 It's awesome as it was last time every time I do one of these interviews I always have a new take on all the concepts. I've had about What my products can do? I like it a number of people have approached me after having watched cube videos There's also a LinkedIn group. That's very active, which is something I'm on. I do enjoy that Well, I love Dave Vellante obviously No, it's it's it's been great to be to be here. It really gives us great exposure People take it seriously. I get emails from all around the world after we've done this a lot of our shareholders watch this But hopefully to get some inside information, which of course we never reveal But but we do have a great audience that follows us on this. Oh, it's it's a great group to be a part of You know it's it's funny because either John or Dave always mentions that every time I come on And we don't quite have a secret handshake yet, but I think we we need to work on that It's very popular in the company. We work to get on here I hope you know that Because the people would act in and I mean senior executives all the way down to pretty much every person in marketing They see this as one of the real highlights for us each year I'm on the road all the time. It's all I do to talk to people and this is one of the premier premier venues and Platforms for us to bring our message to mind cubes a lot of fun. It's you know ESPN for tech I think tech's 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 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, you know, I love it I 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, you know having been on it for several years almost from the very beginning It's it's always great to be back It's about connecting with people and that really is what it's all about So the cube is starting to do their own events now and it's really like the next step the next evolution of the cube and Really it comes as a response to the fact that we break markets more than we break news And there are some markets where it's underserved by the existing events infrastructure There's not enough events covering things that we're covering And so we felt it's time to step out and maybe provide a venue for that ourselves I think the cube thing is an event gives it its own identity. I think it's different from other forms of journalism I was on the road so much, you know, if you're spending, you know 20 hours a week in hotels and airplanes and such it just ended up my goal was to bang on a chapter a week So it took about four months or so to get it done This is an amazing segment with our friend and gas cube alumni Bill Schmarzo big data Understanding how data powers big business read this book. It's really great Our second company launching on the cube Tell us what your company's doing launch your company go today. Paxata is launching the industry's first Adaptive data preparation platform. We're also going to be announcing three very important and strategic partnerships with Tableau click view and cloud era I think means the company is building and growing and I think the model is working So big news you guys have an announcement you guys are working together on a partnership Let's explain it. What we're doing is we're really combining two great solutions So that customers that want to take advantage of big data or any data their information Can do it seamlessly it just makes sense that you can have a single environment Where you can do anything you want against the the data? What are you guys doing differently? I mean like for instance, are you guys looking at things like bitcoin? We are and so actually we are gonna in may you are looking at bitcoin We're actually going to start taking bitcoin at our stadium and I think that'll be a nice Obviously appropriate way right in the middle of silicon valley with a lot of very tech savvy and tech tech forward fans Um to kind of you know adapt to the most recent innovations that are out there I know we are almost at the tipping point where how do people consume content? You know the the traditional sort of just what I talked about static brittle rigid make a bunch of contact pack it up Let people see it in this little time window. That's breaking down More like you guys do more continuous content creation and let people stream it into their into their lives at will 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 I like to format a lot. I think it gives us. I mean it's really rapid fire. Which is kind of fun, right? We're all high energy people So it's a great chance to just sort of get into it and get excited about it. So it's fun It was very good very interactive, but it's always good because this is what you face with clients all the time They ask you tough questions. It's not on the camera. That's the difference, but I definitely enjoyed it You know, I have been on the cube for a while. I think I was there the first edition and It started with being the small thing that john had the idea on and and david was there and jeff and so forth And I think now we've turned into like an amazing production We'll need to look for guests for our events that we cover We want to look for people who are the thought leaders the CEOs The people making the news people who are shaping the opinions of the crowd And more importantly people who have something to share that's valuable that we think could be added value to our audience in the crowd John and david were prepared and uh multiple cameras lots of lights as far as I know you could hear me There weren't any Breakups or like that. So it was good. It's been fun to watch it develop It seemed like it was a table And one camera and now it's a whole production room and uh, it's pretty important And I think it's an important source of information now There's a lot of people that can't make it to conferences But they know that the cube's available to to you know, find out the news of the day and and see the ESPN sports casters of big data Yeah, Dave's pro and uh, it's a great chance to come and actually talk about what you really come in new technology One of the things I like about the cube It's fun for me is I'd like to ask the questions Around other things not necessarily the messaging of what they're trying to say You know guests have a lot of information that we want to share So I like to go in and try to explore What's in their mind and extract that from them and share that with the audience? So sometimes I have to ask around about questions And kind of tease out some market trends more importantly get them off their messaging because the audience loves to hear What these people think and how they feel about things because it is a longer interview It's sometimes 15 to 20 minutes and we want to get at the action We want to get about what's on their mind. What's inside their head and get that out into the social world When we created the cube we wanted to have a conversational Atmosphere where we can deliver real information and john and david have accomplished that It's not a pinion to the wall barbara walters make it cry style interview It's an interview where information comes out and it's where knowledge is delivered to get john as the mc on one side where he's Asking the journalistic reporter style questions and making you think and on the other side You've got davilante can go deep on any topic and really extract that knowledge from the guest and deliver to the audience 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 the more you know about big data. I think the more likely you'll be A cube a fiction out of if the dialogue is authentic. It's a conversation. It's relaxed It's not so much, you know the formal interview you normally see on some of the you know the big tv cable programs news programs We want to be comfortable. And so there's a lot of Questions around things that they might not get in depth from other other channel. Yeah, it was very good It was very comfortable and uh, yeah, so they're very good at what they do That dave's pro and uh, it's a great chance to come and actually talk about what's really coming new in technology Well, they did their homework because it certainly came gross as Asking knowledgeable questions That I could respond to appropriately Rather, you know, often some tangent that I gotta figure out how to respond to Now we're getting into dangerous territory. If I ever want to come back again, they're fantastic, of course It was great ping-pong back and forth and very very quick fast pace really enjoyed it. You guys are just terrific What's exciting about the guest interactions is that's engaging and comfortable We want to make them comfortable And we ask a lot of questions and we go back and forth Dave and I more importantly having them be engaged so that they feel comfortable sharing some of the things that they feel And the data about certain topics and that's really the key is making them feel comfortable and engaging 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. It's interesting the the TED conference the $8,000 a ticket annual conference Used to be amazing material amazing talks 18 minutes long But you could only see it if you bought a ticket then they started Making the talks available online And the argument was well, then who's going to buy a ticket? That's not what happened that was like a giant ad for going to the actual event It's like it's like who would go to a rock concert now that you could download their iTunes album No, that's ridiculous You want to go to the rock concert more because you've heard them you want to see them live So I'd say having journalists here at an event like this fulfills the same purpose It won't mean that you don't need to go to the conference But it'll show you what you're missing for next year. I think it's kind of Similar to big data, which is kind of an explosion of sources And allow people to personalize the streams and select exactly what what they want, you know these days With social media people looking to not just read articles, which are great and obviously silicon angle 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 is really important You know when you look at the standards, you know groups that are out there today They report on the the general things that have been around forever Reinventing the news with the independence. I think is a better format The importance of independent media at these events is the difference between having a discussion That's relevant to the audience and having a marketing event that nobody wants to pay attention to Marketing is important. The vendor needs to get their information out there But the audience doesn't care about it in its original form. It's not interesting to them It's not relevant to them most of the time because there's a variety of customer situations of what the cube can do What other independent journalists can do is they can come into that event ask the questions that matter and make that information that's not relevant Something that is relevant is useful as actionable to the audience. Yeah, I think it's fantastic from the standpoint You guys aren't going to hold back. You're not going to pull any punches. You're going to ask the questions You're hearing from the people here that they want answered to so I think it forces us to answer the real questions 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 and really to kind of advocate for You know the truth because that's really what customers are looking to hear I mean, there's a lot of spin and there's always going to be spin But I think you know it's I don't know it's kind of the no spin zone of big data Right, I think it's quite important because you hear a lot of messages from a lot of companies and they start to blur And you need somebody to kind of decipher and really make this a little clearer for the it community The thing that I like about the cube is the fact that it's open source media, right? So you guys you guys are telling a story. You're unbiased You're asking some of the difficult questions in the midst of the dialogue and you're making it available to anybody Who wants to use it in any way so it's not prepackaged. There's nothing stilted about it. It's the real thing So it's very valuable to the tech industry unbiased. 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 a biased thing I don't think we would have got and I think that's what people want So our shareholders ask us constantly for the size of the market. Who's doing what? Who's your competition? So I love the fact that you guys actually provide completely independent research And so I see the cube as essential to this kind of sort of new media and that independence that useful Independence I think is a breath of fresh air for the industry. I think it's great in my mind It's kind of like the esp hand right of the tech world, but you guys are everywhere covering it Well getting all the points down. So, um, that's how that's my mapping in my mind of it And I think that's a great position to be in Cube alum is our term for someone that has been on the cube And it doesn't matter if you've been on the cube once or twice or nine ten or 15 times that we have people that fall in all areas Of cube appearance frequency But what is important is that you've been on the cube and you are a tech athlete. You're cut above everybody else in the industry Yeah, this is my first time on the cube. It sure is. It was my first time on the cube. It was fun That was and we covered all six sides of the issues It was great rapid fire. Let's talk about what's going on, huh? I actually enjoyed it. I think it was fun I like the the back and forth being with two people who obviously are very experienced professionals knew how to carry the conversation and quite frankly knew how to make me look good Oh, it was a lot of fun. It was fast-paced moving lots of a variety of topics. It was great They made it very easy for you know, for the first time we're there in the cube It felt like those are the espm Love being on the cube. I think it's great interactive discussion. It's not often you get to sit with People of the caliber of John Furrier and Dave Valente and actually have these kinds of conversations So I I appreciate the banter and the discussion and the fact that I'm talking to Some guys that really understand where the industry is at 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 It's awesome as it was last time Every time I do one of these interviews I always have a new take on all the concepts I've had about What my products can do I like it a number of people have approached me after having watched cube videos There's also a linkedin group that's very active, which is something I'm on. I do enjoy that Well, I love Dave Valente obviously No, it's it's it's been great to be to be here. It really gives us great exposure People take it seriously. I get emails from all around the world after we've done this a lot of our shareholders watch this for Hopefully to get some inside information, which of course we never reveal But but we do have a great audience that follows us on this Oh, it's it's a great group to be a part of you know, it's it's funny because either John or Dave always mentions it Every time I come on and we don't quite have a secret handshake yet But I think we we need to work on that. It's very popular in the company. We work to get on here And I hope you know that Because the people that act in and I mean senior executives all the way down to pretty much every person in marketing They see this is one of the real highlights for us each year when we get on the road. I'm on the road all the time It's all I do to talk to people and this is one of the premier premier venues and Platforms for us to bring our message to market cubes a lot of fun. It's you know espn for tech I think tech's 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 And I think they they made 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. 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. You know having been on it for several years almost from the very beginning It's uh, it's always great to be back. It's about connecting with people And that really is what it's all about So the cube is starting to do their own events now and it's really like the next step the next evolution of the cube and really it comes as a response to The fact that we break markets more than we break news and There are some markets where it's underserved by the existing event infrastructure There's not enough events covering things that we're covering And so we felt it's time to step out and maybe provide a venue for that ourselves I think the cube throwing is an event gives it its own identity. I think it's different from other forms of journalism I was on the road so much that you know, if you're spending, you know 20 hours a week in hotels and Airplanes and such it just ended up my goal was to bang on a chapter a week So it took about four months or so to get it done This is an amazing segment with our friend and gas cube alumni Bill Schmarzo big data Understanding how data powers big business read this book. It's really great. Our second company launching on the cube Tell us what your company's doing launch your company go today. Paxata is launching the industry's first Adaptive data preparation platform. We're also going to be announcing three very important and strategic partnerships with Tableau click view and cloud era I think that means the company is building and growing and I think the model is working So big news you guys here have an announcement you guys are working together on a partnership Let's explain it. What we're doing is we're really combining two great solutions So that customers that want to take advantage of big data or any data their information Can do it seamlessly it just makes sense that you can have a single environment Where you can do anything you want against the the data What are you guys doing differently? I mean like for instance, are you guys looking at things like bitcoin? We are and so actually we are gonna in may you are looking at bitcoin We're actually going to start taking bitcoin at our stadium and I think that'll be a nice Obviously appropriate way right in the middle of silicon valley with a lot of very tech savvy and tech tech forward fans Um to kind of you know adapt to the most recent innovations that are out there I know we are almost at the tipping point where how do people consume content? You know the the traditional sort of just what I talk about static brittle rigid make a bunch of contact pack it up Let people see it in this little time window. That's breaking down More like you guys do more continuous content creation and let people stream it into their into their lives at will 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 news 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. I like to format a lot. I think it gives us I mean it's really rapid fire, which is kind of fun, right? We're all high energy people So it's a great chance to just sort of get into it and get excited about it. So it's fun It was very good very interactive, but it's always good because this is what you face with clients all the time They ask you tough questions. It's not over the camera. That's the difference, but I definitely enjoyed it You know, I have been on the cube for a while. I think I was there the first edition and It started with being the small thing that john had the idea on and And david was there and and jeff and so forth and I think now we've turned into like an amazing production When we go look for guests for our events that we cover we want to look for people who are the thought leaders the CEOs the people making the news people who are shaping the opinions of the crowd And more importantly people who have something to share that's valuable that we think could be added value to our audience in the crowd John and david were prepared and uh multiple cameras lots of lights as far as I know you could hear me There weren't any breakups or like that. So it was good. It's been fun to watch it develop It seemed like it was a table And one camera now it's a whole production room and uh, it's pretty important And I think it's an important source of information now There's a lot of people that can't make it to conferences But they know that the cube's available to to you know, find out the news of the day and and see the ESPN sports casters of big data for your other format Yeah, dave's pro and uh, it's a great chance to come and actually talk about what's really coming new and technology One of the things I like about the cube is fun for me It's I'd like to ask the questions Around other things not necessarily the messaging of what they're trying to say and guests have a lot of information that we want to share So I like to go in and try to explore What's on their mind and extract that from them and share that with the audience So sometimes I have to ask around about questions and kind of tease out some market trends More importantly get them off their messaging because the audience loves to hear What these people think and how they feel about things because it is a longer interview It's sometimes 15 to 20 minutes and we want to get at the action We want to get about what's on their mind. What's inside their head and get that out into the social world When we created the cube, we wanted to have a conversational Atmosphere where we can deliver real information and john and dave have accomplished that it's not a opinion to the wall barbara walters make a cry style interview It's an interview where information comes out and it's where knowledge is delivered to get john as the mc on one side where he's Asking the journalistic reporter style questions and making you think and on the other side you've got davilante you can go deep on any topic and Really extract that knowledge from the guest and deliver to the audience 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 the more you know about big data, I think the more likely you'll be A cube a fiction out of it's a dialogue. It's authentic. It's a conversation. It's relaxed It's not so much, you know the formal interview You normally see some of the you know the big tv cable programs news programs. We want to be comfortable. So there's a lot of Questions around things that they might not get in depth on other other channel. Yeah, it was very good It was very comfortable and uh, yeah, so they're very good at what they do Yeah, dave's pro and uh, it's a great chance to come and actually talk about what's really coming new in technology Well, they did their homework because it certainly came across as asking knowledgeable questions That I could respond to appropriately Rather, you know often some tangent that I gotta figure out how to respond to Now we're getting into dangerous territory. If I ever want to come back again, they're fantastic, of course It was great ping-pong back and forth a very very quick fast pace really enjoyed it. You guys are just terrific What's exciting about the guests interactions is that's engaging and comfortable We want to make them comfortable And we ask a lot of questions and we go back and forth dave and I but more importantly Having them be engaged so that they feel comfortable sharing some of the things that they feel And the data about certain topics and that's really the key is making them feel comfortable and engaging For the giants, I'm in the garden intelligence consultant within our works And you're watching the I I'm Jim you founder and CEO of bright edge and you're watching the cube in Las Vegas, Nevada It's the cube at ibm interconnect 2015 Brought to you by headline sponsor ibm Okay, welcome back. And when we are live in Las Vegas the mandalay bay for ibm's interconnect This is the cube special presentation. Uh, this is our flagship program We go out to the events and extract the suit I'm the founder of silicon angle joined davilante founder of wikibon.org our next guest assignment khe Who is the link and devops web ideatek at ibm? He's geek In the developer community. Welcome to the cube Actually, we've learned that some of the other ibm events that we shouldn't be saying geek or narrative But basically developers. It's a developer tsunami right now If you've been in the cloud for the past decade, there's been great goodness around with open source Now enterprises are seeing the love and the action and the opportunity So give us an update blue mixes new to the park cloud perspective cloud foundry component It's all done out in the open And you guys are developing as fast as you can talk about what you're working on and what's the hot hot thing right here for you So so what we're working on and what i'm working on in particular is how are we going to make developers successful? I'm bringing their applications to blue mix So in particular Right now if you look at all the all the cloud space, what you'll find is that people are primarily using A target a deployment target for their application. And so what we're working on Is making it available for developers directly build their application in the cloud Without having to do an additional step where they're doing local development It's a big challenge for developers right now. Obviously developers are fickle. They want reliability They don't want they want to have ease of use dev ops has shown that infrastructure as code that direction is totally viable But you got open source, which is a collaborative right model workforce all over the place. So github's done great, you know Sharing code that's now the standard. How does that relate to what's going on in real time in the cloud for developers? Uh developers are a fickle bunch. I think it's um, I think the space has changed sort of 10 years ago you found everyone Using an ide like eclipse and they'd spend their whole day there um You know with the cloud and certain the web certainly what you found what I found is that Developers are now there's a bunch of different tools I think take is that what developers are it's this is hard to do you're a bunch of different tools So they're looking they're looking for ways to simplify their workflows to automate everything that they're doing Um So that they can so that they can build their items as quickly as possible debug their applications all the sorts of things that are part of you know the the Developer life cycle when so I got to ask you the question because this we this is all we talk about with developers Because it's like a new way an old way and then once you're on the the bandwagon There's a little bit of a of a hipster kind of developer faction where it's like, okay I'm used to this this is the dev ops model Everyone's embracing dev ops. So you science seeing a polarization of a couple concepts Stakes Means things you have to have minimum right, okay, and then there's Opportunities live sync is one of those things we were talking before On um, you're working on so break down. What's the table stakes that has to be in place To be truly dev off with blue mix and what innovations is live sync part of the table sakes Is it for the innovation piece and Because you'll see I want to see everything that I've had before and I want to make my life easier reduce the steps that takes to do stuff and Not go and right be be cool So whatever so the way I see it is that yeah, the table stakes are shifting very very quickly um A lot of the a lot of the cloud stuff is very new really It's I mean it was around three or four years ago, but the quality really wasn't there So I think one of the table stakes that's coming along very very Rapply and important developers is the quality has to be there the quality of your fabric fabric has to be excellent and I think is is you know your initial your initial table stakes um by foundational meaning from a foundation Now my concern is primarily the tools. So I think that um Your tools have to make it so that so that you're seeing the truth of what your application is doing in the fabric You know as it started as it stopped is it pitting the CPU all of those sorts of things um And that's so I think that's you're sort of the base level, but um, where I think we go a little bit further Is that you you can run your app in production, but you can't you still can't effectively Develop your develop your app in a in a production cloud and production cloud environment You still have this huge cycle where you have to compile all your code And then sort of hope to the best and so people end up having to set up a production environment a qa environment a development environment And that all makes sense But really, you know, I think live sync is beginning live sync is is is what we have in bloomix. There's other There's other similar plays going on in the industry And and the the real advantage here is it lets you um, you know Understand what your application is actually going to be doing when running running in in the cloud environment And there's also a setup involved around your service in some cases. You won't have services that you can easily Implicate in a local environment. Like can you imagine trying to replicate a my local watson or something like that? So You know increasingly I think that the table stakes are going to be that As a developer, I don't want to have anything on my desktop Uh, I or I just want to I just want to run everything in your in your in your cloud environment Uh, and that's going to be the new game. And what about the what's the attitude to a tool? I mean our developers are they glomming on to sort of their tools. Do they want Yeah, agnostic. Can you make a tool with tooling agnostic? So I love too much The first thing is is that you have to let the developers use whatever tools they want to use And what what I said is how 10 years ago everyone Web IDs Very not web IDs desktop IDs like eclipses and visuals But changed, uh, you know if you five years ago what people were using they were using a state editor Now they're all using sublime text And they what are they doing for for their source controlled? They're using command line tools like git Instead of everything being integrated into an id so I think that we're this sort of this funny point where Developers are grabbing whatever they can to get their get their job done And so the change I see uh as as a person who develops tools Is that I think that we're going to the pendulum is going to swing back and we're going to start to see A lot of these tools be more tightly integrated into like uh into a single cohesive tool to Developers be really productive. So a lot of those If I have a lot of the bespoke tools that we see today will be sort of invisible or or or no, uh, so That may be a long-term view. I think for right now though Uh, we have to support everyone, uh, and we have to make sure that everyone is going to be successful But um, I might say direction, but the reality is is the developers are using buy and emacs And there's been, you know More sophisticated alternatives for a long time. So I don't imagine that's going to change You have to you really have to bring your Bring your cloud development environment to to the developers. So let them use whatever tools they want, but you know As as a trend what I say Is is uh, these things are going to become increasingly Because it's it's a it's a pain right now get a little action on twitter I was just looking at the screen and uh, the tooling thing comes up a lot. So that's really you hit a Hit a nerve there and the whole fabric is so sensitive about tools Here's a really silly example A dark for a light theme and developers are extraordinarily passionate about that and you'll find that it's about 50 The amount of time we spend tweaking Hotkeys and fonts. It's it's it's it's unbelievable Developers really want that customized tool that exactly suits what they want All right, so we know how developers think they're crazy. Crazy is what creates the innovation But now they have to because the tooling is everything. Well, let's take to the next level Explain the the sync product live sync because now we're getting into the complicates. We know developers are like that They like their things neat and their tools the way they like them their hammers and All the stuff that they build with but now when you bring a club a minute You have a build model of local host comes into the environment someone's orchestrating it whatever the This is but now with dev ops. It's simply infrastructure as code There's now this new middle ground that you guys are attacking with live live sync right? Can you explain these to beat amazon? Do they have it? Do they don't have it? What is this is a really cool thing? I want to just expand that. Sure. So as far as I know no amazon amazon doesn't have this Um, let me explain what what it does um A developer is in their code editor And they have the application what live syncs gives them the capability of doing every time they save a change in the code editor The application the the application is updated. Now right now our support support is for for no js applications Where you don't necessarily have a compilation step, but going forward one of the ideas is Um to as you make a change incrementally compile compile compile the The code and and uh and figure out the best way to put that into the into the running environment So, I mean there's similar similar offerings where you're you're effectively mounting your development based directly in your running application But this is really a little bit different different this the idea of live sync is to is to Is to put this in the flow of everything that's involved? In getting your code from from from the developer who's making the change through through potentially through a a compilation step a minification step, you know A transpilation. There's a zillion transforms here and directly into your running application And how was that managed so it's the what's the how do you get visibility into that? So and what are the metrics around that? Well, first off everything we do in the web id we've got metrics So we really we've got a good idea of what what the user is doing And likewise if you there's a there's a the there's a command line client for for bluemix live as well And we know so we know what how frequently for example a developer is saving how frequently they're making changes how frequently that might result in Leaving an incomplete file something that isn't going to be valid javascript or valid html The but but apart from that I mean The way to think about this is we're trying to replicate The developer's experience on the local desktop. So there there aren't there aren't actually a ton of analytics around exactly what the developer is doing because Probably because that's not the point. We're just trying to we're trying to move the developer from their app To developing into the cloud and so that's more what we're measuring. So the metric is happy productive developer. Yes happy productive developer was a developer able to take that Angular sample and uh a meter that up and running in the cloud Were they able to take a sophisticated a larger Skated application and hit the deploy to bluemix button and Slowly created a development environment where they can begin to hack and make changes And see what see what see what the app Cloned is all of it. You know, we always like to talk about you know fashion and tech What's fashionable? What's the new? Suit if you will a new flavor You know wine that the developers love is it is it erlang you mentioned some of the you know Sure, I mean some always the favorites pop up some are trending some are relevant Shared just for the folks who aren't inside the ropes. Sure. Well, I mean obviously I so I work on the on the javascript javascript standard. So I think javascript is It's come a long way, baby But uh and node is doing well node well and with the node foundation. That's a huge step forward It alleviates a lot of the concerns, uh, you know, some of the larger companies like IBM Microsoft might have about using note other languages. I'm a polyglot. I love languages. Um I quite like go. I see go being used a lot in In places like docker and certainly cloud Java is still And node is brought to the server side. So that's changed the game a bit on the real time side And Redis Docker these have emerged as awesome new things for cloud So I think uh, so right now everything We're doing is is uh for live sync is for cloud foundry, but that's that's going to shift into into the docker space Uh, currently developers are creating these little mini sandboxes on their local machine using vagrants and docker and so What I see going forward is we've got we've got to figure out The same thing in in a cloud environment if we want to make our Our lumix developers successful So when what is the mindset of the developer because you know when you get to the front lines Developers have to be closer to customers, which you know back in my day Right, you keep the developers away from the customer now you're getting closer to design's a big part of it But also virtualization is a lot of good stuff going on in virtualization that's changing the game Could you like take us through the the current state of the developer mindset that's relevant around how they view these things Do they not care about version or they care about it? Do they care about them? Do they have the housing customers? Yeah, are they more have more affinity towards customer interactions? Can you share kind of how that's evolving so I can't Exactly to the customer, but I can tell you talk to you about the developer minds around virtualization I've been developing software for a long time and I used to always do everything on my on my local disc And then and then started to have to you know deploy my applications into an environment that really was Less and less like what I was running on my local disc and that's when Things like virtual box vagrant They came in and you know and vSphere came in and became important because I could then Create a virtual environment similar to what my production Was the problem with that is it was ridiculously heavyweight? and if I was if I was Developing more than just a single server it became a real pain And then so then tools like vagrant came along and docker like I think Docker was a you know an old suddenly became hot And time was timing was pretty critical timing is always All too how they use open source by having that contribution to recycle in right yeah Timing is everything as they say right timing is everything what has happened. Yeah, I mean Uh docker came from nowhere to like huge same thing with node nowhere Like ryan did you did ryan really see that this was going to be something that was going to be he's one of our most all-time Cube views of all time that ryan ryan doll. You know that really just add eat the rock star. So uh, I mean Yeah, it's what incredible and it kind of but it's to the you know Jeff jones term the observation space the bigger space of developers now that are You know can play in that in that field Simplification You bet It's really exciting from a developer standpoint. I mean yes and no right some of the art You know the old the old school's like oh well back in the day, but Think about the innovations that are occurring. This is awesome. Like I can remember Um, you know java web apps a long time to install things like a server and all that sort of crop wasted now Now it's like go get the docker image bang. You're done. So I just I just see more There'll be something like the next docker that's going to come come along and I just I bet it's It's adoption cycle will be even faster than what we saw with what why do these things happen? I mean we always speculate you want to get your opinion more. Let's see. Am I can't we say it all the time? Why? Bring up. I mean like grow like a weed Okay, because they save time they save time. Why did docker? Become so so so in fast so quickly because it saves time and it saves resources When if you were running virtual box under machine these things were heavy weight You could only run three or four things on a really big server now with docker. You can run a ton of these things And so it just saves you a time saves you resources You know it lets you lets you get up and running and coding faster Changes have them reflected in your production environment quicker. So that's why these things So the question I always ask the blue mix guys that we talked to our engineers on because we're on amazon heavily is Why blue mix convinced me to go post most people like wow. No, I'm comfortable with amazon. I'm talking blue mix It's kind of new, you know pivots involved, right? So all this kind of having going on bottom lines I don't want to get screwed right. That's kind of a psycho. I'm paraphrasing. Obviously no one says that but that's kind of a mindset Um a developer because that's what the way they think right So I mean what's the comfort blanket that you guys can offer them a little blanky or but Well, I mean what I can say is is the way IBM works with these these first off Cloud Foundry and and work with docker. We're working directly with them. We're not just using it and Isn't it great. We're actually right some shots behind you guys putting some energy in that huge Yeah, and a lot of energy a lot of uh, and the reason that's important is that Um, we can go in and and then get the changes that we want That makes sense for our customers In that environment So I I think that's a huge advantage a great lift to rise in top After all boats right that open core kind of open source model, right? The other thing is is that blue mix is not one thing It's not cloud foundry. It's not docker. It's it's I think uh an ideal I can't actually I don't work directly with it with the fab routine But I don't think of blue mix is just I think of it as as the IBM cloud IBM's version with a little bit of stuff from the cores, right things will come and go and uh, and uh Well, I think people don't know about we'll share here six. I mean cloud found is an open source initiative Other foundations independent. So there was they started with the Which was people kind of like um, but what happened was all maritz gathered folks around IBM one of them Yeah, we're going to create this foundation of governance. That's proven right and that was the stability that was needed since then It's been explosive. That's right. So we have our guys go and work directly with that with the The folk from pivotal and it's uh, you know We pair with them and they pair with us and it's not it's not We actually are very very very uh in an interleaved fashion with Change the two for that. I think um, okay final question. Um, what's next? What are people? Not talking about that they should be about from a developer standpoint I also Being thrown around by the big guys You know the the mantras ship with ship with code lead with code is still open source paradigm What should people be be looking at might not be paying attention? It's not that sexy or might not be written about on the blogs or whatnot. Um I mean I'm on the same point again The big change that's that we're going to see in the next year or two Is the developers are going to stop doing our development locally They're going to do all of the work In the cloud You know just at home. For example, my wife If I install Docker and vagrant and all that crap on on on my machine at home. She'll freak out To put that on additional machines and that's a hassle. I have to manage that so The the big big change that we're going to see in the next year or two is Frizz are going to move all of their development off their local machine into the club Simon ke thanks for joining us on the queue from a developer perspective great insight great to see you Bring that historical perspective and what's on the mind of developers here at the ibm show in Mandalay Bay This is the queue. We'll be right back with more signal and data to share Here we're open source media. We love open source. We are media developers day We'd love to pump out that content and share with you It's opens free no wall garden go to silicon angle dot tv go to interconnect go for a new digital experience A new experiment that's going on all the trending items all the vip influence all the data's there great experience Look at the live streams. We're part of that. This is the cube. We'll be right back after this short break It's one scene three open port 2201 seven 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 It was my first time on the cube. It was fun. Do it again. Do it again I think uh, 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 uh, there's no filtering of questions I was not prepped other than saying go and get up there. So it was quite good 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 the, 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 it's great to get those questions. You'll be able to ask them Like I said, you know, I love the energy. I mean, these guys ask good questions and uh, 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 It gave me an opportunity to hopefully share with the people watching Um, you know some of why we're doing what we're doing First time on the cube was fun. We'll do it again. We'll do it again. Yeah Yeah, I think uh, what I've come to find, I think my second time on the cube is I mean, it's just such a real time high energy experience. It's very good because uh, 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 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. Good. 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 it's great to get those questions. You'll be able to answer them Like I said, you know, I love the energy. I mean these guys ask good questions and uh, obviously not only them It's the uh, 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 core sort of, you know, answer those tough questions It gave me an opportunity to hopefully share with the people watching Um, you know some of why we're doing what we're doing I think uh, what I've come to find letting my second time on the cuba is I mean, it's just such a real time High energy experience. It's very good because uh, there's no filtering of questions I was not prepared other than saying go and get up there. So it was quite good because I didn't 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 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 uh, obviously not only them It's the uh, 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 core sort of, you know, answer the top questions It gave me an opportunity to hopefully share with the people watching Um, you know some of why we're doing what we're doing 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. This is the cube for IBM interconnect Go to interconnect go.com for the social experience go social new theme this year Everyone is in there all the vip influencers that had led by Veronica Belmont The cube is headlining there. We got crowd chats with all the crowd data That's where all the social actions happen If you're not if you're watching this live stream you want to go in and interact and engage go there I'm John Furrier with silicon angle join Dave Vellante my co-host our next constict Baylock GM IBM power systems. Welcome back to the cube. John's great to be back We'll have a chance to chat with you guys. We love chatting with you last time power systems power rate You know, all this is going on is a transformative market big stakes on the table by bm Give us a quick update on the report card. Are you happy with the results? What's happened? What's happening and where's the vector for you guys here? Yeah, great It's been a busy 12 18 months. In fact, you remember when we chatted a little over a year ago We were sort of just at the cusp of announcing power eight before that. We were making promises goer, right? We're bringing Linux to the platform. We're bringing Watson to the platform We're bringing kvm power. It's going to be great And then we started really bringing that to market in april of last year, right with our scale out servers Followed by in october our scale up server, but it's not just about the hardware. It's what those Systems and solutions do to really help clients attack the big data problem and and move into the cloud and open power Oh my gosh, I mean if you would have predicted a year later We'd have a hundred members of the open power foundation back up on that. Let's just take us open power where it was What was it? What was the genesis of it? Just take us through quickly because the trajectory has been pretty impressive Yeah, it has adoption is endorsement is you know when a barney deal you see a few people hanging around I really love each other when you say that kind of adoption That's just take us through the genesis and kind of that how that's kicking out So the genesis of open power started really back with an industry fundamental that the days of morse law are gone Right, which used to be because of technology benefits Transistors would shrink and therefore you get double the compute capacity every two years. That was the premise of morse law So really applications saw performance gains every generation of system Laws of physics are now causing that to change and what ourself google melanox tie-in a motherboard company and in nvidia Saw about a about two years ago was it needed to think differently about application gains So we got together and we said, you know what it's going to take a community And what does that sound like that sounds like open source software Why don't we open source the hardware platform for the next generation of cloud? And that's where it began the journey of the open power foundation So over over a year ago we had five members with a vision And now since then we formed the open power foundation We kind of had our coming out party in april of last year around that and as you said the membership has grown to over 100 members But it's not just about membership It's about real things happening in the industry and what timetable was that 100 members now over 100 just uh Just a few weeks ago here at partner world actually we had our 100th member a business partner sign up. So, uh, It's amazing. It's a quarter of a year or two years Eight months. What was the time? We formed the open power foundation in december officially as a legal entity december of 2013 And then here we are just a little over a year later with 100 Industry significant names too, right? That's big big. Um, but as I was going to say it's not just about membership It's about what is the membership doing to innovate? Yeah, so in that time period you've seen us with Nvidia and melanox bring out systems to market that the department of energy in the united states have chosen for the next generation research labs Things that will be deployed in 2017 that are fundamental breakthroughs in the way in which uh, you know dv department of energy research will be done So two out of the three national labs will start using the power roadmap with our partnerships of open power to progress for We've seen cloud wins In significant cloud vendors besides the work with google obviously that continues as chairman with ovh in europe One of the largest cloud providers in europe and recently in december Rackspace announced their intention as a member of the open power foundation That starts shifting from intel to power Leveraging new work around the open compute platform bringing power aid into open compute So but the other day all comes down to apps, right? So it comes down to apps. What are you guys doing to sort of Enlist that application ecosystem maybe talk about some of the changes that are going on Yeah, so one of the fundamental uh decisions we made was to as we bring linux in a first class manner to the power platform To make it the same the same the same So it's kvm just like, you know, kernel virtual uh kernel Kernel virtualization across the intel platform It's little indian linux a little bit gorpy, right? But what does little india mean? It means that applications written on in on linux on intel will now move without change to linux on power And that's a huge opening up of the aperture So my conversation with isv has completely changed david completely changed It used to be a paid a port model now the porting is the easy part and they're figuring out new ways to optimize around power That gives them an advantage over their competitors an example would be redis labs red is very popular You know key value store no sql in the cloud They've optimized around power eight with linux. They see a 24 to 1 consolidation benefit of the number servers needed on power eight Versus intel y more memory more memory faster memory faster access to data So let's let's talk about that. Let's stand at business value for a minute So i'm consolidating right that means i'm throwing what less cores at the at the same servers less cores Less energy easier to manage less people less less less Okay, and that ripples through to my software license and maintenance all those costs all those things It's huge cost savings. It really is and again 24 to 1 sounds like well I have one rack, but if you think about the cloud model This is racks and racks of compute racks and racks of data centers that people are deploying for these new data rich applications So when you can consolidate 240 to 10 you know 2400 to you know 100 that's a that's a big savings Well, I wanted to ask you about the apps the the workloads too So you talked about you know gave an example a department of energy a lot of r&d stuff going on Yeah, there's big data too. That's right. Um, I wonder if you could talk about what you've done with dv2 blue Yeah, um and other sort of analytics driven apps absolutely And you hit it right on the head the sweet spot for power in the marketplace is big data Whether it be delivered on premises or in the cloud and now the software cloud Why big data is the way in which the power a processor was designed for big data? So the kind of apps we're seeing clients look at is things like in-memory databases dv2 blue is a great example Which was optimized when it was designed starting three five years ago for the power architecture for the power a architecture Ourselves and dv2 blue had a great year last year in terms of new footprint placements to placements Displacements of oracle and other competitive databases So that combination of benefit where we see 82 times performance gains 82 times when you can do analytics 82 times faster. It completely changes clients business models You know that monthly report you used to do you used to dread doing you can now do it almost real time almost daily Right because it's available to run that much faster. So dv2 blue in-memory big place for us But also the unstructured data whether you look at, you know, mongo db I talked about redis labs that whole sort of set of uh unstructured data structures run really really well I'm going to some power that is the sweet spot for power 8. Well, it's it. I mean, that's a tailwind for you guys because Ever since I've been in this business people underestimated the amount of data Yeah, that they're going to have to ingest and then now we're seeing the curve steepen steeper. I mean it's early days still, right? Yeah, it is early days. So What's happening? I mean, it's amazing to me people have said I mean even spark right spark is still going right People said sparks dead powers dead, but now there's like a resurgence. Why why is that? Why are people looking for that alternative? Yeah, it's it comes back to Yeah, I started with this discussion around Moore's law where you know intel has been sort of on this path of you know They own they believe they own the server market and they're the single innovator, right? They're the only one making gp out of the whole thing, right? But the marketplace is looking for best choices, you know best choices as they look for how to integrate that stack around You know addressing the big data needs power is a great choice for that Right, but we had to change the way it was to consume so you can still buy and will buy forever, right? A power each server and the roadmap from IBM, but opening up the aperture through the open power foundation Let's the ecosystem build out right so open power is not just hardware companies It's software companies system companies. It's IO companies and its clients Who are sort of building out that ecosystem and star bursting the benefits of power? So that's a big business model big business model change, right? And really the only one out there with that business. It's kind of similar to the arm model you could argue How we've sort of taken our you know the arm model and said, you know, let's apply it to the enterprise space, right? Right, and so okay, so you got you got that going and now Where do you see this all going Doug? Where do you want to take it? What's your vision? Yeah, so I think you know if you look at all we've done last year to transform the power business We opened it up we repositioned the conversation We brought power eight solutions to the market and we did that in stages, right? We did the scale out first one and two socket systems in april and how did that do so in you know Second quarter was a transition quarter third quarter last year We started to see single digit growth in our scale outspace fourth quarter over 20 growth In fourth quarter, then we introduced our scale up systems our sort of large footprint entities, right? Much more of our traditional capability and that was a transition quarter and fourth quarter So if I put it all together, I think 2015 is poised to be a great year for the power platform We've got new trends of workload through the open play We've got our full portfolio out there with the power eight for scale out and power eight for scale up And we're seeing you know wins as I described in linux and in the open power foundation So I couldn't be more excited where where we find ourself coming in the 2015 Okay, so if you had so you got scale out system scale up system in the overall power platform Those are the key high level conversation. That's right mark. So you're saying what's that for you right now? What is the top conversation you're having with customers because yeah, we want to try to Join the conversation. That's what everyone says join the conversation What is that conversation right now that you're having with customers with partners? That is the most relevant. Yeah, so it really comes back to what we've hit on already In fact, I'll reflect on my meetings, you know from today and yesterday, right? Keep the quarters come on. Yeah, it really comes back to two topics Which are top of mind for clients one is they are all drowning in data They're trying to figure out how do they get business value out of this volume of data that keeps coming at them faster and faster And do they have the right infrastructure to deliver analytics and insight around that data? That's one problem area that we are having lots and lots of conversation around and power is a great fit for The other is the conversation related to that of do they deliver that services on premises? Or do they deliver that services in the cloud? And then the fact that they can now with software in addition to our other partnerships wins Start to deliver that power set of systems of engagement and systems of insight in the software cloud That sort of starts to stitch it all together from a hybrid it no one talks about how they collect the cash for that value that they create But but this brings up the good point systems of engagement from the systems of record Bapachiano is going to come on tomorrow. I'm not really kind of you guys are the first ones to really nail this He coupled right completely different So big data drowning in data data lakes are very powerful. Okay, smart people talk about the data ocean, right? That's smart people So we've just got google actually validated on the top of the google so they were like well data lakes are batch They could be big like like the big lakes, but oceans are unpredictable. You can predict some weather forecasts, but you never know You never know time in processor analytics, right? So those two worlds are going on. What's your take on that? I mean That's a big thing. How is how are you guys going to keep up with that for the customers? Yeah So it comes down to gotta go out the ecosystem You know, it's funny as I've had the power strategy conversation with hundreds of clients over the last year Honestly, I've never had a client say, you know what dug? I think your strategy for power is wrong But at the end of that conversation what they do say is okay I'm with you dug now. Let's talk about my applications. Where are my applications? Yeah, what's in there for me? How do my applications are they poor together? They optimize yet and the good news is we've made a lot of progress We have over 1200 linux isv's on the platform growing every day We have hundreds of thousands open source packages But again when somebody hands you a list of a thousand isv's chances are right now There's still a few missing and we're knocking them down one client at a time in terms of what's missing in that list Some from IBM some from the industry. So the great news is we can see this building We can see the momentum building, but it's back to the isv's and the software So without that ecosystem, you know, you're left there with a great platform You're going to cul-de-sac with no cause, you know, I gotta ask you though So as a patriots fan, it's it's good to be lucky. Yeah, and it's you know, and it's good to be good It's good to be good. So you're good or you're lucky It's sort of both but so I've seen the stats where you I've seen all the systems lined up And z is the most reliable most available and then powers right there next to it and sort of everybody else Are the requirements changing? We talked about data. That's fortuitous, right? Or did you guys sort of deliberately are you are you building things in to affect that change? I wonder if you could talk about that. Yeah, so as I sort of peel back the three systems We thought the systems of records systems of insight and systems of engagement Underneath each of those are different system requirements from a hardware standpoint to be successful in those models, right? It's not sort of good, you know one one cookie cutter, you know size kind of the third one system of engagement system of record and systems of insight Right where the analytics runs John So if I think about each of those there are different characteristics of how those hardware systems are built You know one one example has been you know as we've worked with these various cloud providers They each have a standard for their data center each of their standards are different by the way Which is why it was so important for us through the open power foundation to enable this whole odm market So as we bring power to software, they're going to source servers just like they sourced at x86 servers today Not through my vm. They're going to source it through the odm's in taiwan Right, but it's going to be their standard for how software data centers works Software data center rack spaces I mentioned a different standard. They have the open compute model google They have their own standard, right? I mean you just got to go down the line and standards are meant to simplify operations for a data center That doesn't mean it standards across everybody And I've got to be able to have power being each of those standards Part of that goes back to what's going to run on them if you're going to run engagement applications and software Those are going to have different hardware attributes different system attributes Then that system's a record that you know Really the final version of the truth that sits on a client's floor that they're not willing to let that data go So I've known you for a while you you're not afraid of competition Um at the same time this industry is the it's the co-optition question What are those discussions like because it's really interesting you're selling the cloud providers You guys are going at it hard with with with soft layer. We live in a really interesting, you know business these days What we do in part it's like a cartel other times. It's like this, you know, gorilla war What's going on? What are those discussions like? Yes, you know the thing they find with ibm is I mean we've been at this for 103 plus years, right? So I mean we've kind of matured our approach to how we deal with co-optition There's no doubt the cloud companies i'm working with as I provide technology to them They some of them do see soft players a competitor But they're also all looking for ways in which they differentiate themselves all of them having just a generic intel approach That's not going to cutter for them in terms of differentiation So that's why having a different set of infrastructure that has more innovation through the open power community Will allow them to differentiate themselves more So my view is those who move with us faster will see a first mover advantage Yeah, so put it out there and let everybody compete on the merits of their own sort of strategies assets Absolutely And the more uh innovation I can help create through the community The better choices that are provided to the cloud companies in terms of what markets are they going after what clients are they targeting And how do they take advantage of this sort of uh lego approach to the innovation? So the I want to have the open source discussion too. I mean, I'm obviously has a lot of credibility Right when it comes to open source, you know linux sort of I guess started it all and yeah, and we've seen a lot more since then But the but open source and the hardware side's a little different It is a little different you mentioned, you know arm is sort of a similar model ocp I guess is sort of an example, but yeah, but so how has that been? What have you learned anything surprised you about that? Uh, you know what I think the only thing that surprises is probably what we knew already Which is you know, we're sort of always well who's going to take advantage of open source firmware? So we've released the firmware that makes the power 8 server, you know run And we said well, who's really going to grab that and now you say well all these odm's in in the Asian market who build servers are Grabbing that firmware to customize it for the servers they're building for the cloud market So, you know, we basically validated what we knew already Although it's sort of new applied principles in the sort of the hardware spaces open source does win at the end of the day Open wins close. It was perfect for the odm's who don't have the development resource or the historical Perspectives to really be do that now, of course open source to get open source to expand your market Which is right one of the benefits the other is sort of reduction And and and expense r&d expense well and the other is security and confidence right because it's fuel Completely transparent There's certainly no shortage of discussions that we can all read and press headlines today about countries and companies That are worried about the it the deploy and how secure it is So having an open source where it's fully transparent allows them to innovate on top of it But also completely see what codes being so that's the fact that it's not a black box That's right. It's making certain factions more comfortable. Yeah, I mean one of the successes We've had has been power 8 and open power in china Right if you think about things that have been formed there the china power technology alliance They formed a whole alliance around companies in china to leverage open power Because of the focus there on localized it and security It's a perfect fit for that market, right? So if you think about open power really three markets the cloud companies we've talked about Technical computing we've seen with our department of energy win And other companies like that that'll be coming and then the the localized indigenous development Which we see in china is kind of leading that conversation So those really are kind of the three use cases around open power cloud technical computing and localized it So talk about the system of engagement. I'm stuck on this in my head. I think this is a genius strategy Insights come from all this right, but they they work together. Yes What does that mean for a customer? Is it to the edge of the network? Is it internet of things? Right? Is it? What is the Endpoint of engagement because the data is different, right? It's why we're riffing on this whole ocean thing because yeah, like it's not just the lake It's like there's a lot of real-time stuff happening in memory, right be slow fast Yeah, so if you think about and you know, we've talked about this a lot here already at the interconnect Which is if you think about a sort of a blue mix application that's going to be kind of the framework by which you stitch together these rapid pieces, right? There's a tremendous insights into a client's existing database about their customer set They're buying patterns, right their history of investments, right all that stuff sits there And they want to marry it with the world of social Right, they want to kind of take that history and mobile all aspects of connected data Right, and so what we've announced is within that blue mix application set You can now connect quickly to that back end through a set of blue mix connectors that rapidly expose that data If you want into a blue mix application that pulls from the history That pulls from the records a final version of the truth of the customer data with that Social mobile world data that exists of sentiment analysis out in you know as we struck the relationship with twitter as an example Around data, so it's a great way to kind of stitch these things together and create a whole 360 degree view of a customer And that's a huge trend we're seeing just bringing the the transaction systems in the analytics together and obviously need a hardware platform to enable that Well, you need a variety of hardware platforms, right? You need you still need the system to record that are you know Sitting on a client's floor today that they're you know that sort of you know have their arms around right? And then you need the engagement system running in the cloud that can scale up and scale down very rapidly right with full transparency To run those engagement workloads, but you're different workloads. They're just connecting to the back end You know I was telling the story on my way here yesterday. I had to pay my visa bill So at 30,000 feet in the air, I'm clicking on my my tablet connected the wi-fi in the plane and paid my visa bill Of course, I could be sniffing the signal on before because out of the wi-fi, but again that's the security brings out security in memory Well, but you know you got to have that secure connection So the way it matters Infrastructure matters absolutely so as you connect to the back end you've got to have got to be smarter infrastructure, Dave I think I think I think the land grab is this engagement discussion because that data is changing In fact, you're in all kinds of geo data Jeff Jonas is always on the queue right geospatial the diversity of tsunami of data coming in at the edge Is ridiculous. I mean so I think huge opportunity and then marriage with the data that exists Yeah, it's a great marriage point right there. Yeah, so how do I get the real time get the old data from the data lake Into this real-time layer. I think it's a huge opportunity. I think it's going to be a great You guys are on the right track. I still it's wide open. I mean, it's not even wide open first inning in my opinion Okay, cool What's the coolest thing you've seen around the power rate open power Power systems with customers that you could share the folks out there anecdotally. It could be like use case Experience. Yeah, so a couple examples from two to recent meetings And you sort of know you've sort of got the starburst in effect So I was over in China a couple weeks ago meeting with a variety of customers and provincial governments To my surprise we're sitting down one of our one of our partners there And we didn't even know they brought out a whole hey, we're going to launch this family of open power servers on power eight Didn't know it didn't know it was coming. It was it was like great. I mean it's just you're here. We're just letting you know Yeah, yeah, right. Thanks for coming, right? And so, you know, it was an example John of how When you're in this community things happen without you having to know about it And that's what sort of creates new innovation another example was that two weeks ago I was here at partner world I was meeting with one of our largest distributors who's a member of the open power Foundation and they had a sort of new senior leader in the meeting with me who was asking me questions about open power Before I could start answering his own team started pitching to him Why it was so important for them to be in open power because they could bring differentiation through package solution off So they're excited Yeah, so again my two examples are making the point of this thing is starbursting out and it's starting to build on itself Without ibm having to sort of shepherd everybody around which is clearly the major success in my mind Well, Doug, thanks for coming on the cube. Really appreciate it. Spend the time What's your plans for this event you back the back the back briefings? So you're gonna you can go see aro smith. I am absolutely going to go see aro smith You know having grown up with them. It's uh, I think we all have right I'm really looking forward to that. But yeah, it's it's a lot of great Live band here for their party. So just fyi. Yeah, awesome. It's a lot of great climbing So I've already had some I can't wait to have the other ones I mean we really are hitting that stride here with power and I can feel the momentum john and david as we March our way through to 2015. It will be the year we grow I can see you guys have taken a lot of hitting the press on the financial But there's a transformation you get some minutes take a step back to go forward But you know messaging is great, but then it comes down to delivery. Like you said, that's right. Everything's hanging together Right. I want that suits on the rack. I want to buy that that looking good looking good off the team middle of the fairway Now it's it's it's time to deliver the final results, but we're well poised after uh, really, you know Challenging your transformation last year, but uh, I think we're through I think we've got the message out there. We've got the right offerings We've got the partners engaged and excited and we got clients coming up with bold ideas Well, you put the pieces together. I mean we were sort of rattling off before linux red hat, you know kvm Open stack for management. Uh, I mean a lot of the pieces are now there, right? So that's gotta be it's gotta be satisfying And you help write a lot of the the plans and strategies right, you know and you see in the comfort fruition So we were talking earlier. It's you know when ibm takes sometimes sometimes it takes a while But when you guys focus you go after it hard march on that on that line Final question just has we got a little more time here I want to ask you just kind of as an industry vet participant ibm executive been there done that through many cycles What's your feeling of the impact of open source? I mean ibm has been involved in open source It could be going back to gen one so i'm going to argue what gen one was but you know i'm going to be 50 this year So, you know remember those early days, right part of that with linux, etc It seems to have changed the world. Yeah all aspects with open power again one data point We were just at a big data sv our event with right with the hadoop world It's everywhere. It's now mainstream tier one, right? How has it changed the world from a business model impact? And how do you see it continuing you see it's not stopping or what's your take on that? Yeah, I I mean open power is a great example of how it's not stopping and finding Ways to bring that open source software model into the hardware business So, you know new business models being created around this and that's kind of the trick I mean, yeah, it kind of starts around a technology idea of how to get sort of pervasive community adoption and innovation around them But it's also requires new business models and that's what we've had to do with open power You know, not just the technology part, but how do we create that ip licensee model, right? That allows for derivative rights and derivative manufacturing and the whole open source of the firmware I described And what do you put in and what do you put out? I think, you know, we've at ivm sort of taught ourselves time and time again that as I mentioned earlier open wins and closed loses And we're seeing that example and for a multinational global company like ivm to be so driven by change by open source You got to look at that and think you can't help but think like, you know The movement of the decade or the century or the century is open source. I mean, it's just ridiculous how bad how awesome this is creating disruption You know, a lot of folks look at ivm and you know, look at us and say, well, geez, you know, how come you guys can't do it all? I mean, that's just the world of it is moving so fast right now with bold ideas under millennials, right? That are 20 some years in age. Why in the world would you want to say? No, no, I got it all I can do it myself Thanks for asking you really want to open it up so that you get just this incredible uh Swell of innovate lift occurring economics. Well, we will give us a dig couldn't make last week's our event because he got snowed in But last week we made the observation. Why are these new foundations working? Right the old pure open source like the red hats are pure as we all know that but they admittedly sit on the cube but That's never going to work some open source dogma could be well This is never going to work is it we didn't do it before that way j boss or whatever right? Yeah But now they're working so the thing that we're watching is is the evolution of always connected Mobile social does that change the transparency equation? I think there's no place to hide I think it causes it to move faster I think that's the reality check is when you have so many trends hitting you at you know an amazing speed, right? Data cloud, you know social mobile security all those things coming at you Man, if you try to do it in the troll traditional waterfall model You're dead and you've got to experiment. You got to move fast You guys you guys among other things will be will be brand. Oh, they're trying to hijack something But when it's done in the open, there's no place to hide. There's no place to hide So that and with the acceleration no place to hide. It's truly in the open So to me, I'm looking at that trend saying, hmm I think open source concepts will escalate and change So we're watching all these foundations and then you can build value on top of that I mean there's still plenty of room in this space for value creation right on top of open source You see that every day on what clients do and what we do to take open source And then add that next layer of really industry oriented analytics around that as an example And we would always open stack cloud boundary. Well, we didn't comment on yours But those two in particular when we saw it become more of a marketing program We were like very hey, you know in the queue Don't go that way and what happened was ship with code Right ship with technology what you're doing with open power that changed the game for it's a game changer You know, it's just changes the argument on the conversation It really has Doug great to have you on the cube as always. So this is the cube. We write back Doug Bailov gm of the IBM power systems division Here in live in Las Vegas. I'm John Furrier Dave Lauderdale. It's the cube in the go social lounge where it's all coming together Trending hashtags trending stories crowd chats vip influencers. And of course the cube will be right back after this short break 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 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 beat the number one seed You just have to win 70 percent of your points at net and keep unforced errors under 10 percent On the IBM cloud the u.s. Open and 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 Cube alum is our term for someone that has been on the cube And it doesn't matter if you've been on the cube once or twice or nine ten or 15 times that we have people that fall in all areas Of cube appearance frequency But what is important is that you've been on the cube and you are a tech athlete You're cut above everybody else in the industry Yeah, this is my first time on the cube It sure is It was my first time on the cube it was fun That was and we covered all six sides of the issues That was great rapid fire. Let's talk about what's going on I actually enjoyed it. I think it was fun. I like the the back and forth being with two people who obviously are very experienced professionals knew how to carry the conversation I think quite frankly knew how to make me look good Oh, it was a lot of fun Fast-paced moving lots of variety of topic. It was great They made it very easy for you know, for the first time we're there in the cube It felt like those are the SPFs Love being on the cube. I think it's great interactive discussion. It's not often you get to sit with People of the caliber of john furrier and davilente and actually have these kinds of conversations So I I appreciate the banter and the discussion and the fact that i'm talking to Some guys that really understand where the industry is at 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 It's awesome as it was last time every time I do one of these interviews I always have a new take on all the concepts. I've had about What my products can do I like it a number of people have approached me after having watched cube videos There's also a linkedin group. That's very active, which is something i'm on. I do enjoy that Well, I love davilente obviously No, it's it's it's been great to be to be here. It really gives us great exposure People take it seriously. I get emails from all around the world after we've done this A lot of our shareholders watch this for Hopefully to get some inside information, which of course we never reveal But but we do have a great audience that follows us on this Oh, it's it's a great group to be a part of you know, it's it's funny because either john or dav always mentions it every time I come on and we don't quite have a secret handshake yet, but I think we we need to work on that It's very popular in the company. We work to get on here I hope you know that Uh because the people that act in and I mean senior executives all the way down to pretty much every person in marketing They see this is one of the real highlights for us each year I'm on the road all the time. It's all I do to talk to people and this is one of the premier premier venues And uh platforms for us to bring our message tomorrow. It keeps a lot of fun. It's uh, you know ESPN for tech I think uh tech's evolved to the point where you know, people want to understand the personalities behind the technology Uh, which probably wasn't that interesting 20 years ago I think they they made 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 You know, I love it. I it was actually telling uh, john and dav every time I come back to the cube You guys have new toys new cameras everything's getting bigger You know having been on it for several years almost from the very beginning. It's uh, it's always great to be back It's about connecting with people And that really is what it's all about 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 These days the most important person in your business could be a software developer Sounds the upcoming. We've got to make something great How's the upcoming we've got to do it fast Let's do this on bloom mix. You can build apps with analytics big data even ibm Watson That could give us the edge. Let's do this on bloom mix. It can provide code for you We could be first to market Because being best is priority one being first is priority one There's a new way to work and it's made with ibm Can data help cure a disease the right treatment for you is out there The problem is some of us in this lab some of us in her head some of us in this new journal And the rest of it is in your personal medical history ibm Watson can not only read this data, but understand it It's trained by doctors and it's always learning It can help find hidden correlations and help your doctor recommend treatment options for you There's a new way to work and it's made with ibm So the cube is starting to do their own events now and it's really like the next step the next evolution of the cube and Really it comes as a response to The fact that we break markets more than we break news and there are some markets where it's underserved by the existing Events infrastructure there's not enough events covering things that we're covering And so we felt it's time to step out and maybe provide a venue for that ourselves I think the cube throwing is an event gives it its own identity. I think it's different from other forms of journalism I was on the road so much, you know, if you're spending, you know 20 hours a week in hotels and airplanes and such it just ended up my goal was to bang on a chapter a week So it took about four months or so to get it done This is an amazing segment with our friend and gas cube alumni bill schmarzo big data Understanding how data powers big business read this book. It's really great. Our second company launching on the cube Tell us what your company's doing launch your company go today. Paxata is launching the industry's first adaptive data preparation platform We're also going to be announcing three very important and strategic partnerships with Tableau click view and cloud era I think means the company is building and growing and I think the model is working So big news you guys here have an announcement. You guys are working together on a partnership Let's explain it. What we're doing is we're really combining two great solutions So that customers that want to take advantage of big data or any data their information Can do it seamlessly It just makes sense that you can have a single environment Where you can do anything you want against the data. What are you guys doing differently? Like for instance, are you guys looking at things like bitcoin? We are and so actually we are gonna in maybe you are looking at bitcoin We're actually going to start taking bitcoin at our stadium and I think that'll be a nice Obviously appropriate way right in the middle of silicon valley with a lot of very tech savvy and tech tech forward fans Um, it's a kind of you know adapt to the most recent innovations that are out there I know we are almost at the tipping point or how do people consume content? You know the the traditional sort of just what I talked about static brittle rigid make a bunch of contact pack it up Let people see it in this whole time window. That's breaking down It's the more like you guys do more continuous content creation and let people stream it into their into their lives At will Vice president of research the technology business research and you're watching Senior vice president of storage at oracle corporation and you're watching the cube Hi, Russ Stanley with the san francisco giants managing vice president of ticket sales and And you're watching the queue. Hi. I'm evan powell ceo and co-founder of stackstorm and you're watching the cube I'm kelly right executive vice president of sales at tableau software and you are watching the cube Barbara just bought a bike. She wrote a tweet about it You can't learn much from that But take data from millions of tweets combine that with your company's supply chain and sales data Apply ibm analytics and expertise and all of a sudden you can learn which bikes to build What to make them from where to sell them Because Barbara in the world just told you how to build a better bike There's a new way to work and it's made with ibm. How do you beat the number one seed? You just have to win 70 percent of your points at net and keep unforced errors under 10 percent On the ibm cloud the u.s. Open analyzes 41 million data points from eight years of competition to one have a 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 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. It's interesting the the ted conference the eight thousand dollar ticket annual conference Used to be amazing material amazing talks 18 minutes long But you could only see it if you bought a ticket then they started Making the talks available online And the argument was well, then who's going to buy a ticket? That's not what happened that was like a giant ad for going to the actual event It's like it's like who would go to a rock concert now that you could download their iTunes album No, that's ridiculous. You want to go to the rock concert more because you've heard them You want to see them live? So I'd say having journalists here at an event like this fulfills the same purpose It won't mean that you don't need to go to the conference, but it'll show you what you're missing right next to I think it's kind of Similar to to big data, which is kind of an explosion of of sources And allow people to personalize the streams and select exactly what what they want, you know these days With social media people looking to not just read articles, which are great and obviously silicon angle 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 is really important. You know when you look at the standard team of groups that are out there today They report on the the general things that have been around forever Reinventing the news with the independence. I think is a better format The importance of independent media at these events is the difference between having discussion That's relevant to the audience and having a marketing event that nobody wants to pay attention to Marketing is important and the vendor needs to get their information out there But the audience doesn't care about it in its original form. It's not interesting to them It's not relevant to them most of the time because there's a variety of customer situations of what the cube can do What other independent journalists can do is they can come into that event Ask the questions that matter and make that information that's not relevant Something that is relevant is useful as actionable to the audience. Yeah, I think it's fantastic from the standpoint of you guys Aren't going to hold back. You're not going to pull any punches. You're going to ask the questions You're hearing from the people here that they want answered to so I think it forces us to answer the real questions 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. Well, who knows what they're going to ask you and really to kind of advocate for You know the truth because that's really what customers are looking to hear. I mean there's a lot of spin And there's always going to be spin, but I think you know, it's I don't know It's kind of the no spin zone of big data, right? I think it's quite important because you hear a lot of messages from a lot of companies and they start to blur and You need somebody to kind of decipher and really make this a little clearer for the it community The thing that I like about the cube is the fact that it's open source media, right? So you guys you guys are telling a story. You're unbiased You're asking some of the difficult questions in the midst of the dialogue and you're making it available to anybody Who wants to use it in any way so it's not prepackaged. There's nothing stilted about it. It's the real thing So it's very valuable to the tech industry unbiased. 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 a biased thing, I don't think we would have got it And I think that's what people want. So our shareholders ask us constantly for the size of the market Who's doing what who's your competition? So I love the fact that you guys actually provide completely independent research And so I see the cube as essential to this kind of sort of new media and that independence that useful Independence I think is a breath of fresh air for the industry. I think it's great in my mind It's kind of like the espn right of the tech world, but you guys are everywhere covering it. Well getting all the points down So, um, that's how that's my mapping in my mind of it. And I think that's a great position to be in Hi, I'm Andrew Kreitzer a business operations manager at linkedin 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 Stacy 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 tishkart director of partner marketing at claudera and you're watching the cube Hi, I'm jim you founder and CEO of bright edge and you're watching the cube When we created the cube, we wanted to have a conversational Atmosphere where we can deliver real information and john david accomplished that It's not a pinion to the wall barbara walters make a cry style interview It's an interview where information comes out and it's where knowledge is delivered So you get john as the mc on one side where he's Asking the journalistic reporter style questions and making you think and on the other side You've got davilante can go deep on any topic and really extract that knowledge from the guest and deliver to the audience 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 the more you know about big data, I think the more likely you will be Uh a cube a fiction out of if a dialogue is authentic. It's a conversation. It's relax It's not so much, you know the formal interview You normally see some of the you know the big tv cable programs news programs. We want to be comfortable on so it's a lot of Questions around things that they might not get in depth from other other channel. Yeah, it was very good It was very comfortable and uh, yeah, so they're very good at what they do Yeah, dave's pro and uh, it's a great chance to come and actually talk about what's really coming new in technology Well, they did their homework because it certainly came across as Asking knowledgeable questions That I could respond to appropriately Rather, you know often some tangent that I gotta figure out how to respond to Now we're getting into dangerous territory if I ever want to come back again. They're fantastic, of course It's great ping pong back and forth a very very quick fast pace really enjoyed it You guys are just terrific What's exciting about the guest interactions is that's engaging and comfortable We want to make them comfortable And we ask a lot of questions and we go back and forth dave and I but more importantly having them be engaged So that they feel comfortable sharing some of the things that they feel And the data about certain topics and that's really the key is making them feel comfortable and engaging Las Vegas, Nevada, it's the queue at ibm interconnect 2015 Brought to you by headline sponsor IBM Okay, welcome back everyone. We are live in Las Vegas. This is the cube for ibm interconnect So the interconnect go.com from the social experience go social new theme this year Everyone is in there all the vip influences that had led by Veronica Delmont the cuba's headlining Then we get crowd chapters all the crowd data That's where all the socials action have if you're not if you're watching this live team you want to go in and interact and engage go there I'm john fervor silicon angle Dave along with my co-host our next big day log gm ibm power systems. Welcome back to the cube John's great to be back. We'll have a chance to chat with you guys. We love chatting with you last time power systems power rate You know all this is going on is a transformative market big stakes on the table by ibm Give us a quick update on the report card. Are you happy with the results? What's happened? What's happening and where's the vector for you guys here? Yeah, great It's been a busy 12 18 months. In fact, you remember when we chatted a little over a year ago We were sort of just at the cusp of announcing power eight before that we were making promises goer, right? It was about we're bringing linux to the platform We're bringing watson to the platform we're bringing kvm power is going to be great And then we started really bringing that to mark in in april of last year right with our scale out servers Followed by in october our scale up server, but it's not just about the hardware. It's what those Systems and solutions do to really help clients attack the big data problem And and move into the cloud and open power. Oh my gosh I mean if you would have predicted a year later, we'd have a hundred members of the open power foundation back up on that Let's just take us open power where it was. What was it? What was the genesis of it? Just take us through quickly because the trajectory has been pretty impressive. Yeah, it has adoption is endorsement is You know when a barney deal you see a few people hanging around I really love each other when you say that kind of adoption Just take us through the genesis and kind of that how that's kicking out So the genesis of open power started really back with an industry fundamental that the days of morse law are gone Right, which used to be because of technology benefits Transistors would shrink and therefore you get double the compute capacity every two years. That was the premise of morse law So really applications saw performance gains every generation of system laws of physics are now causing that to change And what ourself google melanox tie-in a motherboard company and in nvidia Saw about about two years ago was it needed to think differently about application gains So we got together and we said, you know what it's going to take a community And what does that sound like that sounds like open source software Why don't we open source the hardware platform for the next generation of cloud? And that's where it began the journey of the open power foundation So over over a year ago. We had five members with a vision And now since then we formed the open power foundation We kind of had our coming out party in april of last year around that and as you said the membership has grown to over 100 members But it's not just about membership It's about real things happening in the industry and what time table was that 100 members now over 100 just uh Just a few weeks ago here at partner world actually we had our 100th member of business partners sign up So uh, it's amazing. It's a quarter of a year or two years Even at the eight months. Yeah, actually we formed the open power foundation in december officially as a legal entity december of 2013 and then here we are just a little over a year later with Industry significant names But as i was going to say it it's not just about membership It's about what is the membership doing to innovate So in that time period you've seen us with Nvidia and melanox bring out systems to market that the department of energy in the united states have chosen for the next Generation research labs things that will be deployed in 2017 to their fundamental breakthroughs in the way in which You know d of e department of energy research will be done So two out of the free national labs will start using the power roadmap with our partnerships of open power to progress for We've seen cloud wins In significant cloud vendors besides the work with google obviously that continues as chairman with ovh in europe One of the largest cloud providers in europe and recently in december Rackspace announced their intention as a member of the open power foundation to start shifting from intel to power Leveraging new work around the open compute platform bringing power aid into open compute So but at the end of the day all comes down to apps, right? So it comes down to apps. What are you guys doing to sort of Enlist that application ecosystem maybe talk about some of the changes that are going on Yeah, so one of the fundamental uh Decisions we made was to as we bring linux in a first-class manner to the power platform to make it the same the same the Same so it's kvm. Just like you know kernel virtual kernel Virtualization across the intel platform. It's little indian linux a little bit gorpi, right? But what does little india mean? It means that applications written on in on linux on intel will now move without change Linux on power and that's a huge opening up of the aperture So my conversation with isv has completely changed david completely changed It used to be a paid a port model Now the porting is the easy part and they're figuring out new ways to optimize around power that gives them an advantage over their Competitors an example would be red as laps red is very popular You know key value store no sql in the cloud They've optimized around power eight with linux. They see a 24 to 1 consolidation benefit of the number servers needed On power eight versus intel y more memory more memory faster memory faster access to data So let's let's talk about that. Let's stand at business value for a minute So i'm consolidating right that means i'm throwing what less cores at the at the same server's less cores less Energy easier to manage less people right less less less Okay, and that ripples through to my software license and maintenance all of those costs all this thing It's huge cost savings. It really is and again 24 to 1 sounds like well I have one rack, but if you think about the cloud model This is racks and racks of compute racks and racks of data centers that people are deploying for these new data rich applications So when you can consolidate 240 to 10, you know 2400 to you know 100 That's a that's a big savings. Well, I wanted to ask you about the apps the workloads too So you talked about you know gave an example of department of energy a lot r&d stuff going on Yeah, there's big data too. That's right. Um, I wonder if you could talk about what you've done with dv2 blue Yeah, um and other sort of analytics driven apps Absolutely and you hit it right on the head the sweet spot for power in the marketplace is big data Whether it be delivered on-premises or in the cloud and now the software cloud Why big data? It's the way in which the power a processor was designed for big data So the kind of apps we're seeing clients look at is things like in memory databases dv2 blue is a great example Which was optimized when it was designed starting three five years ago for the power architecture for the power a architecture Ourselves and dv2 blue had a great year last year in terms of new footprint placements to placements Displacements of oracle and other competitive databases. So that combination of benefit where we see 82 times performance gains 82 times when you can do analytics 82 times faster, it completely changes clients business models You know that monthly report you used to do you used to dread doing you can now do it almost real time Almost daily right because it's available to run that much faster. So dv2 blue in memory big place threads But also the unstructured data whether you look at, you know, mongo dv I talked about redis labs that whole sort of set of Unstructured data structures run really really well on winning some power. That is the sweet spot for power 8. Well, it's it I mean, that's a tailwind for you guys because ever since I've been in this business people underestimated the amount of data Yeah, that they're going to have to ingest and then now we're seeing the curve Steepin steep and it's early days still right. Yeah, it is early days. So What's happening? I mean, it's amazing to me people have said I mean even spark right spark is still going Right people said sparks dead powers there, but now there's like a resurgence. Why why is that? Why are people looking for that alternative? Yeah, it's it comes back to Yeah, I started with this discussion around Moore's law where you know intel has been sort of on this path of you know They own they believe they own the server market and they're the single innovator, right? They're the only making gp out of the whole thing, right? But the marketplace is looking for best choices, you know best choices as they look for how to integrate that stack around You know dressing the big data needs power is a great choice for that Right, but we had to change the way it was a consumed So you can still buy and will buy forever, right a power each server and the roadmap from IVM But opening up the aperture through the open power foundation Let's the ecosystem build out right so open power is not just hardware companies It's software companies system companies. It's IO companies and its clients Who are sort of building out that ecosystem and star bursting the benefits of power So that's a big business model big business model change, right and really the only one out there With that business it's kind of similar to the arm model you could argue How we've sort of taken our you know the arm model and said, you know, let's apply it to the enterprise space, right? Right and so okay, so you got you got that going and now Where do you see this all going Doug? Where do you want to take it? What's your vision? Yeah, so I think you know if you look at all we've done last year to transform the power business We opened it up. We repositioned the conversation We brought power eight solutions to the market and we did that in stages, right? We did the scale out first one and two socket systems in april and how did that do? So in you know, second quarter was a transition quarter third quarter last year We started to see single digit growth in our scale outspace fourth quarter over 20 for hbo go in fourth quarter Then we introduced our scale up systems our sort of large footprint entities, right much more of our traditional capability And that was a transition quarter and fourth quarter. So if I put it all together I think 2015 is poised to be a great year for the power platform We've got new trends of workload through the open play We've got our full portfolio out there with the power eight per scale out and power eight per scale up And we're seeing you know wins as I described in linux and in the open power foundation So I couldn't be more excited where where we find ourselves coming into 2015 So if you had so you got scale out system scale up system in the overall power platform Those are the key high level conversation. That's right mark. So you say what's that for you right now What is the top conversation you're having with customers? Because yeah, we want to try to Join the conversation. That's what everyone says join the conversation What is that conversation right now that you're having with customers with partners that is the most relevant? Yeah, so it really comes back to what we've hit on already In fact, I'll reflect on my meetings, you know from today and yesterday, right It comes back orders come on It really comes back to two topics which are top of mind for clients one is they are all drowning in data They're trying to figure out How do they get business value out of this volume of data that keeps coming at them faster and faster And do they have the right infrastructure to deliver analytics and insight around that data? That's one problem area that we are having lots and lots of conversation around and powers a great fit for The other is the conversation related to that of do they deliver that services on premises? Or do they deliver that services in the cloud? And then the fact that they can now with software in addition to our other partnerships wins Start to deliver that power set up systems of engagement and systems of insight in the software cloud That sort of starts to stitch it all together from a hybrid No one talks about how they collect the cash for that value that they create But but this brings up the good point systems of engagement from systems of record Papa Gianno is going to come on tomorrow. We're really kind of you guys are the first ones to really nail this Decoupled right completely different So big data drowning and data data lakes are very powerful. Okay smart people talk about the data ocean Right That's the cube No, so we've just got google actually validated in the top of the google so we're like well data lakes or batch They could be big like like the big lakes, but oceans are unpredictable. You can predict some weather forecast, but you never know You know real time in processor analytics, right? So those two worlds are going on. What's your take on that? I mean That's a big thing. How is how are you guys going to keep up with that for the customers? Yeah, so it comes down to Got to build out the ecosystem You know, it's funny as I've had the power strategy conversation with hundreds of clients over the last year Honestly, I've never had a client say, you know what Doug? I think your strategy for power is wrong But at the end of that conversation what they do say is okay I'm with you Doug. Now. Let's talk about my applications. Where are my applications? Yeah, what's in there for me? How do my applications are they poor together? Are they optimized yet? And the good news is we've made a lot of progress We have over 1200 linux isvs on the platform growing every day We have hundreds of thousands of open source packages But again when somebody hands you a list of a thousand is these chances are right now They're still a few missing and we're knocking them down one client at a time in terms of what's missing in that list Some from ibm some from the industry. So the great news is we can see this building We can see the momentum building, but it's back to the isvs in the software. So without that even assistive, you know You're left there with a great platform You're in a cul-de-sac with no cause, you know, I gotta ask you though. So as a patriot's fan, it's it's good to be lucky Yeah, and it's you know, and it's good to be good. It's good to be good. So you're good or you're lucky It's sort of both, but so I've seen the stats where you've you've seen all the systems lined up And and z is the most reliable most available and then powers right there next to it And then sort of everybody else are the requirements changing Um, we talked about data. That's Fortunitous, right? Um, or did you guys sort of deliberately? Are you are you building things in to affect that change? I wonder if you could talk about that. Yeah, so as I sort of peel back the three systems We thought it was systems of records systems of insight and systems of engagement Underneath each of those are different system requirements from a hardware standpoint to be successful in those models, right? It's not sort of good, you know one one cookie cutter, you know size One of the third one system of engagement system of record and systems of insight, right? Where the analytics run John so if I think about each of those there are different characteristics of how those Hardware systems are built, you know one one example has been you know as we worked with these various cloud providers They each have a standard for their data center each of their standards are different by the way Which is why it was so important for us through the open power foundation to enable this whole odm market So as we bring power to software, they're going to source servers just like they source at x86 servers today Not through my vm. They're going to source it through the odm's in taiwan Right, but it's going to be their standard for how software or data centers works Software data center will rack spaces as I mentioned a different standard They have the open compute model google they have their own standard I mean you just go to go down the line and standards are meant to simplify operations for a data center That doesn't mean it standards across everybody And I've got to be able to have power being each of those standards Part of that goes back to what's going to run on them If you're going to run engagement applications in software Those are going to have different hardware attributes system attributes than that system's a record that you know Really the final version of the truth that sits on a client's floor that they're not willing to let that data go So i've known you for a while you you you're not afraid of competition Um at the same time this industry is the it's the co-op petition question Well one of those discussions like because it's really interesting you're selling the cloud providers You guys are going at it hard with with software. We live in a really interesting You know business these days. We do in part. It's like a cartel other times. It's like this, you know, guerrilla war What's going on? What are those discussions like? Yeah, so you know the thing they find with IBM is I mean we've been at this for 103 plus years Right, so I mean we've kind of matured our approach to how we deal with co-op petition There's no doubt the cloud companies i'm working with as I provide technology to them They some of them do see soft players a competitor But they're also all looking for ways in which they differentiate themselves all of them having just a generic intel approach That's not going to cutter for them in terms of differentiation So that's why having a different set of infrastructure that has more innovation through the open power community Will allow them to differentiate themselves more So my view is those who move with us faster will see a first mover advantage Yeah, so put it out there and let everybody compete on the merits of their own sort of strategies assets Absolutely, and the more innovation I now create through the community The better choices that are provided to the cloud companies in terms of what markets are they going after what clients are they targeting And how do they take advantage of this sort of uh lego approach to the innovation? So the I'm going to have the open source discussion too I mean I have obviously has a lot of credibility right when it comes to open source You know linux sort of I guess started it all and yeah, and we've seen a lot more since then Um, but the but open source and the hardware side is a little different It is a little different you mentioned, you know arm is sort of a similar model ocp I guess is sort of an example, but yeah, but so how has that been? What have you learned anything surprised you about that? You know what I think the only thing that surprises is probably what we knew already Which is you know, we're sort of always well who's going to take advantage of open source firmware So we've released the firmware that makes the power 8 server, you know run And we said well, who's really going to grab that and now you say well all these odm's in in the Asian market Who build servers are grabbing that firmware to customize it for the servers they're building for the cloud market So, you know, we basically validated what we knew already Although it's sort of new applied principles in the sort of the hardware spaces open source does win at the end of the day Open wins close lose perfect for the odm's who don't have the development resource of the historical Perspectives to really be do that now, of course open source you get open source to expand your market Which is right one of the benefits the other is sort of reduction and And expense r&d expense well and the other is security and confidence right because it's fuel completely transparent There's certainly no shortage of discussions that we can all read and press headlines today about countries and companies That are worried about the it that employ and how secure it is So having open source where it's fully transparent allows them to innovate on top of it But also completely see what codes being so that's the fact that it's not a black box That's right. It's making certain factions more comfortable Yeah, I mean one of the successes we've had has been power aid and open power in china Right if you think about things that have been formed there the china power technology alliance They formed a whole alliance around companies in china to leverage open power because of the focus there on localized it and security It's a perfect fit for that market right so if you think about open power really three markets the cloud companies We've talked about technical computing. We've seen with our department of energy win And other companies like that that'll be coming and then the the localized indigenous development Which we see in china is kind of leading that conversation So those really are kind of the three use cases around open power cloud technical computing and localized it So talk about the system of engagement. This is i'm i'm stuck on this in my head. Okay. I think this is a Genius strategy insights come from all this right, but they they work together. Yes What does that mean for customer? Is it to the edge of the network? Is it internet of things? Right. Is it what is the Endpoint yep of engagement because the data is different right? It's why we we're been ripping on this whole ocean thing because yeah like it's not just the lake It's like there's a lot of real-time stuff happening in memory right be slow fast Yeah, so if you think about and you know, we've talked about this a lot here already at dinner connect Which is if you think about a sort of a blue mix application that's going to be kind of the framework by which you stitch together these rapid pieces, right? There's a tremendous insights into a client's existing database about their customer set They're buying patterns, right their history of investments, right? All that stuff sits there and they want to marry it with the world of social Right, they want to kind of take that history and all aspects of connected data, right? And so what we've announced is within that blue mix application set You can now connect quickly to that back end through a set of blue mix connectors that rapidly expose that data If you want into a blue mix application that pulls from the history that pulls from the records Final version of the truth of the customer data with that social mobile world data that exists of sentiment analysis out in You know as we struck the relationship with twitter as an example around data So it's a great way to kind of stitch these things together and create a whole 360 degree view of a customer And that's a huge trend we're seeing just bringing the the transaction systems in the analytics right together And obviously you need a hardware platform to enable that well You need a variety of hardware platforms, right? You need you still need the systems of record that are you know sitting on a client's floor today that they're you know That sort of you know have their arms around right and then you need the engagement systems running in the cloud That can scale up and scale down very rapidly right with full transparency to run those engagement workloads But you're different workloads. They're just connecting to the back end You know I was telling the story on my way here yesterday. I had to pay my visa bill So at 30,000 feet in the air I'm clicking on my in my tablet connected the wi-fi in the plane and paid my visa bill Of course, I could be sniffing the signal before because out of the wi-fi But again, that's the security brings out security in memory. Well, but you know, you got to have that secure connection So the way it matters Infrastructure matters absolutely so as you connect to the back end you've got to have got to be smarter infrastructure, Dave That's right. Yeah, let's talk about I think I think I think the land grab is this engagement Discussion because that data is changing. Yeah factor in all kinds of geo data Jeff Jonas those on the queue right geospatial the diversity of tsunami of data coming in at the edge Is ridiculous? I mean so I think huge opportunity and then marriage with the data that exists Yeah, I mean it's a great marriage point right there Yeah, so how do I get the real time get the old data from the data lake into this real time layer? I think it's a huge opportunity and I think it's going to be a great I think you guys are on the right track. I still it's wide open I mean, it's not even wide open first inning in my opinion. Okay, cool What's the coolest thing you've seen around the power rate open power Power systems with customers that you could share the folks out there anecdotally could be like use case Experience. Yeah, so a couple examples from to do recent meetings and you sort of know you've sort of got the starburst in FX so I was over in China a couple weeks ago meeting with a variety of Customers and provincial governments to my surprise. We're sitting down one of our one of our partners there And we didn't even know they brought out a whole hey, we're going to launch this family of open power servers on power eight Didn't know it didn't know it was coming. It was it was like great. I mean, it's just you're here. We're just letting you know Thanks for coming You know, it was an example John of how When you're in this community things happen without you having to know about it And that's what sort of creates new innovation another example was that two weeks ago I was here at partner world I was meeting with one of our largest distributors who's a member of the open power Foundation and they had a you know, sort of new senior leader in the meeting with me Who was asking me questions about open power before I could start answering His own team started pitching to him why it was so important for them to be in open power Because they could bring differentiation through package solution off. So they're excited. Yeah So again, my two examples are making the point of this thing is starbursting out and starting to build on itself Without IBM having to sort of shepherd everybody around which is clearly the measure of success in my mind Well, Doug, thanks for coming on keep really appreciate it spend the time What's your plans for this event you back the back the back briefings? So you're gonna you can go see arosmith. I am absolutely going to go see You know having grown up with them. It's uh, I think we all have right I'm really looking forward to that. But yeah, it's it's a lot of great It's a live band here for their party. So just fyi. Yeah, awesome. It's a lot of great climbing So I've already had some I can't wait to have the other ones I mean we really are hitting that stride here with power and I can feel the momentum john and uh, David as we march our way through the 2015 it will be the year we grow I can see you guys have taken a lot of hitting the press on the financial Well, there's a transformation. You can sometimes take a step back to go forward But you know messaging is great. But then it comes down to delivery. Like you said, that's right. Everything's hanging together Yeah, I want that suits on the rack. I want to buy that that looking good looking good off the team middle of the fairway Now it's it's it's time to deliver the final results But uh, we're well poised after uh, really, you know Challenging your transformation last year, but uh, I think we're through I think we've got the message out there We've got the right offerings We've got the partners engaged and excited and we got clients coming up with bold ideas Well, you put the pieces together I mean we were sort of rattling off before linux red hat, you know kvm open stack for management I mean a lot of the pieces are now there, right? So that's gotta be satisfying and you help write a lot of the plans and strategies, right? You see in the comfort fruition. So we were talking earlier. It's you know when IBM takes some time sometimes it takes a while But when you guys focus you go after it hard march on that on that line Final question just as we got a little more time here want to ask here just kind of as an industry vet participant IBM executive been there done that through many cycles What's your feeling of the impact of open source? I mean IBM has been involved in open source And give me going back to gen one. So I'm going to argue what gen one was but I'm going to be 50 this year So, yeah, I remember those early days right part of that with linux, etc It seems to have changed the world. Yeah all aspects with open power again one data point We were just at a big data sv our event with with hadoop world It's everywhere. It's now mainstream tier one, right? How has it changed the world from a business model impact? How do you see continuing? Not stopping or what's your take? No, I mean open power is a great example of how it's not stopping and finding Ways to bring that open source software model into the hardware business So, you know new business models being created around this and that's kind of the trick I mean, yeah, it kind of starts around a technology idea of how to get sort of pervasive community adoption and innovation around it But it's also requires new business models And that's what we've had to do with open power, you know, not just the technology part But how do we create that ip licensing model right that allows for derivative rights and derivative manufacturing And the whole open source of the firmware I described and what do you put in and what do you put out? I think, you know, we've at ibm sort of taught ourselves time and time again that as I mentioned earlier open wins and closed loses And we're seeing that example and for a multinational global company like ibm to be so driven by change by open source Yeah, you got to look at that and think you can't help but think like, you know The movement of the decade or the century or the century is open source. I mean, right? It's just ridiculous How bad how awesome this is creating disruption, you know a lot of folks look at ibm and you look at us and say Well, geez, you know, how come you guys can't do it all? I mean, that's just the world of it is moving so fast right now with bold ideas under millennials, right? That are 20 some years in age. Why in the world would you want to say? No, no, I got it all. I can do it myself Thanks for asking. You really want to open it up so that you get just this incredible Swell of innovate lift occurring with economics Well, Dave wasn't Dave couldn't make last week to our event because he got snowed in but last week We made the observation why are these new foundations working right the old pure open source like the red hats are purists We all know that but they admittedly said on the cube, but That's never going to work some open source dogma could be well This is never going to work is it we didn't do it before that way j boss or whatever right? Yeah But now they're working so the the thing that we're watching is is the evolution of always connected Mobile social does that change the transparency equation? I think there's no place to hide I think it causes it to move faster. I think that's the reality check is when you have so many trends hitting you at You know an amazing speed right data cloud, you know social mobile Security all those things coming at you Man, if you try to do it in the troll traditional waterfall model You're dead and you've got to experiment. You got to move fast You guys you guys among other things will be will be brand. Oh, they're trying to hijack something But when it's done in the open, there's no place to hide There's no place to hide so that and with the acceleration no place to hide It's truly in the open so to me. I'm looking at that trend saying I think open source concepts will escalate and change so we're watching all these foundations And then you got one of them value on top of them I mean there's still plenty of room in this phase for value creation right on top of open source You see that every day and what clients do and what we do to take open source And then add that next layer of really industry oriented analytics around that as an example And we would always open stack cloud foundry well, we didn't comment on yours But those two in particular when we saw it become more of a marketing program We were like very hey, you know in the queue don't go that way and what happened was shift with code Right shift with technology what you're doing over that change the game for it's a game changer Yeah, it's just changes the argument on the conversation. It really is Doug great to have you on the cube as always So this is the cube we write back dug they log gm of the ibm power systems division Here in live in las vegas from jepher de blanche It's the cube in the go social lounge where it's all coming together trending hashtags trending stories crowd chats vip influencers And of course the cube will be right back after this short break But what is important is that you've been on the cube and you are a tech athlete You're cut above everybody else in the industry Yeah, this is my first time on the cube it sure is it was my first time on the cube It was fun that was and we covered all six sides of the issues That was great rapid fire. Let's talk about what's going on. I actually enjoyed it. I think it was fun I like the the back and forth being with two people who obviously are very experienced professionals Uh knew how to carry the conversation. I think quite frankly knew how to make me look good Oh, it was a lot of fun. It was fast-paced moving lots of a variety of topics. It was great They made it very easy for you know, for the first time we're there in the cube Love being on the cube. I think it's great interactive discussion. It's not often you get to sit with People of the caliber of john furrier and davilente and actually have these kinds of conversations So I I appreciate the banter and the discussion and the fact that I'm talking to Some guys that really understand where the industry's at We'd 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 It's awesome as it was last time every time I do one of these interviews I always have a new take on all the concepts I've had about What my products can do I like it a number of people have approached me after having watched cube videos There's also a linkedin group that's very active, which is something I'm on. I do enjoy that Well, I love davilente obviously No, it's it's it's been great to be to be here. It really gives us great exposure People take it seriously. I get emails from all around the world after we've done this a lot of our shareholders watch this for Hopefully to get some inside information, which of course we never reveal Um, but but we do have a great audience that follows us on this Oh, it's it's a great group to be a part of you know, it always it's funny because either john or dav always mentions it Every time I come on and we don't quite have a secret handshake yet, but I think we we need to work on that It's very popular in the company. We work to get on here I hope you know that Uh, because the people that act in and I mean senior executives all the way down to pretty much every person in marketing They see this is one of the real highlights for us each year when we get on the ride I'm on the road all the time. It's all I do to talk to people and this is one of the premier premier venues And uh platforms for us to print our message tomorrow and uh, cube's a lot of fun It's uh, you know, espn for tech I think uh tech's evolved to the point where you know, people want to understand the personalities behind the technology Uh, which probably wasn't that interesting 20 years ago I think they they made 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 You know, I love it. I it was actually telling uh, john and dav every time I come back to the cube You guys have new toys new cameras. Everything's getting bigger, you know having been on it for several years almost from the very beginning It's uh, it's always great to be back It's about connecting with people And that really is what it's all about I from Las Vegas, Nevada It's the cube at IBM interconnect 2015 Brought to you by headline sponsor IBM Presentation of IBM interconnect IBM interconnect go.com is this website for the social digital experience Powered by crowd chat powered by the cube powered by Veronica Belmont and all the vip Influences and more importantly powered by the crowd. This is the cube our flagship program We go out to the events and they strike the silver noise. I'm john furrier the co-founder silken angle media With the other co-founder silken angle Dave Vellante Putting silken angle wiki ball in the cube together to bring you all the action Dave Vellante great to see you again here interconnect go Is really where the actions change for IBM two big shows now for IBM interconnect is one of them They put all the cloud mobile and developer all in one show