 Okay, welcome back everyone. Live coverage, this is SiliconANGLE's exclusive coverage. We're here with theCUBE at IBM Pulse Live in Las Vegas. I'm John Furrier, the founder of SiliconANGLE. I'm the drug mic co-host, Dave Vellante, co-founder of Wikibon Research, wikibon.org. Our next guest is Wing 2, Vice President and Strategy, Product Management for the Cloud, Smarter Infrastructure for IBM. Wing, welcome to theCUBE. Hi, thank you for watching us. So Dave and I love talking about technology. You mentioned we interview back to back all the smartest people we can find, extract the signal from the noise, that's our mission. And one topic that's kind of not mainstream is ITSM, IT Service Management, and optimizing that in this market is challenging and yet an opportunity. So I want to ask you what's, how has the service management business changed with virtualization, compute, cloud? You don't hear about the old stuff anymore. It's like, the game's changed. I'm not saying it's dead, I'm just saying it seems like the actions in the cloud, there's all kinds of automation going on. What's going on with service management? It's a good question there because in some respects, with all this interest around cloud, agile, mobile, and applications that span all of this, it's really good, but you can't do anything without service management because really to get to the speeds and to get to the top of change that people are looking for, you really need service management. The difference is that the type of people using service management are starting to change, the people who influence it are starting to change. So you're getting what we're calling practitioners, like the developers, the operators, who are wanting to do things much faster. So they want service management, but they want service management at a much higher velocity, service management on speed almost. They want a service. Yes, they want a service and they want it fast. So that's where you want the big changes we're seeing. Dave, what's your take on this? Because we've been following service now. Service management has been like the cobbler's children, and because it's IT service management, it's like, okay, we're spending enough on IT, we're not going to spend more to make IT better because we've already spent a lot on IT. So it seems to have been a challenging investment profile for decades, one of those fuzzy ROIs. You know it's good when you see it, but to invest upfront, it's been a challenge for a lot of CFOs. So first of all, Wayne, do you agree with that? And what's changed? Yes, well, very much as you're saying there, IT, not just service management, but IT itself, it's really been in some sense a cost center. It's an essential part of organizations, but it's an essential part of organizations doing their day-to-day job. The change here is that people want to roll out new services, be it their mobile application, for example, suddenly, IT's really important. And because it's really important because it's able to help organizations generate new sources of funding, new revenue. You really now also need service management to also stop thinking of itself as just making things reliable, but actually helping them to deliver these new services faster. So how can I roll out that new mobile application really fast? How can I make sure that if I have three million users wanting to come on my site because my gaming site's really got hot and hit the top 10 list, how can I make sure that site stays up and that we can actually increase the capacity to encourage more people to come here? How can I understand the analytics so that I can say I can improve the service, make it more responsive and actually get more people coming here? So I think there's a step change now in how organizations can use service management to really start helping an organization innovate and get creative as opposed to, oh, we're just a cost center. So it's really a value play. Yes. IT becoming more aligned with the business value. I'm going to pick it back up. So your role, your product management, VP of strategy and product management for cloud and smarter infrastructure. And so specifically help us squint through what that is because your roots are in Tivoli, right? Yes. So there's a lot of Tivoli in that title, right? And Tivoli is just awesome platform. I mean, I remember when Tivoli was acquired, and IBM has done amazing things with Tivoli. So talk about the product suite that just a set context here for the audience. No, that's for what we're offering to do. So in terms of service management or what our group does, it's really, it could be described in three words. And those three words describe what it means to just keep systems up and how to make optimized systems and how to innovate faster with systems. And the first is for all the systems that you have and as you're running all these services, how can you get visibility? So we're all about tools that enable people to have visibility into their infrastructures and applications. How is it performing? Where are your assets? What are the dependencies? The next thing really is then, well, what's your business policy? What do you want to use with all those assets? So that's where we can have control. So we have tools that enable you to do analytics and understand what's happening with all those assets and all that performance information that you have, that you have available for your visibility. And the last thing is we provide tools that give you automation. Because if you really want to be fast, if you want to roll out new services, change those services dynamically, you're going to need automation. You can't do this stuff manually. So we provide visibility, control and automation and we do it for cloud environments. But it's not just cloud environments. Because the way the world is changing is that what's driving a lot of cloud workload? It's really things like mobile. And mobile we think about as smartphones and things. But it's moving beyond smartphones because like mobile is moving out to things such as trains, it's moving out to oil rigs, it's moving out to medical devices, the whole internet of things. So we're all about internet of things now. Yeah, how can we help the management of internet of things? Okay, so how do we segment the marketplace that you're involved in? How do you look at it? How do you segment it? How big is that market? This market space, in terms of the market we support really is the entire cloud industry. But for the market that we are actually in around the management space, we're talking billions. We're talking hundreds of billions is the size of that market space. And now that's laid out in different areas. Some of it's laid out in terms of the performance management and what we call event management or availability management. How do you make sure things are up and running? You've got tools that enable you to do the automation. That's another part of the market. Top tools that help you to orchestrate provision automatically. And then of course we've got tools that allow you to understand all that information around analytics, also security. And of course things like data protection. How can you make sure that you're resilient? So it's much more than change management and incident management. It's a very tiny slice. That's as possible. That's maybe a four or five billion dollar marketplace. You're talking about a much more proactive involvement in actually changing system infrastructure. And like I said, automation, maybe connecting to things like Chef and Puppet. Now what about this notion, you mentioned mobile a number of times. Is there an intersection between this smarter infrastructure and what we're hearing with BlueMix in terms of developing new applications, enabling mobile applications, particularly for lines of business? Very much so. If we think about smart infrastructure examples, one might be say a train operator as a good example, especially with train operators. They're going through huge changes in that. They're now adding instrumentation to their trains, to the signaling systems, and to the booking systems. So they now have a huge amount of information that they can use to help improve their business. So for example, you can imagine if you had access to the information about where the trains are, what speed they're operating at. And you had information about how many trains you had in the maintenance cycle of those. And you had information about their signaling system so you can understand where the trains are moving. You might want to attach that to, say, a booking site that would then give you differentiated pricing, depending on where people are traveling, where people want to go. And you might even want to connect that to another site that's about a holiday site that tells you about where people might want to travel for holiday. And with something like BlueMix, as you have those as services, you can connect them together so that someone looking at a holiday site might realize from connecting to a backend system that, well, actually, we can offer them coupons or discounts to encourage them to take a train to that holiday destination. And then we can see we've got spare capacity because we understand how the trains are running and combine that information together with some analytics and do much better targeting of those client-based. Wee, I want to ask you a final question now you've got to run to another meeting but I want to get your point. This used to be a systems management show, Pulse. Systems management has changed. A lot going on the network, network management in particular. What's going on the network management space? Is it changing? Is it because of virtualization? Can you see things north, south, east, west kind of traffic? Is it an opportunity? What's the state and the network management area? Seeing quite a few changes in the network management space, first of all, within the enterprise, a lot of interest around how to virtualize networks. So you're hearing about software-defined environments. In software-defined environments, it used to be people just think about servers. There's a lot of virtualization of servers. But then you realize that the real challenge when you have all these servers is how do you connect them together? Because as you move workloads around, you've got to move the networks around and people wanted to then start thinking about virtualized networks that would have an understanding of how the servers themselves were connected. So a lot of change, a lot of support needed for how to manage virtual networks. That's one area. The other area is as we move beyond the enterprise into the public domain, the consumer domain, we all use smartphones. I remember days when we were happy we've been able to just send a few texts now. Families are sending messages, sending videos, downloading this, downloading that. And people's patience for speed is very poor. And it's got security issues too. Oh, absolutely. There's tons of security. Yes, as people are now using them as virtual work devices. So they're in the wider space beyond enterprise. People are worrying about network on securities. They're worrying about speed on networks. And the telcos, they're looking at how to, they can make monetize much better of their network. Okay, final question. Top three concerns that people need to be aware of, the CIO or enterprise around cloud mobile and social, the new vision, the new landscape, the new normal that's happening for optimizing IT service manager. What are the top three things they should be paying attention to? I would say in the cloud space what they really need to be thinking about is as they move towards their evolving the cloud usage it'd be around hybrid. So do they have the technologies that enable them to manage a hybrid environment that's going to be dynamic? Because they're going to be moving work from place to place depending on their business needs. So hybrid dynamic clouds. In the mobile space massively growing opportunity to engage with clients, engage with their employees. But what they need to think about is how can you do that whilst keeping management of it? How do you manage the security of it? Because you got opportunity, you need to be able to empower the opportunity. And then the last thing is from a service management system management perspective you've got all this data that we've been collecting all these years that we've been providing. Think about the analytics we can pull together from that and the insights to see how you can re-optimize these types of environments. It's as if the IT service management business is up and being transformed just like everything else but it's like changing an aircraft engine while it's in 35,000 feet. A lot of important new changes, a lot of new dynamics. Wing, thank you for joining us. I know you're in a tight deadline. Appreciate your thoughts and your thought leadership. Thanks for sharing the data. This is theCUBE, extracting the signal from the noise. I'm John Furrier with Dave Vellante. We'll be right back after this short break. Exclusive coverage from IBM Pulse.