WEBVTT - Trust Needs Proof: Who Really Controls Your AI?

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<v Speaker 1>I'm Malcolm gla Well and you're listening to smart Talks

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<v Speaker 1>with IBM. Imagine your business depends on a system you

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<v Speaker 1>didn't build and don't fully control. For years, it works perfectly.

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<v Speaker 1>It's fast, reliable, affordable, so over time, more and more

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<v Speaker 1>of your operations rely on it. Then one day the

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<v Speaker 1>terms change. What once felt flexible now feels difficult to leave.

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<v Speaker 1>Moving to another provider or bringing those capabilities back under

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<v Speaker 1>your own control could take years, cost millions, and disrupt

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<v Speaker 1>the business in the process. That's the challenge of digital sovereignty.

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<v Speaker 1>Businesses today rely on all sorts of third party systems,

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<v Speaker 1>cloud platforms, data pipelines, AI models, software tools. Most days,

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<v Speaker 1>these systems operate quietly in the background, but when something changes,

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<v Speaker 1>like costs go up or rules shift, organizations are forced

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<v Speaker 1>to confront how much control and flexibility.

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<v Speaker 2>They actually have.

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<v Speaker 1>This is why digital sovereignty has shifted from policy concept

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<v Speaker 1>to board level priority. So to understand the challenge up close,

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<v Speaker 1>I traveled to Paris to attend Vivtec, Europe's largest technology conference,

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<v Speaker 1>to speak with two people who think about these questions

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<v Speaker 1>every day. On Apaula A Cis IBM's senior vice president

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<v Speaker 1>and chair for IBM, EMEA and APAC and Giovanni Daniello,

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<v Speaker 1>Group Chief Information Officer at AKSA.

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<v Speaker 2>Hello everyone, Welcome.

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<v Speaker 1>To a live taping of the podcast Smart Talks with IBM.

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<v Speaker 1>I was downstairs in the IBM booths chatting with the

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<v Speaker 1>people who were doing the data sovereignty presentation, and they

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<v Speaker 1>were discussing the thing and I said, oh, it sounds

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<v Speaker 1>like you're solving a headache.

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<v Speaker 2>And the guy I was trying to said.

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<v Speaker 1>We do it, IBM. We saw headaches and cure headaches,

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<v Speaker 1>and I want to start out with the two of you,

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<v Speaker 1>what is the headache in this instance.

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<v Speaker 3>So the topic of sovereignty gained a lot of traction

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<v Speaker 3>over the past few years, and even though I would

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<v Speaker 3>say it really became a buzzword this year, I think

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<v Speaker 3>that this actually started doing COVID when all the supply

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<v Speaker 3>chains became extremely stressed and companies and governments started to

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<v Speaker 3>understand that there were.

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<v Speaker 4>A lot of choke points in the world.

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<v Speaker 3>Right, so, how can I do more on ear shore

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<v Speaker 3>in how can I guarantee that I have autonomy of

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<v Speaker 3>key elements of my supply chain? I think was really

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<v Speaker 3>the wake up call, and then we entered in a

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<v Speaker 3>period of unfortunately many wars happening, constraining for example, energy security.

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<v Speaker 3>So all these disruptions in the world led companies and

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<v Speaker 3>governments to think, what is really that I need to

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<v Speaker 3>consider critical for me, and how do I have better

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<v Speaker 3>control of those capabilities? And now technology being at the

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<v Speaker 3>core of the operations, I think that actually increased the need.

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<v Speaker 4>For companies to focus on sovereignty. So that is the headache.

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<v Speaker 3>Given that there are so many dependencies, given that we're

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<v Speaker 3>living in a world that is so interconnected, how do

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<v Speaker 3>you get autonomy, how do you get back control making

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<v Speaker 3>sure that you continue to operate in a collaborative ecosystem.

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<v Speaker 5>It's a difficult equilibrium in reality, because we have to

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<v Speaker 5>take all those dimensions into consideration, making sure that at

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<v Speaker 5>the same time we can continue to access innovation. And

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<v Speaker 5>that's where the paradigm is really very, very complicated to solve.

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<v Speaker 5>So the headache we have in Exa and then probably

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<v Speaker 5>many large organizations in the world is exactly the topic

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<v Speaker 5>in Europe at least, It's about sovereignty exactly in the

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<v Speaker 5>terms you are talking about, and that's becoming a topic

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<v Speaker 5>that is very that is there's a lot of visibility

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<v Speaker 5>the agenda at very top executive level since probably it

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<v Speaker 5>started with coviy, they agree, but the last two years

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<v Speaker 5>there's been an acceleration clearly.

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<v Speaker 3>Yeah, and I really have a few data points. Today

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<v Speaker 3>we announced a study through our IBM Institute of Business

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<v Speaker 3>Value where basically we asked companies around the world, so,

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<v Speaker 3>do you have visibility of your dependencies?

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<v Speaker 6>Right?

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<v Speaker 3>Do you know exactly where are your exposures? And only

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<v Speaker 3>nine percent of the companies said that they have that

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<v Speaker 3>level of visibility, and seventy one percent of the company

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<v Speaker 3>said that if they needed to switch a provider today,

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<v Speaker 3>it would be.

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<v Speaker 4>Very difficult to do so.

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<v Speaker 3>So I think the headache this actually shows in numbers

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<v Speaker 3>the size of the headache.

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<v Speaker 1>Ye give a year and the insurance business speak to

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<v Speaker 1>the specifics of your own business. Why would this be

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<v Speaker 1>an issue that Am I right in thinking that this

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<v Speaker 1>is an issue that is a specific and special concern

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<v Speaker 1>to an insurance No.

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<v Speaker 6>I don't think so.

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<v Speaker 5>No, you know, no, I don't think so, because in reality,

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<v Speaker 5>it's an issue for organizations using technology, data and AI

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<v Speaker 5>as an important driver within the activities they manage insurance.

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<v Speaker 5>Of course, insurance is about data, it's about people, it's

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<v Speaker 5>about technology, of course, so it's very very central, but

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<v Speaker 5>it's absolutely not limited to insurance because at the end,

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<v Speaker 5>if we want to talk a little bit more into details,

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<v Speaker 5>what is sovereignty Because everybody talks about sovereignty.

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<v Speaker 6>But what is it about?

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<v Speaker 5>And very often people believe that once you know where

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<v Speaker 5>your data are located, and if you are your open company,

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<v Speaker 5>if you have the certainty that data are located in Europe,

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<v Speaker 5>many people believe I may say I'm sober incompatible, but

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<v Speaker 5>it's absolutely not enough. So there are models that not

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<v Speaker 5>only we are using an accept that are also very

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<v Speaker 5>very public on the market. Very often will refer to

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<v Speaker 5>four dimensions. Of course, data location is number one. If

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<v Speaker 5>you don't know where your data are, I mean you

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<v Speaker 5>don't know anything. But it's not only that, I mean

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<v Speaker 5>how do you operate? Who is operating the system, who

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<v Speaker 5>is patching, who is creating new versions of whatever the

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<v Speaker 5>feature that becomes available.

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<v Speaker 6>That's the second one.

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<v Speaker 5>The third one is contracts, legal terms, who is in

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<v Speaker 5>charge legally speaking of the activities we talk about, And

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<v Speaker 5>the last one is the technicality itself. Who is really

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<v Speaker 5>mastering the technical details, the underlying stack. Is it something

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<v Speaker 5>that is European, US, China, you know, and I mean

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<v Speaker 5>it's it's known by everybody. Most of the large European

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<v Speaker 5>companies and US companies are using US technologies. So the

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<v Speaker 5>difficulty in sovereignties to scan on a permanent basinis the

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<v Speaker 5>four dimensions, making sure that because you were saying Anna,

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<v Speaker 5>that you know exactly what is exactly the situation on

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<v Speaker 5>your business on those four dimensions.

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<v Speaker 1>Give me an example of how a specific example of

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<v Speaker 1>what difference it would make where your data was being held.

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<v Speaker 1>In otherwords, in what sense our regulatory requirements for example,

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<v Speaker 1>different from one country to another, or from the EU

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<v Speaker 1>to North America, or is there a practical way to

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<v Speaker 1>kind of express those differences.

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<v Speaker 3>Yeah, there are very clear regulations in many of the

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<v Speaker 3>countries regarding what type of data needs to reside inside

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<v Speaker 3>the country, right, so particularly financial data, health data, those

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<v Speaker 3>are really really controlled and they have to follow those

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<v Speaker 3>regulatory requirements. So the way that we approach that in

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<v Speaker 3>our architecture in our platform is to enforce those regulatory

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<v Speaker 3>requirements within the platform so that this is not just

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<v Speaker 3>relied from a contractual standpoint, but that you ensure with

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<v Speaker 3>governance tools and with capabilities that the platform is securing

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<v Speaker 3>that data in compliance with those regulatory aspects. And when

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<v Speaker 3>you think about sovereignty, it has to go beyond just

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<v Speaker 3>the regulatory and compliance requirements. It's really understanding your business requirements.

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<v Speaker 3>What are the applications that are truly mission critical and

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<v Speaker 3>that you need to ensure that have that level of

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<v Speaker 3>control because also controlling everything is not necessarily viable, not

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<v Speaker 3>from a technical standpoint and not from a business case standpoint. Right,

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<v Speaker 3>So that is the I think that is the challenge

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<v Speaker 3>that many companies are going right now, is to have

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<v Speaker 3>the visibility of their application mistake, how that matches the

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<v Speaker 3>business strategy, and then making the decisions on what is

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<v Speaker 3>the level of sovereignty that I need to apply.

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<v Speaker 2>Let's say I'm a naive company.

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<v Speaker 1>I don't pay any attention to this, I have operations

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<v Speaker 1>in any different countries. What's the worst case scenario? What's

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<v Speaker 1>the down what happens if you don't act kind of

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<v Speaker 1>prudently around data sovereignty?

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<v Speaker 3>So I think the first aspect is if something happens

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<v Speaker 3>to your infrastructure that is sitting somewhere that you don't

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<v Speaker 3>have visibility, goes out for some reason a war and

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<v Speaker 3>energy blackout, any other cyber attack in your environment. If

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<v Speaker 3>you don't have a fallback plan, if you don't have

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<v Speaker 3>a way to move that application to operate from another

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<v Speaker 3>place that has the backups the real time data that

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<v Speaker 3>you are accessing to, you pretty much go out of

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<v Speaker 3>out of operations, right. So it's a that's a very

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<v Speaker 3>important question because I think it brings the sovereignty aspect

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<v Speaker 3>to what I believe is the strategic role that it plays.

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<v Speaker 3>It's about resiliency. It's not about necessarily just meeting regulatory requirements.

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<v Speaker 3>And I think you need to do that from a

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<v Speaker 3>risk management standpoint, and I think an insurance company is

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<v Speaker 3>the best position to do that.

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<v Speaker 4>But it's not just regulations.

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<v Speaker 3>It's really making sure that you have continuous operation twenty

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<v Speaker 3>four by seven, which is pretty much what businesses need

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<v Speaker 3>to to achieve currectly.

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<v Speaker 5>In some countries for insurance, for example, but not only

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<v Speaker 5>for insurance. In some countries there are obligations locally, for example,

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<v Speaker 5>to store data in the country. So back to your question,

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<v Speaker 5>there's a limit to how naif you can be if

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<v Speaker 5>you want to develop a business, because that's at the

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<v Speaker 5>heart of getting the authorization to operate and to run

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<v Speaker 5>your business in the countries where you would like to.

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<v Speaker 5>But then once you are over this kind of m

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<v Speaker 5>VP of requirements that are mandatory for you to open

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<v Speaker 5>and operate, then of course, I mean that's a good thing.

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<v Speaker 6>That and what you said is completely completely relevant.

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<v Speaker 1>How does how does one anticipate these issues changing over time?

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<v Speaker 1>In other words, you said that people are going to

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<v Speaker 1>wake up to the importance of data sovereignty during COVID.

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<v Speaker 1>I'm just curious if we fast forward five years, do

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<v Speaker 1>we imagine that the kind of landscape in which companies

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<v Speaker 1>like us, you and I are operating is going to

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<v Speaker 1>get more complex or less complex? What's the what's the

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<v Speaker 1>movement in this?

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<v Speaker 3>I think it's going to become more complex because AI

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<v Speaker 3>is really accelerating all the trends.

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<v Speaker 2>Why I want you to tell can you explain?

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<v Speaker 1>I want you to kind of do a little deep

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<v Speaker 1>dive on Y specifically. Is it about AI that's complicating this?

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<v Speaker 4>That's a very good question.

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<v Speaker 3>AI now moves from you know, actions just being taken

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<v Speaker 3>from you know, somebody operating a system to the technology

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<v Speaker 3>actually making decisions. Right, So you have to have a

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<v Speaker 3>much better visibility of what systems AI is touching, what

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<v Speaker 3>data it is accessing, and where right, So you have

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<v Speaker 3>to have that mapping much more clear because the stakes

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<v Speaker 3>are higher now on how technology is actually operating your business.

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<v Speaker 4>Right.

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<v Speaker 3>So I do think that there is an acceleration because

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<v Speaker 3>of that. The second element AI is going to increase

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<v Speaker 3>the amount of vulnerabilities that are going to be either

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<v Speaker 3>identified or created. So you have to have an ability

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<v Speaker 3>to continuously monitor, monitor, and scan what is happening in

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<v Speaker 3>the cybersecurity landscape so that you can prevent and react

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<v Speaker 3>in a much faster way. So there are more elements

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<v Speaker 3>of disruption that are coming up as a result of

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<v Speaker 3>the acceleration of technology.

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<v Speaker 6>I can give you a concrete example.

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<v Speaker 5>So the way applications work today is pretty much deterministic.

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<v Speaker 6>You have rules, you have data, you have processes.

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<v Speaker 5>Very often embed it into the code, into the business

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<v Speaker 5>logic so that are executed and very often if you

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<v Speaker 5>have the same inputs, you have the same output. And

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<v Speaker 5>so you have I mean application with modules, you have APIs,

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<v Speaker 5>you have data, you have you know beautiful.

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<v Speaker 6>Mobile first front ends. You know all these fancy things

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<v Speaker 6>that we run on the cloud or on PREMIU in whatever.

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<v Speaker 5>So let's project yourself into a couple of years from

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<v Speaker 5>now where the architecture is going to be agentic native

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<v Speaker 5>with concepts such as head less applications. So you will

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<v Speaker 5>interact with kind of prompt inter phase and you will

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<v Speaker 5>start asking as a customer or as an employee or

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<v Speaker 5>as a partner, you will ask, interacting and asking a

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<v Speaker 5>certain number of problems to be solved. And this is

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<v Speaker 5>going to be given through tokens and all these all

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<v Speaker 5>these technologies into an ecosystem of digital agents orchestrated and

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<v Speaker 5>orchestrating activities looking at what is in the in the

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<v Speaker 5>rug in terms of what is the process telling me

0:14:28.040 --> 0:14:30.280
<v Speaker 5>about how do I have to manage that? What kind

0:14:30.320 --> 0:14:32.760
<v Speaker 5>of data do I have in my repository? And you

0:14:33.000 --> 0:14:36.040
<v Speaker 5>enter into something which is going to become much more probabilistic,

0:14:36.960 --> 0:14:39.240
<v Speaker 5>and you have llms there in the meantime in the

0:14:39.280 --> 0:14:44.640
<v Speaker 5>middle trying to get answers, smart answers to queries that

0:14:44.720 --> 0:14:50.080
<v Speaker 5>will come from specialized digital agents. So has nothing to

0:14:50.160 --> 0:14:54.240
<v Speaker 5>do with the way applications run today. And if you

0:14:54.280 --> 0:14:58.760
<v Speaker 5>look at the flow of data today that we know,

0:14:58.880 --> 0:15:01.760
<v Speaker 5>we know where the data located. That was saying, you know,

0:15:02.320 --> 0:15:04.720
<v Speaker 5>a lot of things we know and how the data

0:15:04.800 --> 0:15:06.760
<v Speaker 5>is going to flow in all the directions in this

0:15:06.840 --> 0:15:11.440
<v Speaker 5>Aargentic native architecture. You understand that, as you said that

0:15:11.480 --> 0:15:14.840
<v Speaker 5>this is going to accelerate significantly and the need to

0:15:15.000 --> 0:15:21.000
<v Speaker 5>understand the underlying stack and architecture in the sovereign ecosystem

0:15:21.240 --> 0:15:24.920
<v Speaker 5>is going to be crucial. You know, data can suddenly

0:15:25.000 --> 0:15:28.160
<v Speaker 5>become public public in the way they can be used

0:15:28.200 --> 0:15:31.080
<v Speaker 5>to train models, and a little bit of your IP

0:15:31.200 --> 0:15:34.640
<v Speaker 5>step by steap going to go into those those models

0:15:34.640 --> 0:15:36.720
<v Speaker 5>if they learn. If you are not careful, that's what

0:15:36.840 --> 0:15:38.480
<v Speaker 5>it's going to happen. Of course, there are ways to

0:15:38.520 --> 0:15:41.440
<v Speaker 5>prevent that, but if you're not careful, you can suddenly

0:15:41.480 --> 0:15:44.920
<v Speaker 5>see the world around you becoming more intelligent than you

0:15:45.000 --> 0:15:45.840
<v Speaker 5>on your own business.

0:15:47.240 --> 0:15:50.320
<v Speaker 1>It seems like there's a this is a very crude

0:15:50.320 --> 0:15:53.160
<v Speaker 1>way of putting it, but there's a race going on

0:15:54.040 --> 0:15:56.800
<v Speaker 1>with the technology on running one race and then the

0:15:56.840 --> 0:15:59.640
<v Speaker 1>other race. Is our ability to kind of make sense

0:15:59.640 --> 0:16:03.120
<v Speaker 1>of it, have visibility and integrate the technology into the

0:16:03.120 --> 0:16:05.640
<v Speaker 1>way we do our who's winning that race right now?

0:16:05.720 --> 0:16:07.800
<v Speaker 2>Is it? Is it hard to keep up with the technology.

0:16:08.800 --> 0:16:12.400
<v Speaker 3>That's why I think you need the technology to govern

0:16:12.440 --> 0:16:16.040
<v Speaker 3>the technology right and and to me, that is what

0:16:16.320 --> 0:16:19.840
<v Speaker 3>our proposition with this platform that we launched a few

0:16:19.880 --> 0:16:23.560
<v Speaker 3>weeks ago called Sovereign Core, is to provide that that

0:16:23.680 --> 0:16:27.400
<v Speaker 3>those that tool in and those capabilities to help organizations

0:16:27.800 --> 0:16:31.400
<v Speaker 3>create those capabilities. Because what we learned already is that

0:16:31.560 --> 0:16:34.880
<v Speaker 3>as you have money explained very well, the technology is

0:16:34.960 --> 0:16:41.360
<v Speaker 3>going to accelerate exponentially. How do you map that with

0:16:41.440 --> 0:16:45.440
<v Speaker 3>that same level of speed? Only another technology that is

0:16:45.480 --> 0:16:49.960
<v Speaker 3>going to you know, operate at the same level of acceleration.

0:16:50.520 --> 0:16:52.960
<v Speaker 3>And that is exactly the proposition that we have in

0:16:53.440 --> 0:16:56.560
<v Speaker 3>supporting our clients. So that's the headache that you're trying

0:16:56.560 --> 0:16:56.960
<v Speaker 3>to solve.

0:16:58.120 --> 0:17:01.760
<v Speaker 1>Do I'm assuming you've been in this field of technology

0:17:02.200 --> 0:17:02.880
<v Speaker 1>for how many.

0:17:02.720 --> 0:17:05.199
<v Speaker 6>Years or thirty years?

0:17:06.040 --> 0:17:08.920
<v Speaker 1>Is there any I'm curious to compare the moment we're

0:17:08.920 --> 0:17:13.280
<v Speaker 1>into any previous moments. So you've now lived through several

0:17:14.480 --> 0:17:18.160
<v Speaker 1>technological upheavals. How does this one compare to the ones

0:17:18.200 --> 0:17:19.080
<v Speaker 1>earlier in your career?

0:17:19.440 --> 0:17:22.919
<v Speaker 5>For me, this one is very clearly the one that

0:17:22.960 --> 0:17:30.080
<v Speaker 5>has the highest potential and in terms of speed, there's

0:17:30.119 --> 0:17:34.000
<v Speaker 5>no precedent. Everything we've done in the past where we've

0:17:34.040 --> 0:17:37.879
<v Speaker 5>been trying to modernize. Let's take a complete, complete exam

0:17:37.920 --> 0:17:41.520
<v Speaker 5>modernizing business applications. We had this discussion a couple of

0:17:41.840 --> 0:17:44.960
<v Speaker 5>months ago. So like all the companies in the world,

0:17:45.160 --> 0:17:47.879
<v Speaker 5>we have legacy applications. All all the companies have legacy

0:17:47.920 --> 0:17:51.080
<v Speaker 5>applications that have been written, I don't know, thirty fifty

0:17:51.160 --> 0:17:56.880
<v Speaker 5>years ago, and the journey to modernize those applications has

0:17:56.920 --> 0:18:00.439
<v Speaker 5>been the last let's say, the last fifteen years, something

0:18:00.520 --> 0:18:03.600
<v Speaker 5>like very often a five years ticket every time you

0:18:03.640 --> 0:18:08.080
<v Speaker 5>want it to work to modernize something, including migration and decommissioning.

0:18:09.680 --> 0:18:12.360
<v Speaker 5>And every time we even a year ago, every time

0:18:12.359 --> 0:18:14.840
<v Speaker 5>we were thinking about how there's technology out there we

0:18:14.880 --> 0:18:18.560
<v Speaker 5>can go much much, much faster, we've always been blocked

0:18:19.160 --> 0:18:22.480
<v Speaker 5>and then we always came back to that unit of

0:18:23.960 --> 0:18:25.280
<v Speaker 5>performance of the five years.

0:18:26.480 --> 0:18:27.200
<v Speaker 6>And since this.

0:18:27.280 --> 0:18:33.840
<v Speaker 5>Year, things are become potentially feasible because that's the Augentic revolution,

0:18:34.240 --> 0:18:37.880
<v Speaker 5>because then you can specialize agents like people in a team,

0:18:38.680 --> 0:18:41.880
<v Speaker 5>to split the process into subtask and everybody is going

0:18:41.960 --> 0:18:44.400
<v Speaker 5>to be very smart and intelligent in solving a part

0:18:44.440 --> 0:18:46.760
<v Speaker 5>of the problem. And then if you are good enough

0:18:46.800 --> 0:18:50.040
<v Speaker 5>to orchestrate that towards an outcome, which could be an

0:18:50.040 --> 0:18:55.280
<v Speaker 5>application modernization ABC whatsoever. Potentially I'm saying potentially, but this

0:18:55.440 --> 0:18:58.600
<v Speaker 5>is now technologically we see that it can work. You

0:18:58.640 --> 0:19:00.840
<v Speaker 5>can do that, not any more five years, but maybe

0:19:00.840 --> 0:19:03.000
<v Speaker 5>I don't know, a year and a half, two years,

0:19:03.720 --> 0:19:05.439
<v Speaker 5>maybe a little bit less, why not, I don't know.

0:19:05.480 --> 0:19:08.480
<v Speaker 5>But you see, the difference is simply huge. I've never

0:19:08.480 --> 0:19:09.240
<v Speaker 5>seen that before.

0:19:09.680 --> 0:19:11.480
<v Speaker 4>Yeah, yeah, I agree with that.

0:19:11.520 --> 0:19:15.200
<v Speaker 3>I think the compression that you're seeing in project delivery,

0:19:15.480 --> 0:19:20.280
<v Speaker 3>in new products that we are releasing, updating versions of products,

0:19:20.520 --> 0:19:24.320
<v Speaker 3>it's something that is absolutely unprecedented. Yeah, so the base

0:19:24.400 --> 0:19:28.400
<v Speaker 3>of innovation is happening very fast. And if you think

0:19:28.440 --> 0:19:32.040
<v Speaker 3>that AI has already created a tremendous impact, let's wait

0:19:32.080 --> 0:19:35.919
<v Speaker 3>for quantum, right, which is going to even take this

0:19:36.000 --> 0:19:36.800
<v Speaker 3>to another level.

0:19:37.320 --> 0:19:39.040
<v Speaker 6>And the mixed the combination.

0:19:38.880 --> 0:19:39.800
<v Speaker 4>Prombination of both.

0:19:40.000 --> 0:19:41.640
<v Speaker 2>Yes, it's a very.

0:19:41.480 --> 0:19:45.199
<v Speaker 1>Interesting contradiction at the core of all this, which is

0:19:45.240 --> 0:19:51.719
<v Speaker 1>that intuitively, we know that innovation thrives on openness into connectedness,

0:19:52.000 --> 0:19:55.679
<v Speaker 1>you know, no border or whatever. But so DATUS already

0:19:55.680 --> 0:20:01.240
<v Speaker 1>makes us think very specifically and often, I would imagine,

0:20:01.280 --> 0:20:03.800
<v Speaker 1>painfully about the reality of orders.

0:20:04.200 --> 0:20:06.240
<v Speaker 2>How do you manage that contradiction?

0:20:08.000 --> 0:20:10.120
<v Speaker 3>I think that is really the challenge that we are

0:20:10.160 --> 0:20:12.760
<v Speaker 3>all facing right now, right, I don't think we have

0:20:13.560 --> 0:20:18.480
<v Speaker 3>one hundred percent clear answer yet, there are certain elements

0:20:18.520 --> 0:20:24.200
<v Speaker 3>of this stack that clearly, I mean, trying to reinvent

0:20:24.880 --> 0:20:27.840
<v Speaker 3>is actually going to be a reinvention.

0:20:27.440 --> 0:20:28.000
<v Speaker 4>Of the wheel.

0:20:28.119 --> 0:20:31.480
<v Speaker 3>Like I mean, I'm not going to develop chips from

0:20:31.480 --> 0:20:35.119
<v Speaker 3>the scratch from scratch, for example, infrastructure from scratch. But

0:20:35.200 --> 0:20:37.240
<v Speaker 3>there are other elements of the stack that I can

0:20:37.280 --> 0:20:38.560
<v Speaker 3>get much better control.

0:20:38.880 --> 0:20:39.080
<v Speaker 1>Right.

0:20:39.119 --> 0:20:41.679
<v Speaker 3>So, for example, to the point that you've anni made before,

0:20:41.720 --> 0:20:46.200
<v Speaker 3>where my data is sitting, what is the orchestration layer

0:20:46.240 --> 0:20:49.199
<v Speaker 3>that I can implement so that I can bring the

0:20:49.320 --> 0:20:52.800
<v Speaker 3>right player at the right time. So look at the

0:20:52.880 --> 0:20:55.600
<v Speaker 3>stack of technology that you are implementing and see what

0:20:55.640 --> 0:20:59.520
<v Speaker 3>are the elements where number one, it's feasible to achieve

0:20:59.560 --> 0:21:04.240
<v Speaker 3>control and number two, I know that it's it's something

0:21:04.240 --> 0:21:07.080
<v Speaker 3>that I actually have to do to make my business resilient.

0:21:07.600 --> 0:21:08.960
<v Speaker 4>And focus on those.

0:21:08.880 --> 0:21:12.080
<v Speaker 3>Right, because if you try to address the entire stech,

0:21:12.280 --> 0:21:15.080
<v Speaker 3>or if you try to create a model that you

0:21:15.119 --> 0:21:20.760
<v Speaker 3>basically build a fortress, that's not going to be even

0:21:20.800 --> 0:21:23.239
<v Speaker 3>feasible for you to achieve. Right, I normally say that

0:21:23.320 --> 0:21:27.600
<v Speaker 3>sovereignty is not about building walls it's about building bridges, right,

0:21:27.640 --> 0:21:30.160
<v Speaker 3>It's how you really created those connections.

0:21:30.880 --> 0:21:33.480
<v Speaker 6>I like, I like the way you phrase it. That's

0:21:33.520 --> 0:21:33.920
<v Speaker 6>exactly that.

0:21:34.040 --> 0:21:40.439
<v Speaker 5>Because at the end, if you put sovereignty as an

0:21:40.520 --> 0:21:45.560
<v Speaker 5>architecture requirement when you do design, I don't say it's

0:21:45.560 --> 0:21:49.440
<v Speaker 5>the it's it's it's the key to this very difficult

0:21:49.720 --> 0:21:55.080
<v Speaker 5>you know, paradying, but at least it's making choices easier. So,

0:21:55.200 --> 0:21:59.800
<v Speaker 5>for example, if you if you don't put sovereignty as

0:21:59.800 --> 0:22:02.760
<v Speaker 5>a business requirements and you want to develop your business

0:22:02.840 --> 0:22:05.919
<v Speaker 5>in the cloud, what you are going to do is

0:22:06.000 --> 0:22:09.280
<v Speaker 5>probably look at the available features that features from the

0:22:09.320 --> 0:22:12.679
<v Speaker 5>cloud provider. You're going to use those features full speed

0:22:12.720 --> 0:22:15.200
<v Speaker 5>to go as fast as possible, as efficient as possible,

0:22:15.280 --> 0:22:16.680
<v Speaker 5>and get access to all the stack.

0:22:16.480 --> 0:22:19.360
<v Speaker 6>Innovation and everything else. And the day you have a.

0:22:19.280 --> 0:22:24.120
<v Speaker 5>Problem, you cannot switch, or it will take you five

0:22:24.200 --> 0:22:27.760
<v Speaker 5>years and five hundred million to switch. If you take

0:22:28.080 --> 0:22:34.800
<v Speaker 5>the sovereignty as a requirement by design. When you want

0:22:34.840 --> 0:22:39.680
<v Speaker 5>to start the configuration of your stack, you ask yourself,

0:22:40.280 --> 0:22:42.800
<v Speaker 5>what do I have to concretely put here as a

0:22:42.840 --> 0:22:46.000
<v Speaker 5>configuration item? If I want to be, for example, multi

0:22:46.040 --> 0:22:50.800
<v Speaker 5>cloud compatible or multi cloud and on prem compatible, what

0:22:50.960 --> 0:22:54.280
<v Speaker 5>kind of additional technologies maybe I have to use in

0:22:54.359 --> 0:22:58.320
<v Speaker 5>order to be able to I mean, do some portability

0:22:58.880 --> 0:23:01.119
<v Speaker 5>of some workload from one platform to another.

0:23:01.520 --> 0:23:03.280
<v Speaker 6>Not because I want to do that every day, because

0:23:03.320 --> 0:23:04.000
<v Speaker 6>it makes no sense.

0:23:04.000 --> 0:23:06.600
<v Speaker 5>But if if tomorrow I have a problem, I want

0:23:06.600 --> 0:23:09.520
<v Speaker 5>to be sure that by design I can I know what.

0:23:09.440 --> 0:23:11.280
<v Speaker 6>The process I'm going to use, what's the process is

0:23:11.359 --> 0:23:13.560
<v Speaker 6>going to use to do that portability. So these are

0:23:13.640 --> 0:23:18.680
<v Speaker 6>elements that Again, if you don't design your architecture using

0:23:18.720 --> 0:23:22.520
<v Speaker 6>those those elements, you wake up in the morning you

0:23:22.600 --> 0:23:25.240
<v Speaker 6>have a problem and you have no solution except spending

0:23:25.240 --> 0:23:26.120
<v Speaker 6>alpha billion euro.

0:23:27.400 --> 0:23:30.560
<v Speaker 5>So that's that's that's the first point I wanted to make.

0:23:30.600 --> 0:23:35.040
<v Speaker 5>Now the second point is if you want to turn

0:23:35.920 --> 0:23:39.440
<v Speaker 5>technology into a business outcome, at the end, you need

0:23:39.480 --> 0:23:45.320
<v Speaker 5>to be very precisely activating a technology you know. So

0:23:45.359 --> 0:23:48.280
<v Speaker 5>at the end you have to make a choice, yes

0:23:48.320 --> 0:23:50.880
<v Speaker 5>I activate this feature you know, and yes I use

0:23:50.960 --> 0:23:53.560
<v Speaker 5>this tech provider this solution.

0:23:54.119 --> 0:23:55.280
<v Speaker 6>At the end, you don't escape.

0:23:57.000 --> 0:24:00.240
<v Speaker 5>And what it also allows to do is make making

0:24:00.240 --> 0:24:05.560
<v Speaker 5>sure that in this architecture based design you also make

0:24:05.640 --> 0:24:08.359
<v Speaker 5>explicit what you buy.

0:24:08.960 --> 0:24:12.080
<v Speaker 6>From a tech provider and what you do yourself.

0:24:13.359 --> 0:24:17.000
<v Speaker 5>And also what you do yourself for how long because

0:24:17.040 --> 0:24:19.040
<v Speaker 5>you can try a certain number of things because you're

0:24:19.119 --> 0:24:23.120
<v Speaker 5>not convinced that a certain number of technology providers out

0:24:23.119 --> 0:24:29.960
<v Speaker 5>there are sufficiently cross you know, cross cloud platforms, and

0:24:29.960 --> 0:24:32.400
<v Speaker 5>and you don't want to end up into a looking situation.

0:24:32.760 --> 0:24:36.440
<v Speaker 5>So you can say, I don't feel that it's mature enough,

0:24:36.520 --> 0:24:39.560
<v Speaker 5>so I start doing it. But it's not because you

0:24:39.600 --> 0:24:42.359
<v Speaker 5>start doing it yourself that you have to be stuck

0:24:42.440 --> 0:24:46.080
<v Speaker 5>in that strategy of doing it yourself for fifteen years. Again,

0:24:46.160 --> 0:24:48.800
<v Speaker 5>even if you start doing it yourself, in the design

0:24:49.440 --> 0:24:52.880
<v Speaker 5>of the way you do it yourself, you plan an

0:24:52.880 --> 0:24:55.280
<v Speaker 5>exit door to be able to move into a solution

0:24:55.359 --> 0:24:58.480
<v Speaker 5>from a tech provider when the strategy is mature enough.

0:24:59.160 --> 0:25:02.159
<v Speaker 5>So that's the difficult guilty and that this is every

0:25:02.320 --> 0:25:06.919
<v Speaker 5>day discussions with discipline. What I always recommend the teams

0:25:07.000 --> 0:25:11.560
<v Speaker 5>is make the things explicit. There's no right or wrong

0:25:11.640 --> 0:25:15.280
<v Speaker 5>answer in a limited timeframe. There is something that is

0:25:15.440 --> 0:25:18.679
<v Speaker 5>best today for the company and may not be the

0:25:18.720 --> 0:25:19.400
<v Speaker 5>case tomorrow.

0:25:19.440 --> 0:25:20.680
<v Speaker 6>So let's make it explicit.

0:25:21.240 --> 0:25:24.560
<v Speaker 5>And don't miss that that that I mean that extra work,

0:25:24.560 --> 0:25:26.600
<v Speaker 5>because it's extra work. This is not something that is

0:25:26.600 --> 0:25:30.040
<v Speaker 5>coming really not falling from the sky. This is extra work,

0:25:30.280 --> 0:25:33.560
<v Speaker 5>but it's worse doing this this job to be sure

0:25:33.560 --> 0:25:37.600
<v Speaker 5>that at least we are always in this equilib difficult

0:25:37.600 --> 0:25:44.160
<v Speaker 5>equilibrium between accessing technologies and being sovereign compatible by design, just.

0:25:44.119 --> 0:25:47.080
<v Speaker 3>To stress you saw that Jovan use the word by

0:25:47.160 --> 0:25:50.760
<v Speaker 3>design all the time, right, because I think that intentionality

0:25:50.920 --> 0:25:53.439
<v Speaker 3>is probably what's different from what we saw in the

0:25:53.480 --> 0:25:56.880
<v Speaker 3>past on how companies were adopting innovation. It was very

0:25:56.960 --> 0:26:02.080
<v Speaker 3>much driven by convenience and speed, and now you have

0:26:02.160 --> 0:26:08.600
<v Speaker 3>to have convenience, speed and intentionality and understand that you know,

0:26:08.680 --> 0:26:11.919
<v Speaker 3>you have to have visibility on the decisions you're making,

0:26:12.000 --> 0:26:14.720
<v Speaker 3>and you have to keep your choices more open.

0:26:14.840 --> 0:26:17.560
<v Speaker 1>It was curious when you describe the kind of challenges

0:26:17.600 --> 0:26:21.000
<v Speaker 1>that come along with data sovereignty. This is also the

0:26:21.040 --> 0:26:24.800
<v Speaker 1>way that two of you work together. So I can

0:26:24.880 --> 0:26:30.720
<v Speaker 1>image companies Insurance have been working with IBM. I imagine

0:26:30.800 --> 0:26:33.000
<v Speaker 1>for as long as they have been insurance and as

0:26:33.000 --> 0:26:35.360
<v Speaker 1>long as they've been IBM. But I mean, in this

0:26:35.400 --> 0:26:38.880
<v Speaker 1>particular iteration, are we altering the nature the relationship.

0:26:39.880 --> 0:26:44.360
<v Speaker 3>Before I go specifically to the partnership with as, I'm

0:26:44.440 --> 0:26:46.399
<v Speaker 3>going to give an example of what you're doing with

0:26:46.720 --> 0:26:52.400
<v Speaker 3>another company which I think illustrates very well the intention,

0:26:52.560 --> 0:26:54.040
<v Speaker 3>the objective, and the challenge.

0:26:54.119 --> 0:26:54.280
<v Speaker 6>Right.

0:26:54.359 --> 0:26:58.040
<v Speaker 3>So we have a partnership with Loreale as well, right,

0:26:58.080 --> 0:27:00.639
<v Speaker 3>which is the cosmetics company. And they were like, okay,

0:27:01.480 --> 0:27:05.359
<v Speaker 3>foundational models, large language models are super powerful, Right, But

0:27:05.480 --> 0:27:09.320
<v Speaker 3>I invested one hundred years in my company to build

0:27:09.440 --> 0:27:12.640
<v Speaker 3>knowledge about building formula for cosmetics.

0:27:12.880 --> 0:27:13.080
<v Speaker 6>Right.

0:27:13.400 --> 0:27:17.359
<v Speaker 3>I don't want to give that expertise, that knowledge away,

0:27:18.000 --> 0:27:21.960
<v Speaker 3>So I want to train my own my own foundational model.

0:27:22.480 --> 0:27:25.480
<v Speaker 3>They are not going to do the entire stack of

0:27:25.920 --> 0:27:29.800
<v Speaker 3>training by themselves, so they partner with us. We provide research,

0:27:29.920 --> 0:27:33.119
<v Speaker 3>We provide tooling that allows them to bring their data

0:27:33.200 --> 0:27:36.479
<v Speaker 3>and create their own model based on an open source,

0:27:36.760 --> 0:27:40.320
<v Speaker 3>pre trained a model. So these are the types of

0:27:41.119 --> 0:27:43.800
<v Speaker 3>you know, challenges that companies are facing. And to my

0:27:43.920 --> 0:27:47.920
<v Speaker 3>point prior, what is really critical to the point that

0:27:48.000 --> 0:27:50.600
<v Speaker 3>you don't want, you know, a third party to have

0:27:50.720 --> 0:27:55.520
<v Speaker 3>visibility or access to And when it comes to the

0:27:55.680 --> 0:27:59.080
<v Speaker 3>to the relationship with ACTS and many other of our clients,

0:27:59.400 --> 0:28:02.240
<v Speaker 3>I think number one is transparency.

0:28:02.359 --> 0:28:02.560
<v Speaker 4>Right.

0:28:02.640 --> 0:28:07.159
<v Speaker 3>They totally understand how our technology operates. What are the

0:28:07.520 --> 0:28:10.560
<v Speaker 3>you know, what are the elements that are part of

0:28:10.600 --> 0:28:13.399
<v Speaker 3>our architecture that are going to connect with their systems,

0:28:14.080 --> 0:28:18.800
<v Speaker 3>and trust becomes really a fundamental element. Jovanni said, there

0:28:18.840 --> 0:28:20.640
<v Speaker 3>are things that I'm going to build, there are things

0:28:20.640 --> 0:28:22.920
<v Speaker 3>that I'm going to buy, So who am I going

0:28:22.960 --> 0:28:27.680
<v Speaker 3>to buy from? Does this company really understand sovereignty by design?

0:28:27.760 --> 0:28:30.840
<v Speaker 3>It's part of the way that the architecture their solutions.

0:28:31.080 --> 0:28:34.000
<v Speaker 3>I think those are the elements and I think that's

0:28:34.040 --> 0:28:36.800
<v Speaker 3>why this discussion is so important right now because it

0:28:36.960 --> 0:28:41.320
<v Speaker 3>also levels the play field for us right we at IBM,

0:28:41.360 --> 0:28:44.640
<v Speaker 3>we have always been a company focused on technologies for

0:28:44.760 --> 0:28:50.720
<v Speaker 3>the corporate world to really implement mission critical workloads. So

0:28:50.760 --> 0:28:53.320
<v Speaker 3>I think now people understand why we approach things the

0:28:53.320 --> 0:28:56.640
<v Speaker 3>way we approach and why hybrid cloud, you know, giving

0:28:56.680 --> 0:29:01.479
<v Speaker 3>companies the ability to access multiple providers either on prem

0:29:01.800 --> 0:29:05.280
<v Speaker 3>or in the public domain. While we have approached our

0:29:05.320 --> 0:29:09.719
<v Speaker 3>technologies in that in that characterization is because we are

0:29:09.760 --> 0:29:13.280
<v Speaker 3>starting to see the challenges of not having a multi

0:29:13.320 --> 0:29:17.400
<v Speaker 3>cloud hybrid cloud strategy can actually apply to your business.

0:29:17.880 --> 0:29:20.840
<v Speaker 4>So I think that this is really what changes for

0:29:20.960 --> 0:29:21.280
<v Speaker 4>us now.

0:29:21.560 --> 0:29:24.680
<v Speaker 3>We have we are much more conscious on the risks

0:29:24.720 --> 0:29:27.240
<v Speaker 3>and those have to be considered when you are making

0:29:27.360 --> 0:29:28.440
<v Speaker 3>technical decisions.

0:29:30.720 --> 0:29:33.480
<v Speaker 6>Yeah, I think in contact. Remre with with what you said.

0:29:33.720 --> 0:29:37.040
<v Speaker 5>That's that's that's at the heart of the relationship between

0:29:37.480 --> 0:29:42.680
<v Speaker 5>a company like accesle and and a strategic partner technology partner.

0:29:43.720 --> 0:29:48.160
<v Speaker 5>If if that understanding is not there, there is no

0:29:48.280 --> 0:29:50.640
<v Speaker 5>way we are going to rely on that strategic partner

0:29:50.720 --> 0:29:55.040
<v Speaker 5>to build whatever future strategic orientation.

0:29:56.240 --> 0:29:57.840
<v Speaker 6>And and and it's.

0:29:57.640 --> 0:30:01.440
<v Speaker 5>True that today we have a large variet of technologies

0:30:01.520 --> 0:30:06.200
<v Speaker 5>running in production as an insurance company, like banks, we

0:30:06.240 --> 0:30:08.240
<v Speaker 5>have mainframes running.

0:30:08.600 --> 0:30:10.680
<v Speaker 6>A lot of a lot of business.

0:30:10.840 --> 0:30:13.840
<v Speaker 5>But at the same time we are full speeding the

0:30:14.000 --> 0:30:18.200
<v Speaker 5>AI transformation, we have finished the cloud migration, and being

0:30:18.720 --> 0:30:22.520
<v Speaker 5>able to understand the full stuck again, that's what is

0:30:22.560 --> 0:30:23.560
<v Speaker 5>absolutely critical.

0:30:24.720 --> 0:30:29.040
<v Speaker 1>I had asked you earlier about was there anything particular

0:30:29.120 --> 0:30:33.080
<v Speaker 1>about the insurance business when it came to this question.

0:30:33.240 --> 0:30:35.480
<v Speaker 1>I want to come back to that a little bit,

0:30:35.560 --> 0:30:39.560
<v Speaker 1>because you know, you've both of you have talked about

0:30:39.560 --> 0:30:45.760
<v Speaker 1>trust and transparency. Our trust and transparency pretty core considerations

0:30:45.760 --> 0:30:49.480
<v Speaker 1>for ensure, I mean, much more so than someone that's making,

0:30:49.720 --> 0:30:50.600
<v Speaker 1>you know, handkerchiefs.

0:30:51.840 --> 0:30:54.680
<v Speaker 2>Talk a little bit about Can you revisit that question?

0:30:55.240 --> 0:30:57.160
<v Speaker 5>Yeah, of course, I think you have a very good point.

0:30:58.440 --> 0:31:00.520
<v Speaker 5>If I look at the notion of trust. As you said,

0:31:00.680 --> 0:31:05.360
<v Speaker 5>insurance is about trust the noble purpose of an insurance company.

0:31:05.400 --> 0:31:07.520
<v Speaker 6>That's what I repeat every time I have the opportunity.

0:31:07.720 --> 0:31:09.680
<v Speaker 5>You know, I'm so happy every morning when I wake

0:31:09.760 --> 0:31:13.400
<v Speaker 5>up because I know what I'm waking up acces is

0:31:13.440 --> 0:31:22.160
<v Speaker 5>there to help families, companies, individuals when they face real difficulties.

0:31:22.480 --> 0:31:24.520
<v Speaker 5>You know why you wake up every morning. You know

0:31:24.560 --> 0:31:28.640
<v Speaker 5>what is why it's difficult. And this implies, as you said,

0:31:28.720 --> 0:31:31.960
<v Speaker 5>the notion of trust. So of course for us, what

0:31:32.040 --> 0:31:35.200
<v Speaker 5>it means. It means one, we need to make sure

0:31:35.400 --> 0:31:38.160
<v Speaker 5>you were talking about data healthcare data and.

0:31:38.160 --> 0:31:39.320
<v Speaker 6>Your initial intervention.

0:31:39.880 --> 0:31:43.280
<v Speaker 5>We need to make sure indeed we know perfectly exactly

0:31:43.800 --> 0:31:47.760
<v Speaker 5>where our data are stored and what kind of data

0:31:47.760 --> 0:31:51.120
<v Speaker 5>we talk about where is it sensitive data health data,

0:31:51.160 --> 0:31:54.200
<v Speaker 5>because we need to overprotect that in order to make

0:31:54.240 --> 0:31:57.960
<v Speaker 5>sure that data that we have for our customers are

0:31:58.000 --> 0:31:59.959
<v Speaker 5>not going to be made public. You know, that's how

0:32:00.040 --> 0:32:02.920
<v Speaker 5>our duty to do that. It's again a notion of trust.

0:32:03.520 --> 0:32:06.760
<v Speaker 5>Our customers trust that we do that. Insurance companies are

0:32:07.080 --> 0:32:10.600
<v Speaker 5>long term companies, and if you don't have trust anymore,

0:32:10.760 --> 0:32:12.480
<v Speaker 5>I mean we're simply out of business.

0:32:12.840 --> 0:32:14.520
<v Speaker 6>So data is an important topic.

0:32:14.960 --> 0:32:19.040
<v Speaker 5>But at the same time we talked about cyber You know,

0:32:19.120 --> 0:32:25.040
<v Speaker 5>we have a very very strong cyber team and cyber

0:32:25.120 --> 0:32:30.000
<v Speaker 5>security practice that we use both of course to protect

0:32:30.360 --> 0:32:32.520
<v Speaker 5>AXA like many organisms. I mean we all do that,

0:32:32.600 --> 0:32:37.800
<v Speaker 5>of course, but also to help our customers protect themselves.

0:32:38.120 --> 0:32:42.800
<v Speaker 5>And we have also used our skills to develop insurance

0:32:42.840 --> 0:32:47.800
<v Speaker 5>products for companies to protect them against cyber risks. So

0:32:47.920 --> 0:32:50.600
<v Speaker 5>that's also our duty to say, not only we develop

0:32:50.640 --> 0:32:53.800
<v Speaker 5>those skills, but we also give that skill back via

0:32:54.200 --> 0:32:56.280
<v Speaker 5>an insurance product to our customers because we.

0:32:56.280 --> 0:32:57.640
<v Speaker 6>Want to help them.

0:32:58.160 --> 0:33:01.960
<v Speaker 5>And then, of course back to the notion of trust itself,

0:33:02.000 --> 0:33:04.640
<v Speaker 5>if those elements are there at the end, what we

0:33:04.720 --> 0:33:07.040
<v Speaker 5>believe as an insurance company, and I agree with you

0:33:07.160 --> 0:33:10.880
<v Speaker 5>this is valid for the insurance sector in general, is

0:33:10.920 --> 0:33:15.600
<v Speaker 5>that we we if we continue to demonstrate that we

0:33:15.680 --> 0:33:22.640
<v Speaker 5>do that very seriously, our customers continue to have a

0:33:22.720 --> 0:33:26.080
<v Speaker 5>lot of trust in us, and probably with the air revolution,

0:33:26.960 --> 0:33:28.320
<v Speaker 5>the ones who will be able to.

0:33:28.320 --> 0:33:31.160
<v Speaker 6>Be better, if I can use that word.

0:33:31.240 --> 0:33:33.280
<v Speaker 5>Will be the ones who will be able to continuously

0:33:33.440 --> 0:33:37.920
<v Speaker 5>demonstrate that can they always deserve the trust that they

0:33:37.960 --> 0:33:41.440
<v Speaker 5>received from from from their customers. So yes, of course

0:33:41.560 --> 0:33:44.320
<v Speaker 5>this is specific I mean the specific to the insurance

0:33:44.320 --> 0:33:48.360
<v Speaker 5>sector probably thinks also such a you know, pharmaceutical companies,

0:33:48.360 --> 0:33:52.920
<v Speaker 5>you know things activities where it's very very sensitive.

0:33:53.920 --> 0:33:55.080
<v Speaker 6>Yeah, that's clear.

0:33:55.920 --> 0:33:57.720
<v Speaker 1>Let me ask a question the other way, and maybe

0:33:57.760 --> 0:34:03.480
<v Speaker 1>Honor you can jump in here. These considerations might differ

0:34:03.520 --> 0:34:06.320
<v Speaker 1>from industry to industry, but can you what about from

0:34:06.480 --> 0:34:10.240
<v Speaker 1>big to small? Are is this a more pressing issue

0:34:10.239 --> 0:34:13.720
<v Speaker 1>for a multinational than it is for a startup?

0:34:15.760 --> 0:34:18.319
<v Speaker 3>I think that this is this this applies to all

0:34:18.440 --> 0:34:21.800
<v Speaker 3>all the companies, right, especially because they startups from today

0:34:22.080 --> 0:34:24.800
<v Speaker 3>are not like the startups from the past. Right, everybody

0:34:24.880 --> 0:34:28.399
<v Speaker 3>is scaling so fast, right, You're you're seeing companies going

0:34:28.440 --> 0:34:31.680
<v Speaker 3>from zero to billion in like months in the current

0:34:32.080 --> 0:34:35.720
<v Speaker 3>in the current world, all these startup startups in general,

0:34:35.760 --> 0:34:40.319
<v Speaker 3>they operate in a global in a global footprint. So

0:34:40.600 --> 0:34:43.680
<v Speaker 3>if I am a startup going into the let's say

0:34:43.719 --> 0:34:48.080
<v Speaker 3>the healthcare, right industry, I'll need to follow the regulations,

0:34:48.120 --> 0:34:49.960
<v Speaker 3>even if I'm a very small startup.

0:34:50.080 --> 0:34:50.279
<v Speaker 6>Right.

0:34:50.320 --> 0:34:54.120
<v Speaker 3>So I do think that probably what is happening now

0:34:54.200 --> 0:34:59.719
<v Speaker 3>is that this applies to different sizes, different industries, probably

0:35:00.400 --> 0:35:03.600
<v Speaker 3>some more regulated than others. And going back to the

0:35:03.600 --> 0:35:06.960
<v Speaker 3>point of Giovanni on insurance. I think insurance is probably

0:35:07.000 --> 0:35:11.920
<v Speaker 3>the industry where this is much more visible, because insurance

0:35:12.000 --> 0:35:15.200
<v Speaker 3>is about pricing risk, right, and how do you price

0:35:15.320 --> 0:35:19.520
<v Speaker 3>risk based on knowledge, based on probabilities? And that's all data, right,

0:35:19.560 --> 0:35:24.240
<v Speaker 3>So data is their product, I would say. But every

0:35:24.280 --> 0:35:27.400
<v Speaker 3>company now will have to be watching those aspects because

0:35:27.440 --> 0:35:30.640
<v Speaker 3>at day scale, even if they are small, they'll need

0:35:30.680 --> 0:35:33.279
<v Speaker 3>to be meeting those requirements.

0:35:33.960 --> 0:35:36.400
<v Speaker 1>If you were to chat with a founder who is

0:35:36.480 --> 0:35:40.240
<v Speaker 1>just starting out, came to you and said, what should

0:35:40.239 --> 0:35:42.879
<v Speaker 1>I be doing about data sovereignty, what should I get

0:35:42.960 --> 0:35:43.719
<v Speaker 1>right on day one?

0:35:44.160 --> 0:35:45.160
<v Speaker 2>What would your advice be?

0:35:45.600 --> 0:35:48.400
<v Speaker 3>I think now it's much easier because when you're starting

0:35:48.400 --> 0:35:52.479
<v Speaker 3>from scratch, you can really design your solutions and your

0:35:52.560 --> 0:35:57.160
<v Speaker 3>applications already with all that in your mind. Right, So

0:35:57.320 --> 0:36:00.400
<v Speaker 3>all the points that Jovanni made before. By design, this

0:36:00.560 --> 0:36:03.719
<v Speaker 3>is how you're going to design up front. Understand what

0:36:03.960 --> 0:36:07.960
<v Speaker 3>industry are operating in. Understand what are the implications of

0:36:08.000 --> 0:36:12.440
<v Speaker 3>the data that you're manipulating, Map the risk and the

0:36:12.480 --> 0:36:16.120
<v Speaker 3>critical mission applications that you're going to develop, make sure

0:36:16.160 --> 0:36:20.360
<v Speaker 3>that those are really like sovereign to the core, and

0:36:20.880 --> 0:36:22.520
<v Speaker 3>you know, start the execution.

0:36:23.719 --> 0:36:25.360
<v Speaker 5>We have not been talking a lot about that. But

0:36:25.400 --> 0:36:29.759
<v Speaker 5>if I look at Europe now, for example, encryption is

0:36:29.840 --> 0:36:34.800
<v Speaker 5>very critical when you talk sovereignty. Everything you said is

0:36:34.840 --> 0:36:39.040
<v Speaker 5>absolutely correct. But that's an advice I would give is

0:36:39.160 --> 0:36:42.680
<v Speaker 5>make sure, for example that the management of the keys

0:36:43.600 --> 0:36:46.640
<v Speaker 5>is yours, is yours, you know, and do that from

0:36:46.680 --> 0:36:51.560
<v Speaker 5>day one. Don't do that because when you do encryption, yeah,

0:36:51.719 --> 0:36:54.040
<v Speaker 5>very often, That's what I was saying earlier. So you

0:36:54.080 --> 0:36:58.040
<v Speaker 5>have native services, for example, coming from the cloud providers,

0:36:58.080 --> 0:37:03.200
<v Speaker 5>and you can encrypt you using donative services and distore

0:37:03.280 --> 0:37:05.520
<v Speaker 5>the keys of course that they've been used to do

0:37:05.600 --> 0:37:10.319
<v Speaker 5>this encryption, and it's very comfortable. You can go very

0:37:11.480 --> 0:37:15.839
<v Speaker 5>you can be very fast, but you lose control mm hm.

0:37:16.440 --> 0:37:19.080
<v Speaker 5>And so that's that's a very simple trick that in

0:37:19.160 --> 0:37:23.240
<v Speaker 5>the design very often now comes on a regular business

0:37:23.239 --> 0:37:27.040
<v Speaker 5>to pay attention. Of course, you can use the services,

0:37:27.160 --> 0:37:31.440
<v Speaker 5>but again storing the keys, the keys are yours, so

0:37:31.480 --> 0:37:35.360
<v Speaker 5>then nobody can access your data.

0:37:35.480 --> 0:37:38.640
<v Speaker 1>This is a really interesting theme that I'd love to

0:37:38.680 --> 0:37:41.680
<v Speaker 1>sort of end on, which is it seemed like there

0:37:41.719 --> 0:37:44.960
<v Speaker 1>was a moment in the evolution of technology where the

0:37:44.960 --> 0:37:47.799
<v Speaker 1>trend was in the other direction that I was, you

0:37:47.840 --> 0:37:49.759
<v Speaker 1>want to do outsource as much as you could and

0:37:49.840 --> 0:37:52.719
<v Speaker 1>just focus on a few things. But now you're talking

0:37:52.760 --> 0:37:54.600
<v Speaker 1>about the importance of taking back control.

0:37:54.719 --> 0:37:56.640
<v Speaker 2>Is that? Am I right?

0:37:56.800 --> 0:37:59.799
<v Speaker 1>Is this a shift across a number of different dimensions

0:38:00.040 --> 0:38:01.439
<v Speaker 1>when it comes to technology right now?

0:38:01.640 --> 0:38:01.879
<v Speaker 6>Yeah?

0:38:01.960 --> 0:38:05.760
<v Speaker 3>I think technology now is so core to the business,

0:38:06.560 --> 0:38:10.600
<v Speaker 3>is so central to the strategy that you really have

0:38:10.680 --> 0:38:14.160
<v Speaker 3>to take it like any other major component of your

0:38:14.880 --> 0:38:17.960
<v Speaker 3>supply chain. And to me, that's the reason why we

0:38:18.080 --> 0:38:22.000
<v Speaker 3>have this wake up moment where people understand that I

0:38:22.040 --> 0:38:24.200
<v Speaker 3>need to put much more control, I need to have

0:38:24.320 --> 0:38:25.640
<v Speaker 3>much more visibility.

0:38:26.440 --> 0:38:31.360
<v Speaker 6>The regulation itself is also creating, in a way.

0:38:31.680 --> 0:38:37.560
<v Speaker 5>The obligation for us for certain activities to have those activities.

0:38:37.040 --> 0:38:38.160
<v Speaker 6>Back under our control.

0:38:39.640 --> 0:38:43.080
<v Speaker 5>For example, if I look at Dora regulation, what is

0:38:43.120 --> 0:38:48.439
<v Speaker 5>DORA regulation telling you? Understand your key business processes, map

0:38:48.480 --> 0:38:51.480
<v Speaker 5>those key business processes to your underlying technology.

0:38:52.880 --> 0:38:55.000
<v Speaker 6>Check where you have concentration risks.

0:38:55.560 --> 0:39:00.239
<v Speaker 5>Mapping again, starting from your very critical business processes. And

0:39:00.280 --> 0:39:05.520
<v Speaker 5>once you've identified the areas where you have concentration, which

0:39:05.560 --> 0:39:15.400
<v Speaker 5>is normal, plan strategies, right strategies, test strategies on reversibility

0:39:15.680 --> 0:39:16.839
<v Speaker 5>and and so this is.

0:39:18.440 --> 0:39:21.560
<v Speaker 6>A couple of years ago we were doing that.

0:39:23.360 --> 0:39:27.720
<v Speaker 5>I would say, just when we were feeling that something

0:39:27.760 --> 0:39:30.960
<v Speaker 5>in a specific area of the architecture was a little

0:39:31.000 --> 0:39:33.839
<v Speaker 5>bit strange. Then we were doing a deep dive and

0:39:33.880 --> 0:39:37.600
<v Speaker 5>we were very often arriving at the conclusion that probably

0:39:37.640 --> 0:39:41.359
<v Speaker 5>there we need to change something. Let's change the technology,

0:39:41.880 --> 0:39:46.040
<v Speaker 5>create more portability and bring the thing under control. But

0:39:46.120 --> 0:39:49.399
<v Speaker 5>it was really sporadic, you know, it was not systematic.

0:39:50.000 --> 0:39:54.160
<v Speaker 5>With the regulation, now it's mandatory. We are as an

0:39:54.200 --> 0:39:58.120
<v Speaker 5>insurance company, we have to demonstrate every year we do

0:39:58.160 --> 0:40:01.680
<v Speaker 5>the job. So you see, I think you are totally

0:40:01.760 --> 0:40:04.239
<v Speaker 5>right in saying that we need to make sure we

0:40:04.320 --> 0:40:07.360
<v Speaker 5>have a certain number of activities back under our control.

0:40:08.960 --> 0:40:11.480
<v Speaker 5>But it's it's not only us deciding that. I think

0:40:11.520 --> 0:40:14.440
<v Speaker 5>it's also regulations forcing us. And from that perspective at

0:40:14.480 --> 0:40:16.080
<v Speaker 5>to say, this was a very good initiative.

0:40:19.560 --> 0:40:24.759
<v Speaker 1>When you started Giovanni and you're in this field, you

0:40:24.840 --> 0:40:28.360
<v Speaker 1>were probably either down the hall or on another floor,

0:40:28.880 --> 0:40:29.360
<v Speaker 1>and now.

0:40:29.239 --> 0:40:32.920
<v Speaker 2>You have to be directly in the c squite. I mean,

0:40:32.920 --> 0:40:34.640
<v Speaker 2>these are it's over.

0:40:34.480 --> 0:40:37.200
<v Speaker 1>The course of your career you've probably gone from being

0:40:37.280 --> 0:40:41.400
<v Speaker 1>marginal to being essential, which is very fascinating. I'm wondering

0:40:41.400 --> 0:40:45.480
<v Speaker 1>did you did you anticipate that transformation.

0:40:45.760 --> 0:40:48.440
<v Speaker 5>A little bit, yes, because I've always been convinced that

0:40:48.520 --> 0:40:54.239
<v Speaker 5>in reality, the more the world was going to modernize

0:40:54.239 --> 0:40:58.839
<v Speaker 5>and digitize, the more the technology was going to be inevitable.

0:41:00.080 --> 0:41:04.400
<v Speaker 5>But again I was I've not anticipated the speed of

0:41:04.480 --> 0:41:07.640
<v Speaker 5>the current description that I've not anticipated, you know. I

0:41:07.680 --> 0:41:10.719
<v Speaker 5>was thinking about some of the statements that I was

0:41:10.800 --> 0:41:15.520
<v Speaker 5>making five years ago, announcing that a certain number of

0:41:15.800 --> 0:41:19.840
<v Speaker 5>elements were going to happen probably five two time years

0:41:20.360 --> 0:41:23.600
<v Speaker 5>time frame. In the meantime it's over. We have already

0:41:24.040 --> 0:41:27.759
<v Speaker 5>another disruption, you know. And I'm not talking fifty years ago.

0:41:27.960 --> 0:41:30.680
<v Speaker 5>I'm just talking five years or ten years ago.

0:41:31.480 --> 0:41:32.480
<v Speaker 6>So yeah, I.

0:41:32.440 --> 0:41:34.520
<v Speaker 5>Always had that feeling that technology was going to be

0:41:34.600 --> 0:41:38.520
<v Speaker 5>really critical, but I have to be honest and modest,

0:41:38.640 --> 0:41:40.239
<v Speaker 5>not that the level it is today.

0:41:40.200 --> 0:41:40.399
<v Speaker 2>Yeah.

0:41:40.719 --> 0:41:43.799
<v Speaker 1>The irony of this conversation is that I over the

0:41:43.960 --> 0:41:46.560
<v Speaker 1>I've been a journalist for several decades, and I realized

0:41:47.680 --> 0:41:50.640
<v Speaker 1>a few months ago that my data, in which case

0:41:50.760 --> 0:41:54.239
<v Speaker 1>is just interviews, you know, interview tape and transcript we

0:41:54.360 --> 0:41:57.279
<v Speaker 1>scattered across a million different places. So I did my

0:41:57.320 --> 0:41:59.120
<v Speaker 1>own version of this, and I hired a twenty one

0:41:59.200 --> 0:42:01.799
<v Speaker 1>year old to sit at my office and physically go

0:42:01.920 --> 0:42:04.880
<v Speaker 1>through all my old archives and do my own version

0:42:04.920 --> 0:42:07.800
<v Speaker 1>of Malcolm data sovereignty as going on this summer, a

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<v Speaker 1>lot less elaterate.

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<v Speaker 4>Good laud practice, good practice.

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<v Speaker 2>Yeah that's good.

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<v Speaker 1>But thank you very much for joining us on Smart

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<v Speaker 1>Talks at IBM, and good luck and thank you all

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<v Speaker 1>out there for coming and listening.

0:42:22.840 --> 0:42:23.799
<v Speaker 6>Thank you, thank you.

0:42:27.480 --> 0:42:31.200
<v Speaker 1>Smart Talks with IBM is produced by Matt Ramano, Amy Gains, McQuaid,

0:42:31.640 --> 0:42:35.720
<v Speaker 1>Trina Menino, and Jake Harper. Engineering by Nina Bird Lawrence,

0:42:36.200 --> 0:42:41.240
<v Speaker 1>Mastering by Sarah Braguera, music by Gramoscope, Strategy by Cassidy Meyer.

0:42:41.840 --> 0:42:45.320
<v Speaker 1>Smart Talks with IBM is a production of Pushkin Industries

0:42:45.520 --> 0:42:50.000
<v Speaker 1>and Ruby Studio at iHeartMedia. To find more Pushkin podcasts,

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<v Speaker 1>listen on the iHeartRadio app, Apple Podcasts, or wherever you

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<v Speaker 1>listen to podcasts. I'm Malcolm Gladwell. This is a paid

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<v Speaker 1>represent IBM's positions, strategies or opinions.