 Live from Las Vegas, it's theCUBE. Cover EMC World 2016, brought to you by EMC. Now, here are your hosts, John Furrier and Dave Vellante. Okay, welcome back everyone. We are here live in Las Vegas for EMC World 2016. This is SiliconANGLE Media's theCUBE. It's our flagship program. We go out to the events and extract the signal from the noise, I'm John Furrier, my co-host Dave Vellante. Our next guest is Bob Rubinog, the VP of EMC's Global Services Marketing. Welcome back to theCUBE, Cube alumni. Great to see you. You've got your sport and your shirt doing booth duty. Welcome back. It was booth duty and the future ready pavilion today, yes. You look great. Great to see you. But some notable things you've been involved in. You guys did a joint survey slash study with EVMWare on the state of IT transformation. A little bit different kind of study survey. Take some time to explain what that is about. What is it? How did it come about? And what are your findings? Yeah, it's great. It is a little bit different. So EMC and VMWare have actually been running these IT transformation workshops for some time now. And these are one-on-one workshops with customers. Half day, fee-waved, and we're basically trying to assess where's the customer today when it comes to the state of IT transformation? Where are they trying to get to? Where are the gaps? How do they stack up against their peers? Everybody wants to benchmark themselves. And we have a workshop on this. And so we've been doing these for a while now. And it occurred to us not too long ago that we're sitting on this mountain of valuable data from the workshops that we've done. So we actually ran some data analytics. These are workshops with customers, your customers, and VMWare. That's right. That's right. So we decided to actually analyze the data that we had been sitting on. And we came out with this state of IT transformation report. So what's a little bit different is that instead of a customer just filling out some survey and kind of mailing it in. I don't know if any customers say they prefer XYZ. These are based on half day engagements of what customers are actually doing. And talking about architecture, they're trying to plan their future so they were very engaged, sharing a lot of probably inside information around what they're trying to do. So that intimacy was valuable. Obviously being data driven as EMC is, you want to harness the data. What were the results? Share the findings. What was the top level kind of like anecdotal trend? So I guess the big picture takeaway was kind of a mixed bag. So on the one hand, it was great to get validation that most customers are, they're thinking about transformation. They're planning for transformation. And in some cases, they're even starting to take action. But on the other hand, it was a little surprising and maybe even disappointing to see that most customers are in the planning stages, maybe in the proof of concept. And based on where they are today and where they say they want to get to, we got a long way to go. So there's a lot of work ahead. So what is the operational mindset of these kind of customers? Because I'm sure Cloud has probably awakened them to the fact that the operating model of what they currently have, and in traditional sense, I use the word legacy, Steve Manley, oh, not legacy. But I mean, there is some legacy traditional infrastructure that's running the businesses. It's the engine room. But yet now the agile DevOps world brings the whole operational model around IT. That's right. Was that a factor in? This is right at the heart of it, right? So we kind of broke the topics up into four areas. One was focused on infrastructure transformation, so changing how IT's built. One was focused around the operating model, how IT operates. One was focused around applications, both legacy and new. And then the final area was around your overarching strategy. And one of the things we learned was you really have to have the CIO involved in the workshop. It doesn't really happen without the CIO because all the decisions get deferred. And so for each one of those areas, for example, in infrastructure itself, this was all about the degree to which you're virtualized, the degree to which you're adopting hybrid cloud. And we found relatively high degrees of virtualization, but when it comes to cloud, even at the infrastructure level, right? When it comes to cloud, everybody wants to get there. By far, the vast majority of folks are in the proof of concept or evaluation stages. So one of the stats that came out of the report was 90% of the folks who went to the workshop have no way to evaluate their workload, which workloads are suitable for hybrid cloud, but they want that, is that right? They want cloud, but how do I figure out which applications and which workloads are best suited for hybrid cloud or public cloud and which type of a public cloud? They don't really have a means to figure that out. So what do they do? They call you? Well, that is one of the outcomes of the workshops, right? So we have this application advisory service where we have an automated approach where we can look at your applications and your workloads and very quickly, look at all of them, not just one or two. But we have a big data engine that will ingest all of the data and kind of come out and say, hey, these applications based on your requirements for performance, availability, cost, et cetera, we'll say that these workloads are best suited on hybrid cloud, these workloads are best suited on a certain type of public cloud, these applications, maybe you should leave them alone. So Guy Churchwood this morning in the keynote had a very simplistic model for sort of determining what goes where and it was sort of, I guess, time-based, how long, you know, hold the asset. Sounds like you guys go much deeper. Yeah. The parameters are value, cost, you know, agility requirements, that's all I hate. That's right, that's right, yeah, yeah. And so that's a part of it, right? And then you look at the operating model and again, in the survey, it's very clear, you know, everybody gets it, right? I need to move to a model where I'm, you know, delivering services. But again, the vast majority, you know, doesn't have a service catalog, doesn't have a portal, you know, doesn't have, doesn't have, doesn't have. In fact, I think we found something like 90 plus percent said they know they got to get there. I think 4% felt like they were there. It's interesting, you know, we see a lot of different customers and they're your customers' customers also looking at their environment. So there's kind of a mentality of do I have a blind spot? What am I trying to do in the future? What am I doing today? So balancing a lot of these things and saying how do I get a 360 view of my environment? How am I doing? It's almost like a benchmark of progress. So it's kind of like my kids when they get the testing at school. Okay, you're smart to go to the next grade. What is that take away here? Because you could argue that even seven years ago, DevLabs was just emerging as a concept, now creeping in. Is there a trend that the survey dispensers are saying, hey, I'm here, what is the progress bar? Are they early on? Do they feel they're digitally transforming? Do they feel they're ready? Are they halfway there? Is there any kind of anecdotal data that you can share? Well, it varies a little bit by industry, but I think one of the things that has gotten customers interested in the workshop in the first place is because we will plot out, here's where you are, here's where you say you want to be. Let's benchmark that against either the entire database or we can just take a slice for your industry and we can even show you where the best in class are in your industry. So if you're saying you want to be out here and the best in the class is back here, we might want to scale back what your next steps are. We want to be kind of practical, exactly. Total reality check. So some of the other stats, if I may. So 4% of IT organizations, I love this stat, 4% of IT organizations said we're not siloed. 96% said yeah, of course we're siloed. Not a surprise. Provisioning for most folks took a month. So that's a little disappointing, right? With all the virtualization and automation that we think we've gone through as an industry, most folks still take a week to a month. I wonder how much is that tech for people or process? But the top 20 were a week, a day to a week. Okay, so a day is pretty good. And then accounting was all done project by project. Primarily. So they're not doing showbacks, they're not doing show specs. And then this one was really stood out. New software releases take six to 12 months on average. Wow, and even the top 20, three to six months, I mean, we always talk about pushing code daily, right? Weekly at least. That's right. And that's the new month. That's alarming. Yes, so when we look at the application transformation, we're looking at both legacy applications. Do you have an ability to migrate, replatform, whatever? But I think let's really focus on new app development. And right there, people still have that old waterfall approach to the big code releases. And that's clearly what we saw. What surprised you the most? If you had to kind of say that, that you didn't expect, what kind of knocked you off your chair or gave you a shock like, wow, I didn't really expect that? You know, I guess I would have to say, we all know that technology is the easy part. People in process is the harder part. So we weren't terribly surprised by what we saw with skills, organization, that difficult shift to that service broker mentality. But if you go right back to the applications and the infrastructure, I mean, cloud isn't a brand new concept. It's kind of been with us for a while. And yet, you know, by far we see people are still kind of kicking the tires and trying to figure out and taking that first, you know, proof of concept kind of step. What about security? Okay, I got to ask a security question. Because one of the things that's not clear at this show, at least as resonating to the top of the conversation, is security. It's not what we always talked about. But there's no real security moment. But we did have Stephen Manley on really highlighting this ransomware trend. Does that come up in these anecdotal sessions with the customers, the fear of hacking, the fear of security, the fear of like a ransomware? Of course it comes up. I mean, especially we're talking to enterprise customers, their business and mission critical, you know, applications. So, you know, if they're going to move that to a cloud, whether it's on-prem, off-prem or whatever, you know, you got to be able to show what have you done from a security point of view. And this kind of, to some degree, it goes right back to the workload evaluation. What are your requirements, your business requirements for performance, availability, security, et cetera? So would you say that the lack of, quote, trending of the conversation means that it's pretty much inherent in all conversations? Do you find that in the sessions that it's table stakes? Like, hey, why have you been talking about it? It's mandated. I don't know if it's table stakes, but certainly it has to be embedded right into pretty much every conversation we're having. So these workshops, they did like over 600. Yeah, we've actually done over a thousand of them. We did a data analysis on a subset. And these are for-pay workshops? No, these are fee-waved. Okay, so they're kind of a upfront part of the pre-sales process, maybe? That's right, that's right, yeah. But you get the right stakeholders to participate. And then I noticed the industry split was interesting. I mean, I guess it's not supersede by the healthcare and government, or I don't want to say laggards, because everybody was sort of a laggard, right? Well, and you know what's interesting is, don't forget, these are healthcare customers rating themselves. Right, no, they're being honest about themselves. They're saying they rated themselves lower than any other industry. But even financial services, which is leading, typically leading transformations, still middle of the pack. Yeah, well, one of the interesting things that we've been seeing with the financial services customers is almost as if they've gone from worst to first. So they seem to be dragging their feet for quite some time. And then very recently, it's like they woke up and it's like, man, all in transformation. Forget about this journey of first step, second step. We're all in application, operating model infrastructure all at the same time. Right. It makes sense, they see the real time, all those benefits. Yeah, there's no more time. Barb, thanks so much for coming on theCUBE, sharing the insights on the state of the IT transmission work you've done. Thanks for having me. Impressive, great stuff. This is theCUBE, you're watching. I'm John Furrier with Dave Vellante. EMC World 2016, you're watching theCUBE. Looking back at the history of Dell,