>>The cube presents HPE discover 2022 brought to you by HPE. >>Hey everyone. Welcome back to the Cube's continuing coverage of HPE. Discover 22 live from Las Vegas, the Venetian expo center at Lisa Martin and Dave Velante have a very special guest. Next one of our esteemed alumni here on the cube, Antonio Neri, the president and CEO of HPE, Antonio. Thank you so much for joining us this morning. >>Well, thanks for free with us today. >>Great to be back here after three years away. Yeah. Sit on stage yesterday in front of a massive sea of people. The energy here is electric. Yeah. Must have felt great yesterday, but you, you stood on stage three years ago and said buy 20, 22. And here it is. Yeah. We're gonna deliver our entire portfolio as a service. What was it like to be on stage and say we've done that. Here's where we are. We are a new company. >>Well, first of all, as always, I love the cube to cover HP discover, as you said, has been many, many years, and I hope you saw a different company yesterday. I'm really proud of what happened yesterday, because it was a pivotable moment in our journey. If I reflect back in my four years as a CEO, we said the enterprise of the future will be edge centric, cloud enable and data driven in 2018. And I pledged to invest 4 billion over four years. And you see the momentum we have at the edge with our business. And then in 19, to your point, Lisa, we said, by the end of 2022, we will offer everything as a service. When you look at the floor behind us, everything is a as a service experience from the moment you log through IHP GreenLake platform to all the cloud services we offer. So for me, it is a proud moment because our team worked really hard to deliver on that province on the face of a lot of challenges, >>Tremendous challenges, the last couple years that nobody could have predicted or even forecast, how can we tolerate this? Talk to me about your customer conversations and how they have changed and evolved as every company today has to be a data company. >>Well, even this morning, up to this interview, I already met four customers in, in less than an hour and a half. And I will say all of them, first of all, really appreciated bringing HP discover back. And what they really appreciated was the fact that they had the opportunity to meet and greet and talk to people. The energy that comes from that engagement is second to none. And I think says something right about the moment we are at this time, where the return to work and everything else. I think this is a wake up call in many ways, but customers are telling us is that they want to engage with a partner that has a vision that can take them to their journey, whatever that journey is. And we know digital transformation is core to everything, but ultimately they are now more focused on delivering outcomes for the organization they're running in it. And that's why HP GreenLake is incredible well positioned to do so, you >>Know, just picking up on that. I, I, I counted Antonio. I think I've been to 14 HP and HPE discovers when you include Europe. Yeah. I mean, Frankford, London, Barcelona Madrid, of course, you know the us, and I've never seen why I've tweeted this out. I've never seen this type of energy. Right. People are excited to get back. That's part of it. The other big part of it is course the focus. Yeah. So that focus on as a service was a burn, the boat moment for HPV. >>I don't think it was a burn the boat moment. It was a moment that we have to decide how we think about the future and how we become even more relevant for customers. And we are very important to all the customers they buy from us. Right. But I think about the next 3, 5, 10 years, how we position the company, enter the future to be relevant to whatever they need to do. >>Well, what I mean by that is you're not turning back. No, the bridge is gone. You go, you're going forward. And so my question is, did the pandemic accelerate that move or did it, did it hinder it? And, and, and how so >>Actually it was an, a moment for us to think about how we go further and faster to what we call this journey to one, one platform, one experience. And, and we felt as a team, as an organization, this was a unique moment in time to go further, faster. So to us, it was a catalyst to accelerate that transformation. >>Yeah. Now I, I want to ask you a question in your keynote. I love this, cuz you say I'm often asked by customers, what workload should we move to the public cloud and what should stay on prem? I'm like, yeah, I get that question all the time. And I was waiting for the answer. You said, that's the wrong question. And I was like, wait, but that's the question everybody's asking. So it was really interesting that you said that. And I wonder if you could, you could comment. And I think you said basically the world's hybrid is your challenge with, with the customers in this initiative to actually get people to stop asking that question. Right. And not think about that. >>No, I think the challenge we all collectively have is that how we think about data and how we drive what I call a data first modernization, you know, strategy for our customers in an age to cloud architecture, which basically says you are living a hybrid world is not a question which workloads are put in the public cloud, which workloads are put OnPrem. You know, the, all the issues around data gravity and whatnot is a question of how I bring the cloud experience to all your workloads of data, wherever they live. And that's where, you know, the opportunity really exists. And as customers understand more and more about the new environments, how they work, how they enable these new experiences is all driven by that data. And that data has enormous value. So it's not about which cloud use is about how you bring the cloud experience to your data in workloads. >>When you're talking to CIOs, especially transformational CIOs, what's the value pro to those CIOs that wanna transform and need to transform with the power of HPE. >>More and more of them are becoming conscious about the fact that they need to go faster in everything they do. We have done some interesting analysis with the brands that have done a better job or have become way more proficient on extracting insight from the data. They are actually the brands that winning the marketplace, not just with customers driving the preference, but also in the market capitalization because they become where more sophisticated in driving better efficiency, which is a necessity today. Second is the fact that also they need to improve their security aspect of it, but they are creating new experiences and new revenue streams. And those transformational CIOs are transforming their business in the way they run it into more an innovation engine. And so that's why, you know, we love working with them because they are advanced and the push has to think differently in the way we think about the innovation. How >>Do you help customers go from data, rich insight, port to data, rich insight, rich actions, new revenue, streams, new services. >>Well, first of all, you have to deploy the right architecture, which starts with a network, obviously because digital transformation requires an on-ramp and the connectivity is the first step. Second is to make sure you have a true end to end visibility of that data. And that's why we announced yesterday with the data fabric, right? A, a revolutionary way to think about that age to cloud architecture from a data driven perspective. And then the third piece of this is, is the aspect of how we bring that intelligence to that data. And that's where, you know, we are enabling all these amazing services with AI machine learning with, with, you know, HP GreenLake, which is ultimately the way we are gonna enable them. >>What's your favorite announcement from this week? >>I think HP GreenLake, you know, I think I >>Mentioned a lot of GreenLake, >>36 times HP GreenLake. And to me, you know, as I think about what comes next, right, is about how we innovate now on the platform at the pace that customers are demanding. And so for me, there is a lot of things there, but obviously the private cloud enterprise edition was a big moment for us because that's the way we bring the cloud operating experience on-prem and at the edge, but also all the hybrid capabilities that Brian showed during the demo is something that I think customers now say, wow, I didn't know. We can do that. >>And thinking about your business, you know, despite some macro headwinds and, and like you, you reaffirmed your guidance on the, on the last earnings call. Does GreenLake give you better visibility or is it harder to predict? >>No, I think the more we get engaged with customers in running their workloads and data, the more visibility we get, you know, I said, you know, customers voted with the workloads and data. And in, in that context, you know, we already have 65,000 customers more than 120,000 users. And the one interesting stat, which I hope it didn't go lost during that transition was the, the fact that we now have under the GreenLake management over an next bite of data. And so to me, right, that's a unique, a unique opportunity for us to learn and improve the whole cycle. >>So obviously a big pillar of your strategy is the data. And I wanted, if you could talk more about that because I, I would observe, you know, we, the cube started in sort of as big data, you know, started to take off and you saw that had ecosystem and, and that ecosystem has dispersed now. Yeah. So gone into the cloud, it's got snowflakes pulling and some in Mongo. Now you have the opportunity with this ecosystem yeah. To have a data ecosystem. How do you look at the ecosystem and the value that your partners can build on top of GreenLake and specifically monetize? Well, >>If you walk through the floor, one of the things we changed this time is that the partners are actually in the flow of all our solutions, not sitting on a corner of the show floor, right? And, and, and that's because what we have done in the last three years has been together with our partners, but we conceive HP GreenLake with the partners in mind, at the core of everything we do in the platform. And that's why on Monday we announced the new partner one ready vantage program that actually opens the platform through our APIs for allowing them to add their own value on the platform, whether in their own services to the marketplace or the other way around they to use our capabilities in their own solutions. Because some of these cloud operating capabilities are hard to develop, whether it is, you know, metering and billing and all the other services, sometimes you don't don't have to build yourself. So that's why, what we love about our strategies, the partners can decide where to participate in this broad ecosystem and then grow with us and we can grow through them as well. >>So GreenLake as a service, the focus is, is very clear. Hybrid is very clear. What's less clear to me is, is that I'll and I'll ask you to comment, is this, we go a term called super cloud and super cloud is different than multi-cloud multi-cloud oh, I run in AWS or, and, or I run in Azure. I run in, in, in GCP, Supercloud builds a layer above that hides the underlying complexity of the primitives and the APIs, and then builds new value on top of that, out to the edge as well. You guys talk about the edge all the time. You have Aruba a as an asset, you got space space born. You're doing some pretty edge. Like, well, >>We have it here. Yeah. Yeah. We are connected to the ISS. So if you were to that show floor, you can actually see what's being processed today. >>I mean, that's, you don't get more edge than that. So my question is, is, is that part of the vision to actually build that I call super cloud layer? Or is it more to be focused on hybrid and connecting on-prem to the cloud? >>No, I, I don't like to call it super cloud because that means, unless you are a superpower, you can't do what you need to do. I, I think I call it a super straight okay. Right. That we are enabling to our H to cloud architecture. So the customers can build their own experiences and consume the services that they need to compete and win in today's market. So our H to cloud approach is to create that substrate with connectivity, obviously the cloud and the data capability that you need to operate in today's >>Environment. Okay. So they're fair enough. I would say that your customers are gonna build then the super cloud on top of that software. >>Well, actually we want to give it to them. They don't have to build anything. They just need to run the business. Well, they don't have the time to really build stuff. They just need to innovate that's our, our value proposition. So they don't have to waste cycles in doing so if it comes ready to go, why you want to build it? >>Well, when I say build it, I'm talking about building their business on top of it things you're not gonna, I agree with that, bringing their tools, financial services companies with their data, their tools, their ecosystem, connecting OnPrem to the clouds. Yeah. That above that substrate that's their as a digital. >>Yeah. And that's why I said yesterday with our approach, we're actually enabling customers to power the next generation business models that they need. We enable the substrate, they can innovate on the platform, these next gen business models, >>Tap your engineering mind. And I'd like you to talk about how architectures are changing you along with many, many other CEOs signed a letter to, to the us government, you know, urging them to, to, to pass the chips act. As I posted on LinkedIn, there were, there were a few notables missing apple wasn't on there, meta wasn't on there, Tesla wasn't on there. I'd like to see them step up and sign that. Yeah. And so why did you, you know, sign that? Why did you post that? And, and, and why is that important? >>Well, first of all, it's important to customers because obviously they need to get access to technologies in a more ubiquitous way. And second it's important for the United States. We live in a, in a global economy that today is going to a refactoring of sorts where supply chain disruption has caused a lot of consternation and disruption across many industries. And I think, you know, as we think about the next generation supply chains, which are built for resiliency and obviously inclusion, we need to make sure that the United States address this problem. Because once you fall behind, it takes a long time to catch up. Even if we sign the chips act, it's gonna take many years for us, but we need to start now. Otherwise we never get what we need to >>Get. I, I agree. We're late. I think pat Gelsinger has done a very good job laying out the mission, you know, to bring, I mean, to me, it's modest, bring 20% of the manufacturing back to the us by the end of the decade. I mean that that's not gonna be easy, but even so that's, >>That's, we need stuff somewhere. Absolutely. You know, we are great partners with Intel. I really support the vision that path has laid out. And its not just about Intel again, it's about our customers in the United States, >>HP and HPE now cuz H HP labs is part of, of HPE. I believe that's correct state. Well, >>We refocus HP labs as a part of our high performance. Yeah. And AI business. Yes. >>But H HP and, and now HPE possess custom Silicon expertise. We may, we always >>Had. >>Yeah, exactly. And, and you know, with the fabulous world, do you see, I mean, you probably do in some custom Silicon today that I don't really, you know, have visibility on, but do you see getting more into that? Is there a need for >>That? Yeah. Well we already design more than 60 different silicons that are included in our solution. More and more of that. Silicon is actually in support of our other service experience. That's truly programmable for this new way to deploy a cloud or a data fabric or a network in fabric of sorts. When you look our, our age portfolio as a part of green lake through our Aruba set of offerings, we actually have a lot of the Silicon building. Our switching portfolio that's program. Normally give us the ability to drive intelligent routing in the network at the application layer. But also as you know, many years ago, we introduced our own ILO, the lights out technology, the BMC type of support that allows us to provide security to the root of our systems. But now more implement a cloud operating security environment if you will, but there is many more in the analog space for AI at scale. And even the latest introduction with frontier. When you look at frontier that wonderful high performance exit scale system, the, the magic of that is in the Silicon we developed, which is the interconnect fabric. Plus the smart mix at massive massive scale for parallel computing. And then ultimately it's the software environment that we put on top of it. So we can process billion, billion, square transactions per second. >>And when you think about a lot of the AI today is modeling, that's done in the cloud. When you think about the edge actual real time in, you're not gonna send all that back to the cloud. When you have to make a left turn or a right turn, >>Stop sign. I think, you know, people need to realize that 70% of the data today is outside the public cloud and 50% is at the edge. And when you think about the real time use cases, actually 30% of that data will need to be processed real time. So which means you need to establish inference the rate at the edge and at the same time run, you know, the analytics at the edge, whether it's machine learnings or some sort of simulation they need to do at the edge. And so that's why, you know, we can provide inference. We can provide machine learning at the edge on top of the connectivity and the edge compute or cloud computing at the edge. But also we can provide on the other side, AI at scale for massive amount of data analytics. And >>Will that be part of the GreenLake? >>We already offered that experience. We already offered that as a HPC, as a service is one of the key services we provide at scale. And then you also have machine learning operations as a service. So we have both and with the data fabric, now we're gonna take it to one step forward so we can connect the data. And I think one of the most exciting services, I actually, I'm a true believer. That is the capability we develop through HP labs. Since you asked for that early on, which is called the swarm learning technology. Of >>Course. Yeah. I've talked to Dr. GU about there you >>Go. >>So, so he >>Will do a better job than me explaining, >>Hey, I don't know. You're pretty, pretty good at it, but he's awesome. I mean, I have to admit on your keynote, you specifically took the time to mention your support for women's rights. Yes. Will HPE pay for women to leave the state to have a medical procedure? >>Yeah. So what happened last week was a sad moment in a history. I believe we, as a company felt compelled to stand up and take a position on the rights of women to choose. And as a part of that, we already offer as a part of our benefits, the ability to travel and pay all the medical expenses related to their choice. >>Yeah. Well thank you for doing that. I appreciate it. As a, as a father of two daughters who have less rights than, than my wife did when she was their age, I applaud you for your bravery and standing up and, and thank you for doing that. How excited are you for Janet Jackson? >>I think is gonna be a phenomenal rap of the HP discover, I think is gonna be a great moment for people to celebrate the coming together. One of the feedback I got from the meetings early on from customers is that put aside the vision, the strategy, the solutions that they actually can experience themselves is the fact that the, the, the one thing that really appreciated it is that they can be together. They can talk to people, they can learn with each other from each other. That energy is obviously very palpable when you go through it. And I think, you know, the celebration tonight and I want to thank the sponsor for allowing us to do so, is, is the fact that, you know, it's gonna be a moment of reuniting ourselves and look at the Fu at the future with optimism, but have some fun. >>Well, that's great, Antonio, as I said, I've been to a lot of HP and HPE discovers. You've brought a new focus clearly to the company, outstanding job of, of getting people aligned. I mean, it's not easy. It's 60,000, you know, professionals a around the globe and the energy is like I've never seen before. So congratulations. Thank you so much for coming back in the queue. >>Thank you, Dave. And as always, we appreciate you covering the, the event. You, you share the news with all the audiences around the globe here and, and that's, that means us means a lot to us. Thank you. Thank you. >>And thank you for watching. This is Dave Velante for Lisa Martin and John furrier. We'll be right back with our next guest. Live from HPE. Discover 2022 in Las Vegas.

(upbeat music) >> Welcome to "The Power of And," theCUBE's coverage of the HPE Aruba Pensando announcement. Antonio Neri is here and John Chambers to help us set up the day. Guys, great to see you. Thanks so much for coming on. >> Yeah, thanks for having us today. >> Dave, it's going to be fun. >> It sure is. So two years ago, you guys might recall, we were in the Goldman Sachs offices, overlooking Manhattan, and that's when you announced the investment in Pensando, the relationship. Two years, it goes by fast. How's it going? >> Yeah, definitely two years have gone by fast, and a lot has happened, right? A lot has happened since then. What I will say first and foremost, the partnership has grown stronger, much stronger, because as John and I and the team worked together, we validated the vision, the vision that ultimately the world would be way more distributed, that Edge to Cloud architectures would be required, and the original idea that John had with the Pensando team partnered with us to bring that Cloud experience to the Edge. It got stronger and stronger and stronger. At the same time, we also introduced new joint offers with the Pensando Silicon Software with our HP ProLiant servers. And since then we have learned quite a bit, right? So, which inform us what the next steps should be. And that's why we're here today, to talk about not just the work we have done around the distributive services cards, as we talk about it in the past, but now the distributed services switching, which we believe is another market in transition opportunity for us to disrupt as we go forward. >> So, John speaking of transitions, you've seen a number of industry transitions, dating back to my East Coast days. >> Yes. >> But so what was the wave, or the waves that you saw, that sort of led you to this new venture, to the partnership with HPE? >> Well, the exciting part is Antonio and I can almost finish each other's sentences. You compete against market transitions enabled by new technology. The biggest transition of all is the clouds moving to the Edge, the computes move into the edge, your storage security, your software applications, et cetera. And we saw this wave together, and when you talk about what's changed in the last two years, I think it exceeded both of our expectations. How our teams worked together? We outlined audacious goals of a hundred million in terms of orders within the first two years. And we hit and exceeded that. We said, we're going to be in a billion; after three years after we had a hundred million, we're on track for that. And if you watch our dream of democratizing the cloud, giving the capability for any major hyper scaler to compete with an Amazon web services or generally with them, and now bringing it down to any enterprise or any government agency be able to do it and the ability to do this as a team is what's unheard of. Innovation is hard to move with speed. Two companies to move together with innovation and more focused on the outcome than anything else. Our teams work even better than I thought we could. And I think you're seeing today, the next major phase that we make, where we take these concepts and we're going to revolutionize the switching industry. In every 10 to 12 years is a chance for a major change. And you either get through that and often the incumbents don't change. We're going to get through this, we think very, very well and we're again setting a tremendous challenge to the market with, literally software and Silicon and programmability throughout the whole architecture, and results that I think even surprised our engineers; a hundred times the scale of the nearest competitor in the market today at 10 times the performance at one third the total cost of ownership. Antonio and I can't even sell that with that type of capability. Our teams are functioning well. It's that ability to see markets and say, how does your partner win, that culture is so important to us in terms of the direction. >> So to chime in on this because you for years have been talking about the basically redefining cloud, not just a remote set of services, somewhere out there in the cloud, but connecting to on-prem and hybrid, multi-cloud out to the Edge. Is that the big wave that, that you see here? Is that what you're riding? >> Definitely one component of the wave. I think the other part is, remember what I said in 2018, when I became CEO of Hewlett Packard Enterprise, that the enterprise of the future will be a centric cloud enabled and data driven. And through the unfortunate events of the global pandemic, right? That has been validated, right? We live now in a much more distributed and enterprise than ever before. The original architectures that John obviously pioneered for, for the case, you know, you have the data center and you have the campus and the branch, now you have these extension called the micro branch. The micro branch is our homes, our home offices, right? But now what happens is that the cloud obviously scared to stay because it's all about speed and agility, but it's also important that we define cloud correctly, which is an experience that we should bring to, for all the applications and data. And what we see that the vast majority of the data is created at the Edge, where we live and work. Here we are, you and I, and John having a conversation. There is cameras everywhere taping this, there's a lot of bits being created. And those bits, I hope have value when people watch this. But, but to me, that's the, the big opportunity to really disrupt the cloud as we know it and bring that set of capabilities closer to where the action is. The second part of this, which I think is important is that what we saw with the consumption of IT, and this is where, you know, we have a, a vision to become the Edge supply platform that you can consume as a service. And that's our HPE Green Lake offer. But the- as a service offerings taken off to a level we have not imagined. And it's not just the fact that the public cloud is there, it's everything, whether it's in your own premises or at the Edge. And that's why I'm so excited about the partnership with Pensando to disrupt this age to cloud architectures, with the know how that we have, our go to market in the, as a service model to accelerate those markets in transition. >> You take the excitement of a company that's reinventing itself. And you think about HPE, they alerted the original Silicon Valley garage startup. So much of what is great about the Valley, they brought Lou Platt, who was the CEO at HP. When I came to Silicon Valley, nobody knew what Cisco was, much less the internet. They thought we were a food company. I called up Lou and I said, Lou I need help. I don't know the Valley, teach me about how you've been successful. He not only met with me once, he met with me for three years. At the end of the three years, he said, I said to him, now we're really cooking this time! We were growing out of control, becoming the most valuable company in the world for a while. And I said, Lou, what can I do to pay the HPE back? And he said, very simply, "John, give back to the next generation." That stuck with me forever. The values of a company, the leaders, whether it was Lou, whether it's original leaders of the company, or Antonio, their cultures and values are so much aligned. So we have a chance to change a market together. I was all in and, you know, while we competed a little bit, in, in the past, it was very little, and now we have a chance to change a whole market and take on the giants, and perhaps really disrupt a whole industry. That gets exciting. We've got a team that has built a $8 billion products per year, eight different times. Now we're going to do it a ninth and maybe a 10th together. And to share that is truly exciting with a world-class team at HPE. >> So let's talk a little bit about HPE, Aruba, and Pensando, where you guys are going. You started sort of at the core two years ago. And I think I, you know, I think Aruba, in some regards, is misunderstood. I mean, you're basically building a major cloud strategy around that. It stretches to the edge. So what is it that you are trying to disrupt here? Maybe give us a little insight as to the industry transitions that you're seeing. >> Antonio: Yeah. So first of all, Aruba is doing incredibly well, I mean, if you see the latest results grow in between 25 and 30% on a year over year basis. We have improved profitability, but what I'm really excited about is that our value proposition, our mobile first cloud first approach, is resonated with customers when it comes down to connectivity and analytics. So to me, that's an incredible value. And in order to become a cloud company, we leverage the Aruba infrastructure that was developed over the years to build a subscription based model to connectivity and extended all the way to what we call the cloud, which for us is the core business there. Now, with John and his team, we are changing the architectures around those, those components of there, there's the solution. So, Aruba has been incredible foundational, not only to grow the company, but also to give us the foundation technology to become that Edge to cloud company. So what we're doing with John, we have taken now this new architecture to the next level of the entire solution. So we started with the server business. We integrated these distributed service cards, and now we are taking it to their rack level architecture and eventually to the, you know, data center architecture in a true Edge to the cloud environment. And that means we are introducing the distributed service switching technology, which is, again, this is a joint innovation between the Aruba IP and the Pensando IP, which we think, which are, will change, again every 10 to 12 years, that switching market opportunity. >> And it's fun to take on the big competitors and bring them down, which I love doing. And it's also unique to see how fast our teams are moving together. Our cultures are very similar, and we set audacious goals for our team, and so far, they've been exceeding them. >> So you know a little bit about this networking market. Is this a, is this a new category of switch? Is this, how unique is this? >> John: Well, I think it's all the above. It's, Antonio used the word "platform and architectures" and distributed service platform that now is going into switching as well. It's ability to redefine everything with software in Silicon. And that's a lot different than what the industry seen before, and to move with speed in terms of software defined programmability everywhere, everything automated and simple, which makes it so easy to start- how simple? All you do is plug a server into the switch, and you look at what we're doing together already with the HPE servers and how you literally add value on top of it with the distributed services card and platform. So you see it all coming together. How big could it be? I think it will be the next generation, and truly not just the cloud moving to the Edge, but internet working security, how load balancing all comes together. That really is going to change an industry group. So I think it's going to be the next big product for the whole segment of the industry. >> Antonio: Yeah, and I think it will bring tremendous value from the company. Obviously we love the technology and this markets, but ultimately think about from the customer's perspective is less CapEx because they don't need to add log balancing, all these things that add costs, and actually friction points and point of failure, but also OPEX, because to the point that John said, right, it's all about simplicity and automation and awareness around the, the application. And also the, the infrastructure that ultimately we want this to be autonomous and intelligent, therefore is an OPEX reduction on the run time too. Go ahead, John. >> It's in many ways, future proof. It's an architecture for the future, not for the past. When you get your peers that talk about scale in low single digit thousands, and we talk about scale in millions, you talk about performance that literally is 10 fold, in order of magnitude better. And you build an architecture that allows the market to go where they want with ease of use for your customers. That's about innovation with speed. They can leave no small company or no large company probably could do by themselves. I think very few people in industry would have had the courage to do it, but probably not the culture to really make it work well. >> Dave: Talk About HPE, Pensando. I mean, you've got small company, big company, and you guys have been at this now for a couple of years. It seems to be gaining momentum. That, that is in an, in and of itself unique. Why HPE and Pensando? >> Antonio: Well, I think, again, it start with a thesis that John and I share about the future. As John said, it takes courage to do these things, and ultimately culture is everything. Well, we jointly realize that the way we think, the way we work is very similar. These are two companies that are very engineering driven in everything they do, but they put the customer at the center of how we think about the future. And it has been amazing to me. In fact, I, we connect every handful of weeks to check where we are and I keep, you know, in many ways the larger company, in many ways is pushing the smaller company to go further and faster. And to me, it's all about speed. >> So when you think about what makes a strategic partnership work, it has to be really material, both sides. In other words, it has to change an industry. HPE has done an amazing job. You've doubled your profits in the last four years, and you're reinventing yourself again and again, but it's a common vision of where the market's going to go, as Antonio articulated very well when it goes to the Edge, and Green Lake is going to be your delivery vehicle for it. It's about bringing together all these technologies into one, not individual appliances or approaches. You do load balance and you do security. You do scale and you do networking. And it's about the best of each company saying, how do you help the other company be successful? When our teams come together, other than their accents, you usually can't tell who's from HPE and who's from Pensando. >> Dave: How should we be evaluating the progress over the next several quarters, months, years? What are the, sort of, benchmarks we should be looking for? >> Well, I think the most important metric is customer relevance, in my mind. The financials generally tend to follow that because if you are relevant, is, is, you know, we were talking to all the teams, you know, are you important or are you strategic, right? Generally we are very important. What we do matters, but we want to be strategic. And I think this joint innovation will catapult us to be way more strategic in everything we do. So it's customer relevancy. Obviously from the financial perspective, we both have an idea to create multi-billion dollar businesses, otherwise, why do it, right? So, and the market is huge, is huge. I mean, you know that obviously we, we, we are living in an amazing time where data is exploding everywhere, right? And I think this is just a starting point, right? So we obviously start with an idea and a thought and a specific focus. But if you think about the next generation is create data fabrics that are secure, and then you can run these models with AI and machine learning at scale. The network fabric becomes the core of everything you do, right? >> So think about it the way you asked the question. It's been two years as of the announcement that we're making jointly. Since we made the announcement two years ago, we've over exceeded every expectation. It starts with the customers, as you said, Antonio, how many of the large customers do we have two years from now? Are we in the same leadership position like we are with the first-generation of the distributed services platform? And have we got a number of the very largest accounts in the world committed to us? And are we still one to two generations ahead of our nearest competitor two years from now like we are today with our current card capability and platform capabilities. >> Dave: Pretty cool partnership. Thanks so much guys, for helping us kick off the Power of And. Really appreciate it. >> Thank you, Dave. >> All right. Keep it right there. We've got a ton of content. You're going to hear from technologists, how they're trying to change the world, what it means for customers. You're watching theCUBE.

>>Yeah, >>approximately two years after HP split into two separate companies, antonioni Ranieri was named president and Ceo of Hewlett Packard Enterprise. Under his tenure, the company has streamlined its operations, sharpened his priorities, simplified the product portfolio and strategically aligned its human capital with key growth initiatives. He's made a number of smaller but high leverage acquisitions and return the company to growth while affecting a massive company wide pivot to an as a service model. Welcome back to HPD discovered 2021. This is Dave Volonte for the cube and it's my pleasure to welcome back Antonio Neary to the program. Antonio it's been a while. Great to see you again. >>Hi, Dave. Thanks for having me. >>That's really our pleasure. It was just gonna start off with the big picture. Let's talk about trends. You're a trend spotter. What do you see today? Everybody talks about digital transformation. We had to force marks to digital last year. Now it's really come into focus. But what are the big trends that you're seeing that are affecting your customers transformations? >>Well, Dave, I mean obviously we have been talking about digital transformation for some time uh in our view is no longer a priority is a strategic imperative. And through the last 15 months or so since we have been going through the pandemic, we have seen that accelerated to a level we haven't never seen before. And so what's going on is that we live in a digital economy and through the pandemic now we are more connected than ever. We are much more distributed than ever before and an enormous amount of data is being created and that data has tremendous value. And so what we see in our customer's name, more connectivity, they need a platform from the edge to the cloud to manage all the data and most important they need to move faster and extracting that inside that value from the data and this is where HP is uniquely positioned to deliver against those experiences and way we haven't imagined before. >>Yeah, we're gonna dig into that now, of course you and I have been talking about data and how much data for decades, but I feel like we're gonna look back at 2030 and say, wow, we never, we're not gonna do anything like that. So we're really living in a data centric era as the curves are going exponential, What do you see? How do you see customers handling this? How are they thinking about the opportunities? >>Well, I think, you know, customer realized now that they need to move faster, they need to absolutely be uh much more agile and everything. They do, they need to deploy a cloud experience for all the work clothes and data that they manage and they need to deliver business outcomes to stay ahead of the competition. And so we believe technology now plays even a bigger role and every industry is a technology industry in many ways, every company, right, is a technology company, whether your health care, your manufacturer, your transportation company, you are an education, everybody needs more. It no less. It but at the same time they want the way they want to consumer dave is very different than ever before, right? They want an elastic consumption model and they want to be able to scale up and down based on the needs of their enterprise. But if you recall three years ago, I knew and I had this conversation, I predicted that enterprise of the future will be edge century, cloud enable and data driven. The edge is the next frontier, we said in 2018 and think about it, you know, people now are working remotely and that age now is much more distribute than we imagined before. Cloud is no longer a destination, it is an experience for all your apps and data, but now we are entering what we call the edge of insight, which is all about that data driven approach and this is where all three have to come together in ways that customer did envision before and that's why they need help. >>So I see that, I see the definition of cloud changing, it's no longer a set of remote services, you know, somewhere up there in the cloud, it's expanding on prem cross clouds, you mentioned the edge and so that brings complexity. Every every company is a technology company but they may not be great at technology. So it seems that there are some challenges around there, partly my senses, some of some of what you're trying to do is simplify that for your customers. But what are the challenges that your customers are asking you to solve? >>Well, the first they want a consistent and seamless experience, whatever that application and data lives, so, you know, for them, you know, they want to move away from running it to innovate in our 90 and then obviously they need to move much faster. As I said earlier about this data driven approaches. So they need help because obviously they need to digitize every every aspect of the company, but at the same time they need to do it in a much more cost effective way. So they're asking for subject matter expertise on process engineering. They're asking for the fighting the right mix of hybrid experiences from the edge to cloud and they need to move much faster at scale in deploying technologies like Ai deep learning and machine learning and Hewlett Packard Enterprise uh is extremely well positioned because we have been building an age to club platform where you provide connectivity where you bring computing and storage uh in a softer, define scalable way that you can consume as a service. And so we have great capabilities without HP Point next technology services and advice and run inside. But we have a portfolio with HP Green Lake, our cloud services, the cloud that comes to you that are addressing the most critical data driven warlords. >>Probably about 24 months ago you announced that HP was was going to basically go all in on as a service and get there by by 2022 for all your solutions. I gotta get, I gotta say you've done a good job communicating the Wall Street, I think, I think culturally you've really done a good job of emphasizing that to your, to the workforce. Uh, but but how should we measure the progress that you've made toward that goal? How our customers responding? I I know how the markets responding, you know, three or four year big competitors have now announced. But how should we measure, you know, how you're tracking to that goal? >>Well, I think, you know, the fact that our competitors are entering the other service market is a validation that our vision was right. And that's that's that's good because in the end, you know, it tells us we are on the right track. However, we have to move much faster than than ever before. And that's why we constantly looking for ways to go further and faster. You're right. The court of this is a cultural transformation. Engineering wise, once you state, once you state the North Star, we need to learn our internal processes to think Cloud first and data first versus infrastructure. And we have made great progress. The way we measure ourselves. Dave is very simple is by giving a consistent and transparent report on our pivot in that financial aspect of it, which is what we call the annualized revenue run rate, which we have been disclosed enough for more than a year and a half. And this past quarter grew 30% year over year. So we are on track to deliver a 30-40% Kegel that we committed two years ago And this business going to triple more than uh more than one year from now. So it's gonna be three times as bigger as we enter 2022 and 2023. But in the end, it's all about the experience you deliver and that's why architecturally uh while we made great progress. I know there is way more work to be done, but I'm really excited because what we just announced here this week is just simply remarkable. And you will see more as we become more a cloud operating driven company in the in the next months and years to come. >>I want to ask you kind of a personal question. I mean, COVID-19 is you know, sharpened our sensitivity and empathy to to a lot of different things. Uh and I think uh ceos in your position of a large tech company or any large company, they really can't just give lip service to things like E. S. G. Or or ethical uh digital transformation, which is something that you've talked about in other words, making sure that it's inclusive. Everybody is able to participate in this economy and not get left behind. What does this mean to you personally? >>Well, they remember I'm in a privileged position, right? Leading a company like Hewlett Packard Enterprise that has Hewlett and Packard on the brand is an honor, but it's also a big responsibility. Let's remember what this company stands for and what our purpose is, which is to advance the way people live and work, and in that we have to be able to create a more equitable society and use this technology to solve some of the biggest societal challenge you have been facing The last 18 months has been really hard on a number of dimensions, not just for the business but for their communities. Uh, we saw disruption, we saw hardships on the financial side, we saw acts of violence and hatred. Those are completely unacceptable. But if we work together, we can use these technologies to bring the community together and to make it equitable. And that's one is one of my passion because as we move into this digital economy, I keep saying that connecting people is the first step and if you are not connected, you're not going to participate. Therefore we cannot afford to create a digital economy for only few. And this is why connectivity has to become an essential service, not different than water and electricity. And that's why I have passion and invest my own personal time working with entities like World Economic Forum, educating our government, right, Which is very important because both the public sector and the private sector have to come together. And then from the technology standpoint, we have to architect these things that are commercially accessible and viable to everyone. And so it's uh it's I will say that it's not just my mission. Uh this is top of mind for many of my colleagues ceos that talked all the time and you can see of movement, but at the same time it's good for business because shareholders now want to invest in companies that take care about this, how we make, not just a word more inclusive and equitable, but also how we make a more sustainable and we with our technologies, we can make the world way more sustainable with circular economy, power, efficiency and so forth. So a lot of work to be done dave but I'm encouraged by the progress but we need to do way way more. >>Thank you for that Antonio. I want to ask you about the future and I want to ask you a couple of different angles. So I want to start with the edge. So it seems to me that you're you're building this vision of what I call a layer that abstracts the underlying complexity of the whether it's the public cloud across clouds on prem and and and the edge and it's your job to simplify that. So I as the customer can focus on more strategic initiatives and that's clearly the vision that you guys are setting forth on. My question is is how far do you go on the edge? In other words, it seems to me that Aruba for example, for example, awesome acquisition could go really, really deep into the far edge, maybe other parts of your portfolio, you're kind of more looking at horizontal. How should we think about HP. Es, positioning and participation in that edge opportunity? >>Well, we believe we are becoming one of the merger leaders at the intelligent edge. Right? These edges becoming way more intelligent. We live in a hyper connected world and that will continue to grow at an exponential pace. Right? So today we we may have billions of people and devices pursue. We're entering trillions of things that will be connected to the network. Uh, so you need a platform to be able to do with the scale. So there is a horizontal view of that to create these vertical experiences which are industry driven. Right? So one thing is to deliver a vertical experience in healthcare versus manufacturer transportation. And so we take a really far dave I mean, to the point that we just, you know, put into space 256 miles above the Earth, a supercomputer that tells you we take a really far, but in the end, it's about acting where the data is created and bringing that knowledge and that inside to the people who can make a difference real time as much as possible. And that's why I start by connecting things by bringing a cloud experience to that data, whatever it lives because it's cheaper and it's way more economical and obviously there's aspects of latest in security and compliance. They have to deal with it and then ultimately accelerate that inside into some sort of outcome. And we have many, many use cases were driving today and Aruba is the platform by the way, which we have been using now to extend from the edge all the way to the core into the cloud business. And that's why you HP has unique set of assets to deliver against that opportunity. >>Yes, I want to talk about some of the weapons you have in your arsenal. You know, some people talk about, hey, well we have to win the architectural battle for hybrid cloud. I've heard that statement made, certainly HP is in that battle. It's not a zero sum game, but you're a player there. And so when I, when I look at as a service, great, you're making progress there. But I feel like there's more, there's, there's architecture there, you're making acquisitions, you're building out as moral, which is kind of an interesting data platform. Uh, and so I want to ask you how you see the architecture emerging and where H. P. S sort of value add, I. P. Is your big player and compute you've got actually, you've got chops and memory disaggregate asian, you've done custom silicon over the years. How how should we think about your contribution to the next decade of innovation? >>Well, I think it's gonna come different layers of what we call the stock, right? Obviously, uh, we have been known for an infrastructure company, but the reality is what customers are looking for. Our integrated solutions that are optimized for the given world or application. So they don't have to spend time bringing things together. Right? And and spend weeks sometimes months when they can do it in just in a matter of minutes a day so they can move forward innovative on I. T. And so we were really focused on that connectivity as the first step. And Aruba give us an enormous rich uh through the cloud provisioning of a port or a wifi or a one. As you know, as we move to more cloud native applications. Much of the traffic through the connectivity will go into the internet, not through the traditional fixed networks. And that's what we did acquisitions like Silver Peak because now we can connect all your ages and all your clouds in an autonomous softer. The final way as we go to the other spectrum. Right? We talk about one load optimization and uh for us H. P. S my role is the recipe by which we bring the infrastructure and the software in through that integrated solution that can run autonomously that eventually can consume as a service. And that's why we made the introduction here of HP Green like Lighthouse, which is actually a fully optimised stack. They with the push of a bottom from HP Green Lake cloud platform, we can deploy whatever that that is required and then be able to Federated so we can also address other aspects like disaster recovery and be able to share all the knowledge real time. Swarm learning is another thing that people don't understand. I mean if you think about it. So I'm learning is a distributed Ai learning ecosystem and think about what we did with the D. C. Any in order to find cures for Alzheimer's or dementia. But so I'm learning is going to be the next platform sitting on this age to cloud architecture. So that instead of people worrying about sharing data, what we're doing is actually sharing insights And be able to learn through these millions of data points that they can connect with each other in a secure way. Security is another example, right? So today on an average takes 28 days to find a bridge in your enterprise with project Aurora, which we're going to make available at the end of the year by the end of the year. We actually can address zero day attacks within seconds. And then we're work in other areas like disaster recovery when you get attacked. Think about the ransom ramp somewhere that we have seen in the last few weeks, right? You know, God forbid you have to pay for it. But at the same time, recovery takes days and weeks. Sometimes we are working on technology to do it within 23 seconds. So this is where HP can place across all spectrums of the stack And at the same time of course people expect us to innovate in infrastructure layer. That's why we also partner with companies like Intel were with the push of a bottom. If you need more capacity of the court, you don't have to order anything. She's pushed the bottle, we make more calls available so that that warlord can perform and when you don't need it, shut it off so you don't have to pay for it. And last finalist, you know, I will say for us is all about the consumption availability of our solutions And that's what I said, you know, in 2019 we will make available everything as a service by 2022. You know, we have to say as you know, there is no need to build the church for Easter Sunday when you can rent it for that day. The point here is to grow elastically. And the fact that you don't need to move the data is already a cost savings because cost of aggression data back and forth is enormous and customers also don't want to be locked in. So we have an open approach and we have a true age to cloud architecture and we are focusing on what is most valuable aspect for the customer, which is ultimately the data. >>Thank you for that. One of the other things I wanted to ask you about, again, another weapon in your arsenal is you mentioned supercomputing before. Up in space, we're on the cusp of exa scale and that's the importance of high performance computing. You know, it used to be viewed as just a niche. I've had some great conversations with DR go about this, but that really is the big data platform, if you will. Uh can I wonder if you could talk a little bit about how that fits into the future. Your expertise in HPC, you're obviously a leader in that space. What's the fit with this new vision you're laying out? >>Well, HPC, high performance computing in memory computer are the backbone to be able to manage large data sets at massive scale. Um, and, you know, deployed technologies like deep learning or artificial intelligence for this massive amount of data. If we talked about the explosion of data all around us and uh, you know, and the algorithms and the parameters to be able to extract inside from the day is getting way more complex. And so the ability to co locate data and computed a massive scale is becoming a necessity, whether it's in academia, whether it's in the government obviously to protect your, your most valuable assets or whether it is in the traditional enterprise. But that's why with the acquisition of cray as G. I. And our organic business, we are absolutely the undisputed leader to provide the level of capabilities. And that's why we are going to build five of the top six exa scale systems, which is basically be able to process the billion billion, meaning billion square transactions per second. Can you imagine what you can do with that? Right. What type of problems you can go solve climate problems? Right. Um you know, obviously be able to put someone back into the moon and eventually in mars, you know, the first step to put that supercomputer as an edge computer into the international space station. It's about being able to process data from the images that take from the ice caps of the of the earth to understand climate changes. But eventually, if you want to put somebody in in into the Marks planet, you have to be able to communicate with those astronauts as they go and you know, you can't afford the latency. Right? So this is what the type of problems we are really focused on. But HPC is something that we are absolutely super committed and it's something that honestly, we have the full stack from silicon to software to the system performance that nobody else has in the industry. >>Well, I think it's a real tailwind for you because the industry is moving in that direction and everybody talks about the data and workloads are shifting. We used to be uh I got O. L. T. P. And I got reporting. Now you look at the workloads, there's so much diversity so I'll give you the last word. What what really is the most exciting to you about the future of HPV? >>Well, I'm excited about the innovation will bring it to the market and honestly as the Ceo I care about the culture of the company. For me, the last almost 3.5 years have been truly remarkable. As you said at the beginning, we are transforming every aspect of this company. When I became Ceo I had three priorities for myself. One is our customers and partners. That's why we do these events right to communicate, communicate, communicate. They are our North Star, that's why we exist. Second is our innovation right? We compete and win with the best innovation, solving the most complex problems in a sustainable and equitable way. And third is the culture of the company, which are the core is how we do things in our Team members and employees. You know, I represent my colleagues here, the 60,000 strong team members that had incredible passion for our customers and to make a contribution every single day. And so for me, I'm very optimistic about what we see the recovery of the economy and the possibilities of technology. Uh, but ultimately, you know, we have to work together hand in hand and I believe this company now is absolutely on the right track to not just be relevant, but really to make a difference. And remember That in the end we we have to be a force for good. And let's not forget that while we do all of this, we have some farm with technology. We have to also help some, uh, to address some of the challenges we have seen in the last 18 months and H. P. E. is a whole different company uh, that you knew 3.5 years ago. >>And as you said, knowledge is the right thing to do. It's good. It's good for business Antonio. Neary, thanks so much for coming back to the cube is always a pleasure to see you. >>Thanks for having me. Dave and >>thank you for watching this version of HP discover 2021 on the cube. This is David want to keep it right there for more great coverage. Mm

>>approximately two years after HP split into two separate companies, antonioni Ranieri was named president and Ceo of Hewlett Packard Enterprise. Under his tenure, the company has streamlined its operations, sharpened his priorities, simplified the product portfolio and strategically aligned its human capital with key growth initiatives. He's made a number of smaller but high leverage acquisitions and return the company to growth while affecting a massive company wide pivot to an as a service model. Welcome back to HPD discovered 2021. This is Dave Volonte for the cube and it's my pleasure to welcome back Antonio. Neary to the program Antonio it's been a while. Great to see you again. >>Dave Thanks for having me. >>That's really our pleasure. I was just gonna start off with >>the big picture. >>Let's talk about trends. You're a trend spotter. What do you see today? Everybody talks about digital transformation. We had to force marks to digital last year now it's really come into focus. But what are the big trends that you're seeing that are affecting your customers transformations? >>Okay. I mean obviously we have been talking about digital transformation for some time uh in our view is no longer a priority is a strategic imperative. And through the last 15 months or so since we have been going through the pandemic we have seen that accelerated to a level we haven't never seen before. And so what's going on is that we live in a digital economy and through the pandemic now we are more connected than ever. We are much more distributed than ever before and an enormous amount of data is being created and that data has tremendous value. And so what we see in our customers need more connectivity, they need a platform from the edge to the cloud to manage all the data and most important they need to move faster and extracting that inside that value from the data and this is where HP is uniquely positioned to deliver against those experiences the way we haven't imagined before. >>Yeah, we're gonna dig into that now, of course, you and I have been talking about data and how much data for decades, but I feel like we're gonna look back at, you know, in 2030 and say, Wow, we never, we're not gonna do anything like that. So we're really living in a data centric era as the curves are going exponential. What do you see? How do you see customers handling this? How are they thinking about the opportunities? >>Well, I think, you know, customer realized now that they need to move faster, they need to absolutely be uh much more agile and everything. They do. They need to deploy a cloud experience for all the war clothes and data that they manage and they need to deliver business outcomes to stay ahead of the competition. And so we believe technology now plays even a bigger role and every industry is a technology industry in many ways. Every company right, is a technology company, whether your health care, your manufacturer, your transportation company, you are an education, everybody needs more. It no less I. T. But at the same time they want the way they want to consumer Dave is very different than ever before, right? They want an elastic consumption model and they want to be able to scale up and down based on the needs of their enterprise. But if you recall three years ago I knew and I had this conversation, I predicted that enterprise of the future will be edge centric cloud enable and data driven. The edge is the next frontier. We said in 2018 and think about it, you know, people now are working remotely and that age now is much more distribute than we imagined before. Cloud is no longer a destination, it is an experience for all your apps and data, but now we are entering what we call the edge of insight which is all about that data driven approach and this is where all three have to come together in ways that customer did envision before and that's why they need help. >>So I see that I see the definition of cloud changing, it's no longer a set of remote services, you know, somewhere up there in the cloud, it's expanding on prem cross clouds, you mentioned the Edge and so that brings complexity. Every every company is a technology company but they may not be great at technology. So it seems that there are some challenges around there, partly my senses, some of some of what you're trying to do is simplify that for your customers. But what are the challenges that your customers are asking you to solve? >>Well the first they want a consistent and seamless experience, whatever that application and data lives. And so um you know for them you know they want to move away from running I. T. to innovate in our 90 and then obviously they need to move much faster. As I said earlier about this data driven approaches. So they need help because obviously they need to digitize every every aspect of the company but at the same time they need to do it in a much more cost effective way. So they're asking for subject matter expertise on process engineering. They're asking for the fighting the right mix of hybrid experiences from the edge to cloud and they need to move much faster as scale in deploying technologies like Ai deep learning and machine learning. Hewlett Packard Enterprise uh is extremely well positioned because we have been building an age to cloud platform where you provide connectivity where you bring computing and storage uh in a soft of the fine scalable way that you can consume as a service. And so we have great capabilities without HP Point next technology services and advice and run inside. But we have a portfolio with HP Green Lake, our cloud services, the cloud that comes to you that are addressing the most critical data driven warlords. >>Probably about 24 months ago you announced that HP was, was going to basically go all in on as a service and get there by by 2022 for all your solutions. I gotta get, I gotta say you've done a good job communicating the Wall Street, I think. I think culturally you've really done a good job of emphasizing that to your, to the workforce. Uh, but but how should we measure the progress that you've made toward that goal? How our customers responding? I know how the markets responding, you know, three or four year big competitors have now announced. But how should we measure, you know, how you're tracking to that goal? >>Well, I think, you know, the fact that our competitors are entering the other service market is a validation that our vision was right. And that's that's that's good because in the end, you know, it tells us we are on the right track. However, we have to move much faster than than ever before. And that's why we constantly looking for ways to go further and faster. You're right. The court of this is a cultural transformation. Engineering wise, once you step, once you state the North Star, we need to learn our internal processes to think cloud first and data first versus infrastructure. And we have made great progress. The way we measure ourselves. Dave is very simple is by giving a consistent and transparent report on our pivot in that financial aspect of it, which is what we call the annualized revenue run rate, Which we have been disclosed enough for more than a year and a half. And this past quarter grew 30% year over year. So we are on track to deliver at 30 to 40% cake or that we committed two years ago And this business going to triple more than uh more than one year from now. So it's gonna be three times as bigger as we enter 2022 and 2023. But in the end it's all about the experience you deliver and that's why architecturally uh while we made great progress. I know there is way more work to be done, but I'm really excited because what we just announced here this week is just simply remarkable. And you will see more as we become more a cloud operating driven company in the next month and years to come. >>I want to ask you kind of a personal question. I mean, COVID-19 has sharpened our sensitivity and empathy to a lot of different things. And I think ceos in your position of a large tech company or any large company, they really can't just give lip service to things like E. S. G. Or or ethical uh digital transformation, which is something that you've talked about in other words, making sure that it's inclusive. Everybody is able to participate in this economy and not get left behind. What does this mean to you personally? >>Well, they remember I'm in a privileged position, right? Leading a company like Hewlett Packard Enterprise that has Hewlett and Packard on the brand is an honor, but it's also a big responsibility. Let's remember what this company stands for and what our purpose is, which is to advance the way people live and work. And in that we have to be able to create a more equitable society and use this technology to solve some of the biggest societal challenge you have been facing Last 18 months has been really hard on a number of dimensions, not just for the business but for their communities. Uh, we saw disruption, we saw hardships on the financial side, we saw acts of violence and hatred. Those are completely unacceptable. But if we work together, we can use these technologies to bring the community together and to make it equitable. And that's one is one of my passion because as we move into this digital economy, I keep saying that connecting people is the first step and if you are not connected you're not going to participate. Therefore we cannot afford to create a digital economy for only few. And this is why connectivity has to become an essential service, not different than water and electricity. And that's why I have passion and invest my own personal time working with entities like World Economic Forum, educating our government, which is very important because both the public sector and the private sector have to come together. And then from the technology standpoint, we have to architect these things. They are commercially accessible and viable to everyone. And so it's uh it's I will say that it's not just my mission. Uh this is top of mind for many of my colleagues ceos that talked all the time and you can see of movement, but at the same time it's good for business because shareholders now want to invest in companies that take care about this. How we make, not just a world more inclusive and equitable, but also how we make a more sustainable and we with our technologies we can make the world way more sustainable with circular economy, power, efficiency and so forth. So a lot of work to be done dave but I'm encouraged by the progress but we need to do way way more. >>Thank you for that Antonio I want to ask you about the future and I want to ask you a couple of different angles. So I want to start with the edge. So it seems to me that you're you're building this vision of what I call a layer that abstracts the underlying complexity of the whether it's the public cloud across clouds on prem and and and the edge And it's your job to simplify that. So I as the customer can focus on more strategic initiatives and that's clearly the vision that you guys are setting forth on. My question is is how far do you go on the edge? In other words, it seems to me that Aruba for example, for example, awesome acquisition can go really, really deep into the far edge. Maybe other parts of your portfolio, you're kind of more looking at horizontal. How should we think about HP es positioning and participation in that edge opportunity? >>Well, we believe we are becoming one of the merger leaders at the intelligent edge. Right. These edges becoming more intelligent. We live in a hyper connected world and that will continue to grow at an exponential pace. Right? So today we we might have billions of people and devices pursue. We're entering trillions of things that will be connected to the network. Uh, so you need a platform to be able to do with the scale. So there is a horizontal view of that to create these vertical experiences which are industry driven. Right? So one thing is to deliver a vertical experience in healthcare versus manufacturer transportation. And so we take a really far dave I mean, to the point that we just, you know, put into space 256 miles above the earth, a supercomputer that tells you we take a really far, but in the end it's about acting where the data is created and bringing that knowledge and that inside to the people who can make a difference real time as much as possible. And that's why I start by connecting things by bringing a cloud experience to that data wherever it lives because it's cheaper and it's where more economical and obviously there is aspects of latest in security and compliance that you have to deal with it and then ultimately accelerate that inside into some sort of outcome and we have many, many use cases were driving today and Aruba is the platform by the way, which we have been using now to extend from the edge all the way to the core into the cloud business and that's why you HP has unique set of assets to deliver against that opportunity. >>Yes, I want to talk about some of the weapons you have in your arsenal. You know, some people talk about a week and we have to win the architectural battle for hybrid cloud. I've heard that statement made, certainly HPV is in that balance is not a zero sum game, but but you're a player there. And so when I when I look at as a service, great, you're making progress there. But I feel like there's more, there's there's architecture there, you're making acquisitions, you're building out as moral, which is kind of an interesting data platform. Uh, and so I want to ask you, so how you see the architecture emerging and where H. P. S sort of value add i. P. Is your big player and compute you've got actually you've got chops and memory disaggregate asian, you've done custom silicon over the years. How how should we think about your contribution to the next decade of innovation? >>Well, I think it's gonna come different layers of what we call the stock, right? Obviously, uh, we have been known for an infrastructure company, but the reality is what customers are looking for Our integrated solutions that are optimized for the given workload or application. So they don't have to spend time bringing things together. Right? And and spend weeks sometimes months when they can do it in just in a matter of minutes a day so they can move forward innovative or 90. And so we we are really focused on that connectivity as the first step. And Aruba give us an enormous rich uh through the cloud provisioning of a port or a wifi or a one. As you know, as we move to more cloud native applications. Much of the traffic through the connectivity will go into the internet, not through the traditional fixed networks. And that's what we did acquisitions like Silver Peak because now we can connect all your ages and all your clouds in an autonomous software defined way as you go to the other spectrum, right. We talk about what load optimization and uh for us H. P. S. My role is the recipe by which we bring the infrastructure and the software in through that integrated solution that can run autonomously that eventually can consume as a service. And that's why we made the introduction here of HP Green like lighthouse which is actually I fully optimised stack the with the push of a bottom from HP Green Lake cloud platform we can deploy whatever that that is required and then be able to Federated so we can also address other aspects like disaster recovery and be able to share all the knowledge real time. So I'm learning is another thing that people don't understand. I mean if you think about it. So I'm learning is a distributed Ai learning uh ecosystem and think about what we did with the D. C. Any in order to find cures for Alzheimer's or dementia. But swam learning is gonna be the next platform sitting on this age to cloud architecture so that instead of people worrying about sharing data, what we're doing is actually sharing insights And be able to learn to these millions of data points that they can connect with each other in a secure way. Security is another example, right? So today on an average takes 28 days to find a bridge in your enterprise with project Aurora, which we're gonna make available at the end of the year, by the end of the year. We actually can address zero day attacks within seconds. And then we're work in other areas like disaster recovery when you get attacked. Think about the ransom ramp somewhere that we have seen in the last few weeks, right? You know, God forbid you have to pay for it. But at the same time, recovery takes days and weeks. Sometimes we are working on technology to do it within 23 seconds. So this is where HP can place across all spectrums of the stack. And at the same time, of course, people expect us to innovate in infrastructural layer. That's why we also partnered with companies like Intel, we're with the push of a bottle. If you need more capacity of the court, you don't have to order anything, just push the bottle. We make more calls available so that that will load can perform and when you don't need to shut it off so you don't have to pay for it. And last finalist, you know, I will say for us is all about the consumption availability of our solutions And that's what I said, you know, in 2019 we will make available everything as a service by 2022. You know, we have to say as you know, there is no need to build the church for easter sunday when you can rent it for that day. The point here is to grow elastically and the fact that you don't need to move the data is already a cost savings because cost of aggression data back and forth is enormous and customers also don't want to be locked in. So we have an open approach and we have a through age to cloud architecture and we are focusing on what is most valuable aspect for the customer, which is ultimately the data. >>Thank you for that. One of the other things I wanted to ask you about, and again, another weapon in your arsenal is you mentioned uh supercomputing before up in space where we're on the cusp of exa scale and that's the importance of high performance computing. You know, it used to be viewed as just a niche. I've had some great conversations with Dr go about this, but that really is the big data platform, if you will. Uh can I wonder if you could talk a little bit about how that fits into the future. Your expertise in HPC, you're obviously a leader in that space. What's the fit with this new vision? You're laying out? >>Well, HPC, high performance computer in memory computer are the backbone to be able to manage large data sets at massive scale. Um and, you know, deployed technologies like deep learning or artificial intelligence for this massive amount of data. If we talked about the explosion of data all around us and uh, you know, and the algorithms and the parameters to be able to extract inside from the day is getting way more complex. And so the ability to co locate data and computed a massive scale is becoming a necessity, whether it's in academia, whether it's in the government obviously to protect your, your most valuable assets or whether it is in the traditional enterprise. But that's why with the acquisition of Cray, S. G. I. And our organic business, we are absolutely the undisputed leader to provide the level of capabilities. And that's why we are going to build five of the top six exa scale systems, which is basically be able to process they billion billion, meaning billion square transactions per second. Can you imagine what you can do with that? Right. What type of problems you can go solve climate problems? Right. Um you know, obviously be able to put someone back into the moon and eventually in mars you know, the first step to put that supercomputer as an edge computer into the international space station. It's about being able to process data from the images that take from the ice caps of the, of the earth to understand climate changes. But eventually, if you want to put somebody in in into the Marks planet, you have to be able to communicate with those astronauts as they go and you know, you can't afford the latency. Right? So this is where the type of problems we are really focused on. But HPC is something that we are absolutely uh, super committed. And it's something that honestly we have the full stack from silicon to software to the system performance that nobody else has in the industry. >>Well, I think it's a real tailwind for you because the industry is moving that direction. Everybody talks about the data and workloads are shifting. We used to be uh, I got LTP and I got reporting. Now you look at the workloads, there's so much diversity. So I'll give you the last word. What what really is the most exciting to you about the future of HPV? >>Well, I'm excited about the innovation, will bring it to the market and honestly, as the Ceo, I care about the culture of the company. For me, the last almost 3.5 years have been truly remarkable. As you said at the beginning, we are transforming every aspect of this company. When I became CEO, I had three priorities for myself. One is our customers and partners. That's why we do these events right to communicate, communicate, communicate. Uh they are our North Star, that's why we exist. Uh, second is our innovation right? We compete to win with the best innovation, solving the most complex problems in a sustainable and equitable way. And third is the culture of the company, which are the core is how we do things in our Team members and employees. You know, I represent my colleagues here, the 60,000 strong team members that have incredible passion for our customers and to make a contribution every single day. And so for me, I'm very optimistic about what we see the recovery of the economy and the possibilities of technology. But ultimately, you know, we have to work together hand in hand. Uh and I believe this company now is absolutely on the right track to not just be relevant, but really to make a difference. And remember that in the end we we have to be a force for good. And let's not forget that while we do all of this, we have some farm with technology. We have to also help some uh to address some of the challenges we have seen in the last 18 months. An H. P. E is a whole different company, uh, that you knew 3.5 years ago. >>And as you said, it's, it's knowledge is the right thing to do. It's good. It's good for business Antonio. Neary. Thanks so much for coming back to the cube. Is always a pleasure to see you. >>Thanks for having me Dave >>and thank you for watching this version of HP discover 2021 on the cube. This is David want to keep it right there for more great coverage. >>Mm

>> From New York City, it's theCUBE, covering Welcome to the New Edge. Brought to you by Pensando Systems. >> Hey, welcome back everybody, Jeff Frick here with theCUBE. We're on top of Goldman Sachs in downtown Manhattan. It was a really beautiful day a couple of hours ago, but the rain is moving in, but it's appropriate 'cause we're talking about cloud. And we're here for a very special event. It's the Pensando launch, I'll get the pronunciation right, Pensando launch, and it's really about Welcome to the New Edge. And to start off, I mean, I couldn't come up with two better tech executives who've been around the block, seen it all, and they're both here for this launch event which is pretty special. On my left, Antonio Neri, CEO and president of HP. Antonio, great to see you. >> Thanks for having me. >> And John Chambers, of course we know him from his many years at Cisco, but now he's the chairman of Pensando, and of course J2 Ventures, and an author, and John, you're keeping yourself busy. >> I am, tryin' to change the world one more time. >> All right, so let's talk about that changing the world, 'cause you are two very high, powerful people. You run big companies, and you talked about, in your opening remarks, the next wave. You talked about these kind of 10-year waves. And we're starting a new one, which is why you got involved. Why did you see that coming, what do you see in Pensando, and how are we going to address this opportunity? >> Well, when you think about it, every 10 years there's a new leader in the marketplace, and nobody has stayed on top longer than 10 years and has led in the next market transition. We think about mainframes, IBM clearly the leader there, the mini computers, I'm biased toward Wang, but DEC was there. Then the client server and obviously Microsoft and Intel playing a very key role, followed by the internet where Cisco was very, very successful. And then followed, literally by that, by social media and then the cloud and then what I think will be bigger than any of the prior ones, it's about what happens as the cloud moves to the edge. And we may end up having a different term every time, but that really is what we saw today. And how we came together with a common vision as the cloud moves to the edge, what could an ecosystem of partners do, with a foundation, with Pensando at the core of that, to really take advantage from how do you deliver services to our joint customers in a way that no one else can. And have the courage, really, to go challenge Amazon in terms of their market dominance, but provide choice and say it's a multi cloud world. How do you provide that choice and then how do you differentiate it together with each partner? >> Antonio, you guys have been talking about edge for a long, long time. You've been on this for a while. HP's such a great company. Used to be, I think, one of the great validators if anyone could do a deal with HP. It was really a technology validation and a business validation, and I think that still holds true. So you must have, knocking on your door all day long. What did you see in this opportunity with Pensando? >> Well, first of all, John and I see the world from the same lens. We see a world where the enterprise of the future will be essentially cloud enabled and data-driven. And therefore we have to remove these barriers, call it the cloud in one place or the other one. We are going to live what are calling a edge-to-cloud world where, is a cloudless. Where the cloud experience is distributed everywhere. And where action happens is where we live and work right now, right here. We're having a conversation, we're producing data, and we are transmitting this real time. So, the point is, we believe the edge is a new frontier and that's where the vast majority is being created, 75%. of it created the edge. And this is where it starts by having a common vision and ultimately a same DNA, same culture. John and I share the same values for passion for customers, passion for driving a customer-driven innovation, and ultimately change the world like we have done for decades. And I think Hewlett-Packard Enterprise is uniquely positioned to be the edge-to-cloud platform delivered as a service. And together with Pensando and the great technology I bring about from the silicon side and on the softer side, together with our own knowhow and engineering capabilities, we can change the world again. >> And the fun part is, we can almost finish each other's sentences. (all laughing) We have a little bit different accent. The stability to have a common vision, having never really talked about it, and then a view of the common culture. Because strategic partnerships are really hard. And you said it on stage, but I cannot agree with it more. If you're cultures aren't similar, if you don't think how does your partner win first and how do you win second, this is very hard to do. And we can finish each other's sentences. >> And I think there is another point here that John and I truly believe, because it's part of our values. It's to use technology for good. So, one thing is accelerating the business innovation and what our enterprise customers are going through, but then how apply that technology to deliver some good. And we as a company have a clear purpose in life, which is to advance the way people live and work. So, I think as we go through this massive inflection point, both from the business side and the technology side, not only we can create a better world, but also give back somewhat to the communities as well. >> There are massive changes, and it's a sea-change in infrastructure in the way things are done, but you hit on three really key, simple words in your remarks earlier. Trust, engineering-driven, which is HP's culture from the earliest garage days, and customer-centric. So, we hear about data-driven but in engineering, you don't necessarily want to lead with that. Customer-centric you do have to lead and it's pretty interesting at Pensando, you talk to all these customers, and you're just launching the company today, you've been in stealth for over two years. But all these customers have been engaged with you since the very, very beginning. Pretty interesting approach. >> It is, and we do share a common passion on that. Every company says they're customer-driven, but just ask how the CEO spends his or her time. I just asked their customers, do they replace them first on every issue? We share that common value completely. >> Yeah, I spend 50% of my time on the road talking to customers. That's my goal, because I believe the truth is in the cold face. When you talk to customers, you get the truth, what the challenges and opportunities are. And we need to bring that succinct feedback back into our problem management engineering team to try to solve there's a problem. So take advantage of those opportunities by delivering a better experience. It starts with experience first and technology comes second. >> The other piece you talked about is your team, and diversity and really the power of diversity. And, I think it was, the Lincoln cabinet, band of people that didn't get along with each other and had a bunch of different points of view. But because of that, it surfaces issues and it lets you see multi sides. You said you handpicked that team. What are some of the things you thought about when you handpicked your team when you took the reins a couple years ago from the-- >> Well, it starts by, thought leadership and what, how they see the world, ultimately what the strengths are and how we bring those strengths for the power of one. I agree with John, I believe a team comes first, individual comes second. And if you can bring the best of each individual in a concerted way where you create an environment for debate and ultimately for getting alignment and moving forward with execution. That's what that is all about, leadership. So, I handpicked those people because each of them had that unique quality. Whether it's, you know, being very self-centric in the way you deliver the value proposition or very technology-centric, or very services oriented. So, we have picked those people for a reason and it's not easy to manage a very opinionated team. (all laughing) But once you can get them aligned, is actually incredible fun to watch. >> You know, I would make one tweak to what you just asked the question on. I had a chance to watch his team for the first time in our garage startup at my house. And they are very diverse with different opinions, they are very comfortable with disagreeing with each other. But they have a common set of values and a common end goal. I'm not sure the Lincoln cabinet had that. And that's so important to realize, because what we're about to do together and what each of us are trying to do in our own endeavors, it's so important to have a team that has that type of culture and the ability to move for that. >> The other team that mentioned, that kept coming up throughout the day, was the team that you're working with on Pensando. And how this team has been together for, I think you said the new 20, right? 25 plus years, and have built multiple projects, multiple products over many, many years. And now have this cohesion as you keep saying, they can finish their own sentences. You know, a really specific approach to get this group together that you know is not going to be strategy, it's going to be delivery. >> It is going to be the combination, if I may. And it is very unique that a team works together for over 25 years. It's a team that is a family and we are about as diverse as it gets in our backgrounds, our accents, our countries that our families came from. But it's a team that competes purely on getting market transitions right, that is always driven by our customers and what we need to do and build and put 'em always first in everything we do. And then it's fearless. We outline audacious goals at being number one in everything we do, and out of the eight products that we built together, we are number one in all eight. All of 'em with over 50% market share, and there was no number two. And so the ability to execute with that type of precision, customer-driven and the courage to do it and understand what we know and what we don't know. Coming together one more time, I mean it's really exciting, it will be a new definition of 20 somethings in a startup. >> So, getting you the last word Antonio, as you looked at John's chart with those 10-year blocks and the garage has been around Palo Alto for a long time. >> 82 years. >> You guys have seen a lot, 82 years, you've been through a few of these and you're still here and still doing a great job and still winning. So, as you look at that from your current position as CEO, what goes through your head? How are you making sure you're keeping ahead? How are you avoiding the Clayton Christensen Innovator's Dilemma, to make sure you're killing your own business before somebody else kills kind of the old stuff and making sure you're out in front. >> When I became a CEO, in the transition from Meg to me, I established three key priorities for myself. One is our customers and partners. Keep them at the center of everything we do. That's one of our core values. Second is innovation, innovation, innovation. Innovation from a customer-driven approach. And third is the culture of the company. And what a great example here with John, you know, leading an iconic company for decades. And so to me, I have been working very aggressive on the three of those aspects. And I'm very pleased with the progress we have made. But, now is about writing the next chapter of this company. And in order to write that next chapter company, you need to have a strong alignment at the top, all the way down, what I call ropes to the ground. So, fun enough, John is going to be in my event here in a couple of weeks. We'll bring the leadership team, the top 400 leaders, talking about how to disrupt yourself and how you pay for the company into the future. And the future, as I said, is we see an enterprise that's edge-centric, cloud-enabled, and data-driven, delivered as a service. So we are going to be the, as a service company with an edge-to-cloud platform that accelerates business from the data. And the combination of Pensando technologies and engineering capabilities, with our vision and our own intellectual property, we think we can deliver those unique experience for the customers in a more agile, cost-effective way and democratize the cloud, as John say, for the world. So, I'm incredibly excited about doing this. And who thought that John Chambers and Antonio Neri would be here, you know. And the reality is it takes leadership, so I value leadership, I value trust, and this partnership is built on trust. And we both have the same values. >> I appreciate you taking the time. I mean, we're going to talk about the products a little bit later. We've got some of the deeper product people. But, you know, I think the leadership thing is so important and I think it's harder. I think it's hard to be a great leader, it's hard to lead through transitions, and the pace of change is only accelerating, so the challenge is only going to increase. But I think communication and trust is such a big piece. I saw Dave Pottruck speak many, many times and he's very, very good. And I asked him, 'cuz we had a thing at school. I said, "Dave, why are you so good?" And he said, "Very simple. "As a CEO, my job is to communicate. "I have three constituents. "I have my customers, I have the street, "and I have my employees. "And so I treat it as a skill, I practice, I got a coach, "and I treat it like any other skill." And it's so hard and so important to provide that leadership, provide that direction, so everybody can pull the rope in the same direction. Nothing but the best to both of you and thanks for taking a few minutes. >> Thank you. >> It was a lot of fun. >> All right. >> It's a pleasure. >> Thank you. >> He's Antonio, he's John, I'm Jeff. You're watching theCUBE, from the top of Goldman Sachs in Manhattan. Thanks for watching, we'll see you next time. (upbeat music)

(upbeat music) >> Hello, welcome to the Cube's coverage of International Women's Day 2023. I'm John Furrier, host of the CUBE series of profiles around leaders in the tech industry sharing their stories, advice, best practices, what they're doing in their jobs their vision of the future, and more importantly, passing it on and encouraging more and more networking and telling the stories that matter. Our next guest is a great executive leader talking about how to lead in challenging times. Krista Satterthwaite, who is Senior Vice President and GM of Mainstream Compute. Krista great to see you're Cube alumni. We've had you on before talking about compute power. And by the way, congratulations on your BPT and Black Professional Tech Network 2023 Black Tech Exec of the Year Award. >> Thank you very much. Appreciate it. And thanks for having me. >> I knew I liked you the first time we were doing interviews together. You were so smart and so on top of it. Thanks for coming on. >> No problem. >> All kidding aside, let's get into it. You know, one of the things that's coming out on these interviews is leadership is being showcased and there's a network effect happening in the industry and you're starting to see people look and hear stories that they may or may not have heard before or news stories are coming out. So, one of the things that's interesting is that also in the backdrop of post pandemic, there's been a turn in the industry a little bit, there's a little bit of headwind in certain areas, some tailwinds in cloud and other areas. Compute, your area is doing very well. It could be challenging. And as a leader, has the conversation changed? And where are you at right now in the network of folks you're working with? What's the mood? >> Yeah, so actually I, things are much better. Obviously we had a chip shortage last year. Things are much, much better. But I learned a lot when it came to going through challenging times and leadership. And I think when we talk to customers, a lot of 'em are in challenging situations. Sometimes it's budget, sometimes it's attracting and retaining talent and sometimes it's just demands because, it's really exciting that technology is behind everything. But that means the demands on IT are bigger than ever before. So what I find when it comes to challenging times is that there's really three qualities that are game changers when it comes to leading and challenging times. And the first one is positivity. People have to feel like there's a light at the end of the tunnel to make sure that, their attitudes stay up, that they stay working really really hard and they look to the leader for that. The second one is communication. And I read somewhere that communication is leadership. And we had a great example from our CEO Antonio Neri when the pandemic hit and everything shut down. He had an all employee meeting every week for a month and we have tens of thousands of employees. And then even after that month, we had 'em very regularly. But he wanted to make sure that everybody heard from, him his thoughts had all the updates, knew how their peers were doing, how we were helping customers. And I really learned a lot from that in terms of communicating and communicating more during tough times. And then I would say the third one is making sure that they are informed and they feel empowered. So I would say a leader who is able to do that really, really stands out in a challenging time. >> So how do you get yourself together? Obviously you the chip shortage everyone knows in the industry and for the folks not in the tech industry, it was an economic potential disaster, because you don't get the chips you need. You guys make servers and technology, chips power everything. If you miss a shipment, it could cause a lot of backlash. So Cisco had an earnings impact. It has impact to the business. When do you have that code red moment where it's like, okay, we have to kind of put the pause and go into emergency mode. And how do you handle that? >> Well, you know, it is funny 'cause when it, when we have challenges, I come to learn that people can look at challenges and hard work as a burden or a mission and they behave totally different. If they see it as a burden, then they're doing the bare minimum and they're pointing fingers and they're complaining and they're probably not getting a whole lot done. If they see it as a mission, then all of a sudden they're going above and beyond. They're working really hard, they're really partnering. And if it affects customers for HPE, obviously we, HPE is a very customer centric company, so everyone pays attention and tries to pitch in. But when it comes to a mission, I started thinking, what are the real ingredients for a mission? And I think it's important. I think it's, people feel like they can make an impact. And then I think the third one is that the goal is clear, even if the path isn't, 'cause you may have to pivot a lot if it's a challenge. And so when it came to the chip shortage, it was a mission. We wanted to make sure that we could ship to customers as quickly as possible. And it was a mission. Everybody pulled together. I learned how much our team could pull off and pull together through that challenge. >> And the consequences can be quantified in economics. So it's like the burn the boats example, you got to burn the boats, you're stuck. You got to figure out a solution. How does that change the demands on people? Because this is, okay, there's a mission it they're not, it's not normal. What are some of those new demands that arise during those times and how do you manage that? How do you be a leader? >> Yeah, so it's funny, I was reading this statement from James White who used to be the CEO of Jamba Juice. And he was talking about how he got that job. He said, "I think it was one thing I said that really convinced them that I was the right person." And what he said was something like, "I will get more out of people than nine out of 10 leaders on the planet." He said, "Because I will look at their strengths and their capabilities and I will play to their passions." and their capabilities and I will play their passions. and getting the most out people in difficult times, it is all about how much you can get out of people for their own sake and for the company's sake. >> That's great feedback. And to people watching who are early in their careers, leading is getting the best out of your team, attitude. Some of the things you mentioned. What advice would you give folks that are starting to get into the workforce, that are starting to get into that leadership track or might have a trajectory or even might have an innate ability that they know they have and they want to pursue that dream? >> Yeah so. >> What advice would you give them? >> Yeah, what I would say, I say this all the time that, for the first half of my career I was very job conscious, but I wasn't very career conscious. So I'd get in a role and I'd stay in that role for long periods of time and I'd do a good job, but I wasn't really very career conscious. And what I would say is, everybody says how important risk taking is. Well, risk taking can be a little bit of a scary word, right? Or term. And the way I see it is give it a shot and see what happens. You're interested in something, give it a shot and see what happens. It's kind of a less intimidating way of looking at risk because even though I was job conscious, and not career conscious, one thing I did when people asked me to take something on, hey Krista, would you like to take on more responsibility here? The answer was always yes, yes, yes, yes. So I said yes because I said, hey I'll give it a shot and see what happens. And that helped me tremendously because I felt like I am giving it a try. And the more you do that, the the better it is. >> It's great. >> And actually the the less scary it is because you do that, a few times and it goes well. It's like a muscle that builds. >> It's funny, a woman executive was on the program. I said, the word balance comes up a lot. And she stopped and said, "Let's just talk about balance for a second." And then she went contrarian and said, "It's about not being unbalanced. It's about being, taking a chance and being a little bit off balance to put yourself outside your comfort zone to try new things." And then she also came up and followed and said, "If you do that alone, you increase your risk. But if you do it with people, a team that you trust and you're authentic and you're vulnerable and you're communicating, that is the chemistry." And that was a really good point. What's your reaction? 'Cause you were talking about authentic conversations good communications with Antonio. How does someone get, feel, find that team and do you agree with it? And what was your, how would you react to that? >> Yes, I agree with that. And when it comes to being authentic, that's the magic and when someone isn't, if someone's not really being themselves, it's really funny because you can feel it, you can sense it. There's kind of a wall between you and them. And over time people won't be able to put their finger on it, but they'll feel a distance from you. But when you're authentic and you share who you are, what you find is you find things in common with other people. 'Cause you're sharing more of who you are and it's like, oh, I do that too. Oh, I'm interested in that too. And build the bonds between people and the authenticity. And that's what people crave. They want people to be authentic and people can tell when you're authentic and when you're not. >> Is managing and leading through a crisis a born talent or can you learn it? >> Oh, definitely learned. I think that we're born knowing nothing and I once read people are nurtured into greatness and I think that's true. So yeah, definitely learned. >> What are some examples that can come out of a tough time as folks may look at a crisis and be shy away from it? How do they lean into it? What advice would you give folks? How do you handle it? I mean, everyone's got different personality. Okay, they get to a position but stepping through that door. >> Yeah, well, I do this presentation called, "10 things I Wish I Knew Earlier in my Career." And one of those things is about the growth mindset and the growth mindset. There's a book called "Mindset" by Carol Dweck and the growth mindset is all about learning and not always having to know everything, but really the winning is in the learning. And so if you have a growth mindset it makes you feel better about everything because you can't lose. You're winning because you're learning. So when I've learned that, I started looking at things much differently. And when it comes to going through tough times, what I find is you're exercising muscles that you didn't even know you had, which makes you stronger when the crisis is over, obviously. And I also feel like you become a lot a much more creative when you're in challenging times. You're forced to do things that you hadn't had to do before. And it also bonds the team. It's almost like going through bootcamp together. When you go through a challenge together it bonds you for life. >> I mean, you could have bonding, could be trauma bonding or success bonding. People love to be on the success side because that's positive and that's really the key mindset. You're always winning if you have that attitude. And learnings is also positive. So it's not, it's never a failure unless you make it. >> That's right, exactly. As long as you learn from it. And that's the name of the game. So, learning is the goal. >> So I have to ask you, on your job now, you have a really big responsibility HPE compute and big division. What's the current mindset that you have right now in your career, where you're at? What are some of the things on your mind that you think about? We had other, other seniors leaders say, hey, you know I got the software as my brain and the hardware's my body. I like to keep software and hardware working together. What is your current state of your career and how you looking at it, what's next and what's going on in your mind right now? >> Yeah, so for me, I really want to make sure that for my team we're nurturing the next generation of leadership and that we're helping with career development and career growth. And people feel like they can grow their careers here. Luckily at HPE, we have a lot of people stay at HPE a long time, and even people who leave HPE a lot of times they come back because the culture's fantastic. So I just want to make sure I'm contributing to that culture and I'm bringing up the next generation of leaders. >> What's next for you? What are you looking at from a career personal standpoint? >> You know, it's funny, I, I love what I'm doing right now. I'm actually on a joint venture board with H3C, which is HPE Joint Venture Company. And so I'm really enjoying that and exploring more board service opportunities. >> You have a focus of good growth mindset, challenging through, managing through tough times. How do you stay focused on that North star? How do you keep the reinforcement of the mission? How do you nurture the team to greatness? >> Yeah, so I think it's a lot of clarity, providing a lot of clarity about what's important right now. And it goes back to some of the communication that I mentioned earlier, making sure that everybody knows where the North Star is, so everybody's focused on the same thing, because I feel like with the, I always felt like throughout my career I was set up for success if I had the right information, the right guidance and the right goals. And I try to make sure that I do that with my team. >> What are some of the things that you could share as we wrap up here for the folks watching, as the networks increase, as the stories start to unfold more and more on digital like we're doing here, what do you hope people walk away with? What's working, what needs work, and what is some things that people aren't talking about that should be discussed publicly? >> Do you mean from a career standpoint or? >> For career? For growing into tech and into leadership positions. >> Okay. >> Big migration tech is now a wide field. I mean, when I grew up, broke into the eighties, it was computer science, software engineering, and three degrees in engineering, right? >> I see huge swath of AI coming. So many technical careers. There's a lot more women. >> Yeah. And that's what's so exciting about being in a technical career, technical company, is that everything's always changing. There's always opportunity to learn something new. And frankly, you know, every company is in the business of technology right now, because they want to closer to their customers. Typically, they're using technology to do that. Everyone's digitally transforming. And so what I would say is that there's so much opportunity, keep your mind open, explore what interests you and keep learning because it's changing all the time. >> You know I was talking with Sue, former HP, she's on a lot of boards. The balance at the board level still needs a lot of work and the leaderships are getting better, but the board at the seats at the table needs work. Where do you see that transition for you in the future? Is that something on your mind? Maybe a board seat? You mentioned you're on a board with HPE, but maybe sitting on some other boards? Any, any? >> Yes, actually, actually, we actually have a program here at HPE called the Board Ready Now program that I'm a part of. And so HPE is very supportive of me exploring an independent board seat. And so they have some education and programming around that. And I know Sue well, she's awesome. And so yes, I'm looking into those opportunities right now. >> She advises do one no more than two. The day job. >> Yeah, I would only be doing one current job that I have. >> Well, kris, it was great to chat with you about these topics and leadership and challenging times. Great masterclass, great advice. As SVP and GM of mainstream compute for HPE, what's going on in your job these days? What's the most exciting thing happening? Share some of your work situations. >> Sure, so the most exciting thing happening right now is HPE Gen 11, which we just announced and started shipping, brings tremendous performance benefit, has an intuitive operating experience, a trusted security by design, and it's optimized to run workloads so much faster. So if anybody is interested, they should go check it out on hpe.com. >> And of course the CUBE will be at HPE Discover. We'll see you there. Any final wisdom you'd like to share as we wrap up the last minute here? >> Yeah, so I think the last thing I'll say is that when it comes to setting your sights, I think, expecting it, good things to happen usually happens when you believe you deserve it. So what happens is you believe you deserve it, then you expect it and you get it. And so sometimes that's about making sure you raise your thermostat to expect more. And I always talk about you don't have to raise it all up at once. You could do that incrementally and other people can set your thermostat too when they say, hey, you should be, you should get a level this high or that high, but raise your thermostat because what you expect is what you get. >> Krista, thank you so much for contributing to this program. We're going to do it quarterly. We're going to do getting more stories out there, so we'll have you back and if you know anyone with good stories, send them our way. And congratulations on your BPTN Tech Executive of the Year award for 2023. Congratulations, great prize there and great recognition for your hard work. >> Thank you so much, John, I appreciate it. >> Okay, this is the Cube's coverage of National Woodman's Day. I'm John Furrier, stories from the front lines, management ranks, developers, all there, global coverage of international events with theCUBE. Thanks for watching. (soft music)

>>The cube presents HPE discover 2022 brought to you by HPE. >>Welcome back to HPE. Discover 2022. My name is Dave Lanta. I'm here with my co-host John fur. John we've been watching the evolution of H HP to HPE. We've seen GreenLake when Antonio Neri, I called it. I called it burn the boats. He goes, no, no, no, it wasn't burn the boats. I said, well, okay, burn the bridges. But it was all in on as a service on, on GreenLake. And we're gonna talk about that. Brad Shapiro is here. He's the vice president and managing director of the enterprise business at HPE financial services. Brad. Good to see him. Good to see >>You as well. >>Yeah, you guys got it all started. When, when Antonio kinda laid down, the gauntlet said, this is where we're going. Let's make it happen now. Cause the first place he turned I would imagine is the financial services said, okay, how do we start this today? Can you help us? And they take us back to that >>And yeah, sure. So, you know, uh, yeah, HP financial services, um, it's kind of a foundational element cuz when you think about it, asset management is really what we're doing here. And I know asset management's a, a big word, right? And it can mean lots of things to, to different people. Um, in this context, uh, we started looking at how do customers manage assets over the life cycle and a lot of customers while they were interested in a consumption model and looking at GreenLake for their private cloud, they were certainly looking at public cloud for certain workloads and then maybe even traditional data center for other activities that, that they're running. So it's really that hybrid environment. Uh, but they were stuck going well, Hey, I'm in a CapEx model today. How do I get out of CapEx and really get into this hybrid model? >>And that's where asset management comes in. So one of the, the biggest initial focus is, and we continue to have that focus. We call it our accelerated migration offer and it's really us going in and acquiring the customer assets, moving it on the HPE balance sheet and then figuring out what are we gonna do with those assets, which are gonna stay in use under a consumption model, which are excess. And we can put through our, uh, asset up cycling process, we monetize the majority of that, put that back into reuse and then maybe a small amount gets recycled. So, so really focused on the assets and accelerating customers transition to GreenLake. Did you >>See, or are you seeing a difference between like Le traditional leasing customers who already have kind of on that model versus like what you just described as sort of the, the CapEx was more complicated, you gotta get, I presume procurement involved the legal issues and was there a lot less, was it less friction with the, the leasing customers? Well, >>You know, I, I look at leasing and financing, very similar to CapEx. It's, it's a much more traditional model versus this new as a service experience. Um, so if, if they were in a leasing model, we could convert those leases into GreenLake. I wouldn't say one was any more difficult than the other. Yeah. Um, they were both really traditional mindset, um, and not really looking at a consumption model. So I think we had our fair share of both. And I think we, we have and are able to address both customers moving in into a consumption >>Mode. Right. How does this tie into sustainability? Because you know, we have on one end of the spectrum, the, the high end sustainability, you know, the, the science and sure. And the behind it, tactically speaking companies still now want to operate in this kind of, there's a sustainable angle here. Yeah. Talk about that piece of it. How does that tie in obviously consumption versus CapEx you're building, you're not building, what, what does that thread through the sustainability angle? >>Yeah. So, so first let me just say sustainability is really important to our customers. Um, and, and we're seeing it all over and it is real. Um, the good thing is that you can get business value out of the solutions and have a more sustainable model. So when I think about, and I talk to customers about sustainability, uh, there's a number of fronts they're focused on one, their customers believe it's important, right? So, so they're focused on making sure they're driving sustainable models. Uh, I've seen an increasing number of customers, both commercial and public sector have sustainability requirements in their tenders, in their RFPs. And you have to be able to, to comply with those. Um, second, uh, they, they look at it and go, how do I attract talent? It's increasingly important for them to attract talent. And then really if you, because >>They wanna work for a mission driven company that's >>Sustainable. Absolutely. Absolutely. And, and the third area is investors. You know, the investment community is now looking at ESG and whole and you know, certainly environmental impacts, um, in where they're making an investment. So quick personal story, I was talking, uh, to a friend of mine who works for a hedge fund and he was telling me over the last year, they've hired a whole team. That's focused on just doing analysis of companies, ESG initiatives, determining where they're gonna invest their money. So it's, it's a wall street thing now. So this is real from a number of angles where, where sustainability has an impact. Now, how we play in that. Um, clearly when you go to a GreenLake consumption model, the idea is improving utilization of the asset. So driving higher utilization means you need less assets. You know, over time, the, the secret is we're gonna sell you less, right? >>You're gonna have less assets, but you're gonna have higher utilization. That's good for the environment where HPE Fs comes in is when those assets are done. We put those assets back into reuse. So we have a remark, we have remarketing facilities, one in, in Andover, mass, one in kin Scotland. And then we have 80 different facilities. We have partnerships around the world and our focus is how do we drive more reuse, 85% of the assets we get back, go into reuse. And when you look at servers and PCs and things like that, it's over 95% go into reuse. So a real focus on reuse is good for the environment as well. And then needless to say, the new technology that goes into a GreenLake deal, we're seeing like 30% energy savings coming, coming out of those environments. So all really good stuff related to it's >>Interesting. I mean, a couple points there is one is, you know, Benoff kind of got it all started pre pandemic. He was out talking about, you know, sustainability and ESG. And a lot of people were like, no way. It's all about bottom line profits. And so he was ahead of that. And I guess, you know, back to at least you were, oh, you were always in the residual value game, but now it's a little different, isn't it? Absolutely. It's, it's it's yes. You gotta figure out what the value of that asset's gonna be, but also there's a sustainability aspect of it as >>Well. Yeah, absolutely. And the, the pretty cool thing here is while you drive sustainability, we're also seeing customers that, that go into GreenLake. Um, we had a good example with Kern county, a 42% savings over their CapEx environment when they moved to GreenLake. So it was better for the environment and significant savings. So you can have kind of like have your cake and eat it too. You, you get better environmental, uh, impacts and you're getting better bottom line, uh, performance. >>It's a business case there too do. Now we kind of, I was talking upfront about the, the early days of GreenLake where, you know, they were, it was a financial model. Yeah. And now it's evolving to actually a technology model. We heard Alma with the platform. How has that, or has that changed the way that financial services your >>Group >>Yeah. Approaches the, the, the market. >>Yeah. So, um, yeah, that's a great point. You know, when people talk about GreenLake, they think about the old days. And, and look, I've been around a while. I remember the flex capacity, right? Yeah, of course this isn't flex capacity. I mean, the platform's amazing and it really starts to bring to life the whole thought, when we talk about hybrid, right, there are workloads sure. They might belong best in the public cloud. Right. There, there are workloads that belong best in the private cloud, under the HPE GreenLake model. And there are still workloads that customers may say, Hey, look, I've got legacy applications. I'm gonna continue to run them in a traditional data center. And so from an H P E Fs perspective, you know, we look at this, not as a leasing and financing company, we're looking at this on how do we leverage the customer's existing assets? >>How do we create incremental budget using those existing assets? And then what kind of model best serves that workload? And then how do you optimize the capacity and the spend on that? So, you know, an interesting note in the past year, we put 500 million back into customer budgets by just leveraging their existing it estate. And, and it does, it's not all HPE product, you know, we're, we're, we're monetizing third party products in the data center, in the network, in the workplace. So we can really look at, we call it any tech any time, anywhere we look at all the technology and really assess what's the best way to leverage that investment. Yeah. And, and get the most out of >>It. Yeah. I mean, it's really evolved from just recycling assets for profit, but integrating the business model into the value proposition, the core value proposition in GreenLake. That's great innovation. Um, and, and congratulations on that. Sure. My, my question for you is more kind of zooming out at the market. Mm-hmm <affirmative>, from your perspective in financial services at HPE, what has the pandemic proven to you guys? How has it changed? How you guys work and how has it changed the customer environment? Cuz you mentioned assets. I think real estate. Oh no. One's going back to work. Yeah, no one's been in the office. How has the market changed with hybrids as a steady state now coming outta the pandemic? What are customers doing with the assets? What are some of the trends that you're seeing in the customer base? >>Yeah. So, so look, I'll give you my personal perspective of what I think about as a business leader. And when I talk to customers, I think we're all thinking about the same thing. So I start with experience, what experience do I wanna create for my customers and very closely linked to that, my colleagues, right? So it, the, the people working in our organization, what experience am I creating for them? So they can in turn, create that experience for partners and customers externally. So experience is one thing. The second is innovation, right? We spend a lot of time thinking about what's next? Where do we want to go? What's the innovation and more and more that innovation is all digital, right? So digital transformation is huge within my organization. And it's huge within all of our customers. Dave, I think the last time we talked, I was in my living room on a little laptop screen and zoom and, and I think I use the analogy E every business is now a digital business, even my pizza shop in jerseys. >>Yeah. Right. I mean, everything was online curbside pickup. So what I'm finding is the, the trends in terms of how to leverage technology is how do you create that customer experience? And then how does digital now blend as we're coming out of the pandemic? And, and you're, you know, now able to go into restaurants and stores, how do you blend digital with that in person experience and maybe leverage the best of both. Right. And, and how do you do that in a seamless way to really give customers choice and give them that smooth, seamless experience. So that, that's what I see happening. And you know, what we are trying to do with our asset management plays with the financial modeling we do is how do we get more of that spend going to innovation versus maintenance. And, and that's a big key because, you know, you have to be fast. So I talk about innovation. I talk about customer experience, speed to market. I mean, you know, and the bar keeps getting higher, right? It's like, as soon as you think you're fast, you're slow. We, because you have to keep, it all keeps rolling. >>We heard yesterday on the cube from, uh, one of the HP point, next executives said, you gotta perform and transform >>At the >>Same time at the same time. And you gotta know where the people are gonna land. Absolutely. And how the assets are gonna be distributed. >>And to your point, Brad, you know, from our virtual interview, you're so right. I mean, every business has to be a digital business. And you know, my, my personal story, John, you know, my brother Richie was the executive chef at legal seafood. Right. Pandemic. So then that was a, a place you wanted to go to that restaurant, famous restaurant in Boston when they reopened, they weren't ready. Right. They didn't have the digital story together. They ended up having to, we were just at Smith and Linsky, they ended up selling to Smith and Wilensky's oh, and you, you drive around, you see a lot of these retail businesses is shut down. Yeah. Right. And so, okay. So we're, they weren't able to get through that, you know, cross that chasm in digital transformation. Yeah. A lot of businesses were able to and make it a tailwind. >>Yeah. And, and look, the other thing I think all businesses are focused on right now, uh, with the labor market is talent. And, and so when you think about all of these things tying together, you want to drive, uh, you know, innovation. You want to drive your digital transformation. You wanna make that environmentally sustainable. And, and I think all of that, if you start putting all that together, those are the companies that are gonna attract the talent in the marketplace. And, and really there there's a battle for talent and >>You wanna make it profitable. Uh, Brad bureau. Thanks so much for you. Great to see you face to face. >>Yeah. Likewise. Thanks. Thanks. >>All right. Keep it right there, John. And I will be back. We're wrapping up day three of HPE, discover 2022. You're watching the cube.

>>The cube presents HPE discover 2022 brought to you by HPE. >>Welcome back to the Venetian convention center. You're watching the Cube's coverage of HPE discover 2022. The first discover live discover in three years, 2019 was the last one. The cube we were just talking about. This has been at H HP discover. Now HPE since 2011, my co-host John furrier. We're pleased to welcome Phil Maru. Who's the executive vice president and general manager of HPE Aruba. And he's joined by David Hughes, the chief product and technology officer at HPE Aruba gentleman. Welcome to the cube. Good to see you. Thank you. Thank >>You. >>Okay, so you guys talk a lot, Phil, about the intelligent edge. Yep. Okay. What do you, what do you mean by that? >>Yeah, so we, well, we're kind of focused on, is providing technology to customers that sits out at the edge and typically the edge would be, uh, any location out of the data center or out of the cloud. So for the most part, our customers would deploy our technology either in their office premises or maybe retail premises shops, uh, maybe deploying out of the home where their employees are on a factory floor. And we're really talking about technology to connect both people and devices back to, um, systems and technology throughout an organization. So, but >>I, I, you know, sometimes I call it the near edge and the far edge yeah. Near, near edge. Maybe as we saw home Depot up on the stage yesterday far, Edge's like space. Right. You're including all of that. Right. That's >>Edge. >>Yeah. And actually we, we, we, you know, we've got a broad range of technology that actually works within the data center as well. So, you know, what we are focused on is providing, uh, network technology, software and services. And, you know, for the most part, our heritage is at the edge, but it's more pervasive than that. So >>If you have the edge, you got connectivity and power, that's an edge. How much, um, is the physical world being connected now you're seeing robotics automation. Yeah. Ex and with machine learning specifically in compute, really driving a new acceleration at the edge. What you, how do you guys view that? What's your reaction? Yeah. >>I think, look, it, I think as connectivity is improving and that's both in terms of wifi connectivity, so, you know, wifi technology continues to, uh, advance and also you've got this new kind of private 5g area, just generally connectivity is becoming more pervasive and that's helping some industries that haven't previously embraced it. And I think industrial is, is one of the big ones. So, you know, historically it was difficult for kind of car manufacturers to really enable a factory floor. But now the connectivity is connectivity is better. That gives them the opportunity to be able to really change how they do things. So >>David, if you do take an outside in view, mm-hmm <affirmative>, uh, and, and, and when you talk to customers, what are they telling you and how is that informing your product strategy? >>Yeah, well, you >>Know, I think there's, there's several themes we hear. One is, you know, it's really important, better work from anywhere they wanna enable their employees, um, to get the same experience, whether they're at home or on the road or in their branch office or at headquarters. Um, you know, people are also concerned that as they deploy, deploy all of this IOT and pursuit of digital transformation, they don't want those devices to be a weak point where someone breaks into one device and moves naturally, um, across the network. So they want to have this great experience for their customers and their users, but they wanna make sure that they're not compromising security, um, in any way. And so it's about getting that balance between ease of use and, and security. That's one of the primary things we hear, >>You know, Dave, one of the things we talked about many, many years ago was when hybrid and was starting to come out multi-cloud was on the, on the table early on. Uh, we were, we were saying, Hey, the data center is just a big edge, right? I mean, if you have cloud operations and you see what's going on with GreenLake here now, the momentum hybrid cloud is cloud operations, right? An edge off data centers to a big edge on premises. And you got the edge as you have cloud operations, like say GreenLake, plugging in partners and diverse environments. You're connecting, not just branch offices that are per perimeter based. You have no perimeter and you have now other companies connecting mm-hmm <affirmative> so you got data and you got network. How do you guys see that transition as GreenLake has a very big ecosystem part of it, partners and whatnot. >>Yeah. So, you know, I think for us, um, the ecosystem of partners that we have is critical in terms of delivering what our customers need. And, you know, I think one of the really important areas is around verticals. So, um, you know, when you think about different verticals, they have similar problems, but you need to tailor the solutions. Um, to each of those, you know, we are talking a bit about devices and people. When you look at say a healthcare environment, there can be 30 devices there for each patient. And, um, so there's connecting all those devices securely, but we have partners that will help pull all of that together that may be focused on, um, you know, medical environment that may focused on stadiums. They may be focused on industrial. Um, so having partners that understand those verticals and working closely with them to deliver solutions is important in our go to market. >>So another kind of product question and related to what you just said, David, I got connectivity, speed, reliability, cost security, or maybe a missing something. But you, you said earlier, you gonna gotta balance those. How do you do that? And do you do that for the specific use cases? Like for instance, you just mentioned stadiums and 81 and how do you balance those and, and do you tailor those for the use cases? >>Yeah, well, I think it depends on the customer and different people have different views about where they need to be. So some people are, are so afraid about security. They wanna be air gapped and completely separate than the internet. That would be one extreme mm-hmm <affirmative> other people, you know, look at it and see what's happening with COVID with everyone working from home with people being able to work from Starbucks or the airport. And they're beginning to think, well, why is the branch that much different? And so what I think we are seeing is, you know, a reevaluation of how people connect to, um, the apps they're using and, uh, you know, you, you, you've probably for sure heard people talking about zero trust, talking about micro segmentation. You know, I think what we we see is that people wanna be able to build a network in a way where rather than any device being able to talk to any device or any person, which is where the internet started, we wanna build to build networks where people or devices can only talk to the destinations that are necessary for them to do their job. >>And so a lot of the technology that we are building into the network is really about making security intrinsic by limiting what can talk to what that's >>Actually micro, micro segmentations, zero trust, um, these all point to a modern, the modern network, as you say, Antonio Neri was just on the cube, talking about programmability, substrate, the words like that come to mind, what is the modern network look like? I mean, you have to be agile. You have to be programmable. You have to have security. Can you describe in your words, what does the modern network these days need to look like? How should customers think about architecting them? What are some of the table stakes and what are some of the differentiators that customers need to do to have a modern network? >>Yeah, well, you covered off a coup a few quarter, one there with clarity and so on. So let me pick one that you didn't mention. And, and I, you know, I think we are seeing, you know, a lot of interest around network as a service. And, you know, when we think about network as a service, we think about it broadly, um, you know, for consumers, we're getting more and more used to buying things as a service versus buying a thing. When you, when you get Alexa, you care about how well she answers your questions, you don't care about what CPU is or how much Ram Alexa has. And likewise with networking, people are caring about the outcomes of keeping their employees connected, keeping their, their devices and systems running. And so what for us, what NASA is all about is that shift of thinking about a network as being a collection of devices that get managed to being a framework for connectivity and running it from the point of view of those outcomes. >>And so whether, you know, it's about CapEx versus OPEX or about do it yourself, managing the network yourself versus outsourcing that, um, or it's about the, you know, Greenfield versus brownfield, each of our customers has got a different starting point, but they're all getting heading towards this destination of being able to treat their network as a service. And so that is, you know, a key area of innovation for us and whether it's big customers like home Depot that you heard about yesterday, um, where we kind of manage everything for them on a, as on a store basis, um, for connectivity, um, or, you know, the recent, um, skew based nest that we launched, which is a really scalable foundation for our partners to build nest offerings around. Um, we see this as a key part of network modernization. Yeah. >>And one of the things, again, that's great stuff. Uh, infrastructure is code, which was really kind of pioneer the DevOps movement in cloud kind of as platform level. And you got data ops now and AI at the top of the stack, we were always wondering when network as code was gonna come, uh, and where you actually have it, where it's programmable. I mean, we all know what policies do do. They're good. That's all great network as code. >>Yeah. >>And that's the concept that's like DevOps, it's like, make it work just seamlessly, just be always on. And >>Yeah. And smart, you know, people are always looking for the, for the easy button. Um, and so they want, they want things to operate easily. They want it to be easy to manage. And, you know, I actually think there's a little bit of a, um, a conflict between networkers code and the easy button, right? So it depends on the class of customers. Some customers like financials, for instance, have a huge software development organizations that are extremely capable that could, that can go with program ability that want things as code. But the majority of the, of, of the verticals that we deal with, um, don't have those big captive software organizations. And so they're really looking for automation and simplicity and they wanna outsource that problem. So in Aruba central, we have invested a lot to make it really easy for our customers to, um, get what they need, you know, is that movement of zero code. It's more like zero code. They want, they want something packaged now >>The headless networks. Yeah. Low code, no code >>Kind of thing. Yeah, that's right. And, you know, obviously for people that have the sophistication that want to, um, do the most advanced things, we have APIs. And so we support that kind of programmable way of doing things. But I'd say that that's that's, those are more specialized customers. So >>Phil, yeah. Uh, is that the strategy? I mean, David listed off a number of, of factors here is that Aruba's strategy to modernize networks to actually create the easy button through network as a service is as simple as dial tone. Is that how we >>Should think? I mean, the way I think about the strategy is I think about it as a triangle, really, along the bottom, we've got the products and services that we offer and we continue to add more products and services. We either buy companies such as silver peak a couple of years ago, or we build, uh, additional products and by, and by the way, that's in response to customers who are frustrated with some other suppliers and wanna move on mass over to, uh, companies like ourselves. So at the bottom layer of the product and services, and then the other side of the triangle one would be NAS, which we talked about, which is kind of move to buying network and as a service. And then the other side of the triangle is the platform, which for us is river central, which is part of HP GreenLake. And that's really all about, you know, kind of making it easy for customers to manage networks and Aruba central right now has got about 120,000 live customers on it. It connects to about 2 million devices and it's collecting a lot of data as well. So we anonymously collect data from all of our customers. We've got one and a half billion data points in the platform. And what we do is we let that data kind of look for anomalies and spot problems on the network before they happen for customers. >>So Aruba central predated, uh, uh, GreenLake GreenLake. Yeah. And, and so did you write to GreenLake through GreenLake APIs? How, what was the engineering work to accomplish that? >>Yeah, so really, um, Aruba central is kind of the Genesis of the GreenLake platform. So we took Aruba central and made it more generic okay. To build the GreenLake cloud platform. And you know, what we've done very recently is bring, bring Aruba into that unified infrastructure, along with storage and compute. So the same sign-on applies across all of HP's, um, products, the same way of managing licenses, managing devices. And so it provides us, uh, great foundation going forwards to, um, solve more comprehensively. Our customers automation requires. >>So, so just a quick follow. So Aruba actually was the main spring of GreenLake from the standpoint of okay. Sing, like you said, single sign on a platform that could evolve and become more, more generic. Yes. So, okay. So that was a nice little, um, bonus of the acquisition, you know, it's now the whole company >><laugh> Aruba taking over. >>Yeah. There's been a lot of work to, to, uh, you know, make it generic and, and widely applicable. Right. Yeah. Um, so, but >>You were purpose >>Built for yeah. Well it's foundational. Yes. So foundational for GreenLake, they built on top of it. Yeah. So you mentioned the data points, billions of data points. So I gotta ask you, cuz we're seeing this, um, copy more and more with machine learning, driving a lot of acceleration, cuz you can do simulations with machine learning and compute. We had Neil McDonal done earlier. He's a compute guy, you got networking. So with all this, um, these services and devices being put on and off the network humans, can't actually figure this out. You can discover what's on the network. How are you guys viewing the discovery and monitoring because there's no perimeter okay. On the network anymore. So I want to know what's out there. Um, how do you get through it? How does machine learning and AI play into this? >>Yeah. I mean, what we are trying to do is obviously flag trends for customers and say, Hey look, you know, we can either see something happening with your network. So there's a particular issue over here and we need to, I dunno, free up more capacity to solve that. Or we're looking at how their network is running and then comparing that with anonymized data from all of our other customers as well. So we're just helping find those problems. But yeah, you're right. I mean, I think it is becoming more of an issue for organizations, you know, how do you manage the network, >>But you see machine learning and AI playing a big part. >>Yeah, yeah. Yeah. I think, uh, AI massively and, and other technology advances as well that we make. So recently we, uh, also announced the availability of location awareness within our access points. And that might sound like a simple thing. But when network, when companies build out their networks, they often lose or they potentially could lose the records as to, well, where were the access points that we laid out and actually where are they not within, you know, 20 feet, but where actually are they? So we introduced kind of location, finding technology as well into our, uh, access points to make it easy for >>Customers. So Aruba one of the best, if not the best acquisition. I think that HP E has made, um, it's made by three par was, you know, good. It saved the storage business. Okay. That was more of a defensive play. Uh, but to see Aruba, it's a growth business. You guys report on it every quarter. Yeah. It's obviously a key ingredient to enable uh, uh, GreenLake and, and a that's another example, nimble was similar. We're much smaller sort of more narrow, but taking the AI ops piece and bringing it over. So it's, it was great to see HPE executing on some of its M and a as opposed to just leaving them alone and not really leveraging 'em. So guys, yeah. Congratulations really appreciate you guys coming on and explaining that. Congratulations on all the, all the great work and thanks for coming on the cube. Okay. >>Thank you guys. Yeah. Thanks for having us. >>All right, John, and I'll be back right after this short break. You're watching the cube, the leader in enterprise tech coverage from HPE Las Vegas, 2022. We'll be right back.

>>The cube presents HPE discover 2022 brought to you by HPE. >>Hey everyone. Welcome back to the Cube's day one coverage of HPE discover 22 live from the Venetian in Las Vegas. I got a power panel here, Lisa Martin, with Dave Valante, John furrier, Holger Mueller also joins us. We are gonna wrap this, like you've never seen a rap before guys. Lot of momentum today, lot, lot of excitement, about 8,000 or so customers, partners, HPE leaders here. Holger. Let's go ahead and start with you. What are some of the things that you heard felt saw observed today on day one? >>Yeah, it's great to be back in person. Right? 8,000 people events are rare. Uh, I'm not sure. Have you been to more than 8,000? <laugh> yeah, yeah. Okay. This year, this year. I mean, historically, yes, but, um, >>Snowflake was 10. Yeah. >>So, oh, wow. Okay. So 8,000 was my, >>Cisco was, they said 15, >>But is my, my 8,000, my record, I let us down with 7,000 kind of like, but it's in the Florida swarm. It's not nicely. Like, and there's >>Usually what SFI, there's usually >>20, 20, 30, 40, 50. I remember 50 in the nineties. Right. That was a different time. But yeah. Interesting. Yeah. Interesting what people do and it depends how much time there is to come. Right. And know that it happens. Right. But yeah, no, I think it's interesting. We, we had a good two analyst track today. Um, interesting. Like HPE is kind of like back not being your grandfather's HPE to a certain point. One of the key stats. I know Dave always for the stats, right. Is what I found really interesting that over two third of GreenLake revenue is software and services. Now a love to know how much of that services, how much of that software. But I mean, I, I, I, provocate some, one to ones, the HP executives saying, Hey, you're a hardware company. Right. And they didn't even come back. Right. But Antonio said, no, two thirds is, uh, software and services. Right. That's interesting. They passed the one exabyte, uh, being managed, uh, as a, as a hallmark. Right. I was surprised only 120,000 users if I had to remember the number. Right, right. So that doesn't seem a terrible high amount of number of users. Right. So, but that's, that's, that's promising. >>So what software is in there, cuz it's gotta be mostly services. >>Right? Well it's the 70 plus cloud services, right. That everybody's talking about where the added eight of them shockingly back up and recovery, I thought that was done at launch. Right. >>Still who >>Keep recycling storage and you back. But now it's real. Yeah. >>But the company who knows the enterprise, right. HPE, what I've been doing before with no backup and recovery GreenLake. So that was kind of like, okay, we really want to do this now and nearly, and then say like, oh, by the way, we've been doing this all the time. Yeah. >>Oh, what's your take on the installed base of HP. We had that conversation, the, uh, kickoff or on who's their target, what's the target audience environment look like. It certainly is changing. Right? If it's software and services, GreenLake is resonating. Yeah. Um, ecosystems responding. What's their customers cuz managed services are up too Kubernetes, all the managed services what's what's it like what's their it transformation base look like >>Much of it is of course install base, right? The trusted 20, 30 plus year old HP customer. Who's keeping doing stuff of HP. Right. And call it GreenLake. They've been for so many name changes. It doesn't really matter. And it's kind of like nice that you get the consume pain only what you consume. Right. I get the cloud broad to me then the general markets, of course, people who still need to run stuff on premises. Right. And there's three reasons of doing this performance, right. Because we know the speed of light is relative. If you're in the Southern hemisphere and even your email servers in Northern hemisphere, it takes a moment for your email to arrive. It's a very different user experience. Um, local legislation for data, residency privacy. And then, I mean Charles Phillips who we all know, right. Former president of uh, info nicely always said, Hey, if the CIOs over 50, I don't have to sell qu. Right. So there is not invented. I'm not gonna do cloud here. And now I've kind of like clouded with something like HP GreenLake. That's the customers. And then of course procurement is a big friend, right? Yeah. Because when you do hardware refresh, right. You have to have two or three competitors who are the two or three competitors left. Right. There's Dell. Yeah. And then maybe Lenovo. Right? So, so like a >>Little bit channels, the strength, the procurement physicians of strength, of course install base question. Do you think they have a Microsoft opportunity where, what 365 was Microsoft had office before 365, but they brought in the cloud and then everything changed. Does HP have that same opportunity with kind of the GreenLake, you know, model with their existing stuff. >>It has a GreenLake opportunity, but there's not much software left. It's a very different situation like Microsoft. Right? So, uh, which green, which HP could bring along to say, now run it with us better in the cloud because they've been selling much of it. Most of it, of their software portfolio, which they bought as an HP in the past. Right. So I don't see that happening so much, but GreenLake as a platform itself course interesting because enterprise need a modern container based platform. >>I want, I want to double click on this a little bit because the way I see it is HP is going to its installed base. I think you guys are right on say, this is how we're doing business now. Yeah. You know, come on along. But my sense is, some customers don't want to do the consumption model. There are actually some customers that say, Hey, of course I got, I don't have a cash port problem. I wanna pay for it up front and leave me alone. >>I've been doing this since 50 years. Nice. As I changed it, now <laugh> two know >>Money's wants to do it. And I don't wanna rent because rental's more expensive and blah, blah, blah. So do you see that in the customer base that, that some are pushing back? >>Of course, look, I have a German accent, right? So I go there regularly and uh, the Germans are like worried about doing anything in the cloud. And if you go to a board in Germany and say, Hey, we can pay our usual hardware, refresh, CapEx as usual, or should we bug consumption? And they might know what we are running. <laugh> so not whole, no offense against the Germans out. The German parts are there, but many of them will say, Hey, so this is change with COVID. Right. Which is super interesting. Right? So the, the traditional boards non-technical have been hearing about this cloud variable cost OPEX to CapEx and all of a sudden there's so much CapEx, right. Office buildings, which are not being used truck fleets. So there's a whole new sensitivity by traditional non-technical boards towards CapEx, which now the light bulb went on and say, oh, that's the cloud thing about also. So we have to find a way to get our cost structure, to ramp up and ramp down as our business might be ramping up through COVID through now inflation fears, recession, fears, and so on. >>So, okay. HP's, HP's made the statement that anything you can do in the cloud you can do in GreenLake. Yes. And I've said you can't run on snowflake. You can't run Mongo Atlas, you can't run data bricks, but that's okay. That's fine. Let's be, I think they're talking about, there's >>A short list of things. I think they're talking about the, their >>Stuff, their, >>The operating experience. So we've got single sign on through a URL, right. Uh, you've got, you know, some level of consistency in terms of policy. It's unclear exactly what that is. You've got storage backup. Dr. What, some other services, seven other services. If you had to sort of take your best guess as to where HP is now and peg it toward where Amazon was in which year? >>20 14, 20 14. >>Yeah. Where they had their first conference or the second we invent here with 3000 people and they were thinking, Hey, we're big. Yeah. >>Yeah. And I think GreenLake is the building blocks. So they quite that's the >>Building. Right? I mean similar. >>Okay. Well, I mean they had E C, Q and S3 and SQS, right. That was the core. And then the rest of those services were, I mean, base stock was one of that first came in behind and >>In fairness, the industry has advanced since then, Kubernetes is further along. And so HPE can take advantage of that. But in terms of just the basic platform, I, I would agree. I think it's >>Well, I mean, I think, I mean the software, question's a big one. I wanna bring up because the question is, is that software is getting the world. Hardware is really software scales, everything, data, the edge story. I love their story. I think HP story is wonderful Aruba, you know, hybrid cloud, good story, edge edge. But if you look under the covers, it's weak, right? It's like, it's not software. They don't have enough software juice, but the ecosystem opportunity to me is where you plug and play. So HP knows that game. But if you look historically over the past 25 years, HP now HPE, they understand plug and play interoperability. So the question is, can they thread the needle >>Right. >>Between filling the gaps on the software? Yeah. With partners, >>Can they get the partners? Right. And which have been long, long time. Right. For a long time, HP has been the number one platform under ICP, right? Same thing. You get certified for running this. Right. I know from my own history, uh, I joined Oracle last century and the big thing was, let's get your eBusiness suite certified on HP. Right? Like as if somebody would buy H Oracle work for them, right. This 20 years ago, server >>The original exit data was HP. Oracle. >>Exactly. Exactly. So there's this thinking that's there. But I think the key thing is we know that all modern forget about the hardware form in the platforms, right? All modern software has to move to containers and snowflake runs in containers. You mentioned that, right? Yeah. If customers force snowflake and HPE to the table, right, there will be a way to make it work. Right. And which will help HPE to be the partner open part will bring the software. >>I, I think it's, I think that's an opportunity because that changes the game and agility and speed. If HP plays their differentiation, right. Which we asked on their opening segment, what's their differentiation. They got size scale channel, >>What to the enterprise. And then the big benefit is this workload portability thing. Right? You understand what is run in the public cloud? I need to run it local. For whatever reason, performance, local residency of data. I can move that. There that's the big benefit to the ISVs, the sales vendors as well. >>But they have to have a stronger data platform story in my that's right. Opinion. I mean, you can run Oracle and HPE, but there's no reason they shouldn't be able to do a deal with, with snowflake. I mean, we saw it with Dell. Yep. We saw it with, with, with pure and I, if our HPE I'd be saying, Hey, because the way the snowflake deal worked, you probably know this is your reading data into the cloud. The compute actually occurs in the cloud viral HB going snowflake saying we can separate compute and storage. Right. And we have GreenLake. We have on demand. Why don't we run the compute on-prem and make it a full class, first class citizen, right. For all of our customers data. And that would be really innovative. And I think Mongo would be another, they've got OnPrem. >>And the question is, how many, how many snowflake customers are telling snowflake? Can I run you on premise? And how much defo open years will they hear from that? Right? This is >>Why would they deal Dell? That >>Deal though, with that, they did a deal. >>I think they did that deal because the customer came to them and said, you don't exactly that deal. We're gonna spend the >>Snowflake >>Customers think crazy things happen, right? Even, even put an Oracle database in a Microsoft Azure data center, right. Would off who, what as >>Possible snowflake, >>Oracle. So on, Aw, the >>Snow, the snowflakes in the world have to make a decision. Dave on, is it all snowflake all the time? Because what the reality is, and I think, again, this comes back down to the, the track that HP could go up or down is gonna be about software. Open source is now the software industry. There's no such thing as proprietary software, in my opinion, relatively speaking, cloud scale and integrated, integrated integration software is proprietary. The workflows are proprietary. So if they can get that right with the partners, I would focus on that. I think they can tap open source, look at Amazon with open source. They sucked it up and they integrated it in. No, no. So integration is the deal, not >>Software first, but Snowflake's made the call. You were there, Lisa. They basically saying it's we have, you have to be in snowflake in order to get the governance and the scalability, all that other wonderful stuff. Oh, but we we'll do Apache iceberg. We'll we'll open it up. We'll do Python. Yeah. >>But you can't do it data clean room unless you are in snowflake. Exactly. Snowflake on snowflake. >>Exactly. >>But got it. Isn't that? What you heard from AWS all the time till they came out outposts, right? I mean, snowflake is a market leader for what they're doing. Right. So that they want to change their platform. I mean, kudos to them. They don't need to change the platform. They will be the last to change their platform to a ne to anything on premises. Right. But I think the trend already shows that it's going that way. >>Well, if you look at outpost is an signal, Dave, the success of outpost launched what four years ago, they announced it. >>What >>EKS is beating, what outpost is doing. Outpost is there. There's not a lot of buzz and talk to the insiders and the open source community, uh, EKS and containers. To your point mm-hmm <affirmative> is moving faster on, I won't say commodity hardware, but like could be white box or HP, Dell, whatever it's gonna be that scale differentiation and the edge story is, is a good one. And I think with what we're seeing in the market now it's the industrial edge. The back office was gen one cloud back office data center. Now it's hybrid. The focus will be industrial edge machine learning and AI, and they have it here. And there's some, some early conversations with, uh, I heard it from, uh, this morning, you guys interviewed, uh, uh, John Schultz, right? With the world economic 4k birth Butterfield. She was amazing. And then you had Justin bring up a Hoar, bring up quantum. Yes. That is a differentiator. >>HP. >>Yes. Yeah. You, they have the computing shops. They had the R and D can they bring it to the table >>As, as HPC, right. To what they Schultz for of uh, the frontier system. Right. So very impressed. >>So the ecosystem is the key for them is because that's how they're gonna fill the gaps. They can't, they can't only, >>They could, they could high HPC edge piece. I wouldn't count 'em out of that game yet. If you co-locate a box, I'll use the word box, particularly at a telco tower. That's a data center. Yep. Right. If done properly. Yep. So, you know, what outpost was supposed to do actually is a hybrid opportunity. Aruba >>Gives them a unique, >>But the key thing is right. It's a yin and yang, right? It's the ecosystem it's partners to bring those software workload. Absolutely. Right. But HPE has to keep the platform attractive enough. Right. And the key thing there is that you have this workload capability thing that you can bring things, which you've built yourself. I mean, look at the telcos right. Network function, visualization, thousands of man, years into these projects. Right. So if I can't bring it to your edge box, no, I'm not trying to get to your Xbox. Right. >>Hold I gotta ask you since in the Dave too, since you guys both here and Lisa, you know, I said on the opening, they have serious customers and those customers have serious problems, cyber security, ransomware. So yeah. I teach transformation now. Industrial transformation machine learning, check, check, check. Oh, sounds good. But at the end of the day, their customers have some serious problems. Right? Cyber, this is, this is high stakes poker. Yeah. What do you think HP's position for in the security? You mentioned containers, you got all this stuff, you got open source, supply chain, you have to left supply chain issues. What is their position with security? Cuz that's the big one. >>I, I think they have to have a mature attitude that customers expect from HPE. Right? I don't have to educate HP on security. So they have to have the partner offerings again. We're back at the ecosystem to have what probably you have. So bring your own security apart from what they have to have out of the box to do business with them. This is why the shocker this morning was back up in recovery coming. <laugh> it's kind like important for that. Right? Well >>That's, that's, that's more ransomware and the >>More skeleton skeletons in the closet there, which customers should check of course. But I think the expectations HP understands that and brings it along either from partner or natively. >>I, I think it's, I think it's services. I think point next is the point of integration for their security. That's why two thirds is software and services. A lot of that is services, right? You know, you need security, we'll help you get there. We people trust HP >>Here, but we have nothing against point next or any professional service. They're all hardworking. But if I will have to rely on humans for my cyber security strategy on a daily level, I'm getting gray hair and I little gray hair >>Red. Okay. I that's, >>But >>I think, but I do think that's the camera strategy. I mean, I'm sure there's a lot of that stuff that's beginning to be designed in, but I, my guess is a lot of it is services. >>Well, you got the Aruba. Part of the booth was packed. Aruba's there. You mentioned that earlier. Is that good enough? Because the word zero trust is kicked around a lot. On one hand, on the other hand, other conversations, it's all about trust. So supply chain and software is trusting trust, trust and verified. So you got this whole mentality of perimeter gone mentality. It's zero trust. And if you've got software trust, interesting thoughts there, how do you reconcile zero trust? And then I need trust. What's what's you? What are you seeing older on that? Because I ask people all the time, they're like, uh, I'm zero trust or is it trust? >>Yeah. The middle ground. Right? Trusted. The meantime people are man manipulating what's happening in your runtime containers. Right? So, uh, drift control is a new password there that you check what's in your runtime containers, which supposedly impenetrable, but people finding ways to hack them. So we'll see this cat and mouse game going on all the time. Yeah. Yeah. There's always gonna be the need for being in a secure, good environment from that perspective. Absolutely. But the key is edge has to be more than Aruba, right? If yeah. HV goes away and says, oh yeah, we can manage your edge with our Aruba devices. That's not enough. It's the virtual probability. And you said the important thing before it's about the data, right? Because the dirty secret of containers is yeah, I move the code, but what enterprise code works without data, right? You can't say as enterprise, okay, we're done for the day check tomorrow. We didn't persist your data, auditor customer. We don't have your data anymore. So filling a way to transport the data. And there just one last thought, right? They have a super interesting asset. They want break lands for the venerable map R right. Which wrote their own storage drivers and gives you the chance to potentially do something in that area, which I'm personally excited about. But we'll see what happens. >>I mean, I think the holy grail is can I, can I put my data into a cloud who's ever, you know, call it a super cloud and can I, is it secure? Is it governed? Can I share it and be confident that it's discoverable and that the, the person I give it to has the right to use it. Yeah. And, and it's the correct data. There's not like a zillion copies running. That's the holy grail. And I, I think the answer today is no, you can, you can do that maybe inside of AWS or maybe inside of Azure, look maybe certainly inside of snowflake, can you do that inside a GreenLake? Well, you probably can inside a GreenLake, but then when you put it into the cloud, is it cross cloud? Is it really out to the edge? And that's where it starts to break down, but that's where the work is to be done. That's >>The one Exide is in there already. Right. So men being men. Yeah. >>But okay. But it it's in there. Yeah. Okay. What do you do with it? Can you share that data? What can you actually automate governance? Right? Uh, is that data discoverable? Are there multiple copies of that data? What's the, you know, master copy. Here's >>A question. You guys, here's a question for you guys analyst, what do you think the psychology is of the CIO or CSO when HP comes into town with GreenLake, uh, and they say, what's your relationship with the hyperscalers? Cause I'm a CIO. I got my environment. I might be CapEx centric or Hey, I'm open model. Open-minded to an operating model. Every one of these enterprises has a cloud relationship. Yeah. Yeah. What's the dynamic. What do you think the psychology is of the CIO when they're rationalizing their, their trajectory, their architecture, cloud, native scale integration with HPE GreenLake or >>HP service. I think she or he hears defensiveness from HPE. I think she hears HPE or he hears HPE coming in and saying, you don't need to go to the cloud. You know, you could keep it right here. I, I don't think that's the right posture. I think it should be. We are your cloud. And we can manage whether it's OnPrem hybrid in AWS, Azure, Google, across those clouds. And we have an edge story that should be the vision that they put forth. That's the super cloud vision, but I don't hear it >>From these guys. What do you think psycho, do you agree with that? >>I'm totally to make, sorry to be boring, but I totally agree with, uh, Dave on that. Right? So the, the, the multi-cloud capability from a trusted large company has worked for anybody up and down the stack. Right? You can look historically for, uh, past layers with cloud Foundry, right? It's history vulnerable. You can look for DevOps of Hashi coop. You can look for database with MongoDB right now. So if HPE provides that data access, right, with all the problems of data gravity and egres cost and the workability, they will be doing really, really well, but we need to hear it more, right. We didn't hear much software today in the keynote. Right. >>Do they have a competitive offering vis-a-vis or Azure? >>The question is, will it be an HPE offering or will, or the software platform, one of the offerings and you as customer can plug and play, right. Will software be a differentiator for HP, right. And will be close, proprietary to the point to again, be open enough for it, or will they get that R and D format that, or will they just say, okay, ES MES here on the side, your choice, and you can use OpenShift or whatever, we don't matter. That's >>The, that's the key question. That's the key question. Is it because it is a competitive strategy? Is it highly differentiated? Oracle is a highly differentiated strategy, right? Is Dell highly differentiated? Eh, Dell differentiates based on its breadth. What? >>Right. Well, let's try for the control plane too. Dell wants to be an, >>Their, their vision is differentiated. Okay. But their execution today is not >>High. All right. Let me throw, let me throw this out at you then. I'm I'm, I'm sorry. I'm I'm HPE. I wanna be the glue layer. Is that, does that fly? >>What >>Do you mean? The group glue layer? I'll I wanna be, you can do Amazon, but I wanna be the glue layer between the clouds and our GreenLake will. >>What's the, what's the incremental value that, that glue provides, >>Provides comfort and reliability and control for the single pane of glass for AWS >>And comes back to the data. In my opinion. Yeah. >>There, there there's glue levels on the data level. Yeah. And there's glue levels on API level. Right. And there's different vendors in the different spaces. Right. Um, I think HPE will want to play on the data side. We heard lots of data stuff. We >>Hear that, >>But we have to see it. Exactly. >>Yeah. But it's, it's lacking today. And so, Hey, you know, you guys know better than I APIs can be fragile and they can be, there's a lot of diversity in terms of the quality of APIs and the documentation, how they work, how mature they are, what, how, what kind of performance they can provide and recoverability. And so just saying, oh wow. We are living the API economy. You know, the it's gonna take time to brew, chime in here. Hi. >><laugh> oh, so guys, you've all been covering HPE for a long time. You know, when Antonio stood up on stage three years ago and said by 2022, and here we are, we're gonna be delivering everything as a service. He's saying we've, we've done it, but, and we're a new company. Do you guys agree with that? >>Definitely. >>I, yes. Yes. With the caveat, I think, yes. The COVID pandemic slowed them down a lot because, um, that gave a tailwind to the hyperscalers, um, because of the, the force of massive O under forecasting working at home. I mean, everyone I talked to was like, no one forecasted a hundred percent work at home, the, um, the CapEx investments. So I think that was an opportunity that they'd be much farther along if there's no COVID people >>Thought it wasn't impossible. Yeah. But so we had the old work from home thing right. Where people trying to get people fired at IBM and Yahoo. Right. So I would've this question covering the HR side and my other hat on. Right. And I would ask CHS let's assume, because I didn't know about COVID shame on me. Right. I said, big California, earthquake breaks. Right. Nobody gets hurt, but all the buildings have to be retrofitted and checked for seism logic down. So everybody's working from home, ask CHS, what kind of productivity gap hit would you get by forcing everybody working from home with the office unsafe? So one, one gentleman, I won't know him, his name, he said 20% and the other one's going ha you're smoking. It's 40 50%. We need to be in the office. We need to meet it first night. And now we went for this exercise. Luckily not with the California. Right. Well, through the price of COVID and we've seen what it can do to, to productivity well, >>The productivity, but also the impact. So like with all the, um, stories we've done over two years, the people that want came out ahead were the ones that had good cloud action. They were already in the cloud. So I, I think they're definitely in different company in the sense of they, I give 'em a pass. I think they're definitely a new company and I'm not gonna judge 'em on. I think they're doing great. But I think pandemic definitely slowed 'em down that about >>It. So I have a different take on this. I think. So we've go back a little history. I mean, you' said this, I steal your line. Meg Whitman took one for the Silicon valley team. Right. She came in. I don't think she ever was excited that I, that you said, you said that, and I think you wrote >>Up, get tape on that one. She >>Had to figure out how do I deal with this mess? I have EDS. I got PC. >>She never should have spun off the PC, but >>Okay. But >>Me, >>Yeah, you can, you certainly could listen. Maybe, maybe Gerstner never should have gone all in on services and IBM would dominate something other than mainframes. They had think pads even for a while, but, but, but so she had that mess to deal with. She dealt with it and however, they dealt with it, Antonio came in, he, he, and he said, all right, we're gonna focus the company. And we're gonna focus the mission on not the machine. Remember those yeah. Presentations, but you just make your eyes glaze over. We're going all in on Azure service >>And edge. He was all on. >>We're gonna build our own cloud. We acquired Aruba. He made some acquisitions in HPC to help differentiate. Yep. And they are definitely a much more focused company now. And unfortunately I wish Antonio would CEO in 2015, cuz that's really when this should have started. >>Yeah. And then, and if you remember back then, Dave, we were interviewing Docker with DevOps teams. They had composability, they were on hybrid really early. I think they might have even coined the term hybrid before VMware tri-state credit for it. But they were first on hybrid. They had DevOps, they had infrastructure risk code. >>HPE had an HP had an awesome cloud team. Yeah. But, and then, and then they tried to go public cloud. Yeah. You know, and then, you know, just made them, I mean, it was just a mess. The focus >>Is there. I give them huge props. And I think, I think the GreenLake to me is exciting here because it's much better than it was two years ago. When, when we talked to, when we started, it's >>Starting to get real. >>It's, it's a real thing. And I think the, the tell will be partners. If they make that right, can pull their different >>Ecosystem, >>Their scale and their customers and fill the software gas with partners mm-hmm <affirmative> and then create that integration opportunity. It's gonna be a home run if they don't do that, they're gonna miss the operating, >>But they have to have their own to your point. They have to have their own software innovation. >>They have to good infrastructure ways to build applications. I don't wanna build with somebody else. I don't wanna take a Microsoft stack on open source stack. I'm not sure if it's gonna work with HP. So they have to have an app dev answer. I absolutely agree with that. And the, the big thing for the partners is, which is a good thing, right? Yep. HPE will not move into applications. Right? You don't have to have the fear of where Microsoft is with their vocal large. Right. If AWS kind of like comes up with APIs and manufacturing, right. Google the same thing with their vertical push. Right. So HPE will not have the CapEx, but >>Application, >>As I SV making them, the partner, the bonus of being able to on premise is an attractive >>Part. That's a great point. >>Hold. So that's an inflection point for next 12 months to watch what we see absolutely running on GreenLake. >>Yeah. And I think one of the things that came out of the, the last couple events this past year, and I'll bring this up, we'll table it and we'll watch it. And it's early in this, I think this is like even, not even the first inning, the machine learning AI impact to the industrial piece. I think we're gonna see a, a brand new era of accelerated digital transformation on the industrial physical world, back office, cloud data center, accounting, all the stuff. That's applications, the app, the real world from space to like robotics. I think that HP edge opportunity is gonna be visible and different. >>So guys, Antonio Neri is on tomorrow. This is only day one. If you can imagine this power panel on day one, can you imagine tomorrow? What is your last question for each of you? What is your, what, what question would you want to ask him tomorrow? Hold start with you. >>How is HPE winning in the long run? Because we know their on premise market will shrink, right? And they can out execute Dell. They can out execute Lenovo. They can out Cisco and get a bigger share of the shrinking market. But that's the long term strategy, right? So why should I buy HPE stock now and have a good return put in the, in the safe and forget about it and have a great return 20 years from now? What's the really long term strategy might be unfair because they, they ran in survival mode to a certain point out of the mass post equipment situation. But what is really the long term strategy? Is it more on the hardware side? Is it gonna go on the HPE, the frontier side? It's gonna be a DNA question, which I would ask Antonio. >>John, >>I would ask him what relative to the macro conditions relative to their customer base, I'd say, cuz the customers are the scoreboard. Can they create a value proposition with their, I use the Microsoft 365 example how they kind of went to the cloud. So my question would be Antonio, what is your core value proposition to CIOs out there who want to transform and take a step function, increase for value with HPE? Tell me that story. I wanna hear. And I don't want to hear, oh, we got a portfolio and no, what value are you enabling your customers to do? >>What and what should that value be? >>I think it's gonna be what we were kind of riffing on, which is you have to provide either what their product market fit needs are, which is, are you solving a problem? Is it a pain point is a growth driver. Uh, and what's the, what's that tailwind. And it's obviously we know at cloud we know edge. The story is great, but what's the value proposition. But by going with HPE, you get X, Y, and Z. If they can explain that clearly with real, so qualitative and quantitative data it's home >>Run. He had a great line of the analyst summit today where somebody asking questions, I'm just listening to the customer. So be ready for this Steve jobs photo, listening to the customer. You can't build something great listening to the customer. You'll be good for the next quarter. The next exponential >>Say, what are the customers saying? <laugh> >>So I would make an observation. And my question would, so my observation would be cloud is growing collectively at 35%. It's, you know, it's approaching 200 billion with a big, big four. If you include Alibaba, IBM has actually said, Hey, we're gonna gr they've promised 6% growth. Uh, Cisco I think is at eight or 9% growth. Dow's growing in double digits. Antonio and HPE have promised three to 4% growth. So what do you have to do to actually accelerate growth? Because three to 4%, my view, not enough to answer Holger's question is why should I buy HPE stock? Well, >>If they have product, if they have customer and there's demand and traction to me, that's going to drive the growth numbers. And I think the weak side of the forecast means that they don't have that fit yet. >>Yeah. So what has to happen for them to get above five, 6% growth? >>That's what we're gonna analyze. I mean, I, I mean, I don't have an answer for that. I wish I had a better answer. I'd tell them <laugh> but I feel, it feels, it feels like, you know, HP has an opportunity to say here's the new HPE. Yeah. Okay. And this is what we stand for. And here's the one thing that we're going to do that consistently drives value for you, the customer. And that's gonna have to come into some, either architectural cloud shift or a data thing, or we are your store for blank. >>All of the above. >>I guess the other question is, would, would you know, he won't answer a rude question, would suspending things like dividends and stock buybacks and putting it into R and D. I would definitely, if you have confidence in the market and you know what to do, why wouldn't you just accelerate R and D and put the money there? IBM, since 2007, IBM spent is the last stat. And I'm looking go in 2007, IBM way, outspent, Google, and Amazon and R and D and, and CapEx two, by the way. Yep. Subsequent to that, they've spent, I believe it's the numbers close to 200 billion on stock buyback and dividends. They could have owned cloud. And so look at this business, the technology business by and large is driven by innovation. Yeah. And so how do you innovate if >>You have I'm buying, I'm buying HP because they're reliable high quality and they have the outcomes that I want. Oh, >>Buy their products and services. I'm not sure I'd buy the stock. Yeah. >>Yeah. But she has to answer ultimately, because a public company. Right. So >>Right. It's this job. Yeah. >>Never a dull moment with the three of you around <laugh> guys. Thank you so much for sharing your insights, your, an analysis from day one. I can't imagine what day two is gonna bring tomorrow. Debut and I are gonna be anchoring here. We've got a jam packed day, lots going on, hearing from the ecosystem from leadership. As we mentioned, Antonio is gonna be Tony >>Alma Russo. I'm dying. Dr. >>EDMA as well as on the CTO gonna be another action pack day. I'm excited for it, guys. Thanks so much for sharing your insights and for letting me join this power panel. >>Great. Great to be here. >>Power panel plus me. All right. For Holger, John and Dave, I'm Lisa, you're watching the cube our day one coverage of HPE discover wraps right now. Don't go anywhere, cuz we'll see you tomorrow for day two, live from Vegas, have a good night.

>> From the theCUBE Studios in Palo Alto in Boston, bringing you data-driven insights from theCUBE and ETR, this is Breaking Analysis with Dave Vellante. >> Well, it looks like hybrid cloud is finally here. We've seen a decade of posturing, marchitecture, slideware and narrow examples of hybrid cloud, but there's little question that the definition of cloud is expanding to include on-premises workloads in hybrid models. Now depending on which numbers you choose to represent IT spending, public cloud only accounts for actually less than 5% of the total pie. So the big question is, how will this now evolve? Customers want control, they want governance, they want security, flexibility and a feature-rich set of services to build their digital businesses. It's unlikely that they can buy all that, so they're going to have to build it with partners, specifically vendors, SI's, consultancies and their own developers. The tug of war to win the new cloud day has finally started in earnest between the hyperscalers and the largest enterprise tech companies in the world. Hello and welcome to this week's Wikibon CUBE insights, powered by ETR. In this Breaking Analysis, we'll walk you through how we see the battle for hybrid cloud, how we got here, where we are and where it's headed. First, I want to go back to 2009, in a blog post by a man named Chuck Hollis. Chuck Hollis, at the time, was a CTO and marketing guru inside of EMC who, remember, owned VMware. Chuck was kind of this hybrid, multi-tool player, pun intended. EMC at the time had a big stake, a lot at stake, as the ascendancy of AWS was threatening the historical models, which had defined enterprise IT. Now around that time, NIST published its first draft of a cloud computing definition which, as I recall, included language, something to the effect of accessing remote services over the public network, i.e., public IP networks. Now, NIST has essentially or since evolved that definition, but the original draft was very favorable to the public cloud. And the vendor community, the traditional vendor community, said hang on, we're in this game too. So that was 2009 when Chuck Hollis published this slide. He termed it Private Cloud, a term which he saw buried inside of a Gartner research post or research note that was not really fleshed out and defined. The idea was pretty compelling. The definition of cloud centered on control, where you, as the customer, had on-prem workloads that could span public and on-prem clouds, if you will, with federated security and a data plan that spanned the states. Essentially, you had an internal and an external cloud with a single point of control. This is basically what the hybrid cloud vision has become. An abstraction layer that spans on-prem and public clouds and we can extend that across clouds and out to the edge, where a customer has a single point of control and federated governance and security. Now we know this is still aspirational, but we're now seeing vendor offerings that put forth this promise and a roadmap to get there from different points of view, that we're going to talk about today. The NIST definition now reads cloud computing is a model for enabling ubiquitous, convenient on-demand network access to a shared pool of configurable computing resources, e.g., network server storage, applications and services, that can be rapidly provisioned and released with minimal management effort or service provider interaction. So there you have it, that is inclusive of on-prem, but it took the industry a decade plus to actually get where we are today. And they did so by essentially going to school with the public cloud offerings. Now in 2018, AWS announced Outposts and that was another wake up call to the on-prem community. Externally, they pointed to the validation that hybrid cloud was real. Hey, AWS is doing it so clearly they've capitulated, but most on-prem vendors at the time didn't have a coherent offering for hybrid, but the point is the on-prem vendors responded as they saw AWS moving past the demilitarized zone into enemy lines. And here's what the competitive landscape of hybrid offerings looks like today. All three US-based hyperscalers have an offering or multiple offerings in various forms, Outposts from Amazon and other services that they offer, Google Anthos and Azure Arc, they're all so prominent, but the real action today is coming from the on-prem vendors. Every major company has an offering. Now most of these stemmed from services-led and finance-led initiatives, but they're evolving to true Azure Service models. HPE GreenLake is prominent and the company's CEO, Antonio Neri, is putting the whole company behind Azure Service. HPE claims to be the first, it uses that in its marketing, with such an Azure Service offering, but actually Oracle was their first with Cloud@Customer. You know, possibly Microsoft could make a claim to being early as well, but it really doesn't matter. Let's see, Dell has responded with Apex and is going hard after this opportunity. Cisco has Cisco Plus and Lenovo has TruScale. IBM also has a long services and finance-led history and has announced pockets of Azure Service in areas like storage. And Pure Storage is an example that we chose of a segment player, of course within storage, that has a strong Azure Service offering, and there are others like that. So the landscape is getting very busy. And so, let's break this down a bit. AWS is bringing its programmable infrastructure model and its own hardware to what it calls the edge. And it looks at on-prem data centers as just another edge node. So that's how they're de-positioning the on-prem crowd, but the fact is, when you really look at what Outposts can do today, it's limited, but AWS will move quickly so expect a continued rapid evolution of their model and the services that are supported on Outposts. Azure gets its hardware from partners and has relationships with virtually everyone that matters. Anthos is, as well, a software layer and Google created Kubernetes as the great equalizer in cloud. And it was a nice open source gift to the industry and has obviously taken off. So the cloud guys have the advantage of owning a cloud. The pure on-prem players, they don't, but the on-prem crowd has rich stacks, much richer and more mature in a lot of areas, as it relates to supporting on-premises workloads and much more so than the cloud players, but they don't have mature cloud stacks. They're kind of just getting started with things like subscription billing and API-based microservices offerings. They got to figure out Salesforce compensation and just the overall Azure service mentality versus the historical product box mentality, and that takes time. And they're each coming at this from their respective different points of view and points of strength. HPE is doing a very good job of marketing and go-to market. It probably has the cleanest model, enabled by the company's split from HP, but it has some gaps that it's needed to fill and it's doing so through acquisitions. Ezmeral, for example, is it's new data play. It just bought Zerto to facilitate backup as a service. And it's expanded partnerships to fill gaps in the portfolio. Some partnerships, which they couldn't do before because it created conflicts inside of HPE or HP. Dell is all about the portfolio, the breadth of the portfolio, the go-to-market prowess and its supply chain advantage. It's very serious about Azure Service with Apex and it's driving hard to win that day. Cisco comes at this from a huge portfolio and of course, a point of strength and networking, which maybe is a bit tougher to offer as a service, but Cisco has a large and fast growing subscription business in collaborations, security and other areas, so it's cloud-like in that regard. And Oracle, of course, has the huge advantage of an extremely rich functional stack and it owns a cloud, which has dramatically improved in the past few years, but Oracle is narrow to the red stack, at least today. Oracle, if it wanted to, we think, could dominate the database cloud, it could be the database cloud, especially if it decided to open its cloud to competitive database offerings and run them in the Oracle cloud. Hmm. Wonder if Oracle will ever move in that direction. Now a big part of this shift is the appeal of OPEX versus CAPEX. Let's take a look at some ETR data that digs a bit deeper into this topic. This data is from an August ETR drill down, asking CIOs and IT buyers how their budgets are split between OPEX and CAPEX. The mid point of the yellow line shows where we are today, 57% OPEX, expecting to grow to 63% one year from now. That's not a huge difference, there's not a huge difference when you drill into global 2000, which kind of surprised me. I thought global 2000 would be heavier CAPEX, but they seem to be accelerating the shift to OPEX slightly faster than the overall base, but not really in a meaningful way. So I didn't really discern big differences there. Now, when you dig further into industries and look at subscription versus consumption models for OPEX, you see about 60/40 favoring subscription models, with most industry slowly moving toward consumption or usage based models over time. There are a couple of outliers, but generally speaking, that's the trend. What's perhaps more interesting is when you drill into subscription versus usage based models by product area, and that's what this chart shows. It shows by tech segment, the percent subscription, that's the blue, versus consumption or usage based, that's the gray bars, yellow being indifferent or maybe it's I don't know. What stands out are two areas that are more usage heavy, consumption heavy. That's database, data warehousing, and IS. So database is surely weighted by companies like Snowflake and offerings like Redshift and other cloud databases from Azure and Google and other managed services, but the IS piece, while not surprising, is, we think, relevant because most of the legacy vendor Azure Service offerings are borrowing from a SaaS-oriented subscription model with a hardware twist. In other words, as a customer, you're committing to a term and a minimum spend over the life of that term. You're locked in for a year or three years, whatever it is, to account for the hardware and headroom the vendor has to install because they want to allow you to increase your usage. So that's the usage based model. See, you're then paying by the drink for that consumption above that minimum threshold. So it's a hybrid subscription consumption model, which is actually quite interesting. And we've been saying, what would really be cool is if one of the on-prem penguins on the iceberg would actually jump in and offer a true consumption model right out of the box, as a disruptive move to the industry and to the cloud players, and take that risk. And I think that might happen once they feel comfortable with the financial model and they have nailed the product market fit, but right now, the model is what it is. And even AWS without post requires a threshold and a minimum commitment. So we'd love to see someone take that chance and offer true cloud consumption pricing to facilitate more experimentation and lower risk for the customer entry points. Now let's take a look at some of these players and see what kind of spending momentum they have. This is our popular XY chart-view that plots net score or spending velocity on the x-axis and market share or pervasiveness in the data set on the... Oh, sorry, net score or spending momentum on the y-axis and pervasiveness or market share on the x-axis. Now this is cut by cloud computing vendors, as defined by the customers responding. There were nearly 1500 respondents in the ETR survey, so a couple of points here. Note the red line is the elevated line. In other words, anything above that is considered really robust momentum. And no surprise, Azure, AWS and Google are above that line. Azure and AWS always battle it out for top share of voice in the x-axis in this survey. Now this, remember, is the July survey, but ETR, they gave me a sneak peek at the October results that they're going to be releasing in the coming week and Dell cloud and VMware cloud, which is VCF and maybe some other components, not VMware cloud and AWS, that's a separate beast, but those two are moving up in the y-axis. So they're demonstrating spending momentum. IBM is moving down and Oracle is at a respectable 20% on the y-axis. Now, interestingly, HPE and Lenovo don't show up in the cloud taxonomy, in that cloud cut, and neither does Cisco. I believe I'm correct in that this is an open-ended question, i.e., who are your cloud suppliers? So the customers are not resonating with that messaging yet, but I'm going to double check on that. Now to widen the aperture a bit, we said let's do a cut of the on-prem and cloud players within cloud accounts, so we can include HPE and Cisco and see how they're doing inside of cloud accounts. So that's what this chart does. It's a filter on 975 customers who identify themselves as cloud accounts. So here we were able to add in Cisco and HPE. Now, Lenovo still doesn't show up on the data. It shows up in laptops and desktops, but not as prominent in the enterprise, not prominent at all, but HPE Ezmeral did show up and it's moving forward in the October survey, again, part of the sneak peek. Ezmeral is HPE's data platform that they've introduced, combining the assets of MapR, BlueData and some other organic development. Now, as you can see, HPE and Cisco, they show up on the chart, as I said, and you can see the rope in the tug of war is starting to get a little bit more taut. The cloud guys have momentum and big account presence, but the on-prem folks also have big footprints, rich stacks and many have strong services arms, and a lot of customer affinity. So let's wrap with some comments about how this will shake out and what's some of the markers we can watch. Now, the first thing I'll say is we're starting to hear the right language come out of the vendor community. The idea that they're investing in a layer to abstract the underlying complexity of the clouds and on-prem infrastructure and turning the world into, essentially, a programmable interface to resources. The question is, what about giving access through that layer to underlying primitives in the public cloud? VMware has been very clear on this. They will facilitate that access. I believe Red Hat as well. So watch to the degree in which the large on-prem players are enabling that access for developers. We believe this is the right direction overall, but it's also very hard and it's going to require lots of resources and R & D. I would say at this point that each company has its respective strengths and weaknesses. I see HPE mostly focused today on making its on-prem offerings work like a cloud, whereas some of the others, VMware, Dell and Cisco, are stressing to a greater degree, in my view, enabling multi-cloud and edge connections, cross connections. Not that HPE isn't open to that when you ask them about it, but its marketing is more on-prem leaning, in my opinion. Now all of the traditional vendors, in my view, are still defensive about the cloud, although I would say much less so each day. Increasingly, they look at the public cloud as an opportunity to build value on top of that abstraction layer, if you will. As I said earlier, these on-prem guys, they all have ways to go. They're in the early stages of figuring out what a cloud operating model looks like, how it works, what services to offer, how to pay sellers and partners, but the public cloud vendors, they're miles ahead in that regard, but at the same time, they're navigating into on-prem territory. And they're very immature, in most cases. So how do they service all this stuff? How do they establish partnerships and so forth? And how do they build stacks on prem that are as rich as they are in the cloud? And what's their motivation to do that? Are they getting pulled, digging their heels in? Or are they really serious about it? Now, in some respects, Oracle is in the best position here in terms of hybrid maturity, but again, it's narrowly focused on the Red Stack. I would say the same for Pure Storage, more mature as a service, but narrowly focused, of course, on storage. Let's talk marketplace and ecosystems. One of the hallmarks of public clouds is optionality of tooling. Just all you do is go to the AWS Marketplace and you'll see what I mean. It's got this endless bevy of choices. It's got one of everything in there and you can buy directly from your AWS Console. So watch how the hybrid cloud plays out in terms of partner inclusion and ease of doing business, that's another sign of maturity. Let's talk developers and edge. This is by far the most important and biggest hole in the hybrid portfolios, outside the public cloud players. If you're going to build infrastructure as code, who do you expect to code it? How are the on-prem players cultivating developer communities? IBM paid 34 billion to buy its way in. Actually, in today's valuation terms, you might say that's looking like a good play, but still, that cash outlay is equal to one third of IBM's revenue. So big, big bet on OpenShift, but IBM's infrastructure strategy is fragmented and its cloud business, as IBM reports in its financial statements, is a services-heavy, kitchen sink set of offerings. It's very confusing. So they got to still do some clean up there, but they're serious about the architectural battle for hybrid cloud, as Arvind Krishna calls it. Now VMware, by cobbling together the misfit developer toys of the remnants from the EMC Federation, including Pivotal, is trying to get there. You know, but when you talk to customers, they're still not all in on VMware's developer affinity. Now Cisco has DevNet, but that's basically CCIE's and other trained networking engineers learning to code in languages like Python. It's not necessarily true devs, although they're upskilling. It's a start and they're investing, Cisco, that is, investing in the community, leveraging their champions, and I would say Dell could do the same with, for example, the numerous EMC storage admins that are out there. Now Oracle bought Sun to get Java, and that's a large community of developers, but even so, when you compare AWS and Microsoft ecosystems to the others, it's not even close in terms of developer affinity. So lots of work to be done there. One other point is Pure's acquisition of Portworx, again, while narrowly focused, is a good move and instructive of the changes going on in infrastructure. Now how does this all relate to the edge? Well, I'm not going to talk much about that today, but suffice to say, developers, in our view, will win the edge. And right now, they're coding in the cloud. Now they're often coding in the cloud and moving work on prem, wrapping them in containers, but watch how sticky that model is for the respective players. The other thing to watch is cadence of offerings. Another hallmark of cloud is a rapid expansion of features. The public cloud players don't appear to be slowing down and the on-prem folks seem to be accelerating. I've been watching HPE and GreenLake and their cadence of offerings, and watch how quickly the newbies of Azure Service can add functionality, I have no doubt Dell is going to be right there as well, as is Cisco and others. Also pay attention to financial metrics, watch how Azure Service impacts the income statements and how the companies deal with that because as you shift to deferred revenue models, it's going to hurt profitability. And I'm not worried about that at all because it won't hurt cashflow, or at least it shouldn't. As long as the companies communicate to Wall Street and they're transparent, i.e., they don't shift reporting definitions every year and a half or two years, but watch for metrics around retention and churn, RPO or Remaining Performance Obligations, billing versus bookings, increased average contract values, cohort selling, the impact on both gross margin and operating margin. These are the things you watch with SaaS companies and essentially, these big hardware players are becoming Azure Service slash SaaS companies. These are going to be the key indicators of success and the proof in the pudding of the transition to Azure Service. It should be positive for these companies, assuming they get the product market fit right, and can create a flywheel effect with their respective ecosystems and partner channels. Now I'm sure you can think of other important factors to watch, but I'm going to leave it here for now. Remember these episodes, they're all available as podcasts, wherever you listen. All you got to do is search Breaking Analysis podcast and please subscribe, check out ETR's website at etr.plus. We also publish a full report every week on wikibon.com and siliconangle.com. You can get in touch with me, email david.vellante@siliconangle.com or you can DM me @dvellante. You can comment on our LinkedIn posts. This is Dave Vellante for theCUBE Insights powered by ETR. Have a great week, everybody, stay safe, be well. And we'll see you next time. (soft music)

>>mhm >>mm >>Hello and welcome back to HPD discovered 2021. My name is Dave Volonte and we're going to dig into H P E. Green Lake, we've heard a lot about this, we want to find out how real it is and test a little bit of how how can help solve your business problems. We also want to understand Green Lake relative to the competition. HPV was the first, as you probably know to declare it all in with an as a service model and virtually every major infrastructure player has now followed suit. So we want to hear from HP directly how it's different from the competition, where it's innovating and that means we're gonna poke a little bit of customer examples and how the partner ecosystem is adopting and responding to Green Lake and with me is the right person to do this is keith White, who is the senior Vice President General Manager of the Green Lake cloud services business unit at HP, keith, great to see you, thanks for coming back to the cube. >>Okay, fantastic to see you as always. So thanks so much for having me. >>Yeah, it's our pleasure. So look, we're hearing a lot leading up to discover and at this event about Green Lake you got momentum now, everybody's excited about it. What's driving demand? Where's the excitement coming from? >>No, it's a great question. And you know, the reality is customers are expecting this cloud experience, right? So they they've been using the public cloud, they've been engaging on that front and this cloud experience is really driven, a pretty high amount of customer expectations, make itself served, make it automated, make it easy to consume, only want to pay for what I'm using and then manage it all for me on the back end. But 60 to 70% of apps and data will stay on prem per Gardner and I D. C. And so give me that experience on prem. And so that's why I think Green Lake has gotten so much interest, so much positive growth and momentum is because we're bringing that cloud experience to our customers in their data center, in their Coehlo or at the edge and that's where they want to see it just as much. And so since the world is now hybrid, we have a fantastic solution for folks. >>So you, you were first in this game and so you took some arrows and I'm interested in how Green Lake has evolved, Take us through the journey maybe what were some of the bumps in the road that you had to overcome? Maybe how it compares with the competition. Maybe some of the things that they're going to have to go through as well to get to the point where you are. >>No, it's true. And you know, the great thing is HP as a company is really moving to be much more of a cloud services and software company. And you know, we're seeing this from our competition, as you mentioned, have followed suit. But in essence, you know, you have to move from just sort of providing lease type financing type scenarios for our customers into truly delivering that cloud experience. And that's what's been so exciting over this last year is we've gone from just the basic cloud services, compute storage, networking and VMS to really providing containers as a service, bare metal as a service. Uh, machine learning ops, S. A P V. D I. You know, we've now created a set of workloads and as you heard it discover we're now delivering industry solutions, so electronic medical records for hospitals or high delivery payment transaction processing for, for financial, so that the challenge of moving from just sort of leasing basic capabilities to a true cloud experience that again pay as I go, fully automated self serve, all managed for me has really been a challenge and it's exciting, it's exciting to see customers jump on and really sort of lean in and see the business value that comes from having that level of solution >>keith, am I correct in that pretty much every large tech company has a services arm and they could, they could sort of brute force, some kind of cloud like experience and that's kind of what people have done historically the layer in a financial like leasing financial as you said and and but every situation was unique, it was kind of a snowflake if you will and you guys are probably there a few years ago as well and so I'm interested in sort of how you evolved beyond that. Was it a mindset was a technology, was it sort of cultural? You know, it came from the top as well, but maybe you could describe that a little bit. >>Yeah, the ship comes from our customers because what's happening is customers no longer trying to buy component parts. They're saying it's really about Tesla's like, hey, I want you to deliver this for me. In essence, we're running the data center for them now. We're running their machine learning operations environment for them. Now, you know, we're migrating their mainframe over now. And so what's happening is these sls are really, what matters to customers like that? It's not so much about, hey, what are the speeds and feeds and this and that? And so yes, you can sort of brute force that piece of it. But what you really are having to do is create this deep partnership and relationship with your customer to truly understand their business challenges and then provide them with that capability. Now I think the things that's exciting is yes, the public cloud gives you some some significant benefits for certain workloads and certain capabilities. But what we're hearing from customers is hey, I want to have much more control over my data center. I want to ensure that it has the security required. I want to make sure that I can make the adjustments necessary and so you're doing all that at a lower cost with open platform that I can use a variety of tools and other applications just makes it that much more powerful. So I think that's what we're seeing is we're getting into what our customers really requiring and then you know the most interesting thing is how do you make it work with my entire environment because I am running Azure and I am running A W. S. And I am running google and I'm running some other things. And so how does this cloud really helped me bring all those together to really govern that hybrid estate? And that's where I think Green Lake has really shine. >>So it kind of part of the secret sauce is automation because you've got to be, you still have, you have to be competitive, you know, at least within reason to cloud cost, sometimes it's going to be less expensive, maybe sometimes it can be more expensive. You've got some advantages in certain cases where, you know, there's government governance things and and you know, we don't have to go through all that, but there's the automation but you've got to be profitable at this too. So there's the automation, there's the tooling, there's the openness. So, so that was really a key part of it. Is it not that sort of automating? >>That's right. Automation is key as is really understanding what that customer environment is and optimizing for that piece of it. And so as you heard, we're really excited to announce our Green Lake Lighthouse, which is really providing workload optimized systems that are fully managed for them that provide that capability to run multiple workloads for that customer. But at the same time, to your point, there's a lot of charges that happened on the public cloud side. So, you know, data is the new, you know, gold if you will right, everyone's trying to monetize their data, trying to use it to make decisions and really understand what's happening across their environment and in the cloud. You know, if you put it up in the cloud, you have to pay to get it out. The egress charges can be significant and it's also a bit slower at times because of the latency that happens across that that that connection. And so we are now in a situation where we're seeing a lot of customers that are really trying to analyze their data, leveraging our HPC systems, leveraging our machine learning operation systems in order to really get that data happening, Getting the dancers out much, much faster and a much lower cost than what it would cost them to do that in the cloud. >>So you have some experience at this now. I wonder if we could dig into the customers how customers are using Green Lake. Maybe you can give some examples of success. >>Yeah. Yeah, no. You know it's exciting because you know first off everyone's looking at their digital transformation and that means something different for every single customer, so really understanding what they're trying to do from a transformation standpoint and then saying, okay, well how can we bring a solution to help accelerate that? To help be uh, you know, more connected to your customers to help improve your product delivery. We went to Lyondellbasell for example, one of the largest manufacturers in the world. And you know, they said, hey look, we don't want to run our data center anymore. Most most customers are trying to get out of the data center management business and they're saying, hey, run this for me, uh let me free up resources to go focus on things that really can drive additional value for our customers instead of keeping the lights on patching, blah blah blah. So we have taken their entire environment and moved it to a Coehlo and we're managing it now for them. And so in essence we freed up not just a ton of resources, but they have also been able to drop their carbon footprint, which is also this whole sustainability push is significant as well. And then you look at a customer like care stream, one of the largest medical diagnostic companies in the world, saying hey we gotta be able to allow our doctors to be able to um analyze and diagnose things much much faster through our X ray systems and through our diagnostic machines. And so they have implemented our machine learning operations scenario to dramatically speed up those types of capabilities. So as you go down the list and you start to see these customers really um leveraging technology to meet that digital transformation, saving costs, moving their business forward, creating new business models. It's just, it's really exciting. >>What about partners keith? How how have they responded? I mean, on the one hand, you know, that's great opportunities for them, you know, they're they're transforming their own business model. On the other hand, you know, maybe they were comfortable with the old model, they got a big house, nice, nice boat, you >>know? >>But how are they changing their their their business and how are they leaning in >>similar to what we're seeing? The opportunity for partners is dramatic, right? Because what happens is you have to have a very different relationship with your customer to truly understand their digital transformation. Their business challenges the problems that they're having to address. And so where we're seeing partners really, really sort of the opportunity is where there's the services and that sort of deeper relationship piece of it. So in essence, it's creating much more opportunity because the white spaces dramatic we're seeing, I want to say it's in the 30 to $40 billion worth of market opportunity as we move into an as a service on prem world. So they're seeing that opportunity. They're seeing the ability to add services on top of that and deepen the relationship with our customers. And you know, it's it's from my SVS. We're working closely with S. A. P. For example, to deliver their new rise private cloud customer edition. We're working closely with loosest, for example, who is doing a lot of payment processing type scenarios Nutanix and their database as a service scenario and Splunk because again, we went back to the data piece and these guys are doing so much big data type implementations for risk analytics and and regulatory type scenarios. It's just significant. And so because there's such a push to keep things on prem to have the security to reduce the latency to get rid of the egress charges and everything else. There's just a significant white space for both our partners and then from our distributors and resellers, they're getting to change their business model again, to get much deeper in that relationship with our customers >>to be Green Lake is, I mean it's H. P. E. As a service, it's your platform. And so I wonder if you can think about how you're thinking about uh, share with us, How you think about platform innovation? Um, you've got the pricing model, you know, flex up, flex down. Is there other technology we should know about and other things that are going to move you forward in this battle for the next great hybrid cloud and edge platform? >>Yeah, it's a great push because if you think about it, we are Green Lake is the edge to cloud platform And in essence because we have such a strong edge capability with the arab acquisition we made a few years back. That's really significant momentum with the Silver Peak acquisition to give us SD when you've got that edge connectivity all the way up to our high performance computing. And so you'll see us deliver high performance computing as a service. We're announcing that here at discover um you'll see us announced, you know, machine learning ops I mentioned ASAP, but also a virtual desktops. I think the pandemic has brought a lot more work from home type scenarios and customers really want to have that secure desktop. And so, working with partners like Citrix and Nutanix and and VM ware and Crew were able to provide that again, unique scenario for our customers. And so, um, yeah, the innovation is going to keep coming. You know, I mentioned bare metal as a service because many people are starting to really leverage the metal that's out there. You're seeing us also engaged with folks like intel on our silicon on demand. So this is a really exciting technology because what it allows us to do is turn on cores when we need them. So hey, I need additional capacity. I need some power. Let's turn on some cores. But then I turn off those cores when I'm not using them. You go to a software core based software pricing model, like an oracle or a sequel server. I'm saving dramatic cost now because I don't have to pay for all the cores that are on the system. I'm only paying the licenses for the ones that I use. And so that should bring dramatic cost savings to our customers as well. So we're looking from the silicon all the way up. Uh you know, you hear us talk about project Aurora, which is our security capability. We're looking at the silicon level, but we're also looking at the the container and bare metal and then obviously the workloads in the industry solution. So we're sprinting forward. We're listening to our customers were taking their feedback. We're seeing what they're prioritizing and because we have that tight relationship with them as we help move them to the direction they want to go, it's giving us a ton of fantastic inside information for what really matters. >>Right, Thank you for that. So, I want to ask you about data. A lot of organizations are kind of rethinking their ideal data architecture, their organization. They're they're they're seeing the amount of data that is potentially going to be created at the edge, thinking about ai inference and influencing at the edge and maybe reimagining their data organization in this age of insight. I wonder how Green Lake fits into that. How are you thinking about the new era of data and specifically Green Lakes role? >>Yeah, you mentioned the age of insights and and it really is right. So we've moved sort of as the next phase of digital transformation is basically saying, hey look, I've got all this data. I've got to first get my arms around my data estate because in essence it's in all these different pockets around. And so Green Lake gives you that ability to really get that data estate established. Then I want to take and get the answers in the analytics out of it. And then I want to monetize that data either out to my customer set or out to my industry or out to other scenarios as well. And so as we start to deliver our develops capability, our ai and analytics capabilities through HPC. And it's an open platform. So it allows data scientists to easy boot up easily boot up a cluster with which to do their models and their training and their algorithms. But we can also then use and Estancia at that into the business decisions that our customers are trying to make again without the significant cost that they're seeing on that on the public cloud side and in a very secure way because they have the data exactly where they need it. You'll see us continue to do sort of disaster recovery and data protection and those types of scenarios both with our partners and from H P E. So it's exciting to just understand that now you're going to have the tools and resources so you can actually focus on those business outcomes versus how do I protect the data? Where do I start, how do I get my model set up, etcetera. All that becomes automated and self service. You mentioned earlier >>When you talk to customers Keith one of the big sort of challenges that you're addressing. What's the typical, there was no typical but the but the real nuts that they're trying to crack is it financial? We want to move from Capex to opec's is that hey we want this cloud model but we can't do it in the public cloud for a variety of reasons, edicts, organization leaders or we want to modernize our our state. What are the real sort of sticking points that you're addressing with Green Lake? >>Yeah, I think it's threefold and you sort of touched on those. So one is, it really does start with modernization. Hey, you know, we've got to take costs out of the equation. We've got to reduce our carbon footprint. We've got to automate these things because we have limited resources and how do we maximize the ones that we have? And so I mentioned earlier, getting out of the data center, modernizing our apps, really monetizing our data. So I think that's number one. Number two is what you said as well, which is, hey look, I don't need to have all these capital assets. I don't want to be in charge of managing all all these assets. I just want the capability and so being able to sell them that service that says, hey, we can, we can do X number of desktops for your V. D. I. We can run your S. A. P. Environment or we can make sure that you have the, the analytics structure set up to be able to run your models that becomes super compelling and it frees up a lot of resources in cash on that front as well. And then I think the third thing is what you said, which is the world is hybrid. And so I need to find out what's going to run best in my on prem environment and what's going to run best up in the cloud. And I want to be able to optimize that so that I'm not wasting costs in one place or the other, and I want to be able to govern and govern that holistically. So I have the ability to see what's happening end to end across that so I can manage my business most effectively. So I think those are the three big things that people are really excited about with Green Lake as they enable those things. Um and you know, the reality is that it also means that they have a new partner to help them really think through how can they move forward? So it's not them by themselves. Uh It's really in a one plus one equals three type scenario and then you bring the ecosystem in and now you've got, you know, things working really well. So, >>so big enterprise tech, it's like, it's like the NFL is a sort of a copycat league. And so what, you know what I'm saying? But you guys all got >>big, yeah, >>you've got great resources, hey, this West Coast office exactly is gonna work. We're gonna get a short passing game going. And so that happened. So I feel like, okay, you've raised the bar now on as a service and that's gonna become table stakes. Um you know, it's got a lot of work to get there. I know, and it's a it's a journey, but but when you think about the future uh for H. P. E. Uh what's exciting you the most? >>I think what's exciting me the most is this the reaction that we're seeing with customers because in essence it gets them out of the bits and bytes and speeds and feeds and you know, um >>you >>know, component goo and really gets into business value, business outcomes sls and, and that's what they're looking for because what they're trying to do is break out of, you know that day to day and be able to really focus on the future and where they're going. So I think that's one, I think the second big thing is as you see all these things come together, um you know, we're able to basically provide customers with, I would say a mindset that's like, hey, I can do this holistically, but I can always pick and choose the best that I want and if I ramp up, I have capacity. If I ramp down, I don't have to pay for first scenarios. And so I'm getting the best of both worlds across that piece of it. And then third is I mentioned it earlier. But this whole relationship thing is so important because you know, this isn't about technology anymore. As much as it it is about what's the value that you're going to get out of that technology. And how does that help us move the company and the world forward? Like I love the fact that H. P. E. Was so involved in this pandemic. >>You know, >>with our systems were able to actually uh to run a set of of algorithms and analysis on how to, you know, find a vaccine on how to how to address the things that are going forward. You've seen us now up in space and as we, we broaden our frontier and so as a company you're seeing technology turned into things that are truly helping the world go forward. I think that's exciting as well. >>Yeah. Space. It's like the ultimate edge. >>I >>like you said to me if I take it, it's not not about ports and Mick, nips and gigabytes anymore. It's about the outcome. You mentioned before the S L. A. Um, you know, the thing about, you know, think about virtual, it's great. We have to get in the plane. Its downside. We all know we can't hang out, you know, afterwards, you know, have a drink or you know, chit chat about what's going on in the world, but we can't reach a lot more people. But the other downside of virtual is, you know, you don't have the hallway track. It's not like, hey, did you check out that, that demo on IOT? It's really cool. Where is that? So give us the hallway track. How can folks learn more about discover where would you direct folks? >>You bet. You know, I'm doing a full spot. Obviously let me start with at the top right Antonio Neri our ceo he's going to lay out the whole strategy and then I'll have a spotlight. It's about a 30 minute deep dive on all of these things that that you and I just talked about and then we've got a bunch of breakout sessions were doing some with our partners like Nutanix and others, um, Microsoft as well as we talk about, we didn't really touch on that, but you know, we have a strong partnership with the hyper scholars with Microsoft and with others because in essence customers are expecting an integrated solution that's hybrid. And so, you know, we're showcasing all of that with the with the discover breakouts as well and they're available on demand. We have a huge opportunity with respect to that, so really excited and you know, frankly we're here to help, like I hope people understand this is our opportunity to help you be successful and so please know that our ears are wide open to hear what the challenges are and we're ready to help customers as they needed. >>I'm glad you mentioned the partnership with Microsoft and other hyper skills. I feel like keith, the the Hyper scale is giving us a gift. They've spent last year they spent over $100 billion on Capex build out. That is like, it's like the internet. Thank you. >>Now we're gonna build on >>top of it, we're gonna build an abstraction layer that hides all that underlying complexity. We're gonna connect things and and that's really your job. That's really kind of what you're bringing to the table I think with Green Lake and some of these innovations. So >>I really >>appreciate it. Go ahead please. >>I appreciate the time as well. It's always a pleasure and it's always exciting to get a chance to share with you and and as always, any time you don't want me back, I'm happy to happy to join. Alright, >>would love to do that. So appreciate that. And thank you for spending some time with us. Stay tuned for more great coverage from HPD discovered 21 everything is available on demand as well as the that is the other good thing about virtually go back and watch all this content. This is Dave Volonte for the cube the leader in enterprise tech coverage. Be right back

>>from the cube studios in Palo alto in boston connecting with thought leaders all around the world. >>This is a cute conversation. Welcome to the cubes coverage of HP discover 2021 I'm lisa martin. I've got three guests with me here. They're going to be talking about the partnership between HP and AMG. Please welcome George hope worldwide Head of partner sales at HP terry, Richardson north american channel chief for AMG and Peter chan, the director of media channel sales at AMG Gentlemen, it's great to have you on the cube. >>Well, thanks for having us lisa. >>All right, >>we're excited to talk to you. We want to start by talking about this partnership terry. Let's go ahead and start with you. H P E and M D have been partners for a very long time, very long history of collaboration. Talk to us about the partnership >>HB named, He do have a rich history of collaboration spinning back to the days of chapter on and then when A M. D brought the first generation AMG equity process department back in 2017, HP was a foundational partner providing valuable engineering and customer insights from day one AmY has a long history of innovation that created a high performance CP roadmap for value partners like HP to leverage in their workload optimized product portfolios, maximizing the synergies between the two companies. We've kicked off initiatives to grow the chain of business together with workload focused solutions and together we define the future. >>Thanks terry George, let's get your perspective as worldwide had a partner sales at HP. Talked to me about H P S perspective of that AMG partnership. >>Yeah, they say it's uh the introduction of the third generation AMG Epic processors, we've we've doubled our A. M. D. Based Pro Lion portfolio. We've even extended it to our follow systems. And with this we have achieved a number of world records across a variety of workloads and are seeing real world results. The third generation am the epic processor delivers strong performance, expand ability and the security our customers need as they continue their digital transformation, We can deliver better outcomes and lay a strong foundation for profitable apartment growth. And we're incorporating unmatched workload optimization and intelligent automation with 360° security. And of course, uh with that as a service experience. >>But as a service experience becoming even more critical as is the security as we've seen some of the groundbreaking numbers and data breaches in 2020 alone. Peter I want to jump over to you now. One of the things that we see H P E and M. D. Talking about our solutions and workloads that are key areas of focus for both companies. Can you explain some of those key solutions and the value that they deliver for your customers? >>Absolutely. It's from computing to HPC to the cloud and everything in between and the young HB have been focused on delivering not just servers but meaningful solutions that can solve customer challenges. For example, we've seen here in India, the DL- 325 has been really powerful for customers that want to deploy video. Hp nmD have worked together with icy partners in the industry to tune the performance and ensure that the user experience is exceptional. Um This just one example of many of course, for instance, the 3 45 with database 3 65 for dense deployments, it's key the 35 That has led the way in big data analytics. Um the Apollo 60 500 breaking new path in terms of AI and Machine learning, quite a trending topic and m D H p are always in the news when it comes to groundbreaking HPC solutions and oh by the way, we're able to do this due to an unyielding commitment to the data center and long term laser focused execution on the M the road map. >>Excellent. Thanks. Peter. Let's talk about the channel expansion a little bit more terry with you. You know, you and the team here. Channel Chief focused on the channel. What is A. M. D. Doing specifically to expand your channel capabilities and support all of the Channel partners that work with Andy >>great question lisa Campbell is investing in so many areas around the channel. Let's start with digital transformation. Our Channel partners consistently provided feedback that customers need to do more with less between A and B and H P. E. We have solutions that increase capabilities and deliver faster time to value for the customer looking to do more with less. We have a tool on our website called the and metrics server virtualization, Tco estimation tool and those who have visually see the savings. We also have lots of other resources such as technical documentation, A and E arena for training and general CPU's departments can take advantage of aside from solution examples, AMG is investing in headcount internally and at our channel part race. I'm actually an example of the investment MD is making to build out the channel. One more thing that I'll mention is the investment that are, you know, lisa su and Andy are making to build out the ecosystem from head Count to code development and is investing to have a more powerful user experience with our software partners in the ecosystem. From my discussions with our channel partners, they're glad to see A and d expanding our our channel through the many initiatives and really bringing that ecosystem. >>Here's another question for you as channel chief. I'm just curious in the last year, speaking and you talked about digital transformation. We've seen so much acceleration of the adoption of that since the last 15 months has presented such challenges. Talk to me a little bit about some of the feedback from your channel partners about what you am, D N H B are doing together to help those customers needed to deliver that fast time to value, >>you know, so really it's all about close collaboration. Um we we work very closely with our counterparts at H P. E just to make sure we understand partner and customer requirements and then we work to craft solutions together from engaging, technically to collaborating on on, you know, when products will be shipped and delivered and also just what are we doing to uh to identify the next key workloads and projects that are going to be engaged in together? So it's it's really brought the companies I think even closer together, >>that's excellent as a covid catalyst. As I say, there's a lot of silver linings that we've seen and it sounds like the collaboration terry that you mentioned has become even stronger George. I want to go to you. Let's HP has been around for a long time. My first job in tech was Hewlett Packard by the way, many years ago. I won't mention how long but talk to me about the partnership with AMG from H P s perspective, is this part of H P S D N A? >>Absolutely. Partnering is our D N A. We've had 80 years of collaboration with an ever expanding ecosystem of partners that that all play a key role in our go to market strategy. We actually design and test our strategic initiatives in close collaboration with our partners so that we can meet their most pressing needs. We do that through like farmer advisory boards and things of that nature. Um but we have we have one of the most profitable partner programs in the industry, 2-3 times higher rebates than most of our competitors. And we continue to invest in the partner experience in creating that expertise so partners can stand out in a highly competitive market. Uh And Andy is in direct alignment with that strategy. We have strong synergies and a common focus between the two companies. >>And I also imagine George one question and one question to that there's tremendous value in it for your end user customers, especially those that have had to everyone pivot so many times in the last year and have talked to me a little bit about George What you're saying from the customer's perspective. >>Well as Antonio Neri said a couple of years back, the world is going to be hybrid and uh, he was right. We continue uh we continue to see that evolution and we continue to deliver solutions around a hybrid digital world with, with Green Lake and the new wave of digital transformation that we refer to now as the age of insight customers want a cloud experience everywhere. And 70% of today's workloads can easily be re factored for the public cloud or they need to stay physically close to the data and other apps at the emerging edge or in polos are in the data centers. So as a result, most organizations are forced to deal with the complexity of having two divergent operating models and they're paying higher cost to maintain them both with Green Lake, we provide one consistent operating model with visibility and control across public clouds and on prem environments. And that applies to all workloads, you know, whether it's cloud native or non cloud native applications. Um we also have other benefits like no cloud block in or no data. Egress charges, so you have to pay a steep price just to move workloads out of the public cloud. And then we're expanding collaboration opportunities within for our partner ecosystem so that we can bring that cloud experience to a faster growing number of customers worldwide. So we've launched new initiatives uh in support of the core strategy as we accelerate our as a service vision and then work with partners to unlock better customer outcomes with Green Lake and of course, hb compute of which I am d is part of is, is the underlying value added technology. >>Can you expand on some of those customer outcomes as we look at, as I mentioned before, this very dynamic market in which we live. It's all about customer outcomes. What are some of those that from a hybrid cloud environment perspective with Green like that you're helping customers achieve? >>Well, at least Greenland has come out with with about 30 different different offerings that package up some solutions. So you're not just buying infrastructure as a service. We have offerings like HPC as a service. We have offerings like uh, V D I as a service, ml, ops as a service. So we're packaging in technology, some are are some are not ours, but into completing some solutions. So that creates the outcome that the customers are looking for. >>Excellent. Thanks, George and Peter, last question to you again with the hybrid cloud environment being something that we're seeing more and more of the benefits that Green Lake is delivering through the channel. What's your perspective from a. M decide? >>Absolutely lisa. So, so I mean I think it's clear with a MD based systems, customers get the benefit of performance, security and fast time to value whether deployed on prem and cloud on a hybrid model. So please come try out our HP system based on name the processors and see how we can accelerate and protect your applications. Thank you lisa. >>Excellent, Peter George terry, thank you for joining me today. I'm sure there's a lot more that folks are going to be able to learn about what AM D and H. P. Are doing together on the virtual show floor. We appreciate your time. Thank you. Yeah, for my guests, I'm lisa martin. You're watching the cubes coverage of HP discover 2021 Yeah.

>> Welcome to theCUBE's coverage of HPE Discover 2021. I'm Lisa Martin. I've got three guests with me here today. They're going to be talking about the partnership between HPE and AMD. Please welcome George Hope, Worldwide Head of Partner Sales at HPE, Terry Richardson, North American Channel Chief for AMD, and Peter Chan, the Director of EMEA Channel Sales at AMD. Gentlemen, it's great to have you on theCUBE. >> George: Well, thanks for having us, Lisa. >> We're excited to talk to you. We want to start by talking about this partnership, Terry let's go ahead and start with you. HPE and AMD have been partners for a very long time very long history of collaboration, talk to us about the partnership. >> HPE and AMD do have a rich history and collaboration spinning back to the days of Opteron and then when AMD bought the first-generation AMD EPYC processors to market back in 2017, HPE was a foundational partner providing valuable engineering and customer insights from day one. AMD has a long history of innovation in creating a high performance CPU roadmap for value partners like HPE to leverage in their workload optimized product portfolios. Maximizing the synergies between the two companies, we've kicked off initiatives to grow the chain of business together with workload focused solutions and together we define the future. >> Thanks Terry, George let's get your perspective as worldwide head of partner sales at HPE. Talk to me about HP's perspective at that AMD partnership. >> Yeah Lisa, the introduction of the third generation AMD EPYC processors, we've doubled our AMD based ProLiant portfolio. We've even extended it to our Apollo systems. And with this, we've achieved a number of world records across a variety of workloads, and I've seen real-world results. The third generation AMD EPYC processor delivers a strong performance, expandability, in the security our customers need as they continue their digital transformation. We can deliver better outcomes and lay a strong foundation for profitable apartment growth. And we're incorporating unmatched workload optimization and intelligent automation with 360 degree security. And of course, with an ASA service experience. >> But ASA service experience, becoming even more critical as is the security, as we've seen some of the groundbreaking numbers in data breaches in 2020 alone, Peter, I want to jump over to you now. One of the things that we see HPE and AMD talking about are solutions and workloads that are key areas of a focus for both companies. Can you explain some of those key solutions and the value that they deliver for your customers? >> Absolutely Lisa, (indistinct) to HPC, to the cloud and everything in between AMD and HPE have been focused on delivering not just servers but meaningful solutions that can solve customer challenges. For example, we see here in EMEA, the DL325 has been really powerful for customers who want to deploy VDI. HPE and AMD have worked together with IC partners in the industry to tune the performance and ensure that the user experience is exceptional. This is just one example of many, of course, for instance, the 345 with database, 365 for density deployment is key (indistinct) that has led the way in big data analytics. The Apollo 6500 breaking new path in terms of AI and machine learning, quite a trending topic and AMD and HPE are always in the news when it comes to groundbreaking HPC solutions. I know by the way, we're able to do these, during commitment to the data center on longterm laser focused execution on the AMD roadmap. >> Excellent. Thanks Peter. Let's talk about the channel expansion a little bit more, Terry with you again, you and the team here channel chief focused on the channel. What is AMD doing specifically to expand your channel capabilities and support all of the channel partners that work with AMD? >> Great question, Lisa. AMD's investing in some areas around the channel. Let's start with digital transformation, Our channel partners consistently provide us feedback that customers need to do more with less. Between AMD and HPE, we have solutions that increase capabilities and deliver faster time to value for the customer looking to do more with less. We have a tool on our website called the AMD EPYC server virtualization TCO estimation tool that allows you to visually see the savings. We also have lots of other resources such as technical documentation, AMD arena for training and demo CPU's that partners can take advantage of. Aside from solution examples, AMD is investing in headcount internally at our channel partners. I'm actually an example of the investment AMD is making to build out the channel. One more thing that I'll mention is the investment that our CEO, Lisa Su and AMD are making to build our ecosystem from headcount to code development, AMD is investing to have a more powerful user experience with our software partners in the ecosystem. From my discussions with our channel partners, I'm glad to see AMD expanding our channel through the many initiatives and really broadening that ecosystem. >> Terry, another question for you, as channel chief I'm just curious in the last year speaking to me, talked about digital transformation we've seen so much acceleration of the adoption of that since the last 15 months has presented such challenges. Talk to me a little bit about some of the feedback from your channel partners about what you, AMD and HP are doing together to help those customers that needed to deliver that fast time to value. >> You know, so really, it's all about close collaboration. We work very closely with our counterparts at HPE just to make sure we understand partner and customer requirements, and then we work to craft a solutions together from engaging technically, to collaborating on my products will be shipped and delivered to also just what are we doing to identify the next key workloads and projects that are going to be engaged in together. So it really brought the companies, I think even closer together. >> That's excellent. There's a COVID catalyst, as I say, there's a lot of silver linings that we've seen and it sounds like the collaboration, Terry that you mentioned has become even stronger. George, I want to go to you, HPE has been around for a long time. My first job in tech was Hewlett Packard by the way, many years ago, I won't mention how long but talk to me about the partnership with AMD from HPE's perspective is this part of HPE's DNA? >> Absolutely, partnering is our DNA. We've had 80 years of collaboration with an ever expanding ecosystem of partners that all play a key role in our go to market strategy. We actually design and test our strategic initiatives in close collaboration with our partners so that we can meet their most pressing needs. We do that through like partner advisory boards and things of that nature, but we have of the most profitable partner programs in the industry, two to three times higher rebates than most of our competitors. And we continue to invest in the partner experience and creating that expertise. So partners can stand out in a highly competitive market. And AMD is in direct alignment with that strategy. We have strong synergies and a common focus between the two companies. >> May I also imagine George one follow on question to that, there's tremendous value in it for your end user customers, especially those that have had to everyone pin it so many times in the last year and talk to me a little bit about George what you're seeing from the customers perspective. >> Well, as Antonio Neri said, a couple of years back the world is going to be hybrid and I think he was right, we continue to see that evolution and we continue to deliver solutions around a hybrid digital world with GreenLake. And the new wave of digital transformation that we refer to now as the age of insight. Customers want a cloud experience everywhere and 70% of today's workloads can't easily be refactored to the public cloud, or they need to stay physically close to the data and other apps at the emerging edge or in colos or in the data centers. So as a result, most organizations are forced to deal with the complexity of having two divergent operating models and they're paying higher costs to maintain them both. With GreenLake, we provide one consistent operating model with visibility and control across public clouds and on-prem environments. And that applies to all workloads. You know, whether it's cloud native or non-cloud native applications. We also have other benefits, like no cloud lock-in or no data egress charges. So you don't have to pay a steep price just to move workloads out of the public cloud. And then we're expanding collaboration opportunities within for our partner ecosystem so that we can bring that cloud experience to a faster growing number of customers worldwide. So we've launched new initiatives in support of the core strategy as we accelerate our as a service vision and then work with partners to unlock better customer outcomes with GreenLake. And of course, HPE compute of which AMD is part of is the underlying value added technology. >> Can you expand on some of those customer outcomes as we look at, as I mentioned before this very dynamic market in which we live, it's all about customer outcomes, what are some of those that from a hybrid cloud environment perspective with GreenLake that you're helping customers achieve? >> Well Lisa, GreenLake has come out with about 30 different offerings that package up some solutions. So you're not just buying infrastructure as a service. We have offerings like HPC as a service, so we have offerings like a VDI as a service, ML ops as a service. So we're packaging in technology, some are ours, some are not ours, but in to completing some solutions. So it create the outcome that they, the customers are looking for. >> Excellent. Thanks, George. And Peter, last question to you. Again, with the hybrid cloud environment being something that we're seeing more and more of, the benefits that GreenLake is delivering through the channel, what's your perspective from AMD side? >> Absolutely, Lisa. So, I mean I think it's clear with AMD based systems 'cause we're getting the benefit of performance, security and fast time to value when they're deployed on-prem and the cloud, on a hybrid model. So please come try out our HPC system based on AMD processors and see how we can accelerate and protect your obligations. Thank you, Lisa. >> Excellent. Peter, George, Terry thank you for joining me today. I'm sure there's a lot more that folks are going to be able to learn about what AMD and HPE are doing together on the virtual show floor. We appreciate your time. For my guests, I'm Lisa Martin. You're watching theCUBE's coverage of HPE discover 2021. (uplifting music)

>> Unleash The Power of Data. On May 4th at 11:00 AM Eastern, 8:00 AM Pacific, HPE is hosting a broadcast and we're here with Sandeep Singh, who's the Vice President of Storage Marketing at Hewlett Packard Enterprise. Sandeep, what's this event all about, who should attend and why? >> Dave, in the world of enterprise storage, there hasn't been a moment like this in decades. A point at which everything is changing for data and infrastructure and is powered by the nexus of data, cloud and AI. And the opportunity for our customers to accelerate their data-driven transformation is unfolding. HPE is excited to invite everyone to join us for a virtual event that, as Dave mentioned, Unleash the Power of Data on May 4th at 8:00 AM Pacific. And if you're an organization like most today, data is at the heart of what you do. And you're looking to accelerate data driven transformation. We hear you and we're thrilled to invite you to join us on May 4th, as we unveil a new vision for data that accelerates data driven transformation from edge to cloud. This promises to be a pivotal event and one that IT Admins, Cloud Architects, Virtualization Architects, Vice-Presidents, Directors of IT, and CIOs (indistinct) the event is hosted by a business and a tech journalist Shabani Joshi and it will feature a market in panel with a focus on the crucial data that data is playing in the transformation for customers. Antonio Neri CEO of HPE and Tom black senior vice president and general manager of HPE storage as well as industry experts, including Julia Palmer vice president at Gartner will be part of the event. We will unveil game-changing HPE innovations that will make it possible for organizations across industries to unleash the power of data. >> Sounds awesome. Okay. Go to hpe.com. Mark your calendar, and we'll see you there.

(smooth music) >> Hi, everybody. This is Dave Vellante, and with me is Sandeep Singh. He's the vice president of storage marketing at Hewlett Packard Enterprise, and we're going to riff on some of the trends in the industry, what we're seeing, and we got a little treat for you, Sandeep. Great to see you, man. >> Dave, it's a pleasure to be here. >> You and I have known each other for a long time. We've had some great discussions, some debates, (chuckles) some intriguing mind benders. What are you seeing out there in storage? So much has changed. What are the key trends you're seeing? And let's get into it. >> Yeah. Across the board, as you said, so much has changed. When you reflect back at the underlying transformation that's taking place with data, cloud, and AI across the board, first of all, for our customers, they're seeing this massive data explosion that literally now spans edge to core to cloud. They're also seeing a diversity of the application workloads across the board. The emphasis that it's placing is on the complexity that underlies overall infrastructure and data management. Across the board, we're hearing a lot from customers about just the underlying infrastructure and complexity, and the infrastructure sprawl. And then the second element of that is really extending into the complexity of data management. >> So it's interesting to talk about data management. You remember you and I were in... Well, you were in Andover. I don't know. It was probably like five years ago. And all we were talking about was media, flash this and flash that, and at the time that was kind of the hot storage topic. Well, flash came in, addressed some of the clicks that we historically talked about. Now the problem statement is really kind of, quote unquote, metaphorically moving up the stack, if you will. You mentioned management. But let's dig into that a little bit. I mean, what is management? I mean, a lot of people... That means different things to different people. You talk to a database person or a backup person. How do you look at management? What does that mean to you? >> Yeah, Dave. You mentioned that flash came in, and it actually accelerated the overall speed and latency that storage was delivering to the application workloads. But fundamentally, when you look back at storage over a couple of decades, the underlying way of how you're managing storage hasn't fundamentally changed. There's still an incredible amount of complexity for ITs. It's still a manual admin-driven experience for customers. And what that's translating to is, more often than not, IT is in the world of firefighting, and it leaves them unable to help with the more strategic projects to innovate for the business. And basically IT has that pressure point of moving beyond that, and helping bring greater levels of agility that line of business owners are asking for, and to be able to deliver on more of the strategic projects. So that's one element of it. The second element that we're hearing from customers about is as more and more data just continues to explode from edge to core to cloud, and as basically the infrastructure has grown from just being on-prem, to being at the edge, to being in the cloud, now that complexity is expanding from just being on-prem to across multiple different clouds. So when you look across the data life cycle, how do you store it? How do you secure it? How do you basically protect it, and archive it, and analyze that data? That end to end life cycle management of data, today resides on just a fragmented set of overall infrastructure, and tools, and processes, and administrative boundaries. That's creating a massive challenge for customers. And the impact of that, ultimately, is essentially comes at a cost to agility, to innovation, and ultimately business risk. >> Yeah, so we've seen obviously the cloud has addressed a lot of these problems, but the problem is the cloud is in the cloud. And much of my stuff, most of my stuff, isn't in the cloud. (chuckles) So I have all these other workloads that are either on-prem, and now you've got this emerging edge. And so I wonder if we could just talk a little vision here for a minute. I mean, what I've been envisioning is this abstraction layer that cuts across all, whether... It doesn't really matter where it is. If it's on-prem, if it's across cloud, if it's in the cloud, on the edge. We could talk about what that all means. But if customers that I talk to, they're sort of done with the complexity of that underlying infrastructure. They want technology to take care of that. They want automation. They want AI brought into that equation. And it seems like we're on the cusp of the decade where that might happen. What's your take? >> Well, yeah. Certainly, I mentioned that data cloud and AI are really the disruptive forces that are propelling the digital transformation for customers. Cloud has set the standard for agility, and AI-driven insights and intelligence are really helping to make the underlying infrastructure invisible. And yet a lot of their application workloads and data is on-prem and is increasingly growing at the edge. So they want that same experience to be able to truly bring that agility to wherever their data and apps load. And that's one of the things that we're continuing to hear from customers. >> And this problem's just going to get worse. I mean, we... For decades we marched to the cadence of Moore's law, and everybody's kind of forgets about Moore's law. And they'll say, "Ah, it's dying," or whatever. But actually, when you look at the processing power that's coming out now, it's not... It's more than doubling every two years, quadrupling every two years. So now you've got this capability in your hands, and application designers, storage companies, networking companies, they're going to have all this power to now bring in AI and do things that we've never even imagined before. So it's not about the box, and the speeds and feeds of the box. It's really more about this abstraction layer that I was talking about, the management, if you will, that you were discussing, and what we can do in terms of being able to power new workloads, machine intelligence. It's this kind of ubiquitous... Call it the cloud, but it's expanding pretty much everywhere in every part of our lives, (chuckles) even to the edge. You think about autonomous vehicles, you think about factories. It's actually quite mind boggling where we're headed. >> It is, and you touched upon AI, and certainly when you look at infrastructure, for example, there's been a ton of complexity in infrastructure management. One of the studies that was done, actually by IDC, indicated that over 90% of the challenges that arise, for example, ultimately down at the storage infrastructure layer that's powering the apps, ultimately, arises from way above the stack all the way from the server layer on down, or even the virtual machine layer. And there, for example, AI ops for infrastructure has become a game changer for customers to be able to bring the power of AI, and machine learning, and multi-variate analysis to be able to predict and prevent issues. Dave, you also touched upon edge, and across the board, what we're seeing is the enterprise edge is becoming that frontier for customer experiences, and the opportunity to reimagine customer experiences, as well as just the frontier for commerce that's happening when you look at retail, and manufacturing, and/or financial services. So across the board, with the data growth that's happening, and this edge becoming the strategic frontier for delivering the customer experiences, how you power your application workloads there, how you deliver that data, and protect that data, and be able to seamlessly manage that overall infrastructure, as you mentioned, abstracted away at a higher level, becomes incredibly important for our customers. >> It's so interesting to hear how the conversation's changing, I'd like to say. I go back to whatever it was, five years ago, we're talking about flash, storage class memory, and NVMe, and those things are still there, but your emphasis now, you're talking about machine learning, AI, math around deep learning. It's really software is really what you're focusing on these days. >> Very much so. Certainly, this notion of software and services that are delivering and unlocking a whole new experience for customers, that's really the game changer going forward for customers, and that's what we're focused on. >> Well, I said we had a little surprise for you. So you guys are having an event on May 4th. It's called Unleash the Power of Data. What's that event all about, Sandeep? >> Yeah. We are very much excited about our May 4th event. As you mentioned, it's called Unleash the Power of Data. And as most organizations today are data driven, and data is at the heart of what they're doing, we're excited to invite everyone to join this event. And through this event, we're unveiling a new vision for data that accelerates the data-driven transformation from edge to cloud. This event promises to be a pivotal event, and one that IT admins, cloud architects, virtual machine admins, vice-presidents, directors of IT, and CIOs really won't want to miss. Across the board, this event is just bringing a new way of articulating the overall problem statement, and a market-in focused the articulation of the trends that we were just discussing. It's an event that's going to be hosted by business and technology journalist, Shibani Joshi. It will feature a market-in panel with a focus on the crucial role that data is playing in customers' digital transformation. It will also include and feature Antonio Neri, CEO of HPE, and Tom Black, senior vice president and general manager of HPE storage business, and industry experts, including Julia Palmer, research vice president at Gartner. We will unveil game-changing HPE innovations that will make it possible for organizations across edge to cloud to unleash the power of data. >> Sounds like a great event. I presume I can go to hpe.com. And what? Get information. Is it a registered event? How does that all work? >> Yeah, we invite everyone to visit hpe.com, and by visiting there, you can click and save the date of May 4th at 8:00 AM Pacific. We invite everyone to join us. We couldn't be more excited to get to this event, and be able to share the vision and game-changing HPE innovations. >> Awesome. So it's... So I don't have to register, right? I don't have to give up my three children's name, and my social security number to attend your event, is that right? (chuckles) >> No registration required. Come by, click on hpe.com. Save the date on your calendar. And we very much look forward to having everyone join us for this event. >> I love it. It's pure content event. I'm not going to get a phone call afterwards saying, "Hey, buy some stuff from me." That could come other channels, so that's good. (chuckles) Thank you for that. Thanks for providing that service to the industry. I'm excited to see what you guys are going to be announcing that day. And look, Sandeep, I mean, like I said, we've known each other a while. We've seen a lot of trends, but the next 10 years, it ain't going to look like the last 10, is it? >> It's going to be very different, and we couldn't be more excited. >> Well, Sandeep, thanks so much for coming to theCUBE, and riffing with me on the industry, and giving us a preview for your event. Good luck with that, and always great to see you. >> Thanks a lot, Dave. Always great to see you as well. >> All right, and thank you, everybody. This is Dave Vellante for theCUBE, and we'll see you next time. (smooth music)

>> Unleash the Power of Data. On May 4th at 11:00 am Eastern, 8:00 am Pacific HPE is hosting a broadcast. And we're here with Sandeep Singh who's the vice president of Storage Marketing at Hewlett Packard Enterprise. Sandeep, what's this event all about? Who should attend, and why? >> Dave, in the world of enterprise storage, there hasn't been a moment like this in decades. A point at which everything is changing for data and infrastructure, and is powered by the nexus of data cloud and AI. And the opportunity for our customers to accelerate their data-driven transformation is unfolding. HPE is excited to invite everyone to join us for a virtual event, that as Dave mentioned, Unleash the Power of Data on May 4th at 8:00 am Pacific. And if you're an organization like most today, data is at the heart of what you do. And you're looking to accelerate data-driven transformation. We hear you, and we're thrilled to invite you to join us on May 4th as we unveil a new vision for data that accelerates data-driven transformation from edge to cloud. This promises to be a pivotal event, and one that IT admins, cloud architects, virtualization architects, vice presidents, directors of IT, and CIOs won't want to miss. The event is hosted by business and a tech journalist Shabani Joshi, and it will feature a market end panel with a focus on the crucial data that data is playing in the transformation for customers. Antonio Neri, CEO of HPE, and Tom Black, senior vice president and general manager of HPE Storage, as well as industry experts, including Julia Palmer, vice president at Gartner, will be part of the event. We will unveil game-changing HPE innovations that will make it possible for organizations across industries to unleash the power of data. >> Sounds awesome! Okay, go to hpe.com. Mark your calendar, and we'll see you there.

momentum is gathering [Music] business is evolving more and more quickly moving through one transformation to the next because change never stops it only accelerates this is a world that demands a new kind of compute deployed from edge to core to cloud compute that can outpace the rapidly changing needs of businesses large and small unlocking new insights turning data into outcomes empowering new experiences compute that can scale up or scale down with minimum investment and effort guided by years of expertise protected by 360-degree security served up as a service to let it control own and manage massive workloads that weren't there yesterday and might not be there tomorrow this is the compute power that will drive progress giving your business what you need to be ready for what's next this is the compute power of hpe delivering your foundation for digital transformation welcome to accelerating next thank you so much for joining us today we have a great program we're going to talk tech with experts we'll be diving into the changing economics of our industry and how to think about the next phase of your digital transformation now very importantly we're also going to talk about how to optimize workloads from edge to exascale with full security and automation all coming to you as a service and with me to kick things off is neil mcdonald who's the gm of compute at hpe neil always a pleasure great to have you on it's great to see you dave now of course when we spoke a year ago you know we had hoped by this time we'd be face to face but you know here we are again you know this pandemic it's obviously affected businesses and people in in so many ways that we could never have imagined but in the reality is in reality tech companies have literally saved the day let's start off how is hpe contributing to helping your customers navigate through things that are so rapidly shifting in the marketplace well dave it's nice to be speaking to you again and i look forward to being able to do this in person some point the pandemic has really accelerated the need for transformation in businesses of all sizes more than three-quarters of cios report that the crisis has forced them to accelerate their strategic agendas organizations that were already transforming or having to transform faster and organizations that weren't on that journey yet are having to rapidly develop and execute a plan to adapt to this new reality our customers are on this journey and they need a partner for not just the compute technology but also the expertise and economics that they need for that digital transformation and for us this is all about unmatched optimization for workloads from the edge to the enterprise to exascale with 360 degree security and the intelligent automation all available in that as a service experience well you know as you well know it's a challenge to manage through any transformation let alone having to set up remote workers overnight securing them resetting budget priorities what are some of the barriers that you see customers are working hard to overcome simply per the organizations that we talk with are challenged in three areas they need the financial capacity to actually execute a transformation they need the access to the resource and the expertise needed to successfully deliver on a transformation and they have to find the way to match their investments with the revenues for the new services that they're putting in place to service their customers in this environment you know we have a data partner called etr enterprise technology research and the spending data that we see from them is it's quite dramatic i mean last year we saw a contraction of roughly five percent of in terms of i.t spending budgets etc and this year we're seeing a pretty significant rebound maybe a six to seven percent growth range is the prediction the challenge we see is organizations have to they've got to iterate on that i call it the forced march to digital transformation and yet they also have to balance their investments for example at the corporate headquarters which have kind of been neglected is there any help in sight for the customers that are trying to reduce their spend and also take advantage of their investment capacity i think you're right many businesses are understandably reluctant to loosen the purse strings right now given all of the uncertainty and often a digital transformation is viewed as a massive upfront investment that will pay off in the long term and that can be a real challenge in an environment like this but it doesn't need to be we work through hpe financial services to help our customers create the investment capacity to accelerate the transformation often by leveraging assets they already have and helping them monetize them in order to free up the capacity to accelerate what's next for their infrastructure and for their business so can we drill into that i wonder if we could add some specifics i mean how do you ensure a successful outcome what are you really paying attention to as those sort of markers for success well when you think about the journey that an organization is going through it's tough to be able to run the business and transform at the same time and one of the constraints is having the people with enough bandwidth and enough expertise to be able to do both so we're addressing that in two ways for our customers one is by helping them confidently deploy new solutions which we have engineered leveraging decades of expertise and experience in engineering to deliver those workload optimized portfolios that take the risk and the complexity out of assembling some of these solutions and give them a pre-packaged validated supported solution intact that simplifies that work for them but in other cases we can enhance our customers bandwidth by bringing them hpe point next experts with all of the capabilities we have to help them plan deliver and support these i.t projects and transformations organizations can get on a faster track of modernization getting greater insight and control as they do it we're a trusted partner to get the most for a business that's on this journey in making these critical compute investments to underpin the transformations and whether that's planning to optimizing to safe retirement at the end of life we can bring that expertise to bayer to help amplify what our customers already have in-house and help them accelerate and succeed in executing these transformations thank you for that neil so let's talk about some of the other changes that customers are seeing and the cloud has obviously forced customers and their suppliers to really rethink how technology is packaged how it's consumed how it's priced i mean there's no doubt in that to take green lake it's obviously a leading example of a pay as pay-as-you-scale infrastructure model and it could be applied on-prem or hybrid can you maybe give us a sense as to where you are today with green lake well it's really exciting you know from our first pay-as-you-go offering back in 2006 15 years ago to the introduction of green lake hpe has really been paving the way on consumption-based services through innovation and partnership to help meet the exact needs of our customers hpe green lake provides an experience that's the best of both worlds a simple pay-per-use technology model with the risk management of data that's under our customers direct control and it lets customers shift to everything as a service in order to free up capital and avoid that upfront expense that we talked about they can do this anywhere at any scale or any size and really hpe green lake is the cloud that comes to you like that so we've touched a little bit on how customers can maybe overcome some of the barriers to transformation what about the nature of transformations themselves i mean historically there was a lot of lip service paid to digital and and there's a lot of complacency frankly but you know that covered wrecking ball meme that so well describes that if you're not a digital business essentially you're going to be out of business so neil as things have evolved how is hpe addressed the new requirements well the new requirements are really about what customers are trying to achieve and four very common themes that we see are enabling the productivity of a remote workforce that was never really part of the plan for many organizations being able to develop and deliver new apps and services in order to service customers in a different way or drive new revenue streams being able to get insights from data so that in these tough times they can optimize their business more thoroughly and then finally think about the efficiency of an agile hybrid private cloud infrastructure especially one that now has to integrate the edge and we're really thrilled to be helping our customers accelerate all of these and more with hpe compute i want to double click on that remote workforce productivity i mean again the surveys that we see 46 percent of the cios say that productivity improved with the whole work from home remote work trend and on average those improvements were in the four percent range which is absolutely enormous i mean when you think about that how does hpe specifically you know help here what do you guys do well every organization in the world has had to adapt to a different style of working and with more remote workers than they had before and for many organizations that's going to become the new normal even post pandemic many it shops are not well equipped for the infrastructure to provide that experience because if all your workers are remote the resiliency of that infrastructure the latencies of that infrastructure the reliability of are all incredibly important so we provide comprehensive solutions expertise and as a service options that support that remote work through virtual desktop infrastructure or vdi so that our customers can support that new normal of virtual engagements online everything across industries wherever they are and that's just one example of many of the workload optimized solutions that we're providing for our customers is about taking out the guesswork and the uncertainty in delivering on these changes that they have to deploy as part of their transformation and we can deliver that range of workload optimized solutions across all of these different use cases because of our broad range of innovation in compute platforms that span from the ruggedized edge to the data center all the way up to exascale and hpc i mean that's key if you're trying to affect the digital transformation and you don't have to fine-tune you know be basically build your own optimized solutions if i can buy that rather than having to build it and rely on your r d you know that's key what else is hpe doing you know to deliver things new apps new services you know your microservices containers the whole developer trend what's going on there well that's really key because organizations are all seeking to evolve their mix of business and bring new services and new capabilities new ways to reach their customers new way to reach their employees new ways to interact in their ecosystem all digitally and that means app development and many organizations of course are embracing container technology to do that today so with the hpe container platform our customers can realize that agility and efficiency that comes with containerization and use it to provide insights to their data more and more that data of course is being machine generated or generated at the edge or the near edge and it can be a real challenge to manage that data holistically and not have silos and islands an hpe esmerald data fabric speeds the agility and access to data with a unified platform that can span across the data centers multiple clouds and even the edge and that enables data analytics that can create insights powering a data-driven production-oriented cloud-enabled analytics and ai available anytime anywhere in any scale and it's really exciting to see the kind of impact that that can have in helping businesses optimize their operations in these challenging times you got to go where the data is and the data is distributed it's decentralized so i i i like the esmerel of vision and execution there so that all sounds good but with digital transformation you get you're going to see more compute in in hybrid's deployments you mentioned edge so the surface area it's like the universe it's it's ever-expanding you mentioned you know remote work and work from home before so i'm curious where are you investing your resources from a cyber security perspective what can we count on from hpe there well you can count on continued leadership from hpe as the world's most secure industry standard server portfolio we provide an enhanced and holistic 360 degree view to security that begins in the manufacturing supply chain and concludes with a safeguarded end-of-life decommissioning and of course we've long set the bar for security with our work on silicon root of trust and we're extending that to the application tier but in addition to the security customers that are building this modern hybrid are private cloud including the integration of the edge need other elements too they need an intelligent software-defined control plane so that they can automate their compute fleets from all the way at the edge to the core and while scale and automation enable efficiency all private cloud infrastructures are competing with web scale economics and that's why we're democratizing web scale technologies like pinsando to bring web scale economics and web scale architecture to the private cloud our partners are so important in helping us serve our customers needs yeah i mean hp has really upped its ecosystem game since the the middle of last decade when when you guys reorganized it you became like even more partner friendly so maybe give us a preview of what's coming next in that regard from today's event well dave we're really excited to have hp's ceo antonio neri speaking with pat gelsinger from intel and later lisa sue from amd and later i'll have the chance to catch up with john chambers the founder and ceo of jc2 ventures to discuss the state of the market today yeah i'm jealous you guys had some good interviews coming up neil thanks so much for joining us today on the virtual cube you've really shared a lot of great insight how hpe is partnering with customers it's it's always great to catch up with you hopefully we can do so face to face you know sooner rather than later well i look forward to that and uh you know no doubt our world has changed and we're here to help our customers and partners with the technology the expertise and the economics they need for these digital transformations and we're going to bring them unmatched workload optimization from the edge to exascale with that 360 degree security with the intelligent automation and we're going to deliver it all as an as a service experience we're really excited to be helping our customers accelerate what's next for their businesses and it's been really great talking with you today about that dave thanks for having me you're very welcome it's been super neal and i actually you know i had the opportunity to speak with some of your customers about their digital transformation and the role of that hpe plays there so let's dive right in we're here on the cube covering hpe accelerating next and with me is rule siestermans who is the head of it at the netherlands cancer institute also known as nki welcome rule thank you very much great to be here hey what can you tell us about the netherlands cancer institute maybe you could talk about your core principles and and also if you could weave in your specific areas of expertise yeah maybe first introduction to the netherlands institute um we are one of the top 10 comprehensive cancers in the world and what we do is we combine a hospital for treating patients with cancer and a recent institute under one roof so discoveries we do we find within the research we can easily bring them back to the clinic and vis-a-versa so we have about 750 researchers and about 3 000 other employees doctors nurses and and my role is to uh to facilitate them at their best with it got it so i mean everybody talks about digital digital transformation to us it all comes down to data so i'm curious how you collect and take advantage of medical data specifically to support nki's goals maybe some of the challenges that your organization faces with the amount of data the speed of data coming in just you know the the complexities of data how do you handle that yeah it's uh it's it's it's challenge and uh yeah what we we have we have a really a large amount of data so we produce uh terabytes a day and we we have stored now more than one petabyte on data at this moment and yeah it's uh the challenge is to to reuse the data optimal for research and to share it with other institutions so that needs to have a flexible infrastructure for that so a fast really fast network uh big data storage environment but the real challenge is not not so much the i.t bus is more the quality of the data so we have a lot of medical systems all producing those data and how do we combine them and and yeah get the data fair so findable accessible interoperable and reusable uh for research uh purposes so i think that's the main challenge the quality of the data yeah very common themes that we hear from from other customers i wonder if you could paint a picture of your environment and maybe you can share where hpe solutions fit in what what value they bring to your organization's mission yeah i think it brings a lot of flexibility so what we did with hpe is that we we developed a software-defined data center and then a virtual workplace for our researchers and doctors and that's based on the hpe infrastructure and what we wanted to build is something that expect the needs of doctors and nurses but also the researchers and the two kind of different blood groups blood groups and with different needs so uh but we wanted to create one infrastructure because we wanted to make the connection between the hospital and the research that's that's more important so um hpe helped helped us not only with the the infrastructure itself but also designing the whole architecture of it and for example what we did is we we bought a lot of hardware and and and the hardware is really uh doing his his job between nine till five uh dennis everything is working within everyone is working within the institution but all the other time in evening and and nights hours and also the redundant environment we have for the for our healthcare uh that doesn't do nothing of much more or less uh in in those uh dark hours so what we created together with nvidia and hpe and vmware is that we we call it video by day compute by night so we reuse those those servers and those gpu capacity for computational research jobs within the research that's you mentioned flexibility for this genius and and so we're talking you said you know a lot of hard ways they're probably proliant i think synergy aruba networking is in there how are you using this environment actually the question really is when you think about nki's digital transformation i mean is this sort of the fundamental platform that you're using is it a maybe you could describe that yeah it's it's the fundamental platform to to to work on and and and what we see is that we have we have now everything in place for it but the real challenge is is the next steps we are in so we have a a software defined data center we are cloud ready so the next steps is to to make the connection to the cloud to to give more automation to our researchers so they don't have to wait a couple of weeks for it to do it but they can do it themselves with a couple of clicks so i think the basic is we are really flexible and we have a lot of opportunities for automation for example but the next step is uh to create that business value uh really for for our uh employees that's a great story and a very important mission really fascinating stuff thanks for sharing this with our audience today really appreciate your time thank you very much okay this is dave vellante with thecube stay right there for more great content you're watching accelerating next from hpe i'm really glad to have you with us today john i know you stepped out of vacation so thanks very much for joining us neil it's great to be joining you from hawaii and i love the partnership with hpe and the way you're reinventing an industry well you've always excelled john at catching market transitions and there are so many transitions and paradigm shifts happening in the market and tech specifically right now as you see companies rush to accelerate their transformation what do you see as the keys to success well i i think you're seeing actually an acceleration following the covet challenges that all of us faced and i wasn't sure that would happen it's probably at three times the paces before there was a discussion point about how quickly the companies need to go digital uh that's no longer a discussion point almost all companies are moving with tremendous feed on digital and it's the ability as the cloud moves to the edge with compute and security uh at the edge and how you deliver these services to where the majority of applications uh reside are going to determine i think the future of the next generation company leadership and it's the area that neil we're working together on in many many ways so i think it's about innovation it's about the cloud moving to the edge and an architectural play with silicon to speed up that innovation yes we certainly see our customers of all sizes trying to accelerate what's next and get that digital transformation moving even faster as a result of the environment that we're all living in and we're finding that workload focus is really key uh customers in all kinds of different scales are having to adapt and support the remote workforces with vdi and as you say john they're having to deal with the deployment of workloads at the edge with so much data getting generated at the edge and being acted upon at the edge the analytics and the infrastructure to manage that as these processes get digitized and automated is is so important for so many workflows we really believe that the choice of infrastructure partner that underpins those transformations really matters a partner that can help create the financial capacity that can help optimize your environments and enable our customers to focus on supporting their business are all super key to success and you mentioned that in the last year there's been a lot of rapid course correction for all of us a demand for velocity and the ability to deploy resources at scale is more and more needed maybe more than ever what are you hearing customers looking for as they're rolling out their digital transformation efforts well i think they're being realistic that they're going to have to move a lot faster than before and they're also realistic on core versus context they're they're their core capability is not the technology of themselves it's how to deploy it and they're we're looking for partners that can help bring them there together but that can also innovate and very often the leaders who might have been a leader in a prior generation may not be on this next move hence the opportunity for hpe and startups like vinsano to work together as the cloud moves the edge and perhaps really balance or even challenge some of the big big incumbents in this category as well as partners uniquely with our joint customers on how do we achieve their business goals tell me a little bit more about how you move from this being a technology positioning for hpe to literally helping your customers achieve their outcomes they want and and how are you changing hpe in that way well i think when you consider these transformations the infrastructure that you choose to underpin it is incredibly critical our customers need a software-defined management plan that enables them to automate so much of their infrastructure they need to be able to take faster action where the data is and to do all of this in a cloud-like experience where they can deliver their infrastructure as code anywhere from exascale through the enterprise data center to the edge and really critically they have to be able to do this securely which becomes an ever increasing challenge and doing it at the right economics relative to their alternatives and part of the right economics of course includes adopting the best practices from web scale architectures and bringing them to the heart of the enterprise and in our partnership with pensando we're working to enable these new ideas of web scale architecture and fleet management for the enterprise at scale you know what is fun is hpe has an unusual talent from the very beginning in silicon valley of working together with others and creating a win-win innovation approach if you watch what your team has been able to do and i want to say this for everybody listening you work with startups better than any other company i've seen in terms of how you do win win together and pinsando is just the example of that uh this startup which by the way is the ninth time i have done with this team a new generation of products and we're designing that together with hpe in terms of as the cloud moves to the edge how do we get the leverage out of that and produce the results for your customers on this to give the audience appeal for it you're talking with pensano alone in terms of the efficiency versus an amazon amazon web services of an order of magnitude i'm not talking 100 greater i'm talking 10x greater and things from throughput number of connections you do the jitter capability etc and it talks how two companies uniquely who believe in innovation and trust each other and have very similar cultures can work uniquely together on it how do you bring that to life with an hpe how do you get your company to really say let's harvest the advantages of your ecosystem in your advantages of startups well as you say more and more companies are faced with these challenges of hitting the right economics for the infrastructure and we see many enterprises of various sizes trying to come to terms with infrastructures that look a lot more like a service provider that require that software-defined management plane and the automation to deploy at scale and with the work we're doing with pinsando the benefits that we bring in terms of the observability and the telemetry and the encryption and the distributed network functions but also a security architecture that enables that efficiency on the individual nodes is just so key to building a competitive architecture moving forwards for an on-prem private cloud or internal service provider operation and we're really excited about the work we've done to bring that technology across our portfolio and bring that to our customers so that they can achieve those kind of economics and capabilities and go focus on their own transformations rather than building and running the infrastructure themselves artisanally and having to deal with integrating all of that great technology themselves makes tremendous sense you know neil you and i work on a board together et cetera i've watched your summarization skills and i always like to ask the question after you do a quick summary like this what are the three or four takeaways we would like for the audience to get out of our conversation well that's a great question thanks john we believe that customers need a trusted partner to work through these digital transformations that are facing them and confront the challenge of the time that the covet crisis has taken away as you said up front every organization is having to transform and transform more quickly and more digitally and working with a trusted partner with the expertise that only comes from decades of experience is a key enabler for that a partner with the ability to create the financial capacity to transform the workload expertise to get more from the infrastructure and optimize the environment so that you can focus on your own business a partner that can deliver the systems and the security and the automation that makes it easily deployable and manageable anywhere you need them at any scale whether the edge the enterprise data center or all the way up to exascale in high performance computing and can do that all as a service as we can at hpe through hpe green lake enabling our customers most critical workloads it's critical that all of that is underpinned by an ai powered digitally enabled service experience so that our customers can get on with their transformation and running their business instead of dealing with their infrastructure and really only hpe can provide this combination of capabilities and we're excited and committed to helping our customers accelerate what's next for their businesses neil it's fun i i love being your partner and your wingman our values and cultures are so similar thanks for letting me be a part of this discussion today thanks for being with us john it was great having you here oh it's friends for life okay now we're going to dig into the world of video which accounts for most of the data that we store and requires a lot of intense processing capabilities to stream here with me is jim brickmeyer who's the chief marketing and product officer at vlasics jim good to see you good to see you as well so tell us a little bit more about velocity what's your role in this tv streaming world and maybe maybe talk about your ideal customer sure sure so um we're leading provider of carrier great video solutions video streaming solutions and advertising uh technology to service providers around the globe so we primarily sell software-based solutions to uh cable telco wireless providers and broadcasters that are interested in launching their own um video streaming services to consumers yeah so this is this big time you know we're not talking about mom and pop you know a little video outfit but but maybe you can help us understand that and just the sheer scale of of the tv streaming that you're doing maybe relate it to you know the overall internet usage how much traffic are we talking about here yeah sure so uh yeah so our our customers tend to be some of the largest um network service providers around the globe uh and if you look at the uh the video traffic um with respect to the total amount of traffic that that goes through the internet video traffic accounts for about 90 of the total amount of data that uh that traverses the internet so video is uh is a pretty big component of um of how people when they look at internet technologies they look at video streaming technologies uh you know this is where we we focus our energy is in carrying that traffic as efficiently as possible and trying to make sure that from a consumer standpoint we're all consumers of video and uh make sure that the consumer experience is a high quality experience that you don't experience any glitches and that that ultimately if people are paying for that content that they're getting the value that they pay for their for their money uh in their entertainment experience i think people sometimes take it for granted it's like it's like we we all forget about dial up right those days are long gone but the early days of video was so jittery and restarting and and the thing too is that you know when you think about the pandemic and the boom in streaming that that hit you know we all sort of experienced that but the service levels were pretty good i mean how much how much did the pandemic affect traffic what kind of increases did you see and how did that that impact your business yeah sure so uh you know obviously while it was uh tragic to have a pandemic and have people locked down what we found was that when people returned to their homes what they did was they turned on their their television they watched on on their mobile devices and we saw a substantial increase in the amount of video streaming traffic um over service provider networks so what we saw was on the order of 30 to 50 percent increase in the amount of data that was traversing those networks so from a uh you know from an operator's standpoint a lot more traffic a lot more challenging to to go ahead and carry that traffic a lot of work also on our behalf and trying to help operators prepare because we could actually see geographically as the lockdowns happened [Music] certain areas locked down first and we saw that increase so we were able to help operators as as all the lockdowns happened around the world we could help them prepare for that increase in traffic i mean i was joking about dial-up performance again in the early days of the internet if your website got fifty percent more traffic you know suddenly you were you your site was coming down so so that says to me jim that architecturally you guys were prepared for that type of scale so maybe you could paint a picture tell us a little bit about the solutions you're using and how you differentiate yourself in your market to handle that type of scale sure yeah so we so we uh we really are focused on what we call carrier grade solutions which are designed for that massive amount of scale um so we really look at it you know at a very granular level when you look um at the software and and performance capabilities of the software what we're trying to do is get as many streams as possible out of each individual piece of hardware infrastructure so that we can um we can optimize first of all maximize the uh the efficiency of that device make sure that the costs are very low but one of the other challenges is as you get to millions and millions of streams and that's what we're delivering on a daily basis is millions and millions of video streams that you have to be able to scale those platforms out um in an effective in a cost effective way and to make sure that it's highly resilient as well so we don't we don't ever want a consumer to have a circumstance where a network glitch or a server issue or something along those lines causes some sort of uh glitch in their video and so there's a lot of work that we do in the software to make sure that it's a very very seamless uh stream and that we're always delivering at the very highest uh possible bit rate for consumers so that if you've got that giant 4k tv that we're able to present a very high resolution picture uh to those devices and what's the infrastructure look like underneath you you're using hpe solutions where do they fit in yeah that's right yeah so we uh we've had a long-standing partnership with hpe um and we work very closely with them to try to identify the specific types of hardware that are ideal for the the type of applications that we run so we run video streaming applications and video advertising applications targeted kinds of video advertising technologies and when you look at some of these applications they have different types of requirements in some cases it's uh throughput where we're taking a lot of data in and streaming a lot of data out in other cases it's storage where we have to have very high density high performance storage systems in other cases it's i gotta have really high capacity storage but the performance does not need to be quite as uh as high from an io perspective and so we work very closely with hpe on trying to find exactly the right box for the right application and then beyond that also talking with our customers to understand there are different maintenance considerations associated with different types of hardware so we tend to focus on as much as possible if we're going to place servers deep at the edge of the network we will make everything um maintenance free or as maintenance free as we can make it by putting very high performance solid state storage into those servers so that uh we we don't have to physically send people to those sites to uh to do any kind of maintenance so it's a it's a very cooperative relationship that we have with hpe to try to define those boxes great thank you for that so last question um maybe what the future looks like i love watching on my mobile device headphones in no distractions i'm getting better recommendations how do you see the future of tv streaming yeah so i i think the future of tv streaming is going to be a lot more personal right so uh this is what you're starting to see through all of the services that are out there is that most of the video service providers whether they're online providers or they're your traditional kinds of paid tv operators is that they're really focused on the consumer and trying to figure out what is of value to you personally in the past it used to be that services were one size fits all and um and so everybody watched the same program right at the same time and now that's uh that's we have this technology that allows us to deliver different types of content to people on different screens at different times and to advertise to those individuals and to cater to their individual preferences and so using that information that we have about how people watch and and what people's interests are we can create a much more engaging and compelling uh entertainment experience on all of those screens and um and ultimately provide more value to consumers awesome story jim thanks so much for keeping us helping us just keep entertained during the pandemic i really appreciate your time sure thanks all right keep it right there everybody you're watching hpes accelerating next first of all pat congratulations on your new role as intel ceo how are you approaching your new role and what are your top priorities over your first few months thanks antonio for having me it's great to be here with you all today to celebrate the launch of your gen 10 plus portfolio and the long history that our two companies share in deep collaboration to deliver amazing technology to our customers together you know what an exciting time it is to be in this industry technology has never been more important for humanity than it is today everything is becoming digital and driven by what i call the four key superpowers the cloud connectivity artificial intelligence and the intelligent edge they are super powers because each expands the impact of the others and together they are reshaping every aspect of our lives and work in this landscape of rapid digital disruption intel's technology and leadership products are more critical than ever and we are laser focused on bringing to bear the depth and breadth of software silicon and platforms packaging and process with at scale manufacturing to help you and our customers capitalize on these opportunities and fuel their next generation innovations i am incredibly excited about continuing the next chapter of a long partnership between our two companies the acceleration of the edge has been significant over the past year with this next wave of digital transformation we expect growth in the distributed edge and age build out what are you seeing on this front like you said antonio the growth of edge computing and build out is the next key transition in the market telecommunications service providers want to harness the potential of 5g to deliver new services across multiple locations in real time as we start building solutions that will be prevalent in a 5g digital environment we will need a scalable flexible and programmable network some use cases are the massive scale iot solutions more robust consumer devices and solutions ar vr remote health care autonomous robotics and manufacturing environments and ubiquitous smart city solutions intel and hp are partnering to meet this new wave head on for 5g build out and the rise of the distributed enterprise this build out will enable even more growth as businesses can explore how to deliver new experiences and unlock new insights from the new data creation beyond the four walls of traditional data centers and public cloud providers network operators need to significantly increase capacity and throughput without dramatically growing their capital footprint their ability to achieve this is built upon a virtualization foundation an area of intel expertise for example we've collaborated with verizon for many years and they are leading the industry and virtualizing their entire network from the core the edge a massive redesign effort this requires advancements in silicon and power management they expect intel to deliver the new capabilities in our roadmap so ecosystem partners can continue to provide innovative and efficient products with this optimization for hybrid we can jointly provide a strong foundation to take on the growth of data-centric workloads for data analytics and ai to build and deploy models faster to accelerate insights that will deliver additional transformation for organizations of all types the network transformation journey isn't easy we are continuing to unleash the capabilities of 5g and the power of the intelligent edge yeah the combination of the 5g built out and the massive new growth of data at the edge are the key drivers for the age of insight these new market drivers offer incredible new opportunities for our customers i am excited about recent launch of our new gen 10 plus portfolio with intel together we are laser focused on delivering joint innovation for customers that stretches from the edge to x scale how do you see new solutions that this helping our customers solve the toughest challenges today i talked earlier about the superpowers that are driving the rapid acceleration of digital transformation first the proliferation of the hybrid cloud is delivering new levels of efficiency and scale and the growth of the cloud is democratizing high-performance computing opening new frontiers of knowledge and discovery next we see ai and machine learning increasingly infused into every application from the edge to the network to the cloud to create dramatically better insights and the rapid adoption of 5g as i talked about already is fueling new use cases that demand lower latencies and higher bandwidth this in turn is pushing computing to the edge closer to where the data is created and consumed the confluence of these trends is leading to the biggest and fastest build out of computing in human history to keep pace with this rapid digital transformation we recognize that infrastructure has to be built with the flexibility to support a broad set of workloads and that's why over the last several years intel has built an unmatched portfolio to deliver every component of intelligent silicon our customers need to move store and process data from the cpus to fpgas from memory to ssds from ethernet to switch silicon to silicon photonics and software our 3rd gen intel xeon scalable processors and our data centric portfolio deliver new core performance and higher bandwidth providing our customers the capabilities they need to power these critical workloads and we love seeing all the unique ways customers like hpe leverage our technology and solution offerings to create opportunities and solve their most pressing challenges from cloud gaming to blood flow to brain scans to financial market security the opportunities are endless with flexible performance i am proud of the amazing innovation we are bringing to support our customers especially as they respond to new data-centric workloads like ai and analytics that are critical to digital transformation these new requirements create a need for compute that's warlord optimized for performance security ease of use and the economics of business now more than ever compute matters it is the foundation for this next wave of digital transformation by pairing our compute with our software and capabilities from hp green lake we can support our customers as they modernize their apps and data quickly they seamlessly and securely scale them anywhere at any size from edge to x scale but thank you for joining us for accelerating next today i know our audience appreciated hearing your perspective on the market and how we're partnering together to support their digital transformation journey i am incredibly excited about what lies ahead for hp and intel thank you thank you antonio great to be with you today we just compressed about a decade of online commerce progress into about 13 or 14 months so now we're going to look at how one retailer navigated through the pandemic and what the future of their business looks like and with me is alan jensen who's the chief information officer and senior vice president of the sawing group hello alan how are you fine thank you good to see you hey look you know when i look at the 100 year history plus of your company i mean it's marked by transformations and some of them are quite dramatic so you're denmark's largest retailer i wonder if you could share a little bit more about the company its history and and how it continues to improve the customer experience well at the same time keeping costs under control so vital in your business yeah yeah the company founded uh approximately 100 years ago with a department store in in oahu's in in denmark and i think in the 60s we founded the first supermarket in in denmark with the self-service and combined textile and food in in the same store and in beginning 70s we founded the first hyper market in in denmark and then the this calendar came from germany early in in 1980 and we started a discount chain and so we are actually building department store in hyber market info in in supermarket and in in the discount sector and today we are more than 1 500 stores in in three different countries in in denmark poland and germany and especially for the danish market we have a approximately 38 markets here and and is the the leader we have over the last 10 years developed further into online first in non-food and now uh in in food with home delivery with click and collect and we have done some magnetism acquisition in in the convenience with mailbox solutions to our customers and we have today also some restaurant burger chain and and we are running the starbuck in denmark so i can you can see a full plate of different opportunities for our customer in especially denmark it's an awesome story and of course the founder's name is still on the masthead what a great legacy now of course the pandemic is is it's forced many changes quite dramatic including the the behaviors of retail customers maybe you could talk a little bit about how your digital transformation at the sawing group prepared you for this shift in in consumption patterns and any other challenges that that you faced yeah i think uh luckily as for some of the you can say the core it solution in in 19 we just roll out using our computers via direct access so you can work from anywhere whether you are traveling from home and so on we introduced a new agile scrum delivery model and and we just finalized the rolling out teams in in in january february 20 and that was some very strong thing for suddenly moving all our employees from from office to to home and and more or less overnight we succeed uh continuing our work and and for it we have not missed any deadline or task for the business in in 2020 so i think that was pretty awesome to to see and for the business of course the pandemic changed a lot as the change in customer behavior more or less overnight with plus 50 80 on the online solution forced us to do some different priorities so we were looking at the food home delivery uh and and originally expected to start rolling out in in 2022 uh but took a fast decision in april last year to to launch immediately and and we have been developing that uh over the last eight months and has been live for the last three months now in the market so so you can say the pandemic really front loaded some of our strategic actions for for two to three years uh yeah that was very exciting what's that uh saying luck is the byproduct of great planning and preparation so let's talk about when you're in a company with some strong financial situation that you can move immediately with investment when you take such decision then then it's really thrilling yeah right awesome um two-part question talk about how you leverage data to support the solid groups mission and you know drive value for customers and maybe you could talk about some of the challenges you face with just the amount of data the speed of data et cetera yeah i said data is everything when you are in retail as a retailer's detail as you need to monitor your operation down to each store eats department and and if you can say we have challenge that that is that data is just growing rapidly as a year by year it's growing more and more because you are able to be more detailed you're able to capture more data and for a company like ours we need to be updated every morning as a our fully updated sales for all unit department single sku selling in in the stores is updated 3 o'clock in the night and send out to all top management and and our managers all over the company it's actually 8 000 reports going out before six o'clock every day in the morning we have introduced a loyalty program and and you are capturing a lot of data on on customer behavior what is their preferred offers what is their preferred time in the week for buying different things and all these data is now used to to personalize our offers to our cost of value customers so we can be exactly hitting the best time and and convert it to sales data is also now used for what we call intelligent price reductions as a so instead of just reducing prices with 50 if it's uh close to running out of date now the system automatically calculate whether a store has just enough to to finish with full price before end of day or actually have much too much and and need to maybe reduce by 80 before as being able to sell so so these automated [Music] solutions built on data is bringing efficiency into our operation wow you make it sound easy these are non-trivial items so congratulations on that i wonder if we could close hpe was kind enough to introduce us tell us a little bit about the infrastructure the solutions you're using how they differentiate you in the market and i'm interested in you know why hpe what distinguishes them why the choice there yeah as a when when you look out a lot is looking at moving data to the cloud but we we still believe that uh due to performance due to the availability uh more or less on demand we we still don't see the cloud uh strong enough for for for selling group uh capturing all our data we have been quite successfully having one data truth across the whole con company and and having one just one single bi solution and having that huge amount of data i think we have uh one of the 10 largest sub business warehouses in global and but on the other hand we also want to be agile and want to to scale when needed so getting close to a cloud solution we saw it be a green lake as a solution getting close to the cloud but still being on-prem and could deliver uh what we need to to have a fast performance on on data but still in a high quality and and still very secure for us to run great thank you for that and thank alan thanks so much for your for your time really appreciate your your insights and your congratulations on the progress and best of luck in the future thank you all right keep it right there we have tons more content coming you're watching accelerating next from hpe [Music] welcome lisa and thank you for being here with us today antonio it's wonderful to be here with you as always and congratulations on your launch very very exciting for you well thank you lisa and we love this partnership and especially our friendship which has been very special for me for the many many years that we have worked together but i wanted to have a conversation with you today and obviously digital transformation is a key topic so we know the next wave of digital transformation is here being driven by massive amounts of data an increasingly distributed world and a new set of data intensive workloads so how do you see world optimization playing a role in addressing these new requirements yeah no absolutely antonio and i think you know if you look at the depth of our partnership over the last you know four or five years it's really about bringing the best to our customers and you know the truth is we're in this compute mega cycle right now so it's amazing you know when i know when you talk to customers when we talk to customers they all need to do more and and frankly compute is becoming quite specialized so whether you're talking about large enterprises or you're talking about research institutions trying to get to the next phase of uh compute so that workload optimization that we're able to do with our processors your system design and then you know working closely with our software partners is really the next wave of this this compute cycle so thanks lisa you talk about mega cycle so i want to make sure we take a moment to celebrate the launch of our new generation 10 plus compute products with the latest announcement hp now has the broadest amd server portfolio in the industry spanning from the edge to exascale how important is this partnership and the portfolio for our customers well um antonio i'm so excited first of all congratulations on your 19 world records uh with uh milan and gen 10 plus it really is building on you know sort of our you know this is our third generation of partnership with epic and you know you are with me right at the very beginning actually uh if you recall you joined us in austin for our first launch of epic you know four years ago and i think what we've created now is just an incredible portfolio that really does go across um you know all of the uh you know the verticals that are required we've always talked about how do we customize and make things easier for our customers to use together and so i'm very excited about your portfolio very excited about our partnership and more importantly what we can do for our joint customers it's amazing to see 19 world records i think i'm really proud of the work our joint team do every generation raising the bar and that's where you know we we think we have a shared goal of ensuring that customers get the solution the services they need any way they want it and one way we are addressing that need is by offering what we call as a service delivered to hp green lake so let me ask a question what feedback are you hearing from your customers with respect to choice meaning consuming as a service these new solutions yeah now great point i think first of all you know hpe green lake is very very impressive so you know congratulations um to uh to really having that solution and i think we're hearing the same thing from customers and you know the truth is the compute infrastructure is getting more complex and everyone wants to be able to deploy sort of the right compute at the right price point um you know in in terms of also accelerating time to deployment with the right security with the right quality and i think these as a service offerings are going to become more and more important um as we go forward in the compute uh you know capabilities and you know green lake is a leadership product offering and we're very very you know pleased and and honored to be part of it yeah we feel uh lisa we are ahead of the competition and um you know you think about some of our competitors now coming with their own offerings but i think the ability to drive joint innovation is what really differentiate us and that's why we we value the partnership and what we have been doing together on giving the customers choice finally you know i know you and i are both incredibly excited about the joint work we're doing with the us department of energy the oak ridge national laboratory we think about large data sets and you know and the complexity of the analytics we're running but we both are going to deliver the world's first exascale system which is remarkable to me so what this milestone means to you and what type of impact do you think it will make yes antonio i think our work with oak ridge national labs and hpe is just really pushing the envelope on what can be done with computing and if you think about the science that we're going to be able to enable with the first exascale machine i would say there's a tremendous amount of innovation that has already gone in to the machine and we're so excited about delivering it together with hpe and you know we also think uh that the super computing technology that we're developing you know at this broad scale will end up being very very important for um you know enterprise compute as well and so it's really an opportunity to kind of take that bleeding edge and really deploy it over the next few years so super excited about it i think you know you and i have a lot to do over the uh the next few months here but it's an example of the great partnership and and how much we're able to do when we put our teams together um to really create that innovation i couldn't agree more i mean this is uh an incredible milestone for for us for our industry and honestly for the country in many ways and we have many many people working 24x7 to deliver against this mission and it's going to change the future of compute no question about it and then honestly put it to work where we need it the most to advance life science to find cures to improve the way people live and work but lisa thank you again for joining us today and thank you more most importantly for the incredible partnership and and the friendship i really enjoy working with you and your team and together i think we can change this industry once again so thanks for your time today thank you so much antonio and congratulations again to you and the entire hpe team for just a fantastic portfolio launch thank you okay well some pretty big hitters in those keynotes right actually i have to say those are some of my favorite cube alums and i'll add these are some of the execs that are stepping up to change not only our industry but also society and that's pretty cool and of course it's always good to hear from the practitioners the customer discussions have been great so far today now the accelerating next event continues as we move to a round table discussion with krista satrathwaite who's the vice president and gm of hpe core compute and krista is going to share more details on how hpe plans to help customers move ahead with adopting modern workloads as part of their digital transformations krista will be joined by hpe subject matter experts chris idler who's the vp and gm of the element and mark nickerson director of solutions product management as they share customer stories and advice on how to turn strategy into action and realize results within your business thank you for joining us for accelerate next event i hope you're enjoying it so far i know you've heard about the industry challenges the i.t trends hpe strategy from leaders in the industry and so today what we want to do is focus on going deep on workload solutions so in the most important workload solutions the ones we always get asked about and so today we want to share with you some best practices some examples of how we've helped other customers and how we can help you all right with that i'd like to start our panel now and introduce chris idler who's the vice president and general manager of the element chris has extensive uh solution expertise he's led hpe solution engineering programs in the past welcome chris and mark nickerson who is the director of product management and his team is responsible for solution offerings making sure we have the right solutions for our customers welcome guys thanks for joining me thanks for having us krista yeah so i'd like to start off with one of the big ones the ones that we get asked about all the time what we've been all been experienced in the last year remote work remote education and all the challenges that go along with that so let's talk a little bit about the challenges that customers have had in transitioning to this remote work and remote education environment uh so i i really think that there's a couple of things that have stood out for me when we're talking with customers about vdi first obviously there was a an unexpected and unprecedented level of interest in that area about a year ago and we all know the reasons why but what it really uncovered was how little planning had gone into this space around a couple of key dynamics one is scale it's one thing to say i'm going to enable vdi for a part of my workforce in a pre-pandemic environment where the office was still the the central hub of activity for work uh it's a completely different scale when you think about okay i'm going to have 50 60 80 maybe 100 of my workforce now distributed around the globe um whether that's in an educational environment where now you're trying to accommodate staff and students in virtual learning uh whether that's uh in the area of things like uh formula one racing where we had uh the desire to still have events going on but the need for a lot more social distancing not as many people able to be trackside but still needing to have that real-time experience this really manifested in a lot of ways and scale was something that i think a lot of customers hadn't put as much thought into initially the other area is around planning for experience a lot of times the vdi experience was planned out with very specific workloads or very specific applications in mind and when you take it to a more broad-based environment if we're going to support multiple functions multiple lines of business there hasn't been as much planning or investigation that's gone into the application side and so thinking about how graphically intense some applications are one customer that comes to mind would be tyler isd who did a fairly large roll out pre-pandemic and as part of their big modernization effort what they uncovered was even just changes in standard windows applications had become so much more graphically intense with windows 10 with the latest updates with programs like adobe that they were really needing to have an accelerated experience for a much larger percentage of their install base than than they had counted on so in addition to planning for scale you also need to have that visibility into what are the actual applications that are going to be used by these remote users how graphically intense those might be what's the login experience going to be as well as the operating experience and so really planning through that experience side as well as the scale and the number of users uh is is kind of really two of the biggest most important things that i've seen yeah mark i'll i'll just jump in real quick i think you you covered that pretty comprehensively there and and it was well done the couple of observations i've made one is just that um vdi suddenly become like mission critical for sales it's the front line you know for schools it's the classroom you know that this isn't a cost cutting measure or a optimization nit measure anymore this is about running the business in a way it's a digital transformation one aspect of about a thousand aspects of what does it mean to completely change how your business does and i think what that translates to is that there's no margin for error right you really need to deploy this in a way that that performs that understands what you're trying to use it for that gives that end user the experience that they expect on their screen or on their handheld device or wherever they might be whether it's a racetrack classroom or on the other end of a conference call or a boardroom right so what we do in in the engineering side of things when it comes to vdi or really understand what's a tech worker what's a knowledge worker what's a power worker what's a gp really going to look like what's time of day look like you know who's using it in the morning who's using it in the evening when do you power up when do you power down does the system behave does it just have the it works function and what our clients can can get from hpe is um you know a worldwide set of experiences that we can apply to making sure that the solution delivers on its promises so we're seeing the same thing you are krista you know we see it all the time on vdi and on the way businesses are changing the way they do business yeah and it's funny because when i talk to customers you know one of the things i heard that was a good tip is to roll it out to small groups first so you could really get a good sense of what the experience is before you roll it out to a lot of other people and then the expertise it's not like every other workload that people have done before so if you're new at it make sure you're getting the right advice expertise so that you're doing it the right way okay one of the other things we've been talking a lot about today is digital transformation and moving to the edge so now i'd like to shift gears and talk a little bit about how we've helped customers make that shift and this time i'll start with chris all right hey thanks okay so you know it's funny when it comes to edge because um the edge is different for for every customer in every client and every single client that i've ever spoken to of hp's has an edge somewhere you know whether just like we were talking about the classroom might be the edge but but i think the industry when we're talking about edge is talking about you know the internet of things if you remember that term from not to not too long ago you know and and the fact that everything's getting connected and how do we turn that into um into telemetry and and i think mark's going to be able to talk through a couple of examples of clients that we have in things like racing and automotive but what we're learning about edge is it's not just how do you make the edge work it's how do you integrate the edge into what you're already doing and nobody's just the edge right and and so if it's if it's um ai mldl there's that's one way you want to use the edge if it's a customer experience point of service it's another you know there's yet another way to use the edge so it turns out that having a broad set of expertise like hpe does to be able to understand the different workloads that you're trying to tie together including the ones that are running at the at the edge often it involves really making sure you understand the data pipeline you know what information is at the edge how does it flow to the data center how does it flow and then which data center uh which private cloud which public cloud are you using i think those are the areas where where we really sort of shine is that we we understand the interconnectedness of these things and so for example red bull and i know you're going to talk about that in a minute mark um uh the racing company you know for them the the edge is the racetrack and and you know milliseconds or partial seconds winning and losing races but then there's also an edge of um workers that are doing the design for for the cars and how do they get quick access so um we have a broad variety of infrastructure form factors and compute form factors to help with the edge and this is another real advantage we have is that we we know how to put the right piece of equipment with the right software we also have great containerized software with our esmeral container platform so we're really becoming um a perfect platform for hosting edge-centric workloads and applications and data processing yeah it's uh all the way down to things like our superdome flex in the background if you have some really really really big data that needs to be processed and of course our workhorse proliance that can be configured to support almost every um combination of workload you have so i know you started with edge krista but but and we're and we nail the edge with those different form factors but let's make sure you know if you're listening to this this show right now um make sure you you don't isolate the edge and make sure they integrate it with um with the rest of your operation mark you know what did i miss yeah to that point chris i mean and this kind of actually ties the two things together that we've been talking about here but the edge uh has become more critical as we have seen more work moving to the edge as where we do work changes and evolves and the edge has also become that much more closer because it has to be that much more connected um to your point uh talking about where that edge exists that edge can be a lot of different places but the one commonality really is that the edge is is an area where work still needs to get accomplished it can't just be a collection point and then everything gets shipped back to a data center or back to some some other area for the work it's where the work actually needs to get done whether that's edge work in a use case like vdi or whether that's edge work in the case of doing real-time analytics you mentioned red bull racing i'll i'll bring that up i mean you talk about uh an area where time is of the essence everything about that sport comes down to time you're talking about wins and losses that are measured as you said in milliseconds and that applies not just to how performance is happening on the track but how you're able to adapt and modify the needs of the car uh adapt to the evolving conditions on the track itself and so when you talk about putting together a solution for an edge like that you're right it can't just be here's a product that's going to allow us to collect data ship it back someplace else and and wait for it to be processed in a couple of days you have to have the ability to analyze that in real time when we pull together a solution involving our compute products our storage products our networking products when we're able to deliver that full package solution at the edge what you see are results like a 50 decrease in processing time to make real-time analytic decisions about configurations for the car and adapting to to real-time uh test and track conditions yeah really great point there um and i really love the example of edge and racing because i mean that is where it all every millisecond counts um and so important to process that at the edge now switching gears just a little bit let's talk a little bit about some examples of how we've helped customers when it comes to business agility and optimizing their workload for maximum outcome for business agility let's talk about some things that we've done to help customers with that mark yeah give it a shot so when we when we think about business agility what you're really talking about is the ability to to implement on the fly to be able to scale up to scale down the ability to adapt to real time changing situations and i think the last year has been has been an excellent example of exactly how so many businesses have been forced to do that i think one of the areas that that i think we've probably seen the most ability to help with customers in that agility area is around the space of private and hybrid clouds if you take a look at the need that customers have to to be able to migrate workloads and migrate data between public cloud environments app development environments that may be hosted on-site or maybe in the cloud the ability to move out of development and into production and having the agility to then scale those application rollouts up having the ability to have some of that some of that private cloud flexibility in addition to a public cloud environment is something that is becoming increasingly crucial for a lot of our customers all right well i we could keep going on and on but i'll stop it there uh thank you so much uh chris and mark this has been a great discussion thanks for sharing how we helped other customers and some tips and advice for approaching these workloads i thank you all for joining us and remind you to look at the on-demand sessions if you want to double click a little bit more into what we've been covering all day today you can learn a lot more in those sessions and i thank you for your time thanks for tuning in today many thanks to krista chris and mark we really appreciate you joining today to share how hpe is partnering to facilitate new workload adoption of course with your customers on their path to digital transformation now to round out our accelerating next event today we have a series of on-demand sessions available so you can explore more details around every step of that digital transformation from building a solid infrastructure strategy identifying the right compute and software to rounding out your solutions with management and financial support so please navigate to the agenda at the top of the page to take a look at what's available i just want to close by saying that despite the rush to digital during the pandemic most businesses they haven't completed their digital transformations far from it 2020 was more like a forced march than a planful strategy but now you have some time you've adjusted to this new abnormal and we hope the resources that you find at accelerating next will help you on your journey best of luck to you and be well [Music] [Applause] [Music] 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