>> Voiceover: Live from Las Vegas, it's the Cube, covering HPE Discover 2017, brought to you by Hewlett Packard Enterprise. >> Okay, welcome back everyone, we're live in Las Vegas. This is the Cube's coverage, exclusive coverage, of Hewlett Packard Enterprise HPE Discover 2017. And I'm John Furrier, co-founder SiliconAngle Media with my co-founder David Latte and also cohost. Our next guest is Alastair Winner, vice president HPE point next portfolio. Welecome back to theCUBE. Good to see you. >> Alastair: Thank you. Great to be here. >> So, okay, Pointnext Portfolio, Pointnext, new presence, take a minute, Alastair just explain Pointnext, how everything fits together. I know it's a little bit redundant for you but let's that start that off. >> Sure, no, I'd be delighted to explain. So, as you're aware the company has gone though a number of transformations and transitions. One of which was the spin merge of enterprise services to CSC, now DXC technology, we're, they're here on the show floor, so great partner of ours. But of course that created a lot of noise in the market and confusion honestly with our customers as to whether or not HPE was in the services business or not. So, the idea of the rebranding was to make it very clear, service is critically important. It's like the third part of our company strategy. So we have Hybrid IT, IT Edge and the expertise to make it happen and that expertise is HPE Pointnext. And the branding was chosen deliberately not to, to sort of replicate what you'd find in other traditional vendors. We don't talk about services in our brand. And Pointnext is literally to help our customers point at what's next in their digital transformation journey. So, that's where the brand comes from. >> David: So what's the brand promise? For Pointnext? >> I mean for us, it's about giving customers access to our expertise and we talk about really, a complete life cycle of a experience. So, previously we had consulting and support. Those terms have gone now. So we're looking clearly end to end of customer's experience and really starting with the outcome they're looking for, and having advisory, professional and operation services that connect those things together to deliver the, deliver the outcome. >> And what is the spin merge made up of? HPE Services and was it, the CSC combo? >> So we had a very significant, really IT outsourcing business, which was called enterprise services that was the previous EDS business. So yeah, that spun out and joined to CSC to become DXC Technology. >> How should customers look at you vis a vis HPE and the Enterprise partners? Obviously there, there the combination, how do you guys, where' the lines, where do you guys shake hands, where's the handoff, what are some of the engagements, like share with us some of the day to day tactical execution of your, of the portfolio? >> So I guess, we're still relatively new in terms of the brand and we're trying to really connect the dots internally to ensure that we present to our customers a seamless experience. I guess one of the things that the spin merge has enabled us to do is to engage much more actively with systems integrators and other consulting companies where perviously it was quite challenging to do so. So, with the likes of PWC and KMPG and Wipro and so previously we had, I mean they were interested in buying our technology. But from a services point of view, there was always some conflict. Now we have clarity, right? So, so part of our strategy is to really ensure we're engaging very actively with systems integrators. And likewise, we're also working very actively with our reseller partners. So, clearly HP has a long history of partnering and.. >> John: Channel. >> And as we call it it channel. And our channel partners are also going through a transformation because selling hardware is no longer a sustainable business for them in the long term. So, really helping them to transform their business from being product led to services led. I guess, I mean, the other thing we're really focused on is you know what are the solution areas. What are the business outcomes that we as an organization can really focus on because as you know digital transformation is huge, I mean it's a, you know.. >> Well, I'm glad you brought that up about the decline in the service, from a business model stand point, but we were saying in our opening, on our editorial segment that, you know a lot of people get hung up on that, but in reality, the numbers are all pointed to massive growth. Wikibon just put out a seminal report around true private cloud at a twenty to fifty billion dollar opportunity, market TAM. So, that's just private cloud. That's just. >> Yes. >> Cloud liking your infrastructure on PRAM. That's not including Hybrid Cloud. So when you factor in true private cloud, which is current state, situation, with Hybrid Cloud and then now, the, what I call the kind of the long reaching but viable vision of multicloud, >> Yep. those are really key dots that are connection for customers. So, okay margins of hardware might shift to places but the services, whether its IOT, an app integration, really it's a the center of this. >> It absolutley is at the center of it. And of course, I mean there is still clearly value from our products and our product innovation. But the way we present that value to our customers has to, has to change. And you're quite right, many of the customers, in fact the majority of the customers I talked to really view private cloud as their principal delivery vehicle, internally. IT view as their principal delivery vehicle. What we're doing through solutions like flexible capacity is enabling an IT team, to you know, to align the supply and demand of IT through an opex model rather than a capex model and really helping them right size the environment. So they can manage the fluctuations that they see because with digital there are, you know, there are many many more, the frequency of change is much a, much more... >> So the dollars are shifting to services, certainly the Edge but you brought up channel. This is a huge opportunity because now channel is reconfiguring both at the global systems integrator side as well as what was traditionally as VARS and VABS and ISBs, >> Yes. as they get closer to the customer. So you guys are kind of the glue layer between what was once HBE, get some training, speeds and feeds, to much more solution oriented. And trends there that you can highlight that should be notable for customers in around how the services is leading some of that change at the front lines? >> Well, I mean, you're absolutely right and I would say you know for us it's about outcomes, looking. We're not trying to sell the customers something. We're looking for an outcome that customer needs and then translating that into, into a chain of technology, people and process changes that they need to implement. And there I mean there are many examples on the show floor actually of services-led solutions. You know, we have the intelligent spaces cube for example where we're helping customers to manage, very valuable real estate in their, in their property, you know where you're always looking for spaces to meet your colleagues. When you turn up you want it to be digitally enabled. You know, we can combine all of these great technologies whether you know that HP or partner ISV technology into a solution. And then present it to the customer as a service. So you consume it as you use it as oppose to buying all the pieces, having to integrate together yourself, you'll own and operate, that's clearly the model, that, that's the model of the past. >> Alastair, the CIO's in our community, if I could summarize, they're telling us, I got to run the business, I got legacy systems that I have to manage, I have to grow the business. I have new apps. Maybe some of those are IOT, certainly many of them are data oriented, AI, big data, whatever you want to call it. And then I have to transform the business. So that's their digital transformation, >> Alastair: Yes. >> certainly their IT transformation, their hybrid component. So is that a valid way, to sort of look at the business, and then how specifically is Pointnext helping in those three broad areas? >> So, I would, I would completely agree. In fact the way we think about our portfolio is one of accelerating what's next. So this, you know this digital transformation, this change, and how do we accelerate and make customers much more agile in addressing the business requirements. Because, you know IT and the business are really synonymous now with each other. It's not a, it's not a back office anymore. It's the way the customer engages with their customers, with their employees, with their partners. I mean it is the interface now in which we work. So, we're all about accelerating. How can we accelerate that. And then, you're absolutely right the majority of our customers have an existing in store bays. The have many layers of, or previous generations of technology. You know it's, it's homogenous, it's complex. You know there, there are different ways of managing all of these assets. And the way we help there is really by simplifying. So we're encouraging our customers to work with us, allow us to manage the complexity, which frees up resources and money for them to then to go in and invest in the accelerate, accelerating what's next. So we're doing, for example, activities like, we call it operational support service. So we're monitoring and managing remotely the assets of the company that the IT team would have historically have done. You know, you go into like a mission control center and see all the, you know, all the lights, monitors. I mean we can do that for a customer. You know, the customer doesn't have to do that anymore. And the resources that frees up, they can go in and invest in the, in the, in their digital transformation. >> So that's not outsourcing, per se. >> No. >> You're certainly managing infrastructure on behalf of your customer. They on the assets, it's on their books? >> So, so we can do it traditional, you know capex model where it's on their books. Or we can include it inside a flexible capacity arrangement where, they're, you know they're actually paying per use. And that experience is part of the, of the solution. So we can integrate it into a pay per use model. >> I mean it seems like one of the things that HP services has done over the last several years, is sort of envision and reimagine that entire services experience and try to make it as cloud like as possible. >> Yes. >> I mean you got a head of that, I mean this has been, I don't know, three, four five years in the making. So, kind of give us an update that's gone and then, you know on a scale of one to 10, how far did you get? Are you at a five, a six, a nine? And what's new from here? >> So it's a great question. So, I'd probably give us a six, we're probably at a six I would say. So the, the offer itself, so flexible capacity, is, you know we've had in them market for five years now so yeah, we know how to do this. And it's very successful. We've never lost a customer. We have net promoter scores in the high 90's, so yeah, where we have landed it, customers love it right? So, we know it's very successful. And really what we now need to do as a company is sort of amplify that model as our principal go to market. Okay, so we're a product company, we sell products. So, there's a pivot that we're approaching I would say where we need to you know, use that as really being the lead, the lead model. So, I think, I think a solution designed for IT, where IT consume units of IT, we've got that nailed, right? I think, I think it's great. But flexible capacity doesn't address every customer's requirement. So for an enterprise customer, it works really nicely. For a tier two, tier three service provider, it works very nicely. We've got a whole tranche of customers, who really don't have the scale to benefit from flexible capacity that still want insights into their utilization, and their capacity. So we're actually, as part of our Gen 10 launch, we introducing something called HPE Capacity Care Service. So we're sort of extracting the secret source from flexible capacity. We're not actively managing the capacity on behalf of the customer, but we're giving the customer the assets to do it themselves. So that will be available by the end of this calendar year, so we're very excited about that. And the other thing we're doing is actually, to move away from selling units of IT service, like virtual machine containers or cause, and actually trying to focus on outcomes. So were starting to talk about things like back up as service, big data as service with Hadoop. So, again, really trying to create a platform that the customer can consume and all the complexity is abstracted and we present it as a service. So, we're at the early stages there. We've got very big aspirations for that. We think that's the way that our customers will want to buy from us. You know, they don't want the pieces, they want, they want the platform, the want an outcome as a service. >> Alastair, great to have you on theCUBE. Thanks for sharing. My final question for you, to end the segment is pretend I'm a CXO, CIO, CDO, CSO, whatever, CEO, Alastair, bottom line me. How are you going to make IT easier for me and simpler? Go. >> So, I'm going to make it easier by ensuring that we present you with our expertise. We're going to create an environment though which you can consume IT. And we're going to accelerate your digital transformation. >> Alright. Accelerate change, obviously congeeled economies here. There's no doubt about it. It's got a little cloud flavor, hybrid cloud, multi cloud. It's theCUBE bringing you all the data here from HPE Discover. 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