 the cloud right away. That ability to move the cloud in a way that customers are defining it and driving it and do it in partnership with tools that they're using today and sort of driving for the future, that's really what Azure brings to the table in partnership with ServiceNow. Live from Las Vegas, it's theCUBE, covering Knowledge 16, brought to you by ServiceNow. Here are your hosts, Dave Vellante and Jeff Frick. We're back, wrapping up day two with Jeff Frick and myself and we're here at Knowledge 16, SiliconANGLE. We do, I don't know, 60, 70, 80 events a year, maybe more, maybe 100 events each year. We come to big events, medium-sized events, super small events, we do on the grounds. This is one of our more exciting events. I'll tell you right now, Jeff, we've always said ServiceNow Knowledge is one of our favorites and the reason is the customers. You talk to customers that they're passionate. I remember the first knowledge we were at four years ago, we were like blown away by the customer passion. If anything, it's even increased. You see a very strong mix of CIOs all the way down to practitioners. You get developers, events within an event, very robust, rich show and the thing that, I think makes this show unique is a couple things. One, the content is really driven by the community. Even though the keynotes and the general sessions are the execs, all the breakout sessions are really customer-driven. The second thing is the passion for features, new announcements, new capabilities. Tomorrow's going to be the big day. Fred Luddy, Pat Casey are going to be up there unveiling some new cool stuff, new user interface, whatever it is, it'll get rave reviews. People will be cheering and they really have an understanding of what their customer base wants. Very client-driven, reminds me a lot of Amazon, not really focused on the competition, really focused on the customer. Today we heard about customer service, extending service management via a customer service context throughout the organization. What's broken with customer service and how service now plans on helping fix that. I mean, that had to resonate with virtually everybody in the audience. We all have our customer service horror stories. And the other thing Dave, I think too, as you said, we go to a lot of shows. When you get really big shows, it seems to be less about the collaboration between the participants and really sharing knowledge with other practitioners. And it kind of moves into a vendor show a lot of times. And you pointed out that this show's now bigger than EMC World, which we were at a couple weeks ago, which is amazing to me to think about. But at the same time, it still feels very much like a practitioner show. Maybe that's because we're spoiled because we talked to so many of them on this set. But it still feels like it's very collaborative. It still feels like we're sharing this practices. It still feels like a smaller show. Doesn't it? Even though it's, I can't believe it's 11,000 people. Right. I mean, that is kind of unique. I mean, it doesn't feel bigger than in the EMC World, even though it is by a couple of thousand. I don't know what that is. I mean, I just, it's just really well organized. I think it's the events within the events. Maybe that's the secret. You know, I was at the CIO decisions discussion conference event within the event, whatever you call it, last night, just to see Robert Gates. Very intimate, right? You see the developer hub over there. Right, they got the hackathon went until like midnight last night or later. I don't know. I'll let that win. And it's not like, that's not the case at other shows. It just, I don't know, somehow the flow just works. Right. So, let's see. Today was really interesting. We had a lot of the practitioners on a lot of CIOs on today. I got my security agenda, you know, knocking down the little research initiative that I have going. It just fits perfectly with what's on the CIO's mind because much of their time at board level discussions is spent on security. And the board is more interested these days. They're, you know, talking audit, talking risk management. One of the takeaways is CIOs clearly said to us, number one, there's a recognition that it's not if it's when we've been hacked. We understand that we're gonna continue to get hacked. We'll do what we came at the perimeter, but we are investing more in the response. Second thing is, is organizations are beginning, as a best practice, to treat security and response to security as part of an ongoing business continuity plan, not as a bespoke one-off thing. The third thing that I took away from those discussions today was that the regime for security is not some kind of stovepipe organization, technical organization that needs to own the problem. It's really a team sport. The entire organization has to own it. One particular challenge for organizations that we've been surfacing is the ability of an organization to value its data appropriately makes it, or its inability, makes it difficult for them to appropriately secure their assets, their IP, their data, their physical assets, et cetera. So it's fundamental to get the business involved to be able to do that. And then of course, automation to be able to respond to all that stuff that you've got to deal with. And I think ServiceNow's approach is a good one. Pick whatever tools you want for dealing with security, whether it's RSA, FireEye, Squirrel, or whatever. Do that, but we're going to help orchestrate that whole thing. We're going to help make sense out of that mess. So that was a lot of good information of what we gathered today. Risk management, risk management, risk management. I'm sure a few years ago it would have been the moats and the walls and the stop and now it's just risk management. And how quickly can we identify a threat? And is it the CFO's laptop that's been compromised? Or is it some new associate that doesn't necessarily have the sensitivity of the information on their machine? How fast can we get to it? How quickly can we isolate it? And as you said, Dave, it came up again today. First question's got to be, what do we need to secure? What assets do we need to secure on that priority versus lower priority? So it just came up over and over and over. Risk management, the other thing that came up is that the threats are constantly shifting. Don't tell me what you told me last quarter. Tell me what's happening now. Real-time. Because it's such a dynamic situation. So it's a very different approach as opposed to the build the wall. It's like the imaginal line versus just being prepared. The other one I thought was interesting, Dave, from Oshkosh said, is putting all the systems in place while the seas are smooth, the trust, the relationships, the reporting, the contingency plans. So then when you hit the rough seas and you got to react, you've already kind of built the trust, you've built your processes, you've kind of scripted it. It's very much like doing fire drills, if you will. Yeah, and you make a great point about the CFO versus the guy in procurement. It used to be, or still is in many organizations, security's kind of this one size fits all. We apply the same security to each asset. We deal with it sort of the same way without really an understanding of the severity based on the value of the asset. So that's something I think ServiceNow is nailed. The other thing, when we go to these events, we always try to test the messaging from the keynotes with the practitioners that we talked to around the event, but ideally on the cube. And I got to say, I think ServiceNow is nailed the messaging. When you talk about extending service management across the enterprise, when you talk about attacking the customer service problem, when you talk about security, rethinking the way in which you approach security, it's resonating with the customers. It's resonating with the practitioners. They're not saying, well, yeah, well, maybe we'll get there in a couple of years. They're like, no, no, we're heading in this direction. We're actually doing this. We're bringing this, or in some cases, no, we've done this already. We're ahead of the game. We beat the announcements. And so that's a sign that a company's messaging is aligned with its customer priorities. So many times at these events, the messaging is very high level, sort of PowerPoint, the ink just dried. So high marks on that. Express is still something I've not heard except on the cube, you know? And I think- And we want it. I'm disappointed because there's a small company that, you know, SMB Play, we would love that, right? I think Salesforce has nailed that. And I think the reality is for ServiceNow, there's such a huge opportunity with the Global 2000 and other commercial accounts. Although, you know, we did talk to Dan McGee. He said, well, it'll work. Let's go try it. That's not their focus today. Maybe that's the next TAM expansion. So many opportunities for this company. You know, still under-penetrated in the U.S., way under-penetrated overseas. New modules coming out, new capabilities. It's just, you know, the train continues. Yep. And we've got some numbers today, Dave. We've got some good numbers that I want to bring back up. Again, Dave from Oshkosh, as you asked over and over, did you take anything out? Did you replace anything? They replaced 36,000 processes by moving everything onto this unified platform. And I don't know how many they have now in their ServiceNow instance, but, you know, a real number. The Hartford, you know, basically a hard cutover of 30,000 seats. It's a big number. And that's a big project in an old conservative, you know, insurance company. I thought that was pretty impressive. Even stone brewing. Just keeping the beer coming out of the brewery. 2,200 items. And they've gone from, they now have 50% of their activities are planned maintenance. So they've really shifted. We talk about being prescriptive and not being reactive. They're executing that and they're going, they're tripling their plants. Tripling, including adding one in Munich, which is both Europe and Germany, both difficult things to do. So I think we got some good numbers that... April Carter, three months. That's right. Three month deployment. I'm glad you brought that up about retiring systems. That's a continuous theme that we've heard. And we probe for it a little bit. You know, usually when we ask that question about what you get rid of, you kind of get a fuzzy answer, but people are giving us concrete answers. I got rid of my, you know, previous ITSM system, or I retired my project management system. I retired my asset tracking system. So so many of these application portfolios in these companies are enormous, you know, thousands and thousands of applications. You can't even, you can't even analyze it. You have to put it into buckets and suites in order to analyze it. And so companies never get rid of stuff. We call it GRS, you know, in the Wikibon days. GRS, what can you get rid of? Because IT never gets rid of apps. It always, you know, extends the application portfolio with whether there's one or two users. So that's something that is, I think, a real positive trend. You know, that kind of consolidation and rationalization of the application portfolio. It's kind of a side benefit of ServiceNow. Yeah, just a few notes I have here from Chris, the new CIO. And again, talk to security. He said it's about the risk, the likelihood, and then how do you mitigate it, and what are the time frames? So again, kind of setting up a framework in advance for when it happens, how are you going to respond, how are you going to limit the damage? Bart talked about if some person in a remote office clicks on a piece of malware, you know, how quickly can he get that machine offline before it becomes 30 machines, 80 machines, 100 machines when he doesn't have anybody there. So an interesting use case. And again, with Chris, he talked about his six strategic themes. Then he rattled off about 10. He's a busy guy. But my main takeaway that he talked about is velocity. Velocity of the business. How can we run everything faster? And he pointed out that most things, or almost all things, are powered by some IT process under the cover. So how can you onboard faster? How can you get his financials out faster? And he gave some really specific examples. I didn't write them down of, you know, how many hours they cut out of their quarter end, and really thinking about velocity, velocity, velocity as a competitive advantage across all types of activities. Yeah, and I think, you know, Chris, the new CIO, key part of the scale and growth strategy for the senior management of ServiceNow, they need that capability, that core infrastructure, you know, at scale. It's like I've said a number of times, Frank's out of that Silicon Valley mode. It's all about scale, and he's, you know, it's the cloudification, and he's the guy to really drive that. And he's got the vision, he's got the execution ethos, and I think Chris is a key part of that. Coming in from JDSU, you know, he's got some chops there. So, yeah, and just, you know, he had a lot of great things to say. It's funny, because you kind of queried him on, you know, how much time is run versus... This is grow versus transform. Right, and then immediately think of companies like Google, you know, that have kind of dedicated, they want people to use, you know, 20% of your time to work on these other projects. But he said, we need to do this, we have to squeeze every bit of automation out of the run that we can in his pursuit to 50-50, which I thought was pretty interesting. And the other thing I really liked that he said, is, you know, set an aspirational goal. Don't give me a little goal, give me a big goal. And if you think in terms of a big goal, it's going to change the way that you address the problem. Probably a little slower, sit back, think a little bit deeper than looking for these marginal improvements on some of these big initiatives. Yeah, he said 10%, you know. Man, give me 70% plus. Give me 70, right. And oh, by the way, make it on time and on budget. He said their goal was 95% on time, on budget, which is table stakes. And then you got to be on benefit. On benefit. Yeah, I hadn't heard that one before, I like that. What you were saying, 85% of the projects are on benefit, which is astoundingly high. I mean, I don't know if this has ever been studied that well, but when I was at IDC, we used to use a number of 70% of the projects failed. I don't know where that number came from, somebody researched it, maybe it was just an anecdotal thing, but nobody seemed to argue with it, you know. So if you're at 85% on outcome, on benefit, and you're at 50% run the business investment versus grow the business and transform the business, you're doing way better than most. I mean, that's top 5% tile. But as he said, it's kind of in the ethos of the company is to operationalize and automate as much as you can. He's got all the tools at his disposal and, you know, eat your own dog food, drink your own champagne, whatever you want to say. You know, he's really trying to put that into practice that's in the show, the best practices for the customer. ServiceNow skiing and powder, making, they're looking good. The churns are looking good. So, all right, chef. So big day tomorrow, you know, looking forward to that as well, you know, more of the same. Tomorrow we're going to hear more about the platform and really going to geek out with Fred, which is always fun. 11 PM with Fred, right for the keynote. Fred Lutty, the founder of ServiceNow and the sort of inspiration behind the innovation of this platform. So that's always a big day, you know, it's great. A lot of these events by the third day, you know, kind of Peter out, you know, this is, you know, like Larry Ellison, you know, Oracle Open World, when he speaks, everybody jams in. Absolutely. You know, a lot of enthusiasm. Unlike when Larry Ellison leaves the stage and everybody leaves the auditorium, people will stay to hear the rest of the keynotes here. But we're looking forward to it and stoked for tomorrow. It'll be fun, don't miss Fred. We have a lot of great guests on theCUBE. He's one of the best. Yeah, absolutely. All right, well, thanks for watching everybody. This is RAP on day two here at ServiceNow Knowledge. This is theCUBE. Check out siliconangle.com for all the blog posts, you know, analyzing the events, all the news. Check out wikibon.com for all the research. CrowdChat.net. We'll see you tomorrow.