 Unseen why is this relevant? Why is it important when we hear talking about cloud and mobile and everything else two things one is From a marketing standpoint IBM can talk about how it's modernized the mainframe. It's all true But from a financial standpoint as the mainframe goes it really is a great Business for IBM why because it's high-margin. It drags along software. It drags along other services And so I think that's going to be a little hidden secret of IBM's business this year Just like when Windows when Microsoft comes out with a new Windows release everybody was surprised Were you shocked that Microsoft all of a sudden started throwing off more cash with the Windows upgrade cycle? No, you weren't surprised same with the mainframe. That's going to buy IBM time To bridge the gap between all the strategic initiatives cloud mobile analytics social big data Bridge the gap between the new stuff and the old kid. I got to talk about IBM's place in history You know it's your mainframe. That's a good point the mainframe to me is the secret weapon here at the stuff That here the story that no one's really talking about on the mainstream press. It is the backbone of IBM It's the computing industry. This is their their heritage, but it's evolving into something bigger for them They're modernizing it. It's it's big iron That's a term that that's been that has been called the old glasshouse mainframe days But now in a distributed computing market big iron means performance I think that's a big thing the second thing is blue mix blue mix is getting significant momentum and a lot of Energy is on underneath that I guess putting a lot of wood behind the arrow in cloud energy patents and again You know this morning top news Apple was told By a jury to pay a half a billion dollars in a patent trial they'll appeal of course They got tons of cash, but patents I've just got a ton of patents Apple is twice the value of the next public company. So IBM they can they be like Apple? I mean in the sense from a value standpoint IBM was once the gold standard in terms of stock price You can't go wrong with buying IBM. You can't go wrong with IBM blue chip stock Obviously, they got they're doing some things there Apple certainly showing the business model is direct to consumer Just kind of as a company They have to get their well their products together and deliver solutions that have high margins It's a really good point you're making but again when you go back to the sort of Gerstner days The the mainframe sort of gave them bought them time to invest in things like e-commerce and web sphere and their software business And and and I think I see the same thing happening here. I think the big question John is what does IBM come? I mean it was largely even though they didn't market it that way But it's a largely a services company the past decade Can it be your question about can it become like Apple Apple's a product company? Can IBM come become a product company and other than the mainframe? You know, what's the product that IBM has that is the number one? Product that you associate with leadership in the marketplace. Well, would you argue that Apple's a solution? It has a collection of products. I'm an Apple user. I got an iPhone. I got it. I got a Mac I might buy the watch. I'm wearables around the corner the solution is lifestyle. It's computing So so I would argue that products have to be there to make the solution. So yeah, but but Apple's got great products, right? It's got the best phone. It's got the it's gonna have the best watch It's got the best pad IBM traditionally always had great products. They were the leader But now you got to argue and say, okay, why isn't those products leadership turning into value and solutions? You say products need to be modern modernized solutions need to be tightened. Let's go through it. Let's go through it Who's got the best cloud? Amazon, okay. Who's got the best database? Well, I would argue open source Oracle in terms of industrial string. Who's number one in database? Open source, okay Who's number one in storage? EMC. All right. Who's number one of mainframes? IBM. Okay. Go through the list, right? Well, I mean mainframe. Who's number one in apps? How big is the mainframe market? Who's number one in apps? I don't know. Okay, but no, this is my point. This is my point. How big is it? So can IBM doesn't want to become a product company again? It used to used to be so you think the database company's Oracle? Well, it is Oracle's in the number one database company. How do you know? I mean it is right now Is it going to be affected? Is it going to be affected by open source? Absolutely All right apps. All right, so Microsoft. So how would you rate IBM's product portfolio? You know, Jeremy Burton at EMC said to me in a crowd chat, how are the portfolio? IBM has always had these different divisions. So this is what in my opinion when Gershner chose to go after services. He said we're going to be number one in services Okay, he chose to say, okay, we're going to have good products Great products across the portfolio. We may not lead in any one category except maybe mainframe But we're going to have great products best to breed. So the portfolio is fantastic. Okay So that's the question is what do they want to be in this next era? Do they want to be number one product company? Do they want to be a number of solutions company? No more cloud company? Here's my thing. I think I here's my take on what I think. I think IBM needs to own the cloud all in They need to go in and do whatever it takes to pull up the patents Reorganize we heard that from Nancy Pearson yesterday. The cloud is the critical link blue mix They're playing with a cloud foundry the foundation I get that it'll accelerant But they need to come in grab the play-doh shape it up and own cloud and deliver deliver everything on the cloud And then they got to win the big data solutions. Okay, we heard that from Doug Bailoff He nailed it drowning in data consumption of utility computing whether on-prem off-prem and blue mix and the cloud Division is critical. Everything else would be the pacing item off the cloud. Yeah, so what I'm calling cloud a product So I really believe so why is it John that Oracle always talks about IBM and why is it that San Thomas on us that? I don't worry about HP. I worry about Oracle. It's because of R&D and the key in this business It's a the technology business you have to take R&D and you have to translate R&D into product that sells or solutions that sell Right and you have to cycle those products very very quickly because obsolescence will kill you in this business That's why Apple is doing so well obviously in the consumer side that consumer mentality is coming into the enterprise It's here and that I think is IBM's big opportunity look at Watson It's spending money like crazy in R&D the Steve Mills billion dollar playbook play That is the key in my opinion to IBM's future Can they execute on that and turn that billion dollars of R&D into product quickly cycle into the marketplace and Leadership that will drive cash flow and that'll drive competitiveness. So again IBM. Let's talk. Let's look at this from a big picture standpoint and It's interesting Dave. They got a lot of work to do. I mean if you look at the different divisions They got a boatload of work to do now. Let me ask you a question You kind of asked Ray Wang this yesterday. You're sitting down with Jenny Right. You're in the boardroom. You're addressing that I've been bored. What would you do? What would you tell them to do? Well, I would ask her hey, Jenny You want me to sugarcoat it? We want me Of course you don't have to ask that question. Give it to me straight. Here's what I would do All in on the cloud win the cloud business number one. Okay, you got to own the cloud You got to clean up the bureaucracy Internally for for agility you got to go faster You got to own the big data fabric not necessarily be the solution provider I think the Apple deal and what they're doing with Twitter is the partnership I think the collaborative nature of kind of partnering with those big whales is right of them So do what you're doing now, but do it faster. I would put the main frame out as big iron I would market the hell out of that as big iron ideas the winning get the God box I would market the hell out of the main frame, but you got to win the cloud like in the next 12 months You just can't like you got to go faster. And what does that mean developers resources and everything the storage group You got to go to storage and clean up storage and make storage the epicenter of the action Make storage products mainstream make them relevant and go to emcee and just put out a great Product on storage and let the middleware stuff evolve around that and and I think that was what I would do Wouldn't they say John aren't we doing those things? Yeah, I think the answer is yes. I mean that's fun fundamentally you just laid out You know, maybe there's a couple of things we missed, but you just fundamentally laid out Well, I'd also tell you keep the buybacks going keep wall street throw the wolves meat You know do the buyback thing. I have no problem with the buyback people argue that that's a financial How could you not do that? Yeah, that's like you don't pass the intelligence test if you don't do stock But why do you want to have a distraction on execution? You want the wolves wolves of wall street? You want to throw them in the cage and feed them feed them the red meat Do the buyback control the flow do all those financial engine things to keep the returns going and heavily move the r&d Needle forward and focus all the execution internally to straighten narrow on cloud and everything around big data And you know everything else falls in that you look at internet of things If you look at what this was trending on on twitter today, Dave You'll see exactly the conversation space right the conversation space around the customers is You know devops cloud internet of things big data And a lot of other marketing stuff new way to work. It's just you know directional marketing But the meat on the bone is cloud and big data and everything else internet of things mobile all are part of that fabric So I would own the fabric own the cloud infrastructure as a utility vehicle And just absolutely not let amazon get an inch in in my client base. That's what I would do All right, what would you do? I think I would I would do a number of the things that you talked about that they're doing All right, but I also think you're right. They my big issue with IBM is they I said it before they've got to translate that r&d Into product right now. We've we've seen that with watson, but it's not consistent across all the divisions You mentioned storage for example A ticket take that as a good example. They've got to take their r&d and Accelerate the product life cycles. Why is a company like emc lead in a market like storage? It's because it's got Tons of products coming out now. IBM software group. I think does a really good job there The other thing I would do if I were ibms. I would figure out a way to consolidate Maybe through that middleware layer all my sass Applications, I think they've got to have a fusion like initiative or a fusion like initiative to integrate The top of that stack the sass apps. That's to me a huge opportunity for ibm And it's a big pill to swallow, but I think it's something they've got to do Okay, we will be right back into the short break with our next guest day three of wall to wall covers again full Scheduled today here inside the cube. We are at the ibm go social lounge go to interconnect go.com That's the social experience the digital experience website That's powered by the crowd all the video feeds there from the sessions the the keynotes And the cube and some of the developer action again three channels of video The rest is powered by the vip influencers and powered by the crowd amazing good stuff on there Trending stories from the crowd by the crowd that's a crowd sourced social experience And again, if you want all access to some you know d by ibm stuff you can sign up for that as well But really it's it's a great place to find out what the crowd is doing what the influencers are saying And what's going on here at the show. So go to interconnect go.com. This is the cube We'll be right back after this short break location location Here's the location that matters the most here or here or here It's wherever this is to get customers to come here and stay here You're going to need an app that connects to all your systems so they can bank shop Do what they need to do and you've got to do it fast before the competition does It's tough out here. You better be on the right cloud Today, there's a new way to work and it's made with ibm. I am 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 clad era and you're watching the cube Hi, I'm Jim you founder and CEO of bright edge and you're watching the cube First time on the cube. It's fun. We're gonna get I think 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 There's no filtering of questions. I was not prepped other than saying go and get up there So it was quite good because part of the 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. 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 Live from Las Vegas, Nevada It's the cube at IBM interconnect 2015 brought to you by headline sponsor IBM Hey, welcome back everyone. We are live in Las Vegas. This is the cube silicon angles flagship program We go out to the events and extract the signal from the noise. I'm john furrier with davilante hosts Our next guest is begs wants a director marketing for IBM blue mix and we're psyched to have her back on the cube Last year we interviewed you one year ago and blue mix got kicked off It was just a beta now. It's blowing up huge And all the great success welcome back and congratulations. Thank you. Thank you It's been it's been quite a year Steve robinson says we kind of count these in dog ears feels a bit like seven And it's been absolutely exciting. So we've in the span of a year because when we met at polls We were just at beta You know, we were we were onboarding developers getting feedback and now we have over 102 services on the platform So rolling out rapidly and we have the Deployment models with public private and then we announced local at the show and it's just been it's been tremendous Well before we get into the details there's a lot of things to highlight I want to just say congratulations because we we cover a lot of companies I want to when when we meet people and they said they're going to do something and then they do it and do more And over overachieve on the on the mission because you guys were very cautious at first You got blue mix out there and then the win was at your back the CEO says we need to win cloud Right and so you get the little reorg going on Nancy Pearson was on On yesterday shows a little bit of color on that and now you got developers. You got resources at your disposal So take us through that. What happened? I mean, obviously blue mix hit a nerve Obviously Right out of the gate the scientists were pretty strong But you didn't hit that tipping point. When did you take us through the tipping point? When did it go? Oh my god, we got a tiger by the tails It was when the resources came in was it before or after? Yeah, it was a bit before that so it's really in the middle of last year So as we we had incredible adoption early on so really building blue mix from an open source perspective building on cloud foundry strong partnerships with Cloud Foundry and the team and then just onboarding service after service It's really own reddison and all the different partners that we've had and then around October was when we brought the Watson services on and we had been steadily growing You know the developer following and the baby pre-reorg or that was pre Yes, and and the teams have always in blue mix is a platform that we're serving up. Um, you know the IBM Services plus our third priority and open source. So we even though. Yes, we just reorganized We've been working across the team since day one because we have the internet of things services, which are fantastic Those are taking off really well. We have the Watson teams We have the mobile teams with the dev ops teams So we're constantly working across and now we're reorganized into the cloud unit, which is fantastic Because it just helps accelerate even more So, you know any agile business that has continuous integration like the cloud internally you have to kind of think that way And we're hearing that I internally at IBM There's a transformation to be more agile to go faster, which everyone's saying go faster. Everyone wants you to go faster I should see you know Steve said that yesterday Um Was it with the tipping point that you had success and you doubled down on it? Was there the proof point was Watson says hey look at we can do this Was that the key enabler? Yeah, the tipping point for us was Really in the early stages listening to developer feedback And making sure that we were re-architecting and designing the product that we have an incredible onboarding experience So developers were real from marketing standpoint. We were getting the word out and really focusing on building community So, you know a few months into the year we started just very small grassroots meetup groups, right? Now we have 71 countries every other week having meetups where they're building applications on blue mix So for us it was it was getting that community started And then having the community realize that we were taking their feedback on board and we would get even on our twitter handle We'd get updates saying whoa, thanks blue mix didn't didn't realize you were listening to uh to the feedback And they would mention what they had you know, tweeted at us as far as um input and how we had made the change And so every other day we're posting, you know blog posts with updates on How we're working with developers just to make it um a lot easier May can you talk about your open source strategy and how it's evolved as a company? I mean IBM was I think the first large enterprise company to get dive into open source You went in big billion dollar investment way back when the linux story is renowned, but it's really evolved You use your your muscle your money and your vision and and your open source history You know in the community, right? How was it evolved? How is it changing? IBM for over 20 years We've been driving and fueling and having engineers really involved in the open source community and helping to Move that community along lift it up and and really anything you're doing, especially from a hybrid cloud standpoint You have to have open standards. You have to build an open architecture You have to be embracing, you know all the various open source technologies that are out there You saw the work that we're doing and you spoke with the docker team yesterday And and so from our perspective is there's there's no other way It is open by design So all of our teams are very focused on making sure that we're working with the cloud boundary foundation And getting input from all of the companies that are involved in that foundation because together We are going to create, you know open standards and drive a momentum Because if you're an independent developer or even if you're a large enterprise Acting at the speed of an independent developer that you saw yesterday with city You've got to be able to move and be portable and if you're locked into proprietary standards You're just really there's there's nowhere for you to go in this new world and this all the integration that you need to do Okay, but there's another nuance there that I want to explore with you is that in the old days It used to be you'd have a committee right everybody would maybe pay to get into the committee And they set a bunch of standards and nine times out of 10 or 99 out of 100 that it would flop And people a lot of people said that would happen for instance with cloud boundary You guys came in and gave it a big lift. They're talking that way around the open data platform now. So What's the difference is it just that there's an open source component to it? Is it that simple? It's the community So I mean open source is successful because of the community Listening to the community ensuring the community has a voice and then the companies that are involved at you at Maybe more of a you'll see to the table from a leadership perspective with the foundations It's their their role and their mission to be listening to the community and bring us forward if any of those fail And you know the companies involved aren't listening to the community or the community is not engaged It doesn't feel engaged and they're not innovating the platform It's not going to work. So that's why we're very focused on building a sense of community listening to what's out there and then Enhancing so you know the announcement with docker around enterprise grade containers We were very specific with the way You know we approached that and named that and you look at you know the secure gateway that needs to be added You look at the enhancements we've made from cloud boundary on auto scaling So really looking at what is the community looking for and then how do we then you'll pay it back So what's the message to developers? I mean, it sounds awesome. It's not easy what you just described Just oh, yeah, let's get the community. Well, it's hard to build community So what's the message to developers? They have a lot of choices a lot of options. You know, they spend time in various You know areas what's the message to them from IBM? From an open source standpoint Just to be involved be committed be and there are projects every day within the open source community Where you can contribute code and you can be involved and it's really about Being very active and vocal and having having a seat at the table So I mean our teams were constantly looking through stack overflow and the feedback that we see there Feedback on reddit feedback on github, you know, how how often is the code being forked blood? What kind of adoption metrics are we seeing so from a developer standpoint? I would say it's time to lean in and be very involved because I mean not just IBM But all the companies that we're working with across Absolutely listening and I mean this is It's such an era for developers where they have a seat at this your big community table It's not easy, but it's the right thing to do It's about the docker and the reddit so this is modern stuff that developers want Dockers the hottest trend, you know, it's talking to docker folks We interviewed Solomon years for a couple years ago in the queue before they changed their name even was like And we're so excited and all of a sudden they're now the the bell of the ball As you say everyone wants to get married with docker reddit also is compelling node These are cutting-edge technologies that are part of the integrated stack So how do you guys talk about that in contrast to say amazon because amazon and developers Are used to these things elastic means that they have a auto scaling. What do you guys have now that's Directly competitive with amazon? Well from a from an application development standpoint I think where we've gotten advantage is you look at the history of IBM around dev ops, right? So bringing together development operations in this continuous delivery life cycle and really looking at how are you going to quickly build an application? And then that's that's not the end of it, right? You now have to make sure from a security standpoint Or you know and you've heard from mark van denhoff yesterday and the team on how are we Providing strong security tools where you can do, you know in-process application scanning and then you've got to deploy You've got to auto scale you've got to bring it back and you've got maybe an issue You've got to remediate and then redeploy so for us It's really looking at at mobile app development and web development in that developer life cycle And then in our conversations with our partners the open source community It's ensuring that we are helping to accelerate that every step of the way I mean the announcement around api harmony great example where we've got kind of the era of the Impatient developer and we're all of us where you don't want to spend time writing a lot of code But it's already been written you don't want to spend time, you know creating integration and creating apis If they're already out there But you need or the tools at your fingertips where you can quickly build an application search all the apis that are available And your private apis you know connect that into your mobile applications So you're to market faster and then it's about you know enhancing and uh, you know and really bringing differentiation So what do you say the developer out there that's watching? Let's give you the the profile. Yeah, I'm comfortable with amazon I'm not sure I should go on bluemix Maybe I should maybe the best move is not to move Or maybe they have something I want that I don't know about so talk about those two scenarios because like they're comfortable They're like, okay. I'm fearful moving over because I'm comfortable over here with my tooling You know developers are as you work with them and then there's also the fear of missing out Like can I do better on bluemix? So that's the common theme that we're hearing on developers So how do you how do you talk to those specific points? Yeah? And we uh, we have those conversations quite a bit and it's really about looking ahead at your strategy and at what point especially for Developers within large enterprises at what point do you need to connect with the back end systems? At what point do you need to ensure that you've got secure connectors or european clients or latin american clients? Big concerns around data privacy, right? And so how are you sure that even the data centers that it's hosted in you know? We have 40, you know data centers within software and growing every day And those are you know owned by ibm those are secured And it's really looking at where are you going to go as you expand your application And do you have the right partner in place the right steps along the way that you can And more importantly that you're not locked in because as much as I mean We have a lot of heart for bluemix and what we're building We want to ensure that we've built it to be open because we also want to have you know low barrier exit We want to make sure it's a great experience And it's our job to make sure that we've got the right services the right technology So you know they don't feel locked in absolutely. So the lock-in is the lock-in is a satisfaction. It's a It's a experience. It's not a oh, I can't move because it's going to be too expensive to get out Right and there is A sense of expense that we're starting to see around the hidden cost of data And as you may have walked into what you thought was a freemium model with some of the providers that are out there And you're scaling and now you have an ornament amount of data coming in and you're looking to store and provision that We are hearing the there are hidden costs there that are also kind of opening the door to other players that we've We've we know that we understand what you're going to be facing down the road So we've built the the pricing application the platform to allow for that Whereas there are other platforms that haven't because it is you know working at that kind of volume and scales a bit A bit new to them. Well and having to move that data is a problem too. That's what you mentioned 40 data centers The more than the merrier I say Give us some of the statistics. What's happened? How many services we did a little bit yesterday go a little deeper What's exciting? What are the the the proud pieces of the the platform that you can share the developers? Yeah, it's been the integration the tight integration between The design teams and and listening to developer feedback And then constantly designing the platform to have an amazing onboard experience So we announced yesterday the the watson zones and the internet of things zone and these are really designed to be A way to onboard into blue mix for developers that give you all the tools and resources and training that you need In order to start using cognitive applications like watson because it is as exciting as the watson services are You do have a moment where you sit back and think How am I going to use the power of watson in my application? So we're creating these onboarding zones. So that's been huge advancement really excited about that You're going to see a lot more zones come out for us this year and then the area of internet of things So we have our iot services You had nigel and ian on yesterday from silverhawk. How about racing? With internet of things. They're fantastic. Tell me about business outcomes Get to finish the race and win, you know win but finish the race And you have the monitors on so you know if your heart rate's going over That's very important data And so so what we've seen so the exciting areas are really the zones and then the adoption and growth around internet of things space And it's it's funny our our teams of developers that are out working with clients and out working with startups If you open up their bags, you're probably going to find a light bulb a pebble watch A bunch of connectors. I'm surprised anybody can get their security nowadays that's on our team because we have all these demonstrations that we're doing with clients of You know imagine if you have as you're trying to create a smart building for your employees And you have their mobile devices that are You know sensing and and pinging the the thermostat system the lighting system in the office And as they're driving in and getting in proximity things start turning on inside the office So we do demos with light bulbs and watches and and really are starting to think through A smarter planet and smarter cities initiative with internet of things And how are you using bluemix and the power of cloud to you know bring that to life within within cities and within enterprises That's crazy. Go ahead. What's the developer persona look like these days? I mean you talk about the startups you talk you think of the hoodies you think about the enterprise guys Are those two worlds coming together? They are in in the fact that a lot of large enterprises are building innovation centers inside of themselves And so they have Whether if they have foundries or innovation centers or groups of developers They're really looking to harness that that speed and uh an innovation that we've seen from you know Some of the enterprise developers and then also the big advancement that we've seen is the continual growth of the hackathons So, you know, we know city we've been partnering with at&t as well on on creating as many opportunities for their internal developers And external ecosystem of developers to be bringing forward new ideas to them And then what we we don't talk about as much publicly are the internal hackathons we do inside of large corporations So we we work with the cio's office. We go in 24-hour period and their developers are working on bluemix within 24 hours Well depending on the number of developers they have we'll have you know 50 75 100 mobile apps that are built And then shark tank style, you know, they pitch the apps to their cio and we vote on them together You know with the company and then that's the roadmap for you know, their 2015 plan on what applications they're going to bring to market So talk about the geekiness of IBM and we were talking about this on the intro about what IBM should be doing obviously we're we're editorializing and pining but It's known as kind of like the big company the slow old IBM big blue big iron and you guys are trying to be cool to the keynotes out here We see that but you guys actually have a geeky kind of community going on with this dev thing Which we've been following the past couple of years. It's pretty cool um IBM is a geek culture. I mean it's got a lot of geeks at IBM and that's a bad word we heard in new york but a lot of computer scientists um technical people Very awesome bench talent and patents right so all that's coming to bear we're hearing So share with the folks out there that are watching. What's it like at IBM? It's geeky Is it is it you said they carry gadgets around? I mean is that the way people are at IBM? I mean, what's the culture like it is your group is I think one of the ones that are kind of the edgiest I think it's definitely not a model culture at IBM I mean this multiple pockets mean you got a conservative customer base, but like to be good you got to be yeah That'll be kind of Well, it's about being authentic. So we're not trying to be anything. We're not and when you look at me You met, you know the teams that I'm going through we got justice lawyer Marvin Goodman running around here on our teams and And we have massive development labs, you know of developers within, you know High-fun our our london facilities and this is going on every day So we're not putting on airs. We're not pretending this is truly what our teams are doing So we have, you know, joshua car in the uk is constantly with um, you know With children in schools showing them how to fly a drone with a banana right where you do the device connectors That wasn't because it was a stunt that we were trying to pull it's just truly what they do And we're very involved in the STEM initiatives for schools Very involved in you know, our distinguished engineers working through so But they attract developers and to get them ingratiated into your platform on board You're judged by the company they want to see themselves there, right? So that's a there's a culture of developers now I don't want to say brogrammers, but like and the young guns are like they've never loaded linux on machines They always say what loads off work. Like it's all clouds of them. So they're born in the cloud So that's just a complete cultural shift, right? So talk about you guys have that mojo internally or Yes, it's about It's about taking what we know inside the company and exposing that to developers and creating that developer to developer connection And you mentioned brogrammers and we have lauren schaefer We have a number of female developers on our teams and we are very much focused on Ensuring that we're leading in making sure that we are creating a very balanced STEM environment of developers and And leading in that area of making sure we have a lot of diversity And so it's really about from a marketing standpoint It's you know, you don't market to developers, right? Yeah, no your technical chops are what's the market and you make sure that what they're interested in and what they're after We're going to connect them with an IBM development team or Is somebody else in the community through developer works that's working on it as well And it's that local community. There's local connection. You can't you can't you can't head fake developers Let's we learn that no and my team my marketing team It's half developers half data analysts. I mean we are I mean ebc shifts inside of IBM marketing It's all data driven. I'm using the entire portfolio staff's portfolio We have with you know, unicode chrometrics and and every day Can't go wrong by giving developers more tools and more technologies to play with right like a kid in the candy So right I asked you the the the question that's on my mind is what was the big learnings over the year that you guys Walked away. What was magnified this year? I'll see you launched a year ago. You have some growth Right, what's the learnings that was magnified for your team and the whole group I'd say the speed So when you talked about, you know agile development agile delivery you look at going from, you know, a few services to 102 You now have to reinvent The way product development is done inside the company So it's cloud first it's mobile first and it's really looking at across all the services We have how long can they be a beta how long, you know, are we going to do testing? What is the beta to general availability onboarding for developers and migration path because a lot of companies will Launch a beta You're using the beta you're embedded in it and then all of a sudden it goes generally available and you have to rip and replace Like that's horrible and you know an experience So we've the biggest change I've seen is just the agile delivery and the speed at which internally to IBM We're working and learning from our partners that we're onboarding and bring more and more partners every day We got a break but I want to ask you one final question. What's the coolest thing you guys have done with bluemix internally? So internally it's been the Watson services and the Watson hackathons. So we Are doing message resonance and sentiment analysis. So you can actually take memos that are written or Our external documentation run it through message resonance and start creating profiles of messaging. So it's been So you've got traditional writers, you know geeking out of it In that they're up learning their content into the mobile applications and And you're then changing the way that they're right. We did a test adam Sent this in a link for the beta with bluemix and we took all our crowd chats The social group has an amazing crowd chat zillion people on it. There's a huge transcript I just cut and paste the transcript into the the site and it spit out like the top things and it was like You know openness because it's a twitter twitter chat and it gave a little all the sentiment Right. I was like, wow, this is awesome. So we can see where this is going. So That's cool. Yeah, that's been great. Thanks for coming on the queue again. Great to see you. Congratulations and keep us posted And we'll pull up keep checking in with you on the progress This is the queue. We'll be right back live in las vegas after this short break Is a live mobile studio you bring it to events and we say we extract the signal from the noise What we do is we get the absolute best guests that are at those events We bring them inside the queue and we talk to them. We have a conversation 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 we're a big data driven organization We have a data science team that allows us to see not only what's trending broadly With the public but what's trending in very specific areas in our specialty in tech That allows us to vector our analysis and relevance From our research and journalist team into everything that we do as a media company We really want to make it fun exciting But more importantly extract the data from the guests and extract that metadata and share it with the world So people can use that information to better themselves better their companies more importantly connect with other people To do more business to define more about the technology and for us. This is the future I do a lot of these types of interviews. I spend a lot of time with the press and it keeps 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've made it a lot more a lot more entertaining a lot more interesting as well as you know Putting some technical need on the bones as well The value of an independent news organization at an event Is that 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 the benefit of the cube is Place for conversations for people to connect with each other and and to Learn about things and uh, it's a revolution in media 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 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. We always know that your view is right until you hear a different perspective So you're always interested and give me some neutral perspective Help me see it from a different light, right? I may be asking a hard question or two that I might not have considered it You know in that sense right that independent voice that's always ability to right have uh, you know, sort of independent audited sort of perspective right of the world. It's always just good 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 You know, I love it. I was actually telling uh, John and Dave every time I come back to the cube You guys have new toys new cameras. Everything's getting bigger. So, uh, you know having been on it for Several years almost from the very beginning. It's uh, it's always great to be back and You know, you guys do an amazing job. So, uh, it's wonderful It's about connecting with people And that really is what it's all about Having the conversations in a very social collaborative way and that's what makes it so exciting how people are watching It was my first time on the cube. It was fun. We're gonna get to it again Yeah, 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 proud other than saying go and get up there. So it was quite good. It was part of the 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. Um, 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 It's my 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 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 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 Live from Las Vegas, Nevada It's the cube at IBM interconnect 2015 brought to you by headline sponsor IBM Welcome back everyone. We are broadcasting live in Las Vegas for IBM interconnect This is the cube special presentation from Silicon angle. We're on the ground We're structing the Sims with noise and sharing that data with you. I'm John Furrier My co is Dave Vellante. Our next guest is Mitch free worldwide i2 national security and defense lead at IBM Um Welcome to the cube. What's i2 for the folks who don't know explain what i2 is and we're going to talk security You get the black hat you got the the symbol. I mean Let's get into this. Okay. So i2 is one of ibm's premier products in the safer planet organization, which is part of ibm analytics And i2 has been around for about 25 years. It's an intelligence analysis Tool that's been used by 4500 customers around the world Anyone from national security police organizations the security exchange commission Anyone that's going after people who are black hats or either on black lists So any of those nefarious characters that are causing problems on our planet? This is what safer planets all about we love security. Dave and i we would probably spend the next whole day Just talking about this topic, but let's just start with some basic stuff going on in the industry Perimeterless security is now normal in the cloud the old ways, you know, put the bar the door mode protect perimeter All changing so that we see a lot of new technologies like apis and notifications and mobile apps opening up lots of doors There's traditional holes. You have all kinds of stuff, you know last week the whole thing was going on with Lenovo Oh, I've got something look for those that these these back doors So there's a lot of stuff going on from back doors trojans to now new ways that apps are accessing databases So comment on that trend and we're customers and all because they're like run run run build maps tough wine revenue You know, it's mobile apps. It's all great for the business, but then all sudden wait a minute There's also a back side to this what yeah, absolutely So if you look at kind of the customers and they do exactly how you're saying so In it in this mandatory you have to have the moat you have to have the defenses You have to have some of the security Solutions that are in place now and as you know iBM security systems has world class solutions that do that but what we're seeing in the industry is That now organizations let's take for instance commercial organizations They're looking more at who or who's doing the attacks. Why are they doing the attacks? Whereas before it was simply I was there was a breach. I need to do damage control I need to close the hole I need to fix this and then I'll do some remediation after the fact to actually prevent that from the next time So there was not a lot of focus on Attribution meaning who is actually attacking me? Why are they attacking me? Are they connected to a wider organization? So if you take uh, let's say public safety or government organizations That's always been their focus now the commercial organizations are saying How do I find out who's attacking me? Well, why because they want to start to get ahead They want to find out their modus operandi They want to take that and plug it back into their remediation techniques so they can perhaps pick them up Faster. So if you look across the board most of the time when there's a breach that That breach has been taking place for about eight months. So explain breach and incident. There's two different like a breach is like Bad incident is like Less bad than a breach. Well, uh, I think it Certainly a breach would be a form of an incident and so there's a lot of incidents that go on So there's a lot of false positives. I mean the number of alerts that the security operations centers see every day Are just absolutely through the roof and they don't have time to check all of those So an incident could be something as uh, you know, someone trying to do a denial service attack A breach as you said is more serious when they actually get in the door and they're they're uh going around in the background Tempting to exfiltrate some sort of data or do some sort of malicious damage in sight And you said on average that's eight months before an organization Well, on average we're seeing uh, yeah eight months and and each one of these attacks from a commercial perspective Is upwards around 11 million dollars. The classic quote is well, sorry Dave, go ahead Well, go ahead. I'd love to hear this quote the classic quote we heard on the cube Um, the bb reported is from the uh from the government. There's two types of companies Those have been hacked by china and those that don't know they've been hacked by china So so and news today china's dropping sisco and some, you know, big news out there It's like so there's a hacking war going on and so you a company can be out there Not even know that there's a super fish going on and there's super fish being a latest exploit Going on. So like, okay, I know I'm hacking. I got a deal with that now. I'm like, wait a minute. Do I have something going on? You can't solve all the you can't plug all the holes. What do they do? What do customers do with this? So you you can't plug all the holes and and I won't necessarily comment on any particular country But I would say the quote is in fact correct meaning are there those that have been and those that that will be hacked Uh, and it's a question of what's going to happen once they're inside So what companies are starting to lean towards as I mentioned earlier is they're starting to look at attribution So if you take attribution, I want to find out who's actually behind the attack Because if I can find out who's behind the attack, it's just like tradecraft and a natural security organization I want to know the enemy. I want to know what they're doing what their weaknesses What their strong suits are then I can start to take some preventative action So we want to move from being reactive to proactive So how do we do that and the challenge is that a lot of people are focused on as you mentioned the moat and the defenses We need to start taking in data other than just the cyber data. So the traditional it data. So Vendors including IBM. They're extremely well positioned to take advantage of all of this flow data all this data and the bad actors are Not that there's not that many of them. You know, it's not like a small amount but like There are like known targets groups of people that work together. We learned that on the cube as well. Is that true? It is true, but let's not forget about the 16 year old the sitting in their basement that's trying to hack in Now, why is that important from a breach perspective? It may not be that important But the problem is once that 16 year old is in the door and they're actually running amok inside of your system You don't know that it's a 16 year old. That's just Messing about in his garage or his basement At that point then companies start to take damage control They they see that some some say some breaches happen some credit card information has been exfiltrated And now they go into damage control and they start to notify All of their customers. Hey, I've had a breach when really in fact nothing's happening when the 16 year old So the the challenge is who is your attacker? Is it a 16 year old or is it actually organized crime? Is it some anti money laundering group? Is it someone trying to fund a terrorist organization? That's the challenge and that's why you're seeing the focus move towards attribution. Who's in there? That's going to help me decide. What are my next steps in terms of the damage control? And it's all going to also help me on remediation. Mitch, can you talk about The investment the funding the spending it used to all go toward keeping you know people out of the castle Given that it's eight months on average that people, you know, don't realize they've gotten a breach How is that investment? How is that spending changing from a customer perspective? And how is it changing from IBM's resource allocation from, you know, protecting the queen and her castle with a moat to trying to detect So I think if you look at that spending now the the decision makers in and as you you've probably heard on the queue before the decision makers It's not only the it department these days. Obviously, they have a great influence on what's taking place But it's actually moving up to the boardroom. So the boardrooms are starting to look at this and say, okay 11 million dollars on average I need to start dedicating some funding to see how we can start to enforce our current Security systems meaning who's attacking us. So we're starting to see that funding shifting. Obviously It's like anything else. You have to have the mode in place after that though How much are we going to start to dedicate towards the attribution and who's behind the attacks from the IBM perspective? You can see we've got a lot of investment in IBM security systems But if you look at safer planet and IBM analytics group Lots of investment that's going into actually helping Take this tradecraft and now security policing into the cyber threat intelligence space They're actually tracked down who's doing the attacks. So I realize i'm simplifying it But if you had a hundred dollars to spend as an organization, you know, what's the profile look like in terms of Just protecting the perimeter versus trying to use things like analytics or other techniques or maybe even internal training To try to Remediate, you know, some of those problems. Is it 50 50? Is it no, I think you're going to see it move towards 50 50 But it's a long way from that, but it's moved the the the scale is sliding very quickly now So I'd say at the moment you're probably talking 75 75 on traditional security and 25 maybe on on the attribution part I think you're going to see that shift and it really needs to decide I think you're going to see that shift towards let's do some cyber threat intelligence because that is really providing me The ability to be proactive. So I think you're going to see that shift. Look the the the the traditional Cyber security measures, they always have to invest. I don't think you're going to see that shift more than 50 So you're probably going to see a little more movement on that. So that's the ideal balance Let's say and I know we're really simplifying things here But what's my question is what's the what's that headwind for organizations in making that shift? They obviously have the baseline to keep in place the the the perimeter pieces the traditional pieces What's slowing them down? I'd say it's it's more cultural than it is Technical like many of these things when you start to see a shift people are You know they kind of hang on to the traditional methods And as they start to see more breaches and they start to see more methodologies come out to help them be proactive Then they start to adopt it. So if you look at the forward leaning Let's say boardrooms and also the the security operation centers You'll start to see them shift in fact We we're hearing this new term quite a bit the next generation security operation center and in those discussions You're starting to see this discussion about threat cyber threat intelligence. I mean if you look at IBM's x-force That's exactly what they provide to our customers. They provide that intelligence On who's out there? What are they doing and why are they doing it to help them with the remediations? So next generation security operation centers, you're going to see that activity So Dave's Dave's question is a good one. I want to just double down on that for second Dave The customer's sitting there. Okay. They got the investment pie. They're going to be shifting. What do they do? I mean, how do you get since you're like a getting started kid? I'll see call IBM you guys will help them along but How do I get started? How do I train people? I want to hire to hire young guns to be like my navy seals of like Of security. I got like the air force. I got the navy seals the marines I mean, is it a discipline thing is that how does the company build the culture hire people and then like engage you guys That's a very good question So in the last week, I've probably had eight conversations on that and and it's really companies are asking exactly those questions I want the next generation security operation center But it's it's certainly it's about the technology and solutions But it's more about how do I set up these security operations centers? What are the best practices? Where do I need to invest in terms of that training? So so you mentioned the seals you mentioned all of these Kind of these other disciplines in the military. So obviously you got to have your young guns I mean, let's face it a lot of the the younger generation out there. They grew up on this stuff They're very good at it But let's not forget the old crows as we would call them in the military The the gentlemen there are ladies that have been around that have been doing this for years So now you're seeing a blending of let's say older generations So the young guns and the old crows and that's really what we see is Joe crows are really awesome Mentors because they've seen some of the tricks back on the old days not at the scale Correct, but it's architecturally is an operating environment Yes, so as I mean you see that it's like it's like well, let me just give you one example Here's a kung fu example of Jeff Frick and I was a great son Let me give you one example of one customer So we have a customer that has quite a bit of analysts And they have a lot a lot of younger generation people in there in the ages, you know from You know probably 23 up to 30 years old But they also have a lot of senior analysts So one of their requirements was I need to be able to take my senior analysts who develop a lot of very Complex analytics that uncovers insight very quickly. I need to capture that knowledge and put it back into solution So that is one of the areas that we've done in the safer planning organization with our enterprise insight analysis is We give that customer the opportunity to develop their own analytics for their specific Use case and then they get to use it across the enterprise So there's a there's a case where the old crows are able to actually take their expertise And give it put it in the hands of the younger the younger analysts And it really works good on the cube many times that David I always love to interview him and one of his comments is, you know, no one writes bomb on a manifest So it's easy to use metadata to look at stuff But you got to know with the observation space is that's his word that he uses in the IBM So big data analytics certainly is a huge driver in this this area, right? So, you know, no one writes. I'm hacking you now or this super fish embedded in your machines What are you guys doing from a tech standpoint? What do you I what does IBM bring to the table because to do that observation space to expand out the attribution And to build that next generation security operations center, you have the tooling You absolutely have to have the tooling so I'm glad you mentioned Jeff Jonas Because Jeff Jonas has been one of our executive sponsors on this particular program And he's brought a lot of that expertise in fact some of his technology is embedded into this solution for exactly That and you've probably heard Jeff talk about low signals So we want to pick up the low signals in this massive amount of data But if you if you apply this to the cyber threat intelligence space So typically the the cyber solutions are focused on the it data We want to bring in additional data from outside. So we want to bring in your hr records We want to bring in your physical security. So when I swipe a badge and I go on a door So now you've got location data any type of telephone data that is not collected in the typical system So we want to merge all of this data together that presents a problem How do I get all of that data in and I want to do that fast enough in real time? Absolutely one of the requirements from our customers was I want to continuously ingest and while I'm ingesting I don't want to do a batch process I want to be able to do analysis on the data as it's coming in Enter Jeff Jonas his technology is absolutely superb at doing that new data comes in and it automatically does the identity resolution Immediately on the fly 24-7. You don't have to wait for some sort of batch process So the key out of that is I need to run analytics across the entire data set a lot of the Other vendors they will do certain parts at a time or they'll do it in disparate data You're not going to see these signals or the low signals across Individual pieces you put them together now you start to see insight So that's what we're doing to tackle this big data problem. This this the market is just it's infinite Every year, you know art cove yellow writes his Warren Buffett letter and every year I email art is the art I I'm looking back. I spent more. I worked harder. I'm less secure and I when I talk to customers I say listen the the calculus is pretty straightforward It's the probability, you know of a breach and the expected loss of that breach both are going up So I feel like there's there's no end in sight To the to the threat which makes it a great business oftentimes You don't like to talk about the business opportunity, but there's a huge business opportunity for security spending keeps increasing It's a white tape problem never goes away It's a white tape problem that never goes away. I mean, this is like it's an arms race gentlemen It really is it is an arms race and as we all know from the from the cold war days That was really really an economic race So how do you stay ahead of the adversary and that's really what was the bad ass baddest ass thing you've seen on security in terms of like threat like Then you can speak about this the superficial one that's been this week. It's the it's the that's pretty significant That's not get off. What's the what's the heaviest thing that you've seen that I think the heaviest thing that you see Is things that may or may not make it to the press in terms of how the breach occurred Stuff we don't see so if you if you look at one that was recently in the news where You think that the attack came full frontal right in through the front door Or right in through a very well published backdoor. In fact, it happened from Let's say an ancillary type of website that was remotely connected with the organization That was there for a charitable organization type of way for the company to give back to the community Well, the infield traders got in and they studied for six months. They studied the security architecture of that Kind of smaller website that really was not connected to these out in the jungle They just took it down and well So what they did is they studied the security architecture And then they discovered that the same person. So these are smart characters They actually did their intelligence on their target They determined that the person that set up the security on that very small system Set up the security on the large major system. They were first engineered the security for the main system based upon the prototype that they saw The the quote I got to get this done over the weekend for the charitable organization So he took his day. They basically went red as mine Exactly the red is mine. They tested all of their techniques and then they moved it in for the big kill That is the most dangerous. So you think something is quite benign, but really it's anything but benign And the motivation there was was dollars. It was money. Absolutely In this particular case is a filtration of customer data dollars and it was it was in the double digit billion Double digit billions, correct Point about it's an economics arms races right on and the bad guys have a lot of resources And uh, and it's on and then the other vector that I wanted so I feel like Stuxnet Just sort of created a whole new era of security and and ideas on What's possible the future of warfare? Is that sort of is that a milestone in the security business? Is it sort of I know it's old news now, but I wonder what else is out there that's Stuxnet like that? We don't know about it's got to be you know in this arms race sort of a you know, what era are we in here? Well, if you think about it, um, they only have to be lucky once Yeah, and they can do you know millions and millions of attacks and they only have to be lucky once They have plenty of time They're able to try out new techniques and they're always 24 seven Working on those new techniques. So the question is you know to to go after your question How do we stay ahead of that because it's constantly changing to rethink get a rethink a new way to think through security To use their phrase where IBM and that that is exactly it. It's a one-shot deal There could be a zillion attempts and just one penetrates But but but the question is if it costs double digit billions It's not a money issue because you know the sales. Hey, what are some of the consequences? If you don't do this, you know, there's no no there's like billions And so the money on the table is there. So if that's the case, how does IBM write the software there and What do you do the customers or they say, okay, just hand over money Is it cryptography? Is it system z? I mean system z has some serious cryptography. Is that the answer? So like Well, I mean look we can throw a smorgasbord of technology at this So our approach is we want to be very systematic. So when people come to us, they want to know about next generation Ration so we have a consulting practices actually does this We also have the IBM security systems has a whole host of tools that actually fits in with that consultancy On the safer planet side of the house where we use our i2 counter fraud and threat solutions We're looking at being able to establish a platform It's very flexible and very agile and that comes directly from our national security experience because the mission is changing And think about that carried over to the commercial space. The mission is changing I need to have a technical solution It gives me the agility to change as a threat changes And it gives me the flexibility to be able to add in those models as we need So if you look at what we're doing, we tackle the big data the identity resolution from Jeff Jonas We tackled all of those first for initial customer now. We went to the next step How do we use Watson discovery advisor? How do we use? Watson explore to do unstructured data as you well know the unstructured data 78 of the data that's coming in so the key to that is agility and flexibility and be able to do Analytics at speed and scale across that entire data set. That's what we put in place It gives them the most flexibility and you talked about sort of the national defense trickling into the commercial world But to me that that stakes of the national defense. I mean, it's they're huge and we're talking about again the future of warfare here So are those two related in other words? Are we sort of learning from what we're doing in the governments? Does that actually trickle down into business? Does it trickle down fast enough? So I think what you're seeing is the the nexus Let's say national security or even geo Geopolitics with the commercial world. So as you know, there are state actors that are attacking some of The commercial organizations around the world. So it's no longer the 16 year old or let's say an anti money laundering organization Of course, they're they're a threat as well. But now the state actors start to come into place So the nexus of those entities and it's it's an asymmetrical threat If you think about a commercial organization compared to a state actor There's a lot at stake there and it's a very difficult situation Now what comes to the table is not only IBM solutions, but you're seeing the commercial organizations start to cooperate With the government defense a partnership So now you're going to start to see a lot of sharing of cyber threat intelligence data And that's why we think that going to being able to determine Who's the threat and why are they there? That's going to become more of a factor in in defenses for commercial organizations And how about the way IBM works with competitors? I mean, yeah, you compete as compete head to head But you're the good guys HP's the good guys rs. Case the good guys. Yeah, cement takes the good guys How much collaboration is going on at the within the competitive? So I think you see from the professional organizations IBM does a lot of work in these professional organizations the the x-force Reports that go out are consumed by people around the world I mean some of our competitors and and they actually collaborate on that So on the professional organization side IBM Participates in quite a bit of those on the national defense side as well on as on the commercial side So I think at that level you're seeing quite a bit of cooperation But I mean like again, let's face it. This is business and And we want to promote our business. So talk about developer community. Obviously, this is a big developer show kind of shows Let's build as a developer show What's your take on Developers are there great resources out now? Is Watson a good thing to play with and and our security developers nuanced on certain things And did I like certain tools? What's your view of how a developer Building out the next generation security operations center will look like What tooling so so that's a good question And I don't think I don't think we're seeing a comprehensive approach across your your entire question But what we are seeing is quite a bit of interest on the developer side and the shall we say the open source So if you're familiar with github how you do open source development, so The the safer planning organization actually has a github site where we We place things out in open source like connectors because the key to all of this is getting the data in So we have Developers on the open source site around the world that are actually developing Plugins to our tool and they're also developing connectors and they're all made available on github So we're we are a strong supporter IBM in general is a strong supporter on open sources, you know But also safer planning organization Is directly contributing to the open source and it's mainly around the I2 intelligence analysis that can be applied across the spectrum Obviously that can be applied to cyber threat intelligence as well. If I was a young kid Can I was a computer science major? I would love to go to the security. I think it's one of the most intoxicating technical Fun, I mean if you're a gamer you got to love security. Absolutely. I mean you must get a lot of gamers who come insane I mean because this like first person shooter is security You have to go at look at the landscape look at the targets understand some of the attributable things You seeing that I mean that's kind of the profile If you look at kind of our profile of the people that are that are on our team, you play call of duty or you could work If you look at the profile, we have quite a bit of the younger generation But if you look at the the people that own our team, we have former military analysts We have former security operations center cyber threat analysts. We have police officers former police officers And and I think they think that they're in the most exciting part of IBM because of exactly what you said The other point I might add to that is when we get up and come to work We know that we're trying to make safer planet. So that's you know, that's Maybe that's a little bit of a lofty idea But when you come to work and you know that you're going after bad guys and you're helping customers and governments go out The bad guys that's pretty fulfilling. It's interesting I mentioned on the intro and I'll just end the segment with this kid to comment on it It's like they have two ends of the spectrums It's good guys and bad guys and the startup that we know at the california hope meant to go started by a bunch of Big data math guys In israel and they did all the intelligence to find the bad guys. So I asked them Why did you start this social sales company? He goes, well, we sit at a cafe one time We said we're so good at finding the bad guys. Why don't we find the good guys? And so essentially, you know, if you look at IBM watson, you know, they'll talk to you Oh, you know social business, you know It's reversely the other side find the good guys find the target customers. You know, that's a big data problem We actually have a couple of Couple customers that are looking for good guys. One of them is from executive From executive security and another one is if you're trying to lobby, let's say something in congress or whatever Who are the people that's on your side and how can I leverage them? So it's exactly the same trade crowd the good guys have to serve good the good guys and Get the bad guys. Exactly. Awesome. Well, good guys and bad guys are out there big data cloud scale new ways new architectural security centers Super fun area. You must love your job. I do. Absolutely. Thank you very much. We are here live at IBM with the right back It's a short break. Just talking security having some fun. We'll be right back day three of the cube. We'll be right back Hey, this is Brian Seraven director of digital media for the san francisco giants and you're watching the cube Hi, i'm dan gordon co-founder of gordon birch and you are watching the cube Dr. Randy fagan the chief administrative officer at texas institute for robotic surgery at hca and you're watching 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 us open analyzes 41 million data points from eight years of competition to uncover 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 was my first time on the cube. It was fun. So it's good again. 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 quite 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 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 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 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 clouds with the hamster? Today there's a new way to work and it's made with ibm Hey, i'm george mathew president ceo of altrix and you're watching the cube and dmitri zamin I'm the cto and co-founder of stackstorm and you're watching the cube Vice president of product strategy at qlogic and you're watching the queue Hi, my name is ben jones senior product manager of tablo public tablo software You're watching with you All right, this is frost wall from tablo and you're watching the cube 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 Is a live mobile studio when you bring it to events and we say we extract the signal from the noise What we do is we get the absolute best guests that are at those events We bring them inside the cube and we talk to them we have a conversation 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 we're a big data driven organization We have a data science team that allows us to see not only what's trending broadly With the public but what's trending in very specific areas in our specialty in tech That allows us to vector our analysis and relevance from our research and journalist team Into everything that we do as a media company. We really want to make it fun exciting But more importantly extract the data from the guests and extract that metadata and share it with the world So people can use that information to better themselves better their companies more importantly connect with other people To do more business to define more about the technology and for us. This is the future I do a lot of these types of interviews. I spend a lot of time with the press and the cube is 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 they made a lot more a lot more entertaining a lot more interesting as well as you know Putting some technical need on the bones as well the value of an independent news organization at an event Is that 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 the benefit of the cube is place for conversation for people to connect with each other and and to learn about things and It's a revolution in media 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 exciting and more importantly. It's very social 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. We always know that your view is right until you hear a different perspective So you're always interested and give me some neutral perspective I'll be seeing it from a different light, right? And maybe ask a hard question or two that I might not have considered it. You know, in that sense, right that independent Voice that's always ability to right have You know, sort of independent audited sort of perspective right of the world It's always just good 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 You know, I love it. I was actually telling uh, John and Dave every time I come back to the cube You guys have new toys new cameras. Everything's getting bigger. So, uh, you know having been on it for Several years almost from the very beginning. It's uh, it's always great to be back and You know, you guys doing an amazing job. So, uh, it's wonderful It's about connecting with people And that really is what it's all about having the conversations in a very social collaborative way And that's what makes it so exciting how people are watching 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 here live in Las Vegas for special presentation of the cube IBM Interconnect This is our cube special program We go out and I start to see the noise our next guest is Steve Robinson gm of cloud platform services with IBM He's a blue mix guy. We interviewed him last year when he came off the stage announcing blue mix Welcome back. Great to see you. Thanks guys. It's always good to see you and always good to have you at our show as well So, you know, are you in a pinch me moment like in my dreaming because when we interview you came right off stage It's like, okay, we're doing blue mix. We're all behind it Go, you know, that was our beta then, you know at that point. We barely knew what we had We had our cloud found reversion. We collected a handful of services and then we're like, let's go So you guys have been successful. So just a quick update. I was a great journey A lot of speed a lot of rapid acceleration on your end. Yeah, so we launched it in beta We got commercial terms around it at the end of june We announced this week 100 services on top of the platform So we've taken every piece of middleware within IBM. We've converted into a set of services We've got some great unique ones like Watson In november we announced dedicated blue mix. So uh, software has got a great thing where you can do Single tenant private resource so we can now drop blue mix on top of that And then we gave a sneak preview on stage on monday local blue mix. So now local dedicated public We now have a complete hybrid mechanism to really get the enterprise account charged up So I want you to answer the question. It's not for me. I'm just paraphrasing what the sentiment is IBM blue mix That's cloud foundry. They're really not committed to the cloud with blue mix pass I mean, you guys have been successful. You're the proof points internally. What's it been like? It's been pretty much game on internally and what's what you uh, what have you guys nailed down this year? Share with your audience to answer that question. Well, I think the key thing you find is, you know You know from the chairman down we're 100 committed on the cloud right now from the the acquisition of software To the rollout of the data center 40 data centers. We're going to put this thing on And just from where we were in february to to where we are today, you know We had an estimation that we probably have 20,000 apps up and running on blue mix by the end of the year 200,000 is what we've been into We expanded that out to london. We've got it coming into ap The amount of enterprises that have been excited around the dedicated piece has been unbelievable the support from IBM and also the support from the community The momentum behind the cloud foundry piece that we've seen acceleration unlike anything we've ever seen We have we have one of your customers in here The nigel nigel who said without blue mix he wouldn't have finished the races really impacted his business I mean, this is like 150 miles an hour in the ocean Okay, he's trying to get to 210 Blue mix is working. It's you shipping code. You're shipping solutions. I think what it's done is embedded in it And I think what you're seeing is that you know, it's bringing this You know, I think other paths that had kind of opened up the opportunity to really do innovation and really do it at speed And most enterprises had held back a little bit from that as well But now with the IBM name behind it plus the type of services that we're putting on top of blue mix They see their favorite type of middleware starting to come They see capability and enterprise grade software that they know and love and now they're putting their toe in the water as well Guys like silverhook, you know when you're racing two and a miles an hour offshore Sensors all over the place, you know virtual reality around the thing they get all the pieces together Yeah, this is not it's not an r&d project. Blue mix is out delivering value It's not about the integration. I mean to me that's a key part of it Right because people don't wake up and say, oh, I'm gonna get me some pass Yeah Well, it was funny. We had Jim Dieter's on stage with us this morning and Jim does the the pure startups and You know for a lot of the smaller companies that are doing paths for the first time, you know, it's naturally where you go I'm going to run on the cloud I'm going to have an environment that brings services to me as well Our enterprise accounts though, you know, they've got a large set of kind of crown jewels back behind the firewall as well And they're waiting for somebody to say how can I use those in the equation? Some of the cloud vendors say well just port it some of these environments they've been running for years and decades They're not going to undertake a port but how do you bring that to the case? So one of the things we announced this week as well was a secure gateway So let me kind of use my my mainframe environment. Let me use my on-premise environment Let me bridge that back out to the cloud Brand new api management set of services as well That lets me better wrapper those and be able to integrate it And then also kind of a federated catalog so I can actually use some services local where it makes sense And I've got latency concerns security concerns But then I can use all these great public apis with it at the same time So we're getting a lot of novelty on how we're bringing the cloud down to where they are today Plus giving them the option to reach out as well So what's going on in the app? You've mentioned a number of applications like hundreds of thousands So talk give us some a sample. Oh, we're we're how would you categorize them? How should we be thinking? I think With the passes, I think most firms are finding that it's almost a programmer's renaissance right now So For one that's such a easy environment to get up and going is almost like that unlimited data resources You got unlimited compute resources and now you can play with Middleware that you would have never had exposure to as well. So we see tremendous amount of exploration going on so we got one partner working with us and They started working on how do we Bring technology into a retail store experience to kind of augment what the customer deals with So traditionally we're bringing plasmas in and they could actually tell if your male or female And they were using it initially for like a bike store to see Help me pick out what kind of bike reviews We launched the watson services and one of the things we have in watson is we can analyze your past 100 twitter feeds And come up with the five personality traits that you have And so they played around with that and they got some some cute feedback from it And they said that nice parlor trick But then a large car company saw that and said hey, maybe we could use that in the dealership The individual walks in gives you their twitter handle Maybe I could use that to help assign the salesperson to them to increase the sales in the dealership as well No one had that on the radar screen But because the ease of use of playing with these services things are just popping up Is that now a new product is that was that productized is that just more of an anecdotal Well, the the company of sales IQ that's a reference of ours, you know, they've already have stood up the the watson services and They launched it at south by southwest last year and now they're playing around with other But we're talking to docker really with this word stand up is a is a cloud term right stand up some servers In a sandwich means not provision it take weeks to provision. That's a cloud term But that's now now proliferating to social media to business standing up fast as a cloud dna Well, you know, I spent five I spent five years irrational and you know, we were dealing with more traditional style of development And you know, it was unfortunate But you know used to be look at old software projects 68% of them never saw the light of day It wasn't because we had bad programmers But to do a project you had to allocate the hardware you had to allocate the middleware Sometimes it took six months to lay out web sphere and mq and whatever you put on top of it as well Then you build the app then you have to test it Then you got to fight with the cio to get on the production schedule and oh, they're upgrading sap that that year You're all that you're off the table When we might replace our sysco routers, that's about a 12 week just assessment took all the budget So we're at a point now we're seeing guys You know Programmers just it's like a candy store. They're now saying I can I can launch a basic application And I may do a version for east coast. I may do another version for west coast I may do one for a subset region They can now explore and try things that were just completely unthinkable You know the creativity is on the table pretty much it is what you're saying Well, we've actually have stood up. We've got two of these blue mix garages up and going I've got one in san francisco and we opened up the second one in london as well And we kind of have it as an innovation center. So customers can come in and we we actually look Hi, i'm andrew tracer a business operations manager at linkedin and you're watching the queue I'm criss-cellan vp of business development for hp big data and you're watching the queue Hi, i'm stacey slatter senior vice president of communications for the giants I'm in the garden at at&t park and you're watching the queue I'm thomas minnick business intelligence consultant within our works and you're watching the queue Hi, my name is david tishkirk director of partner marketing at claudera and you're watching the queue Hi, i'm jim you founder and co of bright edge and you're watching the queue Act one scene three Live from los vegas, nevada, it's the cube at ibm interconnect 2015 Brought to you by headline sponsor ibm Welcome back to ibm interconnect everybody. This is the cube. We're here at the mandalay bay There's another whole group over at the mgm a lot of the general sessions and keynotes are going on Check out interconnect go.com. It's the digital experience for ibm interconnect Really pleased to have nancy hensley here. She's the director of marketing and market marketing for analytics platforms at ibm and jill Horwich who's the director of the portfolio for analytics at ibm Folks welcome to the cube. Great to see you. Thank you. Good to be here lots going on where we're really excited We've been we've been covering ibm's analytics business now for several years Um, I often said that what ibm did is it brilliantly Consolidated its analytics business and it and it super glued it to the big data meme and really became a leader In that space and it took some time, but it's really you know worked out great. So absolutely congratulations. How do you feel? What's what's new great? I think you know Repositioning things helps us really meet more of what the customer's agendas are as opposed to nobody really goes around saying I want a data warehouse or I want a bi tool or I want a database anymore They they have agendas like cell service analytics and cell provisioning of data and modernization of their architecture So this really positions us to help our clients meet these new needs because there's been so many disruptions to the data center It's crazy. The last everything's changed in the last five years was changed Oh, wow Well, I mean I used to call the data center that's sanctity kingdom Where all the data was safe and it was governed and there was all this types of control But now the biggest pressure I think is self service capability right and the cloud has really helped enable that But even just self provisioning of data the ability to have access to analytics In a very short period of time to do what if analysis so things like dash db on the cloud Helps enable that with lots of analytics, but that sort of service levels and disruption to the Sanctity of the data center is really new within the last few years, right? So joel your responsibility is the portfolio you got portfolio in your titles. Yeah, um the big portfolio Right, you know joe tucci. It always says it's better to have No gaps, you know better have overlapped in gaps and that's sort of the case for your portfolio Yeah, no, I mean as Nancy pointed out, I mean we are seeing a lot of changes happening in and around, you know analytics I think before You know data was kind of this separate entity than the actual tools and the applications to get value out of data So it's I think really as Nancy pointed out really valuable to our clients to kind of start bringing that together Into one solution. I think the other thing. I don't know if you're at strata I don't think you made strata last week because of the storm. We were there. I didn't make it right But um, you know, I think there's still a lot of interesting, you know changes happening with roles So the data scientists is still very much at play So as Nancy pointed out with the cloud You know part of that Value that we bring is being able to access data kind of anywhere So, you know if it makes more sense to spin up a hadoub cluster for example on blue mix And then attach it to other, you know services that we provide You can do that or if it makes more sense to add it to your logical data warehouse Then you can bring hadoub into that environment and start working with it there So, you know, we're seeing still the emergence of the data scientists the chief data officer And bringing all of this together is really making it valuable for them. How much time we got because We could be here for a while. That's good. I want to I want to explore some of those things So it struck me Nancy when you're talking about self-service And Joe's talking about the role of the data scientists and I picked up some of the themes just listening to the cube last week and watching the the tweet streamed The sort of self-serve of the business Yeah, the citizen data scientists that somebody's I'm sure you use that term but uh, but Really, that's the next wave. Isn't it of analytics is is empowering that business user to actually use the tools It never happened in the old sort of Well, it did in the in the shadow it we used to call them the shadow it organizations And they're really the ones that have kind of pushed us on the requirement side Um, remember where we used to have just data marts. That was all the shadow team That was just they were trying to solve some specific problems And they really needed it to stay out of their way And that's why they would basically build their own systems and now we're seeing that wave again But there's even less patience right because we've now become much more critically dependent on analytics more so than ever So the ability to provide self-service and you can't and it's not just about the data warehouse Because you also have to figure out how you self provision data. How do you give that capability and that's really new to clients Right because this used to be something that we very much controlled and you just can't do that anymore So that I'm going to pick up on the sort of data mark because it created a data quality problem You have issues now in in people spinning up big data projects with no notion of governance and no notion of the edicts of the Organization You mentioned the chief data officer. Is that his or her job? What do you see happening there? Yeah, I mean so data is becoming more and more prevalent obviously not just in the enterprise But also externally right we were looking we did a crowd chat last week with you guys And you know we were going back and looking at that twitter data We have a really nice relationship with twitter now So, you know as we look at how to extract insight It's not just the transactional data we have living, you know on premise It's also the data all around us whether it's coming from a mobile device social In other places. I think you know the other side of that is really about this Kind of convergence of multiple technologies. We're seeing are multiple trends So part of it is like we brought up the cloud the other part of it is you know this Insurgent of more and more data and then the third thing is I really think is machine learning So, you know as we talk about you know, how do we Structure data and how do we make use out of it? I think one of the emerging Technologies is really around machine learning to automate some of that process Right. So I want to talk a little bit about Maybe go back to strata a little bit. You were there Joel, right? So you guys announced odp right as part of a big opens consortium There's a lot of discussion now going on. Yeah in the industry about it So on the Obviously, there's a lot of competition going on right so odp gets announced and co-operation Yes, we live an interesting time. So the guys who didn't join odp Mike also in particular wrote a blog post a analysis fake open source Compared it to osf and I I've had some back channels with mike on that. I don't really buy the osf analogy But his point is which i'm listening to and I wonder if you can respond to it is why do you need an open data platform? It's all map reduce anyway. It's all standard out. So what's how do you respond to that? Yeah, I mean these are two very different things right one open source and the apache software foundation is really a way for developers and You know innovators to come together and develop on the platform in fact plaudera in their keynote address They showed you know this graph Of the opens are the open source and hadoop projects themselves like Growing kind of linearly over the last few years and so that you know, we obviously support that But for our clients right in the industry for them to Really adopt to do as kind of a you know a foundation for analytics and advanced analytics You really do need standards kind of around that to make our clients lives easier As a as an example, you know, I was pumping my gas at the gas station the other day And I was looking down and it struck me like you have 87 89 91 right octane levels And you know if you were to go to every gas station and they had different numbers there They're trying to describe it differently. You'd be very confusing for you And so you know the odp in my mind is really a separate conversation about you know, then open source development It's really about standards for an industry If you look at the open data platform consortium, it doesn't just consist of hadoop and technology vendors It also includes other industry People so customers. Yeah Okay, so we should think of this as now am I right that you're no longer Going to ship a separate ibm distro the same thing with pivotal. Is that right? Or that yeah, so you still have our own distribution. It still has a lot of you know, um You know value packed into it. It's now free. It's kind of decoupled from the big insights package So we kind of split that up into four different modules So we have the big insights kind of data scientists where we introduced Our support as well as machine learning, which is really interesting We also, you know have a smaller module called analysts that kind of focuses on big sequel and big sheets Kind of for more of the business analysts and then we've also added You know a Enterprise kind of manager That allows you to kind of get more out of the cluster. So we've decoupled things. We're not giving up on our distribution We're just the core of the odp is really, you know, the file system mapper news and just these really core bits But how people still build around that will still so that core will we'll find its way into your distro Yeah, right exactly and then it becomes the standard and it's the same standard that horton works is going to use That pivotal is going to use et cetera and then these the other people Yeah, we hope others join in. Yeah, and that just makes it much more adaptable in most people's data centers Right because now we have more common standards across I want to talk about so you guys have IBM's always made the point that hudduke is not big data What is big data now, right? We've defined it probably but having said that hudduke kind of got it all started You know, it's sort of the main spring of innovation map reduce and you know, which is like changing so much now, right? I mean real time and it's really exciting Iot is sort of the next big wave But what's happening in the traditional enterprise data warehouse? We did a survey Jeff kelly did a survey last year and we were astounded at the number of customers who said they've Begun to move workloads transition workloads from traditional edw to new forms of big data However, you wanted to find that hudduke or not, but just new and different And it was a huge number like 65 another 30 we will by the end of last year And that was really just in the last year, right? Yes. Yeah, right it flipped overnight And so people just they glommed on to it said wow, this is a cheaper way to do things We're still keeping our really valuable stuff in the edw, but we can offload so much and maybe I think of tearing What's going on there? What are you seeing in the customer? So offload is one way that customers will embrace hudduke, but I mean hudduke is also about the different types of analytics and I think Initially there was when hudduke came on the scene that maybe the data warehouse people got a little defensive like it's not going away It's not being replaced and it and it obviously isn't right, but It I think what's happened in the last year is it's become An acceptable compliment to most enterprises and so even a year ago where we had a lot of our core data warehouse customers It said yeah working into that hudduke thing a year later now It's on everybody's agenda and it and it it can serve multiple purposes right allows you to do analytics that you couldn't do before And now with sequel, you know the fact that you can access that data via sequel And what we're trying to do with making data very fluid with some of the capabilities So even if you have the query originating on pure data for analytics you can access data that's in hudduke Which makes everything much more fluid within the enterprise So it's just more consumable to clients and that allows them to not only do more analytics like machine learning That they couldn't do before but also They can move some of the workloads off that might even be cold data Or even as a landing zone And that was some of the original use cases that we talked about when it came onto the scene I think actually what's starting to shift more is now that customers have used those use cases from a cost perspective They're starting to understand the benefits from an analytics perspective. Oh, I think that's so right on because you know abhi meta says that the first wave Of of value in big data was the roi was reduction on investment and I think that's true Many people realize wow Storage so much cheaper, right? Why stick it in a big expensive container when I can put it into this open source platform and I'll get great And then they realize it's not just about the storage Yes, there's this whole other analytic world that's open up to us So as an analyst when I saw that huge number of people shifting I said wow, uh-oh, but luckily Jeff asked another question the survey What are the most important tool sets that you require and your big data? And the number number one and number two were the traditional edw and data integration tools. Yeah. Oh, right Wow, right. Well, we're still we're doing we're still doing the reporting and analysis on our business That's not going away, right? There's still the standard reports But now there's much more discovery you can do Now that you have you can have the ability of having unstructured data, right? That the data warehouse just couldn't handle Yeah, you brought up the point that um, you know when hadoub first hit the scene You know it was kind of this effect of bor's law where you know the cost of disk, right in terms of storing data It got so low. I think actually the next kind of Phase is going to be kind of around a patchy spark So it's almost like you know when you know commoditizing kind of the disk to now we're talking about memory So, you know, I think spark is actually going to take us to the next level, which will also help Kind of speed up that data kind of movement, you know and what we can do Iterating over data to get value as well. Yeah, because I mean you think about adoub It really is a batch platform We get criticized for saying that you know all the time because right people don't want to market it It's bad, but most of the use cases today are bad and so everybody's trying to get to real time That's like a whole new So I wanted to ask you your perspectives on this So we we always look at you know all the startups and then you see hortonworks goes public and you see wow pretty tiny Cloud air just announced that you know past a hundred million dollar mark These are small numbers in the grand scheme of you know companies like ibm So you're a leader we've quantified the market ibm is number one and a lot of that is services We understand that but you're talking big Business large deals going down in big data. So we look at it say everybody loves to talk about disruption We see the rich getting richer It's like Everybody looks back at oh look at look at what happened to dg and apollo and all these goes, but that's not happening today What's different? It's like ibm companies like ibm realize the opportunity and you mobilize How did that all happen internally? I mean who knows data better than ibm right? It's we've built this company for the last hundred years around data going back to this CMS right, I mean We it's just how we built the the world right and now we're just Mobilizing in different ways to help our clients transition into this world of big data and iot But it's still really about the data and I love there is this one quote out there It may be horton works that has said it that it the huddup wasn't a disruption to the data center It was the data that was a disruption to the data center, right? Yeah, because like I said, we had this sanctity and and you know, it was nice and neat and we had Data that fit nicely in rows and columns and and now it's just coming at us from every direction And not only do we have our systems of record that run our business But now we have and the systems of insight that allows look at our business But now the systems of engagement that are all around us that we have to deal with and new ways that we never had before and so As we restructured how we look at the world with cloud data and engagement That's how we saw it right and that's our whole strategy and and how we've organized our business units How we organize our focus and development is all around those three things So you guys own the systems of record business you always have so the z that's your stronghold The systems of engagement IBM is demonstrating its mojo and social I mean you really are a leader there the the new term that I've heard and I think you guys pointed to systems of insight So you've got these three really interesting workloads application areas value creation areas And you need a portfolio to be able to address those right the flip side of that Joel is the portfolio gets really complicated Yeah clients sort of struggle to try to understand it. How do you simplify that? What are you doing to sort of try to integrate that? Yeah, I think it all starts with you know What the client is trying to accomplish right so you know when you start at that point? And we've seen a number of examples where this has actually worked which is you know when you start with okay What's the business kind of you know situation? What's the problem you're trying to address and then you kind of define, you know, what are the Kind of data sets and and things available to you To try and you know understand what's going on and that's when you kind of bring all of IBM's kind of suite of you know analytics technology And and experience into one kind of package to get behind That and provide a real solution So I think you know a lot of folks Have made the mistake of starting kind of at the bottom and saying well Here's you know, you need to get all of your data into a lake or you need to you know Create a hub first and you need to do all of this heavy moving, you know heavy lifting Before you can ever even start to you know address the business and I think where IBM has succeeded You know in the last few years with big data has been starting at the other end and saying okay What are you looking to accomplish with your business? What's going to be transformational for your industry, right? So I think starting at that level and then working backwards We have multiple deployment strategies. We're one of the well. We are the leading hybrid solution out there, right? So it's not just cloud. It's not just on-premise. It's not just to do it's not just you know MPP databases. It's it's a full spectrum of Colleague love That's a complicated situation for a lot of customers And so right something that you guys don't talk about a lot Is the services piece of the business 45 of the revenue and big data is services You guys are the leading services company in the world How do you work with your services organizations to leverage that for customer outcomes? So in our new structure, they're actually integrated into our business units So now we're working hand in hand from a client agenda perspective and all the way up through the industry So, you know, you'll have client agendas like I need to Advance my analytics capabilities around if your insurance are claims, right? So that's where we can now bring in the industry expertise Even more so with the lens from an industry perspective now on the back end What we're focusing on is making these things very consumable And so a perfect example of that is the cloud and dash integration, right? So Clients who are building in client cloud it today and accumulating lots of really great data Now in two clicks can just create a dash dv Data warehouse and off you go right now You can bring in new services like Watson analytics on top of that spss And it's all within a few clicks very self-service very very consumable. So the domain expertise For that loud lives within the analytics group. Is that yeah, we're all one big happy family The industry expertise as well in the industry, right? We're shifting very hard towards the industry from a go to market But that's within the analytics within the analytics group. That's huge. I didn't realize that I just got the one minute sign. So I got to ask you Joe you asked about What you mentioned data lake. Yeah, john furrier has been asking everybody Data lake or data ocean What's the what's the better metaphor? Well, I I mean personally I I find that You know a funny metaphor. I think I used it in analysts analysts briefing yesterday Where I said, you know the idea of dumping all of your data into a lake and then going fishing Is really the wrong idea and so the ocean is even harder to catch things, right? So it's like a big game fishing. Yeah, I think about it the other way say well What type of fish do I want to catch? What's the best lure? Right, and if I want salmon, then I'll go to the ocean, right? But if I want trout, I better go to a river, right? So I think we need to kind of start questioning the idea of like hauling data into a lake because You know, I don't see it. I don't drinking water. You go to the lake. If you want currents, you go to the ocean You want to surf the waves, so A lot of diversity you need a big portfolio to take care of that Joe, thanks very much for coming on the queue. It's great to see you. Thanks for having us All right, keep it right there, buddy. We'll be back with our next guest This is the cube we're live from IBM interconnect in Vegas. We'll be right back A lot of things from a trip around the world But you can't always bring back customer data because many customers don't like it when their data moves around If you're going to do business globally, you need a cloud that can keep your data where it needs to be Today there's a new way to work and it's made with IBM Hey, I'm George Matthew president co of altrix and you're watching the cube and Dimitri is a mean I'm the cto and co-founder of stackstorm and you're watching the cube Vice president of product strategy at two logic. You're watching the cube Hi, my name is ben jones senior product manager of tableau public tableau software and you're watching the cube Hi, this is frostbough from tableau and you're watching the cube live from Las Vegas, Nevada It's the cube at ibm interconnect 2015 brought to you by headline sponsor ibm Okay, welcome back everyone. You're watching the cube live in las vegas for a special presentation for ibm interconnect This is our day two wrap up. I'm john furrier the founder of silicon angel my coast Dave Vellante co-friend of wikibon research and said have special guests for our wrap up No other than the ray wang. I think you're number two on the leaderboard right now last time time checked Here in the social media lounge. Welcome back to the cube. Great to see you. Hey, thanks. I didn't even know I was on the LL list You're just always Influential But you are you've been covering analysts always have all the inside baseball. They've been following the industry You certainly are a road warrior like us. We always see each other But we know we've been following your career. You've been on the cube many times and at oracle open where we laid out What oracle is doing then I was saying Dave earlier oracle always talks about ibm of all the vendors That's the consistent company oracle always talks about and ibm is looking good, right? The system z engineering system mainframe a bunch of other stuff now cloud focus So you're seeing ibm marching on the vectors that we've seen before more meats coming on the bone But what's your cake this year the new show wrapped up in one all these three shows coming into one Are they doing it right? with the show Could it be better? What's the focus? What have you hearing on the ground from the presentations? Just what's your take so far? So we looked at it from a couple angles, right the concept of the show is great right developers builders Infrastructure all the ecosystem. I mean that's what the show has really been about doesn't matter if it's mobile or cloud or if it's digital Transformation so so I think they got that part, right? I think the challenge is where do you put 21,000 people? Right? We're like shuttling back and forth, you know like 20 minute ride over here 20 minute ride over here And I think that's the harder part, right? But I think when the Manila Bay gets built out that thing that's going on back there with the construction They'll be able to get to 21,000 now the interesting thing is when you talk to the people that are here They're excited folks want to build right? They're ready to move Um, but I think the piece that's missing is they need to know what the business strategy What what is that story like what are we building towards? Why are we building? What is this transformation? It's not just the enablement. It's not just putting it in the cloud It's not just you know making things collaborative. So yeah, so I gotta ask you so when you look at companies that are in transition You look for things teasing out the data saying Is it what's as a real there and some companies just put lipstick on the pig and saying we were we got it IBM seems to have real deep stuff going on. Can you share your perspective? Where they're strong where they're weak where they need work to be done because clearly they're marching down the cloud It's just all about the cloud into the day big data is part of it So it's an idea of things you see now in the radar But this is the cloud the engine of innovation is the cloud standing stuff up. What's your take? You know, they're betting on the cloud. This is the direct to developer model, right? This is what it's all about. How do we get directly to the folks that actually matter? But on the other hand, we're seeing some interesting things. I'm think I'm I'm like right at the edge of nda, but they've been hiring all these external folks in And one of the things they don't know I sat down with the chief digital officer kevin egan today Right. There's a chief digital officer trying to figure out how to reinvent IBM on the inside so that they can serve developers They can serve customers better, right? There's a new chief innovation officer So they're bringing a lot of talent in so there's a talent change, right? So we're seeing the transformation culture now The other piece that's also changing is if you think that their models in terms of what they're really building They're going after all the high end high transaction data sources So you saw the you know, you saw the partnership announcement that was going on with juniper Let's get in at the network level. We've seen the twitter partnership the linkedin partnership apple apple partnership So they're focused on alliances. This is not go it alone. IBM. This is let's go build an ecosystem Let's go find people that get enterprise and let's work with them Can there be an inside out enterprise that's essentially what's happening You're seeing that the openness the community model not just what open source directed developers totally agree with you By the way, but like on the business side tell about startups to tell about startups here There's partnerships going on the open marketplace in the cloud Is that an inside out reinvention? Are they talking about that? What's the key things that they talk about builds into that? Well, they're still passionate around the developers, right? They know that's core They know they got to work with startups. You saw the startup program that's being built out You know, they're building the ecosystem. They still have the startup contest. I think that's important Can you build it inside out? I think what they're trying to do is this is the same transition gersner was going through During that period. It's going to take them three years to pull out of this But you know what on the other side, it's going to be pretty Are you impressed what they're doing internally? I think there's still a lot of work to do. I'd say I'd be impressed in the fact that they've made the hard cuts Right, they've trimmed out a lot of the fat. They did the reorganization around the cloud They have the reorganization around the watson group I mean all these things are really designed to say look the future of software is not the software where you remember We're not buying an on-prem box, right? We're delivering everything in the cloud and you want people are buying outcomes Right, they're not buying products. They're not even buying services. So let's quantify this a little bit Can we do that like so we're talking about a IBM with about a 25 billion dollar business in the strategic areas cloud mobile analytics And about a 70 billion dollar business and everything else and that's those the the strategic business may be growing 15 percent a year let's say 10 to 20 percent Yep So the big question is and the rest of the business is declining They got currency headwinds So the big question is can they sustain or even accelerate that strategic business that 25 billion? And grow it and can it offset the the cloud? Right, we've seen this this before I actually I you know you mentioned the gerson. I actually think they're in better shape than they maybe were because I think they're There's more clarity now, but You know can they do it can they pull it off, you know So here's the interesting thing that 25 billion has to be growing at about 40 to 50 percent right for them to Make that number in three years But that's the partnerships that are going to help them accelerate that so all these partnerships are doing Are 12 to 24 month bets these aren't going to happen right away But if they get them right and they're focused they're in place for that part of the business Can they differentiate? I mean take the apple partnership for example, they talk about a lot They talk about unique apps in the in the enterprise. Can other people copy that? Um, can you know s.a.p. You remember mcdermot a couple years ago at sapphires Told the story about how steve jobs called them. This was years ago. Yeah, I made that order for how many iPads Exactly, what are you doing? We're not we're not about the enterprise So my my question to you is do you think they can sustain that competitive advantage? Is there a competitive advantage there? I think there is because I think other people woke up wondering why in the world IBM got that business to do the enterprise based on the apple It comes down to this apple really doesn't seem like they want to be in the enterprise business But the ipad numbers are dropping like crazy on the consumer side long term because the ipads are getting bigger The only place that ipad growth is what? The enterprise great I got to get your take on the big data piece because when we were at big data svr event last weekend Silicon Valley had do but the world was going on strata had do Um, and uh, claudair announced 100 million dollars unaudited numbers almost half services summer speculating Horton worse had earnings today down dave down only 12 million revenue for the quarter below expectations In this pivotal Releasing open sourcing the open data platform with summer saying is resigning that sector Which we were arguing might not have to be a sector at all right when you look at the big picture What ibm's doing you look at that and that's a feature could be a feature of a bigger market Do you see it that way and because big data plays everywhere right? So can there be a big data pure play industry that or is that just all that stuff is just Going to be weeded out there can be a pure play big data in the industry But the reality is the is and past market in the cloud is where big data needs to reside Right and that's the challenge right and how do you actually make that occur? And if you've got an independent silo sitting out there and you've got all your other data Consolidate somewhere else. That's okay. But I think ultimately people are going to want to start consolidating Like the way we look at best of breed and sweets. We always go through those cycles as you know So But if you're a customer you're going to go with claudair you're going to go with ibm. I mean ibm services Are deep and broad so I think it depends on the use case right? They're going to be use cases where people just putting stuff up fast and quick They're probably going to get up on claudair first and then it depends right depends where they want to go with their services It depends what they want to do with multinational rules. It depends on highly regulated markets what they have to do Right, so I think there's room for both, but I see the aggregation has always won. I mean you look at oracle That's what they've done really. Wow. They've aggregated services one stop shop You know ibm's in the same spot. They've aggregated services one stop shop and look at their pricing models They're based on what you bought last year Yesterday doug belog talked about the the key conversations that they want to talk about it and want people to join Join the conversation as we say it was one drowning in data to Consumption of customers on pram off pram and three ecosystem. So drowning in data. I got to ask you data lake or data ocean What's a better metaphor for the future? I think you're right. It's data ocean That data lake is way too small and like we talked about data lakes becoming data swamps those data oceans are now super fun sites Ray wing I've always thought you were brilliant, you know always you were always one of my favorite analysts now Your number one ray wings could be the number one in the leaderboard. We'll see how that happens Great. Thank you for for that. No, but oceans are different. You talk about the tsunami of ocean You know the tsunamis the currents are changing real time streaming. You'll time wait pipes, man You're surfing the pipe, right? You know, it's it's all these things that actually happen hang tan I mean you point out though. You could drink the water in the lake. Well legs have streams to the ocean So streaming Water salt water drink to water from the lake. Um, anyway, we're going over the top. So um, final question What's your take on ibm just in general your advice? I'm sitting next to ibm CEO What do you tell us on the senior vice president? What's the ray wing advice to us ibm if I work for ibm? So back to where we were in insights We were actually seeing the same spot um about four months ago three months ago and I think it's the same thing I they are going down at transformation and I think it's a very important transformation We're seeing the change the change in the people that are coming in there's management changes There's consolidations or different teams merging and I think it's right. You're right You're towards the cloud big data is still a huge part of it because that's going to be driving an insights business I think pitchiano bob pitchiano was saying that there's an insight economy that he's trying to create That's actually a very important thing that's actually happening because that's long tail on their business The cloud is the entry point the developers they've got to go galvanized and then in between they got to keep the rest of the Business is humming but you see the stuff that's coming out of interactive and design I mean gbs has a lot of tricks up their sleeve in terms of like growth and bringing customers in And so now the challenge is how do we fix the mix right all it people here? We're the business folks right who are the folks coming up with strategy and I think you'll see that in the ship I mean right now you look at every presentation. It's here's the product. Here's the feature Here's what we're trying to do and now it's digitally enabled. I think in six months It's going to be here's the storyboard of what we're trying to go. Here's the design solutions Solution selling it's talking about journeys. It's taking the design thinking bringing it up front by the experience by the outcome I think that's what we're head. Okay, so I like their whole systems of record I buy that old school batch model inside the data warehouse systems of engagement very very awesome messaging Love that's an open green field oracles going for it. But what's this new thing systems of insight? Is that marketing or is there any meat on the bone there? So there are systems of insight being created But I actually think the broader thing is these are systems of experiences and those systems of experiences are becoming Ultimately mass personalization at scale and that's the generation to digital We see it going from transactions to engagement to experiences and outcomes to ultimately mass personalization at scale The insights are important, right? But you know the big term this year is predictive prescriptive Throw it all out. It's about being intention driven. Can I figure out what you're going to do next? If you go to starbucks every day and you pick up coffee at 9 a.m You get the same tall black. Can I get you to get a tall white and what's the ship? And when you buy the tall white, what I really want to know is I know you're going to buy a tall black But can I get you to buy the tall white? Was it the time of day? Did you come at four and had to change your heart? Did you walk out of a different meeting? You know, was it raining outside? Like what was it that got you to do that? And that's where we see these intention driven design Well, you know, where computers are coming. So maybe you're hungry with biosensor So great great great things are coming off. Appreciate it final give us an update on what's going on with constellation What do you got going on? You always have an event. You always got some stuff going on share What's going on with your company that you founded big thing constellation executive network We're on fire. We're actually adding people. It's basically taking silicon valley insights taking it out to the masses Really trying to help leaders figure out what's practical The last stuff we come up with in the valley is like pie in the sky Really cool ideas works well in the valley might not work somewhere else. Second thing that's hot We're actually focused on the digital disruption tour So our book is coming out the disrupting digital business from harvard comes out in april Online and every book start by may 5th. That's when the official launch is going to be And so there's a tour going around on how people can figure out how to build disruptive business models And you actually get into digital and then the last thing is our event So hopefully we'll see a constellation connected enterprise half moon bay ritz in november 4th through 6 What I love about what you do ray is you bring the the sexiness and the cool age from silicon valley All this great constant and put it to put it to use for the playbook Everyone wants the playbook at the end of the day It's always good to get intoxicated on the latest trends, but they're getting the playbook Right and it's how you actually go out do it roll up your sleeves and get there. I think that's important But hey, you know book signing in the cube. We got another book launched in the cube schmarzo's book, right? New york city. He just launched it coming up All right ray way as always great insight. Thank you for coming on the cube really appreciate ray wang For the constellation research. We'll be right back on the cube after this short break First time on the cube, baby rock and roll. It's probably five or six times. I've been on the cube now Right, you know at first the guys are just fun to work with at welcome back. Hey, always a pleasure to be in the cube I'm about to go on the cube. You never know. It's a three time veteran of being on the cube I hope many many more chat seconds chat. Welcome to the cube. Dave. John. It's great to be here, man I keep coming back because uh great insightful questions from uh from uh john and from Dave What face melting action have you seen here at the event and I know there's a lot of it It's a great vehicle to uh to communicate with a broad audience. A lot of folks watch Great to have you back Good job. All right. Craig newness of vp. M. Marketing at hp stores. Thanks very much for coming on the cube when people Mention the cube they they're like, oh my god. I saw you on the cube and they're all excited about it It's it's a it's an experience. It's not just information. They experience kind of what's going on there It's like real time. It's like they were there. That was like going to the gym Legendary ibm or CEO of samantec and now CEO of virtual instrument Great to have you on the cube. So for cube to be here at a conference like this. It's got 15 20 000 people And sharing that live around the world That's consistent John and Dave are amazing. I don't know how they keep everything in their heads the way they do It's a great format and we're obviously seeing that this a notion of real time coverage And a real conversation is what's driving us as a company And I I said very seriously when the questions and the comments that we hear from From them and from all the different guests here directly turned into the products that we built Yeah, that was my first cube and I really enjoyed it. It was the rapid fire of questions It made me think on my feet, but they were very thought-provoking and really got me going on analyzing The the greatness of barista and the greatness of the cube as well. John and Dave the reason their approach works They're not just guys, you know reading down the question list, right? Okay, next one next one They're it's a conversation, right? And it's you know, they're going to challenge you They're not going to settle for the the marketing hype and the bs and all that stuff that the industry throws around Come on. You got to hit him up on the hp question a lot's changing hp some turmoil at the top obviously controversy they're going to hold you down to the the the real facts Compare you to the choices our users have and have you respond to it on the spot, right? Thinking real time and so that's real talk Not just a kind of a paper interview I'm john fray with silconego.com and i'm here with davilante We are inside the cube the cube is our flagship telecast We go out to the events extract all the signal from the noise and share that with you and Great guest lineups. We've got ceo's cto's with all the top executives bloggers thought leaders venture capitalists I'm absolutely stunned By because I know it demands 100 attention for these guys to be up there talking to people about a wide variety of technology topics I can't believe these guys can make it so many days in a row So i'm wondering how long they're going to go home and pass out for after this, but it was incredible They just do a fantastic job If you're not having a conversation Then you're very scripted and if you're scripted then you might be getting the right words But you're often not getting the whole meaning and the whole Depth of the conversation to the fullest extent. I think this is a heck of a lot more authentic It comes straight from the heart and the brain Sometimes you might forget to make some of your points if you're not a real-time thinker But I think from both from a participation and from a consuming point of view. It's much more real chris Holds no punches So i've been on a cube a number of times and I think the the interesting thing about about being in that particular venue in that format They introduced me as hey a half dozen full punches. Well, they don't either right they ask really difficult uncomfortable questions sometimes and you can tell people And the positions and where they are in terms of what they're able or or desires to speak of You can tell where they are on that borderline between kind of just you know Honestly answering questions versus kind of glossing over them And I I enjoy being there because I I don't say I'm outspoken, but I honestly answer questions with with the full intent of being able to be Respectful to the people that I I bring solutions to right if I whitewash this crap You're gonna turn me off every single time you see me on on on any venue let alone let alone the cube So I I like being asked tough questions I like answering them honestly and that's a fantastic venue for doing it Otherwise you get on panels and you got a bunch of talking hands blabbering at each other. It's worthless and this was my first time on the cube and I really got a chance to get to know john and davin and they're really amazing guys I mean the the knowledge that they come with The topics that they could talk about the people that they know And just bringing it all together in this live broadcasting forum. It's just fantastic. I mean, I just love it I'm like I feel like a groupie or something, you know In this environment, you know the social environment the real-time environment where we're in right people Look through the marketing fluff very quickly and if it's not authentic, right, you know, they don't trust it anymore So in this environment, I think that's a growing trend Yeah Live from Las Vegas, Nevada It's the cube at ibm interconnect 2015 brought to you by headline sponsor ibm Okay, we are back live inside the cube. This is silicon angles flagship program We go out to the events. Extract the scene from the noise. I'm john fray the founder of silicon And I'm showing my co is javillante We're front of wikibon research and nexicus jiff fray cto system z platform with ibm. Welcome to the cube. Thank you So system z is the big event we covered in new york city at the jazz center, which is phenomenal It's the mainframe huge. I call it the god box, but you know, it's california germ, I guess It's powerful. It's a mainframe system But no one calls high performers computing mainframes anymore. Yeah, they're just big machines that get gas basically So what's under the hood? What is the the mainframe? Evolution to this modern world You know, people still probably have mainframes out there big banks and whatever but right now it's about speed I need in memory. I got all this stuff going on large data Tsunami of data. What's the innovation? What's under the hood? Well, I think that um, you know a traditional value of the mainframe is Is uh You know the more work you put on it the better it performs, right? It's uh, it's a it's a large Air and pool of resources. It's got the best, you know fastest single thread processor speed in the industry lots of memory We focus on a balanced system design. So processor memory bandwidths internal buses IO it's all comes together to to to provide, you know, ultimate scale and performance And with this z13, you know, we've taken another turn on on that crank, right with uh, Absolute best single thread performance in the industry I think what's interesting about this mainframe is that we really focused on compute performance So, you know, the traditional example of like for the order of magnitude like, okay I get the single threaded thing. That's great. But like performance. What does that mean? Well, we have, you know, uh, 5.0 gigahertz single thread core, right, which is, you know Uh, probably almost double what what what most uh distributed platforms have in terms of, you know, single thread performance and while You know a lot of competitive, you know server platforms have traded off single thread performance for more cores or More parallelism scale out, you know, we we we haven't given up on that Everybody's hitting the laws of physics, right? Uh, and in terms of the rate at which you can improve performance in these single threads But uh, we're pulling every trick we know out of the book to to ensure that we we deliver, you know Industry linen performance. Can you say you focus this time around on compute performance as opposed to io? Well like uh, well, I think there's a well, um A well earned reputation for z being, you know, a high volume Transaction processing engine data serving uh traditional workloads But I think there had been a view that uh, if you want to do numeric intensive or compute intensive or statistically You know mathematically intensive workloads you run those somewhere else And you know with the advent of of our objective to get more predictive and prescriptive analytics to the platform With this machine in particular we focused on Mathematical performance of of the engines, right? So we introduced Vector processing single instruction multiple data lots of memory Right multiple threads per core and that all contributes to I see you're saying so yeah the main frame You don't think of as you traditionally as your high performance computing right system Should we start thinking about it? Well, I think I think you know, I think there are extremes right in terms of high performance computing but it's it's fair to I think recognize that Uh commercial traditional even traditional transaction processing is becoming more compute intensive The language runtimes Are are making more use of of compute performance rather than just moving data around right so And I think it's it's really part of the the core strategy here To use tools like You know IBM's spss right modeling tools which generate these you know these statistical models And those those those things are mathematically and computationally intense So we got to make sure we run those, you know best of breed on the platform a long history at IBM We're talking off-camera when you saw the virtualization trend occur. Yeah What what did I feel like to you? I'm going to say the versatility. I mean vmware specifically I thought you might have been talking about 1967 when we invented it, right? That's what I mean. Yeah, so Did you just look at that and shake your head or say boy that was a missed opportunity or what was going through your mind? you know, I think that Yeah, a little bit. I mean we we you know, you had mentioned we were talking a little bit off-camera, you know z tends to be You know kind of the workhorse that just it kind of works in the back room and you know It doesn't break so it doesn't get a lot of attention Um and And people I think there there are some that just aren't completely aware completely up to speed on On the technologies that have been in this platform for quite some time Now the guys at vmware have done a fantastic job, right of I've taken the x86 environment and virtualizing it. We still have in my opinion best of breed server virtualization Uh, the benefit that we have is that it's in the hardware, right? That level of integration is the way we get near native performance out of our out of our engines even when they're virtualized And and and highly virtualized I think the thing with virtualization that That we need to be focusing on now is not just whether or not The processors are You know are effectively utilized or you know, how much work you can consolidate on on the platform because that's a strength Let's see we can say, you know You know 10 20 cores worth of x86 and run it on a single engine on z Right and that's been a strength of our virtualization And I think now with with cloud and and with all this dynamic provisioning and software to find environments I think the key to virtualization is in the management, right? So To have a really good effective Standardized way to do virtualization management is really the key and so When you talk about Relative to x86 you you've got an advantage because it's in the hardware and firmware That's performance in a utilization factor. Yeah, your your virtualization tax is not as great. Right. It's really minimal. It's The minimus. Yeah, like I said, we run near native speed Yeah, and and and vm where you're right has done a very good job But I wanted to ask your opinion on something so in 2009 I listened to paul maritz. Yeah, he was an investor Financial analyst meeting and he said we are building a software mainframe And I was taking notes and I went That's interesting. No, they don't use that term anymore There's marketing people at vm where's it does stop saying software mainframe. It's not we don't want to market it that way But but what it was what he meant was it's all software world. That's the beginning of a risk And he understands technology. So that really caught my attention. I said, wow, okay Let's never goes down. It's just global sysplex. Yeah, I thought about that runs any workload Any app highly virtualized has vm where in your opinion built a software mainframe? No Tell me why well, I mean I think the part of what makes a mainframe a mainframe is is The economy's a scale, right? As I said earlier The thing actually runs better when you put more work on it. So, you know when when other competitive systems can Can drive? Utilizations To 80 90 even 100 right with consistent response times across all of the All of the workloads then maybe they'll have then maybe they'll have some of the mainframe characteristics I think what he was referring to which which I happen to agree with Is this notion of software defined environments, right? I mean I think you know Virtual the point I made earlier virtualization isn't just about having fast or utilized Hardware anymore. It's about using virtual Virtual resources as the foundation for all of your operational environment, right when you virtualize a system You know, it's dynamic. It can be programmed You can grow it. You can shrink it. You can dynamically instantiate it. You can make it smarter And and these are the things. That's a holy grail. Yeah, this is this is what software brings So if we can make hardware look more like software, right server storage and network Holy grail, holy grail, holy grail. So I got to so I want to get your perspective on this It did we've talked all the time on the queue the software mainframe by maritz a great vision 2010 what happened next it was like the Stalled it was a Picasso that he painted the Mona Lisa attack Okay, beautiful the problem was the marker wasn't ready for you all the stuff going on the stack Then they go to pivotal say everything over to pivotal the couple Nice little concept, but they're still working on The virtualization piece on the network layer. Yeah, so there's still work to be done. So I think it's storage by the way Yeah, right. Well, I think I yeah, I think the moonshot is software mainframe And is it just they're just not there yet. Yeah the industry. Yeah Yeah, so, you know, are you guys have it but see you're saying Utilization is not the the battleground anymore certainly for you but when you look at the real utilization of a Of a VMware environment. Yeah, you know, they talk 20 30 maybe 40 they talked that way over 50 It's no way not even close. Yeah, the employers knows like our david floyer knows this stuff Certainly sub 30 percent. Yeah, right. Yeah, so for the balance of the industry it is still Yeah, yeah, you know, I don't mean to I don't mean to suggest that's not important What what i'm suggesting is for you next what's next and what's next is Is to make use of virtualization as the foundation for all operational control of the environment But aren't you doing that today? Yeah, we do a lot of that today, but I think I think we have focused on the mainframe on On the traditional core value proposition of our virtualization being Utilization and performance and scale, right? You'll see us do even more than we do today Uh in in the way of optimizing underlying resources based on the needs of the workload, right? That's another strength of ours, right? Is that is that we can assign Service levels to the work and then have the operating system and the underlying hardware and virtualization layers Uh optimized to those to those, you know to the business importance of the work So what you take on docker docker has this this model and we just heard nancy pierce And I want the cloud new division all the IBM resources coming together And they're probably going to just jam just run like the wind Now you bring a different perspective in technology with the mainframe and you've been working under the hood share with the audience What's the modern? Stuff that you've done that that makes it state of the art state of the art Missouri runs workloads with all that stuff. What is it? There's linux involved the java tease out some of the highlights the new shiny You know part of the engine that you added onto the yeah Well with with this particular announcement for the first time, you know, we've we focused on core engine performance again Right delivering 40 percent more capacity lots more cores 10 terabytes of memory on this machine, right? So I mean we we know speech and feeds game, but let's get down dirty on this Who does that help? Is it a big bank minutes matter right for some of these guys? Take take a you know with with people wanting to put more data more data in memory, right? If you give a terabyte of memory to db2 running on this platform, right? And and have it use that stuff for For in memory more in memory you reduce ios you improve perform You improve response time by 70 for the for those transactions, right? And those are all core transactional Environments that are running right those financial institutions those banks as the shares come that's hardcore users that you have on that right? This is like big And what's the alternative say the z wasn't around I had to go build out a distributed system buy some boxes Yeah, I mean people I think generally You know believe that in the absence of a mainframe right and the value proposition. I think you get with the mainframe It's all about scale out, right? You know I heard some customers tell me off the record at the z event. I won't say their names, but this is said they're Huge and they don't mind writing big fat checks. Yeah, the stakes are high Yeah, they said we've already bought three. I'm even looking at a sight unseen sight unseen got the beta word Just like and I go I go so you're writing a blank check. Is it r&d. It's cool. You got a good r. No no no no Well, I know he said minutes matter. Yeah hundreds of millions of dollars matter on a minute window Minutes window. Yeah, so anything you can squeeze performance. Well, it's not just that it's availability, right? I mean the the ability to make sure that you have a platform if it's running core critical business That's it's always there always on all the time, right? It's not going to prove It's not going to you know Provide, you know resiliency or availability problems. That's that's key to a lot of our customers accessibility too is important Accessibility. Yeah, but z13 is not changing my application availability. Is it not well improving it? I mean we can say like yes, you know the technical corp of this is that You know take our i o subsystem, right every release including this machine We make the subsystems that drive i o smarter more autonomic, right? So we have Hardware that can sense congestion in the fabric congestion in the network can route around failures all transparently Right multi padding that does transparent routing around congestion and failure with no impact to the application whatsoever All right, this this is what we focus on. I said, okay, that's certainly you can measure that as application availability I want to talk more about i o You say you focused on compute performance. Yeah, you mentioned innovations in i o The balance system is the key. Yeah, I remember When I was a young pup in this business I I lived inside of the systems and technology guides I would just pour through that stuff and I remember when IBM announced mbs xa Expanded storage and said wow if IBM could persist that memory extension it would be totally be a game changer We were a few decades ahead of our time. I guess in terms of understanding what technology couldn't do but now flash Comes into play. Yeah, and you're starting to see the pendulum swing back That you know persistence, you know at near memory speeds. So can you talk about flash and where it fits? Yeah, I mean we got a we got a couple There's a couple places if you can talk about flash, right? You know the the traditional thought on flash is you know, you build storage with with you know, you build storage flash Flash uh in our storage subsystems and of course, you know the latency and the performance is is extraordinary right And and so we're we're even looking at the possibility of Of a synchronous i o and and and really exploiting But the the response times and the latency improvements that flash can give you in the storage devices themselves But the other emphasis for z is internal flash We actually have the ability to put you know 6.4 terabytes worth of internal flash in the system And we use that for internal purposes, right? So in a in a traditional zos system now you can completely eliminate All of the paging right virtual memory paging to external disk Right by using internal flash that gives performance advantage that gives availability advantage It's it's huge so Given the slow nature of spinning disk You mentioned paging how much emphasis of the prior to flash that you actually put on paging algorithms again given the latency and do you have to sort of rethink paging now with that well like resource like I said, I mean they're In in the last generation machine is where we introduced this and one of the primary use cases was paging, right? And so You know the performance you get out of that internal flash and the availability is is an external but now what about when i'm running linux It's coming because I would think that that linux open source industry didn't even worry about paging Well, I I mean I think there's paging of the guests, right? And then there's paging and memory over commitment and optimizations you can make on the virtual machines themselves, right? Right, so that's our next step, right is to make use and really exploit internal flash Right for the hypervisor itself Is one of the big benefits to scaling up a virtual environment is effective memory management working set management? Over commitment of memory and flash will help so essentially bypassing spinning disk And as well as the storage protocol that's that's correct and it's all internal and so it's essentially a memory extension Yeah, so that's the way we that's the way we view it That's the way we view it is a natural kind of high performance extension in the memory hierarchy And it's an atomic right into that memory extension. Yeah, and you're doing that today or yeah We're doing that today on the last generation of machine the ec-12 we introduced the flash Uh for zos it was a zos only environment and our apps being rewritten to take advantage of now Or new apps. Yeah, you know a lot of what we do in the underlying Middleware operating system hardware I think another benefit to the mainframe is that is that we introduce this technology and wherever possible Exploit it transparently to the application, right? So it's not that some of these capabilities aren't made available to the application But in The real leverage point is all of a sudden your operating system your db2 your web sphere That stuff just runs faster and better, right with no change to the app We did that with networking where we introduced You know, you mentioned high performance computing before In finny band brought us, uh, you know rdma capabilities for for for networking So we've introduced that now on standard converged ethernet Completely transparent to the application So now any applications that are driving jdbc access or to db2 for example Standard socket ip transparent to the app getting huge performance gains because we slide this stuff under underneath it and it's all transparent All right, jeff. We're getting the hook here. We got the keynotes going on. Thanks for coming I really appreciate bottom line for the folks out there What the system z platform all about bottom line and buffer sticker for what z is about these days Yeah, I I think that uh, the positioning here is with linux, right with the advances in the hardware That's it's focused on not only providing The traditional value proposition for the traditional workloads But with linux with standardization with best of read virtualization with the openness and the standardization to plug into standard cloud environments Right, you take all of that value of economy scale. It's a great cloud platform They're bringing analytics to the platform with the compute intensive stuff right very important for us a security Security is solid. We've got advances in our crypto Stuff again, uh in this the crypto is a big deal. I think in this machine That's a big two x performance over the last generation memory analytics big memory, right? All right. There it is. It's the big irons the god box It's it's it's all knowing it's more of the more work you give it the harder pushes and the better performance Love that line. It's the cube same here. The more interviews we do The better we get sure love it. We're bringing it out to use the cube with event coverage here And i'd be going to connect live in my space. We write back at the syrup break Andrew crates are a business operations manager at linkedin and you're watching the cube I'm chris ellen vp of business development for hb big data, and you're watching the cube Hi, i'm stacey slatter 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 u founder and co of bright edge, and you're watching the cube 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 Is a live mobile studio you bring it to events and we say we extract the signal from the noise What we do is we get the absolute best guests that are at those events We bring them inside the cube and we talk to them. We have a conversation. 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 we're a big data driven organization We have a data science team that allows us to see not only what's trending broadly With the public but what's trending in very specific areas in our specialty in tech That allows us to vector our analysis and relevance From our research and journalist team and to everything that we do as a media company We really want to make it fun exciting but more importantly Extract the data from the guests and extract that metadata and share it with the world So people can use that information to better themselves better their companies more importantly connect with other people To do more business to define more about the technology and for us. This is the future I do a lot of these types of interviews. I spend a lot of time with the press and it keeps 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 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 the value of an independent news organization at an event Is that 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 the benefit of the cube is place for conversations for people to connect with each other and and to learn about things and It's a revolution in media 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 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. We always know that your view is right until you hear a different perspective So you're always interested and give me some neutral perspective Help me see it from a different light, right? And maybe ask a hard question or two that I might not have considered but you know in that sense, right that independent Voice that's always ability to right have You know sort of independent audited sort of perspective right of the world It's always just good. The Cuba's 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 nose 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 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. So, uh, you know having been on it for Several years almost from the very beginning. It's uh, it's always great to be back and You know, you guys do an amazing job. So, uh, it's wonderful It's about connecting with people And that really is what it's all about having the conversations in a very social collaborative way And that's what makes it so exciting because people are watching It was the first time on the cube. It was fun. We did it again. We did it again 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 proud other than saying go and get up there. So it was quite good. It was hard as 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 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 a bias because you're biased by nature So it's it's great to get those questions and 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 uh, twitter feeds coming in from questions from the audience Sometimes it's the 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 Most of us admit to being overwhelmed by information at work That's why IBM created verse It uses powerful analytics to uncover hidden patterns in your email calendars and social feeds It continuously learns how you work and helps you prioritize the people and projects you need to focus on There's a new way to work and it's made with IBM Hey, this is Brian Seraven director of digital media for the san francisco giants and you're watching the cube Hi, i'm dan gordon co-founder of gordon birch and you are watching the cube It's from henland senior analyst at technology business research I'm trich.tv and you're watching the cube Dr. Randy faken the chief administrative officer of the texas institute for robotic surgery at hca and you're watching 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 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 gonna 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 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 is 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 You know they report on the the general things that have been around forever Reinventing the news with the independence. I think it's 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 And what the cube can do and 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 gonna hold back. You're not gonna pull any punches. You're gonna ask the questions You're hearing from the people here that they want to answer 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 gonna ask you and really to kind of advocate for You know the truth because that's really what customers are looking here 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 you Independence I think there's 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 that you guys are everywhere Covering it well getting all the points down. So, um, that's that's my mapping in my mind of it And I think that's a great position to be in Act 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 In other forums, it's all often sound bites and and and blog posts But with the cube we go in-depth conversations and that's really what's great about it and my co-host Dave Vellante and I We really want to make it fun exciting But more importantly extract the data from the guests and extract that metadata and share it with the world So the future of journalism is in jeopardy, frankly, especially industry news industry journalism Because so much of it is either focused on one of two things that's focused on client relationships relationships with sponsors Inordinately so or it's focused completely on the consumer and the audience and with no regard to what's actually happening No analysis on what's actually happening in the business. This is uh, you know, nice because a lot of it whether it's blogging tweeting video It's all about you know, immediacy of kind of getting what what happens now And doing this live and then obviously capturing it pretty quickly like you do on the laws and other things Kind of keeps that live element there And you know when people are at the show or soon after the show, I think that's when they're most Attentive to what happened. So I think it's a nice fit for it because You know you write about her to do something, you know a week or two after the show It's not as interesting. Not as timely though since they have people's minds Where we step in the cube strikes an even-handed balance between these two things I think and it's really going to be the model going forward for other organizations I think you're already starting to see that in the industry Location location Location here's the location that matters the most here or here or here It's wherever this is to get customers to come here and stay here You're going to need an app that connects to all your systems So they can bank shop do what they need to do and you got to do it fast before the competition does It's tough out here. You better be on the right cloud Today there's a new way to work and it's made with IBM Hey, I'm George Matthew president co of altrix and you're watching the cube and Dmitry is a mean I'm the cto and co-founder of stackstorm and you're watching the cube Vice president of product strategy at q-logic. You're watching the cube Hi, my name is ben jones senior product manager of tableau public tableau software and you're watching the cube Hi, this is frost wall from tableau and you're watching the cube 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 the format a lot. I think it gives us. Uh, 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's just 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 under the camera. That's a 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 cds 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 can be added value to our audience in the crowd John and jay were prepared and uh multiple cameras lots of lights as far as I know you could hear me There weren't any the breakups right like that. So who's 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 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 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 Cute little guy, huh? This guy could take down Live from Las Vegas, Nevada It's the cube at IBM interconnect 2015 brought to you by headline sponsor IBM Okay, welcome back everyone live in las vegas. This is the cube our flagship program from silicon angle media We go out to the events. They start to see the noise. I'm john furrier with my co's Dave Vellante and our next guest is Aaron shook executive software architect at point source. Welcome to the cube Yeah, thank you for having me. So your next IBM or now you're in a big shop here web experiences digital experience social experiences Development design art all that good stuff Especially busy mobile is hot. You must have a lot of mobile stuff So tell us what's going on with your company and why are you here at IBM interconnect? Yeah, so um, we're actually out here with the fairly large team We've got 19 board sources here Anywhere from our design team to our developers to our executives and really the main goal is to Um, you know look at what's coming for IBM educate ourselves educate our partners so we can deliver the best mobile solutions possible So what are you seeing out there right now? I'll see if the needs the old days was you know, put up some websites through a web app web responsive People want to go native native app android ios whatnot But now we're living in an api world Mobile apps are hard not to crack right going native if people go web response What are you seeing in trends? Obviously the cloud can power a lot of this stuff a lot on prem What's the landscape and what are some of the top conversations that you're having with your customers? Yeah, the cloud api one that you mentioned is huge right now But you know, we actually start even before that we get to there Because you know, I can build you a world-class cloud api But if it's not doing the right thing if it's not engaging your customer You've already pretty much lost so where we start is at the business requirements phase where we we go And with the ba and we figure out how the customer wants to use the app prior to even starting and then You know at that point i'll come in and we'll we'll talk cloud api We'll talk node js Which is something that's been pretty big for us going forward in that space clients like amazon a lot or and how is bluemix doing visa v Standing up stuff that is easy and amazon people used that for a decade now almost so so now bluemix What are some of the things that you're seeing with ibm bluemix visa v amazon? And now microsoft as your azure is out there Yeah, um bluemix is interesting because um It has so many capabilities around the ability to automatically scale And that's specifically interesting to me because I lead our retail practice And as i'm sure you guys are aware, uh retail has very unique scale demands So things like you know black black friday where auto scale is huge, right exactly and then do they support auto scaling? Uh bluemix yes, so what you know the technology that I think is going to really revolutionize things in the api areas Node on on something like a bluemix where you can auto scale with that So you've got you know really a four tiered Architecture model centered around you know node is your delivery and aggregation tier Caching the data and aggregating data from all these um legacy systems and making it friendly for mobile So what is the number one? Hurdle for customers. I mean it's pretty easy. You can hire a firm do some design work looks great But then the user interaction is becoming designed to be a huge issue. So it's not just look and feel It's actually user expectation experience, which is a design thing not so much art I mean looking beautiful is one thing but actually being functionally beautiful is another Can you just tease that out and what that means some of the back end architects? So is it again look and feel looking beautiful functionally beautifully and then actually integrating? Absolutely. Yeah, so you know as an architect What I'll do is I'm designing an api what that user experience part is is the most important part So we look at how is the user actually going to use the app? How's the customer wants to engage their user? We we send in a ux team that will actually do user research ideally to figure these things out And once we have that knowledge we can design the app Technically in such a manner that it's going to function the best way possible for the user So can you talk about the you know the discussion of do I build a mobile app? So I make it a responsive design. What are those discussions like with customers? Yeah, I think it really depends on the customer and what their industry is In something like retail obviously an m.site is a must have and that's kind of table stakes as of now And then you can get into the app. So a good example of that is the one that we did for hh greg which is a retailer out of indianapolis They do very large appliances televisions electronics furniture. So what we did there is we started with the m.site We were able to get that going from the ground up in three and a half months or so on top of ivm work light And then what we did was we utilizing hybrid technology were able to share 80 of the code from the m.site into an installable app So not a lot of invest once we had the m.site going to actually get the app the app in place And they were able to recover The the initial investment in probably three four days or so of the app being launched to the app store Now how does it work because the full life cycle? So once you deliver the the code and the final build you've q8 it you sort of hand it off What happens next? I mean there's a I guess it depends, but what's the sort of typical model? Once the app is basically ready to go ready for consumption. So yeah, you submit to the app store and That's kind of where our our marketing experts can can help our our partners with the app launch So one that we did for finish line was actually very very successful Where they were able to drive so many downloads to to the app that we actually ran into Issues with scale and they're also on soft layers. So we were able to handle those issues with scale pretty seamlessly, but it was The initial app downloads exceeded expectations by roughly 10x Right, so it was um and that's all because of you know a strategy that was in place To market the app to you know drive it into The stores because that's who's going to be Really, that's your main marketer for your app. But in that case is your store associates So when I come into the store, I'm looking for a new set of shoes. Maybe they don't have my size The associate comes over with the new app Scans a barcode locates the shoes for me here. They are in another store You can either go there and pick them up or we can ship them to your house And by the way, you should download this app Okay, now what about the sort of maintenance of that app your your clients, you know outsource to you you build the app Now what how do I how do I want to make changes? Do you do you have sort of a monthly retainer monthly maintenance or is it sort of a one-off every time statement of work? How's it how's it work? Yeah, so we we work with different models So some of our clients want us to come in and build the initial app and Get it running while also cross-training their team and you know teaching them the skills necessary to succeed in mobile And then at that point they'll take over the maintenance and others want us to just you know continue to maintain it Holistically for the life of the app Okay, and then that latter model you just have some kind of relationship with the business people They're they're feeding your requirements. You guys are Exactly. Yeah, so we kind of see ourselves a bridge between the business and the it So we can kind of bridge the gaps between them collect the requirements from the business Talk to it in a way that makes sense and then come up with a holistic solution that works for both sides How long you guys been around? So point sources a hole has been around for 10 or 11 years. Okay. Stephanie's been on the cube. There's coo Stephanie truenzo truenzo She has yeah. Oh, okay. I had pulse. I think two last year in pulse Yeah, we talked mobile back then when mobile first was launched. That was the big messaging So she's been on you guys been on for you guys are big. You guys have a lot of big clients Right with some of the clients you have we do. Yeah, so um actually at 3 30 today The general session will have tom from primarica talking about a solution We did for them that enabled their, you know, 100,000 person sales force to It's kind of a two-fold Value prop there. So number one is training the sales force so that they're comfortable Enough with with primarica's business model to get started very quickly And I think they've they're down to around three days training or so using the app And the second is the app is actually used when the sales force visits a client's home And we utilize things like offline storage capabilities because you know when you're in somebody's home You could be out in the middle of nowhere not have a cell signal So they're able to access all this offline Enter the information sync it as soon as they get back online and it's really streamlined their operations there So so but around for more than a decade your strategy obviously has shifted in the last 10 years We talk about your strategy in general. Sure. So in in 2012 we um, we we pivoted to mobile So we like I said, we'd been in existence for quite some time before that Myself and and three others started up a Raleigh, North Carolina office And at that point we pivoted to mobile So since then we've been working with you know clients like a primarica like an hh greg a finish line All state on their mobility solutions and the relationship with ibm goes back to the early days or? Yes, we've Stephanie worked at ibm. She was a you worked at ibm. So I guess you so you have that Affinity with ibm development platforms tools middleware experience. Yeah, I was out of the Raleigh, North Carolina lab In the development labs working on products like Webster application server pure systems smarter commerce sterling commerce Etc. All right, let's get down and dirty then since we've you know Stephanie's been on you're on Okay, we've got you all warmed up. Let's get down and dirty mobile first. Is it working with ibm? It's kind of downplayed here with bluemix is a big mess. Obviously bluemix is a great enabler Got auto scaling you mentioned a bunch of other goodness in there Not that mobile is going away. It's not a fail initiative But it seems to be global first right now a lot of global discussions and also clouds So is it mobile first or cloud first global for I mean, what's your take on this? I mean a lot of work getting done under the hood right now My take is that mobile is actually driving cloud So because of mobile and because the interaction patterns have changed Uh, you know it basically demands a new tech technology model, which is cloud So all these legacy systems that customers have that have been around, you know throughout the Before the web area and through the through the web area are no longer sufficient for meaning the needs of today's mobile customers So, you know you we've transitioned to things like the four tier architecture model where the cloud is just key You have to have that data out there. You have to have it accessible and has to be open to everyone But you can art while you can it's a lot different depends on what side of the room you're looking at the the the problem opportunity It looks different. So for instance, you could argue that okay If I go mobile first and go native not web responsive, that could be a strategy In fact the step in I talked about that last last year in detail Some say go web response then go native figure out your requirements. Some say go native That's your your demand now do that but then it's the data issue. Where's the data come from? So if you're aggregating data using api as you mentioned really hot, that's the cloud play Exactly. So there's all this like really weird kind of plumbing going on in the cloud that affects the app And there's some architectural choices. What are you seeing on that? Could you like share anecdotally what you see with customers around this complicated area of okay? I want to design just a great app that looks good and functions amazing But yet under the hood if anyone opens it up, it's got to work He's talking about that. So under the hood, but you mean cloud apis notifications Recency frequency a lot of algorithmic Watson for instance is now embedded in big lift for bluemix was the Watson piece So, you know, you're seeing this fabric develop at the data layer that necessary is kind of just underneath the mobile front end So like there's a lot of flux going on here. Not saying a bad way, but like architectural decisions need to be made Exactly and those architectural decisions I think are a result of the requirements of today's consumer that has a mobile phone in their pocket 24 7 And the cloud is kind of a way to stitch everything together all these systems all this data that exists all over the place Can then be aggregated through the cloud made accessible to mobile and I think that's that's really what's changing Let me rephrase it this way then If I'm a mobile developer and I have a customer because it's all customer driven Obviously, you guys do that you don't want to foreclose the future But you want to leave some headroom too So what's how do you think that's through and how do you look at the customer on that specific point? Because if you miss fire on the architecture, you could foreclose a downstream opportunity for the customer Absolutely. Yeah, so again, you know starting with the business requirements designing the api to To you know handle those and you'd mentioned earlier around responsive design That's also that's becoming even more and more important with the new Google SEO rankings where people are getting dinged if they don't have a mobile equivalent for a page and they're starting to They're enforcing that now and and we're seeing a lot of people reexamine responsive design for that reason so We've actually in house developed our own We're you know, we're big fans of responsive design. Obviously, we see it as something that's going to be key for success in mobile So in house what we've done is we've we've built up a lot of IP in this area that we think can help customers so responsive design Native app yeah agile has proven itself in dev ops and now cloud the way to go Continuous integration deploy test redeploy constant, you know sandbox sprint run. That's the new software divine lifecycle Done deal right you agree. Absolutely. Okay, so so that's the case Which one's better to run that on mobile or web web response because mobile pushing updates for users is Can be a challenge. It can be so what have you learned there and shared with folks? A lot of the time. I don't think it's an either or okay. It can be both so Like I'd mentioned earlier We did a mobile website that we then transitioned to an app using hybrid technology, which we're we're still a big believer in We believe that if you implement hybrid correctly You get a lot of these code sharing advantages that you would not get with native And yeah, I really don't think it's either or I think it's it depends on the situation Exactly some like the web response to figure out their stuff and then right and the update thing is a challenge We've hit that in a few places One example is finish line where we launched the app We found a bug that was going to be fairly critical. So the app is a rewards app It's meant for finish lines vip. They call them sneaker heads that are in there You know on a weekly or monthly basis looking at the new shoes that release Reach out seems a natural fit for the native app because that's It's table stakes and certain apps are like you can't go web response Exactly, I mean and push is the is the big reason for that because you know as soon as I install an app for A retailer that I'm loyal to I'm saying hey I want to hear from you And then I'm giving them the ability to push these messages to me push promotions to me communicate with me on You know a daily basis and that's huge so So I was at our event we had last week big data sv and one of the Top tier venture catalyst ping Lee at excel partners said I asked them What's the opportunity that you're seeing from a discipline standpoint in in opportunities entrepreneurs? And in terms of success disciplines outside computer science You know you get the normal suspects, you know good science bad physics He said the thing that we're seeing more and more is design So talk about the role of design and how the word design has morphed into a broad spectrum If any what does that spectrum look like is there levels of skill sets on the design side Where it's not just art. It could be tech chops programming. So can you share what you've seen and what you guys are doing? Yeah, exactly. Um, and that's that's actually key to our business model. That's a big differentiator for us is that we We marry You know people with technology development architecture backgrounds like myself And then world-class designers with both visual and user experience skills They can go in there and research how this stuff works how it should work How do we solve business problems by working with our business analysts and then communicate with guys like myself to see You know the best way to make that happen with the technology because ultimately we want That user engagement to drive our technology choices in every scenario and without interacting with with these designers on a daily basis I don't think we'd be able to do that So if you had a lookout so you see the number of changes in the last decade, right? You pivot to mobile in 2012 What's the next wave that you're looking at? I mean everybody's talking about internet of things We had a guest on earlier this this week. It's kind of controversial and in social said I asked what percent of Of organizations are doing dev ops. Well, he said basically zero percent So that's people a lot of people pissed off at that but nonetheless All kinds of interesting things going on. What do you see Aaron instead of the next big wave? You guys are going to go after Yeah, I think things like internet of things and you know Near field payment technologies beacons that kind of stuff is going to be huge But honestly in the next year or two, there's still a lot of people are still catching up with mobile. So I think once once that happens you will start to see those take off and you'll see some earlier innovators in those In that area that are able to take advantage of them before anyone else But there's there's still a lot of catch up to be done with mobile with You know general architectures and making them mobile friendly to even get to the point where you can Enable things like internet of things and beacons and so forth Because to do these things you have to have your data out there And most people at this point do not have their data out there accessible via apis And they have the data exactly how they just can't get it What are people seeing in life cycles now in your in your role and you got a lot of clients What's the normal turn around time for projects that are in the size and the scopes that you guys are doing Share just like the size. What's the kind of current standard? In market right now for the kind of gigs you guys are doing with customers on the app side. Sure. Um, so I'm sure you expected this, but it's it's very it's variable depending on the situation So we've had anything from nine months one. We've had anything from one now enough We heard one guy said took nine years to get it up into production. They must have been around wonderful So yeah ours is typically anywhere from a month, which is obviously very very aggressive And you obviously have to cut corners there because you can't do your full user experience research If you do that so in those type of engagements, we typically start very very very simple Run the analytics see what customers think of it and then expand upon that For a more, you know fully featured app, you'd be looking at where typically three or four months From you know inception and talking business requirements to launch to the app store Awesome Aaron final question. Um before we cut the segment out. What's the vibe of the show? What's what is this show about? I mean it's the new way to blank new way to fill in You know fill in the blank secure new way to do security new way to do design new way to work new way all that Stuff's great. But besides that what is this show about here at interconnect? Is it developers? Is it more business? Is it more building? What do you use? What's the vibe and theme that you're seeing? It's a big mix of everything I think it's it's nice to get all these different backgrounds in one room And all these different perspectives and learn from one another so I've seen and we're from marketing line of business You know technical executives all the way down through we we brought our developers here So they can learn about these different areas and be able to you know talk to the ibm portfolio See how the ibm portfolio can help our customers because again, that's that's very very important to us All right, Aaron shook the executive architect at point source inside the cube telling the story mobile first Mobile's driving the cloud It's a great opportunity api economies upon us a new way to do things certainly clouds driving that thanks for joining us It's a cube. We'll be right back after the short break 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's 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 in jeff and so forth and I think now we've turned into like the amazing production We're going to look for guests for our events that we cover We want to look for people who are the thought leaders the cds 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 We think could be added value to our audience in the crowd John and david were prepared and multiple cameras lots of lights as far as I know you could hear me There weren't any great cups 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 sportscasters of big data for your Love it more man. Love it more man. Yeah, Dave's pro and uh, it's a great chance to come and actually talk about what's really coming new in technology One of the things I like about the cube. It's fun for me Is I 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 in their mind and extract that from them and share that with the audience So sometimes I have to ask around about questions 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 location location Here's the location that matters the most here or here or here It's wherever this is to get customers to come here and stay here You're going to need an app that connects to all your systems so they can bank shop Do what they need to do and you got to do it fast before the competition does It's tough out here. You better be on the right cloud Today there's a new way to work and it's made with ibm I'm Chris Ellen VP of business development for HP big data and you're watching the cube Hi, I'm stacey slatter 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 tishkirk 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 act 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 act 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 Live from las vegas, novata. 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 our flagship program from silicon angle media We go out to the events and extract the silicon noise and we are here at the vip Go social lounge interconnect go comm is the website. I'm john ford with davilante our next guest is brian kramer the ceo pure matter vip influencer author Overall great guy ted talk talk or the ted at ibm event and i've been in the business entrepreneur Great great person to know and talk with thanks for coming to brian kramer. Welcome to the cube. Thanks for having me I appreciate i'm looking forward to it. So the cube was originally when we first started talking about the cube was like Where ideas can grow so it's not in us so much a what's going on with ibm because of course ibm It's the air event stuff going on here. Yeah, but people are involved and um ibm is really transforming themselves into Social business and I remember in the 90s they coined the term e-business But no one talks about e-business anymore, right? So ibm really is on the front end of a megatron. It's called cloud It's called it's called the internet. It's called now mobile right cloud mobile social So again like e-business. It's all native e-business is electronic. That's the internet social business They coined that they're on the front wave of a killer trend and you are a big part of that You are part of their new way to work event. You're an author. So you're in the you're in the transition the front lines So what is this social business phenomenon out there and what does it mean to? People businesses and potentially come to the world. Yeah, yeah That's a good question. So one of the Interesting things that a lot of people are thinking about right now is what is you know, they get social media I mean you get how to post a status on facebook or a tweet out to a lot of different people You write what you think and you tweet it out The problem with that is you're pushing a message You're sending something out and you're not actually engaging which is what you're talking about. It's all about people So social business takes that to the next level it connects two people and engages in a conversation And it puts everything as a touch point throughout the entire business So socializes every moment of truth that is possible So think about like the shopping experience on any kind of online website Or the experience of buying something with any product here at ibm Every single touch point in every experience should be socialized. How do you make that an engaged experience? So that's really what social business is. It's not just pushing a tweet out It's actually creating a shared experience where you can engage as a community and this is Sounds really easy to get your arms around just it's like normal social interaction. It should be it's like walking into a A meeting or a cocktail party and networking right when you walk in and you share a drink with someone You are engaging and networking. You might hand your business card over to someone and it becomes a A networking event. That's no different than what social media should be. So david always talk like we love twitter We use twitter all the time. We have our analytics system and we look at twitter as people are talking publicly So imagine actually recording everything. It's all recorded. So so let's talk about the old way and new way right in that context right the old way was Email marketing website, which is great gen one you put a website up there people can self-serve themselves Use google search find out what you're looking for make a decision talk to your friends. Hey, should I buy that car? Should I do this I go on that trip Offline right now you have clickstream information. I came to the store walked around virtually No metrics. That's all pretty much good right now with this twitter and social phenomenon You have first party data whole new concept that has nothing to do with like click streams It's out in the open. Um, this teases out your human to human thing What do you make sense of that concept of the first party data and how that could change reporting Interactions because it's now a new metric. I mean, I just got my twitter. I walk into a site. I'm I'm in Yeah, well, I mean it's all about what we do with the data Um, and so, you know, if there's a if there's a billion and a half tweets happening every two days Then what what are we going to do with that? How are we going to listen to the data that's happening? What are we going to parse out that's going to make it easier for us to not automate but actually again engage So where are the moment where those moments where you can create a customer-centric conversation or a potential customer-centric conversation? So people are talking about their experiences all over the place So if we could take all of that data that potential data and use things like ibm analytics and ibm's uh partnership with twitter to and watson to be able to combine those efforts and Figure out where those moments are and then go have a human to human experience. That's what we're trying to do So you said earlier every touch point should be socialized. Can can I poke at that a little bit and just start to understand better What you mean by that? Yeah, so um right now we're creating a co-created experience. I mean this is broadcast. It's also being um, Uh broadcast on speakers. We're creating this experience and then hopefully this then also becomes a shareable moment a shareable experience that people want to Learn from that they want to share out that they want maybe even want to tweet out And so um that becomes one touch point in the total ibm experience You can take that all the way through the buying cycle. You can take that all the way through You know, uh, think about it in terms of like an online shopping experience where somebody goes online and they purchase something But they don't end up Or sorry, they they shop for it, but they don't end up purchasing it yet And so now all of a sudden they go and they have a different experience in another store And then maybe they have another experience with a friend of theirs who actually says Hey, I've had a good experience with that product. You should go back and buy it I think it's a really good product Whether it's a bike or something that you're really wanting to buy and then eventually you go back and you actually buy that Product now first of all there's no nothing linear about that buying process like there used to be It used to be you start in one place and you end in another. I mean we only had advertising Radio and tv according to you know the madmen days those were the only two ways that you could advertise Now you hear all these this bits and pieces of information all over the place So nothing about it is linear and yet through the buying cycle We're creating these little moments these little moments of truth these little shareable moments That are eventually leading us back to buying that same product because we trust the people that are in the moment But so I want to I want to just understand the the sort of control points to that socialization So If the premise is that every touchpoint should be socialized I as a consumer I say well wait a minute. I don't maybe not want every touchpoint So you're talking about the data being socialized of that experience or what's the control point there? I mean it's the obvious privacy anonymity like last night with the z-party a lot of debauchery going on I did not want to be in the video for example a lot of social business going on that wasn't it was good It was all you can't you're out in the open clean mainframe fun, but so so You're out in the open you can't I was but I was sort of behind you when you were filming, but I chose I chose not to be in that video But so how do I choose as a consumer not to share that sometimes I don't want to share my purchase on facebook? I mean sure right so talk about the flip side of that So a shared experience is it does not have to be a digital experience It can be a shared experience between two people that's not being filmed That's not being released on the internet. It's a shared experience that we're having that makes me want to go then buy that product So that's why that's it's not linear now. What are we doing as as as as brands to make that experience happen? How are we helping to create those shared experiences? That's what i'm talking about Okay, and so this human to human piece. It's like abu meta says The persona of one he comes out of the banking world, right? You can't be more impersonal than the banks But but personas change though in real time based on what you're doing So my reality and when i'm on the go in the moment i'm i'm rushing to the bank for instance I got a banking transaction. I'm on the corner of the i'm that in that moment. I have context And so okay, so but now we have the data. So what one of the things i'll be said is that sampling is dead All right, it's completely transforming the way in which we should be thinking about it I'm trying to tie it into this Socialization of every every touch point because we have the data now But the hard part like you said it sounds easy, but the hard part is okay How do I package that and get it consumed these pieces of confetti that are all over the place? Who's doing that? Well, is abu i'm doing that? Well, what other brands are doing it? Well You know, that's interesting because we're sitting in the land of Vegas right now in in in one of the greatest places to actually be having this conversation Casinos are doing that really well. Okay, you know, they're they invented it They're they're buying and rewards cards that we use in the casino to go actually gamble They're tracking every single movement across this because across our casino experience You want to talk about shared experiences? They know when we come out of a concert What time that's going to be so that they can open up the bar across the way And have three bartenders ready for the amount of people that are coming out And create a shared experience exactly for those people because they know who went in Based upon their cards that they're using their vip cards got them in they know who's coming out They know based upon the past they now this gets into a creepy versus cool conversation But they know what kind of drinks we like They could have those drinks ready for us and probably come close to nailing it So we're actually sitting in the land of answering that exactly. It's all about the data though, really It really is and then you see the new badges for this event. Yeah, it's all RFID There's a lot of data on there. I'm not sure what it means, but um, just watch where you go I'd like to see what it's like. It's like that movie enemy of state. You just gotta show you Should you be able to what to see what they know about me you You well, yes, you should be able to see what they know about you that you they should be transparent about everything Obviously, um, yeah, the problem is and the good thing is that they don't probably have an interest in specifically Just you otherwise They would have a much bigger army a much bigger team of people that would have to focus in on every single person So they're looking at trends. They're not looking at in an individual. Okay, but I mean but the h to h That's where I think they need to go deeper. That's persona of one right that concept Well, think about I mean the old days of the casino you used to have a person you could go to Like you had a you had a a personal Like, uh, um, uh, like hit boss or a personal Yeah, that would come out and they say what can I get you next and how can I help you with You know your next drink or do you want to go on a ride? You know down the street, I'll I'll get you a limo and we'll take care of everything for you You know, so so we've kind of gotten away from that We've kind of gotten into the point now where we're trying to automate so much We're trying to use the data to you know create less that you know less Do you think that's a great point white gloves serves in the old day was physical face-to-face Interaction engagement at the highest form Okay, are we have too much noise right now? Automating is a good challenge. It's personalization is you know collective intelligence All that great stuff great computer science stuff, but are we over notified? And is that a work area? Do you believe that even in design? You've used even in this business for years Are you've seen the cycles this are we over notified right now? There's too much notification going on Yeah, there's too much personalization. Absolutely. There's too much content There's there's there's so much content right now that where would you where do we turn for our answers? And who's who's not putting who's putting out content that for actual for for a real reason like to really educate the consumer To really put their efforts into Something that's going to really continue a buying purchase You know, it's going to help somebody what what you know is jay bair always talks about what if you help the customer They're going to want to come back and help you and so you know instead of writing and creating all this content For content sake, that's the problem. I mean there's too much content out there and we need to actually focus it's not valuable Marketing is a source of value. Yeah, what you're talking about And the rules are changing too transparency is we talked about this about the open source game right transparency now Which has always been the ethos of open source doing it in the open right is now completely Open because it's 100% measurable. So you can't hide anywhere You can't they know what you had for breakfast before you had for me Let me put it this way. I'll tell you like really quick short. I'll try to keep short story I had a you guys had had high school jobs and college jobs Rock and shoe show and and how how much fun were those? Lifeguard once that was pretty good. I worked at the country club. It was that a great job So I had all kinds of jobs They had like an unfortunate last very long because I thought maybe uh, you know, they weren't being entrepreneurial They just wanted me to make a sandwich in the sandwich shop for 30 seconds 30 second sandwich You don't want one of those sandwiches So I eventually like made my way through to becoming a pizza driver I won't say the brand but I was a pizza driver In college and I was constantly trying to figure out how to make more money Right and because I'm like a poor college student. So how do I make more money? Well delivering pizza in college only gets you a dollar or two if that sometimes no tips at all So, how do I how do I up the game? How do I deliver more value with this commodity? I mean pizza is a commodity. It's you have one pizza. I mean we could argue this to death for an hour, but So I'm delivering these pizzas. I'm not making very much money one day I'm shopping in a grocery store and I see these This this pallet of two liters and I bought the the pallet I bought the whole pallet because it was 50 cents for two So a quarter per two liter put it in the back of my 1954 Chevy Blazer Blue blue Chevy. I've missed that truck So I put in the back of that that truck drove it around and with every medium or larger I would deliver up a two liter And I'd hand it to them and they would go I didn't order that and say, yeah, I know that's that's from me I'm just going to give you this two later. I swear to god. They would go That's exactly what I needed right now and they'd reach into their pocket and they'd come out with five dollars or ten dollars And at the end of the night, I started making between two and three hundred dollars Or before I'm making like 20 to 30 bucks The reason that happened is because I was providing Unexpected value in a moment when they actually needed something like you just proved you just proved what I've been saying Entrepreneurs are born not You can go to school for entrepreneurship, but you are born. Did you have a paper or did you pirate software? Did you arbitrage your pizza? You are an entrepreneur That is entrepreneurial, but isn't that what we're all looking for? We're looking for edge. We're looking for Pleasant surprises. We're looking for value in a moment when you didn't even know you needed it as a customer And that's what you can do on social media. That's what social business is about It's providing that unexpected value. Well, let's get back to the content thing because this is a really great point Value is in the eye of the beholder is one of my phrases. It's contextual But if it's noisy we're over notified people are meeting each other online There's new value in this engagement. I just Treated to someone's love that loved your point and your point about socialized every touch point There's new currency out there engagement is also currency with people, right? I mean, I love the story Uh with iSocial funds brian and you guys are on twitter love that connection People meet each other. They build relationships online that never would have been there, right? So like what's happening is is that like you give it the soda and on this for the surprise people can get content and develop content Play in the open talk about that new dynamic this because this plays in this whole earned media thing that we've been riffing on is You don't have to buy Content you don't buy audience anymore. The audience is already out there. So to your point about the soda is really good Yeah, yes and no So social networks are making it now that it is a pay-to-play it's starting to get to the point nothing lasts for free Yes, I mean nothing's for free in this world So the eventually you pay for something whether it's the time to create that content Which is we are that's resources in time So how much and a lot of times we say it's free But how much how much are we hiring people to write the content to build the content? I mean this is this is not free, but at the end of the day we're putting it out there and we're offering Up for free we're giving it to other people at the risk of them not returning You know something in return to give us their purchase to give us their sale So we're running that risk But I also I talk about this in my book about the give give give give give give give and then you maybe get And if you don't keep giving and that's that's really what this is all about. That's what content is though, right? I mean it really is I mean through the centuries you can talk about You know examples of the people giving with no expectation of something returned, but somehow it gets returned Right. Yeah, it's if it's valuable. Well, that's the golden rule, right? That's right But let's take this to one step forward because transparency and time is money, right? So your attention all that stuff we talk about open source We always have a developer right the ethos of open sources Stand on the shoulders of giants before you and that ethos is give and take and the quid pro quo is You put source code in social media in my mind is taking the same kind of trajectory We're offering stuff for free, but there's still a quid pro quo going on exchanges of information IBM's extracting value out of the free nests through the community So do you see the community of an open source framework applying to social business on the human to human level? Is there some similarities there? In terms of the protocol respect code I I think I think I understand your question. I think What's going to end up happening is we're going to end up developing Micro niche communities and I think where we're out right now is trying to figure out this global community Like how do I get in touch with all of these people? Yeah, but eventually it becomes like your neighborhood We're going to need where we want to get to know our neighbors We want to get to and our neighbors aren't that aren't you know in a proximity They're around the world, but there are neighbors become a proximity of Of keywords a proximity of of interest So, you know, you've noticed that facebook has started to buy individual networks They've started by you know, think companies like instagram and and what they're buying is they're buying niche communities They're buying micro communities. Now. These are large communities. They're paying billions But they have affinities within them But they have communities within them and maybe one day facebook won't be as relevant as those communities are And that's where I think it's heading. I think we all need to actually You know invest in the micro communities and as IVM and I think back to your question Where I think you're heading with that is is yes, they there is a community and there needs to be developed And that's where the future community. I just gave word. I mean, I love the community mode I think it works. I've seen it work personally and I think it does work for social right But people use as a punch. No communities a bumper sticker just puts community on it and everything's great We're gonna go out and build an ecosystem with communities. Yeah. Yeah, where do I start, you know We're gonna question from the crowd here. So yeah for for you how much personalization is too much Benefit or limit the user question mark. It's certainly frustrating that hell out of me as a customer sort of creepy from corine torrez. Thanks for the question How much personalization is too much benefit or limit the user? It's frustrating Personalization is one of those things where when you sign up for something and you give over your information And you spell out exactly the things that you like you basically you opted in and you have given over your information If I said if I told you I like the color green I've opted in to you sending me green things And you should personalize me on that and I actually have opted into that Now if I didn't provide you information and you're giving me personalization on certain things that you shouldn't Be because I have never given that to you. You took it from my credit card company Or you bought it through something else and now all of a sudden you're personalizing to me I've not given you that information now. That's crossing a line that becomes Personalized that becomes creepy at a context though right because that's the whole point It's out of context completely said I like green over here now. You're using green It's retargeting you right some data from another context and you're getting green Shutting your face all day long on some banner at that's right But it comes back to your perception of value too because if I'm lost and I needed to help And google helps me I'm really thankful for that level of personalization But if I'm getting spammed for this is a product that I bought three weeks ago I'm done you know and right you know what I mean Well, Jeff Jonas we've interviewed in the queue before we've talked about mostly in the security context It's all about puzzle puzzle pieces. That's it's like it's weird. I love his talks Dude, he's a great one to talk Jeff Jonas is a great interview to look at but he's like all about the puzzle pieces He goes John Dave Terrorists don't write bomb on manifests, right? They don't say I'm Shipping a bomb that's a metadata model. So like that's a keyword, right? You know looking for bomb is the wrong approach for looking for bombs. Yeah, don't look for the keyword bomb look for You know, it's interesting because the personalization green is wrong. It's a great wrong keyword So now what do you have to really do the big data thing to get real personalization? You know and it can also be wrong Like for instance years ago when this was new when email marketing was a new thing I was running a campaign for a really high-end resort spa Place and and I I shipped the email out Our team shipped the email out I was tracking all the all the responses and what people were doing and my dad was on that list Which was ironic or I think I put him on that list just to see if I could like figure it out, right? Have him get respond. I want to see it. Yeah, I want to see like what somebody I know Guarantee at least one response rate from your dad Guarantee like right and and he did he clicked on it and he clicked over and then he It stopped he clicked into one page that he stopped went off and then an hour later He went back on again, and then he clicked all the way through and it was a mother's day campaign But he ended up buying a day spa package, right? So I just emailed him on the side I'm like hey dad I noticed it took you an hour to go back and actually purchased that and you bought it for her package for Valentine's Day it is for mom right and and he replied back and said what the heck is going on here How'd you know that like this is revolutionary stuff? Yeah for him it's amazing. It's like and it's creepy But that's what I'm talking about like that's creepy stuff So we have access to that kind of stuff what we do with that information Is up to us as marketers to really make sure that it's benefiting the customer not benefiting us Well, the laws are really fuzzy right now Is there like going to be remember pre email marketing and there was no law against that the guys who did the land grab Succeeded in the end that we're going to see a similar thing here with privacy Absolutely. Well, there was no hand spam laws back in the day. Remember Dave's land grab and then that had been enacted So many people built enormous databases and they're all right So so most people love email marketing even today you still see webinars out there to try and true method but again if you want to put the line in the sand saying old way new way if we are in the new way of Doing stuff as ibm's theme is You got to put email marketing in the old way and webinars and other forms of you know walled gardens and or Web-based old techniques not everyone can be as aggressive being a forward thinker. So what what is the transition? What is the new way to do email marketing? What is the new way to do webinars and we have an opinion on that? But like these are the things that are people are looking for if It's human to human if there's peer-to-peer if there's some big data mojo that can be tapped into to the benefit of the User there are got to be new ways. Yeah, so I I think email marketing is still very relevant And it's not going to go away. I think the way that we use email As we move forward in a corporate setting will change So there's two different things one is how do we reach out and and and touch someone based upon their preferences likes And what do we say? So if i'm going to send something out to a mass audience and i'm going to Think that i'm going to personalize it. That's never going to happen because I haven't taken the time to actually You know, uh, customize a message based on based upon the preferences and groups without being creepy But internally in the company we've got millennials growing up that don't really like email They like snapchat. They like instagram. They will private message you on facebook They will not use email until they go to college My son my son maybe even then My son doesn't set up voicemail or do email like that. It's pain in the ass The college will force them to do it to get their grades, but that's it Yeah, I have to snapchat my daughter to get her to come down for dinner I actually like will take a picture of dinner and say this is what we're having if I yell off her she that she ignores me But if I snapchat she'll come back down So, you know, we have to like we have to change our thinking in a corporate setting Moving forward that's going to happen in the next five to ten years and and think that's why ibm versus so smart Because it's changed the conversation from being an email marketing system to a community driven conversation It's socialized email, which is great That's that's going to be that's going to be a great game changer Brian, thanks so much for coming on the cube great to have you on your awesome Entrepreneur visit busy for a while VIP influencers understatement. Congratulations for all you success And social you're doing great and the book books hard to write a book. I don't know how you do it, but uh How many books have you rid? I drink I drink a lot of wine While you're writing Yeah in the brainstorming mode for sure I I have one book uh human human that came out a year ago And then I've got another book coming out um in the spring called shareology All right, Brian Kramer inside the cube. Uh, we'll be right back with our next guest after the short break. This is the cube I'm John Furrier with Dave Vellante. We'll be right back A lot of things from a trip around the world But you can't always bring back customer data Because many customers don't like it when their data moves around you're going to do business globally You need a cloud that can keep your data where it needs to be 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 technologies. That'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 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 is 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 You know they report on the the general things that have been around forever Reinventing the news with the independence. I think is 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. 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 So what the cube can do and 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 question You're hearing from the people here that they want to answer 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 I shall just 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 that you guys are everywhere covering it Well getting all the points down so that's that's my mapping in my mind of it And I think that's a great position to be in Hey, this is Brian Saravian director of digital media for the san francisco giants and you're watching the cube Hi, I'm dan gordon co-founder of gordon birch and you are watching the cube Dr. Randy fagan the chief administrative officer of the texas institute for robotic surgery at hca and you're watching act 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 Hi, i'm andrew praiser of 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 stacey slatter 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 with inner works and you're watching the cube Hi, my name is david zischkart director of partner marketing at cladera and you're watching the cube Hi, i'm jim you founder and co of bright edge and you're watching the cube. So what's going on today? Most of us admit to being overwhelmed by informational work That's why ibm created verse it uses powerful analytics to uncover hidden patterns in your email calendars and social feeds It continuously learns how you work and helps you prioritize the people and projects you need to focus on There's a new way to work and it's made with ibm Hi, i'm george matthew president ceo of altrix and you're watching the cube and dimitry is a mean I'm the cto and co founder of stackstorm and you're watching the cube The vice president of product strategy at qlogic you're watching the cube Hi, my name is ben jones senior product manager of tableau public tableau software and you're watching the cube Hi, this is frostbough from tableau and you're watching the cube location location Here's the location that matters the most here or here or here It's wherever this is to get customers to come here and stay here You're going to need an app that connects to all your systems so they can bank shop Do what they need to do and you've got to do it fast before the competition does It's tough out here. You better be on the right cloud Today there's a new way to work and it's made with ibm It's 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 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 for the cube our flagship program We go out to the events and extract the seeds from the noise I'm john frode silicon angle my coast davilante chief researcher wikibon We are live at the ghost social social media lounge We're interconnect go.com is the website you want to go to for the digital experience powered by crowd chat powered by the crowd chat platform VIP influencers all the amazing crowd activity all the people on twitter all the data is out there Certainly the analysts will be coming shortly and our next guest is in heat you sell the vp of strategy and business Development for ibm analytics. Welcome back. Great to see you. You look marvelous. As usual. Thank you. Thank you john and dave So you're doing a lot of meetings three shows into one So three times more customer meetings three times more activity How you feeling three times the fun We're gonna be rocking tonight. I can't wait. That's a great concert. I'm excited. Give us the update What's happening in the show for you? We've got a number of things. Let's start with some of the cloud announcements We have a number of focused around cloud data services and new capabilities that we want to bring to market We've also have new capabilities in terms of Twitter actually flowing through our big insights to do service In the cloud on bloom x We've got also a higher level Partnership announcement. I don't know if Folks have had the opportunity to read about this yesterday, but we Forged a strategic partnership with juniper and this is all around Transforming the way CSPs can actually perform and operate and begin to Improve the level of personalized services CSPs meaning communication service providers in the industry By embedding analytics actually directly into the juniper Service gateway network, right? That's that's exciting. That's so break down the analytics. So ibm has you have a software group now It's kind of sprinkled software is eating ibm right now in all different groups You have different divisions now. So the software division is gone and you have you're in the analytics division Is a watson division. Yeah Can you explain like what your focus is in your group and and the the trend of analytics is embedded everywhere You see systems e talking about in processor analytics analytics in different engines Is that your group or has it all so before you get to the highest level jinny flatten the organization Yeah, absolutely. It's about speed. Yeah, that's a key element of it And the other is to actually orient the way the markets oriented What clients actually care about is being able to get to whatever business outcome that they want And in order to do that, you're going to need a combination of software technology capabilities. You're going to need Services and consulting and you're going to need Real deep domain and or industry understanding of applying that technology and delivery In the context of whatever solution you're solving for whether it's you know Energy and remediation of disasters or if it's a predictive maintenance and quality within Aerospace engineering or whether it's fraud detection and AML within risk and financial crime or it's the combination Almost whether you talk about cloud you talk about commerce you talk about analytics Clients are going to want to be able to apply those kind of layers of the technology the data the The analytics as well as as well as the domain expertise in context Okay, so so tie that back to john's question the organization specifically the analytics group. Yeah, so What's in there? Sure. So we have Ba Pichino as our senior vice president and leader for IBM analytics and within IBM analytics we have a team that's focused on Horizontal platform capabilities what I mean by analytics platform and horizontal is they think about the entire information the analytics stack of Technology such as the relational database such as warehousing such as bi Business intelligence and reporting. So think about our capabilities around cognos or sps s They thought focus on also the team focuses on hadou right emerging technologies in terms of new types of analytics and new analytic applications and programming models including innovations that we want to do and accelerate around spark We also have folks on that team focused around stream computing as Uh capabilities around real-time stream processing But the the notion of this platform is really about all the horizontal capabilities that you can imagine There's also another layer above it, which we call cloud data services Which is what are the set of data and analytic services that you want to be able to expose and compose in the cloud And this is to accelerate new types of application development As well as much more of a self-service environment, right? That's right for all around data and analytics So it may be things like cloudant is part of that sort of capabilities the big insights hadoop In blue mix data works that that's all exposing that next layer of data services in the cloud And that lives within bob's group That's also in bob's group Then there's a layer called analytic solutions and the analytic solutions are things like Predictive maintenance and quality or PCI around customer insight for certain vertical Applications and industry solutions the now factory, which is a set of capabilities around telco analytics for customer service providers network operators So the solutions team really thinks about a vertical orientation of The data and analytics stack To apply to different roles and professions and industries And that's how bob's kind of And you've got services within that That absolutely an industry specific services as well or that's right anything that's data related both both It's it's um the professional experts that we have on the team are a combination of the consulting experts within gbs's Consulting practice that have moved into the iVM analytics unit that are going to be specialized by vertical industry So we'll have a team that are experts around financial services and then in banking. Is it poor banking? Is it retail banking? commercial insurance personal casualty property Energy utilities management travel transportation So you can imagine kind of the way that the deep domain experts are are aligned and you said databases in there as well Yeah, database is part of our platform set of capability. So if you think that's part of the technology level So db2 lives in In iVM analytics. Yeah, and iVM analytics SPSS lives in it. It's all things having to do with data and analytics essentially So you get the technology you get the technology responsibility and it's growing too and it's growing last quarter grew I think six percent was seven percent. Yeah, seven is a huge So how does that how does that so you got technology? You got the enabling with the cloud fabric kind of interface and then you get the vertical and the solutions groups So solutions that's how to relate to the watson team. What do they do? That's a great question So part of what we want to also enable within watson is how you begin to compose different aspects of the technologies in such a Way that you develop watson cognitive applications within the watson unit We're really engaged at deeper levels of transforming and providing kind of next generation of Cognitive applied to the domains of insurance domains of medicine domains of wealth management recipes of like Technology that are applied almost applied to analytics. Well, yeah, and there's kind of couple phases of it One is you have to have enough data and information both structured and unstructured right that you're curating meaning there's got to be evidence From which you're actually asking questions and a key element of watson is the ability to ask it very rich questions And and to interact in a very human way Via natural language, but also the inferencing capabilities and and and the other aspects within the engine itself And so I would look at clients really trying to get their data in order Their analytics who their audiences are their domain experts And and we're really helping clients regardless of where they are in their journey And I look at it as an entire journey for everybody Okay, and now you're doing doing partnerships doing deals the juniper announcement Can we talk about that a little bit? Yeah, you know, we're talking off air a bit. I don't think people really understand it So take us through what it exactly it is and why it's so important. Sure I'm excited to share it Actually, because my new role is to is to run strategy and business development for the analytics unit as a whole reporting to bob and The first partnership we've announced this year is with juniper and Just just very candidly, you know, if you step back and you think about the world They're just natural points of what I consider Centers of where a lot of data either resides or is Through putting right and the network is one of them and what's amazing about that is that Juniper is uniquely positioned to extract as much data At the network level than any other Of its contemporary kind of companies now what IBM has to bring to bear is the ability to augment that data And understanding knowing What's actually happening in that data flow What applications are running through it? So we're embedding some of our unique capabilities from the now factory actually Inherently in the network router for juniper to be able to augment that data with key metrics that can help things like bottlenecks of latency performance optimization as well as things like a customer service because then as you Think through understanding that data and processing it You can then visualize that information in a way that if i'm the network operator I can begin to change In real time and see you know different types of application usage and different types of customer Service usage, I mean, I would just give you a simple personal example when i'm at home and my kids are streaming something Right either on netflix or youtube or you know name name the video they prefer and you know My husband dave's on on his business application. I may be on my system all of a sudden you can you can feel Right the latency on the system Well as part of it is because the network's not smart enough to know What's the combination that's being used by the various subscribers in the home? This this is an opportunity for us to actually unpack That knowledge is such a unique way to improve the quality of experience Well quality of service to networks are the bottleneck and with peering you see google has their own peering network for their cloud You got to get down and push into the network. So talk about the deals at a joint business Go market technology development sharing It's a strategic deal to and what we plan to do is um innovate around the engineering So joint engineering is so there is a joint engineering involved. There's also joint go to market involved because as we go into both the Communication service provider marketplace as well as to even large enterprises There are a lot of large enterprises that you know procure their own networks and manage them themselves, especially in financial institutions as a good example um, of course they get the The the network service potentially from one of the carriers, but they actually manage the internal um policies Let's say they want that level of visibility, which they haven't had before and this is a unique opportunity for us to be able to bring um ibm's breadth and depth of analytics to What sysco, uh, excuse me what juniper has really in this particular scenario of Exposing the data in such a unique way that we can help them scale what they're doing. Well, such you mentioned it is an exclusive deal Yeah, I was anticipating Your question was going and I could see your face. So that's why I started to mention it So why juniper? I mean, oh well one of the key things One of the key things um in terms of the partnership is um that it's not exclusive However, what we want to do is be very thoughtful and strategic because it's truly a first of a kind Neither of us have innovated this particular way in the industry. Um in terms of any, uh, let's say Leading analytics company or a leading networking company. The second piece is is all of the data that Juniper is able to expose in their network is is pretty amazing what we're doing is Applying kpis and metrics and and knowledge and algorithms and mathematics in a very unique way So that they can now automate things like and remediate Through predictive understanding of bottlenecks and throughput latency performance and and juniper's focus on csp's is a sort of a natural Place to start from easier to focus and smaller company Absolutely, and this and this is really a partnership where you're bringing kind of two very Innovative companies that have had actually had a very long-standing partnership for a while In different ways to reinvent what's possible moving forward in this particular space and by the way This is one of a couple elements of IBM strategy I mean we announced the partnership with twitter in the october timeframe because This was about extracting the insights from the social conversations And the pulse of what every individual citizen Is thinking and doing in a very meaningful way to impact business decision-making when you think about here in the csp scenario Here we wanted to get close to understanding the data that's flowing through the network So you're going to see from IBM A number of kind of strategic sort of developments and relationships that accelerate our ability to allow Clients to extract the insight from the data How far along are you with that with the twitter partnership? Can you expand on where you guys are with that? Is it prototype? Is it is there actually solutions in the marketplace? Is it just kind of tinkering around and there's you know, we love the twitter data You know our our love for twitter data. So we're curious You are avid users I can vouch. Um, so We work for twitter, but we don't get paid twitter if you're watching It's okay. We'll pump you up. That's funny. Um, so On their tail, you know snapchats growth is phenomenal, so anyway back to twitter. So where are you with the twitter? Because it's a good buzz around the show here on this one point the partnership is doing great and what we've really done in the last uh, since the october announced end of october is when we announced it is um, actually developed a whole series of internal training for our global consulting organization because we've declared to the market that we're going to train, you know thousands of uh, uh Consultants around the use of twitter data and certifying them in very unique ways On delivering twitter within a business context. So that training is actually started in the middle of december That's for the insight piece too right and that's really for the insight piece There's another level which is flowing twitter data naturally through ibium analytics software capabilities like Watson analytics like big insights for hadoop. So those set of capabilities. We've already enabled the big insights for hadoop on the cloud The Watson analytics is uh forthcoming very quickly. So you'll be able to see that And and we've actually enabled uh, uh twitter also within our bluemix environment for application development So there's a number of things that we want to accelerate around what I consider The ability to play innovate build kind of new services new applications new insights using twitter Then there's a whole set of solutions and our our intent is to actually announce A set of integrated solutions with twitter starting in second quarter So you're going to have to wait to hear a little bit more on this. So they're engaged with you guys This is not like doing a hey you guys are using our fire hose. Oh, no, no, we have We have engineering relationships. We actually have joint Consulting and expertise relationships. We actually have regular Committees in terms of the technology and business and client engagement We have a number of clients actually that have also done POC engagements and and really want actually bigger Solutions, um, if anything they want faster, so I gotta ask you so two years ago We're at the tableau conference interviewing Nate silvery. Oh, yeah, but then so we you know us on twitter We're like crazy about it So we were poking at him asking him about twitter and its predictive capabilities and he made a statement again Two years ago. The data is not there the data doesn't exist. And so we're like Very yes, it does. He's wrong. He's a hardcore statistician. Maybe he's right in that kind of structure He's not even a data scientist. He's just more of a user. So it's it's It's two years on where you got this you got bringing your resources to there. There's the corpus of data is enormous Is the data there is it starting to be be there? Not to pin you against Nate, but I'll give you the it's two years on so things that could have changed But I mean, what do you think is it just different type of data? I mean, I know it's not structured surveys from you know, political polls. Yes. Yes predictions on you know, Whatever who's going to win the election? You know the value of the data is always in context And having that as a social element in terms of how that conversation is happening at a certain time Certain frame is really important as an element It might not always be the element, but it's actually one of a combination It's been pretty consistent for us and I've seen it. I believe we're really entering what we call kind of an Inside economy and in an inside economy, you're going to have to marry data sets from a variety of different sources including your own internal enterprise organization data But it may be things like combining social data with other types of industry data even government open data to marry to extract a higher level of Understanding whether it's around a customer whether it's around An organization whether it's around a set of products I would say a different way is that the size and the conversations that actually happen on twitter are As close to sensing what the Holts of the planet is and that's kind of what we talk about and there are very few places in the world that Represent the corpus of human thought and this is one of them. This is almost one of the most modern day and you get the most extremes of the mundane Right, absolutely mundane to Absolutely insightful in that pool and it's how do you find that one needle in the haystack? And we have the analytic capabilities to do that and to do that Tying back to key business process and workflow. It's really genius. I got to say and you guys this is such a great move for you guys We love it 100% I think it's the future. You nailed it double down keep rolling. I got to ask you internet of things Is big data the twitter example means internet of things people are things I mean thing one thing too is a cartoon a book So I got things on the edge of the network. How about the edge of the network probes on sensors or could be refrigerators Whatever it is oil refineries every verticals got things Machines and people so the people is the twitter thing That's the internet of things application get that Machines and probes and that market. What is that look for you guys as blue mixes hot? You seem blue mixed big data and any of things are the top conversations at this show right now Yeah, and you probably saw the main tent stage yesterday afternoon and The silver hook power boats and they were on the cube awesome one of our favorite interviews Their business outcome is pretty specific win the race Win the race and live through it a lot and a lot of sensors a really good Example actually is work that we did recently with pratt and whitney You know developing and innovating around they they are the market leader around Airline engines right and in that manufacturing and engineering space one of the key elements is how they've been Innovated their engines for fuel efficiency and economy one of the things that they thought they were going to be able to save because of The optimization and the engineering was on fuel, but however, they also had a lot of unexpected Down time around the product in terms of some of the quality and they they didn't understand why one of the unique challenges they gave us was You know, could we help them determine and predict what was likely to happen So they had actually captured about two years worth of data and they gave us 18 months of it and asked us to predict what was going to happen in the remaining six months And we did our team actually applied some of our predictive maintenance equality and asset optimization capabilities all built off of a combination of our IBM analytics portfolio like sbss and other elements We did a pattern detection understanding and we actually predicted with 90 Close to 98 accuracy on what was going to happen in the next six months Which was the truth. I mean it was that close to what they actually saw in the data Now did that lead to some kind of business capability? It did it actually Transformed the way they thought about servicing and the follow-on new innovations that they could actually offer to their downstream ecosystem partners I mean the opportunity around the internet of things is on Just unparalleled because what people care about is Not only just the connectedness of everything as well as the security around everything But it's how do you extract the inside of things right the inside of the connected things? It's not just the internet of things themselves Can we talk about we you and I were in it of the dupe world strata data sv last week But all these guys were in the big talk was well one of the big themes was odp Yeah, big announcement Mike Olson put on a blog post saying oh, it's all hui Hortonworks and others you guys responded say no, it's not hui. It's it's real Why does the world need an open data platform? Oh, you know, it's it's part of What I consider being able to help accelerate true enterprise adoption at large scale And the reason for that is you have to have certain degrees of standardization in order for For clients to be able to extract value out of that data We use that for new application development and having a partnership around the community ensures that consistency to protect actually the investments by Most importantly many of the clients as well as the application programmers that are that are working in the in the industry That's a key element of it So, I mean on the one hand mike was sort of criticizing and we know mike really well He's a friend and he's a great guy and a straight shooter He was criticizing sort of the pay-to-play aspect of it. That's not so much of a concern You know, it's not it's really important to work. It's got it. Yeah, that's right It's competitive with hortonworks, but but the but the but the point he does make which I'm um I'm sort of torn on this. I'm really trying to understand this Why do we need standards when we have standards with apache? We've already got open standards. Why do we need more standard? You do have um open standards with apache It's it's also about actually I would say one of the most important things to clients is they want some headlights Into certain directions So if the community knows architecturally even if if the base has to go in a certain direction and can give a little bit of headlight Enterprises can actually invest properly in that And understand how they have to where they want to emphasize in terms of certain branches or forks in terms of the project because You know hadoop unlike some of the other open source projects within apache. It has multiple Multiple branches, right? There's a number of initiatives under that and it's very hard for a single Enterprise to be able to be on track and on top of every layer Of of all of the initiatives in a meaningful way Unless you're a really large institution and you have you know thousands of application Programmers and developers and data architects then you're you're in a business where that's the core of what you do and that's why you've got that So there's a purist so you purists that really can't afford that So you're saying there's purists and speed people can handle the purist nature And speed and slower which is like built around investment protection Where are you slow roll the open core? Well, I would actually say skill skill is probably one of them quite honestly I think the who do market should be I have a a lot bigger than what it is right now Well, I was going to say so you can't skill something if there's not a lot of standards in terms of how people can actually drive the next level of innovation Whether it's doing in-system analytics and applying are because it's much more pervasive in a broad scenario You you can imagine what's going to happen with yarn and spark you can imagine what's going to happen in the sequel space You can imagine what's going to happen in terms of text analytics and machine learning So it's so do you think explode? It's actually going to be faster So do you think then that there has not developed fast enough? I mean, I do should be much bigger You're saying and it's not because there's you know, it's a lot to track Well, you must laugh at when you do the analyst thing and all we talk about is a jupe a jupe a jupe And horton morse goes public. It's got about 12 million. 30 million. It's 12 million. It's 12 million last quarter If you look at IBM's business, it's it's enormous comparatively Why is it that we talk about a jupe? So horton morse innovation started at all right? It started the whole meme I guess, but you know, you know what some but it also The thing that I really And most excited about it is the fact that it allows new types of discovery based applications right in traditional warehouse analytics systems It was questions and you get an answer right here's the question I wanted to ask what's my sales for the month who are my most profitable customers Using technologies like Hadoop mixed with search and mixed with text analytics You actually allow people and organizations to ask much more Reflective and discovery questions. You're not just asking a question for an answer You're actually kind of playing with it and maybe trying to find out relationships. You didn't expect That's kind of the new class of applications. That's possible and that's what's so exciting So talk about the the next phase of growth for your group Obviously, you're going to set the table and bob are are going to attack the analytics part of the division, which is the core stuff You're also the buyer out there for startups You guys are you know, are the customers of the vcs We interviewed ping lee frank artali on our big data panel and I asked them IBM and others are the buyers for you guys as the vcs. You're peddling up the startups The ones that can't make it that you know, so but they have some technology Accurate higher potentials portfolio product portfolio white spaces. What what's your view on that? Can you share? I mean honestly, you can't tell the plan, but you're doing strategy doing biz dev You're doing deals. What's the mna outlook look like for you guys? Um, I think it looks positive I think the industry looks positive in general if you look at the activities and just kind of the signals of what happened Last year in terms of just overall market vc investment in the space Has grown but it for for us is positive because what's nice about the way we're aligned to be Enabling the the solutions in the markets. We want to go after like IBM analytics IBM commerce IBM security is that we can actually move faster And thoughtful about well thoughtful about what are really the components that actually drive accelerated new growth New skills growth new application Technology growth and prioritization. It makes it much. Um, it's it goes back to the speed at which you have a list So do you have a list? I love to shop No, but mna is big right now You're gonna see while our thesis was consolidation certainly in big data, you know, there was databases down to three I wouldn't say the word consolidation though because that's not actually the lens through which I think about it I actually think about it is what are the classes of applications and technologies That we actually think are going to be innovating and driving growth in various industries And so i'm actually not thinking about it from a consolidation standpoint Well, there's going to be acquisitions And there's going to be a few companies maybe in some category, but you're right. There's another wave coming I think there is and it's hard to tell maybe it's iot Well apps this is what we this is the speculation We've been we've been covering is that you get the big boys that have overfunded the vcs the startups You guys have a partnership strategy. We talked with dug and we talked with The folks in the blue mix group the collaboration space now for like if you're under 50 million And you're not generating sales if you're startup you have no sales But a product the question is how fast I get sales the vcs aren't funding b and c rounds Because there's no sales. So like they're a perfect like stuck in the middle of Of things perfect opportunity. They're put them in the marketplace or it's got it You know, I have to go back to it's got a line to where our strategic priorities are and where we think the innovation is Going to happen next and quite honestly I'd like to for us to be able to innovate as much within IBM Because we spend a tremendous amount Around innovations internal innovations as well that we want to expose Our research assets are are pretty amazing So we're very thoughtful about what are kind of the adjacent spaces that are natural kind of Accelerance to our business. Okay, we're getting the hook here. Thanks for coming on the cubes final word for you. What's the vibe of the show? What do you think about your new role and doing deals? And just in general the pulse of Of the analytics group. Well, first of all interconnect is great. I mean this is probably just massive in terms of the attendance and Facilities and all of the topics mobile cloud security dev ops. I mean you you you've got the gamut analytics So really excited Obviously IBM analytics Huge huge opportunity for us to transform every profession every role Every industry and and for me personally, I'm really honored and and Excited to be part of this team. So well, we're honored to have you in the cube and it's so great to chat with you You're always awesome to to share information. You're very candid And open thanks for taking the time out of your busy schedule to to share with us. Appreciate it This is the cube. We'll be right back with our next guest after this short break. I'm john furrier with davilante We are here live at interconnect go.com interconnect conference here in las vegas. We'll be right back Often sound bites and and and blog posts But with the cube we go in-depth conversations and that's really what's great about it and my co's davilante and I We really want to make it fun exciting but more importantly Extract the data from the guests and extract that metadata and share it with the world So the future of journalism is in jeopardy, frankly, especially industry news industry journalism because so much of it Is either focused on one of two things that's focused on client relationships relationships with sponsors Inordinately so or it's focused completely on the consumer and the audience and with no regard to what's actually happening No analysis on what's actually happening in the business This is uh, you know nice because a lot of it whether it's blogging tweeting video It's all about you know, media see if kind of getting what what happens now And doing this live and obviously capturing it pretty quickly like he kind of keeps that live element there Um, and you know when people are at the show or soon after the show, I think that's when they're most Attemptive to what happened. So I think it's a nice fit for it because um, you know, you write about it or do something You know a week or two after the show. It's uh, not as interesting. Not as timely. This is the happiness of mine. So Where we step in the cube strikes an even-handed balance between these two things I think and it's really going to be the model going forward for other organizations I think you're already starting to see that in the industry You can bring back a lot of things from a trip around the world But you can't always bring back customer data Because many customers don't like it when their data moves around If you're going to do business globally, you need a cloud that can keep your data where it needs to be 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. It was good again. 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 because it was an experience I think what you're going to 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 going to 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 it and I think that's what people want They want those questions and it's hard for us sometimes to ask them unbiased because it's your bias That's my 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 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 to hopefully share with the people watching You know some of why we're doing what we're doing It's 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 location location Here's the location that matters the most here or here or here It's wherever this is to get customers to come here and stay here You're going to need an app that connects to all your systems So they can bank shop do what they need to do and you got to do it fast before the competition does It's tough out here. You better be on the right cloud Today, there's a new way to work and it's made with ibm Hey, this is brian syraven director of digital media for the san francisco giants and you're watching the cube Hi, i'm dan gordon co-founder of gordon birch and you are watching the cube pennlin senior analyst at technology business research Dr. randy fagan the chief administrative officer of the texas institute for robotic surgery at hca and you're watching 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 at i-bm interconnect This is the cube silicon angles flagship program. We go out to the event and expect this to the noise I'm john furrier michael's javillante our next guest is a dawn boolia vp of cloud services with ibm Welcome to the cube. Thank you. So cloud is hot cloud services are everywhere So cloud seems to be sprinkled in all the different features than ibm It's the hottest topic here at interconnect of the three shows the top trending conferences We've been tracking over the past, you know three months and now on the site on the show for the past three days has been cloud Interactive things and big data Yep, so where does cloud services fit in there explain what your role is in the organization And what you're focused on how does it connect to the new way the new ibm the new way ibm is doing doing business Right. So as you said cloud is everywhere. So that's certainly the case for pretty much all the units within ibm I'm from the systems in middleware unit And what we talk about with cloud services is really, you know moving our Traditional middleware, you know closer to the cloud deploying in different types of cloud deploying as a service And also integration between clouds. So the integration for clouds really Is that kind of bridge between the system of record Where most of our middleware runs today and systems of engagement where you see things like blue mix and you know public cloud Via software, so that glue if you will between those two is really where the cloud services Is systems of engagement a product or a concept? It's a concept. It's an approach A mindset Well, it is and and there's a little bit of a of a speed element to it as well So when we talk about systems of record typically think of your bank data your airline reservation These are things you don't want to get screwed up. And so you have to have the database middle where the full Hardened exactly solution like a data lake. Correct. So you go into the systems of engagement and now speed becomes the essence, right? So more dynamic. Yes. How iterative And and speed is typically Combined with context and analytics and insight. So that combination just sort of runs at a very fast pace So like a don't like a data ocean It could be a ocean. Yes. So data lake As you get that in there, that's our debate all week. So like that term data ocean. Um, I don't just like that term No, what do you think that our data lake more often than I hear a data ocean? Yes, we hear it too But we sort of question data lake Yeah, data ocean is maybe a well, we don't think that music exclusive But data lake to me reminds me of batch, you know, there's no speed boats on the lakes. There's no waves and no whales So, yeah, ocean certainly gives a bigger connotation to it. I'll agree with that Really management becomes the issue though, because if you don't then it becomes the data swamp, right? And nobody wants that That's really the the real key to but real time I mean the concepts of in streaming and the stuff that's going on in cloud and software now dynamic Agile you see all kinds of stuff going on in the software to a life cycle and then how softwares be more adaptive more intelligent That's the cloud promise, right? That's like the new middleware. The new middleware is Changing pass and cloud things of that nature. So that's a complex area. That's kind of in flux with innovation right now Can you share your perspective on this dynamic area because there is new waves of data coming in that's Uncontrollable retail has black friday. There's surges. There's these predictive analytics and to get forecast and on what's going on in that Changing sea of data if you will. Yeah, so services and data both I mean, I think what we find in the middleware team in particular is you have to reimagine some of these things The core elements are still there. So people still need run times. They still need databases But when they put them into a cloud context and a cloud native type context as well The management system is different. You pointed out the volatility of you know, kind of the black friday could occur at any time That tends to be the profile of most mobile apps So, you know, you really rethink how some of these things end up, you know getting delivered But at the end of the day people still have run times. They had run times in, you know, the system of record They have run times in the systems of engagement The difference I think is again the speed and velocity the tools that you use So we talk about dev ops in both but the the speed and cycle of dev ops in you know A traditional environment versus a cloud tends to be a you know an order of magnitude of difference, right? So that's kind of the marrying of those things So you talked about don middleware being a sort of a Lynch pin of portability across different types of systems systems of record systems engagement But is it also not as well the linchpin for hybrid cloud on premise public Yeah, so the port portability is key at the end of the day That's that's really what people want is choice and flexibility So if I decide to deploy a workload here today, I may decide to go to another cloud tomorrow I may decide to pull it back for different reasons as well. So that element of portability is there There's also what I said before about the different speeds with which Certain clouds work, right? So again, if I'm talking about a traditional That's going to be you know, have a set of processes against it In the in the new world with mobile, you know, that's going to iterate much faster And we use integration as kind of the buffer between those two So if I want to connect back to my traditional database, maybe my mainframe data That's where most of the interesting stuff still lives So my mobile app is really with a presence that people see on the engaging side But anything interesting has to flow back. So how do you manage those, you know Areas between the two clouds so to speak so that element of integration in addition to portability. So interesting Let's define interesting interesting is value high value transactions Yep, at the end of the day, it's still about transactions, right? This was a record that sort of document all this stuff Yeah, we can abstract as much as we want. Uh, you know, Tom, Rosie, Amelia All this says, you know, the infrastructure still matters. I mean, you still have to run it somewhere, right? We may not talk about it a lot But, you know, it matters when it comes down to, you know, people deploying real workloads It's the same with systems of record. That's where the interesting data is You still at the end of the day want to, you know, close business make new, you know Business models and new revenue. Uh, and those are going to be transactions So can we unpack the middleware audience middleware portfolio a little bit and sort of take us through the So, so, yeah So we have a pretty wide ranging set of capabilities there, right? So in our, um, in our web sphere portfolio, for example We have, you know, run times, messaging, integration in particular tend to be the kind of the major themes And all those things have a presence in both a system of engagement and system of record So, you know, it's not just one or the other, but how do you blend the two? When you look at, um, you know, parts of our portfolio that deal with, um, you know Things like performance monitoring and really the management of of, you know, it systems Those also have presence in both, you know, traditional as well as, um, you know More cloud native type use cases because at the end of the day, if you're managing something You want to have insight end to end on, you know, that transaction that flow Even if it starts out in the cloud with mobile and ends up back at, you know, the mainframe You still want to end up with, you know, good visibility across all of it So when we talked about the the infrastructure as a service layer, the pass layer or the sass layer You obviously contributing to the past piece What's different about the cloud piece and the systems of engagement? I mean, sometimes I asked myself, okay, did companies like IBM just take what they had Cloud wash it and say, oh, this is our part of our cloud portfolio Right You're the I'm inferring the answers. No, you had to make some changes That is correct To the deep tech, so talk about what those are, give us some sort of detail So, yeah, so as you said, you know, systems of engagement, which, you know, primarily driven by Things like mobile are kind of the the what cloud becomes sort of the how, right? So how do you get that done? What kind of systems and infrastructure and platform do you need underneath that? When you talk about our middleware the kind of the reimagining of it for some of these new Use cases in systems of engagement typically what we end up doing is pretty deep changes to How it's managed how it's deployed how it behaves, you know, in an operational environment So again traditional examples of middleware, you typically had tight control over things like Scaling and availability and those characteristics you move to the cloud You start to see people do a lot more with automation with policy And so, you know that management model is now much more automatic So if a spike comes in because of a Black Friday example, how do I then scale up all those resources? I don't want you to send me an email and have it happen like two days later I want it done now and I want you also to then take it back down again When everything comes back down and that's not the way the traditional middleware has been developed So there's a deep engineering problem there that gets solved as we move forward So you can still use the core of the capability and so our customers get kind of the Flexibility of understanding what the middleware was in both environments But the management model around it tends to move towards that accelerated Automatic policy based policy driven kind of model So you built in a lot of automation, elasticity, ground scaling and that's all programmatic Now as opposed to you send me an alert Right, and there's an operator there doing something with it So the set of API, the entries and exits sort of evolved, did you talk about that? Yeah, so pretty much anything in the middleware space these days is instrumented You know with APIs with usually analytics as well That's another characteristic we see as you move to the cloud, right? We can retrofit that in the systems of record But in the systems of engagement that's an expectation that you're going to have Heavy API, heavy analytics support so that you can in fact drive everything To that end goal of I can be hands off It can just operate the way it needs to operate when I get these spikes It's just a different model and people are starting to get their head around that And we have to make sure the middleware actually can make that model work So you're talking with point source, one of the customers, XIVMers So it's going to get the perspective, but they're doing very well They're a big shot, they do a lot of mobile first stuff Talk about the issues around cloud services that you're involved in You're in the middle between old traditional and stable software Right, we don't like old so much, stable Especially with my gray hair, we don't like old But mobile really comes down to Proven software, let's go with proven software Experience, reliable, proven software Now the unreliable cutting edge cloud I'm killing myself, I'm digging a big hole I'm going to stop, my hole's getting bigger APIs, notification, security issues, I mean they're everywhere So this is the hardened issue So the old stuff is hardened and reliable So you've got to move to a new world, speed, agile What's the bridge, what's the connection there? So when we start talking about mobile apps in particular We start talking about composition as opposed to just raw creation So you don't just take out a blank piece of paper and start building something these days And in fact you don't want to Because each of those components you have to build yourself Then have to have all of these availability characteristics, scalability characteristics And that's hard stuff So if you can, you want to sort of pick it off of a palette of Hey, here's a data service, here's a notification service And behind that are built-in all the qualities of service So in the new world, that's what those things end up doing In the existing system of the record, we use integration as kind of that buffer So you don't want to expose your end point from the system of the record It's a thoughtful process, you've got to think that through You've got to think that through and you want flow control Right, so most of these systems of record were not built for an environment Where it was heavily volatile, mobile-based kind of applications So you've got to protect them from coming and getting too much load on them And that's another kind of function of the integration in the API piece So how do I flow and do the flows and limit When necessary, you know, so that I don't flood the back end You know, you bring up a good point, we had Inhi Chusan on earlier today And you know, talking about the Hadoop market, she says It should be growing much faster And just to tie this off with your point is that You know, the open data platform has been con- There's a lot of controversy around it, you know The peers are saying, why do we need this? What's the benefit to customers? We don't need it Some EMC, you guys are saying, how has it hurt customers? And the point is, what you're just talking about the integration Is not something that a pure play company like Cloudera thinks about Because they only have one product Right And their customers aren't as comprehensive as, say, IBM Yeah, it's easy if you can just sort of, you know, clean the slate And not worry about anything else that's ever gone in the past, right? And they're monolithic in their solution Open source and their approach Okay, I buy the open source, but like, you have to go to market And deal with integration, security, legacy And we do a lot with open source So, you know, open source isn't bad And we use it extensively, you know It's awesome Most of what we do, especially in the systems of engagement space Is based, you know, in some form on open source But to your point IBM's betting on open source Correct Like everybody else Correct And, but nothing gets done that's interesting in the mobile space And even the analytics space Without incorporating some of that system of record data and services So it's really the connection That's table stakes The integration with system of record legacy That's called legacy kind of blanketed over That's legit stuff That's important You call it running your business on data Think about your banking app, your airline reservation app It's not very interesting if all it's doing Is showing you, you know, nothing from, you know The back end system of record Because you brought up data swamp earlier In our little data ocean kind of riffing around It's kind of having some fun with that Data lake versus data ocean Which is a fun conversation Because it's provocative, brings up some new things You mentioned data swamp What is a data swamp in your mind? And how do people, how does that happen? I mean, it's just like, I plan for a lake Got a swamp or ocean turn I'm like, what does that mean? And what does it come from? And what's some of the triggers for that? Yeah, so I mean, I think it comes down to Management and flexibility, right? So at the end of the day, what everybody's looking for Out of the data lake kind of concept is How do I get everything into one place So that there isn't, you know 15 copies of things going when I don't need to That I can't find things because they're not connected together So that's a good side The bad side, of course, is When the management system behind that breaks down Then, you know, you can't find stuff Or stuff gets lost Or stuff isn't optimized for where it needs to be So this notion of tiering as well You know, as you put everything into one big pool You don't want it all on the most expensive, you know Storage media, if you can avoid it You'd like to be able to, you know Sort of scale stuff back Maybe, you know, all the way back to tape To be able to, you know, archive and store And get, you know, the right price performance For what you need And so if you're doing the data lake concept In my opinion, correctly Then, you know, you really need that, you know Robust management systems Kind of move data around where it needs to be Yeah, and that's not an easy task If the bigger you are Yes Unlike the mainframe, but as we learned yesterday The more workloads it takes The better it gets So data is kind of like the opposite, right? The more data you come in and you're not paying attention Correct Then you're going to get swamped with, you know So it becomes a policy-based thing as well We were talking about, you know, using automation and policies A lot of these, you know, tiering technology And the management practices have to be the same way, right? I have to have policies for how I do that And how I interact with that data as it grows And it turns out we have some really good deep technologies there In terms of, you know, our storage portfolio That allows us to do that Okay, so that's not sort of middleware It's not middleware, but it is systems So it is systems, right? It is systems, yeah And there's a set of cloud capabilities there too To tie it back to my own role, right? I mean, cloud storage is a big deal And being able to, in fact, you know Integrate between existing storage, you know Things you have in an on-prem or even a system of record With some of these new object and file-based storage, you know Media they might have in the cloud It's a big problem, right? How should customers think about this? I talked earlier about the, I'm a simple guy So the infrastructure service, platformers of service Software as a service How should customers think about consuming that? Should they think about consuming a solution? A set of services? Should I think about, you know, feature sets Within each of those layers? How is IBM going to market? So I think it comes down to, from a personal perspective The amount of control you think you need to exert You know, on the system, right? So if you want the hands-off approach Then the software as a service model is kind of the Here's a subscription, you know, on board very quickly And, you know, we manage everything for you Or your provider does As you go down to the next level with platform You get more control, right? Now I can talk about what kind of middleware I want to deploy Maybe, you know, use policies and automation to scale it out But I still have control I may be even building applications in that particular model myself The infrastructure layer, of course now You take on all of the software, you know, parts of that And so if you have, you know, a very specific need To control everything about that software stack Then, you know, the infrastructure approach might be the right one for you So it really depends on the workload You know, especially when you get into specific workloads With performance characteristics Some of what we can do with software Especially with bare metal gives us options there In terms of things that you wouldn't normally consider As viable cloud workloads suddenly become possible Because you don't have to deal with, you know The overhead and penalty of things like virtualization So you can do some very deep optimizations But, you know, you can also have, you know The hands-off approach, right? So it's really a question of which level you'd like to go So I'm curious as done as to what the customer conversations are like And I'm sure they're in all three of those categories But let's take a big bank, you know This sweet spot of IBM's, you know, customer base They're tech-savvy They're oftentimes very much leading edge They're cloud paranoid for certain core applications What's the conversation like with that class of customer banks You know, insurance companies, you know, whatever So I mean, if you go through the three layers here, right The software is a service one We tend to see those as what would have been packaged applications In the past, you know, a function within the enterprise That they can see outsourcing to some degree Because it's not core to what they do from a competency perspective That's why you see a lot with CRM in some cases With, you know, things like, you know Talent management, HR-type functions Because those are things that you can imagine Putting out, you know, into a SaaS-type environment As you go into the platform thing They're looking for speed So even though, you know, banks in particular Tend to be a little more traditional Maybe a little more conservative They do realize that when you go to this mobile model You can't develop in a six- and 12-month release cycle It's got to be, you know, days and weeks And so they recognize the need for things Like a Bluemix environment, for example For that rapid integration As you get into, you know, the infrastructure layer I hear more conversation there about, you know Setting up private clouds How can I better manage my on-prem, you know Data center and facilities there So things like pure application system With patterns gives me that, you know Automation, better cycle time Better maintenance, you know Profile over the course of it But I fundamentally haven't changed The middleware in that particular case It's still a system of record It always will be But I can get a lot more out of the infrastructure By moving to a cloud model there How much integration will occur over time Between those three layers? I think integration is key across all three I mean, in fact, you know We assume that everybody's going to be a hybrid cloud Of some sort How you decide to do it is going to vary by customer But, you know, take that example If I outsource something to a SaaS property I onboard with Bluemix from my platform as a service And let's say I use PureApp inside my enterprise To manage that All three of those environments Still need to talk to each other My SaaS app isn't going to be an island So if I outsource HR The rest of my ERP systems are still going to be back here So how do I integrate there? So you're, again, at the heart of that integration Is really your middleware On a huge portfolio So this doesn't happen overnight So on a scale of 1 to 10 How integrated is that massive portfolio today? Actually, it's pretty well integrated We've done a lot of work over the years Even within the middleware group To truly come up with those connections And those integration points SOA did a lot for us in that regard In terms of being able to do a service layer And service approach around this stuff We hear a lot of APIs now API is kind of the new buzzword It's really a form of integration to some degree And it's exposing those assets From maybe a traditional system Or SOA environment out into the internet Or to mobile apps or to other clouds So the terminology changes a little bit And some of the protocols do too I mean, it's a little simpler now With some of what people do with APIs Usually using technologies like REST, for example But fundamentally, it's still about service orientation It's still about exposing these things In kind of a controlled way And that gives us a way to bridge between these different ways And how about the SAS portfolio From SAS to SAS, being able to exchange data Is that something that you guys... It's a big deal So we have a technology called Cast Iron That does exactly that And it's for, we call it application to application integration Your example is perfectly valid But the more common example, quite frankly Is that I'm using, say, SAP as my enterprise application And I decided to start using Salesforce for one function How do I then connect and sync that data between those two Mixing and matching Classic mixing and matching But as you go forward, we assume more people Will have more SAS properties And then you have the SAS problem And then the SAS test On-prem... That's more the norm, having mix and matches That take on a long tail distribution Big, heavy, committed to niche apps And you've got, it comes down to If it's something that you don't think Is a core competency for your business To manage, maintain, et cetera Then presumably somebody whose business Is solely to do that is going to do it better And if you can get your head around that model And deal with... Typically it comes with a little less customization So as you go to the SAS model It tends to be a little more simplified But as long as you can work within those boundaries Then it tends to be a really good option In terms of managing those things So what's your plans for this shoot? Talk about your organization, your chart, your mission I mean, you're in an interesting spot You're like deal maker internally You're brokering services You're at your hands in a lot of Pies, you're cooking many kitchens Is that true? I mean, is that what... It does feel that way I mean, you're a glule I mean, there's a lot of action going on around you Right, so... True, so, you know, from my perspective The name of the game here is we need to make sure That, you know, the newer cloud You know, applications and workloads That we can capture those for IBM Whether that's capturing them with environments Like BlueMix, but also with technologies We can bring from middleware So, you know, our classic run times Like Java, but we're also doing a lot With things like Node, for example To be able to move into new spaces For new applications So, not just the existing system of record But the new stuff as you do that too So, I think that's a piece of it And making sure that's consistent So that a customer who engages with us here Can also, you know, see, you know Some of those core elements manifest themselves That's a sweet spot for IBM I mean, I think it's not really talking about this It's hard to market that in the top line Mainstream, but like Your skills of integration or services Is really strong, I mean, as a company That's like a DNA It's not that obvious So the people who don't understand the enterprise But that's your core sweet spot Right, I'm going to integrate old and new Or prove in with cutting edge Yep Right, that's kind of your whole purpose What are you going to knock down this year In your business plan? What's your objective? Well, you know, from my perspective It's all about promoting And getting the word out about APIs So, you know, it's starting to happen It's still early stages for a lot of APIs And the API economy and API management So, you know, it's really about using APIs That is kind of the gateway, if you will From the enterprise out to these other clouds And, you know, creating the API is a good thing But it's frankly the easy part It's how do you manage that API over time How do you deal with, you know, spikes in workload How do you deal with versioning It's almost like electricity before a grid These things happen in APIs They just, like, just not show up Sometimes something bumps them off They go off, they go on And the JSON endpoints or whatever API it is Right, and so we tend to use Analytics to manage that And look at what's going on And give insight into, you know, how is my API behaving You know, maybe you've got one person Who's, you know, really abusing that API How do I filter that person out You know, these are the things That you have to start thinking about Because most of these APIs, when they get exposed They don't have a predictable usage pattern, right So you've got, you know, mobile apps coming in They could, you know, generate a spike in traffic at any time The old way of capacity planning Just doesn't work in kind of a new cloud Well, you're mixing and matching So you get mixing and matching You get diversity, especially foreign apps Not necessarily in IBM, others APIs are kind of a nice little interconnection I get that What is getting the word out of me? Like, like, community, open source We go system I think all of the above, right So, you know, first it's making sure That our clients get the message That this is, you know, a way to get this done That this integration space in cloud is, you know, All about connecting things in APIs Reliable and safe Right We expect to do things with open source You know, we're starting to use things like swagger If you're familiar with that In the API space, a definition Allows people to kind of, you know, You know, coherent way Talk about how this API, you know, behaves You know, the parameters to it The documentation of it And, you know, do that in a way That's kind of reusable Over, of course, the different things So we expect to do a bunch of things in that space But, you know, the big deal right now Is to make sure people are aware That they need this A new way People don't necessarily know That this is a problem The DevOps guys are all over it Because they're born in the cloud They're playing with APIs But that's the norm now With more than it will be Going more API mix and match Correct Okay, well, I appreciate you coming on theCUBE Anything else you'd like to share with the crowd Give them a taste of the vibe That's our question of the day Is what's the vibe of the show right now? It's new, it's three shows in one Is it working from your standpoint? I think it is, you know I think it's been great to see, you know I've gotten a lot of feedback on, you know Just the notion of cloud and mobile And how that really is reshaping And, you know, causing people to rethink How they really want to deal with Not just their new systems But also their existing systems, right? And so most of my conversations this week And the vibe I get is People get it now, you know This is different This is something I need to do We're not, you know We're not in a conversation now Where we have to convince anybody That, you know, this is a big deal Everybody comes to the table Fully acknowledging that And now they want advice on How do I make that happen, right? What are the best ways to do that? Don't believe the VP of cloud service Is an important role The glue, the integrations That's a big, you know Unspoken key differentiator And important If the API economy is here Notifications, APIs, mobile It's all evolving in the cloud Cloud is the engine of innovation This is the cube We sent all of our content to cloud It's on siliconangle.tv It's on interconnect go That's an API driven site By the way, we rolled out a new Have you seen the interconnect go site? All APIs, you know There's a lot of APIs in there All coming in from the crowd data Go to interconnectgo.com You want to check out all the keynotes On the main tent The cube developer action And... See our APIs in action See our APIs in action All from the crowd Trending hashtags Trending stories See what's the conversation Join the conversation Of course get all the access Information from IBM Log in required This the cube We'll be right back After the short break We often sound bites And blog posts But with the cube We go in-depth conversations And that's really what's great about it And my colleagues Dave Vellante and I We really want to make it fun Exciting but more importantly Extract the data from the guests And extract that metadata And share it with the world So the future of journalism Is in jeopardy, frankly Especially industry news Industry journalism Because so much of it Is either focused on one of two things That's focused on client relationships Relationships with sponsors Inordinately so Or it's focused completely On the consumer and the audience And with no regard to What's actually happening No analysis of what's actually Happening in the business This is nice because a lot of it Whether it's blogging, tweeting, video It's all about immediacy And kind of getting what happens now And doing this live And then obviously capturing it Pretty quickly like you do on blogs And other things Kind of keeps that live element there And when people are at the show Or soon after the show I think that's when they're most Attentive to what happened So I think it's a nice fit for it Because you write about it To do something a week or two After the show It's not as interesting Not as time It doesn't stay on people's minds So Where we step in The Cube strikes an even handed Balance between these two things I think And it's really going to be The model going forward For other organizations And I think you're already starting To see that in the industry 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 For The Cube Our flagship program When we go out to the events And extract the seeds from the noise I'm John Furrier with Silicon Angle My co-host Dave Vellante Chief Research at Wikibon We are live at the GoSocial Social Media Lounge Where InterconnectGo.com Is the website you want to go to For the digital experience Powered by CrowdChat Powered by the CrowdChat platform VIP influencers All the amazing crowd activity All the people on Twitter All the data is out there Certainly the analysts will be Coming shortly And our next guest is Inhi Choo, son of the VP Of Strategy and Business Threat For IBM Analytics Welcome back, great to see you You look marvelous As usual Thank you, thank you John and Dave So you're doing a lot of meetings Three shows into one So three times more customer meetings Three times more activity How are you feeling? Three times the fun Three times the fun, harassment I mean we're going to be rocking tonight I can't wait That's a great concert So what's going on Give us the update What's happening in the show for you We've got a number of things Let's start with some of the Cloud announcements We have a number of Focus around cloud data services And new capabilities That we want to bring to market We've also have new capabilities In terms of Twitter Actually flowing through Our big insights Hadoop service In the cloud on Blumex We've got also a higher level Partnership announcement I don't know if Folks have had the opportunity To read about this yesterday But we forged a strategic partnership With Juniper And this is all around Transforming the way CSPs can actually Perform and operate And begin to improve the level Of personalized services CSPs meaning communication service providers In the industry By embedding analytics Actually directly into the Juniper Service gateway network That's exciting That's really exciting Break down the analytics system IBM has You have a software group now It's kind of sprinkled Software is eating IBM right now In all different groups You have different divisions Now, so the software division is gone And you have You're in the analytics division Is a Watson division Can you explain like What your focus is And your group And the trend of analytics Is embedded everywhere You see system Z Talking about in processor analytics Analytics in different engines Is that your group Or has it all So before you get this So the highest level Ginny flattened the organization Yeah, absolutely It's about speed Yeah, that was a key element of it And the other is To actually orient the way The markets oriented What clients actually care about is Being able to get to Whatever business outcome that they want And in order to do that You're going to need a combination Of software technology capabilities You're going to need Services and consulting And you're going to need Real deep domain and or industry Understanding of applying that technology And delivery In the context of whatever solution You're solving for Whether it's You know Energy and remediation of disasters Or if it's a predictive maintenance And quality within Aerospace engineering Or whether it's fraud detection AML within risk And financial crime Or it's the combination Almost whether you talk about cloud You talk about commerce You talk about analytics Clients are going to want to be able to apply Those kind of layers Of the technology The data The analytics as well as Well as the domain expertise In context Okay, so tie that back to John's question Of the organization Specifically the analytics group Yep So what's in there Sure So we have Bob Picciano As our senior vice president And leader for IBM analytics And within IBM analytics We have a team that's focused on Horizontal platform capabilities What I mean by analytics platform And horizontal is They think about the entire information The analytics stack of Technology such as The relational database Such as warehousing Such as BI Business intelligence and reporting So think about our capabilities Or our Cognos or SPSS They thought focus on Also the team focuses on Hadoop Right Emerging technologies in terms of New types of analytics And new analytic applications And programming models Including innovations that we want to do And accelerate around Spark We also have folks on that team Focus around stream computing As capabilities around Real-time stream processing But the notion of this platform Is really about all the horizontal Capabilities that you can imagine There's also another layer above it Which we call cloud data services Which is What are the set of Data and analytic services That you want to be able to expose And compose in the cloud And this is to accelerate New types of application development As well as much more of a self-service Environment That's right That's right For all around data and analytics So it may be things like Clownant Is part of that sort of capabilities The big insights Hadoop And Bluemix Dataworks That's all exposing that next layer Of data services in the cloud And that lives within Bob's group That's also in Bob's group Then there's a layer called Analytics solutions And the analytic solutions are things like Predictive maintenance and quality Or PCI around customer insight For certain vertical applications And industry solutions The Now factory Which is a set of capabilities Around telco analytics For customer service providers Network operators So the solutions team Really thinks about a vertical orientation Of the data and analytics stack To apply to different roles And professions and industries And that's how Bob's kind of Organizations And you've got services within that That absolutely And industry specific services as well Or anything that's data related Both Both It's the professional experts That we have on the team Are a combination of the consulting experts Within GBS's consulting practice That have moved into the IBM analytics unit That are going to be specialized By vertical industry So we'll have a team that are experts Around financial services And then in banking Is it core banking? Is it retail banking? Commercial insurance Personal casualty property Energy utilities management Travel transportation So you can imagine kind of The way that the deep domain experts Are aligned And you said databases in there as well Yeah, database is part of our platform Set of capability So if you think that's part of the technology level So DB2 lives in In IBM analytics Yeah, and IBM analytics SPSS lives in it It's all things having to do with data and analytics Essentially So you get the technology responsibility And it's growing too And it's growing Last quarter grew I think 6% was the number 7% 7% is huge So how does that So you got technology You got the enabling with the cloud fabric Kind of interphase And then you get the vertical And the solutions group So solutions That's right So how do they relate to the Watson team What do they do That's a great question So part of what we want to also Enable within Watson Is how you begin to compose Different aspects of the technologies In such a way that you develop Watson cognitive applications Within the Watson unit We're really engaged at deeper levels Of transforming and providing Kind of next generation of cognitive Applied to the domains of Insurance Domains of medicine Domains of wealth management Recipes of like Technology that are applied Almost applied to analytics Well, yeah And there's kind of couple phases of it One is you have to have enough data And information Both structured and unstructured Right that you're curating Meaning there's got to be evidence From which you're actually asking questions And a key element of Watson Is the ability to ask it Very rich questions And to interact in a very human way Via natural language But also the inferencing capabilities And the other aspects Within the engine itself And so I would look at clients Really trying to get their data in order Their analytics Who their audiences are Their domain experts And we're really helping clients Regardless of where they are in their journey And I look at it as an entire journey For everybody Okay, and now you're doing Partnerships, doing deals The Juniper announcement Can we talk about that a little bit? Yeah We're talking off air a bit I don't think people really understand it So take us through what it exactly is And why it's so important Sure, I'm excited to share it Actually, because my new role Is to run strategy and business development For the analytics unit as a whole Reporting to Bob And the first partnership we've announced this year Is with Juniper And just very candidly You know, if you step back And you think about the world There are just natural points of What I consider centers of where A lot of data either resides Or is through putting, right? And the network is one of them And what's amazing about that is That Juniper is uniquely positioned To extract as much data At the network level Than any other of its Contemporary kind of companies Now, what IBM has to bring to bear Is the ability to augment that data And understanding knowing What's actually happening in that data flow What applications are running through it So we're embedding some of our Unique capabilities from the Now factory Actually inherently in the network router For Juniper to be able to augment That data with key metrics That can help things like bottlenecks Of latency, performance, optimization As well as things like customer service Because then as you think Through understanding that data And processing it You can then visualize that information In a way that if I'm the network operator I can begin to change in real time And see different types of application usage And different types of customer service usage I would just give you a simple personal example When I'm at home And my kids are streaming something Right? Either on Netflix or YouTube Or name the video they prefer And my husband Dave's on his business application And I'm maybe on my system All of a sudden you can feel The latency on the system Well, as part of it is Because the network's not smart enough To know what's the combination That's being used by the various subscribers in the home This is an opportunity for us to actually unpack That knowledge in such a unique way To improve the quality of experience Well, quality of service too Networks are the bottleneck And with peering You're seeing Google has their own peering network For their cloud You've got to get down and push into the network So talk about the deals Is it a joint business? Go market? Technology development? Sharing? It's a strategic deal too And what we plan to do Is innovate around the engineering So there is joint engineering involved There's also joint go-to-market involved Because as we go into both the Communication service provider marketplace As well as to even large enterprises There are a lot of large enterprises That procure their own networks And manage them themselves Especially in financial institutions As a good example Of course they get the network service Potentially from one of the carriers But they actually manage the internal Policies, let's say They want that level of visibility Which they haven't had before And this is a unique opportunity For us to be able to bring IBM's breadth and depth of analytics To what Cisco Excuse me What Juniper has really In this particular scenario Of exposing the data in such a unique way That we can help them scale what they're doing What kind of you mentioned it? Is it an exclusive deal? Yeah, I was anticipating Where your question was going And I could see your face And that's why I started to mention it So why Juniper? Well, one of the key things One of the key things in terms of the partnership is That it's not exclusive However, what we want to do is Be very thoughtful and strategic Because it's truly a first of a kind Neither of us have innovated This particular way in the industry In terms of any, let's say Leading analytics company Or a leading networking company The second piece is all of the data That Juniper is able to expose In their network is pretty amazing What we're doing is applying KPIs And metrics and knowledge And algorithms and mathematics In a very unique way So that they can now automate Things like and remediate Through predictive understanding Of bottlenecks and throughput Latency, performance And Juniper's focus on CSPs Is sort of a natural place to start It's probably easier to focus And smaller company Absolutely, and this is really a partnership Where you're bringing kind of two very Innovative companies That have actually had a very long standing partnership For a while In different ways to reinvent What's possible moving forward In this particular space And by the way, this is one of A couple elements of IBM strategy I mean, we announced the partnership With Twitter in the October timeframe Because this was about extracting The insights from the social conversations And the pulse of what every individual citizen Professional is thinking and doing In a very meaningful way To impact business decision making When you think about here in the CSP scenario Here we wanted to get close to understanding The data that's flowing through the network So you're going to see from IBM A number of kind of strategic Sort of developments and relationships That accelerate our ability to allow Clients to extract the insight From the data How far along are you with that With the Twitter partnership? Can you expand on where you guys are with that? Is it prototype? Is there actually solutions in the marketplace? Is it just kind of tickering around? And as you know, we love the Twitter data You know our love for Twitter data So we're curious You are avid users I can vouch So We work for Twitter, but we don't get paid Twitter, if you're watching, that's okay We'll pump you up That's funny Snapchats on their tail, you know Snapchats growth is phenomenal So anyway, back to Twitter So where are we with the Twitter? There's a good buzz around the show here On this one point The partnership is doing great And what we've really done In the last, since the end of October Is when we announced it is Actually developed a whole series of internal training For our global consulting organization Because we've declared to the market That we're going to train thousands of Consultants around the use of Twitter data And certifying them in very unique ways On delivering Twitter within a business contact So that training is actually started In the middle of December That's for the insight piece too, right? And that's really for the insight piece There's another level Which is flowing Twitter data Naturally through IBM analytics Software capabilities Like Watson analytics Like Big Insights for Hadoop So those set of capabilities We've already enabled the Big Insights for Hadoop On the cloud The Watson analytics is forthcoming very quickly So you'll be able to see that And we've actually enabled Twitter also within our Bluemix environment For application development So there's a number of things That we want to accelerate around What I consider The ability to play, innovate, build Kind of new services, new applications New insights using Twitter Then there's a whole set of solutions And our intent is to actually announce A set of integrated solutions With Twitter starting in second quarter So you're going to have to wait to hear A little bit more on that So they're engaged with you guys This is not like you're doing a Hey, you guys are using our fire hose Oh no, no We have engineering relationships We have engineering relationships We actually have joint Consulting and expertise relationships We actually have regular committees In terms of the technology and business And client engagement We have a number of clients actually That have also done POC engagements And really want actually bigger Solutions If anything, they want faster That's super, super So I got to ask you So two years ago We were at the Tableau conference Interviewing Nate Silver And you were there Oh yeah But then so we You know, us on Twitter We were like crazy about it So we were poking at him Asking him about Twitter And its predictive capabilities And he made a statement Again, two years ago The data's not there The data doesn't exist And so we were like Very, I guess it does He's wrong He's a hardcore statistician Now maybe he's right In that kind of structured framework He's not even a data scientist He's just more of a user Yes So it's two years on You got to bring in your resources to there The corpus of data is enormous Is the data there? Is it starting to be there? Not to pit you against Nate But I'll give you the It's two years on So things that could have changed But I mean, what do you think? Is it just different type of data? I mean, I know it's not structured surveys From, you know, political polls Yes, yes Or predictions on, you know, whatever Who's going to win the election? You know, the value of the data is always in context And having that as a social element In terms of how that conversation is happening At a certain time, a certain frame Is really important as an element It might not always be the element But it's actually one of a combination It's been pretty consistent for us And I've seen it I believe we're really entering what we call Kind of an inside economy And in an inside economy You're going to have to marry data sets From a variety of different sources Including your own internal enterprise organization data But it may be things like combining social data With other types of industry data Even government open data To marry, to extract a higher level of understanding Whether it's around a customer Whether it's around an organization Whether it's around a set of products I would say a different way is that The size and the conversations That actually happen on Twitter Are as close to sensing what the Holts of the planet is And that's kind of what we talk about And there are very few places in the world That represent the corpus of human thought And this is one of them This is almost one of the most modern day And you get the most extremes of the mundane It's human signal Right, absolutely Mundane to absolutely insightful In that pool And it's how do you find that one needle In the haystack And we have the analytic capabilities to do that And to do that tying back to key business process And workflow It's really genius I got to say, and you guys This is such a great move for you guys We love it 100% I think it's the future You nail it, double down, keep rolling But I got to ask you Internet of things Is big data The Twitter example means Internet of things, people are things I mean thing one thing too Is a cartoon, a book So I got things on the edge of the network Talk about the edge of the network Probes on sensors Or could be refrigerators Whatever it is Oil and refineries Every vertical's got things Machines and people Absolutely, absolutely So the people is the Twitter thing That's the Internet of Things application Get that Machines and probes and that market What is that Look for you guys Is Bluemix is hot You've seen Bluemix big data And Internet of Things are the top Conversations at this show right now Yeah, and you probably saw the main tent stage Yesterday afternoon And the Silverhook power boats Yeah, they were on the queue Awesome, one of our favorite interviews Their business outcome is pretty specific Win the race Win the race And live through it A lot of sensors A really good example actually Is work that we did recently With Pratt and Whitney Developing and innovating around They are the market leader around Airline engines, right And in that manufacturing and engineering space One of the key elements is How they've innovated their engines For fuel efficiency and economy One of the things that They thought they were going to be able to save Because of the optimization And the engineering was on fuel But however they also had a lot of Unexpected down time Around the product In terms of some of the quality And they didn't understand why One of the unique challenges they gave Us was could we help them Determine and predict What was likely to happen So they had actually captured About two years worth of data And they gave us 18 months of it And asked us to predict What was going to happen In the remaining six months And we did Our team actually applied Some of our predictive maintenance Equality and asset optimization Capabilities all built off Of a combination of Our IBM analytics portfolio Like SPSS and other elements We did a pattern detection and understanding And we actually predicted with Close to 98% accuracy On what was going to happen In the next six months Which was the truth I mean it was that close To what they actually saw in the data Now did that lead to Some kind of business capability It did It actually transformed The way they thought about servicing And the follow on new innovations That they could actually offer To their downstream ecosystem partners I mean the opportunity Around the internet of things Is just unparalleled Because what people care about Not only just the connectedness Of everything As well as the security Around everything But it's how do you extract The inside of things Right The inside of the connected things It's not just the internet Of things themselves Can we talk about You and I were in it Of the Duke World strata Of the data SV last week And all these guys were And the big talk was Well one of the big themes Was ODP Big announcement Mike Olson put on a blog Post saying oh it's all Huey, Hortonworks and others You guys responded saying Oh it's not Huey It's real Why does the world need An open data platform? Oh you know it's part of What I consider being able To help accelerate True enterprise adoption At large scale And the reason for that is You have to have certain Degrees of standardization In order for clients To be able to extract value Out of that data We use that For new application development And having a partnership Around the community Ensures that consistency To protect Actually the investments by Most importantly many of the Clients as well as the Application program members That are working in the industry That's a key element of it So I mean on the one hand Mike was sort of criticizing And we know Mike really well He's a friend and he's a great Kai and a straight shooter He was criticizing sort of The pay to play aspect of it And that's not so much of a Concern you know It's not open to pay It's really a Hortonworks Right it's competitive with Hortonworks but But the point he does make Which I'm sort of torn On this I'm really trying To understand is Why do we need standards When we have standards with Apache We've already got open standards Why do we need more standards You do have open standards With Apache It's also about actually I would say One of the most important Things to clients Is they want some headlights Into certain directions So if the community knows Architecturally even if If the base has to go In a certain direction And can give a little bit Of headlight enterprises Can actually invest Properly in that And understand how they have to Where they want to emphasize In terms of certain branches Or forks In terms of the project Because you know Hadoop unlike some of the Other open source projects Within Apache It has multiple Multiple branches Right there's Number of initiatives under That and it's very hard for A single enterprise To be able to be on track And on top of every layer Of all of the initiatives In a meaningful way Unless you're a really Large institution And you have you know Thousands of application Programmers and developers And data architects Then you're in a business Where that's the core Of what you do And that's why you've got that So there's a purist So you're purists And then so you're saying There's purist and speed People can handle the purist Nature and speed And slower Which is like built around Investment protection Where you slow roll The open core Well, I would actually Say skill Skill is probably one of them Quite honestly I think the Hadoop market Should be a havoc Of a lot bigger Than what it is right now Well, I was going to say So you can't skill something If there's not a lot of standards In terms of how people can Actually drive the next level Of innovation Whether it's doing In-system analytics And applying R Because it's much more Pervasive in a broad scenario You can imagine What's going to happen With Yarn and Spark You can imagine What's going to happen In the SQL space You can imagine What's going to happen In terms of text analytics And machine learning So it's going to explode It's actually going to be Faster So do you think then That there has not developed Fast enough? I mean Hadoop should be Much bigger You're saying And it's not because there's You know it's a lot to track Well you must laugh When you do the endless thing And all we talk about is Hadoop, Hadoop, Hadoop And Hortonworks goes public It's got, I don't know About $12 million $30 million It's $12 million It's $12 million It's just past $100 million I mean look at IBM's business It's enormous Comparatively Why is it that we talk about Hadoop so much? Because innovation started at all Right? It started the whole meme I guess But it's fun You know it's But it also The thing that I really And most excited about it Is the fact that it allows New types of Discovery based applications Right? In traditional Warehouse analytics systems It was questions And you get an answer Right? Here's the question I wanted to ask What's my sales for the month Who are my most profitable customers Using technologies like Hadoop Mixed with search And mixed with text analytics You actually allow people And organizations to ask Much more reflective And discovery questions You're not just asking a question For an answer You're actually kind of playing with it And maybe trying to find out Relationships you didn't expect That's kind of the new class Of applications that's possible And that's what's so exciting So talk about the Next phase of growth For your group So you're going to set the table You and Bob are going to Attack the analytics Part of the division Which is the core stuff You're also the buyer Out there for startups You guys are Are the customers of the VCs Ping Li, Frank Artali On our big data panel And I asked them IBM and others Are the buyers for you guys As the VCs You're peddling up the startups The ones that can't make it But they have some technology Accurate higher potentials Portfolio Product portfolio White spaces What's your view on that Can you share I mean honestly you can't tell the plan But you're doing strategy You're doing biz dev You're doing deals That's right What's the M&A outlook Look like for you guys I think it looks positive I think the industry looks positive In general if you look at the activities And just kind of the signals Of what happened last year In terms of just overall market VC investment in the space Has grown But for us it's positive Because what's nice about The way we're aligned to be Enabling the solutions In the markets we want to go after Like IBM analytics IBM commerce IBM security Is that we can actually move faster And thoughtful about Well thoughtful about what are really the components That actually drive accelerated new growth New skills growth New application growth New technology growth And prioritization It makes it much It's it goes back to the speed at which Do you have a list So do you have a list I'd love to shop Who doesn't like to go shopping I'll think it's a list I mean is it like this I mean is it long Come on I can't see it Have you seen my closet We've got some things for you We'll talk after No but M&A is big right now And you're going to see Well our thesis was consolidation Certainly in big data You know there was databases down to three You know I wouldn't say the word consolidation though Because that's not actually the lens Through which I think about it I actually think about it is What are the classes of applications And technologies That we actually think are going to be Innovating and driving growth In various industries And so I'm actually Not thinking about it from a consolidation standpoint From a start of scale Well there's going to be acquisitions And there's going to be Fewer companies maybe in some category But if you're right There's another wave coming I think there is And it's hard to tell Maybe it's IOT Well this is the speculation We've been covering Is that to get the big boys That have overfunded the VCs The startups You guys have a partnership strategy We talked with Doug And we talked with the folks In the Blue Mix group The collaboration space now For like If you're under 50 million And you're not generating sales If you're a startup And you have no sales But a product The question is How fast can I get sales The VCs aren't funding B and C rounds Because there's no sales So like They're perfect Like stuck in the middle of Of things Perfect opportunity Either put them in the marketplace Or use them It's got to You know I Have to go back to It's got to align To wherever our strategic priorities are And where we think The innovation is going to happen next And quite honestly I'd like to For us to be able to innovate As much within IBM Because we spend a tremendous amount Around innovations Internal innovations As well that we want to expose Our research assets Are pretty amazing So we're very thoughtful About what are kind of The adjacent spaces That are natural Kind of accelerants To our business Okay we're getting the hook here Thanks for coming on theCUBE Final word for you What's the vibe of the show What do you think about Your new role Doing deals And just in general The pulse of The analytics group Well first of all Interconnect is great I mean this is probably Just massive in terms Of the attendance And the facilities And all of the topics Mobile Cloud Security DevOps I mean you've got the gamut Analytics So really excited Obviously IBM analytics Huge huge opportunity For us to transform Every profession Every role Every industry And for me personally I'm really honored And excited to be Part of this team So Well we're honored To have you on theCUBE And it's so great To chat with you You're always awesome To share information You're very candid And open Thanks for taking the time Now to your busy schedule To share with us Appreciate it This is theCUBE We'll be right back On our next guest After this short break I'm John Furrier with Dave Vellante We are here live at Interconnect Go.com Interconnect conference Here in Las Vegas We'll be right back A lot of things from a trip around the world But you can't always bring back Customer data Because many customers don't like it When their data moves around If you're going to do business globally You need a cloud that can keep your data Where it needs to be Today there's a new way to work And it's made with IBM First time on theCUBE, baby Rock and roll I think it's probably five or six times I've been on theCUBE now Right, at first the guys are just fun to work with Pat, welcome back Hey, always a pleasure to be in theCUBE Hey, I'm about to go on theCUBE You never know what's going to happen A three-time veteran of being on theCUBE I hope many, many more Chat seconds, Chad, welcome to theCUBE Dave, John, it's great to be here, man I keep coming back because Great insightful questions from John And from Dave What face-melting action Have you seen here at the event? And I know there's a lot of it It's a great vehicle to To communicate with a broad audience A lot of folks watch Great to have you back Good job All right, Craig Nunez VPA Marketing at HPStore Thanks very much for coming on theCUBE When people mention theCUBE They're like, oh my god, I saw you on theCUBE And they're all excited about it It's an experience It's not just information They experience kind of what's going on there It's like real time, it's like they were there That was like going to the gym Legendary IBMer, CEO of Symantec And now CEO of Virtual Instrument Great to have you on theCUBE So for theCUBE to be here At a conference like this It's got 15,000, 20,000 people And sharing that live around the world That's consistent with the way the world is going So it's been wonderful It's been wonderful John and Dave are amazing I don't know how they keep everything in their heads The way they do It's a great format And we're obviously seeing that this notion of real-time coverage And a real conversation is what's driving us as a company And I said very seriously When the questions and the comments that we hear from them And from all the different guests here Directly turn into the products that we build Yeah, that was my first theCUBE And I really enjoyed it There was the rapid tire of questions It made me think on my feet But they were very thought-provoking And really got me going On analyzing the greatness of Rista And the greatness of theCUBE as well John and Dave, the reason their approach works They're not just guys Reading down the question list Right, okay, next one, next one They're, it's a conversation, right? And it's, you know, they're going to challenge you They're not going to settle for the marketing hype And the BS and all that stuff That the industry throws around Come on, you got to hit them up on the HP question A lot's changing HP Some turmoil at the top, obviously Controversy They're going to hold you Down to the real facts Compare you to the choices our users have And have you respond to it On the spot, right? Thinking real time And so that's real talk Not just kind of a paper interview I'm John Furrier with SiliconANGLE.com And I'm here with Dave Vellante We are inside theCUBE theCUBE is our flagship telecast We go out to the events Extract all the signal from the noise And share that with you And great guest lineups We've got CEOs, CTOs With all the top executives Bloggers, thought leaders, venture capitalists I'm absolutely stunned By, because I know it demands 100% attention For these guys to be up there Talking to people about a wide variety of technology topics I can't believe these guys can make it So many days in a row So I'm wondering how long They're going to go home and pass out for after this But it was incredible They just do a fantastic job If you're not having a conversation Then you're very scripted And if you're scripted Then you might be getting the right words But you're often not getting the whole meaning And the whole depth of the conversation To the fullest extent I think this is a heck of a lot more authentic It comes straight from the heart and the brain Sometimes you might forget to make some of your points If you're not a real-time thinker But I think from both from a participation And from a consuming point of view It's much more real Chris holds no punches So I've been on theCUBE a number of times And I think the interesting thing about being in that Particular venue in that format They introduced me as a half dozen full punches Well, they don't either They ask really difficult uncomfortable questions sometimes And you can tell people and the positions And where they are in terms of what they're able Or desires to speak of You can tell where they are on that borderline Between kind of just honestly answering questions Versus kind of glossing over them And I enjoy being there Because I don't want to say I'm outspoken But I honestly answer questions with the full intent Of being able to be respectful to the people That I bring solutions to If I whitewash this crap You're going to turn me off every single time You see me on any venue let alone theCUBE So I like being asked tough questions I like answering them honestly And that's a fantastic venue for doing it Otherwise you get on panels And you get a bunch of talk and hands blabbering At each other and it's worthless Now this was my first time on theCUBE And I really got a chance to get to know John and David And they're really amazing guys I mean the knowledge that they come with The topics that they could talk about The people that they know And just bringing it all together In this live broadcasting forum It's just fantastic I mean I just love it I'm like, I feel like a groupie or something You know? In this environment, you know The social environment The real-time environment where we're in People look through the marketing fluff very quickly And if it's not authentic, right You know, they don't trust it anymore So in this environment, I think it's a growing trend Yeah Live from Las Vegas, Nevada It's theCUBE At IBM Interconnect 2015 Brought to you by headline sponsor IBM Okay, welcome back everyone We are live in Las Vegas for InterconnectGo.com IBM's Interconnect show InterconnectGo.com A special social experience A digital experience for your watching Coach, you got the site The VIP influencers The video feeds are there From the main tent sessions The CUBE developer TV Of course all the trending stories Trending hashtags Crowd chats all powered by the crowd This is theCUBE SiliconANGLE's flagship program We go out to the events And extract the signal from the noise I'm John Furrier My co is Dave Vellante Our next guest is Cynthia Grossman The VP of SDG Welcome to theCUBE Thank you Glad to be here Big data systems Absolutely Infrastructure matters Infrastructure matters So where's it all fit? So we've been piecing the puzzles together As Jeff Jonas would say Puzzle pieces Jeff We're using your puzzle pieces all day today Puzzle pieces The rear-argue, flattening You got the analytics group Systems Store Where's storage fit in this? And where's... I see a big data angle Big data angle You know what's interesting Because I love Jeff Jonas And his puzzle pieces Because as the puzzle gets smaller and smaller The pieces become more and more clear Right? And the infrastructure is one of the pieces That I think that people don't recognize Is such a key element of that puzzle Because it's going to be the thing That is going to make it perform It's going to make it run fast The storage matters The platform matters that you're on Where are you going to take... Where's the data reside? You want to bring analytics to the data? You want to bring, you know The... move the data? No Well the three core concepts that have been out here We've been talking all week Systems of record Systems of engagement Now systems of insight All has to be stored somewhere That's the data Storage At storage It is storage And that storage matters And what you don't want to have to do Is have 50,000 copies of that data So unstructured, structured We're seeing particularly in the unstructured space If you do this typical Hadoop with Intel You're going to have like four copies of the data You put it into a mainframe environment You put it into a power environment You put it into a traditional storage environment You're not... you're going to use RAID You're not going to have to worry about Having multiple copies of that information And we'll manage it We'll secure it We'll protect it Those are all important things And one of the things that's very interesting As it relates to the information around analytics It's becoming much more mission critical To our businesses It's no longer the copy that we're going to make And we're going to analyze It is the copy that is going to make the difference In terms of how that business runs What decisions they're going to make And what insights they're going to get So tell us The theme of the show is here at Interconnect Is the compilation of three shows Jammed together More action More people 21,000 people Is the new way So the question is What is the new way for storage? I'll see a new way of data But what is the new way for storage? It is about taking the information The data layer Around analytics There's so much information that has to be stored That data layer is absolutely critical To being able to get that systems of insight That's what people are really ultimately wanting Is that systems of insight And the data layer is a very, very critical element So you think about flash That is all about speed of access to data And you think about software defined That is going to be how you scale How you manage it All of those elements are things that we're building out at IBM And that are going to increase the capability that clients have To manage And to get this systems of record Systems of engagement Systems of insight So another thing with IBM is There's a new way to execute So you've got a new organization Ginny has flattened the organization And you first met when you were in storage And you had an analytics role Now you've got an analytics role Specific to infrastructure So it's interesting to see So there's an analytics business group Under Bob Picciano But you're under Tom Rosemillian's organization And STG, correct? So it's interesting to see There's analytics everywhere And big data is everywhere So talk about that role That you play within that organization The role I play And a lot of clients are saying Where's my data? What platform am I running on? And so the role I play Is it's agnostic to the platform It's what is the element that you need to have In terms of being able to manage that information In the most economical The most scalable way And to be able to get that systems of record Connecting these things together So the software layer Is a very critical layer In analytics And I look at analytics It's one of the things that While we took the infrastructure piece And it's underneath Tom Rosemillian It has to be a key element Of the analytics unit The platform that you run on Matters for clients And it's got to be It's got to be scalable It has to perform If you need instant access If you need You know how the Actual analytics applications run All of that piece matters And that infrastructure that we're doing That connection Transends everything And it's critical In your specific role In that organization Working with customers Are you a strategy role? It's strategy It's working with customers It's making sure That no matter where the data resides That we are building out The infrastructure That is going to Enable a client To get the analytics Where they want When they want How they want it Infrastructure agnostic As long as there's some IBM infrastructure in there Now it could be somebody else's hardware It could be That's with the software defined strategy Spectrum we see Is open to SVC has always been But generally you obviously want to promote IBM solutions So we've We had Tom on At the January Z announcement Since 2013 Let's see We had Just recently Jamie on Here We had Doug Baylog on here as well Okay So we're touching all the bases Who are we missing in that organization? You see Well Ross Morey Okay For mainframe Right You know mainframe is interesting Because mainframe We had Ross on Right Okay mainframe is about Bringing analytics to the data Right okay So that was the big theme of the January announcement Right So when you say infrastructure agnostic What you're saying is You want to make sure that the client's Matching the right infrastructure With the right workload And Exactly And the The bullets in your gun If you will Maybe it's Too small of an analogy But you got Z You got power You got storage portfolio Right Well storage is going to transcend everything Of course right So where does the information reside And I'll tell you One of our big plays Is if you look at these non-structured Unstructured information What clients a lot of times say is Intel's good enough Well our view is Not necessarily Because when you do the Intel You're going to have You know three, four or five copies of your data And do you want that? That's expensive Do you want to scale your storage And your server together Or do you want to be able to This is data grows You want to be able to scale that storage Separate from the server So you've mentioned that now a couple of times The copy Copy creep production Yes, exactly So one way you're attacking that Is just horsepower Right, so you got the highest Higher performance Greater efficiency Etc Are there other software components that you're Well software defined helps you manage it Platform computing Helps you scale The RAID technology is the thing that has The security level Because security is very important in this environment This information is becoming mission critical to clients It wasn't necessarily in the beginning But it is becoming more mission critical Than it ever was before So how would you summarize this strategy Within this group As it specifically pertains to going after these new Big data workloads We look at things in a couple layers You have the data layer The data layer is where the information resides Systems of record Systems of engagement Systems of a record is more your traditional databases Your structured information Systems of engagement is the unstructured information That's coming in multiple places The Hadoop environments Where we're building out infrastructures That help you manage that And the software layer that helps you cleanse it That helps you look at the insights Connects it And both of these need to connect to the applications That allow you to do predictive Reporting cognitive Watson becomes a key element in this And you've seen a lot of our announcements around Healthcare in particular is one of our biggest deals What we're doing in cancer research And that kind of thing So there's the data layer There's the application layer The other layer that becomes very important Is also the industry layer So when you look at fraud In a financial institution That's different than fraud and say healthcare Retail is all about How do I get closest to my clients How do I predict what is their next thing That they're going to want to do And that being able to market to a single person To you or to I Versus to a combination of whatever our generation is So there's all those layers And the infrastructure is an important element So you guys, infrastructure matters is a big theme That's sort of been the last month or so And we've heard a lot about that You've got some discussions going on At Interconnect about that You got a keynote Maybe talk about the activities at Interconnect What the customer revive is like Customer revive You know it's very interesting The customer revive is all about Moving to talking to the line of business And what are they wanting to accomplish And what I tell clients is Don't think about just today But where do you want to be Where do you want to be You don't have to go five years out But where do you want to be next year In the next year And so when you're looking at The solution And I talk about a solution Because all of the elements of the solution It's not about Some clients will take what they have And they repurpose it Is that going to Accomplish what you need to do in two years You need to think about the future And where do you want to go What do you want to accomplish By doing analytics And what is the Solution infrastructure Not just the hardware but the software as well What is that whole solution infrastructure Need to look like As you're doing that So do you spend most of your time With the analytics people Even though you're in the SDG group Or Or I spend time with both Yeah I spend time with both It's an interesting challenge Because when you work with the software Sometimes you know Our history is Software needs to run on anything Hardware needs to run with any software Be agnostic What we're trying to do is make sure we tune Our hardware and our software together To be able to provide the best solution So like dv2 blue on power is a very good example The things that we've done with our mainframe And being able to have Transactional information run with analytics On the same processor without having an impact To the transactional That's another example of how we tune things Hardware and software To work better together To be able to solve our client's needs So what's next What's uh What do you want to accomplish in the next Say six, nine, twelve months What do you want to see within the division Like I say I think one of the biggest spaces that we have to Continue to go after is this unstructured space We're very good on the structure We've got some applications that can help with the reporting Watson also by the way Watson I think has got some outstanding capabilities In terms of where it can go It's like When I listen to You know what we talk about in terms of the spaces we're going to go into It's endless in terms of what you can think about what you can do But that unstructured information Is the piece that clients today I will tell you They're not there yet In terms of analyzing that information They really aren't It's it's it we're in our infancy Is Watson a lift for the storage group Because we saw a blue mix You know going out there Getting a little bit of a ram Some adopts We don't know how much that was from early adopters Tire kickers So they inject Watson and then boom they go really high growth Well software as a service is a big deal Right Clients you'll depending on the industry Some will feel comfortable with a private cloud The public cloud There's there's differences in terms of whether they feel comfortable with it But I think blue mix allows clients to Get to get to where they want to be quicker The adoption of being able to go And get your applications running in an environment Blue mix is going to be a very key critical element to that So there's there's a lot that we have to do It's it's it's a very very fun environment So what's next now for you guys Now you got to get the products out there What's the update on the product front Products are key in the storage business It is We see competition like EMC Always announcing stuff Products products products I mean that's they're they're only in storage But like come on Yeah So I think our server platforms are in pretty good shape I think storage flash The ability to get access to the information quicker The ability to To to leverage it to get faster insights That's a critical element I think software defined Those are two elements in our storage portfolio That we have built out capabilities That I think are going to be differentiating And that are going to really enable us to grow in this particular space We're excited to be following you guys Watching the transformation of the storage group within IBM It seems like from the outside looking in If you're not if you're not watching the storage Inside the ropes of IBM It seems like there's some new energy you got Products hitting just a few years ago When we started doing the cubes at edges At the edge events So okay There's some stuff there Big data was coming around the corner Everyone saw that coming But also in the past couple years It's been this like morphing of storage And what's the key now? Software defined Software defined is going to be a very key element to it Scalability Manageability of this information Is critical for clients Security of the information is also very critical So really building out the software defined To give clients an option Right because that's what they want They want options And I think that element that we're building in there Is going to be a critical element And I see I'm a long time storage person before I ever took this job And I'll tell you I see new energy there And it's exciting Very exciting Awesome Well thanks for coming on the cube I'll ask you the last final question What's the vibe of the show here? We've been asking everybody Well hold on two questions We've got to get this other question So say data lake or data ocean Which metaphor do you like better for The data drowning problem People are drowning in data It's one of the main conversations here at the show Data drowning for clients The consumption of the cloud on prem And then ecosystem of the top three Kind of we framed that out day one But data lake is like batch It reminds me of like I mean this big batch is like big lakes But data ocean is more dynamic Streaming currents Exactly Which one do you like better? I like data ocean better Because I think it's more reality Clients are taking information in On the fly Wanting to analyze it And be able to have instantaneous Insight into that information And whether forecasting becomes critical on the ocean too Because that's predictive analytics Oh it is Back to the data right Where are the big waves coming Where are the currents You don't want to get sucked out of to a riptide Whales are in the ocean too All those customers Got to protect the whales And the vibe of the show What's your take on the show here I mean I'll see three shows in one What's your take on the vibe here? Oh it's very exciting I mean this environment that we're in today Is so dynamic And I've been in this industry a long time And the amount of change That is existing right now It's exciting We're having to all react faster And quicker to the things that are going on So it's a lot of fun I enjoy it a lot And you've got the show coming up edge Yes edge will be coming up That's in Vegas right Venetian is it I think yes Yes Venetian You guys moved up a little bit this year It's in May this year Not June right You know we reorganized everything this year So we're trying to combine a couple of things together To be able to meet with clients And have more oriented discussions So you got impact, edge, and insight Those are three Probably three of the most important Conferences that we have in the year So edge is edge going to be more of an STG show Or is it It will be It still will be Okay so it's You just have a storage flavor You always have a storage flavor Yeah okay Absolutely Because it kind of started as a storage conference It did And it's kind of morphed to be a little bit more inclusive Because of converged infrastructure And other things going on So I'm going to find data center Absolutely I mean it's a hot trend Yes Storage is a big linch pin You get server storage collapsing together Flash All of it has to work together In memory, processor A lot of silicon advancements happening Anything you can share about what's coming around the corner Hot focus areas Obviously all flash is one you mentioned that We're taking each one of our platforms And we're trying to make sure that we've got the right orientation The Z13 announce was a huge announcement for us And we've been talking about what we call CAMS Cloud, analytics, mobile, social, and security And linking all these things together And so the main frame Is a place where there's a lot more Big iron meets big data Yeah, and there's a lot more There's slogan There's a lot more mobile than you would actually realize Think about I'm going on my smart phone And I'm doing my transfers and my money And that kind of So the mobile piece of that's very critical I got to tweet that out I'm just talking to my head But that's what the Z announcement was all about That's what he was talking about Bringing analytics into the transaction workloads It absolutely is It's the system can handle it Now it's going to be interesting to see what customers actually do Because they've got a lot of their analytics And it's sort of separate stovepipe So they're not just going to blink and bring it in But you've got tools to be able to help them to do that What's interesting in this environment Is everything that you and I do as consumers We really are not thinking about it I wonder what platform that's running on The people who are providing the capabilities They need to care They need to care about the security They need to care about the availability They need to care about the performance Because in a mobile world If you don't have instantaneous access They're going to go some We're going to go someplace else Right That experience that you have is important And so having the platforms that enable you to do that Is absolutely critical But yet we as consumers We don't want to think about it Most people don't want to think about it Somebody has to care Well Cindy, thanks for coming on theCUBE We'll see you at Edge Looking forward to it A lot of great stuff coming around the corner A lot of exciting changes In the organization It's the speed, the market Customer speed, value Are you seeing cloud driving that? Storage, same pace Yes, absolutely On-prem On-prem hybrid in the cloud So great Okay, thanks for watching theCUBE on this We'll be right back after this short break I'm John Furrier, Dave Vellante We'll be right back A lot of things from a trip around the world But you can't always bring back customer data Because many customers don't like it When their data moves around If you're going to do business globally You need a cloud that can keep your data Where it needs to be Today there's a new way to work And it's made with IBM It was my first time on theCUBE It was fun Do it again Can we do it again? Yeah I think what I've come to find Is letting my second time on theCUBE is I mean it's just such a real time High energy experience It's very good Because 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 hard on the experience I think what you're going to get Is the real answer You know it's not scripted It's authentic It really allows you to communicate quickly You know your point of view Well who knows what they're going to 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 it 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 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 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 You know some of Why we're doing what we're doing Bring it to events And we say we extract the signal From the noise What we do is We get these absolute best guests That are at those events We bring them inside the cube And we talk to them We have a conversation 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 we're a big data driven organization We have a data science team That allows us to see Not only what's trending broadly With the public But what's trending in very specific areas In our specialty in tech That allows us to vector our analysis And relevance From our research and journalist team Into everything that we do As a media company We really want to make it fun Exciting but more importantly Extract the data from the guests And extract that metadata And share it with the world So people can use that information To better themselves Better their companies More importantly connect with other people To do more business To define more of the technology And for us this is the future I do a lot of these types of interviews I spend a lot of time with the press And the cube's a lot of fun It's ESPN for tech I think tech's evolved to the point where People want to understand the personalities Behind the technology Which probably wasn't that interesting 20 years ago And I think they made it a lot more entertaining A lot more interesting As well as putting some technical meat On the bones as well The value of an independent news organization At an event Is that it allows Our audience to have a perspective That's balanced That it's not just 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 The benefit of the cube is A place for conversations For people to connect with each other And to learn about things And it's a revolution in media 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 These days With social media People looking to not just read articles Which are great And obviously SiliconANGLE 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 is really important So the job you do in getting this out In a very timely way I think is really important We always know that your view is right Until you hear a different perspective So you're always interested And give me some neutral perspective Help me see it from a different light Right, and maybe ask a hard question or two That I might not have considered You know, in that sense Right, that independent voice That's always ability to have You know, sort of independent audited Sort of perspective right over the world That's always just good 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 You know, I love it I 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 So having been on it for several years Almost from the very beginning It's always great to be back And you guys do an amazing job So it's wonderful It's about connecting with people And that really is what it's all about Having the conversations in a very social Collaborative way And that's what makes it so exciting Because people are watching Location Location Location Here's the location that matters the most Here Or here Or here It's wherever this is To get customers to come here And stay here You're going to need an app That connects to all your systems So they can bank, shop Do what they need to do And you've got to do it fast Before the competition does It's tough out here You better be on the right cloud Today there's a new way to work And it's made with IBM Forms are often sound bites And blog posts But with Q we go in-depth conversations And that's really what's great about it And my co-host Dave Vellante and I We really want to make it fun, exciting But more importantly, extract the data From the guests And extract that metadata And share it with the world So the future of journalism is in jeopardy Frankly Especially industry news Industry journalism Because so much of it is either focused on One of two things that's focused on Client relationships Relationships with sponsors Inordinately so Or it's focused completely on the consumer And the audience With no regard to what's actually happening No analysis on what's actually happening in the business This is nice because a lot of it Whether it's blogging, tweeting, video It's all about immediacy And kind of getting what happens now And doing this live And then obviously capturing it pretty quickly Like if you do on blogs and other things Kind of keeps that live element there And when people are at the show Or soon after the show I think that's when they're most Attentive to what happened So I think it's a nice fit for it Because you write about it Or do something a week or two after the show It's not as interesting as time It doesn't stay out of your mind So Where we step in The cube strikes an even-handed balance Between these two things, I think And it's really going to be the model Going forward for other organizations And I think you're already starting To see that in the industry Act one, scene three Open port 2201-7 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 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 the 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's just very good Very interactive But it's always good Because this is what you face with clients All the time If you ask you tough questions It's not under 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 this small thing That John had the idea on And David was there And Jeff and so forth And I think now we've started 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 Dave were prepared And multiple cameras Lots of lights As far as I know you could hear me There weren't any Breakups 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 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 find out the news of the day And see the ESPN Sportscasters of big data A lot to format A lot to format Dave's pro And it's a great chance to come And after you talk about What's really coming new in technology One of the things I like about the cube What's fun for me is I 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 in their mind And extract that from them And share that with the audience So sometimes I have to ask Around about questions 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 You can bring back a lot of things from a trip around the world But you can't always bring back customer data Because many customers don't like it When their data moves around Can I go now If you're going to do business globally You need a cloud that can keep your data Where it needs to be Today there's a new way to work And it's made with IBM First time on the cube, baby Rock and roll Five or six times I've been on the cube now Right, you know At first the guys are just fun to work with Pat, welcome back Hey, always a pleasure to be in the cube Hey, I'm about to go on the cube You never know what's going to happen A three-time veteran of being on the cube I hope many, many more Chad Sackich Chad, welcome to the cube Dave, John, it's great to be here, man I keep coming back because Great insightful questions from John And from Dave What face-melting action Have you seen here at the event And I know there's a lot of it It's a great vehicle to To communicate with a broad audience A lot of folks watch Great to have you back Good job All right, Craig Nunez A VP of marketing at HP Storch Thanks very much for coming on the cube When people mention the cube They're like, oh my god, I saw you on the cube And they're all excited about it It's an experience It's not just information They experience kind of what's going on there It's like real-time, it's like they were there That was like going to the gym Legendary IBMer, CEO of Symantec And now CEO of Virtual Instrument Great to have you on the cube So for cube to be here At a conference like this It's got 15,000, 20,000 people And sharing that live around the world That's consistent with the way the world is evolving So it's a wonderful meeting It's a wonderful meeting John and Dave are amazing I don't know how they keep everything in their heads The way they do It's a great format And we're obviously seeing that this A notion of real-time coverage And a real conversation Is what's driving us as a company And I said very seriously When the questions and the comments that we hear from them And from all the different guests here Directly turn into the products that we build Yeah, that was my first cube And I really enjoyed it There was the rapid fire of questions It made me think on my feet But they were very thought-provoking And really got me going on analyzing The greatness of Rista And the greatness of the cube as well John and Dave, the reason their approach works They're not just guys Reading down the question list Right, okay, next one Next one It's a conversation, right? And it's, you know, they're going to challenge you They're not going to settle for the marketing hype And the BS and all that stuff That the industry throws around Come on, you've got to hit them up on the HP question A lot's changing HP Some turmoil at the top, obviously Controversy They're going to hold you down to The real facts compare you To the choices our users have And have you respond to it on the spot Right, thinking real-time And so that's real talk Not just kind of a paper interview I'm John Furrier with SiliconANGLE.com And I'm here with Dave Vellante We are inside the cube The cube is our flagship telecast We go out to the events Extract all the signal from the noise And share that with you And great guest lineups We've got CEOs, CTOs With all the top executives Bloggers, thought leaders, venture capitalists I'm absolutely stunned By, because I know it demands 100% attention For these guys to be up there Talking to people about a wide variety Of technology topics I can't believe these guys can make it So many days in a row So I'm wondering how long They're going to go home And pass out for after this But it was incredible They just do a fantastic job If you're not having a conversation Then you're very scripted And if you're scripted Then you might be getting the right words But you're often not getting The whole meaning and the whole Depth of the conversation to the fullest extent I think this is a heck of a lot more authentic It comes straight from the heart and the brain Sometimes you might forget to make some of your points If you're not a real-time thinker But I think both from a participation And from a consuming point of view It's much more real Chris holds no punches So I've been on a cube a number of times And I think the interesting thing about Being in that particular venue in that format They introduced me as Hey, half doesn't pull punches Well, they don't either, right? They ask really difficult, uncomfortable questions sometimes And you can tell people And the positions and where they are In terms of what they're able or desires to speak of You can tell where they are on that borderline Between kind of just honestly answering questions Versus kind of glossing over them And I enjoy being there Because I don't want to say I'm outspoken But I honestly answer questions with the full intent Of being able to be respectful to the people That I bring solutions to, right? If I whitewash this crap You're going to turn me off every single time You see me on any venue, let alone the cube So I like being asked tough questions I like answering them honestly And that's a fantastic venue for doing it Otherwise you get on panels And you get a bunch of talk and hands blabbering at each other And it's worthless And this was my first time on the cube And I really got a chance to get to know John and Dave and they're really amazing guys I mean the knowledge that they come with The topics that they could talk about The people that they know And just bringing it all together In this live broadcasting forum It's just fantastic I mean I just love it I feel like a groupie or something In this environment The social environment The real-time environment where we're in People look through the marketing fluff very quickly And if it's not authentic Right, you know, they don't trust it anymore So in this environment I think it's a growing trend Yeah Location Location Here's the location that matters the most Here Or here Or here It's wherever this is To get customers to come here And stay here You're going to need an app that connects to all your systems So they can bank, shop, do what they need to do And you've got to do it fast Before the competition does It's tough out here You better be on the right cloud Today there's a new way to work And it's made with IBM Well, we often sound bites and blog posts But with the cube we go in-depth conversations And that's really what's great about it And my co-host Dave Vellante and I We really want to make it fun, exciting But more importantly Stract the data from the guests And extract that metadata and share it with the world So the future of journalism is in jeopardy, frankly Especially industry news, industry journalism Because so much of it is either focused on one of two things It's focused on client relationships Relationships with sponsors, inordinately so Or it's focused completely on the consumer and the audience And with no regard to what's actually happening No analysis on what's actually happening in the business This is, you know, nice because a lot of it Whether it's a lot of you tweeting video It's all about, you know, immediacy of kind of getting What happens now and doing this live And then obviously capturing it pretty quickly Like keeping you on the laws and other things Kind of keeps that live element there And, you know, when people are at the show Or soon after the show I think that's when they're most attentive to what happened So I think it's a nice fit for it Because, you know, if you write about it Or do something, you know, a week or two after the show It's not as interesting, not as time It doesn't stay on your mind, so Where we step in, the cube