1 00:00:00,000 --> 00:00:06,680 Hello everybody, here we are at RSC 2009, the Rational Software Conference in Orlando, 2 00:00:06,680 --> 00:00:07,680 Florida. 3 00:00:07,680 --> 00:00:10,000 And I've got another guest here, would you like to introduce yourself? 4 00:00:10,000 --> 00:00:15,320 I'm Ken King, I'm the Vice President, responsible for both the tele-logic integration and I'm 5 00:00:15,320 --> 00:00:17,120 the Rational Systems Business Leader. 6 00:00:17,120 --> 00:00:21,200 This is actually your second time I think on RedMonkey, I remember back at the last 7 00:00:21,200 --> 00:00:25,520 year at RSDC as it was called then, we were talking about the tele-logic acquisition. 8 00:00:25,520 --> 00:00:26,520 It just happened. 9 00:00:26,520 --> 00:00:31,520 That's right, and I thought it would be a good time, that being I guess a little over 10 00:00:31,520 --> 00:00:37,120 a year or so ago, to catch up on how tele-logic and system stuff has been going at Rational. 11 00:00:37,120 --> 00:00:41,320 Well, I think the tele-logic guys will tell you it's been fast and furious. 12 00:00:41,320 --> 00:00:45,880 A lot of activity around integrating tele-logic into IBM. 13 00:00:45,880 --> 00:00:50,840 That involves integrating their people, integrating their business processes, and now they're pretty 14 00:00:50,840 --> 00:00:55,520 fully integrated for the most part into IBM, using IBM's business processes, and of course 15 00:00:55,520 --> 00:00:56,520 integrating their products. 16 00:00:56,520 --> 00:01:00,520 We've had a lot of interactions with our customers. 17 00:01:00,520 --> 00:01:05,120 We've now got a very integrated sales force as well. 18 00:01:05,120 --> 00:01:09,120 The tele-logic team is well integrated. 19 00:01:09,120 --> 00:01:15,520 We've built out a systems organization within Rational, and it's made up of both tele-logic 20 00:01:15,520 --> 00:01:20,120 and Rational people, but a lot of the core competency comes from the systems capabilities 21 00:01:20,120 --> 00:01:25,120 and the system's knowledge that is in the heads of the tele-logic team. 22 00:01:25,120 --> 00:01:29,120 So we've really -- I guess I could say the best way to say it is in the last year, we've 23 00:01:29,120 --> 00:01:35,120 really accelerated our focus on the complex and embedded systems market, leveraging the 24 00:01:35,120 --> 00:01:38,120 tele-logic team as the core construct or core element of that. 25 00:01:38,120 --> 00:01:42,120 There's also been a lot of work done around the tele-logic products. 26 00:01:42,120 --> 00:01:47,720 The initial -- we call it blue wash, which is transitioning the products into IBM's environment, 27 00:01:47,720 --> 00:01:49,720 was delivered last November. 28 00:01:49,720 --> 00:01:56,720 But the most recent release, which came out in June, basically the entire tele-logic portfolio, 29 00:01:56,720 --> 00:02:01,720 and actually I think today -- today is the official day of availability of the product set -- has 30 00:02:01,720 --> 00:02:05,720 got a lot of new capabilities and functions and features across the tele-logic portfolio. 31 00:02:05,720 --> 00:02:10,720 And we've actually announced -- and this includes some Rational products as well -- we've announced 32 00:02:10,720 --> 00:02:13,720 the Rational Software Platform for Systems. 33 00:02:13,720 --> 00:02:14,720 Right. 34 00:02:14,720 --> 00:02:20,720 So it basically delivers an integrated environment for helping customers use software end-to-end 35 00:02:20,720 --> 00:02:24,720 across the entire software lifecycle in a complex or embedded systems environment. 36 00:02:24,720 --> 00:02:29,720 And has capabilities for integration with mechanical, electronical elements of those systems as well. 37 00:02:29,720 --> 00:02:35,720 So, you know, there's some products that make sense and fit in both the IT space and the systems space. 38 00:02:35,720 --> 00:02:39,720 But we're focusing very aggressively on ensuring we have that integrated environment for systems as well. 39 00:02:39,720 --> 00:02:43,720 A lot of the products in that platform come from tele-logic. 40 00:02:43,720 --> 00:02:44,720 Some come from Rational as well. 41 00:02:44,720 --> 00:02:51,720 But the point is, is that by integrating and leveraging the capabilities for systems coming from tele-logic, 42 00:02:51,720 --> 00:02:58,720 like Rhapsody's strong SysML skill capabilities, Doors' ability to manage really complex requirements 43 00:02:58,720 --> 00:03:05,720 across a hierarchy of systems, subsystem, component level, the capability and focal point for managing product 44 00:03:05,720 --> 00:03:07,720 and portfolio management, and I can go on and on. 45 00:03:07,720 --> 00:03:08,720 Right. 46 00:03:08,720 --> 00:03:13,720 You know, even system architect and very complex DOD and aerospace environments. 47 00:03:13,720 --> 00:03:21,720 These are all core capabilities for us to really accelerate our skills and our competencies in the system space. 48 00:03:21,720 --> 00:03:21,720 Right, right. 49 00:03:21,720 --> 00:03:24,720 So this has all been going on in the last year. 50 00:03:24,720 --> 00:03:34,720 It's been, as I said, it's been a wild and woolly year because, you know, integrating people, integrating processes, and integrating technology, you know, that's a lot of activity. 51 00:03:34,720 --> 00:03:50,720 At the keynote this morning, Al Zola was up there talking, and in an interesting way, you know, thinking about it a year or so ago, connecting together all the dynamic infrastructure stuff that Tivoli talks about with the kind of systems-oriented stuff, if you will, and rational, 52 00:03:50,720 --> 00:03:54,720 and rational, which seemed like a sort of a viable connection to be had there. 53 00:03:54,720 --> 00:04:07,720 And so it seems like there's been some sort of pulling in of telelogic concerns, if you will, into, you know, very high-level IBM thick and getting some cross-brand sort of collaboration going there. 54 00:04:07,720 --> 00:04:08,720 Absolutely. 55 00:04:08,720 --> 00:04:12,720 You know, as you look at, and you've probably heard a lot about Smarter Planet. 56 00:04:12,720 --> 00:04:13,720 Sure. 57 00:04:13,720 --> 00:04:25,720 And our more recent leadership has been in the Smarter Products side of Smarter Planet, which is enabling customers to be able to develop and produce products that are smarter. 58 00:04:25,720 --> 00:04:36,720 Smarter cars, smarter planes, smarter medical devices that leverage more effectively sensors and the software in those products for greater levels of innovation. 59 00:04:36,720 --> 00:04:40,720 But that's not where the story ends. 60 00:04:40,720 --> 00:04:51,720 Those products, then, to make them really smart and to help deliver, you know, capabilities for a much smarter planet, those products have to be consumed, consumed in the ecosystem. 61 00:04:51,720 --> 00:05:02,720 So how does a car interact with traffic systems to make a more efficient traffic environment and have less, you know, issues with smog and so forth? 62 00:05:02,720 --> 00:05:05,720 How does that car interact with that system? 63 00:05:05,720 --> 00:05:07,720 Then the management side of it. 64 00:05:07,720 --> 00:05:08,720 How do you develop the management capabilities? 65 00:05:08,720 --> 00:05:10,720 I love using the iPod example. 66 00:05:10,720 --> 00:05:13,720 And when you think about an iPod, what's really compelling about it? 67 00:05:13,720 --> 00:05:18,720 Well, people love the small footprint of it and how they can get their songs easily. 68 00:05:18,720 --> 00:05:25,720 But the thing that really drove it to the kind of market share leadership it has is how it's consumed and managed. 69 00:05:25,720 --> 00:05:34,720 So how does it relate to iTunes and how easy it is to have a web-based environment for being able to bring your tunes or your music into the iPod? 70 00:05:34,720 --> 00:05:36,720 And how do you manage that? 71 00:05:36,720 --> 00:05:37,720 And how do you manage that? 72 00:05:37,720 --> 00:05:47,720 The ecosystem around that of how Apple has successfully integrated that with the music distribution system and music suppliers and the financial and business model around that. 73 00:05:47,720 --> 00:05:57,720 In a lot of cases, that's where the innovation comes in in these new manufactured products or systems is in how they interact with their ecosystem, how they're consumed and how they're managed. 74 00:05:57,720 --> 00:06:13,720 And that management asset of it or aspect of it, which is what Tivoli's core competency is, service management, asset management, that really integrates very nicely with our smarter product story when you think about it from an end-to-end perspective. 75 00:06:13,720 --> 00:06:17,720 Great. Well, thanks for spending all this time to catch us up on the telelogic blue washing, as it were. 76 00:06:17,720 --> 00:06:17,720 Happy. 77 00:06:17,720 --> 00:06:18,720 It's always good to hear about it. 78 00:06:18,720 --> 00:06:19,720 Happy to do it. 79 00:06:19,720 --> 00:06:22,720 And hopefully, you've seen a lot of the telelogic people roaming around our seats. 80 00:06:22,720 --> 00:06:23,720 Sure. 81 00:06:23,720 --> 00:06:26,720 Hey, there's a whole track for system stuff, if I remember. 82 00:06:26,720 --> 00:06:35,720 Yeah, we call it innovation and it's a very extensive track as well and very well represented. 83 00:06:35,720 --> 00:06:38,720 You'll have to make a little pin with a soldering iron for them. 84 00:06:38,720 --> 00:06:40,720 Maybe they can be their distinguishing mark. 85 00:06:40,720 --> 00:06:42,720 I'm going to come up with something better than a soldering iron. 86 00:06:42,720 --> 00:06:43,720 But I agree, yeah. 87 00:06:43,720 --> 00:06:50,720 I mean, it's becoming a much more significant part of our go forward, go to market strategy. 88 00:06:50,720 --> 00:06:51,720 Right. 89 00:06:51,720 --> 00:06:52,720 And investments. 90 00:06:52,720 --> 00:06:57,720 So, you'll see more of it as we go through the next year and we'll probably have a lot more to talk to you about at next RSC. 91 00:06:57,720 --> 00:06:58,720 Well, that sounds good. 92 00:06:58,720 --> 00:06:59,720 Well, thanks again.