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VMware Shares the Decoder Ring for Cloud – The Six Five Webcast
by Daniel Newman | April 12, 2021

On this episode of The Six Five Webcast host Patrick Moorhead and Daniel Newman discuss the tech new stories that made headlines this week. The six handpicked topics for this week are:

  1. IBM Financial Services update
  2. Amazon under fire – a look at wages and taxes
  3. An overview of the Intel Ice Lake Launch
  4. Splunk appoints Amazon veteran as new president
  5. VMware Cloud Universal
  6. Honeywell’s Climate pledge

For a deeper diver into each topic, please click on the links above. Be sure to subscribe to The Six Five Webcast so you never miss an episode.

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Disclaimer: The Six Five Insiders Webcast is for information and entertainment purposes only. Over the course of this podcast, we may talk about companies that are publicly traded and we may even reference that fact and their equity share price, but please do not take anything that we say as a recommendation about what you should do with your investment dollars. We are not investment advisors and we do not ask that you treat us as such.

Transcript:

Daniel Newman: Welcome, everybody to this week’s edition of the Six Five podcast live streamed on the Web Audio only, group video, I don’t know how you’re consuming it. But we hope you are consumed by it. Another big week in tech, a lot of news, some big stories, controversial and complex stories and some more positive or fun little stories out there. But we’re going to talk about all of them. Because that’s why people come here, they come here to hear what’s important and why it all matters. That’s what the Six Five is all about. But before I get into all the details, and the disclaimers and all that stuff, how are you doing my friend?

Patrick Moorhead: I’m great. I mean, it’s Friday, I’m on with my bestie Daniel, Ernie, my dog is walking again, my gosh, over 100,000 people jumped on that tweet, Daniel. And now look at the interest you can drive with puppy pictures. It’s great.

Daniel Newman: I can’t help but laugh, you know, you don’t have to really build influence, you just have to share pictures of cute things. And that’s how you get a lot of people to engage with your social. Of course, like when you share something really important, you get like seven likes, but when you share a picture of your dog, you know, or your kid or your dog with your kid, that’s when all of the magic happens. So it just shows we need a little more lighthearted stuff, but probably won’t get that here. I mean, maybe a little bit, we like to have fun here at the Six Five, but we don’t necessarily get too much into the puppies. This was a rare story for us.

Patrick Moorhead: It was and I hope not to repeat it.

Daniel Newman: I’m you glad you got a lot of empathy and sympathy; it means people are watching, which is great. So all right, let me do the quick disclaimer here. The Six Five is all about deep analysis of the biggest tech stories each week, Pat and I are going to bring it to you we’re going to give it to you straight, we’re going to tell you, not just what you need to know but why it matters. The show is also though just to be noted for information and entertainment purposes only. And so while we will be talking about publicly traded companies, and their executives, and sometimes we’ll be talking about their earnings, please do not take anything we say here as investment advice. Now, Pat, several stories this week. Like I said, a couple of them are bigger, a couple of them are more updates, but they all have important analysis that we need to, you know really zero in on. First one, you wrote a great piece talking about the GA state of the big IBM financial services cloud. And this was something that had been hot for a while, I’ll let you kick it off.

Patrick Moorhead: So IBM has an interesting history in the cloud, I would say that their first generation public cloud didn’t receive accolades, they missed a lot of dates, there were some challenges. And then the private cloud, like most on prem data center folks, really leaned into OpenStack. And OpenStack didn’t end up being a thing for private cloud. But the combination now of IBM with its Red Hat capabilities, plus its public cloud capabilities, is really upping the stakes here, particularly when it comes to regulated industries. And one really good example is the cloud that they have for financial services. So think of this as banks, stocks, crypto, pretty much anything related to money. And there’s a lot of regulation, that regulation is not only based on country, but also by region when it comes to the EU, and in the United States when it comes to states what that means is you’re being regulated every step of the way. Security, transparency, and also protection of the data for the financial services company is paramount. And what IBM has done to their credit is they put together a very impressive, secure private and transparent cloud. And I’m going to call it an ecosystem because they not only have where you can build your own application, but they’ve also invited hundreds and have hundreds of ISVs signed on, so they can come in and participate with it. They started this with Bank of America. And I don’t know if I can say this correctly. BNP Paribas AH, is that right? As well, another global player, essentially, this was news of GA for Red Hat.

And the other news that was out there was the inclusion of SAP. So SAP doesn’t have their own public cloud. Their strategy is to host on other people’s cloud and this is an actual extension of that, because quite frankly, if you look at the influence and power that IBM has in financial services, pretty much every credit card transaction, most retail transaction, so any time, there’s a transaction, most of those go through IBM today. So great example of IBM leveraging their capabilities, and their strength and what they’re known for. And not that they’re the only competitor in this, you know, Google Cloud is making a run for a lot of vertical clouds. And I would say, from the public cloud point of view, Google Cloud has been the most aggressive here. And that makes sense to me, too, because Google Cloud is really good at things like big data, and analytics. So this is one milestone on what I think will be many. I like that IBM stays focused on vertical clouds, places they can win and do quite frankly, a better job than some of the native cloud folks. So good stuff.

Daniel Newman: Yeah, absolutely Pat. I think there’s a couple of thematic things happening here. One is banks are looking to leverage the cloud in a much bigger way. Financial Services as a whole, the competition is rising very, very quickly. And it’s not traditional competition so much, it’s going to be your crypto. And it’s going to come from FinTech. And these are companies that are fast built on cloud. And they are transforming user adoption. You’ve got companies like SOFA, and payment processing companies Square and PayPal, and they’re very disruptive, and the banks are being forced to think about how to be more nimble. And being cloud enabled is going to be an enabler for adding services that are going to make these banks more disruptive to themselves. And that’s something that’s important. And so that migration is taking place so companies like IBM, like Google, you mentioned both and I think it’s worth mentioning both and of course, you can’t say Microsoft and AWS aren’t doing this too. But you’re seeing a lot of effort for verticalization in cloud and to create solutions. IBM was early, IBM has been very successful. The Bank of America story, one of the biggest banks not only in the in the US, but in the world, trusting the company because let’s face it, IBM has an incredible depth of capability in highly regulated industries. And of course, its mainframe business has been rock solid. And the banks have partnered with IBM forever on those kinds of highly regulated workloads that need to be secured and compartmentalized from a, you know, risk.

So you know, as I see it Pat going GA was is an important moment, it really is a hybrid story. In the end, it’s going to be parts of the workloads are going to be prem, you’re going to see more and more compartments, enclaves. IBM’s confidential computing story is going to be very important here in the bank space, but also for healthcare and for public sector. That’s where I really expect IBM to be successful. Let’s move on speaking of regulation, because I’ve got a topic that’s kind of a near and dear to my heart, my mind I’ve been thinking a lot about. And that’s all the stuff going on with Amazon. And Pat, you know, this is a family friendly show, you know, we are tech and so but tech companies, you know, you’ll hear us talking about things like ESG sustainability. And so Amazon is clearly one of the world’s most disruptive companies, whether that’s the cloud business, the device business, you know, home automation, their E-commerce and supply chain that they’ve developed technology rich, and it’s been a success, a path to success. And the company, despite the fact we will often forget, lost money for a long time before it made money and in recent quarters has made a lot of money. And we’ve found that Amazon has kind of ended up in the center of this debate around employee compensation treatment. It’s got a unionization effort right now that’s going on in Alabama. You’ve got regulators pushing for higher tax rates for Amazon or for greater taxes because people learn that what Amazon is or isn’t paying in taxes. And by the way, a lot of people also don’t always understand just a really quick refreshers as a C Corp that means every employee pays taxes. So a lot of companies are S-Corp and LLC and they all have the money that flows through and only the owner and principal pays. We can’t get too deep into that here, Pat, but I feel it’s worth it. Because when you add 400,000 employees, every single one of those employees contributed taxes that were paid through the company’s business.

So when you know it’s a, long story short, we’re in a very interesting moment for tech and innovation right now. We’ve got kind of two sides of the story. You’ve got a company who’s been very successful, who is proactively back I think it was 2018, November of 2018, the company went to $15 minimum wage across the entire organization. You’ve got a company that has spent, I think in 2020, throughout the pandemic, about $18 billion on its marketplace for small businesses to help small businesses grow. You’ve got a company that I think hired more people than any other company on the planet during the COVID pandemic. That took shipping down to the hour so that people can get the stuff they need throughout the pandemic and spent, I believe, over $100 million in its climate pledge, and also has brought hundreds of companies around the world in the push for the Paris Accord. You’ve got a company that’s doing a lot of good things. But you’ve got a market that seems to never feel like it’s doing enough. You’ve got Bernie Sanders, you’ve got Elizabeth Warren, pushing that there should be more tax, that the wages should be higher. And I just think it’s really interesting kind of, you know, and I’ll kind of almost throw it to you, because I want to get your comments on this, too, is when you’re talking about innovation, a company’s number one responsibility is to its shareholders. I know people sometimes get frustrated by this. But that is when you’re a manager. When you go to business school, you learn that we’re entrepreneurs. We know if we aren’t solvent in our businesses we can’t do anything for our communities. The more solvent your business becomes, the more you have opportunity to choose how you invest in communities, whether that be in social programs, ESG, hiring more people, or investing in other business opportunities.

And so the company itself is kind of investing a lot of its money in innovation. It’s invested to go from a couple days to one day to one hour in its shipping and it’s costing money invested in data centers around the world to build its cloud business. And yes, it’s starting to return profit. But I worry when the government said pay more taxes, pay people more without necessarily understanding the fundamentals that run the business is, yes, it seems the company is untouchable today. But you know what? Blackberry was untouchable? Kodak was untouchable. Blockbuster Video was untouchable. But all of a sudden, you know, you start saying pay more, spend more, make less and does that start to hamper innovation?

Patrick Moorhead: Yeah, so that’s great analysis. And I know you’ve spent a little bit more time on this than I have. But here’s the thing. Amazon is a fun company to pick on because Jeff Bezos is the richest person in the world. And Amazon is doing great. It basically created the whole concept of infrastructure as a service, and they’re taking money away from their competitors. And then on the retail side, they’re doing the same thing. Amazon does pay a lot of taxes. And one of the things, and I’m glad you brought up the taxes, it pays through their workers, but how about sales taxes? Everything that’s sold by Amazon has sales tax where they have a distribution center, which I think is nearly every state that’s out there. And the other thing is, Amazon had losses for years. When you do carry forward on losses that will carry forward I think, up to a decade. I’m not an accountant. And the second thing is, is that the R&D tax credits that Senator Warren voted for a bunch of times incented companies like Amazon to make certain investments certain ways, and they did this. So they’re a target. I’m the last person that’s going to say, we need more taxes. I mean, I know gosh, even Jeff Bezos said, yeah, tax corporations more. I’m not even there. Right. I’d like to see better use of that money. And I’d like to see like what we see in the business world, outcome based things because right now, we’re taxing a lot of things. And I question what we’re actually getting back for it.

Daniel Newman: Yeah, you make so many great points. And I think I was giving one example, you gave another about where taxes generate business to generate tax through a lot of different things. There’s property taxes in every one of those facilities, so when you’re talking about taxes, you know, we tend to cherry pick our facts. And that’s something I recommend people look more deeply into. I think, also, it’s hard to talk about this without sort of looking at different issues that I probably conflated a little bit, but these are all issues that need to be considered. You’ve got how workers are paid, you’ve got how innovation is fostered, you’ve got how ESG and community efforts are handled. And then ultimately, you know, you put all these things together, but they are all interrelated. And I think that’s the hard thing. Like if you just go to a company, you start stripping off the bottom line, what happens is they hire less and they invest less, because in the end, these companies have that it goes back to what I said that fiduciary responsibility to its shareholders, people will not continue to invest $3,000 a share in an Amazon that’s making less money. They want the company to show profit, to show innovation, to show investment, and show market leadership. So we’ve got to understand all these things impact each other. I’ve got an Op Ed that will come out about this in depth. I’ll share it with everybody later to talk about this for a long time. Glad we had the chance to just kind of break the ice here, though, and I hope, you know, we can have some productive and human conversations about it throughout our communities Pat. So anyhow, any last word on that before I move on to something that’s a little more of a typical topic.

Patrick Moorhead: I think we’ve exhausted this thing. There are so many directions we could probably talk about this thing for I mean, you know, Amazon stock goes down, guess what? Pension funds, 401Ks, people are invested in here. And it’s just like, it’s frustrating, Daniel, it’s like, we lose our brains when we start talking about this stuff. And it’s super frustrating for me, but I think it’s probably best to move to the next topic.

Daniel Newman: Yeah let’s do it, you and I did a special edition this week, but it didn’t get published on our pod. So if you are watching us on a live stream, you may have heard some of our comments about this already. But if you are subscribed to us on, say, Spotify or Apple, you probably didn’t hear this yet. And so Intel, which has been a regular topic for us over the last several weeks, because it’s just had a ton of big breaking stories. A few weeks ago was their big IDM 2.0 day launched by Pat Gelsinger. Recently Navin Shenoy and Lisa Spelman came back to announce a much awaited Ice Lake, which is their third generation Xeon, scalable solutions for the data center and beyond the edge in the cloud. I just want to point that out. But Pat, we talked a lot about it. I do want to give you some kudos. I wrote a quick piece about it. It’s in the show notes. But you wrote actually one of my favorite pieces I’ve had you write, because this is a very nuanced topic, potentially as nuanced as the Amazon topic in its own way. Because you really are talking about companies making major investments. This is a breakthrough moment, there’s a lot of positivity, but at the same time, there’s still some tech leadership issues that it hasn’t necessarily caught up to some that have leapfrogged in certain areas, and you did a really good job of breaking that down.

Patrick Moorhead: I appreciate that Daniel and I can’t say how meaningful is it to me for kudos on the article. I don’t always get it right. But sometimes I do. So let’s talk about Ice Lake here. So just a little bit of a background. Intel, while it has around a 35% data center, which is you know, server storage, networking and security. It has a 90% server market share out there and the announcement on their latest Gen Xeon scalable processor plus some new memory options for Optane. Combined with things like Agilex, FPGAs and networking, Intel really lean into their strengths and think well I’m going to do like I did in our longer podcast, just talk about what wasn’t in the releases, and I think explain some of the unwritten elements of why Intel still does so well. Even though it’s not winning all of the native benchmarks out there as like, frankly, we saw the day of launch on a non tech and serve the home. But I spent over 10 years competing with Intel, I spent 10 years at systems companies working with Intel. I think I know Intel pretty well. And one of the reasons that Intel, I think, is going to continue to do well, even though it’s not going to win on the non-native benchmarks is first off, they are bringing a lot of accelerators to the table. Inside of third Generation are crypto accelerators and machine learning accelerators. And for competitors, they essentially need to have an external accelerator to do that. But a very quick jump off of that you have to understand Intel. Let’s look at salespeople. Intel has hundreds if not 1000s of salespeople calling on end users in the data center, enterprise data center and CSPs COMs, SPS, etc. AMD doesn’t make this investment. Intel also pays, I would say for most of the design funding that’s out there and the OEM and a little bit of ODM. That’s a lot of money. So that reduces R&D costs for people.

Marketing – Intel spends over a billion dollars a year in marketing. AMD does not. And when you get into OEMs who aren’t picking sides here that means that Intel and AMD have to carry the water for things like promotion. And I just said Intel spends a billion dollars a year in marketing and AMD doesn’t. Who do you think wins this round? The other thing is enterprise conservatism. By the way, at this time, during Opteron, AMD at 26% market share, it has 10% right now there’s something going on here. And a lot of this, I think is enterprise conservatism, which is if it’s not broken, why fix it, AMD might win the native benchmarks, quite frankly, and nobody got shot in IT for being the hero but as I said in my article, they do get shot for being a zero for making life difficult maybe, or something more complex with live migrations. And I think that’s a real issue out there. Again, no disrespect to AMD. I mean, they went from 0% market share to 10%. There’s a lot of kudos out there. But at the same time, in a lot of benchmarks, they’re running up the score on Intel, and there are at 10%. So there’s other value that’s there that Intel brings to the table that I tried to uncover in my analysis, Daniel, and I think you hit on most of those issues as well.

Daniel Newman: Yeah, you did a really good job. And like I said, I recommend everyone that’s listening in pick, you know, just hit the article because like I said, it goes in depth at a level that you sort of had these it’s just the economy of people analyzing the day it was either kind of like yay woohoo Intel great job, or an in more cases, it was people who are kind of what I’d say your benchmark geeks kind of hammering Intel a little bit saying new stuff, but AMD’s faster and AMD’s faster. And all joking about that aside, the way I kind of see it is look, Intel gets ecosystem Intel gets marketing, Intel gets provenance in a way that hey, these companies I’ve worked with Intel forever, they’re going to stick with Intel, they got the wins they bought the same customers came back so you got your Oracle’s there and your Microsoft’s there and they’re all going to continue working with Intel. And so while Intel was at its very weakest over these past couple of years, AMD grabbed market share, but you could argue that the biggest opportunity that maybe would ever have existed for AMD to grab market share, probably passed at the point in which this Ice Lake launch took place. Because not only is Ice Lake now in market, but you do have Pat involved, you’ve got new FABS being built, you’ve got more scale, more manufacturing capacity being developed, you’ve got a company that’s seemingly finding its groove again. So there may not have been a better moment to grab market share. And you also have ARM entering the picture. And that’s going to change the landscape for sure as these Asecs are the data center continue to be built with special purpose. We’re seeing it from AWS and Alibaba, Microsoft is following track and you can be sure others will be following track as ARM continues to develop more and more capable IP.

Okay Pat great article, like I said, hit it, read it, go into the show notes. If you’re listening to this in the car, pull over, go into the show notes, click the link, bookmark it, go home read it because like I said, I don’t even think we could do it justice. Because like I said, he did a really good job of crossing. And by the way, very balanced. There was some very pro Intel in there. But there’s also some very not pro. And so that’s kind of what I love when I see analysis is it’s never one thing. And now the good analysis isn’t binary. It’s not all, you know, cheerleading. So

Patrick Moorhead: Listen, feel it. If it weren’t that we’d be influencers, you know, and not analysts to influence.

Daniel Newman: Alright, so let’s jump on to something that is a little bit more of a quick, lighthearted story but a positive direction of a company we track. A company that’s been in regular participant in our summit. Last year, one of our keynotes, by the way, AMD was and Intel as well, our summit is coming, you’ll be hearing more about that in the coming episodes because we get very excited about it. But Splunk, which has had a huge growth year, as observability becomes a bigger and bigger topic. If you watch Cisco Live last week, you heard observability that word become a big headlining word. If you are paying attention to ITSM, if you’re paying attention to security SIM, and you’re paying attention to observability, there may be no company that’s growing faster than Splunk. Over the last couple of years, Splunk has been very busy shifting its business model as a software company to a subscription based, cloud based, ARR based and it has really turned a corner there. You can check out some of my earnings covers to get a better feel for what’s going on there. But actually the growth pace was faster than Salesforce during its key growth era. That’s how fast Splunk is growing. And the company has also been very focused on growing its executive suite and recently nabbed a top exec that led the public business public sector business, a gal by the name of Teresa Carlson an AWS and Microsoft vet to be their new president and chief growth officer. You know, I was tracking the situation and we don’t do a lot of on the moves here. But it was a very interesting moment in time. First of all, I’m always flagging right now as a father of two daughters, and I think you too as a dad of two daughters. I love seeing women in STEM coming up and taking big roles.

And Splunk’s got a big role in the future and you know having her join in such an important role and an important time, in the company’s transformation was really, really good to see. The other thing that’s going on is the experience that, you know, she brings from AWS and which was a hyper growth business. And by the way, 30% growth is still pretty magnificent when you’re over $10 billion a quarter taking that, you know, to Splunk, which is in this transformation that’s moved from, like I said, IT management and security management of data flow to this observability arm, which has been a huge focus to a cloud based business, to a purely subscription at this moment in time is really important. So, you know, as I see it, like I said, I’m really glad to see that diversity being pushed in that C suite, key roles being given to executives with great experience and leadership. And also, you know, I’m kind of fascinated to watch. We’ve had Doug Merritt, Splunk CEO on a few times, we’ve had him on the cast, we’ve had him on our event, I think that company has some real growth trajectory, somehow, despite the fact some big companies are competing in that space, it’s really been able to carve out its niche and see some real success. So you know, we’re going to be interested in watching Teresa see what she brings to the company in this new role and see if that rapid growth rate that I mentioned can continue.

Patrick Moorhead: Daniel, great analysis. So first off, super impressed with the way that Splunk has gone. You know, there are a lot of one hit wonders out there in the tech industry. And what I have appreciated most about Splunk is taking what they’ve started and then putting layers of value on top of that, right? It’s one thing to put out a tool to be able to do stuff with real time machine learning, streaming data coming in, and then you the enterprise having to do all the work around it. It’s another thing to put up a solution and even go one step further. Which Splunk is doing which is going a little bit more vertical, even creating an ecosystem as it goes along. I think I’ve told you this before, my nephew, the reason he got his big security job at an unnamed insurance agency is because he was learning Splunk when he was in college at Ohio State. He was the only one who knew it. And this very large insurance company in Ohio wanted to bring it in. And that’s how he got his job. I am impressed with the new president coming in. This is a good story. And that is just an exemplification of a more mature company as it goes forward. Hey, maybe the next in line to replace Doug when he goes on to his new venture.

Daniel Newman: Hey, who knows? Right? And maybe we’ll hear from Teresa in upcoming events. Splunk will definitely be back for our summit. But you know, maybe we’ll have Teresa general our live Q&A, or maybe she’ll join the show at some point in the near future. If you’re listening, it’s an invitation. Alright, so let’s jump to the next thing. Pat, you’re on fire this week writing pieces on a lot of things. And another company you just absolutely cannot stop talking about it just keeps doing things. Well, has been VMware and VMware had a pretty big announcement and its cloud strategy.

Patrick Moorhead: Yeah. So VMware, previous stalwart of VMs actually still stalwart made a bunch of acquisitions to get into the new age of containers. VMware is one of those companies that everybody says they’re dead, but they just keep growing, which I think is a testament to the leadership of Pat Gelsinger and President Sanjay Poonen. But what they did this week is a couple things. So first off, they simplified some of the terminology. They created VMware cloud, and they went as a service with it with VMware cloud universal. And with VM VMware cloud, you can you can deploy apps to VCF running AWS, Azure, Google, IBM Cloud, Oracle Cloud, VMware cloud on Dell and EMC and across hundreds of VMware cloud certified partners. Now the snarky thing about the decoder ring is that they combined a lot of stuff in there on VMware cloud, merging Tanzu and VCF. And go read the article if I’ve confused it even more. To me, this is the big setup for the spin off from Dell. Where even though Dell was doing a lot of the selling and marketing about VMware cloud, and VMware was actually delivering most of it out there. To me this is getting them set up to be on their own and the ability to work with more closely with even other providers like HPE, Lenovo, and even Cisco.

The second thing that this did is got them officially into as a service and Daniel if we’ve talked about here and whether it’s HPE Greenlake, Lenovo. Cisco officially announced their networking as a service, enterprises want the option of doing everything as a service. And even if they have to pay more for it, you know, nobody saves money going to Amazon, it was the flexibility. It was the dare I use the word agility, a little bit more than a marketing term to do this, and that this really brings VMware and its customers and positions, its new Kubernetes offerings and multi cloud offerings for the next five years and a glide path to detach from Dell. And again, not complete, detach, I think Dell will be their primary go to OEM and that, you know, we’re going to have to see what long term agreement is agreed to between the two companies, but I do expect VMware to do even more with companies other than Dell into the future.

Daniel Newman: VMware could end up looking a lot like the Red Hat within IBM in the sense of, you know, one way you know, IBM, very much owns Red Hat, but has kept it very much operating it that’s kind of how Dell has done it over the years too. Where people that follow the companies closely know there’s that relationship and people that don’t have been able to completely operate within or without the ecosystem. But what Dell has done really well has been a massive shot in the arm for VMware has been its sales arm, Dell has a massive and very capable sales team. So let’s definitely move that on. Because you know, I think as a whole good story, VMware is here to stay, they get it, they need to move from position space to cloud, it’s going to happen, new leadership there, it’s going to be interesting to track what happens to that the 13 D that’s still out there still looming. Let’s end on a little quick heart warmer, one of the things that we talked about a lot. And we mentioned this with the Amazon, part of our conversation has been, you know, ESG, and companies are being more and more held accountable to be thinking about how they’re giving back for the resources they take from the planet. Well, I think we’ve probably talked more about on this show, as it’s become more of a tech company, whether that’s been an IoT edge SAS business, or its quantum business. But the company also has been making a big push this week to accelerate its carbon neutrality.

In fact, we talked about the 20-40 pledge that has come out from Amazon. Well Honeywell said hold my beer and said, we are going to push to do this in 2035. And that CEO, which may hear more from us soon, you know, came up and said, “Look, we’re going to really work hard.” But what I thought was actually most interesting, Pat about the announcement, and I did a little write up and you can check it out in the show notes. A little research note on this is the company has been quite active in its carbon neutrality, and in it proving its footprint for years. And so being present, being vocal and being visual, we’re in a time of importance each day, just a couple quick stats. Since 2004, the company’s reduced its greenhouse gases by 90%. But since that same time period has become 70% more energy efficient and has launched over 5700 sustainability projects. Now there’s a bunch of other data points and the company shared it, but I think the key here is that going green and creating pledges, all that stuff is great, but a lot sits in the actions. The actions speak louder than words, do companies actually do stuff? And as I said, avoid going dark after making these pledges. Because when you make a pledge that’s 14 years out to a world that can’t make 14 minutes without checking the headlines. People forget things very quick. Oh, when he was making a pledge, Oh, I forgot. We need to hold companies and enterprises accountable to stand up to these pledges. And providing this kind of data and doing things that matter along the way is going to be a really important detail.

Patrick Moorhead: That’s good analysis and good sentiment and I agree with you. The exciting part for me related to Honeywell’s climate pledge is, Honeywell is OT. Right? And with Forge and quantum they’re going IT, but their customers are factories and things that create a lot of pollution. The cool part is that anything Honeywell can do will rub off on their customers. And I think that’s kind of this network additive effect, but Honeywell is really on the move. They’re impressive. Even though I still have to explain what they do and IT to people Darrius getting on CNBC all the time is pretty cool. And getting the name out there. If you’re into quantum, and you have one of the best EPM platforms out there you are tech. So anyways, I’ll stop here. We’re already at 39 minutes.

Daniel Newman: Welcome to the Six Nine. Hey, you and I both know a little shout out right. We’re both big fans of the all in podcast, the guys that quote unquote the best teams right. And by the way, a great podcast, I highly recommend it. Other than ours, great one to listen to, but they do like an hour and a half. So I mean, clearly if we’re saying smart enough stuff, people are going to hang out with us. But we did love the format. We really do want to keep it short and concise. So think of it this way. The Six Five is 30 plus, you know, a couple minutes on the product couple minutes on the back people support it. All right. And speaking of we are right there right now. So I just want to wrap this up and say thank you everybody, for tuning in to us. Hit that subscribe button. Join us on Spotify. Join us on Apple, join us on LinkedIn live, join us on SoundCloud. Join us wherever check it out on YouTube. Hit those show notes, read those articles that pat wrote this week. They were really, really good for this episode, though, for Pat Moorhead and for myself. We got to say goodbye. We look forward to seeing you all very, very soon. Have a good weekend.

Daniel Newman