 Okay, welcome everyone to the Cube in Orlando, Florida. I'm John Furrier, the founder of SiliconANGLE.com, SiliconANGLE.tv. We are at SAP Sapphire for the third year in a row. We're coming up on our two-year anniversary of the thing called the Cube, which has been our flagship telecast for going to the top tech events, extracting the signal from the noise. Dozens and dozens of events we've done over the past two years. Over 600 people we've interviewed had a bite of content. I think Mark Hopkins says we could run eight weeks straight if we just hit the play button on reruns. So we're excited. We're here in Orlando, Florida where SAP 2012 is going to announce Sapphire 2012 and announce a lot of new announcements around Hanna, CyBase, and the keynote tonight. So I'm John Furrier, the founder of SiliconANGLE.com. I'm joined by my co-host. I'm Dave Vellante of Wikibon.org, and John is going to be back here at Sapphire. This is our third year at this event, and really was one of the second event we did together and really kicked off the Cube's amazing growth. Well, the thing, Dave, that's happened is that we came to the first SAP two years ago with our first kind of rev of what we thought would be very cool, quality, independent programming. And I want to say to everyone out there watching, we're going to bring you wall-to-wall coverage of SAP Sapphire 2012. The CEOs are going to come on board, all the senior executives, people from VMware, EMC, SAP, their customers, thought leaders, bloggers. We're going to have wall-to-wall coverage starting today, eight hours, ten hours tomorrow, and then Thursday. I mean, Wednesday we're going to wrap it up in the evening. And we would not be able to bring this great independent program. It was not for the support of and the underwriting of support of SAP and EMC. Those two companies have been great in supporting our mission of the Cube. We're going to bring you in-depth, independent coverage of these tech events. Dave and SAP and EMC, great support for us to have from them, financial support, and letting us do our independent commentary. You know, John, and you mentioned those two companies. The first Cube gig we ever did together was EMC World. And it was a good show, but totally different crowds, isn't it? I mean, what a stark contrast. The EMC World is a lot of infrastructure people. SAP, it's all about business. Everybody hears in suits. You know, the attire is business. I mean, usually they say attire, business casual. Well, it says attire, attire, business. They want you in a suit. And so I know it's hard for you from the West Coast coming in, you know, Ty. Well, I mean, it's the West Coast. You know, I didn't have to wear a jacket. It's the first night, but SAP is a big player there. It's about business. Yeah. And you're right. But the thing is what's going on around them is the world is changing. Big data. We've been covered for many years now in storage and clouds, all coming together with mobile and social. And it's just really a phenomenon. It's really changing the big, established plays like SAP, certainly changing the businesses, whether it's financial health care or large enterprise, to new hyperscale companies. And the fact of the matter is, is that this week is Sapphire 2012. It's also the week that Facebook is going public. And Facebook IPO is a watershed moment in the industry. It's going to happen on the 18th this week. I'm expecting the shares to go crazy. I'm in Palo Alto and here's fireworks on last Friday going off because that road show ended where it has something going to close out their shares a day early, two days early. Those are the accidental billionaires shooting off fireworks. Is that the deal? People in my street are going, oh, yeah, house is going to double in value. The bottom line, Facebook's IPO is a testament to the fact that our world has changed. I call it the Netscape moment. No one in the mainstream press is writing about this. I'm talking about it for the first time. It's the Netscape moment. What Netscape did with their IPO, set in motion a historic bubble called the dot-com bubble. And that was the beginning. Facebook right now will have that moment. Yeah, I think you're right, John. Many people may not remember. It was 1993, 94 timeframe in Netscape. I don't know if you're out there at the time, but shortly thereafter you moved out there and real estate prices went through the roof. And it was like the first of the big bubble waves post the 1980s. It was the internet. It was the inflection point for the internet. I think what Facebook's doing is an inflection point for a new architecture where the user experiences are different and that's driving things like SAP Sapphire. So although Sapphire 2012 is not as sexy as they say on Facebook IPO, but it's very relevant because businesses are running their architectures on SAP. And the fact of the matter is Cloud Mobile and Social, our editorial at SiliconANGLE Wikibon is changing the value chains of businesses. And big data and mobility and social are at the heart of this disruption. And it's going to be an entirely new industry. We've talked about this on theCUBE before. You mentioned Netscape. We've also talked about Google's IPO, which happened post-bubble and sustained obviously a lot of tech innovation. I think Facebook could even be bigger. What are your thoughts on that? In terms of the IPO? Yeah. I think they already are bigger. In terms of the after effect, the aftershocks of the IPO because Google, as you remember, it was in an environment from an IT standpoint that was not very exciting. It was post-bubble. Everybody was kind of down a little bit. And obviously Google provided some momentum, some significant momentum. Right now Facebook's IPO is going into a bubble and I think it could be more Netscape-like than perhaps the Google IPO. Yeah, well that's a good point. I think you could look at two analogs. You say on one hand it's Netscape-like, where it's euphoric and relevant. Obviously the browser. But the browser didn't last long. IE came over with their power and took over that business. On Google, on the other hand, post-bubble had a real sustainable operating business that created billions and billions of dollars in revenue through their pay-per-click advertising, which is actually a bonafide business model. Facebook does not have that Google effect. They just have a massive footprint of users, they don't have that magical business model established. So you're hearing the Facebook executives say, oh yeah, we'll figure out the business model. And you know, there's a kink in the armor around the fact that it could come quick and go quick and that they could lose just as fast as Netscape did. So obviously we talked about that on the Cube with their buy of Instagram for a billion dollars was absolutely a defensive move to make sure they don't lose mobile. Facebook is weak in mobile. It's not just us talking about it. Industry pundits and experts are coming out of the Woodward saying that mobility is weak for Facebook and that's a threat and there's no ad model yet. So those two things right there make Facebook a risky proposition long-term. But I think the IPO is going to pop like crazy. I think it's going to be a huge wealth creator. I think it's going to go up through the roof. And these trends that you're talking about in social have ripple effects into the enterprise. We've talked many times in the Cube about the consumerization of IT. A lot of IT organizations, I would estimate are anywhere between five and ten years behind the large internet giants and maybe even further, maybe they'll never get there. It's hard for IT. They're supporting many hundreds, sometimes thousands of applications whereas guys like Google come in with a clean sheet of paper and can build a highly homogeneous infrastructure and start from scratch. And so CEOs and business executives go home in the weekend and go, how come my Facebook and my Gmail is so easy but my IT at work is just so hard? What's the deal? And so that's put a lot of pressure on IT organizations and it's rippling through to companies like SAP who are known for their complexity, right? Yeah, I think we've talked about this on our new publication, DevOps where there's a developer focused right now in the business of cloud and mobile. I think you're going to hear from SAP a huge discussion around mobility, you heard a couple of announcements out there today about apps. Those announcements are quite frankly boring in my opinion, but I think that's just a boring, nice business model for SAP where they want to create this app store environment. You've seen those, the app store out there and I think the fundamental thing that you've seen from SAP is relative to the Facebook and these trends is they had a couple things going on from their core infrastructure. They got the database focused. They said they want to be the number two database by 2015. They got HANA, they got some integration points around big data. But if you look at some of the things they're doing in the ecosystem around startups they still have SAP ventures which we're going to have Niko Markovic on to talk about some of the things they're doing in SAP ventures. So they're investing heavily and they also have a new group that Vishal Sikha started up. It's a startup incubation program in Palo Alto and they are absolutely putting out the entrepreneurial manure out there because they want apps to pop out out of nowhere. And I think this is the DevOps angle where these rapid programming environments need a back end infrastructure. So you see SAP absolutely betting on mobile they're betting on the mobile ecosystem for the enterprise they think that consumerization of IT is going to happen. I think that's a really good and astute comment. Yeah, so for those of you who don't know SAP competes in the $250 billion software market the enterprise software market is a $250 billion company they've got about a $75 billion market cap so they traded about five times their revenue. Not bad for a $13-$14 billion company that's growing at 10-15% the high end of that range a year. At the same time they're going through a transformation they've got cash in the bank $5-$6 billion in the bank they've made some moves that we'll talk about recently with success factors but they've had to go through a transformation of complexity to roll out SAP supply chain to 100 countries and do the whole financial suite probably cost an organization $3-400 million it's big bucks a lot of services involved we talk a lot in the cube about services angles that's why you see companies like Accenture here and Deloitte and CSC because it's a gold mine for them so a lot of complexity it's also why you see SAP partnering up with people like VMware and others trying to simplify their complex infrastructure so that's sort of the backdrop here and SAPs had to make some moves they bought Sybase to get into mobility and to get into database they bought business objects to compete in the BI space they recently bought success factors that we talked about off camera I think you told me it was $3.4 billion I thought it was higher but you're right it's $3.4 billion so making some moves into mobility cloud but their core business is really still supply chain that's doing a lot of maintenance on supply chain there's competition out there at work it's interesting the success factors acquisitions 3.4 billion the people that I know that talked to me about the application space it was a rich price to pay but I've said paying up for companies that are there is better than R&D because R&D is very risky but what I'm told is that specifically success factors are very narrow around talent management so think about the old people software it's a core HR now SAP has core HR too but it's big and it's old, it's not cloud it's not self-service all that stuff they get from success factors but it's very narrow around talent acquisition or talent management so you want to keep your best people you want to incent them to be on mass at companies like Oracle for example or even HP to a certain extent so you want to retain that talent well that's what success factors is all about but they've got an integration challenge here so it's going to be interesting to see what happens you mentioned work day work day is like people soft plus success factors rolled into one so it's going to be interesting to see now you know their CEO I know Dave Duffield they're going to do an IPO later on this year so that's going to be really interesting to see how they compete where does it do it very well but SAP making some moves we had a Hagem and Schnabe last year you had an interview with McDermott a couple years ago so these are some of the things that we're going to be asking them about what's the strategy, what's the plan I think we're watching too to some of my notes here to watch from last year Dave's success factors going to drill down I think it's going to be a good not a bad deal just like side-basers it was a good deal they said they want to be number 2 in the database market by 2015 let's see how they go on that one you know what Ellison's line on that is that's like knee-playing against Kobe let's see but I think in fairness to SAP they've got a different angle and that angle is mobility yeah mobility is a different but Hanna adoption I want to see literally the meat and the bone on that one big data strategy obviously Jeff Kale and I have been in Palo Alto multiple times meeting with their top brass on what the big data strategy is and clearly it's side-base IQ and Hanna in the real-time analytics space and some other complex event processing kind of stuff and then I'm interested in watching the SAP Ventures moves they've been very quiet and now we're going to start to see their strategy relative to the applications because at the end of the day they can enable development within the consumerization of IT trend line inside the companies that's a winning strategy and that's a game-changer for Bill McDermott in my opinion to use his word I think that's interesting I'm watching that and I think no one's really picking up on that data here and I talk to everyone about the developer angle I think you're seeing them telegraph their play and start-up focus and they say hey we want to fill the app store because if they don't have an app store they're dead I think, John, so you mentioned Hanna I would throw in cloud slash SAS and mobility, I mean those are the technical angles of SAP and frankly SAP customers are starved for cool technology you know let's face it there's not been a lot of it in the last decade and so they've had to go out and acquire some of these companies and they've done a good job of that one reason why Hanna is so exciting to the customers that you talk to here because it's cool tech and it's going to be game-changing in terms of application performance so I'm also very interested in learning about that uptake last year we didn't hear much about big data from SAP you coined the term fast data and then subsequently after Jeff Kelly put out the report on big data we heard a lot from SAP on big data hey we're big data too but you coined the term big fast data and that's really what SAP is all about I mean I just talked to one of their customers here and he's saying hey we're not in the petabyte scale but they still have terabytes and they're moving a lot of it around in real time and it's a challenge for them so that's fast data, it's not necessarily the biggest data but they're doing things differently they're moving it in and out of memory and cache and sometimes the cache layer is a little too small for the amount of data they're moving around so as David Floyd is pointing out in his work on wikibon.org a new architecture is developing and it's really about storage meets database slash processor so very cutting edge time absolute no doubt in my mind a redefinition of of tech inside the enterprise because it's already happening within cloud so totally see the consumerization of IT in play here but it's not what everyone thinks of this data it's a different kind of woman so we're going to watch that well I think too John to your point about you know the size of the data it's not an attribute of big data there are other attributes but to that point a lot of the projects like Hadooper off to the side as you well know you know they're sort of back office or back room or experimental I think what you're going to see over the next couple of years is that that big data play those devices, those machines that are generating on this big data are going to be direct feeds into the operational data of the company and technologies like HANA and in-memory technology is going to be able to absorb the key nuggets of that information I think you're going to see an integration of that big data and those operational systems and that bodes well for SAP and whether it's big, kind of big or super big there's money to be made there well we're here in Orlando folks we are the Cube, SiliconANGLE.tv's coverage of SAP Sapphire 2012 this is just the beginning which is our kickoff, John and Dave set in the table for what's to come which is a slew of announcements clapping on all the new customer wins we will vet the signal from the noise and share that with you here on the Cube we're going to have a lot of great guests we're going to go to parties, we're going to get deep within SAP and like usual we're going to bring some great guests and knowledge to you our independent coverage here from SiliconANGLE would not be possible without the generous support of SAP and EMC those two companies have been absolute great supporters of social media, social knowledge and it's things like Facebook's IPO that makes it possible for this new generation of social technologists want to thank SAP and EMC for that support Dave, Orlando to the action is but outside in the press Facebook IPOs come in this week but also the scandal of Yahoo has been rocking the tech world and if you've been online the past week you can't have not missed the fact that the Yahoo CEO Scott Thompson in a botched, borked bio and he lied in his resume said he had a CS degree and for the folks out there I actually have a CS degree so and I can prove it is it on your resume? it's on my resume actually I actually went back to make sure it was actually accurate but the CEO of Yahoo in case you missed it basically lied on his resume lied on his bio for over a decade President of PayPal began the CEO of Yahoo and he got caught by the activist shareholder of Yahoo who was in a proxy fight with Yahoo the CEO of Yahoo resigned today or stepped down or was fired reports from Carish which run all things D Dave is saying that he was terminated with cause which means he gets no severance now there's reports in the Wall Street Journal that he notified the board that he had cancer so obviously he's jockeying for a settlement and to add another weird twist to this whole saga is that last week he said publicly that it was a mistake and he blamed it on a recruiting firm it was a struggle whatever it's called and they produced the resume where he actually lied on his resume so he's gone I just you know why would you write it I can kind of understand a busy executive maybe some overzealous underlings start to dress things up but I I think executives it's their responsibility to look at their resume and think in profile people I mean come on it's your brand it's your personal brand he lied on his resume 1979 computer science degree they didn't have a computer science degree oh I mean I just people are going to find out first of all I think this like hydrogen struggles these firms to get the guy that lied on his resume they produce the smoking gun which means you can't trust them advocate lying for the sake of trusting a third party but the firm to defend themselves threw him under the bus so you know I just think recruiting is just another area that big data it will disrupt to dying business and that was one weird thing that jumped at me but I actually like the guy and we know people that know him and he's a good guy I don't know what he's thinking it's just one of those things yeah just a mistake just a little bit of his reputation and obviously a nice big severance okay we're going to take a quick break and we're going to be right back we're here in Orlando Dave Vellante here with John Furrier that's me we're Sapphire 2012 we'll be right back the cube is this conceptual box if you will and we bring people inside of the cube and then we share ideas but those ideas don't stay inside the cube we explode that idea to grow and grow and it does so we really try to own the whole enterprise technology space and that's what we're all about we take analysis we take publishing we take news and we take live TV and we combine it together in a product and share that with our community no one's doing what we're doing what we're doing in my opinion is the future of media future of television, future of the internet video is an amazing powerful product so we work in what John and I talk about as a data model people always say to us, well how do you guys make money we sell knowledge, we sell information, we sell data so the problem that we are, that we identified is about what we call big, fast, total data anybody can analyze a gigabyte of data if you do a thousand gigabytes that's a terabyte of data you take a thousand terabytes that's a petabyte of data a thousand petabytes that's a zetabyte of data so you are talking big data lots and lots of data and can you analyze it in real time as it comes in, right? the cube is like we call ESPN of tech because we want to cover technology like ESPN covers sports John has a great vision for what's going to happen next in tech and so John is sort of that alter ego of mine that lets me see the future Michael Sean Wright, Mark Hopkins we've got Kim here today we've got a team of people on our news desk by Kristen Nicole so she has a team that helped feed us the news of the day, what's happening, the analysis we have a team of analysts they feed us information about what's happening and then really importantly we have a community a big community of many hundreds of contributors we love technology, we love the innovation and that's what we do, we want to create a great user experience and in order to do that properly, you've got to really really prepare the cube for the past year that we've been in operation has been very very successful and companies do pay us to come here I think the companies who bring us in with the cube get two things they get a third party independent resource to provide knowledge to their audience who are seeking it this demand for the product and also complements their existing media we're here at an event and the company has their own TV organization and they have to pay a premium for that so we complement that by offering an objective, organic, third party independent analysis of the event that's why the top executives come in here the cube is a comfortable place it's a place where people feel happy and are happy to share their knowledge with the world and we're happy to be ambassadors of that knowledge transfer my entire career has been really built on relationships and talking to people and extracting knowledge from people largely in a belly to belly private forum, what the cube does is it explodes that we've reached millions with the cube and it's real time it's live TV so you've got to be quick on your feet but you learn very fast and then you iterate from that learning so John and I play off of that and we're constantly trying to up our game S.A.P. Sapphire 2012 I'm John Furrier the founder of SiliconANGLE.com I'm Dave Vellante of Wikibon.org and John this is our day one of our third year here at Sapphire it's all about business, it's about enterprise software and it's about transformation cloud and SaaS, it's a great conference yeah I think one of the things about S.A.P. is that I've watched them transform over the years over the past four or five years they went from kind of down and out struggling on the downwards slope to rebounding and I think a lot of that has to do with one, Marka turned around but two Vishal Sikha invested heavily in SOA and back on the early web standards when Web was in the bubble he was really investing heavily and when it paid off and I think with their strategy coming together with the co-CEO's working out well we've asked them many times, we've gotten close to them, we've talked to them, it's working so I think S.A.P. has got a little magic going on here it's a classic big company they're the PR team shoving us a lot of stuff to look at and pedal to us but for the most part it looks good, I like what I'm seeing I love the focus last year they had a mobile that paid out, what I want to see here this year is the proof I want to see the mobile, I want to see the apps I want to see real proof points I think about what does S.A.P. have to accomplish at this event, it's like a pregame what has to happen for team A or team B to win and to me S.A.P. has got to demonstrate to its customers that it can simplify its deployments its management, its infrastructure and very importantly that it can usher into this new cloud, mobile social, big data reality and that's something that certainly their messaging has talked to the last several years but they got to prove it and I think that that's really what I'm looking for and the thing too is that we're living in an era of open source movement here we're talking about open source media for our cube sharing knowledge not charging for it being underwritten for it but in the real action out there in this marketplace open source programming Hadoop, Apache different opportunities out there where developers are getting free software has created a massive boom now that is starting to affect these guys this year and the big guys all over the place not just S.A.P. everyone including Oracle so the role of open source is critical and I think S.A.P. plays the open card Dave and the open card is we're not Oracle which is closed Oracle is the evil empire and S.A.P. playing the open ecosystem so you can't play open and not have open source so I want to see what their solutions are relative to open source and really specifically how Panna integrates into that because if it does well with cloud eras and the Hortonworks of the world I think you're going to see great uptake and the co-assistance of unstructured and structured data will be a big part of that. Yeah so John we got a big week here we're here for three days there's some news going on we just you were talking about the Yahoo news and Scott Thompson that's been covered and he's been kicked around on the valley he's enriched Nixon of the valley right now but there's some other news DevOps angle it's got a story on SpaceOps how NASA uses agile development and search for life on Mars DevOps is a trend that's really starting to take on we just are in the process of doing a survey on Wikibon and in conjunction with services angle John and one of the questions we had was an adoption question around DevOps now a huge percentage of the audience about 50% said DevOps is a new term to me but surprisingly about 20% said we're actually we're a DevOps shop and we're actually achieving hyper productivity through DevOps so I was encouraged by that so we'll be producing those results next week just if you know first pass we're going to try to get those out before our next gig which is EMC world and I think it's a real trend I mean I think this intersection between application development and infrastructure management or as you've called it ops dev because operations can't go down infrastructure can't go down you know test and dev you know doesn't work okay no big deal but to really bring those two disciplines together it's really an ops dev emphasis isn't it? Yeah it totally is and I think the development paradigm is growing so fast I mentioned open source but you have an operational requirement so I think you're just going to see a blend of both a hybrid ops dev ops dev so this is really just a culture clash between essentially two disciplines you know the legacy IT environment has always been siloed hardcore network guys hardware guys and the software guys so that's changing significantly with cloud you know the software guys having more how do you say it respect for the network guys and they're thinking around you know SLA it's an uptime and I think you're going to see much more you're seeing respect from the network guys and the hardware guys to the developers because of the rapid agile program environments out there so with all these frameworks so I think that is a natural course and the companies that can deal with the cultural issues around the people will ultimately be the winners. That is a great point I mean we've covered converged infrastructure we covered the you know the IBM integrated systems announcement we're at this specs launch this clearly a trend toward converging hardware components networking storage and servers and that plays directly into the dev ops play I think but you're to your point organizationally you know networking guys report to different people than storage guys to the server guys and those disciplines and obviously the application people today the application developers throw a piece of code over the fence the operations people take it they try to make it you know deploy it on their production infrastructure they've got to hack away at it to make it work and then they break something then they go back to the applications development team and they say well it was working fine when I gave it to you you messed it up and so this back and forth back and forth puts a lot of pressure on people to meet their deadlines meet their time and deliver product. Dave you know you made me think about something I've been thinking about that I haven't talked about but I haven't talked about publicly yet and that is we talk about cloud mobile and social but with the advent of mobility so rapid right now on the growth scale in market mobility is the hottest thing clouds kind of taking it back see so you know I really was kind of struck by the lack of emphasis synergy was this year I mean synergy was a total dud I mean it didn't really do anything like I didn't nothing came out of it I mean yeah they had but they had good themes I mean we've been to synergy last year with the cube there I think one of the reasons why synergy was such a dud was the cube wasn't there all kidding aside it was the classic you know mobility virtualization the same themes was no real I didn't feel anything other than the normal raw raw cloud virtualization so that you know maybe it's too boring they didn't they put good messaging around it but mobility seems to be center stage right now so like I think that is a lever in the marketplace that you're going to see people doubling down on it's not so much cloud computing anymore it's much more of the market it affects the business benefits yeah I mean you know I like Citrix that was good to be there last year we talked to some good customers we got some good use cases and but there's sort of multiple companies in one you know they get the SaaS business they get the desktop virtualization business they got now you know the the the server virtualization piece and mobility is obviously a big theme but yeah I think you're right it I mean did you like did you fall out of your chair saying oh synergy no you know I mean well we chose to do other other things right so I mean no I didn't fall out of my chair I think that it's good but I think I think Citrix somehow needs to pull it all together they have all the right elements I mean Citrix synergy is a lot like SAP in the sense that both have very active online communities so if you look at SAP I mean to me they're number one in the online social media space in terms of total community activation real participation in terms of content development collaboration Citrix is right behind SAP Citrix communities are very very strong on our radar we look at our crowd spots application we built you know they're there I just it's a vanilla message for the company but it's all the right ones right it's cloud it's virtualization it's mobility VDI's I don't see the um there well it's just the marketing thing I know I think that again one of the things we're looking from SAP is really the proof points around you know the mobile enterprise the app store for the enterprise we heard a lot of talk about that we actually had some demos remember we had all of our busmen on last year and he talked about how they're implementing that internally um other CIO's are talking about it I want to see it now alright I want to talk to customers about how they're actually driving business from that we saw some outliers we saw some nice videos last year did you know that SAP ensures it's invested in violin memory I think everybody's invested in violin memory I mean Don Basile and company have raised a boatload of venture I mean it's just amazing they've got you know I think over an $800 million valuation now working toward IPO well you saw the Extreme I.O. acquisition EMC bought Extreme I.O. you called that 400 so just for the folks out there Dave Vellante actually called the investment with no inside information he pegged it at 400 yeah I did I pegged it at 400 well because you know it just in looking at 30s yeah so I was just evaluating the companies that are out there and using you know my sources and just you know trying to put together my little mental model of the marketplace and you see companies like well yes look at the very successful IPO of Fusion I.O look at violin memories violin memory over $800 million and they're in the marketplace you got guys like Solid Fire I would peg them you know there or north of there is HP going to buy one? I think HP, Dell IBM they've got to make moves to me it's I always use the analogy of when somebody chooses a left tackle you know the blindside in an NFL draft all these other teams you know there's a run on them and I think you know this move by EMC first of all says a lot about EMC it says to me that EMC recognizes that you can't take legacy storage controllers and jam flash in them and change the world but flash is going to change the world so this is an architectural statement you know first of all I think they recognize that it's really about the entire stack so I think from a product standpoint VMAX and just the speed issues they don't have the performance they have huge legacy big iron disc I mean EMC changed they changed the mainframe world right 20 years ago 20 years ago EMC changed the mainframe world now they basically got the you know same sort of they made a lot of changes to the system but it's the same monolithic approach to storage that's changing as we've written about on Wikibon and David Floyer has written about and VF Cash was an announcement that you know began to attack that problem but I think EMC recognized it needed to accelerate that and it fell behind we had Pat Gelsinger on the Cube basically saying last year at EMC well we fell behind yeah so now EMC is catching up EMC does they buy companies that's how they get faster time to market so I think again it's a statement that the architecture is changing so to your point I think others are going to have to make a move you know you got solid fire out there you got pure there's a number of these companies and I think that violin memory is essentially not in play because it's going to do an IPO unless somebody is willing to plunk down over a billion dollars for the company but do you think that what I just said is accurate that EMC has a lot of big discs and like the DMACS and they need to get increased performance and customers sitting there going I got to get more out of these big here's what's happening with EMC customers for years they've been putting data on high performance high performance discs that's an oxymoron there's no such thing as a high performance spinning disc but higher performance meaning you stroke it so they only use a little bitty piece of the disc they underutilize it so they can not have to have as much mechanical movement well that's just wasting capacity doesn't work you know that's a failed model and it just doesn't have any more legs the answer flash but you can't just take that flash and jam it into an existing controller architecture EMC knows that and so it's now starting to get much more aggressive so 400 million is it expensive yeah but you know EMC is proven that it knows how to make good acquisitions and this company ExtremeIO really was an R&D company I mean out of Israel really know sales channel presence unlike some of the others like violin and pure who are building out channel presence and presumably we'll see solid fire with the cloud service providers so I think that very clearly John it's recognition that something's got to change and so Dell HP Oracle even I think all got to make some moves NetApp make some moves in this space or they're going to be left behind so what's trending right now in our vertical right now is also mobile applications big data in the vertical for our sites cloud computing big data SAP because we're at the event SQL open source mobile application SAS and RDL whatever RDL check that out hold on but let's talk about the SAS these business models we'll just talk about with comscore a big data job at comscore and he said something profound to me that I want to share with you the folks is that if you don't get into the kernel and code there then it's just a SAS application and the performance isn't strong enough so the movement is towards less SAS more programming in the kernel of the data sets how do you react to that for example Ellison's been very critical of workday a company we were just talking about earlier for doing its own database and doing its own integration but I think that speaks to exactly what you're saying the challenge with SAS is it's SAS and it's not going to perform as well as an internal private cloud so that's the challenge that the vendor community has been working on and I think it's the model they've been sorting out how to deal with latency issues in there and other programming architectures and so I think that unquestionably that's a trend that we're going to be seeing more so other news in our vertical is that cloud in cloud vertical is that Google prices its cloud sequel offering solidifies the cloud database market this was on Read Write Web they're reporting that what do you think about Google in the enterprise Google has struggled in the enterprise with core things in the enterprise but it really hasn't really nailed it cloud sequel is basically my sequel based and App Engine so it's using App Engine I was personally very disappointed to see David Gerard leave because he was sort of the evangelist for Google Enterprise we're a Google Gmail shop we kind of bet on Gmail we're not locked in obviously but it's kind of not done but we thought it would do Microsoft is pretty much held on there Google is still largely a search engine company this is a move by Google to go compete against Amazon Amazon has DV instances that are more powerful and it's a developer market so it's not so much enterprise it's really Google saying hey we want to compete G drives now out there that should really put a nail in Bob's coffin and drop Bob's so that it can diversify it's bought a lot of companies but it's core business it's search advertising it's still really where the bread and butter is and it's hard to find a success outside of that so do I like the competition to Amazon yes does it make sense because they got to go after the development community yes am I skeptical yes so the other article on Forbes that I'm pulling up here says the government, the White House in particular is spending big money on big data all the downtown spaces being taken up by a big data company that's working on the government stuff it's an election year I was on campus when Obama was in town and although he was on a different party Stanford I was at another private event where their chief data scientist was in town having a meet up basically it was a recruiting session and basically top dogs from LinkedIn Twitter, Facebook, Google were all there Democrats of course essentially they look at the volunteers leave of absence and jump in using big data obviously big data can help swing the elections well there's no doubt there's an election factor and I'm hoping that the Department of Homeland Security is all over big data I'm sure it is because I think there's a lot to learn in that data corpus I would hope that the government is one of the most sophisticated we followed a company called Cleversafe extensively doing some innovative stuff and the government is one of the biggest channels this is an interesting article on Forbes so it's a it's an oxymoron program it's a new program that's spending money to reduce money so they're spending money on a new cost-cutting initiative they're spending more money for a cost-cutting initiative a research and development initiative that's a program focusing on improving the government's ability to extract knowledge and insight from large complex data sets to help reduce the overall cost of delivery services and I support this and I'll tell you why I was talking to some big data folks at Strata we were on the Cube and that woman who was on talking about healthcare for people in poverty stricken environments within outside Chicago big data to look at poverty levels where people were on borderline poverty and they adjusted the execution of federal programs not just federal programs but staff and resources in those areas and in this test by using the big data they were absolutely able to coordinate the services of delivery of services and the personnel behind it and what does that mean? It's like Walmart they have their basically instrument in the marketplace this is an amazing opportunity one I totally get behind and it will not only cut costs for the government make the government more successful this is the promise of big data on the commercial side Dave and I support this all the way you know I'm not a huge Obama fan but this one is absolutely a great program so there's another story that we're tracking here which is that came up on the dashboard which is Oracle's changing its tune on cloud consumption model it wasn't just a year ago that you know Allison was ranting about you know vaporware and at the time other executives of Oracle were sort of poo-pooing the cloud and now remember at Oracle open world last year we saw the Oracle public cloud and we saw a good tongue-in-cheek by Allison so you know clearly Oracle's long-term strategy is to embrace now the cloud and sort of falling into line with the rest of the industry so that's another sort of interesting story now the other thing John is I wanted to talk a little bit about your trip back east last week I was in Boston for a day and a half or one full day and two dinners yeah it's great there's a lot happening there it's not Silicon Valley but there's a lot of cool stuff going on Boston is definitely happening Boston is a ripe environment for talent talk about that a little bit what do you mean Silicon Valley definitely has great talent but as I said on Twitter it's overfished a little bit but the skill sets are there but the talent's not and the talent's very mobile and there's huge demand so first of all if you want to make as much money as you possibly can go to Silicon Valley if you can afford to because the job market there is so hot between all the big data companies it's out of control however most people have families don't want to move systems programmers, systems guys from my age in the 40s who have computer science degrees in programming at a root level and understand operating systems and the other new guys from MIT and these schools where amazing computer science programs so like really good computer science programs and the kids are young they have no baggage they have a clean sheet of paper they don't have to think about legacy things like database concurrency concurrency and parallelism no problem I can figure that out they're unconsciously competent we've got some serious mojo and Cambridge is the hotbed so we met I think with I don't know 4, 5, 6 companies last week and we spent the day in Cambridge and let's talk about them a little bit if that's okay so we met with mortar data Mark want to do a break hold on Mark do you want to do a break let's do a quick break and we'll be right back we're going to come back we're going to talk about the Boston companies and the Boston market and the Silicon Valley and we'll be right back with more break and we've got a lot of companies to talk about we'll be right back