 What I'm going to try to do today is give you an idea of why large enterprises, medium enterprises, decide to transform and the path to innovation and the cost of innovations and our experience of Verizon. So we'll talk about the case. We'll talk about a little bit of one concept that I've developed for the longest time that's called the application portfolio value. So that you understand how Enterprise IT thinks about it. We'll talk about IS and PAS and some examples. So enterprises, this is the way that they normally have their resources allocated. And resources could be the magnitude of dollars, the people, the very cool, geeky people. They're not very cool, geeky accountants. But that's how they do. 70%, they keep the light out. If they are very innovative, maybe 20%, they do it. And 10% compliance. Compliance now is growing a little bit more. And that's why a lot of enterprises, they are slow to market. Really, PAS would allow them is to reduce the cost of maintenance of the applications and to keep the lights on and to move all that dollar, beautiful people, amazing brains to innovation so that they could provide better services to their business. And that's really all about how can I do it better, faster, sometimes with less people, but maybe different type of people. So let's do a little bit of math. When you do cloud, or actually every enterprise, every two, three years, to do a portfolio analysis, meaning I look at all my applications and I look at the one I want to take forward, the one that I need to build, and the one they have to retire. So there is this application portfolio evaluations that is the functions of, as a service strategy, and you divide your portfolio in a kill, meaning, and by the way, it's called kill, meaning I want to decommission, because you've got to kill something to move the resources somewhere else, things that I need to maintain, and obviously how much more I can transform. So if you do just IIS, normally you will be able to kill 25% of your capacity, of workload capacity. Some of these very old mainframe things, otherwise you have to find a way to move them. I've seen Cobble go to Java very nicely, but it's a bit of a hard game. Isn't it easier to write a brand new app? So why don't you kill some of these applications? But the biggest problem is maintenance. Maintenance is still 60%. Do you find the guy in the court? How am I to report? I want to keep it there. And you keep saying, I know I have to kill this report. I have to kill this application so I can build more transformation, but transformations become and produce only 15% of it. Now if you put pause in there, you see killing is still the same. I mean, more or less, it's an evolution of services for a company, but the maintenance gets reduced, but that dollars goes straight to transformation and innovations. Now if you combine, and I think that's really my case, you have to combine infrastructure as a service and past service to get more ability to kill and decommission services to get to really ideally only 25% all the time to maintain and to move a bunch of dollars and people to your transformations. And only using tools as a service, moving all packs to compacts, you can actually move the dynamics of this transformation. And by the way, if you go to any enterprises and you ask them about their KMT, most of them, they do have it. They keep it secret to you, because they don't want to know how much you can make their life different, but really has to be there. Otherwise, cooperation becomes obsolete. So let's talk about IAS and PAS. And by the way, I run a great development team for cloud. And our team is the commercial, meaning selling cloud services to end user, and Verizon IT being customer one Verizon IT. And I have a great amount of developers that really like building things from scratch. They really bring all their skills of, I am a network engineer, I am a storage engineer, I am a compute engineer, and they just love doing that, building it. And it has a certain fascination about when you start getting to scaling and global deployment, then our job has been why don't you use a PAS service to build a service catalog or some services that go faster? And instead of you having to rebuild, again, API services and everything, why don't you just containerize, you make it as available distributor services so we can go much faster? Because in cloud it's all about faster, continuous development, continuous innovations. Let me give you another idea. Why infrastructure services is not enough? And why at the same, if you talk to an enterprise, everybody thinks that virtualization is infrastructure as a service? I thought that in 2010 we demystified that. No, I still go there and they think that they're doing infrastructure as a service. But infrastructure is not enough. You get a better opportunity cost. You move capex or packs. You have better utilization of your resources but your revenue component doesn't accelerate that much. With the PAS, you have the ability to work on the two dynamics. You can reduce your cost, opportunity cost on maintenance and use IIS and the all packs, capex situation. But the beauty of it, you affect the revenue. And I'll give you an example. When you can go to a large CIO and tell him that in less than four months he can have a brand new airline kiosk activations in a major airlines, he will listen. He will listen straight away. The only way that you can do that is using PAS. And PAS will activate the workload. Because the most important thing is IIS is infrastructure. PAS deals with workloads. The creations of workloads that generate the business and they produce the revenue. So the other beast, I think misconception in my point of view is that a lot of people think that Papad and Shafi's PAS. Sorry, guys, it's not. It is PAS for infrastructure. Bastille deals with infrastructure component. You can use it. You can make your life easier. You can scale better. And as a service provider, I adore it. I make money if I can maximize the cluster usage. Because I only make money if my clusters are used more than 30%. Below 30%, I lose money every single time. But when I get to 70, 75, and I can move fast, I can make a lot of money, meaning dollars and margins on 30%, 40%. So there, I adore these tools. I'll take about container in a minute. But that will not allow more workload to jump on my clouds. It will make my clouds more efficient. Great, I can make more money. But I will not have customers to very readily, fast deploy cloud into my application into my cloud. So that's why you have to have PAS services. And our experience with Pivotal has been very crucial, because we were able to show, to take in traditional standard stack applications, even cool Java applications, and decided to take it away from a traditional stock to an open source stock, and move very fast to go to the next level that I think is the model of the PAS. And that's mobility. I talked to a lot of customers that love Coney for mobility. But I say to them all the time, your path to fast mobility has a stop into the PAS. It's like you can't really build mobility application that don't run in the cloud, because it doesn't make sense. To accelerate that, you can accelerate it faster if you actually create your application logic in a PAS environment. And we all want to go to mobility, because for employee optimization, mobility is the only platform. Today, an employee IT per year costs $4,500. You've got to give them their PCs, got to be somebody there. What about if I can take 35% of my people and just give them a tablet? And they can do everything in there. The costs drop below 800. So that's why corporation wants to move fast to optimization of mobility. But if you don't have a dynamic PAS environment on the back, the journey is much longer. I think a lot of people try to go from IIS to PAS to a mobility platform. And it really doesn't work for scale. It doesn't work for hyper scale and reusability and the ability to learn while you build your applications. So let's talk about developing in the corporations. So corporations are still doing a lot of waterfall. You remember this maintain piece? The maintain piece is 100% waterfall. So think about how slow and painful it is. And the move to agility or continuous deployment is very, very hard. We launched a brand new cloud services in October. And we were in this nightmare of water, scrum, fall. And it was just slow, even if we were doing it on a monthly basis. So we pushed it to a continuous development on a weekly basis. That was only using PAS and having the ability to accelerate a continuous innovation and beat the curve. So let's talk about containers. I love containers. It's even, it's painting by numbers sometimes. It's really incredible. I use a little bit of this, a little bit of that. I put it together and these things move around. I put in some nice property and I'll tell him, go faster, faster, faster. Go over there, don't go over there. But the security is not there. Large enterprises will hate it. We only today would use containers on dedicated clusters because in a multi-tenant environment, when you especially use microservices where you have loosely coupled objects, these objects get themselves in trouble spots. And we cannot control it. If you put monitoring or dependency mapping in a container, you lose the agility of what they have. So I love them. I think PAS and container are the best way to write modern applications. But it's going to be a little bit of time for us to find how to harvest the security in a different way. And there is a couple of companies that they are trying to really harvest not for us. And enterprises adoption of cloud now is totally connected and linked to security and how we can implement it. I mean, continuous innovation, freedom, ability to build the most beautiful fast-running applications. But we have to do it in a secure way. So that enterprises will continuous adopt PAS and cloud technology. So why do you need both? As I said, IIS affect your margin the more I can condensate, the more I can do cluster management, the more I can connect cluster together, the better margin. But PAS gives you an impact to revenue. And I tell you, that's a very important concept that a lot of time it's lost. A lot of people think about IIS as hyperscale, autoscale, and everything, and that's cloud. I think cloud is big S and small I. And you can only affect the big S, meaning service with workloads and PAS. And we have to use both as cloud providers because our user will demand both. And the other things is we need automations. Clouds will only grow making money if you automate it. The less fingers on a cloud, the better it is. And you'll be amazed how much steel fingers are in a cloud and in operation of cloud. Elasticity, especially if you want to go across zones, meaning your data center, not a data center, not a regional, and not a data center. If you have the more compact the workload is, the easier it is to be able to move it for margin. And that's what it's all about. Revenue, PAS bring me revenue, automation of PAS. PAS bring me margin. The other things is about scaling. And I learned a scale about Verizon. Verizon, it's 140 billion, 150,000 employees, many countries. So when they do one thing, they cannot do it just for a group or family of people. They have to do it at scale. And you'll be surprised how much applications that everybody thinks are going to scale in the real world or cloud, they actually do fail. And they fail for three reasons. First of all, they become impossible to operate. And you go back to the fingering, you go back to, I'm going to optimize this a little bit. My git, I'm going to put all these nice scripts in there in my life, and that's impossible operation. Second, they really don't run. Because you have to say, what about China? And what about this country? What about that country? And you have to embed and build services that they are available. And third, they really don't make money if you don't scale. WashMyCar.com in Cincinnati is just once washmycar.com in Cincinnati. What about if you do washmycar.com around the world that you can very fast find the car wash that you like, and it's free now, and you can wash your car, and you actually get a coupon for 10%. This kind of application needs scale, and you can only build that with a pass. So what did we do at Verizon? We did a pilot, and it was a combination of Verizon IT, to me, customer number one, and our cloud team. And what we did, we took an application called TechTablet. This is the applications that the FIERS engineer used to schedule workload, to optimize the workload, to get data, to understand, do I cut this wire or that wire? And it's really an important optimization application. They built it in it. It was kind of born for the cloud, but ish, as I say. I think it was thought that it would run. It runs on a cloud. It's a virtualized application. But can they push it out to everybody around the United States? And so what we decided to do, and it was very expensive, the components of the applications were a traditional software component. So goal number one, can we move more application to an open source environment? And goal number two, can we do it very fast? Goal number three, can we scale to one to three instances at speed? And it was very successful. We were able to prove all three use cases. And we gained both. IT gained the ability to move more mobility applications. And us in the cloud environment, we gained a very strong use case scenarios, a very strong platform where we can actually take out, and we are planning to take it out, in the next two months, as platform as a service for our users. And they can buy directly from our console and everything. The next big thing that we're going to do is obviously see if Pivotal can help us with the pass for IoT. As you know, IoT is another one of this incredible application development challenges where the stack gets even bigger and the dimensions get big. In IoT, you have dimensions. You have connectivity. You have machines. You have big data. You have big power computing data. And you have human interactions. So these five elements of IoT without a strong path, a writing application for IoT and integrating it without writing services that you can reuse, is a challenge that we cannot really take on and at Verizon, we are all about IoT. And IoT is all about what's going to happen in the future. So thank you. That's my story to you today. And have a good conference.