WEBVTT - Bloomberg Businessweek Weekend - October 15th, 2021 0:00:01.080 --> 0:00:05.440 This is Bloomberg business Week Inside from the reporters and 0:00:05.600 --> 0:00:09.200 editors who bring you America's most trusted business magazine, plus 0:00:09.240 --> 0:00:13.160 global business finance and tech news As it happened. Bloomberg 0:00:13.240 --> 0:00:16.759 business Week with Carol Messier and Bloomberg Quick Takes Tim 0:00:16.800 --> 0:00:21.240 Stinovic on Bloomberg Radio. Hi, everyone, Welcome to the weekend 0:00:21.360 --> 0:00:24.360 edition of Bloomberg Business Week, earning the season officially underway, 0:00:24.400 --> 0:00:27.120 with America's biggest banks among those who report third quarter 0:00:27.160 --> 0:00:29.120 results this week. We're also going to talk about one 0:00:29.160 --> 0:00:31.200 of the leaders of those banks, the first woman to 0:00:31.280 --> 0:00:34.640 lead a top US lender, City Group CEO, Jane Fraser, 0:00:34.760 --> 0:00:36.959 the subject of our cover story, and it's a very 0:00:36.960 --> 0:00:39.880 special double issue this week. It's known as the Bloomberg 0:00:39.880 --> 0:00:42.760 Business Week Persuasion Issue, and we'll explain more in just 0:00:42.840 --> 0:00:46.120 a moment. Also ahead on our broadcast will talk Afghanistan 0:00:46.200 --> 0:00:49.320 and risk mitigation with retired four star General Stanley McCrystal, 0:00:49.920 --> 0:00:52.479 and pick up on our conversation with tech titan Michael 0:00:52.520 --> 0:00:55.160 Dell that is part of our Bloomberg Business Week Talk series. 0:00:55.480 --> 0:00:57.120 All that and more to come, but we begin by 0:00:57.200 --> 0:00:59.920 welcoming in the Features editor at Bloomberg Business Week. Mac 0:01:00.080 --> 0:01:05.400 cheffin Max, we're calling this the persuasion issue. Tell us why. Yeah, Well, 0:01:05.480 --> 0:01:09.200 so we got this idea about almost a year ago. 0:01:09.600 --> 0:01:13.240 Believe it. Um, We're watching the uh, you know, the vaccine, 0:01:13.600 --> 0:01:17.800 the vaccines get closer to release, um, the COVID vaccine, 0:01:18.120 --> 0:01:19.680 and we were talking about the fact that you know, 0:01:19.760 --> 0:01:22.880 at some point, yes, everyone is worried about supply, but 0:01:22.959 --> 0:01:26.399 at some point, you know, convincing people vaccine resistant people 0:01:26.440 --> 0:01:28.479 to get vaccinated is going to be a huge issue. 0:01:28.760 --> 0:01:31.000 And that kind of got us as a newsroom or 0:01:31.040 --> 0:01:33.759 as a you know, as the magazine into conversations about 0:01:33.840 --> 0:01:36.680 just the importance of persuasion in business. You know, so 0:01:36.760 --> 0:01:41.080 much of business runs on convincing people to to do things, 0:01:41.120 --> 0:01:43.720 to change their minds to you know, Marketing, of course, 0:01:43.800 --> 0:01:46.720 is a kind of persuasion. Sales as persuasion. UM. And 0:01:46.760 --> 0:01:49.960 you also and and and then you know, this vaccine issue. 0:01:50.000 --> 0:01:52.200 We were um pressing on that. I mean, of course, 0:01:52.240 --> 0:01:55.080 now there's plenty of vaccine in the US to go around, 0:01:55.120 --> 0:01:58.080 but but there's this persistent group of people who are 0:01:58.200 --> 0:02:00.880 vaccine hesitants. So we were hoping to speak to two 0:02:00.880 --> 0:02:03.440 more or less all these ideas with these stories. Well, 0:02:03.440 --> 0:02:05.800 one of the features this week comes from Kurt Wagner, 0:02:06.000 --> 0:02:08.480 and we've come to know social media as a space 0:02:08.520 --> 0:02:11.839 that almost seems designed to rile people up and keep 0:02:11.880 --> 0:02:14.360 them coming back. Kurt writes that Twitter is actually trying 0:02:14.440 --> 0:02:19.280 to change that. How exactly. Yeah, this this story started 0:02:19.280 --> 0:02:21.640 a conversation with me and Kurt talking about whether Twitter 0:02:21.680 --> 0:02:24.200 could get people to stop dunking on one another. A 0:02:24.320 --> 0:02:27.959 junk is when you, um, you know, you retweet, You 0:02:28.160 --> 0:02:31.600 take someone else's tweet and put a witty or clever 0:02:31.720 --> 0:02:34.320 remark on top of it. But often they just become 0:02:34.440 --> 0:02:39.320 vectors for harassment, for you know, crude language, for for nastiness, 0:02:39.400 --> 0:02:42.680 and and the thing about Twitter is it's kind of 0:02:42.720 --> 0:02:44.800 made that part of the appeal. You know, this is 0:02:44.880 --> 0:02:47.160 this is the social network. Um, you know, until they 0:02:47.160 --> 0:02:50.040 banned him that that gave us Donald Trump. Um, you know, 0:02:50.160 --> 0:02:53.240 so much of Twitter is about these very heated conversations. 0:02:53.400 --> 0:02:56.079 And as Kurt wright, the company was kind of designed 0:02:56.120 --> 0:02:58.799 that way. It was designed to get people to kind 0:02:58.840 --> 0:03:02.639 of behave in outlandish or provocative ways in order to 0:03:02.680 --> 0:03:05.320 get followered. So the fact that they're trying to address 0:03:05.360 --> 0:03:08.560 that is significant. It's significant both you know, as a 0:03:08.560 --> 0:03:10.520 as a business story, as a company story. If if 0:03:10.600 --> 0:03:13.360 Twitter the company is able to do this, it could 0:03:13.360 --> 0:03:17.000 have implications for for its long term viability but also 0:03:17.000 --> 0:03:19.240 could potentially hurt its growth. But it also it has 0:03:19.280 --> 0:03:22.239 implications for for all sorts of other social media companies because, 0:03:22.440 --> 0:03:26.639 as as Kurt says in this um in this excellent article, UM, 0:03:26.720 --> 0:03:30.600 the idea of designing ways to stop people from being 0:03:30.600 --> 0:03:33.520 outrageous on social media kind of goes against everything social 0:03:33.520 --> 0:03:37.000 media design has stood for over the last fifteen years. 0:03:37.000 --> 0:03:39.160 So it's in some ways it's kind of silly, but 0:03:39.200 --> 0:03:42.240 it also it's sort of a very old and interesting move. Okay, 0:03:42.280 --> 0:03:44.160 so just real quick, Max, take us through some of 0:03:44.160 --> 0:03:46.760 those changes that that Twitter has implemented because people who 0:03:46.840 --> 0:03:48.760 don't use the platform might not have realized it over 0:03:48.760 --> 0:03:51.280 the past year. Yeah, so they've added all of these 0:03:51.320 --> 0:03:53.640 what they call speed bumps. So, if you're gonna send 0:03:53.680 --> 0:03:56.720 a message, um, if you're going to take an article 0:03:56.760 --> 0:03:59.840 that you read on Twitter and broadcast it to your followers, 0:04:00.120 --> 0:04:02.000 it's gonna it's gonna put a pop up in front 0:04:02.000 --> 0:04:03.720 of you and says, hey, do you want to read 0:04:03.760 --> 0:04:07.280 this first? Before you endorse this. UM. So that's one 0:04:07.280 --> 0:04:10.280 of them. If you type in something you know, a 0:04:10.320 --> 0:04:13.600 curse or a racial slur or or some some other 0:04:13.760 --> 0:04:17.320 handful of offensive terms into a reply tweet, you know, 0:04:17.320 --> 0:04:20.080 when you're replying to somebody, it will put a pop 0:04:20.120 --> 0:04:21.479 up in front of you and say, hey, you know, 0:04:21.520 --> 0:04:23.000 do you want to Are you sure you want to 0:04:23.000 --> 0:04:26.359 do that? Um? And And not all of these have worked. 0:04:26.480 --> 0:04:28.400 Not all of these things have worked perfectly. It's not 0:04:28.480 --> 0:04:31.279 like Twitter is still in many ways, you know, full 0:04:31.320 --> 0:04:35.440 of um nastiness. UM. But there are encouraging signs here. 0:04:35.480 --> 0:04:38.240 And and Kurt talked to these outside researchers who have 0:04:38.320 --> 0:04:41.200 been working with Twitter for years, and there's been a 0:04:41.240 --> 0:04:44.279 lot of frustration kind of from that community, the world 0:04:44.320 --> 0:04:47.560 of sort of academia and people who are interested in 0:04:47.560 --> 0:04:50.279 in kind of dialing down the temperature on social media. 0:04:50.320 --> 0:04:52.919 They've been really frustrated with Twitter over over the years. 0:04:53.080 --> 0:04:54.880 But they're starting to warm up to this company and 0:04:54.920 --> 0:04:58.240 starting to see some encouraging signs. Another really provocative story, 0:04:58.440 --> 0:05:01.640 I think, uh that's part to this coverage. It talks 0:05:01.640 --> 0:05:03.960 about a spate of nonprofits who are trying to perform 0:05:03.960 --> 0:05:07.800 political extremists in the same way, right Max that a 0:05:07.800 --> 0:05:12.360 a alcoholics anonymous works and helps people combat addition. UM 0:05:12.480 --> 0:05:14.800 tell us a lot about that one. Yeah, so it's 0:05:14.920 --> 0:05:19.159 boom times for deprogramming. De programming, I think is is 0:05:19.200 --> 0:05:21.479 not the not the politically correct term. I think de 0:05:21.600 --> 0:05:24.960 radicalization is the term that that that these um, these 0:05:24.960 --> 0:05:29.400 consultants and nonprofits prefer. But it's this idea that people 0:05:29.400 --> 0:05:32.720 who fall into extreme belief systems UM, you know, can 0:05:32.720 --> 0:05:35.960 be talked out of it. And treating these extreme belief systems, 0:05:36.000 --> 0:05:38.159 you know, and and and and they really run the gamut, 0:05:38.160 --> 0:05:41.400 you know, from like um radical um you know, islam 0:05:42.240 --> 0:05:45.160 radical Islamism to kind of far right you know, white 0:05:45.279 --> 0:05:49.240 nationalist UM type extremism, and and and and as you 0:05:49.279 --> 0:05:51.680 say that, they're they're treating it like, you know, like 0:05:51.680 --> 0:05:54.159 like an addiction, UM and and like it's it's something 0:05:54.200 --> 0:05:56.720 that that these people are are are compelled to do. 0:05:57.200 --> 0:05:59.560 One of the most interesting things in this article to 0:05:59.640 --> 0:06:01.200 me to a main character, and I mean it's a 0:06:01.279 --> 0:06:03.359 really breathtaking story. And I don't want to ruin the 0:06:03.400 --> 0:06:06.640 whole thing, but the main character, who's who's a young 0:06:06.720 --> 0:06:10.120 man who's who has fallen in with various extreme ideologies. 0:06:10.240 --> 0:06:14.560 He bounces between ideologies. It's not like he he embraces 0:06:14.640 --> 0:06:17.680 radical Islam, but then he falls into sort of far right, 0:06:17.800 --> 0:06:20.560 you know, white nationalist type behavior, and then he gets 0:06:20.560 --> 0:06:22.720 into snakes, you know, and and so it's just this 0:06:22.880 --> 0:06:25.840 thing where I think the Internet in particular has has 0:06:26.080 --> 0:06:29.400 you know, exploited vulnerabilities that you know, hamp that you know, 0:06:29.440 --> 0:06:31.840 some percentage of population have where they're just drawn to 0:06:31.960 --> 0:06:35.520 these ideologies. Internet kind of turbo charges it, all right. 0:06:35.560 --> 0:06:37.840 That's Max Staffkin. Features that are a Bloomberg Business Week, 0:06:37.839 --> 0:06:40.280 our special double issue, the Persuasion Issue. It's at a 0:06:40.360 --> 0:06:43.320 newsstands and online. Now coming up, Retired four star General 0:06:43.360 --> 0:06:46.440 stanmon Crystal on the US withdrawal from Afghanistan and dealing 0:06:46.520 --> 0:06:48.880 with risks in all walks of life. You're listening to 0:06:48.880 --> 0:07:02.080 Bloomberg Business Week. This is Bloomberg. This is Bloomberg Business 0:07:02.120 --> 0:07:05.880 Week with Carol Masser and Bloomberg Quick Takes. Tim Stinovik 0:07:06.080 --> 0:07:10.120 from Bloomberg Radio. We'll safe to say he knows a 0:07:10.160 --> 0:07:12.800 lot about the subject of risk, dealing with it, facing it, 0:07:12.920 --> 0:07:15.680 managing it, and Tim now writing about it. Retired four 0:07:15.680 --> 0:07:18.320 star General Stan mc crystal is former commander of the 0:07:18.400 --> 0:07:21.720 Joints Special Operations in Iraq and founder of the Crystal Group. 0:07:22.120 --> 0:07:25.560 His latest book, Risk a User's Guide, aims to help 0:07:25.600 --> 0:07:29.560 individuals and organizations mitigate risk. Yeah, he's lived in life 0:07:29.560 --> 0:07:32.080 filled with the deadly risks of combat. We know that. 0:07:32.120 --> 0:07:36.400 We began though our conversation along those lines by asking 0:07:36.440 --> 0:07:39.680 for his thoughts on the recent US military withdrawal from Afghanistan, 0:07:39.960 --> 0:07:42.720 where he also served. I was sad to see the 0:07:42.720 --> 0:07:46.520 way it played out overall, because many of us became 0:07:46.600 --> 0:07:51.320 very emotionally connected with Afghanistan. So it's important to remember that, 0:07:51.400 --> 0:07:53.480 because I also would tell you that's one of the 0:07:53.520 --> 0:07:57.360 reasons my views are biased by my personal opinion. I 0:07:57.400 --> 0:08:01.560 think that's unfortunate we pulled out, But I would say 0:08:01.600 --> 0:08:05.680 that I think President Biden made a courageous decision. I mean, 0:08:05.760 --> 0:08:09.800 he the accord that was signed in Doha by President 0:08:09.800 --> 0:08:15.800 Trump's administration essentially set a hard date of one May. 0:08:15.880 --> 0:08:18.360 So President Biden was faced with the choice of either 0:08:18.760 --> 0:08:23.200 aggregating that that agreement and extending the war, or following it, 0:08:23.280 --> 0:08:26.720 which is essentially what he did. People ask me if 0:08:26.760 --> 0:08:30.120 I agreed with it, and my answer is I respect 0:08:30.160 --> 0:08:32.360 a decision by the commander in chief. It's not the 0:08:32.400 --> 0:08:35.240 recommendation I would have made, but that's where system is 0:08:35.240 --> 0:08:38.760 supposed to work. Military leaders provide best device, and then 0:08:39.000 --> 0:08:42.240 president decides the top He is military officer. We're talking 0:08:42.240 --> 0:08:45.000 about General Mark Millary, Chairman of the Joint Chiefs and stuff. 0:08:45.040 --> 0:08:48.319 He called the twenty year war in Afghanistan a strategic failure? 0:08:48.760 --> 0:08:51.960 Why was that? And do you agree? Well, I couldn't 0:08:52.160 --> 0:08:54.680 argue with the fact it was a failure of somebody. 0:08:54.760 --> 0:08:56.679 If I tried to say, no, it's a success that 0:08:56.960 --> 0:09:00.240 I think they'd be disingenuous. However, I will say that 0:09:00.720 --> 0:09:03.920 it wasn't completely for naught. Afghanistan is a very different 0:09:03.960 --> 0:09:06.600 country than it was in two thousand one when we 0:09:06.640 --> 0:09:09.719 went back. So the reality is the twenty years of 0:09:10.000 --> 0:09:15.360 educational opportunities for females, for young people, and other advances, 0:09:15.400 --> 0:09:19.040 the Taliban are going to try to control a very 0:09:19.160 --> 0:09:22.760 different state, and I'm hopeful in the long term that 0:09:23.040 --> 0:09:25.360 either causes them to change the way they lead or 0:09:25.440 --> 0:09:31.360 open opportunities for different governance. I'm wondering General McCrystal, if 0:09:31.559 --> 0:09:35.000 the way that the United States left Afghanistan, if it 0:09:35.040 --> 0:09:37.880 turnishes the United States reputation in the view of countries 0:09:37.880 --> 0:09:42.319 around the world. Yeah, there's it certainly doesn't help. UH. 0:09:42.800 --> 0:09:46.880 There were some miscalculations that came out, and I don't 0:09:46.920 --> 0:09:49.600 find fault with the planning, but you know, things happen. 0:09:49.960 --> 0:09:52.200 But the reality is when people see it from afar, 0:09:52.679 --> 0:09:55.680 whether they are our potential enemies, in which case they 0:09:55.800 --> 0:09:59.640 might think less of us or our potential allies, and 0:09:59.679 --> 0:10:03.079 they're trying to decide if we are a reliable, capable partner. 0:10:03.720 --> 0:10:07.000 So in a very public world, as I'll describe it, 0:10:07.320 --> 0:10:09.679 every time you have a challenge like that, it has 0:10:09.760 --> 0:10:12.760 some effect on your reputation. It's like a commercial firm. 0:10:13.080 --> 0:10:14.760 We now need to work on that. We need to 0:10:14.760 --> 0:10:17.960 pay attention and work to try to recover a bit 0:10:18.040 --> 0:10:20.439 of lost ground there. Well, you know, the world continues 0:10:20.480 --> 0:10:23.520 to find itself in some incredibly risky situations. Your book 0:10:23.559 --> 0:10:25.520 is all about it, and I think about it's the 0:10:25.520 --> 0:10:29.280 financial crisis, the pandemic that we're still dealing with, today's 0:10:29.960 --> 0:10:34.480 increasingly UH crisis within the energy sector, cyber attacks, our 0:10:34.559 --> 0:10:38.280 leaders ignoring the signs. Are are there systems for detecting risk? 0:10:39.000 --> 0:10:42.000 Um not good currently focusing on the wrong signs and 0:10:42.080 --> 0:10:45.480 methodologies or risk in terms of obviously like pulling out 0:10:45.480 --> 0:10:47.800 of something like Afghanistan. Yeah, I would say, first, we 0:10:47.840 --> 0:10:51.520 don't assess risk very well because we're always externally trying 0:10:51.520 --> 0:10:54.000 to predict what they will be and when they'll come, 0:10:54.240 --> 0:10:57.920 and that's really just too hard because they're they're too varied. 0:10:58.080 --> 0:11:00.440 I think we need to be looking internal or what 0:11:00.559 --> 0:11:02.120 is it that you think a leader needs to keep 0:11:02.120 --> 0:11:04.600 in mind when it comes to diversity and assessing risk. 0:11:04.880 --> 0:11:07.720 I think we think about diversity too often is just 0:11:07.920 --> 0:11:11.880 gender or race or religious background. We're really talking about 0:11:11.920 --> 0:11:15.240 difference of perspectives. And so if we talk about bringing 0:11:15.440 --> 0:11:17.640 together a team, will call it a board of directors 0:11:17.720 --> 0:11:21.640 or anything else. If you have diversity on and on 0:11:21.679 --> 0:11:24.640 a superficial level of general and whatnot, you might not 0:11:24.800 --> 0:11:27.840 have diversity of perspective. You might have people all from 0:11:27.840 --> 0:11:31.040 the same background, all bankers or whatever, and so what 0:11:31.080 --> 0:11:34.480 they'll do is the lead blind spots, and diversity needs 0:11:34.520 --> 0:11:37.800 to be thought of not as equality. Equality is a 0:11:37.920 --> 0:11:42.480 legal right and a moral right. Diversity is an operational 0:11:42.559 --> 0:11:46.360 necessity for organizations. So it's ensuring that you've got people 0:11:46.400 --> 0:11:48.920 that are looking from every different angle and bring different 0:11:48.960 --> 0:11:52.440 experience of expertise. Have a question for you, and you know, 0:11:52.640 --> 0:11:54.320 I'm going to give credit where credits to do, because 0:11:54.320 --> 0:11:56.320 your team kind of shared some thoughts with us. But 0:11:57.080 --> 0:11:59.280 one of the things that came to their mind, and 0:11:59.320 --> 0:12:01.600 we think this is just spot on, is how do 0:12:01.640 --> 0:12:04.920 you feel US leadership dealt with COVID nineteen and what 0:12:04.960 --> 0:12:07.559 could have been done differently? Yeah, that's a great question. 0:12:07.600 --> 0:12:10.160 I think they fumbled it pretty badly. If you think 0:12:10.200 --> 0:12:13.920 about COVID nineteen. Although it is a dangerous risk, it's 0:12:13.920 --> 0:12:17.319 not ten feet tall, it's not unbeatable, and it wasn't unexpected. 0:12:17.800 --> 0:12:21.120 We have this kind of challenge every few years, and 0:12:21.240 --> 0:12:23.280 we know a lot about public health, so we actually 0:12:23.320 --> 0:12:25.400 know what to do about it. And then of course 0:12:25.400 --> 0:12:28.240 we've got to help with the scientific miracle of a 0:12:28.280 --> 0:12:31.400 fast vaccine. But if you think about from the beginning, 0:12:31.600 --> 0:12:35.480 what we really needed was clear communication, even admitting what 0:12:35.559 --> 0:12:40.880 we don't know, informing the national population. And then we 0:12:40.920 --> 0:12:44.400 needed a clear narrative, how is it is our nation 0:12:44.440 --> 0:12:46.679 going to deal with that? Tell people if we want 0:12:46.679 --> 0:12:49.320 to use the war analogies I think would have been appropriate. 0:12:49.679 --> 0:12:52.600 We asked every American to take part in the common 0:12:52.640 --> 0:12:55.760 defense of every other American, and then of course we 0:12:55.800 --> 0:12:59.239 go down the willingness to make decisions, overcome the inertia 0:12:59.640 --> 0:13:04.120 that that sometimes causes us issues, and the ability to 0:13:04.120 --> 0:13:06.480 be adaptable as things changed, like the rise of the 0:13:06.520 --> 0:13:11.120 delta variant. In almost every case, we fumbled it pretty badly. 0:13:11.440 --> 0:13:14.079 And I would argue that the seven hundred thousand Americans 0:13:14.120 --> 0:13:17.440 that we have lost is far more than we ever 0:13:17.480 --> 0:13:19.960 needed to lose. Do you think General the crystal that 0:13:20.360 --> 0:13:23.679 Americans would have made that sacrifice if it was communicated 0:13:23.840 --> 0:13:26.480 to them in the way that that you you you 0:13:26.520 --> 0:13:29.160 communicated it to us, because it does seem like right 0:13:29.160 --> 0:13:33.280 now there is not a sense of shared sacrifice among 0:13:33.320 --> 0:13:35.040 all of us right now with the way that people 0:13:35.320 --> 0:13:37.600 act when it comes to being asked to wear a mask, 0:13:38.080 --> 0:13:40.600 taking a vaccine, a vaccine mandate, that sort of thing. 0:13:41.679 --> 0:13:43.920 Jim Tim, You're right, I think that they would have. 0:13:43.960 --> 0:13:45.760 Of course, we couldn't approve it until we did it. 0:13:45.800 --> 0:13:47.959 But if we go back in times in our history 0:13:48.400 --> 0:13:51.280 when we have asked the American people to sacrifice and 0:13:51.320 --> 0:13:53.960 be a part of that, we hadn't very good results. 0:13:54.400 --> 0:13:56.680 And I think that's the only way to go when 0:13:56.679 --> 0:13:59.280 we're trying to do something that affects all of us. 0:13:59.520 --> 0:14:02.320 That was where hired four star General Stan McCrystal, founder 0:14:02.320 --> 0:14:05.440 of the Crystal Group. His latest book, Risk, a User's Guide, 0:14:05.520 --> 0:14:07.360 is out now and the Crystal Group, by the way, 0:14:07.400 --> 0:14:10.280 helped the city of Boston during the pandemic. Still ahead 0:14:10.280 --> 0:14:13.200 on Bloomberg Business Week the latest installment of our Bloomberg 0:14:13.240 --> 0:14:16.959 Business Week talk series, and it's with Dell Technologies founder, chairman, 0:14:17.000 --> 0:14:19.640 and CEO Michael Dell. We'll get into that. We've also 0:14:19.680 --> 0:14:22.640 got our cover story this week. It is on City 0:14:22.640 --> 0:14:25.680 Group CEO Jane Fraser, who is looking to change your 0:14:25.720 --> 0:14:28.320 mind about how we work and about cities. Come back 0:14:28.560 --> 0:14:30.520 and up next, we catch up with the president of 0:14:30.560 --> 0:14:33.920 the software maker Splunk, Teresa Carlson. She's spent about a 0:14:33.960 --> 0:14:37.400 decade as a senior executive at Amazon Web Services before 0:14:37.520 --> 0:14:40.960 joining Splunk earlier this year, and look, she definitely knows 0:14:40.960 --> 0:14:44.280 a thing or two about the cloud. This is Bloomberg 0:14:49.800 --> 0:14:53.760 Broadcasting from the financial capital of the World, Bloomberg eleven 0:14:53.880 --> 0:14:58.440 Frio in New York to Washington, d C. Bloomberg to Boston. 0:14:58.560 --> 0:15:02.400 Bloomberg one oh six does San Francisco, Bloomberg nine sixty 0:15:02.520 --> 0:15:05.280 to the country, Sirius XM Chto one nine team and 0:15:05.400 --> 0:15:08.760 around the globe, the Bloomberg Business app and Bloomberg Radio 0:15:08.880 --> 0:15:13.760 dot com. This is Bloomberg Business Week. It's a company 0:15:13.760 --> 0:15:16.720 with a market cap in access of twenty five billion dollars. 0:15:16.760 --> 0:15:19.520 In late last month, you might remember Piper Sandler came 0:15:19.520 --> 0:15:21.360 out saying it was a top pick heading into the 0:15:21.400 --> 0:15:24.080 fourth quarter. We're talking about the infrastructure, software and data 0:15:24.080 --> 0:15:27.480 platform company Splunk, where Teresa Carlson serves as president and 0:15:27.560 --> 0:15:30.760 chief Growth Officer. Her background is pretty impressive. She previously 0:15:30.840 --> 0:15:33.800 led Amazon Web Services public sector business for more than 0:15:33.840 --> 0:15:36.640 a decade, and in just six months at her new company, 0:15:36.960 --> 0:15:39.120 she says her work with clients to access us in 0:15:39.160 --> 0:15:42.640 secure data more important than ever. And there's no literally 0:15:42.760 --> 0:15:45.480 customer that I talked to before I came here that 0:15:45.720 --> 0:15:48.440 didn't tell me that their use of Splunk they said 0:15:48.480 --> 0:15:51.880 as mission critical for their business, and I think it's dim. 0:15:51.880 --> 0:15:54.760 It's demonstrated through the types of customers we work with, 0:15:54.840 --> 0:15:59.760 which are really the fortune one ninety plus of the 0:16:00.080 --> 0:16:02.360 and one hundred customers work with us. But it's going 0:16:02.400 --> 0:16:06.240 really well. We are moving to the clouds very quickly, 0:16:06.280 --> 0:16:08.200 and that's one of the reasons that came over here 0:16:08.240 --> 0:16:11.360 to continue to help our customers moved to the cloud 0:16:11.760 --> 0:16:15.120 and take full advantage of flunt cloud. How much was 0:16:15.200 --> 0:16:17.800 that moved to the cloud accelerated during the pandemic? And again, 0:16:17.800 --> 0:16:19.720 I know you've only been there for six months, but 0:16:19.760 --> 0:16:21.920 I know that you know about what's been happening there 0:16:21.960 --> 0:16:24.000 over the last eighteen months during the pandemic. I know 0:16:24.000 --> 0:16:26.360 that you have nineties three of the one fortune one 0:16:26.440 --> 0:16:30.120 hundred companies using the product um how much of that, 0:16:30.480 --> 0:16:32.600 how much was that accelerated during the pandemic and how 0:16:32.680 --> 0:16:34.880 much more room is there to grow? Well, we grew 0:16:34.880 --> 0:16:39.680 our annual cloud revenue over seventy for the tenth straight quarter, 0:16:40.360 --> 0:16:44.520 and so it just continues to show you the acceleration 0:16:44.560 --> 0:16:46.360 of the cloud. And I will kind of share some 0:16:46.400 --> 0:16:51.240 of my previous experience that AWS demonstrated this because I 0:16:51.360 --> 0:16:55.000 ran our public sector business and industries groups at a 0:16:55.200 --> 0:17:00.800 BS and during COVID, we saw acceleration within our sstomers 0:17:00.840 --> 0:17:04.040 like two years to three years of acceleration to the 0:17:04.080 --> 0:17:07.960 cloud during the pandemic because they could not get into 0:17:07.960 --> 0:17:10.760 their data centers they could could not get in and 0:17:10.800 --> 0:17:13.840 take advantage of their applications, so many of them had 0:17:13.840 --> 0:17:18.679 support or rebuild those applications very quickly. So especially if 0:17:18.680 --> 0:17:24.280 you're talking in mission critical areas like government, healthcare, financial services, UH, 0:17:24.400 --> 0:17:28.199 telco areas that really uh the world cannot do without. 0:17:28.280 --> 0:17:31.000 They have to keep going. So they had to figure 0:17:31.000 --> 0:17:34.640 out how they got use of their technology when many 0:17:34.640 --> 0:17:38.080 of their employees could not go into the data centers. 0:17:38.119 --> 0:17:41.760 So you saw the growth of cloud computing really moving fast, 0:17:41.880 --> 0:17:44.240 and I heard so many customers say it was such 0:17:44.240 --> 0:17:47.600 a differentiator for them in their business and their mission 0:17:47.640 --> 0:17:50.439 during that time. And it also accelerated the use of 0:17:50.480 --> 0:17:54.080 cloud skills. And of course one of the primary things 0:17:54.119 --> 0:17:57.760 that that like is as a data company, the customers 0:17:57.760 --> 0:17:59.800 need to be able to take advantage in use their data. 0:18:00.280 --> 0:18:03.639 So as a result of that, customers really started thanking themselves. 0:18:03.760 --> 0:18:06.840 How do I make that move more rapidly? You guys 0:18:06.880 --> 0:18:09.840 think too, uh. And you have such a great perspective, Teresa, 0:18:09.840 --> 0:18:13.160 because you were uh leading the Amazon Web services public 0:18:13.240 --> 0:18:15.280 sector business for more than a decade and then you 0:18:15.640 --> 0:18:18.160 of course are now it's blunk. But I am curious 0:18:18.160 --> 0:18:22.640 about data democratization is that truly achievable? And will there 0:18:22.680 --> 0:18:26.080 always be some entities or parties or countries China for example, 0:18:26.400 --> 0:18:28.879 that will have access to more and better data, and 0:18:28.960 --> 0:18:32.040 so there will always be some kind of imbalance and 0:18:32.160 --> 0:18:35.919 power plays or are our power powerful components when it 0:18:35.920 --> 0:18:39.280 comes to the data universe, Well, I don't know about 0:18:39.640 --> 0:18:43.600 better data that you know, efficiency of use of that data. 0:18:43.680 --> 0:18:48.320 And there's still no companies that drives interet innovation more 0:18:48.400 --> 0:18:51.440 rapidly than US companies. I mean, if you look at 0:18:51.480 --> 0:18:53.720 the use in the growth of cloud tools, you know 0:18:53.840 --> 0:18:56.680 aws that you know kind of started from scratch. They 0:18:56.680 --> 0:19:01.120 are they are uh data, they are services from day 0:19:01.160 --> 0:19:04.439 one when nobody really even knew what cloud was. And 0:19:04.440 --> 0:19:07.320 then you have Google, you have Microsoft, and you have 0:19:07.440 --> 0:19:11.359 this explosion of startups as a result of cloud computing, 0:19:12.000 --> 0:19:15.080 and the companies in the US and around the world 0:19:15.119 --> 0:19:19.320 that are developing as a result of cloud computing, the 0:19:19.440 --> 0:19:22.840 access and lead that they have with data is quite amazing. 0:19:23.160 --> 0:19:25.639 But I would say what's the most important is the 0:19:25.640 --> 0:19:28.720 ability to take advantage and use your data. And one 0:19:28.760 --> 0:19:31.520 of the big key trends that's happening is you know, 0:19:31.600 --> 0:19:35.280 open source data that's out there can be utilized in 0:19:35.400 --> 0:19:39.639 massive ways to actually understand a problem set. And you 0:19:39.720 --> 0:19:42.399 saw this as an example happening during COVID where you 0:19:42.440 --> 0:19:46.440 saw crowdsourcing going on so people could solve the problems 0:19:46.480 --> 0:19:49.840 faster of what was going on and have had deeper understanding. 0:19:50.400 --> 0:19:52.720 But in terms of the data elements itself, I would 0:19:52.760 --> 0:19:56.440 just say, um, if you look at all the companies 0:19:56.560 --> 0:20:00.159 like Talenteer, Conflent and others that have gone public, you 0:20:00.160 --> 0:20:03.320 are seeing companies that are truly data driven, and they 0:20:03.359 --> 0:20:06.000 have slices of the way they use their data and 0:20:06.080 --> 0:20:09.160 tag it that allows these companies to really do things 0:20:09.160 --> 0:20:11.480 that they never thought of doing. Right now, they can 0:20:11.560 --> 0:20:14.080 throw their data in somewhere and it gets organized. They 0:20:14.080 --> 0:20:16.240 don't have to put it in all these tables. That's 0:20:16.320 --> 0:20:19.119 Teresa Carlson, president and chief Growth Officer at the publicly 0:20:19.119 --> 0:20:21.879 traded software maker and data company Spunk. You're listening to 0:20:21.920 --> 0:20:24.240 Bloomberg Business Week. Coming up next, we pick up on 0:20:24.280 --> 0:20:26.919 our conversation from last week with the founder, chairman, and 0:20:27.000 --> 0:20:30.920 CEO of Dell Technologies, not other than Michael Dell, including 0:20:31.000 --> 0:20:34.400 his thoughts on the next big technological breakthrough and facing 0:20:34.440 --> 0:20:36.800 down carl Icon gotta say. In the book, he talks 0:20:36.840 --> 0:20:40.040 about having dinner at Carl Icon's house and Mrs Icon 0:20:40.200 --> 0:20:42.680 cooked for them. It's a great read. And that's another 0:20:42.800 --> 0:20:55.240 edition of Bloomberg Business Week Talks. This is Bloomberg. You're 0:20:55.280 --> 0:20:59.200 listening to Bloomberg Business Week with Carol Messer and Bloomberg 0:20:59.280 --> 0:21:04.679 Quick Takes from Bloomberg Radio. So last week we featured 0:21:04.680 --> 0:21:07.440 a little bit of our conversation with Michael Dell. It 0:21:07.520 --> 0:21:09.359 was when he talked about the new term outlook for 0:21:09.520 --> 0:21:12.560 Dell Technologies and really the broader technology sector. There's so 0:21:12.680 --> 0:21:15.159 much going on, certainly in the financial markets when it 0:21:15.160 --> 0:21:17.640 comes to tech stocks, and really just broader in terms 0:21:17.680 --> 0:21:20.320 of some macro themes. Well, in part two of our conversation, 0:21:20.400 --> 0:21:23.680 we're going to dive deeper into the billionaire innovator's origins. 0:21:23.840 --> 0:21:26.200 We also got his thoughts on the labor crunch taking 0:21:26.240 --> 0:21:28.879 place across the US and also what he thinks is 0:21:28.920 --> 0:21:33.000 the next big technological breakthrough. Here's a hint Ai is 0:21:33.040 --> 0:21:35.199 going to play a big role. That's a pretty big 0:21:35.280 --> 0:21:38.240 hint him just gonna say. A portion of this interview 0:21:38.320 --> 0:21:40.439