 Welcome back, we're live in Boston, Massachusetts for the HP Vertica End User Conference. This is SiliconANGLE and Wikibon's exclusive two-day coverage towards the end of day two of the HP Vertica End User Conference. This is theCUBE, our flagship program. We go out to the events, and extract the signal from the noise. I'm John Furrier, the founder of SiliconANGLE. I'm joined by co-host. Hi, I'm Dave Vellante of wikibon.org. Vinny Mershendani is here. Vinny's a longtime friend, a CUBE alum, author, former Gartner analyst, and just all around good person. Vinny, it's great to see you again. Well, since you're that nice, I'm worried what's coming next. Well, you were a part of our first CUBE run in 2010 when we crashed SAP Sapphire in the Blogger Lounge. Yeah, you helped us out, gave us some great content. We really, you know, we always remember. I'll send you a bill. Yeah. No, we run on the barter system. Yeah, exactly, we didn't grow in quail. So Vinny, let's see. Since we last talked, you've written a couple of books now, right? And I think you're working on another one, collaborating. So we went through the new polymath, you had another book. I had the new technology in LEAF, which came out last year. Yeah, great. So congratulations on those. I mean, you really obviously like it. You like authoring books. I mean, as a former analyst, you're spending more time on doing books, right? And interviewing customers and the like, you know, books, I don't think you enjoy writing books. They're like saying, do you enjoy a root canal, right? What I enjoy is the outcome. I enjoy actually the front-end discipline. It forces me to do a lot more research because I have a very key study-oriented view of writing. I tend to talk to a lot of CIOs and C-level executives. That is very enjoyable. It's a validation of a number of concepts. So what's the latest book that you're working on? It's called Digital Enterprise, but it's a collaboration. Explain that a little bit. Yeah, so, you know, differently from our other books, I got a call from software AG, you know, the German software company, and they said, we'd like you to collaborate with our CEO, Karl Heinz Freibeck. He's writing this, it's his vision of the Digital Enterprise. And so, it's his vision and his roller-decks, which by the way, is just amazing. I mean, he introduced me to 35 of the biggest brands in the world, and I've talked to the CEOs or CMOs or CIOs, and it's been just an amazing look at innovation happening in the enterprise. As we speak, you know, what will become more and more public over the next year or two. I've learned from 20 industry representatives in 15 countries. So it's been a phenomenal sample that he exposed me to. But it's his vision and his roller-decks, so, you know, I'm just the note-taker here. So, in the data extractor and the interpreter, right, so what's the premise that you guys are working on? Well, you know, the premise, several different premises, but the broad one is, we've had a decade of amazing consumer innovation, right? The Apple's, the Google's, the eBay's, the Amazon's, et cetera. We're now poised to enter, maybe a couple of decades of industrial innovation, right? So, the companies that are interviewed and profiled in this next book are GE with its industrial internet. There's a whole bunch of German companies were talking about the fourth industrial revolution. I mean, that is such a hot concept across the German manufacturing and logistics sector. Talk to banks about complex event processing and uncertainty engines. Talk to insurance companies about telematics and auto insurance, just a wide range. So, one is we're moving from a decade of consumer innovation back to really powerful enterprise innovation. The second thing is, you know, Gardner talks about the nexus of four forces, right? Social, mobile, analytics, and cloud. Well, the companies that I've talked to in this sample talked about another 30 technologies, right? So, the world is moving so fast and most of these companies are realizing they can't just wait on one or two hot concepts. They've got to become integrators of the next generation of product and customer access, et cetera, et cetera. And Kedif, George Kedif on his keynote today, he's the EVP of the HP software overseas, Vertica, Autonomy, the whole Haven thing. Talked about the history lesson, the Oracle, Emerge, basically a client server. You know, I need to talk about Anderson Consulting, he's on theCUBE talking about those generations. So, and then he goes to the N app, which is now an explosive new thing. But what was interesting was, he said, you know, back then it was bottom line focused, where, okay, let's get things smooth, streamline, reduce costs, workflow, blah, blah, blah. Now, his emphasis was top line. That's business value, right? So, that's to your point. The one thing he didn't mention that's come up on theCUBE many times is the speed of change. And we talked about this at SAP specifically, I think twice with you, is that it's accelerating really fast, and no longer those gravy train implementations are three years, it's three months with a lot of checkpoints, because the top line now is the driver, and that's just not IT. Can you comment on your view on that? Do you agree, what's your vision and how do you tie into that? Absolutely, and most of the companies that I've talked to are already, let's back off, to your point about front office focus versus back office. Every one of them is embedding technology in their product. So, it could be a Nissan talking about mobility to go with electrical vehicles, wire by, steering by wire that they bring into their cars, their infinities and so on, or, you know, Mop Free, which is a Spanish auto company, talking about how they're using telematics in their auto insurance industry. Everyone is embedding technology in their product. So, it is becoming product and revenue centric right away. The other thing that you notice is because they're learning the becoming technology vendors, the release management discipline is starting to come to them, because they know you can't just plan for the next release. You've got to take three, four releases out because competitors catch up with you within six months, right? The fleeting, the advantage, the strategic advantage with technology is extremely slim in terms of time. So, they have to constantly be thinking about next release, next release, et cetera. So, to your point, speed is, you know, it's a cliche, things move faster. It's unbelievable the speed at which it's coming to move. And it's true, it's really true. It's happening, that's a factor in the risk management of investments, right? Would you say? The smart ones are, you know, I like to cite the example of the auto industry, right? The automakers are looking three, four releases out. You know, they've been used to the concept of the model year car, concept cars and all that. So, they are used to thinking ahead. But you go into the dealers, and the sales guy still tries to get $5,000 for his GPS system when you can put out your iPhone and say, no thank you, right? So, not every element of every industry moves at the same pace, but there's a growing recognition that once somebody comes up with something, it'll be duplicated, replicated within months, not years. Yeah, got it. So, I want to come back to the, one of the first premise that you talked about, which is that we've seen the consumer innovation, now we're seeing this move toward the enterprise innovation. You mentioned the four pillars. The first time I ever heard it was John Furrier, maybe Gartner Stuller from you John, I don't know, but Cloud Mobile, Social and Big Data, all stem from consumer innovators. They do. And so you're suggesting that the adoption of those approaches, those pillars is occurring in the enterprise. And then the enterprise is going to add new innovation on top of that, which is going to drive new economic growth. It's transforming industries. So, I mentioned the fourth industrial revolution that Germany's all excited about. You're talking about GE industrial. But on that, if you ask them, what does that mean? Yeah, okay, what does that mean? It means next generation robotics, which are not massive and caged, they are next to the workers and helping the worker becoming more efficient. They're talking about augmented reality training so you don't have to go to classrooms. You don't even have on-the-job training. It's actually with wearable computing. It's guiding you as you're doing your job. So I'm going to ask you about wearable. So I mean, wearable is an innovation that you see potentially coming out of the enterprise. In that particular industry, absolutely. Yeah, within manufacturing. Right, you look at, there's a professor there who's talking about semantic product memories, high-floating term. But the concept there is, traditionally we've manufactured products based on MRP. You know, there's a recipe for the product, go manufacture it. His view is we've moved to the world of mass customization where every product has information about its configuration in a memory, in its memory. And it tells the factory, send me to filling station one and let it fill me with this. Now send me to filling station two, have it do this to me, send me to packing station three, okay? And that's in the manufacturing plant. Once it leaves the manufacturing plant, that same memory is going to talk to FedEx and DHL trucks and say, trucks too hot, cool down the temperature. It's going to talk to the smart store, okay? And say, only two of me left, reorder stuff, okay? So it's transforming massive industries just that one concept, right? You look into, you're going to healthcare. There's a whole bunch of analytics based products coming out. You look at, you know, one of the companies profile, there is a museum in Germany. You look at how they're looking at different digital technologies to transform the experience of either the patron who walks in or somebody who is virtually visiting them. So every one of them is looking at certain technologies that may have had an origin in the consumer world, but has been taken to another level or consumers never even found use for that. You know, like robotics, consumers didn't influence that much. So I catalog about 30 different technologies in my book that have nothing to do with the four social mobile, et cetera. Yeah, so much of the discourse in the, and we've talked about this before in the IT business in the last decade or so, has been about doing more with less, getting more efficiency, better utilization of our hardware, cutting our software license and maintenance costs and really driving down, sort of pushing down IT. And what you're talking about, John mentioned it before, is top line, transformative. Do you, what's your prediction in terms of how that will affect IT if we even call it that anymore as an economic engine of growth for the economy? So, you know, Carl Heinz's vision was, doesn't matter what industry you're in, doesn't matter what country you're in, you have to become a digital enterprise. And that's a very broad term. And, you know, the more I interviewed him, I said, you know, does that cover just the front office? Does it cover just the back office? It's meant to be much more front office focused. So automatically, IT feels uncomfortable there or hasn't been as welcome there, right? So it has to evolve. Some of the people I interviewed had nothing to do with IT, they were in the product engineering groups. Some of them were CIOs. You know, it's a broad mix of technologies spread across the enterprise that are making this true. Some of them are marketers, right? I mean, the whole social analytics is coming out of the CMO. So, how about media companies? Do you have any sort of thoughts on that? I want to, generally, and then specifically, you've seen just this past week or so, John Henry, the billionaire, you know, owner, the Boston Red Sox buys the Boston Globe for 70 million, Jeff Bezos buys the Washington Post for 240, 250 million. You're seeing some very strange, you know, occurrences within that business. Talk about transformative. What are your thoughts there on the media business? Finally, I talked to, I interviewed the CEO of Burda Media, which is a German magazine publishing company. And my going in premise was, this is a business in trouble, right? Publishing doesn't matter whether it's newspaper or magazine or books. It's a dead business. Remarkable interview, which, you know, the book will come out. He's been transitioning the business for 15 years, okay? And not only has he been transitioning the delivery model, some of them are purely digital, some of them are still paper-based, but the production's become digital, right? But he's also changed the mix of staffing. So, in some of the digital products, the reporters now are curators. So, they're crowdsourcing the opinions and they're just curating the data, right? If you talk to him about his business model, every one of them has a unique business model. He made a comment, which was prophetic. He says, you know, my competition is less traditional publishing companies. The e-commerce sites now. And I said, what do you mean? He says, well, part of my revenue model is to feed different brands when consumers show interest in them. That's what e-commerce sites do. You know, they're representing different brands. They just happen to stock the product. I don't, I just pass it along to them. But that's more and more my competition. But he is an example of somebody who has very successful transition because he's made a lot of changes in staffing, in production, in revenue, business model, and very healthy, you know. So, it can be done. So, tell us, the book is, when, how do we, you know, get a hold of it, give us the low-down. So, the book is digital enterprise. Software AG is going through the editing and the printing format and so on. It should be out in the October timeframe. And, you know, it'll be, it really is a compliment to, you know, when Software AG first approached me, my reaction was, this is the database company. You know, how can they be innovating, right? And the more I talk to them, the more I looked at what they've acquired. They've acquired Chetakala, which is a in-memory engine a couple of years ago. They've acquired Appama, which is a complex event processing engine from progress. They've acquired Longpass, which is a platform as a service company. So, they've been transitioning into modern technologies. But what really blew me away was his vision and his rolodex. I mean, every major brand in the world is a customer of theirs, you know. So, it is pretty impressive. What are your thoughts on HP generally, prognosis, and specifically Vertica. You've seen a lot about Haven, HP software business. What are your thoughts there? You know, it was, I came here with a fairly narrow view of Vertica. When I listened to George today talk about, and the other conversations I've had here Vertica was structured versus autonomy for unstructured, layered on top of that some data services they're providing, enterprise security they're providing and so on. It is probably one of the most comprehensive visions in the industry today. And, you know, George had this ballot at the bottom of his presentation where he had information types. There were 11 different information types, but everything from email to video to whatever. One of the few vendors that can say it doesn't matter what the data is structured on structure, I can help you work some magic with it. It's pretty impressive. You know, obviously HP tends to go at it from a technical perspective. They need to become much better in terms of solutions and talking the business talk. But, I think the ballot they have, it's pretty impressive. Vinny, want to thank you for coming outside of theCUBE again, great to see you. Final word will give to you. What's your take of this future as you go out and probably try to take a little break and maybe write your next book, go out and talk to the customers, continue to do the work you're doing. What's around the corner for us and the industry as you prepare your next leg of the journey? Well, finally, before Safariji called me, I was working on a book on data and analytics, advanced analytics. So, I think this is a good five to seven year run for the industry with one caveat. We tend to be very focused today on short term real time analytics. There's also a need for long term analytics, scenario planning, stuff like that. So, my book was going to be about, you know, a broad range of planning and analytics. I see it just an amazing runway for all kinds of video analytics, for surveillance, to predictive maintenance using structured data. Just, you know, it's stuff that gets me all excited. Like I wrote my blog post two days ago, if you're an entrepreneur retooling your business it's a great time. New tool sets, new platforms, creativity, new questions that can be answered. And questions that you don't know may be answered in the future. This is Big Data Analytics, this is HP Vertical Converses. It's theCUBE right back with our wrap up after this short break.