Red Hat Summit 2024 | Ajay Walgude & Nitinkumar Chavan | Capgemini

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Ajay Walgude

Vice President & Global Head of IBM and RedHat Hybrid Cloud COE for Capgemini Financial Services

Capgemini

Nitin Chavan

Director

Capgemini

Financial services leverage OpenShift for cloud-native development

The themes of cloud innovation and artificial intelligence-driven transformation headlined the recent Red Hat Summit. As companies scale and entrench themselves into digital operations, cloud-native tools such as OpenShift have become integral to data management, analytics and AIOps. What trends are emerging from the financial services sector’s AI transformation in value delivery, business automation and customer satisfaction?Financial services insights from Capgemini’s Ajay Walgude and Nitinkumar Chavan on cloud adoption, OpenShift and AI

play_circle_outline Red Hat Summit coverage in Denver, Colorado

play_circle_outline Trends in cloud adoption in financial services

play_circle_outline Role of OpenShift in accelerating adoption of cloud services in financial institutions

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Ajay Walgude & Nitinkumar Chavan | Capgemini

Ajay Walgude

Vice President & Global Head of IBM and RedHat Hybrid Cloud COE for Capgemini Financial Services Capgemini

Nitin Chavan

Director Capgemini

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Rebecca Knight

>> Good morning everyone, and welcome back to theCUBE's live coverage of the Red Hat Summit here in the beautiful Mile High City, Denver, Colorado. I'm your host, Rebecca Knight. We are wrapping up three days of wall-to-wall coverage, back-to-back guests. I'm sitting alongside my guest host and analyst, Bob Laliberte. Bob, you are an analyst, how has the conference been going for you? What are you seeing out there?

Bob Laliberte

>> Yeah, absolutely. It's been a great conference loaded with innovation, a lot of announcements, a lot of talk about open source, democratizing AI for organizations, helping organizations modernize their environments. So overall, just a lot to take in, and a lot to digest over the last couple of days.

Rebecca Knight

>> Well, speaking of innovation, we have with us two of the award winners of the Innovators of the Year Award, these are our next guests. I'd like to introduce Ajay Walgude. He is the VP and Global Head of IBM and Red Hat Hybrid Cloud COE at Capgemini Financial Services. Welcome, Ajay.

Ajay Walgude

>> Thank you.

Rebecca Knight

>> And also Nitin Chavan. He is the Senior Director of IBM and Red Hat Hybrid Cloud COE, Capgemini Financial Services. Thank you both so much for coming on theCUBE.

Nitin Chavan

>> Oh, thank you for having us here.

Rebecca Knight

>> And congrats again, on the award. That's really exciting.

Nitin Chavan

>> Oh, that's been exciting. I mean, we were looking forward for this award. It's been great to have that award and then get recognized at this level.

Rebecca Knight

>> Yes, absolutely. So Ajay, I want to start with you. Capgemini just released a World Cloud Report. I'd love you to walk through to our viewers, what's the trends you're seeing in terms of cloud adoption, and really what's happening in the industry? Give us the lay of the land.

Ajay Walgude

>> Right. I mean, before I talk about the trends, let me introduce a report itself. What does report, because this is a first of a kind report, which is very focused on financial services. I mean, it's a state of cloud of financial services customers. So this report is actually a 360 degree view of how our customers, our technology firms, are looking at all of these adoptions as well as the SMEs from the financial services perspective. So just to give the numbers how we conducted this report, so it was a combination of survey as well as interviews, in-person interviews with these unit execs. So we interviewed close to 500, of the technology executives from financial services clients. We also interviewed 200 customers and the executives from technology firms who are supporting financial services like Hyperscalers. And we interviewed Red Hat as well. We also did 30 senior exec interviews, Red Hat and IBM both interviewed for that particular thing to talk about how CXOs are seeing it. And finally, we brought in our Capgemini's domain experience. So we talk to our BAs, our domain experts, our practice leaders from the domain side of it to get that perspective. So, this report is an amalgamation of all of those. The key theme of this report really was, is your cloud journey bringing you the value that you're desired to? So it is not focused on technology adoption only, but also is it realizing the business value, why you chose Cloud for? Right? I think that was the most important thing. So talking about the trends, I'll bucket them in two categories. One was purely focused on the business value part of it. So, we see three trends. So what we are really looking at, customer experience and operational excellence are key to financial services customers. Most of these applications are already under the cloud. We believe that the cloud enabled composable platforms, that means you can compose your financial services into various processes and combine them together on the cloud, that's going to be critical for the success of financial services onto the cloud to achieve the business value. And third, there has to be a very comprehensive strategy looking at your containers, microservices, cloud-native technology, and your hyper-scaler strategy to derive the value out of that. That's the business value side of it. And you asked about the adoption in terms of the cloud trends. It's very interesting adoption. We have seen, I mean when we first looked at this in August of 2020, the cloud adoption was around 37%. And when I talk about cloud adoption, I talk about PaaS, which is platform as a service, software as a service, infrastructure as a service. That has accelerated to 91%. So, it's a significant journey in last three years. But if you look at financial services, only 50% of the applications are into the cloud right now. And those are predominantly customer experience and front-end applications. The core applications are still not under the cloud. So while there's an acceleration, we see there's an opportunity which is up there. And cloud-native, hybrid cloud, multi-cloud that's the trend that we are seeing. So if you summarize that, we know the financial services firms are really looking at the business value extraction. They are focusing on the customer experience and operational efficiency right now. Core application still needs to be on the cloud and cloud-native probably is the way. And the hybrid cloud world that needs to go there. So, that's what we are seeing from the World Cloud Report.

Bob Laliberte

>> Excellent. No, that sounds great. And I think we've seen that adoption rate as well with organizations shifting to the cloud, starting with maybe some of the easier applications to move, kind of hard to move stuff off mainframe right away, that modernization effort. So seeing a lot of those trends taking place as well. And you talked about the business results, which is great because ultimately that's what it's all about in that operational efficiency driving better results, driving better customer experiences. So, you drive your growth of your business and so forth. But Nitin, I wonder if we could dive into the technology a little bit. We are here at Red Hat. Could you talk about how financial institutions in particular are leveraging technologies like OpenShift to help accelerate their adoption of cloud services?

Nitin Chavan

>> Yeah, sure. Ajay just mentioned, and as you also read the hybrid cloud report is, most of the financial services organizations are adopting hybrid multi-cloud environment. And OpenShift is in the middle of it because OpenShift is a platform which provides you a cloud-native development environment in the on-premise infrastructure, in the public cloud, and also at the edge locations. So, this flexibility allows our customers to start thinking cloud-native right now without even having a public cloud strategy. So, they don't really have to have public cloud strategy ready. And many of our customers, like I just said, went from 37% to 91% in the cloud adoption. But that does not mean all 91% are having a hundred percent of the workloads on the cloud. I think the workloads that are migrated are mostly customer experience, as Ajay mentioned. But many of the regulatory workloads, any of the batch processing, and things like that are still on-premise. So OpenShift gives them the ability to start thinking cloud-native right now, and start moving applications into public cloud whenever they're ready in the future. So, that's one thing. The second reason that customers are adopting OpenShift is because of the developer productivity. Because developer productivity in a sense, accelerate more time to market or accelerate innovation faster. So OpenShift provides developer tools and APIs so that developer can build, deploy, and manage their application seamlessly across hybrid cloud. It provides consistent data set of experience. Doesn't matter whether developer is working on-premise or AWS with ROSA or Azure with ARO, they see the same developer console, which they can use to develop their applications. They can do a self-serve development region. So they don't really have to worry about, "My application is ready, but my environment is not ready. Should I wait for it?" So they can just do a self-serve development environment, they can get testing right away. And last, I think they have a lot of integration with the open source tools like Git, Jenkins, VScode. So, all those tools are available for them to get started right away. So all of this is really improving developer productivity and reducing the learning curve for developers. And the third thing is about the whole innovation angle. So customers are looking to do innovations just not in the public, but into the private cloud. So they need a consistent platform where they can bring the innovation faster, to bring the time to market fastest. So that's why more and more, our customers are adopting OpenShift. In fact, we have seen that there are certain industry event that has happened in the past year or so where the past cloud data platform, how reach end of life and some of the vendors got acquired. There is merger acquisition happening in the industry. And that has really offshoot the license prices for these platforms. So many of our customers are looking for a way to adopt a platform which is more open source, more well-defined, and has very strong support and roadmap. And OpenShift fits the bill and that's why we see customers adopting the OpenShift platform.

Bob Laliberte

>> Yeah. No, I think that's great. And one of my favorite expressions is cloud native doesn't mean public cloud only.

Nitin Chavan

>> That's correct, yes.

Bob Laliberte

>> And so seeing that, "Hey, we can get you started here on premises in your data center, helping to drive that productivity.", I think that's a great use case for these organizations. And that allows them to seamlessly scale into the clouds or multiple clouds.

Ajay Walgude

>> We had a very interesting debate in the executive exchange. Is it the developer productivity that is offering or developer experience? We all agreed and there were customers and then the GSIs and all of that. We all agree that it's the developer experience that is changing the world. Developer productivity, just one dimension of it. But I think that that's most important, changing the developer experience.

Nitin Chavan

>> One of our customer who has adopted the OpenShift three years back, and now most of their applications are working on OpenShift. When they were invited to speak in sessions like this in our office, so they said that, "I work with OpenShift because that's how I see my developers getting consistent. They are sick of experience. No matter whether they're on-premise or on a cloud. So tomorrow I bring another cloud, I don't have to worry my developer has to learn another cloud, because OpenShift is going to be there." And that's why we adopted OpenShift. Yeah.

Rebecca Knight

>> I mean when you think about, every company of course is concerned about safety and privacy, but financial services especially. So, how much of the trends that you're seeing are driven by security concerns and questions that have to do with compliance?

Ajay Walgude

>> I think regulators play a key role out here. I mean, the common thing which I get asked is about, "Are you moving to OpenShift or cloud network just because your regulator's asking you to do that?". I think let's look at the regulator's lens, how they're looking at. The regulators are really concerned about cloud concentration. They're worried about vendor lock-ins. What they're worried really about, are your mission-critical applications on a similar cloud? What if they fail? They also take a very holistic systematic view saying that what if the top five banks have all their payment infrastructure on similar cloud? What if it fails? It'll have a cascading effect impact. And I think OpenShift really is at the point where it gives you optionality, it gives you flexibility to choose where do you want to go to. And we are cloud native. And I think that's very important that all these trends are people concerned about security. We have vendor lock-ins and all of that. Cloud native and product like OpenShift will give you the option to move forward. I mean, that's what we see as the future as going forward.

Nitin Chavan

>> And the regulatory environment is very different geography to geography. In certain geography, regulators are forcing customers to adopt open hybrid platform. In certain geography they're not. But I think why customers are choosing this platform is because of the value that it brings to them.

Ajay Walgude

>> And what you'd see if you look at the World Cloud Report, I'm going back to the World Cloud Report, we have given examples of how the customers have adopted cloud native technologies. Be it migrating from mainframe to go into hybrid cloud, be it completely being adopting to cloud native technology for developer experience, or moving your workloads to address the regulatory needs. So, I think those are full of examples out there. So we just don't talk about the trends, we talk about where people have done that and how they have done it. Right?

Bob Laliberte

>> Yeah, absolutely. That makes a lot of sense. And I think obviously being at the show this week, there's been a lot of about AI, and so we can't have a conversation without bringing that up. So Nitin, I'm wondering if you can discuss maybe how you are seeing GenAI impact some of these customer journeys, how they're getting started with that. How Capgemini is helping them get started with their GenAI stories, and what you're seeing.

Nitin Chavan

>> And you're absolutely right. So, GenAI has become taken a spotlight in all our discussions in last one year. In fact, every discussions when we have with customers unrelated to AI, eventually it ends up with the question, "Can we do this differently with GenAI?" Right? So, GenAI is basically taking a spotlight in all our discussions that we are having with customers. So one of the use cases that customers that we are working with is more of a customer experience. But that's not the only use case that customers are thinking about. They're thinking about customer experience, financial engineering, the risk management, innovation, accelerated time to market. The use cases are wide and customers are at a stage where they want to try everything, they want to do a proof of concept. And proof for a proof of concept, they need a quick platform that can get them started. And that's where the cloud comes in . So, cloud helps them to get started. It provides them a platform with the developer tools, the necessary compute, and the required storage so that they can start building the model right away. And it also provides the tools that can do a synthetic data generation, the rapid testing, and iterations. So what makes it possible for business is they can experiment with multiple models. And they can select the one which is most effective and then bring it to market faster. So, that is where the cloud is playing a significant role for our customers. And cloud's ability to provide you this infrastructure and not making you to invest into this massive infrastructure is actually creating a level playing field for our customers. So, it doesn't matter whether it's a large customer or a small customer. So both have access to the same GenAI tools, the same data, the same storage, the same compute. And we see the disruption happening in the financial industry. So we look at wealth management, we look at personal banking, we look at mortgage, we look at insurance. There are many fintechs and small player who have come in last three years. It's because cloud was helping them to get started right away. There was in the cloud and they're disrupting our customers in a big way. So how we help to our customers is basically we come in between where we bring the knowledge and the skills to implement this GenAI prototypes with our customers, help them to get started with the cloud-native platform. Build the models, train the models, and when they're ready, deploy them so that they can win . So we did talk about cloud first for a GenAI, but that's not the only thing that our large customers are thinking about. I think they're thinking about hybrid cloud approach. So they're looking at the ways where they can build model on cloud, they can test model on cloud with a synthetic data. And once it is ready, they can bring in their on-premise infrastructure and they can deploy it, they can infer it. To summarize, yes, cloud is helping our customers to adopt GenAI faster. But also customers are thinking in hybrid cloud approach so that they can build models on cloud, but they can bring on-premise. And use it in case of data privacy or security issues.

Ajay Walgude

>> And what Capgemini are really doing is bringing all those ecosystems together to drive the business value for the customers. Bringing in those fintechs that Nitin talked about, our experience with the financial services, partners like Red Hat and IBM to bring them together to design the business value. And that's at the end of the day.

Rebecca Knight

>> Excellent. Well, said from the innovators of the year. So that's the secret sauce. Ajay and Nitin, thank you both so much for coming on theCUBE. A really great conversation.

Nitin Chavan

>> It was nice to be here.

Ajay Walgude

>> Thank you so much for having us.

Nitin Chavan

>> Thank you.

Rebecca Knight

>> I'm Rebecca Knight for Bob Laliberte. Please stay tuned for more of theCUBE's live coverage from the Red Hat Summit. You're watching theCUBE, the leader in technology enterprise coverage.

Ajay Walgude & Nitinkumar Chavan | Capgemini

search

Rebecca Knight

>> Good morning everyone, and welcome back to theCUBE's live coverage of the Red Hat Summit here in the beautiful Mile High City, Denver, Colorado. I'm your host, Rebecca Knight. We are wrapping up three days of wall-to-wall coverage, back-to-back guests. I'm sitting alongside my guest host and analyst, Bob Laliberte. Bob, you are an analyst, how has the conference been going for you? What are you seeing out there?

Bob Laliberte

>> Yeah, absolutely. It's been a great conference loaded with innovation, a lot of announcements, a lot of talk about open source, democratizing AI for organizations, helping organizations modernize their environments. So overall, just a lot to take in, and a lot to digest over the last couple of days.

Rebecca Knight

>> Well, speaking of innovation, we have with us two of the award winners of the Innovators of the Year Award, these are our next guests. I'd like to introduce Ajay Walgude. He is the VP and Global Head of IBM and Red Hat Hybrid Cloud COE at Capgemini Financial Services. Welcome, Ajay.

Ajay Walgude

>> Thank you.

Rebecca Knight

>> And also Nitin Chavan. He is the Senior Director of IBM and Red Hat Hybrid Cloud COE, Capgemini Financial Services. Thank you both so much for coming on theCUBE.

Nitin Chavan

>> Oh, thank you for having us here.

Rebecca Knight

>> And congrats again, on the award. That's really exciting.

Nitin Chavan

>> Oh, that's been exciting. I mean, we were looking forward for this award. It's been great to have that award and then get recognized at this level.

Rebecca Knight

>> Yes, absolutely. So Ajay, I want to start with you. Capgemini just released a World Cloud Report. I'd love you to walk through to our viewers, what's the trends you're seeing in terms of cloud adoption, and really what's happening in the industry? Give us the lay of the land.

Ajay Walgude

>> Right. I mean, before I talk about the trends, let me introduce a report itself. What does report, because this is a first of a kind report, which is very focused on financial services. I mean, it's a state of cloud of financial services customers. So this report is actually a 360 degree view of how our customers, our technology firms, are looking at all of these adoptions as well as the SMEs from the financial services perspective. So just to give the numbers how we conducted this report, so it was a combination of survey as well as interviews, in-person interviews with these unit execs. So we interviewed close to 500, of the technology executives from financial services clients. We also interviewed 200 customers and the executives from technology firms who are supporting financial services like Hyperscalers. And we interviewed Red Hat as well. We also did 30 senior exec interviews, Red Hat and IBM both interviewed for that particular thing to talk about how CXOs are seeing it. And finally, we brought in our Capgemini's domain experience. So we talk to our BAs, our domain experts, our practice leaders from the domain side of it to get that perspective. So, this report is an amalgamation of all of those. The key theme of this report really was, is your cloud journey bringing you the value that you're desired to? So it is not focused on technology adoption only, but also is it realizing the business value, why you chose Cloud for? Right? I think that was the most important thing. So talking about the trends, I'll bucket them in two categories. One was purely focused on the business value part of it. So, we see three trends. So what we are really looking at, customer experience and operational excellence are key to financial services customers. Most of these applications are already under the cloud. We believe that the cloud enabled composable platforms, that means you can compose your financial services into various processes and combine them together on the cloud, that's going to be critical for the success of financial services onto the cloud to achieve the business value. And third, there has to be a very comprehensive strategy looking at your containers, microservices, cloud-native technology, and your hyper-scaler strategy to derive the value out of that. That's the business value side of it. And you asked about the adoption in terms of the cloud trends. It's very interesting adoption. We have seen, I mean when we first looked at this in August of 2020, the cloud adoption was around 37%. And when I talk about cloud adoption, I talk about PaaS, which is platform as a service, software as a service, infrastructure as a service. That has accelerated to 91%. So, it's a significant journey in last three years. But if you look at financial services, only 50% of the applications are into the cloud right now. And those are predominantly customer experience and front-end applications. The core applications are still not under the cloud. So while there's an acceleration, we see there's an opportunity which is up there. And cloud-native, hybrid cloud, multi-cloud that's the trend that we are seeing. So if you summarize that, we know the financial services firms are really looking at the business value extraction. They are focusing on the customer experience and operational efficiency right now. Core application still needs to be on the cloud and cloud-native probably is the way. And the hybrid cloud world that needs to go there. So, that's what we are seeing from the World Cloud Report.

Bob Laliberte

>> Excellent. No, that sounds great. And I think we've seen that adoption rate as well with organizations shifting to the cloud, starting with maybe some of the easier applications to move, kind of hard to move stuff off mainframe right away, that modernization effort. So seeing a lot of those trends taking place as well. And you talked about the business results, which is great because ultimately that's what it's all about in that operational efficiency driving better results, driving better customer experiences. So, you drive your growth of your business and so forth. But Nitin, I wonder if we could dive into the technology a little bit. We are here at Red Hat. Could you talk about how financial institutions in particular are leveraging technologies like OpenShift to help accelerate their adoption of cloud services?

Nitin Chavan

>> Yeah, sure. Ajay just mentioned, and as you also read the hybrid cloud report is, most of the financial services organizations are adopting hybrid multi-cloud environment. And OpenShift is in the middle of it because OpenShift is a platform which provides you a cloud-native development environment in the on-premise infrastructure, in the public cloud, and also at the edge locations. So, this flexibility allows our customers to start thinking cloud-native right now without even having a public cloud strategy. So, they don't really have to have public cloud strategy ready. And many of our customers, like I just said, went from 37% to 91% in the cloud adoption. But that does not mean all 91% are having a hundred percent of the workloads on the cloud. I think the workloads that are migrated are mostly customer experience, as Ajay mentioned. But many of the regulatory workloads, any of the batch processing, and things like that are still on-premise. So OpenShift gives them the ability to start thinking cloud-native right now, and start moving applications into public cloud whenever they're ready in the future. So, that's one thing. The second reason that customers are adopting OpenShift is because of the developer productivity. Because developer productivity in a sense, accelerate more time to market or accelerate innovation faster. So OpenShift provides developer tools and APIs so that developer can build, deploy, and manage their application seamlessly across hybrid cloud. It provides consistent data set of experience. Doesn't matter whether developer is working on-premise or AWS with ROSA or Azure with ARO, they see the same developer console, which they can use to develop their applications. They can do a self-serve development region. So they don't really have to worry about, "My application is ready, but my environment is not ready. Should I wait for it?" So they can just do a self-serve development environment, they can get testing right away. And last, I think they have a lot of integration with the open source tools like Git, Jenkins, VScode. So, all those tools are available for them to get started right away. So all of this is really improving developer productivity and reducing the learning curve for developers. And the third thing is about the whole innovation angle. So customers are looking to do innovations just not in the public, but into the private cloud. So they need a consistent platform where they can bring the innovation faster, to bring the time to market fastest. So that's why more and more, our customers are adopting OpenShift. In fact, we have seen that there are certain industry event that has happened in the past year or so where the past cloud data platform, how reach end of life and some of the vendors got acquired. There is merger acquisition happening in the industry. And that has really offshoot the license prices for these platforms. So many of our customers are looking for a way to adopt a platform which is more open source, more well-defined, and has very strong support and roadmap. And OpenShift fits the bill and that's why we see customers adopting the OpenShift platform.

Bob Laliberte

>> Yeah. No, I think that's great. And one of my favorite expressions is cloud native doesn't mean public cloud only.

Nitin Chavan

>> That's correct, yes.

Bob Laliberte

>> And so seeing that, "Hey, we can get you started here on premises in your data center, helping to drive that productivity.", I think that's a great use case for these organizations. And that allows them to seamlessly scale into the clouds or multiple clouds.

Ajay Walgude

>> We had a very interesting debate in the executive exchange. Is it the developer productivity that is offering or developer experience? We all agreed and there were customers and then the GSIs and all of that. We all agree that it's the developer experience that is changing the world. Developer productivity, just one dimension of it. But I think that that's most important, changing the developer experience.

Nitin Chavan

>> One of our customer who has adopted the OpenShift three years back, and now most of their applications are working on OpenShift. When they were invited to speak in sessions like this in our office, so they said that, "I work with OpenShift because that's how I see my developers getting consistent. They are sick of experience. No matter whether they're on-premise or on a cloud. So tomorrow I bring another cloud, I don't have to worry my developer has to learn another cloud, because OpenShift is going to be there." And that's why we adopted OpenShift. Yeah.

Rebecca Knight

>> I mean when you think about, every company of course is concerned about safety and privacy, but financial services especially. So, how much of the trends that you're seeing are driven by security concerns and questions that have to do with compliance?

Ajay Walgude

>> I think regulators play a key role out here. I mean, the common thing which I get asked is about, "Are you moving to OpenShift or cloud network just because your regulator's asking you to do that?". I think let's look at the regulator's lens, how they're looking at. The regulators are really concerned about cloud concentration. They're worried about vendor lock-ins. What they're worried really about, are your mission-critical applications on a similar cloud? What if they fail? They also take a very holistic systematic view saying that what if the top five banks have all their payment infrastructure on similar cloud? What if it fails? It'll have a cascading effect impact. And I think OpenShift really is at the point where it gives you optionality, it gives you flexibility to choose where do you want to go to. And we are cloud native. And I think that's very important that all these trends are people concerned about security. We have vendor lock-ins and all of that. Cloud native and product like OpenShift will give you the option to move forward. I mean, that's what we see as the future as going forward.

Nitin Chavan

>> And the regulatory environment is very different geography to geography. In certain geography, regulators are forcing customers to adopt open hybrid platform. In certain geography they're not. But I think why customers are choosing this platform is because of the value that it brings to them.

Ajay Walgude

>> And what you'd see if you look at the World Cloud Report, I'm going back to the World Cloud Report, we have given examples of how the customers have adopted cloud native technologies. Be it migrating from mainframe to go into hybrid cloud, be it completely being adopting to cloud native technology for developer experience, or moving your workloads to address the regulatory needs. So, I think those are full of examples out there. So we just don't talk about the trends, we talk about where people have done that and how they have done it. Right?

Bob Laliberte

>> Yeah, absolutely. That makes a lot of sense. And I think obviously being at the show this week, there's been a lot of about AI, and so we can't have a conversation without bringing that up. So Nitin, I'm wondering if you can discuss maybe how you are seeing GenAI impact some of these customer journeys, how they're getting started with that. How Capgemini is helping them get started with their GenAI stories, and what you're seeing.

Nitin Chavan

>> And you're absolutely right. So, GenAI has become taken a spotlight in all our discussions in last one year. In fact, every discussions when we have with customers unrelated to AI, eventually it ends up with the question, "Can we do this differently with GenAI?" Right? So, GenAI is basically taking a spotlight in all our discussions that we are having with customers. So one of the use cases that customers that we are working with is more of a customer experience. But that's not the only use case that customers are thinking about. They're thinking about customer experience, financial engineering, the risk management, innovation, accelerated time to market. The use cases are wide and customers are at a stage where they want to try everything, they want to do a proof of concept. And proof for a proof of concept, they need a quick platform that can get them started. And that's where the cloud comes in . So, cloud helps them to get started. It provides them a platform with the developer tools, the necessary compute, and the required storage so that they can start building the model right away. And it also provides the tools that can do a synthetic data generation, the rapid testing, and iterations. So what makes it possible for business is they can experiment with multiple models. And they can select the one which is most effective and then bring it to market faster. So, that is where the cloud is playing a significant role for our customers. And cloud's ability to provide you this infrastructure and not making you to invest into this massive infrastructure is actually creating a level playing field for our customers. So, it doesn't matter whether it's a large customer or a small customer. So both have access to the same GenAI tools, the same data, the same storage, the same compute. And we see the disruption happening in the financial industry. So we look at wealth management, we look at personal banking, we look at mortgage, we look at insurance. There are many fintechs and small player who have come in last three years. It's because cloud was helping them to get started right away. There was in the cloud and they're disrupting our customers in a big way. So how we help to our customers is basically we come in between where we bring the knowledge and the skills to implement this GenAI prototypes with our customers, help them to get started with the cloud-native platform. Build the models, train the models, and when they're ready, deploy them so that they can win . So we did talk about cloud first for a GenAI, but that's not the only thing that our large customers are thinking about. I think they're thinking about hybrid cloud approach. So they're looking at the ways where they can build model on cloud, they can test model on cloud with a synthetic data. And once it is ready, they can bring in their on-premise infrastructure and they can deploy it, they can infer it. To summarize, yes, cloud is helping our customers to adopt GenAI faster. But also customers are thinking in hybrid cloud approach so that they can build models on cloud, but they can bring on-premise. And use it in case of data privacy or security issues.

Ajay Walgude

>> And what Capgemini are really doing is bringing all those ecosystems together to drive the business value for the customers. Bringing in those fintechs that Nitin talked about, our experience with the financial services, partners like Red Hat and IBM to bring them together to design the business value. And that's at the end of the day.

Rebecca Knight

>> Excellent. Well, said from the innovators of the year. So that's the secret sauce. Ajay and Nitin, thank you both so much for coming on theCUBE. A really great conversation.

Nitin Chavan

>> It was nice to be here.

Ajay Walgude

>> Thank you so much for having us.

Nitin Chavan

>> Thank you.

Rebecca Knight

>> I'm Rebecca Knight for Bob Laliberte. Please stay tuned for more of theCUBE's live coverage from the Red Hat Summit. You're watching theCUBE, the leader in technology enterprise coverage.