Speaker 1: This is Bloomberg Business Week. I'm Carole Masser and I'm
Speaker 1: Bloomberg Quick Takes Tim Stanibek. We're here every day bringing
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Speaker 1: Search Bloomberg Global News for our world today largely about data,
Speaker 1: and the data is getting more intelligent, if I can
Speaker 1: say it that way. It's also getting much more productive,
Speaker 1: and it's all happening up in the cloud. So on
Speaker 1: that and so much more. We're so delighted to be
Speaker 1: here in Vegas at Informatica World two. And joining us
Speaker 1: right now is the CEO of Informatica's um Ahmed Wally.
Speaker 1: Excuse me, and you guys are all about cloud data.
Speaker 1: So great to be here. How are you good to
Speaker 1: be here? And Tim welcome to Welcome to Vegas. Uh
Speaker 1: what we'll tell us about. Like, there's just so much
Speaker 1: going on in this world, and I think we're trying
Speaker 1: to figure out kind of where we are in terms
Speaker 1: of the broader economy, the broader marketplace. How do you
Speaker 1: see it? Because you deal with so many customers that
Speaker 1: we cover on a regular basis. Oh yeah, we're a
Speaker 1: global companies, so we see literally every customer across every industry, vertical,
Speaker 1: across the globe. I mean there's a lot happening macro
Speaker 1: and I think we can all in some ways almost
Speaker 1: some sometimes just completely in uni ourself or not look
Speaker 1: at it. I think I come back. Whatever is happening
Speaker 1: in the current term will come and go. But the
Speaker 1: fundamental things that are changing is every enterprise is called digital.
Speaker 1: Every enterprise is trying to become intelligent using the increasingly
Speaker 1: coming off the pandemic, coming off the pandemic and the
Speaker 1: two years of pandemic, just completely exponential growth in in
Speaker 1: in in digital and in fact, the point that we
Speaker 1: made is that digital is no more a differentiator, that's
Speaker 1: a given. How do you get intelligent? And for that,
Speaker 1: how do you become data driven? And that's what we're
Speaker 1: all about, and that's what we're seeing increasing tail winds
Speaker 1: and demand for that. Everybody wants to like, hey, how
Speaker 1: do I harness the power of data. I have to
Speaker 1: manage customers, children and environment, likeness, managed supply chains, managed
Speaker 1: drug discoveries, so those become important and without data, that
Speaker 1: would not have happened. And and and look at during
Speaker 1: the pandemic the vaccine development happened in the shortest time possible.
Speaker 1: Why and we were part of that process bringing the
Speaker 1: best data, rapidly, looking at trial data, getting influence out
Speaker 1: of it so you can say, well, this vaccine makes
Speaker 1: sense to go out. That's what is happening and that's
Speaker 1: what we see. What specifically are you hearing from companies
Speaker 1: about the macro economic environment? And you know, we get
Speaker 1: a good view of it, not just with the analysts
Speaker 1: we talked to you, but with the CEO as we
Speaker 1: talked to what we see from earnings reports were in
Speaker 1: the midst of earnings right now, we're starting to see
Speaker 1: inventory levels, for example, come up at retailers. They need
Speaker 1: the data to sort through those inventory levels to help
Speaker 1: understand what consumers are going to buy, when they're gonna
Speaker 1: buy it, and control those levels. What are you hearing
Speaker 1: from customers about what's going on in the macro economic environment. See,
Speaker 1: there're two things we're hearing. Number one is everybody is
Speaker 1: definitely cautious looking at the current economy kind of does
Speaker 1: does give you what's going on. But at this same time,
Speaker 1: you know, we have so many great customers who spoke
Speaker 1: here and I'll give you an example, American Airlines during
Speaker 1: the middle of the pandemic, and they basically invested in
Speaker 1: our platform, and I'm like, what are you doing but
Speaker 1: the whole I mean the whole air Lines, But they
Speaker 1: realized that, Look, ultimately pandemic will be over, This macro
Speaker 1: will be over when we come out. What do you
Speaker 1: need to do? Manage your customer experience better? How do
Speaker 1: you do it? Understand your data better? Government better? I
Speaker 1: want to give it to every user across the enterprise.
Speaker 1: So I think that's what I'm hearing from customers are
Speaker 1: things that are the data related foundational things are here
Speaker 1: to stay. Now. You may stagger it, but you cannot
Speaker 1: avoid investing in it. But yes, the current macro does
Speaker 1: not get away from you. You've got to look at
Speaker 1: that every day and it gives you a little bit
Speaker 1: of caution. But these are fundamental things that you have
Speaker 1: to invest in. You know what I think about I
Speaker 1: always think about our investor audience, a very smart audience,
Speaker 1: but they're trying to be like, Okay, I understand. We
Speaker 1: talked about data all the time. We talk about the
Speaker 1: cloud all the time. What is it that you think
Speaker 1: an investment audience has to understand about, you know, kind
Speaker 1: of the sophistication of data, how it's becoming more intelligent,
Speaker 1: Like what does that mean? And what is the you know,
Speaker 1: potential top and bottom one, especially for publicly health companies.
Speaker 1: So I'll give you a couple of examples. Today morning
Speaker 1: I hosted a panel. We are three customers, you know,
Speaker 1: one from g Digital, one from Freddie Mac and one
Speaker 1: from Texas Health and Hospitals. And you know, and I'll
Speaker 1: give you other examples like Kroger and all. So Kroger
Speaker 1: as an example, just start to their CEO. There you go.
Speaker 1: So Kroger is an informatic customer and what they were
Speaker 1: using us for is he how do I get the
Speaker 1: right product at the right shelf at the right time.
Speaker 1: It has multiple benefits. It's a lost revenue opportunity that
Speaker 1: you want to await. Plus also if you get the
Speaker 1: wrong product and the right shelf, you're basically wasteedge which
Speaker 1: is meat needs at more cost. And then you're managing
Speaker 1: a supply chain that but if I'm a customer, I
Speaker 1: want gratification. So it really goes from the revenue to
Speaker 1: cost to obviously managing customer expectations. But weren't companies doing
Speaker 1: that before? Like that, That to me is kind of
Speaker 1: mind blowing. You would have thought that was it. See,
Speaker 1: if you look at a retailer, the margins are the thinnest, right,
Speaker 1: how do you manage your supply chains? So you basically
Speaker 1: make sure that you're not using products on the shelf
Speaker 1: at some point, right, if you get the right product,
Speaker 1: if you have you know, perishable goods and you throw
Speaker 1: it away, that's cost or if you have an empty shelf,
Speaker 1: then you basically lost revenue. How do you get better
Speaker 1: at it? And how do you do more and more
Speaker 1: just in time? Look at the supply chain problem, are
Speaker 1: you right? You go to all the other end. Healthcare
Speaker 1: is a huge thing in it. So when John was
Speaker 1: talking from Texas Health and hospitals, right, how do they
Speaker 1: look at patient care to make sure that when somebody
Speaker 1: is coming in they can provide the most personalized care
Speaker 1: in time for that reduces again the supply chain of
Speaker 1: healthcare cost but saves lives. So there are so many
Speaker 1: applications like that that when we talked to customers that
Speaker 1: they apply DAT or two. One thing I wanted to
Speaker 1: because Tim and I talked about coming off of milk
Speaker 1: and on the West Coast, we talked to a lot
Speaker 1: of companies and they said, even in a volatal environment
Speaker 1: where companies are taking about costs and wondering about what's next,
Speaker 1: the text spand is crucial. What can you tell us
Speaker 1: about your seeing in terms of companies when it comes
Speaker 1: to capital expenditures, especially when it comes to tech in
Speaker 1: your world. I think we are going to continue to
Speaker 1: see investment in critical areas of tech. I don't think
Speaker 1: that'll go away. And I think they areas of what's
Speaker 1: critical tech in here? From critical in me? What drives
Speaker 1: the piano? Like what you began, Hey, is it gonna
Speaker 1: depending upon the industry and it's gonna help me drive
Speaker 1: revenues or it's gonna help me manage cost or both.
Speaker 1: Ultimately that's where it does. It's simple piano. As a CEO,
Speaker 1: I look at that where does my spend and is
Speaker 1: it going to help me drive more revenues or manage
Speaker 1: my cost And that's where depending upon the industry, Hey,
Speaker 1: I want to understand churn better, I understand acquisition better,
Speaker 1: or oh my gosh, I have a huge amount of
Speaker 1: waste in my supplies and how do I reduce that?
Speaker 1: People are going to go invest in that kind of
Speaker 1: technology versus nice to have sidebars something. What if that
Speaker 1: fluff is going to go away? How are you thinking
Speaker 1: about the ownership of data? As we are increasingly in
Speaker 1: a world where data points exist everywhere, sensors to pick
Speaker 1: up that data exist everywhere. What about from the perspective
Speaker 1: of a normal human being, perhaps our investor audience, but
Speaker 1: also from the perspective of your customers. Where does the
Speaker 1: ownership conversation come in there? That's the one that's changing
Speaker 1: a lot. So data is one of those things. It's
Speaker 1: across the entire enterprise, right take a large organization. Every
Speaker 1: functional unit has their data and they manage it for
Speaker 1: their own purpose, you know, or if I'm the CMO,
Speaker 1: I'm managing it for my own you know, demanded purposes
Speaker 1: that if I'm the chief financial officer. But if you
Speaker 1: see the rise of the chief data officer, that really happened.
Speaker 1: And you know, serios also rules during the crisis more
Speaker 1: from a governance and compliance and we've been working with
Speaker 1: the studios diligently since then. In fact, we host SUDIO
Speaker 1: councils too, and that if you watch more and more
Speaker 1: and more, and the companies now have cdeos and from
Speaker 1: compliance oriented roles, they've gone into more business oriented roles
Speaker 1: and they're going in the strategy strategy. So hey, as
Speaker 1: a CEO, I like, okay, my functional units have the data,
Speaker 1: but I wan't like I won't understand the customer sentiment
Speaker 1: across everything. You know, my customer support, my marketing data,
Speaker 1: my sales data. Serios are becoming more and more important.
Speaker 1: And that is, by the way, good indicator of data
Speaker 1: becoming more and more in the sea. Are there limits
Speaker 1: the geographically to what you can do when it comes
Speaker 1: to analyzing data for a customer who's based in Europe
Speaker 1: versus a smer based in the United States, Yeah, I
Speaker 1: would use the limit. The world I would use is
Speaker 1: that there are differences. So you're right, like GDPR came
Speaker 1: along multiple years ago, so I think in Europe. In
Speaker 1: certain countries there's more sensitibility to how you can use
Speaker 1: the data, whereas in different countries it may be less.
Speaker 1: So that is true even different states like California. I mean,
Speaker 1: the laws are coming up across the board. I kind
Speaker 1: of believe that that's going to be a new normal
Speaker 1: where we'll have to manage data, the privacy and the
Speaker 1: security data while making sure. So what we see that
Speaker 1: gave rise to is governance, and that's a huge vector
Speaker 1: of business group. So here's what I hear from cio
Speaker 1: CIOs as us. I want to democratize data, but I
Speaker 1: don't want it to be a wild West to govern
Speaker 1: it for me. So and that's that we see that
Speaker 1: that has risen in the last couple of years, like
Speaker 1: very much. I want to create a data lake so
Speaker 1: everybody can go have added sharing of data. Yes, so
Speaker 1: I won't I want one place. I want to democratize data,
Speaker 1: but don't make it the Wild West, because it may
Speaker 1: not be compliance, it may be brand issues if the
Speaker 1: wrong data goes into the hands of wrong users. I mean,
Speaker 1: look at the pharmaceutical industry. Maybe in drug discovery and
Speaker 1: I also bring sales and marketing. You can put data
Speaker 1: together to understand, but different people should have access differently.
Speaker 1: That's what we see here. All we see that in
Speaker 1: the financial industry in terms of the division. Hey listen, UM,
Speaker 1: got a couple of minutes left here, and I do
Speaker 1: wonder you know, you were talking about supply chains and
Speaker 1: helping other companies and your clients manage that. When you
Speaker 1: look at some of the big macro issues, whether it's
Speaker 1: higher prices, supply chains, labor constraints, what's type of mind?
Speaker 1: What what of those big macro issues are affecting you.
Speaker 1: Guys at inform Aerica, you know, we obviously look at customers, uh,
Speaker 1: different industries and up operating differently. I look at obviously
Speaker 1: text spend carefully, I look at business priorities very differently.
Speaker 1: Which business priorities are getting optimized differently. The one beauty
Speaker 1: of the data businesses I caught it be a very
Speaker 1: recession receiving because okay, everybody needs are eight time you
Speaker 1: drive revenue. In a bad time, you drive down cost
Speaker 1: and and by the way, in the bad time, you
Speaker 1: also want to manage with me for the power for
Speaker 1: the future, So you need data for that. And that's
Speaker 1: what we see generally helps I see initiatives can go
Speaker 1: from growth growth, growth, growth to manage cost cost cost
Speaker 1: cost cost on a little bit of both. So and
Speaker 1: different industries on different places right now. But can you
Speaker 1: get all the workers you need? That is definitely I
Speaker 1: think it's a challenge that all of us face. Although
Speaker 1: having said that, I do believe that where the economy
Speaker 1: is right now, the second half of this hell will
Speaker 1: actually stabilize a lot of things. You do. Yeah, I think,
Speaker 1: because look up when when when when economy starts looking shaky,
Speaker 1: actrician always goes down, people get settled, people won't comfort
Speaker 1: people in safety. So our goal has always been, hey,
Speaker 1: we gotta we have a platform company. Well, the product
Speaker 1: company helped we give a lot more opportunities for people
Speaker 1: to come and do innovative work. And I do see
Speaker 1: that across the board. When I talked to my peers,
Speaker 1: it was really a difficult time for everybody. But I think,
Speaker 1: I think it will become very different in the second
Speaker 1: before we let you go, just in thirty seconds, you've
Speaker 1: been with Informatica for quite a while. Well, it was
Speaker 1: a public company then when it was taken private, now
Speaker 1: taking it public again just a few months ago what's
Speaker 1: the main difference in the company now when it was
Speaker 1: versus when I was prid were Well, I mean we
Speaker 1: were a single product on premise license company. Today we
Speaker 1: have a multi product cloud native platform company. We have
Speaker 1: a much bigger tim We only sell subscription and your
Speaker 1: cloud native. And the biggest thing I show you is
Speaker 1: that we were a less than fifty million dollars subscription
Speaker 1: at our company in six years ago. This is we've
Speaker 1: guided to a billion dollars in subscription change. So it's
Speaker 1: the biggest startup that got created within an existing company.
Speaker 1: And that's what you're proud of. It's a public private preference.
Speaker 1: Well you know what that can be days today the
Speaker 1: shares are higher, so probably a good day to be company. Well, yeah,
Speaker 1: thank you so much and thanks for hosting us here
Speaker 1: at Informatica World. We really appreciate it. Thanks for coming,
Speaker 1: the CEO of Informatica. You're listening to Bloomberg Business Week
Speaker 1: with Carol Masser and Bloomberg Quick Takes. Tim Stinovic on
Speaker 1: Bloomberg Radio. Shares the Facebook meta, by the way up
Speaker 1: for the one percent. This as the company has wrapped up.
Speaker 1: It's an annual shareholder meeting today a flurry of headlines,
Speaker 1: including one where Mark Zuckerberg of Meta Facebook says that
Speaker 1: Reel's is a top priority for company, which leads us
Speaker 1: so well to a story in the upcoming new issue
Speaker 1: of Bloomberg Business Week out tomorrow. Yeah. The story written
Speaker 1: by Brad Stone and Sarah Fryer. Sarah Fryer is Big
Speaker 1: Tech team leader for Bloomberg new She's also the author
Speaker 1: of the fantastic book No Filter, The Inside Story of Instagram.
Speaker 1: Sarah joins us this afternoon on the phone from San Francisco.
Speaker 1: Also with us is Joel Webber, the editor of Bloomberg
Speaker 1: Business Week. He's in the Bloomberg Interactive Broker studio back
Speaker 1: in New York. Joel, I want to start with the
Speaker 1: news that I learned in this piece that Instagram's co
Speaker 1: founder Kevin Sistrom just a few years ago. Uh, it's
Speaker 1: urged that Facebook bosses by an app called Musically that
Speaker 1: ultimately became TikTok. They passed on it, and now you
Speaker 1: have TikTok stealing a lot of thunder, especially when it
Speaker 1: comes to younger consumers that Facebook's Instagram wants. Yeah, that
Speaker 1: was a really uh juicy little tidbit um from from
Speaker 1: inside the world that is now now meta. And you know,
Speaker 1: I think if you zoom back and kind of think
Speaker 1: about what's made meta meta alt meta, is that it
Speaker 1: was obviously Facebook's relentless acquisitions and innovations, and a lot
Speaker 1: of those innovations UM were actually kind of copycat efforts,
Speaker 1: and sometimes that went really well. If you kind of
Speaker 1: think about what what some of the features that were
Speaker 1: built into two Instagram and the filters and sort of
Speaker 1: that snap vibe, it really allowed them to kind of
Speaker 1: like overcome the competition that they once had with snap Uh.
Speaker 1: And on the other side, they've they've had a few
Speaker 1: things that have floundered, So it's not like that that
Speaker 1: strategy that has kind of helped um. You know, Facebook
Speaker 1: reached three billion people around the world always works. But
Speaker 1: they have ran up against a competitor the likes of
Speaker 1: which they have not really had this much of an
Speaker 1: existential dread about. And that competitor is TikTok. And part
Speaker 1: of what makes TikTok go so well and has taken
Speaker 1: off during the pandemic is that and its ability to
Speaker 1: capture this youth culture. Is this algorithm that really surfaces
Speaker 1: people who who maybe you have never even used the
Speaker 1: platform before, and it harnesses it is this drug and
Speaker 1: there's a sense of discovery. And when you tap into
Speaker 1: what Facebook has, it maybe doesn't feel the same. And
Speaker 1: the you know, as Facebook here tries to pivot into
Speaker 1: the metaverse. Reels is the Instagram product that Sarah Fryer
Speaker 1: has written about here. Facebook is putting meta, is putting
Speaker 1: a ton of weight on reels, this feature within Instagram
Speaker 1: to be the thing that takes on TikTok. How is
Speaker 1: that going so far? Sarah, Well, it's it's really a
Speaker 1: big gamble. I mean, what they're doing here, it's hard
Speaker 1: to oversee how much is changing Instagram. Instagram teams to
Speaker 1: prominence based on its aspirational lifestyle photography. You know that
Speaker 1: the stuff you would go and you'd scroll and you
Speaker 1: see people their vacations, they're having their nice meals. Um,
Speaker 1: this this reel experience. It's all videos, short form video,
Speaker 1: and they're forcing it into every user feed. So when
Speaker 1: you scroll through those nice photos, you're going to get
Speaker 1: these videos of sound, right, and if you quick on them,
Speaker 1: you're in in real you can't it's like hard to
Speaker 1: get out of it. I I've you know, watch people
Speaker 1: try this um and and just get really confused and like, Okay,
Speaker 1: what's happening to Instagram? And it might even get more
Speaker 1: redesigned in that direction. You might eventually open Instagram and
Speaker 1: it's all the short form videos basically essentially TikTok. So
Speaker 1: it's not just that they're trying to copy TikTok, it's
Speaker 1: that they are basically completely reinventing Instagram in the process
Speaker 1: because they're so desperate to bring back that team demographic,
Speaker 1: which the Zuckerberg sees as the future. I mean, these
Speaker 1: people they develop their habits, and they have their habits,
Speaker 1: they have their communities, they've established it, and he wants
Speaker 1: them to be establishing it on his platforms. And Instagram
Speaker 1: is his It's become like his Swiss Army knife of
Speaker 1: the team demographic, which has made Instagram incredibly confusing and
Speaker 1: pack the features, and um, you know, it's a risk.
Speaker 1: It's a big risk because it's such an important property.
Speaker 1: It's it's the main revenue driver for Facebook, the main
Speaker 1: revenue growth driver, I say, and you know they're they're
Speaker 1: risking it to tibet the farm on becoming TikTok walk
Speaker 1: us through that confusion that that users are are confronted
Speaker 1: with when they now launch Instagram, which you used to
Speaker 1: be this well curated, square boxed uh platform, right um,
Speaker 1: and you could curate it and it was awesome and
Speaker 1: very simple. What what does it look like now and
Speaker 1: what could it become? Because you have some interesting reporting
Speaker 1: on that well. In the way I described it in
Speaker 1: the story, it's just like it's like you're you're cruising
Speaker 1: to required art gallery, neutral in the corner, and you're
Speaker 1: in a dance party. It can be very jarring. And
Speaker 1: if you're in the mode of silence images and then
Speaker 1: you go into sound, um, your brain is just working differently.
Speaker 1: And so I think that what people come to Instagram
Speaker 1: for um. People have spent years, spent more than a
Speaker 1: decade curating who they follow on Instagram. Now when you
Speaker 1: go to Instagram, the top thing you are going to
Speaker 1: get it suggestions. Your feet is going to become full
Speaker 1: of stuff that you didn't say you wanted, and a
Speaker 1: lot of it is going to be experimental and not
Speaker 1: based on what you've been following before. And that's that's
Speaker 1: a huge bet for Facebook at large. They want to
Speaker 1: become more about discovery, for the last fourteen years since
Speaker 1: the invention of the New Seed, they've been really good
Speaker 1: at showing you what they already know you want to see.
Speaker 1: Now it's about showing you stuff that you never even
Speaker 1: knew you wanted to see, which TikTok is really good
Speaker 1: at and Facebook is really not yet, Sarah. These platforms
Speaker 1: are nothing without the people who use them, without the
Speaker 1: people who create a content. And you spoke to some
Speaker 1: influencers who have done pretty well on TikTok. What's Instagram
Speaker 1: doing to try to court them and is it working well?
Speaker 1: The number one thing that matters to these these content
Speaker 1: creators right now is money. So if Instagram says, listen,
Speaker 1: our algorithm is only going to show people your content
Speaker 1: if you're making real. They're going to make real because
Speaker 1: they have to. This is their livelihood. But they're not
Speaker 1: gonna like it, um necessarily. And and so I suppose
Speaker 1: that creators who said who that listen, Like, you know,
Speaker 1: they got me here, I have to make reels or else, um.
Speaker 1: But you know, it's it's not the same, Like I'm
Speaker 1: not connecting with my audience the way I used to.
Speaker 1: And you know, I just wonder what happens when that
Speaker 1: money pods drives up and and they're not you know
Speaker 1: they really they have to see the creators. They have
Speaker 1: to create a culture around it. You know, when you
Speaker 1: go and talk to somebody on the street, they're not
Speaker 1: going to know necessarily what reels is. They know what
Speaker 1: Instagram is, they know what Facebook is. Um, do you
Speaker 1: know what TikTok is? But it's using things to describe
Speaker 1: too regular people because they're not part of this creator world. Um.
Speaker 1: These influence are the people who creates this content. They
Speaker 1: are the ones that are driving the culture. And Instagram
Speaker 1: needs to prove that it can create new stars on
Speaker 1: Instagram through this strategy, not just keep the old ones
Speaker 1: writing it out until a new classroom comes along. Wow.
Speaker 1: Another great deep dive for me. Sarah and understanding cert
Speaker 1: like this world and Meta and Facebook. Sarah Fryer, big
Speaker 1: tech team leader at Bloomberg and Jill Webber, the editor
Speaker 1: of Business Week. This is Bloomberg Business Week with Carol
Speaker 1: Masser and Bloomberg Quick Takes Tim Stinovic on Bloomberg Radio
Speaker 1: Live at Informatical World two in Vegas. And you know
Speaker 1: mckensee noted earlier this year, UM and ar think at
Speaker 1: the end of last year, they talked about financial data
Speaker 1: created or use throughout the life cycle of financial services.
Speaker 1: We know financial data, tim it's constantly about accumulation of it, uh,
Speaker 1: making that their security in the use of it, but
Speaker 1: also increasingly making sure that when it comes to the
Speaker 1: financial markets risk off thinking about those factors right and
Speaker 1: then taking that data and making sense of it. Well,
Speaker 1: that's where Peter Coup, Vice president and chief of Financial
Speaker 1: Strategist at Informatica comes in. He's with us on site
Speaker 1: at Informatica World. Peter, how are you great. How you
Speaker 1: guys doing We're doing pretty well. Um, to help us
Speaker 1: understand what the environment looks like right now from a
Speaker 1: financial services perspective, because you're the guy out there working
Speaker 1: with financial services companies to help them make sense of
Speaker 1: their data. You know, financial services is obviously a heavy
Speaker 1: producer of data. They also consume it as well, but
Speaker 1: data is just really a byproduct of the interactions and
Speaker 1: transactions a part of the industry. What we're seeing from
Speaker 1: our customers, whether it's wealth management, banks, the insurance industry,
Speaker 1: they need to grow the business. They need to identify
Speaker 1: ways and opportunities to make money off of their existing customers.
Speaker 1: They also need to provide better customer experience. At the
Speaker 1: same time, they're dealing with all the regulations that we
Speaker 1: know about, and when a new regulation comes about, the
Speaker 1: old ones don't go away the regulators anymore. And the
Speaker 1: regulators are not only just demanding good reports, they're asking
Speaker 1: what data did you use, where did it come from,
Speaker 1: how was it produced, etcetera. We talk about risk management,
Speaker 1: I mean, look what the world today with geopolitical risks,
Speaker 1: climate change, etcetera. Organizations really need to have a better
Speaker 1: handle of the information that they need in order to
Speaker 1: monitor as well as and ensure that they are reporting
Speaker 1: their risk positions accurately. And then at the end of
Speaker 1: the day, organizations have to be more agile than ever
Speaker 1: when time equals money and you have to respond to
Speaker 1: a threat or an opportunity, no longer can organizations rely
Speaker 1: on day old data has to be real time, all right.
Speaker 1: So these are the macro level business drivers that's fueling
Speaker 1: investments in data governance, data management, all the things that
Speaker 1: Informatica is doing. But keep in mind also we live
Speaker 1: in a world where data privacy is no longer a
Speaker 1: biproduct of it t it's front and center. It's a
Speaker 1: board level discussion. We've seen gdp R setting mandates here
Speaker 1: in the US with c c p A and c
Speaker 1: r p A. What we're now seeing is the organization
Speaker 1: that's all about transparency and increase reporting and really tracking
Speaker 1: everything when it comes to rate out of the financial crisis.
Speaker 1: It did, and it's also protecting information about our customers
Speaker 1: or employees. Not only is it bad business practice not
Speaker 1: to do so, but at the end of the day,
Speaker 1: reputations can be impacted forever. What I want to ask about, Peter,
Speaker 1: when it comes to the financial community, and I think
Speaker 1: about Bloomberg. We're so familiar with the just tons and
Speaker 1: tons of data and then putting it to use and
Speaker 1: making it productive, but it's also about securing it right
Speaker 1: and making sure it is safe, it's protected. But it's
Speaker 1: also something that helps your top and bottom line your
Speaker 1: data collection. So the financial community, you know, often has
Speaker 1: done so much in house. Now we're talking about right
Speaker 1: the profusion of the cloud. How do you guys adapt
Speaker 1: to that and meet their needs? So we've sen meet
Speaker 1: their concerns. There's a huge paradigm shift that has occurred
Speaker 1: in the financial services industry in the last decade. When
Speaker 1: you talked about cloud computing ten years ago, people are like,
Speaker 1: I don't know if I want to have my fund exactly.
Speaker 1: You know, is it is it? Literally? Uh, software as
Speaker 1: a service, as an infrastructure a service, etcetera, etcetera, And
Speaker 1: it's all of the above. Organizations want to ensure that
Speaker 1: they're agile, that they can expand when they need to,
Speaker 1: and it's less about having your own data centers, your
Speaker 1: own people. I can subscribe to analytics or AWS. I
Speaker 1: can go out and purchase Salesforce as my CRM solution.
Speaker 1: But the challenge is that you have more data that's
Speaker 1: being proliferated in the cloud and those old systems that
Speaker 1: still remain on premise, they're not going away. So you
Speaker 1: have to ensure that you can manage and govern all
Speaker 1: that data by directionally and that you have transparency and
Speaker 1: visibility as to what data is being created or consumed
Speaker 1: in the cloud. Can you give us an example when
Speaker 1: you look out at the landscape, because you've been doing
Speaker 1: this for a long time, what does the next five
Speaker 1: years look like in terms of what a regular person
Speaker 1: would experience when they interact with financial services. As a result,
Speaker 1: of the analysis of data, like what will they be
Speaker 1: able to do differently because you can crunch those numbers.
Speaker 1: But to your question average consumer, you know, we talk
Speaker 1: about and we hear about artificial intelligence and machine learning
Speaker 1: right in the context of credit checks and sorts of things.
Speaker 1: But here, you know, we see robo advisor technologies, lenching
Speaker 1: AI technologies the ability to actually provide the level of
Speaker 1: service that a human being can. I don't think we'll
Speaker 1: ever get replaced by technology in itself, but it's helping, right,
Speaker 1: And it's allowing organizations to be more connected and integrated
Speaker 1: to not just the consumer through their mobile app or
Speaker 1: on the website, but as part of their daily lives.
Speaker 1: And what we're gonna see is more people and consumers
Speaker 1: really looking at their financial situations as a partner for
Speaker 1: life rather than just a transactional relationship. And data and
Speaker 1: information is going to be required in order for these
Speaker 1: firms to provide the level of service and expectations that
Speaker 1: their customers demand. Just kind about a middle left. I
Speaker 1: have to ask you, because we've spend so much time
Speaker 1: to talk about E s G. And you do feel
Speaker 1: like you're coming to this moment of reckoning where people regulators,
Speaker 1: we start come out of damos, you know, asking for
Speaker 1: some oversights and metrics so that we can really understand
Speaker 1: what it's about. How can you guys help with that process,
Speaker 1: and again just about a lot of data that you
Speaker 1: have to deal with, collect, integrate from third parties and
Speaker 1: so forth. Place has to be open source, right, it
Speaker 1: can be, But the thing is, if you don't know
Speaker 1: what data really is there, how they should use it,
Speaker 1: where does it come from, can they trust it? You're
Speaker 1: going to find organizations suffering from the same challenges that
Speaker 1: they've been dealing with each and every day. E s
Speaker 1: G just puts another requirement on the table that's forefront,
Speaker 1: and we're going to see more and more organizations realizing
Speaker 1: that they have to do something about the way they
Speaker 1: manage and govern data. They can't rely on the people
Speaker 1: that they have and the old technologies. This is the
Speaker 1: time for the financial services industry to innovate and that's
Speaker 1: what Informatica is doing. All right, really fine. I feel
Speaker 1: like we scratched the services. So much going on, so
Speaker 1: hopefully we can maybe talk to you again in the future.
Speaker 1: I'd love to because there's so much going on. Certainly
Speaker 1: Peter kop he's vice president, chief financial Strategies at Informatica.
Speaker 1: Here at informatic or World two. You're listening to Bloomberg
Speaker 1: Business Week with Carol Masser and Bloomberg Quick Takes Tim
Speaker 1: Stinovic on Bloomberg Radio. Earlier this year, Grandview Research came
Speaker 1: out him and they noted that the cloud computing market
Speaker 1: size forecast to be worth about one and a half
Speaker 1: trillion by the compound annual growth rate of nearly a
Speaker 1: lot of demand, and it's leading to innovation. Well, let's
Speaker 1: ask what type of innovation it's leading to. Ditch Guys,
Speaker 1: executive vice president and a chief product officer at Informatica.
Speaker 1: He's here with us on site in Vegas. He oversees
Speaker 1: product management, user experience, design, engineering and cloud operations. Touch.
Speaker 1: Good to have you with us. How are you? I
Speaker 1: am well, I'm well, very busy, but great to be here.
Speaker 1: We'll talk a little bit about how the cloud is evolving,
Speaker 1: because I thought you're gonna say, well, well, I mean,
Speaker 1: if you think it's it's interesting. Um. I believe the
Speaker 1: first mention of the cloud from Informatica was gosh, fifteen
Speaker 1: years ago, all the way back in two thousand six. Yes,
Speaker 1: we've We've been around and we've been leading the market
Speaker 1: with many many innovations and generations of data and analytics
Speaker 1: on premises as well as in the cloud. There was
Speaker 1: this there were data warehouse is and data marks. Then
Speaker 1: there was this thing called big data and hadoop, and
Speaker 1: now all of it's in the cloud and uh, and
Speaker 1: we're powering all of it. You know, I think from
Speaker 1: a lay person, I think about I remember the Bloomberg
Speaker 1: story when they talked about if you were streaming from
Speaker 1: Amazon Web Services, you're getting something from the cloud, like like,
Speaker 1: so you're using Netflix, you're actually using an Amazon product exactly.
Speaker 1: And we started learning about stream you know, in terms
Speaker 1: of the cloud and like how all of that was happening. Um,
Speaker 1: talk to us in terms of how the cloud continues
Speaker 1: to evolve and how we are using it. Yeah, you know,
Speaker 1: the cloud first started with I'm just going to deploy
Speaker 1: some servers and make it easy for people to put
Speaker 1: their applications on those servers. That was called i as.
Speaker 1: Then it became well, I'm just going to build applications.
Speaker 1: You don't even have to worry about installing them. They're
Speaker 1: just applications. That's the whole sas Moniker. All of it
Speaker 1: is driving agility exactly exactly, Software as a service, all
Speaker 1: of that is driving agility. All of that driving making
Speaker 1: it easier for organizations to get the benefit of technology
Speaker 1: without having to install it, without having to manage it,
Speaker 1: and getting the latest most innovative technology because as technology providers,
Speaker 1: we're rolling out innovations on a on a monthly basis.
Speaker 1: In the cloud, what we're doing is now powering data
Speaker 1: for organizations in the cloud. What we're doing is we're
Speaker 1: enabling organizations to drive their data, their analytics, they're reporting
Speaker 1: as a service. What are you hearing from these organizations
Speaker 1: in terms of what they want right now and what
Speaker 1: they expect? What do they expect from analysis in the cloud? Yeah,
Speaker 1: So the big problem in the amazing opportunity for us
Speaker 1: is there's literally zeta bytes of data. What is this
Speaker 1: contextualizing exactly exactly a lot of zeros and and the
Speaker 1: important part is only about four to five percent of
Speaker 1: it is being used in delivering value. Data volumes keep
Speaker 1: growing and the opportunity to derive insights is in analyzing
Speaker 1: as much data as you can. The opportunity to uh
Speaker 1: deliver a cross sell up sell promotional offer for an
Speaker 1: organization is based on hyper personalization. It's based on how
Speaker 1: much data you have. It's based on the AI you're
Speaker 1: using against that data to make intelligent recommendations, based on
Speaker 1: your buying preferences, on your buying preferences, and on my
Speaker 1: buying preferences. And that comes down to trusted data. That's
Speaker 1: what we deliver our organizations increasingly thinking about my data,
Speaker 1: DOCEI A, Tim's data, DOCEI A? Your data do SI A?
Speaker 1: And I mean obviously very valuable, but then kind of
Speaker 1: who is the ownership of that? And then how do
Speaker 1: you use that going forward? And and a key element
Speaker 1: of trusted data is ensuring privacy, ensuring that the right
Speaker 1: data is used for the right purposes with the right consent.
Speaker 1: And that's a that's an important that We have four
Speaker 1: journeys that we empower for our customers. These are digital
Speaker 1: transformation journeys around analytics and AI empowering their analytics initiatives,
Speaker 1: their AI are artificial intelligence initiatives as well as around
Speaker 1: application integration and intelligent automation of business processes within the organization,
Speaker 1: which referred to as digital And then there's enabling them
Speaker 1: to transform the supply chains, enabling them to transform their
Speaker 1: customer experiences. They're enabling them to go digital and bring
Speaker 1: their products and enabling us to to shop for these
Speaker 1: products and e commerce experiences became so much in the demand.
Speaker 1: If you think about the last two years between pandemic
Speaker 1: and supply chain snarls, that is exactly right. That is
Speaker 1: exactly right, and and and to continue that threat. The
Speaker 1: last journey that's extremely important is data governance and privacy,
Speaker 1: making sure that we're enabling the consumption of this data
Speaker 1: within the global two thousand and beyond. But we've governed
Speaker 1: with governance and the appropriate Paul this he used to consume.
Speaker 1: We only have about thirty forty seconds here. You have
Speaker 1: a degree in electrical engineering. My father was an electrical engineer.
Speaker 1: Are we producing enough engineers in society for the demand
Speaker 1: that's really needed? Just your thoughts on that. We could
Speaker 1: always use more engineers. My father is an engineer, I'm
Speaker 1: an engineer. Uh, I'd love to see more engineers. I'd
Speaker 1: like to see more diversity and engineers as well, both
Speaker 1: from both from a demographic geographic as well as from
Speaker 1: a gender standpoint. We do have a little bit of
Speaker 1: extra time with you. So I just want to get
Speaker 1: an idea of how it is attracting and retaining talent
Speaker 1: right now, especially with regards I mean, it's interesting because
Speaker 1: we talked a lot about in recent weeks hiring freezes
Speaker 1: in Silicon Valley startups, uh not being an environment that
Speaker 1: they were in over the last few years where they're
Speaker 1: just flush with cash as venture capitalists tighten their belt.
Speaker 1: Are you starting to see it's actually easier to attract
Speaker 1: and retain talent or is it still really hard for
Speaker 1: you to build out these teams. It's an extremely competitive environment.
Speaker 1: But you know what I do want to emphasize as
Speaker 1: I'm hiring, So please if if they're talented still looking,
Speaker 1: I please visit our website and our career services page.
Speaker 1: I'm definitely that's a really notable thing to hear right now,
Speaker 1: because we're hearing across the industry of hiring freezes. We
Speaker 1: send it offers at Twitter for example. Well, you know
Speaker 1: it's funny. I was just over in Panama and we
Speaker 1: did a big conference from Bloomberg Live and talking with
Speaker 1: the chief operating officer of DLocal, and she said one
Speaker 1: of the things that I said what what can we
Speaker 1: do to help entrepreneurship, the creation of unicorns and technology
Speaker 1: you know, around the world. And she said, we just
Speaker 1: need to be better in terms of education and steering
Speaker 1: a younger population. And she spent she's talked specifically about engineering. Yes,
Speaker 1: I couldn't it well stem in general driving innovation. One
Speaker 1: thing I wanted to ask you about in terms of
Speaker 1: just going back to data because we talked earlier about
Speaker 1: on the on the broadcast about data dump and it's no,
Speaker 1: data isn't useful unless you can work through it make
Speaker 1: it productive. You guys think a lot about having this
Speaker 1: three sixty degree data when when we say something like that,
Speaker 1: what does that mean? Well, there's three sixty degree views
Speaker 1: to deliver context around data. Otherwise it's just numbers words.
Speaker 1: There's Jetesh, Well, Jetesh is what a person. There's contexts
Speaker 1: about jes Gitesha's chief product officer at Informatica. That's now context.
Speaker 1: Jtesha has an electrical engineering degree. That's context. J Tesh
Speaker 1: enjoys hiking on the weekends with his two young boys.
Speaker 1: That's context. That's now building three sixty three sixty view.
Speaker 1: Jetesh has these buying preferences gitesh enjoys making milklot is
Speaker 1: on the weekends. These are all, Um, there's a dating profile.
Speaker 1: I'm just gonna well, you know there's there's a professional
Speaker 1: three sixty views and what do you do with those
Speaker 1: three sixty views? Well, if you're if you're in the
Speaker 1: wealth management business, you understand their investment profile. You you
Speaker 1: understand uh, you know, you have householding information, and you
Speaker 1: understand who their relationships are. You understand what could be
Speaker 1: interesting cross sell, up sell opportunities to offer investment products,
Speaker 1: mortgage products. You have a question, Yeah, I'm just thinking,
Speaker 1: how do these profiles, how do they see three sixty
Speaker 1: degree views? How do they follow you from one platform
Speaker 1: to another platform? How do they allow a mortgage broker
Speaker 1: to to reach you? But also somebody outside of financial
Speaker 1: services for example? Very open, No, no, no. So what
Speaker 1: we're doing is we're helping an individual organization empower itself
Speaker 1: with its own data. So we're not we're not enabling organization.
Speaker 1: We're not. We're not we're not delivering data to an organization.
Speaker 1: We're helping and every organization has create every enterprise creates
Speaker 1: its own data. We're helping them harness the power of
Speaker 1: that data, helping them, organizing it and helping them make
Speaker 1: it productive. Do you do you envision a time when
Speaker 1: we as consumers of our own data, and we're somehow
Speaker 1: in the blockchain, the context of the blockchain, and we
Speaker 1: can travel with that data where we want. It's an
Speaker 1: interesting question. You have rights to your data today under
Speaker 1: g d P R C c p A. These are
Speaker 1: privacy regulations, California's as well as the European Union. You
Speaker 1: have rights to go to an organization and ask for
Speaker 1: how are you using my data? And can you give
Speaker 1: it to me? And can you not use my data
Speaker 1: for sales and marketing purposes? That exists today, asked to
Speaker 1: whether it resides in a blockchain and the future and
Speaker 1: you can carry it with you. It's an interesting It's
Speaker 1: an interesting question. I'd like to understand what the application
Speaker 1: of that. I'd rather others have some understanding of my
Speaker 1: preferences to make my experiences productive, to make customer service
Speaker 1: and engagement for me more productive in in serving me,
Speaker 1: I certainly wouldn't want that data use for malicious purposes
Speaker 1: and and and therein lies the balance the analize regulations
Speaker 1: and the like. I have to say, Um, coming to
Speaker 1: this event, um and reading in and doing a bunch
Speaker 1: of research. One of the things that I always find interesting,
Speaker 1: and there's a function on the Bloomberg that you basically
Speaker 1: can put a company in. You can find out who
Speaker 1: their suppliers are and then who their customers are. And
Speaker 1: what's interesting is you guys work with everybody who's big
Speaker 1: in the cloud, whether it's AWS, whether it's Microsoft, where
Speaker 1: it's Google. Um, what are some of the conversations you're
Speaker 1: having with these people about kind of what their demands
Speaker 1: are and where the cloud and where data is going. Yeah,
Speaker 1: because they are such pig aggregators of information. Correct. Correct,
Speaker 1: And that's why we have deep partnerships with them and
Speaker 1: they have deep partnerships with us. Is while they are
Speaker 1: aggregating information on behalf of their enterprise customers, which are
Speaker 1: also our enterprise customers, we are helping them aggregate that information.
Speaker 1: We're helping them on ramp that information into a w
Speaker 1: S Azure g c P Oracle, which we just announced today,
Speaker 1: the or cold cloud as well. Yeah, and it makes
Speaker 1: them have the ability to use it. We have to
Speaker 1: run to touch. Thank you so much, my pleasure, happy
Speaker 1: to be here. I really appreciate your guy. He's chief
Speaker 1: product Officer at Informatica. You're listening to Bloomberg Business Week
Speaker 1: with Carol Messer and Bloomberg Quick Takes Tim Stinovic on
Speaker 1: Bloomberg Radio. We're live in Las Vegas at Informatico World
Speaker 1: and our next get just part of the team over
Speaker 1: at Freddie Mac. They are responsible for within eleven million
Speaker 1: active loans, a balance sheet of over two point one trillion.
Speaker 1: That's it. That's it. It's a lot of information and
Speaker 1: data to keep track of and also to keep secure.
Speaker 1: Here with more is Arvin jag Jaggon eight and Vice
Speaker 1: president and Chief Data Officer at the Government Sponsored Enterprise
Speaker 1: of GSC. It is, of course Freddie Mack here on
Speaker 1: site at Informatica World in Las Vegas. Jack, good to
Speaker 1: chat with you. How are you doing great? Really appreciate
Speaker 1: being here. Well, let's talk. I mean, there's so much
Speaker 1: that we want to get to with you. But you're
Speaker 1: the chief data officer. You have such a unique insight
Speaker 1: into the health of the US economy, the health of
Speaker 1: the housing market. I want to start there and get
Speaker 1: an idea from you of of of and look with
Speaker 1: the you know, with the caveat You're not an economist,
Speaker 1: but what does the landscape look like to you right now?
Speaker 1: See a lot of data that you see a lot
Speaker 1: so in terms of you think about transformation and UM
Speaker 1: looking at data going into the cloud. Ultimately, you know
Speaker 1: when when you look at what we're trying to achieve
Speaker 1: in terms of being successful in our mission UM the
Speaker 1: increase of demand that you've seen in the last couple
Speaker 1: of years, and you look forward into ever changing economy
Speaker 1: requires us in terms of how we want to modernize,
Speaker 1: take advantage of the cloud UM and look at in
Speaker 1: terms of meeting our mission. So in terms of understanding
Speaker 1: the data, without going into all the various points, when
Speaker 1: you think about from our first quarter results right eight
Speaker 1: two people we were able to either buy rent or
Speaker 1: free finance at home two and two three billion UM
Speaker 1: liquidity came and you know, well we were able to
Speaker 1: provide off which in terms of what I just mentioned
Speaker 1: in terms of the first time home buyers were first
Speaker 1: time right of which met are affordable our goals. So
Speaker 1: that you know, if you think about what's happening with
Speaker 1: the economy, UM housing is still right you seeing demand
Speaker 1: and think about increasing So if you look at that,
Speaker 1: I think closer to three trillion in terms of assets, right,
Speaker 1: we were able to the demand is requiring us to
Speaker 1: be more nimble, right as well as in terms of
Speaker 1: me making sure that every meeting our mission that make
Speaker 1: home possible for it. Well, that's the interesting point. And
Speaker 1: this is you know, some of the conversations that we
Speaker 1: have with the CEO of Informatica, uh, and just kind
Speaker 1: of the theme woven throughout is that there's data and
Speaker 1: then there's smart data. Right, You guys want to make
Speaker 1: sure you've got a mission. You do want to make
Speaker 1: sure that the money and the assistance is getting to
Speaker 1: the people who really really need it. And that's where
Speaker 1: data can come in, right to find that you're getting
Speaker 1: it to the right home buyers, so our potential home buyers.
Speaker 1: So if you think about how technology is changing, right,
Speaker 1: ultimately we're going to realize, uh, how do we more nimble?
Speaker 1: What's what's it going to do to that bar lender experience,
Speaker 1: What's it gonna do from our servicing standpoint? Um, it's
Speaker 1: going to continue to evolve. Where we're trying to figure
Speaker 1: out is how do we continue to move the needle
Speaker 1: to make more UM home ownership rather beyond the multi
Speaker 1: family or the single family side UM affordable and accessible accessible, Right,
Speaker 1: that's the time. That's where the mission is really tying
Speaker 1: into what is the data that you're looking at now
Speaker 1: that you're able to aggregate, that you're able to analyze,
Speaker 1: that you're able to make sense of that you weren't
Speaker 1: able to do let's say five ten years ago. Give
Speaker 1: us specific examples of what you have the power to
Speaker 1: do now and then how that translates into the home
Speaker 1: buying experienced. So if you think about origination and you
Speaker 1: think about five ten years ago, UM, things were much
Speaker 1: more siloed in terms of processes. Right, So if you
Speaker 1: think people process technology, So as I talked about the
Speaker 1: culture change, so how do we in terms of loan
Speaker 1: origination as they're changing and evolving, how can we if
Speaker 1: you think about our reperand warrant relief that you know,
Speaker 1: that's that's there before everything was paper during and now
Speaker 1: you're able from a lender bar experience able to provide
Speaker 1: that UM data right for them to make decisions in
Speaker 1: the more quicker manner. We've we've thought about reimagining our
Speaker 1: entire servicing UH portfolio. The background UM that has been
Speaker 1: something that we were investing and looking at in terms
Speaker 1: of the front end, the bar experience, but then also
Speaker 1: the servicing side because that's how people when you think
Speaker 1: about a thirty year mortgage, they're dealing with the services.
Speaker 1: So we've done various activities and products right to help
Speaker 1: improve that side of the business as well. How did
Speaker 1: the pandemic impact you, guys in terms of your approach
Speaker 1: and your use of data or analytics or either class
Speaker 1: the stuff that you know, all the technology that in
Speaker 1: from the met provides no great, great rushing um on
Speaker 1: a personal level. I look at in terms of you
Speaker 1: when you think about COVID March Friday, take your laptop.
Speaker 1: We don't know if we're gonna come back and guess
Speaker 1: what's it was our last show in studio. You didn't
Speaker 1: come back. What you've seen in the last couple of
Speaker 1: years is accessible. Uh, having data more accessible we became
Speaker 1: key right because people were now virtual. So before I
Speaker 1: can come by your desk and can you print me
Speaker 1: out something or can you give me they wanted more
Speaker 1: more dashboards. How do you get data to be more consolidated?
Speaker 1: So that Ford was reporting you're able to meet the
Speaker 1: speed to market demand increased, So in COVID, clearly there
Speaker 1: was a dip, but then you saw housing and everyone else,
Speaker 1: so that fostered not only transformation in every and every
Speaker 1: aspect of business line. One thing I do want to
Speaker 1: ask you though, because you guys had an incredible search
Speaker 1: during the pandemic, right, we know, all of a sudden
Speaker 1: everybody was like, I'm moving, I'm buying houses out inside
Speaker 1: the backyard. I need a backyard and I need extra space. Um,
Speaker 1: how does it compare to what you were seeing? You
Speaker 1: talked about some of the volumes that you guys are
Speaker 1: just seeing as of late, But how does it compare
Speaker 1: our things slowing down? I mean we've seen it with
Speaker 1: the rise in mortgage rates. I'm just curious in terms
Speaker 1: of the data processing, are you seeing it slow down
Speaker 1: a little bit? I mean again in terms of again
Speaker 1: from a data perspective, I'll let UM more economists and
Speaker 1: and and are you processing less? It's not so much
Speaker 1: even processing less. I think what we're what we're seeing
Speaker 1: is that UM being efficient, making sure that we can
Speaker 1: meet our mission. Being successful in terms of making home
Speaker 1: possible is is critical today as it was two years ago.
Speaker 1: Do you have data that gives you an informed view
Speaker 1: of how hot the housing market is and how much
Speaker 1: it could slow down because mortgage rates are increasing. You know,
Speaker 1: great question. Again, UM will provide those data too. I
Speaker 1: call our key executives and and business business owners. My
Speaker 1: job from a CDO standpoint is make sure those those
Speaker 1: reports and the data is accurate and they could rely
Speaker 1: on information. And from a from a governance perspective, is
Speaker 1: a rare informatic its critical force that we can we
Speaker 1: know our data is protected UM and governed effectively and
Speaker 1: then reportings are accurate well. And one thing we talked
Speaker 1: with a Mint about Aalia, the CEO of Informatica, that
Speaker 1: the your position, the chief data officer. It's like how
Speaker 1: important the CFO became after the financial crisis. How often
Speaker 1: is it that you are drawn into strategy because if
Speaker 1: your understanding and use of data and just got about
Speaker 1: twenty five seconds, so being the business line. UM. Fortunate
Speaker 1: that UM our strategy has a clear line of site
Speaker 1: to our strategic framework and omission UM and very very
Speaker 1: fortunate for them. Jack, thank you so much. I'm so
Speaker 1: glad we got to look at this side of the
Speaker 1: discussions that we're having today. Um Arvin Jaggonathan. He's VP,
Speaker 1: Chief Data Officer over at Freddie Mack Journal. Now, but
Speaker 1: you let me drive? No, no, no no, please, I want
Speaker 1: to drive. It's good question. This is the Drive to
Speaker 1: the Globe on Bloomberg Radio. All right, just about ten
Speaker 1: minutes left in today's trading session. We're just off our
Speaker 1: highs of the session, a big day when we got
Speaker 1: those f O m C minutes from that latest FED meeting,
Speaker 1: and we've got a great guest to talk about the
Speaker 1: trends that we've been seeing. Tim, great to have back
Speaker 1: with us and Miletti, head of active Equity at all
Speaker 1: Spring Global Investments. All Spring Global Investments stuff is about
Speaker 1: five one billion dollars in assets under management and joining
Speaker 1: us once again on the phone from Milwaukee, and how
Speaker 1: are you. I'm doing well. How are you? We're doing well.
Speaker 1: It's good to have you with us. And it's interesting
Speaker 1: to see the trade today, especially after we got those
Speaker 1: FED meeting minutes. Thanks to our producers here at Bloomberg
Speaker 1: Business Week, we know that you right that we're in
Speaker 1: the midst of a paradigm shift which is creating a
Speaker 1: lot of volatility and discomfort for investors. So raises the question,
Speaker 1: what are the opportunities in this paradigm shift. Yeah, Tim,
Speaker 1: it's a great question because it's really hard for investors
Speaker 1: to stay focused on opportunity when there's so much dislocation
Speaker 1: going on in the market. But that is exactly what
Speaker 1: our investment teams are trained to do. They are investors,
Speaker 1: not traders, and so they're focused on process and looking
Speaker 1: for companies that can sustain this kind of change. So
Speaker 1: really good strong fundamentals um and they're seeing it across
Speaker 1: all different industries. It's really a time to kind of
Speaker 1: look at those key um companies. It's it's you know,
Speaker 1: company fundamentals are truly the key point right now. Yeah,
Speaker 1: you know what, and you do see that, right And
Speaker 1: we've seen it play out as earnings have been reported.
Speaker 1: There's some companies that seem to weather it through and
Speaker 1: investors look at the fundamentals and they'll be bidding a
Speaker 1: stock up in a down market or dark Husser saw
Speaker 1: Bober comes out and says, forget about adjin Eba, We're
Speaker 1: all about free cash flow now. Yeah, Well, the mentors
Speaker 1: keep on changing, so you know, and and I know,
Speaker 1: I's say this to a fair amount of our market guest.
Speaker 1: But we've seen a lot of different market cycles. This
Speaker 1: is an unusual one, right where we are recovering from
Speaker 1: so much liquidity that was pumped into the markets very
Speaker 1: very quickly and provided incredible support and a lot of
Speaker 1: money chasing a lot of assets to all of a
Speaker 1: sudden it's kind of quickly going away. It feels like, so,
Speaker 1: what's the advice for investors? What do you draw upon historically,
Speaker 1: you know, or technically to kind of give them guidance. Yeah,
Speaker 1: it's it's it's so important to look at historical perspective
Speaker 1: and to think about it just exactly the way you
Speaker 1: set that up, because it is a paradigm shift. We
Speaker 1: have gone from the low inflation low right environment, and
Speaker 1: that's changing. In the first stage of that, really you
Speaker 1: typically see a lot of dislocation in the market, then
Speaker 1: you see some capitulation. We're seeing a little bit of that,
Speaker 1: maybe a little bit more to go, and then you
Speaker 1: start to see the recovery happened. I think where we're
Speaker 1: looking is again company by companies, but we do see opportunities.
Speaker 1: If you look at the spreads, historical spreads, they're kind
Speaker 1: of getting to your point um between large cap and
Speaker 1: small cap are really blown out, and you're getting opportunities
Speaker 1: in small cap companies I would say present themselves pretty
Speaker 1: well right now. UM health Care is another area because
Speaker 1: of their domestic because the domestic exposure in because the
Speaker 1: domestic exposure with everything that's going on in the world
Speaker 1: or what, or just because they were down. Yeah. I
Speaker 1: mean typically in inflationary cycles you start to see a
Speaker 1: little bit more pressure UM on smaller cap companies. But
Speaker 1: it's the small cap companies that are not UM that
Speaker 1: are not as set up I think for change. And
Speaker 1: so if you look at really strong fundamental within small caps,
Speaker 1: you see great opportunity there. But yes, UM, that's the space.
Speaker 1: They're also in some ways isolated from a lot of
Speaker 1: the global challenges that we have going on right now.
Speaker 1: But you know, the size has been important. Large cap
Speaker 1: has been where a lot of the market has flown,
Speaker 1: and I think we are comfortable looking down cap right now.
Speaker 1: There's a lot of opportunity out there. That being said,
Speaker 1: there's a lot of large cap companies where you're seeing big,
Speaker 1: big cat sell off right now too, And I think
Speaker 1: that's exactly why rather than put a telescope on you know,
Speaker 1: the whole market. You kind of have to take a microscope,
Speaker 1: go about and look at you know, where do you
Speaker 1: look right? Where do you look within small cap? But
Speaker 1: where do you look within large caps? And within the
Speaker 1: ex started within each sector as well, fundamental research actually
Speaker 1: matter Where do you where do you look in those places?
Speaker 1: What sectors are exciting to you? Yeah? Well, I think
Speaker 1: one of those sectors that does stand out to me
Speaker 1: is healthcare. One. It tends to be, you know, a
Speaker 1: little bit more defensive in inflationary recycles, which you could
Speaker 1: argue we are in the midst of and you know,
Speaker 1: it underperforms last year substantially, it still is fairly you know,
Speaker 1: under represented. I would say, um in terms of holdings
Speaker 1: that many many professional investors have, So I would say
Speaker 1: healthcare is a much active area UM. And outside of that,
Speaker 1: I would just do the bottom up work and focus
Speaker 1: on fundamentals. And I think that is different again in
Speaker 1: this paradigm shift where rising and seas lifted all both,
Speaker 1: I think the tides going down and there's going to
Speaker 1: be more different across each company. You know, it's interesting too.
Speaker 1: And I was thinking about when we saw Snap drop
Speaker 1: like a rock this week and our man Deep Singh said,
Speaker 1: you know, at some point you look at this and say,
Speaker 1: this is a company with what over three million in
Speaker 1: terms of subscribers, like there is value you there? And
Speaker 1: I do wonder you know, and I know you you
Speaker 1: focus on sectors when you come on with us, And
Speaker 1: is there some point that you look at that big
Speaker 1: tech and just got about thirty seconds here that you
Speaker 1: say there are opportunities here, especially with these beaten down names. Absolutely,
Speaker 1: um technology is changing and transforming the world and we
Speaker 1: all know that, and companies are going to continue to
Speaker 1: spend on technology, not just us individually. So track is
Speaker 1: not an area I would stay away from. However, there's
Speaker 1: a lot of dislocation between the big you know kind
Speaker 1: of seven saying names and what their valuations have done
Speaker 1: versus the rest of technology. So again I would just
Speaker 1: be selective. All right. Well, always fun to check in
Speaker 1: with you and Miletty. She's head of active equity over
Speaker 1: at all Spring Global Investments. I've got roughly one billion
Speaker 1: dollars in assets under management joining us on the phone
Speaker 1: from Milwaukee. Thanks for listening to Bloomberg Business Week. Download
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