world is inclusion and diversity. So what's the makeup of the culture of this new generation? Because democratization means everyone can participate, everyone's involved. What's the state of the community vis a vis diversity, inclusion, and the role of the actors in the community. >> Well I think it's important to understand that VR has a profound ability to place you in somebody else's shoes. The trick though is to make sure that those feel like they're your shoes. But I think that we're learning a lot more about story telling techniques and we're able to empower people that their voices you know were previously not heard. The tricky thing is being able to yeah, educate all different groups of people how to use the technology, but once they're enabled and empowered to do it, it's amazing what you can experience inside the headset. >> So VR can be an enabler for education, outreach, a variety of things? >> Yes, I mean the term empathy, empathy machine gets thrown around a lot. You could do a drinking game around it. For panels when people are talking about it. But it's important to know there is a truth to that. And it's, yeah the perspective shift from looking at a screen, a 16 by 9 screen where you can look away, then dissolving the screen and becoming that person. Becoming the director, the actor, the camera person, the editor. When you're in the first person perspective, there's so much more... It feels more personal and that's a really interesting angle that we're going to continue to explore. >> So you could walk in someone's shoes, literally? >> Yes, you literally can. You just have to make sure that you got a... The tracking system's proper or else you'll look like there's... It can be come a horror movie pretty quickly if your leg is behind your head. >> Lisa, your thoughts on this, I know it's important to you. >> Yeah, I mean I think it's fascinating because I've been in tech for a really long time. And seen many, many trends. I mean the first job I had at Intel I was a PC tech and as you can imagine as a female, I think there was one other tech female in the department at the time and I would get funny looks when I would show up with my bag. They were like hi can I help you? I'm like I'm not here to deliver coffee, I'm here to fix your computer, you know. So I've seen a lot of trends and it's super exciting to me to see so much diversity cross culture, cross country, I mean we're having... We had guys come in from all over the world. From even war torn, they've escaped their country just several years ago and they're coming and they're bringing all that creativity to the market. We're seeing very, very strong female contingent from the filmmaker perspective so it's this wonderful, wonderful just primordial soup of people that I think are growing their own voice and their own power. They're breaking molds as far as how you actually get content produced. Distribution is kind of crazy right now. I mean, how do you get it distributed? There's like so many different ways. But all of those things are so important to the evolutionary and biological process of this. Yes, we need to let it go and sometimes we're frustrated. We're like where's the standards? Where's the one ring to rule them all? Where there's not going to be one. And it's good for us that there's not right now. It's frustrating from a business perspective sometimes. You're like, I can't peanut butter myself around all of these places, but I think it's just a very unique time where so many people are... The technology is accessible, that means that so many creators can now bring their fresh voice to this space and it's just going to be fascinating to continue to watch. >> That's awesome. Well two more questions and I'll give you some time to think about the last one which is your perspective on Sundance, what's happening this year, your personal view of what you think's happening, what might happen during this year. But the question I have for you now is to go down the line. We'll start with Brooks here, and talk about the coolest thing that you're involved in right now. >> It actually has to be Hero. We're debuting it here at Sundance. We've been working on it and not talking about it for about nine months. And it's been very difficult. Again it's sacrosanct to the experience that you don't know literally what you're getting in to. And the emotional response has been essentially our goal, trying to find out how far can we take that. You actually being in a space, moving around, having that interactivity, doing what you would do. But it being your story and how deeply we can absolutely effect a human being. And again, watching people come out, it's one of those things, I've been doing game development, I've worked on films, I've done all kinds of stuff. And you usually get a chance when someone experiences something you've made, you walk up to them and you go so what'd you think? And that's not at all what we can do with ours. >> How has it impacted you, that reaction? >> Well, I personally suffer significant PTSD and I've had some traumas in my life. And so it's been incredibly powerful to be able to share these things with people. Share this emotion in a deeply profound, yet amazingly personal way. Which I'm amazingly fortunate to be able to be a part of it. >> Alright thanks for sharing. Coolest thing that's going on with you right now here at Sundance. >> Just the fact that I'm here at all. I mean, it's incredible right? Personally was able to be an advisor on the SPHERES project that is premiering here with Eliza McNitt. She's someone who was an Intel Science Fair winner back in high school and kind of came back to us. So just to see the evolution of an artist really from the beginning to the point where they've been able to come here to Sundance. I'm also very passionate about the work that we're doing with Sansar. I kind of consider myself one of the chief storytellers at Intel around Virtual reality and this new move into social where people are like well what's this game. I'm like, it's not a game. It's you are the game, you are the interactivity. You become the person that makes the space interesting. We're just really setting the scene for you. And there's so many... You know there's a lot of different people kind of chasing this be togetherness. But what we've been able to produce there. And just to be able to explore some of my own personal ideas has just been such a gift. Then to be working with guys like these on the panels and see what they're doing and just be in touch is really just an exciting time. >> John: Awesome. >> Probably what, other than the people on the projects, or the projects that are being shown here, we're working on our new project, which we would have loved to premiere here, but we did... Basically when you get in, you have two months to create a piece, so you have a demo and you have to finish it, so we're taking a little bit more time. This one's going to be about a year development cycle. It's called Breathe where we take you from where Giant left off, where, in Giant, the ceiling collapses on a family. They're in front of you. In this experience, we use a breathing apparatus to basically bring yourself back to life. And then you realize you're trapped under rubble and you remove the... We actually want to have physical objects on top of you that are going to be tracked. So you're moving rubble from you and you realize that you're a six year old girl. You're the survivor from Giant. And you get to witness what it's like to be a future refugee sort of in different key moments of her life that use breath. Whether it's a flirtatious moment, blowing a dandelion, seeing your own breath in snow as a drone shows you a message that your parents pre-recorded on your 18th birthday. This is all in the future, obviously, but every time you walk around an object, you actually grow 10 to 15 years older in the experience. As you get older, the world becomes smaller. And then we witness what's like for her last breath. From being six years old to being 90 years old. But it's a profound personal experience. >> John: That sounds cool, cool. Gary, coolest thing that you're involved in right now at Sundance. >> Wow. I could say it's all cool that would be a bit trite. They say if you enjoy what you do, is it really a job? And I'm lucky enough to be in that position. Because working with all these guys here and like people around the place, they're doing such great things that every day I wake up and I'm astounded of where the industry's going. In terms of what we're doing here at Sundance, then we're really starting to push those envelopes as well. I've been lucky enough to be involved with Dunkirk and Spider-Man: Homecoming. Like last year, so some great pieces there. And moving out into this year, we've got some other developments which I can't mention at this point, but we're showing things like AR and VR mashup. So we haven't talked much about augmented reality here. It's an evolutionary, it's not a replacement. Both can be used and we've started to really start to blend those two technologies now. So you can still see the outside world. Just touching on the commercial side, and health care's very big for me. That's where I think the really cool stuff is happening. Entertainment is great and that's really pushing the envelope and allowing us to then take it for the good of human kind. >> It happens everywhere, it's not just entertainment. >> Yeah absolutely. You start looking at MRI scans inside of VR or AR. Talking a patient through it so they can actually see exactly what you're talking about. You're now no longer pointing at flat things on a screen. You're now actually taking them through it. If you're using AR, you can actually judge the responses of the patient as for how they're reacting to the news. And effectively, inside of the VR, and what's really cool for me is seeing people's reaction to that content and to the entertainment content. >> That's awesome. Okay final question. This is a little bit of self serving because I'd like you to help me do my job at SiliconANGLE. If you were a reporter and you were going to report the most important stories happening this year at Sundance or really kind of what's really happening versus what's kind of being billed to be happening here. What's the story? What is the story this year at Sundance 2018 in your personal perspective? We'll go down the line and share your observations. >> Well, mine here, I'm a Sundance newbie. This is my first year of being here. I'm absolutely astounded by the community spirit that's around. I go to a lot of technical trade shows and technical presentations. People coming here with a willingness to learn. Wanting to learn from other people. It's been touched on already. It's the pool of knowledge that's available inside of Sundance that everybody that comes here can actually tap into to create better content, to learn not what to do as well as learn what to do. And I just think that's brilliant because in that community spirit, that's really going to help enable this industry quickly. >> John: Winslow, you've got some experience, what's your thoughts? >> Obviously, this Intel house, just a little plug for you Lisa. (laughter) Tech Lounge. We got that? Okay good. I mean, yeah, the people that's here. Every year we come here and see where the high water mark is. All these people are... Some of these teams first started with two people and then they grew to six and then by the end of it, there's 100 people working around the clock, pulling all-nighters to be able to give the latest and greatest of what's available with these current tools. So it's amazing because the work itself doesn't really mean anything until people get to experience it. So that's nice that they make a big splash. The people here are very attentive to it. It's a very nice audience and this will continue the momentum for future festivals throughout the year, but also will excite people that have never done VR before. People who have never been to Sundance before. We're seeing that there's a lot of new people. And that will continue to influence many years to come. >> John: So you think VR is the top story here being told? >> As far as like just to generalize, I would say last year kind of the big VR year. This is kind of the big AR year. Next year's going to be the AI year. Then after that we're going to start putting them all together. >> John: Great, great feedback. >> I think it's just exciting for Intel just to be back here. I think Intel hasn't been here in quite some time. Dell coming in here probably one of the breakout years for us to come back and really talk to creators what we're doing from the Intel Studios all the way through to the stuff you can take home and do at home. And I think coming in, we're coming back here with a purpose really, not just to be here to be seen. We're really here with real things and want to have real conversations on how tech can enable what people are doing. Not just from a brand perspective, but from a real hands on point of view. >> John: Yeah, some great demos too, phenomenal tech. >> Really just, yeah everything from the AI stuff we have to the social to the great new pieces that have been submitted here like we mentioned with SPHERES. So I think, yeah, it doesn't feel gratuitous to me you know that Dell or Intel is here this year. We've really come with a purpose. >> You guys are moving the needle, it's really awesome. We need more horsepower. >> Brooks, your thoughts on Sundance this year. Observation, the vibe, what would you tell your friend back home when you get back? >> If, for me, I think it's almost the non-story. It's like the opposite of a story. It's just the deep integration of VR into the normal Sundance flow I think has been interesting. Some people have been here for a few years. And back in the day when it was one or two, it was a lot of oh, you do VR? What's that then? Whereas now, you see a lot more people who are crossing over. Going to see documentaries, then they come to see a VR piece and it's just a part of the normal flow. And the team at New Frontier has done exceptional work to kind of make sure that they have this ridiculous high level of broad content for all kinds of people. All kinds of experiences, all high end things. But it's not that VR's here. Oh good, we have a VR section. It's a lot more of an integrated set up. And it's been really encouraging to see. >> Well you guys have been great. It's been very inspirational. Great information. You guys are reimagining the future and building it at the same time so entrepreneurially and also with content and technology. So thanks so much for sharing on this panel The New Creative. This is SiliconANGLE's coverage of Sundance 2018 here at the Intel Tech Lounge at the Sundance Film Festival. I'm John Furrier thanks for watching. (upbeat music)