 through the power of technology. We stand at the edge of infinite possibility. Unprecedented computing resources will soon be everywhere. And what was once the domain of only the largest and wealthiest enterprises will soon be within reach of everyone. Power that would have been unimaginable just a few years ago will seem paltry just a few years from now. In a del world this year, we're going to tell a story about practical innovation at scale. About not just transforming our own corner of the world but collectively transforming the world itself. Let's roll the video. It always starts with one. Maybe it's a student in Nigeria with limited access to electricity. So you build them a computer lab inside a solar powered classroom or it's a designer who needs to connect with the right vendors to keep up with demand. So you help create a system to power the world's biggest online marketplace or perhaps it's a patient with cancer. So you provide your doctors the power to crunch over 200 billion data points of genomic information in a matter of hours. Or how about the CEO of a large company in a changing industry so through the cloud you help a transformer business for a digital world. Now take that student, that designer, that patient, that CEO and multiply them. And here's what we have. The next billion students equipped to learn. The next billion entrepreneurs enabled to thrive. The next billion executives primed to lead. The next billion patients allowed a second chance. The next billion you name is on the verge of doing the very thing they were meant to do. Because of Dell, we never stop making the promise of technology a reality. Cloud, data, mobility, security. These are solutions we're striving to better by the day. For over 30 years, this is how we've done it. Empowering over a billion innovators, ground breakers, trailblazers, visionaries and builders along the way. And now, we can't wait to see the next billion. Now we're just getting started. Peter DeMondes will be on stage tomorrow and he's going to give you a whole new perspective on our accelerating ability to deal with the world's biggest challenges. The forces of cloud, big data, mobile and social are advancing human progress more quickly and more fundamentally than at any time in human history. And in partnership with all of you, we've never been in a better position to invest in the future than right now. At Dell, we are obsessed with finding a better way. We are driving radical simplification and innovation from the PC to the data center to the cloud. And we see a clear path to an order of magnitude lower cost and we can do it at scale. We recognize the seismic forces in a reshaping technology and we've been aggressively executing a consistent strategy for nearly a decade to get out in front. We've invested heavily to become the leading provider of end-to-end solutions that matter to you most. But more importantly, the position you to succeed in the years ahead. And to me, providing end-to-end solutions means, of course, you need both ends of the solution. We are fully committed to all of our businesses now and for the long term. You can depend on Dell. There is a lot of turmoil out there in the industry. A lot of big companies are going through major organizational transformations. They're splitting themselves up every which way. And you have to wonder, who is this for? Does it help their customers and partners? Does it advance the research and development agenda or create better products and services? Or did somebody wake up and think, hey, customers and partners are really going to love the chaos, the synergies and the complication? People ask me all the time about the advantages of being a private company. Being private allows us to focus 100% of our energy towards creating success for you, for our customers and our partners. Focusing on a future that is far beyond the next quarter or the next year. That's where we're headed, together. And I don't know of a company that is better aligned with its customers and partners than Dell. We have about two billion conversations a year with customers. And we do our best to learn from all of them. In the last year alone, it's been my privilege to meet with thousands of you around the world. I often think I must have the best job in the world based on who I get to learn from. I get to travel around the world, meet with heads of business, heads of state, entrepreneurs, thought leaders, engineers, technologists, scientists, educators, doctors, manufacturers. And I can tell you that the conversations with those customers are really changing. It's not just about bolting on a digital component to an existing business model. That's clearly not enough. It's not about incremental improvement either. It's about wholesale digital reinvention. And later on this morning, we have Andrew McAfee and Eric Brynjolfsen speaking on the stage later about this. But rather than listen to me tell you what our customers are thinking, I'd like to welcome one of you on stage to share your story. Emerson is a company that we've been working with for more than 20 years. And they're a leader in the digital transformation of their industry. And now they're helping their customers do the same thing. So please join me in welcoming to the stage Peter Zornio, who is the Chief Strategy Officer for Emerson. Peter? Excellent. Thank you for being here, Peter. My pleasure. Tell us a little bit about the Emerson Process Management and the problems that you're trying to solve for your customers. Sure. Emerson Process Management is a part of Emerson Electric. We're about a $9 billion unit of Emerson Electric. And we provide complete automation solutions for the process industries. And when I say the process industries, I mean fundamentally companies like energy industries, oil and gas, power generation, chemical manufacturers, bulb and paper, pharmaceuticals, pretty much anybody who manufactures by having stuff move through a pipe. And we... That's a lot of stuff. That's a lot of stuff. It's a lot of products that we all use every day. For instance, we produce half... Our systems produce half the electric power that's used in North America, for instance. And by automation... Please keep doing that. Yes. Liability is a big part of the solutions we provide, thanks to you and your platforms as well. The reliability is very high. So our solutions basically are end-to-end. We provide all the sensors that measure the process variables. We provide the control systems that run the software systems to provide the visualization of the operations folks, the history, advanced applications. And we provide the final control elements as they're called, the valves and such, that actually control those facilities. So we also do the services. We come and provide the project services to install those. And then we provide the ongoing aftermarket services to keep those solutions running at peak efficiency. So you're really a leader in the Internet of Things. And as you put sensors throughout these systems, what I've seen as I've understood your business is you're using analytics to bring expertise to help the customer achieve their objectives. Talk a little bit about that and how it's changed with the ability to put sensors throughout the network. That is exactly the term we use for it. We're in the middle of a revolution that we call pervasive sensing. The idea behind having smart intelligent sensors providing you extra information, that's not a new idea in these process facilities, because for the last 25 years, we've been using intelligent network sensors to control the process, to be the fundamental basis that we do these process control solutions on. What is new is with the advent of wireless technology, with the cost of computing power solo, all the same transformations that we all experience in our daily lives and in other application spaces, we're seeing sensors go into areas of these facilities for applications that we never thought of before. So sensors are going in not just to control the process, but sensors are going in for applications like safety, environmental monitoring, energy management, monitoring energy consumption, lowering costs of energy consumption, and then reliability. Reliability is actually a big area that we see that happening in. And then of course all the software and data analytics and applications that goes on top of that, because there's no reason to measure anything if you're not going to do anything with the data. If you're not going to eventually go through and have appropriate actionable information that you're going to do something with, don't bother measuring the piece of information collecting in the first place. So we've been working on all new sensors to measure things like equipment health, corrosion, all those things as well as data analytics to go with those to provide that actionable information. And during the 20 years that we've worked together, your industry has kind of shifted from a proprietary type system to really embracing open systems. How have you successfully navigated that and how has Dell helped to do it? So prior to the advent of really the PC revolution, all these systems that control these facilities, ourselves, our competitors, we all built all our own hardware, we built all our own networking software, we used to joke we'd start from sand if we could and manufacture our own components. But then as the PC revolution occurred, we figured out we really can't keep up, we really need to jump on this technology revolution and of course Dell was a natural partner for us. Dell was of course leading the PC revolution and continues to do so. And so together we kind of started the whole trend to using open systems technologies for these solutions rather than the proprietary technology we've been using. And over the years I think between ourselves and Dell we've worked on some of the issues that some of our customers have felt in that transition, things like making the delivery model look more transparent to them in terms of them getting a complete solution. So we've been able to for instance preload all our solutions at Dell facilities and have Dell directly ship complete preloaded application solutions to customer. We've worked on issues like longer life cycle support, a lot of these customers life cycle support is a big issue. Not that they're unique but in that industry it's a big deal. So together I think we've done a great job of really getting the whole industry to transform over the last 20 years to where open systems is the standard that all these platforms are based on. And Emerson is a big successful global company. You've got a lot of partners you can choose from. Why Dell? Dell is a successful big global company and it's true about two thirds of our business is about outside of North America. We go where our customers go and our customers go where the natural resources are whether it's minerals or oil and gas or growing populations that need power. So we have to be all over the world and we need a partner that can be all over the world with us both from a delivery and support point of view. We obviously believe you're a technology leader continue that start that was kind of the basis of our whole partnership continues to be a strong one. And I think we've got a very complimentary mindset when we tackle customer problems together. A couple of examples and joint collaboration we've done lately is on security. Cyber security of course a hot topic for everyone but is especially hot in our space because we're serving critical infrastructure industries things like power and oil and gas as I mentioned that are receiving extra attention in the cyber security realm now together so we've been collaborating on that and also on some new platforms that we think work well for both of us like the Vertex. There's a great example of a platform that we think fits our particular application and space really well and we were in early with your development team on that and one of the early alpha testers and are helping to make that be a platform that we think will be great for our industry. Excellent Peter thank you for coming on stage with me and thanks for sharing your story. Thank you. So Emerson is a great story and Peter is a fantastic partner and when I talk about the privilege of getting to learn from our customers that's what I'm talking about. And in the thousands of conversations that we have with customers we've identified four customer imperatives and these are really what we see as the greatest opportunities to unleash your organization in the digital era. We call them transform, connect, inform, and protect. And we've aligned our entire business around your imperatives and I'm going to take a few minutes to highlight the progress that we're making across each of these four dimensions. Transform is really about data center transformation and I can show you the future of the data center. We have 15 solution centers now in 11 countries around the world where you can run your workloads on a cloud based model. You can see how our high velocity cloud can move 8 million packets a second allowing a single server to easily manage the voice traffic of a medium sized city like for example a city in Boston. Or learn how compute resources can scale instantaneously as your workload increases and how management software can automatically provision a new virtual machine to meet that demand. We're really moving beyond software defined data centers to software based data centers. Now it's a difference of just a single word but it really has huge implications. Instead of software to manage the silos of today's data centers it's really moving to a future where the data center where those silos are just gone and the only difference between compute network and storage is the software running on the box. And upgrades are easy just slide a new server in into the rack and deploy new software. Agile, efficient, scalable an enormous pool of computing resources at your command. And in the last year we brought more of our vision and innovation to customers than ever before. Our enterprise business is on a roll. It's growing, adding customers, partners and gaining share. Innovating like never before. In fact we're in the middle of a complete refresh that establishes leadership across the portfolio. We just introduced our 13th generation PowerEd servers. Like the R730XD this is a 2U server supports up to 100 terabytes of storage in a 2U platform up to 36 microprocessor cores up to a terabyte and a half of DDR4DRAM. So 100 terabytes in a 2U means that this can support 10000 1GB exchange mailboxes in just one server. Pretty amazing. It's also perfect for all of these new software defined storage platforms and scale out applications like Hadoop. Now server innovation is more critical to you now than ever before because storage and networking are moving into compute. And flash memory behind the servers is radically improving overall system performance. And we're breaking new ground in open software defined networking. Now think of the telcos. This is an industry that is poised for revolutionary change. And here at Dell World we're announcing the Dell network function virtualization platform to accelerate carrier trials and adoption. It's powered by our latest 13th generation powered servers Dell Open Networking and Dell Software. Anywhere at any scale an open partner ecosystem open source and open standards. And in storage Dell is number one in total terabytes sold. IDC reports that we shipped more than 4.3 million terabytes in the first half this year. We grew 14.8% sequentially when compared to the second half of 2013 while others declined. And since the acquisition of Equalogic some seven years ago Dell has been number one in iSCSI storage for each of the last seven years. Thank you. And now with the introduction of our next generation the PS4210 which starts shipping today we're building on all that success. This is a 10 gig iSCSI array with 80,000 IOPS performance. That's a six times performance improvement from the prior generation. One 2U PS4210 will support up to 48 terabytes. All of this with a starting street price of under $15,000. We also just launched the Dell Storage SC4020 the industry's best tiered solution in the fastest growing segment of the market. And we're setting a new industry standard for value with the SC4020 all flash array. It is dual controllers in a 2U tracy and both the SC4020 and the all flash array version will start $25,000. The lowest entry price for an all flash midrange array by any major vendor in the world. And now I would love to introduce all of you to the Dell DCS XA90. This is built to handle the storage needs of the exascale future. Up to 990 3.5 inch drives in one 4U chassis capable of storing 720 terabytes of data. This thing is cloud scale storage to the max. Now I'm telling you this thing has the power of a diesel truck in the form of a Mini Cooper with just one rack of XA90 stored servers you could store 279 years of streaming HD video or 2.5 billion high resolution digital pictures. Now we're taking this same philosophy to our engineered solutions a workload orientation engineered with the vendors and partners that matter to you most tuned appliances that are optimized for each application. We're working with leading ISVs like Microsoft VMware, Oracle, Cloudera, SAP and Red Hat and now Nutanix to accelerate the adoption of web scale that converts infrastructure in the enterprise and when it comes to converts infrastructure we continue to lead through innovation. Vertex brought converts within the reach of small medium size businesses while meeting the needs of the branch and remote offices and now we're introducing the FX series Cloud in a Box this is the ultimate in converge infrastructure combining networking storage, servers with extraordinary value and manageability and incredible performance I'd love to share the experience of an early customer for the FX series let's have a look. We're in an ever evolving healthcare market and we're constantly asked to do more with less Overlake is a not-for-profit medical center. We have 349 beds serving the Puget Sound region specifically in Bellevue, Washington as fundamental as it sounds one of our greatest challenges is to combine our compute and storage resources into smaller and more easily managed buckets to keep up with forecasted growth so the biggest challenge we face is the BDI environment as a caregiver goes from patient room to patient room they're tapping into the system they were waiting for logins application response times we identified the FX architecture as industry leading for compute and memory density in an x86 virtualization platform something that we already know quite well with Dell Blades and so there wasn't a significant learning curve with the FX architecture login times are the third of what they were in the past almost instantaneous and they're able to continue working where they left off caregivers have more time to interact with the patient to focus on better outcomes with the FX architecture we're able to grow performance completely linearly and at our own base we're able to increase density by a factor of 6x and increase disk storage performance by approximately 100x and we've also taken 27 rack units of storage and it's gone we're able to reduce the storage cost per user in our BDI environment by 60% previously we were able to put slightly over 100 users of rack space with the FX architecture we can support over 400 users concurrently in that same space we no longer have to manage a separate storage system as well as the individual server blades it's all now in console and with an aggregate of over 3.7 million IOPS that's incredible that's why they nicknamed it beast mode so with the FX architecture Dell has shown that they're willing to put in the necessary R&D to develop a platform that just works thank you Overlake hospital was really able to achieve breakthrough performance we understand that not every customer is ready for that and some are at a different stage of the journey where our services can help drive the transition maybe you're not ready for transformation because your processes are supported by legacy applications and infrastructure now you can use a labor intensive solution to rewrite those applications or with our Dell modernization services we can help you modernize your own apps using our IP to automate the process increasing your reliability agility performance and reducing complexity our transformation services make it easier to keep the lights on by removing redundant apps transitioning you to modern scale out data centers and networking and increasing your automation freeing more resources for your own innovation agenda we just don't sell a long term promise but we deliver results in the near term it's one of the reasons why our customer ratings for services are among the highest in the industry of course at the other end of all these incredible and power efficient data centers is the world of connected devices and connect is our next imperative and this means more than just PCs and smartphones it's about the internet of things as the number of nodes goes from a billion to 100 billion and beyond we're instrumenting the world we need to connect machines to machines people to people, people to machines and everyone and everything to the information that's needed wherever, whenever digital transformation is revolutionizing business models and industries and indeed the world our digital services leverage social mobile analytics and cloud to help you engage with customers employees and partners to gain competitive advantage by converting physical touch points into digital ones we're also developing solutions that can help any organization participate in the internet of things our case K1000 systems management gives greater visibility across the entire corporate network moving beyond PCs and smartphones to now encompass agent list devices like sensors so now everything in your entire network the entire internet of things can be managed from the same pane of glass providing radical simplicity and we're the leader in the market for virtual client we've unveiled our first Intel based thin client the wise 3000 series dual core with windows 7 embedded this can connect to anything from high speed networks to wireless to legacy peripherals and as to the PC we believe the PC becomes increasingly strategic as a highly distributed powerful local computing resource the hub of the internet of things you know sometimes a narrative sort of takes on a life of its own like you ever heard this story about how the PC is dead like everyone would rather believe a story than what they see every day with their own eyes there are 1.8 billion PCs in the world and they're deeply embedded in the infrastructure of how our world works and about 350 million PCs are sold every single year and through the exponential power of Moore's law PCs are getting orders of magnitude better more powerful, lighter smaller, faster, more affordable the interfaces, the capability, the speed when we went private a year ago one of the stated objectives was to invest in our PC business because our eyes are wide open when it comes to the potential PCs we are in the PC business to stay committed and leading and you know what it's working our PC business is rockin' IDC data from the most recent quarter here in the United States let's take a look overall for the industry unit shipments grew 4.3% that's pretty good we met that demand with the broadest line of commercial PCs tablets workstations, virtual thin client gaming rugged all surrounded with the services to secure, manage and maintain those devices now let's see how we did our US shipments grew 19.7% significantly faster than the industry thank you we were three times as much share as HP five times as much share as Apple and ten times as much share as Lenovo we represented substantially all of the industry growth in the United States in fact without Dell the 4.3% goes to 0.2% for the rest of the industry so a very big thank you to all of our customers and partners we aren't slowing down one bit we're building on our position number one in displays bringing more innovation all the time last year at Dell World we brought you the 4K display now we have the 5K display with 15 million pixels you have never seen anything like this and we have incredible devices on the market our precision M3800 the world's thinnest, lightest 15 inch mobile workstation a best in class rugged portfolio our all new latitude 2-1 beautiful, powerful versatile, light fast and desirable but it doesn't stop with just the devices we complement that with unbelievable management and security automating and simplifying management deploying these systems monitoring them, updating them and securing them with authentication, data protection advanced malware prevention all integrated into our PCs our Dell data protection portfolio has seen more than 380% growth year over year and we wrap it all with unparalleled support services including pro support and pro support plus that are available around the clock and around the globe today we cover 99% of the world's GDP with Dell support services over 160 countries over 600 parts distribution centers 2000 carrion centers 5 global command centers over 24,000 trained engineers highly trained hardware and software experts to maximize your productivity to minimize disruptions and to gain efficiency through a single source to support all your needs from services to solutions to support we have you covered in the Internet of Things but what's the result of the Internet of Things all these nodes the smart phones the sensors the thin clients the PCs everything instrumented it's all connected together it's communicating the answer is data which brings us to the third imperative inform and I'm not just talking about big data I'm talking about big results and big outcomes big productivity big advantage and big growth that's the data economy I'm talking about it's the next trillion dollar opportunity for our industry and for yours too our advanced analytics services help organizations turn their data into actionable insights our social media services help organizations build measure and monetize their social media programs and our Toad software is helping 3 million business users and database administrators manage and analyze data across Oracle, DB2 SQL Server, Hadoop, MySQL and many other platforms by layering Toad with Boomi Katinga and with our latest addition StatsOff we have built a powerful analytics engine StatsOff is a fantastic technology that adapts vertically to deliver the kind of big results you need now a great example of this is in healthcare and Dell is already the leading technology provider in the healthcare industry StatsOff gives us another incredible opportunity to improve patient outcomes by turning data into real insights we're working with major universities and healthcare providers to prevent surgical infections to decrease readmissions and to predict the risk of prostate cancer just to name a few we're expert at understanding your outcomes and building an analytics engine to meet your needs and we're innovating with partners that matter to you most Oracle, SAP Microsoft, VMware and Hadoop building clusters with Cloudera we're providing the ramps to get off of the aging obsolete Unix platforms and get on to X86 modern scale out architecture and Linux seamlessly now our final customer imperative is protect and this is a top concern for every customer I see our security approach is built on three foundational imperatives protect comply and enable first we protect the whole enterprise from end to end inside and out secondly we comply with internal governance the policies and external regulations using a consistent reliable approach that doesn't compromise business agility third we enable businesses to thrive including adopting new technology and pursuing innovation and operational efficiency by giving solutions a common DNA so they can all be connected together end to end Dell makes IT security better easier and less expensive identity and access management network security email and web security endpoint management secure remote access Dell security is featured in six gardener magic quadrants and when it comes to managed security services and a unified management services we lead Dell secure works offers managed security services security and risk consulting incident response and threat intelligence we see 80 billion events per day and far from separating the data analytics and security as some competitors are doing we think that one of the biggest opportunities is bringing the two closer together so we can be truly context aware we know what's out there we know what's coming and we know what to do about it now running through all of the imperatives is cloud and at the heart of Dell's cloud strategy is choice Dell offers the broadest range of cloud solutions and services across the leading platforms and providers to give you choice the most appropriate cloud solution for your specific business needs our cloud strategy is focused on three areas private clouds managing multiple cloud environments and delivering cloud services let's start with private clouds we are providing the converged infrastructure the software the services to help you build your own private cloud and as software improves private clouds are growing quickly as a way for customers to achieve the benefits of the public cloud with the security and privacy of an on-premise solution we offer all of the leading choices for private clouds including Microsoft, VMware and Red Hat all built on our Dell infrastructure deployed in your data center or in one of ours with our Dell cloud dedicated service we recently announced partnerships in private cloud with both Microsoft and VMware Microsoft's cloud platform system combines Windows Server System Center, Windows Azure with Dell's cloud server storage and networking hardware to bring all of Microsoft's cloud expertise to your data center in a private secure easy to deploy convert system and VMware's Evo Rail uses Dell's hyper-converged infrastructure to deliver a transformative experience aimed at VDI private cloud and general purpose workloads running in a virtual environment these solutions are scalable manageable and bring fast time to value for customers of all sizes and let's talk about managing cloud environments we're helping customers easily manage the multiple public and private cloud environments with Dell cloud manager which currently supports more than 20 leading cloud platforms and through our broad public cloud ecosystem we offer you the most choice and flexibility to select the public cloud that's right for you we're working with leading partners including AWS Windows Azure, Google CenturyLink and many more Dell helps you securely stand up new applications and services and improve business agility and the Dell cloud marketplace we have a public beta starting right now makes it easy for IT organizations to offer cloud services to their internal customers it brings the purchasers and the vendors together to create a new ecosystem and exchange and a single pane of glass to consume and manage those services now imagine what you can do when you pick the right cloud platform the right model the right cloud infrastructure for your needs your budget and your environment I know all of you are feeling pressure from cloud adoption but I'm not sure any industry is facing as much disruption from the cloud as telecoms I want to share how one of our customers is capitalizing on that opportunity BT as a communication services provider from the UK has been essentially running for 100 plus years right from the very beginning when telephones were first created the global services is essentially the division that supports multinational corporate customers large brands such as the New York Stock Exchange Procter & Gamble PepsiCo, Unilever they rely on BT to connect up their business for many of our customers the challenge they have is how do they get out of their legacy environment from a voice and collaboration perspective it's no more about just a copper wire it's around IP and it's around what we call unified collaboration they want to be more interactive across their workforce and more collaborative within their own ecosystem of customers and partners but they need to do it at a price point and one of the key technologies that's really setting the path in that is Microsoft Link we like to use the phrase we drink our own champagne and we are one of the largest combined instances of Microsoft Link technology so often people say why cloud or hosted link the fact is most customers these days need to be agile they need to have a swift effective secure way of consuming a service and the reason why we've partnered with Dell especially for that cloud capability is we offer out this video collaboration services to our customers is for that very reason so that the customer the pain is taken away we connect their business in the most agile light way possible and no longer are you tied down to infrastructure in the way that traditionally they were our whole portfolio has been taken up pretty much globally by a number of our large customers and in fact we have a very full order book that we're fulfilling right now for those customers globally we take very seriously our decisions as to who we partner with especially at a technical and service level that's where Dell comes in we've partnered with Dell to really power the Microsoft Link service that we offer to our customers because we don't have to be distracted by will it work or not it just will work Dell has a fantastic reputation for their innovation and their global capabilities and their ability to innovate around pretty much any market that we have in particular area especially around the computing cloud space where BT sits in the industry today gives us a fantastic opportunity to really see what's going on across the horizon when you look at inflection point such as big data and the themes around what is generating the big data that becomes very interesting to BT as we innovate the services that we offer to our customers especially then as we work with key partners such as Dell in that innovation cycle I love that I love what we can do to help you succeed it was about a year ago when we took Dell private the largest company ever to go private and I gotta tell you it's unleashed us it's allowed us to be bold and it's allowed us to redefine and focus squarely on our customer success and I don't know if you could tell but I've never had more fun or been more engaged or more excited the energy is infectious I feel it with all of you with our customers and our partners and our team members I feel it in the business itself in our daily flash reports in the velocity of innovation in the rate at which we're attracting and winning new customers and partners every day today we are the fastest growing large integrated IT company in the world and I want to thank you for your business and for the trust you place in us when I look to the future I see more opportunity for all of us to lead in the way we're transforming the world through the power of digital technology I'd like to say that the sky is the limit but for one of our customers the Shanghai astronomical observatory the sky is not nearly high enough the moon is our closest cosmic neighbor but it's literally a world away with an unmanned spacecraft carrying a lunar rover China became only the third country ever to successfully achieve a soft landing on the moon Chinese aerospace researchers named their ambitious space program after the goddess of the moon Chang'e Chang'e 1 and Chang'e 2 achieved lunar orbits a close partnership with Dell since 2006 it was Dell high performance computing HPC that Shanghai astronomical observatory turned to when it had to increase computational and communication speed 10-fold to land Chang'e 3 and its rover with precision on the moon's surface the capability of VLBI or very long base interfermeritory exceeds the reach of an optical telescope data collected from the telescope is massive and the results have to be precise so we needed a high performance computing platform the platform provided by Dell powered the core function of our command and control center and played an indispensable role in the entire process the real-time delivery of information was crucial throughout during the first phase of exploration with Chang'e 1 and Chang'e 2 our VLBI system collated data from the radio telescope delivered it to the VLBI data center for complex calculations and then delivered it to the Beijing Aerospace Control and Command Center in 10 minutes for Chang'e 3 this real-time target was shortened 10-fold overall the Dell solution provided long-term zero downtime state of operation and our entire system was able to run safely efficiently ensuring success of our mission there are more lift-off dates planned with Chang'e 5 and 6 which aim to return with lunar soil samples to the moon and back to the moon and beyond it's technological innovation that will continue to support exploration of new worlds and their possibilities well there you have it data flying through space globe connecting us all in a fabric of information and insights we stand firmly in the data economy where data is our most important natural resource where open cloud-based technology are the infrastructure the bridges the airports, the railroads the labs, the clinics, the universities together we are inventing the future and we're doing it at scale it's the next billion jobs that will be created by the world's entrepreneurs it's the next billion patients who will receive better care through cloud-based analytics it's the next billion students in the emerging world who will receive a better education it's the next billion dollars that we will keep out of the hands of the cyber criminals and it's the next billion people rising out of poverty who could participate and compete in the global economy here at Dell World we are telling a story about how together we are changing the world thank you for trusting us to be your partner on this incredible journey thank you Jeff Colvin so our topic now is as Michael was saying the data economy I don't know how many of us would have guessed two or three years ago that phrases big data and data analytics would be subjects of mainstream conversation today but they are it's all over the place in all the coverage of the elections we've been reading these past many weeks much of it has been about how both sides were using the data they have and analyzing it in very sophisticated ways we've seen some high profile breaches that are important for us to understand there was even an article in today's Huffington Post called two ways big data will make you happier I don't know if big data is making CIOs happier right now but it can be and should be because there is tremendous promise here tremendous promise to make your company more successful to make non-profit organizations more effective to do all kinds of great things for us if we can use it best we have a tremendous panel to talk with us and give us some wisdom about these things so panelists come on out they are Shamsankar of Palantir Technologies Tom Riley of Cloudera Dr. Thomas Hill of Dell Software Analytics and Michael Chewy of McKinsey Global Institute let me give you a little perspective on all of them Michael here is in San Francisco for McKinsey Global Institute he directs all the research on the impact of long-term disruptive technology trends which is what we're talking about here Dr. Thomas Hill Executive Director of Dell Software Analytics at Dell's Information Management Group he joined Dell just earlier this year when the company acquired Statsoft Incorporated which is a company Thomas has been involved with for many years Riley is CEO of Cloudera he has a long career in enterprise software Cloudera is the group of innovators who are behind Apache Hadoop and Shamsankar is the president of Palantir that means he oversees all customer engagements worldwide the company is well known for its work for government but it also works for corporations all kinds of organizations around the world on their data challenges and Shama I want to ask you for starters there is so much being written and talked about with regard to big data and analytics what's the most important thing for these attendees and their bosses to understand about it as they try to put it to work well I think the most important thing is to dream big about it big data has the power to be truly transformational and it starts with having the right problem in mind so when you're thinking about what should we be taking on it shouldn't be a toy like problem in the enterprise it should be the actual crux of what's transformational not the 10% bump but the 2x or the 10x bump because it has the potential to fix something that big yeah and it's big data is very much in the zero to one mode where it's a new thing in two ways and as a result you need an important problem to galvanize the entire institution and to really go through that crucible to figure out how you're going to do it there's a statistic that UBS they did a survey about a year and a half ago and only one in ten big data projects actually made it to production and I would posit there's no exact date on why but I would posit that a big issue is that the problems people are chunking off are toy like kind of treacherous zone it's this challenge we encounter pretty often which is the challenge of imagination thinking big enough to take advantage of what's available to us Michael, same basic question what's the most important thing for these folks and their bosses to understand about it to put it to work as we've been doing research at the McKinsey Global Institute about it we're coming to the opinion that the effective use of data is becoming a basis for competition as Shum makes the point it can be a 2x, a 10x potential but what we really mean for the business leader is that unless you learn how to use data effectively as a competitive weapon or as even a defensive a fort you're more likely to lose in the marketplace so it's becoming table stakes for competition the other thing that's challenging and a little bit annoying about it is it's not one of those things you learn how to do and then forever more you're going to be ahead of the competition this is a run faster business so it kind of sucks because we're all going to just have to get better and better at it but that's just the way life's going to be well that is the way life seems to be getting in so many ways I must say but what you're seeing then is that it is possible at least that there are companies starting to do it and really get a payoff it's absolutely the case that companies who are using data effectively across the business the right problem is important but whether it's in marketing I think one of the interesting things that we're now seeing increasingly is the effective use of data for managing human capital for better understanding how to recruit how to retain, how to reward for many of our enterprises the most important asset which is our people applying big data to people I think is a tremendously interesting place to go Tom Riley you have seen a lot of companies up close putting big data to work what are some examples of how the best most successful ones have done it what can we learn from them? I think big data is a bit of a misnomer I like to think of new data and how enterprises are taking advantage of all this new data that's available as the world becomes interconnected there is data now that is you know the mobile the social the streaming data from the internet of things that can transform every single industry and the really exciting use cases are the intersection of these so recently I was talking with Children's Hospital of Atlanta and in their prenatal care with premature born babies they would monitor these babies and the primary use case was a reactive one nurses down the hall got an alert and the doctors would rush to a little baby what they realized is they wanted to get proactive and so not only did they take the history of all that data that the babies being monitored with but they took the data about lights that are on the thermostat, the temperature in the room the cameras that could tell when people went in and out of rooms and they analyze it and they completely change how they take care of babies now and they put them in different corners they have different lighting, different temperatures and they control who gets access and the results have been tremendous it was a different way of thinking about data and using the new data from lights and thermostats that we think boy that's good for controlling energy but you can use it to actually improve a baby's life and we see a lot of these use cases it's amazing and it's a good example of actually what Shawn and Michael were both saying which is who would have thought of that right I mean people probably would have thought you know controlling energy or something smaller it can save lives yeah it's but it's also it's again another in intersection we all know that cars now are streaming data and all the manufacturers are instrumenting the cars and collecting data that's great for engineers we go wow what a great use case it's even good for us we get access to our you know preventative maintenance or proactive maintenance alerts but now the car companies are working with the insurance company saying can we introduce new insurance products based on actually how you drive we actually have an insurer clients do rolling stops stop sites so think of how you can now introduce new products but it's these intersections there's data that is used for one purpose that can be reused by another industry to introduce a new product or service or capability it's very exciting can I get that data about my son's car yes you can actually actually I think that's interesting too data can change the way that you interact with your customers well I interact with my insurance company twice a year it's a negative interaction it's good for them but not so good for me or if more often it's again negative because I've crashed or something like that but then imagine the insurance company being able to say your son drove well today again being able to use data to transform the user experience I think is quite powerful as well Thomas what's the big picture idea that is first in your mind when it comes to making use of big data and analytics so all of the applications that you mentioned those are fascinating applications and they will transform the way we will talk about this next year two years from now when I think about big data and we think about big data I remember talking to a number of clients actually and the theme was I'm collecting all these data so I have big data but I don't have money so I think the practical advice that I would give here is it's not so much the data the big data it's the information we extract from it so data will grow exponentially information will actually not grow exponentially from a project perspective on how to make use of it how to make it really all work and I think a lot of the examples that you mentioned I think when you start this way you ask yourself what does it look like when I'm done and how do I know I want so what is it I'm really trying to accomplish to your point and then work backwards and think so what data are available and the good news and that's the good news about big data is data is available it's easily accessible and the technology is evolving so rapidly that it's really not difficult anymore imagining even utilizing it a year ago I think Thomas's point is spot on you have to have an outcome orientation here the big risk is that you essentially have data in search of a problem and you expect the data to tell you what the problem is you have to start with the business problem and outcome and work backwards just on Charles point there we have seen clients make mistakes when they say alright let's get all our data into one place we have a lot of data you have to start with someone has to have a premise or a thesis about an idea or a problem to combine data sets that combined data set will not be big data it will be a small data set but you're combining data sets with a use case and then you build from there and you're building the knowledge in your business and your organization but how to think about data differently to change how you interact with your customers or how you introduce new products or services how do you get that competitive advantage and to build on Tom's point there he used an important word combine when we think about big data we often just think about the volume of the data that is an interesting technical problem the actually difficult problem is how do you combine them how do you integrate all of this disparate data so what you're all saying if I can extract a common theme is there is a huge amount of data available and just getting your hands on it and bringing it in is a challenge it's not the challenge it used to be the challenge is thinking of what problem you want to solve and then beginning to solve it and I guess the question that comes first to my mind is okay look Michael I'll start with you who do you need in the room what skills do you need in the room to begin getting value from this yeah you know this is I think perhaps one of the most important bottlenecks to capturing value from using data and analytics and it really is on the talent side as hard as the technical problems are and they are myriad and difficult you know actually finding people who can extract insight you know information that insight wisdom maybe you know from increasingly diverse large real time sorts of data I think is truly the bottleneck you know some people have said look for the past you know a couple of decades if you want to be successful you know make sure they could code right they'll be good they'll be good for life you know how Varian has said a sexy new job for the next decade is statistician and you know data scientist is you know trending on LinkedIn and everything else but it is that skill it is a set of skills which you know partly around statistics partly around machine learning partly around visualization being able to tell stories based on data being able to design experiments these are you know in addition and you know from a computer science and computer engineering standpoint these are the scarce resources and when we did some research just a couple years ago and projected the number of people who had these skills data science skills roughly in the U.S. economy at current course of speed versus the number that will be necessary in 2018 in a big data world the potential gap was around 140 to 180,000 positions now that market is going to clear a lot more training is going on getting calls from deans of universities etc at universities etc to train more people with these skills data science programs and degrees are coming up but that truly we do think is a pivotal role or a pivotal set of roles the rare you get all of those skills in one body but having those skills I think are again if it's a basis of competition having those skills inside your organization are ones that are going to put you ahead in the competitive race that's one thing I would add to that it's an aspect I entirely agree with which is you know the challenge of big data is not so much that it's big you have lots of roles if you will but rather it afforded the opportunity to build very many models so in other words when all is said and done you have the ability to just take manufacturing we have a number of clients that monitor thousands, 10,000 parameters in real time streaming data so that's big data each individual data parameter for a data point is truly not that big but the totality of the data streams that's available that has to be integrated is enormous now I think with respect to the skill set in that bottleneck one of the things that we see and I think there's a lot of development when you look at the algorithms around big data is the automation of the model building itself so in other words at the end of the day when you have 10,000 models you need to manage you cannot hire enough data scientists to look at every one of them it can't be done so you need a meta model you need the ability to build calibrate, test, select and deploy the best models and do it with a degree of automation so that your data scientist can prioritize where she or he needs to pay attention and that's sort of I think a challenge of big data that's upon us and may actually ease I think the personnel bottleneck that's out there and Thomas you should correct me if I missed the subtlety there but I think an important piece there is you're not making the meta model so that you can replace the human you actually need it to augment your data scientists they have scarce time and resources you need them to spend time on the right models and I think there's a big theme around that you shouldn't be focusing on how do you replace the human actually you should be thinking about how you lever up your existing human resources with the big data applications well Shom you're trying to hire these people all the time at your company what have you found that's effective in finding them and bringing them to Palantir rather than someplace else well I wish there was a silver bullet answer to that question it's definitely a lot of hard work I think there's also an important part in terms of how you configure the resources if you put them off in a walled silo of data science I think you're likely to be pretty disappointed what you actually want to do is take these resources and deploy them into the business let them steep and marinate in the problems and that's where kind of this human creativity of what should we be doing will kind of generate it's a theme that we're hearing everywhere now which is collaboration and integration and it sounds like you're saying that's key here as well especially in the context of the zero to one problem I think that's what makes it special right and Tom what's your experience I would just share on this this notion of a data scientist the data scientist is the unicorn of our industry today everyone's looking for the data scientist I wish I was a data scientist you can make a lot of money but if you actually look at data scientists actually do they're cleaning data they're integrating data and it's a very hard job it's automating a lot of that making that easier reducing actually what a data scientist does and get some focusing on the business but also we're now because you take a lot of that integration work out you can take business analysts today and retrain them on different concepts about how you think about data and turn them into data scientists a lot easier and so what I think we'll see is the data scientist becomes less of a unicorn and we'll see more and more business analysts and tools that they're comfortable with do this data and just becoming a broader pool of business users that are now getting value on data and if I could add to what Tom says I mean not only do you need these propeller head data scientists but all of us are going to have to raise our skills and understanding what's a good experiment being a better consumer of data I joke sometimes we should teach a lot less calculus in the US we should teach more statistics once the last time you took an integral versus once the last time you had to make a decision based on dirty, imprecise incomplete data right those skills we're all going to need them in addition to having some people who really know it well you're all describing jobs that have never existed before and that people are not being trained for fundamentally right I think I would disagree a little bit because I think that when you look at the way that analytics tools have evolved and technologies in general have evolved the data scientist part has that scary science at the end that most people run so I used to teach statistics and so on and for those of you out there it's unpleasant to teach it as it is to take those courses off so but so at the end of the day what you want I always want to write this blog is you would like to have a mechanism how to control the weather with a hammer and the metaphor that someone told me about is really about how do I create tools that are very very simple very intuitive to use that I can hand to business users to do transformational thing in a business that's a challenge that's sort of the bolt-on challenge to big data because once you have that all under control and you have the integration and that's technical that requires data scientist you want to hand it to the business a user with tools that are targeted and useful to solve the problems to get to the ROI right I couldn't agree more there I think if you kind of create a high priesthood around data science it's doing your institution a great disservice you have to democratize access to the insights right we've talked about numbers of big data the opportunities and how to get there but we haven't talked about security and privacy which we absolutely must because we can't get anywhere until we deal with that as well Tom Riley you have a view on this that a lot of people seem to have a mistaken or perhaps misguided view of what security really is and isn't well so anytime you're talking about data you introduce security concerns because a lot of that data is going to be sensitive and it's data about ourselves and our purchases and our health and what have you you add the mix that a lot of this new data is being generated out in the cloud and so it's out in the cloud which there is a perception that the cloud is insecure I think we as an industry are addressing that quickly in fact I'm a big believer today that data in the cloud is more secure than data centers and if you look at just the breaches that have happened in the past they've all been in private data centers and the last major cloud breach was Epsilon over four years ago and I think the cloud providers are actually they think of security from the ground up when they're starting their projects and even working with data whereas when we work with our clients on premise they're building their application and then before they go into production the security team gets involved and say okay what do we do we need to secure this it's kind of security after the fact so we really have to secure all data we we work with Dell to leverage the chips in Dell's boxes to encrypt all data that lands in Hadoop not sensitive to all data and that helps address some of the security things privacy is a whole different topic but I'll say that for some of my well Thomas that's an issue that you've thought a lot about privacy and security what do you think has to happen so one of the and again we have a footprint of manufacturing originally in other industries as well but manufacturing has collected a lot of data has been collecting big data for a long time so issues about data governance I think occurred there earlier and before before it occurred as a problem an issue in other industries so when you collect information you collect data you also collect liability because you need to you're now responsible with how this data is kept who has access to it who can change it how are we using it so fast forward a little bit in many industries regulated industries like pharmaceutical manufacturing medical device manufacturing health applications the same thing so what's critical here is you need to have a transparent system that allows me to say who collected data for what purpose who had access to it transparency on the modeling side so what are the models like what are they predicting why is the model wrong so I would like to tell the story of how I get the wrong catalogs sometimes with the various self-defense num chucks and so on and it's not me but you wonder what database am I in what model predicted me this way and what would happen if a model would be wrong that predicts me this way incorrectly for something that will affect my life so credit health decision healthcare decisions and so on so all of it is on the feature side of how systems should be designed and are being designed there's a lot of governance in there of audit trails to keep track of version control what did we check on who approved it who put it into production and so on and my last piece about the privacy is really I think it's not so much that most people are afraid that you access information about me my life is exceedingly boring really as normal as it can get but I think what is terrible is when the wrong information relates to data is how do I fix it and that again is about control do I control my own data and the decisions that are based on those data and so I think governance about these systems and transparency are issues and technology and feature issues in the systems that have to be created Michael where's the world heading in respect of what Thomas was just talking about so obviously incredibly complicated there are lots of different solutions but I think what we need to do to make it as part of our research on open data is this idea of my data where an organization that has data about you as an individual doesn't necessarily give everyone access to it but gives me as individual access to it that has great transparency benefits I can know what that organization knows about me but that organization can also benefit because many times nobody has more incentive to make sure that data is accurate and I can use that data sometimes sometimes to benchmark myself against similar people in similar health conditions or benchmark my energy usage and discover ways in which I can save energy so that's one of the ways in which you can address this question about what does an organization have about my data you mentioned open data what's the opportunity there what is it going to mean for companies if you talk to a senior executive how much of the value are you capturing from the data you have and they'll all see a tiny percentage of single digits but what they're actually thinking about is the data they have within their four walls the data within their own databases what we usually find is you can capture much more value when you combine data from multiple places as Tom suggested and so this idea of data becoming more liquid data being shared either by individuals or by organizations or bought and sold or created Facebook pay for the data that actually is their value but they've created a compelling value proposition for me to share data with that platform and we think that's going to be a core competency going forward how do organizations create compelling value propositions for their business partners, consumers, customers, employees will share data with them and they will find it all to their mutual advantage to do so if it's done right that would be the idea that you'd benefit from that, Sharon open data has first of all, security and privacy security and cybersecurity are always issued but I think the topic of the future is going to be privacy and Thomas is right, governance and regulation it's not only personal privacy but we get into politics around data and where data resides it's going to be very, very complex open data also and Michael talked about it when you contribute data and I'll think myself, I'm a diabetic I've measured my blood sugar four times today and I share it with my physician eventually it'll be continuous monitoring that's my data yet can that physician share that into a pool of other physicians and so then you start getting privacy concerns about your own personal data or your driving habits with the insurance companies I talked about earlier, can that be shared so we then again slip the slip of open data I love the fact that any company can grab data from NOAA and know about weather and weather forecasting and apply that to their businesses yet when it gets to personal data you get in this privacy issues again Shamir firm deals with some extremely sensitive data in some cases where security is of the highest importance what have you learned about staying ahead of the bad guys I think you have to approach this from a privacy first perspective this is going to be the issue privacy or data protection and there's actually a massive opportunity to both engineer more capability and more privacy at the same time and that starts by actually making that a focus have engineers whose job it is to push the privacy needle forward and bake that into your process we've talked about so much here in a fairly brief time that I want to try to encapsulate it and I'm just going to go down the row and ask each one of you for a summing up thought and insight or a piece of advice that the members of this audience all of whom are intimately concerned with what we've been talking about can take home with them and Michael I start with you first one is for me you have to solve the technological problems but as hard as they are I think the thing that unlocks value is changing your processes and procedures so that you can actually take advantage of data Thomas? I think the unfortunate naming conventions about big data it's not that hard granted the technology is complex but the tools are available to do something useful with enormous data volumes that wasn't there before the second piece of advice is really start at the end I have never seen a project fail because of technology or capabilities that we're lacking but they drive off the rails because the direction isn't there and nobody really understands what it is I want to do when I'm done how am I going to use this information? Great piece of advice Tom? I'll share kind of go back to our opening discussion every single industry is being transformed through data and through this new data and so in your organization whether it's yourself or you find that business executive that champion who think about how to change the business transform the business change how you engage with customers this is not a IT problem nor is it a business problem this is one where IT and business have to collaborate our projects that don't have both team members in place don't succeed and there's a business user driving transformation there's a technology team serving up that data to those business users that's the recipe for success Tom? I agree with that completely I think you have to have an outcome orientation here don't obsess over the architecture obsess over the outcome you know this is real insight it is really helpful from people who have studied this intensely and who have a ton of real world experience we've got a big day still ahead of you and I hope it all goes great before we go Michael Thomas Tom Chum thank you very very much