 It's technologists, it's customers, practitioners, so they get a full perspective that's unfiltered. The benefit of the Cube is a place for conversations with people to connect with each other and to learn about things. And it's a revolution in media. We look at the technology and the people behind it as tech athletes. Those are the folks making the companies, making the technology, really creating the new value in this modern era. And it's fun, it's exciting, and more importantly, it's very social. These days, with social media, people looking to not just read articles, which are great, and obviously SiliconANGLE does a lot of that as well, but being able to see high definition video, very intimate interviews with entrepreneurs and operators, innovators in the industry, I think is really important. So the job you do in getting this out in a very timely way, I think is really important. We always know that your view is right until you hear a different perspective. So you're always interested in giving some neutral perspective, help you see it from a different light, and maybe ask a hard question or two that I might not have considered. You know, in that sense, that independent voice, that's always ability to have an independent, audited perspective right up the world. It's always just good. theCUBE has been called the ESPN of tech, and really our vision is to cover every event that's out there. We really, truly want to be a global organization that is at every event, extracting the signal from the noise, being on the ground, giving our audience a sense of what's happening at that event, but also providing analysis and insight worldwide, literally, for every event that's out there. You know, I love it. I was actually telling John and Dave, every time I come back to theCUBE, you guys have new toys, new cameras, everything's getting bigger. So, you know, having been on it for several years, almost from the very beginning, it's always great to be back, and you know, you guys do an amazing job, so it's wonderful. It's about connecting with people, and that really is what it's all about. Having the conversations in a very social, collaborative way, and that's what makes it so exciting, how people are watching. First time on theCUBE, baby, rock and roll. It's probably five or six times I've been on theCUBE now. At first, the guys are just fun to work with. Pat, welcome back. Hey, always a pleasure to be on theCUBE. Hey, I'm about to go on theCUBE. You never know. A three-time veteran of being on theCUBE. I hope many, many more. Chad Sackets, Chad, welcome to theCUBE. Dave, John, it's great to be here, man. I keep coming back because great, insightful questions from John and from Dave. What face-melting action have you seen here at the event? And I know there's a lot of it. It's a great vehicle to communicate with a broad audience, a lot of folks watch. Great to have you back. Good job. All right, Craig Nunez, VP of Marketing at HPStore. Thanks very much for coming on theCUBE. When people mention theCUBE, they're like, oh, my God, I saw you on theCUBE. And they're all excited about it. It's an experience. It's not just information. They experience kind of what's going on there. It's like real-time. It's like they were there. That was like going to the gym. Legendary IBMer, CEO of Symantec, and now CEO of Virtual Instrument. Great to have you on theCUBE. So for theCUBE to be here at a conference like this, it's got 15,000, 20,000 people and sharing that live around the world, that's consistent with the way the world is evolving. So it's a wonderful meeting. John and Dave are amazing. I don't know how they keep everything in their heads the way they do. It's a great format. And we're obviously seeing that this notion of real-time coverage and a real conversation is what's driving us as a company. And I said very seriously when the questions and the comments that we hear from them and from all the different guests here directly turn into the products that we build. Yeah, that was my first CUBE. And I really enjoyed it. There was the rapid tire of questions. It made me think on my feet. But they were very thought-provoking and really got me going on analyzing the greatness of Rista and the greatness of theCUBE as well. John and Dave, the reason their approach works, they're not just guys, you know, reading down the question list, right? Okay, next one, next one. It's a conversation, right? And it's, you know, they're going to challenge you. They're not going to settle for the marketing hype and the BS and all that stuff that the industry throws around. Come on, you got to hit them up on the HP question. A lot's changing HP. Some turmoil at the top, obviously, controversy. They're going to hold you down to the real facts, compare you to the choices our users have and have you respond to it on the spot, right? Thinking real-time. And so that's real talk, not just kind of a paper interview. I'm John Furrier with SiliconANGLE.com and I'm here with Dave Vellante. We are inside theCUBE. theCUBE is our flagship telecast. We go out to the events, extract all the signal from the noise and share that with you. And great guest lineups. We've got CEOs, CTOs, all the top executives, bloggers, thought leaders, venture capitalists. I'm absolutely stunned by, because I know it demands 100% attention for these guys to be up there and talking to people about a wide variety of technology topics. I can't believe these guys can make it so many days in a row. So I'm wondering how long they're going to go home and pass out for after this. But it was incredible. They just do a fantastic job. If you're not having a conversation, then you're very scripted. And if you're scripted, then you might be getting the right words, but you're often not getting the whole meaning and the whole depth of the conversation to the fullest extent. I think this is a heck of a lot more authentic. It comes straight from the heart and the brain. Sometimes you might forget to make some of your points if you're not a real-time thinker. But I think both from a participation and from a consuming point of view, it's much more real. Chris holds no punches. So I've been on theCUBE a number of times. And I think the interesting thing about being in that particular venue, in that format, they introduced me as, hey, Poff doesn't pull punches. Well, they don't either, right? They ask really difficult, uncomfortable questions sometimes. And you can tell people and the positions and where they are in terms of what they're able or desire us to speak of. You can tell where they are on that borderline between kind of just honestly answering questions versus kind of glossing over them. And I enjoy being there because I don't want to say I'm outspoken, but I honestly answer questions with the full intent of being able to be respectful to the people that I bring solutions to. Right? If I whitewash this crap, you're going to turn me off every single time you see me on any venue, let alone theCUBE. So I like being asked tough questions. I like answering them honestly. And that's a fantastic venue for doing it. Otherwise, you get on panels and you get a bunch of talk and hands blabbering at each other and it's worthless. Now, this was my first time on theCUBE and I really got a chance to get to know John and Dave. And they're really amazing guys. I mean, the knowledge that they come with, the topics that they could talk about, the people that they know, and just bringing it all together in this live broadcasting forum, it's just fantastic. I just love it. I feel like a groupie or something, you know? In this environment, the social environment, the real-time environment where we're in, people look through the marketing fluff very quickly and if it's not authentic, they don't trust it anymore. In this environment, I think it's a growing trend. Yeah. A lot of things from a trip around the world, but you can't always bring back customer data because many customers don't like it when their data moves around. If you're going to do business globally, you need a cloud that can keep your data where it needs to be. Today, there's a new way to work and it's made with IBM. Hey, this is Brian Seraven, director of digital media for the San Francisco Giants and you're watching theCUBE. Hi, I'm Dan Gordon, co-founder of Gordon Bearsh, and you are watching theCUBE. I'm from Henland, senior analyst at Technology Business Research, and you are watching theCUBE. I'm Dr. Randy Fagan, the Chief Administrative Officer of the Texas Institute for Robotic Surgery at HCA, and you're watching... Act 1, scene 3. Open port 22017 on the firewall for customer DB access. Install version 2.3 of DB Connector and ensure the boast flag is set in case of problems. Isn't the cloud supposed to make business easier? Get the one that can connect to the systems that you already have. Today, there's a new way to work and it's made with IBM. This is a burrito made with chocolate, soybeans and apricots. What kind of chef comes up with this? A chef working with IBM Watson on the cloud. Ingredients are just data. Watson turns big data into new ideas. And not just for food. Watson is working with doctors and bankers to help transform bear industries. Today, there's a new way to work and it's made with IBM. Cute little guy, huh? This guy could take down your entire company. Stay with me. On Thursday, a hamster video goes online. On Friday, it goes viral. A network choking phenomenon. Why do you care? He's on the same cloud as your business. The more hits he gets, the slower your business may get. Do you want to share your cloud with a hamster? Today, there's a new way to work and it's made with IBM. Hi, I'm George Matthew, president and CEO of Altrix, and you're watching The Cube. I'm Dmitry Zemin. I'm the CTO and co-founder of Stackstorm, and you're watching The Cube. I'm the vice president of product strategy at QLogic, and you're watching The Cube. Hi, my name is Ben Jones, senior product manager of Tableau Public, Tableau Software, and you're watching The Cube. Hi, this is Francois from Tableau and you're watching The Cube. I'm Chris Ellen, VP of Business Development for HP Big Data, and you're watching The Cube. Hi, I'm Stacey Slaughter, senior vice president of communications for the Giants. I'm in the garden at AT&T Park, and you're watching The Cube. I'm Thomas Minick, business intelligence consultant within our works, and you're watching The Cube. Hi, my name is David Tishkar, director of partner marketing at Cloudera, and you're watching The Cube. Hi, I'm Jim Yu, founder and CEO of Bright Edge, and you're watching The Cube. How do you feel? You're watching The Cube. How do you beat the number one seed? You just have to win 70% of your points in net and keep unforced errors under 10%. On the IBM cloud, the US Open analyzes 41 million data points from eight years of competition to uncover key insights. Data can help show you how to win, no matter what business you're in. Today, there's a new way to work, and it's made with IBM. Location. Location. Location. It's wherever this is to get customers to come here and stay here You're gonna need an app that connects to all your systems so they can bank shop do what they need to do And you got to do it fast before the competition does You better be on the right cloud Today, there's a new way to work and it's made with IBM I think what I've come to find I think my second time on the cubis I mean, it's just such a real-time high-energy experience. It's very good because There's no filtering of questions. I was not prepped other than saying go and get up there It's like this part of the experience. I think what you're gonna get is the real answer. You know, it's not scripted. It's authentic It's you know really allows you to communicate with me, you know your point of view Well, who knows what they're gonna ask you so I thought it was great. I didn't know what the questions were ahead of time They asked some good ones. I think some ones that if it was an unbiased thing I mean a biased thing. I don't think we would have got and I think that's what people want They want those questions and it's hard for us sometimes to ask them on bias because you're biased by nature So it's it's great to get those questions and be able to ask them. Like I said, you know, I love the energy I mean these guys ask good questions and obviously not only them It's the Twitter feeds coming in from questions from the audience So sometimes it's the question nobody wants to ask but they're thinking so it's good It's a great way to core sort of you know answer those tough questions It gave me an opportunity to hopefully share with the people watching You know some of why we're doing what we're doing Most of us admit to being overwhelmed by informational work, that's why IBM created verse It uses powerful analytics to uncover hidden patterns in your email calendars and social feeds It continuously learns how you work and helps you prioritize the people and projects you need to focus on There's a new way to work and it's made with IBM I have the conversation with guys who know what's going on Who can you know kind of scratch below the surface who can you know respond to what's happening right now on you know A Twitter feed about maybe some technology that's in the marketplace and respond and have a conversation So these guys bring an incredible wealth of knowledge from their own careers They've been into a lot of different things in the industry and they're independent You know they're able to bring different points of view and you know sometimes they ask really tough questions to the kinds of questions And maybe you don't want to answer and so but it always gets to the heart of it, and we just love having you I think the Cube you guys always have very thoughtful questions Really insightful comments and it actually makes it really fun What the Cube is you guys get I mean bottom line is we can talk about high-level strategy We can talk about execution We can talk about competitive and market and it you know what I like is the interactive banter back and forth Plus the fact that you know when I think about some of the conversations we have they're not only deep They're not only rich, but the audience themselves will really come to benefit from those conversations. I mean these guys are great I think this is a revolutionary form Up till a few years ago. I've never seen this in my entire career These guys are great interviewers. They're spot-on. They're sharp. They're funny to work with and they just ask great questions So it's a real pleasure to be on the Cube It's really great. What's so neat about it is it's like real-time discussions and also just being able to have people share Their views simultaneously, so I'm I love it. I think it's really fun It's a great way to you know get the message out and to have a dialogue I want folks out there to understand the depth of the technical inspection It goes on with you guys. It's it's deeper than you know most analysts we talked to right I mean so we roll up our sleeves. We'll spend a half a day on the hot new technology instead of the you know PowerPoint I believe it goes on a lot of time in our industry, so it's you know It's you get a perspective from the queue that is Live from Las Vegas, Nevada, it's the Cube at IBM Interconnect 2015 brought to you by headline sponsor IBM Okay, welcome back everyone. We are live in Las Vegas for the Cube here at Mandalay Bay for IBM Interconnect This is part of the ghost social experience part of the big conference We're bringing social media social business social social content. This is the Cube our flagship program We go out to the events and extract the civil and noise. I'm John Furrier the founder of Silicon Angle So my co is Dave Vellante founder wikibon.org Our next guest is Stefan Berber VP of engineering Bosch software innovations. Welcome to the Cube. Hello Thanks for inviting me. Thanks for having us. We're live. We're pumping it out all around the world So first tell the folks out before you get in some of the conversation around a minute of things cloud What all this is happening? What's Bosch software about what what do you do there? Obviously VP managing you can manage coders and all that good stuff. What are you guys doing? What about Bosch and then look and get into the conversation? Yeah, we founded the software and system house within Bosch in 2008 to Enable us in the Internet of Things conquer this world The software innovations is providing a software platform for Bosch business units to connect their things their product to the market But we also offer this form third parties for partner business and as we believe in an open platform approach We also believe that IBM and us will play important role in the future So talk about the company global in size presence. So all around the world certain geographies is the consumption model regional global Explains for that. Yeah, we are growing by acquisitions now Actually, we are in the third phase of another acquisition. We just announced a Monday So it's just a week ago. We started 2008 with a company in Germany in Lake Constance Very nice place by the way if you go vacationing there should be there then another Java company in Berlin Now we bought a company located in Cologne in Sofia and we outreach now to Chicago here in the US In Singapore is our Asian hub. We have also an office in Shanghai, though. We're still a startup with around 600 700 people We are Really start up amongst these nearly 300,000 employees. It's just a small entity in the This is the question that everyone's never mind But I think big companies act nimble and agile like small companies and like small companies feel big is kind of the theme of This new way cloud powers that yeah, but one of the things that we thought about in the Cube is this global Consumption the need to be global from day one. Yeah, global first is a term. You know, we call it here in the Cube Mobile first kicked around cloud first, but global first. What's the global view from a engineering standpoint? Is it challenging? What are you guys doing? Well, IOT if you look at the markets is strong in the US It's strong in Europe and strong in Asia So if you miss one of these markets, you have trouble from the early beginning So you need some footprint, of course and with our brand. We are of course strong in Germany and Europe But we also see a lot of traction we get here in the US and then Asia is also easy win as we are very strongly growing there So IOT I mean, it's it's so big. I mean it's so touches so many parts of our lives So in that sense we can relate to it on the other hand There's just so much to it. So how does Bosch look at the Internet of things? Maybe take us back to the sort of beginning of when you guys started making it. It probably wasn't called IOT back then I mean pretty early quality that way Internet of things and service was a first. Yeah, okay We skip the service. So what what time frame is this? The initial discussion internally we had starting 2005. Okay The question was what would happen if all our Bosch products are connected to the Internet? How this will change our business? How we have to adapt technology wise? And then we had a long discussion to is are we going to do this ourselves with the software? We have a lot of embedded software out of these 40,000 engineers where we have 15,000 software developers in the Bosch group but most of them do embedded work and IOT is is embedded, but it's much more. It's also distributed networks It's Java development JavaScript. It's web pages. It's databases. It's M2M So we thought okay, we have to have a footprint in this market. That's why we started our own company Understanding this business. So the early discussions back in the mid 2000s. What was the impetus? Was it predictive maintenance? Was a consumer behavior? When you know at what point in privacy inject into the discussion. Yeah, yeah the We have a very generic view on that each product is associated with the service in the future It can be predictive maintenance. It can be improving the product It can be even linking this product to others with new functionality behind So we see ourselves to be also a service company in the future and is software as a service aligned with the product and predictive maintenance is I think the no-brainer you can see in particular in production and Expensive assets on the road, but there are many more making things easier to use Understanding how people using your product is also motivation Insights yeah insights from from that and if you look at the market of insights How people are really using things is a bigger market than advertisement and so there's a lot of opportunities out there If you have the data on the connectivity, so the idea of germinated say 2005 How did you get in then you made the decision? Let's do much of this in-house? Yeah, maybe do some partnerships, and I'm sure you had some open-source discussions So okay, so what what came next is okay now let's get a team and yeah, we see some experiments We started in some verticals to to be early mover One where did you start? We started with a project in Singapore in lecture mobility. You see if you have electric cars charging station drivers This gets a way of charging station you have to park and charge the same time you need reservation unit billing and payment Okay, that's a good thing for a startup look at smaller projects where connectivity is a must you cannot do this differently And we won this project in Singapore to provide the infrastructure and from there we gained so we did the first Installation of our platform we learned from that then we acquired another company that brought BPM Along with that and because we know that a lot of processes being run automatically and if you do if you collect sensor data, so we produce Three and a half million sensors every day if you consume this manually with people there's no way You need really automated processes in the backyard to take over the data make business sense out of that and this learning Yeah, I think we'll continue Each project we do but the good thing is we have product out So there's a heating system being connected since 2009 with an with an iPhone app is also Lawn mower Robert lawn mower coming to the market just these days if electric bicycles being connected So there are many products already in the market where you can see IOT make a change already So at some point somebody said well, how are we gonna make money at this? What's the best business model? It's interesting part for companies who use to build products It's a change in business model because the service alone. You cannot really pay upfront You have performance-based pricing or fee or Subscription these are the business model usually suitable for these kinds of products traditional companies have their problems with that and that's why we started a lab at the Hochschule Sankal in Switzerland There's a real expert university on business models and IOT and there we have now 10 PhD students They write a thesis and their goal is to start a company with this business model So we combining this is also that pushing pushing our organization to new business model with these expertise So so specifically how do you make money in IOT business? Is it a subscription? Yeah, the description is something usually always have in there But we see that we have to grow with our customers So that is a risk-sharing also behind this So we have business model on the numbers of things being connected the numbers of transactions You have so once the growth is coming and our customers also making more money We also been taking more revenue out of that. This is I think the general pattern. So it's kind of an elastic. Yeah Pricing and revenue model and the traditional model that I get all the money when I sell the product I think this will die sooner or later Now what about open source? What where does open source fit in? I want to talk about anything you do might be doing with IBM there Let's start with the open source question Open source plays an important role. We believe in an open platform They doesn't make sense to build the Internet of Things platform for Bosch It should be for all things around on the planet but we want to have some Some ways of steering the development of this platform We want to co-evolve this with partners and of course in a strategic point We want to know what's going on like privacy. We want to know where the data is We want to know how the policies of data Combination and Yes, that's why we believe in open source as a business model also But also we open we have a lot of open source technology in our software anyhow We are a member of Eclipse. Of course most of our gateways Linux operated We are a Java company and this I also assume is part of the community based programming language and This is a lot of Similarities with what I see with also the IBM We are strong strongly founded on OS GI technology. What's something IBM has been doing for many years All of our tooling is basically heading to Eclipse in automotive but also for IOT tooling and Eclipse plug-ins are just the way to go So talk more about your relationship with IBM I mean, I know boss big company to you by a lot of mainframes from IBM But specifically as it relates to the the software side of the organization. What do you do? Yeah, so One of the areas that is interesting to look at in the embedded world is that if you build embedded systems They are a lot of variants of each other Usually we build platforms and out of these platforms We derive software pieces and engine control software is an excellent example There we produce 20 million engine control units per year and They go to different customers each customer have different car So we have 400 projects and parallel running being supported by three and a half thousand wash engineers and this to manage this with With software configuration management collaboration and this 1500 variation points behind this this is done with the IBM product line engineering solution PLE And this is really co-evolving activity our work in product line IBM's work there We co-innovate basically this product and we're happy to help IBM to bring this to other companies in the automotive domain As we see that if this effort is spreading around this also helps us Co-operating with our customers and partners. So when you say co-innovate, you mean you bring engineering resources IBM brings engineering resources. Yeah, and you create solutions Actually, although the new features in PLE are derived together I wouldn't say that all the features coming from Bosch But I think the most innovative one they you providing and knowing what's important in that business I think it's a key value for your folks at IBM So how does this all translate into? Actual activities in the business of Stefan if I had to say look at look at bosses enormous company huge product portfolio How much of this portfolio is internet of things enabled? Oh, okay as of today And where is that going? I will see you all mr. Dana is very clear on that You want to see a plan for each product when it's online? It's not a question if it's just a question one at the right time. Okay, and if you look at some very Tiny or very inexpensive products the time is a little bit later But if you see at the important assets, it's much earlier like our robot lawnmower It's around thousand dollars. Of course, you can make this an online experience. I connect this to iPhone. Do we mode? Motely start your lawnmowering setting up calendar times when it should more and it shouldn't depending on weather And all these things you like as you don't like to spend the time on your grass So this is there already here and some other products I think maybe five year five more years, but you don't know you hit the infection point and internet of things and We are prepared we're just waiting for when it's the right time for a product business-wise to go online and then we We go out and what about we talk about privacy a little bit before Couple things well first of all you're in Germany was very strict about where data can go We have to leave all the data But but how are you handling? Privacy is it an opt-in model for the consumer for example your lawnmower example? How does that all work? Yeah, we want to make this very transparent. We believe that trust is an important Ingredient internet of things or this will not unfold if people do not trust these systems and they'll be handle their data in a trustful way Then there's no innovation. There's no data and then there's no value behind So we allow each customer to decide which kind of data they want to share with us in which they don't so this is very transparent to them Of course, then some business model are not possible like sending advertisement To them is not available anymore Which is okay for us because we believe that the product and the service itself has its value and It's basically price and if you do something on the side Okay, you can do that But it's not the main purpose of our business our main purpose is invented for life And this is improving lives of people on not sending advertisement to people that they didn't want to see so So are you doing anything with them? Talk about data a little bit. Talk about that. You know, we were just that The Hadoop world last week. We've been doing Hadoop John and I and the Cube for a long time Focusing on an area. What do you what do you do with all that data? Are you using? Things like Hadoop Where does that fit into the whole strategy? Yeah, storing the data is an issue by itself We use all kind of technology. So if I look around I'm always amazed that I find something new so we have of course I do we have MongoDBs running around we have IBM databases Oracle databases So basically it's a variety of data storage and each of them has its own value Like if you go to no sequel databases, MongoDB is a good example. Yeah, you of course we have that Well, one thing is to store the data. This is actually the easier part Taking out the data and making sense out of that. It's more difficult part. We have a partnership with nine. That's a small company Located in Germany and Switzerland and the US For an open analytics platform To make more value out of the data because in the end it's not sufficient that we only have this highly skilled data Analytic guys who can make sense out of the data. We need both Yeah, five million IoT developers to do all these applications and they must be able to do analytics in the daily base And that's why we are looking for this Swiss army knife of big data analytics So that 80 or 90 percent of the big questions can be answered by a typical engineer and all they did very tough and more The last maybe one or two percent to go to that analytics people so John and I always talking about the developers as You know the the lynchpin. Yeah, how are you? What's the message to developers? How are you attracting them? You got publish an API? I mean we could talk. Yeah, we just published in December eclipse IoT project called water. That's the interface to things That's an approach where you generate specific platform drivers for Frigurator security camera or car based on a common abstraction language We see there's some traction behind we just announced this in the eclipse conference in Ludwigsburg last year And we see that a lot of company jumping on board and I hope also IBM is joining us I love discussion here on the conference about that They haven't seen this yet. So it needs a lot of education but I Think this is a way we go that we have one common API to all things This is what openness really means and then all the developers They don't have to care whether there's a Bosch device or a GE device or somebody else They can start doing the application so choice for customers is a big thing that comes up So, you know cloud is great, but it's happening in the open blue mixes developing fast What do you see for a cloud me open stacks out there? Can you comment on infrastructure as a service platform as a service? We're the work areas that you think you need to get done to move the ball down faster Towards getting to the goals and customer outcomes the infrastructure as a service We rather source from somebody so actually we we are agnostic there We just need the resources of course we need the network we need them Storage and also the compute on platform as a service We are adding some ingredients that are related to managing the devices out there Having security there and also you have some nice technology about rules engine We bring this in there and also we have VPM technology we think we can leverage there and then on top the real innovation happens in software as a service something a V2C Consumer is really interested in to to buy as a fee or performance based pricing or even V2B customers like predictive maintenance for a specific machine Integrated into the business process. This is our main revenue source on that stack What is systems of engagement mean to you that term? Actually internet of things could be a probe a sensor a human being a mobile device real time What's some of these concepts? Yeah, I said translate down to what's under the hood Yeah, if you look at the whole user experience world It's so interesting now because you have a smartphone maybe a variable you have a computer screen Laptops PCs you have an operator and you have the thing itself. So there are so many ways you can interact With the service and the thing it's a little bit indistinguishable in the end and the whole industry design computer UX UI stuff is all comes to a new arena And making this a seamless up to somebody you call the operator and the operator is able. Yeah, I know your devices here It's in this situation Getting this as one smooth user experience. This is tremendous task for for engineers and also designers So this is something we are working on we want to push our brand in front because this would be seamless How do you handle the cultural shift that's happening with? Companies and then employees and engineers where the the new theme is open source is all out done in the open But you got a business that has made my some legacy and also getting engineers closer to the customer action It used to be keep them in the back room Design Iteration agile design not just being graphic design, but like design and customer experience with real time There's real sensitivity towards relevancy and fast. It's fast time to value So how do you how do you deal with that? Like you give them training you bring the engineers out in front of customers Is it a mindset? How and and if Do engineers get close to the customers and user experience is a lot about mindset to be a sort of own Academy for this topic if you're going through trainings This is something but I think it's rather the awareness training that it's important the way you do it You rather do this in the concrete projects and having success in the concrete example like in our e-bike situation We have a very nice navigation computer now It's called neon and if you see this everybody within Bosch understands Yeah, this is the way we should go and this is how the lighthouse projects that steal the whole company forward What about what about blue mix? What does blue mix mean to you in terms of their evolution? Where are they in their journey? A lot of times develop is like well I'm comfortable with Amazon if you're born in the cloud or if you're in the data center No, I don't want to do the cloud security. Is there new things that you see that are really forcing developers saying Okay, I can take that step and put my toe in the water. I think I was very early on seeing blue mix There was the day before the seabed opened in her no affair to an hour two and a half years ago I saw the first demonstration and I thought that's the way we should go And if you look at the concept we has for our IOT platform It's very much this idea that you have microservices you you you measure them up to an application You have multiple companies providing their service on one platform I think that's exactly the right way to go. Do you think there's an opportunity to actually monetize the data that you're collecting? Is that something? Yeah, of course. Yeah, they're interesting models now behind you always doing that already Yeah, we data as a service we we offer data services analytic service This is something so we know we have domain expertise We know how to do its work and also we have analytics capabilities So if you look for production, for example, we have ourselves 250 plans worldwide You know exactly how to analyze data from production shop floor this we can offer to other companies and we do this That's what for why do they buy it for benchmark purposes? It can be benchmark and be predictive maintenance can be please give me a model That I understand how much testing I need at the end of the line for specific product depending on the parameters of production it can be on Should I ship this product or not? So it can be multiple things The data itself is more interesting because today we don't have really a data market if you look at the business model the Internet company currently have I always refer to as a black market you give your data and you get software for free and You don't pay taxes. That's the definition for a black market. You don't pay taxes for for something you get Wish to get out of it. You should be as transparent as buying a car What is the value of data who has it? Is it is it really anonymously? Is it aggregated? This is a kind of information. You need the transparency. Do you feel Stefan like boss is a cutting-edge player in IOT Relative your competition, I mean, where do you how do you guys size up your own sort of internal competitive? Well, I can claim we started very early thinking about this I think also from the traditional companies. We are early mover again. Do you guys see GE also in a similar situation? Yeah, and we are pushing for this and if I see all the support I get from from our board our CEO To move forward there. It's pretty cool So I'm very confident there But internet is a very fast business and it's always a question whether a company that is more than 125 years Old is able to take up the pace and and remove it to a certain you have resources Yeah, but it's sometimes you have it's slower to make decisions But I mean Bosch as a as a global player you mentioned you mentioned GE obviously IBM with smarter planet Yeah, I mean in a lot of respects. They are the ones who are going to drive internet of things Of course, then you've got the developer ecosystem that you're trying to appeal to and some new startups Let's see what's coming out there It's exciting What about open source? How are you guys looking at open source? We were commenting earlier actually someone picked up our tweet open source It's probably the movement of the century. That's changed the society The world and yeah, I'm a strong believer in open source in particular the internet wouldn't happen without open source And I'm pretty sure open source wouldn't be there without internet also because otherwise you cannot really cooperate that easily Across the globe But open source used to be we used to be we used to be renegades fighting for freedom now. It's standard open source is now tier one First class citizen is it first class it is. Yes, it truly is awesome, right? Yeah It's generations of layers of improvement standing on the shoulders of others before you that is always the phrase But it's not it's packing business models of federations of federated groups This is concerned you you worries you at all you happy with it I mean affecting business and we're open source media We heard power has an open or power systems group here at IBM It's a great success over a hundred partners and they're a new open Source kind of movement towards hardware open compute in the data center. We've seen everywhere everywhere. So I mean does it stop First of all the IOT will also be only possible with open source. I'm pretty sure and Of course for for a traditional player like Borscht, it's a learning curve until we have all the lawyers or the Business people and controlling people understand what value capturing is all about it's a completely new for them It's the educational part, but on the other hand, we wouldn't be here with our software We have today without open source It's pretty clear. Yeah, and we're pushing this father and the question is how you you build up? Ecosystem they do the right thing and this is you cannot really control you just can ask and Where's the next join and then where's the next wave? I see internet of things is a big way people saying that's the way But it's very bubbly right now. Yeah, I'll see certain the consumer side you see uber and whatnot It comes going public, but in the enterprise. There's a lot of waves coming We were you've been speculating on the cube here that was watching know that we believe that it might be high Valuations, but you know patients here wave usually that waves come in sets is Internet of things the next wave and what other waves might be out there that people might not see we're hearing all kinds of things about machine Learning getting easier talking about in memory kind of transactional things Coders doing better things more library automation orchestration. This is all buzzwords, but that's reality. What's next? What's do you see the next waves? I think the waves will be a little bit anticipated and specific markets like smart home Believing is catching up the CSC and Las Vegas was a clear indicator that this is going to happen now people know I'm so used to their smartphones and Even youngsters they don't believe if it's some softwares and a dishwasher where I can use my my magic wand my smartphone to Access the dishwasher. It's also a generation topic, but maybe for us. There's a lot of data exhaust market for a dishwasher Conversations really sway Get rid of the trash abandoned So so the exhaust of data coming from this is it's off the charts, right? So I got to ask you you know people talk about data lake. It's kind of like a data warehousing concept Yeah, of course you can take all the data out and store it somewhere But I think it makes sense to analyze the data locally first and really Aggregate it in a way that you make sense out of that like sending out temperature information from this building Everyone second Does it really have value? No, it doesn't so you really look at what I'm interested in the temperature peak might be interesting Somebody open the window or something wild variation So this is something This has to be locally not only in the cloud, but it diverse to this different use cases different architectures Yeah, especially in it of things Doug Baylock was saying, you know one of the key conversations that they're creating that they're joining and They're enabling brought yours down The lake The lakes but Lake Lake is a turn that's been kicked around Testing okay, so microphone's gonna be up here if you're not Folks gonna be up here. I can hear it every day. There's coming out a new thing Innovations and creativity Okay Can we turn the TV speakers down and it still goes through the box regarding the Lake in the ocean. Yeah, if you really look how much value I get all the data Yes, you also press yourself shall I store it right now after feeling the store everything if you've got a lot of money energy And then the storage. Yeah The future you will be more sensitive what makes sense. Yeah, I don't know what about you, but I can go back to my email First emails I wrote in the university time. I still have it in my back up But it's really All the way Ways on the ocean and that's a good thing That's the one to do to do to do to Value from the lake Data ocean data lakes were here breaking it down. I'm John for you with stuff. Oh, I think so. I'm VP of engineering boss I great to have you again data ocean that's trending on Twitter We'll be right back after the short break. Okay, so you're at zeroes. We're hitting zeroes Is a live mobile studio bring it to events and we say we extract the signal from the noise What we do is we get the absolute best guests that are at those events will bring them inside the queue And we talk to them. We have a conversation. I think the difference with the queue is that the interviewers are active Participants in big data. So it's less about trying to explain what big data is and more about relating What's going on? So we're a big data driven organization We have a data science team that allows us to see not only what's trending broadly with the public But what's tread trending in very specific areas in our specialty in tech that allows us to vector our analysis and Relevance from our research and journalist team and to everything that we do as a media company We really want to make it fun exciting but more importantly Stract the data from the guests and extract that metadata and share it with the world So people can use that information to better themselves better their companies more importantly connect with other people To do more business to find more of a technology and for us. This is the future I do a lot of these types of interviews. I spent a lot of time with the press and cubes a lot of fun It's you know ESPN for tech I think techs evolved to the point where you know people want to understand the personalities behind the technology Which probably wasn't that interesting 20 years ago I think they made it a lot more a lot more entertaining a lot more interesting as well as you know Putting some technical meat on the bones as well the value of an independent news organization at an event is That it allows our audience to have a perspective that's a balance that it's not just you know the vendors talking to them It's the community. It's analysts. It's technologists. It's customers practitioners. So they get a full perspective That's unfiltered the benefit of the cube is place for conversation with people to connect with each other and to learn about things and It's a revolution in media We look at the technology and the people behind it as tech athletes Those are the folks making the companies making the technology really creating the new value in this modern era And it's fun. It's exciting and more importantly. It's very social these days With social media people looking to not just read articles, which are great and obviously SiliconANGLE does a lot of that as well But being able to see high-definition video Very intimate interviews with entrepreneurs and operators Innovators in the industry. I think it's really important. So the job you do and getting this out in a very timely way I think it's really important. We always know that your view is right until you hear a different perspective So you're always interested in give me some neutral perspective Help me see it from a different light, right? And maybe ask a hard question or two that I might not have considered it. You know in that sense, right that independent Voice that's always ability to write have You know sort of independent audited sort of perspective right of the world Let's hope she's good. MacCube has been called the ESPN of tech and really our vision is to cover Every event that's out there We really truly want to be a global organization that is at every event Extracting the signal from the noise being on the ground Giving our audience a sense of what's happening at that event, but also providing analysis and insight Worldwide literally for every event that's out there You know, I love it. It was actually telling John and Dave every time I come back to the Cube You guys have new toys new cameras. Everything's getting bigger. So, you know having been on it for several years almost from the very beginning It's it's always great to be back and You know, you guys do an amazing job. So it's wonderful It's about connecting with people And that really is what it's all about having the conversations in a very social collaborative way And that's what makes it so exciting because people are watching First time on the Cube, baby. Rock and roll. I think it's probably five or six times I've been on the Cube now. Right, you know at first the guys are just fun to work with. Pat, welcome back. Hey, always a pleasure to be in the Cube. Hey, I'm about to go on the Cube. You never know what's a three-time veteran of being on the Cube. I hope many many more. Chad Sackets, Chad, welcome to the Cube. Dave, John, it's great to be here, man. I keep coming back because great insightful questions from From John and from Dave. What face-melting action have you seen here at the event? And I know there's a lot of it. It's a great vehicle to To communicate with a broad audience. A lot of folks watch. Great to have you back. Good job. All right, Craig Nunez, VP of Marketing at HP Stores. Thanks very much for coming on the Cube. When people mention the Cube, they're like, oh my god, I saw you on the Cube. And they're all excited about it. It's an experience. It's not just information, they experience kind of what's going on there. It's like real time. It's like they were there. That was like going to the gym. Legendary IBMer, CEO of Symantec, and now CEO of Virtual Instrument. Great to have you on the Cube. So for Cube to be here at a conference like this, it's got 15, 20,000 people and sharing that live around the world. That's consistent with the way the world is evolving. So it's wonderful to be here. John and Dave are amazing. I don't know how they keep everything in their heads the way they do. It's a great format. We're obviously seeing that this notion of real time coverage and a real conversation is what's driving us as a company. And I said very seriously when the questions and the comments that we hear from them and from all the different guests here directly turned into the products that we built. Yeah, that was my first Cube and I really enjoyed it. It was the rapid fire of questions. It made me think on my feet, but they were very thought-provoking and really got me going on analyzing the greatness of Rista and the greatness of the Cube as well. John and Dave, the reason their approach works, they're not just guys, you know, reading down the question list, right? Okay, next one, next one. It's a conversation, right? And it's, you know, they're going to challenge you. They're not going to settle for the marketing hype and the BS and all that stuff that the industry throws around. Come on, you got to hit them up on the HP question. A lot's changing HP. Some turmoil at the top, obviously, controversy. They're going to hold you down to the real facts, compare you to the choices our users have and have you respond to it on the spot, right? Thinking real-time. And so that's real talk, not just kind of a paper interview, I think. I'm John Furrier with SilkeMango.com and I'm here with Dave Vellante. We are inside the Cube. The Cube is our flagship telecast. We go out to the events, extract all the signal from the noise and share that with you. And great guest lineups. We've got CEOs, CTOs with all the top executives, bloggers, thought leaders, venture capitalists. I'm absolutely stunned because I know it demands 100% attention for these guys to be up there talking to people about a wide variety of technology topics. I can't believe these guys can make it so many days in a row. So I'm wondering how long they're going to go home and pass out for after this. But it was incredible. They just do a fantastic job. If you're not having a conversation, then you're very scripted. And if you're scripted, then you might be getting the right words, but you're often not getting the whole meaning and the whole depth of the conversation to the fullest extent. I think this is a heck of a lot more authentic. It comes straight from the heart and the brain. Sometimes you might forget to make some of your points if you're not a real-time thinker. But I think from both from a participation and from a consuming point of view, it's much more real. Chris holds no punches. So I've been on the Cube a number of times. And I think the interesting thing about being in that particular venue in that format, they introduced me as, hey, Poff doesn't pull punches. Well, they don't either, right? They ask really difficult, uncomfortable questions sometimes. And you can tell people and the positions and where they are in terms of what they're able or desires to speak of. You can tell where they are on that borderline between kind of just honestly answering questions versus kind of glossing over them. And I enjoy being there because I don't want to say I'm outspoken, but I honestly answer questions with the full intent of being able to be respectful to the people that I bring solutions to, right? If I whitewash this crap, you're going to turn me off every single time you see me on any venue, let alone the Cube. So I like being asked tough questions. I like answering them honestly. And that's a fantastic venue for doing it. Otherwise, you get on panels and you've got a bunch of talk and hands blabbering at each other. And it's worthless. And this was my first time on the Cube. And I really got a chance to get to know John and Dave. And they're really amazing guys. The knowledge that they come with, the topics that they could talk about, the people that they know, and just bringing it all together in this live broadcasting forum, it's just fantastic. And I just love it. I feel like a groupie or something. In this environment, the social environment, the real-time environment where we're in, people look through the marketing fluff very quickly. And if it's not authentic, they don't trust it anymore. So in this environment, I think it's a growing trend. Yeah. A lot of things from a trip around the world. But you can't always bring back customer data because many customers don't like it when their data moves around. If you're going to do business globally, you need a cloud that can keep your data where it needs to be. Today, there's a new way to work. And it's made with IBM. Hey, this is Brian Seraven, Director of Digital Media for the San Francisco Giants, and you're watching The Cube. Hi, I'm Dan Gordon, co-founder of Gordon Bearsh, and you are watching The Cube. I'm Henland, senior analyst of technology and business research at TV, and you are watching The Cube. I'm Dr. Randy Fagan, Chief Administrative Officer at the Texas Institute for Robotic Surgery at HCA. And you're watching... Act 1, scene 3. Open port 22017 on the firewall for customer DB access. Install version 2.3 of DB connector and ensure the boast flag is set in case of problems. Isn't the cloud supposed to make business easier? Get the one that can connect to the systems that you already have. Today, there's a new way to work, and it's made with IBM. This is a burrito made with chocolate, soybeans, and apricots. What kind of chef comes up with this? A chef working with IBM Watson on the cloud. Ingredients are just data. Watson turns big data into new ideas. And not just for food. Watson is working with doctors and bankers to help transform their industries. Today, there's a new way to work, and it's made with IBM. Cute little guy, huh? This guy could take down your entire company. Stay with me. On Thursday, a hamster video goes online. On Friday, it goes viral. A network choking phenomenon. Why do you care? He's on the same cloud as your business. The more hits he gets, the slower your business may get. Do you want to share your cloud with a hamster? Today, there's a new way to work, and it's made with IBM. Hi, I'm George Matthew, president and CEO of Altrix, and you're watching theCUBE. I'm Dimitri Zemin. I'm the CTO and co-founder of Stackstorm, and you're watching theCUBE. I'm Vice President of Product Strategy at QLogic, and you're watching theCUBE. Hi, my name is Ben Jones, Senior Product Manager of Tableau Public, Tableau Software, and you're watching theCUBE. Hi, this is Francois from Tableau, and you're watching theCUBE. Feed the number one seed. You just have to win 70% of your points in net, and keep unforced errors under 10%. On the IBM cloud, the US Open analyzes 41 million data points from eight years of competition to uncover key insights. Data can help show you how to win, no matter what business you're in. Today, there's a new way to work, and it's made with IBM. Live from Las Vegas, Nevada, it's theCUBE at IBM Interconnect 2015. Brought to you by headline sponsor, IBM. Hello, everyone, welcome back to theCUBE. Live in Las Vegas for IBM Interconnect. This is theCUBE's special presentation. theCUBE is our flagship program. We go out to the events and extract the soothing noise. I'm John Furrier, the founder of Silicon Island. I'm Joe McCose, Dave Vellante, co-founder of Wikibon.org, and we are live in Las Vegas on IBM Interconnect. Dave, day two of three days of wall-to-wall coverage. We are in the Go Social Lounge, the Social Media Lounge, where all the crowd is gathered, all the influencers, and of course, we're broadcasting live. Live commentary here inside theCUBE. Also, the keynotes are on. The web, go to interconnectgo.com. That's a social media experience site that is put together for the crowd, with the crowd. It's all crowdsourced and we're streaming the content there. Feel free to join the conversation and check out what the crowd's talking about. Dave, day two, day one was set in the table. Day two, we have the Shark Tank here. We have IBM's key messaging. Obviously, cloud is a big deal. Looking at the trending stories this morning. DevOps, cloud, Internet of Things, Bluemix, big data, Pure App, IBM cloud, commerce security storage, Lisk is on and on. Like the usual stuff at IBM, but really cloud is the show. Internet of Things is hot. So again, Internet of Things, Analytics, Cloud, all intersecting together. That's the key theme of the show. What's your take so far? And what are you expecting from today? Well, a couple things. So one, I think the IoT angle, John, to me, is all about developers. If you're a developer, you're interested in Internet of Things. If you're IBM, you're trying to attract developers, I think that's a great way to get them. I think they've got two angles there. One is IoT. The other, of course, is Watson. I think Watson, and you've mentioned this a number of times, is like IBM's secret weapon potentially for developers. So it has to be able to attract developers. That's a big part of the reason for Amazon's success. Of course, Microsoft is renowned in that regard as is Google and others. So IBM's got to play that card heavily. And I think it's got some assets to do that, but it's got some work to do as well. I think the second thing is, as we talked about yesterday, IBM has a $25 billion business, which comprises Cloud, its analytics business, all the hot stuff that's moving right now, the mobile pieces. And that's really, those strategic initiatives are really where IBM has to focus. That's the growth engine. It's got to get that investment going. It is investing in that. It's got to keep it going. It's got to keep the momentum going. It must, in my opinion, John, grow that business between 10 to 20% a year so that it can offset the flatness and headwinds in other businesses, like its hardware business. I think a mainframe cycle will help a lot as mainframes goes, IBM goes. But what that will do is, the new mainframe cycle will buy IBM time to get these other businesses going and inject fuel into that race car. That $25 billion cloud, big data, mobile business. Dave, what do you think about the social experience site InterConnect Go? We've been talking about it. It's the first rev of really capturing the magic that IBM has put together over the years with social media, the VIP influences. I was talking to Amber Armstrong from the social business team. Social media is in the IBM's DNA. And they're putting together a social finish with the folks who aren't here. And it's InterConnectGo.com, trending stories, trending hashtags, VIP influencers, the folks that are on the ground sharing and broadcasting. And also experts, algorithms from the platform is showing new influencers. So you're seeing a lot of great stuff. I am super impressed with the VIP influencers. I'll tell you why. They make up almost two thirds of the activation offsite, meaning they are Internet of Things in action. They're human beings out there who are experts, subject matter experts by genre. Some are geeky like Brian Fonzo and some are looking at small business, more lifestyle, social like Marsha Collier and everything in between. That to me is the future of work, the idea of collaboration, having people who are trusted in the crowd really working on behalf and collaborating with IBM but also on behalf of the crowd. This to me strikes the new balance of social business. So that IBM is pioneering. We're a part of it on theCUBE. We activate as we do. But this is crowd activated innovation in action. I think this is the Holy Grail. I think what IBM is doing with social business around earned media, their own media and their paid media. So you get paid and owned. But now this earned component is allowing people to spread their wings, collaborate, share and more importantly broadcast what's happening and creating an interaction relationship hence engagement. This is what we were talking about yesterday with IBM, systems of engagement, systems of record. And finally the systems of insight from all that data. Well you asked me what I think of that, the Go site. I like it a lot. Obviously I've been using it for a number of things. First of the schedule is really easy to follow. I love the three channels when you go to the Go TV page. But the thing that impresses me most is these algorithmic fees that are coming into the site. You know you walk around these shows and you see these social media dashboards with pretty pictures. You see them here at IBM. You see you know at HP shows. You see them at Dell World. I mean EMC's got them. They're kind of cool. But what I really like about these things is they're dynamic and they're put into context. So I love this leaderboard. I go there and check it out all the time. I can sort it by influence. I can sort it by activity. I can sort it by reach. So I'm sorting it by reach now. I see Veronica Belmont leads the leaderboard. She's got a massive cloud score of 85. She's got 101.73 million followers. Interestingly she's only following a thousand people. So she has a very small observation space, as Jeff Jonas would say. But nonetheless. But she has a lot of followers. She's a huge number of followers. So that's why she's number one in the leaderboard on reach. Followed by Citi, Craig Brown, who's one of the VIP influencers. Glenn Gilmour is another VIP influencer. And then I can go and sort by activity. Like who's really active? And I can see the API enterprise is really active. You know, path. I mean I don't even know the RN Jazz. So these are kind of other sort of properties. That are very active. And then you go to the influence, you know, which is a combination, I guess of an affinity rank algorithm. Cloud score, you know, obviously plays a part of that. But see Brian Fonzo up there. So you can see this really dynamic type of leaderboard. And then the other thing I like about this site is it's showing me sort of real time. What's trending in the interconnect go community. So it's not just the hashtag. It's around cloud and DevOps. And you can see DevOps, cloud, internet of things, big data, Watson. Those are the things that are trending. And then the other thing I really love is the trending stories. High fidelity stories that are relevant. So today's top stories really are, you know, big data why Facebook knows us better than our therapist. I mean that's really sort of compelling. IBM embraces Docker, OpenStack, and Bluemix hybrid cloud plans. IBM wants you to make connected things faster than a coffee. IBM goes deep with cloud initiatives. Sandy Carter is on Twitter. Major League Baseball, spinning off its powerful streaming business. That's kind of interesting. Okay, this is coming from the crowd. So if you notice in the leaderboard, it's not about who has the best cloud score or who's the most followers. It's a semantic affinity ranking algorithm that we deploy on CrowdChat that actually matches the cadence of what's going on at the event. And then matching influencers into that so people can meet influencers. It's not about influencers being, oh, buzz, and promoting. That's one aspect of having influence, but the other is subject matter influence, authority. And what's interesting about the new social business that IBM is taking is matching authority and knowledge and connections in a relationship-based model to what's happening in the moment is valuable for getting a direction on things, figuring out what's going on in the moment, and more importantly, who to connect with. To me, the social business equation of the future is about connecting with people and actually building relationships and exchanging information. That's how people are making decisions now. You're buying a million dollar Z system or they cost more than that. You're going to talk around, you're going to ask people, hey, what do you think? You know, Wikibon, you have a practitioner network. It's not about Google searching anymore. Web 1.0 is get a webpage, browse some information, gather the data. The data sharing is now done in the crowd with people and it's faster to touch someone now than ever before. And this is a data model that is going to be fantastic. And I think this is a wonderful thing. I think IBM is right on the trend line here and this is game changing. And again, systems of engagement is about engagement and that's data driven. Yeah, so this is what I really like about this site. It's the first that I've seen combining those three media types that you talked about, combining the algorithmic feeds and it's got great video content. There's some things I'd like to see improved, I mean that I can sort of take offline, but I'm going to study it. I'm going to make my recommendations to IBM and go from there. The site's been very successful. It's 25,000 people have signed up for it and that's pretty good and less than a month. I mean it's nice. Okay, we are kicking off day two of three days of wall-to-wall coverage. This is theCUBE, I'm John Furrier with Dave Vellante. Again, here, extracting the signal, sharing that data from that signal with you and that's our job. We love doing it as an open source model. We activate share, pump it out. We do our best to get that done. We're doing it in the Go Social Lounge. We've got a lot of crowd chats going on. Crowd-activated innovation is what social business is all about and meeting people and just sharing information. Information will drive the engagement. We love that model. Dave, we're going to be right back with our next guest after this short break. This is a live mobile studio. We bring it to events and we say we extract the signal from the noise. What we do is we get the absolute best guests that are at those events. We bring them inside theCUBE and we talk to them. We have a conversation. I think the difference with theCUBE is that the interviewers are active participants in big data. So it's less about trying to explain what big data is and more about relating what's going on. So we're a big data-driven organization. We have a data science team that allows us to see not only what's trending broadly with the public, but what's trending in very specific areas in our specialty in tech. That allows us to vector our analysis and relevance from our research and journalist team into everything that we do as a media company. We really want to make it fun, exciting, but more importantly, extract the data from the guests and extract that metadata and share it with the world so people can use that information to better themselves, better their companies, more importantly connect with other people to do more business, to define more about the technology. And for us, this is the future. I do a lot of these types of interviews. I spend a lot of time with the press and theCUBE's a lot of fun. It's ESPN for tech. I think tech's evolved to the point where people want to understand the personalities behind the technology, which probably wasn't that interesting 20 years ago. I think they've made it a lot more entertaining, a lot more interesting, as well as putting some technical meat on the bones as well. The value of an independent news organization at an event is that it allows our audience to have a perspective that's balanced, that it's not just the vendors talking to them. It's the community. It's analysts. It's technologists. It's customers, practitioners. So they get a full perspective that's unfiltered. The benefit of theCUBE is a place for conversations with people to connect with each other and to learn about things. And it's a revolution in media. We look at the technology and the people behind it as tech athletes. Those are the folks making the companies, making the technology, really creating the new value in this modern era. And it's fun. It's exciting. And more importantly, it's very social. These days, with social media, people looking to not just read articles, which are great, and obviously SiliconANGLE does a lot of that as well, but being able to see high-definition video, very intimate interviews with entrepreneurs and operators, innovators in the industry, I think is really important. So the job you do in getting this out in a very timely way, I think is really important. We always know that your view is right until you hear a different perspective. So you're always interested and give me some neutral perspective, help me see it from a different light, and maybe ask a hard question or two that I might not have considered. But we, on that sense, write that independent voice that's always ability to write, have sort of independent, audited, sort of perspective right on the world. It's always just good. theCUBE has been called the ESPN of tech and really our vision is to cover every event that's out there. We really truly want to be a global organization that is at every event, extracting the signal from the noise, being on the ground, giving our audience a sense of what's happening at that event, but also providing analysis and insight worldwide, literally for every event that's out there. You know, I love it. I was actually telling John and Dave, every time I come back to theCUBE, you guys have new toys, new cameras, everything's getting bigger. So, you know, having been on it for several years, almost from the very beginning, it's always great to be back and you guys do an amazing job, so it's wonderful. It's about connecting with people and that really is what it's all about, having the conversations in a very social, collaborative way, and that's what makes it so exciting and people are watching. First time on theCUBE, baby, rock and roll. It's probably five or six times I've been on theCUBE now, right? You know, at first, the guys are just fun to work with. Pat, welcome back. Hey, always a pleasure to be in theCUBE. Hey, I'm about to go on theCUBE. You never know what's gonna happen. A three-time veteran of being on theCUBE. I hope many, many more. Chad Sackets, Chad, welcome to theCUBE. Dave, John, it's great to be here, man. I keep coming back because great, insightful questions from John and from Dave. What face-melting action have you seen here at the event and I know there's a lot of it? It's a great vehicle to communicate with a broad audience and a lot of folks watch. Great to have you back. Good job. All right, Craig Nunez, VP of Marketing at HPStore. Thanks very much for coming on theCUBE. When people mention theCUBE, they're like, oh my God, I saw you on theCUBE and they're all excited about it. It's an experience. It's not just information. They experience kind of what's going on there. It's like real-time. It's like they were there. That was like going to the chair. Boom, boom, boom. Legendary IBMer, CEO of Symantec and now CEO of Virtual Instrument. Great to have you on theCUBE. So for theCUBE to be here at a conference like this, it's got 15,000, 20,000 people and sharing that live around the world, that's consistent with the way the world is evolving. So it's a wonderful medium, wonderful medium. John and Dave are amazing. I don't know how they keep everything in their heads the way they do. It's a great format and we're obviously seeing that this notion of real-time coverage and a real conversation is what's driving us as a company. And I said very seriously when the questions and the comments that we hear from them and from all the different guests here are directly turned into the products that we build. Yeah, that was my first CUBE and I really enjoyed it. It was the rapid tire of questions. It made me think on my feet, but they were very thought-provoking and really got me going on analyzing the greatness of Rista and the greatness of theCUBE as well. John and Dave, the reason their approach works, they're not just guys reading down the question list, right? Okay, next one, next one. They're, it's a conversation, right? And it's, you know, they're going to challenge you. They're not going to settle for the marketing hype and the BS and all that stuff that the industry throws around. Come on, you got to hit them up on the HP question. A lot's changing HP, some turmoil at the top, obviously controversy. They're going to hold you down to the real facts, compare you to the choices our users have and have you respond to it on the spot, right? Thinking real time and so that's real talk, not just kind of a paper interview, I think. I'm John Furrier with SiliconANGLE.com and I'm here with Dave Vellante. We are inside theCUBE. theCUBE is our flagship telecast. We go out to the events, extract all the signal from the noise and share that with you and great guest lineups. We've got CEOs, CTOs, all the top executives, bloggers, thought leaders, venture capitalists. I'm absolutely stunned by, because I know it demands 100% attention for these guys to be up there talking to people about a wide variety of technology topics. I can't believe these guys can make it so many days in a row. So I'm wondering how long they're going to go home and pass out for after this. But it was incredible. Just do a fantastic job. If you're not having a conversation, then you're very scripted. And if you're scripted, then you might be getting the right words, but you're often not getting the whole meaning and the whole depth of the conversation to the fullest extent. I think this is a heck of a lot more authentic. It comes straight from the heart and the brain. Sometimes you might forget to make some of your points if you're not a real-time thinker, but I think both from a participation and from a consuming point of view, it's much more real. Chris holds no punches. So I've been on IQ a number of times. And I think the interesting thing about being in that particular venue in that format, they introduced me as, hey, half doesn't pull punches. Well, they don't either, right? They ask really difficult, uncomfortable questions sometimes. And you can tell people and the positions and where they are in terms of what they're able or desires to speak of, you can tell where they are on that borderline between kind of just honestly answering questions versus kind of glossing over them. And I enjoy being there because I don't want to say I'm outspoken, but I honestly answer questions with the full intent of being able to be respectful to the people that I bring solutions to, right? If I whitewash this crap, you're going to turn me off every single time you see me on any venue. Let alone the cube. So I like being asked tough questions. I like answering them honestly. And that's a fantastic venue for doing it. Otherwise, you get on panels and you got a bunch of talk. It has blabbering on each other and it's worthless. Now this was my first time on the cube and I really got a chance to get to know John and Dave and they're really amazing guys. I mean, the knowledge that they come with, the topics that they could talk about, the people that they know, and just bringing it all together in this live broadcasting forum. It's just fantastic. I mean, I just love it. I'm like, I feel like a groupie or something, you know? In this environment, you know, the social environment, the real-time environment where we're in, right, people look through the marketing fluff very quickly and if it's not authentic, right, you know, they don't trust it anymore. So in this environment, I think it's a growing trend. Yeah. Hey, this is Brian Seraven, Director of Digital Media for the San Francisco Giants and you're watching The Cube. Hi, I'm Dan Gordon, Co-Founder of Gordon Bearsh and you are watching The Cube. TV and you are watching The Cube. Dr. Randy Fagan, Chief Administrative Officer at Texas Institute for Robotic Surgery at HCA. And you're watching... You can bring back a lot of things from a trip around the world, but you can't always bring back customer data because many customers don't like it when their data moves around. If you're going to do business globally, you need a cloud that can keep your data where it needs to be. Today, there's a new way to work and it's made with IBM. Act one, scene three. Open port 22017 on the firewall for customer DB access. Install version 2.3 of DB connector and ensure the boast flag is set in case of problems. Isn't the cloud supposed to make business easier? Get the one that can connect to the systems that you already have. Today, there's a new way to work and it's made with IBM. This is a fantastic way to have the conversation with guys who know what's going on, who can kind of scratch below the surface, who can respond to what's happening right now on a Twitter feed about maybe some technology that's going to mark the place and respond and have a conversation. So these guys bring an incredible wealth of knowledge from their own careers. They've been into a lot of different things in the industry and they're independent. You know, they're able to bring different points of view and you know, sometimes they ask really tough questions too, the kinds of questions that maybe you don't want to answer and so, but it always gets to the heart of it and we just love having them here. I think theCUBE, you guys always have very thoughtful questions, really insightful comments and it actually makes for a really fun discussion. The thing that I really like about theCUBE is you guys get, I mean, bottom line is we can talk about high-level strategy, we can talk about execution, we can talk about competitive and market and you know, what I like is the interactive banter back and forth, plus the fact that, you know, when I think about some of the conversations we have, they're not only deep, they're not only rich, but the audience themselves will really come to benefit from those conversations. I mean, these guys are great. I think this is a revolutionary form up till a few years ago. I've never seen this in my entire career. These guys are great interviewers. They're spot-on, they're sharp, they're funny to work with. And they just ask great questions, so it's a real pleasure to be on theCUBE. It's really great. What's so neat about it is it's like real-time discussions and also just being able to have people share their views simultaneously. So I love it. I think it's really fun. It's a great way to, you know, get the message out and to have a dialogue. I want folks out there to understand the depth of technical inspection that goes on with you guys. It's deeper than, you know, most analysts we talk to, right? I mean, so we roll up our sleeves. We'll spend a half a day on hot new technology instead of the, you know, PowerPoint I believe that goes on in a lot of the time in our industry. So it's, you know, when you get a perspective from theCUBE, that is as good as a validation. This is a burrito made with chocolate, soybeans, and apricots. What kind of chef comes up with this? A chef working with IBM Watson on the cloud. Ingredients are just data. Watson turns big data into new ideas. And not just for food. Watson is working with doctors and bankers to help transform their industries. Today there's a new way to work and it's made with IBM. I'm Andrew Kreitzer, business operations manager at LinkedIn and you're watching theCUBE. I'm Chris Selland, VP of business development for HP Big Data and you're watching theCUBE. Hi, I'm Stacey Slaughter, senior vice president of communications for the Giants. I'm in the garden at AT&T Park and you're watching theCUBE. I'm Thomas Minick, business intelligence consultant within our works and you're watching theCUBE. Hi, my name is David Tishkar, director of partner marketing at Cloudera and you're watching theCUBE. Hi, I'm Jim Yu, founder and CEO of Bright Edge and you're watching theCUBE. This is my first time on theCUBE. It was fun. We'll do it again. We'll do it again, yeah. I think what I've come to find, I think my second time on theCUBE is, I mean, it's just such a real-time, high-energy experience. It's very good because there's no filtering of questions. I was not prepped. Other than saying, go and get up there. So it was quite good. It was kind of an experience. I think what you're going to get is the real answer. You know, it's not scripted. It's authentic. It really allows you to communicate quickly, you know, your point of view about who knows what they're going to ask you. So I thought it was great. It's fine. I mean, I didn't know what the questions were ahead of time. They asked some good ones. I think some ones that if it was an unbiased thing, I mean a biased thing, I don't think we would have got it. And I think that's what people want. They want those questions, and it's hard for us sometimes to ask them unbiased because you're biased by nature. So it's great to get those questions and be able to answer them. Like I said, I love the energy. I mean, these guys ask good questions, and obviously not only them, it's the Twitter feeds coming in from questions from the audience. So sometimes it's a question nobody wants to ask, but they're thinking, so it's good. That's a great way to sort of, you know, answer those tough questions. Give me an opportunity to hopefully share with the people watching, you know, some of why we're doing what we're doing. Cute little guy, huh? This guy could take down your entire company. Stay with me. On Thursday, a hamster video goes online. On Friday, it goes viral. A network choking phenomenon. Why do you care? He's on the same cloud as your business. The more hits he gets, the slower your business may get. Do you want to share your clouds with a hamster? Today, there's a new way to work, and it's made with IBM. Hey, this is Brian Seraven, Director of Digital Media for the San Francisco Giants, and you're watching The Cube. Hi, I'm Dan Gordon, co-founder of Gordon Bearsh, and you are watching The Cube. Here's that TV, and you are watching The Cube. Dr. Randy Pagan, the Chief Administrative Officer at Texas Institute for Robotic Surgery at HCA, and you're watching- You can bring back a lot of things from a trip around the world, but you can't always bring back customer data, because many customers don't like it when their data moves around. If you're going to do business globally, you need a cloud that can keep your data where it needs to be. Today, there's a new way to work, and it's made with IBM. Hey, I'm George Matthew, President-CEO of Altrix, and you're watching The Cube. I'm Dimitri Zemin, I'm the CTO and co-founder of StaxDorm, and you're watching The Cube. Vice President of Product Strategy at QLogic, you're watching The Cube. Hi, my name is Ben Jones, Senior Product Manager of Tableau Public, Tableau Software, and you're watching The Cube. Hi, this is Francois from Tableau, and you're watching The Cube. Live from Las Vegas, Nevada, it's The Cube at IBM Interconnect 2015. Brought to you by headline sponsor IBM. Okay, welcome back everyone. You are watching The Cube live in Las Vegas at IBM Interconnect. It's a special presentation of our show, The Cube, which we go out to the events and extract the civil noise. I'm John Furrier, the founder of SiliconANGLE, and I'm excited to have two awesome guests here, Nigel Hook, CEO of Silver Hook, and Ian Taylor, CEO of Animation Research and Virtual Eye, who are using data and technology in an application that is so awesome and cool, boat racing on oceans and on lakes. So we're going to have a great conversation around how you guys are harnessing technology into the racing and the technology. And obviously the objective in the outcome is racing, but win the race. There's no like anything else that matters, right? So welcome to The Cube. Thank you, thank you. And actually it's winning the race and having as many people as possible see it. And that's been the struggle of our sport, racing on the ocean. It's very difficult to see what's happening. And this technology is transforming that as Ian did with America's Cup, to bring that experience into the home of the fan. So talk about Ian with the technology. We'll get into the conversation. But you know, set the context. It's been well documented that this is a competitive advantage. We've seen it on the car circuits, whether it's NASCAR or Formula One. It's no brainer. This is an input into design, execution, and ultimately the outcome. So that's clear. It's hard to do. So I want you to illuminate some insights around what goes on and how hard it is. And how does it render itself for the application of the users? The users aren't geeks. They're just, their application is to race. They're geeky, crew chief, using data. So explain all this. So I think the premise we work on is our job is to turn digital data into pictures that people can understand. You mentioned Formula One. We cover Formula One. We do all those sorts of things. But there's nothing quite as difficult as chasing what Nigel's doing. A boat that's done 150, 180 miles an hour out on the ocean in 10 foot waves. So we're actually, when we started the America's Cup, we got two bits of data from the boat. That was 1992. Now, we're getting 2,000 bits of data a second from Nigel from, he's actually wearing this little bra and stuff on there with the car. So turning those into pictures is what the challenge is. So the old days was in a serial cable, monochrome monitor, back in the day. It was a pigeon. You need to tie the symbol on and fly the pigeon out. So give us some of the insight. Honestly, the race is at high speed, 150 miles an hour on the ocean waves. You guys doing lake racing as well? Is it on lakes too? Is it on oceans? Well, you know, the big lakes like Lake Michigan can get just as rough as the ocean sometimes. So it's generally, we try to find racetracks where there's going to be some big water because that's what separates our boats from, say, the hydroplanes which people see. So I got to ask you in the big data world since it came up yesterday, what's a better metaphor for the future of big data? Data lakes or data oceans? It's a progression. Data lake is a current phase. Data ocean is really going to subscribe all the data itself there, right, and be able to amass that into one meaningful set of relevant data. And I think, you know, the meaningful thing here is a tidal wave. You know, we are seeing a tidal wave of data and the great thing that's happening here with the Bluemix stuff that we're working with IBM, we're actually able to fire that tidal wave up into there. It sorts out the data and gives us only the bits we need to know, and that's important. So the notion of a rogue wave is in the big data world is what? Well, you know, I think the really cool thing is when these rogue wave hits, we hand it over to IBM to sort the rogue wave out, calm it down, send it back so we can actually use it. Actually Watson, while she tell you a rogue wave because it's coming, navigate the other way, so... That's right, that's the big deal with this. So Nigel's sitting in his boat. There's just Nigel and his wheel man. Meanwhile, back on shore, we're taking all of the data from the boat and delivering it to a cruise. So there's kind of like eight people in this boat, even though there's only nine, there's eight people and Watson up there helping. All right, so let's break this down. This is such a cool topic. So just take us through some of the mechanics. You're driving the boat 150 miles an hour, you got potentially 10 foot waves in an ocean, you got a data ocean coming in, all these data points coming into the command center, your technology's gathering it, Watson's involved, but you're driving the boat. You don't have time to look at the screen. It's like, look at your phone while driving. You can't text while driving. You can't navigate a boat doing 150 miles an hour. So who does it? You have a crew of people, explain that whole... Yeah, that's a great question actually because what all this data that comes out, there's only a certain amount which is relevant and what the IBM SPSS Analytics does is sift through all of that data looking for patterns of what could predict an unwelcome outcome, like an engine which is going out of tune or a propeller which is vibrating too much. So that information out of all that data will be sent to me and if I can't see it, which is most likely the case because we're bouncing around, it's also going out to our team to our crew chief and he sends me on the radio to tell me that, hey, you've got a battery that's losing power and you need to switch to the other charging systems and that I could never figure it out during a race. Something like that actually happened in the World Championships in Key West and we were 30% of a race left to go and we would have definitely not finished and being able to have that information to me in the cockpit enabled us to finish the race and we finished stronger... You made tactical adjustments on the fly, just another condition of the race based on the data that you would have been blindsided. Actually had to switch systems while we're running the boat so it wasn't an easy thing and I wouldn't have done that if I'd not gotten the certainty that asked for the issue because I could have thought maybe it was but this data, they got the certainty that this is a problem and this is a solution. Yeah, that's phenomenal. It's just a real world application. It's in every vertical. I mean, oil rigs out in the ocean, don't have T1, DS3s and all the high-speed connectivity, use the cloud. So how is all this coming together? You're on a boat. It's not like you're an Internet of Thing in terms of the computer's concern. So how has all this come together and what is IBM's role in all this? IBM's role is absolutely critical while we're collecting all the data, it's just too much for us to process. So it's going up. I like to say it's going to Watson. He's sitting at his desk up there in that mysterious thing called the cloud. He's going, this is relevant. That's not, that's not. 2,000 bits a second and he's going, this is important, send it back. Our job is then to turn it into a visualization system so his support crew can see it and warn him. You know, there is another thing I like to refer to this. Nigel's the CEO of his boat. He's sitting in his office and it's just like a business. There's this tidal wave of information coming at your business every day. You need somebody analyzing that so you only get the bits that actually you need to do something about, not this kind of. Okay. And how we got here was I got two offices. One office is with a company called DataSkill which is a long-term IBM partner that focuses on intelligent systems and then I have the other office which is in the race boat. We're two converged and it was through a relationship of IBM's JSTART team that we started contemplating how to make use of all this data and it was through the BlueMix platform we were able to very quickly with the cloud infrastructure be able to develop this, bring it in with virtualized to animate the data and then with people like in Dunedin, the South Island of New Zealand, we're in California, the JSTART teams on the East Coast working together very quickly. In fact, how long do you think it took to end? Three weeks and I think that's the power of the Internet of Things and that's what we're talking about but this is happening practically. So talk about the instrumentation pieces. This is fascinating. So what's instrumented? What's not instrumented? Where's the data coming from? Obviously it's our external data. Obviously you have weather, you have data, seas. What's kind of data you collect and what's going on in real time and how do you instrument all this? I'll talk about the boat and Ian can talk about the environment because that's very simplicable to America's cupways with a lot of experience. But in the boat, we're now taking sensors of heat sensors different types of mechanical functions of the boat like the gearboxes, like in the engine itself. We've got pressure sensors for fuel pressure for all the different types of pressure systems, water pressure. We have GPS signals. We have accelerometers. We have load sensors on the boat. And now what we've added this year, the difference between last year and 2015, is we've got the biometrics. There's actually two people in our cockpit. I'm the throttle man, I have a driver and so we've both got a full-time job in the cockpit of the boat. We're both wearing these harnesses. It's underneath the shirt here. It's an equivital piece which monitors all the different aspects of the human body. All of this has been transmitted to Ian. So you guys have to have cadence. You guys have worked together. It's total teamwork. One falls down, the other one's down too. So like, how do you guys throttle? How does the throttle man work with the driver? And what is the heart rate matters? Like, oh, he's got a heart attack, get a sub in, he's fatigued. I mean, is that basic thing or what? It is. It's a very unique sport actually because I don't think there's any other motor sport where one person's got the wheel, controls where you're going, and that's all we've got. You have a person that does something how fast they go and actually flying the boat. You've got the roll capability. You've got to control and the pitch of the boat. So the throttle man's controlling the boat how fast it goes. The driver does something where it's going to go. I mean, that's going to be harmonized at speeds in excess of 140 miles an hour in a rough sea. So that's tricky as it is right there. And what we're doing is we're taking the health measurements of both the pilot and the co-pilot, the throttle man and the driver, and then combining that during the stressful one hour race. And there's different conditions of stress like going to a corner. The driver may be more stressed on that because he's got the wheel than the throttle man. In the straightaways going through big waves, the throttle man maybe has more stress. But seeing how the two people respond to it with the respiratory rate, heart rate, body temperature, that I think has a lot of significance. And where we see that actually progressing to, it's like into healthcare because people are wearing wearables now, not just for athletes, but also in like triage and transition of patients and hospitals. So there's a lot of commercial application of what we're doing here. So I mean, you don't want to get fatigued because if you're running the throttle and you're stressed, so you guys just cuffing the data or are you, I didn't get that. Are you using the data on the heart rate or not? We are, yes, yes. So because one of the challenges we face is heat exhaustion and performance degradation. You know, as your body gets hotter and you get at those sort of extreme conditions, your reflex is not quite as pristine, right? So that can be monitored on these systems. As you're in a boat, you don't know it. You're just racing to the checkerboard. So do you have a sub, like a backup and understudy? It's like when you're fatigued and you might not even admit that you tap out. Well, I think the key is to, as a race driver, you're under a lot of stress, but if you've got some feedback that you're overstressed, I think you have a ability to skid calm it down. It's self-governing. So it's more about internal feedback. It's like a biofeedback, yes. That's really beneficial because throughout the whole race we want to see, we want to be at the lowest possible stress during that race and this is kind of feedback which helps. But just putting that in context, I mean, you asked about that feedback, this stuff's going again, it's going up to the cloud coming down and onshore the medical team. So you've got an engineering team, but the medical team are sitting there getting this data live from the current. And the safety issue too is also a self-improvement. Yes, it is, yeah. Performance enhancement. All right, let's get back to the tech. Now back to the instrumentation on the boat. Give us through the tech under the hood, what's happening. You've got instrumentation on the boat, it's going into the cloud. What is IBM doing? What's real time? Where's the data sets come from? Can you share? Yeah, so everything is real time and as I said before, there's around about 2,000 bits of data every second which we just can't handle. So the great new development is blue mix in the cloud. So the data is going up there and it's sorting through all of this amount of data in real time and only sending us the bits we really need to know. So it's looking for patterns, it's looking for this, it's looking for that. So it's kind of predicting that you've got a problem with this engine starting now, do something about it, because in about 30 seconds time it's going to blow up. Okay, so I've got to ask you guys because you're a real practitioner and it's a fun area people can relate to. We talked about data lake, data ocean, obviously they're not usually exclusive. One's batch, slower, one's more dynamic, more stronger and different, unpredictable. But in the big data world, what do you guys see as the next step, the next wave of innovation that's coming, so to speak, unintended for big data? I mean, is there an extensibility to it? Where do you guys see this going from your standpoint? Knowing what you're doing now, connect the dots forward. As I said, if I could answer this one once for you Ian, Ian's technology with virtualize incredible because they take this data and they animate it and it looks just real. I mean, to see his animation compared to the real video, the TV, there's actually less and less difference. So the ultimate goal for this I think from the visualization point of view is to use like the virtual reality because with the data, Ian can take that into a virtual world. And so people sitting on there in their home can actually be in the boat sitting with me as I turn my head, they will see what I see out the window, they'll see my gauges, they'll see all of that. I think that that bigger question is the internet of things is the word things. And there are more and more things that are connecting to the internet. So your fridge, your watch, your heart rate, and I think what we're seeing here and it was a real eye-opener for me because I didn't know about Blue Mix. I mean, we come from a small agile company. And the last company I ever believed we'd ever be working with was IBM. There was this monumental shift as they start to take this stuff and understand that it's about analyzing data. It's now no longer about big machines. All this happens on my iPhone. So it's about this tidal wave of data and developing technologies that can sift through the stuff and give us the stuff that's important. You know, I love the new IBM because of the new way that is their slogan, but it's an old school company's belt that's grounded in computing solutions. But they're modern now. They've got the Blue Mix, they've got the big data, the Watsons, not only winning Jeffrey, now they're winning races. So they're a cool company. I think they're very cool. I've been watching them for years and decades, frankly, but like now, recently, they're on the right path. But the challenge outside the tech world is real world. And I think what you guys present is an example of social business, right? Because boat racing is a lot like in the moment, real time. I mean, it's a race. You get heart race. If you make a bad turn, you're out of business. You could die. You could get hurt and not finish where you want to finish. The outcome is very important. But that's like real time. In the moment, people talking on mobile phones, a CEO, you're the captain running the throttle, someone's navigating with the wheel. That's an executive team. It is, it's a great metaphor because you're right with the internet of things now, there's so much instrumentated data coming in to people to make decisions and there's just too much data. So this is where IBM has a technology with Watson to do the cognitive intelligence and SPSS for the analytics server. But what's really key is how do you get that development time to implement that down to a very compressed number which is acceptable, right? And that's where Bluemix really comes in. By having a development environment where you can quickly develop these things, iterate them very fast, as we did here, that's really the, that accelerates as a different shape. And that worked for you. The Bluemix was working fine, being in school. I mean, three years ago, this would have taken three years to do. This time it took three weeks. Yeah, that's awesome. I mean, I think the outcome based in the moment is the new application, whether it's people talking. See, most tech people think like, oh, systems of engagement, it's how to make someone, here's some persona data, maybe they can make a purchase or buy an ad or something. Your application is engaging the ocean, winning the race. Your outcome is very specific. That's like real world. It is, it's like a business. It's a real world. A user out there has got an objective, a customer's customer, they object, their outcome is to win customers and keep their customers. And you know, while other forms of motor racing like Formula One have been doing this before, the difference what we've proven with the IBM technology is to be able to do that in a very violent environment. When you're in the ocean, you've got rooster tails coming at you at a hundred and something miles an hour, you've got big waves, salt water, it doesn't go with electronics, right? There's a lot of complications there and to be able to maintain that stream is we're firing the data up there to make sure what's coming back to us is not only relevant but accurate. That requires an enterprise level type of software. It changes the game, because now you have all the data, post-race, post-mortem, you know, from health to boat status. Okay, final question, we're getting the hook here. Nigel and Ian share with us a quick soundbite on the most exciting thing that's happened to you guys with this new data solution relative to the racing. What's like the coolest thing that's happened? I'd say the coolest thing for me was in the final race of the World Championships. It was a rough race, so our boat is a rough water boat. It was coming into its own and we had three laps to go and we didn't know it, but we had a battery system going out, a charging system going out and if we hadn't have gotten alert to the crew chief about that, we wouldn't have finished and we would have had this great performance but you know, we would have come in, you know, wouldn't have finished the race. So having that alert which got to me so I could switch those systems over and we could finish strong, that was like, it was like, could never have happened before. That's not a good old return on investment. That was like, it was a blue mix. It was a blue mix. The most exciting thing for me was this group of people working in disparate places around the world. We hadn't even met each other and there we turned this thing on. The most exciting thing for me was looking at it and going, oh my God, it works. Collaboration, meeting people. Hey, I love you online. Not great to meet you in person. Yeah. That's what visa means to you. Guys, thanks for coming on theCUBE. Really appreciate it. This is theCUBE, Extracting the Sea from the Noise. Data Ocean, that's the future of big data and these guys are racing in the ocean and we'll be right back to share more data with you this theCUBE. We'll be right back after this short break. One scene three, open port 22017 on the firewall for customer DB access. Install version 2.3 of DB connector and ensure the boast flag is set in case of problems. Isn't the cloud supposed to make business easier? Get the one that can connect to the systems that you already have. Today there's a new way to work and it's made with IBM. So what's going on today? News or a message. Email. Calendar updates. Most of us admit to being overwhelmed by information at work. That's why IBM created Verse. It uses powerful analytics to uncover hidden patterns in your email, calendars and social feeds. It continuously learns how you work and helps you prioritize the people and projects you need to focus on. There's a new way to work and it's made with IBM. theCUBE is a live mobile studio. Bring it to events and we say we extract the signal from the noise. What we do is we get the absolute best guests that are at those events. We bring them inside theCUBE and we talk to them. We have a conversation. I think the difference with theCUBE is that the interviewers are active participants in big data. So it's less about trying to explain what big data is and more about relating what's going on. So we're a big data driven organization. We have a data science team that allows us to see not only what's trending broadly with the public, but what's trending in very specific areas in our specialty in tech. That allows us to vector our analysis and relevance from our research and journalist team into everything that we do as a media company. We really want to make it fun, exciting, but more importantly, extract the data from the guests and extract that metadata and share it with the world so people can use that information to better themselves, better their companies. More importantly, connect with other people to do more business, to define more about the technology. And for us, this is the future. I do a lot of these types of interviews. I spend a lot of time with the press and it keeps a lot of fun. It's ESPN for tech. I think tech's evolved to the point where people want to understand the personalities behind the technology, which probably wasn't that interesting 20 years ago. I think they made it a lot more entertaining, a lot more interesting, as well as putting some technical meat on the bones as well. The value of an independent news organization at an event is that it allows our audience to have a perspective that's balanced, that it's not just the vendors talking to them. It's the community. It's analysts. It's technologists. It's customers, practitioners. So they get a full perspective that's unfiltered. The benefit of theCUBE is a place for conversations with people to connect with each other and to learn about things. And it's a revolution in media. We look at the technology and the people behind it as tech athletes. Those are the folks making the companies, making the technology, really creating the new value in this modern era. And it's fun, it's exciting, and more importantly, it's very social. These days, with social media, people looking to not just read articles, which are great, and obviously SiliconANGLE does a lot of that as well, but being able to see high-definition video, very intimate interviews with entrepreneurs and operators, innovators in the industry, I think is really important. So the job you do in getting this out in a very timely way, I think is really important. We always know that your view is right until you hear a different perspective. So you're always interested and give me some neutral perspective. I'll be seeing it from a different light, right? And maybe ask a hard question or two that I might not have considered. You know, in that sense, right, that independent voice that's always ability to, right, have sort of independent, audited, sort of respected right over the world. It's always just good. The Cube has been called the ESPN of tech, and really our vision is to cover every event that's out there. We really truly want to be a global organization that is at every event, extracting the signal from the noise, being on the ground, giving our audience a sense of what's happening at that event, but also providing analysis and insight worldwide, literally for every event that's out there. You know, I love it. I was actually telling John and Dave, every time I come back to the Cube, you guys have new toys, new cameras, everything's getting bigger. So, you know, having been on it for several years, almost from the very beginning, it's always great to be back. And, you know, you guys do an amazing job, so it's wonderful. It's about connecting with people, and that really is what it's all about. Having the conversations in a very social, collaborative way, and that's what makes it so exciting because people are watching. Hi, I'm Andrew Kreitzer, a business operations manager at LinkedIn, and you're watching the Cube. I'm Chris Selland, VP of Business Development for HP Big Data, and you're watching the Cube. Hi, I'm Stacey Slaughter, Senior Vice President of Communications for the Giants. I'm in the garden at AT&T Park, and you're watching the Cube. I'm Thomas Minnick, business intelligence consultant within our works, and you're watching the Cube. Hi, my name is David Tishkar, Director of Partner Marketing at Cloudera, and you're watching the Cube. Hi, I'm Jim Yu, founder and CEO of Bright Edge, and you're watching the Cube. Live from Las Vegas, Nevada, it's the Cube. At IBM Interconnect 2015. Brought to you by headline sponsor, IBM. Okay, welcome back everyone. We are here live in Las Vegas. This is the Cube, our flagship program. We go out to the events, let's try to see the noise. I'm John Furrier with Dave Vellante, and we are here live at the IBM Interconnect show inside the social lounge, Go Social, InterconnectGo.com. Come, it's a social experience, come engage, read what's going on in the crowd. We have VIP influencers, keynotes, everything's there. Of course the Cube will be broadcasting our commentary and having some fun. Our next guest, Cube alumni, Sandy Carter, General Manager of Cloud Ecosystem Developer Evangelism, and I think I might have missed something. They welcome me. That's good, great, thank you. It's such a thrill to be back. I love the Cube. I follow you guys all the time. So thanks so much for having me. Thanks for spending some time. I know you're super busy and thanks for coming over. So I just want to get your take on this new way. Love the slogan, because you can fill in the blank. A new way to work, new way to build, new way to engage, and you guys are doing a lot of crowd chats. You guys have a huge engagement organization. I've never seen anyone with so many employees Twitter on their own handles. So it's really, that's awesome. But you have a huge community that you've been part of that social business transformation. So here's an update. Where you guys have come from, where you're going on this new way to blank? Well, I think one of the ones that we should talk about is a new way to social. So you recognize that we've got lots of IBM employees out there and we found that one of the biggest influencers of the brand is your employee, right? So the new way to work is employees are your ambassadors, along with your clients. But those employees are the most, most influential folks with your brand. So having so many IBMers out there, blogging and tweeting and snap chatting really makes a huge difference in the impact it has on the brand. And if you think about it, that's really word of mouth at its finest having IBM employees talk about the new trends and what's happening in the marketplace. It's a great way to engage. So a lot of companies try to do that in what you just described, but they fall down. Why do you feel that you've been successful? How are you able to create a climate in which the employees felt comfortable? Obviously, employees of many companies are passionate about their companies or they wouldn't be working there. But how did you sort of entice them? What was the sort of secret to get them to participate? Well, you know, I think there's a lot of things. I think the top things were, first, we train the employees so that they would feel comfortable. In fact, we have a social network inside of IBM. So it's like a great training ground, right? How do you do Bluetooth instead of YouTube? And so you get practice doing tweets and videos and all that inside. That makes people comfortable and confident, right? And I think the second big thing is in addition to the training is we also have a great set of guidelines. So we tell the employees right up front, here's what you can do and what you can't do. And I think it's quite interesting. There was a piece of survey that was done about kids in a playground. And if kids are in a playground and you put them in the center of the playground and there is no fence in the playground, the kids will stay kind of hunkered in the center because they don't know where they go. They don't know where the boundaries are. If you have the same playground and you put the fence out, they'll go to the edges of the fence. They'll push the boundaries. So in reality, what it says is that having some sort of boundary actually helps your employees push the edge, push the limits. And that's what we did right up front is had a set of guidelines. And then the third one, I think is just encouragement from the very top. Doing leaderboards, doing encouraging rockster contests, gamifying it, sitting folks out on missions. I mean, it's just now part of our culture. So how did you get through the top ROI, right? What's the ROI? Why are we spending all our time? I mean, we're going back maybe five, six years now. That's actually a real question. So how did you get through that? And I presume it existed at IBM. It did, it did. Well, I don't know if you know IBM, but we measure everything, right? ROI on everything. And so one of the things that we did is we partnered with the MIT and we took a look at 2,200 IBMers. And we said, what happens if they're out there in social? And we actually looked at the impact of them connecting socially. And that means actually actively connecting socially with other executives and other companies and them connecting with other people and other companies. And what we found is that those employees who connected produced more revenue for IBM than those who did not. And then came the unleashing. And the reason is, if you think about it, your customers are in the driver's seat. Your customers are the ones who really today are controlling the environment. If you have a relationship with them, which is all social is, of course you're going to buy from someone you trust and someone you know. So the executives realized that social was a natural extension of those relationships and it was kind of a return on instinct at the time. Yeah, I like that. Yeah, yeah, yeah. And then how it's turned into actually something you can measure. I'm going to use that. I like that. Yeah, absolutely. That's fantastic. Talk about the new way to build and how that relates to new way to social because we've done a couple of crowd chats. We're titled, new way to engage, new way to social, new way to build. Obviously new way to work is kind of the slogan. But you're now in a new role. I want to get you to explain that specifically because building things is what people with jazz about. I just talked to the guys who race boats at 150 miles an hour and use Blue Mix to get real time data and Watson. The guy's like, Watson's on the top of the bridge. I'm like, I think, is it a person? So like their jazz, data's changing everything, right? So building stuff's important, but the collaborative piece of the people involved now also increases. So talk about this new way to social, new way to engage meets building and your new role. Yeah, so my new role, I think I have the best job at IBM. I don't know if anybody else has told you that, but I do. I am helping to craft the cloud ecosystem. And when I say craft, what I mean is that we're engaging the community of developers, of entrepreneurs and startups, of digital agencies, everyone who's involved in making the cloud successful. And so it involves going digital and engaging those developers where they live. 67% of a developer's engagement is digital. So it's figuring out ways to better engage them, doing the A-B testing, getting things, not just A-B testing to test A against B, but really to create this culture of experimentation that these guys love. So we've been trying out a lot of great stuff. We've sponsored Girls Who Code to get more women and girls coding that gets us into one part of the community. We've done a lot with different cities. So we've recently done digital.nyc, which is pretty amazing. It helps bring together entrepreneurs, investors, developers, digital agencies all together. And I think the really cool thing is that we are a member of the community. We're not taking over the community. We are part of the community. And here at this conference, we announced with Citibank, the Citibank mobile challenge. They decided to be part of that community and we're helping to build up the FinTech community, the financial technology community of developers. And it's quite cool because they're going to base it all on Bluemix. We're going to provide mentors and we're going to do this starting in Europe. We're going to go around to Asia and Latin America. So anyway, you can tell I'm really passionate about it. Well, the city story is fantastic. I mean, the keynote the other day was beautiful. Heather is right on. Wasn't she amazing? Yeah, she was amazing. So this developer actions, everyone knows when the developers, you win the battle, if you will. What we learned at the last time we were on with IBM developers are people. They're not just when you don't win the developers, when the people, they're human beings, right? Social is very important. How do you win the audience? How do you win the crowd? How do you win the people? In a way that's an extension of what you guys are used to, you know, owned media, paid media. We're talking about this new concept of paid, owned and it's not new to us in the business, but like you buy ads to advertise stuff. You own your content. You guys create a lot of content with an IBM, but you guys are doing some really amazing things with social that's opening up this new way to earn and win the crowd. Earn media, can you explain what that means and how you, and how do you do it? Because developers, you have to earn it. Yeah, and developers you don't market to, right? I mean, that's not what they want as people that's not something that's top of their mind for them. I think the great thing about developers is it's really about that developer-to-developer conversation, right? They want to talk to someone who's like them. They don't want to talk to a marketing person when they're developing code. So a lot of our engagement has been looking at ways that we can engage them in their local environment, in the wild. So we do a lot of things with GitHub and Stack Overflow. And when I say do a lot of things, it means getting our ambassadors inside of IBM, our technical folks into the communities, into GitHub, into Stack Overflow and making that real for them. It means being engaged in things that they're interested in, like the city mobile challenge that we're doing. That's something that the developers around the world wanted to do. They want to transform banking. And so we're engaging with them where they are. So there's so much action going on in Silicon Valley, but it's like a little slice of the world. You talk to VCs and they say oh yes, all our developers develop on this platform or that platform. It's like one-tenth of one percent of the entire marketplace. I'm interested and intrigued by what you're doing in New York in particular. There's such a vibrant community going on in New York. So I wonder if you could talk about that world outside of Silicon Valley and how you're specifically targeting that crowd. Yeah, it's really fascinating. New York, by the way, has the fastest growing startup community in the U.S. So Silicon Valley's bigger. New York is growing faster. I'm at Boston. I'm jealous. Yeah, Boston's next. I'm serious. The really interesting thing about the city approach is that developers in these communities are very local. And so New York is very focused on development and entrepreneurship in retail and financial services. And so we meet the developers where they are there. In fact, the New York Tech Meetup has 42,000 developers that are engaged in that community. And financial services has always been a leader in tech. Yeah, yeah. And then you go, you know, if you go then to Boston, we see developers there who are biotech, who are healthcare focused. And so the great thing is that we're very flexible, we're experimenting, we're leveraging social to get into the communities and to deliver value where we are. So in Boston, we really hone and focus in on healthcare and biotechnology, education, universities that are really important there. And we're doing the same thing across the world. So in London, you know, they have a set of things that they love, right? In New York City, for instance, we partnered with the mayor's office and the Economic Development Center because that's who the developers and the entrepreneurs trust. We would never do that in San Francisco, right? We would go with another row. The same is true in Singapore, right? There's two or three groups. It's a global landscape. It's a global landscape. It's global, but every community is local. Yeah, we're getting the hooky, but I want to just give you a chance to explain to folks some of the stats here. I saw a great tweet yesterday, 21,000, some numbers you shared or retweeted from someone who's you came up on the radar. What else is going on here at Interconnect? Share some stats, share some of the cool things that are going on here, the awesomeness at the event and what your plans are in your new role this next year. What are your key things you're going to focus on, high level, to build that community up and win those people over? Well, here, of course, we've got 21,000 people here all across the board. One of the things I love is that 45% of them are brand new, first time at an IBM conference. And I love Devat. If you haven't been over to the MGM, we've got a whole section of Devat Interconnect, which is just for developers. We have about 2,000 developers there and they're tinkering and playing. In fact, one of them said yesterday, you know, he's naked without his coat, so he runs over to the Devat so he can code, code, code away. So, so many exciting things. In fact, later today, I'm going to be doing growth hacking for the entrepreneur and the startup business, so. At Devat. At Devat. And we're broadcasting the Devat on the Devat channel. If you go to the Go TV and the main tent, you'll see that we have three channels. The third is the Devat, so we're broadcasting all day, today and tomorrow. So, we'll have your talk going on there. Oh, that's great, great. Sandy, thanks for spending the time with us. This is Sandy Carter, live inside theCUBE, sharing the data with you and being authentic, as usual, great social mojo at IBM. We love working with you guys. Congratulations on your success and continue as we keep learning more and more about the social business equation and it's early, early days. This is theCUBE doing our share. Dave Vellante, John Furrier. We'll be right back after this short break. One scene three, open port 22017 on the firewall for customer DB access. Install version 2.3 of DB connector and ensure the boast flag is set in case of problems. Isn't the cloud supposed to make business easier? Get the one that can connect to the systems that you already have. Today, there's a new way to work and it's made with IBM. theCUBE is a live mobile studio. We bring it to events and we say we extract the signal from the noise. What we do is we get the absolute best guests that are at those events. We bring them inside theCUBE and we talk to them, we have a conversation. I think the difference with theCUBE is that the interviewers are active participants in big data. So it's less about trying to explain what big data is and more about relating what's going on. So we're a big data driven organization. We have a data science team that allows us to see not only what's trending broadly with the public but what's trending in very specific areas in our specialty in tech. That allows us to vector our analysis and relevance from our research and journalist team into everything that we do as a media company. We really wanna make it fun, exciting but more importantly, extract the data from the guests and extract that metadata and share it with the world so people can use that information to better themselves, better their companies. More importantly, connect with other people to do more business, to define more about the technology and for us, this is the future. I do a lot of these types of interviews. I spend a lot of time with the press and theCUBE's a lot of fun. It's ESPN for tech. I think tech's evolved to the point where people wanna understand the personalities behind the technology, which probably wasn't that interesting 20 years ago and I think they've made it a lot more entertaining, a lot more interesting, as well as putting some technical meat on the bones as well. The value of an independent news organization at an event is that it allows our audience to have a perspective that's balanced, that it's not just the vendors talking to them, it's the community. It's analysts, it's technologists, it's customers, practitioners, so they get a full perspective that's unfiltered. The benefit of theCUBE is a place for conversation with people to connect with each other and to learn about things and it's a revolution in media. We look at the technology and the people behind it as tech athletes, those are the folks making the companies, making the technology, really creating the new value in this modern era and it's fun, it's exciting and more importantly, it's very social. These days, with social media, people looking to not just read articles, which are great and obviously SiliconANGLE does a lot of that as well, but being able to see high definition video, very intimate interviews with entrepreneurs and operators, innovators in the industry, I think is really important. So the job you do in getting this out in a very timely way, I think is really important. You always know that your view is right until you hear a different perspective. So you're always interested and give me some neutral perspective, help me see it from a different light, and maybe ask a hard question or two that I might not have considered. You know, in that sense, that independent voice that's always ability to have a sort of independent, audited sort of perspective of the world. It's always just good. theCUBE has been called the ESPN of tech and really our vision is to cover every event that's out there. We really truly want to be a global organization that is at every event, extracting the signal from the noise, being on the ground, giving our audience a sense of what's happening at that event, but also providing analysis and insight worldwide, literally for every event that's out there. You know, I love that. I was actually telling John and Dave, every time I come back to theCUBE, you guys have new toys, new cameras, everything's getting bigger. So, you know, having been on it for several years, almost from the very beginning, it's always great to be back and you guys do an amazing job. So, it's wonderful. It's about connecting with people, and that really is what it's all about, having the conversations in a very social, collaborative way, and that's what makes it so exciting how people are watching. Hi, I'm Andrew Kreitzer, a business operations manager at LinkedIn, and you're watching theCUBE. I'm Chris Ellen, VP of Business Development for HP Big Data, and you're watching theCUBE. Hi, I'm Stacey Slaughter, Senior Vice President of Communications for the Giants. I'm in the garden at AT&T Park, and you're watching theCUBE. I'm Thomas Minnick, Business Intelligence Consultant within our works, and you're watching theCUBE. Hi, my name is David Tishkart, Director of Partner Marketing at Cloudera, and you're watching theCUBE. Hi, I'm Jim Yu, Founder and CEO of Bright Edge, and you're watching theCUBE. Live from Las Vegas, Nevada, it's theCUBE at IBM Interconnect 2015, brought to you by headline sponsor IBM. Okay, welcome back everyone. We are here live inside theCUBE in Las Vegas for a special presentation at IBM Interconnect. This is theCUBE, our flagship program. We go out to the events, then extract the civil noise. I'm John Furrier with Dave Vellante, our next guest, Eric Swain, who's the VP of Product at Mutual Mind, based out of Dallas. Great product, amazing visualization of analytics, powering all of the IBM big boards all over the show and on the big stage. Eric, great to see you. Welcome to theCUBE. It's my pleasure, thanks for having me. I mean, you guys saw Visualization as a pretty big deal a couple of years ago. We saw you guys, I think it was two years ago at an event, small little board inside a booth, now you're expanding, you're on the big stage. What's the life you get to make it work on the big stage? The data, you get the data backend done, but now you got to pipe that into it. Just share with folks what you guys have done here, what you're doing, and how did you do that big analytics board? Yeah, well I know I succeeded when I posted it on Facebook and my mom said, wow, that you actually do something, and she figured out what I actually do for a living. Yeah, we've got over 75 panels worth of Mutual Mind here at the conference, so this is a big coming out party for us, we're really excited. I mean, everything you see here is on IBM's soft layer, so we're running from, actually our offices are about a mile away from their headquarters in Dallas. We're very excited about what that offers in terms of bare metal plus public hybrid. We also are powering analytics behind the scenes to analyze the event and to provide social business team and others with insights about what's going on with the conference from a digital perspective. Okay, so you guys are obviously heavy software company, sort of off acid BI is really your focus, but a big part of what you do is design. Yes. I mean, the boards are gorgeous. Thanks, thanks. I know there's a big movement obviously to find developers who are also sort of artistic and designers. Can you talk about your culture in that regard, in that respect? Yeah, I mean, our developers have to be full stack. I mean, there's no one way or two ways about it. You have to jump in with both feet. We were really careful up front to set a clear design vocabulary for what we're going to build a board. So when new data, new data sources come in, we already know what our language is for how we're going to show that data on the screen. And our developers are just killer. They do the full stack front to back. We focus primarily on responsive web so that everything will work on every device and that automatically makes them design decisions for us as well. So when you say responsive web, but you off the area talked about having a mobile app as well. So, but their primary is a responsive design. So the mobile app you see is a web app and that's why we're able to push it out to multiple devices at once. So if you go to ibm.biz slash ibm engage, you'll see our mobile engagement center as compliant with iOS and Android, any of those browsers on those devices. Okay, but I can run that same URL if I run it on my laptop or my iPad, it's going to just respond to whatever dimension. But do you design for, so how do you make that trade off, right? Cause a lot of responsive designs are okay on a bigger screen and okay on mobile or they're really good on mobile, not so great on laptop. How do you balance that? It's a weird world. When we launched the engagement center in May of 2013, nobody asked about touch, nobody really cared. I think now the cost of touch screens has fallen so dramatically that we're getting that question a whole lot. So we said, first we're going to launch it on a mobile, in a mobile web app, then we're going to back that into the large screens because we wanted to learn our lessons on the small screen and then push them out to the big screens. So let's talk about data sources. Yeah. What are your data sources? A lot of people point to Twitter first. It's the fastest source of data we have. We are a plugged in partner with Gnip, which is Twitter's data arm. So we're part of about a dozen companies that have that status. We participate in pilot programs with them, help them optimize their services. We're very excited about that relationship with Twitter because it gives us such a rich data set. Full firehose. Full firehose access. Okay. We also have access to thousands of forums, blogs, YouTube, Reddit, Tumblr, Instagram, all of those at firehose levels. So we're able to bring in millions of data sources at once and bring them to bear. We even do international data sources like Sina Webo, Tencent Webo, VK, Naver out of South Korea. Basically I have a marketplace I can go to for data and we're very modular in consuming that data and from any source as possible. So we were at Oracle OpenWorld a couple of years ago and we watched Larry Ellison give a demo. And he talked about, it was a Twitter based demo. And he talked about doing all this stuff with Twitter and a filter and a dupe and then jamming it into a big giant Exadata box. And we were looking at saying, that's kind of cool, but is it real time? Yeah. No, it's not real time. Are you real time? Entirely so. In fact, the distance from tweet published to screen is about 12 seconds. Considering that tweet probably bounced off a satellite somewhere, that's pretty good. All right. How do you guys handle like spam and like spam filtering and fostering it? Yeah, so we have a lot of tools there. We have keyword based tools to filter out most of the bad language. Actually interesting, we partnered with a company also in Dallas called Image Vision that does image analytics. So every image feed you see here on the boards is run through their analytics to filter out nudity. So we have literally a nudity filter. I guess you could filter in nudity if you really wanted to, but we have a filter to remove out any images you might not want to see on the big screen. So you guys taking real time feeds and doing image recognition filtering that? Yeah, so we have our partner, Image Vision. We hand those off in real time, get a result, bring that back in real time and display in real time. And then how do you determine, so I literally, I was staring at the board for, I don't know, 10, 15 minutes and I wish I had more time, I had to go, but so I'm looking at the leaderboard. What am I looking at? How do you determine, so I'm sure you have some algorithm, a clout-like thing maybe. We have a lot of options for how to do that. I mean, a lot of our customers are asking for different ways to measure influence. So we have all the raw metrics like clout score, following followers. What you saw there was more about volume of mentions, so we had different topics that were re-ranking. And then we're also working on tools to better understand influence. And that's where our work with IBM Watson comes in because we're analyzing personality traits using Watson personality insights to better understand not just an influential person, but is that the right person? I'm one of the websites, but maybe it was the board. I saw Watson sort of powered by Watson. What is the relationship between Watson and what you're doing? Right, we work very tightly with the Watson personality insights product team because we're bringing to market a solution. We've already brought to market our social portraits widget, which is what you saw, which you'll see at the conference here, which takes a group of influencers and displays their social portrait. Their realization of their personality vectors, as well as their influence in clout score distribution. So that's the clout score of their followers, which is interesting insight there. And also the topics that their followers most often talk about. But then also we're working on further into instigations where we can implement personality insights on a real-time level so that we can target individuals based off of not just clout score, following, and all those other lovely things, but also are they open to change? Do they have a degree of altruism? Are they analytical? They're purists, open-source purists. They have some interesting topics there. Is that a text analytics capability? Yeah, so the personality insights tool investigates your, basically last 200 tweets, and they use linguistics to determine how that text is indicative of your personality traits. So you can essentially build a persona. So we would be like bipolar. It's schizophrenic, bipolar. It's us who are all personalities up there. John's talking about open daylight and neutron, then talking about social business, what the hell's going on in your brain, driftwood? Data ocean. What's the coolest thing that you guys are doing on the graphics that people talk about the most? What's the sound? Yeah, I think one of the cool things we're doing is called the perspective motion widget. You'll see it out here as well. It's a 3D visualization. And what's cool about that is there's no software involved there as well. It's using a browser language called WebGL, which actually iOS 8 just brought that onto iOS devices. So the perspective motion widget lets you see basically kind of cards floating in a star field and they kind of swarm back and forth. So that was our first implementation of 3D. We'll be doing a lot more of that in the coming year as well. But it's amazing that browser technology has caught up to that level of almost game development. So talk about the size of the company, what you guys are doing. How big are you? Are you growing? What's the state of the funding? Sure. Growth, et cetera. We're actually a fairly, a company's been around for four years. We're a team of about a dozen people, which you consider what we're doing with a dozen people. We punch above our weight class pretty well. We actually have bootstrapped the company and angel funded. We're seeking rounds of investment, but we've been able to do a whole lot when very efficiently with our capital. And you know what, knowing you guys and have previous conversations folks out there, we've chatted before, want to tee that up. Because really being bootstrapped is a huge accomplishment. And in this market, you guys have a great product that certainly renders itself well. So congratulations. You know, I always say entrepreneurs that can bootstrap and grow without outside funding are the true tier one. Now you might need to get rocket fuel if you have that rocket ship all ready to go. That's right. Or everything's clean. Then you bring in the big money scale, ride the rocket ship. But you guys are building it out in real time. It's pretty phenomenal. Well, I think that this is the kind of moment that that type of fuel is necessary, right? I mean, we have shown a lot of capability at a lot of scale with IBM, literally in physical inches as far as the screens. Are they selling your product for you? Or are you guys joint sailing together? Is there a real business relationship? So we have a lot of relationships with IBM, both as a vendor and as a reseller. And those are continuing developments. So they're reselling your stuff or that you're reselling their stuff? But they are reselling our tools or we're working on that solution. As well as we are a vendor to them so they use our tools for detecting them. Well, not just at events but also in the wild for detecting opportunities for social selling. So we're working on that project as well. We have a lot of those different types of relationships with IBM and so we're both vendor as well as reseller as well as partner. So how do you position with the sort of sentiment analysis guys? Are you head to head with them? So we have our own proprietary sentiment and analysis engine. But I think what's really powerful about our platform is we've built from the ground up with an integration mindset so we can bring in other external sources of enrichment. I mentioned image vision. You know, that plug in for that image analytics API was a week worth of coding for us. It's really amazing how quickly we can bring in someone that brings value to the table like Watson and use that to enrich the social data we already have. Well, what's the real time nature of what you do? I think differentiate you from some of the sort of gen one sentiment analysis guys that just sort of. You know, a lot of tools focused and my background is on agency side for 10 years running and leading social analytics teams before I came on here. In fact, I was a customer before I came part of the company. A lot of those tools are doing research and they're doing really well historically. But we realize that marketers now want not just impressions and volume and mentions. They want action. They want something now. So we've laser focused on the real time, visualizing it. And then we have an engine called adaptive listening. It's kind of like if this then that for social media. So you can say if cloud score above 50 and mentioned by brand and it's negative sentiment kick off a workflow task for Eric Swain because he better respond to that stuff like that. We see that as the moment that makes social business go. And you've got a killer API to go on with all this. Yeah, so if you're gonna dev.mutualmind.com our API documentations all public. We're very proud of that. We integrate with a lot of partners that use our tools for social listening or they have a box in their flow chart code social and they don't know what to do there and they plug us in. It's great. Eric, thanks for coming on theCUBE. We're getting the hook here. We've got to run social businesses about the data and visualizing it, taking action, the insights engines, IBM's all over this. And so we're in theCUBE and we'll be right back after the short break. I'm John Furrier with Dave Vellante. It's one scene three. Open port 22017 on the firewall for customer DB access. Install version 2.3 of DB connector and ensure verbose flag is set in case of problems. Isn't the cloud supposed to make business easier? Get the one that can connect to the systems that you already have. Today there's a new way to work and it's made with IBM. theCUBE is a live mobile studio. We bring it to events and we say we extract the signal from the noise. What we do is we get the absolute best guests that are at those events. We bring them inside theCUBE and we talk to them. We have a conversation. I think the difference with theCUBE is that the interviewers are active participants in big data. So it's less about trying to explain what big data is and more about relating what's going on. So we're a big data driven organization. We have a data science team that allows us to see not only what's trending broadly with the public, but what's trending in very specific areas in our specialty in tech. That allows us to vector our analysis and relevance from our research and journalist team into everything that we do as a media company. We really want to make it fun, exciting, but more importantly, extract the data from the guests and extract that metadata and share it with the world so people can use that information to better themselves, better their companies. More importantly, connect with other people to do more business, to define more about the technology and for us, this is the future. I do a lot of these types of interviews. I spend a lot of time with the press and theCUBE's a lot of fun. It's ESPN for tech. I think tech's evolved to the point where people want to understand the personalities behind the technology, which probably wasn't that interesting 20 years ago. I think they made it a lot more entertaining, a lot more interesting, as well as putting some technical meat on the bones as well. The value of an independent news organization at an event is that it allows our audience to have a perspective that's balanced, that it's not just the vendors talking to them. It's the community. It's analysts, it's technologists, it's customers, practitioners. So they get a full perspective that's unfiltered. The benefit of theCUBE is a place for conversations with people to connect with each other and to learn about things and it's a revolution in media. We look at the technology and the people behind it as tech athletes. Those are the folks making the companies, making the technology, really creating the new value in this modern era and it's fun, it's exciting and more importantly, it's very social. These days, with social media, people looking to not just read articles, which are great, and obviously SiliconANGLE does a lot of that as well, but being able to see high definition video, very intimate interviews with entrepreneurs and operators, innovators in the industry, I think is really important. So the job you do in getting this out in a very timely way, I think is really important. We always know that your view is right until you hear a different perspective. So you're always interested and give me some neutral perspective, help me see it from a different light, and maybe ask a hard question or two that I might not have considered. You know, in that sense, write that independent voice that's always ability to write, have sort of independent, audited sort of perspective right out of the world. That's always just good. theCUBE has been called the ESPN of tech really our vision is to cover every event that's out there. We really truly wanna be a global organization that is at every event, extracting the signal from the noise, be on the ground, giving our audience a sense of what's happening at that event, but also providing analysis and insight worldwide, literally for every event that's out there. You know, I love it. I was actually telling John and Dave, every time I come back to theCUBE, you guys have new toys, new cameras, everything's getting bigger. So, you know, having been on it for several years, almost from the very beginning, it's always great to be back and you guys do an amazing job, so it's wonderful. It's about connecting with people, and that really is what it's all about, having the conversations in a very social, collaborative way, and that's what makes it so exciting how people are watching. Andrew Price, our business operations manager at LinkedIn, and you're watching theCUBE. I'm Chris Ellen, VP of business development for HP Big Data, and you're watching theCUBE. Hi, I'm Stacey Slaughter, Senior Vice President of Communications for the Giants. I'm in the garden at AT&T Park, and you're watching theCUBE. I'm Thomas Minnick, Business Intelligence Consultant within our works, and you're watching theCUBE. Hi, my name is David Tyshkar, Director of Partner Marketing at Cloudera, and you're watching theCUBE. Hi, I'm Jim Yu, Founder and CEO of Bright Edge, and you're watching theCUBE. Live from Las Vegas, Nevada, it's theCUBE. At IBM Interconnect 2015. Brought to you by headline sponsor, IBM. Okay, welcome back everyone. We are here live. This is theCUBE in Las Vegas with IBM Interconnect, a special presentation of theCUBE where we go out and extract the signal from the noise. I'm John Furrier, the founder of Silicon Angle. Joe McCose, Dave Vellante, co-founder of MugiBond.org. Our next guest I'm super excited for because we talk all the time online. We don't see each other in person except at these events. It's good to have an intimate conversation. Next guest, Amber Armstrong, Program Director, IBM Social Business. Welcome to theCUBE. Thank you so much. theCUBE is one big crowd chat, but three of us. I'm hoping we really can't chat with anyone else, but there is a crowd chat online right now. So if you're watching, go to crowdchat.net slash IBM Interconnect, we'll be watching. Bring the questions in. Amber is probably the best power user we've seen on the crowd chat. Mainly because you guys are such a great community, but you guys are really doing well. And people who know me and Dave know that we love social business because it's not about the PR and the buzz and just talking to yourself. It's actually connecting with relationships and using that interaction engagement to create more attraction, more people interacting, to create data, to create engagement. And that's the holy grail right now. So tell us, how's it going? How did you get here? And can you be prolific at the same time in creating value? Yeah, I think so. I don't know, I'll try. No, when we do the crowd chats, one of the big pieces that works for us most is we bring in our influencers. And you bring them in based on the topics. You try to figure out what's going to be the most valuable to the audience around this particular topic. And you bring in the right influencers and you run through the questions. We try to make our crowd chats really visual. And so we put the questions up with the tiles and we also try to get things so that they're also kind of pushing out to Twitter overall and try to bring as many people as we can into the conversation. What I really also love about it is it's activating. And I think the term I like to use is crowd activated innovation because what you're doing is, you're not selling anything. You're providing a virtual venue around a constructed theme. So it kind of looks top down, structured, but the soil of organic growth is all going to be based upon the interaction, the topic. So it's truly the winning form in my opinion of what we call earned media. So I want to get your take on this. These are gonna be the old way. Webinar, we have a webinar. Give me your email address. Give me your first born. We're going to sell you something. Watch this video. There's no interaction. And maybe you can ask a question at the end. So that's webinars, the old way. How would you compare and contrast this new way of social? It's really about starting the conversations early, often really engaging with people so that when they think of social business, they think of how are they going to reach their customers? They're thinking about commerce. They automatically think of IBM and then they drive into our own channels to get the additional information and really start engaging with us. But we spend our full time providing value out to them. Even when we're not unsolicited, we're not trying to push them towards anything. But if we just push out value, then we believe that they will come back to us. And we're seeing a great increase on our website visits. We've done a lot of work with Ted at IBM. We just did the IBM verse launch and all these things, because the value we're providing to customers, we're seeing that land back on our own properties. So talk about the experience you've had with Ted at IBM and other chats you've done. That's the crowd chat thing we've been interacting on. But I bring it up to crowd chat because we've built it to be easy to stand up. What you're doing is you're standing up social programs, almost ad hoc but yet structured themes. This is the new way, this is the cloud way. Standing something up is a cloud geek term. Stand up for some new servers. So with the hashtags, they provide a great direct response opportunity vehicle. So hey, advertise the hashtag, direct response, I'm noticing you're doing that. And users are using hashtags to navigate. So this trend of the hashtags being a direct response vehicle for advertising an event, if you will, or chat. And then users navigating is the perfect storm for this innovation. Talk about how you guys did that, because at Ted at IBM, you guys executed with non-disruptive operations in your group. You just plugged in the social programs and things just kind of smooth. It's about building series of content. And so what we did is we started out with, we would have influencers come in, we would bring in our speakers that were gonna be at Ted, and we started months and months before Ted, where we would put together what we called smartpats. And it would be, we would do a tweet chat, we would have infographics blogs, and you put that content out there so that you're already building awareness for that speaker and people are interested. They're like, oh, we wanna come and talk to this person. And so it just kind of, you do it in a series so people get used to it. And now we switched it and we're doing the, because Ted at IBM happened last year, now we're on a new way to work. And so we do our new way to work, tweet chats. Same kind of thing. We put it out there. We did a great influencer event with Pure Matter and we filmed the influencers and we've now put out blogs, tweet chats. The same kind of process, just in a series that people learn to kind of constantly come back for it. So a couple of other things. Your Twitter stream is very visual, I noticed. 99% of what you tweet has a visual in there. Is that just based on you know that it plays better? Is it based on research that you guys did? Can you talk about that? Yeah, yeah, it's a rule. So we always use the visual. We actually use dynamic signal to a lot of our employee advocacy. And you have to have a visual in there. So that's one of the reasons you see when IBM employees are sharing, then it's because they're pulling it out of dynamic signal, getting it out to all their channels. But we also, we have rules about, if we're gonna put an image on there, we'd use it to the exact Twitter dimensions. Cause that can still play in Facebook and LinkedIn, but you gotta make it so that when someone's looking in that preview screen that they see the core message, or sometimes a couple of things I posted last night was I posted a picture of, it's really a silly example, but a cupcake that had a new way to work on it. And it was kind of this interesting image and I looked at the tweet stats on it today and 190 people looked at that image and it was just a cupcake. Images are fantastic. So the dynamic signals part of your workflow, it's a, I know a little bit about it, it's like an employee advocacy tool. Yeah, it's an employee advocacy tool and what it does is it allows our, we have about 500 employees that share very actively for a social business. IBM on whole has about 6,500 that are sharing our content all through dynamic signal. My team puts the content in there and then you go in and 10, 15 minutes a day, you can share out that content and you can automate it to go out. The way I tend to do it if you watch my stream is I tend to post things four times because it hits the different time zones. And then I've tried it out, I don't lose engagement by doing that. I get the same, sometimes the third time I post something it's when it gets the most engagement. And so it's really fun to kind of watch and just kind of see. That's interesting, so you're not worried about the repetition. Repetition is actually a good thing because you're going to hit different parts of your social graph. What about email marketing? Does that still fit into this whole social plan? Yeah, it does, it does. So one of the things that we just launched was IBM Burst and hopefully you guys are hearing a lot about IBM Burst here at the conference. And with Burst, we wanted to drive registrations. We wanted people to sign up for Burst. It's a premium, it's this great product, but we need names, email addresses, titles, all that kind of great stuff. So Burst is now being launched, we're starting to ramp people into it, but there's this whole timeframe from when we did the launch in November until now. And so we're just now starting to bring people in. We've been continuing that conversation via email. We've been giving people access to private content so it's unique, only registered people get to see it. And then we're pulling people into Burst based on some priority things. For example, people that attended ConnectEd, people that are registering here from Interconnect are also going to get prioritized. If I asked companies, let's say a year and a half ago, do you put Twitter handles in your CRM? I would say close to 100% would have said no. Right. And that's starting to change. If I ask you that, what's your, how are you using things like Twitter handles? I think we're still learning on it, but we are. We definitely do it. We also use a lot of tools. So an interesting kind of thing, a stat that I just looked at this morning is we use a tool called Mutual Mind. I think you guys just started talking to Mutual Mind, right? Yeah, so we use Mutual Mind. So we have all of our influencer handles, all of our employee advocacy handles. And I can tell you what percentage of the Twitter impressions were driven by those groups. So we've got 20 social influencers here, and yesterday that drove 35% of the impressions for the overall conference. And so being able to track those handles, it helps you understand how many, where are you getting the biggest impact? They're a small percentage of the overall population, yet they're driving. Yeah, they're 20 people. So maybe what? Okay, so I got to ask you the question, because I love this, this is my favorite. You know I love social. What does Join the Conversation mean? If you advertise Join the Conversation, where do I go? Is there like a website? Is there a Join the Conversation website? Do I go to Twitter? Or do I go to Tumblr? Do I go to Instagram? Is there a hashtag? You guys are figuring this out. I mean, honestly, it's a little biased with CrowdChat, but if this audience is generating 35% of the activity, they're essentially ginning up the conversations. How does someone join? The hashtag. The hashtag we're using is New Way to Work. So what you're seeing us do now, we've been having the first conversations on that hashtag. We've been talking about the future of work. We just launched a new website a couple days ago, IBM.com slash futurists. And all of our influencer content is there. You'll see all the videos, all of that stuff. So if someone can go there, then the actual conversations are happening on Twitter. Go in and we're now joining that New Way to Work conversation with the IBM Interconnect conversation by kind of merging those handles and helping those communities get to know each other. Yeah, I got to say, that is such a great strategy because with the CrowdChat, it's not a full in the wild. People love to go walk around the park, if you will, of the social web, which is Twitter, but in the moment, that's how you meet people. Then you can have structured conversations and record them. So what's the next thing that you're seeing is the next innovation beyond that? So I'm a user, I want to join the conversation. I dial up Twitter, that's the channel, New Way to Work, hashtag. I come in, there's a lot of noise in there. What are you guys doing? You can drive the websites, you've got CrowdChat, you've got your ambassadors. And it's the biggest thing that I'm focused on is getting other people to tell our story. And they don't do it on brands, they do it, you know, hopefully not terribly off brand, right, but- In their channel, what they like, shoot. Letting people tell that story is really important because you want your employees to tell it, you want your customers to tell it, you want your external influencers to tell it, you want industry experts to tell it. And so we're building relationships with all of these people and letting them tell their story that is really closely aligned to ours. And when you want to engage in that conversation, well, you go to the hashtag, of course. But you also go to the person that you know that you trust, right? So you go to Brian Kramer, Brian Fanzo, or Jeff Tieng. And there's no one answer. People have their little, come to my little house and we'll sit here or let's go in the park or let's go here. So it's about horizontally scaling this conversation. Do you see it? Yeah, absolutely. And you go to your employees, right? Or our employees, but you go to your friend who works at IBM, you say, hey, I heard about this thing, you know? So it's all about finding what's the most trusted route and let those people tell the story. And then we are there to kind of catch and receive. Awesome. Well, I would like to just end the segment by saying thanks, great to work with you guys. Share with the folks out there, just best practice, philosophy. What's the new way to think around social? What's the new way to execute and bring some of these best practices into their company? So you think they can move social from a PR activity that no one really sees value other than creating a short-term buzz, splash in the pool, if you will. Or to take it to the next level, what's your advice, mindset-wise, how they should think, how they should work it, how they should build it, how they should execute it? I think everybody should have an employee advocacy program. It's astounding the amount of impact you can drive by doing that. And for companies that don't, I mean, it's so easy to start. And it makes such a huge impact. We started with 60 people. In one week, we drove 35,000 clicks. Right now, our advocates are driving 55,000 clicks. That's really impactful and it's working. And so to start with employee advocacy, as you start to ramp up, then you can build in more of this influencer piece and working with these external influencers. And then what I think the real magic is taking the external influencers and powering their content with your employee advocates and really merging those, you've got this kind of shared value overall. And it's been great. That's the owned, paid, and earned media coming together in a very clean, authentic, fully transparent way. And it's sharing the value. You know, there's a lot of different ways to share value across influencer channels, all the different channels. And so finding ways to really do that in meaningful ways that you can do with sponsorships, that sort of thing. There's a lot of different ways to get out of it. It's data-driven too, so it's all data-driven. Absolutely. Amber, you guys have lightning in a bottle. Congratulations, it's just the beginning. So I know it's going to morph and take a hold of the direction. I've always been a big fan of social business and I would just be in a long time IBM Observer. You know, back in the 90s, IBM pioneered e-business, which no one uses anymore. It's just called the web, it's called the internet, right? Now, social business is the same thing. So I really think you guys are honest with us as a company and when you're doing it, congratulations. This is theCUBE, sharing our social media view with Amber here, talking about the best practices, new way to work, new way to build, new way to collaborate, new way to engage, new way to measure it, new way to connect with customers through all this new great social media and social business. This is theCUBE. We'll be right back after this short break. First time on theCUBE, it was fun. We'll do it again. We'll do it again. Yeah. I think what I've come to find, I think my second time on theCUBE is, I mean, it's just such a real-time, high-energy experience. It's very good because there's no filtering of questions. I was not practiced, other than saying, go and get up there. So it was quite good, it was part of the experience. I think what you're going to get is the real answer. You know, it's not scripted, it's authentic. It really allows you to communicate quickly, you know, your point of view about who knows what they're going to ask you. So I thought it was great. I mean, I didn't know what the questions were ahead of time. They asked some good ones. I think some ones that if it was an unbiased thing, I mean, a biased thing, I don't think we would have got it. And I think that's what people want. They want those questions and it's hard for us sometimes to ask them unbiased because you're biased by nature. So it's great to get those questions and you'll be able to answer them. Like I said, you know, I love the energy. I mean, these guys ask good questions and obviously not only them, it's the Twitter feeds coming in from questions from the audience. Sometimes it's a question nobody wants to ask but they're thinking, so it's good. It's a great way to sort of, you know, answer those tough questions. It gave me an opportunity to hopefully share with the people watching, you know, some of why we're doing what we're doing. Is a live mobile studio. Bring it to events and we say we extract the signal from the noise. What we do is we get the absolute best guests that are at those events. We bring them inside the cube and we talk to them. We have a conversation. I think the difference with the cube is that the interviewers are active participants in big data. So it's less about trying to explain what big data is and more about relating what's going on. So we're a big data driven organization. We have a data science team that allows us to see not only what's trending broadly with the public but what's trending in very specific areas in our specialty in tech. That allows us to vector our analysis and relevance from our research and journalist team into everything that we do as a media company. We really want to make it fun, exciting but more importantly extract the data from the guests and extract that metadata and share it with the world so people can use that information to better themselves, better their companies. More importantly connect with other people to do more business, to define more about the technology and for us this is the future. I do a lot of these types of interviews. I spend a lot of time with the press and cubes a lot of fun. It's ESPN for tech. I think tech's evolved to the point where people want to understand the personalities behind the technology, which probably wasn't that interesting 20 years ago and I think they made a lot more entertaining, a lot more interesting as well as putting some technical meat on the bones as well. The value of an independent news organization at an event is that it allows our audience to have a perspective that's a balance, that it's not just the vendors talking to them, it's the community, it's analysts, it's technologists, it's customers, practitioners, so they get a full perspective that's unfiltered. The benefit of the cube is place for conversations for people to connect with each other and to learn about things and it's a revolution in media. We look at the technology and the people behind it as tech athletes, those are the folks making the companies, making the technology, really creating the new value in this modern era and it's fun, it's exciting and more importantly, it's very social. These days, with social media, people looking to not just read articles, which are great and obviously SiliconANGLE does a lot of that as well, but being able to see high definition video, very intimate interviews with entrepreneurs and operators, innovators in the industry I think is really important. So the job you do in getting this out in a very timely way, I think is really important. We always know that your view is right until you hear a different perspective. So you're always interested in giving some neutral perspective, help me see it from a different light, and maybe ask a hard question or two that I might not have considered. On that sense, that independent voice that's always ability to have a sort of independent, audited sort of perspective right on the world is always just good. theCUBE has been called the ESPN of tech and really our vision is to cover every event that's out there. We really truly want to be a global organization that is at every event, extracting the signal from the noise, being on the ground, giving our audience a sense of what's happening at that event, but also providing analysis and insight worldwide, literally for every event that's out there. You know, I love it. I was actually telling John and Dave, every time I come back to theCUBE, you guys have new toys, new cameras, everything's getting bigger. So, you know, having been on it for several years, almost from the very beginning, it's always great to be back and you guys do an amazing job, so it's wonderful. It's about connecting with people, and that really is what it's all about, having the conversations in a very social, collaborative way, and that's what makes it so exciting because people are watching. This is a burrito made with chocolate, soybeans, and apricots. What kind of chef comes up with this? A chef working with IBM Watson on the cloud. Ingredients are just data. Watson turns big data into new ideas, and not just for food. Watson is working with doctors and bankers to help transform their industries. Today, there's a new way to work, and it's made with IBM. It's wherever this is. To get customers to come here and stay here, you're gonna need an app that connects to all your systems, so they can bank, shop, do what they need to do, and you've got to do it fast before the competition does. It's tough out here! You better be on the right cloud. Today, there's a new way to work, and it's made with IBM. Live from Las Vegas, Nevada, it's The Cube at IBM Interconnect 2015. Brought to you by headline sponsor IBM. Live inside The Cube, I'm John Furrier with SiliconANGLE. This is The Cube, our flagship program where we're out to the events to try to see through the noise. Our next guest is Phil Bucklow, VP of Enterprise Mobile of IBM. Welcome to The Cube. Oh, thank you, appreciate it. So, is mobile hot still? I mean, it's pretty explosive, you know? Tell us what's going on. Yeah, well, we see, you know, there's tons of things happening in the mobile space right now. Everybody is kind of realizing that mobile is helping change the way we all live, we work, we play. It's having big impacts on industries of all sizes, big and small, and companies that have figured out how to embrace mobile to change the way they interact with consumers or employees are really starting to see huge benefits in the way that they're getting their work done. Before you get into the IBM talk, I want to ask you one specific question. I was kind of, you know, joking a little bit. Of course, we know mobile's hot. Take a step back, because mobile's certain, give a reality check for the folks watching on how huge mobile has changed business from a sense of how customers are interacting, how apps are changing. I mean, mobile certainly has been like the major catalyst that's sliced through all the issues of, and it puts it right in front of the CEO's face and says, this is the new way that you need to be thinking. Well, everyone, this is the way we've all chosen to interact with everyone and everything. We don't want to wait anymore. We want instant gratification. When I have an idea, when I want to interact with a business, I want to do it right now in one of the 150 times a day I reach into my pocket to pull out my mobile device. And so that's why in so many, you know, the industries now, they've seen it. They've had a taste of mobile. Everybody's got one or two mobile apps out there and they started to see the impact it has on their business. And so now they're thinking about, okay, how do I get more of that? How do I scale that? How do I do more? Because there's so much opportunity. And the customers are connected. It's because the customers are connected to the mobile device. It's an innovative thing. And the mobile device, it's kind of a paradigm shift too because so much is different about mobile. You can deal with context. You can anticipate what your client wants based upon where they are or what they've done. And that really allows you to build experiences that are engaging and really interact with your customers in ways that you haven't before. And that drives a lot of change through the pipeline on the back. All right, so let's dig this in interconnect. Obviously, Blue Mix Cloud is a huge enabler for powering the edge of the network. We heard, you know, the speedboat racers using data with Blue Mix. So obviously under the hood, you got an engine of innovation with the cloud. Mobile's the touch point. What's going on here at Interconnect that's rocking with mobile? What's the key things that are trending? What conversations are you guys having that's top of mind? Well, what we've done is we've taken our technology and we've introduced a new platform. The mobile first platform is basically allowing us to help companies address all the challenges of mobile. We've made it more modular so companies can take only what they need. They don't have to start over. They can work with their existing apps, plug it in, and it gives them the management, the security so that they don't have to recreate the wheel every time they're dealing with a new mobile app. You know, one of the challenges that we see is that, you know, customers, they built a couple apps in the past, but in the next 12 months, they got to build six more. We did some research and said that 85% of them have a backlog of up to 20 apps. And so when you start to think about what's in front of you, you realize, okay, I got to be able to secure things. I got to be able to connect to my back end. I need to be able to make these things better over and over again. And really, those are some of the changes that people are looking for and that's why we're so excited. So I got to ask you, the consumer trend drives a lot of action on the mobile side. It's pretty obvious Uber is a great poster child of what mobile can do with data and new business, new way to think about business model, a new way to work, a new way to interact. But also there's been failures. I mean, mobile first is not a guaranteed path to success. I mean, if you missed the mark on UX and design, you could die. I mean, the founder of Twitter, Vince Stone, he started a couple of companies, Kevin Rose, Jay, he started more, they failed. So it's not about being the best, I mean, they're smart guys, they're super smart, but it's just a misfire. If you missed the mark, it's hard to win. So many people underestimate what it takes to be successful in mobile. You have to be able to create engaging experiences that people want. And that's really the driver. And a lot of people look at mobile and they say, all right, I just want to build an app. And so everybody will build one app or two apps, but then they start to realize that there's so much more than that. And it's not a one, mobile's not one and done, like a lot of application and IT projects to past. You have to be continuing to invest. You have to continuously innovate. To your point, app stores have also magnified the success or the failure of any apps because people can respond immediately on whether or not the app is meeting their needs. So is the app, the mobile app, is it becoming disposable or is that a sign of a bad app? Or is that a sign of an, is that okay? The mobile apps are evolving fast because there's so much, there's so much in the industry where people realize they can gain a competitive advantage by adding new capabilities and new types of engagement through those mobile apps. And so you have to be ready to continuously iterate, you know, it's in this kind of gets to some of the challenges of two speed IT. In the mobile world, you need to be innovating your mobile apps every two to three months. Whereas in the traditional world, you know, you're in waterfall projects and these things are taking six, nine months. And so that's really one of the things that we've been working with our clients to help them address, to build a kind of a middle tier, you know, places to store your data that can take pieces of things from those systems of record that allow the mobile developers to iterate at mobile speed while you still connect because in order for an app to add value, it has to do something, has to connect to those backend systems. And so that's really a way that a lot of our clients have been excited about what we've been bringing to market. So how would you summarize IBM's mobile strategy, enterprise mobile strategy? Well, we've got really offerings that are tailored to the different roles that people have inside of the mobile space. You know, the top of the house, they're looking for transformation. How can I change the way work is done? And they're trying to figure out how they can put, you know, the best devices in the hands of their employees, recreate their business processes based upon location and the capabilities of the device. That really is at the heart of the Apple partnership, is how we can work together with the Apple teams to take their strength on the devices and user experience that and really create new ways to work on the employee side. And there's, you know, really tons of progress there. And so that's really one of the areas in the transformation side. There's a couple of other areas. We're working with chief marketing officers and digital officers to create engaging experiences. We're working with the information security officers to figure out how to protect and to make sure that we provide a secure experience. And then for the application development teams, that's where the mobile first platform comes in really to help you work off that backlog of apps that's coming from the business. So if I unpack what you just said from a strategy standpoint, you're going after big ROI hits. Transformation, reduced risk. The CMO piece, people say CMO is going to be spending more than the CIO on technology. So you're going after boardroom level transformations. Is that a fair assessment? There's a lot of different needs at one level, at the highest level, that's absolutely what you need. You got to recreate the way your business works. Take advantage of mobile and data and social and the other capabilities that exist today and redesign your processes to create a competitive advantage. That's really what the top of the house is after. At the same time, we're working with companies big and small to address their mobile challenges. Just being able to acquire devices, bring them in, secure them and manage them. All the capabilities that we have with MAS 360 that we're now calling the mobile first protect portfolio, that's really about helping companies of all size to get on board, to distribute apps to really to work their way through the process of having mobile in their environment. I feel like I got to ask you, let's talk about customer roadmap because, I mean, pretty much it's not everyone's boardroom conversation, top line, bottom line. So all kind of developer hires are coming. The tsunami of data, drowning in data is a top conversation people are having. So it's obvious that analytics can be a driver for success, having mobile success, cloud success, great. Assume that they all want to go there. What does a customer need to do? What's the roadmap? Do you go to web response first? Do you go native apps? It's a Lego blog, how do you do an app within the app? I mean, this is like a complex roadmap. Sounds simple, go mobile first? Well, what's the roadmap? What have you learned? Well, a couple of things. So along the way, we've learned that developers often want to use the tools they want. So the conversation is really moving away from how do you build the app. With our mobile first platform, we offer a studio that helps organizations build cross-platform apps using the latest and greatest web technologies. At the same time, we've added support so that native developers can build their apps with the native tools that they're familiar with. And third-party tools can also be used to help build mobile apps. You mentioned data, and that's really at the heart of what's needed to build those engaging experiences. That's why we pulled in a data layer from cloud into our mobile first platform. And so what that allows us to do is to pull data from lots of sources, Internet of Things, as well as from backend systems of record. Mash that data up quickly. It's no sequel, so it's flexible, and you can change it quickly as you need to change your mobile apps at mobile speed, not like you would need to on the backend systems of record. And that's what we really believe will help you bring in those insights that give you those differentiated experience that will give you the business results that you need. So mobile, as you said before, sort of changed the nature in which we interact. So it was a new platform, changed virtually everything in terms of our daily lives. Will IoT have a similar effect? Is it an extension, an evolution of mobile? Is it orthogonal? I wonder if you could give us your perspectives on that. Well, in many ways, mobile is the touch point. It's the way that you interact with the things that are around you. It's much of the human interface. At the same time, a lot of the same technology that's needed for mobile first interactive experiences is this system of engagement. It's a way to set up logic in the cloud close to where the execution is needed, as well as being able to pull information from those internet of things capabilities so that you can interact with the world around you. We introduced some capability recently with our mobile first platform called Presence Insights that ties into sensors and Wi-Fi access points, beacons, so that you can understand where someone is as they navigate through a store or a campus location, a manufacturing site. And that's really a way to marry the world of the physical world with what we've got with mobile devices and the capability for mobile devices. Phil, so how does this change your backend? And how much time do you spend thinking about that? We spend a lot of time thinking about that. You know, a lot of the early pioneers in the mobile era, they would take their applications, they would build an app, and they would wire it straight in to a web API, to an API they created for the web days. Or they would tie it directly back in with things like master data management. Then there would be these mobile demands that would spike and would hammer away at these backend systems. And the mobile developers, they wanted to iterate really fast. But the time it takes to go through the waterfall processes on these systems of record, that created this discontinuity. That's really why we've introduced the mobile first platform so that you can take the pieces of data you need from the backend, shard it, shadow it, put it in that system of engagement and then use that to interact and iterate with, quickly, with the mobile device. And that's what's allowed people to really move a lot faster than they have previously. So as John was saying at the top of the segment, it's very exciting, you know, it's a mobile's alluring. You just want to dive in, like you see, start building applications. Historically, I was complained about application creep, the application portfolio. We got to rationalize our application portfolio. Do you see, are any of the customers talking about? Is it too early? A backlash? Like application creep? Here's the way it impacts them. It impacts them because they start to see their ratings for the apps. Either in employee app stores or external consumer app stores, they see them start to drop because they're not able to keep up with the changes on the platform side. They're not able to iterate and add functionality as fast as they need to on the front end because they're dealing with a lot of challenges on the backend. And that's really a major part of our value proposition for the mobile first platform, is to take out all of that from their hands. Let us do the plumbing. Let us do the integration with the backend. Let us create that middle tier where you can iterate and move faster. Let us do the security between the device and the mobile first platform so that you can take your developers time and energy and focus on solving the business problem. And the customers that are really leading have been able to do that. That lets them work off this backlog of all the apps that are needed in terms of demand that's coming from the business. So as it relates to the Apple relationship, what's the, can you help us connect the dots which means you got IBM, you got Apple, you're talking about Apple providing the devices, you guys are providing that infrastructure and then connect us to the developer piece. Is that really where the rubber meets the road in terms of innovation? So absolutely, so the Apple teams obviously they make great devices. And so the partnership with Apple has been where we're working together to take some of our deep industry expertise, some of our knowledge of analytics, marry that with the device and create a set of mobile first solutions. In December, we released the first 10 of what will be over 100 mobile first for iOS solutions across a number of industries that really are targeted to make the employees life easier while solving a business problem and addressing those pain points using analytics and the full capabilities of the device. How about your non-IOS strategy? Where does that fit? iOS first platform? So from a platform perspective, we created a tailored version of the mobile first platform that ties directly back in to iOS. So native iOS, Swift developers can build the applications using all of their knowledge of the iOS platform and there's a very natural way to integrate back with our mobile first platform. And so that's been very well received as a way for organizations to build. It's basically the platform on which we're building these mobile first solutions. And so there are also individuals inside of companies that they'll want to do these things for their employees but they may have B2C type applications where they've got to support all of the platforms. And that's where the full mobile first platform provides that ability to link with all of the different major platforms in the world. How would you describe the customer sort of discussions that you're having? I can see some saying, okay, we want to go faster. IBM, great, you can help. We love the Apple relationship. I can see some others saying we dove in, we need help. We're a little over our heads, our strokes are not that good. Help us. We get that a lot. And so everybody's done some mobile development. It's so hot, everybody's done something. Maybe they haven't done it themselves and maybe they've hired some agency to build a mobile app for them. A lot of times that comes, it's sponsored by the business maybe not really well coordinated with the IT teams and they want to want you to gain control of those applications. That's why we took our portfolio and we came up with the SDKs. You can recompile those apps and then you'll get the analytics to be able to the ability to troubleshoot what's happening with the device to see how it's being used in the environment without needing to start over. So you can really bring in some of this management security and the integration capabilities that you need from where you are. And that's really what a lot of our clients have been very excited about because no one wants to kind of just throw away what they've done so far. They want to be able to progress and then add in capability as they go. So I got to ask you, do you like the term data lake or data ocean as a better metaphor for the future of big data? I mean a lake is bad, you can always go to the system of record but systems of engagement is about the front lines. It's about mobile. This is not my course set of expertise but what I'm excited about is what we have from IBM in this space. Being able to take a mobile system of engagement like what you have with cloud and use data works to be able to hook back to dash TV to get that refinery to cleanse all that data. That's why I'm so excited that mobile first is a part of the overall IBM story. You've heard about all the capabilities that we have with BlueMix to be able to run high-level cloud. So lake stream into the ocean. You could go there maybe with that. I think I'm all about the refinery. I'm all about cleansing the data and improving it because that's what gets you the outcomes that you need. Awesome, well first of all, congratulations on the success. Mobile is going to continue to be on the agenda items. It's not going away anytime soon. It's really harnessing everything else around it. It's the edge of the network. It is internet of things. I mean, it's right in the wheelhouse. A phone is approved. Mobile's mobile. Well, we're so excited. We feel like we've made such good progress. We're like a leader in 19 of the leading analyst reports and so we feel like we've made good progress. Our customers have got great deployments and so we just know that it's early and we've got so much more that can be done with mobile. You can bring a lot to the table right now. It's obvious, but share the last couple of seconds left of the segment. What's the vibe here at the event? For the folks, no, not here. What's it like? What's the vibe? What's the, are there people pumped up? What are they talking about? What are they most excited about? What's just a quick general sentiment of the event? The folks are really excited because they've started to see the results. They've started to see the impact. You know, we've got so many references and clients that are here speaking on our behalf. They've started to see, okay, well they were able to pull that off and they're seeing the success and they have this ROI and that's really what gets the people that I've spoken with really jazzed up because they know this is real and they know they can get some results right now. All right, Phil Bakalov, VP of Enterprise Mobile at IBM, congratulates inside theCUBE. We'll be right back after the short break. This is theCUBE, keep watching. I'm George Matthew, president and CEO of Altrix and you're watching theCUBE. I'm Dmitry Zemin. I'm the CTO and co-founder of StackStorm and you're watching theCUBE. Vice President of Product Strategy at QLogic. You're watching theCUBE. Hi, my name is Ben Jones, Senior Product Manager of Tableau Public, Tableau Software, you're watching theCUBE. Hi, this is Frostbough from Tableau and you're watching theCUBE. theCUBE is a live mobile studio. We bring it to events and we say we extract the signal from the noise. What we do is we get the absolute best guests that are at those events, we bring them inside theCUBE and we talk to them, we have a conversation. I think the difference with theCUBE is that the interviewers are active participants in big data. So it's less about trying to explain what big data is and more about relating what's going on. So we're a big data driven organization. We have a data science team that allows us to see not only what's trending broadly with the public but what's trending in very specific areas in our specialty in tech. That allows us to vector our analysis and relevance from our research and journalist team into everything that we do as a media company. We really wanna make it fun, exciting but more importantly, extract the data from the guests and extract that metadata and share it with the world so people can use that information to better themselves, better their companies, more importantly connect with other people to do more business, to define more about the technology and for us, this is the future. I do a lot of these types of interviews. I spend a lot of time with the press and theCUBE's a lot of fun. It's ESPN for tech. I think tech's evolved to the point where people wanna understand the personalities behind the technology, which probably wasn't that interesting 20 years ago and I think they made it a lot more entertaining, a lot more interesting as well as putting some technical meat on the bones as well. The value of an independent news organization at an event is that it allows our audience to have a perspective that's balanced, that it's not just the vendors talking to them, it's the community, it's analysts, it's technologists, it's customers, practitioners, so they get a full perspective that's unfiltered. The benefit of theCUBE is a place for conversations with people to connect with each other and to learn about things and it's a revolution in media. We look at the technology and the people behind it as tech athletes, those are the folks making the companies, making the technology, really creating the new value in this modern era and it's fun, it's exciting and more importantly, it's very social. These days, with social media, people looking to not just read articles, which are great and obviously SiliconANGLE does a lot of that as well, but being able to see high definition video, very intimate interviews with entrepreneurs and operators, innovators in the industry I think is really important. So the job you do in getting this out in a very timely way, I think is really important. We always know that your view is right until you hear a different perspective, so you're always interested and give me some neutral perspective, help me see it from a different light, and maybe ask a hard question or two that I might not have considered. In that sense, write that independent voice that's always ability to write, have sort of independent, audited sort of perspective right on the go, let's always just do it. theCUBE has been called the ESPN of tech and really our vision is to cover every event that's out there. We really truly want to be a global organization that is at every event, extracting the signal from the noise, being on the ground, giving our audience a sense of what's happening at that event, but also providing analysis and insight worldwide, literally, for every event that's out there. You know, I love it. I was actually telling John and Dave, every time I come back to theCUBE, you guys have new toys, new cameras, everything's getting bigger, so having been on it for several years, almost from the very beginning, it's always great to be back and you guys do an amazing job, so it's wonderful. It's about connecting with people, and that really is what it's all about, having the conversations in a very social, collaborative way, and that's what makes it so exciting when people are watching. Live from Las Vegas, Nevada, it's theCUBE at IBM Interconnect 2015, brought to you by headline sponsor, IBM. Okay, welcome back everyone. We are live here in Las Vegas. This is theCUBE, our flagship program. We go out to the events and extract the signal from the noise. I'm John Furrier, the founder of SiliconANGLE, Joe Micos, Dave Vellante, founder of Wikibon Research. It's exciting. It's live at IBM Interconnect, inside the Go Social, InterconnectGo.com, digital experience. The CUBE is here. The VIP is here. The executives are here. Again, we're bringing theCUBE action. Talk to the top players. Our next guest has been on theCUBE a bunch of times with EMC, Violin, Eric Herzog, VP of Storage Marketing at IBM. Just left Violin memory to come join and lead the IBM team. Congratulations. Welcome back to theCUBE. It's like New Jersey on the, they pulled the new sweater back on the Bruins Jersey again or it's not, it's the Rangers, I guess, New York. Meet the trade-off. Meet the trade-off deadline. So congratulations. Congratulations. Well thank you. As always, IBM loves to be part of theCUBE. And we want to thank you for working with us over all the years, Wikibon and everything you've done to help IBM Storage Systems Division. Yeah, so we've been tracking this. Edges coming up have been in multiple edges. IBM's had a rollercoaster day because it can go into a long list of where it's been, where it's going. But Jamie Thompson's just on. She just said, quote, we're serious about storage, billions of dollars of investments, zillion patents that take on a fresh focus. You were enticed to come over and you're a hard nut to crack in terms of convincing. What was their sales pitch to you? What got you excited to come in to IBM and help these guys drive this bus to their destination? Well I think the key thing is that IBM is sort of the understated member of the storage world. We have incredible technology, incredible customers, a great set of business partners across the globe. And we've sort of undersolded as a company. So as you remember back in the late 90s, early 2000s, the largest storage company in the world was IBM. IBM invented the disk drive. IBM was critical in the development of tape infrastructure. And now with software-defined storage with our spectrum release, our focus in all flash, and with our more traditional products, the DS8000, the store-wise products, emphasis on hybrid arrays leading with flash, we have a great opportunity to move the ball forward and reclaim what had been, for tens of years, really an IBM business in the market space. So we're going to work on that and move things forward. Take before I know these. No, no, no, no, I'm just taking the high-level questions, because I've only been involved in the storage group for about five, six years now. You've been watching the whole history. They seem to be doing really good things technically. They have a lot of chops, but they're inch by inch in a good, they do quality, moving the ball inch by inch down the field. They don't get credit for big moves. They have good technology. But now we're hearing big. So what's your take on this? Do you agree? What could they, what's your plan? What's your vision? You came here made a big career decision to come here. What's the big play for you here? With the idea, what's IBM's big play that got you excited to join your team? Well, I think the key thing is a recommitment to storage. A billion dollars invested in Flash, a billion dollars invested in the software-defined storage market space, continuing to invest in the traditional technologies, even the tape businesses. You know, from some of the analysts that do the numbers tracking, IBM is still number one in the tape space. And there's still an opportunity there. It's a large business. What's going to die for a tape or a spinning disk? No, tape's not going to die. We know that. Flash is hot. I mean, this is- Plus Flash is a winner. Mark my words. So the easy to your technology we've got, everything would dealt with our spectrum virtualized, the former sand volume controller, delivering enterprise class data services, not only to the IBM infrastructure that you just bought, but actually on your older legacy infrastructure because IBM with spectrum virtualized can virtualize that entire storage farm for you. Why not get a sync replication, synchronous replication, application consistent snapshotting, all from one console, whether it's IBM storage or your older heterogeneous technology. And IBM has done a mediocre job of pushing that technology into the market space and we're going to be much more aggressive in doing so. Well, so I want to ask you, so I mean, John's right, I got the history, I've watched it. IBM squeezed the R&D spigot for years in storage and you know, what that's like, you pay the price. And then, you know, made some acquisitions, AXIV bought TMS. And now it's taking the billion, I call it the billion dollar playbook. Let's put a billion dollars in software defined, let's put a billion dollars in clash, we understand how that works, we're committed. Okay, so you have sand volume controller, which was actually a bright spot in the R&D, right? That's worked out great. And then you buy TMS, no stack, put it together with sand volume controller, smart, gives you a stack, although you got to have a sand volume controller. Now you come up with a new announcement last week and you're now heading in a new direction, a evolution of that sort of, what I just described, with a billion dollars behind you and a new leader, visionary, fighter, wrestler. Okay, so give me the IBM spin on that story. What's really happening there and where are you guys headed? Well, I think the key thing is on the all flash side in particular, which is a white hot market, flash is now at the same price of disk. And that means you've got to have the feature sets. You can't just walk in and say, hey, tier zero for that high performance SAP or Oracle workload. It's got to be now across the boat. We've got it in the edge. Zero, one, it's no longer niching, which means enterprise class data services with the latest release of the V9000, we have an integrated stack. You don't need a separate sand volume controller. The stack with TMS, the old TMS product, right? The, and the sand volume controller are now merged together in the V9000 family. You've got better performance metrics. You've got integrated enterprise class data services. When you move from tier zero into tier one and possibly even to the upper end of tier two, you've got to have those data services and IBM's through the older sand volume controller now spectrum virtualized is unmatched and delivering those data services. Now they're on flash and they're on flash with an integrated solution, not by the SVC and then put the 840 together. Now it's fully virtualized into integrated stack. Stack is critical, right? It's not just nice to have. Stack is critical. It is critical. Is it not? It is absolutely critical. You need to have that differentiation. You don't want to of course put all kinds of different appliances together and manage them separately, right? That's extra time and money for the IT team. And as you know, close to 40, 50% of storage these days in the enterprise being bought by line of business owners and app owners and they clearly just want shove it in and make it work. Which by the way is great for the software defined world as well our spectrum software launch which also was last week. We did two large launches last week. Okay, so how does your stack stack up to the competition? Well I think from the all flash array there's no close competitor. There's guys that have Ddupe. There's guys that have Ddupe with local replication. There's one of the largest competitors out there obviously one of the big boys in the industry. If you want to do everything we do with the V9000 you need to buy their base all flash array, then their recover point appliance and then their Vplex appliance to do everything that we can do with the V9000. So why would you put all those three pieces together? Loose parts flying in close formation. We get a tightly integrated home stack that integrates right up into the application layer with the V9000 on the all flash side. In the storage defined side we've got everything from protect. So we have the backup integration the archive integration. Again the same technology that's in the V9000 that's available as a software standalone software defined technology which allows them to use their existing physical server infrastructure as well as use existing storage infrastructure and buy just a software play. And that A is the way the world is going not just in storage but you've got software defined networking and other software defined technologies that are starting to take hold in the enterprise. So that launch allows us to execute on that strategy to again being a Californian don't fight the wave you ride the wave and we're going to ride the wave right to winning that surfing contest on the software defined side and on the all flash. I love waves, waves are on the ocean and the ocean's where the action is and so that you know, if you look at that wave what is that wave you're riding? Just flash, just software defined expand the difference between the two and what's the next wave behind that? So we see a couple of things. First of all we've also announced jointly with Cisco our versus stack technology and we will continue to focus on using that stack for a converged infrastructure play. We have talked about recently in the past about going to converge and then going beyond converged software defined storage allows you to move to converge and then into the hyperconverged marketplace. That's your hyperconverged play. You can use the software defined you can work with enough multitude of vendors that allows them to use off the shelf componentry by through a distributor or of course you could go to some of the big x86 vendors they could use our software create basically hyperconverged action take on some of the smaller startups that are trying to make a play in that market space. So I got to ask you, I asked Chairman Burton some questions and he did a crowd chat and asked me anything. I said what's the innovation, actually Ariana asked is our social engagement manager. What innovations are coming? He talked about in memory computing, real time apps, pretty obvious we know that's going around the corner. Data will be persistent from memory into server side flash. That's why they bought DSD, et cetera, et cetera and this is talking about the infinite address space concept. So real time, that's why I joke about the data ocean versus the data lake. Data lake's more batched, the warehouse is going to be smaller, slower. But when you're dealing with real time data, new types of data flying in the data tsunami or drowning in data as IBM sees clearly an opportunity. Customers are drowning in data. Absolutely, so we've got of course our scale technology spectrum scale, hundreds of petabytes of information that's available. It's perfect for big data analytics workloads or of course the old data warehouse, big data analytics to me is the new word for data warehouse. So whether it's a traditional data warehouse or big data analytics, whether that's a Hadoop infrastructure, a Mongo infrastructure, Cassandra infrastructure, we're ideal for that. If you're using the older Oracle or SQL or SAP or DB2 data warehouse, it's ideal for that technology as well. From the inline compute capability, as you're probably aware, all flash products are certified with SAP HANA. So if you go to the HANA certification table, you will see that all flash arrays are there. So one of the key things that's preventing some of the in-memory technology from taking off is of course the amount of physical server infrastructure, particularly DRAM you need and that's inhibiting it. That's a bottleneck or not. It's a cost bottleneck, it's a cost inhibitor. So now if you can go with a flash solution and that flash solution has almost a minimal impact on performance compared to DRAM, but much less expensive and have that be extensive of the original server DRAM cache into your all flash array with almost no performance hit, yet you dramatically reduce the hardware cost of getting into the space. It's all right to ask you a question, give you a breath there. On a kind of like a, outside the box conversation, like integrated stacks in the cloud, generate a lot of new opportunities. We just had a guy with mobile serif on talking about mobile apps and Dave was talking about, some apps are only used during like NCAAs. So we were bringing up this notion last night, Dave and I were talking about integrated apps. Most apps don't even share data, like even Twitter, Facebook, they hate each other on data. So like, you know, these kind of interoperable data models are emerging as a next opportunity. So if this integrated app concept happens, workloads will mix like currents in the ocean and what will happen is you'll see a new type of data sort of the tsunami of data. What is that opportunity like? That's beyond the data warehouse, that's beyond the systems of record. The amount of flash play, I mean flash plays a key role there because you don't have to make a zillion copies, you got to set up a metadata index. Yeah, flash is critical. That's awesome. Is that where the flash you see? So flash is in the traditional enterprise today. Tier zero, tier one and the upper end to tier two, it's at the same price of traditional enterprise upper end storage and the upper mid-range storage today. Flash is right there, okay. When you go to these concept of these incredible sets of merged infrastructure with large metadata, caches that you need, huge search engines that you need to do, all that can sit on the flash. And obviously now with the cost of flash with data reduction technology, such as our real-time compression, shrinking and being completely cost-effective, you could put a fair amount of these new, what I'll call these new world data structures or the merging of these data types onto all flash arrays. So it's critical because as you're putting that together, the last thing you want is the latency you see in a spinning media farm inhibiting the ability of these data types to work together. And so flash is critical in that infrastructure. You said new world data, so I love that term. So expand on that a little bit. You mean the confluence of this data thing in its own shapes. All these different data types coming together, right? Structured all kinds. Structured in a structured in a mixed configuration. Especially processed in real-time, manipulated and then integrated, right? So flash is critical there, and then obviously as these data types become larger and larger, okay? And you're starting getting exabytes and exabytes and exabytes and exabytes and having our spectrum scale technology allows you to use flash on the front side and be able to scale to the back and quite honestly, even in some of these areas, cheer it with our easy cheer technology right onto tape if that is something that- So spectrum scale is a data ocean product. Surf those big waves. It is. We are all about riding the waves and we will be the first to win the surfing contest in the storage business. So would you rather surf the ocean or lake? I mean Lake Tahoe's got some nice waves. So you wanted the longboard, is another big wave. John wants to know, data ocean or data lake? What's the better term? I actually would say it's a data ocean because the volume of data is growing so exponentially that when you think of a lake, even a big lake like the Great Lakes, I'm a native Californian, but I do know where the Great Lakes are. They still pale in comparison to the Pacific Ocean or the Atlantic Ocean. So it is an ocean of data. It's growing exponentially. All data types, whether it's structured, whether it's unstructured, whether it's a hybrid. Speed, slow, tide pools, rip currents. I mean, it's a more better metaphor. A, flash, smooths out some of those rip tides. So that is a server infrastructure and cloud infrastructure is dealing with those data types, especially when you're going over the cloud. You are over the laws of physics over the network side. So when you land on the beach, you want the fastest possible storage solution and all flash or certainly hybrid arrays in the near term are what you need to have. Things that are just traditional spinning discs. So last week, the guy at Google, who's a tech geek, totally agree with you, is by the way, he said, if you can get your arms around the ocean, then you're, it's amazing, you're God, right? His name happened to be Eric Schmidt. His real name was Eric Schmidt. He wasn't a billionaire, but he said, he's in the data flow side of Hadoop, so he understands the large volumes of data. So what you're saying is, flash is that flexibility technology to smooth out those really powerful, potentially unexpected experiences. Well, remember what you're trying to do is, as those data types come together, you're processing the structured and unstructured data. And even with the power of today's server infrastructure and server farms, whether it be virtualized or unvirtualized, the problem is the enemy of all software is latency. And spinning disc has incredible latency, no matter when you short stroke it, even if you use some of the hybrids out there. So all flash is where the market is going. And in the short term, it's all flash and hybrids. And anything that's not a hybrid, really the customer should really think about what they're trying to do and why they're trying to manage with a technology that can't deliver and can't keep up with their new server and virtual server infrastructure, let alone what they're trying to do with cloud, be it private or hybrid. Right, it's just like, it's cheaper, but you got to be willing to go faster. And you need that speed. And again, all flash arrays today are basically certainly for zero one and at the upper end of the tier two and at the large global enterprises, it is at the same price. So there is no cost of moving. You know, it's interesting, it's moving fast. A year ago, I probably spoke like in 12-1-1, 15-1-1, 30-1, you know, roadshow type of thing, maybe 500 customers. Everyone I asked, who's got flash? Very, all flash, all flash arrays. Very few hands went up. It's changing just dramatically in the last year. Now it's like everybody's kicking the tires or actually putting in a production. So what do you see people doing with it? Obviously they're extending the life of their existing arrays with, you know, a flash front side, flash on the front side into tier and then tier it to. Right, okay, so that's happened. That's clued. They're reducing the number of cores that they need in database-intensive applications. Right. Cutting costs, moving faster. You hear people, some people talking about all flash data centers, right, maybe you heard that. We would see all flash data centers as coming into the foray this year. This year. This year, you're starting to see that. And again, I wouldn't say all flash all the way into the backup and archive tier clearly. But when I look at the primary storage tier for a larger global enterprise, thinking tier one for sure, tier zero where it's already been sitting and in the upper reaches of tier two and maybe even into all of tier two, given the cost structure of an all flash array configuration and for example, with our 9000V product, the ability to virtualize not only the existing storage infrastructure to optimize their investment in the past, tier off of that flash into what I'll call cheap and deep for certain functionality, but also when you go into zero and one and or sorry, when you go from zero to one and two, you better snapshot that data, you better replicate that data locally, better replicated asynchronous or remotely because earthquakes really happen in California and fire is still the number one cause of data loss other than in human beings and floods and all the other things that could happen in data center and the all flash arrays when they first came out were tier zero. So I was like, yeah, we use this, we'll use Oracle replication or we'll live without it and once you go into tier one and into the upper ends, you can't do that anymore. So enterprise data services which we have with our V product, we also have in our mid tier hybrid with of course with our store wise products, all those technologies are critical as flash be it a hybrid or clearly in the all flash space spreads its wings and takes more and more of the data center storage infrastructure. So everybody kind of gets this now. Everybody sort of drinking the flash Kool-Aid especially all the big competitors. There's nobody out there says oh, I don't really think flash is going to take off. Everybody's doing it. So my question is, is we probably talked about this before. Can the startups in the recent, you know, IPOs and the future IPOs, can they achieve what David Scott formerly of HP called escape velocity with all you big guys having flash strategies built out? So being a big guy but a guy who's also done seven storage startups, five of which have been acquired. You're qualified to answer the question. I can answer the question. So there'll be a couple that will hit escape velocity. The rest will falter. What'll happen in the tier one, existing tier one vendors like to call the big seven. What'll happen in the big seven is at least two of them will do a horrible job at it and their storage will decline. Two of them will do a great job and we think IBM is ideally positioned to do that right now. And it's proven it so far in our success in the all flash array space. And now with the V9000 and the 900 product we'll go to the next level of acceleration in our front. And obviously there'll be then three guys that'll do okay with it. And they'll be a player, they'll be around. There's just not enough seats at the table. I mean, if you're on the M&A side, if you don't make it public, I mean, it's the capacity. So what you'll see is a couple guys will go bankrupt since I've actually been there once in a startup. Thank God, not very often, but once of the seven. There'll be a couple guys that'll get acquired for low price depending on their value. I didn't even get one or two. That will get a good price with strong value. And then you'll get one or two that'll hit escape velocity. I mean, if you think about what happened in the backup space, who would have thought that Commvault would have hit escape velocity. And while they've had a couple rough quarters recently, you go back historically, no one thought Commvault was gonna make it. Look at them now. They've done pretty well. And so there'll be some other guys that do that will look at that. But I think that IBM is perfectly positioned in the software-defined space with everything we do, with our protection, with our tiering, with our virtual infrastructure, with our scalability to create these data oceans, not just the data lake, and with the all flash technology, and even in our traditional projects, switching everybody into a hybrid mode. All of those things position us to take advantage of these ways of flash, particularly all flash, but even flash in hybrids. And also this move to software-defined, which is attacking the data center, not just in storage, but in other areas like software-defined networking, for example. So this is the wave of the future. And again, IBM is on top of these waves. Historically, we didn't always do a great job with this. But we're there, and with these investments in a number of different areas, the acquisitions we've made, and just purely investing with our own software and hardware engineering resource to create fully home, tightly integrated solutions that attach to this application stack, we're there. And so we see a new era of IBM storage with what we're done in the last month, what we did last week, and what, of course, has happened since we've had new leadership with Jamie coming on board as the general manager of the storage division. So I've got to ask you that. Obviously, you've been around the block, start-ups, you know the ups and downs, you know the drill. Software is the key value proposition. For many reasons, we don't want to go into too much detail. But bringing the systems and the software perspective to the storage, big iron, small appliances, hardware-focused kind of mindset, which is mostly storage in general, is a new change in the past couple of years. There's always been software, yeah, firmware, whatever, but real software, life cycle type stuff. So IBM storage is all about solutions. We're not a hardware company. We've got our software-defined storage, which will be software only, but even our existing products, the DS8000, the Storewise family. Storewise family is a tight integration of our sand volume controller, our Storewise technology, with our traditional hardware, into a full solution stack. And that's what's critical in storage. Because it's by solutions, not products. No one buys a product. And no one buys a family. Everyone buys solutions that meet the need of the data center, particularly meeting the SLAs of the application owners and the line of business owners. Remember, I've been around a long time. I know both of you guys have been around. Have you ever met a CIO who was a storage guy? I've yet to meet him. That's going to be now our cue. We will find one. That's a good mandate. So, okay, got to ask you. Now you knew the job. VP of marketing. What's your philosophy? Okay, share the world. Okay, you got the New Jersey on. You can put your running shoes on. You certainly can run right out of the box. Combine workout, pass. You're right in the field. Starting quarterback. VP of marketing. What's your plan? What are you going to do? Are you going to be more social? Are you going to do more stuff? You're obviously aggressive. What's just, what's the Eric playbook? What are you thinking about? So, first of all, we're going to leverage the IBM infrastructure. There's a strong infrastructure around social, mobile and cloud already that's been used by the other groups, the software teams, by the server divisions. We need to get on that train. We ourselves have been remiss. There's some of the stuff that we've put out to the field into our customer base and our client base. That's been a little speedsy and feedsy. It hasn't talked about application integration, solutions said it's been a little too hardware-centric. So, we're going to take a twist and be very solutions and application-centric and focused. Why is RRA the best product for SAP? Why is our best storage technology the best for DB2? Why is the best for hybrid and private cloud infrastructure? And we haven't done a good job of translating that stuff. We've done an okay job, but we're going to be more aggressive in positioning this incredible technology portfolio in the solution space because again, I've never yet met a CIO who ever started storage admin. So, it's all about meeting the application workloads, the SLAs, enabling their cloud infrastructure. How does storage make their mobile and social better? And guess what, it all sits on storage. And it sits on incredible gobs of storage. So, you've got to have that integration level and we're going to make sure that we talk about the things we're doing in all of those spaces. You're all so social, you're on Twitter, you know the social space, you're digitally savvy. Is there new opportunities to take advantage of these new meetings? Obviously, we're in this business too, so we try to manage that. You tweet, where do you see that? Is there meat on the bone there? Is there more of this bolt-on adjunct to existing programs? So, first of all, a lot of people who are not as old as me, which is almost 60, they're buying their technology in a new way. So, yes, you need a sales team to call on them, you need account reps, you need strong business partners. But as you guys know, especially since you're in this space, 50 to 70% of the research is done just by looking at blogs and Twitter feeds and going to the IBM website, friend references that they get from customers, right peer references, and it's all online. So we're going to optimize that. We've got a strong storage community online already involving our clients and our business partners. We'll continue to leverage that as we push forward and continue to push the envelope and do more and more in that space. And we've got a good start in that space to be honest with you. And IBM is a company beyond just our storage teams. Has done an excellent job in moving that world. We're going to move even stronger and harder in that space. And just saw as you expanding the organization, anything you're looking for for help? Well, right now I'm still assessing. I've been on the job for eight working days. So I've got to look and see what we have. We appear to have a pretty strong team. Needs to some tweaking again, mostly around the solution orientation, very strong at understanding the storage space. Now I need to twist that a little bit. How does that storage benefit that DB2 workload, that hybrid cloud workload? How does that benefit what someone's doing with mobile? That's the part we're doing okay with but we need to amp that up and we intend to do so. Did you inherit Spectrum? Did you, were you involved in that? I wasn't, I've only been here for eight days. I wasn't there yet. Good answer, we'll find out later. That's a good name, I actually like that. Do you know the reason why I came up Spectrum? No, I don't, I can see why. It's a spectrum of offerings. Protect, manage, scale, virtualize. So it's a spectrum of offerings. And I think that that was probably one of the key reasons but I'll have to check with my guys and get back to it. Competitive landscape, just give us your quick two cents. I mean, you mentioned it briefly with the startups, just on the big guys. I mean, how do you guys think you'll do, what do you think you'll need to do to be aggressive? So we're gonna wrestle them to the ground. As Dave pointed out, I get wrestling college. It's a street fighter. So we will wrestle them to the down. You know, IBM is up to the challenge. IBM has realized with all these investments, storage is a battlefield. Storage is not for the weak hearted. Storage is not for the faint. All areas of the IBM portfolio at a corporate level compete with plenty of competitors, whether that be DB2 competing with Oracle or SQL, whether that be, you know, the Z mainframe, although of course it's very much a dominant player there. Obviously with the open Linux and our power products, there's other guys in the space as well and we compete there. But, you know, from a storage perspective, it is the battlefield. Your position on hyperconverged infrastructure and also Oracle's engineered systems. Any comment on that? So we would see Oracle engineered systems as obviously competitor to the storage. If you buy, you know, a power platform with our storage, if you buy a Wintel, Lintel platform with our storage and all those possible solutions. The good thing is with our all flash solutions, we have something that could go toe to toe with those sort of specialized plays. And there are some things that IBM has already previously announced in the converged infrastructure as well as with VersaStack that have some application integration. We're going to continue to push that forward. All right, Eric. Thanks for coming on theCUBE. We have new IBM VP of Marketing for the storage group. Welcome back to theCUBE. Congratulations on your new job at IBM. Look forward to working with you and of course, we'll be keeping in touch. We are live in Las Vegas here on theCUBE, live in Las Vegas for IBM Interconnect, our special presentation. I'm John Furrier with Dave Vellante. We'll be right back after this short break. This is a burrito made with chocolate, soybeans and apricots. What kind of chef comes up with this? A chef working with IBM Watson on the cloud. Ingredients are just data. Watson turns big data into new ideas. And not just for food. Watson is working with doctors and bankers to help transform their industries. Today, there's a new way to work and it's made with IBM. Location, location, location. Here's the location that matters the most. Here or here or here. It's wherever this is. To get customers to come here and stay here, you're going to need an app that connects to all your systems. So they can bank, shop, do what they need to do and you've got to do it fast before the competition does. It's tough out here. You better be on the right cloud. Today, there's a new way to work and it's made with IBM. Hi, I'm Andrew Kreitzer, a business operations manager at LinkedIn and you're watching theCUBE. I'm Chris Ellen, VP of Business Development for HP Big Data and you're watching theCUBE. Hi, I'm Stacey Slaughter, Senior Vice President of Communications for the Giants. I'm in the garden at AT&T Park and you're watching theCUBE. I'm Thomas Minnick, Business Intelligence Consultant within our works and you're watching theCUBE. Hi, my name is David Tischkart, Director of Partner Marketing at Cloudera and you're watching theCUBE. Hi, I'm Jim Yu, Founder and CEO of Bright Edge and you're watching theCUBE. So what's going on today? News or message. Email. Calendar updates. Most of us admit to being overwhelmed by informational work. That's why IBM created Verse. It uses powerful analytics to uncover hidden patterns in your email, calendars and social feeds. It continuously learns how you work and helps you prioritize the people and projects you need to focus on. There's a new way to work and it's made with IBM. You can bring back a lot of things from a trip around the world, but you can't always bring back customer data because many customers don't like it when their data moves around. Can I go now? If you're gonna do business globally, you need a cloud that can keep your data where it needs to be. Today there's a new way to work and it's made with IBM. Cute little guy, huh? This guy could take down your entire company. Stay with me. On Thursday, a hamster video goes online. On Friday, it goes viral. A network choking phenomenon. Why do you care? He's on the same cloud as your business. The more hits he gets, the slower your business may get. Do you wanna share your cloud with a hamster? Today, there's a new way to work and it's made with IBM. Time on theCUBE, baby. Rock and roll. I think it's probably five or six times I've been on theCUBE now. Right, at first, the guys are just fun to work with. Pat, welcome back. Hey, always a pleasure to be in theCUBE. I am about a three-time veteran of being on theCUBE. I hope many, many more. Chad Sackets, Chad, welcome to theCUBE. Dave, John, it's great to be here, man. I keep coming back because great, insightful questions from John and from Dave. What face-melting action have you seen here at the event and I know there's a lot of it. It's a great vehicle to communicate with a broad audience, a lot of folks watch. Great to have you back. Good job. All right, Craig Nunez, VPA Marketing at HPStore. Thanks very much for coming on theCUBE. When people mention theCUBE, they're like, oh my God, I saw you on theCUBE and they're all excited about it. It's an experience, it's not just information. They experience kind of what's going on there. It's like real time, it's like they were there. That was like going to the gym. My pleasure. Boom, boom, boom. Gary I.V. Emmer, CEO of Symantec, and now CEO of Virtual Instrument. Great to have you on theCUBE. So for theCUBE to be here at a conference like this, it's got 15, 20,000 people and sharing that live around the world, that's consistent with the way the world is evolving. So it's a wonderful meeting. John and Dave are amazing. I don't know how they keep everything in their heads the way they do. It's a great format and we're obviously seeing that this notion of real time coverage and a real conversation is what's driving us as a company. I said very seriously when the questions and the comments that we hear from them and from all the different guests here are directly turned into the products that we build. Yeah, that was my first CUBE and I really enjoyed it. There was the rapid fire of questions. It made me think on my feet but they were very thought provoking and really got me going on analyzing the greatness of Arista and the greatness of theCUBE as well. John and Dave, the reason their approach works, they're not just guys reading down the question list. Right, okay, next one, next one. It's a conversation, right? And they're gonna challenge you. They're not gonna settle for the marketing hype and the BS and all that stuff that the industry throws around. Come on, you gotta hit them up on the HP question. A lot's changing HP, some turmoil at the top, obviously controversy. They're gonna hold you down to the real facts, compare you to the choices our users have and have you respond to it on the spot, right? Thinking real time and so that's real talk, not just kind of a paper interview, I think. I'm John Furrier with SiliconANGLE.com and I'm here with Dave Vellante. We are inside theCUBE. theCUBE is our flagship telecast. We go out to the events, extract all the signal from the noise and share that with you and great guest lineups. We've got CEOs, CTOs, all the top executives, bloggers, thought leaders, venture capitalists. I'm absolutely stunned because I know it demands 100% attention for these guys to be up there talking to people about a wide variety of technology topics. I can't believe these guys can make it so many days in a row. So I'm wondering how long they're gonna go home and pass out for after this. But it was incredible. Just do a fantastic job. If you're not having a conversation, then you're very scripted and if you're scripted, then you might be getting the right words but you're often not getting the whole meaning and the whole depth of the conversation to the fullest extent. I think this is a heck of a lot more authentic. It comes straight from the heart and the brain. Sometimes you might forget to make some of your coins if you're not a real-time thinker but I think both from a participation and from a consuming point of view, it's much more real. Chris holds no punches. So I've been on theCUBE a number of times and I think the interesting thing about being in that particular venue in that format, they introduced me as, hey, half doesn't pull punches. Well, they don't either, right? They ask really difficult, uncomfortable questions sometimes and you can tell people and the positions and where they are in terms of what they're able or desires to speak of. You can tell where they are on that borderline between kind of just honestly answering questions versus kind of glossing over them. And I enjoy being there because I don't say I'm outspoken but I honestly answer questions with the full intent of being able to be respectful to the people that I bring solutions to, right? If I whitewash this crap, you're going to turn me off every single time you see me on any venue, let alone theCUBE. So I like being asked tough questions. I like answering them honestly and that's a fantastic venue for doing it. Otherwise you get on panels and you get a bunch of talking hands blabbering at each other and it's worthless. And this was my first time on theCUBE and I really got a chance to get to know John and Dave and they're really amazing guys. I mean, the knowledge that they come with, the topics that they could talk about, the people that they know and just bringing it all together in this live broadcasting forum, it's just fantastic. I mean, I just love it. I feel like a groupie or something, you know? Ha, ha, ha. In this environment, you know, the social environment, the real-time environment where we're in, right, people look through the marketing fluff very quickly and if it's not authentic, right, no, they don't trust it anymore. So in this environment, I think it's a growing trend. Yeah. I'm George Matthew, president, CEO of Altrix and you're watching theCUBE. I'm Dimitri Zemin. I'm the CTO and co-founder of Stackstorm and you're watching theCUBE. I'm Vice President of Product Strategy at QLogic. You're watching theCUBE. Hi, my name is Ben Jones, Senior Product Manager of Tableau Public, Tableau Software and you're watching theCUBE. Hi, this is Francois from Tableau and you're watching theCUBE. Live from Las Vegas, Nevada, it's theCUBE at IBM Interconnect 2015. Brought to you by headline sponsor IBM. Welcome back to Las Vegas, everybody. This is theCUBE and we're live at IBM Interconnect. We're at the Mandalay Bay. I'm really pleased to have Dion Newman, who's Vice President of Worldwide Z Marketing and also Ron Perry, who's the CEO of Radix International gentlemen. Welcome to theCUBE, it seems like just yesterday we were in New York City for the Z announcement. You know, it's great to be here. Thanks for having us. So that was a great event. We did it at Jazz at Lincoln Center. I'd never actually been inside. It was a phenomenal venue. You guys really know how to throw up. Excellent party, great announcement. Customers were pumped up. So you must have felt really good after the results came in on that show. You know, more than that, you know, the reaction to the Z13 have been off the charts. You know, we had probably 600 articles around the world written on, you know, in a 24 hour period. Very, very positive response. I think really a repositioning of what the platform's all about. Yeah, so, and Ron, we met actually at dinner before and we want to get into sort of the story, but from a customer perspective, what do you get out of an event like that? Well, I think we learned things, certainly, but beyond that, it helps us, it really reinforces the reasons we made the decision. You know, it was really just about three and a half, four months ago when we made the decision. We took the information we had, we went forward with it, and then to see all of the other implications. Very positive. So, mainframe cycles, a lot goes into it. I think hundreds of patents. Yeah, that's a lot of them, just a lot of years ago. 500 patents, just as part of this announcement, it's mind-boggling, a huge percentage of the customers running Linux, so it's the theme on open. So what does this announcement, this Z13 announcement, what's it mean for IBM's customers and IBM as a company? Well, I think, you know, let's sort of start at the beginning. This is a totally new system designed from the customer side. We spent about a billion dollars yet developing this new generation system. And, you know, it's really been over about five years. You know, these cycles, you know, we're in development of not just next generation, but the one after that. You know, we work with probably 60 clients in our leadership council who help prioritize where we invest and what we build. And it became pretty clear to us sort of two and a half, three years ago that there was this change going on driven by mobile technology. That mobile and the internet are things we're gonna drive massive transactional growth. And so this system is really built for, you know, that mobile scenario. But the other thing which is different here I think is the thing that's really resonating for clients is for the first time it's practical to do your analytics where you're doing your online transaction processing. We're bringing that together. And, you know, that's a game changer. You know, that really allows you to get to real-time analytics. It allows you to deliver better personalization in those mobile apps, better insight. And I think that's one of the things that's really exciting clients. Let me hit the other thought here, which is you mentioned, you know, Linux and you know, the take up of Linux. You know, on this new Z13, we can run 8,000 VMs on a single frame. You know, we just had a client, CCOV, the largest credit union in Brazil, 2.5 million clients. And that's saving 1.5 million dollars a year just on the energy bill. Little on the software savings that they're getting through consolidation of their servers. They had about 400 servers. They've consolidated all that up onto one Z system. The savings are phenomenal. So Z's alive and well. I want to dig into Ron's story now a little bit. I look at you as largely a data company. So you talk about analytics and transactions coming together. Talk a little bit about Radix. Let's remind our audience what you guys do. Sure. Radix is a company that provides a softwares of service to airlines. And that service really is airline reservation systems. So it's the core of the airlines distribution. And what we're doing is selling our services to airlines. So we're not a travel agent. We're not an intermediary for travel agents. We're providing the core systems to the airlines. We have about 40 of them all over the world on five continents. The vast majority are in the developing world. And if someone is flying one of our airlines, if they make a booking at their travel agent or they go online to make a booking or they check in with that airline, it all comes back to our computers in Orlando, Florida. Everything's handled there. So what I didn't realize before we spoke that night is how arcane the system is. When you get a ticket and you ticket on a different carrier, the data and information flow is so not real time. And the ability to monetize that information accurately and provide ancillary services around it, it really didn't exist before Eradics, right? That's what we're looking at. Yeah, pretty much. I mean, we implemented the first graphical interface, internet-based system back in the mid-90s, 95. And you really have in the industry two types of airlines right now. You have one type that uses a traditional business model. They have e-ticketing. They basically are dealing with paper tickets with their virtual so you don't see them. But the flow is the same. It's a very strange flow because a paper ticket had to be in one place at a time so we have an engine that simulates a paper ticket. It's like in the old days when people would just take their brochure and make a website out of it. Absolutely. We put our brochure up in a website. Then you have another type of airline that is purely ticketless. It's just an electronic transaction. It's just like booking a hotel or booking a car. We're somewhat unique in that we support both for one airline. So certain things they may want to distribute in a ticketless fashion, others using a traditional model. Now, when you started Radix, how long ago? We started in 1993. 93, you know a lot about mainframes. Yeah, my background was mainframes. Long history mainframes. And you chose to start on different infrastructure, non-mainframes, sort of so-called open infrastructure. Exactly. But if I understand it, you've swept the floor of that infrastructure now and are moving, have moved to a Z environment. Well, if you were to look at the early 90s, what you would have seen was communications was expensive. You had relatively little bandwidth available. And the degree to which someone was moving from mainframes to servers, basically we're looking at local area mainframes for place with local area servers, local area networks. And so early to mid-90s, we were still kind of in that frame. And software on the mainframes were very expensive. It was a very different world. And so we chose to develop something internet-based Windows front-end at that point and really attempting to build in a very different way. What we've seen though is building out with servers, you wind up getting to a point where the benefits begin to diminish because as you add more and more servers, the complexity increases. And you wind up with all of this multiplicity of multi-vendor components, constantly getting changes being made to them by their manufacturers. And then you're trying to manage that as if it's a single entity, very, very hard. Now you have a lot of custom code that you've developed on this. Oh yeah, we have many millions of lines of custom code. You've had to port that over to a Z environment. And so I think back to my days of consulting with large mainframe customers and one of the challenges that they always had was that if they had a lot of COBOL code, they couldn't, they had to freeze the code, but they didn't want to freeze the code. If they didn't freeze the code, they were in big trouble. All right, because by the time they migrated. So there was this endless loop. And so they said, all right, forget it. It's too complicated. You didn't run into those problems. So why? No, actually that was one of the most amazing things. Going from mainframes to servers was an 18 month to two year project, rewriting code and the rest. Now we're taking, we're running on Linux on the servers and we're running on the database running on Linux. And so we're just loading in more servers. They just happen to be inside of a Z box. And so instead of provisioning all those individual servers with all the wires, the routers and everything else, we're just duplicating or replicating the database and turning on the standpoint. This strikes to the heart of the Z strategy that was initiated many years ago. Right. Talk about that and why it's so important. So 14 years ago, we put Linux on the mainframe. It was a side project in Burblingham. They called us up and said, hey, we've put Linux on the mainframe. Why did you do that? Good idea. And so fast forward now, there's over 30 million MIPS that are out there from the capacity standpoint for mainframes. We're at a point where 27%, eight million MIPS now are Linux. 27% of all mainframe capacity is now Linux. Now that Linux is not a special mainframe Linux. It's Linux. It is Linux is Linux. And by the way, Java is Java. There's another six million MIPS. Some 20, 22% of all that mainframe capacity, which is Java. So we actually have the system where basically 50% of all mainframe workload now is either Java or Linux based. And that's bringing all sorts of workloads onto the mainframe. We see a lot of clients consolidating, lifting up big server farms and just pulling them in and dropping them on a mainframe. And the balance of those workloads are stuff that works. You don't want to mess with. It's secure, it's fast. I'm not going to touch that. So you're seeing new growth as a result of Linux, Java, modernization of the platform. Yeah, we're seeing in excess of about a 30% caga on Linux growth on the platform. We see big growth there. And the arguments are several. The first is you get the reliability of the Z system. The second is huge software savings. We're seeing consolidation down. We're able to probably on every IFL, we're able to bring across 40, 50 VMs on a single integrated facility for Linux. The maintenance becomes much easier. You don't have people running around with fixed packs and sort of fixing things that break and plugging new wires in and new routers in and connecting things up. It all happens and all of the management can be done within that single frame. Each space savings, big energy savings. So we're on, okay. So people say, well, aren't mainframes expensive? What are you finding? Well, actually, I mean, we approach things basically on a lease basis, typically. When we look at a three year horizon. And if you look in that three years and say, okay, we're going to buy this one box and we're going to, you know, we're going to spread out the cost over three years. And then you figure there'll be some additions during that time, but all inside the box. And you compare that to a server form where you're constantly adding servers and you're constantly dealing with the changes that come. And the servers that you added at the beginning may be from the same vendor, but they may be very different two years later. And so you're dealing not just with a multiple of your vendors, but you're at different versions and the rest of these servers, different internal drivers and the rest. You start adding that up. The expense is significantly greater. Well, that, something that space of the industry, the part that you sweep in the post, they're all sort of building what's so-called convert systems trying to build mainframes. Right, that's exactly right. Let's do it yourself, mainframes, no question. So I mean, what do you make of that trend, right? You see that coming in, you say, okay, that's validation, but you just got to compete with that. Well, let's, I mean, Ron, if you look at, you know, I went to ask you to talk financials, but if you were going to estimate your, you know, savings over that three year period, like what would be your estimate? In terms of actual dollars? No, in terms of percentage. It goes 35%. 35% reduction in total cost of ownership between what we have projected with the server farms and what we at this point are seeing with the Z. And some of the things were surprises. So for example, labor cost, it is so much easier to manage a Z than it is to manage a complex server form. And I mean, it's like fighting brush fires, getting reliability out of a server form. You're constantly dealing with little different things happening that you've got to face. Any time we've done a lot of TCO work in our day, we all have, obviously, the big nut is always labor. It's a very labor intensive business, the IT organizations. So it comes from labor savings. That's right. How do you quantify that? Is that a redeployment of labor? Do you not hire new people as a result of that? Do you actually reduce FTEs? Well, we're not going to reduce FTEs, but we are, there are hires we're not going to make and that's fairly easy for us to project because we knew what our plan was. We are redeploying some of our folks to areas that we wanted to address that we couldn't and that now we'll be able to. But labor really is just one piece of it. Where else? Well, power. So the total power of the Z right now, power consumption is roughly a third of what the servers are taking and that it's replacing. Okay, and we have our own data center at our headquarters. We also use space at a co-location center. The co-location center charges for power. So that's a significant factor when you're looking and then space, you know, I mean, as we grow, we had projected taking significantly more space. Now the space is inside the box. Well, what's your take on cloud? Well, I talked to a lot of CEOs and they said, I just want to outsource the whole darn thing. Well, I mean, I think that the logical point of delineation is the API. So from the API back, API database and so on data warehouse and all of our messaging, all of our payment processing communications and so on, that'll be the main thing. Anything in front of that, what I've been referred to as the systems of engagement in the cloud. Now we've already dabbled a little bit with the cloud but ultimately our plan is to move everything on the front end to the cloud. For us, it's very practical. We have airlines all over the world. If we can move the hosting of those systems and engagement close to those airlines, we can reduce the latency. Reduce the latency, you shorten the transaction time. You shorten the transaction time, you reduce the load on the systems of records. So in thinking about this nice 35% TCO savings, but if I compare that to what you just described as the business value, I would think the business value would deliver telephone numbers relative to the cost savings. Is that a fair assessment? I'm not sure I quite understand. The value that you're getting out of the reduced latency and productivity of the business and the dollar value that that delivers is I would think much greater. It's pretty substantial. Then the cost savings. Yeah, no question. I mean, when you start looking at increasing the performance, so much of what we see now is somebody with a cell phone who is trying to find out, am I onboard that flight? Did I get my seat upgrade? Checking in and doing any number of other things, but particularly when you get to the buy side where they're making the initial purchase, that's the difference between getting a booking or not. And since we charge a transaction fee, we're really just a large virtual airline that has 40 fulfillment partners all over the world. We want them to grow. We want them to get as many bookings as they can possibly get. And if the system is slow, there are fewer bookings. So the revenue side, that's not even taken into that TCO discussion. What more can you tell us about mobile? Let me actually start with the DM. Mobile's a big trust. IBM has a company, been specifically the Z Group. Talk a little bit about mobile. I want to understand, Ron, how it's affected your business, but what's the mobile trust? Well, at the end of the day, the new battleground is client experience. It's about being available always, always on. 24-7, 365, when I reach my firm, when I get out of bed and check my bank balance, or I decide that I want to buy something, if the site's not available, I'm going to go somewhere else. So there's a number of things that we see. You need speed. That's probably the first thing. You know, we expect that in one second or less that we'll get the response we're looking for. So when we go to that app, we hit the button, we want speed. Secondly, availability, that 24-7 that I was talking about. Then you start talking about differentiation as you deal with me. So the demographic of one. So think about personalization. And that's where this analytic story sort of comes in and why we brought the analytics together with the transaction speed, because you want to personalize the information. You treat me as a single customer who's got a history with you, who's got particular likes or dislikes in the travel industry. You know, maybe I like hotels downtown. You know, maybe I like to sit in this sort of a seat. You know, maybe I like to go to the theater. You know, maybe I have all of these preferences. Treat me as a customer. You don't treat me as some random person who got on my website. So personalization is really important. And then security. You know, we're putting all this information, our credit card information, you know, maybe there's a social element, your social security number element of the thing. So security, you know, matters here as well. So one more I want to give you is scalability. So I heard this great story about this bank in Australia and their marketing department deployed this app and I'll tell you a little bit about it in a second. But the backend guys, the guys in the glass house, they suddenly saw spikes on the system on Sunday night and they could not work out what was going on. Now they're running a Z which automatically just, you know, move more resource, you know, and manage the spike. But it turned out that they'd run a TV ad that showed that if you shook your phone, you didn't have to enter the app, it just brought your credit, your banking balance up onto the front of the phone. And so all of these people watching TV, you know, watching this high rating, you know, whatever the show was, we're sitting there shaking their phone and suddenly there were tens of thousands more transactions running through, you know, doing account balance checks. And, you know, so you need to get a cope with those spikes because the last thing we want is, you know, denial, you know, I can't do it right now, systems breaking, you just can't have that. So, you know, what we focus on in Z is delivering that performance so that it's feed. You know, we can do 30,000 transactions per second or two and a half billion a day. That's like a hundred cyber Mondays you can do on one of these Z13s. We're focused on availability, that's always been a hallmark of our platform, the best security in the industry, which is again a hallmark of Z. And then, you know, bringing this analytics in, that's about personalization. So, you know, we think we've designed something for the modern sort of digital economy and, you know, we think it's going to be very successful. Yeah, you're hitting a lot of those trends. I want to come back to the mobile piece and talk in the context of your industry. Your customers, they've gone through some tough times in the past decade, right? With fuel prices going through the roof. But now, they've seemed to rationalize their cost structures. Fuel prices have dropped dramatically and you're seeing the airline stocks are booming. All right, things are good. Now you have also mobile as a tailwind. The economy is obviously doing better than it was five years ago. What does that mean for your customer's business and obviously ultimately yours? Okay, what mobile means is massive additional demand on the systems of record, massive. And I'll give you a statistic. Okay, airlines talk about look to book ratio. So if you were to go back when bookings were made through the call center, the rule of thumb was three to four calls for one booking. So look to book ratio, let's say four. Today, two things are driving a massive look to book ratio. One is mobile, the other is the online travel agency. And the combination of those two on a typical day, we will see 200 or 300 looks to one book. On a sale day, it'll get to 2,000, sometimes more. We had one airline a few years back that gave away a million free seats in India. They had 70 million availability requests, which is a look. They got 85,000 bookings that day. So it's killing the normal ratios in your business. No question. But it's driving business to the room. And it's totally unpredictable because the difference is with mobile, it's unconstrained. When somebody had to go to a computer and sit down somewhere, that limited them in times of access. Now they're standing in a bus line, they're pretty much anywhere, and they're using our systems and spawning hundreds and thousands of transactions. This is a great story. So it just really underscores the tension in your business, how you can put it in infrastructure that doesn't matter. That's a big theme of IBM's at the show. Infrastructure matters. I'm an infrastructure guy, so I always help get matters. But so, it really matters when it doesn't work, say that. Yeah. So people notice. But your business would be quite a bit different without this transition. You'd have to pour a lot more, I'm hearing it, right? A lot more people. You'd have to deal with a lot more security issues. You'd have to spend a lot more money. Yeah, absolutely. That would be taking away from an opportunity that you see as a CEO. That's what you care about. Yeah, no question. Plus it creates a competitive advantage for us. People just intuitively know the mainframe is more reliable. They know it's more scalable without looking at any of the numbers. And so it's positioned us very differently. They have modern software running on a rock solid base. Well, Ron, it's a great case study, bringing that analytic piece into your business with the transactions, the volume. Deon, I'll give you the last word. What's the big themes that you want people to remember? I mean, you touched on a lot of them. We're here at Interconnect. We've got all kinds of action going on in cloud and mobile and analytics. So what's the final message? So I've talked a lot about mobile and I've talked a lot about analytics and we talked about Linux consolidations and a little bit about cloud. But there are a couple of other things which are worth mentioning, which are new news. We've done a lot around software pricing, really game-change stuff. So we've brought out what we call ICAP or it's basically containerized pricing for incremental workloads that come onto the platform. Essentially isolating that workload, making sure that the costs associated with that software are independent and we're getting a lot of excitement from clients on that. New flexibility like we've never had before. Multi-flex pricing allows in-country to consolidate, MIPS up for a mainframe client. This has been a big ask and so we announced that as well. Blue Mix for the first time. Full Z participation now with Blue Mix. So that's another new thing we've added. Another key pricing action we've taken is around memory. So in this new system, we've got 10 terabytes of memory as a maximum on the system. Before, the maximum was three terabytes. For many of our clients, that'll mean they can go three X to five X what they're currently running on their systems. So we really want to encourage that. As we see more Linux workloads going on, we've added SMT to the platform. We think there's gonna be a lot more Linux coming onto the platform. It'll help with Java performance as well. We've taken the axe to memory pricing and for many clients, it'll be 30% of what they paid for memory in the past. So you could basically, for what you used to buy your memory for, you could now get three X. In fact, if you get more than that, you'll see even bigger saving. But for many of our clients, there'll be dramatic savings around memory and that's gonna deliver immediate performance in peripherals that'll mean less pressure on the processes, it'll mean we're spending less time moving data around. And we're seeing very large projections on performance improvement because of that additional memory in the systems. So mainframe cycles are obviously a big deal for the Z division, big deal for IBM. I talked to a number of customers at your event and several said, yes, I'm buying, not I'm thinking about it. One, in fact, I'm buying four site unseen. So that's great. It's great news for IBM. It's great news for the Z platform and I think great news for customers. So gentlemen, thanks very much for coming to theCUBE. It was really a pleasure having you. Great story. Thank you guys, thank you very much. All right, keep right there, everybody, we'll be back. This is theCUBE, we're live from IBM Interconnect at the Mandalay Bay, this is theCUBE. It is a live mobile studio. We bring it to events and we say we extract the signal from the noise. What we do is we get the absolute best guests that are at those events. We bring them inside theCUBE and we talk to them, we have a conversation. I think the difference with theCUBE is that the interviewers are active participants in big data. So it's less about trying to explain what big data is and more about relating what's going on. So we're a big data driven organization. We have a data science team that allows us to see not only what's trending broadly with the public but what's trending in very specific areas in our specialty in tech. That allows us to vector our analysis and relevance from our research and journalist team into everything that we do as a media company. We really wanna make it fun, exciting, but more importantly, extract the data from the guests and extract that metadata and share it with the world so people can use that information to better themselves, better their companies. More importantly, connect with other people to do more business, to define more about the technology. And for us, this is the future. I do a lot of these types of interviews. I've spent a lot of time with the press and it cubes a lot of fun. It's ESPN for tech. I think tech's evolved to the point where people wanna understand the personalities behind the technology, which probably wasn't that interesting 20 years ago. I think they made it a lot more entertaining, a lot more interesting, as well as putting some technical meat on the bones as well. The value of an independent news organization at an event is that it allows our audience to have a perspective that's balanced, that it's not just the vendors talking to them. It's the community. It's analysts. It's technologists. It's customers, practitioners. So they get a full perspective that's unfiltered. The benefit of theCUBE is place for conversation with people to connect with each other and to learn about things. And it's a revolution in media. We look at the technology and the people behind it as tech athletes. Those are the folks making the companies, making the technology, really creating the new value in this modern era. And it's fun, it's exciting, and more importantly, it's very social. These days, with social media, people looking to not just read articles, which are great, and obviously SiliconANGLE does a lot of that as well, but being able to see high definition video, very intimate interviews with entrepreneurs and operators, innovators in the industry, I think is really important. So the job you do in getting this out in a very timely way, I think is really important. We always know that your view is right until you hear a different perspective. So you're always interested in, give me some neutral perspective, help me see it from a different light, and maybe ask a hard question or two that I might not have considered. In that sense, that independent voice that's always ability to have sort of independent, audited sort of perspective of the world, that's always just good. The Cube has been called the ESPN of tech, and really our vision is to cover every event that's out there. We really truly want to be a global organization that is at every event, extracting the signal from the noise, being on the ground, giving our audience a sense of what's happening at that event, but also providing analysis and insight worldwide, literally for every event that's out there. You know, I love it. I was actually telling John and Dave, every time I come back to the Cube, you guys have new toys, new cameras, everything's getting bigger. So, you know, having been on it for several years, almost from the very beginning, it's always great to be back, and you guys do an amazing job, so it's wonderful. It's about connecting with people, and that really is what it's all about, having the conversations in a very social collaborative way, and that's what makes it so exciting when people are watching. Live from Las Vegas, Nevada, it's theCUBE at IBM Interconnect 2015, brought to you by headline sponsor IBM. Okay, welcome back everyone. We are live in Las Vegas. This is theCUBE with IBM Interconnect, special presentation of theCUBE, our flagship program. We go out to the events and extract the signal from the noise, and I'm John Furrier, the founder of SiliconANGLE, joined by co-host, co-founder of wikibon.org, Dave Vellante. Our next guest is Scott Johnson, SVP of product at a company you might have heard called Docker. Docker's a great company, welcome to theCUBE. Here at IBM Interconnect, so we are going to be bringing theCUBE to Docker cons, that's just news hitting the wire, breaking news right now. theCUBE will be up at San Francisco for your event, which your event was, always starts out as these small events. Your last one was like, I'm going to get together, do some marketing, fire marshals in there, kicking everyone out. Now it's huge. What's going on with Docker? Obviously IBM's embracing you guys. Redis, Docker, these are the new buzzwords inside the IBM camp, which customers are embracing. Let's talk about the story, what's going on with DockerCon and the business, and here at IBM. Absolutely, and IBM's been a phenomenal partner. We've been working with them for almost a year at this point, and so in some senses, they're coming out a lot of the great work that's been going on under the covers, and it really spans across the board. There's product integrations that we can talk about. There is a wonderful go-to markets with their services team, and let's not forget support, which is super important for enterprise customers, and we're a 90-person company in San Francisco, so having that IBM support machine behind you matters a lot, so we're super excited about that relationship. DockerCon, I mean, just start with the community, right? From zero, less than two years ago, Docker's coming up on its second birthday in March, by the way, so watch out for that birthday party. Docker, how has- We'll look for the invitation. That's right, you should be receiving one. 149 meetup groups in 49 countries around the world with 32,000 members from zero, and so from there, we bring the community together for DockerCon, as you know, and last year, our plan was for 500. We're really worried if we would sell out, not only do we sell out, we had a waiting list of twice that, and as you know, fire marshals kind of come in, kind of calm everyone down. They had no room for the queue, we had no room for the queue. There's no room. There's no room for any of us. So, it was super tight. So, this week, up to the bit, we're looking for- And you've done some financing, so you got some big bucks under your belt. There's big fat checks from Jerry Chan and Gray Law. You know, kind of spend it wisely, spend it wisely and carefully, and so we'll be expanding, we think about on 2,000 participants, but already ticket sales are off the charts and sponsorships are through the roof, so who knows? Might have fire marshals show up again. Yeah, I mean, we're really proud to be just witnessing and be part of that growth because watching, and we interviewed Solomon a couple of years ago, and then that's before Ben came on board before Jerry did the investment. You can see the movement. It was some good love going on with Docker, the approach work, the timing was impeccable. Obviously, the idea of a container's been around for a while, but the open source, perfect storm of open source formula with the container, at that time, you certainly hit that funnel cloud. You guys just got sucked up into the vortex. I think you're exactly right. It was a lot about timing, right? Because the conversation at the time and then still is about applications, app velocity, how quickly can I get my application, my innovation into production? And there's lots of great tools trying to solve that problem and Docker came along. It took a concept that had been around containers but made it super easy to use. You don't have to be a kernel jock to use Docker. And before you had to go in and start flipping C-group bits and namespace bits, Docker just made it super easy to do that and for as an added benefit, once you use that container technology on your laptop, you can snap that image, move it, deploy it anywhere. Scott, I got to ask you, because this is something that I've been kicking around and introducing to the folks here. The notion of DevOps has certainly been a catalyst. All the hyper scale, web scale, whatever you want to call it, has set the table for the DevOps. Now I'm going into mainstream enterprise. Absolutely. So the words stand up. What does that mean to you? Standing up server, standing up. That's a geek term usually in the cloud world. Hey, I'm going to stand up some infrastructure. Hey, I'm going to stand this up. It implies it's easy. It does. This is now coming into social media. Anything that's native cloud or hybrid cloud related has to stand up easily, which means one, get functional, operational, functional, operational and integrate. Talk about what that means. When you've seen the revolutions of other cycles. That's right. Talk about that dynamic, standing it up. No, I think that's a great topic. And honestly, there's been a great 10 year, a decade long education of the market in standing up infrastructure, right? And Amazon and VMware have educated the market on ease and convenience and most of all speed, right? No longer do you have to talk to Dell or any of the vendors, get a box shipped out, provision the box. You should take loud cloud back in the day. It took three months to get a box from Dell provision in the data center. Amazon and VMware completely redid that equation. And now we're seeing that same movement standing up apps on top of that. And Docker's part of that conversation due to the focus of DevOps focused on the application, but also because the market's been educated thanks to VMware and AWS on the value of speed. They're like, speed at my infrastructure layer, outstanding, that changed their world. Now I want speed at the app layer. Docker's coming in to change that world. Well, the other piece of it is you think VMware, you think private, right? On premise, you think AWS, you think public cloud. And what you hear at this event is hybrid. You know, moving it from here to there. Yeah, laptop, but then I can provision it. I can move it back if I need to. So that's sort of one piece of it. And then the other piece Scott, you hear a lot is enterprise grade containers. Okay, so what is all that mean? Yes. I think both of those are great examples of basically we're in an early market, but it's maturing so quickly. And IBM is obviously a big part, it's been a big partner in that. So the first one is really like, if you're going to deploy in the enterprise today, they want the flexibility to deploy to the cloud, the public cloud someday without rewriting, but today they're going to deploy internally. And what they don't want to do is build a stack, stand up a stack internally, only to have to rewrite it, show the economics or certain policies, allow them to push it to the public cloud later. So hybrid cloud is part of that, that stepping stone solution of like, you can deploy safely on-prem or in the hybrid cloud today, but you have the option of going public tomorrow. You know, in terms of operationalizing or maturing the technology, you're absolutely right. Look, Docker is less than two years old, right? And I've seen a lot of hyper growth, it was at Netscape, it was at Loud Cloud Officeware, it was at Puppet Labs, and so I've seen a lot of hyper growth enterprise technologies before nothing has taken off this quickly. And honestly, we're still catching up with so many of the expectations. And so you see a technology that landed with developers that was beloved by developers, could have solved great problems for them at the desktops, now those applications are heading towards production. The enterprise says, great, but I need monitoring, I need support, I need failover, I need logging, all the enterpriseification, if you will, the application. And that tooling is just, it's still being built out. Yeah, we were talking before we came on, and certainly have, we've talked to Pat Gelsinger about it, VMware, that, you know, this is decades, decade or decade long runs of innovation, exactly right. So when you talk about developers, there is a overhang on where the innovation kind of lands or grows or fruit comes from the tree. We're so early, I mean, you guys, I'm maybe overstating the ramp, there's not an indicator of where we are in the cycle. So give you a perspective on that, because you know, there's a new time, things do grow faster, sometimes weeds grow faster and we've seen that on the web app side, on consumer apps, but we know what developer tools and frameworks, this is downstream, is where you get the benefit. So how about that timing, this first five years or first decade, we've actually been surprised, so I've been with the company a year and I expected, we had 12 to 18 months before the enterprise hit, because I was thinking similarly, like it just takes time to mature the technology and the people to get comfortable with it and for enterprises to say, all right, now I have the tools to deploy it, and it's been neck snapping how quickly we've been pulled across the chasm, pulled across the chasm, like we were not expecting this quick adoption. So I think a lot of it is due to the market having educated the enterprises on speed, as we were talking about before, like they've been educated that, wow, Cloud gave me this kind of speed, Docker can give me that kind of speed, so VMware and AWS had to do a lot of education over that 10 year timeframe, we're not having to do as much education this time around because the mapping or the analogy between the infrastructure layer and the app layer, it's pretty apt. I will say, just to tie that off, is that it is not kind of one-to-one just take your apps and put them in Docker, though. I think what is going through the market right now is an education that this gives you a new way to architect your apps, the microservices, Cloud Native, a new way to architect the app, and that is requiring some education. You're trading monolithic app complexity for API contract complexity, no such thing as a free lunch, but if you do that, you move faster, you deploy quicker, you work in smaller teams, the transformational benefits are off the charts. Well, and you're talking about DevOps before, a lot of the DevOps guys, a lot of them come from ops, and they're freed up and they're smart people and it's like, okay, hey, do some Dev, and now there's this giant pent-up domain. That's exactly right. Which in hindsight, it's 2020, we should have been able to predict it better, but it was totally unpredictable. The need for speed, right? I mean, if you can go back to your application organization, if ops can go back and be heroes and say, it used to take nine months to deploy an app into production, this is a use case, ING, used to take the ING nine months to deploy an application into production. They went through a complete transformation, Docker is proud to be part of that, they now can do that in 15 minutes, the same deploy from nine months to 15 minutes. I think what that does to your innovation cycle. It's changing the game. I mean, it's not just 20%, 30%, it's orders of magnitude. And what are they shipping down in the life cycle of their apps? So this particular printing and then ship or is it more, they actually have completely retooled the organization and they can do continuous integration, continuous delivery, ops guys are involved building automation frameworks for them and they can push from a developer commit, that commit can be ready to go to production in 15 minutes. Yeah, so that is the cloud way. So as a new guy, yeah, Senior VP of product, Jerry Chen was the new guy at Greylock, does his first investment. And I said to him, just don't screw it up, Jerry, Jerry, don't screw it up. Will you have the sophomore jinx? And we laughed about that, you know, all joking aside, it's a good deal. I mean, in some way you took the job. I'll screw it up. Like, no, you got a lot of pressure. You got a lot of pressure. Well, one, you got to worry about not screwing up because you're going so great right now. Do you let the ship just ride? Do you float down with the growth? And how do you manage that process? Serious questions, okay. You've got all this massive growth. How do you shape the product? What's the product organization strategy? In some cases, we get the wind that you're back. Don't change it. Let's just move it where you want it to go. So how do you do that as a product leader? Well, I mean, it's also, let's be clear, the talk is a community effort, right? So I am a product leader at like scale. But it's like, we've got Salman who is obviously a phenomenal visionary and CTO. We've got a phenomenal team around the product organization with the engineering organization. And we've got this community that is, gosh, millions strong that's giving us feedback early and often in terms of where to go. And so, I think what we're finding is as we mature from open source kind of developer landing points in the organizations in the enterprise, that there's a new set of users. There's the QA users. There's the DevOps users. There's the operations folks. And those folks have different requirements and different needs or that complement what the developers need. So you also have a pressure on the biz dev side. Everyone wants to marry DACA right now. You're the bride of tech and you guys are winning, right? Well, next time it's who's heads up our BD organization just as a phenomenal job of trying to play nice and play well and at the same time work well with partners and the IBM relationship is a great example. All right, talk about the IBM relationship. Yeah. Yeah, no, I'm sorry, it's going. I want to understand the nature of that relationship. We talk about enterprise icing. Yes, that's right. What does that mean? What do you guys do? What's IBM bringing to the table? That's right. So I guess we'll take it kind of, there's a lot of different pieces, but we'll take kind of the most concrete cases in front of us and that we were, as you know, kind of open source is driving the adoption ubiquity for the organization to make money, to pay the developers as well as the investors. We're selling, building and selling commercial product, licensed, commercial licensed product. And we announced that in December at DockerCon Europe and we're in beta now with that product and that goes GA in Q2 in a couple of months. IBM is one of the major go-to-market partners with that product. By that I mean they are taking it into their channel. They are providing frontline support. They are doing product integrations around that product, products called Docker Hub Enterprise. And the product allows operations teams who need the tools to manage all these open source engines and containers, gives them the tools to do that effectively. And who knows enterprise adoption better than IBM? So we're super excited about that partnership and it's the entire value chain, from sales to product to support all the way through. And so we're going to be talking more about that in Q2 obviously, but that's one big one. IBM has done a number of other integrations working with us. They've done integration with BlueMix so that BlueMix is now a native Docker format. So developer again, develops the application on their laptop and developer in a Docker container, launching on BlueMix without changing it, right? Good to go. IBM as well has done a lot of investments in the DevOps spaces you're well aware. And there's a very exciting integration with their Urban Code platform to make Docker a native container on there. So Urban Code, which is managing the CI DevBuild test process for enterprises today, does a phenomenal job at that. Now if you are building your application side Docker containers, they just drop into that Urban Code process and flow right on through. So those are just some simple examples, but just it's super exciting to see kind of the resources at IBM aligned behind containers. And I'd be remiss if I didn't put one more out there, which is a lot of the market right now is x86, right? IBM of course has the resources and the community chops. They put together community versions of Docker for their mainframes, for power and Z. And so you're seeing Docker everywhere, which is Solomon's original vision, through the community and partnerships really become a reality. Because again, 80 people in a turtle can't do all that work. We just had our C guys on. It's Linux, it's Java, it's the modernization of that whole platform. I remember back in the 80s, I guess, the economists would say, you know spending on information technology, it's great, it's growing, but we don't see it in the productivity numbers. This is before the whole personal productivity boom. And then boom, they stopped talking about it because the United States became a dominant force in the world adopting technology. Productivity boom was enormous. I feel like from an application development standpoint, we are on the cusp of a new productivity boom. I wonder if you could talk about that. I agree, I think it's exciting because apps, to see the productivity, to see the results of everyone's efforts, the apps have to get into production. They got to go all the way through the life cycle. And you saw basically developers lead with Agile and Scrum and the tools around that. And that was great, but if they lead and go fast and the apps stop moving from release into production, because ops isn't there yet, then where are we seeing the benefits of that productivity, right? They're not getting all the way through. I think with the DevOps movement, with tools like Puppet and Chef and now Docker, we're now able to provide that end-to-end basically platform so you can get the benefits of all this productivity on the human side into the code, into the applications, and all the way through the life cycle. Talk about what Docker means to the world. And you look at the open source revolution. I mean, it could be written that, you know, it's the movement of the century. The modernization of open source, and we're talking to Red Hat about it last week, you get your purists, but new models are emerging. And if you look at the generations, I'm going to be 50 this year. So it's like, I remember when open source was like, oh my God, it's free, I can use it. And then, you know, back in Muslim college, you had BSD and you had UNIX alternatives and Linux then came out of that. But now we're almost in like, you could argue fourth, fifth, sixth generation, whatever, of modern open source, first year citizen, native, I'm a native Docker. This is happening really fast. What is the view of this? What does it mean to the world in terms of middleware, lower the stack? It's the same game, lower the stack, middle stack applications. The game is still the same, but things are shifting. Yeah. How would you talk about that? I mean, it sounds cliche, but Docker is about choice. I mean, if we're just kind of speaking about the kind of big movements, right? Big movements, like Docker's about choice, because now the decision of where to run your application and what resources to use inside the container, those are uncoupled, right? I no longer have my application tied to my specific infrastructure provider or my specific cloud provider or my specific OS. Now I just, and conversely, I'm now free to use any technology that I want inside the container because it's completely independent of the underlying infrastructure. We've got Microsoft doing .NET inside Docker containers now. Who'd imagine that five years ago? And so you can mix and match. It's insane. It's fun. You can use your choice to use best technology for the application and use your choice to where you're going to land that application. Well, Microsoft's learned, if they don't go open source, they're going to be out of business. I mean, I think they kind of realize, eat your own before you get eaten. It's phenomenal transformation. So let's talk about the network now. So you're abstracting away a lot of stuff for the developers, which is goodness for the spirit of the front end guys and the app developers. The network's still a problem. You've got peering issues. You've got network virtualization. But just look at the scale, right? So networking SDN up to this point has been targeting the VM type workloads. And so great, that's tens of VMs, maybe hundreds. Now with Docker, we're talking thousands of containers flying around, right? And so the SDN, what you see happening in the SDN community is the architecture really being reexamined. Like, okay, what do we need to take into account this new level of scale with thousands of containers and the ephemeral nature containers, right? You stand up a VM, stand up, it stands up. It stays there, it stays there. Microservices based applications fire up the container five minutes, tear it down. Fire it up for another five minutes, tear it down. And so the movement, I think, is a very different challenge or design point for the network guys. So we're getting the hook here, but I've got to ask you two quick ones. All right, quick one. In the big data world, it's got data lakes and data oceans. Which lakes and oceans do you like better? You know, I think the whales like oceans, right? So I think the data ocean kind of resonates with our Docker whale metaphor. Awesome, anything about that? Docker, yeah, Docker endorses data ocean. I love that. Second question, what does it mean for you guys here for the show? Docker and IBM. For customers out there of IBM, evaluating IBM. Blue makes us no AWS. They're making a lot of headway. Certainly they're moving them. Absolutely. Absolutely. Why Docker here, what does it mean for the customers? Well, I'm not going to speak for IBM, but if I'm an IBM customer watching this, it's like, wow, IBM is pushing innovation, right? Pushing gradually. I mean, whether it's cloud, whether it's application workloads. And on flip side, if you're a customer looking at Docker, you've wondered, wow, this little open source company and gosh, isn't that just an early adopter thing? Isn't that just for tech startups? It's like, no, the message is that it's ready for the enterprise. And together, I think IBM and Docker will be able to deliver on that promise. All right, Scott, thanks for coming, joining us here inside theCUBE here live at Las Vegas. This is theCUBE, and of course, we'll be at DockerCon breaking news. theCUBE will be at DockerCon extracting that signal, sharing with you. We'll get some space in there. Hopefully we won't be too tight. I know it's going to be packed out. Senior Vice President of Product, one of the hottest companies in tech right now, really connecting everything together. The clue of a massively grown market. Congratulations on your success. We'll be right back after this short break. This is theCUBE with John and Dave. First time on theCUBE. It was fun. We did it again. We did it again, yeah. Yeah, I think what I've come to find, I think my second time on theCUBE is, I mean, it's just such a real time, high energy experience. It's very good because there's no filtering of questions. I was not prepped, other than saying, go and get up there. So it was quite good, it was part of the experience. I think what you're going to get is the real answer. It's not scripted, it's authentic. It really allows you to communicate quickly, your point of view about who knows what they're going to ask you. So I thought it was great. I didn't know what the questions were ahead of time. They asked some good ones. I think some ones that if it was an unbiased thing, a biased thing, I don't think we would have got. And I think that's what people want. They want those questions. And it's hard for us sometimes to ask them unbiased because you're biased by nature. So it's great to get those questions and be able to answer them. Like I said, I love the energy. I mean, these guys ask good questions. And obviously not only them, it's the Twitter feeds coming in from questions from the audience. So sometimes it's a question nobody wants to ask, but they're thinking. So it's good. That's a great way to sort of answer those tough questions. It gave me an opportunity to hopefully share with the people watching. Some of why we're doing what we're doing. So what's going on today? Newseler, message. Email. Calendar updates. Most of us admit to being overwhelmed by informational work. That's why IBM created Verse. It uses powerful analytics to uncover hidden patterns in your email, calendars, and social feeds. It continuously learns how you work and helps you prioritize the people and projects you need to focus on. There's a new way to work, and it's made with IBM. Hi, I'm George Matthew, President CEO of Altrix and you're watching theCUBE. I'm Dimitri Zemin. I'm the CTO and co-founder of StackStorm and you're watching theCUBE. As Vice President of Product Strategy at QLogic, you're watching theCUBE. Hi, my name is Ben Jones, Senior Product Manager of Tableau Public, Tableau Software. You're watching theCUBE. 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Live from Las Vegas, Nevada, it's theCUBE at IBM Interconnect 2015, brought to you by headline sponsor IBM. Okay, welcome back everyone. We are here live in Las Vegas for a special presentation of theCUBE, IBM, Interconnect. This is our CUBE special program where we can go out and extract the civil noise. The next guest is Steve Robinson, GM of Cloud Platform Services with IBM. He's the Blue Mix guy. We interviewed him last year when he came off the stage announcing Blue Mix. Welcome back, great to see you. Thanks guys, it's always good to see you and always good to have you at our show as well, thanks. So, are you in a pinch me moment, like in my dreaming? Because when we interview, you came right off stage. It's like, okay, we're doing Blue Mix, we're all behind it. Go. So that was our beta event. At that point, we barely knew what we had. We had our Cloud Foundry version. We'd collected a handful of services and then we're like, let's go. So, you guys have been successful. So, just a quick update. I was a great journey, a lot of speed, a lot of rapid acceleration on your end. Yeah, so we launched it in beta. We got commercial terms around it at the end of June. We announced this week 100 services on top of the platform. So, we've taken every piece of middleware within IBM. We've converted into a set of services. We've got some great unique ones like Watson. In November, we announced dedicated Blue Mix. So, software's got a great thing where you can do single-tenant private resource so we can now drop Blue Mix on top of that. And then we gave a sneak preview on stage on Monday, local Blue Mix. So now, local dedicated public. We now have a complete hybrid mechanism to really get the enterprise account charged up. So, I want you to answer the questions. Not for me, I'm just paraphrasing what the sentiment is. Ah, IBM, Blue Mix, that's Cloud Foundry. They're really not committed to the Cloud with Blue Mix pass. I mean, you guys have been successful. You have the proof points. Internally, what's it been like? It's been pretty much game on internally. It's been unbelievable. And what have you guys nailed down this year? And share with us to answer that question. Well, I think the key thing we find is, you know, from the chairman down, we're 100% committed on the Cloud right now. From the acquisition of software to the rollout of the data center, 40 data centers we're going to put this thing on. And just from where we were in February to where we are today, you know, we had an estimation that we would probably have 20,000 apps up and running on Blue Mix by the end of the year. 200,000 is what we've been into. We expanded that out to London. We've got it coming into AP. The amount of enterprises that have been excited around the dedicated piece has been unbelievable. The support from IBM and also the support from the community, the momentum behind the Cloud Foundry piece, that we've seen acceleration unlike anything we've ever seen. We have one of your customers in here. The Nigel who said, without Blue Mix, he wouldn't have finished the races, really impacted his business. I mean, this is like 150 miles an hour in the ocean. Okay. He's trying to get to 210. So Blue Mix is working. You're shipping code, you're shipping solutions, what's embedded in it. And I think what you're seeing is that, you know, it's bringing this, you know, I think other paths that had kind of opened up the opportunity to really do innovation and really do it at speed. And most enterprises had held back a little bit from that as well. But now with the IBM name behind it, plus the type of services that we're putting on top of Blue Mix, they see their favorite type of middleware starting to come. They see capability and enterprise grade software that they know and love. And now they're putting their toe in the water as well. Guys like Silverhook, you know, when you're racing two and a miles an hour offshore, sensors all over the place, you know, virtual reality around the thing, they get all the pieces together to. Yeah, this is not an R&D project. Blue Mix is out delivering value. It's not about the integration. I mean, to me, that's a key part of it, right? Because people don't wake up and say, oh, I'm going to get me some pass. Yeah, yeah. Solution, so. Well, it was funny. We had Jim Dieter's on stage with us this morning and Jim does the pure startups. And, you know, for a lot of the smaller companies that are doing pass for the first time, you know, it's naturally where you go. I'm going to run on the cloud. I'm going to have an environment that brings services to me as well. Our enterprise accounts, though, you know, they've got a large set of kind of crown jewels back behind the firewall as well. And they're waiting for somebody to say, how can I use those in the equation? You know, some of the cloud vendors say, well, just port it. Some of these environments, they've been running for years and decades. They're not going to undertake a port. But how do you bring that to the case? So one of the things we announced this week as well was a secure gateway. So let me kind of use my mainframe environment. Let me use my on-premise environment. Let me bridge that back out to the cloud. Brand new API management set of services as well that lets me better wrapper those and be able to integrate it. And then also kind of a federated catalog so I can actually use some services local where it makes sense. And I've got latency concerns, security concerns. But then I can use all these great public APIs with it at the same time. So we're getting a lot of novelty on how we're bringing the cloud down to where they are today plus giving them the option to reach out as well. So what's going on in the app? You've mentioned a number of applications, like hundreds of thousands. So talk, give us some sample. Oh, sure. How would you categorize them? How should we be thinking of them? Well, I think with the passes, I think most firms are finding that it's almost a programmer's renaissance right now. So for one, it's such an easy environment to get up and going. It's almost like you have unlimited data resources. You've got unlimited compute resources. And now you can play with middleware that you would have never had exposure to as well. So we see tremendous amount of exploration going on. So we got one partner working with us and they started working on how do we bring technology into a retail store experience to kind of augment what the customer deals with. So traditionally we're bringing plasmas in that could actually tell if you're male or female. And they were using it initially for like a bike store to see help me pick out what kind of bike you would use. We launched the Watson services and one of the things we have in Watson is we can analyze your past 100 Twitter feeds and come up with the five personality traits that you have. And so they played around with that and they got some cute feedback from it. And they said, I had a nice parlor trick. But then a large car company saw that and said, hey, maybe we could use that in the dealership. Individual walks in, gives you their Twitter handle. Maybe I could use that to help assign the salesperson to them to increase the sales in the dealership as well. No one had that on the radar screen but because the ease of use of playing with these services things are just popping up. Is that now a new product? Is that, was that productized? Is that just more of an anecdotal evolution? Well, the company that sells IQ, that's a reference of ours, you know, they've already have stood up the Watson services and they launched it at South by Southwest last year and now they're playing around with other opportunities. Well, we were talking to Docker earlier with this word stand up is a cloud term, right? Stand up some servers. And if this means not provisioning it, take weeks to provision. That's a cloud term. But that's now proliferating to social media, to business. Standing up fast is a cloud DNA. Well, you know, I spent five years at Rational and we were dealing with more traditional style of development. And you know, it was unfortunate but you know, it used to be look at old software products, 68% of them never saw the light of day. It wasn't because we had bad programmers but to do a project, you had to allocate the hardware. You had to allocate the middleware. Sometimes it took six months to lay out web sphere and MQ and whatever you put on top of it as well. Then you build the app, then you have to test it. Then you got to fight with the CIO to get on the production schedule and oh, they're upgrading SAP that year. You're off the table. When we might replace that with Cisco routers, that's about a 12 week assessment. Took all the budget immediately. So we're at a point now, we're seeing guys, programmers, it's like a candy store. They're now saying I can launch a basic application and I may do a version for East Coast. I may do another version for West Coast. I may do one for a subset region. They can now explore and try things that were just completely unthinkable. The creativity is on the table. Pretty much, that's what you're saying. Well, we've actually have stood up. We've got two of these blue mix garages up and going. I've got one in San Francisco and we opened up the second one in London as well. And we kind of have it as an innovation center. So customers can come in and we actually located these on startup campuses. So we're at Galvanize in San Francisco and at level 39 in London. So a lot of companies are saying, let's figure out how to build my first born on the web application. So they come in, we help them with design thinking. We help them with a consulting practice. Within four weeks, they've got that application up and running on blue mix and software. Now, while we based it in the startup communities, we thought our first clients were all going to be startups, which we've had good luck with them, but it's the enterprises. You know, it's the big insurance companies, the big banks, the big retailers that are coming in and they all want to act like a startup for the... So what are those guys doing? Are they writing greenfield apps? Are they deploying mobile apps? Are they sort of refreshing older parts of their portfolio, all of the above? It's a mix. I think many of them are, key thing on their list is they're trying to look at, one, their core businesses and where could they be disrupted? I had one that came to me, said, we better disrupt ourselves before we get disrupted by a startup. Because in all these campuses, you've got hundreds of guys that are just figuring out how to take a pot shot at these big enterprises. It's like city yesterday saying people need banking, they don't need banks. No, I need banking, I don't need break and mortar. So some of them are saying, let's look at our core businesses and see how we can augment that. How can we get better reach into our client base? We had one client who brought us the problem that they wanted to sell insurance to a category user that they had never touched. It was the guy that never did financial planning, never saved money for college, but they had no way to reach him. So they used Bluemix to build almost a video game where he inputted just five basic financial goals. We put some great graphics around so it looked like a video game, et cetera. We really didn't think it was much of an app. The guy collected five data points. They were thrilled. This was five data points on a constituency group that they were blind to, completely in the dark. So just getting access to them, getting insights, extending existing applications, it's wide open. Let's talk about the big picture for customers, right? Because there's a lot of noise in the market right now. The big variety of reasons, exploding in value and some lanes are forming. We're seeing consolidation in the open stack play in the open stack market, for instance. Break it down, open stack, the past layers of variety of different flavors where Bluemix is playing and then I'll see Mobile First, everything else on top of the stack. Big data and whatnot, Tom Watson. Yeah, and I think we've learned a lot in the past year as well. When we first built Bluemix, one of the reasons we had developed it on Cloud Foundry is we wanted to leave the option open that should we put it on multiple infrastructures that we could easily use the portability of Foundry to be able to do that. And then kind of around the first half of the year, it was clear that this was going to be a deep pocket full stack play from top to bottom. And that's when we really started using on optimizing the full software stack up and down. I think the challenge for most public clouds, you're playing almost a three dimensional game here. So one is to get your global coverage as right as possible. So how can you quickly, are you gonna go with a mega data center, are you gonna go with as many data centers as possible? We're gonna go as many as possible. So we've got 40 in the works right now. We announced four new ones this week. And how we have those communicate, how easy it is to move data, how easy it is for enterprises to deal with data privacy and locality issues, et cetera. So that's going to be how quickly can you provide a worldwide support. And then you go deep. And I think what most firms are looking at is can you provide me a robust infrastructure that lets me do things public, do things in a more private fashion and then do things local for me as well. So things like OpenStack then gives you that consistent infrastructure. So software, I can go with a software infrastructure public, software infrastructure dedicated. When it's back on the client's machines, it's within their firewall itself. I've got to have some good rock solid base to do that on. OpenStack is the perfect choice. Remember the old OSI interconnect models? There you go. So is that what you mean by going deep that you're essentially forming, not like layers like that, but like similar stacks of private, hybrid, public, I mean. Right, you want to make sure at least enough common architecture so that what you build on that environment may have legs and you can actually do something else with it down the road. So that's what you mean by going deep? Yeah, so going deep. So being deep, being deep in functionality stack for the apps, global's more of an infrastructure play across the board. Okay, and that's for- That's pretty close, but case in point, if you look at it right now, I'll talk to a typical enterprise account and are you going to go cloud? And I'll all say, yep. How about public cloud? And they're like, nope. Or they'll say, in eight years, I plan to have 50 to 65% of my workloads on the public cloud. You're ready to do that today? I'm nervous. Nervous about security and nervous about multi-tenant and I'm nervous about the noisy neighbor. But how about if I give you a local instance today to let me start building and once we get you more comfortable with this model, you can actually take those components, move that application with no change to a dedicated environment. Sounds good to me. And maybe down the road, you want to take part of that, move it to a public environment. That sounds fabulous. So it's a GPS problem. They know where they are today. They kind of know where they want to go, but nobody's providing them the road network to get between point A and point B. You know, I'd argue that Amazon might say, hey, we're winning the enterprise. We just scored the CIA. We supply the government. We're going into the enterprise. The CIA was a little bit hauled back. I haven't heard many more of that as well. I'll see you guys out there. Part of their challenge is definitely, public is the way to go. But that's their messaging. They're saying, we could do both. Security's not a problem. They answered the security. So well, public love to them is a hammer and every opportunity is a nail. But it was a CIA deal is interesting. To me, it was a wake up call. You guys woke up before that, but IBM's a lot like Abe Lincoln, right? Seriously, it's a battleship, but it will turn. Abe Lincoln took forever to make decisions. He's honest, smart, but once he made a decision boy, right? Focused. That's who the IBM is, right? We were 100% behind him. Whether it was a wake up call, I'll give you points on that one, but we're fully behind this thing. Well, yeah, again, I think, I'm sure internally, you know, you know what's going on. Well listen, I think the challenge, I think a lot of these pure, pure cloud, pure public cloud guys, you know, we've been around, a few people say, you know, IBM's been a little bit slow to the game. I think the, what they don't realize is, you know, we've been doing enterprise grade development for decades. We've been doing enterprise middleware for decades. You've got a problem to us. IBM just does not blink. We've seen it all. Yeah, it's totally true. You know, from, you know, applaud work with the government, but you know, IBM made its name back when we did the first census, right? We did the NASA program. We've done federal projects before. Yeah, it really becomes a product issue. It's like, okay, that's a focus. Customers want that. Yeah. Once that snail, it's an engineer, you have all the engineering, you have the software. And I think what you're going to find is some enterprises, you know, some of their environment that they would like to extend portions of it out will never be ported. You know, these systems are so tuned and they're so optimized and they're so audited and they're under so much regulatory control that keeping those closed, keeping those local is exactly where they need to be. But to be able to extend those out and be able to use those in new ways in fashion, I think IBM has a very unique opportunity. Yes, and I think though, I think that for a long time, companies like IBM and others, you weren't alone in the enterprise, use that as a wet blanket to say, okay, we can just sort of do our private cloud thing. And then, boom, you had to internally make the decision to take all those capabilities and assets you had and cloudify them. You made some acquisitions, which were key. And then, boom, now it's a whole different landscape. So we're getting the hook here, but I do want to get a couple of last questions in quickly. Comment on, everyone big wants to be small, small wants to be big, that's the thing we've heard, you mentioned it. But entrepreneurship is thriving, right? You've been talking about it, the show here. Entrepreneurship startups, there's a huge opportunity for collaboration. You guys are working with startups in the cloud, you're also IBM. But what's your advice? What's your directional view of the startup landscape and the enterprise and opportunities for entrepreneurship? You know, I think we're going to see models there that just would have been unimagined prior. Like you said, you're seeing, you know, you're seeing the cats and dogs lying down together here. You're seeing the enterprises not only being attracted to the startups, but how do they start to include them in the ecosystem as well? We had Citi on stage, as you said, yesterday as well. We're working with them to sponsor a national hackathon where they open up APIs, we bring Bluemix to the table with all of our services, we're getting other sponsors to bring their APIs, and who are they opening it up to? Not to city developers, but to the startup community. So they would love to start up some Silicon Valley and Tel Aviv, et cetera, to see what can they now build with this wide swath? So do you see the success of like Docker and open source with developers, which is obviously collaborative. Now moving over to the business, technical business model side of it, with startups, because if the new way to work or the new way to think is to be collaborative and in the open with big data, everything's being watched out in the open, is there a new model of startup collaboration with the big companies that are out there? In a way, it's kind of like that model of open source. You're definitely gonna, it's all going to be community-based. You know, the more guys you have around it, the more numerous companies, the more innovation, the more longstanding. You know, a lot of the guys on the West Coast, I'm open source. I put my code out in the open, but unless you have multiple people contributing to it, it's not going to be a standard that lives longer term. So I think companies are seeing that as well. If they want to be viable long-term, can they be attracted to a wider community of technology providers and also bringing their ideas to the table as well? That's how you differentiate. That's how you keep from being disrupted. A new way to do business, new business models. Steve, thanks so much for coming. You've been over a little bit. I want to get that entrepreneurial angle in. I know it's near and dear to your heart, as well as the cloud here at IBM. We are theCUBE broadcasting live in Las Vegas. I'm John Furrier, Dave Vellante. We'll be right back after the short break. It was my first time on theCUBE. It was fun. Do it again. Do it again. Yeah, I think what I've come to find, letting my second time on theCUBE is, I mean, it's just such a real-time, high-energy experience. It's very good because there's no filtering of questions. I was not prepared, other than saying go and get up there. So it was quite good, it was quite an experience. I think what you're going to get is the real answer. You know, it's not scripted. It's authentic. It really allows you to communicate quickly your point of view about who knows what they're going to ask you. So I thought it was great. I didn't know what the questions were ahead of time. They asked some good ones. I think some ones that, if it was an unbiased thing, a biased thing, I don't think we would have gotten it. And I think that's what people want. They want those questions. And it's hard for us sometimes to ask them unbiased because you're biased by nature. So it's great to get those questions and be able to answer them. Like I said, I love the energy. I mean, these guys ask good questions and obviously not only them, it's the Twitter feeds coming in from questions from the audience. Sometimes it's a question nobody wants to ask, but they're thinking, so it's good. It's a great way to sort of, you know, answer those tough questions. It gave me an opportunity to hopefully share with the people watching, you know, some of why we're doing what we're doing. So what's going on today? Message. Email. Calendar updates. Most of us admit to being overwhelmed by information at work. That's why IBM created Verse. It uses powerful analytics to uncover hidden patterns in your email, calendars and social feeds. It continuously learns how you work and helps you prioritize the people and projects you need to focus on. There's a new way to work and it's made with IBM. Hi, I'm George Matthew, president, CEO of Altrix and you're watching theCUBE. I'm Dimitri Zemin. I'm the CTO and co-founder of Stackstorm and you're watching theCUBE. I as president of Product Strategy at QLogic, you're watching theCUBE. Hi, my name is Ben Jones, I'm the senior product manager of Tableau Public, Tableau Software and you're watching theCUBE. Hi, this is Francois from Tableau and you're watching theCUBE. Cute little guy, huh? This guy could take down your entire company. Stay with me. On Thursday, a hamster video goes online. On Friday, it goes viral. A network choking phenomenon. Why do you care? He's on the same cloud as your business. The more hits he gets, the slower your business may get. Do you wanna share your cloud with a hamster? Today, there's a new way to work and it's made with IBM. This is a burrito made with chocolate, soybeans and apricots. What kind of chef comes up with this? A chef working with IBM Watson on the cloud. Ingredients are just data. Watson turns big data into new ideas and not just for food. Watson is working with doctors and bankers to help transform their industries. Today, there's a new way to work and it's made with IBM. Hey, this is Brian Seraven, Director of Digital Media for the San Francisco Giants and you're watching theCUBE. Hi, I'm Dan Gordon, co-founder of Gordon Bearsh and you are watching theCUBE. It's from Henland, Senior Analyst of Technology and Business Research, and you are watching theCUBE. Dr. Randy Fagan, the Chief Administrative Officer of the Texas Institute for Robotic Survey at HCA. And you're watching... Location. Location. Location. Here's the location the most of the most. Here, or here, or here. It's wherever this is. To get customers to come here and stay here, you're gonna need an app that connects to all your systems so they can bank, shop, do what they need to do and you gotta do it fast before the competition does. It's tough out here! You better be on the right cloud. Today, there's a new way to work and it's made with IBM. Hi, I'm Andrew Kreitzer, Business Operations Manager at LinkedIn and you're watching theCUBE. I'm Chris Selland, VP of Business Development for HP Big Data and you're watching theCUBE. Hi, I'm Stacey Slaughter, Senior Vice President of Communications for the Giants. I'm in the garden at AT&T Park and you're watching theCUBE. I'm Thomas Minnick, Business Intelligence Consultant within our works and you're watching theCUBE. Hi, my name is David Tishkart, Director of Partner Marketing at Cloudera and you're watching theCUBE. Hi, I'm Jim Yu, Founder and CEO of Bright Edge and you're watching theCUBE. You can bring back a lot of things from a trip around the world, but you can't always bring back customer data because many customers don't like it when their data moves around. If you're gonna do business globally, you need a cloud that can keep your data where it needs to be. Today, there's a new way to work and it's made with IBM. Live from Las Vegas, Nevada, it's theCUBE at IBM Interconnect 2015. Brought to you by headline sponsor IBM. Okay, welcome back everyone. We are live in Las Vegas. This is theCUBE, our flagship program. We go out to the event and extract the similar noise. It's looking at angles, proud to be here for a special event with IBM Interconnect in the Go Social Lounge where all the action's happening. Go to interconnectgo.com for the new social experience site powered by CrowdChat, CrowdChat platform, the VIP influencers, a great way to experience the show if you're not here live. Our next guest is Nancy Pearson, CMO of IBM Club, welcome back to theCUBE. Great to see you. Great to see you guys. Love chatting with you, you're dynamic, you're so awesome, great to have you back. And the cloud is super hot right now. It is so hot right now. This is dominating the show pretty much. I mean, there's a lot of stuff going on, but this is a cloud show. It's all about under the hood and application speed, standing up stuff. What's your take? How do you feel? Are you happy with things here, customer reaction? I feel terrific about this event. I really do. And as you know, this is the first one of this size. So we compressed three of IBM's previous conferences into one major conference and we made it the cloud and mobile conference. So yes, it's all about cloud. We've got some mobile in there as well, but we're really actually covering the entire portfolio here. So it's been exciting and we actually got 45% of the attendees are new to any IBM conference. So that's kind of a really important number and we've seen some really positive feedback from our clients and from our business partners. They're saying that's the most exciting part about this event to them because they're having some new conversations. So that was one of our objectives. The other was to combine the content, really focus on cloud, make some major announcements around our hybrid cloud, capabilities and our strategy. And then also profile clients. This is about client success. A lot of client success and key partnerships. So the data doesn't lie. Well, you know we're data driven. And so I'm looking at the IBM community of Interconnect, the three shows. Since you guys announced the three shows been running full monitoring on our listening engine. And over the past three months data, the top interest points are cloud, big data and IoT. And the other ones are IBM, IBM Centric. But the three top are cloud, big data and IoT. Do you agree, is that the right sentiment? I mean, IoT seems to be coming up in every conversation in applications, mobile, healthy cloud. It really is. And you know, when we talk about cloud, it's really impossible to talk about cloud without talking about big data analytics or IoT or mobile and even social. And in fact, we took a very different approach to this event from a general session perspective. We focused on client vignettes. And so we have highly produced client vignettes for every general session. So it's not an IBM or up there talking with a bunch of PowerPoint charts about technology. It's, we bring to life a customer scenario. And in many of these scenarios, they cover IoT plus mobile plus cloud in very meaningful ways, you know, in an integrated approach. And I think that's another interesting thing about the way we're doing this particular event differently is we've had clients kind of railroaded into, oh, you're going to go to Pulse because you're interested in systems management and asset management. You're going to go to Interconnect because you're interested in WebSphere and business process management. So bringing all of this content together, cloud is really permeated all of these areas. And then we get more clients because they understand it more from their perspective versus are going at it from an organization out perspective. Plus it's more integrated. So you're hearing the stories that are, you know, full end to end. Right. So talk about your keynote a little bit. Yeah. So well, yesterday was general session kickoff and Robert LeBlanc did that with Airbus and Citi. I'm sure you probably went through. Citi was unbelievable. Citi was awesome. So cool. It was really great. Jerry did a great job and so did the city executive. So today this morning I did the keynote on business, cloud business applications. And we also- You made it to your keynote. I did make it to my keynote. It was questionable. And we had a couple of fits and starts. There were little technical difficulties, but I just got up on stage and delivered anyway. So- And the key message was there? Our key message there was we featured a lot about business applications and we featured the IBM cloud marketplace. You know, that's something that we announced last year. And now we have over 400 services in the cloud marketplace between IBM and third parties. And so we took a fun approach. You know, I gave an overview of what's happening in terms of digital transformation, reinventing your business processes, how you need to do that with new services, you know, your own capabilities as well as third party services and a strong development platform. But we did it with a vignette. So we had this story about the Stratus Cafe and we had Chef Jay Baer, who was the guy who was the commentator on the first day, come up, big chefs had a whole outfit. And he basically, you know, he took them through a startup cafe and what would happen in terms of you needing to, you know, merchandise your cafe, hire talent, do one-to-one marketing, all through the cloud marketplace and leveraging and demoing those services. People loved it. They thought it was really great. Yeah, we had, did you just pop up restaurant? Yeah, we did pop up restaurant, exactly. That's exactly what we did. Shark Tank action, you know, have the entrepreneurs come in with their proposals. You know. You know, that was one of my ideas for the conference. I was hell bent on getting Shark Tank here. And I think it's going to be really fun because we took some of the key entrepreneurs, the finalists, and it's one of my favorite shows. We're kissing live on theCUBE. Oh, I love that show. SharkCube. SharkCube, yeah. Shark TankCube. That's right. You could do some rebranding here. I like that. Yeah, Dave's a shark. I'm more of a sheep, but. Thanks. Going back to the key theme of clouds, I mean, that's the same question. Are you having a pinch me moment like Steve asked the same question? It was like, you guys announced it a year ago. I mean, this is not even a year. I know. So we were kind of like, it's in beta. We don't know how it's going to go. Right? Remember that too? You know, we were talking about 2,500 and that was a stretch number at the time. I'm sure Steve updated you on the number. It's 250,000. Yeah, it's massive. So, and now, you know, what we're also saying, a very important part of the Bluemix momentum and market penetration is some of these key relationships like Bluemix and, you know, Capgemini, CFC, some of the new announcements that we've made here of tech Mahandra. So large system integrators that are really integrating and standardizing on Bluemix. That's the kind of momentum a year later that's pretty significant because those are large enterprises. And certainly we have a lot of individual developers on the platform as well. Well, I think the big shift that we've noticed, Nancy, is that previously, a couple of years ago, it was sort of everybody wants hybrid. There's a lot of concerns about the public cloud, the people are nervous, blah, blah, blah. But we don't have a solution. Now, all of a sudden, you really, by the way, we were saying before it was true, but now you've got a solution. And so what's the customer reaction been to that? The customer reaction has been very positive. You know, whether it's our hybrid cloud announcements around visibility and control and security, or we made a number of developer productivity announcements, I'm sure Steve talked to you about Bluemix local, but in addition, the secure gateway capabilities and API harmony. If you think about this, we're making it easier for developers to develop that innovative app and do it in a way that's secure and able to leverage the requirements around flexibility in terms of moving your data to the application, moving the application to the data, getting decision-making closer to the client through these applications. So the feedback has been very positive. I had dinner with Gartner last night. And, you know, we've got a number of things that are exciting and really help accelerate our client's success with cloud. So it's not about just bringing out ancillary, whiz-bang technology. It's about understanding where our clients are, listening to them, and making it easier for them. There's not a question about, am I going to go to cloud? Whether I need cloud technology. It's where are you and your journey and how can we help you accelerate it? Actually, talk about journey. You got a lot of great feedback on Twitter on your keynote startup, the journey of the startup, but one comment here I wanted to get your take on. Oh, besides, best shoes of InterConnect goes to Nancy Pearson. Oh, great. You got a treat there. I mean, when you're on stage, you look at it. Wait a minute. Are my shoes trending? That's all I want to know. The data, that's what the crowd's saying. The journey of the startup, the stage, discussing the transmission of the startup, that was good positive. The comment of disruptor or disrupted. What do you mean by that? What is that concept? You're either on the side of being the winner or loser, right? I mean. It's a decision that we're saying the audience really needs to make that decision. So, if you look at the nexus of forces and the advent of cloud, mobile, social, big data and analytics, you have other businesses like the non-traditional businesses like Fitbit and Uber coming into the market. They're leapfrogging technology, the technology legacy challenges of large enterprise, but they're also innovating on these applications that can disrupt your business. And it's not technology disruptor either. It's a business model. Yeah, disruptor. It's a business model disruptor because they're breaking the class. Enabled by technology. Enabled by technology. Well then they got to go back and get the tech because once they break through, they got critical mass. Right. This is the new business model, the new way to work. That's the new way to work, exactly. The new way to start up. Yeah. So I told them the story this morning of, I was with a large aeronautics or aerospace customer that we all have been flying on their airplanes. And their client rev asked me to come in and talk to them about cloud. So, I was telling them about how clouds are designed about innovation. And they're like, well, we're trying to figure out what applications we should move in. And I said, it's not, you can't just think of it that way. That's a very infrastructure data center oriented way of looking at it. You need to look at it as to how can you leverage cloud technology to basically increase new revenue streams around your core competency. And they said, aren't you worried about competition? Because the airline industry is very competitive. And they said, well, not really. We have this great app and we're using this great app. And I said, well, are you thinking about how to create kind of augmented solutions or services around the core competency of airline travel? And I said, an example would be if you looked at something like Uber, in New York City, Uber not only has provided transportation in a totally different way and in an expedient way, but they also did some testing around porting nurses to people's houses to do flu shots during that spike in that time of the year. It's not within their core competency. Well, it is because their core competency is transportation, but they're including other capabilities and experimenting on other delivery methods, leveraging their infrastructure. So I said to the airline, you could be creating services around a car service. So when people get off the plane, it's your car service. You can be coordinating multiple services that are adjacencies to airline travel. And then people will flock to you because there's one place to get through one application. I can get my car, I can get my airline tickets, but it's your service, not some travelosity who's doing it and disrupting you. Well, this is the interesting thing is you can, you're now seeing organizations traverse horizontally across different industries. These adjacencies we're talking about are enabled by technology, clouds sort of the substrate. Data is one of those transport mechanisms. Social information is one of them. You're seeing companies, Apple gets into financial services, Bitcoin, Amazon's getting into entertainment. I mean, it's insane. Well, the barriers to entry in terms of expanding horizontally are much lower with cloud and big data and analytics and social because you're transforming your business process. So it's interesting because everybody looks for disruption and technology waves and says, oh yeah, this next wave is going to kill all the old guys. That's not happening. What happens is the old guys actually have a ton of cash, they got creamed before and those guys who didn't go out of business realized that the people at the helm realized, well, we can do this too. Right, right. So either be disrupted by somebody new coming in and taking your core competency and doing it better. That's number one. Or you innovate internally and disrupt. Disrupt your industry. So what can clients learn from IBM? Because you guys are one of the largest, oldest companies in the world. You are both now, you've got a $25 billion business which is this disruptor business. You've got almost a $75 billion business that people are trying to disrupt. So you're in the middle of that and you're navigating it. We are and we're very upfront and back to my keynote. I was very upfront with the audience saying, we're going for this digital transformation as well. We're changing our business model. We're introducing the cloud marketplace. And yes, it's only a year old and there's, we know we need to do more with that but it's opening up a channel. That's a consumption strategy. People want to consume that way. Why wouldn't you go into business? That's right. They want to self discover. They, 70% of clients make decisions before they ever even contact you in your business. And where are they making those decisions? They're making them online. They're doing the comparisons themselves. You might as well serve them a fertile environment like a laboratory or a library of capabilities. You guys are going for it. I got to say IBM, you guys are going for it. The way you do your social business outreach. I mean, you've always been great for theCUBE. Openness. Now with cloud, you got soft layer in there. You got some meat on the bone. Blue mix is taking off. There's a rising tide. We expanded soft layer around the world. And all the engineers are working on it. So I want to talk about two things. Internal action in terms of building value fast into the platform from all the resources around IBM. What's going on there? And how do you market against Amazon? They are winning the gold standard in public cloud. They're viewed as winning the integrated stack. But now blue mix, red S, you got node. I saw an Adam Gunther, he's like, Adam's like, he's like, you guys are taking some ass. Not fast enough, but go faster. So I'm sure they're all like, we want to go faster. So how do you market against Amazon? Given now you got the soft layer, now you get the blue mix, you got open stack. And what's going on internally for the resources? Well, from a resource perspective, you know we created the cloud unit. So we pulled a lot of those development resources together now very much all focused in the same direction. So we're going to be able to go much faster this year. We've taken the power of IBM and put it right in the sweet spot of where Jenny wants us to focus, which is on cloud. And again, cloud brings in. So that's basically like, stop everyone says time out and then time out resources, bang. That's right. Each of them is faster. It's all cloud. Yeah, nice. And again, the marketing teams all came together. The development teams all came together. So there's no excuse, right? We've got to continue to go more quickly. Now your point about like, how do we market against Amazon? The reality is Amazon is an infrastructure as a service. It's a public cloud, but it's only the infrastructure component. So when you talk about what we have, well, and you see, we see some blurring between infrastructure and platform. But so we've got software, we've got Bluemix and we've got a SaaS portfolio that's pretty robust and we're going to continue to invest there. Some clients don't want to take a piece over here, a piece over there and a piece over there. Because by the way, they're in large enterprise. They're already pretty fragmented as it is. And their biggest fear is visibility control over hybrid cloud environments. So they're either hugging their infrastructure behind the firewall, right? And very nervous about the public cloud, or they've chosen the public cloud and they realize they're expanding and they've got to tie back into legacy data or deal with the late data sovereignty problem. Yes, that makes a lot of sense. So our announcements, we're really focused on, we're able to bring visibility control to hybrid cloud environments, right? And we have capabilities at each of those layers. We're integrating those capabilities across the layers more. And so when you think about it, if you're a growing business, you're going to be able to come to one place and get an open architecture. And we're offering third-party services as well. Open architecture. Open architecture, open cloud. You guys are committed 100% to open architecture. That's right. So you've got infrastructure as a service plus, that's kind of Amazon. You got SaaS minus, which is kind of like Salesforce. All right, to me, you described it. The best solution is a layer stack of infrastructure service, platform as a service and software as a service that open integrated. That are integrated, exactly. Okay, so the IAS piece coming together nicely, the past piece very clearly coming together nicely. What about the SaaS? Can you talk about that a little bit? You've purchased so many SaaS companies. That's a hard thing to bring together. Well, that's what my keynote was about. It was really on the SaaS applications, the marketing applications specifically, workforce and talent application, and then a strategy application. And by the way, most of those SaaS services are leveraging Watson. Where else can that be? Nobody else has that technology. So it was amazing to show the audience how embedding Watson technology in whether you're sourcing for the best talent in the city that you're looking to start your pop-up shop in or you have a growing business and you're trying to deploy marketing by leveraging analytics that are pulled in through not only Watson, but also some of the other capabilities that we have, statistical capabilities that we have. So that's a big differentiator. Do we have that across everything? No, but we have that across some very focused areas that are growing quite rapidly. We're not a lot of companies have that. They don't have that. A handful, right? We are not even customer base. You're install base, they're from data centers. So you can't just say, oh, we're going to compute Amazon head on, but they're coming into the enterprise. So you got to kind of put the heat shield up a little bit and say, whoa, whoa, whoa, we got to address this concern of economics, new way to do business. Well, they made a lot of noise two years ago. Amazon, I was saying, hey, we're coming to the enterprise. And I think they were somewhat naive. I think they were very naive about it. Well, it's not easy, right? It's the enterprise. We know that it's not easy. Trusty, it's good. I've seen startups go out of business thinking the enterprise is easy. So Amazon, again, then big startup. Internet of Things, why is that so hot? Big data, I can see in cloud and big data work well together because analytics feeds the apps, clouds the engine, Internet of Things, is that kind of just another word for mobile or edge of the network? I don't really see it that way. Mobile is about the mobile experience through a mobile app. Internet of Things is about integrating sensors and data structured on structured data through all kinds of devices, right? It could be your refrigerator. It could be from a car, right? It could be from TPS, from a boat. We had Bosch on yesterday, right? Right, you'll see the dishwasher. Yeah. Nigel was on. Silverhook, right? Yeah, that's such an exciting story. That's a great example, by the way, right? In terms of not being able to be able to demonstrate a whole sport and get people engaged, a lot of what we're talking about is about engagement. So their business, they wanted to engage and they wanted to share data and information across the human that was driving the boat as well as the support team behind the seats and the fans. We interviewed them in Cuba earlier, by the way. Did you? That's a great story. Great guys, too, dynamic. Great interview. So he's like, thanks for Bluemix. No, literally, Bluemix, Watson, Cloud, real-time. They couldn't do it before. They fundamentally couldn't do what they're doing now before without Bluemix. But that's about instrumentation. It is. On the boat, leveraging it in real-time to the Cloud, back with Bluemix. That's right. And presenting it in a way that can engage a massive audience that's, you know, could be two or three miles away. What's the big confusion on the internet of things? People, as it, some, you know, GE calls it industrial internet. That's got their flavor. Cisco calls it internet of everything or what? I think you're seeing just some of the same, the terminology's not the same, because I have seen the internet of things grow over the last year tremendously. And just in terms of people even talking about it. So I just think it's, you're at the earlier stages of it. It's the same way people talked about Cloud. It's the same way people talked about mobile. Now they're much more comfortable and understanding. The same way, right? Same thing. But so it's, I think it's more of a maturity thing in terms of people really understanding and getting it. It's the next wave. Exactly. But it's here. It's not coming someday soon. And it's a developer hook, too. I mean, developers are mobile. It's very much a developer hook. You know, how do you create those applications? Right? Okay, so what's next? What's the big focus this year for you guys? We asked this last year, and you just said we're going to do it best we can. We're going to get out there and create shit with the developers and learn and develop the community. What's your marketing philosophy this year? But you got a lot going on, right? You got SoftLayer, you got Bluemix. You got the tsunami of growth with data and Cloud. Right. What's your plans? So clearly we're going to continue to build out SoftLayer and Bluemix and our hybrid cloud capabilities for visibility and control, integrating across those elements. Again, that's not a job that's done, right? The more we can integrate, the more beneficial value we'll be providing to our clients. And then in addition to that, some of these key partnerships. You saw us partner with SAP. You saw us partner with AT&T, with Microsoft. You know, we'll continue to have some key partnerships because they're bringing us into their industry or into their business on top of our cloud. So we'll continue to do that. And then there'll be some surprises, you know, we'll get into some things that really change the game. That's what I call. And what's the big thing that's going to come from this IBM focus of the cloud division and all these resources? Speed, and agility, and innovation. Awesome. Nancy Pearson, here inside theCUBE, we're looking forward to it. Obviously, you know, when IBM starts putting their engine together, they got a lot of resources. So we're looking forward to watching it, being part of it, covering it. This is theCUBE bringing you all the signal here at IBM Interconnect. I'm John Furrier, Dave Laugh. We'll be right back with our next guest after this short break. First time on theCUBE. It was fun. We did it again. We did it again. I think what I've come to find, I think my second time on theCUBE is, I mean, it's just such a real time, high energy experience. It's very good because there's no filtering of questions. I was not prepped, other than saying go and get up there. So it was quite good, it was part of the experience. I think what you're going to get is the real answer. You know, it's not scripted. It's authentic. It's, you know, really allows you to communicate quickly. You know, your point of view about who knows what they're going to ask you. So I thought it was great. I didn't know what the questions were ahead of time. They asked some good ones. I think some ones that if it was an unbiased thing, I mean a biased thing, I don't think we would have got it. And I think that's what people want. They want those questions. And it's hard for us sometimes to ask them unbiased because you're biased by nature. So it's great to get those questions. You'll be able to answer them. Like I said, I love the energy. I mean, these guys ask good questions. And obviously not only them, but the Twitter feeds coming in from questions from the audience. So sometimes it's a question nobody wants to ask, but they're thinking, so it's good. That's a great way to sort of, you know, answer those tough questions. It gave me an opportunity to hopefully share with the people watching, you know, some of why we're doing what we're doing. Next one, scene three. Open port 2201-7 on the firewall for customer DB access. Install version 2.3 of DB connector and ensure verbose flag is set in case of problems. Isn't the cloud supposed to make business easier? Get the one that can connect to the systems that you already have. Today, there's a new way to work and it's made with IBM. Hi, I'm Andrew Kreitzer, business operations manager at LinkedIn and you're watching the queue. I'm Chris Ellen, VP of business development for HP Big Data and you're watching the queue. Hi, I'm Stacey Slaughter, senior vice president of communications for the Giants. I'm in the garden at AT&T park and you're watching the queue. I'm Thomas Minnick, business intelligence consultant within our works and you're watching the queue. Hi, my name is David Tishkar, director of partner marketing at Clodera and you're watching the queue. Hi, I'm Jim Yu, founder and CEO of Bright Edge and you're watching the queue. So what's going on today? News alert, message, email, calendar updates. Most of us admit to being overwhelmed by informational work. That's why IBM created Verse. It uses powerful analytics to uncover hidden patterns in your email, calendars and social feeds. It continuously learns how you work and helps you prioritize the people and projects you need to focus on. There's a new way to work and it's made with IBM. Hi, I'm George Matthew, president and CEO of Altrix and you're watching the queue. I'm Dimitri Zemin, I'm the CTO and co-founder of StackStorm and you're watching the queue. Vice president of product strategy at QLogic, you're watching the queue. Hi, my name is Ben Jones, senior product manager of Tableau Public, Tableau Software and you're watching the queue. Hi, this is Francois from Tableau and you're watching the queue. This guy could take down your entire company. Stay with me. On Thursday, a hamster video goes online. On Friday, it goes viral. A network choking phenomenon. Why do you care? He's on the same cloud as your business. The more hits he gets, the slower your business may get. Do you wanna share your clouds with a hamster? Today, there's a new way to work and it's made with IBM. Hey, this is Brian Sarabian, director of digital media for the San Francisco Giants and you're watching the queue. Hi, I'm Dan Gordon, co-founder of Gordon Bearsh and you are watching the queue. I'm Lynn, senior analyst of technology business research at TV and you are watching the queue. I'm Dr. Randy Fagan, the chief administrative officer of the Texas Institute for Robotic Surgery at HCA and you're watching the queue. Location. Location. Location. Here's the location that matters the most. Here or here or here. It's wherever this is. To get customers to come here and stay here, you're gonna need an app that connects to all your systems so they can bank, shop, do what they need to do and you gotta do it fast before the competition does. It's tough out here. You better be on the right cloud. Today, there's a new way to work and it's made with IBM. Act one, scene three. Open port 22017 on the firewall for customer DB access. Install version 2.3 of DB connector and ensure the boast flag is set in case of problems. Isn't the cloud supposed to make business easier? Get the one that can connect to the systems that you already have. Today, there's a new way to work and it's made with IBM. You beat the number one seed. You just have to win 70% of your points at net and keep unforced errors under 10%. On the IBM cloud, the US Open analyzes 41 million data points from eight years of competition to uncover key insights. Data can help show you how to win, and that's not an old business you're in. Today, there's a new way to work and it's made with IBM. Live from Las Vegas, Nevada, it's theCUBE at IBM Interconnect 2015. Brought to you by headline sponsor IBM. Okay, we are back live inside theCUBE. This is SiliconANGLE's flagship program. We go out to the events, extract the scene from the noise. I'm John Furrier, the founder of SiliconANGLE. I'm showing my co-host Dave Vellante before I know Wikibon research. I'm next to get to Jeff Fry, CTO, SystemZ, platform with IBM. Welcome to theCUBE. Thank you. So SystemZ is the big event we covered in New York City at the Jazz Center, which is phenomenal. It's the mainframe, huge, I call it the God Box, but that's California term, I guess. It's powerful, it's a mainframe system, but no one calls high-performance computing mainframes anymore, they're just big machines that kick ass, basically. So what's under the hood? What is the mainframe evolution to this modern world? People still probably have mainframes out there, big banks and whatever. But right now it's about speed, I need in-memory, I got all this stuff going on, large data, tsunami data, what's the innovation? What's under the hood? Well, I think that a traditional value of the mainframe is the more work you put on it, the better it performs. It's a large, shared pool of resources. It's got the best, fastest single-thread processor speed in the industry, lots of memory. We focus on a balanced system design. So processor, memory, bandwidth, internal buses, IO, it all comes together to provide ultimate scale and performance. And with the Z13, we've taken another turn on that crank, right? With absolute best single-thread performance in the industry. I think what's interesting about this mainframe is that we really focused on compute performance. So, you know, the traditional- Give an example for the order of magnitude, like, okay, I get the single-threaded thing, that's great, but performance, what does that mean? Well, we have a 5.0 gigahertz single-thread core, which is probably almost double what most distributed platforms have in terms of single-thread performance. And while a lot of competitive server platforms have traded off single-thread performance for more cores or more parallelism scale out, we haven't given up on that. Everybody's hitting the laws of physics. And in terms of the rate at which you can improve performance in these single-threads, but we're pulling every trick we know out of the book to ensure that we deliver industry-led performance. Can you say you focused this time around on compute performance as opposed to IO? Well, I think there's a well-earned reputation for Z being a high-volume transaction processing engine, data-serving, traditional workloads. But I think there had been a view that if you want to do numeric-intensive or compute-intensive or statistically mathematically-intensive workloads, you run those somewhere else. And with the advent of our objective to get more predictive and prescriptive analytics to the platform, with this machine in particular, we focused on mathematical performance of the engines. So we introduced vector processing, single instruction, multiple data, lots of memory, multiple threads per core, and that all contributes to computing. I see what you're saying. So yeah, the main frame you don't think of is you're traditionally as your high-performance computing system. Should we start thinking about it as high-performance computing? You know, I think there are extremes in terms of high-performance computing, but it's fair to, I think, recognize that commercial traditional, even traditional, transaction processing is becoming more compute-intensive. The language runtimes are making more use of compute performance rather than just moving data around. So, and I think it's really part of the core strategy here to use tools like IBM's SPSS, right, modeling tools, which generate these statistical models, and those things are mathematically and computationally intense. So we got to make sure we run those, best of breed on the platform. Got a long history at IBM, we were talking off-camera. When you saw the virtualization trend occur. Yeah. What did that feel like to you? I mean, I'd say the virtualization. I mean, VMware, specifically. Yeah, I thought you might have been talking about 1967 when we invented it. Right, right, yeah. But that's what I mean. So did you just look at that and shake your head or say, boy, that was a missed opportunity or what's going through your mind about that? I think that, yeah, a little bit. I mean, we, you had mentioned, we were talking a little bit off-camera, Z tends to be kind of the workhorse that just, it kind of works in the back room and it doesn't break, so it doesn't get a lot of attention. And I think there are some that just aren't completely aware, completely up to speed on the technologies that have been in this platform for quite some time. Now the guys at VMware have done a fantastic job of taking the x86 environment and virtualizing it. We still have, in my opinion, best-of-breed server virtualization. The benefit that we have is that it's in the hardware. That level of integration is the way we get near native performance out of our engines, even when they're virtualized and highly virtualized. I think the thing with virtualization that we need to be focusing on now is not just whether or not the processors are effectively utilized or how much work you can consolidate on the platform because that's a strength at Z. We can take 10, 20 cores worth of x86 and run it on a single engine on Z. And that's been a strength of our virtualization. But I think now with cloud and with all this dynamic provisioning and software-defined environments, I think the key to virtualization is in the management. So to have a really good, effective, standardized way to do virtualization management is really the key. And so when you talk about relative to x86, you've got an advantage because it's in the hardware and firmware. That's performance and utilization, in fact. Your virtualization tax is not as great. It's really minimal. It's de minimis. Yeah, like I said, we run near native speed. And VMware, you're right, has done a very good job. But I wanted to ask your opinion on something. So in 2009, I listened to Paul Moritz. He was at an investor financial analyst meeting. And he said, we are building a software mainframe. And I was taking notes and I went, that's interesting. Now they don't use that term anymore. They're marketing people. VMware's going to stop saying software mainframe. It's not, we don't want to market it that way. But what he meant was, it's all software in the world. That's the beginning of a Ritz. And he understands technology. So that really caught my attention. And I said, wow, okay, that's never goes down. Did you see that global Sysplex? I thought about that. It runs any workload, any app, highly virtualized. Has VMware in your opinion built a software mainframe? No. Tell me why. Well, I think the part of what makes a mainframe a mainframe is the economies of scale. As I said earlier, the thing actually runs better when you put more work on it. So when other competitive systems can drive utilizations to 80, 90, even 100% with consistent response times across all of the workloads, then maybe they'll have some of the mainframe characteristics. I think what he was referring to, which I happen to agree with, is this notion of software-defined environments. I mean, I think the point I made earlier, virtualization isn't just about having fast or utilized hardware anymore. It's about using virtual resources as the foundation for all of your operational environment. When you virtualize a system, it's dynamic. It can be programmed. You can grow it. You can shrink it. You can dynamically instantiate it. You can make it smarter. And these are the things. That's the holy grail. Yeah, this is what software brings. So if we can make hardware look more like software, right? Server storage and network. Holy grail. Holy grail. Holy grail. So I want to get your perspective on this. It did. We've talked all the time on theCUBE. The software mainframe by Maritz with great vision. 2010. Great vision. What happened next? It was like the... It stalled. No, it stalled. It was a Picasso that he painted. The Mona Lisa of the tech. Okay, beautiful. The problem was the market wasn't ready for you. All the stuff going on the stack, then they go to Pivotal. So they bring everything over to Pivotal. The couple. Nice little concept. But they're still working on the virtualization piece on the network layer. So there's still work to be done. So I think it's storage, by the way. Yeah. Right? I think the moonshot is software mainframe. And they're just not there yet. The industry. Yeah. So you guys have it. But see what I'm saying. Utilization is not the battleground anymore. Certainly for you. But when you look at the real utilization of a VMware environment. Yeah. They talk 20, 30, maybe 40%. Then they talk way over 50. It's no way, not even close. David Floyer knows this stuff. Certainly sub 30%. Yeah. So for the balance of the industry, it is still a water market. I don't mean to suggest that's not important. What I'm suggesting is. For you. Next. What's next. And what's next is to make use of virtualization as the foundation for all operational control of the environment. But aren't you doing that today? Yeah. We do a lot of that today. But I think we have focused on the mainframe on the traditional core value proposition of our virtualization being utilization and performance and scale. You'll see us do even more than we do today in the way of optimizing underlying resources based on the needs of the workload. That's another strength of ours. Is that we can assign service levels to the work and then have the operating system and the underlying hardware and virtualization layers optimized to the business importance of the work. So what's your take on Docker? Docker has this model and we just heard Nancy Pierce about the cloud, new division, all the IBM resources coming together and they're probably going to just jam just run like the wind. Now, you bring a different perspective in technology with the mainframe and you've been working under the hood. Share with the audience. What's the modern stuff that you've done that makes it state of the art, state of the art. Missouri runs workloads with all that stuff. What is it? Does Linux involve the Java? Pease out some of the highlights, the new shiny part of the engine that you've added onto this. Yeah, well, with this particular announcement for the first time, we've focused on core engine performance, again, delivering 40% more capacity, lots more cores, 10 terabytes of memory on this machine. So, I mean, we- Lots of speeds and feeds game, but let's get down dirty on this. Who does that help? Is it a big bank? Minutes matter, right? For some of these guys? Take, you know, with people wanting to put more data, more data in memory, right? If you give a terabyte of memory to DB2 running on this platform, right? And have it use that stuff for in memory, more in memory, you reduce IOs, you improve response time by 70% for those transactions. Right, and those are all core transactional and environments that are running, right? Those financial institutions, those banks, those insurance companies. That's hardcore users that you have on that, right? This is like big, and what's the alternative? Say the Z wasn't around. I had to go build out a distributed system, buy some boxes. Yeah, I mean, people, I think generally, you know, believe that in the absence of a mainframe, right, and the value proposition I think you get with the mainframe, that's all about scale out, right? You know? I heard some customers tell me off the record at the Z event, I won't say their names, but this is to say they're huge and they don't mind writing big, fat checks. The stakes are high. They said we've already bought three, not even looking at it. Site unseen. Site unseen, we got the beta, we're just like, and I go, so you're writing a blank check, is it R&D? It's cool, you got a good R&D, no, no, no, no, no. He said minutes matter, hundreds of millions of dollars matter on a minute window, minutes window. Is it anything you can squeeze performance? Well, it's not just that, it's availability, right? I mean, the ability to make sure that you have a platform if it's running core critical business that's always there, always on all the time, right? It's not going to provide resiliency or availability problems. That's key to a lot of our customers. Accessibility too is important. Accessibility. Yeah, but Z13's not changing my application availability, is it? No, well, improving it. I mean, we continue, like, yes, the technical corp of this is that, take our IO subsystem, right? Every release, including this machine, we make the subsystems that drive IO smarter and more autonomic, right? So we have hardware that can sense congestion in the fabric, congestion in the network, can route around failures, all transparently, right? Multi-padding that does transparent routing around congestion and failure with no impact to the application whatsoever, right? This is what we focus on. I see, okay, yeah, certainly you can measure that as application availability. I want to talk more about IO. You said you focused on compute performance. Yeah. Innovations in IO goes through the balance system is the key. Yeah. I remember when I was a young pup in this business, I lived inside of the systems and technology guides. I would just pour through that stuff. And I remember when IBM announced MBSXA, expanded storage, I said, wow, if IBM could persist that memory extension, it would be totally be a game changer. And we were a few decades ahead of our time, I guess, in terms of understanding what technology couldn't do. But now Flash comes into play, and you're starting to see the pendulum swing back that persistence at near memory speeds. So can you talk about Flash and where it fits? Yeah, I mean, we got a couple, there's a couple places we can talk about Flash, right? The traditional thought on Flash is, you build storage with, you build storage Flash in our storage subsystems. And of course, the latency and the performance is extraordinary, right? And so we're even looking at the possibility of synchronous I.O. and really exploiting the response times and the latency improvements that Flash can give you in the storage devices themselves. But the other emphasis for Z is internal Flash. We actually have the ability to put 6.4 terabytes worth of internal Flash in the system. And we use that for internal purposes, right? So in a traditional ZOS system now, you can completely eliminate all of the paging, right? Virtual memory paging to external disk, right? By using internal Flash. That gives performance advantage, it gives availability advantage, right? It's huge. So given the slow nature of spinning disk, you mentioned paging, how much emphasis of prior to Flash did you actually put on paging algorithms? Again, given the latency, and do you have to sort of rethink paging now with that consistent resource? Like I said, I mean, in the last generation machine is where we introduced this and one of the primary use cases was paging, right? And so the performance you get out of that internal Flash and the availability is extraordinary. But now what about when I'm running Linux? It's coming. Because I would think that that Linux open source industry didn't even worry about paging for a long time. I mean, I think there's paging of the guests, right? And then there's paging and memory over commitment and optimizations you can make on the virtual machines themselves, right? So that's our next step, right? Is to make use and really exploit internal Flash, right? For the hypervisor itself. It's one of the big benefits to scaling up a virtual environment is effective memory management, working set management, right? Over commitment of memory So essentially bypassing spinning disk and as well as the storage protocol? That's correct and it's all internal. And so it's essentially a memory extension. Yeah. So the atomic rights. That's the way we view it. That's the way we view it is a natural kind of high performance extension in the memory hierarchy. And it's an atomic right into that memory extension? Yeah. And you're doing that today? Yeah, we're doing that today on the last generation of machine EC12. We introduced the Flash for ZOS. It was a ZOS only environment. And are apps being rewritten to take advantage of that? No, no apps. Or new apps? Yeah, you know, a lot of what we do in the underlying middleware operating system hardware, I think another benefit to the mainframe is that we introduce this technology and wherever possible exploit it transparently to the application, right? So it's not that some of these capabilities aren't made available to the application, but in the real leverage point is all of a sudden, your operating system, your DB2, your web sphere, that stuff just runs faster and better, right? With no change to the app. We did that with networking, where we introduced, you know, you mentioned high performance computing before. InfiniBand brought us, you know, RDMA capabilities for networking. So we've introduced that now on standard converged ethernet, completely transparent to the application. So now any applications that are driving JDBC access with the DB2, for example, standard socket IP transparent to the app, getting huge performance gains because we slide this stuff underneath it and it's all transparent. All right, Jeff, we're getting the hook here. We got the keynotes going on. Thanks for coming. I think you really appreciate it. Bottom line for the folks out there, what the system Z platform all about. Bottom line and a buffer sticker for what Z is about these days. Yeah, I think that the positioning here is with Linux, right? With the advances in the hardware, it's focused on not only providing the traditional value proposition for the traditional workloads, but with Linux, with standardization, with best of read virtualization, with the openness and the standardization to plug into standard cloud environments, right? You take all of that value of economy scale, it's a great cloud platform, bringing analytics to the platform with the compute intensive stuff, right? Very important for us. 80% security is solid. We've got advances in our crypto stuff again in this. The crypto is a big deal, I think. In this machine. That's a big deal, right? Two X performance over the last two years. Inter-memory analytics. Big memory, right? All right, there it is. It's the big irons, the God box. It's all knowing it's more of the more work you give it the harder it pushes and the better performance, love that line. This is theCUBE, same here. The more interviews we do, the better we get. Sure, love it. We're bringing it out to you with the event coverage here and I'd be able to connect live in the last few days. We'll be right back with this short break. The first time on theCUBE was fun. We did it again. We did it again. I think what I've come to find, letting my second time on theCUBE is, I mean, it's just such a real time, high energy experience. It's very good because there's no filtering of questions. I was not prepped, other than saying, go and get up there. So it was quite good, it was hard on the experience. I think what you're gonna get is the real answer. You know, it's not scripted, it's authentic. It's, you know, really allows you to communicate quickly. You know, your point of view about who knows what they're gonna ask you. So I thought it was great. I mean, I didn't know what the questions were ahead of time. They asked some good ones. I think some ones that if it was an unbiased thing, I mean, a biased thing, I don't think we would have got. And I think that's what people want. They want those questions and it's hard for us sometimes to ask them unbiased because you're biased by nature. So it's great to get those questions and be able to answer them. Like I said, you know, I love the energy. I mean, these guys ask good questions and obviously not only them, it's the Twitter feeds coming in from questions from the audience. Sometimes it's a question nobody wants to ask, but they're thinking, so it's good. That's a great way to sort of, you know, answer those tough questions. It gave me an opportunity to hopefully share with the people watching, you know, some of why we're doing what we're doing. A lot of things from a trip around the world, but you can't always bring back customer data because many customers don't like it when their data moves around. If you're gonna do business globally, you need a cloud that can keep your data where it needs to be. Today there's a new way to work and it's made with IBM. Live from Las Vegas, Nevada, it's theCUBE at IBM Interconnect 2015. Brought to you by headline sponsor, IBM. Hey, welcome back everyone. We are live in Las Vegas. This is theCUBE, our flagship program. We go out to the event and extract the Sinclair noise. It's looking at angles. Proud to be here for a special event with IBM Interconnect in the Go Social Lounge where all the action's happening. Go to interconnectgo.com for the new social experience site powered by CrowdChat, CrowdChat platform, the VIP influencers. A great way to experience the show if you're not here live. Our next guest is Nancy Pearson. CMO of IBM Cloud, welcome back to theCUBE. Great to see you. Great to see you guys. Love chatting with you. You're dynamic, you're so awesome. Great to have you back and the cloud is super hot right now. It is so hot right now. This is dominating the show pretty much. I mean, there's a lot of stuff going on but this is a cloud show. It's all about under the hood and application speed, standing up stuff. What's your take? How do you feel? Are you happy with things here? Customer reaction? I feel terrific about this event. I really do. And as you know, this is the first one of the size. So we compressed three of IBM's previous conferences into one major conference and we made it the cloud and mobile conference. So yes, it's all about cloud. We've got some mobile in there as well but we're really actually covering the entire portfolio here. So it's been exciting and we actually got 45% of the attendees are new to any IBM conference. So that's kind of a really important number and we've seen some really positive feedback from our clients and from our business partners. They're saying that's the most exciting part about this event to them because they're having some new conversations. So that was one of our objectives. The other was to combine the content, really focus on cloud, make some major announcements around our hybrid cloud, capabilities and our strategy. And then also profile clients. This is about client success. A lot of client success and key partnerships. So the data doesn't lie, well you know we're data driven. And so I'm looking at the IBM community of interconnect, the three shows. Since you guys announced the three shows, we've been running full monitoring on our listening engine and over the past three months data, the top interest points are cloud, big data and IoT. And the other ones are IBM, IBM, obviously IBM centric but the three top are cloud, big data and IoT. Do you agree, is that the right sentiment? I mean IoT seems to be coming up in every conversation in applications, mobile, IoT cloud. It really is and when we talk about cloud it's really impossible to talk about cloud without talking about big data analytics or IoT or mobile and even social. And in fact we took a very different approach to this event from a general session perspective. We focused on client vignettes and so we have highly produced client vignettes for every general session. So it's not an IBM or up there talking with a bunch of PowerPoint charts about technology. It's, we bring to life a customer scenario and in many of these scenarios, they cover IoT plus mobile plus cloud in very meaningful ways, in an integrated approach. And I think that's another interesting thing about the way we're doing this particular event differently is we've had clients kind of railroaded into oh you're going to go to Pulse because you're interested in systems management and asset management. You're going to go to interconnect you're interested in web sphere and business process management. So bringing all of this content together cloud is really permeated all of these areas and then we get more clients because they understand it more from their perspective versus are going at it from an organization out perspective. Plus it's more integrated. So you're hearing the stories that are full end to end. Right. So talk about your keynote a little bit. Yeah, so well yesterday was general session kickoff and Robert LeBlanc did that with Airbus and Citi. I'm sure you probably went through. The city was unbelievable. The city was awesome. It was really great. Jerry did a great job and so did the city executive. So today this morning I did the keynote on business, cloud business applications. And we also- You made it to your keynote. I did make it to my keynote. It was questionable. And we had a couple of fits and starts. There were little technical difficulties but I just got up on stage and delivered anyway. And the key message was there. Our key message there was we featured a lot about business applications and we featured the IBM cloud marketplace. You know that's something that we announced last year. And now we have over 400 services in the cloud marketplace between IBM and third parties. And so we took a fun approach. I gave an overview of what's happening in terms of digital transformation, reinventing your business processes, how you need to do that with new services, your own capabilities as well as third party services and a strong development platform. But we did it with a vignette. So we had this story about the Stratus Cafe and we had Chef Jay Baer, who was the guy who was the commentator on the first day, come up, big chef's hat, a whole outfit. And he basically, he took them through a startup cafe and what would happen in terms of you needing to merchandise your cafe, hire talent, do one-to-one marketing all through the cloud marketplace and leveraging and demoing those services. People loved it. They thought it was really great. Did you just pop up restaurant? Yeah, just pop up restaurant idea, exactly. That's exactly what we did. Give you a little Shark Tank action. I'm sure it's coming in with their proposals. You know, that was one of my ideas for the conference. I was hell bent on getting Shark Tank here. And I think it's going to be really fun because we took some of the key entrepreneurs, the finalists, and it's one of my favorite shows. We're kissing live on theCUBE. Oh, I love that show. SharkCube. SharkCube, yeah. That's right. You could do some rebranding here. I like that. Yeah, there's a shark. I'm not more of a sheep, but thanks. Going back to the key theme of clouds. I mean, I'm going to ask the same question. Are you having a pinch me moment? Like Steve asked the same question. It was like, you guys announced it a year ago. I mean, this is not even a year. I know. So we were kind of like, it's in beta. We don't know how it's going to go. Remember that too? You know. You know, we were talking about 2,500 and that was a stretch number at the time. I'm sure Steve updated you on the number. It's 250,000. Yeah, yes, massive. So, and now, you know, what we're also saying, a very important part of the Bluemix momentum and market penetration is some of these key relationships like Bluemix and, you know, Capgemini, CFC, some of the new announcements that we've made here, tech Mahondra. So large system integrators that are really integrating and standardizing on Bluemix. That's the kind of momentum a year later that's pretty significant because those are large enterprises. And certainly we have a lot of individual developers on the platform as well. Well, I think the big shift that we've noticed, Nancy, is that previously, a couple years ago, it was sort of everybody wants hybrid. There's a lot of concerns about the public cloud, the people are nervous, blah, blah, blah. But we don't have a solution. Now, all of a sudden, you really, by the way, we're saying before it was true, now you've got a solution. And so what's the customer reaction been to that? The customer reaction has been very positive. You know, whether it's our hybrid cloud announcements around visibility and control and security. Or we made a number of developer productivity announcements. I'm sure Steve talked to you about Bluemix Local. But in addition, the secure gateway capabilities and API harmony. If you think about this, we're making it easier for developers to develop that innovative app and do it in a way that's secure and able to leverage the requirements around flexibility in terms of moving your data to the application, moving the application to the data, getting decision making closer to the client through these applications. So the feedback has been very positive. I had dinner with Gartner last night. And you know, we've got a number of things that are exciting and really help accelerate our client's success with cloud. So it's not about just bringing out ancillary, whiz-bang technology. It's about understanding where our clients are, listening to them and making it easier for them. There's not a question about, am I going to go to cloud? Whether I need cloud technology. It's where are you and your journey and how can we help you accelerate it? Actually, talk about your journey. You got a lot of great feedback on Twitter and your keynote startup, the journey of the startup. But one comment here I wanted to get your take on. Oh, besides best shoes of InterConnect goes to Nancy Pearson. Oh, great. You got a tweet there. When you're on stage, you're looking at it. Wait a minute, are my shoes trending? That's all I'm talking about. The day, that's what the crowd's saying. The journey of the startup, the stage, discussing the transmission of the startup, that was good positive. That the comment of disruptor or disrupted. What do you mean by that? What is that concept? You're either on the side of being a winner or loser. Well, it's a decision that we're saying the audience really needs to make that decision. So, if you look at the nexus of forces and the advent of cloud, mobile, social, big data and analytics, you have other businesses like the non-traditional businesses like Fitbit and Uber coming into the market. They're leapfrogging technology, the technology legacy challenges of large enterprise, but they're also innovating on these applications that can disrupt your business. And it's not technology disruptor either. It's a business model disruptor. It's a business model disruptor because they're breaking the glass. It's enabled by technology. It's enabled by technology. Well, then they got to go back and get the tech because once they break through, they got critical mass. Right. This is the new business model, the new way to work. That's the new way to work. Exactly. The new way to start up. Yeah, so I told them a story this morning of, I was with a large aeronautics or aerospace customer that we all had been flying on their airplanes. And their client rep asked me to come in and talk to them about cloud. So I was telling them about how cloud's about innovation and they're like, well, we're trying to figure out what applications we should move. And I said, it's not, you can't just think of it that way. That's a very infrastructure data center oriented way of looking at it. You need to look at it as to how can you leverage cloud technology to basically increase new revenue streams around your core competency. And they said, aren't you worried about competition because the airline industry is very competitive. And they said, well, not really. We have this great app and we're using this great app. And I said, well, are you thinking about how to create kind of augmented solutions or services around the core competency of airline travel? And I said, an example would be if you looked at something like Uber in New York City, Uber not only has provided transportation in a totally different way and in an expedient way, but they also did some testing around porting nurses to people's houses to do flu shots during that spike in that time of the year. That's not within their core competency. Well, it is because their core competency is transportation, but they're including other capabilities and experimenting on other delivery methods, leveraging their infrastructure. So I said to the airline, you could be creating services around a car service. So when people get off the plane, it's your car service. You can be coordinating multiple services that are adjacencies to airline travel. And then people will flock to you because there's one place to get through one application. I can get my car, I can get my airline tickets, but it's your service, not some travelosity is doing it and disrupting you. Well, this is the interesting thing is you can, you're now seeing organizations traverse horizontally across different industries. These adjacencies that we're talking about enabled by technology, clouds sort of the substrate. Data is one of those transport mechanisms. Social information is one of them. You're seeing companies, Apple gets into financial services. It's going to Amazons, getting into entertainment. I mean, it's insane. Well, the barriers to entry in terms of expanding horizontally are much lower with cloud and big data and analytics and social because you're transforming your business process. So it's interesting because everybody looks for disruption in technology waves and says, oh yeah, this next wave is going to kill all the old guys. That's not happening. What happens is the old guys actually have a ton of cash. They got creamed before and those guys who didn't go out of business realized that the people at the helm realized, well, we can do this too. Right, right. So either be disrupted by somebody new coming in and taking your core competency and doing it better. That's number one. Or you innovate internally and disrupt. So it's interesting. Disrupt your industry. So what can clients learn from IBM? Because you guys are one of the largest, oldest companies in the world. You are both now, you've got a $25 billion business which is this disruptor business. Right. You've got almost a $75 billion business that is people are trying to disrupt. So you're in the middle of that. Right. And you're navigating it. We are and we're very upfront and back to my keynote. I was very upfront with the audience saying, we're going through this digital transformation as well. We're changing our business model. We're introduced to the cloud marketplace. And yes, it's only a year old and we know we need to do more with that but it's opening up a channel. That's a consumption strategy. People want to consume that way. Why wouldn't you go into business all right? That's right. They want to self discover. 70% of clients make decisions before they ever even contact you in your business. And where are they making those decisions? They're making them online. They're doing the comparisons themselves. You might as well serve them a fertile environment like a laboratory or a library. You guys are going for it. I got to say, IBM, you guys are going for it. The way you do your social business outreach, you've always been great for the cube, openness. Now with cloud, you've got soft layer in there. You got some meat on the bone. Blue mix is taking off. There's a rising tide. And all the top engineering- Right, we expanded software. We've expanded software around the world. And all the engineers are working on it. So I want to talk about two things. Internal action in terms of building value fast into the platform from all the resources around IBM, what's going on there and how do you market against Amazon? They are winning the gold standard in public cloud. They're viewed as winning the integrated stack but now blue mix, red-ish, you got node. I saw an Adam Gunther, he's like, Adam's like, he's like, wait, he doesn't kick in some ass. Not fast enough, but go faster. So I'm sure they're all like, hey, we want to go faster. So how do you market against Amazon? Given now you got the soft layer, now you get the blue mix, you got open stack. And what's going on internally for the resources? Well, from a resource perspective, you know we created the cloud unit. So we pulled a lot of those development resources together, now very much all focused in the same direction. So we're going to be able to go much faster this year. We've taken the power of IBM and put it right in the sweet spot of where Jenny wants us to focus, which is on cloud. And again, cloud brings in all the social data. So that's basically like, stop everyone says time out and then time out resources, bang. That's right. That's all cloud. It's all cloud. Yeah, nice. And again, the marketing teams all came together, the development teams all came together. So there's no excuse, right? We've got to continue to go more quickly. Now your point about like, how do we market against Amazon? The reality is Amazon is an infrastructure as a service. It's a public cloud, but it's only the infrastructure component. So when you talk about what we have, well, and you see, we see some blurring between infrastructure and platform. But so we've got software, we've got Bluemix and we've got a task portfolio that's pretty robust and we're going to continue to invest there. Some clients don't want to take a piece over here, a piece over there and a piece over there. Because by the way, they're in large enterprise. They're already pretty fragmented as it is. And their biggest fear is visibility control over hybrid cloud environments. So they're either hugging their infrastructure behind the firewall, right? And very nervous about the public cloud or they've chosen the public cloud and they realize they're expanding and they've got to tie back into legacy data or deal with the data sovereignty problem. I think that makes a lot of sense. Yes, that makes a lot of sense. So our announcements, we're really focused on, we're able to bring visibility control to hybrid cloud environments, right? And we have capabilities at each of those layers. We're integrating those capabilities across layers more. And so when you think about it, if you're a growing business, you're going to be able to come to one place and get an open architecture. And we're offering third-party services as well. Open architecture. Open architecture, open cloud. You guys are committed to open architecture. That's right. So you've got infrastructure as a service plus, that's kind of Amazon. You got SaaS minus, which is kind of like Salesforce. All right, to me, you described it. The best solution is a layer, stack of infrastructure as a service, platform as a service and software as a service that's open and integrated. That are integrated, exactly. Okay, so the IAS piece coming together nicely. The PAS piece very clearly coming together nicely. What about the SaaS? Can you talk about that a little bit? You've purchased so many SaaS companies. That's a hard thing to bring together. Well, that's what my keynote was about. It was really on the SaaS applications, the marketing applications specifically, workforce and talent application and then a strategy application. And by the way, most of those SaaS services are leveraging Watson. Where else can that be? Nobody else has that technology. So it was amazing to show the audience how embedding Watson technology in whether you're sourcing for the best talent in the city that you're looking to start your pop-up shop in or you have a growing business and you're trying to deploy marketing by leveraging analytics that are pulled in through not only Watson, but also some of the other capabilities that we have, statistical capabilities that we have. So that's a big differentiator. Now, do we have that across everything? No, but we have that across some very focused areas that are growing quite rapidly. Well, not a lot of companies have that. They don't have that. A handful, right? They don't have that. We have not even installed these customers base. You're installed base, they're from data centers. Yeah. So you can't just say, oh, we're going to compute Amazon head on, but they're coming into the enterprise. So you got to kind of put the heat shield up a little bit. Say, whoa, whoa, whoa, we got to address this concern of economics, a new way to do business. Well, they made a lot of noise two years ago. Who did? Amazon. Hey, we're coming to the enterprise. And I think they were somewhat naive. I think they were very naive about it. Well, it's not easy, right? It's the enterprise. We know what it's not easy. Trusty. I've seen startups go out of business and the enterprise is easy. So Amazon, again, then big startup. Yeah. Internet of Things. Why is that so hot? Big data I can see in cloud and big data work well together because analytics feeds the apps, clouds the engine. Internet of Things. Is that kind of just another word for mobile or edge of the network? I don't really see it that way. You know, mobile is about the mobile experience through a mobile app. Internet of Things is about integrating sensors and data structured on structured data through all kinds of devices, right? It could be your refrigerator. It could be from a car, right? It could be from GPS, from a boat. We had Bosch on yesterday, right? Right, you'll see the dishwasher. Yeah. Nigel was on. The silver hook, right? Yeah, that's such an exciting story. That's a great example, by the way, right? In terms of not being able to be able to demonstrate a whole sport and get people engaged, a lot of what we're talking about is about engagement. So their business, they wanted to engage and they wanted to share data and information across the human that was driving the boat as well as the support team behind the seats and the fans. We interviewed with Cuba earlier, by the way. Did you? That's a great story. Great guys, too, dynamic, great interview. He's like, thanks for Bluemix. No, literally, Bluemix, Watson, Cloud, real time. They fundamentally couldn't do what they're doing now before without Bluemix. But that's about instrumentation. It is. On the boat, leveraging it in real time to the Cloud back with Bluemix. That's right. And presenting it in a way that can engage a massive audience, that's, you know, could be two, three miles away. What's the big confusion of Internet of Things? People, as it, some, you know, GE calls it industrial internet. That's got their flavor. It's just because the Internet of Everything or what? I think you're seeing just some of the same, the terminology's not the same because I have seen the Internet of Things grow over the last year tremendously. And just in terms of people even talking about it. So I just think it's, you're at the earlier stages of it. It's the same way people talked about Cloud. It's the same way people talked about mobile. Now they're much more comfortable and understanding. Same thing. But so it's, I think it's more of a maturity thing in terms of people really understanding and getting it. Exactly, but it's here. It's not coming someday soon. And it's a developer hook, too. I mean, developers are home. It's very much a developer hook. You know, how do you create those applications, right? Okay, so what's next? What's the big focus this year for you guys? We asked this last year and you just said, we're going to do our best we can. We're going to get out there and create a share of the developers and learn and delve to community. What's your marketing philosophy this year? But you got a lot going on, right? You got Softlayer, you got BlueMix, you got the tsunami of growth with data and cloud. Right, yeah. What's your plans? Clearly we're going to continue to build out Softlayer and BlueMix and our hybrid cloud capabilities for visibility and control. Integrating across those elements. Again, that's not a job that's done, right? The more we can integrate, the more beneficial value we'll be providing to our clients. And then in addition to that, some of these key partnerships. You saw us partner with SAP. You saw us partner with AT&T with Microsoft. You know, we'll continue to have some key partnerships because they're bringing us into their industry or into their business. Top of our cloud. So we'll continue to do that. And then there'll be some surprises. You know, we'll get into some things that really change the game. That's what our goal. And what's the big thing that's going to come from this IBM focus of the cloud division and all these resources? Speed and agility and innovation. Awesome. Nancy Pearson, here inside theCUBE, we're looking forward to it. Obviously when IBM starts putting their engine together, they got a lot of resources. So we're looking forward to watching it, being part of it, covering it. This is theCUBE bringing you all the signal here at IBM Interconnect. I'm John Furrier, Dave Lund. We'll be right back with our next guest after this short break. Come on theCUBE, baby. Rock and roll. Five or six times I've been on theCUBE now. Right, you know, at first, the guys are just fun to work with. Pat, welcome back. Hey, always a pleasure to be in theCUBE. Hey, I'm about to go. A three-time veteran of being on theCUBE. Hope many, many more. Chad Sackets, Chad, welcome to theCUBE. Dave, John, it's great to be here, man. I keep coming back because great, insightful questions from John and from Dave. What face-melting action have you seen here at the event? And I know there's a lot of it. It's a great vehicle to communicate with a broad audience, a lot of folks watch. Great to have you back. Good job. All right, Craig Nunez, VP of marketing at HPStore. Thanks very much for coming on theCUBE. When people mention theCUBE, they're like, oh my God, I saw you on theCUBE. And they're all excited about it. It's an experience. It's not just information. They experience kind of what's going on there. It's like real time. It's like they were there. That was like going to the gym. A lot of pleasure. Legendary IBMer, CEO of Symantec, and now CEO of Virtual Instrument. Great to have you on theCUBE. So for theCUBE to be here at a conference like this, it's got 15, 20,000 people and sharing that live around the world, that's consistent with the way the world is evolving. So it's a wonderful medium, a wonderful medium. John and Dave are amazing. I don't know how they keep everything in their heads the way they do. It's a great format and we're obviously seeing that this notion of real time coverage and a real conversation is what's driving us as a company. And I said very seriously when the questions and the comments that we hear from them and from all the different guests here directly turn into the products that we build. Yeah, that was my first CUBE and I really enjoyed it. There was the rapid fire of questions. It made me think on my feet, but they were very thought provoking and really got me going on analyzing the greatness of Rista and the greatness of theCUBE as well. John and Dave, the reason their approach works, they're not just guys reading down the question list, right? Okay, next one, next one. It's a conversation, right? And they're going to challenge you. They're not going to settle for the marketing hype and the BS and all that stuff that the industry throws around. Come on, you got to hit them up on the HP question. A lot's changing HP, some turmoil at the top, obviously controversy. They're going to hold you down to the real facts, compare you to the choices our users have and have you respond to it on the spot, right? Thinking real time in, so that's real talk, not just kind of a paper interview. I'm John Furrier with SiliconMango.com and I'm here with Dave Vellante. We are inside theCUBE. theCUBE is our flagship telecast. We go out to the events, extract all the signal from the noise and share that with you and great guest lineups. We've got CEOs, CTOs with all the top executives, bloggers, thought leaders, venture capitalists. I'm absolutely stunned because I know it demands 100% attention for these guys to be up there talking to people about a wide variety of technology topics. I can't believe these guys can make it so many days in a row. So I'm wondering how long they're going to go home and pass out for after this. But it was incredible. They just do a fantastic job. If you're not having a conversation, then you're very scripted and if you're scripted then you might be getting the right words but you're often not getting the whole meaning and the whole depth of the conversation to the fullest extent. I think this is a heck of a lot more authentic. It comes straight from the heart and the brain. Sometimes you might forget to make some of your points if you're not a real-time thinker but I think both from a participation and from a consuming point of view, it's much more real. Chris holds no punches. So I've been on theCUBE a number of times and I think the interesting thing about being in that particular venue, in that format, they introduced me as, hey, Hoff doesn't pull punches. Well, they don't either, right? They ask really difficult, uncomfortable questions sometimes and you can tell people and the positions and where they are in terms of what they're able or desires to speak of. You can tell where they are on that borderline between kind of just, you know, honestly answering questions versus kind of glossing over them. And I enjoy being there because I don't say I'm outspoken but I honestly answer questions with the full intent of being able to be respectful to the people that I bring solutions to, right? If I whitewash this crap, you're going to turn me off every single time you see me on any venue, let alone theCUBE. So I like being asked tough questions. I like answering them honestly and that's a fantastic venue for doing it. Otherwise you get on panels and you got a bunch of talk and hands blabbering at each other and it's worthless. Yeah, this was my first time on theCUBE and I really got a chance to get to know John and Dave and they're really amazing guys. I mean, the knowledge that they come with, the topics that they could talk about, the people that they know and just bringing it all together in this live broadcasting forum, it's just fantastic. I mean, I just love it. I feel like a groupie or something, you know? In this environment, you know, the social environment, the real-time environment where we're in, right? People look through the marketing fluff very quickly and if it's not authentic, right? You know, they don't trust it anymore. So in this environment, I think it's a growing trend. Yeah. This is a burrito made with chocolate, soybeans and apricots. What kind of chef comes up with this? A chef working with IBM Watson on the cloud. Ingredients are just data. Watson turns big data into new ideas and not just for food. Watson is working with doctors and bankers to help transform their industries. Today, there's a new way to work and it's made with IBM. This is a live mobile studio. You bring it to events and we say we extract the signal from the noise. What we do is we get the absolute best guests that are at those events, we bring them inside the cube and we talk to them, we have a conversation. I think the difference with the cube is that the interviewers are active participants in big data. So it's less about trying to explain what big data is and more about relating what's going on. So we're a big data driven organization. We have a data science team that allows us to see not only what's trending broadly with the public but what's trending in very specific areas in our specialty in tech. That allows us to vector our analysis and relevance from our research and journalist team into everything that we do as a media company. We really wanna make it fun, exciting but more importantly, extract the data from the guests and extract that metadata and share it with the world so people can use that information to better themselves, better their companies, more importantly, connect with other people to do more business, to define more about the technology and for us, this is the future. I do a lot of these types of interviews. I spend a lot of time with the press and cube's a lot of fun. It's ESPN for tech. I think tech's evolved to the point where people wanna understand the personalities behind the technology, which probably wasn't that interesting 20 years ago and I think they made a lot more entertaining, a lot more interesting as well as, you know, putting some technical meat out of the box as well. The value of an independent news organization at an event is that it allows our audience to have a perspective that's balanced, that it's not just, you know, the vendors talking to them, it's the community. It's analysts, it's technologists, it's customers, practitioners. So they get a full perspective that's unfiltered. The benefit of the cube is a place for conversation with people to connect with each other and to learn about things and it's a revolution in media. We look at the technology and the people behind it as tech athletes, those are the folks making the companies, making the technology, really creating the new value in this modern era and it's fun, it's exciting and more importantly, it's very social. These days, with social media, people looking to not just read articles, which are great and obviously SiliconANGLE does a lot of that as well, but being able to see high definition video, very intimate interviews with entrepreneurs and operators, innovators in the industry, I think is really important. So the job you do in getting this out in a very timely way, I think is really important. You always know that your view is right until you hear a different perspective. So you're always interested and give me some neutral perspective, help me see it from a different light, right? And maybe ask a hard question or two that I might not have considered. I think on that sense, right, that independent voice that's always ability to have sort of independent, audited sort of perspective right over the world, it's always just good. The Cube has been called the ESPN of tech and really our vision is to cover every event that's out there. We really truly want to be a global organization that is at every event, extracting the signal from the noise, being on the ground, giving our audience a sense of what's happening at that event, but also providing analysis and insight worldwide, literally for every event that's out there. You know, I love it. I was actually telling John and Dave, every time I come back to the Cube, you guys have new toys, new cameras, everything's getting bigger. So having been on it for several years, almost from the very beginning, it's always great to be back and you guys do an amazing job, so it's wonderful. It's about connecting with people and that really is what it's all about. Having the conversations in a very social, collaborative way, and that's what makes it so exciting and people are watching. It was my first time on the Cube, it was fun. We did it again. Yeah, we did it again. Yeah, I think what I've come to find, letting my second time on the Cube is, I mean, it's just such a real-time, high-energy experience. It's very good because, as Wilfried Ringhoff questioned, I was not proud other than saying go and get up there. So it was quite good, it was part of the experience. I think what you're gonna get is the real answer. You know, it's not scripted, it's authentic, it really allows you to communicate quickly, you know, your point of view about who knows what they're gonna ask you. So I thought it was great. I mean, I didn't know what the questions were ahead of time. They asked some good ones. I think some ones that if it was.