 Live from San Francisco, it's theCUBE. Covering Micron Insight 2019, brought to you by Micron. Welcome back, everybody. We're here at Pier 27 in San Francisco. Beautiful day. David Floyer is my co-host. I'm Dave Vellante. And this is Micron Insight 2019. Jeff Bader is here. He's the corporate vice president of the embedded business unit at Micron. Jeff, great to see you again. Thank you, nice to be here. So, love to talk about autos, IOT, edge use cases to talk about the focus of your team. Let's start there. Yeah, sure. So the embedded business unit is at two points. It's absolutely focused on the automotive industry, what we call industrial markets. So factory automation, surveillance and so on, as well as the consumer electronics businesses. And we're really, and across all of those, sort of focused on how connectivity and compute is changing inside of those. And of course, how that drives memory and starts. I mean, yeah, memory and storage, they hide in places that we use every day. You don't see them, but if they weren't there, you wouldn't be able to use all these devices. They wouldn't be as life-changing as they are. So, you mentioned some of the consumer stuff. Kind of, what are the big trends that are driving your business? Well, I do think it is absolutely that sort of the ubiquity of connectivity, first of all. And then sort of the ubiquity of compute has enabled all of these, what used to be sort of isolated applications to now be connected and doing a whole lot more analytics inside that machine. So you think about intelligence in your thermostat on the wall. You think about intelligence, obviously in the automotive business where safety features and so on are using so much more electronics and AI and machine learning. And that's happening really in every application, whether it's the smart speakers at home, voice control on your TV and so on and so forth. All of those drive more intelligence and more connectivity and then more memory and storage behind that, right? When people talk about automotive, of course everybody wants to talk about autonomous vehicles. I love to talk about autonomous vehicles, but there's so much action going on in today's vehicles. Dozens and dozens of microprocessors throwing off all kinds of data. So, give us the update on the automotive industry. What do you guys do? Yeah, you're exactly right. Autonomous gets the headlines and it will for several more years just be headlines more or less, right? And the real story is what we call ADAS or Advanced Driver Assistance System. So things like lane departure warning or lane departure keeping, things like auto emergency braking, those sort of much simpler, easier problems to solve are still very compute intensive and so are driving huge growth in electronics and memory and storage inside the car. The other major part of the car market and the automotive market is what we call infotainment, sort of that center console, more and more large screens going into that, more high function capabilities being integrated in that, whether it's navigation or streaming media services and all of those are driving, again, a much richer mix that's required for those applications. I was at the ARM conference and they were talking about automotive and some of the challenges there. And one of the most fascinating areas that we were talking about is how do you make something that will last for 20 years of a car and make it such that if it does go wrong, that it can recover seamlessly. Can you talk about some of the technologies that you're having in that area? Sort of two parts to that unpack a little bit. First, sort of what does it take to succeed in automotive? First of all, it's all about quality, right? It is quality, quality, quality, location, location, location, it's quality. It's reducing and eliminating defects. Fundamentally, at the end of the day. And so, inside of our process design, inside of our technology design, our product designs, our product manufacturing flows are all designed to sort of fundamentally improve and continue to improve that quality level, right? Because at the end of the day, that is what makes or breaks you in the car. As soon as you solve that small problem, the next problem is longevity and stability of that solution because the design cycle itself is shortening an automotive, but it's a very long design cycle. And then the life cycle in automotive is still very, very long. I mean, the average car on the road in the US is 12 or 15 years old, right? And that needs to both continue to be viable, but also often need to continue shipping that product. It's going to ship in small volumes or have spares and replies. So we have a strategy that's sort of focused on both bringing those leading edge technologies that Micron has into automotive as soon as possible, and that timeline is shrinking, but then also having a very long life manufacturing strategy to continue to provide those for so long. So you're certainly a leader in automotive. You might even be the leader. I'm not sure, I don't necessarily have the data, but what is it? You mentioned quality and those other factors. What is it that's allowing you to do so well in automotive? Yeah, so we are the leader for sure, right? We're about 40% market share, which is a little more than three times as big as the nearest competitor, right? So leader by far really in automotive, and it's been a very long time that we're in this industry and very focused on. So it is about the product mix and bringing in particular lately leading edge technology into that story. We are at the very beginnings of LP5, the low power DDR5 generation. We're at the very beginnings of that rolling out into mobile applications, its primary markets. At the same time, almost literally the same time, we are sampling and providing that into our automotive customers and our automotive partners to start beginning building their systems around LP5. So that time to adopt leading edge technology is shrinking very rapidly. And so we're able to provide that leading edge technology, sort of coupled with that long life solution. And then one of the areas when you think about being in a 40% market share position, we are investing tremendously in sort of partnering with the customers around essentially defining and driving the innovation that they need to deliver. So we have a number of labs that we've established customer facing labs that were able to bring the customers and even our customers' customers, so the auto OEMs directly into those labs to start looking at usage models and architectural sort of feasibility and optimization kinds of things that we could then plan into our roadmap to follow two or three years later after that. A lot of domain expertise there. So, I said to Derek Dicker that, Micron has a very large observation space. You sell to a lot of different channels and I want to ask you about industrial IoT, because David and I, we spent a lot of time in the enterprise and we see a lot of IT companies saying, hey, here's a box, we're going to throw it over, we're going to go dominate the edge. And then when you talk to operations technology professionals, they're like, no, we're talking about machines and equipment and it's like this whole different parlance and language. So what are you seeing just in terms of the ecosystem, how it's developing, the sort of analog going to digital and that whole explosion? Yeah, again, industrial is extremely broad market and it means a billion things to better people, right? So one of the first things we have to do is sort of narrow that field a little bit, at least into specific verticals and specific areas where we have the right product mix and opportunity, right? So for example, in the space of factory automation, it's a little bit what you were just saying, the operational technology guys are trying to figure out how they're going to drive efficiency, drive productivity inside a factory, right? And that is often a question of instrumenting and putting in, Micron is doing a lot of this sort of smart manufacturing deployment. So putting this sensor network, multiple cameras, multiple high resolution cameras, audio sensors, accelerometers sort of sensors and capturing all of that sensor data to drive things like better predictive maintenance, better sort of yield detection or excursion detection kind of capability. So you can tell this machine seven days or five days out of the week sounds like this, but last night at 10 o'clock it started sounding different. We don't know what it means necessarily, but we can detect that and that's where all of the AI and machine learning is now being applied to say. And that means it's due for a PM about this particular portion of the machine. What about security at the edge? Obviously a hot topic in the enterprise on every CIO's mind, what's happening with security in IoT, industrial IoT in the edge? Yeah, I think to some extent security in the IoT I think is why IoT is where it is in the hype cycle, right? Maybe it's sort of still at the bottom of one of these hype cycles, meaning solving that increasing security problem that the cybersecurity problem at the edge is really a big problem. You saw the hacks a few years back of the Jeep Cherokee, you saw the hack two years back on surveillance cameras, all these cameras moving to IP, surveillance cameras means they're now connected and open to the world. Kaspersky just announced last week a report that basically showed IoT specific hacks up seven-fold this year after being up 10-fold last year. So it's absolutely a growing problem for people thinking about deploying, again, connectivity is a great tool and a great weapon depending on how it's done. So one of the things Micron is doing is we have a solution called Authenta, which is essentially a cyber security as a secure element built into the non-volatile memory that goes in each one of these systems. So today, security is not a one chip problem, it is a full end-to-end system problem. And so what we're trying to build with that is the capability at a very sort of lowest level in the system, right where the code is, right where the core part of the system is to protect that in the memory itself and sort of attest that that is safe and secure and then the system can build out around that. And that sort of simple boot device, in the case of a Nord device or a NAND device, is in every embedded application in the world. Right, I mean, you think about, you go back a long way, Stuxnet, 10-plus years ago with the Siemens controller, which was the, and now you think about, fast forward, how much more infrastructure is out there, how much more complicated it is. It's a scary situation, though. It is, it is. So we think that's a big opportunity and we'll make an announcement later in the show today on an extension of what we're doing already in that space. And are you working with other vendors, ARM and people like that? We are working with, yes. Because it must be an end-to-end. This is really an end-to-end and an ecosystem activity, for sure. Because again, ARM is a great example. All of the SOC vendors, everybody in this industry has some slice of the role, let's say, to figure out how they're going to secure this system. And we're trying to sort of build a basic building block that they can then go build on. Well, when we started this morning, it was real quiet, but the crowd is rolling in now. There's a buzz that you can hear here. The Cube is excited to be here. Jeff, thanks very much for coming on theCUBE. It's great to see you again. Thank you very much, nice to be here. All right, keep it right there, everybody. We're going to be taking a short break. We'll be back, day-long coverage, from wall-to-wall of Micron Insight 2019. You're watching theCUBE.