Ivanti State of the Union

January 08, 2019

Steve Daly | CEO & Chairman of the Board | Ivanti

Steve Morton | Executive Vice President & Chief Marketing Officer | Ivanti

From new product releases to the introduction of our revolutionary ELA pricing model, 2018 was an exciting year for Ivanti. Join us for this special, sales pitch-free, State of the Union webinar with CEO Steve Daly and CMO Steve Morton, where you can learn more about what’s in store for Ivanti in 2019. They’ll discuss:

  • The vision for the company
  • The future of the products you love
  • How we plan to better integrate our products
  • Our new technologies, such as Ivanti Pulse and Smart Advisors
  • The unification of IT

We’ll also give you the chance to ask any questions you might have about the future of Ivanti. Whether you are a customer or are interested in Ivanti solutions, this is a webinar you don’t want to miss.

Transcript:

Steve Morton: Hi, folks, and welcome to this Ivanti State of the Union webinar. My name is Steve Morton. I'm the CMO over here at Ivanti. And over to my right is Steve Daly. Steve, good to have you here.

Steve Daly: Good morning. There was a lot of traffic coming in this morning.

Steve Morton: There was a lot of traffic, yeah, but we're happy to be here. We've got a lot of folks on the line, and we're excited to kind of share a little bit about 2018, but mostly talk about what we're going to do going forward. Here is a picture of the two guys. These are well-Photoshopped photos.

Steve Daly: I think that was my high school graduation photo.

Steve Morton: That's my driver's license photo on the right here. It looks like you're taking over most of Central America and I'm somewhere in the Canary Islands apparently. But Asia was just like a big land mass that we're ready to take over anytime. So, just the two of us today, we're just going to have a conversation, not a ton of slides, just kind of get all of you folks up to speed on what we've been working on. And kind of the big message really is around this journey towards Unified IT. That's our topline message, the power of Unified IT, the power of Unified, and we've been working hard in 2018 to get there, and 2019 continues on that trend.

Let's talk a little bit about 2018, Steve. We've finished off the year. It was a good year. Did a lot of work, man. It flew by. It was one of those years that we're a lot of things happy with the performance, and happy with the way that we've come through 2018.

Steve Daly: I am. And it was a year where we had a lot of things going on in 2017. We're trying to camp things down, we're trying to make sure that we were growing the business, make sure that we were rationalizing pieces of the business. So, I'm happy. We had growth this year. We had growth particularly in areas that are strategic to us. We saw growth in asset management, both hardware and software. We saw growth in our security business. We saw growth in our IT and service management business. So, across the...and even our UWM business was a grower as well. So, across all aspects of business we saw growth. We saw the best growth probably in our asset management, in our service management business.

Steve Morton: Yeah, which is great, again, with the acquisitions that we've done, getting through that rationalization, getting through that process of the go-forward strategy in products, building the processes to support all that. That was a heavy lift. I'm kind of glad 2018 is over. We're coming up on our sales kickoff in the next couple of weeks here. And it was just two years ago that we announced that we were acquired by Clearlake. We announced that we were coming together with the HEAT portfolio, and that we were becoming Ivanti. It's been two years, it doesn't seem like two years. It seems like about 40.

Steve Daly: Yeah, in dog years. It was much longer. No, but it was...but it's been exciting. I mean, everything from just bringing the company together and bringing everybody under one...into one Ivanti has been a long process, a little hard. Our Interchange event this year was fantastic, as big as any Interchange event that we've done this year, and we had a much broader portfolio to talk about, and how that was all come together.

Steve Morton: And I want to talk a little bit about that product and the product roadmap and kind of how that piece comes together. You mentioned areas of growth, asset security. We spent a lot of time working on the cloud this year as well. And we made a change in the way that we approach the product teams, embracing a devops model. There's big changes that are coming from a product portfolio standpoint and how we bring those products to market.

Steve Daly: That's right. And that moves towards more cloud as well as just a more rapid sort of release cycles or really more rapid feedback from our customer base, I think, is going to pay big dividends for us long term as we transition to our cloud.

Steve Morton: And maybe back to that Interchange comment for a minute, it's one of the best ways for people to actually get in front of the product managers, get in front of the dev guys, our UX team is there. One of the things that we love about those types of activities is that people can influence the roadmap.

Steve Daly: That's right.

Steve Morton: I mean, literally, we steal our best ideas from our customers across...that come to those meetings. But it's really a chance to do that. And that's something that a lot of companies, a lot of bigger companies can't do.

Steve Daly: No, in fact, most of the conferences I go to, as you do as well, right, it's a chance for you to get fed a lot of information, which is great. What we try to do differently in our events is, really, it is meant to be a two-way dialogue, and it is meant to be... We have our UX lab there, set up, right? And we get feedback directly on, "Okay, here's what's coming. What do you guys think? How can we do it?" Those types of things, we got time scheduled for all of our product managers, so anybody who wants to get some time to give feedback or understand better in more depth how it's going to apply to their environment, right? This is really meant to be more...almost a working session than it is just, "I'm going to give talk for..."

Steve Morton: Right. And it's important, it's indicative of the culture that you're trying to build here. This is kind of a delivery mechanisms of that customer for life at two that we try to embrace, right? Not so big that we don't take your opinions and your comments and feedback very seriously, we're big enough to be stable.

Steve Daly: That's right.

Steve Morton: We're, you know...

Steve Daly: No, and that was a big part of this last year's Interchange also was we had a board that talked about the customer journey and all the touchpoints we have with our customers. And we asked our customers to say, "Okay, here, give us a red dot where we do really well, where we do really poorly as part of the process to really understand what can we do better and how can we do that, how can we engage with you better?"

Steve Morton: That's right.

Steve Daly: And that process has led to customers for life program, which said, "Look, we want every one of our customers to go on this journey with us for life," and be with Ivanti, and that we're changing, and we're evolving as they evolve, as these transformations happen in IT, and that you want to be with them on because we're a partner for...

Steve Morton: And we can get all green dots, right?

Steve Daly: No, we got a lot of red dots. We deserved it.

Steve Morton: But what a good blueprint for us to go back and work on those things. Because, hey, I'm excited about this next thing, and that is, you know, we'll get in the process up in a minute. But we broke ground on a new headquarters here, kind of indicative of our growth. There is a mockup of it. It's cool, [inaudible 00:07:23].

Steve Daly: If anybody has been to the headquarters, we can see it from the building that we're at. It's right on the...right near the freeway, right in the rail line. But, more importantly, we're running out of space here where we're at. We're kind of filled out. We're at capacity and we needed to do something. And so this will be a great showcase. This will be a great place for customers to come visit. We'll have some great opportunities that have space now where we can have a real hands-on, touch the technology, really understand how we can help the environment. And, boy, it's going to be a great opportunity for...it's going to be a world-class space and...

Steve Morton: Yeah, it's truly a maturation of the company, indicative of the growth and the talent that we're getting. You mentioned the tracks, the train stop for all your PMs [SP] here. We actually do have a couple of trains here in the United States. But it's really centrally located. You literally can walk off the train station and into the building, but it allows us to bring talent from the south end of the valley up to the north. We think that this will expand and improve even the quality of folks and account that's coming into the business.

Steve Daly: Right.

Steve Morton: So, when are we going to move in and how big is my office is my real question?

Steve Daly: So, we're going to move in...it could actually be smaller than mine this time [crosstalk 00:08:44] right now. But we're going to move in at Q1 of 2020 is what we're shooting for right now. And so, as you can see, it's being built. It's almost completely gritted in, so it's exciting to watch.

Steve Morton: It's going to be awesome. We're excited to have that. Well, let's talk a little bit about the product side as we continue to do things. And Unified IT and ELA is a big topic, and we've been on a journey really to bring the products together, to build the portfolio. If we look back the last couple of years, 2017 was bringing a lot of parts together. We did a lot of acquisitions, we essentially doubled the size of the company around that time. 2018, as we mentioned, was a lot of rationalization of products, really making sure we had our best strategies going forward. We improved our packaging. We'll talk about that in a minute. But 2019 is going to be a year of kind of integration and innovation. There's a lot of work that has to happen to make that going forward.

Steve Daly: Yeah. So, I think, like you said, 2017 is where everything...we got all the pieces, and we brought them all into the fold with the merger with HEAT, with the acquisition of RES and with Concorde, and we felt like we've finally got all of the pieces that would allow us to really help IT unified. And the great part of that is we bought world-class technologies, we brought in teams that had the DNA and had the understanding of the markets that we thought were critical for us to bring together. And then, as you said, 2018 then became, "Okay, we've got all these parts and pieces."

I like to use the analogy of Apollo 13. There's a point in that movie where all the engineers back at Mission Control walk in the room and there's all these parts on the table, and the leaders says, "Look, here's what you got to use. Now, go figure out how to bring these guys home." And it's kind of the same thing. We got all the pieces now, how do we bring them together? And so, 2018, I think we spent a lot of time on kind of pulling the pieces together, rationalizing, okay, where are we going to innovate going forward? And how are we going to sustain our customers and keep them on the path? And then, where do we bring them together?

Steve Morton: Yeah. I think that's exactly right. Where do we componentized certain pieces so we can share? How does that all come together? And one of the things we did, right out of the gate, was to change the way that we package some of this stuff. So, first step in kind of that is, "All right, let's see what you have." Second step is let's make it easier to buy. And we introduced a concept of our ELA which is a little different than some others.

Steve Daly: Yeah. And so we know that bringing the technologies just takes time, right? You can't just snap your fingers and say, "Okay, we're integrated." And so the first step, really, was around packaging, trying to understand. We spent some time, we brought in some consultants to go do surveys, and tried to understand, "What groups of products does it make sense to bring together?" And we did that through packaging, and we said, "Here's our version of an enterprise license which says when you can buy the whole thing, and buy everything." But we recognized that that's a journey to really unify everything. And so we also offered the option of a pick two which says, "Okay, I want to focus on my endpoint management and my endpoint security. Let's get that done first, and then we can grow into having IT service management and asset management, and identity, and all those. But let's start with two of them, two."

And maybe for some it's, "I want to start with IT service management, IT asset management." But that was the goal, it's to, "Okay, let's make it easy from a purchasing perspective. Let's make it easy to consume." And so we don't have to worry about, "Okay, do I got to buy this product and then I can get this product, and then all these pieces?" And there's a lot of really innovative things, I think, in the way we do an enterprise licensing, the idea of true it forward, right? We're not gonna back and charge you for usage if it went over. Let's just talk about what you need going forward, those ideas, so.

Steve Morton: And, again, these options have been really strong. And this rationalization and packaging has really allowed us now to focus on a lot of the innovation and integration work that we're doing. And we've got this...here's our little market tech slide that we talked about. We still discuss...discover, provide insight, take action, those three things that we do better than anybody else. And we're building a lot of this in the cloud. That's been a big push for us and will be a big push for us, this common Unified IT platform that ties these kind of pillars together.

Steve Daly: And that's exactly right because what we recognize was the best way to really help IT organizations gain daily benefits of unifying these things together was to not try to do it premise to premise sort of integration because, one, it's kind of clunky. It's hard to roll out, it's hard to innovate, and keep the pace of innovation going, and we knew we needed to do that and be much quicker in our innovation. And, two, it allows our customers to continue with the investments they've made with the premise solutions or whatever they're using, but it gives them that point where they can do the integration and get the benefit without having to go through massive upgrade cycles and things like that.

Steve Morton: So, it's important to say that, "Hey, there's a path for our existing on-prem customers. You guys can take advantage of the things on cloud." We're not asking them, "Hey, you got to shift completely to a cloud infrastructure." If you are a UEM customer or a UWM customer, there's content that will push you into the cloud, that kind of provide that inside layer. But there's no doubt about it, we're building cloud products going forward as well. And that's right. And that has been a big design goal of bringing the Unified IT together in the cloud is because we wanted to be able to add value to existing...and not force an upgrade into a cloud product.

And I think that part of that strategy was the delivery of these things that we call smart advisors. But essentially, again, in many of these cases, these more on-prem products, some of them are cloud-based, our service management products are cloud-based, for example. But we're pushing stuff up and, again, kind of interconnecting these pieces, so we're starting to deliver on the promise of Unified IT. And this concept of smart advisors is an important one. If we look at 2019, here's kind of an example of what we showed. Over on the right-hand corner, there's a little smart advisor that's bridging multiple pillars.

And the cool thing about this is that you're seeing data in that consolidated smart advisor that we discovered, we're best in breed about, that it comes from third parties, may come from somebody else's website or Microsoft announcements on availability with OS, whatever the case may be. But there's a couple of really cool parts about it, and this is obviously an opt-in strategy, but you can share peer data here as well.

Steve Daly: Yeah. And this is really, again, the power. Like you said, if you got multiple products from Ivanti, this is a great way for you to pull all that data together in one place, and then be able to manipulate it, be able to really drive insights based on across. Even if you've only got one product from Ivanti, there's still value in this because, as we bring that data into the cloud, one, we can show you, we can manipulate that data and let you manipulate it in a way that makes sense for you. But it also gives you two things. One is the ability to compare yourself to others.

Steve Morton: Yeah, "How am I doing this patch and all that compared to my peers?"

Steve Daly: All that purchase is patched from Ivanti, "How am I doing? How long does it take me to roll it out versus somebody my size, somebody in my industry, or something like that?" It also allows us to apply to some of the backend machine learning algorithms that we have into the cloud, and you get to leverage Ivanti expertise and investment in artificial intelligence and machine learning so that we can start to present recommendations on what to do. One of the cool things we're doing right now with our own implementation of our service management is using that backend to be able to make recommendations on how wrap tickets, or how long this is going to take to close tickets. That type of information will be available regardless of whether you bought into multiple parts of the portfolio or just one part.

Steve Morton: That's the important part. And, again, we've got world-class expertise here on how IT does their business. Imagine putting machine learning to that, new insights, new information-prioritized lists. What I love about this, too, is that it doesn't just give you just the report. Actually, you can do something about it to take action, right? You can find out of a piece of software that's installed, and you can find out if it's being used, and then you can remove it if it's not being used, right? That's that 360-degree view. Hey, one of the cool things about the innovation that we've been working on, and we are going to talk about this at Interchange coming up, is what we're calling Ivanti Real-Time. We just call it Pulse, right? Bit somebody else has got the Pulse name. But Real-Time is probably a better descriptor of it anyway. Essentially, it gives us real-time view into a company's entire infrastructure.

Steve Daly: That's right.

Steve Morton: And you can ask it a question in natural language just like you would in Google, and get that answer almost instantaneously. It's a really powerful tool that we're excited about.

Steve Daly: That's right. And here's where a lot of innovation comes in through Ivanti Cloud, and as we talk about Unified IT, because what we recognize is, one, first of all, and we saw this in surveys that we've done, security professionals, as well as IT operations professionals, the number one thing they want to know is, "What do I have in my environment?" Right? And so what we've created is, through Ivanti Cloud, we can pull data from a lot of different sources, whether it's our endpoint manager, maybe if that's a [inaudible 00:19:24], maybe it's ServiceNow if you're using them for your service management solution. But we can pull kind of persistent data, but what we also offer in Ivanti Cloud is this real-time ability to say, "Okay, that's great, but you know what? This is endpoint environment. Endpoint environment changes hourly, meter to minute..."

Steve Morton: But ours was not.

Steve Daly: Yeah, it could look like. So, what do I have right now on my network and what does that look like? And you can ask questions in natural language, "Are firewalls enabled?" or questions like that, and be able to really understand real time. And then take that information and, as we said before with smart advisors, be able to manipulate it, and look at it, and get insights. And then, like you said, ultimately, then take action from that, and be able to... In Ivanti Cloud, what you'll see is, this year, we'll also be delivering our mission for the cloud. And so we can do those automation tasks, again, from Ivanti Cloud regardless of what products you're on, you can take advantage of those.

Steve Morton: Yeah, I'm excited to show everybody Real-Time as it comes out. It's been a great platform. We also put the word IoT on this slide. We believe that, as random things continues to grow and things grow exponentially, we're going to have to make sure that we can manage even more endpoints and more device types and all that good stuff.

Steve Daly: And the architecture is built on protocols that IoT devices use. We did a Hackathon in November. I was in India for that Hackathon, and one of the teams actually created, through this, through Ivanti Real-Time, the ability to gain an alert from an IoT device. It was actually a fire sensor. They click that off and through that was able to kick off a backup of all of the devices in the environment, using Ivanti Real-Time to do that. And so, again, it's built on, and it leverages a lot of those protocols that will allow us to extend this to any sort of an Edge device that IT is working on.

Steve Morton: Good. We're getting a couple questions about some products around particulars and features. We get the absence and work space manager questions, how those come together over time. And one of the things that we've been trying to be really clear about is that we're not retiring any products. We put products together in a go-forward manner. We continue to manage those. But we're getting support for a lot of these products as they go forward for a long time.

Steve Daly: Yeah, that is part of our strategy. As we recognize, we've got multiple products that do the same thing, right? And let's use the example of RES work space and absence, environment measures, both are doing the same thing. Our strategy is to absolutely support those customers on both products going forward. We've designed and built our investment model so that we can continue to support both of them as platforms get upgraded, as we have needs, bug fixes. All of the things that you would normally do to keep the product going.

Now, some of the...and then we've also made an investment to integrate those products into the rest of the portfolio. So if, for instance, you're a DSM customer in endpoint management, you will be integrated into Ivanti Cloud so you can leverage all of the...

Steve Morton: What is the reason that this...

Steve Daly: To continue with that product. Now, we have to, by definition, make some bets on where kind of the bleeding edge innovation is going to go into those. So, we pick a product that indicates the absence product, or work space management absence. We'll continue to do kind of the bleeding edge innovation in those products. We'll bring in a lot of the features from the other products so that at some point we'll be able to kind of get everybody on a single product. But that could be four or five years.

Steve Morton: Yeah, absolutely.

Steve Daly: And we've committed to support all these products for at least four years into the future. And so, security is a great example. There's good progress we've made over the last year where we're at early preview mode for ISEC products which is about, "How do we bring together the three different app control technologies we have, the different patching of all into one product and give a nice seamless kind of upgrade path for a customer, whether they're an EMSF customer from EventGen or as Ivanti patch customer, or endpoint management customer, one place to bring those together.

Steve Morton: That's interesting. ISEC is in controlled release right now, controlled, and then we're going to make a bigger announcement here shortly about its general availability which is going to be exciting. Again, it's a good example of we're not forcing anybody to come off of a product. We're trying to innovate and also make sure that, even if you're on an existing product, we'll give you good reasons to upgrade or to make a move. Again...

Steve Daly: Which is not to...you'd still be able to take advantage of the entire portfolio. The integrations will happen and you'll be able to continue with the product that you're on today.

Steve Morton: Going to Spain here in a few weeks, and for our Interchange event, the Spanish or the European Interchange got a lot of partners on it. I think it underscores of partners in our community. And it felt like we made a change on this maybe a couple of years ago where we started to use more of our own...more of our partners' ability to do implementations and things like that. Do you have that same sense? Do you have that same sense that partners are increasingly important in our model?

Steve Daly: Yeah, absolutely. It's part of our strategy, it's part of our recognition that in order for us to be able to scale like we want to scale, we're going to have to leverage our partner community. And, you're right, it has been different over the last couple of years. We've made some changes to the program. We've made some changes philosophically and culturally within Ivanti, and have put a lot more emphasis on going to market with our partners, making sure that they're enabled, making sure that...trying to reduce any friction in the go-to-market where we might be competing against our channels. So, I think we've got most of those. There's always the tweaks.

Steve Morton: Of course.

Steve Daly: I think we've created, you know, take some friction out where we can work together with our partners and be successful together. And also, really, make sure, do it in a way that we can be sure that our customers are getting what they need.

Steve Morton: The quality experience.

Steve Daly: Quality experience. They're feeling the love from Ivanti through those partners, and with the goal for both of us to have those customers for life.

Steve Morton: Yeah, agreed. I got to mention the Interchange coming up. March 11th through the 14th in beautiful Madrid, which is...Spain is an awesome country to be there. And so at the start of the year, we're doing an Interchange in EMEA, and we're excited to be there. And then in Nashville, where we... Is there truth to the rumor that Toby Keith is...that's the only country person I actually know. I really don't know him, but not true, just to be clear. April 29th to May 2nd, and again, we talked about the importance of those two events, and we'd love to see you there as well.

Hey, a couple other things, and we've got a couple of questions here, and some of them that are really specific. We'll take the action item to have folks from our product teams connect with you. We appreciate those questions. I want to talk a little bit about this concept of customer for life. You mentioned it earlier. And we're about ready to do again our sales kickoff or company kickoff, and it's a top goal of yours in 2019 to really embrace this concept of customer for life.

Steve Daly: Yeah, it's something that we consciously began focusing on in 2018. It's under the name Customer for Life. It's a principle that we've felt differentiated us in the market anyway. So, this idea that we're getting big and we've got to scale, we've got reach, we've got all benefits to kind of scale, but we're still small enough that we can give our customers the different experience than they're going to get from one of these ServiceNow or Microsoft through any of these big companies.

And so, that has been the kind of the principle for a decade for us. But this is really now, taking that to the next level of saying...and it began with our efforts in Interchange last year where we said, "Okay, what is that customer journey look like? Where are we doing well? Where are we doing poorly?" That is translated itself into a program, a formal program, where we look at each customer, how they are doing in our...are they happy, are they not, where we look at, "Do they need a little more help right now? Is it in the form of executive attention? Is it in the form of more support? Is it more sales and understanding how to get more out of the product?" It really is meant to be, "How do we make sure that our customers are successful, and they want to continue to do business with..."

Steve Morton: It's a business strategy as well. I mean, it's certainly... Look, I think we're known for being good people, for being approachable, for that type. By the way, people like to do business with us because I think we're good folks. But that's a differentiator for us and I'm excited to know that we're not going to lose that as we continue to grow.

Steve Daly: No. And people do business with people, and we want to do business with customers that we like businesses with, customers like to do businesses with us because they like that. But, at the end of the day, our customers have to be getting value from our products, and has to be providing a return to them in their environment in order for us to be partners for life. And so, that's the goal. This program is...make sure our culture of approachability and we're just here to do business, and get things done together, come through at the same time making sure that everything that our customers do with our products provides return.

Steve Morton: Good. And, yeah, it's an organizing principle, it's who we are, and I think that's one of the reasons people do business with Ivanti. Well, good, Steve. Thanks for sharing. Again, we have some specific questions and things, we'll have a chance to go through and call with some of these questions, and contact you. We have your contact information, and there are some probably specific stuff over here, but we appreciate you joining us. We're going to... Our promise to you is we'll keep you in the loop. We'll have another visit in the coming months, and I don't know, I'm excited about 2019.

I think it's going to be an awesome year for the broader Ivanti. And I love the fact that we call ourselves Ivanti now. That's one of the things, as you and I traveled, I don't know, we went to 23 or so different offices this past year, and every one of them felt like Ivanti. It felt like that Unified experience and Unified company that we've been trying to build since two years ago when we've made these changes. So, thank you all for joining us. We appreciate it. And we look forward to following up with a few of you, and we appreciate you being our customers more than you probably know. Thank you, everybody.