 Live from San Francisco, it's theCUBE, covering Samsung Developer Conference 2017. Brought to you by Samsung. Okay, welcome back everyone. We are here live with theCUBE coverage. We're cloud native and smart things conference from Samsung Developer Conference. I'm John Furrier, the founder, co-founder of SiliconANGLE Media, co-host of theCUBE here with Reg Stodgrass with the chairman of Read-Write and Read-Write Labs. Also been an entrepreneur, he's done the wearable world events, done a lot of things in tech. Riding the waves, you've seen them, a lot of action going on, Reg. You want to get your thoughts as we wrap up day one of two days of wall-to-wall coverage of theCUBE's Samsung Developer Conference, a lot going on. You know, Samsung, they're trying to play their best hand if possible. Obviously, they're not going to come out and say, we're not really ready for prime time for the cloud, but the reality is they're not ready for prime time for the cloud and IoT. However, huge strides in positioning, messaging, and the self-awareness of their stovepipes. They are a series of stovepipes that they've recognized, we got to make this a 2.0 Bixie that crosses across all the Samsung, open up IoT, which I thought was great. Open ecosystem. Everything else to me is a work in progress, kind of hide the ball a little bit. I mean, what's your thoughts? Do you agree or what's your reaction? Oh man, well, I was on a panel earlier today and somebody was like, oh, this is great. And I wanted to go back to back when we did the open API service with Alcatel Lucent, when we roll out all this stuff for the telcos. I mean, it's just, it's a lot of hype initially, but what I do like about it is it seems like there's a dogged commitment to creating all the different like documentation that's necessary and bringing that in. I mean, if they really put the full marketing weight behind it, this could get really interesting really fast. I mean, they own almost every device in your home already. Well, I said the word hide the ball. Maybe I should take a step back and not be too harsh. What I mean by that is they're not hiding the ball on purpose. I think they're by design. I think Greg mentioned this real Greg Narrison who said, they're doing it by design. And I think that's a good call. Smarter things is a good positioning. It highlights multiple devices and connecting it together. I think if they played the data card in the cloud too much, they would have overplayed their hand and it's not needed. I mean, do you think it's needed? I mean, I don't think it's needed. One of the biggest problems with IoT right now is that you have multiple different silos creating data. And then all those data silos have to figure out how to come together and talk about it. I mean, it seems like they're taking a step out saying, hey, we want to build that solution, which is great. I'm more interested in the orchestration between different OSs. Like how are they really going to do that? Because it's, we talked a lot about when you build one of these ecosystems, you're really just building an economy. And the more open that you let your economy, right, the more business models come in, the more people that can be there. And so, if we were to start thinking about these OSs as real economies, like what do you need to have an economy work? Well, I think this is why we were talking earlier. I think you had a good point. I think that validates what I'm thinking out loud here, which is why play the data card? They don't need to because it's still open book. They still got to figure it out. And that's not a bad thing. They play with their best hand, which is the consumer hand. It's consumerism. The devices are awesome. The screen on the phones are phenomenal. They got TVs, they got, they got a little bit of a family hub going on with the living room kitchen thing with the refrigerators. That's IOT. They got healthcare because it's a device issue. So they work in their way from the consumer edge into the industrial edge. Now, if you're in the IT world, you have security problems. So most people that we talk to at theCUBE and say, hey, John, my plate is full. I got to staff up my DevOps and my application developers. I got to unbolt security from my IT department, make that report to the boys of profit center now. And I got all this machine learning and ops, cloud ops. And you want me to do what? Like instrument my entire factory with this IOT thing. So people are holding the brakes. Well, I mean, think about it every day, right? You're confronted with another executive that has like fallen on a sword of a major security hack, major security issue. And so, as an executive of a major like business unit with a technology group in front of you, you're sitting there making like all these decisions every day. And it used to, you used to come and say, okay, we're going to make decisions every eight, nine months. And you have this big waterfall thing in front of you. And you know that from your vendors, everything was predictable. And now it's like, oh man, I got to get into this Google Glass stuff. And I've got, no, now it's wearables. And wearables, that doesn't work. I need my IOT infrastructure stuff. And so we're moving the court, you know, away from all these CIO CTOs consistently of what they need to think about next. It's interesting, if you look at the stack, go back to the old 80s OSI model, you had the lower level stack, middleware and then application stacks. If you follow the data and the networks and the packets, how it moves, you almost see the trends, batch versus real time. And I think what we've seen in the big data world and data sciences, which can be analytics, obviously specialty industry, but the role of data in real time in self-driving cars really highlights this really huge wave coming, which is how that people dealt with data and software, the relationship between software and data was different. Store it in a database, build the database, call the database, get the data out, load it in, slow, monolithic, siloed. But now you have data that you need in really low latency at any given time in any different app from any different database in less than a millisecond. How do you do that? Well, think about it. It takes intelligence. About two years ago, I had a great conversation with a big packet moving company that managed most of the packet movement from most of the internet, and we were talking about, what does it look like per person in the US in the next three, four years? And it could be up to a pet-a-pie-to-data per person. Now that sounds awesome, because if you look at all the different videos we watch, it's like, oh, that's great, really cool flying car, connected windows, no one's really doing the math on that. And if it's a pet-a-pie-to-data per person, flying in the US, a year even, or I could see models where it could be a month, think about what that does to the network load. We just don't have the math to be able, possibly they handle that. This is why the decentralization with blockchain is interesting. Even though blockchain is hyped up, I think it's fundamental to the internet, as does Dr. Wong from Alibaba who told me that last week, he said it was like TCP IP, I agree with him, because you have distributed computing, which we know about. We've been there, done that, but now you've got decentralized and distributed two different concepts at the same time. That's a fundamental paradigm shift. It's insane. Well, I mean, it's just, so, I mean. It's intoxicating to think about what that disrupts. No, no, I love it. I mean, honestly, I've fallen in love with NeuroBand Networks last week for some reason I'm the weirdest person on the planet, because it's such a solution for security. It's such a solution for a lot of this, you know, backhauling of data that we're going to have. It'll be interesting, okay? But when you think about the pure math on- You backhauling data, you backhauling compute. Oh, well, so. That's a different conversation. The trend is don't move the data, throw the compute at it, because compute is, it just, well. This is an architectural renaissance happening. People are reimagining. How many start-ups can even draw architecture, right? With all the lean startups, I mean, when was the last time you saw, like, somebody pitch, when they came to pitch, it's like, let me talk about my architecture. That should be the first slide. It should be the slide that you talk about as an executive in everything. I don't see startups deliver architecture. If you can't get on the whiteboard and lay out an architecture on fundamentally the core engine of your technology, you shouldn't get funded. So, that is a major issue that's happening right now, because I do think that we have this group think where we've disallowed a lot of R&D thinking. Like, we don't do long-term R&D before we get a product to market. And now, like all these- Sometimes you can't. Well. Sometimes you have to sprint out and put a stake in the ground and iterate. Think about all the connected device products. How do you test the connected device product to scale? Right? I mean, the iPhone, you know, Samsung, everybody has all these devices out there. They're getting this data. It's coming in. They can actually iterate on that product and make decisions. Well, that brings up a good point. We saw this at the Cube at VMworld. The first time we heard people grumbling in the hallways, like, you know, I love the ENC drives, but they just haven't tested this use case. And the use case was a new workload that had unique characteristics. In this case, they needed low latency. It was an edge device. Some edge devices have no latency as well. It's just trickling data in. But in this case, they had set up their virtual SAN in a tiered basis, and they needed a certain hardware configuration with VSAN. And they've never tested the hardware stack with the software stack. So it's just one of those things that the hardware vendor just never imagined. You can't QA the unknown. So this is where I see Samsung doing things like in chip and seeing what Intel's doing with some of their FPGA stuff. You can see that these infrastructure guys got to bring that DevOps concept to the consumer world. Oh, it's going to be so hard. Which is programming the hardware at will. Yeah, well. Like the cloud DevOps ethos. Do you, what do you think of that? Yeah, no, no. Like, look, I mean, I'm such a big fan of being able to get your product in people's hands to be able to see the use cases, develop them out and push that forward. You know, big corporations can do that. You have like, you know, 10 iterations of almost every iPhone right now with, you know, thousands of engineers iterating on it. So when you look at like the competitor, which is your device right now versus every other piece of IoT technology that isn't been perfect or anything, our biggest issue is we're driven by the success of the smartphone for every other piece of technology today. And that makes it hard to drive adoption for any other devices. So we got to get your thoughts on this because we wrap up day one. Obviously, let's talk about the developers that they're targeting, okay? The Samsung developers that they're targeting is the same kind of developers that Apple's targeting. Let's just call it out. However, you see voice activated touch. You're seeing the services tools. Now they're bringing in an IoT. You're not hearing Apple talk about IoT? Yeah. This is unique. You got Google on stage, wink, wink. Hey everybody, we're here. We're Google, Android. Coming together. What is in the mind of the developer in the Samsung ecosystem right now? What's your take on the psychology of that developer? I built an app at one point in time. It was dating Apple a long time ago, right? With some other guys. They built it. That was just the mouth. It's called Scout. And we were on the Symbian platform on the iPhone. We were on web. We were on mobile web. And the iPhone app store all with one engineer. And that was really hard because we had real time chat. It was just so much crazy things. At the end of the day, what always matters is again, you're building economies. You're not building fun playgrounds or anything else like that. And if your economy is, your platform is the easiest to use. It has the capabilities and advantages that are the norm. You'll win. Bastiff Fusion is great. This guy out here, you want to know about prize, but Bastiff Fusion says in order for you to win in a market, you need two things. Imitation and innovation. Imitation, for instance, in TVs. Is your TV black and white? Is it color? As things move up, innovation eventually overtakes and always becomes innovation. So when you look at what's needed in market, the platform that is the easiest to use, the platform that has the most capable, imitative qualities. It's just very easy for you to push things to market, universally from OS to OS, along with certain pieces of innovation around business models, certain API capabilities that may make it easier for them to deliver revenues. If those are the things that are delivered that we see pushed out for a good blend of imitation and innovation, the win, it's that person that actually can deliver it. Well, we're seeing gaming and entertainment, really driving change. Netflix earnings just came out, they blew it away again. You're seeing the core cutters are clearly there. So much for Disney, right? E-commerce, I mean, Amazon still got to make some moves, too, even though they were still winning. No one's really falling out of the chair for Prime. I mean, I don't know a lot of people who wake up and say turn on Prime. They shop on Prime, but not necessarily watching any entertainment. So a little critical of Amazon on that. But again, but Amazon's doing the right thing. Netflix, Amazon, YouTube, you're seeing a culture of digital entertainment shifting. E-commerce is shifting, and now you got web services. I think Amazon encapsulates in my mind a great strategy. Retail and services. But if you extend that out to the rest of the world, voice activated apps, you can blend in commerce, entertainment, you can replicate Amazon. I mean, they could replicate everything out there in the open. Amazon is so good at understanding where they fit in the stack. And then pushing the edge case further and further and further along, they're really brilliant. Versus VMware that's like, oh man, we can make apps. No problem, they went to make apps and that didn't work out so well. They're great with the VM. They're great with operators in the enterprise. Not so much with DevOps. No, no, no. I'm like a pivotal for that now. Michael Dell bought everyone up. Yeah, exactly. It's understanding where you fit in the stack and being able to take advantage of it strategically. I mean, like I said, I think Samsung's positioned really well. I mean, I wouldn't come and hung out with everybody cause I was like, oh, I'm gonna be bored all day. There's a lot of really exciting things. Yeah, a lot of eye candy. No doubt about it. Oh yeah. I love their TVs, I love their screens. The new Samsung phone is spectacular. Yeah. I mean, it was the first phone that wanted me to get, transfer off my iPhone and I ended up getting the little junior Samsung there. Oh no, it'll be interesting as they start to connect their platform together as all of these other developers start pushing the pieces of their strategy together. Remember, it's like, whenever you throw a strategy out here like this, it's like you have a big puzzle with a lot of empty pieces. I mean, the question I have for you is let's just close out the segment. What do you think, what areas should Samsung really be doubling down on or peddling faster, I should say, which should be developing faster? Is it the open APIs? Is it the cloud? And they got to get the open ecosystem going in my opinion, that's my take. What do you think they should be working on the most right now? Yeah, I mean, like, look, I mean, cloud is going to be really, there's a lot of competitors out in cloud. There's a lot of multiple, there's a lot of choices, right? Where I've seen them like really do well, I'll go back to the fact that I firmly believe that Google never really monetized Android, that Samsung did that a lot better. And so by looking at the different points in the market where they're good, I mean, their ecosystem is solid. I mean, yes, I mean, it seems like the sexy thing is Apple, but I've talked to several developers and I know where they make their money and they do a strong amount of revenue. If not equivalent to where the iPhone is, at least from what I've heard so far. The Android market share is not shabby at all. Not, so. Damn good. So they've been able to do this from that, taking that Android stack, applying that imitation and innovation on top of it, fascinatingly so. I wouldn't count them out for this and I'm pretty encouraged to see all the other aspects but I like the ecosystem build out, too. Rex, not grass, read, write, read my labs. Quick plug for you, what's going on in your world? Is there some recent activities happening? Please share, update. So that's great. So we just launched our IoT revolution event series where we look at the atomic unit of different markets and what that means is we find the real buyers and sellers, a lot like what Debbie Land, who I love, did. We had the buyers and sellers together along with the top series, A Startups, all around newsworthy issues. And so, whatever it's like, is it hacking and Russia? We'll get cyber security experts up and we'll talk about those issues from an executive point of view and that's the thing that's making me most excited because I get to have all these conversations with people. It will be on video, on stage. November 13th is the first one. It's a private event but we'll work out on anybody. It'll be in San Francisco, around 100 Broadway. So it's kind of a quiet thing but I'd love for everybody to come if you're interested in everything. It's quiet, I think, but I want everyone to come. Yeah, yeah. I'm not going there, too many people are going. It's like my parties. It's like a yogi bearer. Well, thanks for coming on. I appreciate you wrapping up. Day one of coverage theCUBE. This is Samsung Developer Conference 2017. Hashtag SDC 2017, that's what they're calling it. A lot of great guests today. Go to youtube.com slash SiliconANGLE for all the great footage. And also check the Twitter sphere. A lot of photos. And shout out to Vanessa out there who's helped us set everything up. Appreciate it and great to the team. That's day one wrap up. Thanks for watching.