How I Explain Claude Code to CEOs

10 things you didn't know about Claude Code, not tricks, but fundamentals that you should have been taught before installing Claude Code in the first place. If you want to get paid for AI consulting or services, what I'm going to cover in the slide, especially point nine and 10, is what clients actually ask. Number one, Claude Code was built for code base, and code base is just a fancy word for a folder with files. Claude Code or agentic coding assistance, we actually work in that folder with files. And we can read your files, we can edit, we can run scripts and commands on your computer. And breakthrough, it can loop. More looping just in a second. When people say like agents need tools or agents use tools or Claude Code tools, Claude Code comes with a basic set of tools. Read, [music] edit, write, bash, glob, grep, agent, web search, web fetch, and task. When you work with Claude Code, you will start seeing these tools, and you need to kind of under- stand what they are. Read is Claude Code's ability to read the content of a file. Edit means that it can edit the content of a file. Write actually creates a new file. Bash is a tool that allows Claude Code to run actual commands on your computer. And what is the command? Command, for example, install. Install the package is a command. Run scripts or checking system information. Every time Claude Code runs bash commands, you can actually see what it is. Glob is kind of like a search. It allows to find file by name. Grep is different. Don't confuse it with glob. Grep searches within a file. So, usually agents would go and use glob and then use grep. Agent tool allows Claude Code to launch another helper agent or start a side quest and a loop. Keep in mind the word loop. This is key. Web search and web fetch is similar to glob and grep. Web search allows agent to go and search information using keywords to fetch list of links. Web fetch means that you go into the link and actually extract information. In other words, read the page. Task tool is an ability for Claude to track its process. It's literally a to-do list file that it goes and references after it was done. So now, let's talk what is agent, what is agent ecosystem, and how does Claude code actually work. Let me introduce you to the loop. Claude code agents run on the loop. That's what agents are. People just not sexy to call it loops. First, it observes. It uses all those tools that allows it to find information or read information. Plan, it creates the file with to-do list, and this is where model shines because it can actually think what to do before touching or actually act. Before sending any project, use plan mode. Tell it to plan first before going and touching files. In the act stage, this is where agent uses all the tools that modifies its environment. So, bash commands, writing, creating new files, spinning up agents, and those agents have their own loop. They need to again do observe, plan, act, verify. Verify, though, this is where agent is forced to go and look at the plan, at its to-do list, at executions, and ask like, "Did we achieve the goal?" If not, loop starts all over again. It goes, observes, plans again a new task, acts, [music] and then again verifies. My co-founder shirt put incredible free resource for our community members all about loops simply [music] explained with visual exercises. It's probably the most simpliest, best resource I've seen online for loops. Okay, Claude code can be run into four places, but at its core it was designed for terminal. Another word for terminal is command line interface. This is that little black box and to power up cloud, all you have to do after installation is just type cloud. I search terminal in my Mac and I opened the new window. If I type cloud, boom, cloud code is powered. As I mentioned, cloud code works in four different places. The first one is terminal. This is where I live, for example. The second one is a terminal wrapper, which is known as IDE. Integrated development environment, antigravity, or cursor are all IDEs and they all emerge and build on top of VS code. So, let me show you. This is VS code or Visual Studios. It's a wrapper on top of terminal. We have our folders, we have our files inside of folders, [music] and we have our terminal, which is cloud code. It looks a little bit easier, maybe approachable than cloud. And it's the file you immediately in one place can see the file. Three is agent as the king. It's just a fancy way of saying that we run cloud code in the clouds. This way you can have cloud code abilities and all those tools that it can use, but you have it in virtual environment in a cloud embedded in the products that people access. Four is desktop, mobile, and app. You can also access cloud code if you have cloud desktop. This is how it looks. We have home and then code. And this is accessing cloud code and again, same thing. You select a folder on your computer and work in the files. The only limitation here is that you need to intentionally decide in which folder to work and not just let cloud code access all the folders and all the files. So, the functionality is limited. I already explained Agent SDK, but this is just visually for you to understand that if you have your app or solution of your business infrastructure, and you want Claude code abilities, but you want it to work always 24/7 in the cloud, this is going to be Agent SDK, and Agent SDK [music] will fetch Anthropic API. So, it's a thing sitting in the middle. This is what I meant when I said that businesses do not go directly through Anthropic API. [music] They actually have Claude code agentic coding assistance sitting in the middle with all those tools and functionalities. Another thing, when we say we use Claude subprocesses, it's actually another way of saying that we run Agent SDK functionality. I build Open Claude replica inside of Claude code. Cheap and safe Claude P is what allows me to control and talk with my Claude code on my Telegram, or call it on the phone. Another thing to understand, when people are confused like, "Oh, there's models, and everyone's chasing the best top model." The reality for businesses, it's really split in two. There are models that you use in production in the products where speed and cost really matters, where Frontier AI labs with the most expensive capable models are for building for hard problems. But once you build, and if that product has AI capabilities, and it's going to be used by your teammates or other users, it's going to use either cheap models or open-source models. In Claude code, you can access all the different models, which is Haiku, Sonnet, Opus, and now Fable, which I'm going to talk about in a second. However, when you are in the terminal and you do {slash} command model, you have these options. However, there is a way, if you don't see a specific model, for example, you want to use Sonnet 4.6, and it's not an option here, there is a way to set up it custom. You can ask Claude Code to open ZSHRC file. Inside of a file, there is all the configuration. So, it's different paths, different models, your API keys, and stuff like that. And you can ask it that on every launch, use this model. This is what I did when they launched Opus 4.7. I didn't like it. They made it default. So, I went and in my settings, in my configuration, I changed it to Opus 4.6. Another thing you might not know that you can launch Claude Code, which is a shell sitting on different models like Haiku, Sonnet, or Opus, but this shell can sit on any other model as well. So, for example, if I type Claude Deep, this is my custom setup. That means it's going through Open Router accessing [music] Deep Seek model, and I can use now Claude Code with Deep Seek. I can also use Claude Code with a completely local model on my computer. Multiple reasons to do this. It's different projects with the sensitive information, that's one. Another one is the services are not reliable, and you can't access Anthropic API. You don't want your work to stop, and you can use another model. Option three is limitations. If you run into your subscription limitations, and you want to continue working, but Anthropic Opus 4.8 [music] API is expensive, maybe you just route to GLM models, which are open source. A fraction of the cost and capability on the same part as Opus 4.8. We call it hybrid approach or fallback models. Also, in the same setup file that I told you, create that in case there is an outage on Anthropic, it will automatically default to Open Router. And then, if Open Router is also not working, I can still access my files and information and work with limited capabilities, but I can use local models. So, this is known as fallbacks. Now, we have a new models, which is Migos and Fable. Fable is just Migos with a guardrails, but you can't work on biology type of projects and cybersecurity. It's really sad because if you want to protect your development and your apps, you can't. You can't hack others. You can't also safeguard yourself. It's also the most expensive model out there. The thing to know about this next-level models, remember what I said, cheap models for the production, expensive models for work. Same principle applies. You never use Fable for everything. You use Fable for two steps in the loop. It is for planning and verifying. You never use Fable for observe or act. Here you can have way cheaper models running those commands that are not destructive. Another thing that people don't really know or think about is the effort before you switch from one model to another. That is a sudden jump and huge price increase. Use effort to max out with your effort on one model, and if the result not good, this is when you graduate to the next model. {slash} command effort low medium high x high max and ultra code. Next, this is for the consultants and AI service providers. Seven places where Claude code can run, and only five is where [music] you will do it for business. Anthropic API is really for developers, but not businesses. Businesses do not go directly to Anthropic API. In Anthropic console, you can run Claude code instance, which is called managed agents, which is running on Anthropic's cloud, not on your premises or not on your machine. Claude teams, you buy seats for that team. This is for the very small teams who do not need a central secure login [music] space and admin controls. If you don't need full infrastructure with IT departments and compliance, you can use Cloud Teams. Now, enterprise. This is where real money is really. You need admin controls, but also higher limits and rate limits. Enterprises can't afford that, "Hey, you ran into rate limits. Oopsie." And rate limit is basically how often you can use this product and how fast. For the enterprises and businesses, then you talk about Cloud Code. The number one question is, "Do we run the business on Cloud or on a premise?" If it's on premise, meaning they have their own servers, you use Cloud Enterprise. Next question is that if we run on Cloud, do we use Amazon, Google, or Microsoft? And depending on their answer, you will have to use Amazon Bedrock and access Cloud Code there, Google Vertex AI, or Microsoft Azure AI Foundry. To finish up, I want you to walk you through the five things that any business or enterprise is going to ask you if it is on premise or on the cloud. And these are the words that you need to know. SSO stands for single sign-on. Very simply explained is that you have your company's domain and every person who logs in into central place can use the same domain and get access. So, it could be Mark at Ontraport or could be Steve at Ontraport. Ontraport domain is approved in one central place. Skin provisioning allows you to add people, update, or remove automatically. So, you don't have to manually manage those access and control in case, for example, you don't have an employee anymore. RBAC, role-based access control. So, now your all the team can log in and use Cloud Code, but maybe not everyone has the same access controls and not everyone can access the same information. For some teams, Cloud Code can access the folder for marketing. For another team, Cloud Code can access the folder finance. And traffic provides compliance API and this is a way for compliance and security and IT department to be able to fetch instantly what happened. See full traceability of who used Cloud Code, what they did, what happened, what tools have been used. So, they can trace back if there is any problems. Manage policy settings, it's additional guardrails that you put on Cloud Code and this is usually IT department will reinforce policies of how it should be used. For example, maybe using Cloud Code, you can't go to certain domains and find information. This is part of a Cloud Code training that we do in our community. We are getting also Cloud certified and I'm going through Cloud Code bench. If you're interested to learn more, we have a full dedicated classroom on Cloud Code beginner to pro. We have 7-day free trial, so we would love to get to know you. If not, I'm going to see you in the next video. Ciao.