 Come on from Las Vegas, it's theCUBE. Covering EMC World 2016, brought to you by EMC. Now, here are your hosts, John Furrier and Dave Vellante. Welcome back everyone, we are here live at EMC World 2016. This is SiliconANGLE Media's theCUBE, our flagship program. We go out to the events and extract the signal from the noise. I'm John Furrier with my co-host Dave Vellante and our next guest is Roy Guy, he's the president of the EMC's Enterprise Content Division. Welcome to theCUBE. My pleasure, thank you, good to see you. Great to have you on, one of the hot topics because we're in the content business so we know a little bit about content, is that there's a huge kind of discussion going on at many levels of the enterprises around digital transformation, but digital means digital. So, you got to be digital to have a transformation to a new digital transformation and there's really a sea change going on how customers are engaging with their customer. Your customers are engaging with their customers and that's in a digital progression, that is end to end digital, some analog sales leads here and there, some stuff going on, physical point of sale, retail, what not, but you got virtual reality, AI, data driven concepts, change in the landscape. So, let's discuss that, but before we get into some of the industry discussions, talk about Horizon and the announcements you made today. Absolutely, so really excited to unveil the formal name of Project Horizon, we are calling it Leap. And think of Leap as a few small apps for users, a giant leap for the ECM market. And why do I say that? Because small is beautiful, small is focused, we live in an app economy today, right? Users expect purpose built, fit for purpose, lightweight apps, so that's what we've delivered a franchise of small, lightweight apps as part of Horizon. And the reason this is big is we are changing, we are delivering consumer-grade apps with enterprise-grade security and compliance, which is what we've been traditionally known for. So this is what can help customers get on, on their journey for digitalization, which you were mentioning, John. In addition, the other, the power of Leap is that it is going beyond what some of the other file sync and share providers are doing. We are allowing customers to manage content wherever it may live, we are not forcing them, we are enabling transformation without migration. Leave content where it is and manage it with these lightweight apps. So non-linear consumption pretty much is what you're seeing. Absolutely, absolutely. It's a pure SaaS space, consumption, use what you need, pay for what you use. So talk about the differentiation from other products out there, because you've seen the collaboration space certainly change very radically right now around this non-linear consumption, which means it's omnichannel and or different content form factor, right? Okay, the world we're living, we're live streaming here, but that's just not the end of this. Data behind it is all kinds of technology. How do you, and some companies have struggled with this, how have you guys differentiated yourself and what are those differentiators? Look, the fundamental premise is that we believe that it's not simply about the technology. If all we did was apply technology, created a cloud-based content repository and one giant cloud-based app, we would have underserved the market. We took a different approach. We said, leave content where it is, deliver these apps that can add value to our current investments as you get along on the journey for digitalization. Second, what we did was we created fit-for-purpose apps, lightweight targeted apps, instead of building a monolithic app with a lot of functionality crammed into it, because users don't want that. And the third thing we did is we said, let's not sacrifice enterprise-grade security and compliance. So it's consumer-grade usability with enterprise-grade security and compliance. Rory, can you talk about how this business has transformed in the last 10 years? It's been quite dramatic. If you go back to the 2006, the federal rules of civil procedure created an opportunity for you, but it was one of governance and filling holes with email archiving. The general council was kind of driving the bus and it was all about reducing your risk. And now in this world of digitization, it's an opportunity. Talk about, there's still a piece of your business that does that, but talk about that transformation. That's right, that is the biggest transformation. You hit the nail on the head, right? Our focus, our buying center, our value center was the compliance and IT buying center within an organization. Fear, that we are the motivation we were selling on the motivation of fear. Now it's about we have put the user in the center of the universe. We feel that our job is to humanize and engage, humanize the interaction of engaging with content. And we do that, what does that lead to? That leads to engagement. And engage customers are more loyal. Engage employees are more productive. And engage partners and suppliers are more collaborative. So it's all about driving top line as opposed to managing risk. Yeah, so internally that's maybe a productivity play. Externally it's maybe some type of conversion. Engagement leads to some type of conversion. It's a new funnel model, it's occurring, right, both internally and externally. Absolutely, absolutely, absolutely. Out on the keynote today, we heard engagement and intelligent data enhancing the systems of record. That's essentially kind of what you guys do, right? You have documentary, a lot of other platforms out there. So you have the database system of record. Now the hot thing that everyone wants is engagement. Engagement, yeah. Which gives more data. That data can be synthesized for insights. Insights can lead to things like AI machine learning. So we see that progression. How do you guys fit into that and how do you fit into that vision one and what technologies do you guys have for those customers? Yeah, so we think about the digital journey as very simple. In order to digitalize content has a vital role to play. Why? Because content is at the end of the day how you capture knowledge in an organization, right? Content is at the end of the day how you conduct business. Think sales contracts, legal documents, marketing videos. And content is the largest corpus of data in an organization. So in a data-driven world such as today, if you want to get on the digital track, content is what you have to harness. And we have the technology to manage content across its life cycle. We have info archive to manage inactive and static content past its prime. We have documentum which manages active content through regulatory flows. And now we have leap project horizon to manage the more collaborative flows to engage humans and users with content and get more productive. So is it a coincidence that leap is on a leap year? We toyed with that idea of the leap year. Where we lined it was the giant leap, quantum leap notion. Yeah. So okay, let's talk about the infrastructure change because one of the things again we mentioned prior we came on was the content management systems out there were all based on old database models. Now you have real time information, unstructured data. We had Michael Dell, even Joe Tucci highlighting the treasure trove of data coming out will be an asset of that. How does the data layer or the role of data impact your business and your customers? Yeah, what we are experiencing is a world of big data and fast data, right? There is a higher volume, variety, and velocity of data. So what we have had to deal with is we have to create architectures that enable dealing with that big data, fast data, which means you cannot have an architecture which puts a trade off between flexibility and cost, right? If your fundamental architecture says that if you need flexibility in your data model, if you have to change everything and throw everything out the window it's going to be very expensive and it's going to be fraught with risk. So with our architectures what we are enabling is this balance between the trade off between flexibility and cost. So what's the analytics angle in your business? Let's drill into that a little bit. What are your customers asking you for from an analytics perspective? Yeah, what they're saying is look, I realize that while the rows and columns in a database are interesting, I have unstructured data in my world which is the largest corpus of data in my organization. And a lot of the intelligence and the knowledge is actually captured over there. So is there a way to mine that data and use that to feed insight into the business processes that I have in my environment? So what we are doing is as we manage data we provide the database if you will for the unstructured data but we expose that data in a form so that it can be leveraged for analytics over that content body. And how are customers doing that? Do you provide tools to do that? What we do is we do two things. We again expose the data and they can use any analytical tools on top of the data that we expose in a form. We expose it as a Hadoop file system as an example which enables layering on of content analytics on top. And then in addition the other important part we play an important role we'll play is take the insight from that analytics engine and weave it into the business processes allowing humans to be more productive and be more informed based on the data and their environment. Now talk about your business a little bit. We're talking off camera but it's a big business. I mean over a half a billion dollars, right? You got some really bright spots. Give us a business update. Yeah, so the business update is we have real tangible business momentum. We have after a hiatus of a few years we've returned to growth and what we're seeing is licensed growth based on info archive. We have our D2 and the industry solutions and the document franchise that are growing and of course our SaaS business is growing with Project Leap and the announcements therein. It's significant licensed growth. It's not licensed growth. Sometimes people think oh I have 1% that's growth. No, you're talking about double vision. Double vision, 20 plus, Q1 for us this year was 20 plus percent licensed bookings growth. So you talked about the products driving that growth but what's the underlying driver? Look, the ECM market was viewed as a mature market but we feel that the quest for digitalization is making the market hot again. So there is a rising tide effect. So there is increased demand because of digitalization and on top of that the fact that we are being the progressive incumbent and actually acting upon and changing the industry by moving to SaaS and enabling productivity of users is what is driving our growth. Well it's a real tailwind for you guys. This whole digital transformation trend. When you think about content, we talk about engagement, content, what's your strategy in terms of enabling your customers to manage content, create content, pass that on within their own customer base? Talk about that a little bit. Look, what we realize is a lot of our customers, they cannot snap their fingers and envision a born cloud, beautiful pristine world. They have to deal with legacy, they have to deal with current systems that they have. So what we've done is we have provisioned for them what we call a better together strategy where they can apply these new digital use cases alongside the systems and the investments that they already have. So it's not a rip and replace strategy, it's a marriage in place and build upon what you already got strategy and that's really resonating with our customers because most CIOs today spend way more money, way more investment just keeping the lights on. So what we have with InfoArchive is a way to free up dollars for innovation by rationalizing their app environments and they can take that money, that savings and apply towards digital use cases and they don't need to throw out the window all of their investment in classic content technologies like Documentum. They can actually just layer things on top. Am I correct? The vast majority of your business historically anyway was for sort of internal consumption. Is that changing? That is changing, that is changing. You know I think about Documentum as active content flows inside the four walls of an organization. Leap is basically taking collaborative flows inside and outside an organization and that's where the big opportunity for digitalization is. You think about a bank. If a bank wants to be perceived as being a digital bank what's the best place to start? The best place to start is from the outside in. So people interact with the bank feel it's more digital, right? So what you want to do is digitize the use cases in terms of external engagement with the bank so the external image of the bank is more digital than analog. Yeah, people want banking. They might not want banks, but they want banking. Exactly, exactly. So you bring up a good point I want to drill down on because this is really the phenomenon in the market. You mentioned digitizing. So the old way was we got to create some content and let's build a system for the content. Kind of a schema around the database, you build it, store it, kind of search engine, whatever you want to put on it happens. It's infrastructure. What you're talking about is completely different. You're talking about a company that wants to digitize everything. So how do you guys engage with that use case? Because that really is what people want. They're saying, look at OKEMC, I want to digitize everything in my entire corporation. And where do you start? Where do you start? And one, you mentioned better together, but I have data silos. It's a problem. Help me, what do I do? What's the pitch? You know what? We've heard that from a lot of Linus business users as well as CIOs. To specifically target that opportunity, what we announced and what we have here is a digital maturity assessment. So what we have is a tool that can establish a baseline for our customers as to where they are on this digital journey. And that's been a very important way to open that conversation. Customers are engaging us to find out where they are on this journey. And it really puts a process and a structure around this somewhat amorphous, somewhat ill-defined notion of going to that digital state of the future. That's a service that you provide? Or is that a lost leader? You get paid for that? No, it's a free assessment. And we have a web-based tool and a model behind it. And actually at the Momentum Lounge right here, we are actually inviting customers to engage with us to walk through this business process. And then what happens is what we do is- They take a path based upon their maturity level. Yeah, you're in kindergarten. ABCs. Exactly. Once you baseline where you're at, we basically, to use your analogy, we would craft a curriculum right to get them up to the right level and get them along on the journey for digitalization. And what's interesting too that I want to point out and I want to get your thoughts on this because a lot of people think of e-learning as catalog-based learning, which is a linear concept. What we're talking about here digitally is asset consumption for the discovery of some non-linear e-learning environment. Learn about a product. Learn about a service. How do you guys enable that? I mean, what's this? I mean, is it EMC only? Is it- No, look, you know, the phrase we use is better together. So we do offer better integration with our own technologies. But what we offer is the notion of managing content in place or working with other systems. So we fully embrace the notion that there'll be other systems, other technologies from other companies that we must integrate with. Rory, thanks so much for coming on theCUBE. Sharing your insight. Wish you had more times. Great topic. And the final word. Share the folks watching who aren't here. The takeaway from your group for EMC World this year. Yeah, the key takeaway would be, look, we are fundamentally reinventing the ECM industry. And I've been, I'm delighted to announce Project Leap, which is humanizing the engagement of users with content. That'll be transformative for our companies as they embark on the digital journey. But that is better together. That fits and complements our info archive and document and technologies. And we'll forever change the face of ECM and the role of content in the quest for digitalization. Enterprise content management, big deal. And it affects the infrastructure and its software. It affects the user experience, engagement, intelligence. Rory, thanks so much for sharing your insights on here on theCUBE. This is SiliconANGLE's flagship program theCUBE. I'm John Furrier, Dave Vellante. You're watching theCUBE. It's always fun to come back to theCUBE because.