WEBVTT - Mixed Jobs Signals and Amazon's Cell Service 0:00:00.680 --> 0:00:05.000 From Marhart where Innovation, Money and Power Collie in Silicon 0:00:05.080 --> 0:00:09.520 Vallet NBN. This is Bloomberg Technology with Caroline Hyde and 0:00:09.760 --> 0:00:10.360 Ed loved Love. 0:00:24.239 --> 0:00:26.520 I'm Caroline Heinde at Bloomberg's World headquarters in New. 0:00:26.520 --> 0:00:29.920 York and ourmed lovelow in San Francisco. This is Bloomdog 0:00:30.000 --> 0:00:31.280 Technology coming up. 0:00:31.400 --> 0:00:34.000 Well, some mixed signals in the labor market. Will break 0:00:34.040 --> 0:00:36.879 down what hiring looks like within the tech sector and 0:00:36.880 --> 0:00:39.519 speak to the CEO of Human Resources Platform Athena. 0:00:40.520 --> 0:00:42.760 Plus, we get a peek inside the c suite when 0:00:42.800 --> 0:00:44.600 it comes to the health of the tech industry and 0:00:44.640 --> 0:00:48.040 speak to the CEOs of CrowdStrike and z Scaler. Does 0:00:48.080 --> 0:00:49.479 those companies report earnings? 0:00:49.640 --> 0:00:52.360 And Amazon and talks to offer mobile phone services to 0:00:52.400 --> 0:00:54.960 its prime customers, will discuss well what that means with 0:00:54.960 --> 0:00:55.560 the competition. 0:00:56.040 --> 0:00:57.720 All that and so much more coming up. 0:00:57.920 --> 0:00:59.720 I don't know if you saw the story coming out 0:00:59.720 --> 0:01:02.160 of the Bank of America once again showing us where 0:01:02.160 --> 0:01:04.400 the fun flows are going. And Michael Harten it's been 0:01:04.440 --> 0:01:06.680 just putting out note after note calling what he says 0:01:06.720 --> 0:01:09.280 as an AI baby bubble that we saw. 0:01:09.120 --> 0:01:09.840 In the month of May. 0:01:10.040 --> 0:01:12.360 But did you see the statistics and the last week 0:01:12.360 --> 0:01:16.240 of May the money flowing in to technology a record 0:01:16.360 --> 0:01:20.120 amount eight and a half billion dollars. That's EPFR global 0:01:20.200 --> 0:01:22.800 data extraordinary. And we know why. We know it's the 0:01:22.840 --> 0:01:23.520 AI bubble. 0:01:24.080 --> 0:01:26.679 Well, look, there's this kind of fomo element, right, but 0:01:26.800 --> 0:01:29.000 remember what we talked about with Juane Phoenie twenty four 0:01:29.000 --> 0:01:30.800 hours ago. All of the games in the S and 0:01:30.840 --> 0:01:32.959 P five hundred years to day are just seven names, 0:01:33.200 --> 0:01:35.480 the megacats and Nvidia, which is a big part of 0:01:35.480 --> 0:01:38.399 that AI story. Then we think about the fed hot 0:01:38.440 --> 0:01:41.520 hot hot jobs data. What does it mean looking at swaps, 0:01:41.520 --> 0:01:44.560 we're probably pricing for a hike in July, however you 0:01:44.600 --> 0:01:46.880 want to phrase it for June a skip. Some in 0:01:46.920 --> 0:01:49.440 the market would say higher rates impact present value of 0:01:49.520 --> 0:01:51.480 future cash flows to tech. So we've got to pay 0:01:51.480 --> 0:01:53.040 attention to the fundamentals as well. 0:01:53.440 --> 0:01:56.000 Ed twenty four hours ago, you were talking to the 0:01:56.040 --> 0:01:58.360 CEO Palenteer. I know this is a weird week, so 0:01:58.680 --> 0:02:00.600 Joanne PHOENI was forty eight hours. I don't know if 0:02:00.640 --> 0:02:02.160 you know, but I have no idea what day it is, 0:02:02.160 --> 0:02:04.320 what time it is. But it was a great set 0:02:04.360 --> 0:02:06.520 of interviews that we've had this week, and yeah, where 0:02:06.520 --> 0:02:08.840 we're talking chips, where they're talking AI, let's talk payrolls 0:02:08.919 --> 0:02:11.720 right now, because well, today we're showing continued strength in 0:02:11.760 --> 0:02:13.880 the labor market, but we're just trying to dissect where 0:02:13.880 --> 0:02:16.280 that strength is and whether it's actually in the tech 0:02:16.280 --> 0:02:18.040 sector that we talk about day in day out. Let's 0:02:18.040 --> 0:02:21.440 bring in someone who knows well Roxanvates, CEO of course 0:02:21.600 --> 0:02:25.240 of the key company that is looking at the resource platform, 0:02:25.360 --> 0:02:29.200 thinking about the technology startups that you're focusing on, Zoom, Figma, 0:02:29.320 --> 0:02:33.760 even Netflix, Athena is supplying to these companies at the 0:02:33.760 --> 0:02:37.480 moment in Rockxan, what are you seeing in terms of nervousness, 0:02:37.520 --> 0:02:41.400 because you're actually all about compliance, you're all about culture. Ultimately, 0:02:41.960 --> 0:02:43.120 what's the tech sector feel like? 0:02:43.560 --> 0:02:45.600 I think that there's kind of this tension because there's 0:02:45.600 --> 0:02:48.560 obviously been huge challenges in the tech sector, massive layoffs 0:02:48.560 --> 0:02:50.239 that have kind of happened throughout the past twelve to 0:02:50.280 --> 0:02:52.560 eighteen months. But on the flip side, there's also a 0:02:52.639 --> 0:02:56.000 huge desire to keep key talent, keep culture and companies 0:02:56.040 --> 0:02:59.200 whether they're navigating return to office, whether they're navigating sort 0:02:59.200 --> 0:03:02.000 of all the social chalnelenges, intergenerational in the workforce, and 0:03:02.040 --> 0:03:04.359 so I think you're seeing both, you know, the kind 0:03:04.400 --> 0:03:08.600 of rampifications of a bit of a tighter economy in tech, 0:03:08.639 --> 0:03:08.880 you know. 0:03:08.880 --> 0:03:11.880 Layouts and things like that, but also absolutely. 0:03:11.440 --> 0:03:13.079 Wanting to hold on tight to all of your key 0:03:13.120 --> 0:03:15.440 talent because you know, that's at the end of the day, 0:03:15.440 --> 0:03:18.560 what makes really great type companies this great employees. 0:03:18.880 --> 0:03:21.760 So try and carve it out for US three hundred 0:03:21.760 --> 0:03:24.160 and thirty nine thousand from a global from a US 0:03:24.520 --> 0:03:28.359 macro perspective, looks very hot, but the unemployment rate is rising. 0:03:29.000 --> 0:03:31.799 We are seeing a fight for certain types of talent, 0:03:32.000 --> 0:03:33.720 for AI talent in particular. 0:03:33.760 --> 0:03:35.119 We're just hearing how JP. 0:03:34.960 --> 0:03:37.480 Morgan is just forty percent of those that are trying 0:03:37.480 --> 0:03:40.640 to hard at amendment have got AI skill set. So 0:03:40.800 --> 0:03:42.920 is that what was being referenced by the companies you're 0:03:42.960 --> 0:03:46.320 talking to about this worry that those that they have decided. 0:03:45.880 --> 0:03:48.400 To keep having a hard time keeping them. 0:03:48.440 --> 0:03:51.000 I think that's exactly right, that there's you know, I 0:03:51.040 --> 0:03:52.800 think that there can be this feeling that you conduct 0:03:52.800 --> 0:03:54.839 a layoff and then it's just done. And in fact, 0:03:54.920 --> 0:03:57.760 what I'm seeing with really thoughtful companies that we're really 0:03:57.760 --> 0:04:01.040 proud to serve is that their people team, their management 0:04:01.040 --> 0:04:03.040 teams understand that you may conduct a layoff, but that's 0:04:03.040 --> 0:04:05.080 almost like day one. What you really then need to 0:04:05.120 --> 0:04:07.520 do is invest in making sure that those who are 0:04:07.520 --> 0:04:10.200 staying are happy, that they're connected to the company, that 0:04:10.240 --> 0:04:13.440 they understand new policies, that they understand, you know, whatever 0:04:13.920 --> 0:04:17.000 new things are happening in that company. Because a company 0:04:17.000 --> 0:04:19.560 has done a layoff, but they are absolutely still planning 0:04:19.600 --> 0:04:21.760 for growth, they you know, still fundamentally believe in their 0:04:21.760 --> 0:04:23.479 core mission and in order to do that they have 0:04:23.560 --> 0:04:24.440 to keep the best talent. 0:04:24.760 --> 0:04:27.080 And of course AI is absolutely driving a lot of this. 0:04:27.240 --> 0:04:30.840 But you know, in management, you need strong managers to 0:04:30.880 --> 0:04:33.800 step up. Sometimes their span of control has increased. So 0:04:33.839 --> 0:04:36.039 I think that the idea that layoffs were conducted and 0:04:36.080 --> 0:04:38.520 then done, we're not really seeing that. Instead, we're seeing 0:04:38.560 --> 0:04:41.560 companies really invest in like, Okay, what's the day after. 0:04:41.680 --> 0:04:43.600 What's the day after, what's the culture like in d 0:04:44.320 --> 0:04:46.280 how much you're having to pay people? Because I think 0:04:46.279 --> 0:04:48.920 that's the other interesting part of this macro store and 0:04:48.960 --> 0:04:51.440 the Job's data today was maybe you saw that wage 0:04:51.520 --> 0:04:54.960 increase in that wage inflation just stall back a little bit. 0:04:55.839 --> 0:04:57.600 Yeah, that's the data point. 0:04:57.680 --> 0:05:01.000 Something I tweeted this week Roxanne was the story around 0:05:01.160 --> 0:05:04.400 zip Recruiter cutting twenty percent of its staff. 0:05:05.080 --> 0:05:05.960 What does that tell you? 0:05:06.000 --> 0:05:09.320 Forget the economic data, what does that tell you when 0:05:09.320 --> 0:05:13.039 a company like zip Recruiter that's doing recruitment is cutting 0:05:13.040 --> 0:05:15.280 twenty percent of its own Stuff about this market? 0:05:15.800 --> 0:05:18.080 Yeah, I mean, I think regardless of what company it is, 0:05:18.160 --> 0:05:20.080 you know, the layst I think I've tended to be 0:05:20.160 --> 0:05:23.320 between ten and twenty percent, And of course any company 0:05:23.320 --> 0:05:26.599 that's heavily in the talent space was hit early, hit hard. 0:05:27.360 --> 0:05:29.600 But I don't think that it fundamentally changes. Like if 0:05:29.640 --> 0:05:31.240 you kind of pull back from the month to month 0:05:31.240 --> 0:05:33.960 and look year to year, everybody believes that tech is 0:05:33.960 --> 0:05:34.520 the future. 0:05:34.560 --> 0:05:35.320 Like there's still this. 0:05:35.320 --> 0:05:40.080 Really strong optimism driven by AI primarily, but across the board. 0:05:40.120 --> 0:05:43.320 I think that as companies go hybrid, key tools are 0:05:43.320 --> 0:05:45.320 going to be needed in order to connect management with 0:05:46.240 --> 0:05:49.559 their employees. Like none of these I guess secular trends 0:05:49.600 --> 0:05:51.559 are rolling back, and so I think it's a little 0:05:51.560 --> 0:05:52.000 bit more. 0:05:52.279 --> 0:05:54.600 You know, what it probably tells most people is that. 0:05:54.839 --> 0:05:57.719 There may have been some overhiring, some exuberance, regardless of 0:05:57.720 --> 0:05:59.600 what the company is. The past couple of years were 0:05:59.680 --> 0:06:02.960 quite wild in tech, and I think it's just more 0:06:03.000 --> 0:06:06.680 of a like a restructure, not a fundamental disagreement that 0:06:06.720 --> 0:06:09.279 the future of these tech companies remain strong. 0:06:10.400 --> 0:06:13.039 When do we return to horing. 0:06:13.960 --> 0:06:16.080 I mean, I think that we are absolutely there. I 0:06:16.160 --> 0:06:18.480 still many of the companies we work with, even companies 0:06:18.520 --> 0:06:20.800 that have conducted, you know, to your point, these ten 0:06:20.839 --> 0:06:24.120 twenty percent layoffs on the exact same day, may still 0:06:24.160 --> 0:06:27.480 be hiring for key roles. So I'm not sure if 0:06:27.560 --> 0:06:29.800 I had a crystal ball, you know, everything would be 0:06:29.880 --> 0:06:32.600 much easier for me when we're going to return to 0:06:32.640 --> 0:06:34.480 the pace of hiring that we might have seen over 0:06:34.520 --> 0:06:35.440 the past two years. 0:06:35.800 --> 0:06:37.480 But I wouldn't in any way. 0:06:37.360 --> 0:06:39.840 Say that the people teams that were we work really 0:06:39.880 --> 0:06:44.040 closely with have stopped hiring. They're backfilling certain roles. They're 0:06:44.040 --> 0:06:46.279 absolutely thinking about where they need to continue to invest. 0:06:46.360 --> 0:06:48.479 And so it's kind of this complicated dance of on 0:06:48.480 --> 0:06:50.400 the one hand, perhaps conducting a layoff, but on the 0:06:50.480 --> 0:06:53.080 other hand, really investing in both the talent that remains 0:06:53.120 --> 0:06:54.960 and thinking about the talent coming in o. 0:06:55.000 --> 0:06:57.839 Those people teams being replaced by AI. 0:06:58.920 --> 0:07:01.960 I mean I think that they're being handspare by AI 0:07:02.040 --> 0:07:03.680 right now. That's like sort of both the hope and 0:07:03.720 --> 0:07:05.680 I think what we're seeing in general, there's still so 0:07:05.839 --> 0:07:08.240 much of the people function that really is this like 0:07:08.320 --> 0:07:11.120 interpersonal dynamic. You're conducting one on ones, you're conducting really 0:07:11.120 --> 0:07:14.160 sensitive conversations, and I think there's an understanding, even among 0:07:14.200 --> 0:07:17.680 folks who are incredibly optimistic about AI, that you're still 0:07:17.720 --> 0:07:20.119 going to need to have these conversations have this really 0:07:20.560 --> 0:07:21.960 complex inner personal dynamic. 0:07:22.080 --> 0:07:23.800 But the absolute hope is. 0:07:23.840 --> 0:07:26.680 Replace a lot of that paperwork with AI so that 0:07:26.720 --> 0:07:28.960 you can focus more on the people work and not 0:07:29.040 --> 0:07:31.920 just kind of that routine, you know, day to day stuff. 0:07:31.920 --> 0:07:33.520 That's exactly what Athena is aiming to do. 0:07:35.760 --> 0:07:40.320 Roxand Portraeus of Athena, thank you, Thank you. Coming up, 0:07:40.360 --> 0:07:43.120 CrowdStrike reports its first quarter results are going to bright 0:07:43.120 --> 0:07:43.600 and little. 0:07:43.440 --> 0:07:46.360 Down with CEO that's coming up next. 0:07:46.920 --> 0:07:48.520 I'm just going to take quick look at shares of 0:07:48.520 --> 0:07:52.480 Broadcom as well. Interesting here, Caroline, which story do you 0:07:52.520 --> 0:07:55.720 buy into when it comes to Broadcom the narrative that 0:07:55.840 --> 0:07:59.360 AI sales will double over the course of this fiscal year, 0:08:00.160 --> 0:08:04.320 or that every other business area is slowing down, particularly 0:08:04.320 --> 0:08:05.920 when it comes to the memory side of the business. 0:08:05.960 --> 0:08:08.559 I think that's really important stock to watch right now. 0:08:08.840 --> 0:08:11.400 Investors liking it at one point nine percent. This is 0:08:11.400 --> 0:08:26.440 Spoonberg CrowdStrike, reporting its first quarter results earlier this week 0:08:26.480 --> 0:08:28.880 and boosting its revenue guidance for the full year. The 0:08:28.880 --> 0:08:32.640 company also announced it's working with AWS to developed new 0:08:33.000 --> 0:08:36.840 generative AI applications. Let's bring in CEO George Kurtz for 0:08:36.880 --> 0:08:39.200 more on this. There was some concern George about a 0:08:39.240 --> 0:08:43.280 decileraration in billings at one point to stock Thursday down 0:08:43.280 --> 0:08:46.680 eleven percent, biggest drop since November. Others on the street 0:08:46.720 --> 0:08:49.960 saying nothing to dislike in this earnings report. 0:08:50.280 --> 0:08:51.800 What was the most important point for you? 0:08:53.040 --> 0:08:54.760 Well, I think when you look at the earnings report, 0:08:55.160 --> 0:08:57.720 you've got to start with we've exceeded our guided metrics. 0:08:58.480 --> 0:09:01.760 In addition to that, we actually record revenue record, gross 0:09:01.760 --> 0:09:07.960 profit record, operating profit and for the first time gap profitability. 0:09:08.320 --> 0:09:10.760 So when you put all that together, it was extremely strong. 0:09:10.800 --> 0:09:13.000 And the way we run our business is not by billings. 0:09:13.040 --> 0:09:15.200 Billings is more of a timing issue. You have to 0:09:15.240 --> 0:09:18.520 look at that new arr and if you look at 0:09:18.520 --> 0:09:22.280 the current environment with the current conditions and macroheadwinds. We 0:09:22.320 --> 0:09:25.440 think it was an absolutely strong quarter and it was 0:09:25.440 --> 0:09:27.679 a beat and raise, and I think it's a testament 0:09:27.720 --> 0:09:29.720 to the product in the customer base that we have. 0:09:30.240 --> 0:09:33.480 Let's talk about that new annual recurring revenue first year 0:09:33.520 --> 0:09:36.040 every year decline and made what is, of course, as 0:09:36.040 --> 0:09:39.960 you say, challenging macro environment. Is that macro environment improving 0:09:40.000 --> 0:09:42.160 in any way that the perspective you're seeing. 0:09:42.840 --> 0:09:44.920 Is it getting easier in the sales cycle or no. 0:09:46.280 --> 0:09:49.120 Well, it's certainly not getting easier. When we looked at it, 0:09:49.120 --> 0:09:53.280 it remained consistent and consistently challenging. Was it something that 0:09:53.320 --> 0:09:56.199 we talked about the headwinds for the last couple of quarters. 0:09:56.960 --> 0:09:58.719 We didn't see it get better, but we saw it 0:09:58.760 --> 0:10:01.880 remain basically the same. So we'll see what happens for 0:10:02.440 --> 0:10:06.360 the upcoming quarters. And obviously everyone's hoping for some relief 0:10:06.440 --> 0:10:09.920 with interest rates and some of the debt ceiling issues, 0:10:09.960 --> 0:10:11.640 but that remains to be seen. 0:10:12.160 --> 0:10:14.640 What the clients that you're signing at the moment, what 0:10:14.679 --> 0:10:18.080 are they most focused on. I'm pretty sure everyone's thinking 0:10:18.120 --> 0:10:21.400 about general to AI about some of the risks involved 0:10:21.440 --> 0:10:24.800 in cloud, which adoption is still strong there. What is 0:10:24.840 --> 0:10:27.079 the number one priority for the clients that you're currently serving. 0:10:28.679 --> 0:10:31.320 Well, it starts with stopping breaches, which is why I 0:10:31.320 --> 0:10:34.240 built a company, and I certainly believe we're the best 0:10:34.240 --> 0:10:36.040 at and I think our customers would say that. But 0:10:36.120 --> 0:10:39.080 when you put that aside, the number one driver really 0:10:39.120 --> 0:10:42.240 is consolidation. In the current environment, everyone is looking to 0:10:42.400 --> 0:10:44.880 save costs and consolidate, and with a platform that has 0:10:44.880 --> 0:10:47.880 twenty three modules, we can create a very compelling. 0:10:47.600 --> 0:10:49.720 ROI and a payback within the first year. 0:10:49.880 --> 0:10:52.160 But that means is we're taking share from other vendors, 0:10:52.360 --> 0:10:54.719 we're consolidating it onto our platform. 0:10:55.400 --> 0:10:59.200 George, when we spoke at RSA in eight pro AI 0:10:59.360 --> 0:11:02.360 was the buzzway for everyone in your industry, both as 0:11:02.400 --> 0:11:05.640 a tool but also recognizing that threat actors have access 0:11:05.720 --> 0:11:10.079 to the same technology. Now you've got a partnership with AWS. 0:11:10.080 --> 0:11:11.000 How did that come about? 0:11:12.400 --> 0:11:12.559 Well? 0:11:12.559 --> 0:11:14.920 AWS has been a great partner for many many years. 0:11:15.000 --> 0:11:19.000 Are also a customer, and when we looked at what 0:11:19.040 --> 0:11:20.920 we were doing what they were doing with Bedrock, we 0:11:20.960 --> 0:11:23.240 thought it was a great partnership. We protect a lot 0:11:23.240 --> 0:11:26.800 of their customers and their clouds, and when we think 0:11:26.840 --> 0:11:29.120 about AI. You talk about RSA, you know we were 0:11:29.160 --> 0:11:29.600 both there. 0:11:29.640 --> 0:11:30.600 It was all about AI. 0:11:30.960 --> 0:11:35.360 Guess what, Crowdstrike's been doing this since twenty twelve when 0:11:35.360 --> 0:11:37.120 I started the company. That was the bedrock in the 0:11:37.120 --> 0:11:40.560 foundation of why I started it. Now AI has transformed 0:11:40.559 --> 0:11:43.040 over time. You've got Generative AI, which we're excited to 0:11:43.080 --> 0:11:45.800 talk about Charlotte AI and what we're doing in that space. 0:11:45.880 --> 0:11:48.280 But AWS has certainly been a great partner for us, 0:11:48.280 --> 0:11:51.400 and we look forward to advancing that relationship. 0:11:52.040 --> 0:11:55.520 George, what I increasingly hear in the c suite conversations 0:11:55.559 --> 0:11:59.520 I'm having here in Silicon Valley is technical expertise. 0:11:59.000 --> 0:12:00.880 Is the driver within a company? 0:12:02.000 --> 0:12:05.720 Who within your organization was pushing you to basically say, 0:12:05.760 --> 0:12:08.280 what can we do with Amazon? How can we build 0:12:08.280 --> 0:12:11.640 something within bedrock? I want to know how day to 0:12:11.760 --> 0:12:16.840 day a company like CrowdStrike brings llms into their existing offering. 0:12:18.040 --> 0:12:20.480 Well, it's a great question, and the good news is 0:12:20.480 --> 0:12:21.400 there's not a lot of pushing. 0:12:21.440 --> 0:12:23.640 It's actually built into the DNA of the company. 0:12:23.679 --> 0:12:25.840 That's the way we started, That's the way we protect 0:12:25.840 --> 0:12:27.559 against these adversaries using AI. 0:12:27.920 --> 0:12:29.319 When we think about Generative AI. 0:12:29.440 --> 0:12:33.160 We started this project some time ago as m's were 0:12:33.280 --> 0:12:35.959 starting to mature and come to market. So we have 0:12:36.080 --> 0:12:39.120 a group or many groups actually, but we have a 0:12:39.160 --> 0:12:41.600 particular group in Europe. In fact, I was out in 0:12:41.640 --> 0:12:45.480 the office when we launched Charlotte are AI Expertise and 0:12:45.520 --> 0:12:48.040 Center of Excellence, and we basically said, you know, how 0:12:48.040 --> 0:12:49.840 do we do this at scale? How do we partner 0:12:49.880 --> 0:12:53.000 with someone like AWS, and how do we come up 0:12:53.000 --> 0:12:55.720 with the best outcomes for customers? And one of the 0:12:55.720 --> 0:12:57.480 things to keep in mind is you have to have 0:12:57.520 --> 0:13:00.000 the best data set to come out with the best outcome. 0:13:01.280 --> 0:13:04.000 Always great to catch up with George. Thanks, I'm sure 0:13:04.040 --> 0:13:06.839 you're hitting the road soon again. But talking Europe and 0:13:06.880 --> 0:13:09.120 indeed the focus on AI, George Kurts, we thank your 0:13:09.120 --> 0:13:19.040 CrowdStrike CEO. Let's talk about z skater Just what it's 0:13:19.040 --> 0:13:21.920 third quind of results and beta expectations even raising it's 0:13:21.920 --> 0:13:24.640 for your forecast for adjusted earnings shares as you'll see, 0:13:24.720 --> 0:13:26.680 had been performing well today, up seven and a half 0:13:26.679 --> 0:13:28.920 percent over the last couple of trading days. Please to 0:13:28.960 --> 0:13:31.160 say the CEO is with us, Jay Chowdry for more 0:13:31.559 --> 0:13:34.520 and Jay, you're pre released and many seeing that this 0:13:34.600 --> 0:13:37.679 is the solid numbers that They wanted to see what 0:13:37.720 --> 0:13:40.400 are you feeling in terms of macroeconomic headwinds at the moment. 0:13:40.440 --> 0:13:42.520 What are you feeling and hearing from your clients. 0:13:43.800 --> 0:13:47.640 Well, macro conditions are tight, there's a lot of scrutiny, 0:13:48.280 --> 0:13:52.440 but CIOs are still looking for making sure they're doing 0:13:52.600 --> 0:13:56.000 what needs to be done for cybersecurity. But they want 0:13:56.080 --> 0:13:59.880 to do it by having good cost savings, by having 0:14:00.120 --> 0:14:04.439 good ROI. Since we delivered great cybersecurity and we can 0:14:04.480 --> 0:14:07.920 eliminate a lot of point products, the ROI is often strong, 0:14:08.400 --> 0:14:11.600 often about two hundred percent to three hundred percent. That's 0:14:11.679 --> 0:14:13.439 what's giving strength to our business. 0:14:13.600 --> 0:14:16.400 This is a good opportunity for us to work out 0:14:16.480 --> 0:14:19.480 what is going on inside cybersecurity right now. We just 0:14:19.520 --> 0:14:23.040 had George Kurtz on CrowdStrike. His stop folls eleven percent 0:14:24.000 --> 0:14:28.760 because growth is decelerating. Yours seems to be doing your posite. 0:14:28.800 --> 0:14:31.040 You have a lot of government earl of enterprise customers. 0:14:31.400 --> 0:14:33.760 Why is it that you are benefiting from a spend 0:14:33.800 --> 0:14:34.840 on cyber right now? 0:14:35.480 --> 0:14:36.520 What markets do? 0:14:36.600 --> 0:14:37.200 What they do? 0:14:37.800 --> 0:14:40.080 I focus, as one way of putting it, Yeah, I 0:14:40.200 --> 0:14:43.480 focus less on the star price. I focus on building 0:14:43.520 --> 0:14:46.840 great solutions and taking care of our customers. But if 0:14:46.880 --> 0:14:50.600 I were to say, what's helping us is two things. One, 0:14:51.080 --> 0:14:54.960 there are many aspects of cybersecurity. The aspect we deal 0:14:55.040 --> 0:14:59.200 with is implementing zero trust architecture, which is fundamental to 0:14:59.280 --> 0:15:03.200 stop rand somewhere and other very sophisticated attacks. 0:15:03.720 --> 0:15:06.280 But number two, you may be doing a lot. 0:15:06.080 --> 0:15:07.440 Of great cybersecurity. 0:15:08.000 --> 0:15:11.880 If your business case for ROI in cost saving is 0:15:11.920 --> 0:15:15.440 not very strong, your deal gets put on hold. 0:15:15.880 --> 0:15:17.920 I'm going to give Caroline the opportunity to ask you 0:15:17.960 --> 0:15:24.800 about our official intelligence. But okay, ransomware still interests me. Yep, 0:15:24.960 --> 0:15:26.200 Where are the threats coming from? 0:15:26.320 --> 0:15:26.720 Right now? 0:15:26.760 --> 0:15:29.960 It's not been long since RSA and ransomware with a 0:15:29.960 --> 0:15:31.760 big topic of conversation at that summit. 0:15:31.840 --> 0:15:35.480 So where does ransomware come from? 0:15:35.800 --> 0:15:39.960 Yeah? Geographically? State level? What do you saying? 0:15:40.200 --> 0:15:43.000 So there's a lot of state level stuff going on. 0:15:43.640 --> 0:15:46.880 China and Russia are generally in the top two list. 0:15:47.480 --> 0:15:51.440 China driven more by IP and Russia they do a 0:15:51.520 --> 0:15:54.120 whole lot of things, and probably many times it's driven 0:15:54.160 --> 0:15:57.680 by making money though their whole range of groups that 0:15:57.920 --> 0:16:00.400 go after ransomware for making money. 0:16:01.080 --> 0:16:03.560 Can I ask you just your thought as an expert 0:16:03.840 --> 0:16:08.720 clear expert in the field about the credibility the validity 0:16:09.520 --> 0:16:14.280 when Russia and the Russian government accuses well allegations that 0:16:14.320 --> 0:16:17.160 the US has had certain iPhones, particularly of those over 0:16:17.400 --> 0:16:20.720 in Russia, is that something you think bears weight that 0:16:20.760 --> 0:16:23.760 one could assume could have happened, even whether or not 0:16:23.840 --> 0:16:24.240 it did. 0:16:26.280 --> 0:16:31.200 There's a lot of reconnaissance activity happens, and all countries 0:16:31.280 --> 0:16:34.520 do it to a certain degree. It's hard to say 0:16:34.680 --> 0:16:38.280 for sure which of these reports are true, but I 0:16:38.320 --> 0:16:42.160 can tell you that our security research team picks up 0:16:42.160 --> 0:16:44.920 a lot of reconnaissance because at the end of the day, 0:16:45.000 --> 0:16:49.200 this communication going on. Before any major breaches happen, the 0:16:49.320 --> 0:16:55.000 reconnaissance activity starts. We at these like a switchboard. We 0:16:55.040 --> 0:16:58.440 are in the middle of all communications that happens between 0:16:58.520 --> 0:17:01.720 users and applications AE and we often see a lot 0:17:01.760 --> 0:17:04.920 of that. That's how we are able to detect some 0:17:04.960 --> 0:17:08.600 of these early warnings of phishing attacks, fans similar the like. 0:17:09.160 --> 0:17:12.320 We have over three hundred billion requests that go to 0:17:12.400 --> 0:17:15.760 a cloud every day. With such a large volume of data, 0:17:16.080 --> 0:17:18.640 you can pick up stuff. The example I'll give you 0:17:18.800 --> 0:17:22.440 is before nine to eleven, there was a fair amount 0:17:22.440 --> 0:17:26.040 of reconnaissance FBI had a lot of information CI and 0:17:26.119 --> 0:17:30.400 other bodies if they could really correlate lots of telltale signs. 0:17:30.680 --> 0:17:33.639 Since we have such a massive cloud, we have a 0:17:33.680 --> 0:17:38.840 lot of those telltale signs, and now AIML, especially generative AIML, 0:17:39.440 --> 0:17:42.800 is helping us to figure those things out as scale 0:17:43.160 --> 0:17:44.760 and help our customers. 0:17:44.720 --> 0:17:47.760 Generates, ave AIML always the keywords right now in this 0:17:47.840 --> 0:17:50.800 earning season, Z Scale is CEO J. Chowdery, thank you 0:17:50.840 --> 0:17:53.520 so much for your time. Now coming up, Amazon shopping 0:17:53.560 --> 0:17:56.800 around for a partner in order to add wireless services 0:17:56.800 --> 0:17:58.719 to its list of perks for Prime. We can get 0:17:58.760 --> 0:18:00.600 more details on that from one of the reporters that 0:18:00.680 --> 0:18:04.760 broke the story, but watching shares of Meta formerly known 0:18:04.800 --> 0:18:07.000 as Facebook as we head to break social media giant 0:18:07.080 --> 0:18:10.359 asking employees assigned to an office to come in three 0:18:10.440 --> 0:18:13.760 times a week beginning in September that, according to sources, 0:18:14.080 --> 0:18:16.920 joining a clamp down on remote work in the tech 0:18:16.960 --> 0:18:20.480 industry in Caroline. How often are we hearing this three 0:18:20.560 --> 0:18:22.720 days a week the tech sector come back to the 0:18:22.720 --> 0:18:25.440 office having done reductions in workforce. 0:18:26.680 --> 0:18:27.679 Interesting one, isn't it? 0:18:28.200 --> 0:18:30.000 Yeah? It does feel like three is the magic number 0:18:30.000 --> 0:18:31.000 when it comes to technology. 0:18:31.000 --> 0:18:32.400 It's a little bit higher. 0:18:32.160 --> 0:18:34.639 If you're looking across over in Wall Street and some 0:18:34.680 --> 0:18:37.640 of those big financial players wanting four or five days 0:18:37.680 --> 0:18:40.760 a week of face show, but notable. 0:18:40.320 --> 0:18:43.200 That well, even though they've got all their virtual. 0:18:42.920 --> 0:18:46.840 Reality ways of interacting online, they still want people to 0:18:46.880 --> 0:18:48.919 come in and interact in real life too. For San 0:18:48.960 --> 0:19:00.879 Francisco and New York as a Bloomberg welcome back to 0:19:00.920 --> 0:19:03.520 Bloomberg Technology. I'm Caroline Haid in New York and. 0:19:03.440 --> 0:19:05.320 I Med Lovelow in San Francisco. Let's going to check 0:19:05.320 --> 0:19:07.399 in on these markets. So much going on from the 0:19:07.440 --> 0:19:10.520 eco to the news cycle, in particular with looking at 0:19:10.720 --> 0:19:14.399 an equity market that is charging towards a ball market, 0:19:14.560 --> 0:19:19.359 in part driven by relentless outperformance in big tech. Similarly, 0:19:19.400 --> 0:19:22.359 also thinking of course about that hot, hot hot jobs 0:19:22.400 --> 0:19:25.520 number that came in looking at swaps the market saying okay, 0:19:25.600 --> 0:19:29.000 when we think about the FED, then maybe a pause 0:19:29.080 --> 0:19:30.960 or a skip in June, call it what you will, 0:19:31.440 --> 0:19:33.720 and then a hike in July. It now seems possible 0:19:33.760 --> 0:19:36.640 throw into that some of the outperformance of single names 0:19:36.680 --> 0:19:39.560 as well in the marketplace names to the upside, like 0:19:39.680 --> 0:19:41.520 dish on that scoop we're going to get into in 0:19:41.560 --> 0:19:45.000 just a moment to the downside, what we're seeing our 0:19:45.119 --> 0:19:48.200 carriers T Mobile in particular down seven point seven percent, 0:19:48.280 --> 0:19:52.160