 From theCUBE Studios in Palo Alto in Boston, bringing you data-driven insights from theCUBE and ETR. This is Breaking Analysis with Dave Vellante. Adobe Summit 2024 put individualized digital experiences on full display. Personalization at scale is exceedingly difficult. By applying AI, Adobe show that it can bring custom experiences to the masses and do so with trusted enterprise-grade content. Moreover, Adobe highlighted an expanded market for its three major business segments and is pursuing a TAM that's approaching $300 billion. We believe Adobe represents a leading example of AI monetization beyond the two most commonly discussed drivers, i.e. the first being the picks and shovels of Silicon, LLMs, and core AI infrastructure in two Microsoft co-pilots. Hello and welcome to this week's theCUBE research insights powered by ETR. In this Breaking Analysis, we welcome our friend and CUBE contributor, Andy Turai, who's the Vice President and Principal Analyst of Constellation Research. He's going to review the action from Adobe Summit, which he attended, and we're going to give our perspectives on the prospects. With the company, Andy, thanks for coming into the studio. It was great to see you. Late night flight, you look good. Thank you. I slipped on the wrong spot. All right, let's take a look at Adobe's stock performance in the recent years. Adobe is roughly a $20 billion revenue company with $8 billion about in cash and equivalents on the balance sheet. They got zero net debt and a more than 10x revenue multiple. So really, really strong from, you know, you can see with many software companies. Now, two months prior to the launch of ChatGPT, you see here Adobe announced this intent to acquire Figma back in September of 2022. For $20 billion, it was split almost down the middle between cash and stock. As you can see, the outstanding performance of Adobe, the street obviously liked that deal coming out of 2022's tech downturn. Now, the Figma deal made some sense because Adobe was unable to compete with Figma with their own product. Now, whether $20 billion pre-Chat GPT was a good price is still a big question, but it really didn't matter because our friends at the UK competition committee essentially killed the deal. So it was kind of a blessing in disguise, Andy, from my standpoint, because AI has changed everything, but the street obviously liked it. What's your take? Yeah, I thought, I mean, it's a good marriage. I mean, Figma would have added a lot of value to it. As I said, you know, there are a few things that they have in their collaborative tools and the browser-based interfaces. It's had a really good traction with the creators, right? But I thought $20 billion is way too high, but what do I know? That's why I'm not a stock analyst. Yeah, well, but that stock went up. But to your point, designers loved Figma. I mean, they were killing it. And Adobe had its own product. I forget what it was called, DE something, not DX, DG, or something like that, DG, right? Yeah, and people didn't like it, frankly. They just couldn't compete with Figma, so hey, if you can't beat him, buy him. And, but Lina Khan didn't even have to take a bite out of that because the UK competition committee did it for it. All right, let's look at the ETR data to see how the spending momentum looks for Adobe across its vast portfolio. This is data from ETR's Technology Spending Intention Survey and it shows the spending momentum or what we call net score over three time periods, April 2023, October 2023 and January 2024. And that's in the gray, the blue and the yellow respectively. So the yellow is the most recent. This is a survey of around 1700 technology buyers and in the dataset, they're in the most recent one. There were 872 Adobe accounts. So big representation in the survey. That's a significant end. And as you can see, the breadth of the portfolio, you got Adobe Sign, which competes with DocuSign, it's marketing platforms, content management. Marketo was in there, which Adobe acquired for almost $5 billion from private equity firm Vista. FinTech is in there and Workfront, which is the workflow management software. And well, look, this maps to ETR's taxonomy, right? ETR's a survey, the TESA survey, they do the same survey each quarter. So they have to have a taxonomy that applies to every company. Okay, so it doesn't precisely map to how Adobe views its business. We're going to talk about that. But we can infer from this, and the real point, which is there are a number of areas in the yellow that are showing acceleration and accelerating momentum and or are holding steady. So most firms data in the dataset, we've been analyzing this stuff for years, it's softer right now. When you look at that chart for most of the companies, you know, with very few exceptions, the yellow would be lower. But these guys, Andy, their portfolio has a lot of momentum. I'm sure you saw this, it was palpable at Summit from the videos that I saw. Yeah, no, it's, again, some of the users, I spoke at the conference as well, the creators and the marketers love Adobe, right? So, yeah, they had some challenges, particularly when it comes to Firefly, initially when it was released, not much of attraction. And, you know, the OpenAI and other LLMs are coming in, that made a huge impact on, they also went after the image and video generation at that point, Adobe didn't particularly have an answer. So there was some headwinds at that point, but now with the latest announcements they've made, by the way, all the announcements, most of the announcements they've made at the conference, the announcement, not just like some of the other announcements, saying that, okay, we are announcing for the sake of announcing it, that it won't be available for next year. With Adobe, these are either already available in their product baked in, or it will be available shortly, or at least it's available for early adopters, so people can use it real now. And some of these announcements are very good, very good. Yeah, so that's a really important point, especially for investors, because it means monetization. That's what they care about. And everybody's looking for AI monetization. I mean, obviously Microsoft talks about their AI revenue. IBM actually gives some guidance on it. Dell talks about its backlog, I think HPE does as well. And CEOs are starting, and CFOs are starting to talk about it. And so let's get into some of the takeaways from Adobe Summit, and you can give us your perspectives on kind of what you learned. There was 11,000 attendees, so a lot of action there. And let's start with Firefly. I mean, it was on full display. That was the big star of the show at its one year anniversary. In the Financial Analysts Conference, they definitely gave some guidance or some indications that Firefly has accounted for a 30% increase in new subscribers. So I guess the point there is, and we've talked about this, well, let me just say that the big focus was on governed, unpredictable, and trusted AI. So the point about new subscribers is a lot of people thought that we were going to be looking at credits as the big driver here. Whereas it really is an AI tailwind. So what's your take on Firefly? What's the takeaways that you have? You saw demos. So let's talk out with the Firefly in particular, and then we'll talk about the unknowns, right? So when it comes to Firefly, the Firefly is not just one model. It's a set of responsible AI models, set of models rather, which are generated in a responsible way. So what do I mean by responsible AI models, right? The one thing Adobe did, which is slightly different, they, from the get go, they call that as a responsible innovation, right? So in the age of innovation, how to be responsible, how to do responsible innovation is the theme. So what they're trying to do is, one, these are obviously this most of the models, or at the current time, it's more about image generation models. They're not at the video, audio, and the 3D rendering will be coming later this year, but right now it's mostly image. So what they've done, Adobe, they had a leg up, unlike some of this other public algorithms, other companies that we're creating, they had to go and steal, scrape information from the web. That's why they're getting sued. But Adobe, they had their own stock of licensed images, multimillion, already in their portfolio. And then they have this collective license agreements with others and they were able to get the licenses. So they trained their entire model based on the images and pictures. The safe data. The safe data, that's one. Okay, right? And the second one, telling examples, that one of the major issues, this is what I mentioned earlier on when we were talking, the problem with OpenAI and other LLMs is that when it comes to innovation, we talked about this multiple times, there is this technology innovation and there is customer needs-based innovation. The technology innovation is your OpenAI, ChargeBT. So it came out and everybody is gaga Oh my God, I need to go and use that, right? But then how do you convert them to customer-acceptable, customer-based enterprise-grade innovation? That's where Adobe is able to bring this into for customer needs. In other words, for example, one example they were giving is, let's say you are trying to put kids in a picture, but that happened to have beer or alcohol in it or guns in it. And then if you have a corporate policy set up in such a way that the kids cannot be in this, that's just one example. There are things like your brand guidance. No beer and diapers. Or beer and diapers. You know the old Walmart story, right? Put the beer next to the diapers. Not with AI, you can't hit that, right? So it's because of that, the enterprise adoption, I could see that happening pretty big. So not only the models are trained in a responsible control image, so the output can be controlled, but also you can guide them for your brand and the way you want it, right? And then the other innovation among the Firefly models, what they had, which I think is going to be huge, is that you can custom train those models to fit your brand. For example, if you're IBM, if you're Coke, if you're Disney, those are the big companies that using them. Delta is another one. Those are the ones that are using it. So you can take the model and then you can train with your own setup, images and styles and guidelines, and then it'll become, the model will become your brand. You could still use it within Adobe within a set of guidelines and brands, so whatever it produces would match what you're expecting. So it speeds up the process. Your style guide, you're saying. Your style guide. It will adhere to the edicts of your organization. It's smart enough to figure that out. Absolutely. You repeated it. Absolutely. That's pretty impressive. Okay, you also gave another, actually, you know what? Let's bring back this slide because I want to ask you, Andy, on the third to the last bullet here, I probably should have ordered this differently. They announced the coalition or maybe they've announced it before, you knew it was coming, but they made a big deal out of this, to show the coalition for content, provenance and authenticity, C2PA. Is that related to that focus on governed, predictable and trusted AI? Or is that more sort of a compliment that Adobe is just really marketing and advancing this notion of provenance and trusted AI? Yeah. Simplac, yes. Matter of fact, I'm part of the C2PA organization as well. Why? What do you mean? What role do you play? So I'm just a member now, but I'm trying to do more. It's a non-profit organization. I mean, it's only members of Adobe. There are a lot of other members, member organizations in there, but individuals like you and I can't go and sign up as well. So what they're trying to promote is the one to prove the sourcing of the content where it came from, who created it. Okay, so that gives you an opportunity as an original creator in the future for copyright ownership, IP issues. And if you want to monitor this, that if somebody else is plagiarizing and stealing it, so you can have a provenance. And two, if you want to know the truth, remember I posted on LinkedIn all the time saying that go to the source and get the truth. And that will give you the digital combination of watermark and metadata combination that they're working on. We'll give you an opportunity for you to track it to where that came from, right? So it is actually a really good initiative, C2PA.org is the website that they have, constant authenticity initiative. So this helps attack deep fakes, for example. For the election that's coming up, I mean, that's the main goal. We've seen terrible situations where certain prominent stars were shown in really seedy videos. Oh, even political debates. Yeah, okay, right, exactly. So you're saying that Adobe will be able to somehow either watermark or identify it as a fake so that that's assuming you use the Adobe platform, right? Well, so the platform has a lot of prominent companies. And so at the end of the day, it's one part is creators who's creating that, you know, the watermark that's on us on them. But the other part is also about the publishing houses on enforcing this, right? So there are a majority of the, I believe CNN is also part of that, but almost all of the newspapers, big ones like New York Times, Washington Post, and BBC, and I believe CNN, they're all part of this. So they will not publish any, right now it's mostly images, they will not publish the content without knowing the provenance and without having the approval of the original order that it can't report about social media companies though. I mean, that's where the big problem is. Actually, Facebook is part of that. So, okay, so Meta is on board Twitter, do you know? Twitter have their own mind, so I don't have that part of it, but I don't know what's going on there, but that, because I think social media is where the big challenge is. Microsoft is part of that, so therefore LinkedIn. But none of this, this is a technical challenge that they're solving, and I think they're not the only one, but okay, let's, I want to come back to this takeaways again, if you would, Alex, and the next bullet here is the third one down, new monetization in 2024. This is the exact point that you were making. They announced that they would have Express Mobile and an AI assistant for Adobe Reader, which everybody has Adobe Reader, and then Firefly for video audio in 3D. And I believe that will be second half, I think the Express Mobile, I think is right around the corner, and maybe even AI assistant for Reader. So this is new monetization in 2024, Andy, correct? So Wall Street will get excited about that, because you're talking about AI dollars to the income statement. It's not just that. So I don't know if you get a chance to watch that. There was a newsflash they made on the stage. You know, what is the amount of proven content pieces that they generated using AI in their studio? Six and a half billion. Yeah, it was insane. Totally younger, right? That was blown away. And we're not talking about some AI generated random pictures. These are corporate-ready governed images that as published can be immediately monetized. So talk about a monetization angle. If you provide a platform for these creators to monetize that, and if you take a share of that, imagine the billions of images as being generated, and then either Adobe owns it, controls it as a license, or some way to track it back to them. There have become a powerhouse by doing this release. Can we talk about a personalization at scale? Because it seems like this is Adobe's really significant differentiator in the market. You were giving me an example. I think you saw a demo, or you were talking to some folks, maybe both, about the ability to, at scale, I mean, hundreds of thousands or millions of users receive a marketing campaign, in each one as a different image or slightly different change that will resonate and be personalized for that user. Am I getting it right? How do they do that? Is that, I mean, it's obviously unique, particularly with scale, but I would like you to give us some perspective. So there are two things that they're trying to do which blew me away, right? Again, there's being my first summit, was it? So a lot of things were new, but that particular two things that they showed me. One, they have this solution or product called GenStudio. GenStudio is called Studio. Gen, like GenAI Studio. Yeah, GenAI Studio. The generative studio or GenStudio is basically about democratization of marketing. So it can allow you to do cross-channel campaigns on brand content. So I'll give you an example of what they were trying to do, right? So you are a big brand. Let's say hypothetically IBM, Disney, whatever, right? So I go in there and I want to create content that I want to publish and send to my folks who are willing to buy things, right? So one, I generate assets, right? Right now it's mostly images, but video, audio and whatever, I generate that, right? And I can also create variations. Again, we are talking about just doing a text-based prompting and then we'll generate the content the way you want it. Within your enterprise guidelines that you already set, that guidebook we talked about, guidance, style book and structure, right? And then I can also say what place I want to publish this, whether it's LinkedIn, Instagram, Twitter, Meta, whatever. It'll create the variations of that. And then you can also create multiple variations of that campaign, the different color, the different background, what have you. What it's compelling in that is each of that, when you do it, based on your brand perception, there's a simulator that runs in saying that, okay, I want to run this campaign. Give me an idea of how successful this is going to be. They will show you, again, this is a simulator based on your customer base, you have chosen for that particular campaign. It'll show you the impressions that you'll get for that. It'll show you the click-through rates. It'll show you how many people would add it to cart, what kind of metrics, what kind of revenue it'll potentially create at the end of the day, right? They made a big deal about their analytics. Which is pretty good. And on top of it. Keep the marketers, obviously. So that's one piece of it about revenue generation. The other piece is, assuming that it sends a campaign, when it sends it to you right now in the marketing, everybody is talking about personalization. It's mostly at the talk level. But this one, at least a sample they showed, showcase demo, they were able to show if they create a campaign, if they're trying to sell a shoe, if they send an email to you and me, it'll look, the email will look for your taste, including your discount that you would prefer. Let's say you want a 50% discount. And then it'll show you red shoes. The same thing can come to me with the blue shoes and a 90% discount because I'm a cheapo. And they can do this because they have the data. They have the data, they need the preference, they have the preferences, they need the personalization. And personalization. But it's their customer's data. It's their customer's data, yes. That they're leveraging. And so, and people have opted in, obviously, to share those preferences or they just know because that's what they buy. And I want to make a quick point on that. That customer's data, that they're bringing in a new option called federated audience composition. Which means you don't have to, I know we all have the, you know, the database of customer database, CTP and the whole line yards. But what they're suggesting is you don't have to compile them while they're modeling to one database. You could keep where you want the data. For example, the examples they're giving were, you can keep your customer data and preferences and personas and snowflake. In AWS, you can have it anywhere you want. And then they'll compile composition of audience for a specific campaign. And again, it's not just a persona base. It's an individual preferences base. If you want certain thing, you'll be given that information the way you want it to consume. Not just want it to consume, the way you want to see which will appeal to you. So your click through rate will increase and improve. And then they also, another tool in which you'll run the campaign through, it'll show you how much of a grand brand compliance it is. And then you can go and improve the way you want it to make it 100%. Okay, so those are pretty powerful examples and you saw these on display at the show. I want to go, Alex, bring that slide back up. I want to jump ahead here. We talked about the coalition for content, Providence and CDBA. The penultimate bullet here, the ecosystem partners and brands. I want to talk about that a little bit. Talk about the tech behind this. We've just given a few examples. IBM, Microsoft, Disney, Coke, Pfizer. IBM I think is on both sides. Correct me if I'm wrong. I think IBM is providing technology in the form of Gen AI, Watson X for example. They're also a big user of Adobe. Massive user. Microsoft's a part, we're not listing. I think I saw NVIDIA on one of the charts. I think I saw Google, Delta's up there, Major League Baseball. Okay, as for both technology, we're talking here about ecosystem technology partners and brands that are buyers. Yeah, brand partners. So give us your take on what you saw there, the technology behind this, how unique is it and the examples that you saw from the brands and the customers that you talked to, how well did it align with their high level, very scripted messaging? So the most compelling, which was fully showcased there and also they had a separate analyzation for that as well, that IBM spawned my shit. One of the things IBM was telling was before they partnered with Adobe, they used to spend about 20% of so of their time in creating content, but about 80% of their time in maintaining and operationalizing than bringing it to brand, I already called it brand values or brand governors within their guidelines, right? But now with the usage of Adobe, it's a matter of minutes you could do the same thing once as soon as you create the content, which means almost probably not the whole 80%, but 50, 60% of their time, what they're doing that work is straight up, the money that's straight up. I don't know if they are related or not. IBM became efficient. They have a production efficiency in the marketing teams. There was a lack of a couple of weeks ago. So there is that negative side as well, right? And then Delta, the guy talked about as who you are, whether that's negative. If you get laid off, it's negative. Wall Street, you love it. It's a perfect example of a company, IBM, using AI internally to put money in the bottom line. It's going to happen. So nobody likes to talk about that, but look, it's the world we live in. And so- It is happening. Machines have always replaced humans and we've driven productivity and it just so happens it's cognitive replacement now, but it's happening. So you have to embrace that. You have to retrain people. You've got to think differently in terms of, you can't protect the past from the future. Right. It is. And in the past, the non-skilled or manual labor work is the one that used to be kept replaced, but now the cognitive creative work side of things is getting replaced, which is where it's getting a little murky. So because I used to think human brains can never be replaced, that we are getting there. Yeah, well, murky in the sense that people don't like to talk about it, but there's clarity here. And frankly, examples like this are, this is what actually, this shows the promise of AI and it's a proof point to the promise of AI. If we don't have that type of proof point, then there's a problem. AI will be a promise that's not fulfilled. Okay, last point on that slide is the TAM. And I want to just get your take on this. I set up front of almost 300 billion. It's a $293 billion TAM. I think by, let's call it 2027, I forget the exact number. And at a high level, think of Adobe's business in three categories. Document cloud, creative cloud, and DX, which is digital experience. And they gave targets these numbers, 47 billion for document cloud, TAM, creative cloud, 90 plus billion, and then digital, I mean, 155 billion. What's interesting to me here, Andy, is they've got this broad portfolio. The Figma deal, it's almost like the Figma deal. One reason I say it's a blessing in disguise is because it really has forced Adobe to think deeply about innovation. And the Figma deal goes south, but the gift of AI has been presented. So they've got a strategy that's built around data, around their own models, very heavy emphasis, obviously on provenance, and then they've got the apps above it. And what I like about this, and we said this up front, is this is not just the picks and shovels of this. We've written a lot and talked a lot about Broadcom and NVIDIA and others. And of course, Microsoft gets all the attention with open AI, but this is a very clear example of the things that we've been waiting for. Adobe, I think, is probably the best example of how an enterprise software company is using AI to really drive value. You know, we see it a little bit with Salesforce, you know, Workdays, you know, working on it. Obviously, Oracle's driving AI into their platforms, but this is real tangible monetization, which gets exciting. So your thoughts on their TAM and their expanding TAM, which I think is substantially larger than what they put forth a couple of years ago, maybe even 50% larger. You said it right. I mean, I can't argue that. It's when it comes to enterprises' usage of AI, it's not that you give the picks and shovels and then tell them, hey, you go figure out how to use that. No, no, they are infusing AI into all of that. For example, another thing we didn't talk about is the fact that, you know, they have this whole workflow setup. You know, if you create a content, you send it approvals and publishing the whole ideas. It's in Adobe Insight now, right? People are using it, enterprises are using it. But now by infusing AI in each stage of this, whether it's for content creation, for approval, for the workflow management, and they're bringing it to the enterprises in a way that they have been already using it, just enhanced with AI. It increases the productivity. And some of the examples have been that, you know, I used to talk with them saying that, okay, they showcase that. How much time would have taken for you before this to create this, whatever that is? And they used to, they told me, it used to take me, if not days, it used to take sometimes weeks for us to figure out this campaign. And even after all that, we wouldn't know if the campaign is going to be successful or not. But with this one, what we have, we could figure out a matter of hours, if not minutes, and if this campaign is right, if it is going to work, is it worth spending money? That's unbelievable. Plus, another thing we didn't talk about, there is this partnership between Adobe and Microsoft was showcased on the main stage. What they're trying to do is that they're going to integrate the Copilot work with Microsoft. It'll basically bring in Copilot for marketing. So what it's going to do, is that not only that you can do all the work with an Adobe, but you can share across all the Microsoft products, such as your Dynamics 365 Outlook, Teams, Word, Workflow. So essentially, you don't have to go do everything in here. You could embed that into all of the Office, Workflows, and Microsoft stuff. And that's what is more important. Everybody's talking about coding using Copilot, but this collaboration work efficiency with Microsoft, I think it's a pretty big deal. Excellent, okay, let's close. We're going to look at, I don't think about Adobe going forward. So I've got some points that I want to make, and then I want to get your take and give you the last word here. The summit very clearly showcases that AI innovation, as we just talked about beyond just the picks and shovels and beyond, you know, the Microsoft open AI deals. Very clear examples of AI, inside, embedded, infused into applications that are driving real ROI, and we're seeing that monetization aspect of it as well, that's going to hit the income statement, already is in this year as well. We saw the uplift thanks to Firefly and customer ads, so that's very strong. Then they've got different models, they've got freemium for some, they've got freemium and pay, they've got others that are direct, they've got the credit model, so really a lot of options to consume AI. The portfolio is very broad, we saw that in the ETR slides. They've got broad portfolio, they got data, they're proving this at scale, Andy made a big point about trusted AI. These are the things that underscore Adobe's, what in my opinion is a highly differentiated strategy, they're a clear leader here. They've got a really big team across doc cloud, creative cloud and digital experience and they've got momentum in all those businesses. Their CFO sort of laid that out in the financial analyst meeting. And then the monetization of AI, it's emboldening Adobe to aspire for $30 billion in revenue, but now of course they didn't give a timeframe on that, I don't know how much they talked about this in the industry analyst session, but it took Adobe a decade or more, more than a decade probably to get to $5 billion. They went from $5 to $10 billion in five years, right? And so pretty quickly they doubled. So now they're talking about, they're a $20 billion to get to $30 billion. Now they wouldn't give a timeframe, but the inferences maybe within the next three to five years they could get there. So what's your take? Anything we didn't cover? I'll give you the final thoughts for yours. So a few thoughts on that. For monetization angle, what a lot of people are not realizing is, it could go even more parabolic than that. Right now, the content authenticity initiative and the content provenance or rather the, let's talk about that content supply chain from the creation to publication. They're just a tool helping them out, but they could come a time they would say, in order to validate the provenance of this, in order to do some of this, I'll charge you extollers for that. They're not thinking, I put that idea in their mind, but that could create a decent revenue source for them. Didn't you tell me there was another indemnification that they're? That's right. So one of the things what they're offering because they are so confident about their models, so confident about the way they created that AI, they are offering full indemnity to any of the customers who are using it. I mean, there are other companies, Microsoft is the first one to come on off of that. They are offering indemnity because people were scared to use their AI because they were getting sued by New York Times, of course, by the GitHub users and all of those guys who are suing them, saying that it's a plagiarist content. But Adobe went out and said that it is not a plagiarist content, it's our own content. To give, you know, conference to the customers, they said, you know what? On top of it will give you 100% indemnity. They are very confident that, you know, they don't have to go to that level because it's all owned by them, that copyright and owned and IPO and whatnot. So they are offering that, that's a pretty big deal. Plus on top of it, there are other revenue channels in the content supply chain they can get involved which they are not thinking about, which could increase the revenue pretty high. Look, at the end of the day, AI is the best thing ever that happened in many, many years. But the problem is, as I was telling you earlier, AI has a mind of its own. So it could do whatever it wants to do, not what you want it to do. So that's why the Prompt Engineering is a pretty big deal. Prompt Engineers, just Google it, you will see it, how much they are getting paid. So you need to do a very clever Prompt Engineering. You have to tell in a very long statements, I mean, some of those things for a proper output, if you look at it, you can see it. You gotta give like such a big Prompt statements for it to produce whatever you want in the way you want it. What Adobe are trying to do, and even if you do all that, using that, it's still somewhat skeptical because you don't know you'll get sued for using that and you don't know whether it's within your style or structure, what Adobe is trying to do is to minimize that work. You don't have to do a elaborate Prompt Engineering work. Give one or two Prompts, give our guidance. You tell me who your brand is. We already know 80% of who you are and we'll produce something that's usable and trustworthy and then we can save you if somebody comes out to you. That's huge. Yeah, and it's actually, so Adobe is doing it. I know IBM has some kind of similar indemnification for certain products. I think WatsonX, certain aspects of WatsonX, I'm not sure exactly what, but I know they've done some, I haven't read the fine print, and you always should in those things, but nonetheless, the fact that they're using that in their marketing, we'll put the pressure on them to make sure that the fine print isn't rigged, like you see in a lot of these things. We guarantee that you'll save this much and then the fine print says, if this, this, this, and this, and this. So, all right, good. Anything else you want to share? We cover it all. I mean, what's your number one takeaway at the show? A lot of buzz, met a lot of interesting people. I did, I did, and it's buzzing. The crowd is buzzing and people seem to be very excited about it, and the close of the show, they brought the big guy, Shaq, to close Shaq and Neil too. Oh yeah, it's the show. Okay, Shaq. And they did the, it's called The Snakes. I saw him up on stage. Yeah, so what they do is that they, they, I think they presented about seven ideas, and then they presented to the audience, and then Shaq was moderating and coordinating that. It was really funny. And then all seven seemed to be really good ideas. I don't know how many of them was going to get implemented, but they're all in the POC stage, pitched by the engineers. Did you sense, I mean, I was saying, it kind of forces the Adobe's hand, the figment vaporization deal of that deal, forces their hand to really innovate. Did you sense that there was like a commitment, hey, we're going to go on this on our own. We are going to innovate. We're stepping up. It almost like, you look at their stock chart, it was almost like desperation at the bottom in 2022. So they go out and pay $20 billion for a figment that was beating them. And now they're forced to innovate. Do you, are you confident that they'll be able to do that and carry them to 30 billion? I think so. I think so because, I mean, it's not that, you know, they are just, you know, stumbling upon AI just recently. They've been doing that. I mean, the Firefly model has models that was released more than a year ago, right? So they just stepped up of their game. Now that they probably have that $20 billion lying around, they could do it in the innocent thing. You have to pay a billion dollar kill-see. Right. Oh, that's. They got $9 billion more than they could've had. So, but they cash in more equity. But every one of the folks I talked to, the executive team, they're all very excited about what they're doing, what they're bringing them to the team. But more importantly, the customers seemed to have the same opinion and all of them, they were like, what do you think of these features? And they're like, oh, absolutely amazing. And I think they're going to places. Andy, thanks so much. I know you're writing a report on this, which we'll be looking for one second to be out. It's in the draft. It's going through a review process. I think it'll be released in about two weeks. Outstanding. Well, thanks for taking the time. You're a great member of our community, our firms, Constellation and theCUBE Research and SiliconANGLE work together on a lot of different projects. I really appreciate you coming into the studio. Thanks for having me. I appreciate it. Okay, that's it for now. Thanks to Alex Meyerson and Ken Schiffman on production. Alex also does our podcast, Kristen Martin and Cheryl Knight help get the word out on social media and in our newsletters and Rob Hope is our editor-in-chief or at SiliconANGLE.com. Remember, all these episodes are available as podcasts wherever you listen to search, breaking analysis podcasts. Appreciate you subscribing. I publish each week on theCUBE Research.com and SiliconANGLE.com. You can email me at David.Valante at SiliconANGLE.com or DM me at dvalante.comit on our LinkedIn posts. Really appreciate thoughtful comments and please do check out etr.ai, great survey data. They continue to expand their presence in the IT markets and beyond. This is Dave Valante for theCUBE Research. Insights powered by ETR. Thanks for watching and we'll see you next time on Breaking Analysis.