Live from Informatica World 2022 in Las Vegas

You can also listen to our radio show at two pm Eastern Time on Bloomberg Radio or watch us on YouTube. Search Bloomberg Global News for our world today largely about data, and the data is getting more intelligent, if I can say it that way. It's also getting much more productive, and it's all happening up in the cloud. So on that and so much more. We're so delighted to be here in Vegas at Informatica World two. And joining us right now is the CEO of Informatica's um Ahmed Wally.

Excuse me, and you guys are all about cloud data. So great to be here. How are you good to be here? And Tim welcome to Welcome to Vegas. Uh what we'll tell us about. Like, there's just so much going on in this world, and I think we're trying to figure out kind of where we are in terms of the broader economy, the broader marketplace. How do you see it? Because you deal with so many customers that

we cover on a regular basis. Oh yeah, we're a global companies, so we see literally every customer across every industry, vertical, across the globe. I mean there's a lot happening macro and I think we can all in some ways almost some sometimes just completely in uni ourself or not look at it. I think I come back. Whatever is happening in the current term will come and go. But the fundamental things that are changing is every enterprise is called digital.

Every enterprise is trying to become intelligent using the increasingly coming off the pandemic, coming off the pandemic and the two years of pandemic, just completely exponential growth in in in in digital and in fact, the point that we made is that digital is no more a differentiator, that's a given. How do you get intelligent? And for that, how do you become data driven? And that's what we're all about, and that's what we're seeing increasing tail winds

and demand for that. Everybody wants to like, hey, how do I harness the power of data. I have to manage customers, children and environment, likeness, managed supply chains, managed drug discoveries, so those become important and without data, that would not have happened. And and and look at during the pandemic the vaccine development happened in the shortest time possible.

Why and we were part of that process bringing the best data, rapidly, looking at trial data, getting influence out of it so you can say, well, this vaccine makes sense to go out. That's what is happening and that's what we see. What specifically are you hearing from companies

about the macro economic environment? And you know, we get a good view of it, not just with the analysts we talked to you, but with the CEO as we talked to what we see from earnings reports were in the midst of earnings right now, we're starting to see inventory levels, for example, come up at retailers. They need the data to sort through those inventory levels to help understand what consumers are going to buy, when they're gonna buy it, and control those levels. What are you hearing

from customers about what's going on in the macro economic environment. See, there're two things we're hearing. Number one is everybody is definitely cautious looking at the current economy kind of does

does give you what's going on. But at this same time, you know, we have so many great customers who spoke here and I'll give you an example, American Airlines during the middle of the pandemic, and they basically invested in our platform, and I'm like, what are you doing but the whole I mean the whole air Lines, But they realized that, Look, ultimately pandemic will be over, This macro will be over when we come out. What do you need to do? Manage your customer experience better? How do

you do it? Understand your data better? Government better? I want to give it to every user across the enterprise. So I think that's what I'm hearing from customers are things that are the data related foundational things are here to stay. Now. You may stagger it, but you cannot avoid investing in it. But yes, the current macro does not get away from you. You've got to look at that every day and it gives you a little bit of caution. But these are fundamental things that you have

to invest in. You know what I think about I always think about our investor audience, a very smart audience, but they're trying to be like, Okay, I understand. We talked about data all the time. We talk about the cloud all the time. What is it that you think an investment audience has to understand about, you know, kind of the sophistication of data, how it's becoming more intelligent,

Like what does that mean? And what is the you know, potential top and bottom one, especially for publicly health companies. So I'll give you a couple of examples. Today morning I hosted a panel. We are three customers, you know, one from g Digital, one from Freddie Mac and one from Texas Health and Hospitals. And you know, and I'll give you other examples like Kroger and all. So Kroger as an example, just start to their CEO. There you go.

So Kroger is an informatic customer and what they were using us for is he how do I get the right product at the right shelf at the right time. It has multiple benefits. It's a lost revenue opportunity that you want to await. Plus also if you get the wrong product and the right shelf, you're basically wasteedge which is meat needs at more cost. And then you're managing a supply chain that but if I'm a customer, I want gratification. So it really goes from the revenue to

cost to obviously managing customer expectations. But weren't companies doing that before? Like that, That to me is kind of mind blowing. You would have thought that was it. See, if you look at a retailer, the margins are the thinnest, right,

how do you manage your supply chains? So you basically make sure that you're not using products on the shelf at some point, right, if you get the right product, if you have you know, perishable goods and you throw it away, that's cost or if you have an empty shelf, then you basically lost revenue. How do you get better at it? And how do you do more and more just in time? Look at the supply chain problem, are you right? You go to all the other end. Healthcare

is a huge thing in it. So when John was talking from Texas Health and hospitals, right, how do they look at patient care to make sure that when somebody is coming in they can provide the most personalized care in time for that reduces again the supply chain of healthcare cost but saves lives. So there are so many applications like that that when we talked to customers that

they apply DAT or two. One thing I wanted to because Tim and I talked about coming off of milk and on the West Coast, we talked to a lot of companies and they said, even in a volatal environment where companies are taking about costs and wondering about what's next, the text spand is crucial. What can you tell us about your seeing in terms of companies when it comes to capital expenditures, especially when it comes to tech in your world. I think we are going to continue to

see investment in critical areas of tech. I don't think that'll go away. And I think they areas of what's critical tech in here? From critical in me? What drives the piano? Like what you began, Hey, is it gonna depending upon the industry and it's gonna help me drive revenues or it's gonna help me manage cost or both.

Ultimately that's where it does. It's simple piano. As a CEO, I look at that where does my spend and is it going to help me drive more revenues or manage my cost And that's where depending upon the industry, Hey, I want to understand churn better, I understand acquisition better, or oh my gosh, I have a huge amount of waste in my supplies and how do I reduce that? People are going to go invest in that kind of technology versus nice to have sidebars something. What if that

fluff is going to go away? How are you thinking about the ownership of data? As we are increasingly in a world where data points exist everywhere, sensors to pick up that data exist everywhere. What about from the perspective of a normal human being, perhaps our investor audience, but also from the perspective of your customers. Where does the ownership conversation come in there? That's the one that's changing a lot. So data is one of those things. It's

across the entire enterprise, right take a large organization. Every functional unit has their data and they manage it for their own purpose, you know, or if I'm the CMO, I'm managing it for my own you know, demanded purposes that if I'm the chief financial officer. But if you see the rise of the chief data officer, that really happened. And you know, serios also rules during the crisis more from a governance and compliance and we've been working with

the studios diligently since then. In fact, we host SUDIO councils too, and that if you watch more and more and more, and the companies now have cdeos and from compliance oriented roles, they've gone into more business oriented roles and they're going in the strategy strategy. So hey, as a CEO, I like, okay, my functional units have the data, but I wan't like I won't understand the customer sentiment across everything. You know, my customer support, my marketing data,

my sales data. Serios are becoming more and more important. And that is, by the way, good indicator of data becoming more and more in the sea. Are there limits the geographically to what you can do when it comes to analyzing data for a customer who's based in Europe versus a smer based in the United States, Yeah, I would use the limit. The world I would use is that there are differences. So you're right, like GDPR came

along multiple years ago, so I think in Europe. In certain countries there's more sensitibility to how you can use the data, whereas in different countries it may be less. So that is true even different states like California. I mean, the laws are coming up across the board. I kind of believe that that's going to be a new normal where we'll have to manage data, the privacy and the security data while making sure. So what we see that gave rise to is governance, and that's a huge vector

of business group. So here's what I hear from cio CIOs as us. I want to democratize data, but I don't want it to be a wild West to govern it for me. So and that's that we see that that has risen in the last couple of years, like very much. I want to create a data lake so everybody can go have added sharing of data. Yes, so I won't I want one place. I want to democratize data, but don't make it the Wild West, because it may not be compliance, it may be brand issues if the

wrong data goes into the hands of wrong users. I mean, look at the pharmaceutical industry. Maybe in drug discovery and I also bring sales and marketing. You can put data together to understand, but different people should have access differently. That's what we see here. All we see that in the financial industry in terms of the division. Hey listen, UM, got a couple of minutes left here, and I do wonder you know, you were talking about supply chains and

helping other companies and your clients manage that. When you look at some of the big macro issues, whether it's higher prices, supply chains, labor constraints, what's type of mind? What what of those big macro issues are affecting you. Guys at inform Aerica, you know, we obviously look at customers, uh, different industries and up operating differently. I look at obviously text spend carefully, I look at business priorities very differently.

Which business priorities are getting optimized differently. The one beauty of the data businesses I caught it be a very recession receiving because okay, everybody needs are eight time you drive revenue. In a bad time, you drive down cost and and by the way, in the bad time, you also want to manage with me for the power for the future, So you need data for that. And that's what we see generally helps I see initiatives can go from growth growth, growth, growth to manage cost cost cost

cost cost on a little bit of both. So and different industries on different places right now. But can you get all the workers you need? That is definitely I think it's a challenge that all of us face. Although having said that, I do believe that where the economy is right now, the second half of this hell will

actually stabilize a lot of things. You do. Yeah, I think, because look up when when when when economy starts looking shaky, actrician always goes down, people get settled, people won't comfort people in safety. So our goal has always been, hey, we gotta we have a platform company. Well, the product company helped we give a lot more opportunities for people to come and do innovative work. And I do see that across the board. When I talked to my peers,

it was really a difficult time for everybody. But I think, I think it will become very different in the second before we let you go, just in thirty seconds, you've been with Informatica for quite a while. Well, it was a public company then when it was taken private, now taking it public again just a few months ago what's the main difference in the company now when it was versus when I was prid were Well, I mean we were a single product on premise license company. Today we

have a multi product cloud native platform company. We have a much bigger tim We only sell subscription and your cloud native. And the biggest thing I show you is that we were a less than fifty million dollars subscription at our company in six years ago. This is we've guided to a billion dollars in subscription change. So it's the biggest startup that got created within an existing company. And that's what you're proud of. It's a public private preference.

Well you know what that can be days today the shares are higher, so probably a good day to be company. Well, yeah, thank you so much and thanks for hosting us here at Informatica World. We really appreciate it. Thanks for coming, the CEO of Informatica. You're listening to Bloomberg Business Week with Carol Masser and Bloomberg Quick Takes. Tim Stinovic on Bloomberg Radio. Shares the Facebook meta, by the way up for the one percent. This as the company has wrapped up.

It's an annual shareholder meeting today a flurry of headlines, including one where Mark Zuckerberg of Meta Facebook says that Reel's is a top priority for company, which leads us so well to a story in the upcoming new issue of Bloomberg Business Week out tomorrow. Yeah. The story written by Brad Stone and Sarah Fryer. Sarah Fryer is Big Tech team leader for Bloomberg new She's also the author of the fantastic book No Filter, The Inside Story of Instagram.

Sarah joins us this afternoon on the phone from San Francisco. Also with us is Joel Webber, the editor of Bloomberg Business Week. He's in the Bloomberg Interactive Broker studio back in New York. Joel, I want to start with the news that I learned in this piece that Instagram's co founder Kevin Sistrom just a few years ago. Uh, it's urged that Facebook bosses by an app called Musically that

ultimately became TikTok. They passed on it, and now you have TikTok stealing a lot of thunder, especially when it comes to younger consumers that Facebook's Instagram wants. Yeah, that was a really uh juicy little tidbit um from from

inside the world that is now now meta. And you know, I think if you zoom back and kind of think about what's made meta meta alt meta, is that it was obviously Facebook's relentless acquisitions and innovations, and a lot of those innovations UM were actually kind of copycat efforts,

and sometimes that went really well. If you kind of think about what what some of the features that were built into two Instagram and the filters and sort of that snap vibe, it really allowed them to kind of like overcome the competition that they once had with snap Uh. And on the other side, they've they've had a few things that have floundered, So it's not like that that strategy that has kind of helped um. You know, Facebook

reached three billion people around the world always works. But they have ran up against a competitor the likes of which they have not really had this much of an existential dread about. And that competitor is TikTok. And part of what makes TikTok go so well and has taken off during the pandemic is that and its ability to capture this youth culture. Is this algorithm that really surfaces people who who maybe you have never even used the platform before, and it harnesses it is this drug and

there's a sense of discovery. And when you tap into what Facebook has, it maybe doesn't feel the same. And the you know, as Facebook here tries to pivot into the metaverse. Reels is the Instagram product that Sarah Fryer has written about here. Facebook is putting meta, is putting a ton of weight on reels, this feature within Instagram to be the thing that takes on TikTok. How is that going so far? Sarah, Well, it's it's really a big gamble. I mean, what they're doing here, it's hard

to oversee how much is changing Instagram. Instagram teams to prominence based on its aspirational lifestyle photography. You know that the stuff you would go and you'd scroll and you see people their vacations, they're having their nice meals. Um, this this reel experience. It's all videos, short form video,

and they're forcing it into every user feed. So when you scroll through those nice photos, you're going to get these videos of sound, right, and if you quick on them, you're in in real you can't it's like hard to get out of it. I I've you know, watch people try this um and and just get really confused and like, Okay, what's happening to Instagram? And it might even get more redesigned in that direction. You might eventually open Instagram and

it's all the short form videos basically essentially TikTok. So it's not just that they're trying to copy TikTok, it's that they are basically completely reinventing Instagram in the process because they're so desperate to bring back that team demographic, which the Zuckerberg sees as the future. I mean, these people they develop their habits, and they have their habits, they have their communities, they've established it, and he wants

them to be establishing it on his platforms. And Instagram is his It's become like his Swiss Army knife of the team demographic, which has made Instagram incredibly confusing and pack the features, and um, you know, it's a risk. It's a big risk because it's such an important property.

It's it's the main revenue driver for Facebook, the main revenue growth driver, I say, and you know they're they're risking it to tibet the farm on becoming TikTok walk us through that confusion that that users are are confronted with when they now launch Instagram, which you used to be this well curated, square boxed uh platform, right um, and you could curate it and it was awesome and very simple. What what does it look like now and

what could it become? Because you have some interesting reporting on that well. In the way I described it in the story, it's just like it's like you're you're cruising to required art gallery, neutral in the corner, and you're in a dance party. It can be very jarring. And if you're in the mode of silence images and then you go into sound, um, your brain is just working differently. And so I think that what people come to Instagram for um. People have spent years, spent more than a

decade curating who they follow on Instagram. Now when you go to Instagram, the top thing you are going to get it suggestions. Your feet is going to become full of stuff that you didn't say you wanted, and a lot of it is going to be experimental and not based on what you've been following before. And that's that's

a huge bet for Facebook at large. They want to become more about discovery, for the last fourteen years since the invention of the New Seed, they've been really good at showing you what they already know you want to see. Now it's about showing you stuff that you never even knew you wanted to see, which TikTok is really good at and Facebook is really not yet, Sarah. These platforms are nothing without the people who use them, without the people who create a content. And you spoke to some

influencers who have done pretty well on TikTok. What's Instagram doing to try to court them and is it working well? The number one thing that matters to these these content creators right now is money. So if Instagram says, listen, our algorithm is only going to show people your content if you're making real. They're going to make real because they have to. This is their livelihood. But they're not

gonna like it, um necessarily. And and so I suppose that creators who said who that listen, Like, you know, they got me here, I have to make reels or else, um. But you know, it's it's not the same, Like I'm not connecting with my audience the way I used to. And you know, I just wonder what happens when that money pods drives up and and they're not you know they really they have to see the creators. They have

to create a culture around it. You know, when you go and talk to somebody on the street, they're not going to know necessarily what reels is. They know what Instagram is, they know what Facebook is. Um, do you know what TikTok is? But it's using things to describe too regular people because they're not part of this creator world. Um. These influence are the people who creates this content. They

are the ones that are driving the culture. And Instagram needs to prove that it can create new stars on Instagram through this strategy, not just keep the old ones writing it out until a new classroom comes along. Wow. Another great deep dive for me. Sarah and understanding cert like this world and Meta and Facebook. Sarah Fryer, big tech team leader at Bloomberg and Jill Webber, the editor

of Business Week. This is Bloomberg Business Week with Carol Masser and Bloomberg Quick Takes Tim Stinovic on Bloomberg Radio Live at Informatical World two in Vegas. And you know mckensee noted earlier this year, UM and ar think at the end of last year, they talked about financial data created or use throughout the life cycle of financial services.

We know financial data, tim it's constantly about accumulation of it, uh, making that their security in the use of it, but also increasingly making sure that when it comes to the financial markets risk off thinking about those factors right and then taking that data and making sense of it. Well, that's where Peter Coup, Vice president and chief of Financial Strategist at Informatica comes in. He's with us on site at Informatica World. Peter, how are you great. How you

guys doing We're doing pretty well. Um, to help us understand what the environment looks like right now from a financial services perspective, because you're the guy out there working with financial services companies to help them make sense of their data. You know, financial services is obviously a heavy producer of data. They also consume it as well, but data is just really a byproduct of the interactions and

transactions a part of the industry. What we're seeing from our customers, whether it's wealth management, banks, the insurance industry, they need to grow the business. They need to identify ways and opportunities to make money off of their existing customers. They also need to provide better customer experience. At the same time, they're dealing with all the regulations that we know about, and when a new regulation comes about, the

old ones don't go away the regulators anymore. And the regulators are not only just demanding good reports, they're asking what data did you use, where did it come from, how was it produced, etcetera. We talk about risk management, I mean, look what the world today with geopolitical risks, climate change, etcetera. Organizations really need to have a better handle of the information that they need in order to monitor as well as and ensure that they are reporting

their risk positions accurately. And then at the end of the day, organizations have to be more agile than ever when time equals money and you have to respond to a threat or an opportunity, no longer can organizations rely on day old data has to be real time, all right. So these are the macro level business drivers that's fueling investments in data governance, data management, all the things that Informatica is doing. But keep in mind also we live in a world where data privacy is no longer a

biproduct of it t it's front and center. It's a board level discussion. We've seen gdp R setting mandates here in the US with c c p A and c r p A. What we're now seeing is the organization that's all about transparency and increase reporting and really tracking everything when it comes to rate out of the financial crisis. It did, and it's also protecting information about our customers or employees. Not only is it bad business practice not to do so, but at the end of the day,

reputations can be impacted forever. What I want to ask about, Peter, when it comes to the financial community, and I think about Bloomberg. We're so familiar with the just tons and tons of data and then putting it to use and making it productive, but it's also about securing it right and making sure it is safe, it's protected. But it's also something that helps your top and bottom line your data collection. So the financial community, you know, often has

done so much in house. Now we're talking about right the profusion of the cloud. How do you guys adapt to that and meet their needs? So we've sen meet their concerns. There's a huge paradigm shift that has occurred in the financial services industry in the last decade. When you talked about cloud computing ten years ago, people are like, I don't know if I want to have my fund exactly.

You know, is it is it? Literally? Uh, software as a service, as an infrastructure a service, etcetera, etcetera, And it's all of the above. Organizations want to ensure that they're agile, that they can expand when they need to, and it's less about having your own data centers, your own people. I can subscribe to analytics or AWS. I can go out and purchase Salesforce as my CRM solution. But the challenge is that you have more data that's being proliferated in the cloud and those old systems that

still remain on premise, they're not going away. So you have to ensure that you can manage and govern all that data by directionally and that you have transparency and visibility as to what data is being created or consumed in the cloud. Can you give us an example when you look out at the landscape, because you've been doing this for a long time, what does the next five years look like in terms of what a regular person

would experience when they interact with financial services. As a result, of the analysis of data, like what will they be able to do differently because you can crunch those numbers. But to your question average consumer, you know, we talk about and we hear about artificial intelligence and machine learning right in the context of credit checks and sorts of things. But here, you know, we see robo advisor technologies, lenching AI technologies the ability to actually provide the level of

service that a human being can. I don't think we'll ever get replaced by technology in itself, but it's helping, right, And it's allowing organizations to be more connected and integrated to not just the consumer through their mobile app or on the website, but as part of their daily lives. And what we're gonna see is more people and consumers really looking at their financial situations as a partner for

life rather than just a transactional relationship. And data and information is going to be required in order for these firms to provide the level of service and expectations that

their customers demand. Just kind about a middle left. I have to ask you, because we've spend so much time to talk about E s G. And you do feel like you're coming to this moment of reckoning where people regulators, we start come out of damos, you know, asking for some oversights and metrics so that we can really understand what it's about. How can you guys help with that process, and again just about a lot of data that you have to deal with, collect, integrate from third parties and

so forth. Place has to be open source, right, it can be, But the thing is, if you don't know what data really is there, how they should use it, where does it come from, can they trust it? You're going to find organizations suffering from the same challenges that they've been dealing with each and every day. E s G just puts another requirement on the table that's forefront, and we're going to see more and more organizations realizing that they have to do something about the way they

manage and govern data. They can't rely on the people that they have and the old technologies. This is the time for the financial services industry to innovate and that's what Informatica is doing. All right, really fine. I feel like we scratched the services. So much going on, so hopefully we can maybe talk to you again in the future. I'd love to because there's so much going on. Certainly Peter kop he's vice president, chief financial Strategies at Informatica.

Here at informatic or World two. You're listening to Bloomberg Business Week with Carol Masser and Bloomberg Quick Takes Tim Stinovic on Bloomberg Radio. Earlier this year, Grandview Research came out him and they noted that the cloud computing market size forecast to be worth about one and a half trillion by the compound annual growth rate of nearly a lot of demand, and it's leading to innovation. Well, let's

ask what type of innovation it's leading to. Ditch Guys, executive vice president and a chief product officer at Informatica. He's here with us on site in Vegas. He oversees product management, user experience, design, engineering and cloud operations. Touch. Good to have you with us. How are you? I am well, I'm well, very busy, but great to be here. We'll talk a little bit about how the cloud is evolving, because I thought you're gonna say, well, well, I mean,

if you think it's it's interesting. Um. I believe the first mention of the cloud from Informatica was gosh, fifteen years ago, all the way back in two thousand six. Yes, we've We've been around and we've been leading the market with many many innovations and generations of data and analytics on premises as well as in the cloud. There was this there were data warehouse is and data marks. Then there was this thing called big data and hadoop, and now all of it's in the cloud and uh, and

we're powering all of it. You know, I think from a lay person, I think about I remember the Bloomberg story when they talked about if you were streaming from Amazon Web Services, you're getting something from the cloud, like like, so you're using Netflix, you're actually using an Amazon product exactly. And we started learning about stream you know, in terms of the cloud and like how all of that was happening. Um, talk to us in terms of how the cloud continues

to evolve and how we are using it. Yeah, you know, the cloud first started with I'm just going to deploy some servers and make it easy for people to put their applications on those servers. That was called i as. Then it became well, I'm just going to build applications. You don't even have to worry about installing them. They're just applications. That's the whole sas Moniker. All of it is driving agility exactly exactly, Software as a service, all

of that is driving agility. All of that driving making it easier for organizations to get the benefit of technology without having to install it, without having to manage it, and getting the latest most innovative technology because as technology providers, we're rolling out innovations on a on a monthly basis. In the cloud, what we're doing is now powering data

for organizations in the cloud. What we're doing is we're enabling organizations to drive their data, their analytics, they're reporting as a service. What are you hearing from these organizations in terms of what they want right now and what they expect? What do they expect from analysis in the cloud? Yeah, So the big problem in the amazing opportunity for us

is there's literally zeta bytes of data. What is this contextualizing exactly exactly a lot of zeros and and the important part is only about four to five percent of it is being used in delivering value. Data volumes keep growing and the opportunity to derive insights is in analyzing as much data as you can. The opportunity to uh deliver a cross sell up sell promotional offer for an organization is based on hyper personalization. It's based on how

much data you have. It's based on the AI you're using against that data to make intelligent recommendations, based on your buying preferences, on your buying preferences, and on my buying preferences. And that comes down to trusted data. That's what we deliver our organizations increasingly thinking about my data, DOCEI A, Tim's data, DOCEI A? Your data do SI A? And I mean obviously very valuable, but then kind of who is the ownership of that? And then how do

you use that going forward? And and a key element of trusted data is ensuring privacy, ensuring that the right data is used for the right purposes with the right consent. And that's a that's an important that We have four

journeys that we empower for our customers. These are digital transformation journeys around analytics and AI empowering their analytics initiatives, their AI are artificial intelligence initiatives as well as around application integration and intelligent automation of business processes within the organization, which referred to as digital And then there's enabling them to transform the supply chains, enabling them to transform their

customer experiences. They're enabling them to go digital and bring their products and enabling us to to shop for these products and e commerce experiences became so much in the demand. If you think about the last two years between pandemic and supply chain snarls, that is exactly right. That is exactly right, and and and to continue that threat. The last journey that's extremely important is data governance and privacy, making sure that we're enabling the consumption of this data

within the global two thousand and beyond. But we've governed with governance and the appropriate Paul this he used to consume. We only have about thirty forty seconds here. You have a degree in electrical engineering. My father was an electrical engineer. Are we producing enough engineers in society for the demand that's really needed? Just your thoughts on that. We could always use more engineers. My father is an engineer, I'm

an engineer. Uh, I'd love to see more engineers. I'd like to see more diversity and engineers as well, both from both from a demographic geographic as well as from a gender standpoint. We do have a little bit of

extra time with you. So I just want to get an idea of how it is attracting and retaining talent right now, especially with regards I mean, it's interesting because we talked a lot about in recent weeks hiring freezes in Silicon Valley startups, uh not being an environment that they were in over the last few years where they're just flush with cash as venture capitalists tighten their belt. Are you starting to see it's actually easier to attract and retain talent or is it still really hard for

you to build out these teams. It's an extremely competitive environment. But you know what I do want to emphasize as I'm hiring, So please if if they're talented still looking, I please visit our website and our career services page. I'm definitely that's a really notable thing to hear right now, because we're hearing across the industry of hiring freezes. We send it offers at Twitter for example. Well, you know

it's funny. I was just over in Panama and we did a big conference from Bloomberg Live and talking with the chief operating officer of DLocal, and she said one of the things that I said what what can we do to help entrepreneurship, the creation of unicorns and technology you know, around the world. And she said, we just need to be better in terms of education and steering a younger population. And she spent she's talked specifically about engineering. Yes,

I couldn't it well stem in general driving innovation. One thing I wanted to ask you about in terms of just going back to data because we talked earlier about on the on the broadcast about data dump and it's no, data isn't useful unless you can work through it make it productive. You guys think a lot about having this three sixty degree data when when we say something like that, what does that mean? Well, there's three sixty degree views

to deliver context around data. Otherwise it's just numbers words. There's Jetesh, Well, Jetesh is what a person. There's contexts about jes Gitesha's chief product officer at Informatica. That's now context. Jtesha has an electrical engineering degree. That's context. J Tesh enjoys hiking on the weekends with his two young boys. That's context. That's now building three sixty three sixty view. Jetesh has these buying preferences gitesh enjoys making milklot is

on the weekends. These are all, Um, there's a dating profile. I'm just gonna well, you know there's there's a professional three sixty views and what do you do with those three sixty views? Well, if you're if you're in the wealth management business, you understand their investment profile. You you understand uh, you know, you have householding information, and you

understand who their relationships are. You understand what could be interesting cross sell, up sell opportunities to offer investment products, mortgage products. You have a question, Yeah, I'm just thinking, how do these profiles, how do they see three sixty degree views? How do they follow you from one platform to another platform? How do they allow a mortgage broker to to reach you? But also somebody outside of financial

services for example? Very open, No, no, no. So what we're doing is we're helping an individual organization empower itself with its own data. So we're not we're not enabling organization. We're not. We're not we're not delivering data to an organization. We're helping and every organization has create every enterprise creates its own data. We're helping them harness the power of that data, helping them, organizing it and helping them make

it productive. Do you do you envision a time when we as consumers of our own data, and we're somehow in the blockchain, the context of the blockchain, and we can travel with that data where we want. It's an interesting question. You have rights to your data today under g d P R C c p A. These are privacy regulations, California's as well as the European Union. You have rights to go to an organization and ask for how are you using my data? And can you give it to me? And can you not use my data

for sales and marketing purposes? That exists today, asked to whether it resides in a blockchain and the future and you can carry it with you. It's an interesting It's an interesting question. I'd like to understand what the application

of that. I'd rather others have some understanding of my preferences to make my experiences productive, to make customer service and engagement for me more productive in in serving me, I certainly wouldn't want that data use for malicious purposes and and and therein lies the balance the analize regulations and the like. I have to say, Um, coming to this event, um and reading in and doing a bunch

of research. One of the things that I always find interesting, and there's a function on the Bloomberg that you basically can put a company in. You can find out who their suppliers are and then who their customers are. And what's interesting is you guys work with everybody who's big in the cloud, whether it's AWS, whether it's Microsoft, where it's Google. Um, what are some of the conversations you're having with these people about kind of what their demands

are and where the cloud and where data is going. Yeah, because they are such pig aggregators of information. Correct. Correct, And that's why we have deep partnerships with them and they have deep partnerships with us. Is while they are aggregating information on behalf of their enterprise customers, which are also our enterprise customers, we are helping them aggregate that information. We're helping them on ramp that information into a w S Azure g c P Oracle, which we just announced today,

the or cold cloud as well. Yeah, and it makes them have the ability to use it. We have to run to touch. Thank you so much, my pleasure, happy to be here. I really appreciate your guy. He's chief product Officer at Informatica. You're listening to Bloomberg Business Week with Carol Messer and Bloomberg Quick Takes Tim Stinovic on Bloomberg Radio. We're live in Las Vegas at Informatico World and our next get just part of the team over

at Freddie Mac. They are responsible for within eleven million active loans, a balance sheet of over two point one trillion. That's it. That's it. It's a lot of information and data to keep track of and also to keep secure. Here with more is Arvin jag Jaggon eight and Vice president and Chief Data Officer at the Government Sponsored Enterprise of GSC. It is, of course Freddie Mack here on site at Informatica World in Las Vegas. Jack, good to

chat with you. How are you doing great? Really appreciate being here. Well, let's talk. I mean, there's so much that we want to get to with you. But you're the chief data officer. You have such a unique insight into the health of the US economy, the health of the housing market. I want to start there and get an idea from you of of of and look with the you know, with the caveat You're not an economist, but what does the landscape look like to you right now?

See a lot of data that you see a lot so in terms of you think about transformation and UM looking at data going into the cloud. Ultimately, you know when when you look at what we're trying to achieve in terms of being successful in our mission UM the increase of demand that you've seen in the last couple of years, and you look forward into ever changing economy requires us in terms of how we want to modernize, take advantage of the cloud UM and look at in

terms of meeting our mission. So in terms of understanding the data, without going into all the various points, when you think about from our first quarter results right eight two people we were able to either buy rent or free finance at home two and two three billion UM liquidity came and you know, well we were able to provide off which in terms of what I just mentioned in terms of the first time home buyers were first

time right of which met are affordable our goals. So that you know, if you think about what's happening with the economy, UM housing is still right you seeing demand and think about increasing So if you look at that, I think closer to three trillion in terms of assets, right, we were able to the demand is requiring us to be more nimble, right as well as in terms of me making sure that every meeting our mission that make

home possible for it. Well, that's the interesting point. And this is you know, some of the conversations that we have with the CEO of Informatica, uh, and just kind of the theme woven throughout is that there's data and then there's smart data. Right, You guys want to make sure you've got a mission. You do want to make sure that the money and the assistance is getting to

the people who really really need it. And that's where data can come in, right to find that you're getting it to the right home buyers, so our potential home buyers. So if you think about how technology is changing, right, ultimately we're going to realize, uh, how do we more nimble? What's what's it going to do to that bar lender experience, What's it gonna do from our servicing standpoint? Um, it's

going to continue to evolve. Where we're trying to figure out is how do we continue to move the needle to make more UM home ownership rather beyond the multi family or the single family side UM affordable and accessible accessible, Right, that's the time. That's where the mission is really tying into what is the data that you're looking at now that you're able to aggregate, that you're able to analyze, that you're able to make sense of that you weren't

able to do let's say five ten years ago. Give us specific examples of what you have the power to do now and then how that translates into the home buying experienced. So if you think about origination and you think about five ten years ago, UM, things were much

more siloed in terms of processes. Right, So if you think people process technology, So as I talked about the culture change, so how do we in terms of loan origination as they're changing and evolving, how can we if you think about our reperand warrant relief that you know, that's that's there before everything was paper during and now you're able from a lender bar experience able to provide that UM data right for them to make decisions in

the more quicker manner. We've we've thought about reimagining our entire servicing UH portfolio. The background UM that has been something that we were investing and looking at in terms of the front end, the bar experience, but then also the servicing side because that's how people when you think about a thirty year mortgage, they're dealing with the services. So we've done various activities and products right to help

improve that side of the business as well. How did the pandemic impact you, guys in terms of your approach and your use of data or analytics or either class the stuff that you know, all the technology that in from the met provides no great, great rushing um on a personal level. I look at in terms of you when you think about COVID March Friday, take your laptop. We don't know if we're gonna come back and guess what's it was our last show in studio. You didn't

come back. What you've seen in the last couple of years is accessible. Uh, having data more accessible we became key right because people were now virtual. So before I can come by your desk and can you print me out something or can you give me they wanted more more dashboards. How do you get data to be more consolidated?

So that Ford was reporting you're able to meet the speed to market demand increased, So in COVID, clearly there was a dip, but then you saw housing and everyone else, so that fostered not only transformation in every and every aspect of business line. One thing I do want to ask you though, because you guys had an incredible search during the pandemic, right, we know, all of a sudden everybody was like, I'm moving, I'm buying houses out inside

the backyard. I need a backyard and I need extra space. Um, how does it compare to what you were seeing? You talked about some of the volumes that you guys are just seeing as of late, But how does it compare our things slowing down? I mean we've seen it with the rise in mortgage rates. I'm just curious in terms of the data processing, are you seeing it slow down a little bit? I mean again in terms of again from a data perspective, I'll let UM more economists and

and and are you processing less? It's not so much even processing less. I think what we're what we're seeing is that UM being efficient, making sure that we can meet our mission. Being successful in terms of making home possible is is critical today as it was two years ago. Do you have data that gives you an informed view of how hot the housing market is and how much it could slow down because mortgage rates are increasing. You know, great question. Again, UM will provide those data too. I

call our key executives and and business business owners. My job from a CDO standpoint is make sure those those reports and the data is accurate and they could rely on information. And from a from a governance perspective, is a rare informatic its critical force that we can we know our data is protected UM and governed effectively and then reportings are accurate well. And one thing we talked with a Mint about Aalia, the CEO of Informatica, that

the your position, the chief data officer. It's like how important the CFO became after the financial crisis. How often is it that you are drawn into strategy because if your understanding and use of data and just got about twenty five seconds, so being the business line. UM. Fortunate that UM our strategy has a clear line of site to our strategic framework and omission UM and very very fortunate for them. Jack, thank you so much. I'm so glad we got to look at this side of the

discussions that we're having today. Um Arvin Jaggonathan. He's VP, Chief Data Officer over at Freddie Mack Journal. Now, but you let me drive? No, no, no no, please, I want to drive. It's good question. This is the Drive to the Globe on Bloomberg Radio. All right, just about ten minutes left in today's trading session. We're just off our highs of the session, a big day when we got those f O m C minutes from that latest FED meeting, and we've got a great guest to talk about the

trends that we've been seeing. Tim, great to have back with us and Miletti, head of active Equity at all Spring Global Investments. All Spring Global Investments stuff is about five one billion dollars in assets under management and joining us once again on the phone from Milwaukee, and how are you. I'm doing well. How are you? We're doing well. It's good to have you with us. And it's interesting to see the trade today, especially after we got those

FED meeting minutes. Thanks to our producers here at Bloomberg Business Week, we know that you right that we're in the midst of a paradigm shift which is creating a lot of volatility and discomfort for investors. So raises the question, what are the opportunities in this paradigm shift. Yeah, Tim, it's a great question because it's really hard for investors to stay focused on opportunity when there's so much dislocation going on in the market. But that is exactly what

our investment teams are trained to do. They are investors, not traders, and so they're focused on process and looking for companies that can sustain this kind of change. So really good strong fundamentals um and they're seeing it across all different industries. It's really a time to kind of look at those key um companies. It's it's you know,

company fundamentals are truly the key point right now. Yeah, you know what, and you do see that, right And we've seen it play out as earnings have been reported. There's some companies that seem to weather it through and investors look at the fundamentals and they'll be bidding a stock up in a down market or dark Husser saw Bober comes out and says, forget about adjin Eba, We're

all about free cash flow now. Yeah, Well, the mentors keep on changing, so you know, and and I know, I's say this to a fair amount of our market guest. But we've seen a lot of different market cycles. This is an unusual one, right where we are recovering from so much liquidity that was pumped into the markets very very quickly and provided incredible support and a lot of money chasing a lot of assets to all of a sudden it's kind of quickly going away. It feels like, so,

what's the advice for investors? What do you draw upon historically, you know, or technically to kind of give them guidance. Yeah, it's it's it's so important to look at historical perspective and to think about it just exactly the way you set that up, because it is a paradigm shift. We have gone from the low inflation low right environment, and that's changing. In the first stage of that, really you typically see a lot of dislocation in the market, then

you see some capitulation. We're seeing a little bit of that, maybe a little bit more to go, and then you start to see the recovery happened. I think where we're looking is again company by companies, but we do see opportunities. If you look at the spreads, historical spreads, they're kind of getting to your point um between large cap and small cap are really blown out, and you're getting opportunities in small cap companies I would say present themselves pretty

well right now. UM health Care is another area because of their domestic because the domestic exposure in because the domestic exposure with everything that's going on in the world or what, or just because they were down. Yeah. I mean typically in inflationary cycles you start to see a little bit more pressure UM on smaller cap companies. But it's the small cap companies that are not UM that are not as set up I think for change. And so if you look at really strong fundamental within small caps,

you see great opportunity there. But yes, UM, that's the space. They're also in some ways isolated from a lot of the global challenges that we have going on right now. But you know, the size has been important. Large cap has been where a lot of the market has flown, and I think we are comfortable looking down cap right now.

There's a lot of opportunity out there. That being said, there's a lot of large cap companies where you're seeing big, big cat sell off right now too, And I think that's exactly why rather than put a telescope on you know, the whole market. You kind of have to take a microscope, go about and look at you know, where do you look right? Where do you look within small cap? But

where do you look within large caps? And within the ex started within each sector as well, fundamental research actually matter Where do you where do you look in those places? What sectors are exciting to you? Yeah? Well, I think one of those sectors that does stand out to me

is healthcare. One. It tends to be, you know, a little bit more defensive in inflationary recycles, which you could argue we are in the midst of and you know, it underperforms last year substantially, it still is fairly you know, under represented. I would say, um in terms of holdings that many many professional investors have, So I would say healthcare is a much active area UM. And outside of that, I would just do the bottom up work and focus

on fundamentals. And I think that is different again in this paradigm shift where rising and seas lifted all both, I think the tides going down and there's going to be more different across each company. You know, it's interesting too. And I was thinking about when we saw Snap drop like a rock this week and our man Deep Singh said, you know, at some point you look at this and say, this is a company with what over three million in

terms of subscribers, like there is value you there? And I do wonder you know, and I know you you focus on sectors when you come on with us, And is there some point that you look at that big tech and just got about thirty seconds here that you say there are opportunities here, especially with these beaten down names. Absolutely, um technology is changing and transforming the world and we all know that, and companies are going to continue to

spend on technology, not just us individually. So track is not an area I would stay away from. However, there's a lot of dislocation between the big you know kind of seven saying names and what their valuations have done versus the rest of technology. So again I would just be selective. All right. Well, always fun to check in with you and Miletty. She's head of active equity over

at all Spring Global Investments. I've got roughly one billion dollars in assets under management joining us on the phone from Milwaukee. Thanks for listening to Bloomberg Business Week. Download the podcast on iTunes, SoundCloud or Bloomberg dot com and You can also listen to our radio show at two pm Eastern on Bloomberg Radio, or watch us on YouTube search Bloomberg Global News