(upbeat music) >> With cloud computing, programmable infrastructure, open source momentum with things like Terraform and software defined everything, people have been asking, "Does hardware still matter?" The obvious answer is software has to run on something but why does hardware still matter specifically? What customer value is there in advanced hardware architectures and what are some of the less frequently discussed nuances of hardware that make software run better and businesses run more efficiently and securely at scale. Welcome to the Cube's ongoing series where we explore the importance of hardware its evolution over the decades and its future outlook with me is longtime cubilam, Shannon Champion. Who's the vice president of Product Marketing at Dell Technologies. Welcome Shannon. >> Thank you. Glad to be here. >> Yeah, it's always great to collaborate with you. Shannon, you've had a pretty impressive career. You've got this killer combination of you have an engineering degree, multiple engineering degrees actually combined with business education. You've worked as a semiconductor engineer, a quality engineer, product manager, product marketing exec, et cetera. And you now have responsibility for a variety of hardware and software led infrastructure at Dell. How have you seen hardware evolve over the years? >> Well, first of all, thank you. I appreciate that intro Dave. Yeah, it's been a fun journey. I think there's two things. I think there's a product led evolution and then there's customer evolution. And obviously those go hand in hand. If you think about the technology from a hardware perspective, it's become more advanced, more specialized and the diversification of chip architectures is really what's driving that. It's gone from general purpose CPUs to GPUs, to specialty processors like, DPUs and purpose-built accelerators. And with all that specialization, obviously more and more software is required to really knit it together. We believe Dell is uniquely positioned to do that. >> Awesome. So I want to just come right out and ask you, you know, with cloud and software defined and hyper-converged why specifically does hardware still matter? >> Well, if you know anything about Dell, you know we are driven by customer first mindset. So I'm going to go back to that customer evolution I talked about and from a customer perspective, purchase decisions used to be more about feature function, Like how much compute memory storage can you pack in and get the best performance characteristics. Of course, people still care about this and almost every customer, if you look at the widespread surveys that have been done in the industry projections are still going to be making data center infrastructure purchases for the foreseeable future, but more and more, these sort of like traditional hardware capabilities are table stakes. And what customers are making purchase decisions on are the software driven capabilities that provide the differentiating capabilities to allow them to do more with less. So with that sort of comes a refocusing of where IT adds value for their organizations. We know maintaining and managing the infrastructure is not what differentiates companies and makes them stand out from the crowd. So that's what this whole notion of IT Transformation is all about. Our customers are pulling us into a broader set of problems and their purchase criteria is moving away from hardware feature function to differentiated solution and software value decision making with more focus on how they can drive business value beyond the infrastructure. So it's really the combination of hardware with software that optimizes and delivers the best outcomes and the tighter the link we can create between them the more seamless the experience for customers. >> Gotcha and I mean, this is more important than ever with the push toward digital transformation. And everybody's trying to get digital right. Now thinking about Dell as a company and its broader strategy, the majority of revenue comes from what most people would think of as hardware but as Jeff Clark often points out, the vast majority of engineers are software engineers. Can you explain how that dynamic works and what role hardware plays in that equation? >> Yeah, totally. So if you think about IT transformation infrastructure is the enabler of that transformation, but infrastructure needs to be smarter, easier, more automated, more secure. And that's done with software and our software engineering focus is nothing new. I think Dave, we were together five years ago talking about the latest version of HCI on the 14th generation of power edge servers. And at that time we were talking about how our hardware platform engineers were working with the software engineers to design in software defined storage capabilities within the power edge platform. So, you know, we, that we are not new to this. We've been looking at ways we can use software to exploit the underlying hardware features and capabilities and do that in a differentiated way because it delivers value for customers. And honestly, they're willing to pay a premium for that. >> Yeah. I remember that well, 14G now 15G, soon we're going to be talking about 16G. Can you give me an example of where hardware differentiation has created value for your customers beyond, you know what a straight software only solution running on generic white boxes might bring? >> Yeah, I have a couple of examples. The first is easily VxRail, right? VxRail, our jointly engineered HCI system with VMware. It provides full stack integration of hardware and software for that consistent operations in VMware environments. And when you think about evolution of infrastructure VxRail is actually a cool story. When it was introduced six years ago its scalability and performance, you know had it be rapidly adopted mainly in the data center but customer demands have evolved and they wanted to extend that operational efficiency to a broader and broader set of workloads. Not only in the data center, but in the cloud at the edge. So VxRail grew and its portfolio today has maximum flexibility. You can choose the best platform to meet performance, storage, graphics, IO, cost requirements a range of processor types and NVMe drives and graphics cards. So it really is the most configurable HCI system to meet any workload demand. And we recently introduced some new node types. That's hardware based, right? VxRail dynamic nodes and satellite nodes and our customers and partners are really excited about these, the dynamic nodes, as you know add the capability to scale compute and storage independently and extend to primary storage like power store and the satellite nodes are single nodes for the edge. So that's all hardware stuff, but the secret to VxRail really is more about the software. So I'm going to go back there. The VxRail HCI system software is what makes VxRail more seamless and simple than any other HCI system. And when managing your environment is easier and more automated and your workloads can stay up and running, leveraging that intelligent life cycle management customers pay attention. So again, it's that combination of hardware and software and for VxRail customers it's how we're delivering that truly curated experience like we like to call it that they can't get anywhere else. >> Awesome. So last question. Anything else you want to bring into the discussion before we close? >> Yeah. Two things, actually I have another good example of hardware differentiation and how it creates value for customers. And this one is based upon PowerStore. So PowerStore inline data reduction uses Intel quick assist technology and it performs hardware accelerated compression. So it's basically handling data reduction in hardware. We offload the compute intensive workloads of compression and conserve the CPU cycles for storage IO tasks that save application and storage processing time, cycles and costs. So it's a more consistent way to do storage efficiency and leverage power storage advance inline compression and it's always on, and it doesn't compromise performance of other services. So, with PowerStore using this hardware differentiated approach to inline data reduction, customers get an average four to one data reduction across all their workloads, don't compromise performance or services. And honestly, a lot of times we see them achieving up to 20 to 1 or more depending on the data type. So yeah, I just wanted to throw out that other example. >> Great. >> The last thing I'll say is we just launched a trifecta storage innovation at Dell Technologies World. We have over 500 new high value software enhancements that bring out the best in our storage hardware platforms and that's across PowerStore, PowerMax and PowerFlex. So I encourage folks to go check that out and you know obviously let us know what you think. >> Yeah. We can put a link to those in the show notes. And I was there at Dell Tech World. It was actually quite amazing. Shannon, thanks so much for coming on and sharing your insights really appreciate it. >> My pleasure. >> All right. And thank you for watching this Cube conversation. This is Dave Vellante and we'll see you next time. (upbeat music)