 Live from Las Vegas, Nevada. It's theCUBE. Covering IBM World of Watson 2016. Brought to you by IBM. Now, here are your hosts. John Furrier and Dave Vellante. Okay, we're back everyone. We're here live at the Mandalay Bay at the Watson Convention World of Watson World in Watson. How did Ginny say? World of Watson. Of Watson, in Watson for Watson. With Watson. With Watson, World with Watson. Here's theCUBE live here. I'm John Furrier, Dave Vellante. Our next guest is Inhi Chosa, who's the General Manager of IBM Collaboration in Keith Cratch, who's the Chairman and CEO of DocuSign. Two stars in the industry. Great to have you on theCUBE. Good to see you again. Great to be here. We're a big loyal customer of DocuSign. Just want to let you know that. Just let everyone know. I'd love to hear that. The best product. So easy to use. Love it. Get the plug in. Then you let us pay us later. So, Inhi, you got a new job. The workspace got a little teaser yesterday. There's new products. The analysts were raving about it the other night. This is a game changer they like. It's not like a Lotus Notes kind of thing redone. It's like a whole new thing. It's a brand new service. And then DocuSign's been, before we get to there, what's the deal? Okay, so let me share with you our announcement yesterday. So we're creating a brand new category around Watson work. And it represents the family of IBM applications and partner applications where we're going to infuse Watson into kind of understanding you personally, contextually, so that it saves you time. It saves you your energy and focus on the things that you want to get done and the more meaningful conversations you have in your environment. So one of the first things we've delivered is what we call Watson workspace. So it's a new end user application for teams to have communications and chat. But what we've added to it are thoughts around moments. Oh, let's say you're in a conversation stream with a team of 20 people and you get interrupted throughout the day or you've gone away for business travel and you come back. How do you get a 30 second snapshot of all the conversations that happen? So we've included Watson APIs within it to curate a quick way to say, I have 10 seconds, can you give me the 10 second summary? Or I have 30 minutes, can you give me the 30 minute summary to focus your time and attention? In addition, we also launched a Watson Cognitive work services. So the work services are APIs for our partners to leverage and our enterprise developers to leverage in their enterprise application. So one of the use cases we kind of showcased yesterday was, let's say you have a client, you're working on a sales opportunity, it's in Salesforce, within the workspace application you can actually surface that Salesforce opportunity for that end client, have the team kind of work on it, check your transactional system or BI systems, come back, surface the PDF of the sales proposal, sign it, click DocuSign and you're on your way. So we've really digitized these, what I consider personal micro productivity flows in sort of new exciting ways and we're really excited about the partnership with DocuSign along with Box and Cisco and Apple and others that are in the space. Without having a context switch to all these different platforms. You got it, you got it. So the cloud native rage right now, you talk to the public cloud, you see we're talking about cloud, cloud native is taking advantage of APIs, microservices, really a developer's dream. But the reality is most businesses have relationships with other companies. So you have a strategy with Box and DocuSign, so the SaaS leaders are all kind of coming together. What's the magic in this? Because standalone SaaS DocuSign by itself is a great solution. Shoe horning it in into a product is hard, making it elegant and clean is the ideal solution. How does that work? So if you look at, for example, with DocuSign, you can use it three ways to make it simple. One is for sure, stand alone, right? How you guys use it, right? We're closing the deal, you DocuSign the waiver, then you know you're having fun, right? Or the other is integrated into other applications. So we have a hundred out of the box integrations with IBM applications integrated into Office 365, Salesforce, you name it. The other is, and this is all through our REST APIs, is and about 68% of our sends are through our APIs. And so that's developers writing on top of that. That part of our business is growing about 500% on an annual basis. So that is turbocharging the DocuSign Global Trust Network. So now we're adding about 130,000 unique users on a day. We have about 120 million unique users and we're adding that. And a big part of that is through the APIs. You said the majority of your sends are through the API? Yes. Is that right? Okay. Yeah. All right, so on this deal here, what's the relationship now? Talk about the deal. So like you're integrating DocuSign into Workspace. Yes. So are you selling DocuSign? Is it a sales relationship? It's at a very base level. First is we want to design together the APIs in an open way so that the developers themselves can actually develop it in the natural, let's say flow of the work. So if you're doing mortgage lending or processing or if you're doing HR onboarding of new employees or you're doing clinical research trials and pharma, you're going to follow some workflow process and you're probably stitching together a couple different services. What we want you to be able to do is do that workflow for the individual or the team in the natural ways in which they're going to look at various windows and tools in their application sets. So our design point is to make that experience for the end user so awesome that they just want to work this way. It's so intuitive, it compels you to do it. So the default, so I'm just trying to understand, the benefits to you is more distribution on Workspace. What's customer base? Yes. That's right. But the customers, are they going to be having a native in there or do they have to sign up for the service on board on their own? This is more what I would say native in terms of the broader ecosystem of partners that we want to have. So it's not actually we launched yesterday over the first 15 partners, but it's really an open approach. So we want as many partners in the broader ecosystem. The other thing we've realized that IBM can play a really unique position in is there's a lot of enterprise data that is in the enterprise and they're in systems that we understand, right? They're in ERP systems, they're in CRM systems. They're also on the mainframe. And one of the use cases we showcased yesterday was how do you get data that's on the mainframe in partnership with Rocket Software in a BI query system that then gets surfaced in a workspace application? Another example is we showed SAFO, which is a startup in the microservices space. So you have SAFO plus a telecommunication company like GenBan or you could use Twilio Earthers that are surfacing audio capabilities and pulling out cognitive moments in those audio capabilities and then surfacing that in workspace. So our design point is to make this stuff easier. So how did the partnership come together? Why IBM other than the obvious reason IBM's huge, but what else was there? Good sales potential. Well, because they're huge and there's lots of them. That's right. Well, the interesting thing for us, if you think about what DocuSign does, it's we bring two parties together for agreement. That's perhaps the last unautomated place in the enterprise, right? Because you've spent billions and billions of dollars rolling out ERP, CRM, productivity, all that. But when it comes to transacting with your most important constituents, consumers, customers, suppliers, right when it comes to the moment of truth, it breaks. I was just going to say moment of truth. The moment of truth. Which is also the moment of elation, right? You buy your home, get your first loan, close the deal. But it also is the source of truth of the data and the most strategic data because it's who, what, when and where. It's at the point where commerce gets kicked off. So that is a natural. The other thing that's a natural is what we do is we get rid of the paper. So for so many corporations, we're the first step in their digital transformation. Or we're a catalyst for it because before you can get data into machine learning, you've got to get rid of the paper unless you have a ton of guys entering it. So, and it gives you- It's more efficient too. Your workflow is so much easier. It's so much more efficient. So if you think of DocuSign, yes, you think of that moment in terms of when you, but you can take a document from anywhere, data from anywhere, powerful workflow engine, and you have a total audit trail. So when it comes to compliance, when it comes to enforceability, we reduce the risk in terms of security and compliance. We always say, as we're growing our business because we're self-funds, we're always innovating as fast as we can without running out of cash. As we always say, you move to your next point of failure. So you take the paper out. I get that. It's very inefficient. You take the DocuSign because where's the contract? Just get stuff done fast. But now, on the workspace side, the interruptions you mentioned, the memories speaks to the next bottleneck. The next bottleneck is, wait a minute, I had that document somewhere in some work stream. Where is it? So the question is, that's going to be happening. So what's the opportunity? As you guys are expanding your status, going digitization, you're bringing a workspace to kind of put frame around people's virtual digital lives, home and work. Where's the opportunities? Well, one of the big areas for sure, if you look at this DocuSign Global Trust Network is for each member of that network to bring in additional value added capabilities. And this is where Watson comes in. This is where the cognitive capabilities come in because depending on the use case, you can help them make smarter decisions, smarter approvals, smarter agreements. So that's a huge value, that's a huge value add on that network. Just adding on that, a client's been wanting to kind of digitize their processes for a while, right? And DocuSign accelerates how you're thinking about automating that process flow. And two areas where I think cognitive really can focus on is, one is what I call sort of advisory expert services. So some of the things that you're seeing in oncology, health, education, so forth. The second area is actually digital transactions. And you can be smarter, smarter contracts. You could be smarter in terms of the network in which you're working in. It could be even things like automatic document analysis before you sign. Yeah, so this is interesting because everything we do today, we do outside of DocuSign until we actually ready to sign. But, you know, things, there are similar patterns that develop, red flags, trip wires and contracts that come up all the time. No, that's a deal breaker, blah, blah, blah. You're saying if I'm hearing it correctly, that collaboration can occur inside the system with the assistance of Watson. It doesn't need Dave or John every time to say, okay, you know, let's flag this. Yeah, yeah. So for example, one of the demonstrations we just gave at 2020 is, so you're leasing a car, right? If you buy a Tesla, you're DocuSign, right? We're just rolling out to four. So you're in the car, I want to lease it. Here's your three different options. Boom, DocuSign kicks off the parametric workflow. You need insurance. Well, here's the different, boom, kicks that off. Okay, I need to pay for it, right? Okay, I'm going to choose which method of payment and utilize in document payments. You have your choice, you know, Visa, MasterCard, you know, Google Pay, Android Pay. And then once you hit that, it unlocks the car, it starts the engine, so Internet of Things. Sounds like a B2B exchange. Like the old days, but now faster. Yeah, faster. It's a digital handshake, instantaneously. And you're authenticated and you have an audit trail. Little inside joke there. In he, the moment of truth concept is interesting, but now we heard the weather folks came on, Mary came on, talked about, you know, having Watson go at the archives and bring back all the weather data. So I want to ask you, with DocuSign concept, would Watson be able to do something like, go out and look at my contracts, for instance, my lease, my business contract and say, while I'm typing the email, oh, you can't type that because you'd be breached of your contract. You can start to think of imaginative ways that Watson could do interesting things with that. Is that the kind of direction, mindset-wise, you're thinking? Yeah, what we really, both of us, want to do really well is help enterprises, whether you're in financial services and banking, whether you're in pharma lifecycle and drug and product research, is transform your process in a way that it removes all the friction, naturally, and do it that also is a sensitive to the enterprise data, right? The privacy aspects, the trust aspects of both brands are incredibly important. And then if you can put cognitive on top of all of that to say, hey, instead of four steps, you could take one step and still get to the same outcome. You can do a lot of different things. And the steps can be everything from simple things like, shortening a process step, but the more advanced things that we're thinking about is not only documents, but other types of forms and content. And as you get into the area of digital signatures too, it kind of opens up potential windows for new services across multiple industries. And you know another good example of what Enhi's talking about. So say, okay, you docusign your mortgage agreement, right? Now, smart contract integrated with Watson, so it's all sudden that you had a 15-year variable, the rates change without even doing anything. It can get you that lower rate. So that's the definition of a smart contract. It will automatically know based upon the variable conditions. And the plumbing behind that is a set of APIs that... Yeah, that's right. And today a lot of the burden, if you think about personal productivity and team productivity and work productivity, the burden is on the individual in terms of the cognitive load to make sure, oh, did I include all the right people in this conversation and shoot? I sent out an email, but only four of the five people were on it. I forgot someone. And it was never intentional. It was things that just happened because of the overload of... So it kicks off an automatic sorry message. Hey, I need to include you, because I'm sensitive, Watson knows that. That'd be right. So anyway, we know we're only getting a sense of people. You weren't invited, never coming in. But it's also, you know, this important point is on choice and openness in our approach around our platform. And that you're going to see, the reason why you see us partnering, not only with DocuSign, but with Box and Cisco and others in the industry is that we have an open approach. We want enterprises and our clients and our teams and organizations to actually do the things that they need to get done in order to progress their customer care, quality and service, safety for their employees or the clients that they serve. It could be anything from retention of clients to operational efficiency. So we want them to be able to mix and match the pieces that they need. And you know, that's also why this is a natural partnership because we've emerged as the global standard, this new area of digital transaction management. Core to our strategies thrive in a heterogeneous environment. So we have to be Switzerland by definition and IBM is as well. So living in that heterogeneous environment is absolutely strategic. At every inflection point in history, my observation, you know, being in the tech business for so many years, is that it's always so much clutter at during these times of expansion. And as you start reducing the steps down, like here, it's natural you're embedding in, you're saving time, you're reducing steps, making things elegant. Those are forms of success. Absolutely. And you know, just last Thursday, we announced DocuSign payments where you can DocuSign and pay in one step. And that just takes so much friction out of the system, right? You DocuSign your lease for your apartment, boom, here's your security deposit first month. So just when you thought everything was all cool, you have the moving train of technology coming down the tracks. So how do you guys look at things like blockchain? Because now that has similar, it's all open source, it's open, it's got that trust, IBM's heavily involved. Opportunity, what do you have? For us, we look at it like mobile turbocharged DocuSign's business. Blockchain will as well. Actually that demonstration of that car lease I gave you, was built on blockchain technology. So we look at this as an enabler to the DocuSign global trust now. Awesome, and you look obviously at IBM as blockchain. We're huge, we definitely believe like the distributed ledger and the database is incredibly important behind DocuSign because of the transactional nature, but also the security aspects of what you can do and the speed and all these elements to automate and just, as you said, put on accelerators the process transformation. I think one of the unique aspects of DocuSign that's done really well is the end user experience. So when you think about applications, enterprise applications that are running and leveraging those transactional records, you still need user applications and interfaces that are thoughtful about the process. What is it? In this case, he's talking about leasing a car and transferring that asset across parties. Well, yeah, the transactions recorded in the distributed ledger for blockchain, but the user interaction to make it really simple, DocuSign's thinking in a very creative way along with Visa and others on how to do that. Guys, thanks so much for coming on. I really appreciate it. Keith, I'll give you the final word, share a story or color around this moment of the technology and as you've been in the industry for a while, you've seen the cycles come and go. Right now, we're living in explosive time. What are some things that you're hearing from customers? What can you describe the current situation? What have you heard anecdotally? Share your thoughts on some color. I'll give you an example, and I'll pick one in the country of Germany because typically they're not fast adapters to technology. They have tough privacy laws. So I was able to speak at Deutsche Telekom, top 1,000 leader conference. Our sole focus was digital transformation. And Tim Hodges, who I call him the closest thing to a German Silicon Valley CEO, he introduced me, he goes, he goes, you know, I'm also the chairman of the board of T-Mobile and he goes, we rolled out DocuSign to our 3,000 retail stores. And they, since we implemented them, saved 600 million pieces of paper, put $200 million of the bottom line and took the average sign up time from 68 minutes to less than 10. Now, when you get that kind of value proposition and then you love this, and then at the end of the meeting he was giving his charge. And he said, you know, in order to steer the ship, it has to be moving. And the way to get it moving is with quick wins. And we get quick wins with DocuSign. I love that. And that's in Germany. That's digital business in action right there. That's it. And now you got to work with us. Guys, thanks so much, appreciate it. You're watching theCUBE here live at the Mandalay Bay. I'm John Furrier, Dave Vellante. We'll be back with more after this short break.