Goals aiming to double the amount of female employees globally over the next five years. My diversity seems to be the next why diversity seems to be the next problem big tex can solve. Ibm purchases redhat. Withas once synonymous mainframe computing. The company is playing catchup market leaders and Offering Software and services over the internet. Bloombergs david westin spoke to the leaders of both ibm and red hat earlier. I think, a lot of times people think everything is going to move to one public cloud. That is not what we see clients need, want, or are targeted to. Estate, like a house, i want to modernize it. Im going to put it where i want and im going to manage and secure all. Betweenthem a platform red hat and ibm, that runs on it and manageure it. That is a distinct capability and that is what i mean by the hyper cloud. Others talk it but they may just have a connection between their public cloud and private cloud. Youve got some other competitors out there in the cloud that are pretty darn big, like amazon and google. An evenoal is to be better partner with those clouds. Our Software Runs on those clouds. M, thosese, on ib clouds. Greatill continue to be partners with us. That is more workload that those clouds can go address and run. My conversations have been positive because they see this as an opportunity to get more workloads out of their data center. Our clients want us to be able to take our software and run it anywhere. David you have ram the percentage of your revenue from the cloud dramatically. What is the ultimate goal . Anni not that there is ultimate goal, 80 of their work will move to the hyper cloud. These platforms, it will be on other clouds included in our services revenue. It is to move with the same journey that our client needed to move with. David what about moving with the overall size of the cloud expanding. How much will it be growing that or taking market share from other providers . Points of basis Revenue Growth over a fiveyear period. Our own cloud, the ibm public cloud and our private cloud together, should be the very best. A client already said, i have 15 clouds already. We want our platform running anywhere else. Jim to emphasize that, this is all about allowing our clients to provide more value to their customers. When a client build a new application, a new website, a new local application, the opportunities for us to help them build the application, integrate it with data, run on our platform, on our cloud, all of those are areas of which we can participate in as our customers create more value for their customers. Emily joining us to discuss further, bloomberg techs olivia carnival in new york. Will this really give ibm a competitive advantage . Olivia i think that is the big question, what does the red hat acquisition actually do for ibm . 108yearold American Icon mainly known for main known for mainframes. Trying to reenter the clouds based as a different company, trying to transform what it has provided so far and change the game. We heard the ip the ibm ceo earlier call this a game changer for ibm. We have to figure out why this will be so significant. Not just for ibm but for the cloud space. For other providers like microsoft and google who see ibm thats as partners partners with ibm rather than rivals. Emily what is the biggest risk and what could go wrong . Olivia whether or not red hat can really fold into ibm. This company has a staunch and oldschool corporate work culture. Can this company red hat, which bit n to be a little the ceo talking about, within willacquisition, red hat remain a distinct unit within ibm. Its own consulting services, its own sales, its own terms and conditions. The red hat Leadership Team including the ceo will remain within red hat. They hope that enable to maintain red hats independence, this integration will work seamlessly. Ginni we have heard rometty talk about the hyper cloud before. How is what ibm is trying to do different from what amazon web services, microsoft, google do . Olivia they all provide different Public Cloud Networks with particular strengths. Iszons strength infrastructure services. Clouds strength is its customer management platform. When you see Companies Buying and using these clouds for different reason. Ibm is trying to become the glue that will stick together or connect all of those different clouds onto one platform. You may be a company that has to use salesforce for a particular reason. Up to 15 different cloud providers that all operate independently, and you have no way to bring them all together. Theis hoping it can become connective tissue that aligns all of these clouds under 154 under one platform. The strategic move to become partners with their former competitors is what ibm actually did in the 1990s regarding the Global Services platform. It kind of partnered up with software providers, and allowed hardware, weour will partner with you instead of run against you. Emily a potentially huge technological transition underway if they can execute. Olivia bloombergs carville. Backlash related to Facebooks Libra cryptocurrency project. Next weeks hearings. This is bloomberg. Emily facebook is seeking to mitigate concerns around its crypto currency project libra amidst growing backlash from regulators. Facebooks cocreator of libra, david marcus, wrote, we know that big ideas take time and we know this wont we know we cant do this alone. People at the table. This, after members of the House Committee told facebook last week that they should halt the project based on National Security and Monetary Policy concerns. Marcus will testify in next weeks hearings. Ning us to discuss obviously, you are both in the crypto industry. Im curious what you are expecting from these hearings. Hunter, you also worked at facebook for a long time. I think the approach they have taken throughout bringing libra to market has been one of being collaborative and open. I suspect what you will hear is that they want to work with regulators and they want to make sure they protect consumers, that they are developing this out in the public. Chosen to share a lot of details of the project before even launching it. In the beginning of june, the unveiling of a white paper well in advance of when they planned to reduce the protocols. I would predict it will have a collaborative tone. Emily are you optimistic about it, if it actually launches in a year . The announcement recently was a little bit more of a pregnancy announcement rather than a birth announcement. I think it is incredibly admirable what they are attempting to do. Also, they are competing pretty directly with Financial Institutions and, frankly, countries. On one hand, that is really interested that they are basically coming out and saying, people who billion spent timeon day on facebook all day. Potentially, we could better serve these people by providing eventually better financial services, better products. Thanhave a lot more data cofo Credit Scores fi Credit Scores do. It goes back to the same debate we see about facebook, is there too much power and having that extensive data . Emily hunter, can we trust facebook did not take advantage of the power it would have in this situation . Which is the concern of lawmakers. Hunter the team working on this have tried to address this head on. The two things. First, they put together this consortium. They said, we are going to have 100 firms involved and be one of those firms. To build trust that they will be the only people behind the wheel. Secondly, people have asked, will you be mining data, looking at what people are doing on this blockchain . What they have communicated, it is an open blockchain so everyone will have access to the ledger but they have no special rights in doing that. I expect they continue to operate as an Advertising Company but theres nothing about libra particularly that has bad intent. Have i think they architected libra has not just their project. They are initially helping to get this off the ground but potentially there are 100 other institutions that you can trust that is bringing transparency and other services to this network. I think that is really what they are trying to kick off because there arent many folks who would be able to put together a Global Consortium of folks like that. It remains to be seen. I think there is obviously a lot of pressure initially from countries. When you issue a currency, that is who you are competing with. Indias Cultural Affairs minister said doesnt that undermine sort of the point of having a democratized currency that people can transfer anywhere . Fromr the first reaction a lot of central bankers, policymakers, the bank of england, the same as the response from the senate. I think that makes sense as the default response. Another thing people are talking about with libra, it accidentally is the demonstration of the merits of Something Like a coin like bitcoin, where you dont have a corporation behind the wheel, you dont have a set of directors you have to listen to. I think that is why, in june, bitcoin was up 40 around the time of this news. People looked at, look at the decentralization thing that you can see in practice. Emily bitcoin, a big upswing in the past few weeks but also a lot of volatility. How is this impacting the industry, the companies you are investing in, and your decision to invest in them . Bitcoin has been extremely volatile from the beginning. It is known to have these 80 , 90 swings over the course of a couple of years. That will probably continue. Bringse price is up, it sort of a huge amount of interest and excitement back into the space because people are happy, they are making money. I have seen a real uptick in sentiment, a lot of excitement, folks coming back into this space, continuing to innovate. A lot of that has been happening over what we call crypto winter. Theres just a lot more, a lot happier people, a lot more smiles around. Emily facebook hasnt given birth yet. Hunter it is a good time and crypto. We spend a lot of time with private advisors and institutions and we have gotten phone calls in the past week from people who havent reached out in a year. Emily what is the over under on libra coming to creation coming to fruition . Lily i think that something is going to launch. I think it is a question of scope and which countries they will be launching. Emily and will regulators come on side . Will lawmakers understand . Lily i think some will but aml willks around kyc have to be in place. A lot of the same rules, regulations, experiences we have as consumers when using a paypal, event, those will be part of libra as well. I give facebook credit for thinking about the problem of many people having access to financial services. Making that accessible is something that will happen. Liu and hunter horsley, thank you both. Coming up, uber says it wants to be more than a ridesharing business. One way, uber eats. The man who is running that business in asia. This is bloomberg. Emily the global food Delivery Business could be in for a major windfall. According to euromonitor, global spending on food deliveries could rise by double digits by 2022. That seems like good news for uber as it seems to solidify its uber eats business. The head of uber eats in asia spoke about what this means for their service in japan, india, and beyond. Overall, the delivery landscape in markets like india and japan is being forward. We are seeing a Huge Exchange with new customers coming online. Days inill very early markets like japan, india. I think it is only like 7 of the markets are doing online from delivery Online Food Delivery on a regular basis. For us, we are really focused on moving beyond food delivery and helping the broader food and beverage ecosystem. That is a really exciting chapter. In japan, uber has had to adapt its Business Model to fit in with regulations. In india, they are protective when it comes to some of these industries. Do you expect to have to work regulators there to make it work . Raj what we have seen with uber eats across asiapacific, we work very closely with stakeholders. Restaurants, restaurant association, the safety boards, regulators. In all of our markets, we are operating very well, working in very collaborative relationships with regulators as well as restaurant partners. Being a quality partner corporate what we are Quality Partners we work with is a corporate of what we do core part of what we do. How can you help think about expansion, integrating to make it more seamless . Regulators,ides, restaurants, policymakers, it has been productive. How about grocery delivery . Will that be part of your asian strategy Going Forward . Raj from the customer standpoint, there is a blending of just wanting food that is available seamlessly. Some of that may be restaurant delivery. Some of that may be grocery. Some of that may be Convenience Stores and alcohol. We do have grocery platforms, Convenience Stores, alcohol. We are also launching services that get great traction like cap. Like pickup. You can order on uber eats and pickup at your favorite restaurant. , the head ofri uber eats in the asiapacific region. Cisco is spending billions. Ciscos corporate makeover, next. This is bloomberg. Xfinity mobile is a Wireless Network designed to save you money. Whether you use your phone to get fit or to find the perfect gift, youll use less data with a network that automatically connects to millions of wifi hotspots and the best lte everywhere else. So you save hundreds of dollars a year on your wireless bill. Xfinity mobile has the best network. Best devices. Best value. Simple. Easy. Awesome. Click, call or visit a store today. Emily this is bloomberg technology. Im emily chang. Fresh off a bullish sales and profit forecast for the quarter, cisco is not standing still. Cisco makes up the backbone of the internet and Corporate Networks and announced it would at 2. 6 billion. Premium toents a 46 the Closing Price on monday. That Company Makes products for Cloud Infrastructure operators and Communication Service providers. The deal is excited to close in the second half of fiscal 2020. To tell us more, we have lianna baker in new york and ian king who covers cisco for us. Ian, what is the motivation behind this deal . Ian if you are cisco, you want to be selling the same dont want to be selling the same box everyone else is. They are getting technology, Optical Technology to put in that box and hopefully differentiate what they are offering and make the likes of google and aws come back to them and say we need cisco technology. What talk to us about this does for cisco competitively in a market where we are seeing somewhat of an uptick in m a. Lianna there has been a lot of tech consolidation in recent years, but cisco has not been the most th active acquirer. This deal does not really move the needle for them. Has beenbins, the ceo, doing both on acquisitions for cisco in many different areas. This has been about the core networking business, but cisco going to software with the deal two years ago at over 4 billion. They are no stranger to deals but not massive ones. Emily ian, Chuck Robbins took over who ran the company for two decades and he had a big challenge to make over the company. How well is he doing on that count . Ian he would say it is a work in progress. Investors like it. First thing he did was restore growth which had not been the case for a long time. There were a lot of critics who said cisco is finished. Cisco is a company, yesterdays networks. What he has done is a lot of small deals, a lot of additional things. Recurring revenue for cisco makes cisco more sticky, more of a partner than it was. A company that sold these huge, expensive boxes. Now all kinds of things. Hes arguing we made the company for the cloud. Emily shares are up significantly since the first half of the year. Liana, does it complicate ciscos supply chain or put cisco in a position where it is now to some extent competing with its own customers . Liana that was an interesting angle in ians story. A lot of customers are competitors to cisco. Nowo was a cousia customer but nokia, huawei our customers of cisco. They have to decide how much they want cisco to know about their supply chain. Cisco has done deals before where the companies they buy, they are a customer of. We will see how it plays out in these business relationships. Emily ian, talk to us about the priority that cisco is placing on hardware versus software. Ian it is interesting because they had added a lot of services, Cloud Software layers. Now we are seeing a push back to the fundamentals, hardware. I think this is chuck saying boxes still matter. We need to absolutely make sure these things are distinctive. They are Something Different than anyone else will offer and something people have to have. Emily we were talking about the ibmred hat deal earlier. In the enterprise world, are we expecting more m a this year, big m a . Liana as we reported before, broadcom and symantec are on track to announce a deal over 22 billion that could include the week of july 16. That is one my sources are looking towards as the next the but there could be more in the works. Conversations are definitely going on in the industry. Emily what is your take on this broadcom deal given the ceos ambitions, but his goal to make this company bigger and bigger . Ian he has a template. His template is a company that has a nice market share, but it is overrun. It has ambitions beyond its capability. Run it for cash. Symantec fits that move. Emily any deals you are watching out for . [laughter] ian liana is the expert. Emily i will wait for both of you to keep us posted. Ian king and liana b