 Live from the Moscone Convention Center in San Francisco, California. It's theCUBE at Oracle Open World 2014. Brought to you by headline sponsor Cisco Systems with support from NetApp. And now, here are your hosts, John Furrier and Jeff Frick. Okay, welcome back to what here, live in San Francisco, California from Moscone Center for Oracle of World 2014. It's theCUBE where we go out to the event and extract the signal from the noise. I'm John Furrier, the co-founder of SiliconANGLE Media and I'm joined by Jeff Frick with theCUBE. Our next guest is CUBE alumni, Kim Stevenson, Vice President's Chief Information Officer at Intel. Welcome back. CUBE alum, good to see you again. Hi, John. On stage with Mark Heard here at Oracle. What an event. Oracle, past three years, has turned around from kind of the low on-premise, extracting the rents from their customers in IT to really booting up a transformation of the cloud. Intel has been a big partner this year with Oracle really on stage because you win, on your end of the covers, Intel wins with the cloud. So explain to the folks out there this converges with cloud and Intel's role in cloud, especially with Oracle. Yeah, so Oracle's a great strategic partner for Intel and vice versa, us for them. And there's sort of two themes if I think about it. One is sort of the engineered system, right, which is high performance compute. And I use them at Intel as an example for in my manufacturing area, big data transfers between machine to machine communication learning so that we get the most output from our manufacturing process. And the latest systems have just been, they're tremendous performance improvement because our data sets are getting so, so large. And you have to be able to process that to continue the manufacturing process. So that's one thread. The other thread is the software side of the business, which what I would say is Oracle's in the delivery of enterprise business process software. So it's CRM, ERP, HCM, all of the enterprise processes. And those, as an industry, we're sitting at this pivotal point, it's a shift where those software are moving to the cloud, being consumed via SaaS, but the underlying infrastructure is an infrastructure cloud delivery service, which is scalable and reliable and frankly, it's cheaper to deliver. So whether you're public cloud or private cloud, the delivery mechanism is going to be the same underneath. Yeah, so the old famous Larry Ellison Churchill club video from years ago, when I'm talking about the cloud, it's just a bunch of infrastructure. It's true, there's still a lot of compute storage behind the cloud. So the consumption patterns is changing in the business side. So IT has been shifting to a new consumption behavior. What's your take on that, with respect to the trends that you see around IT and how they're deploying technology and also being a consumer of, say, Oracle and other packages? What's the big shift? So, you know, it's funny, I didn't know I had anything in common with Larry Ellison, but the very first time I heard about the cloud, one of my principal engineers was telling me about it and it was probably seven or eight years ago and I said, eh, that's not new. Boy, was I wrong, boy, was I wrong. You know, so if you look at the weather, underlying infrastructure, there is this layer of software abstraction that allows for better manageability, better security, and better asset utilization. So, you know, I'd say, you know, generally in an IT shop, the individual servers were running at, you know, 20% utilization, between Ford and 20%, very low asset utilization. Storage runs less than 40% fully utilized allocated storage and you sort of think as an asset owner, that isn't sustainable. So, virtualization came to the servers first, allowed you to aggregate those resource pools and more fully utilize it. I have environments now that run 89% utilized and 90% utilized 100% of the time, 365 days a year. That's happening in storage, now it's going to happen with SDNs and stuff that's going to happen in the network too. And then you're going to start thinking about those technology silos as more aggregated resources and that gets to software-defined data center or software-defined infrastructure. And again, whether the apps you're going to run on that, they could be SaaS apps that you're delivering to many customers or they can be your individual apps that you're going to keep on-prem for things that are what I'll call your core differentiating value of the company and so for me, it's design engineering and manufacturing. So, Jeff and I were talking before you came on, what we're going to talk about with Kim is so much to talk about, but one of the things that Jeff wanted to talk about, I agreed with was how IT is being evaluated. We want to get your perspective on this because you're also, you run the IT until you know you guys are early adopters and bleeding edge. Also, you talked to a lot of customers and as a lead into the question, Jeff Kelly at Wikibon recently did a survey with customers where they talked about Hadoop in particular, it's more of a reference to the conversation point is that the evaluation was how is IT doing with Hadoop? IT gave themselves great grades. Oh yeah, we deployed clusters, we're in a POC. On the business side, the grades weren't as good. So you saw a new dynamic of the business outcome side of the market was the business owners and the IT guys thinking they're doing great because they're deploying, they're checking the boxes. How should IT be evaluated with that kind of in context? Is there now multiple stakeholders that need to be taken and is this the same old game? What's your take on that? So I would tell you that there are really four value vectors that an IT organization can deliver. So first you have to be IT efficient. It's IT efficiency and that's cost performance just like any part, then business efficiency. So think about IT at any company is two to six percent of revenue. You really want the 94 to 98 percent of the rest of the business to be efficient and that's through technology that enables that. Then you got to help your business grow, right? Growth kills a lot of ills and companies and I can give you some examples of how we're helping Intel grow. But then there's the soft part that's traditionally difficult for IT to justify and that's employee productivity. And so I always say things like, I remember justifying I am. I couldn't justify it from an ROI perspective but instant messaging is a productivity enhancer. And so there's always stuff like that and now you're seeing the use of social and stuff inside the company for frictionless information flow. They're hard to justify but employee productivity is a big part of it. So that's, I always measure that's how we should be evaluated against those four value vectors. You mentioned Hadoop and the difference in of the business unit in IT. So Hadoop on its own full disclosure, you know, I'm on the board of Cloudera so I have an opinion. But on its own it's- Bias opinion. A biased opinion, a biased opinion. But you know, it's hard, right? You have to layer something on top an analytics engine, some ability to do something. And so that's why the business units find it hard. I had a project in IT. We were using another product, not a Hadoop product. We moved to Hadoop in 10 weeks, cut the cost significantly. And so there is this huge, the entree of this world is that you'll see storage cost management and cost reduction and utilization. But then you're going to see a layering of application capabilities on top of that that are going to really bring high value. And the marketing firms are the best ones today. They're the most mature in this space but it'll grow into I think all industries. So Kim, I wonder just to expand on your, how do you get ROI on instant messaging? I think that's interesting. But there's a huge trend that we talked about a lot in terms of the consumerization of IT in that people have an expectation of the way an application should perform based on the way they interact with Amazon, the way they interact with Facebook, the way they interact with Zulu, these hyper scale single application companies and they're the younger ones especially coming to work have that same expectation. So you've got that trend and then you've got their ability to throw a credit card down to spin up a VM at AWS to do a little project. So I wonder if you could talk about the challenges that those two trends present and how you deal with them in the day to day world. Yeah, so first of all you have to accept that I always thought there's a time BG before Google that in the BG era you could, you did IT for the enterprise and for the business process and it was better than anything you could get in the consumer market. And so users would just consume whatever you had and they actually went to like a classroom and got trained. Like no one will do that anymore, right? And you now are in this area where consumer IT is better than enterprise IT and that's what as professionals in the industry we have to grab onto that. It means shifting your emphasis to be more user centric. So it's not about a single service, it's about how those services interact with one another. And search is a great example because for one of our biggest challenges and I would say I'm not alone is our employees finding the information they need, we're big companies, finding the information they need easily. So they get- Within your own- Yeah, so they'll go do a Google search or a big search on the internet and they can get a whole bunch of information. They come inside and they can't get everything. Why? Because I lock down some things that I don't want people to see because we don't have the right metadata tags and we don't have automated data tagging capabilities. These things prevent that experience and we have to change that. So I'm working really hard to change that. But let me tell you, that's a couple of years, right? You, we have 45 years of data history in Intel and most of it's not data tagged and so we're going to have to go through some- And not hundreds of purpose built PhDs that are specifically tackling that problem. Right, right, right, right. And then what about the shadow IT thing? How is that? Because I would say there's probably going to be a time before Amazon or AWS in this equation too where people didn't have that ability and they were happy to wait and make a request with things with their acquisitions. Now you don't have that, you don't have that advantage anymore. So how has that kind of changed things and how are you providing better service? I embrace shadow IT. I actually hate the label shadow IT. And here's why. So all businesses are becoming digital businesses and the more your customers that are technology literate, the better. So what drives me crazy is this idea that you sell to either the business or IT that you sell around. I hear a lot of vendors talking about that, oh, we can't go to IT but to go sell around it. And I'm like, you're crazy. You're just, you're going to slow your sales cycle because what you should be doing is bringing, unifying, letting the company partner together to bring the best of what the solution can be. So you're saying that's a cultural issue then. So there's two issues. There's one, bypassing IT is also one, dysfunctional. I can get away with it to a point but at some point it becomes very toxic. Is that what you're saying? Yeah. Because both the culture should be partnering with IT. Yeah. And look, I think we made the bed we wanted. Of course there's a CIO, you don't want anyone bypassing IT. Yeah, but I get it because we made the bed. We trained people that were difficult to work with and so therefore they're going to go find an easier way to work. What we have to do is change our behavior, trying to enable the advancement of the business through the adoption of technology. And we got to do that in partnership with the business. We partner really closely with our marketing team as an example and they just, they're marketing domain experts. They know things that we won't know but we know things they won't know. So it's a complement of skill. So just to get drilled on the shadow IT because that's important because, but you have, we've talked about this before. You've essentially from the top said no shadow IT because why doing the shadows, it's on the open. You guys have operationalized what people, why people are using shadow IT. So it really comes down from the top. The CIO has to put down and how does the CIO one get a handle on shadow IT if it's happening using APS? Is it just simply a mandate? Is it a cultural shift? Is it you put a new lieutenant in place? What happens? I saw this stat earlier this year and I believe it's true that 0% of the businesses know today all of the services, IT services they're consuming. And I believe that's right, we don't know. We don't know everything we're doing. So there are some cool new security products out there that give you some visibility into what people are consuming. And I think that that's a, we've been implemented. I think that's an important step. But so we can create that visibility but you really have to, I went to the business and I said, what are your strategic objectives? What business problems do you have? And I said, how do you think you're going to accomplish those? Do you think you can accomplish that without information technology? Not the organization, the capability? Well, no, of course I can't, it's a digital world, right? I'm like, well, don't you think you should expect more of us than to simply keep the lights on? You should expect us to help transform. And that changed the dialogue. Yeah, and how about kind of the application center for this? You know, I assume a lot more kind of application demands coming out of the business side that they're asking you to help out with versus kind of pure infrastructure and big projects and HR and keeping the fabs running those types of projects. Right, so process, business process simplification is a next big endeavor across the industry because, you know, whether you've grown through acquisitions or expansion, geographic expansion, you know, we, and big companies, we've let processes be developed and grown organically and now there's differences. And so as you go to these big cloud applications, you have to have process standardization and that's a partnership with the business to make that happen. In the process of standardizing, you design for your future. What you really need it to be, right? And so it's a challenge, but it is what IT is good at. We're really good at change agents, being change agents for the company. So one of the themes coming out of the show here obviously is the salesforce.com competitive thing that Larry talked about yesterday. But one thing that's not being talked about that heavily online, but did get teased out by Larry is this marketing cloud. And so we've talked about this before on theCUBE where, you know, you talked about consumer IT earlier and BG before Google. So what's the AG after Google? Because we're now kind of Googles out there with respect to data-driven competitive advantage, meaning if all things in business could be instrumented with data, then technically an organization should have visibility on all aspects of their business in real time, which we see as a shift, not 100% there yet obviously, but the marketing cloud is one kind of teaser to not just selling stuff to customers engaging the customer who speaks to the growth. How do you talk to this trend of everything's being instrumented, you should have all aspects of data in real time. How do they get that going? How does an IT person get to that moonshot position? Yeah, so, you know, I can, how to speak to what we, so our company going through the shift that we're in, right, from PCs to mobile and internet of things. So one thing you know about compute is compute gets smaller and smaller and smaller and more powerful every time. That's Moore's Law. So, you know, we really had to assess our marketing message. You know, we have a great brand, but not a brand that's relevant for the future markets. And we're Intel inside. We're inside the PC and inside the server. And so we really sat down with marketing and tried to help them under, us understand what their challenges were. How do we, you know, by the way, they weren't getting any more marketing money, right? So we said, well, could we make it more effective? And so the example I gave this morning was, you know, we implemented social listening, campaign management, data management and marketing automation using a lot of Oracle solutions to create a new pipeline. And we went from marketing qualified leads costing $300 per qualified lead to $25 per qualified lead in less than two years. What other function has given that much productivity in that amount of time, right? And that's- Now the leads get more complicated because now you've got social. Now you have email addresses, that's old leads, but now you've got new leads. If I never received another email from marketing, I mean, I just delete them all. It's such an antiquated way to do business now, right? It's all about the engagement that you can get through social. So we got to talk to you about one of our favorite topics because we were, we love women in tech because we've been, that's now fashionable. We've been loving women in tech from the beginning of the cube. You're actually doing some great work in ladies in tech. Share with us what's happening with the role of women in tech. So share on computer science and science degrees, industry acceptance, board seats. You're on the board of cloud air, great company, we're friends of with, Mike Olson on our great, great company. What's going on? What is the status of women in tech? A lot of momentum, a lot of great buzz, quality people, give us the quick update. So I am very, very positive on progress. But I'm a glass, you know, half full kind of gal. So from an Intel perspective, you know, we're really investing in girls in a full pipeline. So it starts with girls in countries that aren't allowed to go to school. So there are places in the world that that's true. We're trying to enable them to go to school. We're offering scholarships in some cases to help them be able to go on to university if they graduate, right? Then in school, you know, we do everything from local reach out where our employees reach out to volunteer programs like running, you know, after school programs in tech to training teachers around the world. We've trained millions of teachers around the world to coming out with great tablet products that can be used in the classroom. And in many cases, you know, we had one team go to place in South America out on an island to build a school. And there's no electricity on the island, but we wanted to put Wi-Fi in. So what we did, we put solar panels on the roof. So they have Wi-Fi, but no electricity. So we are, we're just really trying to build a whole pipeline. But when you get into the workplace, you know, women often feel a sense of isolation. You're the only one on the team, right? It's styles are different. Men and women have different communication styles. And so I spend a lot of time trying to help people understand that different isn't good or bad. Different is different. Different is different, right? Different is different. And then once we understand each other, right, where you might be coming from, you can see the wisdom in what somebody is saying. So, so a lot of great progress. And with connected technology, internet of things, you get more internet access from both places. People can collaborate. Really changing that whole consumer aid. Yeah, yeah. Really fast there. Well, Kim, final note, share with the folks out here your perspective at Oracle Open World this year. Share the big story from your perspective from Intel, Oracle, your keynote up on stage, talking to customers with Mark Herd. What's the buzz here? What's your view of 2014 at Oracle Open World? Yeah, so first of all, the energy is amazing. I was up here at seven o'clock and people were lined up to get in. So it's always exciting to be around, you know, a bunch of like-minded people. But the big thing is, I'll say to cloud or not cloud. Cloud is happening. My view is it's going to be a hybrid world. Oracle's showing you here how to go hybrid with Intel helping. And, you know, my view is, you know, everything's going to be smart and connected and we're going to make sure that that works best on Intel. Kim, thanks for coming on theCUBE. Really appreciate you coming on. Great work here, Intel. Obviously, Intel inside is really paying off the bet in the cloud you guys made years ago. We've been documenting it. You know, big risk for Intel to bet a lot on the cloud. You know, five years ago, now paying off you guys are inside the cloud. And again, compute's just not going anywhere. It's still in the cloud. It's somewhere. You still need servers to power things. As we always say, the cloud can't run without you. This is theCUBE, we'll be live in San Francisco. We'll be back with our next guest after this short break.