 on the ground. Presented by theCUBE, here's your host, John Furrier. Hello everyone, I'm John Furrier, the founder of SiliconANGLE, co-host of theCUBE. We are here on the ground in San Francisco at the Dell IoT event. I'm here with Andy Rose, general manager of Dell's IoT practice. We had all the influencers. Welcome to on the ground. Thank you, yeah, great to be here. So special event, the 1510 is a special event. We had a lot of the top influencer press and analysts here, where it's an intimate gathering of thought leaders to just talk about the big trends in IoT, Internet of Things, industrial internet, whatever you want to call it. It's a transformational technology. Obviously we're bullish on it, but there's some realities. There's the sizzle and the steak, as we say. So share with us your view on the IoT industry. It's certainly transformational, but what do you see in the market? Yeah, great. I mean, the first thing I'll say is IoT is not one thing. So there's this sort of misconception that there's an IoT and it's one thing and CIOs or CEOs can go out and buy something. I'm gonna buy me some IoT. It's really a set of use cases driven by a lot of emerging new technology or by technologies getting cheaper. So if you look at a quick definition, it's how do I take things instead of people to create data and then tie that back into data centers? That's what it's all about. But then you apply these use cases to it. So how do I have a fleet of trucks or transport? And how do I make them all fuel efficient? Or how do I ensure my drivers are safer than they were before? Or if I'm doing smart buildings, how do I get my air conditioning to speak to my fire suppression that speaks to my lighting so that people in the building are safer and more comfortable or drive more, they can drive more attributes and safety and comfort in that building. So it's not one thing, but it's really been driven by silicon getting much cheaper, the sensors getting much cheaper, and then network connectivity getting better, and then huge amounts of data that we can really analyze these days. Andy, one of the things we're seeing and we're hearing is confusion. What is IoT? But the reality is consumers have iPhones, the eye watches out there, wearables, AI, virtual reality, gaming culture. There's a whole shift going on around the fact that people are more aware of things that are connected to the internet and or computers. But all the trends here in the country about physical things, airplanes, apartments, is it an industrial thing? Is it a physical thing connecting there? Is this a new transformation? All the above. What is IoT? Well, it's definitely not new. So it's gone through a couple of name changes. If you go speak to people that are running factory lines, they've called it machine to machine for many, many years. So if I have a factory line, how do I ensure that each process is instrumented and can do that? I think the big, big difference now is, one is awareness. So people are aware of these consumerist things. Everyone has a nest, everyone has a Fitbit. They know that it's connected to the internet and then there's a cloud somewhere in a webpage they can access that data. Well, but the industrial side, there's some huge, huge savings. So we had GE here with Predix as a platform, one of our partners and they talked about how airplane engines now create all of this data and if you fly an airplane across the desert, it has a different maintenance schedule than if you fly it across the United States with lots of clean air. And so the IoT there is about, how do you take all of that data real-time so to analyze how the engine of the airplane is performing at a certain given time and then make changes to the plane, might tell the pilot slow down or speed up or go to a different altitude. So I like to think about IoT as a set of examples and customer use cases versus anything else. So a lot of people don't understand it so there's obviously some hype going on for the things you mentioned, a lot of value created, the edge of the network or in the data. But give an example in your mind and with customers that you might have or your anecdotal experiences of what big data signifies but more importantly the impact to your customers and their customers. Yeah, I'm going to use a really sort of bizarre example here and we call it the internet of cows. And so we're working with a farm in India and it literally is putting sensors on cows and it's figuring out where the cows walk around in the fields that they have, overlaying that with satellite imagery to see where the grass, the rich grass is in the field and then analyzing milk yields for each cow. And so for that specific customer what they can then do is if a cow has a lower milk yield they can actually push the cow into the right place of the field and figure out where it can eat better grass. The good grass. The good grass and get a better milk yield. So what does that do? Well, the farm has more milk at a lower cost and then consumers can get that at a lower cost as well. So it's just another great example of that IOT is very different than Nest, right? You can have your apartment with special heating or cooling. Well the internet of things is connecting everything to the guy that's really about being connected with devices, Nest, your thermostat, to cows, to industrial machinery or data centers, awesome stuff. Amy, talk about what you guys are doing at Dell and what are you guys, because customers are obviously in discovery mode, they're putting it into practice. The good smart customers are actually taking those baby steps, in some cases large leaps. What are you guys at Dell offering customers? Sure, so at the end of the day it's all about data. So all of these examples about gathering data, analyzing data and then doing something with the data and Dell is a company that provides IT infrastructure to allow you to gather data and analyze data. So we're doing a number of things. One is we have what's called edge gateways. How do you get all of this data out of the things? How do you process it very, very close to where the data is created? So they don't have to ship it all back into a cloud or a data center, somewhat like a spam filter to the cloud in an IOT setting. So we create those gateways and then you need lots of service storage and data analytics tools at the back end to analyze that data and Dell also provides that infrastructure. And then we partner with people like GE, with Honeywell, with Lucid who's here who's a building management company. They have a building operating system, so to speak. And then we bundle their software with our hardware and we provide solutions to those customers. So we're all about the IT infrastructure to make all of this work. And do professional services involve in that? Obviously there's gotta be some consulting services kind of cradle to grave or cross the bridge with Dell. You guys have that kind of offering? Yeah, we do. We have Dell services, so we do that. But we don't do it exclusively. There's also a lot of what I call domain expertise here is that you have to understand buildings to create smarter buildings. So we'll work with other system integrators and other software vendors who have that specific use case domain. So GE is just a great example of that. They understand jet engines. We don't understand jet engines. So we'll work with GE, we'll partner, we'll team with them, and then we'll take that direct to the end consumer whether that's an airline or someone else. Final question, from a customer standpoint, do they have to be in the cloud to take advantage of IoT or can they just be on-prem or have a hybrid approach? It's always a hybrid approach. And that's why it really depends on each of the customer's own use case and their experience. And then the other thing I'd say is, you know, there's a lot of customers that are just driving efficiencies out of this. So I have lower fuel bills. Others are looking at brand new business models. I'll tell you a great one that we can sort of end on here. You know, we're working with an elevator company and they used to sell elevators. I'll give you an elevator and you'd appreciate that asset over 30 years. And now they're looking in the future as a new business model is, how can I actually charge people to ride the elevator per person per floor? So just a radically new business model. And that's what makes this so exciting is, companies that were one thing yesterday might even transform their whole business model over the next couple of years as a consequence of this revolution or evolution of IoT. Any thanks so much. Transformation in IoT. Andy Rose, general manager of the IoT Group at Dell. Again, IoT is a big future trend. It's a mega trend. It is a disruptive enabler. Early days, taking those steps. Thanks so much. This is theCUBE on the ground. Thanks for watching. Thanks.