 The Cube at EMC World 2014 is brought to you by EMC. Redefine VCE, innovating the world's first converged infrastructure solution for private cloud computing. Brocade, say goodbye to the status quo and hello to Brocade. Hello everyone, we're back here live in Las Vegas for EMC World 2014. I'm John Furrier, the founder of SiliconANGLE. This is theCUBE, our flagship program. We go out to the events, extract the civil noise. I'm joined by my co-host Dave Vellante back here at EMC World for our fifth year. I'm excited to have Tom Roeloff, who's been on so many times in all five years. Welcome back to theCUBE, senior vice president. So senior vice president, global services for EMC. How are you doing? Doing great John, doing great. Nice to see you both. Good to see you John. You're an esteemed Cube alumni now that we have over 3,000 Cube alumni. But you're up on the A-list. You run a big part of EMC's business. The services angle is obviously still very relevant. And now with all the messaging, we hear from Joe Tucci on the future. Platform three, always talks about waves. Now we're platforms. But really showing the disruption that's happening. And obviously Goulding going into detail. Million dollar guarantee. Tons of competition on the product side. But the game is still the same with the customers. So disruption is causing change. What is your take on this change right now? And why is this year's EMC World different than others? It's a very interesting time in IT John. I think there's really CIOs and IT organizations are seeing the opportunity to really for the first time be a part of the revenue streams of the business. You heard Joe, software defined enterprise, right? Every company is going to be software defined. The IT organization has a chance to not just be a cost center in the back office, but be a part of how we go to market. Be a part of how we make money in the organization. At the same time, the bar is being raised on what IT is supposed to do for the business at an incredible rate. And so I think there's really a question for IT. How do you step up? How do you become part of the business and enable the business? And at the same time, become much easier to work with than you have in the past. I want to ask you a question about Joe Tucci's comment. He said, enterprise is becoming more software defined what you just said. And it's an opportunity to go on the offensive. If you don't go on the offensive, you can become irrelevant. And basically he said, he didn't say die, but he had another more politically correct term. But I'll say you will kind of wither away. Yeah, yeah, yeah. So what is that mean? Okay, what is going on the offense mean? Yeah, you know, so what is the future revenue stream that Joe's talking about? He's talking about a software defined enterprise, but it's enabled by information, enabled by data. Who are the stewards of the data? The IT organization should be, right? So we should understand that information. We should understand its value to our customers. It's value to the products that we build. And we ought to be really good stewards of that information. So we ought to be able to manage that information efficiently and unleash it into the go-to-market organizations that is in every company today. That's what the struggle is. I think we got to get to the point where we stop worrying about the technology, you know, the T in IT. We start worrying about the information and we unleash that information into the go-to-market of every one of our enterprises. That's, I think we're part of what we're trying to do. So Tom, you, John and I have talked for now for five years in theCUBE about this topic, which is really IT is a cost center versus IT is a value producer. How has the role of the CIO changed in the last five years? Are we finally at that point where the CIO can really lead a business discussion? In some organizations, Dave, in some organizations, right? I think that the move to IT as a service has really given an opportunity for the CIO to start saying, hey, I'm not just a project office really dealing with technology. I provide a service to you as an enterprise and I want to be at that table and let's talk about what are the services that you need me to go create in IT? And so I think CIOs that are taking that on are starting to say, what service do you need? What kind of data services do you want from me? What kind of infrastructure services do you need from me? What kind of application services do you need from me? And by the way, which of those should I be creating on myself and which of those should I be procuring from somewhere else? And I think the really the most advanced CIOs are saying, I'm not just a provider of technology or internal services, I'm part of helping the organization think about the entire IT landscape and how I can broker services. Yeah, so when we've done research in the Wikibon community about companies moving to IT as a service, the so-called IT transformation, they tell us that the hardest part is that whole the old business alignment discussion, understanding what the business needs and then delivering on it. So today they're delivering sets of applications or maybe they're even delivering servers and storage in some cases. So is the near to midterm future, here's your service catalog, I'm developing these services, here's a brochure, I'm going to market those services to you. I mean, are IT people going to become better salespeople or should they become better salespeople? They're getting there, they're getting there, right? So I think we're going from technology silos and technology projects to a service catalog and that's a good step. Within that service catalog, we're starting with very simple services, server provisioning, storage provisioning, infrastructure as a service kinds of things. Those are frankly baby steps, that's not what the business wants, right? What the business wants is, go give me email as a service, go give me test and dev as a service, go give me ERP as a service. Those are the kinds of services that the business really wants. But I think that service catalog is the right way to think about how I'm connecting to the business. I may start with basic infrastructure services, but let's start expanding, let's get into a conversation with the business about what do you need? So that the IT conversation goes from being, here's what I have and here's what my supply is, I'm going to push my supply at you to a conversation with the business that says, what do you need? And let's work backwards from the business's demand into a service catalog that is more demand focused rather than supply focused, I think that's the step. So how does this take shape in a way that I don't have to throw out all the assets on my book? Yeah, I think there is a lot of technology there today, but we can abstract that technology in new ways right now, right? We don't need, we can allow the existing investments that we've made to roll off of their life cycle to go through the depreciation cycle. We can abstract that with all kinds of interesting new technologies. I mean, VMware showed us the way to do that on the server side. We're starting to see Vipers doing that on the storage side. Nice Ciro over at VMware is starting to do that on the network side. VCAC at the management and orchestration level or OpenStack are starting to do that at the level of all of the data center. So I think those kinds of software products protect the investments we have today and really help us build a bridge into that third platform. Tom, there's a question coming in on the crowd chat from the wild. Does the cloud, public cloud reboot IT? I mean, we're hearing a lot of Amazon. You don't usually hear this from EMC. Amazon is being mentioned in the keynote. Reinvent is their slogan. It's redefined. Does the public cloud reboot IT? Has it rebooted? Has it rebooted at EMC? I think the public cloud is raising the bar on internal IT in an amazing way. And I think it's super healthy for those clients, for those IT departments that are recognizing and embracing it, right? If you burry your head in the sand and say, hey, the public cloud, my stuff will never move there. Man, I mean, we do a lot of work for clients right now. We'll just do a shadow IT assessment. We'll just tell them how much public cloud do they have that's not being run by their IT department. And it's an astounding number in most enterprises. So the bar's gone way up because of what the public cloud is doing. And I think, frankly, it's doing it to EMC, right? I mean, so we talk about a hybrid cloud future. We talk about private and public cloud and how do we embrace that? And even my story is, let's go be the broker of workloads, not just the provider of the internal. So Dave and I, you know, love to commentate and speculate and throw some hate makers out there. We always love saying shadow IT is R&D for IT. Because it's forcing, in the past it's forced, it's always been like, okay, shadow IT, evil, don't ask, don't tell policy. But now it's kind of come out of the closet as, okay, no one really got hurt there. I mean, you know, but it's not something we want to legitimize per se, but accelerates this IT brokering phase where, hey, you can move faster. Yes. We saw Facebook announced at their developer conference that they're moving their slogan from, we break stuff, move fast and break stuff to move fast and have stable infrastructure. That's now the DevOps credo. So as shadow IT, what do you see IT embracing that now and putting it into practice? And can you share some color around that? Yeah, so shadow IT used to be the server under the, you know, business guy's desk, right? That's not the kind of shadow IT we're talking about anymore. Now we're talking about the business person swiping his credit card and setting up an Amazon app dev environment or a Microsoft app dev environment. And launching a business around it. And launching exactly, and creating a new revenue stream around it, right? So I think that's the shadow IT that we're starting to talk about. And I think a CIO has two things it can do about, can do that. You can say, that's a terrible idea. Let me just go show you all the things that are going to go wrong with that. And there are some CIOs, frankly, that take that approach. And there certainly are issues around information risk. I mean, target CEO stepped down today because of the information breach of target, you know, a few months ago, basically, right? So there are some very real issues there. But I would say of the reaction of, I'm going to decide that that's a terrible idea, too, I'm going to embrace that. It's the CIOs that are embracing that bringing that shadow IT out of the shadows and kind of making it a part of the IT. If you're going to go on offense, as Joe Tucci says, you got to have some armor and be prepared for some battle. The target is a great example. They went a little bit aggressive. The data leaked out a little bit. They had some flaws and certainly heart bleed out there. You're seeing a lot of fear and certain de-end out around that. So clearly, the game is changing. So with our last question I want to ask you, share with the folks out there in your words, with all that as a backdrop, shadow IT being religionized, the target thing, the heart bleed, the pressure to drive top line business, what do people need to know about global services now that you guys are doing that's seriously compelling? Yeah, I really think that CIOs have an opportunity here to become a part of the revenue streams of the business. We have a chance to go redefine what IT does in the business. We've been looking for this opportunity as IT professionals for 30 years. I think it's really here. Frankly, it's a pretty high bar. And we're going to have to go step it up to the level of a public cloud provider, to the level of an IT as a service provider. And we're going to have to embrace new technologies, new business models, private and public clouds. We're going to have to get to the idea that we are going to be the brokers of IT and IT services for our business. If we can do that, I think we get that seat at the table that the enterprise wants us to have, that's the opportunity for us. And really that's what global services is all about at EMC, is helping clients to take small steps and ultimately bigger and bigger steps to becoming a part of that conversation for the enterprise that we're part of. Tom Roloff here inside theCUBE, fifth season, great to see you again. And you guys have been doing great. I saw Bill Schmarz was going to have a big part of the practice he wrote a book on big data he's been on theCUBE. And just seeing the work that you guys are doing with customers, the bet on cloud meets big data, which we were kind of skeptical about, 2011, big vision, where's the meat on the bone? You guys have done some great work. Products are filling in, M&A's hot, $5 billion a year on innovation. So congratulations, it's really showing. So thank you. We'll be right back with our next guest here. Live in Las Vegas for EMC World, I'm John Furrier, Dave Vellante, we'll be right back.