 Live from Orlando, Florida, extracting the signal from the noise, it's theCUBE. Covering Enterprise Connect 2016. Brought to you by Oracle ZDLRA. Vonage and CafeX. Now your hosts, John Furrier and Peter Zantesonio. Okay, welcome back everyone. We are here on the ground for special Enterprise Connect CUBE coverage. And I want to give a shout out to our sponsors, Oracle ZDLRA. Remember that name, ZDLRA. Zero Data Loss Recovery Appliance. That's Larry Ellison's pet project and he named it, according to some of the Oracle folks. Thanks to Oracle CafeX and Vonage. Without your support, we wouldn't be here. This is theCUBE on the ground. I'm John Furrier with Jeff Fairbanks with Bloomberg. Welcome to theCUBE. Thank you very much. Pleasure to be here. So you're in the video space. You know where it has come from, where it is and where it's going. And one of the most exciting things is video is everywhere. Videos on the phones, you got user generated content, Snapchat's valuages off the charts, all kinds of editing stuff happening within the software, much more interactive. You see what Facebook's doing with Oculus Rift and Virtual Reality. We're moving from this broadcast model to a broadcast interaction engagement model. What's your thoughts? I think the bi-directional, first of all you hit the nail on the head. The bi-directional aspect of video is really, it's an infancy but it's so exciting. The sense that the end user, the consumer, now actually is the producer, right? Can actually add content and add value and do that in a real meaningful way. With high level of production value, if you look at the Netflix model, for example, where the distributor is now creating the content off of the major broadcast networks, and then third-party independent firms can create their own content and publish that and get real distribution for the first time in modern history, it's truly amazing. Yeah, and the new ones about Netflix, too, is that they started out selling, putting DVDs in the mail, now they're on the Amazon Cloud and now they have huge efficiencies. Yes, well, I mean that's where you're seeing the convergence of the IT space, the video space, the unified communication space where cloud is, it's a catchphrase, it's a catchphrase and it's a meaningful thing, but really it's actually, it's a tool that's enabling so many other, what you would consider disparate organizations to come together and offer value to consumers and end users that was never possible before because of the scale. One of the things that we talk about and we do theCUBE is we look different, we act different, we actually program differently, but we actually are always thinking about production values and we were talking before you came on, that's your wheelhouse, production values mean something, but they're changing. You mentioned the consumers now are part of the production process. So if you believe that we're all connected, and we are, we're unifying, we're connected, we're internet of things, we're people, we're things too, they're part of the production process. So the question I have for you is, what is that production value when you include the crowd because you can't control it sometimes? How do you maximize that value? Well, I think that's really the engagement, the engagement of the audience is really where you find the value in the content. The old model was, I'm gonna create the content, we're gonna sample it through a few different people and then that's what's gonna be consumed by the masses. Now the masses have a real genuine and a say in the creation of the content and the deepness and the depth and breadth of the content. So that, the ability for the end user, for the consumer to tell, to give direct feedback to the creator of the content via text, via, you know, creating their own scripts, being able to, it almost goes back to, I don't know if you were young, you ever read the mystery books where you could pick the page to go to and then based on what you wanted the outcome to be, you could go to that, that's where we are but in real life, in a real time. It changes the clock on what you do on production because now you can't be consistent, you've got to be ready and agile. Absolutely, no, no, the agility is the key. The agility is absolutely the key. One of the things we're looking at at Bloomberg and one of the things we're writing ourselves on is a video-enabled platform where from a mobile device we can go out into the field, our news reporters can capture news stories themselves. No longer do I need a sat-truck and a videographer to go with the reporter, we can embed them in very precarious places and get real genuine stories off the ground because of their ability to be mobile and agile. Well, that's the job of the reporter. They're out on the trenches, kind of like we were here, they have phones. This camera's built in, it's got HD. The microphone is amazing now. So this isn't a great example. The old way was, that's not our workflow. Now you can do anything, you can be agile. How are you guys doing that? Because that is a real challenge because that is the unified communications in practice. Yeah, I mean, I think it speaks to the various mediums that we're in, we're in radio, we're in television, we're in print news. So we're in all the major traditional news venues but we're constantly expanding our online presence. We're constantly reaching out and asking for content from our consumers. We're constantly interviewing, we're doing what you're doing. I mean, this is a great example, right? You're able to be on the ground with the people in the industry making a difference and you're able to ask people at the very inception of great ideas. I mean, you're sitting on the floor at a place where conversations happen and new ideas spark and you're there capturing that. That was something that the traditional news media model could never have been able to do in a real substantive way. And you've got things like Twitter, which are in the moment communication vehicles. You've got Facebook, which is like your living room. You've got LinkedIn for your job resume. All these social networks are now, it's going to be a zillion more. I'm sure you guys have a social network. No, absolutely, we do. And we take advantage of the ones that exist currently now whether it be LinkedIn or whether it be Twitter. I mean, what we're seeing on the social media side and what we're seeing in the industry is no longer do we as a broadcaster have the dominance in the conversation, right? The dominance of the conversation was the broadcaster decides who's on television and what the degree of the content is going to be or the sponsors decide what degree or what avenue the content's going to travel down. No more, no more. And so it's truly a marketplace of ideas where the best ideas, the most insightful ideas, the most exciting ideas come to the surface and there's nothing that can stop it. That's what makes it so amazing. And that's a great point. That's also the competitive advantage opportunity because the best ideas win if the people aren't getting what they like. They can always go so much because it's competition. Exactly, and I mean, without being overly patriotic, that's the brilliance of the American model, right? It is truly a consumer-based economy where the consumer wins and the best product does rise to the top. But I mean, you hit the nail right on the head and I'll leave with this. Where we are right now is such a pivotal, and we can always say this every year after you arrive but where we are right now is such a pivotal concern because for the first time I think in the history of the world, right? You as an individual person, I as an individual person can distribute our message to the masses. You had the Gutenberg printing press, right? You could print, but you had to be able to read to be able to consume that content. Now with video, it doesn't matter what language, it doesn't matter what age, it doesn't matter how much money, the barrier to entry is at a price point where just about everyone can participate and that's truly a democracy of ideas and that's when the best ideas and the advancement of humanity can happen is when everyone's voice can be heard. We've had Matt on from Bloomberg and to add to that first time in the history of the world effect is now you can measure everything. So not only can you broadcast to the masses the advertisers who in the past was, 50% of my advertisers was wasted, I just don't know what you have. Well right now you can measure everything. And this is the beautiful thing, you can measure it and you can understand it, the consumers are now involved, it's a complete model that's been flipped on its head. So it's a really amazing thing. It's a virtuous thing. So I got to ask you the question about this event. We're at Enterprise Connect. This is the central show around unified communications and I'm just going to say it. There's a bunch of old companies here that have been around doing unified communications in the PBX's, the voiceover IP and I interviewed Vonage, great company and they disrupted the voiceover IPs, the telcos, the incumbents, the ILEX and they kicked ass on residential now they're going and doing the same thing. But you got to be competitive. There's going to be carnage on the dead bodies if people don't adapt over this new world and now unified communications for the first time that I've seen with mass scale is shifting to a really, really explosive opportunity for growth meaning chat, video, voice, software, mobile, cloud, all coming together at one time right now. Do you agree with that and if you do what would you share and add color to that and why this industry is going to transform? No, I agree with it wholeheartedly. I think that what I see in some of the legacy players and even some of the big players that are dabbling in all the spaces that you just mentioned, my concern is around what we just talked about customization and being driven by the end user, by the client, by the customer. I'm seeing, especially in the cloud space, that there's some big players that are offering these great tools and they're saying, hey, take it as it is and yeah, we've got APIs but when you look at the API library, it's not that deep and when you look at the SDK availability, it's not that deep. Well, the documentation is half complete. Or the documentation is half complete. Half of it's because it's such a moving target but the other half is because it isn't fully baked and what we will find is what I truly believe and what we will find in the industry is that what I want and what you want could be two fundamentally different things and the idea that one size fits all no longer applies because I have the ability to go and do it myself or to find a smaller player or more agile player to do it myself. So being the big dog in the room doesn't matter. General purpose software is not going to work anymore. I mean, what the iPhone did that was revolutionary and Peter Barris works for our team, quote a coin this back when it came out was, it's a computer that has software that allows you to make telephone calls and that essentially wasn't about the phone call. It was about the computer and the apps that happens to run phone calls. That was a revolution of the iPhone. And to further that, the idea is that it's a platform that Apple didn't say, okay, we're going to make every aspect of the ecosystem for this device. Rather, we're going to let developers go off and develop how they want, what tools and resources they want and we'll just use this as the jump off point, the platform, the medium to which you can consume those various apps. Apple didn't go and make a compass app, right? There are 300 other independent little guys in their garages that make compass apps and you as a consumer can say, you know what, I like compass app 127. I don't like 128 and that freedom, that ability to consume exactly what you want. 100 billion downloads on the Apple app store, 100 billion, I saw that quote from Apple. This is the revolution and this is the thing, general purposes get. So here's the final question. What advice do you have for startups out there that are the new disruptors? Is a new class of disruptors coming out? And the big guys are also evolving. So I'll put a two-part question. For the startups coming in, integrating into the enterprise, which is consumerization now, how do they compete? What do they got to do to be successful? And how do the big guys need to adapt? So the small guys, by the very nature of being small, they're more able to be guided towards whatever direction, especially if you're a larger enterprise and you can kind of like a Bloomberg, we can kind of push our influence down on those smaller firms. But the ability to stay agile, kind of following the almost the Salesforce model of, there really isn't any piece of customization. If you go to Salesforce, right, you're buying a frame and you can pretty much plug in whatever you want into that frame, right? Same thing on the smaller side. The large guys, they need to get out of the way of themselves. If you have a large firm that's completely focused on the revenue stream from legacy systems and they don't want to cannibalize that revenue stream, so they don't advance great ideas or they don't advance trends because they're worried about what's going to do their existing revenue streams, they're going to constantly fail because the speed, the cycle, right? The business cycle of innovation, that cycle is shrinking, smaller and smaller. It's faster and faster and more relevant. And so trying to have a cash cow in this industry will not work, will not work. You've got to stay agile and stop worrying about your legacy systems and start worrying about what you're doing now. So final question, this digital distribution concept or digital transformation is real, true or false? It is real, it is real. All right, we are here at Bloomberg, production values, real influence, digitization, the crowd is in control, of course the media's changed all unifying. We're at theCUBE unifying it all here on the ground. Thanks for watching. Thank you.