 Live from Las Vegas, Nevada. Extracting the signal from the noise. It's theCUBE, covering IBM Edge 2015, brought to you by IBM. Okay, welcome back everyone. We are here live inside theCUBE in Las Vegas for IBM Edge 2015, this is theCUBE, our flagship program out to the events. I expect to see you as always, I'm John Furrier. My name is Dave Vellante, I'm the next guest. It's Tom Rosimili, Senior Vice President of Systems at IBM. Welcome back to theCUBE. Thank you guys, good to see you again. See you Tom. Seems to always be in Vegas. Yeah. We live out here. Yeah. You guys are making some big changes. Obviously IBM's positioning around systems, software, workloads in the shift and inflection point of the market is pretty hot right now. So there's a lot of transformation, a lot of build out, a lot of support of legacy, both cost, structure side, and also top line driving revenue. What was that theme in the keynote today that you talked about, I'll see here at the show. There's a lot of old line storage servers, system stuff going on. What's the big trend and what are you guys promoting? I think the story is one that we've been telling but it's really taken off fast now. It's around this transformation, digital transformation that's occurring. And it's a profound shift because mobile changes everything. The number of connected devices by 2020 has got to be like 26 billion. I mean, that's how many per person on earth. It's amazing what we're seeing. So what's happening is it's not just about mobile, it's about what mobile enables. It's not just about internet of things, it's what's now doable, what's now learnable. What can I analyze? What can I act on? So I want to take that data and there's huge amounts of data being produced. 2.6 quintillion bytes of data every day is generated and 90% of it is not analyzed. And some of it's very period focused. It's like tomorrow that won't be relevant anymore. It's relevant right now. And so people are really wrestling with turning the data into actionable insight. So in all of this you need infrastructure. You need some cool stuff that will enable me to have those mobile transactions land somewhere. And actually they expand because when you say purchase, think about all the things that go on behind the scenes. You've got who you are. They know your profile. You picked a product to purchase. I got to decide whether I replenish inventory. I got to decide where it ships from and I got to see how you're paying for it. All with one click. So we've seen up to 100 transactions get kicked off from one mobile transaction. So think about that as people go into more and more connected devices. You guys talk about outcomes all the time. IBM's always had great messaging around business outcomes and also systems of engagement, systems of record. And then under the hood is all the geek tech stuff, the systems, the engine, if you will, the hardware, software, whatnot. But this shows a lot more integrated conversations. We've heard big data apps on stage with smarter cities. The Twitter relationship is part of that grant with Memphis, the mayor of Memphis is up there. Congratulations to those cities that won. I mean these are real world examples. Are you seeing more and more of that at less of the speeds and feeds? Oh much more. I mean give some examples. You need what underlies that. You need the speeds and feeds but it's much more about business value. So it's really more about what can I get done? What can I know? What can I analyze? What can I turn into actionable insights? And underneath that I do need speeds and feeds. I do need how much memory space there is. I do need the geeky stuff. Like when we announced Z13, we talked about this before. It was never a good idea and you know this well. Never a good idea to co-locate transaction processing and analytics. Reason is I can quickly switch processor. I can quickly switch your IO priority but the memory is filled with your analytics data. And so when a transaction arrives, I got no shot. Nothing's in cache, nothing's in memory. I got to reload everything and the response time goes to hack. So people don't do it or didn't do it. We tripled the memory space with Z13 so it's the geeky part. But the underlying technology allows us to co-locate transactions and analytics. And we embedded math libraries into DB2 from SPSS that allow you to do fraud checking, any money laundering, all kinds of math algorithms to do it in line. I'm not suggesting that you flood a mainframe with analytics workload, but I am suggesting that in the middle of a transaction before I say approved, I want to know this isn't a fraudulent transaction. But this is early, this is an indicator. So you're talking about a use case that's a very high end use case. Maybe it's a flagship like use case. But that's more going to be the norm down the road. That's what you're getting at. I think so. And real full time encryption that we see, I mean it's really important. The data doesn't go by. You don't read about some cyber attack somewhere in the world or everywhere in the world. And you're not reading about the ones that people aren't writing about. They're still happening. Hopefully nobody finds out. But those are happening every day. So the bow wave of mobile, the capabilities that analytics provide to turn into actionable insights. People are doing things with hybrid cloud. You mentioned systems of engagement to systems of record. You got to connect those. And so the middleware really has to keep that connection available. Well I like how you guys are connecting this notion Tom of digital transformation with infrastructure matters. So I have a question on the client base. When you go out, you talk to a lot of clients. Do they, how much are they sensitized to this digital transformation? It seems like everybody's talking about it. Are they on offense, defense or both? I think it's all over the spectrum because some of them are leading the change, leading the charge. I've got examples of mobile banking in the world where mobile transactions are more than half their workload, more than half. And the statistic I gave this morning or this afternoon here was that of millennials, 82% of them do their banking mobile. So as we age into this, it's only going to get harder for people who aren't ready to deal with that bow wave of transaction volume that's coming. I think about my son who's going to be 20. I mean we were talking the other day about what was life like before the internet. He's looking at me like I'm crazy. I mean, what do you mean? What do you mean? Life before the internet. Oh dad, roll down the window and tell me a story. What's rolled down the window? I mean, you've never seen a car with a handle on it. So rotary phones and the like. So the expectation is there from the millennials that it'll just be available. And the experience at the mobile level will be real. It will be immersive and it'll be connected because unless I'm playing a game or doing something where I just need local mode, chances are enterprise applications are going to land on the enterprise. Well on the systems side too, they can speak about millennials. That speaks to the DevOps culture. Most of the younger developers never loaded Linux on anything. They don't even know what package software is. So they just want information on demand. They want infrastructure as code as they say. So it's changing the mindset of what you have to provide. How has that changed? How you guys are organized and how do you speak to those millennials? I mean, on the infrastructure side too, not just the app developers. I think you've got to speak their language and as you said DevOps is what it's all about. We see people now instead of writing code, assembling code, I mean not the old assembler that you know, putting snippets together and all the different APIs that you can now use. I mean our partnership with Twitter, our partnership with Facebook, our partnership with Apple, all of these things are providing us with better ways. Our partnership with the weather channel allows us to pull weather data. There's insurance companies are pulling that information from a feed. So the programmers if you will become orchestrators. They become assemblers of all these different technologies. And as you said, they're going to try it. They're going to go from dev to operate it and see and see and see again. In fact, this whole agile method is one, small teams, get them on the field, get, you know, produce something. Minimum viable product. Well you talk about the assembler of technology. So the innovation curve now seems to be shifting away from silicon, you know, old Moore's law. You guys have been talking about that toward more combining technologies. You mentioned analytics and transaction systems. Do you see that happening? Do you see it actually, I mean it's happening, but do you see it bending the curve of innovation yet? Even, I would say even at a lower level, you don't have to go all the way up to that level. You could just talk about systems innovation, not just silicon innovation. So, you know, the combination of, it's not just about, as you said, it's not just about speeds and feeds. It's, as John said, it's really about combining these things in new and unique ways. I mean, the memory speed between the processor and I'm sorry, the speed between the memory and the processor of power eight is superior. So that's why people love the analytics workloads. You know, the number of threads is important to us. You know, we can get a lot more done when we have a lot more thread counts. So, you know, that's not about the processor speed. It's about the number of threads I can get going. So I think there are ways to overcome. We've also announced our investment of $5 billion and in advanced technology. We made an announcement last week about, you know, what we're doing with quantum computing and you're going to see more around silicon photonics and all kinds of things. Context computing, there's a lot of potential there. And I don't know, I don't have the crystal ball to say which ones of these are going to be off the charts, but some of them are. But you're placing bets. We're placing bets. Well, there's a lot of new things right here. Well, there's a lot of new things that emerge. One of the big themes this year in theCUBE is with the shift and inflection point is that things that have never been done before, whether it's internet of things or something else, is new breakthroughs are happening. So I got to ask about the threading question. What do you guys envision software looking like? Because now you talked about a couple things that are kind of geeky, encryption on the processor. It had thread counts. Memory speeds. Memory speeds. This is all like really high end stuff. So what do you envision developers doing with that? I mean, and share some insight around what you will enable for the stuff that was a challenge. How about the rotary phones and the roll down windows? This stuff that you could never, never do, even just five years ago, now are impossible. What do you envision the software market looking like? I think we increasingly see people adopting platform as a service capabilities or software as a service capabilities. And to me, that's not about the economics as much as it is about the agility, the flexibility that it provides. I don't, I was talking to a retailer here, their peak day is new years. Put everything on sale and all of a sudden they're off the charts on a needing scale. Some of these things you can predict. He kind of knows what that day is when it's going to happen. Look at financial services, completely unpredictable. Who knows if China's going to lower the interest rate or somebody else is going to do something or the Fed's going to say this. Oh my gosh, so the ebbs and flows in the financial services markets is incredible. So I think in all of these cases, the need for quick provisioning and say I'm going to pick up the slack, I'm going to take it. And as you guys know, not all workloads loan themselves or really lend themselves to saying I'm going to run it part here in my place and part in your place. That depends on the location of the data, right? So I can do analytics, but transaction processing probably not a great idea. I can do analytics in one place, but I'm going to want to co-locate my processor and my data because data is huge. You can't move data around anymore. You can't move the processor to the data. So that would become a laptop. I got to ask some philosophical questions that while we got you on theCUBE since you're the brain trusted IBM. Dave and I love to talk about systems like operating systems. And we're moving to a world where the global internet is an operating system at some level. So whether you were pinging Mark Andreessen on Twitter saying, hey, systems programmers are back and you're in the systems business. So two questions. What's interesting in something that has traction and something that's transformational? I mean, because products right now could have traction. Oh yeah, adoption, uptake, and then truly transformational products. From your perspective at IBM, how do you look at those two words, traction versus transformational? Traction for us is a measure of whether something's getting traction, whether we're seeing these use cases as you brought up and our products selling. I think transformation is a far more dramatic term that says we're all transforming ourselves. And it's interesting for me to see the industries that are now being disrupted. I mean, obviously my industry is being disrupted. Your industry is being disrupted, right? Banking is being disrupted, retail's being disrupted. I mean, every one of us is going through this kind of a transformation. So the products that I need have to give me the speed, the flexibility, the connectivity, the ability to interconnect these things. I mean, that's really what I find transformational is somebody having that experience with a system of engagement that go, wow, I want to do that again, that was cool. And behind the scenes, all kinds of works going on to make sure that thing really stays and does what it says. And what products do you see right now in your wheelhouse that are the transformational? I think the work we're doing around open powers transformational, I think that with 127 companies or members of the Open Power Foundation, I think the work we're doing, I think flash is transformational. I got to tell you, seeing retailers do a speed test and have them do side-by-side websites, theirs and their competitors, and say, okay, purchase and see how long it takes. And then they drop flash in and they killed it. They nailed it. They improved their response time, 140X improvement in response time. They're measured. That's good traction. They're measured. They're measured. So I think, but transformation to me is about, well, okay, that may be important. It may not be. Did I lose a customer if I didn't do it? Just like that, or did I not? We've talked about this before. That's a negative transformation. You're losing customers because of bad performance. You can. But you can also enable the impossible. What's today impossible tomorrow could be possible. If you call in to a call center and I've got you on the phone and I can learn something in five seconds about you, it's really relevant. In five minutes, nobody cares. That's the analytics piece you've got to do with this whole persona and the Twitter data and the Facebook data. You're blending in this active data sets. It's a great story over in Germany about a retailer who said, you know, we got complaints and we're going to give refunds or we're going to give actually credits to people who complain. You know what happened? Everybody complained. Even people who weren't their clients complained because they knew they were going to get a deal. Word got out. So you really have to connect the dots to say, well, did Dave, he just tweeted about me and something horrible. Is he actually my customer? Did he really just leave a store and the manager was nasty and all this? Or is it just he's fishing for money? He's trolling ahead, right? Yeah, or the level of inspection on the keywords is not deep enough to get insight other than the words they use. So the value we can get from the Twitter data says I've got to be able to combine it with something else. Like, where were you in the store? What did happen? You're still in the parking lot. Can I get you to go back inside and I'll give you something because I know it's really you. It's not just a troll. Quick word on security. You mentioned it in your keynote. I always think of resource access control facility as the gold standard of security. Could you bring that level of gold standard to this new world and how do you do that? With things changing, you talked about the perimeter and now looking for a detection and talk about the state of security and how IBM is bringing its ethos into the new world. I think, and our head of security, Brendan Hannigan, would do this far better than I could. He's the head of the new business unit that runs, that's dedicated to security. But to me, it's a combination of the perimeter. You're not doing away with the perimeter. But you're also, and the other thing, I think, is that people think the more products they have, the more secure they are. And they don't see that it's, you know, I've got overlap here and I've got gaps there. It's really hard to see. It's just like, we'll just throw another product at it. So teams we've got, and Brendan's got a combination of people that can actually do the work. So they've got services people and the software, obviously, and some hardware as well in there that says I can do the work to see and I can analyze patterns of behavior so that it's not just keeping the bad guys out, it's knowing when they're in, what they're doing. And if they're doing something they shouldn't be doing, stopping them from doing it. So to me, security can be brought to this world. It's just that it has to be managed as a, okay, I need one of those and one of those and one of those, not three of these and none of those, because that's the world we're in today. Tom, thanks for coming on theCUBE. We really appreciate your time. Know you're super busy. I'll give you the final word. Share the folks, the bumper sticker for the show. What's the vibe here for the folks that aren't here? IBM Edge this year. Put it in the little bumper sticker. I think it's future made. I think that the things we're doing, we talk about is, they've been around for a while, but everything that I've been talking about is about the future. I mean, the future is now, but we're making this stuff for the future. Tom Rosamund, Senior Vice President of Systems here at IBM. Edge, this is theCUBE, live in Las Vegas. We'll be right back after this short break.