 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 here in Las Vegas for The Cube, special presentation of The Cube show with John Furrier and Dave Vellante, where we extract the signal from the noise and share that with you on silkenangle.tv, on YouTube, on every channel we can possibly, we're even talking about doing Snapchat stories, but we'll get to that when we can. Dave, we're here for wrapping up day one of three days of wall-to-wall coverage. John Furrier, founder of SiliconANGLE, Dave Vellante, founder of Wikibomb. We're going to break it down, but first I want to just say that IBM has digital experience in social lounge this year, that is the same as last year, VIP influencers, and they brought The Cube back, but they're bringing in a much more organic experience with interconnectgo.com website. Go to www.worldwideweb.interconnectgo.com and we're trying to bring in the crowd into the experience and get a two-way dialogue as a new way to do things, a new way to be social, a new way to work, a new way to collaborate, and it's supposed to be fun, the keynotes are all there, the Cube interviews, get some development videos, all access passes, special privilege, go to interconnectgo, go social, check out the leaderboard, and we'll be doing crowd chats in there as well, of course trending hashtags. The conversations are happening here on the show. We want you to be part of that, we're glad to be part of that, Dave. So Dave, getting to day one for IBM, it's clearly a sea change for IBM, nothing new on the directional front, the vector is still the same, cloud, mobile, and social, you're seeing a sense of urgency now, you're starting to see the direction and some of the meat and the bone in terms of specific deliverables around cloud, dev ops underneath the hood, mobile and analytics, clearly it's the cloud. What's your take from day one, here in storage is full commitment, we're hearing all about the blue mix, what's your take? Well a couple things, so this is IBM's biggest event that I know of, 20,000 people, combining interconnect and pulse, cloud, mobile, dev ops, and then pieces of infrastructure, sort of around the periphery. 20,000 people, I know IBM has multiple conferences, no Ginny, kind of interesting, right? I didn't see it earlier, I don't think they even had a video feed of her, so that was a little bit surprising to me. Generally speaking, in other large companies you get the top dog to come in, so I kind of would like to see, I'd like to hear from her, right? And she's busy, but these are all your customers here, so that's sort of point number one. Having said that, great action, awesome attendance, LeBlanc was really strong, I thought, a lot of people questioned why they put Robert LeBlanc in charge of cloud, I think he demonstrated today why. He understands the business, he understands customers, I think he articulated an excellent vision, he talked about IBM's commitment, he really underscored that, and I've always said he's the type of person that can actually execute on something like that. The other thing is developers, really focus on developers, we've heard this for quite some time now they are really emphasizing it, trying to put some meat on the bone there. We hear this from other companies, like Oracle's Oracle, it's like okay, developers, you got Java, you got to develop, HP talks about it, IBM really putting some concerted effort there, I think they really understand the importance of the developer piece, particularly on the cloud, and like I said, John, on the periphery you've got these infrastructure trends that are going on with security, we heard from Jamie Thomas and Eric Herzog on the storage side, we heard from Doug Baylog on the Power 8, I think that was another really somewhat surprising development here, not necessarily at the show, but leading up to the show, a hundred partners signed up for the Open Power Initiative, that's pretty good, it's not just a bunch of Barney deals, like you call them. So, all in all, I think this is a very impressive showing by IBM. What do you take? Yeah, Dave, first, I think their new way is a great slogan, it's a great branding campaign, they can just fill in the blank, a new way to do social media, a new way to do the cube, a new way to do the social lounge, a new way to do analysts, a new way to find value, a new way to think, unlimited potential, love it, it's just a smarter planet, smarter infrastructure, again, I love that. Key things that I heard today in the cube were listening to customers, the blue mix team, it's in the cloud and DevOps, all about listening to customers, okay? Software life cycles are changing, the user experience for customers, and three, under the hood, three major areas in the cloud, UX customer experience matters and expectations, and what the design is, software life cycles are very agile, sprint, scrum, whatever you want to call it, and under the hood, it's got to be scalable and more service oriented, and modular, very cloud like. We also heard about some of the live sync stuff that Amazon doesn't have, so blue mix is thinking, oh, we'll do stuff Amazon doesn't do, and then we heard virtualization that drill-uppers love, but I got to tell you, Doug Baylog was my favorite interview because he really was awesome, Eric Herzog was, I'd say, maybe Ty for first and maybe short, second place, but Doug, power systems, really nailed it. He was candid, he was sharp, he was quick, obviously first day we get the executives, they're tight, he was good, I loved what he said, I asked him a question, what is the conversation that we could join or start or advance around the core themes in the industry that IBM's participating? He said, they are three things, the drowning in data is a top conversation, insights, et cetera, big data, two, the cloud services delivery equation on-prem or in the cloud, conversation number two, conversation number three, ecosystem, open source, building it out, expanding it, aligning it, unifying it, integrating it, and growing that, three things. That was my favorite soundbite in terms of high level. My second favorite soundbite was Eric Herzog, who said, a new world data structures, that highlights my data ocean vision that we've been talking about on theCUBE, data lakes are great for batch systems of record, but if you want to win the systems of engagement battle, my opinion, it's about the new world data structures, some that some have never seen before, new rip currents, new ways of doing things, that's about transformation. So to me, that's key, spectrum storage, a lot of great stuff. Again, BlueMix, it's all about the cloud. So that's kind of my take. New world data structures, and again, those three things, drowning in data, on-prem, delivery and ecosystem. Yeah, I mean, you know, the IBM Playbook's kind of predictable here, right? You know what they're going to do is basically take everything that they have, aim it at the cloud, enable it for the cloud, put it in the cloud, like for instance, you talked about power for the cloud, you're talking about everything BlueMix, talking about blue acceleration everywhere, DB2 everywhere. IBM's going to put that behind the curtain, of course. And so, you know, it's going to be more of the same for IBM. Now to me, what I'm watching is execution. Can IBM stave off, you know, they've got the currency headwinds that they're dealing with, obviously they've got competition, we know that, we've got an industry in transition, can they get the new stuff growing, can maintain that growth rate, can they get it big enough? I mean, it's a, you know, 20 plus billion dollar business growing at, you know, double digits, good, strong, solid mid-teens. Can they keep that growing at 10 to 20% a year and stop the decline in the other side of the business? If they can do that, IBM will bounce off the bottom from a revenue standpoint, start growing again. And as I've said earlier this morning, continue to throw off tons of cash. I got to ask you about Stefan Ferber who's the Vice President of Engineering at Bosch Software. Customer, practitioner, what'd you take? I liked him. One, if I like the alignment of my data, ocean vision, but he was good. He was good. Global, they're called themselves startup with 600 people. 600 people. I mean, that was a pretty, I mean, you're in the customer's talk. That was excellent. I mean, you think about GE's industrial internet. Industrial internet, you know, turbines, you know, big iron, right? Where's Bosch? I should think dishwashers, you know? Smart home. Smart home. That, I think, resonates really well with consumers, with a lot of people. I learned a lot in that interview. I think that it was interesting. They're making acquisitions. Very German-centric, which you would expect, but they've made, you know, inroads, certainly into the United States markets and other markets, you know, overseas in AP as well. Obviously very strong in Europe. So global company, $60 billion type of turnover. So yes, great example, John, of a real internet of things, started in 2005, that initiative. Okay, so they're just not, they're not IOT washing. So talk about what happened as we had some a lot of crowd chats. They will summarize some of those. The Interconnect Go site was fantastic. Stu Miniman introduced some new research on the crowd chat. The infrastructure as a service data. What's your take on that? I know you were multitasking, peeking in on Stu's chat with Tim Crawford, VIP influencer here at IBM, held a great chat, not big numbers in terms of, you know, drawing in the big crowd, but the data was pretty good. Well, the survey underscored to me and the data that we are now entering the next big wave of cloud. The first wave was, you know, EC2. Just check it out. The second wave was the economy tanks and all the CFOs said, all right, CapEx to OpEx, go develop on AWS. The third wave bouncing out of that downturn, John, was shadow IT. And that was the wake-up call for the cartel. The cartel went, whoa, this is real. Shadow IT is threatening our base. We need to do something. In the case of IBM, it's we need to buy software and we need to get our act together and really go all in on the cloud. And that's what happened. The second thing that really it underscores for me is that it's game on. So you got Amazon, Microsoft, and yet even Google as scale guys that are not going away and the gauntlet has been thrown down and the enterprise guys are really finally getting their act together. And I think led by IBM, Oracle, you know, HP's finally got a product out there. But IBM really is in a good position because of its large global footprint, its outsourcing business. They did two deals last quarter, over a billion dollars, the outsourcing deals that heavily involve the cloud so they can use that footprint to leverage their cloud business. Yeah, they're throwing some stuff in there. The kitchen sink gets thrown in, you know, to their cloud numbers. That's fine, whoever they want to count it. But it's very clear that they have laser focus on that cloud business. And so that's kind of what the data underscored to me is those two worlds, the enterprise world and the consumer world, they're finally colliding together, John. Yeah, Dave, I just want to wrap up day one by saying that great event by IBM, again, putting the events together was a good call by IBM. Two big global, two big, big tent events so you can get all the customers into one place. That's the theme, you know, you're seeing it with Oracle Open World, certainly you see it with Salesforce Dreamforce, other events, great leverage, so good call. They've still got a lot of other events, you know, mid-tier events going on, so those be good, but you're right, Dave. I would have liked to see the CEO here. We had Bob Pucciano, one of our favorite guests, couldn't make it. He wanted to be on, but was stuck on a plane. We hope to see him the next couple of days if he's got time, but again, these execs are strapped. Usually we get them on theCUBE, but we love the fact that they come on theCUBE, especially when their schedules are so packed with customer meetings. So I want to thank the IBM execs. I think I want to thank the VIP influencers. I really learned a lot from them. Brian Fonzo, Veronica Belmont, a bunch of other great people here. Chris here was here, a bunch of great, social, awesome people who are smart, talented, and are great ambassadors for the industry because they don't work for IBM, Dave. I'm impressed with those influencers. I think what IBM's doing with VIP influencers is the new way to do things in social. Creating a community and ecosystem is part of the open source community that's changed business, technology, and bringing that open source ethos to social media and social business is brilliant. I think IBM's onto something really huge with this, and what they're doing here with GoSocialness Lounge and the digital experience that we're part of is fantastic, and obviously CrowdChat's part of that. We're super psyched. Go to CrowdChat.net, check out the sites there, go to the CUBE page, go to interconnectgo.com and check out all the action, live feeds, on-demand videos, all access paths with registration, keynotes with registration, but everything else is free, free content. Go to interconnectgo.com and check out that out. This is the CUBE. Any final parting words, Dave, you want to say before we wrap it up for today? Well, we're just getting started here, John. We got two more days of cloud and mobile. Like I said, a little bit of social and analytics thrown in. We've got some great guests coming up tomorrow. There's the action going on at the MGM. Aerosmith is playing, I think, tomorrow night, right? Tomorrow night, Aerosmith playing. I'm not going to miss that. I'm not going to miss that one. We usually don't go to the shows. I love Aerosmith. I think, you know, that was one of the first concerts I ever saw. It was Aerosmith at Millis High School. Dave, you're dating yourself. I know. I'm just saying. Okay. We're back in the saddle, here in the CUBE tomorrow morning. Good and resist. We'll be back tomorrow. Stay with us, wall-to-wall coverage for you. This is the CUBE, signing out for day one. We'll see you tomorrow. Thanks for watching. This is the CUBE, live in Las Vegas, instructing the ceiling noise. IBM interconnectgo. See you tomorrow.