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00:00PRESIDENT OF RESEARCH. GIVE US A SNAPSHOT ON THIS. THIS IS WHERE REVENUES COME FROM. YOU ARE DIFFERENT FROM AMAZON AND MICROSOFT. IT'S MORE THE SERVICES. >> WE BELIEVE THE WORLD OF CLOUD IS A HYBRID MULTI-CLOUD WORLD. IT HAS TO BE OPEN AND SECURE. THERE WILL BE PRIVATE AND PUBLIC CLOUDS. EVERY COMPANY IS GOING TO OFFER MULTIPLE CLOUDS. 90% OF COMPANIES WILL BE ON CLOUDS. YOU NEED OFFERINGS THAT GO ACROSS THE CLOUD AND ACROSS THE PRIVATE AND PUBLIC WORLD. THAT'S THE NATURE. DAVID: IS THAT OVERLY SIMPLISTIC? >> THIS ALLOWS YOU TO DEPLOY YOUR APPLICATIONS ON ANY CLOUD. WE HAVE OUR OWN PUBLIC CLOUD. WE HAVE ALL OF THE OPEN TECHNOLOGY OF THE WORLD NOW. ALIX: WE LOOK AT THE INFRASTRUCTURE OF CLOUD, IBM IS FAR BEHIND AMAZON AND MICROSOFT. IS THIS A DEFENSIVE MOVE? >> OFFENSIVE. THEY ARE ONLY ABOUT 20% OF THE JOURNEY INTO CLOUD. IT IS BECAUSE WE ARE OFFERING MULTIPLE CLOUDS. THEY NEED TO GO ACROSS THESE CLOUDS IN A WAY THAT THEY CAN MANAGE. WE BELIEVE IN ACCELERATES THE OPTION OF CLOUDS AND ALLOWS THEM TO DO IT FOR MISSION-CRITICAL APPLICATIONS. DAVID: WHO IS YOUR COMPETITION? IS AMAZON PROVIDE THIS? >> THE BIG PUBLIC CLOUD PLAYERS DON'T PROVIDE THESE ALL. THERE ARE OTHERS WHO MIGHT BE COMING AFTER THIS. IT'S MINOR. ENTERPRISES AND PROVIDERS ARE WAKING UP TO HYBRID. WE HAVE A LEG UP IN TERMS OF THE TECHNOLOGY. DAVID: IS THIS A SERVICE? >> AS CLIENTS WOULD LIKE. IF YOU WANT TO RUN IT ON YOUR PREMISE, YOU PAY A SOFTWARE. ALIX: WHEN I THINK OF IBM, I DON'T THINK OF CLOUD. >> WE ARE UP THERE. WE ARE OVER $18 BILLION. ALIX: I THINK OLD-SCHOOL BLUE-CHIP. THEY PROVIDE SERVICES. HOW DO YOU CHANGE THAT? >> YOU GOT TO BE LOOKING AT WHAT THE CLIENTS ARE DOING. WE LOOK AT BANKS LIKE LLOYD'S. WHEN YOU LOOK AT AMERICAN AIRLINES, IT IS DOING ALL OF THAT FOR THE CLIENTS. WE DON'T BRING A SERVICE LIKE SURGE WITH OUR NAME ON IT. OUR OTHER ENTERPRISES BRING TECHNOLOGY TO CUSTOMERS DIRECTLY. DAVID: HOW BIG IS THIS MARKET? I'M TALKING ABOUT THE CLOUD TRANSLATOR. >> I BELIEVE THAT'S A FUNDAMENTAL PROBLEM FOR MULTI-CLOUD. THE ULTIMATE MARKET IS GOING TO BE OVER $1 TRILLION IN THE NEXT THREE YEARS. IF YOU LOOK AT THAT GROWING IN DOUBLE DIGITS AND IT'S A CRITICAL ENABLER OF THE MARKET, IT ALLOWS OFF TO CLAIM OUR SHARE OF THAT MARKET. IT'S A HIGHLY ACCELERATING MARKET. TODAY, IT'S TOTAL TODAY. DAVID: LET'S DRIVING IT? IS IT ARTIFICIAL INTELLIGENCE? >> AI IS THE BIGGEST EVER. IF WE LOOK AT THE DATA BEING PRODUCED, ONLY 20% OF DATA GETS VALUE. DERIVING VALUE FROM THE DATA REQUIRES CLOUD AND ARTIFICIAL INTELLIGENCE. YOU CAN'T HAVE ENOUGH PEOPLE RUNNING ANALYTICS. THAT'S THE SINGLE BIGGEST DRIVER OF CLOUD COMPUTING. ALIX: WAS THE BIGGEST RISK? >> CYBERSECURITY. IT'S REACHED THE POINT WHERE IT'S NOT JUST A HACKER, IT'S ORGANIZED CRIME. THE AMOUNT OF IMPACT IS $2 TRILLION TODAY WE BELIEVE. 80% OF THAT IS DRIVEN BY ORGANIZED CRIME. IN ORDER TO GET AWAY FROM THAT , YOU'VE GOT TO INTEGRATE ACROSS ALL OF THESE. HAVING AN OPEN SECURITY PLATFORM, THAT ALLOWS YOU TO GO ACROSS MULTIPLE CLOUDS AND LEVERAGES AI TO UNLOCK VALUE. THAT'S THE FUNDAMENTAL WE ARE AFTER. DAVID: THIS IS THE DAY AFTER PAUL ALLEN PASSED AWAY. WITH BUILD GATES AND PAUL ALLEN, THIS IS A BIG PICTURE CAPITALISTS ABOUT HIS CONTRIBUTION TO ARTIFICIAL INTELLIGENCE. >> HE HIRED ONE OF MY FRIENDS, ONE OF THE BEST PEOPLE IN AI. WE WENT TO SCHOOL TOGETHER. HE HAD ABOUT THESE EXCELLENT PEOPLE WORKING ON RESEARCH TO BE OPEN FOR POSITIVE BENEFITS OF HUMANITY. I WISH THERE WERE MORE PEOPLE WHO WOULD SUPPORT AI IN THIS MANNER. DAVID: HE WAS FOR AN OPEN PURSUIT OF AI ALIX: PAUL ALLEN IS A GOD FIGURE IN OUR INDUSTRY. GOING FROM THERE TO HIS OWN THOUGHT IT -- PHILANTHROPIC WORK IN HIS FOUNDING OF THOSE THINGS, HE WAS FOR DANCING THE SCIENCE IN BRINGING THIS VISION OF COMPUTING HOME. THE PEOPLE HE HIRED IN THE WORK HE HAS DONE IS CERTAINLY GREAT WORK. ALIX: IS THERE ANOTHER PAUL ALLEN OUT THERE? >> ON 100% SURE. WHEN YOU LOOK AT THE TOP UNIVERSITIES AND THE WORK IN MONTREAL OR TORONTO OR M.I.T., A LOT OF THE PEOPLE, I AM HESITANT TO PUT NAMES ON THE TABLE. DAVID: WILL THE NEXT PAUL ALLEN WORK AT IBM? >> ABSOLUTELY. WE NEED RESEARCHERS WHO WIN AWARDS AND DO ENCRYPTION AND COMPUTING. THEY DO WONDERFUL WORK. ALIX: THANK YOU SO MUCH.

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IBM Unveils a New Generation of Cloud Technology

Arvind Krishna, director of research and senior VP of hybrid cloud at IBM, discusses the next level of cloud technology services and reflects on the life of Paul Allen, the late co-founder of Microsoft. He speaks on "Bloomberg Daybreak: Americas." (Source: Bloomberg)

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