Google Cloud NEXT '17 - News and Updates

How to use Chromebooks to build and advance teams (Google Cloud Next ’17)

NEXT '17
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(Video Transcript)
[MUSIC PLAYING] SEBASTIAN SCHEITER: So first of all, thank you. Thank you for joining. I know this is a late session, and in some cases I am between you and happy hour, or a drink, or a restaurant. So I really appreciate it. We'll try to make this as informative and as helpful as possible. Really great to see some familiar faces. There some customers out there and so, great everyone for attending. We're going to try to do two things here today. We're going to set a general baseline on what Chrome is, where Chrome OS came from, how the Chromebook came to be, where we're going with Chrome. And David, one of our lead PMs is going to help us do that. And then we're going to switch the narrative a little bit and look at Chrome, really, from an operating system perspective and walk a little bit through how customers are using Chrome OS today to solve very, very real problem, specifically in manufacturing and specifically in retail. So without further ado, David, take it away.

DAVID KARAM: Thank you very much. So I'm David. I'm a product manager on the Chrome team. And it is really my mission to make this device a beautiful device for the enterprise. And what I want to do today is tell you a little bit of the brief history, just so you know where Chrome OS came from because I think a lot of these sweet sauce or the secret sauce of Chrome OS comes back from the Genesis. We will talk a little bit about that, back in 2010, what were the founding principles and how far we've come since then. So, talk a little bit about the milestones we've had along the road. And from then, talk a little bit more, why is this a great device for the enterprise and all of the different value propositions it's bringing to the table. So starting off with a brief history, this is the CR48. This was actually the very first Chromebook. That was back in 2010. And Chrome browser has been picking up all across the world, right? A lot of workloads were moving to the web and people within Google thought, what if we could actually make a computer that is built for this world where everything is in the Cloud?

What if your computer didn't suck? It didn't take minutes to boot up. It could boot up in seconds. What if all your apps and all your data were actually delivered from the Cloud, and stored in the Cloud, so that you can secure them remotely and you can deliver them remotely? And what happened was, a bunch of engineers actually got together and hacked what you see here. It was a Chrome browser in full screen. They removed a lot of the bloat in existing operating systems, things that we check, for example, for the floppy disk, so move that away. And then have a very, very slimmed down run time, which ran only the Chrome browser. And what they had was this Chrome browser running in full screen and a keyboard, and that was basically a book with Chrome and Chromebook. So this was the Genesis. And since then, a lot of meat has been added to the OS, right? There's been a more elaborate runtime system for apps, there's been a launcher shelf– everything you tend to relate to a traditional operating system environment.

But throughout all this and since then, we've actually never let go of the founding principles which were speed, simplicity, security. So even seven days down, seven years down the road, this thing still boots up in five seconds even with the [INAUDIBLE] system, which we're going to talk about later with the Play Store. We still boot up in five seconds. So this is the joke now, that Chrome OS is actually the fastest booting Android phone. And that is very true. Five seconds you're in, you can actually use your Android apps. So we've never really sacrificed on this. Simplicity is, again, one of these things– both user-facing simplicity and admin-facing simplicity. It should be very easy to use. There's no clutter on the desktop. Your apps are there. Your data is there. It's all very clear to you. And even from an admin's perspective, it's very, very easy to scale for tens of thousands of devices in a fleet with very little management overhead. And finally, security, and this has been really the cornerstone of Chrome OS because we've built it– always every single feature we've added, from the very basic boot sequence of the OS, all the way up to the apps that are on the system, they've been built with security in mind.

And we're going to talk a lot more about that during this talk. So what happened since then? Since then, and if we fast forward now to Q2 2016, we actually became the number one device. Back in 2016, we actually became the number one device in education. And the schools actually loved that value proposition of speed, security, simplicity, but even went beyond that for them. Sheer ability was a big thing because if you look at schools and how they deploy Chromebooks, they just bring them in a cart into a class. And then, students just pick up a Chromebook, any Chromebook, from the cart, log in, and they have everything they need there. And we're going to talk more about that. And Seb is going to talk about how even enterprise customers are using such models in deployment, what is actually a very, very interesting thing. Another thing that they latched onto was management and manageability. Because schools traditionally have had, they're not extremely tech savvy and they have very little IT resources.

So now, I'm a district and I have 100,000 students. How do I actually deploy Chromebooks across the 100,000? And today, we have examples in the field where you have tens of thousands of Chromebooks with maybe two or three IT admins supporting them full-time. And this is something that, really, you cannot do except with a Chrome device, out of all the options you have on the market. And riding on all that momentum, what happened in Q2 2016 was, IDC came out with this report and said, actually Chromebooks have been outselling Macs in the US for the first time since their inception. And this was a very important milestone for us because, at this point, we felt really, really good. And we knew we were going in the right direction because, not only did we think this was a good idea, but, actually, the market was voting for this. And people were voting with their money. And for us, this is really very, very important signal. And we don't take this lightly. We're actually very happy with it and you just, we're going to keep innovating.

We're going to keep driving things in this direction. And a lot of the stuff we're going to tell you about today, also, in terms of what to look out for with this product, we tend to keep this trend going forward and moving and taking more and more market share in the laptop and the convertible segment. And we didn't stop at EDU. Because this was great and it was great to have this very nice use case with education, but we actually focused more on enterprise. Because what happened was, all these value propositions actually ring very true for the enterprise as well– speed, simplicity, security is a big thing, right? Shareability, manageability, they're all things that enterprises really want. And what happened was, even without any strong push from us, small and medium-sized businesses were pulling Chromebooks off the shelf, just like regular consumers were doing, and then were using them in the workplace. And what we wanted to do, we went and talked to these customers and figured, why do you actually like your Chromebook?

And our intuition was correct, that they actually– all these things that we care about and we're developing in the product, they loved and they were buying into it. And we asked them, what more do you need? And we got a big laundry list. And then, we of course, had over work cut out for us. And we've been spending the last two or three years building for the enterprise. And the results have been amazing because, for one, this number you've seen here on this, we're selling almost a million laptops into the market every year now. And this is a very, very major milestone for us because, again, it proves that we are on the right trend there. And we're going to keep going in this direction. The other one is, we've also signed up a lot of big, big companies. And this has been our transition, from just supporting this very small and medium-sized businesses were already on G Suite, and going to these more larger companies. So we wanted to make sure that, even in very complex computing environments, if you think of enterprises– about their networking needs, about their virtualization needs, about their security needs– it's not easy to come with an option that satisfies all the, that checks all the boxes for these enterprises.

So, after a lot of hard work, and we've been able to sign up a lot of major deals, and we've seen Chromebooks become more and more of a viable alternative for these big companies and in very, very complex environments. And of course, this is– we're going to keep investing in this field. We're going to make sure that whenever you take a Chromebook, even if you have a very complex set-up in terms of networking, in terms of identity, in terms of apps, that Chromebooks can actually compete with any other device that can be out there on the market. So what I want to do now– and this is, give you a bit of the genesis of this, where it started and how we took those founding principles and built this operating system around it and all the major milestones we've passed through. What I want to do is deep dive a little bit, right? How did we take this device– that was just the browser and was built for the Cloud– and how do we make it, now, a mature operating system that keeps building for the Cloud?

So we start from a very basic level, right, even on the operating system level. What you should know about Chrome OS is that, actually, we provide the images and we deliver the images for the operating systems. And it's very different from traditional operating systems, take example, Windows laptops, you need your IT admins to have images that then they take on a stick and then they put and they burn on the hardware. That is not true of Chrome OS. Chrome OS, Google manufactures all the images, of course, in partnership with OEMs. But then, we deliver them off of our Cloud. And this makes a very, very big difference because now we know which versions of the operating systems are out there. And we can push things like management, like apps onto those operating systems and we can make sure that all the systems are up-to-date. And this is very, very important because it has very strong security implications. We know that if any vulnerability comes in a Chrome device we can actually patch it and update all the devices in the field within 24 to 48 hours.

And this goes back to the fact that we know of all these images and we provided these images in the first place. So here, the Cloud perspective, even on this very low level, which is for the operating system, plays in and allows us to deliver an experience first of all, that is uniform across all devices and that is very, very secure. Now, we take this a step further because the reason admins say, for example, have to burn images onto hardware is because they want to provide a certain experience, right? And what you want to do is, not just deliver the image, but deliver all the capabilities on top of that image. So now we have the management layer for Chrome OS. And this is where you start customizing the experience for both your users and your devices. So we support north of up to 100 policies on the device, and these deal with anything from user management, device management, app management, and network management. So now you get this device– true, you can not burn the image, but then you can go to a web console, click a few buttons, and all those images just transform and they become tailored to your use cases, to your users use cases.

And if we take a look a bit deeper into each one of these, for example user management, you can define which URL's in the browser the user is actually allowed to go to and which are not. You can find which printers a certain user can use. And this is very important because now, you can actually tailor the experience for that particular user. And these policies, because they're delivered from the Cloud, they can actually follow the user anywhere they go. So the user picks up another device, even their personal device, and they log in, these policies follow the user around. So now, it's very, very interesting because you have the same management instance regardless of which device the user is using. And this will come to mean many things, right? It means now you can have a cart model where you just bring cart in and users can pick up any device they want, mainly because, as soon as they sign in all the policies that need to apply to them will apply and the experience they need to have will be on that device.

If you look at device management you can set things like sign-in restrictions, who can and cannot sign-in into the device. So that allows you to actually secure your devices. You can set things like [INAUDIBLE] and even configure these devices to be public sessions or kiosks. Now, this is very, very interesting because now you can use your devices in different ways. Suppose it has been with user first for one year, but then you want to repurpose for something else. You actually don't have to touch the device, you just send it somewhere. Click a few buttons on the Cloud and then the device is automatically repurposed. So now it was something the user was using every day to do their work, but now it's a kiosk session in your lobby where users can come in and do work across the device. Now, we look at app management. And this is also important because you don't want to just manage the devices, you also want to deliver apps on which users can do their work. And this happens also from the Cloud because you have– all apps that can be delivered to the Chrome device can only be delivered from the Play Store or from the Chrome Web Store.

And again, you go to the console, you click a few buttons, and the users have the apps they need. And the same applies for networks as well, VPNs, certificate provisioning, flows, all of that can just be pushed from the Cloud and tailor made for the particular users without ever having to touch the device itself. Now, a little bit of note on app delivery, and this is actually quite interesting because since all the apps that can come to the device can come from the Cloud, there are many things that become possible, right? These app policies are actually user policies. So again, a user can just sign-in into any device and those apps are delivered within that user session. So that makes it very, very interesting and would not be possible otherwise with, say, for example, if you have executables on a stick, which are distributing. So there is a lot of benefit for all these workflows actually coming from the Cloud because you can control them easily and remotely and this allows you to scale, as you mentioned, for example, with schools with 100,000 users with three or four IT admins.

So it becomes a huge benefit with scale and you don't have to maintain servers to deliver apps, you don't have to maintain servers to deliver files and operating system updates. And now, once everything is in place for your users– of course your users on those devices are going to be doing all sorts of stuff and generating data. They might be making modifications to the operating system, adding bookmarks, pinning items to the shelf. And we have many technologies, Chrome sync, Android backup and restore, Google Drive, all these technologies actually allow you to save all that state that users generate in the Cloud. And this is very, very interesting because the moment that your users go somewhere else on another device that state comes back to them, right? And so you don't have to worry that something got lost because a device got broken or lost. The user can just move to another device, any device, and all that stuff would actually follow them around. And, last but not least, I just want to tie this in with security because its such a core principle for us, and show you that for us, security is not just client-side security.

Our goal, of course, is client-side security, but we actually leverage the Cloud a lot with that. One example of that is delivery of apps. If you look at the Play Store and the Chrome Web Store, we actually have automated systems in the Cloud to do malware detection. This means you don't need to do malware detection on the client because the combination of server malware detection and management on the client allows you to install only a very specific set of apps and nothing else. And you offload that task of checking for malware and scanning malware to Google because we have very elaborate systems on our backend. And the moment malware is actually detected we have the ability to remove all, you, and even Google, has the ability to remove that very, very malicious app if it's detected from any system out there in the world. Another one is, as I mentioned, OS and app updates, which happens automatically from Google servers. And this is very important because you don't need an admin in between to actually take that patch and apply it to the devices.

And first of all, it removes the burden from the admin, but second of all, it also removes the margin of error. You can't forget a patch or you can't have a system out there in the field that is just not being updated. The third one is management and, as you mentioned, because this is coming from the Cloud we can actually make sure that it follows the user around. And this is what we mean by cross-device policy compliance, you can make sure that your users on any device are compliant. And this has very strong security implications because if you have certain policies in place meant to secure the endpoint, you can be sure that these policies are following the user around. And, last but not least, I actually want to tell you about one new technology we developed, which is verified access. And this is, again, uses a combination of client and server. And this allows you to cryptographically guarantee the integrity of your endpoints. So we know that Chrome OS always goes in very fine boot and you can guarantee that the code that is running on the system has been verified to be signed by Google and deployed by Google.

So we have a good sense whether malware actually exists on the device. But then again, on your servers where you have sensitive data– so for example, on the server that provides a certificate for the user to access the network, or the server that provides email– you can actually come back and ask, is this a Chrome device and verified boot and is this a Chrome device that has enterprise policy applied to it? And Google servers can answer you with a yes or no. And the very interesting thing is that this yes or no is a cryptographically-sealed promise from Google because it's hardware bound and it's leverage uses the TPM. And it's very different from everything else on the market where these checks are much more based on heuristics. So if you take the same kind of software that does integrity checks on other platforms, it will check, for example, is there a lock screen, is there an anti-virus running on the device, right? So you get these checks they are actually hardware bound and this is very, very unique in the laptop market.

And again, it's a combination of delivering things from the Cloud, you enroll with the Cloud, but then your device boots up and does verified boot. And then you can combine the two to deliver a very, very secure implementation, which is along the lines of everything I've mentioned on the slide. So now that you have a very good sense of how we leverage the Cloud to actually do all these things on a Chrome device and all the benefits from that, let's talk a little bit about how we actually think about Chrome devices and where we think the sweet spot is. And for us, the sweet spot really is on this intersection of mobility and productivity. And as we look at the market, we see devices like, for example, the Windows Surface or the iPad Pro, and you look at them– with the Surface is a great device for productivity because it runs the Windows OS, it has the range of Windows apps, but then again, if you flip it around it becomes a tablet. It's not really, doesn't really have that mobile sense to it, right?

The apps are not optimized for touch, they're not really working well in tablet mode. The iPad is kind of the complete opposite because it has all these apps that work really well in the mobile sense. But then again, it doesn't have multi-windows, it doesn't have the things that actually you would need for a productivity-based device. And what I'm going to try and show you right now is where we combine both with Chrome device so that it really becomes a strong contender in that space. So when you talk about mobility– and this was the big announcement we made almost a year now ago in June in IO last year, which was support for Google Play on Chrome OS. And this was very, very important because it solved some very basic problems with the Chrome devices, right? Number one, it was the app gap, right? So Chrome was a beautiful device. We all loved it and it had all the things we mentioned before, but then you didn't have the breadth and the depth of apps of the [INAUDIBLE] system that you needed.

And you didn't have the developers engaged in providing and bringing their apps onto the Chrome platform. And Google Play solves a lot of that, right? Because we have a very good story of compatibility. So any app that actually runs on your Android phone is capable of running on the Chrome device without any modifications. So now, we actually get all these apps that were built for Google Play onto the Chrome device. And this is very important for us because every single software vendor, enterprise or consumer vendor, is actually on the Android platform. And this allows us to bring these all this capability into Chrome OS, which makes it a much, much, much better device fit for, not just for mobility, but overall enterprise and consumer viability. The second one was offline, being a device that's relied very heavily on the browser and on the web meant you always needed an internet connection. Now granted, the web is making strides towards providing offline capability with things like service workers and, even if you look at G Suite it has very, very good offline capability, but those tend to be the exception.

Most apps on the web are written with online in mind and some of them support offline. And, on the Play Store you actually have the complete opposite. You have apps that were written with a very strong sense of offline because most of the time your phone is actually not connected to the internet. So now, we have this huge breadth of apps that actually work well really, really well offline. And once they connect back online of course, they sink their data back to the Cloud. So again, using things like Android backup of the story, even the apps, within the logic themselves, you have data backup, right? You have the offline capability but without the downsides of offline, which is what happens when the device gets lost or what happens when it gets stolen. The third one is native capability and this was something we found lacking in Chrome OS for a long time. We didn't have a very rich set of APIs. So if you were a developer, say if you were Citrix or VM or one of these developers, where you need a very elaborate API surface to actually provide a rich experience, you didn't have that on Chrome OS.

But if you look at Play developers and what they have, in terms of developing Android apps, they have a very, very rich set of APIs. And they can use that now to actually bring these experiences to Chrome devices. And this brings me to my last point, which was developers story. And now, developers have a very, very decent story in terms of bringing apps onto the platform. Right? Develop an Android app, right, if it actually needs a very rich set of APIs, needs to do hardware interaction, it needs hardware acceleration, it needs a touchscreen, all these things, now you have a very clear path towards bringing your app over onto the Chrome platform. And of course, this was all software. So what we really need here is the form factor to match that, because bringing in the Play Store, we also want the form factor that brings the best out of the Play Store. And these were two of the devices we've launched recently, which was one with Samsung and with Acer. And these devices actually become tablets and they have a stylus.

So it's actually very, very interesting overlap between everything the Play Store gives you. So now, you can use it as a tablet, but then also flips into a laptop– so for all your productivity needs as well. And the stylus of course brings another one of those mobile feels to it. And we're working with different software vendors and actually getting the best out of this form factor. So in looking forward, we are actually working with a lot of these app developers. So, it will be companies like Citrix, VMware, Mirosoft, Adobe, and even within Google itself, we're working with a lot of our first party apps, developers, things like Hangouts, G-mail, G Suite, to actually bring the best of these apps onto the Chrome devices. And moving into 2017, and also into 2018, expect to see a lot of that, a lot more devices like the ones I just showed, which bring out the best of the Play Store, but also a lot more partnerships with app developers to bring more desktop great capabilities to these apps and make them work really, really well on a Chrome device.

So now that we've looked of mobility, let's take a little bit at productivity as well because this is not just a device that can help you do your mobile work or help you when you're on the run, it should also help you when you're on your desk, when you want to connect to a multi-monitor and actually do work for say, two or three hours in a row. So how does Chrome OS fair there? We think it actually does pretty well. It's a very highly performant OS and there's a lot of performance you can get out of a Chrome device for much less hardware. And I think some people mistake this sometimes or see it from a wrong angle because they think, oh well, you know, Chromebooks are low-end hardware. Well, there's a different spin to it and it is the fact that to get the same kind of performance you get say, from a $1,000 laptop, you actually only need to throw $600 worth of hardware at the Chrome operating system. And this was because the operating system itself is very light and has been built to be very light.

And this doesn't change, even as we bring the Android system onboard. Because if you think about the Android apps, and apps from the Play Store, they've actually all been built to run on very low-end hardware, phones, ARM chips, very little memory. So now, you take those apps and you put them on a laptop, which has an Intel processor and these apps are really, really snappy. So all these things combined, the lightness of the OS and the fact that all the apps were built anyway for low-end hardware, means you can throw much less hardware to get the same experience. So now, if you want to do a premium Chromebook, we would not need to throw more than $1,000 of hardware on it to match what you would need to buy for $2000 from a different vendor. And moving onto that, we also make sure that the experience within the operating system supports these productive use cases. So, not only have we brought all the apps from the Play Store, but we make sure the integration of these apps actually works really well.

So we look at things like multi-sized windows. You can actually resize your windows, things you're actually used to doing on a laptop device, but they weren't really part of how Android was built– look at things like multitasking, multi-profiles, integration with keyboard, integration with multi-monitors. So all these things we try really hard to make them work really well because we do want this to be perceived as a highly performant OS, as an OS that really works for enterprise workloads. Now, the second part of this, and this is where it really excels, is we have desktop-grade enterprise browser as well. If you look at Chrome browser across all platforms, but especially on Chrome OS, it is actually a very, very powerful browser. So even now when we have the Play Store, we actually don't bring the Chrome browser from the Play Store. We use the same Chrome browser we have on Linux and on Mac because we do want you to have this desktop-grade experience– pushing extensions that have to do with productivity.

And it is fully manageable, as is all of the other OS. So everything we said about management applies to the Chrome browser as well. And it's very, very highly performant, even under massive workloads. So depending how much hardware you have in your hand, you can open up 20,40, 50 tabs. The thing will actually be able to run really well with them. And just to make sure we know as well that, this is not just for when you have a laptop in hand because what we are doing now, and based on the form factors we're coming up with, which can become tablets, we are making sure that the Chrome browser, even the desktop version of it, works well and is touch-optimized and it's working offline capable. So we're bringing the newest versions of Chrome that have technologies like service workers, but we also optimizing a UI so that it's touch-enabled so that when you do flip into a tablet form factor, or using the touchscreen, Chrome browser, even in it's desktop version, is working really, really well.

And one last point here is that as we drove these enterprise integrations and we brought better support for enterprise use cases, what we've seen– and this is a big part of the work we've done over the last few years– is that integrations across the board for everything that enterprises need, so everything ranging from identity, networking, certificates, storage, and virtualization, all these things we're actually not fully possible on a Chrome device if you look three years ago. If you look at identity, for example, the only way to log-in to a Chromebook was through a Google account. Now, you can actually log-in with your Active Directory account, Ping, Okta, Clever, so whatever your identity provider is, as long as it's Salmon compliant, it can actually allow you to log-in to the Chrome device with it. If you look at storage, the only way to do storage, like Cloud Storage on current devices, in the beginning was through Google Drive. But now, we've added support for third party storage providers so now, if you're a Box or Dropbox customer, or even you have your own network fileshare on Pram, you can connect the Chrome device to that.

And for all legacy app needs, whether you're doing full desktop virtualization or just app virtualization– working very, very closely with vendors like Citrix, VM, or Amazon WorkSpaces– to bring the best of virtualization to the Chrome device as well so that even as you migrate away from the Windows environment into the web and into Android workloads, you can still get access to the old apps that you still need to run for your users. And just to also mention, that we mentioned form factors are convertibles as well, but that doesn't mean we're not actually working really hard to also produce really great laptops. And this is where I put this in more of the productivity sense. These do have, many of these laptops actually have touch screens, but they are made to be more like fully-formed laptops. And we are working with these vendors, with OEMs like HP, like Lenovo, to bring, for example– this is Lenovo's ThinkPad– to actually bring those devices onto the market because we do believe that there is a very big market for this.

And we want to have more and more high-end specs. Because for EDU we had a lot of success in the lower end of the hardware spectrum, but we realized enterprises have much, much bigger needs hardware-wise. So we are working with these vendors, actually bring all that onto the platform. So with this, I'm going to hand over back to Seb because, to give you a break from me, but also because he wants to tell you about how all these things, we're actually seeing them in the field and how customers are using all those value propositions from the Chrome devices to make very, very large deployments. Thank you. SEBASTIAN SCHEITER: So I really don't have too much more to add to David's points, but there are a couple of things I do want to highlight when we look at this and how this actually translates into the field. And I'll hopefully share some sound bites from customers like yourself who are actually using this beyond the Chromebook form factor. I want to pivot the narrative just a little bit away from Chromebook or any specific Chrome OS form factor and really want to focus on Chrome as the underlying system for virtually any of your screens in the enterprise, whether it be the knowledge worker, the power user, whether it be for signs, and thus contextual information, whether it's basically Chrome powering a kiosk, or for that matter, video conferencing technology.

The reality is that one common theme that we hear from CIOs in the field in IT leadership is that they consider Chrome as a future-proof platform that allows them to deliver on their two to three year roadmap. So I just want to pause there and I want to just underline that. That's really, really important. So we're moving away from this narrative of Chrome being a hardware player and we're really– the message that is resonating is that Chrome is now a full-fledged operating system that can virtually power all your screens, right? So when we talk to IT leadership, rather than looking at this as a very tactical hardware replacement game, this is becoming much, much, much more strategic. Now, in reality, and we know this because we've toured a lot of companies, every CIO has a mandate to move into the Cloud, whether it's infrastructure, whether it's a platform as a service, whether it's software as a service, whether it's fully embracing GCP, or whether it's to deploy that one single app that lives in the Cloud that has to be deployed to numerous endpoints that are geographically dispersed.

We think, and this is something, again, that echoes in the field, that Chrome can play a really, really important role to make that smooth transition into the Cloud. And while we, frankly, think about future-proofing, we really want to make sure that the customer and ourselves, we really put these four core pillars back into focus. Because at the end of the day, and I know this is repetitive, these are the key attributes that virtually any success or any project that we're going to be involved with is going to be measured against, speed, simplicity, security, shareability. And personally, I think we can truly help with these four attributes. Anecdotally speed– I was told not to use the logo and not to use the name. So I'll try to be as cryptic as possible here, but– speed, we have a customer in the Chicago area that is essentially using Chrome kiosks attached to a touch screen where associates on the retail floor input customer data. That data then gets sent to the cashier and at that point, hopefully, the sale gets converted.

Right? They came to us because of speed because even a 10 second lag in that transaction actually impacts the bottom line. An unscheduled and unplanned reboot of that terminal has detrimental effects to their PNL. When we look at simplicity and we preach the story of, we're Chrome and we want to power multiple endpoints, multiple screens, we've got to make sure that the user that is using each and every one of those screens has the same user experience and has the same user interface across all these screens. Security, this is arguably one of, I would say, the loudest USPs that we hear in the field where people want to talk to us, I have a really cool story there. We have a customer that actually has a corporate policy that when their executives travel abroad they're supposed to hand in their primary device and pick up a Chromebook for the duration of their trip. In that specific case, we actually boot into a virtual desktop. God forbid, if that device then gets lost or left in a cab in Shanghai or Berlin, it's a $200 write-off versus a pretty substantial data leak.

And then shareability, if you listen to what David said, you can sense that this paradigm of one user to one device really no longer exists. We ran some numbers with our customers and it turns out that over the course of a day the power worker, the power user, uses five devices. So we're starting to see this 5 to 1 ratio. And arguably, if that's the case, that we need to make sure that you take a device, you log in or you not log in via certain kiosk sessions, and it becomes a seamless experience when, at the end of the day you pick up a different device or you go home and continue where you left off three to four hours before that. and that's really, really important. Now, if you take the device management and layer them on top of these four core principles, this becomes a very, very, very powerful enterprise story. Because yes, Chrome– we all get this and we all believe in this– but all of a sudden you can take devices and you can repurpose them and you can allow the shareability by a centralized Cloud-based Management Console.

We have customers that have thousands of devices deployed in the field that are catering to 100 different use cases all based on policies that one IT admin in North America is essentially administering. And David has said this before, whether it's a user setting, whether it's a hardware setting, whether it's a certificate setting, all this can essentially be manipulated, pardon the strong word, down to the device level So let me put a little bit of meat to the bone here. Specifically in retail and specifically in manufacturing, we have seen Chrome devices being used to optimize employee workflows. And one of my colleagues on the strategy side and I, we went and interviewed customers and we basically asked, what is the problem statement that we should be solving for? And this is essentially the output. This idea that, , throughout the course of the day you have one device that caters to multiple users, to multiple use cases. Historically, if you look at all these segments, those would have been a fleet of devices, but in this case, the Chromebook starts in the back of the office, the user logs in based on his or her user settings, but throughout the day, and again, this is someone retail biased, throughout the day that device actually migrates to the front of the store.

That device then becomes a product look-up, a catalog. It becomes a digital sign. In some cases even, it becomes something that can give you contextual information. In this very specific example actually, this device at some point gets handed over to the customer and it floats around the actual brick and mortar real estate. And at the end of the day, the employee picks up the device and puts it back on the Chrome cart. That's a pretty cool story given that this is also a $300 endpoint. Historically, you would have solved for that with multiple $1,000 endpoints. So I always like to call it the conversion-on-the-fly scenario, but if you think about it, this is now really a departure from the Chromebook and EDU story. This is something where we're actually impacting workflows and we're trying to create effectiveness amongst the associates. One really additional example here, specifically in the manufacturing space and if you've attended some of the previous sessions you know this, is what our good friends at Sanmina are doing actually down the road.

Sanmina, large manufacturing company, part of the Fortune 500, they basically, are using Chrome OS devices to replace paper-based processes. And they started on their manufacturing floor creating, and this looks somewhat manual, but I can guarantee you it's actually pretty cool, they've taken a large touchscreen, they have taken a Chrome box, attached it to it, and they're booting up multiple kiosks in multiple apps based on the user, based on that user's credential. For temp workers, those people don't actually have to log into the application. It just boots up a public session, what I would consider, basically, a managed guest mode. Now, they have increased these employees efficiencies, but what's nice is they came to us and said, we believe in Chrome being the underlying platform for our future and we need to start somewhere. And this is essentially where they started. So they created the subset of users, they deployed rapidly, they had about 2000 of these endpoints in the field right now, and are now organically growing into other use cases.

And as Rajin, our lead PM, said earlier today, they're now really focused on the knowledge worker and making that happen. One caveat, I should say is, they are G Suite customer and I believe they're a GCP customer as well. So they are going in all Google, but it's great to see that obviously devices and Chrome are one of those substantial endpoints and workflows to make this one Google story happen. Now, one other great example where a company has started small and the story and the adoption has really grown rapidly and grown organically, is what our friends here at Charles Schwab are doing. And may the demo gods be with me, I'm going to try to play this video for everyone. And he's much more articulate than I am so, here we go. [VIDEO PLAYBACK] – There are multiple sides of Schwab's business. And one of those sides is the advisor side or the institutional side. And obviously, we offer a lot of products and a lot of services to our institutional customers. I'm responsible for making sure that we deliver on behalf of what our clients need.

As we were looking for solutions, bringing about a device to the branches where again, clients could very easily open up an account, we reached out to our colleagues over at Google and we asked them whether or not Google's Chromebook was something that would be applicable to what we were trying to solve. That was on a Friday. On Monday morning we had two of their top engineers engaged with my engineers here. 3 and 1/2 hours later, I get a knock on my door and I'll never forget what they said to me, they said, we've solved it. Google offered a number of services and capabilities within their Chromebook platform that were incredibly attractive. One of them was the ability to remotely control the devices. We could force them onto a specific network, our network, if they fell off that network, they would be unusable. If someone stole them we had the ability to remotely wipe them. I would say one of the unique features of the Chromebook has to do with their operating system. The device isn't burdened with a lot of legacy or with a large OS.

Instead, the experience is, you open the Chromebook and 10 seconds later you're online. Because of the kiosk capability that the Chromebook had to offer, when one of our clients came in to open up a SIP account, it was start up a new session. And as soon as I Chromebook was closed, session gone, everything gets erased. The full roll out and development started with a number of weeks of user engagement. We would take the Chromebooks out to specific branches, test it out, and then from there, it was making sure that the device could stand up and do exactly what we need it to do, but do it at scale. When you're working with a firm that's got hundreds of branches out there and you're going to eventually deploy well over 1,000 of these devices, the ability to control them from a central location is absolutely paramount. Really, the Chromebook was the one that met our needs. They work at any time, all the time. [END PLAYBACK] SEBASTIAN SCHEITER: If some of you noticed, that was still our old logo, Google for Work, but no one saw that.

So I was very closely involved with the Schwab deal and the Schwab use case. And again, a great example where they had a very clearly defined problem statement, a very limited time to get something converted. And we got to work. The reason I would say it worked so well is because, quite frankly, the only ask that I would always have engaging with clients is giving the problem statement and predefine the users that we should work with and we will solve it out. And if it's not a fit, it's not a fit, but that's how I would start. These are not my words, but they're from the Wall Street Journal– this was this happened late last year where, again, after a pretty strong showing last year we really saw traction and saw momentum, saw credible momentum in the enterprise and adoption across a bunch of key verticals. And so, I would encourage you to try to take that seriously and look at Chrome really as a formidable player in that space. When prospects and customers ask me, that's great, Seb, but where do we go from here?

How do we even tackle this thing? Because we all know, either from a client perspective or even from a manufacturing perspective, tackling the OS space is 35 years of legacy architecture. That's really, really scary. So the piece of advice I would have is, start small, deploy quickly, and grow organically. And what do I mean by that? If you start small, again, pre-defined users, give us a problem statement that we can solve. So in the Sanmina use case it was basically replacing paper-based processes, doing something very, very tangible within their supply chain, within their workflow. Deploy quickly. I know we live in this world of pilots and POCs, and they're all real and we shouldn't forget about them, but in reality, give the device or give the solution to the user and let them decide. I'm a big fan of just, basically, ripping or replacing and just seeing if it works and if it doesn't work then that's a valid feedback and we'll move on. So the deployment time frame is something really, really important.

Give it to the user, let them decide whether it works. And if we do our job right, then I do think that there is this organic growth pattern within the enterprise across all your screens that will make Chrome successful. And that's really, frankly, what we're here to do, and that's what my team is there to do, and that's what David's team is here to do. [MUSIC PLAYING]


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Get an in-depth look at a new type of computer for everything you love to do. In this video, you’ll hear about Chrome’s cloud-based capabilities and learn how your organization can make the most of the ultimate shared device.

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