>>from >>Around the globe, it's the cube with digital coverage of IBM think 2021 brought to you by IBM. >>Welcome back to IBM Think 2021 we're gonna dig into the intersection of finance and business strategy. My name is Dave Volonte and you're watching the cubes continuous coverage of IBM thinking with me is brian Hoffman is the chief operating officer of IBM Global financing, brian, thanks for coming on the cube today. >>Good morning, Great to be here. >>Hey, good morning. So I think we've heard a lot about the impact of hybrid cloud ai digital transformation and I wonder as a finance person in a former CFO, what do you see? And how do you think about some of the key considerations and financials and strategies that are supporting these major projects? Right? We got to come to the CFO and say, hey, we want to spend some money and here's the benefit, here is the cost. How can see IOS and their teams work with CFOs to try to really accelerate that digital transformation. >>Great question. And actually that question, I think I might have answered it a little bit differently, like two years ago, a year ago before the pandemic, I think it's actually changed a little bit with pandemic in my experience is the CFO people would come into me for projects and there's three ways you can justify it, but you can justify short term immediate, quick payback kind of hitters, you can justify it with, you know, improving our efficiency or effectiveness, um you know, reducing costs in the long run, making the client experience better or more from a strategic point of view, um you know, growing revenue getting to new clients, improving margins right? And so the the hybrid cloud transformation journey really still addresses those three things and when we come in, a lot of people focus like I said, on that third strategic point, but but all three of those come into play, and what's really interesting now is is as I'm dealing with it, I'm talking to other Cfos. The pandemic is really, if you will throw in a wrinkle in here, right? So the clients that I'm talking to, the IBM clients, they have to operate their business very differently and and their business models, some of them are changing clearly. Their clients, their business models are changing their operating differently as well. Um So, so our clients have to react to that and Hybrid Cloud and that that that type of of a structure really can support that. So there's really an emphasis here now to act with much more speed on this journey to get moving on it to get there because you have to make these changes and doing those two things in concert really has a ton of business value. >>Yeah I mean the cfos that I've talked to in the C. I. O. S. It's really kind of industry dependent, right? If you're in airlines or hospitality was like uh we got to cut costs. A lot of organizations said okay we're gonna support remote workers put in V. D. I. Or deal with endpoint security or whatever it was. But we're actually gonna double down on our digital transformation. This is we're gonna lean into an opportunity for us to come out stronger. How did you guys approach it in terms of your own internal digital >>transformation? Yeah. We we we were working on our digital transformation uh a little bit before the pandemic and it kind of followed those those three uh those three items when they when they first started implementing it, they came in and said hey if we can if we can move to a cloud platform, our infrastructure savings will be pretty significant. You know the I. T. Infrastructure savings will be 30 to 40%. So you know, quick payback CFO types love that. So you know, we went forward with that. Um but then quickly we saw the real benefits of moving to a hybrid cloud strategy. So just as an example as we were making some of these changes, we found a workflow tool in one of our markets in europe, that was a great tool and uh if we wanted to implement that across the business um in the old days, You know, we're in 40 countries, we've got 2500 employees, three lines of business. It would have been very complex because our operating structure is is very robust, very complex. Um Probably have taken a year, two years to do that. But since we are now on a cloud platform we got that rolled out that workflow tool rolled out across our business in months, Saving 20-30 of of workload. Being much more um efficiently getting to our clients and reacting quickly to them. And in fact that tool got adopted across IBM because that cloud platform enabled that to happen. And then the great thing which I didn't even realize at the time but now thinking more strategically um are my I. T. Resource earlier was running at about 50 50 50 people working on maintenance. The kind of things with 50 on development as we've now transition to this cloud. My I. T. Resources now 70 plus percent dedicated to new development. So now we can go attack new things that really provide customer value in the pandemic. You know the first thing to look at is can we get into more um you know electronic contracts, E signatures, things that would provide value to customers anyway. But in the pandemic is like really a significant, you know differentiator for us. So all those things were enabled by that journey that we've been taking, >>interesting. I mean most of the CF I uh in fact every CFO I know of a public company took advantage of cheap debt and improving their balance sheets. And liquidity is not the problem today, especially in the tech industry at the same time. You know I'm interested in how companies are using financing. They don't want to necessarily build out data centers but they do want to fund their digital transformation. So what are you seeing in terms of how your customers are using financing? You know, what's the conversation like? What advice are you giving? >>Yeah. So um you know, it depends a little bit on the type of customer, like you said, you know, we we deal with a lot of the biggest, strongest customers in the world. And, and as we deal with them, financing really helps the return on their investment, right, aligning the payments of those cash flows for when they're getting the benefits. Uh And and we see a real good value in improving the return on those investments in helping, you know, if it's something that's going to go to the board that really makes a difference to them. Uh So, you know, that that's always been a value proposition. It continues to be. Um The other thing that's helping now, like you said, is even in this environment, people want to accelerate this transition. Um but it's a, it's a, it's a big time of uncertainty. So, you know, some of the smaller clients, some of the more uh you know, the industries that are a little more cash constrained airlines, et cetera, you know, they're looking for the the immediate cash flow benefits. Um But many of the cfos are saying, hey, listen, you know, I can I want to go as fast as I can help me put together a structure that lets me, you know, get this in place as quick as possible, but not below my budget is not make me take too much risk in this time of uncertainty, but keeps me moving and I think that's where financing really comes in as well. Um And we're kind of talking much more about that value proposition than just if you will be improved ri proposition that we've had all along. >>I want to talk a little bit more about IBM global financing. I mean, people, a lot of times people misunderstand it. You know when you look at I. B. M. S. Debt, you gotta you gotta take out the piece that IBM global financing because that's a significant portion and that's sort of self self fulfilling. But what do people need to know about IBM global financing, >>We actually run three different businesses and we've been transforming our strategy over time. So you know right now with with IBM being all in on hybrid, we are very focused on helping IBM and IBM clients on this digital journey on IBM growing their revenue. Um you know, we we in the past have been more of if you're really full service. It finance are doing a lot more than just IBM but we are really focused now on on helping IBM. So I think the best thing for for IBM clients to know is as you're talking to IBM about the total solution, the total value profit IBM brings that financing, that cash flow solution should be embedded in what they're looking at and can provide a lot of value. Um You know, the second thing I think most people know is we provide financing for IBM s channel, so you know, distributors, resellers etcetera, if you're an IBM distributor or reseller, you know about us, because just about 100% of IBM partners use us to provide that working capital financing, uh you know, we have a state of the art platforms were just so integrated with them. Again, I don't have to I don't have to do a sales pitch on that because they don't know us. Um and the third one just because people might not realize this is, we do haven't we call it an asset recovery business, um it's a pretty small business, you know, it's bringing back equipment that comes off lease, so that uh is used by IBM internally. Um and while, you know, it's not, it's not as well known, I'm pretty proud of it because it really does help with the focus that the world that IBM has on sustainability and reuse and um and making sure that, you know, we're treating the planet fairly here, so that that's a small but powerful piece of our business well, >>You're quite broader than leasing mainframes in the 80s, >>that's for sure. >>Talking more about give, you can double click on that sort of hybrid cloud and obviously machine intelligence is a big piece of those digital transformation. So, so how specifically are you, are you helping clients really take advantage of things like hybrid cloud? >>So yeah, so um what we have typically had been doing and I can give you a couple different examples if you will, you know, for larger clients. What we tend to be doing is helping them like I said, accelerate their business. So um, you know, they're looking to modernize their applications but they still have a big infrastructure in place and so they'll run into uh you know, budget constraints and and you know, cash is still be careful to managed. So for them we are much more typically focused on, you know, if you will project based financing that allows those cash flows to line up with the savings. Again, those are tend to be bigger projects that often go to boards that return benefit is very important. Ah a little bit different value proposition for more mid market customers. So, you know, as I was kind of just looking recently, we have a couple of different customers like form engineering um or or Novi still there to smaller uh compared to some of the other customers we use uh they are again much more focused on how do I, how do I conserve and best use my cash immediately? But they want to get this, they want to get this transformation going. So you know we provide flexible payment plans to them so they can go at the rate and pace that they need to, they can align up those cash deals with their budgets for their business cycles etcetera. So again, where smaller customers where timing of the cash flow in their business cycle is very important. We provide that benefit as well. >>You know, I wonder if I could ask you. So you remember of course the early days of public cloud, one of the first tail winds for public cloud was the pen was not the pandemic, the for the financial crisis of 2007. And a lot of CFO said, Okay let's shift to uh to an apex model. And now you can always provide financial solutions to customers. But it seems like today when I talk to clients, it's it's much more integrated, it's not just the public cloud, you can do that for on premises and again you always could do that. But it seems like there's much more simpatico uh in the way in which you provide that that that solution is that >>fair? Absolutely. And this might be a little to finance geeky, I don't know. But if you go back, well if you go back to the financial crisis and all that and at that time um a lot of people were looking to financing for you call that ah please. But you know if if I was talking about off balance sheet transactions right? Um and and you know between regulation etcetera etcetera, that that off balance sheet thing. First of all, people are seeing through it that much more clearly. But second, you know the the uh financial disclosure say you kind of have to show that stuff so that that if you will, window dressing benefit has gone away. So now which is great for me, we really get to talk about what's the real benefit, what is the, you know, what is the real benefit of? You know, you want to make sure that you have known timed expenditures. You know that if your business grows that your your expenses can grow evenly with those with that business growth, you don't have to take big chunky things and so you know uh financing under the covers of an integrated solution and IBM has a lot of those integrated solutions allows businesses to have that, you know, known timing known quantities. Most of the benefits that people were looking for from that affects cloud model. Um without, you know, some of the problems that you have, when you try to have to go straight to a public cloud for very, you know, big sensitive businesses, confidential confidential data etcetera. >>Thanks for that. So, okay, we're basically out of time. But I wonder if you could give us the bumper sticker and key takeaways, maybe you could summarize for our audience. >>Yeah. For those that noah global financing or dealing with IBM, my view would be in the past we might have been a little more, you know, out there with our own with our own banner etcetera. In the future. I think that you should expect to see us very well integrated into anything you're doing. I think our value proper is clear and compelling and and and will be included uh in these hybrid con transformations to the benefit of our clients. So that's that's our objective and we're well on our way there. >>Great. Anywhere, anywhere I'm gonna go for more, more familiar, obviously IBM dot com. You got some resources there. But there is >>there any Absolutely dot com? There's there's a thank you. Just probably a slash financing. But yeah, there's >>were >>loaded with information of people. >>Excellent brian thanks so much for coming to the cube. Really great to have you today. >>I appreciate the time. >>My pleasure. Thank you for watching everybody's day. Volonte for the Cuban. Our coverage of IBM think 2021, the virtual edition right back.

>> Announcer: From around the globe it's theCUBE with digital coverage of Commvault Future Ready 2020 brought to you by Commvault. >> Hi and welcome to theCUBE's coverage of Commvault Future Ready. I'm Stu Miniman and I'm joined by David Vellante here. Of course, we just had the keynote for Commvault Future Ready, Sanjay Mirchandani, CEO. Dave, he's been there a little bit over a year. We've been watching the transformation of Commvault as they are trying to go much deeper in the cloud. Of course, the space, data protection overall, backup and recovery, been a super hot one. Especially, if you talk about everybody accelerating what they're doing with the cloud, Dave, from an end user standpoint, as well as for Commvault. So why don't we start with the company first, as I said, the move to subscription, the move to cloud, a lot of change needed, and that's one of the reasons they brought Sanjay into the company. Of course, he'd been at Puppet before that, he was the CIO of EMC before that. So Dave, tell us your thoughts lately on Commvault. >> Okay, so Commvault, obviously Stu, has been around for a long, long time, and it's kind of a diversified player in the data protection space. I've always felt like they've had a more diversified sort of vision and portfolio. Sanjay took over, what was it February last year, right? So he kind of came in and inherited a company in transition. And transitioning from what has largely been a legacy sort of on-prem, perpetual software licensed business to now one that's transferring into a subscription based model, obviously a large maintenance base. I think about 60% of their revenues comes from services, and most of that is maintenance, okay? So he's inherited that, and then they're going into a subscription model. So that's going to hit the income statement, and then boom COVID hits. So Sanjay is getting it all from all sides, but Commvault is a 670, roughly, million dollar company on a trailing 12 month basis. And the market cap's in the 1.7, 1.8 range, so they trade at about 2.7 times revenue. So that's much better than a hardware company, but it should be better than that as a software company. So the challenge that he has is, okay, how do we get the company growing again? How do we transition to that subscription based model? The good news on Commvault is their balance sheet is tremendous. I mean, they have no debt, no debt. I mean, several hundred million dollars in cash, over 300 million and zero debt, which kind of interesting to me, Stu. Because many companies during this COVID pandemic have tapped the credit markets, Commvault has chosen not to. Maybe they should right now with such low interest rates, and maybe that can help get the growth engine going. But I think they're very conservative in that standpoint and obviously very proud of their balance sheet, but with the likes of Cohesity and Rubrik, and I know we're going to talk about that pouring money into the market, trying to attack them, and we'll talk more about their position relative to those guys, you might like to see 'em raise a little bit of money or take on some debt and really go after some of those opportunities that you referred to upfront, it is a hot market. >> Yeah, well, Dave, you talk about some of the newer entrants raised just insane amounts of money when you talk about that space. Not only Cohesity and Rubrik, but also talked about Veem. Of course, we've watched Veem go from a change in ownership and how much money they have. And from a revenue standpoint, Veem actually might be bigger than Commvault at this point, I believe, right? >> Yeah, I think so. I mean, they're billion dollar bookings, they say. I mean, I believe it, but they're a privately held company. Commvault, we can tell actually what their numbers are. Guaranteed Cohesity and Rubrik are losing money. So their cost of acquiring a customer is huge. Commvault is, let's face it, it's servicing its install base, and it's mining that. And that's why it's, it's cashflow positive. I mean, it's a very healthy company financially. The challenge that, again, Sanjay has is how do you get growth? They're a company, as I said earlier, in transition. Let me share with you, if I may, some data from our friends at ETR. What we're showing here is the fundamental methodology of ETR, which is that net score, Stu. We talk about that all the time, ETR is, as I say, our data partner, Enterprise Technology Research. Every quarter, they go out and they say, "Based for each company and their various segments, "are you adopting new?" That's the lime green, that's the 2%. "Are you increasing spending?" That's the 30%, and this is from the July survey so this is relative to the first half. "Are you flat?" You can see that fat middle 56%, and then you can see decrease is 7% and that's in the pink, and then 5% replacing. So good news here is more people are spending more, more customers spending more, than are spending less. Net score's the red subtracted from the green, so it comes out at roughly 20%, which is that's certainly not terrible. It's a legacy company that's been around a long time. So you would see a company that's a newbie, that's hot. We'd always talked about UI path automation anywhere, Snowflake, they're in the 70% range, but they're much, much smaller companies but they're growing very, very rapidly. So this is respectable and very common for a company that has been around as long as Commvault. >> Yeah, thanks so much for sharing that data, Dave. Of course, as you said, huge customer base, they've been around for awhile. I remember when we first did Commvault GO two years ago, very excited, very engaged user base. There was a good strategy discussion and an understanding for what Commvault needed to do to get to the cloud, but there was an understanding that they couldn't keep doing with the same team what had brought them to the place before. You always say, Dave, what got you to where you were isn't going to get you to where you need to go. Talk a little bit about the keynote. Last year at Commvault there were a couple of big pieces. Number one, is they really had their first SaaS offering with Metallic. And what the momentum has been on Metallic is, first of all, they made a big partnership announcement with Microsoft ahead of this event. Multi-year, Metallic has a few different solutions. One of them, of course, is to work on Office 365, so when we go to SaaS and we go to the cloud, we understand that data protection isn't something that just comes inherently. Some people thought, "Oh hey, I did it "in my own data center, but once I go to the cloud, well, "I'm sure it just takes care of things "like data protection and security." The answer is I still need to think about it, and the ecosystem has helped filling that gap. So Metallic was the first step and what we saw, Dave, really looks like a holistic refresh of the product line. Commvault back in recovery, Commvault disaster recovery, Commvault complete data protection, all aligning themselves to be more to what you were talking about, going to that full ratable model, and the other piece was Hedvig. So Hedvig software company, helping them to be in more cloud-native environments. And they launched a Hedvig X, so it's the full integration of that solution. Less than a year from the acquisition to fully integrating it and making it an offering that's ready for what they're doing. >> Is that they're cloud play? Actually Hedvig is sort of in that space, right? As with cloud you think subscription, but also Commvault is basically putting its stack in the cloud, right? And taking advantage of cloud services, right? >> Yeah, absolutely, Dave. Metallic, specifically is built for the cloud. >> So let's talk a little bit about cloud, I have some other data here. And the cloud, if you pull up that next slide, the cloud has been eating away at on-prem vendors. We know it's been growing at 2000, 3000 basis points higher than the on-prem business. But what this slide shows is that same net score methodology that we talked about before, but it's filtering, you can see in the left hand side here, it's filtering on AWS, Google and Microsoft. So there's 585, AWS, Google and Microsoft customers in the ETR dataset. There's like about 1200 in the overall survey this quarter. And this shows the over time the net score of Commvault in those accounts, so you can see, as I was saying, go back to 2018, you can see prior to Sanjay taking over this thing was dipping and dipping, losing momentum coming into kind of the April survey and then July survey of 2019, and it's kind of bouncing off the bottom now. So it seems like they're making some progress there, and what we want to see is that momentum continue to grow. Again, net score is a measure of spending velocity. So what you want to see is as that transition occurs more sort of a net score increases over each quarter. >> Yeah, well, Dave as you mentioned earlier, there absolutely are some headwinds potentially there, but it looks like Sanjay, at least, has stopped some of the bleeding on this and, stated goal of course, to return to growth. And so we would want to see that go from just up one or 2% to be able to track with the cloud. Probably a good time for us to talk a little bit about the competition, Dave, because if you talk just in cloud markets, are you tracking along with the cloud? So the hyperscales themselves, of course, growing at very huge percent. A company that's been around as long as Veritas isn't necessarily going to be doing 35 to 70% growth as you would see from AWS or Azure. But what do you see out there for some of the competition in general, who were some of the key players that we need to look at? >> Yeah, so I mean, think about the backup guys. I mean, the traditional space, you've mentioned Veritas. Veritas, by the way, in the ETR survey data is not playing well, they're in the red. They've been losing share, the share donors, as they say, you've got some big players, Dell EMC, obviously, kind of living off the data domain base. Remember Dell EMC fell behind, prior to the Dell acquisition, they weren't investing heavily in the data protection business. They were kind of living milking off that data domain base. Back when you were there, they had the networker and they had Avamar, and so there was a bifurcated thing. Frank Slootman came and he tried to clean some of that up, but then he was onto his next big thing, of course, it was ServiceNow. And so, you know, Dell is a big footprint, obviously, but they're very hardware centric, as you know, so they have a big hardware agenda. IBM with Spectrum Protect, Veem was hurting them. They did the deal with Catalogic to kind of stop the bleeding, he kind of did. Again, big install base, and then you got the sort of newcomers. Veem is not really a newcomer anymore. I think they've been around for 15 years, big acquisition. Decent momentum in the market, especially started the Microsoft base, and they're kind of everywhere, so you see them. And of course you see Cohesity and Rubrik spend a lot of money, as you said. And it's interesting, let me pull up this next data point. In the ETR data set this past quarter you saw Cohesity actually overtake Rubrik. Rubrik was very, very strong earlier on. They're kind of neck and neck in this chart, what this chart shows is not net score, it's now market share. Now market shares, not real market shares, Stu. I have to be cautious here because it's not like IDC tracks market share. What it is is pervasiveness in the dataset. So in other words, within this segment, the number of mentions of the vendor divided by the total mentions in the segment, okay? So it's really pervasiveness or presence in the data set. And what this shows is you can see we've got 65 Commvault customers in the survey, and it shows the impact of Veem, Rubrik and Cohesity in the Commvault base. And you can see up through, let's see, that's the recent surveys is you see the increases up to the increasing red line is Veem, and then you got the Rubrik line and then the Cohesity line, but they're all recently, since the October 19th survey, down, trending down. So that says to me that Commvault is holding serve within its own base and actually doing better as these guys are declining in this base. You can see the comment that ETR made, "Rubrik, Cohesity and Veeam are all seeing "market share declines in shared accounts with Commvault," so that's good news. I think this is very important, Stu, and here's why. Is Commvault has got to hunker down and maintain those customers. It does not want to be a share donor much in the same way that Veritas has been. So that's a quick scan of the competitive marketplace. And again, from my standpoint, I'd like to see Sanjay maybe get a little bit more aggressive. I liked the acquisitions. Hedvig, it's great, deal with actually some more subscription, but I'd like to see them go hard after a cloud native. I have to dig into that, maybe you can comment, but really cloud native and multicloud across clouds being able to have that same experience on-prem as I do in the clouds at very high performance, very low latency. >> Yeah. Well, Dave, first of all, one thing, talk about the competitive win rate. That's something you always look at is how are you doing against the competitors? Not only did Sanjay come in, but you saw changes along how the channel chief, I believe, and the salespeople. So definitely reinvigorating that piece of it, as well as, Dave we saw, in the keynote. So the portfolio is updated, an aggressive engineering investment, some through acquisition, some through changing the code and moving in these environments, leveraging partnerships, great to see the Microsoft one, love to see something along the lines of Google. We understand Amazon, you play in that ecosystem, it is challenging to necessarily partner deeply with AWS, unless you're one of a few strong players in the marketplace, but working closer in cloud. And Dave, one thing I'd point out, last year, one of the things that really impressed me at Commvault GO is they did have some good developer actions. So when you talk about cloud native, of course, enabling developers is one of the key things. Like many companies out there, inside the company you've got developers, so how are you unleashing that? So Hedvig, a good acquisition along those lines, but you know, in the middle of the show floor, they had people that you set up with whiteboards and just go at it. So, you know, reminds me of days past when you used to have these engineering-driven shows where you could go in and really understand that. So helping to developers, enable them, backup and recovery just needs to tie into all my DevOps and IT Ops and all my other environments to make things just more automated because also you talk cloud native, Dave, automation has to be a big piece of it. And to your point, we actually have really good guests coming on the program. Not only will we have Sanjay, relatively fresh off the keynote, I've got a panel with the product people to really dig in and understand that. We'll poke and prod at some of the cloud native pieces and understand where that's going, got their head of strategy also on the program. >> Yes, I think you're making a great point about automation. Just speaking about M&A for a moment, I like M&A, I like growth through M&A, I'm comfortable with that as long as it fits into the portfolio. Your point about automation, I see opportunities there for M&A, things like visibility, observability, obviously hot analytics, automated operations, IT Ops, anything that sort of removes labor and complexity and gives me visibility across clouds. That I think is something that could be interesting, again, as long as it fits into the portfolio. I'll say this, I mean, Sanjay was at EMC and knows M&A because I've no doubt they were bringing all their M&A candidates to Sanjay and saying, "Okay, what do you think of this tech, do you use it?" Probably kick the tires a little bit, so he, I'm sure, was a part of those. I'm sure he saw the good, the bad, and the ugly. You were there, EMC was pretty good at acquisitions, but then it got a little out of control. >> And Dave, talk automation, Sanjay came from Puppet. Puppet was one of the early companies along helping people move along from those manual tasks to how can we automate those? So, absolutely, Sanjay now a little over a year in there, starting to see from the product standpoint, and expect to see some of the trailing results as to how that moves forward. >> And then again, blending that, if it's a tuck in or whatever, maybe there's some big chess move out there. I would just suspect given Commvault's conservative nature you wouldn't see that. Although, they could do it. I mean, at their revenue level, their balance sheet would allow them to raise some debt, if they wanted to do that now would be the time to do it. But it's interesting, everybody's doing it and they're not. So I kind of liked the contrarian play. Given the opportunity in the market, given the TAM expansion through, beyond backup into data management, and it's a cloud and multicloud, I do think there's maybe an opportunity for them to be a little bit more aggressive. >> All right, well, Dave, thanks so much for helping us dig in and kick off our coverage. >> You're welcome, Stu. >> All right, stay with us. We have a bunch of interviews here for Commvault Future Ready. I'm Stu Miniman, and thank you for watching theCUBE. (gentle music)

(upbeat electronic music) >> Narrator: Live from Washington, D.C., it's theCUBE. Covering .conf2017. Brought to you by Splunk. >> Welcome back to the nation's capital, everybody. This is theCUBE, the leader in live tech coverage, and we're here at .conf2017. Splunk's customer event. This is the seventh year that we're covering .conf with theCUBE here in the nation's capital, in the district. I'm Dave Vellante with George Gilbert. For the wrap of day one, we'll be here for two days. George, good day overall. At Splunk, the Splunk ecosystem continues to grow. Splunk evolves as a company. We're talking about a company. We didn't really have time this morning to run this down, but it's about a 1.2 billion dollar company, growing at about 30% a year. It's got a 10 billion dollar market cap, thanks in some part to the Symantec CEO, who'd found that, hey, Splunk might be a good acquisition target. And the stock shot up there for a little bit. Fifteen thousand customers. They've got a billion dollars in cash. Zero debt. So, nice balance sheet. Good growth. Small, but meaningful positive free-cash flow. So, from a financial perspective, this Splunk's looking pretty good right now. New CEO. They had some bumps in the road in the past. Some kind of, you know, guidance issues. But all seems to be pretty good right now. From your financial analyst, put your financial analyst hat on for a second. How's the company look to you? >> I actually think the numbers look better than the, sort of, high level optics, because it's mostly subscription revenue. And, so, you're rather than get, say, one hundred dollars up front from a perpetual license, they're getting, say, 20 to 25 dollars over a period of, you know, x-many years. So that actually depresses your operating margins. >> Dave: Sure >> And so their revenue impact, and their profitability, is better than it looks. >> Dave: Am I mistaken, I thought the vast majority of their revenue was still perpetual license, right? >> George: I think they've been converting to where you pay on the throughput. How much data you ingest per day. And I think that that's, you don't pay for it all up front. >> So they're migrating to a rateable model. >> George: Yeah. >> Which is, often times, crushes companies, but they seem to be managing through that. So, anyway, that's one thing that I wanted to talk about a little bit. Some of the themes that you and I talked about this morning. There were six that you and I kind of laid out. The expansion of the total available market. Really, from a monitoring, log data, into more of an application platform. Part of that is the shift from sim, from a security standpoint, into more analytic oriented >> George: Yeah. >> activities. >> The second one was the whole cloud and hybrid cloud play. Another theme we looked at was admin and dev complexity, and Splunk's recipe for simplifying that. Machine learning. Where does that fit in? Obviously, with some of their ITOM stuff they're trying to be more proactive and anticipatory. Breadth or depth. Meaning, do they go deep within sort of an application silo. Or use case. Or do they sort of more broadly based platform. And then, the last one, number six, is sort of IoT at edge processing. George, that's not something that we were able to spend much time on this morning, or any time. So, I'd like to start there. Everyone talks about IoT. We all know that, at least in concept, all this data is going to be generated. A lot of it is stateless. We talked about that on the wikibon research meeting a couple weeks ago. With serverless. Question. Where does Splunk fit in IoT. If the strategy is to, sort of, send it all back to the cloud, is that a viable approach? And is that their strategy? >> It's not their strategy, it's what their architecture allows today. But they know that doesn't work because in a world of sort of, industrial assets, and, sort of, consumer devices, you're producing so many more devices per year and so many more data elements per device, per time period, that the amount of data is exploding, exponentially. You cannot, for latency and bandwidth reasons, send that all to the cloud, to get an answer and then send it back. So, part of what's happening, and part of what Splunk is building, is the ability to capture that data. Perform low latency analytics, drive an answer to a local device, and then, what they do is, what other IoT platforms do, send up the interesting data. The stuff that doesn't fit. The stuff that you want to make sense out of, where you have to rethink your model. Your predictive model. And then that sort of research and refinement happens in the cloud. And when you think you have a good new model, you push it back out to the edge. This is, again, all theoretical. They haven't talked about it yet other than directionally. But, it's worth saying, as our distinguished CTO reminds us, that something David Floyer, 95% perhaps of the data and analytics, will happen, really the data processing will happen at the edge. More interesting, though, is the division of labor up in the cloud. It's not just retraining a model but we'll have very rich simulations. So, rather than just saying, training a self driving car to, you know, in the snow, to avoid sunlight that obscures it's view of the hazards in the road, you actually might have a simulation where you go through a whole bunch of different essentially, edge conditions >> Dave: Mmm-hmm. >> So the models get very, very rich. And then, those get pushed down to the edge for local processing. >> David: End-end learning is iterative >> George: Yes, yes. >> And that continues >> George: Yes. >> And, OK, so that's cool. That sort of leads to the discussion of cloud and hybrid cloud. We heard even from AWS that much of the processing and analysis can occur on-prem and their model. It's not something that just has to get done in the AWS cloud. Interesting to hear AWS acknowledge that. Whereas, five, six years ago, their dogma was everything goes into the cloud. So they're learning and evolving along with their partners. But what about Splunk's cloud play. Years ago, they announced, you know, cloud offering. We talked earlier much more of their revenue coming from routable models. I think 50% of their new business is cloud only. >> Mmm-hmm. >> Which makes sense. A lot of data analysis is going on in the cloud. What's your sense of their cloud strategy? Is it working? Are you sanguine toward their approach? >> So, we've had, since the dawn of the Pleistocene era in computing we've had multiple platforms. And there has always been a desire to have a common development and runtime environment across different platforms. So that developers are not locked in, or so that they can have a common platform for building apps across platforms >> David: Mmm-hmm. >> And for running them. The same, so like that you had, part of Cisco's success and Oracle's success was that you had the same admin experience no matter what you were running on. >> Dave: So, Linux, obviously. >> Yes >> Dave: Addressed what UNIX never could. >> Yes, yes >> Was the promise of UNIX. Obviously some of Microsoft's ascendancy was given that, you know, binary compatibility with Windows. >> George: Yes. >> OK, so, will we achieve that with cloud. It looks like we're further away from that than ever. >> George: There's choices here. Where, with Splunk, they will have this self contained environment that can run on many platforms. They're run on-prem. They'll have some subset that runs on the edge. They'll have something that runs compatably on Azure and Amazon and Google. But, once they're on the cloud they're these really powerful centrifugal forces that are pulling apart the compatibility of that singular platform. Because you'll have very specialized services. For instance, if you're doing IoT with Amazon, you have the kinesis firehose service, that's pumping data into Splunk or into S3 where other services might be operating on it. Whereas, with Azure you might have different edge services pumping data into could be Splunk, could be Splunk plus other services. For instance, Splunk doesn't have really strong scale-out SQL database. Where you might want to do some advanced analytics as part of your predictions. >> Dave: OK, so I could leverage DynamoDB as an example, or something like that. >> Yes. Yeah. >> Dave: OK. >> Or Redshift on Amazon. Or snowflake as cross platform. That sort of thing. >> Dave: OK, good. Are you here? You're here tomorrow? Yes? >> Yeah. >> At least in the morning? >> Yeah >> OK, homework assignment tonight. Were you participating in the analyst event today? >> Yeah >> OK, so you've got some other inside >> Yeah >> So bring all the NDA stuff. Tonight, like I say, homework assignment, try to distill that down. Would love to have you back if you have the time at the open tomorrow. >> If I have the time. Dave, I flew across the country to sit next to you. >> That's awesome. >> Ha ha ha. >> Great. Alright. Good. So boil it down for us. Tomorrow, why don't you come on and take us through what you learned yesterday Maybe some of the product announcements. And give us your the George Gilbert, kind of, wikibon view of the future for Splunk and this industry, OK? >> OK >> Alright, great. Thank you George for helping me wrap. That is a wrap of day one today. This is theCUBE. We're live all day tomorrow. Watch the replays at siliconangle.tv. Check out siliconangle.com for all the news. Check out wikibon.com for all the research. And go to Twitter. The hashtag of this event is #splunkconf17 and also checkout hashtag #cubegems and you'll see the snippits of today's show. This is theCUBE. The leader in live tech coverage. We're out day one. From the District. See you tomorrow. (upbeat electronic music)

>> Announcer: LIVE from San Francisco, it's theCUBE, covering Pure Accelerate 2017. Brought to you by Pure Storage. >> Welcome back to San Francisco everybody, this is Dave Vellante with David Floyer, and this is theCUBE, the leader in live tech coverage, we go out to the events, we Extract the Signal from the Noise, this is Pure Accelerate 2017. This is the second year of Pure Accelerate. Last year was a little north of here at, right outside AT&T Park. Pure, it's pretty funny, Pure chose this venue, it's like this old, rusted out, steel warehouse, where they used to make battleships, and they're going to tear this down after the show, so of course the metaphor is spinning rust, old legacy systems that Pure is essentially replacing, this is like a swan song, goodbye to the old days, welcome in the new. So very clever marketing by Pure. I mean they did a great job setting up this rusty old building-- >> It's bad. Nice, it's a nice building. >> Hopefully it doesn't fall down on our heads and, so, but let's get to the event. The messaging was very strong here. I mean, they pull no punches. >> You know, legacy, slow, expensive, not agile, we're fast and simple, come with us. Of course the narrative from the big guys is, "Oh Pure, they're small, they're losing money, "you know, they're in a little niche." But you see this company as I said earlier when Matt Kixmoeller was on. They've hit escape velocity. >> Absolutely. >> They're not going out of business-- >> Nope. Okay, there's a lot of companies you see them-- >> And they're making a profit. >> Yeah, you read their financials and you say ah oh, this company's in deep you know what. No, they're not making a profit yet, Pure. >> They are projecting to make a profit in the next six months. >> But they basically got you know, 500 and what, twenty-five million dollars in the balance sheet, their negative-free cash flow gets them through by my calculation, in the next nine or 10 years, because they have zero debt. They could easily take out debt if they wanted to, growing at 30% a year. They'll do a billion dollars this year, 2.4 billion dollar market cap. They didn't have a big brain drain six months after the IPO, which was really important, it was like, you know business as usual. They've maintained the core management team. I know Jonathan Martin's you know, moving on, but they're bringing in Todd Forsythe to run marketing. A very seasoned marketing executive so, you know, things are really pretty interesting. The fact is, we haven't seen a billion dollar storage company that's independent since NetApp, there's only one left, NetApp. EMC is now Dell EMC. 3PAR never made it even close to a billion outside of HPE. Isilon couldn't make it, Compellent couldn't make it, Data Domain you know, couldn't make it as a billion dollar company. None of those guys could ever reach that level of escape velocity, that it appears that Pure and Nutanix are both on. Your thoughts David Floyer. >> I couldn't agree more. They have made their whole mantra, simplicity. They've really brought in the same sort of simplicity as Nutanix is doing. Those are the companies that seem to have been really making it, because the fundamental value proposition to their customers is, "You don't need to put in lots of people "to manage this, it'll manage itself." And I think that's, they've stuck to that, and they are been very successful with that simple message. Obviously taking a flash product, and replacing old rusts with it is, makes it much simpler, they're starting off from a very good starting point. But they've extended that right the way up to a whole lot of Cloud services with Pure. They've extended it in the whole philosophy of how they put data services together. I'm very impressed with that. It reminds me of Ashley, the early days of-- >> Of NetApp. >> No, of NetApp and also of the 3PAR. >> Oh, yeah, yeah, absolutely, simplicity, great storage services, Tier 1. When I say NetApp, I'm thinking, you know, simplicity in storage services as well. But you know, this is the joke that I been making all week is that you talk to a practitioner you say, "What's your storage strategy?" Oh, I buy EMC for block, I buy NetApp for file. At Pure it's sort of, not only challenging that convention, but they're trying to move the market to the big data, and analytics, and they also have a unique perspective on converge and hyper-converge. They count a deep position hyper-converge that's you know, okay for certain use cases, not really scalable, not really applicable to a lot of the things we're doing. You know, Nutanix could, might even reach a billion dollars before Pure, so it's going to be interesting. >> Well, I think they have a second strategy there, which is to be an OEM supplier. Their work with Cisco for example. They're an OEM supplier there. They are bending to the requirements of being an OEM supplier, and I think that's their way into the hyper-converge market is working with certain vendors, certain areas, providing the storage in the way that that integrator wants, and acting in that way, and I think that's a smart strategy. I think that's the way that they're going to survive in the traditional market. But what's, to me, interesting anyway, is that they are really starting to break out into different markets, into the AI market, into flash for big data, into that type of market, and with a very interesting approach, which is, you can't afford to take all the data from the edge to the center, so you need us, and you need to process that data using us, because it's in real time these days. You need that speed, and then you want to minimize the amount of data that you move up the stack to the center. I think it's a very interesting strategy. >> So their competing against, you know, a lot of massive companies I mean, and they're competing with this notion of simplicity, some speed and innovation in these new areas. I mean look at, compare this with you know, EMC's portfolio, now Dell, EMC's portfolio. It's never been more complicated right? But, they got one of everything. They've got a massive distribution channel. They can solve a lot of problems. HPE, a little bit more focused, then Dell EMC. Really going hard after the edge. So they bring some interesting competition there. >> And they bring their service side, which is-- >> As does Dell. So they got servers right? Which is something that Pure has to partner on. And then IBM it's like you know, they kind of still got their toe in infrastructure, but you know they're, Ginni Rometty's heart is not in it you know? But they, they have it, they can make money at it, and you know, they're making the software to find but... And then you get a lot of little guys kind of bubbling. Well, Nimble got taken out, SimpliVity, which of course was converged, hyper-converged. A lot of sort of new emerging guys, you got, you know guys like Datrium out there, Iguazio. Infinidat is another one, much, much smaller, growing pretty rapidly. You know, what are your thoughts, can any of these guys become a billion-dollar company, I mean we've talked for years David about... Remember we wrote a piece? Can EMC remain independent? Well, the answer was no, right? Can Pure remain independent in your view? >> I don't believe it could do it, it was, as just purely storage, except by taking the OEM route. But I think if they go after it as a data company, as a information company, information processing company, and focus on the software that's required to do that, along with the processes, I think they can, yes. I think there's room for somebody-- >> Well, you heard what Kix said. Matt Kixmoeller said, "We might have to take storage "out of the name." >> Out of the name, that's right. >> Maybe, right? >> Yes, I think they will, yeah. >> So they're playing in a big (mumbles), and the (mumbles) enormous, so let's talk about some of the stuff we've been working on. The True Private Cloud report is hot. I think it's very relevant here. On-Prem customers want to substantially mimic the Public Cloud. Not just virtualization, management, orchestration, simplified provisioning, a business model that provides elasticity, including pricing elasticity. HPE actually had some interesting commentary there, on their On-Demand Pricing. Not just the rental model, so they're doing some interesting things, I think you'll see others follow suit there. I find Pure to be very Cloud-like in that regard, in terms of Evergreen, I mean they essentially have a Sass subscription model for their appliance. >> And they're going after the stacked vendors as well, in this OEM mode. >> Yeah, they call it four to one thousand Cloud vendors, so you're True Private Cloud Report, what was significant about that was, to me anyway, was a hundred and fifty billion dollars approximately, is going to exit the market in terms of IT labor that's doing today, non-differentiated lifting of patching, provisioning, server provisioning, (mumbles) provisioning, storage management, performance management, tuning, all the stuff that adds no value to the business, it just keeps the lights on. That's going to go away, and it's going to shift into Public Cloud, and what we call True Private Cloud. Now True Private Cloud is going, in our view, to be larger than infrastructures that serve us in the Public Cloud, not as large as Sass, and it's the fastest growing part of the market today, from a smaller base. >> And also will deal with the edge. It will go down to the edge. >> So punctuate down, so also down to the edge so, what's driving that True Private Cloud market? >> What's driving it is (mumbles), to a large extent, because you need stuff to be low latency, and you need therefore, Private Clouds on the edge, in the center. Data has a high degree of gravity, it's difficult to move out. So you want to move the application to where that data is. So if data starts in the Cloud, it should keep stay in the Cloud, if it starts in the edge, you want to keep it there and let it die, most of it die there, and if it starts in headquarters again, no point in moving it just for the sake of moving it. So where possible, Private Cloud is going to be the better way of dealing with data at the edge, and data in headquarters, which is a lot of data. >> Okay, so a lot of announcements here today, NVMe, and NVMe Fabric you know, pushing hard, into file and object, which really they're the only ones with all-flash doing that. I think again, I think others will follow suit, once they have, start having some success there. What are some of the things that you are working on with the Wikibon Team these days? >> Well, the next thing we're doing is the update of the, well two things. We're doing a piece on what we call Unigrid, which is this new NVMe of a fabric architecture, which we think is going to be very, very important to all enterprise computing. The ability to merge the traditional state applications, applications of record with the large AI, and other big data applications. >> Relevations, what we've talking about here. >> Very relevant indeed, and that's the architecture that we believe will bring that together. And then after that we're doing our service end, and converged infrastructure report and the how, showing how the two of those are merging. >> Great, that's a report that's always been, been very highly anticipated. I think this is our third or fourth doing that right? >> Fourth year. >> Right, fourth year so great looking forward to that. Well David, thanks very much for co-hosting with me-- >> Your very welcome. >> And it's been a pleasure working with you. Okay that's it, we're one day here at Pure Accelerate. Tomorrow we're at Hortonworks, DataWorks Summit, we were there today actually as well, and Cloud Foundry Summit. Of course we're also at the AWS Public Sector, John Furrier is down there. So yeah, theCUBE is crazy busy. Next week we're in Munich at, IBM has an event, the Data Summit, and then the week after that we're at Nutanix dot next. There's a lot going on theCUBE, check out SiliconANGLE.tv, to find out where we're going to be next. Go to Wiki.com for all the research, and SiliconANGLE.com for all the news, thanks you guys, great job, thanks to Pure, we're out, this is theCUBE. See you next time. (retro music)

from Houston Texas extracting the signal from the noise it's the cute coverage Grace Hopper celebration of women in computing now your host John furrier and Jeff fridge okay welcome back everyone we are here live in Houston Texas for the Grace Hopper celebration of women in computing this is SiliconANGLE media's the cube our flagship program we go out to the events and extract the simla noise i'm john ferry the founder of SiliconANGLE join with Jeff Frick general manager of the cube our next guest is Lisa Dougal who's the chief diversity officer pwc consulting welcome to the cube thank you very much great to see you great to chat with you before we came on we talked about you were at Carnegie Mellon back in the 80s and we just had Eileen big enough for it to it another 80s throwback like me in sheb back to the 80s hot tub time machine whatever you want to call it it's a lot of fun so thanks for spending some time with us oh my pleasure so first what are you working on so that's the first point we've learned that's a good question to ask what are you working on what am i working on so for me personally I do a number of different things right as my role is chief diversity officer I am creating and evolving and implementing programs that help all kinds of diversity in the workplace which ranges from women to minorities to men as well which is one of our big focus areas right as a partner in the practice i'm also a retail consumer partner so I work with retail and consumer clients on transforming their businesses from strategy to execution digital transformations hot right now Adam everything is being automated I mean everything's addressable now Internet of Things creates absolutely % data acquisition it does but I think at the same time it's created such a wealth of I will call it information old school or data its recent project right I think companies are struggling with how do you parse through how do you tell the story how do you figure out a what the data is telling you if you take the consumer industry for one right they've got huge amounts of consumer data now the question is how do you use it how you turn it into innovation one of the things you were mentioning before you came on was that you did a thesis at Carnegie Mellon back in the eighties where you ready to say a computer science major but everyone had the code which great paid back in the 80s and maybe we should reinstitute that across the university I agree I think everything went should coach likes math and sciences to me I think a requisite skill for everybody but you say that these are supposed decision-making using computers now fast forward to today where we were just chatting about for the first time in modern in business history you can actually measure everything so no more excuses if you could actually measure everything right so the question becomes what do you want to measure right yeah so what does that do with a business how does that change and I think it's a combination of measurement which just looks historical and that's important right with predictive and right where the world is going it's predictive analytics behavioral analytics right because that enables us to figure out how we want to change we're only ever looking backwards we had a static point in time yeah and that's informative and you need that and as we talked before you need to be able to parse through the data and decide which is relevant and which is really the lever you want to pull but I think more and more we're seeing companies doing data modeling and data predictive analytics on just about everything right right and Merv Adrian loves to talk about data in motion from gartner and you know it's no longer good enough to have it look at it then decide what you're going to do now really was spark and some of the new technologies you actually have an opportunity to look at the data in motion in a transaction in a retail environment and change change the transaction midstream to hopefully get to a better out absolutely so what you seeing kind of out in the in the world of some of these more advanced retailers and some of the things I think that's happening i think the ability to drop coupons as people walk by the aisle is more and more prevalent right not just any coupon but we know you buy a lot of milk right i think you're going to see more and more price changing based on the consumer i know you you've been into my store you're a loyal customer I'll pop you the milk at this price where somebody else might pay a higher price I think the world is open in terms of how these companies are using not just the data they collect on the product and the technologies but also on you as the individual least I want to get your thoughts on a concept that we've been kind of gleaming out of the data here at Grace Hopper and other events we've been to around women in computing but more importantly also computer science and that there's a lot of different semantics people argue about women versus ladies this versus that there's so many different you know biases mean I'm biased whatever all that stuff's happening but one constant in all this is that these two debt variables transparency and always learning and that seems to be a driver of a lot of change here and you mentioned digital transformation what are you seeing out there that's really driving the opportunities around transparency you can save data access you have data then things are transparent always be learning this new opportunities so those seems to be a big pivot points here at this event here where there's a lot of opportunities there's a subtle conversation of not just the pay thing and the gender equality on pay but opportunities is the big theme we're seeing here absolutely I am really energized by being here right first of all to see so many young women all passionate about technology and computing and really being inserted in the right ways you know I've had women come up to me even on the escalator shake my hand as a hello you're from pricewaterhousecoopers let me ask you what you do during your day right I think in my day a there was no place to go and even if you did you were trying to navigate a very different world and you were trying to perhaps not be you but be somebody else right how do you fit into the man's world I used to watch all sports all weekend so I can make sure I could participate in office conversation when I got in on Monday mornings right I think to hear the conversations that the women are having that are very technology driven but also very much authentic to who they are is where we're going see if you were a young lady in tech now you actually program the fantasy games so that you'd win the game everywhere that's right you could write the code this is but there's a lot of coding a lot of developers here phenomenal growth in develops we just had a young girl just graduated she's phenomenal Natalia and she got into it she started in journalism major and second year in she switched into computer science because she was tinkering with wearables which is terrific right one of the conversations I like to have with our young women about PwC in particular but a lot of parts of the industry the ability to combine industry or sector knowledge with the technology right so I was talking to one women who said well you know I just switched out of pre-med I really like medicine but I got into coding and I simply have you thought about you know the whole arena of the health care industry is dramatically changing right we're moving to the point where we have you know patient information hospital information drug trial information we can integrate all that you could stay with healthcare and still do technology and coding and she's looking at me like she'd never thought about the revelation you said early undulation the old days you try to be someone else try to fit into a man's world but now you're saying you know just the app just follow your passion and this technology behind it interesting enough is also an effect on the men like I had a Facebook post on my flight down here at the Wi-Fi on the plane and i typed in my facebook friends hey real question is a politically incorrect to say I love women in tech I kind of put that out there is kind of a link bait but all sudden the arguments were weighed politically correct love is for versions of love's like argument and wedding Gary deep hey very deep but the one comment was just be yourself and I think I tell our women that all the time and all our people right but i think this the shift to the workplace openness where you can be authentic and i find often are young women in particular get guidance from mentors who are men and they try to emulate that and some of that is good but you have to emulate that while being authentic to who you are otherwise you run that risk of perhaps being perceived in authentic or you know it comes off a little bit too can write what's your best advice to men because one of the things that we seeing is a trend now and certainly is that men inclusion is also into the conversation absolutely big thing we are doing that as a firm both in the US and globally we're a ten-by-ten impact sponsor for he for she which is the UN's initiative with companies governments and not-for-profits to engage men in a conversation about raising awareness around women and for us it's women in the workplace right so there really a couple of things I think men can do one is listen and actively engage with the women and not just women at your level women who are Millennials as well if you can't of not comfortable having that conversation which I know many with women and men both aren't it's hard to put yourself in their shoes right the second is to really be an advocate right think about when you walk into meetings who's not in the room are the people looking all like you what do you do about that right and i think that the third is make it personal you know be involved and know what's going on and know how you could help it seems so simple right when you just lay it out there right those are not complicated concepts but but to put them in practices is you know it takes an active you know kind of thinking about it right to really make it happen to impact change it does and i think more it is natural for people to gravitate to people who are like them particularly in the workspace we get very comfortable in our own let's call them echo chambers and then you move with your echo chamber and your echo chamber might have a little diversity but likely it doesn't have a lot of generational diversity it may or may not have all kinds of racial ethnic gender diversity and so you might meet somebody on the outside who's a little different but you go back to your go tues who are still in your echo chamber so I think the goal is to get into multiple a few echo chambers right also I also comfort zone right i mean people like what's familiar to them and pushing the comfort zone barrier is one issue right now happy young come to be uncomfortable be comfortable and the uncomfortable how is that right what people should look for I mean and everyone has their own struggles and journeys what how did people cope it so I often to have this conversation with methanol how do I talk to women about being women I said well that's probably not the first conversation you should be having right talk to them about who they are and what's important to you and then the relationship you have to build what we call familiarity comfort and trust and once you've built that you can have a conversation perhaps about what a woman's plans are if she's pregnant but you can't just walk in and taught me the for that yeah you can't blurt it out right thank you thanks off at not a walk not a good icebreaker yeah yeah so Lisa you know there's a lot of talk about what's the right thing to do what is right meaning it's the right thing to do in terms of morally and as a human being to include people but really there's there's a bottom line positive impact to there's a better outcome impact and pwc you guys do a lot of analysis you work a lot of companies so there's some studies you can share some some facts or figures that you guys have discovered about how there's really great bottom line better decisions better products better profitability when you have a diverse point of view that you bring to a problem set absolutely there are number of different ways to look at that I think you're right it is the right thing to do the moral thing to do people want to feel good about it but at the end of the day we know that diversity is good for business performance right and there are a number of studies out there that talk about board composition and how you know now bored women on boards has been legislated in enough countries around the world for long enough now you can correlate long-term 10-15 year performance with the performance of those companies and we see that those companies perform better right you can look at just the diversity I mean another angle of looking at it is we do a lot of work with Millennials in the millennial studies right and people coming off a campus are more Geographic gender ethnic minority diverse than any generations we've seen at a very long time right there more women coming off of campus in general than men right now and they're doing very well right so there's also the zero-sum game that says if we don't figure out how to accommodate a track promote retain women then we're not going to be able to get the best of the best of the workforce and you become at a competitive disadvantage well it's quality that's the competitive advantage is the quality that you get with the diversity absolutely how do you manage that process because some would say diversity slows things down because you have different perspectives but the outputs higher quality high equality and more innovation right and one of the things we like to do is talk about diversity and a number of different angles so there's race gender sexual orientation there's also in our business diversity of degrees so we have coders working with mba is working with lawyers doctors strategist and part of that is the way you get the thinking and the most innovative solutions to your problems and I think when you begin to develop and to find it that way there are places for more people to get on the wheel so to speak right everybody is thinking about diversity not just you look different or you experience but you bring a different perspective to the problem because you have a different background where you grow up and what you studied it's just it's just funny that you know in being diverse you're actually leveraging people's biases to get to a better solution absolutely perfect all the way around that's right and i think that there's a movement now and we're really moving from thinking about being equal to thinking about being equitable right equal would say if you have three kids peering over a fence ones four foot ones five-foot 16 foot give them all in one foot box well that's not going to get the forefoot guy over the fence right what you really have to do is give them each a size box that they need right so the six-foot kid probably doesn't need a box at all if it's a five-foot fence right the 5-foot kid might need a little stepstool and the forfeit kid probably needs a large cube right right that's being equitable it's not necessary to me out well based on the outcome based on the album about the objective right versus some statistical equitable correct so I think in business we're moving more to looking at that outcome based heck with biddle equity being equitable across outcomes equitable thank you not just being equal because I think for a long term it was treat everybody the same and that's diversity it's really appreciate everybody for their just as differences and let them play to their strengths right and use the data science tools available Go Daddy put out the survey results of their salaries to you seeing the University of Virginia Professor Brian gave a keynote today about the software that they're building an open source for tooling but the date is going to be key but at the end of the day management drives the outcome objective so I'm Celeste someone at a senior level who's had a good journey from the 80 Eileen big and talk about the same thing you're now at the top of the pyramid the flywheels developing there's some good on in migration with women coming into the field house the balance how's that flywheel working for the mentoring the pipeline in the operational I'd say I give you one example right so we have a women in technology what started as a program it's now a part of our business right we started about two and a half years ago with 30 women who are trying to figure out in technology you give you a long term implementation projects for you know six months a year two years and only operate in the same echo chamber right so how do you network with other women how do you meet them it's now 1400 people strong and one of the pillars of it is a mentorship program we had and it doesn't sound like a lot but see from where you start right increase if we started with needing having about 50 50 women mentored right we're up to hundreds of women being mentored and last time we opened the program we had 150 leaders not just we had other people but leaders sign up within the first few days to mentor the women so in my mind that's success that success reason I didn't need to promise my job good job on your older thank you taking you for that network effect there's an app for that now the network effectors are dynamic now so coming back to the theory of socialization and social theory as you get a network effect going on there's a good social vibe going on talk about that dynamic it's kind of qualitative and then be might be some numbers so save it but talk about that the the network effect of that viral growth if you will I think you sort of have it's now a important and good and rewarded thing to do right but I also think there's a millennial factor there yeah right so what we've been able to see is as our tech women come in off a campus they're beginning to get opportunities that change the game around women in the community right so we brought a number of two-year three-year out women with us and have them help us in the planning of being here all the way from designing our website to putting together the booth to submitting and speaking at so they got speaker slots which gives them amazing exposure with then sentenced that social dynamic in a number of ways right you have them wanting to other people wanting to emulate it you have leaders reaching out to me and say wow we didn't know Emily you know Emily did that that is great right she spoke to 900 people yesterday and so that changes the social landscape acceptable it certainly does it's great amplification so as we wrap here at Lisa I think that's a great segue talk about the Grace Hopper celebration of women in computing it's a very different kind of conference it's a very different kind of feel why is it important to pwc why do you guys invest in this show and you know the example you caves just a great lead into it I think it's for a number of reasons it's a great source of recruits right so so we want to be here we want to meet the young people coming off of campus so maybe we might not meet in our structured campus environment right I think the second is it's a great opportunity for our young women to promote and develop themselves and gain skills that we would never gain I think the third is just to empower our women just like being here and even the emails i'm getting from our women who are not here and our men who are not here the fact that we are here has sort of had a little bit of a viral offensive foam oh you're missing out you're missing out it's an amazing experience it's really helped put in some ways women in technology in a little different league right a lot of the alliances and a lot of the conference's we do are we do 15 major conferences now and we support leadership for women events at all of them but this is one of the few that's not alliance space it's not being at SI p with us AP or being an owl with Oracle which are great things for us to do but this is for the women about the women and the development of the women it's an exciting time and we're excited to document and thanks for spending the time sharing your insights and data and perspective here on the cube well thank you so much John and jeff bennett me having me whereas our pleasure was so inspired so really awesome and if you want to be part of the cube we are hiring looking for women digital scientists data analyst on-air host and we've been shamed a little bit for having an all-male team here I was just gonna ask ya we are looking for powerful strong smart women who want to join the cube we're hiring so contact us offline thanks for watching me right back with more live coverage here in Houston Texas at the Grace Hopper celebration be right back