 Live from the Hilton at Bonnet Creek, Orlando, Florida, extracting the signal from the noise, it's the Cube. Covering Vision 2015, brought to you by IBM. Welcome back to IBM Vision, everybody, 2015. We're here in Orlando. This is the Cube. The Cube is our mobile studio. We go out to the events. We extract the signal from the noise. We've been going all day today. Jeff Frick and I are going to wrap up right now. I'm Dave Vellante. He's Jeff Frick. This is Silicon Angles, the Cube. Silicon Angles is a media company, a new media company that comprises Wikibon research. Silicon Angle, the blog, go to siliconangle.com and check out siliconangle.tv. We're also running CrowdChat, crowdchat.net, slash IBM Vision. And check out our digital experience. IBMVisionGo.com, it's got a leaderboard. It's got crowd chats going. It's got all kinds of live video. All of trending stories pumped in to this rich second screening and mobile experience. Very excited to be a part of that here at IBMVision. So, Jeff, good day. Big crowd. I mean, you know, smaller event than many of them do, but 500 people packed house here at the, I guess we're at the Waldorf. We're at the Hilton. The Hilton Bonnet Creek, across from the. Across from the Waldorf. Across from the window. Where we're sleeping. It's sort of spread out here. Right. 2,000 people they said, right? Is that what it was 2,000? He has like 2,000 or 1,950, right around 2,000 people. Yeah, so to say, wow, this is a big room for 500. Yeah, that makes sense. Okay, so packed house this morning, we heard from some thought leaders. David Haas came on. He's still riding his bike. If you go to, if you go to IBMVisionGo.com, he is still riding his bike. He's instrumented essentially. He's going to be riding across America shortly, about 3,000 miles. 3,000 miles. In eight or nine days. And IBM is sort of doing an internet of things on him. He is the thing. It's pretty interesting. But essentially, Jeff, we're, you know, IBM architected under Ambush Goyal and Steve Mills architected an analytics business that is second to none now. IBM bought Cognos in 2007, which started all off. Company subsequently bought, you know, a number of companies, including SPSS. We were just talking to Michael Curry about, you know, R is a company who owns SPSS, but they're aggressively going after sort of new open source technologies. The company bought open pages in 2010. Clarity, algorithmics, and then Veracent, which is a sales performance management company. And a number of other sort of tuck in acquisitions that created this analytics powerhouse. I mean, IBM went from nowhere in the early 2000s and then said, we are going to be number one in analytics and decision management, decision support. What everybody else is calling big data and sort of morphed into that. And they've taken the leadership role there and it's driving a lot of business. I think, you know, Ginny clearly has indicated it's one of their larger growth businesses. We're talking about, you know, 15 plus billion dollar business under Bob Pitchiano. I think is the sort of figure that they've thrown about. So, and we're seeing a subset of that business here at Vision. We see the super set at Insight, it used to be IOD, the subset is here at Vision, targeting CFOs, sales performance management, GRC professionals. What are your thoughts? My thoughts is that we're talking about a much broader application of the data. I mean, I kind of stumbled upon this earlier in the day, but this vision of using cloud and using Watson analytics as an overlay layer on top of all the different technologies that you've talked about that they've integrated as well as some newer ones and delivering the power of the analytics to the desktop of the person. I couldn't help but think, you know, is this Excel for big data? Is this finally the tool that's going to enable everyone sitting at their desk making individual decisions to leverage the power behind the company and the power of the analytics and a cognitive framework where I can ask questions and dig down and don't really have to be a data scientist to make better decisions. They've got a freemium pricing model. I can try it out anytime I want. I basically can put in a rectangle, describe it as a rectangle of data and throw it in. It'll start to model for me. It'll start to ask questions before I even ask questions. So it seems like that they're trying to build something much, much bigger, much grander vision than was really talking about sales performance and some of the other kind of primary applications from which this was built. And by the way, I misspoke just to correct myself. So I've been blown through 17. IBM's on its way at 20 billion in its analytics business which is one of those sort of four strategic pillars that it talks about. I think it calls it smack, right? Social, mobile, analytics in cloud. That's right, right. And the Twitter deal is interesting. We've heard what is traditionally a business that you think of as very, you know, taking very structured data, financial data and now IBM injecting, you know, the Twitter fire hose into that to not only identify sentiment but to use Twitter for predictive analytics which, you know, I'd like to talk to some customers as to how they're actually using that. I think it's early days there, we know from our Twitter experience but the power of Twitter is undeniable and I think it's really going to play a bigger role in these businesses. And then, you know, competition-wise, you know, IBM, as they say, is certainly a leader, the leader, I would say but it still competes with, you know, a number of companies, you know, SAS is the big privately held company Oracle obviously plays in this field and everybody wants to get into this business but IBM has a good pole position, Jeff. This business is growing, they've got resources, they're investing, they've got a big customer base and the story's pretty strong. What's your biggest surprise from today? I think, well, a couple things. One is the, it's kind of boring but important is the Deloitte move. Here's IBM, IBM is a fierce competitor with companies like Deloitte in the services side of the business and IBM's yet going to market with Deloitte. So that was kind of, you know, eye-opening for me. I think the second thing is the degree to which IBM's and it's really what Michael Curry shine the light on for me, the degree to which IBM is evolving its architecture to accommodate things like Spark, Hadoop are a cloud. You know, you think of traditionally Cognos as this sort of big sort of legacy, put it all into my box and then build a cube and analyze it and IBM is blowing that paradigm away, bringing in new tooling, new models, heavily leveraging open source, modernizing the platform and connecting, very importantly connecting to other parts of the portfolio. It's interesting to note when we do, for instance, the Tableau conference, how much Tableau talks about the old Stodges, they certainly hit the spreadsheet hell, but they'll try to deposition the Cognos's of the world and the Sass's of the world and the MicroStrategy's the guys who sort of built this business up, the traditional decision management guys. But I think that the counter punch is one of the things, the effectiveness of the counter punch is one of the things that surprised me today with regard to the way IBM is incorporating these new technologies and I think leveraging its install base in a big way, that's something that the Tableaus of the world can't do. They don't have that rich install base, those connectors to all those other pieces. Now, if I'm Christian Chabot, I'm saying, well, that's an advantage for us because it allows us to be more agile. But at the same time, when you're talking about the IBM customer base, that is a big, big advantage for the incumbent. So, interesting, right, small guy nipping at the heels, growing like crazy, doing a lot with visualization, but to me, Watson is the new secret toy. The other thing, especially in the context of startups is the number of the folks that we talked to today from the IBM team were brought in via acquisition. They started their own companies, they were successful and they got brought in via acquisition and they're still here, which tells you that they didn't feel like they're getting caught up in a big bureaucracy and then they're gonna hang out, do their time, and then bounce out and do the next startup. But they were almost giddy and the number of them said, you know, we've got this unbelievable amount of toys that we can now play with and start to bring together in a unique way. So the fact that those guys who had the really innovative startups and did get brought in to IBM via acquisition are still staying and see the opportunity to play with a much bigger set of toys to continue to deliver value along the vision that they originally started out with. I think it's pretty powerful. That and just, you know, an unabashed kind of embrace of things like Spark, things like Hadoop, things like open source that you might think traditionally would be a threat. You know, they're kind of jumping on the bandwagon. They're embracing those things. They're not running away at all. Right, so big day today, we're going a half day tomorrow. Check out ibmvisiongo.com. It's our digital interactive experience. You'll find video there. It's optimized for mobile. You'll find keynote and general session presentations, the CUBE presentations. We've got the ultra cyclist, David Haas wired up, interconnected, he is the internet of things. He's going live. We got feeds from CrowdChat, CrowdChat platform, bursting in Twitter data, leaderboards, all kinds of digital interaction, so check that out. Jeff and I will be back tomorrow. We kick off with keynotes, I believe at 8 a.m. East Coast time, so stay tuned for that. Thanks for watching everybody. We're out day one, ibmvision. This is the CUBE, we'll see you tomorrow.