 Okay, we're back here live ending up day one of IBM's information on demands exclusive coverage with silicon angle and wiki bond and constellation research Breaking down the day one analysis. I'm John Furrier and joining my co-host here in the cube Dave Vellante Of course as usual and for this closing wrap-up segment of day one We have Analyst and the founder of constellation research Ray Wang former analyst big data guru big software Heading up the partner pavilion kicking off all the plan around the world. You had your own event this month past month Things going great. How are you? How are you doing? We're doing great, man? There's a lot of energy in q3 q4 We've been watching people look at trying to spend down their budgets And I think people are just like sh worry that there's gonna be nothing in 2014, right? So they're just spending down we're seeing these big orders like tonight I've got to fly out to New York to close out a deal and help someone else That's basically it was a big day to deal that's going down This is how crazy it's going on and so it's been like this pretty much like for the last four or five weeks budget flush What are you seeing for the deals out there? Give us some of the examples of some of the sizes and magnitude is it you know, you know How are you up and run to get get some cash in to secure? What size scopes are you seeing up? Yeah I mean what we're seeing I mean it's anything from a quarter million in to like five million dollar deals Some of our platform we see at all levels the one that's really hot We're talking about this at the Tableau conference was the data vis right data vis is still really really hot But on the back end we're saying data quality pop-up. We're saying the integration piece play a role We also saw a little bit of content management But not the traditional content management that's coming in more about the text mining text analytics to kind of drive that I mean, I'm not sure. What are you guys seeing? Yeah, so Well, we're seeing a lot of energy. I've seen a budget flush We're not involved in the deals like you are Dave is but for me what I'm seeing is IT cloud is being accepted out, you know, this is not talked about publicly It's kind of a public secret is Amazon is just destroying the value proposition of many folks out there the cloud They're just winning the developers hand over fist and you know, I'm not sure pivotal with cloud found you even catch up Even open stack has really got some some energy around we're following that so it opens stack You got Amazon on the public cloud winning everything so money's pouring into the enterprise saying hey We got to build the infrastructure under the hood so you can't have the application edge if you don't have the engine So it's a hundred X price advantage and that's really a scary thing, but I think software gives IBM a shot here Yeah, we were talking about software. So you are seeing more. I mean if you've seen it eight Eight figure deals and big data, right? I mean it's starting to get up there So software love to get your take on soft layers. We've been having a debate all day about soft layer Josh McConaughey, what do you what's your take? You're saying it's a host thing Look at first of all, yeah, I love but it's a huge gap $900 million for a block of Of the data center hosting now if that's a footprint they could shave that and kind of give their customers some comfort I think that's the way I see it I mean just I haven't gone inside the numbers to see where it's going to be with the synergy is but like Where software virtualization is going and where everyone's going on with a virtualization the data center? I just don't see I mean I think it provides them with an option to actually deliver cloud services With a compression ratio and storage and a speed that they need to do to deliver mobile mobile data analytics, right? There's things that are there that are required. So it gives them an option to be playing the cloud Well, I just saw I mean in the news coverage and the small inspection that we did I did was I just it didn't Reek of software innovation. It's simply a data center large hosting big You agree they didn't really have a Before this was brilliant sunsetting the previous all the musical chairs deal kind of musical chairs before the music stops Get something was that kind of the deal no I think it's probably more like customers asking for something and they wanted IBM to have it Yeah, IBM works. It's an IRR play for IBM. I mean they're gonna make money on this deal It's not a tuck under deal 900 million. No, I know but they'll make money on it That's IBM almost always does with it. I'll leave it up to you guys To riff on how was your conference? Oh, thanks. Hey constellation Connecting Enterprise was awesome We were at the half Moon Bay Ritz. We had a 220 folks that were there senior level individuals One of the shocking things for me was the fact that when we pulled the audience on day one two things happened I would never imagine first thing is 90% of the folks downloaded our mobile app, which was like awesome, right? So the network was with them the knowledge is with them when they leave the event and all the relationships The second thing that really shocked me We knew we had really good ratios, but it was 75% of the audience that was line of business exacts and 25% IT It was like we were we didn't have to preach to the choir It was amazing and the IT folks that were there were very very innovative on that end So it was awesome in that way so a lot like the mix the mix here is much more line of business exacts The last we get Hadoop world is you know the t-shirt crowd right a lot of practitioners, you know scoop hive flume Hey, we got an almost everywhere But no this event is actually interesting IBM Iod for me is like I didn't realize this when I didn't I looked at numbers when we're doing the partner event yesterday And there are 13,000 attendees here That actually makes that the biggest big data in analytics conference bigger than strata bigger than a whole bunch of other ones And so I mean this is pretty much the nexus of well, what about open-world? C-world That's cloud means big data No, but so IBM's done a fantastic job of really transitioning this conference from sort of the eclectic mix of DB to inform Right yeah, and now it's like oh, what are the business things? I mean, what are we trying to save around the world are they telling the story effectively? It's a hard story to tell you got big data analytics cloud mobile in the middle and you got social business But then you got all this use case they have success stories They have customers that creating business outcomes are they telling the story effectively is it not enough speeds and fees is it too? What's your take the stories are there? We've seen like a hundred twenty two case studies from the business partner side We just haven't seen them percolate out and I think they've got to do a better job evangelizing stories But what's interesting is like there's that remember we talked about this data to decision level there's that data level That was IBM right here's the database here's the structure here's the content management Here's the unstructured stuff. This is where it sits then there was that information management level Which that they started to do which is really about cleaning the data connecting that data Connecting to upstream and downstream systems getting into CRM and payroll and then they got to this level about insights Which was all the Cognos stuff right so they've been building up the stat from data decisions So they got data to information information to insight and then we're getting to this decision-making level Which they haven't made a lot of the assets or acquisitions there, but that's the predictive analytics That's the cognitive computing you can see how they're wrapping around there I mean there's a lot of vendors to buy there's a lot of opportunity out there There's a lot to connect and they've been working on it for a while But I got so I got to ask you how they do and what's your report card from last year this year better better storytelling better Messaging I think the stories are getting better, but we're seeing them in more deals now right before we'd see a lot more It'd be SAP traditional SAP Oracle, you know kind of competes And a little bit of IBM Cognos now we're seeing them in a lot of end-to-end deals and what we're talking about It's not like IT deals. These are a line of business folks that say look I really need to change my shopping experience. What do you guys have we see other things like you know the fraud examples I didn't he was talking about those are hilarious. I mean those are real you see them in every place, right? I mean even with Obamacare right there's gonna be massive amounts of fraud They're gonna be places that people are gonna want to go in and figure out how to connect or correct those kind of things Yeah, so so seeing the use cases emerge. Yeah, and in particular let me last week in Dupworld it was financial services. You're talking risk. You're talking marketing. You're talking fraud prediction and forecasting Yep, the big three and then underneath that is prediction predictive analytics So, you know, that's all sort of interesting. What's your take on on Amazon these days? You know they are crushing it on so many different unbelievable right on four billion this year, maybe It's it's when you build a whole company which is basically on the premise of hey Let's get people to offset our cost structure from November 15th to January 1st I mean, it's pretty amazing what you can do. It's like everyone's covering for it And even more funny is like they're doing it in the physical world with distribution centers I don't know if we talked about this before but what's really interesting is they've got last-mile delivery UPS FedEx DHL Can't cat can't handle their capacity So now the ability from digital to physical goods they've got that and Bezos goes out and buys the post So he can make the post for example a national paper overnight again He can do home delivery things that they couldn't do before they can take digital ads bring that back in and so basically what they're doing on the cloud side They're also doing on the physical distribution side. It's amazing isn't it? They're almost they're pushing towards Sunday delivery, right US Postal Service going to five-day deliveries sort of the different directions Amazon Amazon's gonna be the postal service by the time they're done and we're all gonna subsidize it so So I gotta get your take on the the oracle early statement Larry Ellison said Were the iPhone for the data center that's his metaphor a couple a couple of Oracle open worlds ago Now you got open stack and though we kind of laugh at that but but Amazon is like the iPhone, you know, it's disruptive It's new it's emerging like Apple when it was coming out of the ashes with Steve Jobs Oracle I think trying to shoehorn in on the iPhone positioning But if open stack if everyone's open and you got Amazon here There is a plausible strategy scenario that says hey these guys can continue to To put the naysayers that on the side of the road as they march forward to the enterprise and be the iPhone They've turned the data center into an API. So so we got the data is they're lock-in, right? So this some lock-in Apple has lock-in So is that lock-in? What's your take on that scenario? You think it's you know in the open ecosystem world? They're all false open But you've been you've been a student of this for a long time, right and probably one of the things that you're seeing is that It's not about open versus closed. It's about ubiquity, right? Microsoft was a closed evil empire back ten years ago. Now. It's like, oh, they're the standard, right? It's like, okay, they're harmless Google was like open and now they're the evil empire, right? It just depends on the perception and the issue really is ubiquity Amazon's got ubiquity on its side It is pushing and they're winning the developers. They're winning the developers. They got the ecosystem. They got ubiquity They've got a cost structure. I mean, I don't know what else could go wrong They could get SLAs maybe and once that happens, I don't know what is Amazon's blind spot in me SLAs I think lumpy lumpy performance. No one wants lumpy, right? Who's got better public public cloud SLAs than Amazon? Well, I think about what he just said That's a public cloud statement not an Amazon. Let's crunch big data computation December 15th You tell me what those SLAs are. I want to know You better do that on premise I just don't think that people are Forecasting Amazon the enterprise properly and you just set up the Washington Post that is a left field move We can now look back and say okay That makes sense Amazon can continue to commoditize and disrupt and be innovative then shift and have some sort of on-prem play Oh, then it's over right then it then gets so they surrounded the castle But they really don't have a great on-prem play. They have no on-prem But they could they could get one. They could they wanted to but I think they want you But I think with them what they figured out was let's go build some cool public service get everyone else to subsidize our main offerings Right, it's basically ultimate shared service everyone subsidizing Amazon's destruction of their business, right? So if you're Macy's why the heck are you on Amazon, right? You know if you're competing with them, why the heck are you on Amazon? You're basically digging your own grave and paying them to do it It's amazing. I mean, that's that's the brilliance of this Netflix goes and they brag about it But the compute power is great. Okay, great, but you're subsidizing Amazon's for you know compute power So Ray great shot great great to have you here Congratulations on your event constellation research awesome successful event You just had last month on top folks in you doing a great job with your company And the end the day out today in the last word tell the folks What's happening with IBM? What do you expect to hear from them tomorrow? I know you're not gonna be in yet another thing You had to fly to but what is IBM with what's the trajectory coming out of this show for IBM? What's your analysis? I think the executives have figured out that the important audience here is really the line of business leaders and to figure out How to do a couple things one democratized decision-making the second thing figure out how they can actually make it easy to consume IBM at different Entry points, and I think the third thing is really how can we focus on improving data visualization graphics? I think you'll see something about that Ray Wang on the Cube Cube alumni tech athlete Entrepreneur new his new firm not new anymore. It's a couple years under his belt doing a great job But three years old three years old Congratulations, we'll be back day two tomorrow stay with us here exclusive coverage of IBM information I'm John Furrier with Dave Vellante. This is the Cube. We'll see you tomorrow