 Live from San Francisco, California. The Cube, covering MarkLogic World 2015. Brought to you by MarkLogic. Here are your hosts, John Furrier and Jeff Kelly. Okay, welcome back everyone. You are watching The Cube here live in Silicon Valley for MarkLogic World 2015. This is The Cube, it's our flagship program. We go out to the events and extract the simple noise. I'm John Furrier with my co-host, Jeff Kelly, Wikibon big data analyst. Our next guest is Aaron Davis-Morris, managing director of worldwide professional service for Intel, welcome back. Yes, it's good to be back with you guys. It's been a couple years. So what's going on with services right now? Intel is huge with Cloudera, big investment, obviously a billion dollar unicorn among many now. The hype of big data has reached to crescendo, implementation, the rubber hits the road, meat in the bone, whatever it's for you to call it. There is a reality that people want to see some proof and some progress. So John, that's a, thank you for asking that question. So my whole career's been in the consulting space. My whole career's been in how do we help people take funky, messy technology and make it a reality? And we were last together a couple years ago and I had sort of just moved into this space and it has been an interesting ride over the last couple years. In fact, I remember one of the first questions you asked me about at that time was, hey, where are we at with seeing folks moving out of POC and in production? And I think to some extent we're still asking that question, especially as you move out of the US, I was just in China and when I was there, every company I was talking with was very much focused on how does Intel, how does a consulting agency, how does services teams, how do they help me make this set of products this suite a reality, right? The fact that Cloudera and other companies have made it much easier to deploy is great, but at the end of the day, moving up the stack into analytics, seeing investments in companies that are going to productize solutions to ride on top of Hadoop, that's what's really going to get value out of this real and interesting... Well, those are mission critical apps, so you mentioned that question I asked you, I'll ask you again, are the proof of concepts getting bigger? Because it seems to be in the cloud and big data world is that the milepost, if you will, for success have gotten shorter, but it's the same cycle of deployment. I mean, whether it's a three year roll out on the old days to short chunks of chunky artage, as we say, these are football analogy down the road. So is that proof of concepts just getting bigger? And then comment on that global perspective. Yeah, so sorry, I didn't mean to, it wasn't dodging your question there. Are they getting shorter? I think we sort of see kind of, at least within my group, and I have a team of consultants that do a whole bunch of different stuff for our customers and with our partners, we kind of see not quite a sort of like a wait and hurry up approach, right? When we go talk with customers, it's, how do I get data into the hub, right? Help me get all my data centralized, right? Then as soon as I get my data centralized, help me make really rapid applications. So for instance, we have a very large CPG customer that we spent the better part of six months working with architecting a solution for them, working with them to pull internal POS data, external data, social media data, all that sort of thing in. As soon as they got that to the stage where they were comfortable that it was safe and sound and secure, security was a massive issue for them, they then said, okay, let's green light some projects. And they were talking about, we want to see progress in 30, 60, 90 days, not six, nine, 12 months, which is one of the reasons why we love the partnership with Mark Logic is that their solution solves a number of problems, both in the security and governance perspective and the easy use. So to that end, yeah, we see customers starting to go, I want proof in the pudding. I'm willing to make an investment to get it up and running, but I got to see some stuff happen. So talk about the dynamics and big data right now. So you have business intelligence, data warehouse, old school market, you mean transformed into internet of things, real time, mobile device, low latency, flash memory, certainly Intel makes some good business on all these devices. So I want to get the trends there out, but I want to answer specific questions. Do you like the term data lake or data ocean better? To describe the future scenario of the big data world. Hmm, data lake or data ocean, I guess I don't, I don't know if I really like either of them. There's so many out there, data quarry, right? That maybe is a better thing because you get more of a structure to it, right? But anyway, I would go with anyone as long as people are deploying Hadoop and we're seeing pull through on our silicon. Jeff, what's your take on data lake or data ocean? Well, I actually like data ocean because it's got different currents and implies movement. And there's data, there's data, coordinated movement of data has to happen, but data buffet, data buffet, well there's a new one. Data sushi bar, it is almost lunchtime. Well EMC loves the data lake, that's what they call it. To me, I think data lake speaks well for the, I'm pooling my data and I got to go work on it, kind of like the old data warehouse market. But I mean, that business intelligence market, but when I think about like mobile computing, real time in the moment transactional, that's what customers are thinking about from a solution is whether it's retail or operationally transactional. What's your anecdotal observation in that direction? How far are companies going right now? How early are they? Toe in the water, are they moving? In terms of pulling mobile data in, the customers we've been working with in my team, I would say they're toe in the water. They're definitely not toe in the water in terms of they want a solution that can be mobily viewed. All the customers that we're work with want to be able to expose that information, right? They're also starting to talk interestingly enough, I think about monetizing that, right? Being able to take the data they have in a hub and safely feed it out via secure APIs to their customers and make some money off of that. So I thought that was kind of interesting. We, other parts of Intel are working in the telco space, they would be sort of more focused on that. So you know, we size the big data market and professional services is that kind of the biggest chunk of that market. Part of that I think is because of the complexity of the systems and the data movement I was just kind of referencing earlier. Walk us through, I mean if you can say a typical engagement. But from a professional service perspective, let's drill into that a little bit more. What does that actually look like on the ground? What are the services that you're providing that are really adding value for customers? Yep, yep, yep. And so just to sort of level set here, my team is an enablement team. We're a resource that Intel has invested in to be able to help accelerate the market. It's no surprise that Intel wants to see this market move faster. That's good for Intel and for our shareholders and so anything we can do to help do that we want to do. So I have a team of guys that go out and typically an activity would look like, we go chat with a customer, right? It's usually a business lead. And they're usually confused about what are other people in my space doing, right? So we have a set of workshops, canned workshops that will come in and we'll do for customers. We do this in conjunction with our partners so like in conjunction with the MarkLogic or in conjunction with a system integrator partner to be able to help jumpstart their capabilities. We'll go in and we'll work with that customer, spend several hours working with a cross-functional team, kind of touchy-feely post it, no driven activities. I was in the big four before so kind of big four type effort there to get them thinking about what can they do, right? And once we get that information out of them, we'll come back to them with a deliverable that sort of roadmaps out. Hey, here's what we've seen other customers similar to you be successful. Here's some investments that Intel will make. Here's some investments that we're working in juncts with MarkLogic or Cloudera that they would make. And then we would move into a very rapid POC. Anytime we're engaging, we're thinking we want that customer's executive seeing something tangible, seeing a real report, a great visualization, interesting change in the business within 90 days. So POC something, that's what we did with the healthcare company I'm going to talk about this afternoon where we POC'd over the course of 90 days a seven node cluster that pulled in EMR data, it pulled in nonstandard data in terms of doctor locations, hospitals, that's not hospitals, doctors, outpatient clinics, et cetera. And it pulled in socioeconomic data using like Zillow information, real estate data as a proxy to be able to figure out, hey, merge that information together and can we predict ahead of time that a patient is going to readmit? As you guys probably know, huge financial impact if you readmit a patient, huge brand issues, morale issues, et cetera. And we wanted to help this hospital figure out ahead of time. Yep, spend more time with that person, less time with this person after the fact because there's a higher probability they're going to readmit. And we saw some significant improvements there. Six X improvements that we think can drive 50% reduction in their readmittance, which translates through to $14, $15 million a year of incremental revenue for this hospital and a ton of pain in the butt savings for them and that their people aren't treating people over and over again. Right, well there's a lot of different layers to that some of those use cases you just described. There's certainly the infrastructure level, there's the database level, then there's the science level. Where do you see the biggest gap in terms of when you go look at customers, in terms of their ability to execute on big data projects? Is it on that infrastructure? Is it standing up the systems? Is it actually doing the data science? Where's the biggest gap used to? So I say that all the customers we see have gaps at all layers, right? I think once they dig into it, it's easier from the fill that lower level gap from a PS perspective, right? When I go and look at my staffing model, I don't say to myself, I need to go hire a bunch of hadoop administrators because that's a complex thing. I can go find those in the market pretty readily. But absolutely the data science skillset and the dev skillset is still something that's very much in demand. There's a premium for it. If I was running a four-fee business, I'd be focusing on that market. And Candily, it's the real fun part of it, right? The taking the business guy's thought and having our guys figure out the math on it, which is way beyond my knowledge, it is amazing to see the stuff that those guys come up with. And then actually packaging that into some kind of application that people can actually use and consume. And that's where I see, and I think we're really starting to see a lot more of it, investments in the venture capital community towards the end of creating those package solutions. I was at Strata, I think it was in New York last year. And as I walked the floor, it really struck me that in my mind, I only saw one real application vendor there, right? Everybody else was about how do I do better visualizations, which is important. How do I do better security? How do I do better sort of enterprise enablement? But an actual true application, there was only one company called Caspita in the security space, right? And I think you'll see lots, lots more of that. And that's where I want to see stuff go is, how do we get folks doing that so that there's more easy to deploy stuff? Yeah, and then what you see, what I'm seeing is, and I think you're going to see to some extent is applications being developed internally at a lot of companies. Because if you think about the benefit of big data and analytics in terms of an application perspective, I agree with you, that's what the value is, but if everyone's using the same off-the-shelf applications, there's not a lot of differentiation happening there. Now to some of the customers we've talked to here at this show at MarkLogic, they're building out some of their own applications. Talk a little bit about Intel, your relationship with MarkLogic, how you're working with them and some of the use cases you're seeing there. Sure, so great relationship with MarkLogic, I pulled through about 50,000 Xeon servers a year. That's a very nice chunk of change. We are always looking for partners that are going to help customers and customers improve efficiencies in the data center. A big thing for us is how do we get people getting more value out of their existing spend, right? Lowering the cost of operations so that they can do more stuff. At the end of the day, if companies are getting more value out of their data center doing more things, that's going to end up being positive for Intel, right? They're going to expand the pie. And so MarkLogic's a perfect example of that. And having been in the security space for 15 years, the great stuff that they're doing in security and governance and compliance is huge. When I started at Intel in this role a couple of years ago, we were the team championing, you need security in Hadoop, right? And happily it's reached a stage where it's table stakes, right? People are saying, yeah, if you can't effectively secure my PII, right? I'm not creating what would eventually become the holy grail for a bad guy. I got to have the right security and MarkLogic's done a great job of that. Something that we love working with them on. Talk about the dynamics in the professional services business. We've seen this transformation going on with MarkLogic, among any other of their competitors, creating agile, fully integrated technology stacks to make developers really work easily with the cloud and mobile. Certainly Docker got big financing today to $95 million of containers. Docker contains a lot of work on multiple clouds. Got VMware, Google, everyone's working on clouds. So that brings up the question of the role of the outsourcer, the professional services, the big guys, CSC, Accenture and whatnot. They have to transform. What's your outlook on their business models and how do they compete in a world of integrated stacks and agile solutions and short timetables, time to value in months versus years? Yep, so we work with and we have relationships with all those key SIs, specifically Accenture and CSC. They've got a footprint that I think we want to see leveraged, right? They've got that sort of first step into the account. They're building out past type offerings and the such that we think can really help improve and customer's use of big data. How they work with like a MarkLogic and other folks that are creating integrated applications. I think like other large applications, ERP, et cetera, there's a role for them to be that glue. Right now, there's a lot of glue you need to make this work, right? Down the road, as things get better, there's still going to be a need for glue. You still need smart folks, especially industry driven folks to be able to tie things together at the last mile. We just want to see that get easier. So final question, what's your outlook on MarkLogic? What's the big value purposes for those guys? I think it's to continue driving towards helping customers get better value out of their data, right? If they can be the company that creates that hub that is allowing folks to take existing data stores and marry it with that non-conventional data, I think it's a win for them. It's a huge win for Intel. And we're excited to be part of it. And what's your outlook for the year? What are you working on? I am working on the same thing I was working on for the last six months, which is going and meeting with customers, explaining to them that there's a lot of great value, then get out of big data, and how do I help you, Mr. Customer, do that. All right, Aaron, thanks so much for coming on theCUBE. This is theCUBE live, and it's looking at the value for MarkLogic World 2015. We'll be right back after this short break. Thanks, guys.