(light music) >> Hi everybody. Welcome to this Cube Conversation. I'm really pleased to announce a collaboration with Rob Strechay. He's a guest cube analyst, and we'll be working together to extract the signal from the noise. Rob is a long-time product pro, working at a number of firms including AWS, HP, HPE, NetApp, Snowplow. I did a stint as an analyst at Enterprise Strategy Group. Rob, good to see you. Thanks for coming into our Marlboro Studios. >> Well, thank you for having me. It's always great to be here. >> I'm really excited about working with you. We've known each other for a long time. You've been in the Cube a bunch. You know, you're in between gigs, and I think we can have a lot of fun together. Covering events, covering trends. So. let's get into it. What's happening out there? We're sort of exited the isolation economy. Things were booming. Now, everybody's tapping the brakes. From your standpoint, what are you seeing out there? >> Yeah. I'm seeing that people are really looking how to get more out of their data. How they're bringing things together, how they're looking at the costs of Cloud, and understanding how are they building out their SaaS applications. And understanding that when they go in and actually start to use Cloud, it's not only just using the base services anymore. They're looking at, how do I use these platforms as a service? Some are easier than others, and they're trying to understand, how do I get more value out of that relationship with the Cloud? They're also consolidating the number of Clouds that they have, I would say to try to better optimize their spend, and getting better pricing for that matter. >> Are you seeing people unhook Clouds, or just reduce maybe certain Cloud activities and going maybe instead of 60/40 going 90/10? >> Correct. It's more like the 90/10 type of rule where they're starting to say, Hey I'm not going to get rid of Azure or AWS or Google. I'm going to move a portion of this over that I was using on this one service. Maybe I got a great two-year contract to start with on this platform as a service or a database as a service. I'm going to unhook from that and maybe go with an independent. Maybe with something like a Snowflake or a Databricks on top of another Cloud, so that I can consolidate down. But it also gives them more flexibility as well. >> In our last breaking analysis, Rob, we identified six factors that were reducing Cloud consumption. There were factors and customer tactics. And I want to get your take on this. So, some of the factors really, you got fewer mortgage originations. FinTech, obviously big Cloud user. Crypto, not as much activity there. Lower ad spending means less Cloud. And then one of 'em, which you kind of disagreed with was less, less analytics, you know, fewer... Less frequency of calculations. I'll come back to that. But then optimizing compute using Graviton or AMD instances moving to cheaper storage tiers. That of course makes sense. And then optimize pricing plans. Maybe going from On Demand, you know, to, you know, instead of pay by the drink, buy in volume. Okay. So, first of all, do those make sense to you with the exception? We'll come back and talk about the analytics piece. Is that what you're seeing from customers? >> Yeah, I think so. I think that was pretty much dead on with what I'm seeing from customers and the ones that I go out and talk to. A lot of times they're trying to really monetize their, you know, understand how their business utilizes these Clouds. And, where their spend is going in those Clouds. Can they use, you know, lower tiers of storage? Do they really need the best processors? Do they need to be using Intel or can they get away with AMD or Graviton 2 or 3? Or do they need to move in? And, I think when you look at all of these Clouds, they always have pricing curves that are arcs from the newest to the oldest stuff. And you can play games with that. And understanding how you can actually lower your costs by looking at maybe some of the older generation. Maybe your application was written 10 years ago. You don't necessarily have to be on the best, newest processor for that application per se. >> So last, I want to come back to this whole analytics piece. Last June, I think it was June, Dev Ittycheria, who's the-- I call him Dev. Spelled Dev, pronounced Dave. (chuckles softly) Same pronunciation, different spelling. Dev Ittycheria, CEO of Mongo, on the earnings call. He was getting, you know, hit. Things were starting to get a little less visible in terms of, you know, the outlook. And people were pushing him like... Because you're in the Cloud, is it easier to dial down? And he said, because we're the document database, we support transaction applications. We're less discretionary than say, analytics. Well on the Snowflake earnings call, that same month or the month after, they were all over Slootman and Scarpelli. Oh, the Mongo CEO said that they're less discretionary than analytics. And Snowflake was an interesting comment. They basically said, look, we're the Cloud. You can dial it up, you can dial it down, but the area under the curve over a period of time is going to be the same, because they get their customers to commit. What do you say? You disagreed with the notion that people are running their calculations less frequently. Is that because they're trying to do a better job of targeting customers in near real time? What are you seeing out there? >> Yeah, I think they're moving away from using people and more expensive marketing. Or, they're trying to figure out what's my Google ad spend, what's my Meta ad spend? And what they're trying to do is optimize that spend. So, what is the return on advertising, or the ROAS as they would say. And what they're looking to do is understand, okay, I have to collect these analytics that better understand where are these people coming from? How do they get to my site, to my store, to my whatever? And when they're using it, how do they they better move through that? What you're also seeing is that analytics is not only just for kind of the retail or financial services or things like that, but then they're also, you know, using that to make offers in those categories. When you move back to more, you know, take other companies that are building products and SaaS delivered products. They may actually go and use this analytics for making the product better. And one of the big reasons for that is maybe they're dialing back how many product managers they have. And they're looking to be more data driven about how they actually go and build the product out or enhance the product. So maybe they're, you know, an online video service and they want to understand why people are either using or not using the whiteboard inside the product. And they're collecting a lot of that product analytics in a big way so that they can go through that. And they're doing it in a constant manner. This first party type tracking within applications is growing rapidly by customers. >> So, let's talk about who wins in that. So, obviously the Cloud guys, AWS, Google and Azure. I want to come back and unpack that a little bit. Databricks and Snowflake, we reported on our last breaking analysis, it kind of on a collision course. You know, a couple years ago we were thinking, okay, AWS, Snowflake and Databricks, like perfect sandwich. And then of course they started to become more competitive. My sense is they still, you know, compliment each other in the field, right? But, you know, publicly, they've got bigger aspirations, they get big TAMs that they're going after. But it's interesting, the data shows that-- So, Snowflake was off the charts in terms of spending momentum and our EPR surveys. Our partner down in New York, they kind of came into line. They're both growing in terms of market presence. Databricks couldn't get to IPO. So, we don't have as much, you know, visibility on their financials. You know, Snowflake obviously highly transparent cause they're a public company. And then you got AWS, Google and Azure. And it seems like AWS appears to be more partner friendly. Microsoft, you know, depends on what market you're in. And Google wants to sell BigQuery. >> Yeah. >> So, what are you seeing in the public Cloud from a data platform perspective? >> Yeah. I think that was pretty astute in what you were talking about there, because I think of the three, Google is definitely I think a little bit behind in how they go to market with their partners. Azure's done a fantastic job of partnering with these companies to understand and even though they may have Synapse as their go-to and where they want people to go to do AI and ML. What they're looking at is, Hey, we're going to also be friendly with Snowflake. We're also going to be friendly with a Databricks. And I think that, Amazon has always been there because that's where the market has been for these developers. So, many, like Databricks' and the Snowflake's have gone there first because, you know, Databricks' case, they built out on top of S3 first. And going and using somebody's object layer other than AWS, was not as simple as you would think it would be. Moving between those. >> So, one of the financial meetups I said meetup, but the... It was either the CEO or the CFO. It was either Slootman or Scarpelli talking at, I don't know, Merrill Lynch or one of the other financial conferences said, I think it was probably their Q3 call. Snowflake said 80% of our business goes through Amazon. And he said to this audience, the next day we got a call from Microsoft. Hey, we got to do more. And, we know just from reading the financial statements that Snowflake is getting concessions from Amazon, they're buying in volume, they're renegotiating their contracts. Amazon gets it. You know, lower the price, people buy more. Long term, we're all going to make more money. Microsoft obviously wants to get into that game with Snowflake. They understand the momentum. They said Google, not so much. And I've had customers tell me that they wanted to use Google's AI with Snowflake, but they can't, they got to go to to BigQuery. So, honestly, I haven't like vetted that so. But, I think it's true. But nonetheless, it seems like Google's a little less friendly with the data platform providers. What do you think? >> Yeah, I would say so. I think this is a place that Google looks and wants to own. Is that now, are they doing the right things long term? I mean again, you know, you look at Google Analytics being you know, basically outlawed in five countries in the EU because of GDPR concerns, and compliance and governance of data. And I think people are looking at Google and BigQuery in general and saying, is it the best place for me to go? Is it going to be in the right places where I need it? Still, it's still one of the largest used databases out there just because it underpins a number of the Google services. So you almost get, like you were saying, forced into BigQuery sometimes, if you want to use the tech on top. >> You do strategy. >> Yeah. >> Right? You do strategy, you do messaging. Is it the right call by Google? I mean, it's not a-- I criticize Google sometimes. But, I'm not sure it's the wrong call to say, Hey, this is our ace in the hole. >> Yeah. >> We got to get people into BigQuery. Cause, first of all, BigQuery is a solid product. I mean it's Cloud native and it's, you know, by all, it gets high marks. So, why give the competition an advantage? Let's try to force people essentially into what is we think a great product and it is a great product. The flip side of that is, they're giving up some potential partner TAM and not treating the ecosystem as well as one of their major competitors. What do you do if you're in that position? >> Yeah, I think that that's a fantastic question. And the question I pose back to the companies I've worked with and worked for is, are you really looking to have vendor lock-in as your key differentiator to your service? And I think when you start to look at these companies that are moving away from BigQuery, moving to even, Databricks on top of GCS in Google, they're looking to say, okay, I can go there if I have to evacuate from GCP and go to another Cloud, I can stay on Databricks as a platform, for instance. So I think it's, people are looking at what platform as a service, database as a service they go and use. Because from a strategic perspective, they don't want that vendor locking. >> That's where Supercloud becomes interesting, right? Because, if I can run on Snowflake or Databricks, you know, across Clouds. Even Oracle, you know, they're getting into business with Microsoft. Let's talk about some of the Cloud players. So, the big three have reported. >> Right. >> We saw AWSs Cloud growth decelerated down to 20%, which is I think the lowest growth rate since they started to disclose public numbers. And they said they exited, sorry, they said January they grew at 15%. >> Yeah. >> Year on year. Now, they had some pretty tough compares. But nonetheless, 15%, wow. Azure, kind of mid thirties, and then Google, we had kind of low thirties. But, well behind in terms of size. And Google's losing probably almost $3 billion annually. But, that's not necessarily a bad thing by advocating and investing. What's happening with the Cloud? Is AWS just running into the law, large numbers? Do you think we can actually see a re-acceleration like we have in the past with AWS Cloud? Azure, we predicted is going to be 75% of AWS IAS revenues. You know, we try to estimate IAS. >> Yeah. >> Even though they don't share that with us. That's a huge milestone. You'd think-- There's some people who have, I think, Bob Evans predicted a while ago that Microsoft would surpass AWS in terms of size. You know, what do you think? >> Yeah, I think that Azure's going to keep to-- Keep growing at a pretty good clip. I think that for Azure, they still have really great account control, even though people like to hate Microsoft. The Microsoft sellers that are out there making those companies successful day after day have really done a good job of being in those accounts and helping people. I was recently over in the UK. And the UK market between AWS and Azure is pretty amazing, how much Azure there is. And it's growing within Europe in general. In the states, it's, you know, I think it's growing well. I think it's still growing, probably not as fast as it is outside the U.S. But, you go down to someplace like Australia, it's also Azure. You hear about Azure all the time. >> Why? Is that just because of the Microsoft's software state? It's just so convenient. >> I think it has to do with, you know, and you can go with the reasoning they don't break out, you know, Office 365 and all of that out of their numbers is because they have-- They're in all of these accounts because the office suite is so pervasive in there. So, they always have reasons to go back in and, oh by the way, you're on these old SQL licenses. Let us move you up here and we'll be able to-- We'll support you on the old version, you know, with security and all of these things. And be able to move you forward. So, they have a lot of, I guess you could say, levers to stay in those accounts and be interesting. At least as part of the Cloud estate. I think Amazon, you know, is hitting, you know, the large number. Laws of large numbers. But I think that they're also going through, and I think this was seen in the layoffs that they were making, that they're looking to understand and have profitability in more of those services that they have. You know, over 350 odd services that they have. And you know, as somebody who went there and helped to start yet a new one, while I was there. And finally, it went to beta back in September, you start to look at the fact that, that number of services, people, their own sellers don't even know all of their services. It's impossible to comprehend and sell that many things. So, I think what they're going through is really looking to rationalize a lot of what they're doing from a services perspective going forward. They're looking to focus on more profitable services and bringing those in. Because right now it's built like a layer cake where you have, you know, S3 EBS and EC2 on the bottom of the layer cake. And then maybe you have, you're using IAM, the authorization and authentication in there and you have all these different services. And then they call it EMR on top. And so, EMR has to pay for that entire layer cake just to go and compete against somebody like Mongo or something like that. So, you start to unwind the costs of that. Whereas Azure, went and they build basically ground up services for the most part. And Google kind of falls somewhere in between in how they build their-- They're a sort of layer cake type effect, but not as many layers I guess you could say. >> I feel like, you know, Amazon's trying to be a platform for the ecosystem. Yes, they have their own products and they're going to sell. And that's going to drive their profitability cause they don't have to split the pie. But, they're taking a piece of-- They're spinning the meter, as Ziyas Caravalo likes to say on every time Snowflake or Databricks or Mongo or Atlas is, you know, running on their system. They take a piece of the action. Now, Microsoft does that as well. But, you look at Microsoft and security, head-to-head competitors, for example, with a CrowdStrike or an Okta in identity. Whereas, it seems like at least for now, AWS is a more friendly place for the ecosystem. At the same time, you do a lot of business in Microsoft. >> Yeah. And I think that a lot of companies have always feared that Amazon would just throw, you know, bodies at it. And I think that people have come to the realization that a two pizza team, as Amazon would call it, is eight people. I think that's, you know, two slices per person. I'm a little bit fat, so I don't know if that's enough. But, you start to look at it and go, okay, if they're going to start out with eight engineers, if I'm a startup and they're part of my ecosystem, do I really fear them or should I really embrace them and try to partner closer with them? And I think the smart people and the smart companies are partnering with them because they're realizing, Amazon, unless they can see it to, you know, a hundred million, $500 million market, they're not going to throw eight to 16 people at a problem. I think when, you know, you could say, you could look at the elastic with OpenSearch and what they did there. And the licensing terms and the battle they went through. But they knew that Elastic had a huge market. Also, you had a number of ecosystem companies building on top of now OpenSearch, that are now domain on top of Amazon as well. So, I think Amazon's being pretty strategic in how they're doing it. I think some of the-- It'll be interesting. I think this year is a payout year for the cuts that they're making to some of the services internally to kind of, you know, how do we take the fat off some of those services that-- You know, you look at Alexa. I don't know how much revenue Alexa really generates for them. But it's a means to an end for a number of different other services and partners. >> What do you make of this ChatGPT? I mean, Microsoft obviously is playing that card. You want to, you want ChatGPT in the Cloud, come to Azure. Seems like AWS has to respond. And we know Google is, you know, sharpening its knives to come up with its response. >> Yeah, I mean Google just went and talked about Bard for the first time this week and they're in private preview or I guess they call it beta, but. Right at the moment to select, select AI users, which I have no idea what that means. But that's a very interesting way that they're marketing it out there. But, I think that Amazon will have to respond. I think they'll be more measured than say, what Google's doing with Bard and just throwing it out there to, hey, we're going into beta now. I think they'll look at it and see where do we go and how do we actually integrate this in? Because they do have a lot of components of AI and ML underneath the hood that other services use. And I think that, you know, they've learned from that. And I think that they've already done a good job. Especially for media and entertainment when you start to look at some of the ways that they use it for helping do graphics and helping to do drones. I think part of their buy of iRobot was the fact that iRobot was a big user of RoboMaker, which is using different models to train those robots to go around objects and things like that, so. >> Quick touch on Kubernetes, the whole DevOps World we just covered. The Cloud Native Foundation Security, CNCF. The security conference up in Seattle last week. First time they spun that out kind of like reinforced, you know, AWS spins out, reinforced from reinvent. Amsterdam's coming up soon, the CubeCon. What should we expect? What's hot in Cubeland? >> Yeah, I think, you know, Kubes, you're going to be looking at how OpenShift keeps growing and I think to that respect you get to see the momentum with people like Red Hat. You see others coming up and realizing how OpenShift has gone to market as being, like you were saying, partnering with those Clouds and really making it simple. I think the simplicity and the manageability of Kubernetes is going to be at the forefront. I think a lot of the investment is still going into, how do I bring observability and DevOps and AIOps and MLOps all together. And I think that's going to be a big place where people are going to be looking to see what comes out of CubeCon in Amsterdam. I think it's that manageability ease of use. >> Well Rob, I look forward to working with you on behalf of the whole Cube team. We're going to do more of these and go out to some shows extract the signal from the noise. Really appreciate you coming into our studio. >> Well, thank you for having me on. Really appreciate it. >> You're really welcome. All right, keep it right there, or thanks for watching. This is Dave Vellante for the Cube. And we'll see you next time. (light music)

>>data by its very nature is distributed and siloed. But most data architectures today are highly centralized. Organizations are increasingly challenged to organize and manage data and turn that data into insights this idea of a single monolithic platform for data, it's giving way to new thinking. We're a decentralized approach with open cloud native principles and Federated governance will become an underpinning underpinning of digital transformations. Hi everybody, this is Day Volonte. Welcome back to HP discover 2021 the virtual version. You're watching the cubes continuous coverage of the event and we're here with Matt Mako is the field C T O for Israel software at H P E. And we're gonna talk about HP software strategy and esmeralda and specifically how to take a I analytics to scale and ensure the productivity of data teams. Matt, welcome to the cube. Good to see you. >>Good to see you again. Dave thanks for having me today. >>You're welcome. So talk a little bit about your role as CTO. Where do you spend your time? >>Yeah. So I spend about half of my time talking to customers and partners about where they are on their digital transformation journeys and where they struggle with this sort of last phase where we start talking about bringing those cloud principles and practices into the data world. How do I take those data warehouses, those data lakes, those distributed data systems into the enterprise and deploy them in a cloud like manner. And then the other half of my time is working with our product teams to feed that information back so that we can continually innovate to the next generation of our software platform. >>So when I remember I've been following HP and HP for a long, long time, the cube is documented. We go back to sort of when the company was breaking in two parts and at the time a lot of people were saying, oh HP is getting rid of the software business to get out of software. I said no, no, no hold on, they're really focusing and and the whole focus around hybrid cloud and and now as a service and so you're really retooling that business and sharpen your focus. So so tell us more about asthma, it's cool name. But what exactly is as moral software, >>I get this question all the time. So what is Israel? Israel is a software platform for modern data and analytics workloads using open source software components. And we came from some inorganic growth. We acquired a company called citing that brought us a zero trust approach to doing security with containers. We bought blue data who came to us with an orchestrator before kubernetes even existed in mainstream. They were orchestrating workloads using containers for some of these more difficult workloads, clustered applications, distributed applications like Hadoop. And then finally we acquired Map are which gave us this scale out, distributed file system and additional analytical capabilities. And so what we've done is we've taken those components and we've also gone out into the marketplace to see what open source projects exist, to allow us to bring those club principles and practices to these types of workloads so that we can take things like Hadoop and spark and Presto and deploy and orchestrate them using open source kubernetes, leveraging Gpu s while providing that zero trust approaches security. That's what Israel is all about. Is taking those cloud practices and principles but without locking you in again using those open source components where they exist and then committing and contributing back to the open source community where those projects don't exist. >>You know, it's interesting. Thank you for that history. And when I go back, I always been there since the early days of big data and Hadoop and so forth. The map are always had the best product. But but they can't get back then. It was like Kumbaya open source and they had this kind of proprietary system, but it worked and that's why it was the best product. And so at the same time they participated in open source projects because everybody that that's where the innovation is going. So you're making that really hard to use stuff easier to use with kubernetes orchestration. And then obviously I'm presuming with the open source chops, sort of leaning into the big trends that you're seeing in the marketplace. So my question is, what are those big trends that you're seeing when you speak to technology executives, which is a big part of what you do? >>Yeah. So the trends I think are a couple of fold and it's funny about Duke, I think the final nails in the coffin have been hammered in with the Hadoop space now. And so that that leading trend of of where organizations are going. We're seeing organizations wanting to go cloud first, but they really struggle with these data intensive workloads. Do I have to store my data in every cloud? Am I going to pay egress in every cloud? Well, what if my data scientists are most comfortable in AWS? But my data analysts are more comfortable in Azure. How do I provide that multi cloud experience for these data workloads? That's the number one question I get asked. And that's the probably the biggest struggle for these Chief Data Officers. Chief Digital Officer XYZ. How do I allow that innovation but maintaining control over my data compliance especially, we talk international standards like G. D. P. R. To restrict access to data, the ability to be forgotten in these multinational organizations. How do I sort of square all of those components and then how do I do that in a way that just doesn't lock me into another appliance or software vendors stack? I want to be able to work within the confines of the ecosystem. Use the tools that are out there but allow my organization to innovate in a very structured, compliant way. >>I mean I love this conversation. And just to me you hit on the key word which is organization. I want to I want to talk about what some of the barriers are. And again, you heard my wrap up front. I I really do think that we've created not only from a technology standpoint and yes, the tooling is important, but so is the organization. And as you said, you know, an analyst might want to work in one environment, a data scientist might want to work in another environment. The data may be very distributed. They maybe you might have situations where they're supporting the line of business. The line of business is trying to build new products. And if I have to go through this, hi this monolithic centralized organization, that's a barrier uh for me. And so we're seeing that change that kind of alluded to it upfront. But what do you see as the big, you know, barriers that are blocking this vision from becoming a reality? >>It very much is organization dave it's the technology is actually no longer the inhibitor here. We have enough technology, enough choices out there. That technology is no longer the issue. It's the organization's willingness to embrace some of those technologies and put just the right level of control around accessing that data because if you don't allow your data scientists and data analysts to innovate, they're going to do one of two things, they're either going to leave and then you have a huge problem keeping up with your competitors or they're gonna do it anyway, and they're gonna do it in a way that probably doesn't comply with the organizational standards. So the more progressive enterprises that I speak with have realized that they need to allow these various analytical users to choose the tools, they want to self provision those as they need to and get access to data in a secure and compliant way. And that means we need to bring the cloud to generally where the data is because it's a heck of a lot easier than trying to bring the data where the cloud is while conforming to those data principles. And that's, that's Hve strategy, you've heard it from our CEO for years now, everything needs to be delivered as a service. It's essential software that enables that capability, such as self service and secure data provisioning, etcetera. >>Again, I love this conversation because if you go back to the early days of the Duke, that was what was profound about. Do bring bring five megabytes of code, do a petabyte of data and it didn't happen. We shoved it all into a data lake and it became a data swamp. And so it's okay, you know, and that's okay. It's a one dato maybe maybe in data is is like data warehouses, data hubs data lake. So maybe this is now a four dot Oh, but we're getting there. Uh, so an open but open source one thing's for sure. It continues to gain momentum. It's where the innovation is. I wonder if you could comment on your thoughts on the role that open source software plays for large enterprises. Maybe some of the hurdles that are there, whether they're legal or licensing or or or just fears. How important is open source software today? >>I think the cloud native development, you know, following the 12 factor applications microservices based, pave the way over the last decade to make using open source technology tools and libraries mainstream, we have to tip our hats to red hat right for allowing organizations to embrace something. So core is an operating system within the enterprise. But what everyone realizes that its support, that's what has to come with that. So we can allow our data scientists to use open source libraries, packages and notebooks. But are we going to allow those to run in production? And so if the answer is no, then that if we can't get support, we're not going to allow that. So where HP es Merrill is taking the lead here is again embracing those open source capabilities, but if we deploy it, we're going to support it or we're going to work with the organization that has the committees to support it. You call HPD the same phone number you've been calling for years for tier 1 24 by seven support and we will support your kubernetes, your spark your presto your Hadoop ecosystem of components were that throat to choke and we'll provide all the way up to break fix support for some of these components and packages giving these large enterprises the confidence to move forward with open source but knowing that they have a trusted partner in which to do so >>and that's why we've seen such success with, say, for instance, managed services in the cloud or versus throwing out all the animals in the zoo and say, okay, figure it out yourself. But of course what we saw, which was kind of ironic was we, we saw people finally said, hey, we can do this in the cloud more easily. So that's where you're seeing a lot of data. A land. However, the definition of cloud or the notion of cloud is changing no longer. Is it just this remote set of services somewhere out there? In the cloud? Some data center somewhere. No, it's, it's moving on. Prem on prem is creating hybrid connections you're seeing, you know, co location facility is very proximate to the cloud. We're talking now about the edge, the near edge and the far edge deeply embedded, you know? And so that whole notion of cloud is, is changing. But I want to ask you, there's still a big push to cloud, everybody is a cloud first mantra. How do you see HP competing in this new landscape? >>I I think collaborating is probably a better word, although you could certainly argue if we're just leasing or renting hardware than it would be competition. But I think again, the workload is going to flow to where the data exists. So if the data is being generated at the edge and being pumped into the cloud, then cloud is prod, that's the production system. If the data is generated, the on system on premises systems, then that's where it's going to be executed, that's production. And so HBs approach is very much coexist, coexist model of if you need to do deaf tests in the cloud and bring it back on premises, fine or vice versa. The key here is not locking our customers and our prospective clients into any sort of proprietary stack, as we were talking about earlier, giving people the flexibility to move those workloads to where the data exists. That is going to allow us to continue to get share of wallet. Mindshare, continue to deploy those workloads and yes, there's going to be competition that comes along. Do you run this on a G C P or do you run it on a green lake on premises? Sure. We'll have those conversations. But again, if we're using open source software as the foundation for that, then actually where you run it is less relevant. >>So a lot of, there's a lot of choices out there when it comes to containers generally and kubernetes specifically, uh, you may have answered this, you get zero trust component, you've got the orchestrator, you've got the, the scale out, you know, peace. But I'm interested in hearing in your words why an enterprise would or should consider s morale instead of alternatives to kubernetes solutions? >>It's a fair question. And it comes up in almost every conversation. We already do kubernetes, so we have a kubernetes standard and that's largely true. And most of the enterprises I speak to their using one of the many on premises distributions of the cloud distributions and they're all fine. They're all fine for what they were built for. Israel was generally built for something a little different. Yes, everybody can run microservices based applications, devoPS based workloads, but where is Meryl is different is for those data intensive and clustered applications. Those sort of applications require a certain degree of network awareness, persistent storage etcetera, which requires either a significant amount of intelligence. Either you have to write in go lang or you have to write your own operators or Israel can be that easy button. We deploy those state full applications because we bring a persistent storage later that came from that bar we're really good at deploying those stable clustered applications and in fact we've open sourced that as a project cube director that came from Blue data and we're really good at securing these using spiffy inspire to ensure that there is that zero trust approach that came from side tail and we've wrapped all of that in kubernetes so now you can take the most difficult, gnarly, complex data intensive applications in your enterprise and deploy them using open source and if that means we have to coexist with an existing kubernetes distribution, that's fine. That's actually the most common scenario that I walk into is I start asking about what about these other applications you haven't done yet? The answer is usually we haven't gotten to him yet or we're thinking about it and that's when we talk about the capabilities of s role and I usually get the response, oh, a we didn't know you existed and be, well, let's talk about how exactly you do that. So again, it's more of a coexist model rather than a compete with model. Dave >>Well, that makes sense. I mean, I think again, a lot of people think, oh yeah, Kubernetes, no big deal, it's everywhere. But you're talking about a solution, I'm kind of taking a platform approach with capabilities, you've got to protect the data. A lot of times these microservices aren't some micro uh and things are happening really fast, You've got to be secure, you've got to be protected. And like you said, you've got a single phone number, you know, people say one throat to choke, Somebody said the other day said no, no single hand to shake, it's more of a partnership and I think that's a proposed for HPV met with your >>hair better. >>So you know, thinking about this whole, you know, we've gone through the pre big data days and the big data was all, you know, the hot buzz where people don't maybe necessarily use that term anymore, although the data is bigger and getting bigger, which is kind of ironic. Um where do you see this whole space going? We've talked about that sort of trends are breaking down the silos, decentralization. Maybe these hyper specialized roles that we've created maybe getting more embedded are lined with the line of business. How do you see it feels like the last, the next 10 years are going to be different than the last 10 years. How do you see it matt? >>I completely agree. I think we are entering this next era and I don't know if it's well defined, I don't know if I would go out on an edge to say exactly what the trend is going to be. But as you said earlier, data lakes really turned into data swamps. We ended up with lots of them in the enterprise and enterprises had to allow that to happen. They had to let each business unit or each group of users collect the data that they needed and I. T. Sort of had to deal with that down the road. And so I think the more progressive organizations are leading the way they are again taking those lessons from cloud and application developments, microservices and they're allowing a freedom of choice there, allowing data to move to where those applications are. And I think this decentralized approach is really going to be king. And you're gonna see traditional software packages, you're gonna see open source, you're going to see a mix of those. But what I think we'll probably be common throughout all of that is there's going to be this sense of automation, this sense that we can't just build an algorithm once released and then wish it luck that we've got to treat these these analytics and these these data systems as living things that there's life cycles that we have to support, which means we need to have devops for our data science. We need a ci cd for our data analytics. We need to provide engineering at scale like we do for software engineering. That's going to require automation and an organizational thinking process to allow that to actually occur. And so I think all of those things that sort of people process product, but it's all three of those things are going to have to come into play. But stealing those best ideas from cloud and application development, I think we're going to end up with probably something new over the next decade or so >>again, I'm loving this conversation so I'm gonna stick with it for a second. I it's hard to predict, but I'll some takeaways that I have matt from our conversation. I wonder if you could, you could comment. I think, you know, the future is more open source. You mentioned automation deV's are going to be key. I think governance as code, security designed in at the point of code creation is going to be critical. It's not no longer to be a bolt on and I don't think we're gonna throw away the data warehouse or the data hubs or the data lakes. I think they become a node. I like this idea and you know, jim octagon. But she has this idea of a global data mesh where these tools lakes, whatever their their node on the mesh, they're discoverable. They're shareable. They're they're governed uh in a way and that really I think the mistake a lot of people made early on in the big data movement, Oh we have data, we have to monetize our data as opposed to thinking about what products that I can I build that are based on data that then I can, you know, can lead to monetization. And I think and I think the other thing I would say is the business has gotten way too technical. All right. It's an alienated a lot of the business lines and I think we're seeing that change. Um and I think, you know, things like Edinburgh that simplify that are critical. So I'll give you the final thoughts based on my rent. >>I know you're ready to spot on. Dave. I think we we were in agreement about a lot of things. Governance is absolutely key. If you don't know where your data is, what it's used for and can apply policies to it, it doesn't matter what technology throw at it, you're going to end up in the same state that you're essentially in today with lots of swamps. Uh I did like that concept of of a note or a data mesh. It kind of goes back to the similar thing with a service smashed or a set of a P I is that you can use. I think we're going to have something similar with data that the trick is always how heavy is it? How easy is it to move about? And so I think there's always gonna be that latency issue. Maybe not within the data center, but across the land, latency is still going to be key, which means we need to have really good processes to be able to move data around. As you said, government determine who has access to what, when and under what conditions and then allow it to be free, allow people to bring their choice of tools, provision them how they need to while providing that audit compliance and control. And then again, as as you need to provision data across those notes for those use cases do so in a well measured and govern way. I think that's sort of where things are going. But we keep using that term governance. I think that's so key. And there's nothing better than using open source software because that provides traceability, the audit ability and this frankly openness that allows you to say, I don't like where this project is going. I want to go in a different direction and it gives those enterprises that control over these platforms that they've never had before. >>Matt. Thanks so much for the discussion. I really enjoyed it. Awesome perspectives. >>Well, thank you for having me. Dave are excellent conversation as always. Uh, thanks for having me again. >>All right. You're very welcome. And thank you for watching everybody. This is the cubes continuous coverage of HP discover 2021 of course, the virtual version next year. We're gonna be back live. My name is Dave a lot. Keep it right there. >>Yeah.

>>Good morning. Good, absolute and good evening to all >>those who are listening to this presentation. >>I am rather to Saxena and I manage the platform >>solutions and the thought body operating systems team in the compute workload and solutions group within HP compute >>today I'm >>going to discuss about containers >>and what containers >>do for you >>as a customer >>and why >>should you consider h PE container solutions >>for transforming your business? >>Let's talk about how some of >>the trends seen >>in the industry are impacting the >>customer's day >>in and >>day out and what is it that >>they really need >>cloud services >>and continue your ization, increase operational flexibility, agility and >>speed. >>But non native >>apps seem >>to be a serious issue. >>These legacy apps >>and architecture slow the >>development team, >>making it much harder to meet competitive demand >>and cost pressures. It administrators are >>looking for a way to quickly deploy and manage the resources there. Developers need. >>They want to release more >>updates more quickly. Digital transformation has really shifted >>its focus >>from operations. Two applications, it's all >>about gaining the agility to deploy code faster >>developers want the >>flexibility to choose from a variety of >>Os or containerized ab stacks and to have fast access >>to the resources >>they need. And Ceos >>and line >>of business owners need visibility >>into cost >>and usage so they can optimize their >>spend and drive >>higher utilization of >>their resources. >>So let's define what >>is container technology. >>Container >>technology is a method used to package >>an application >>and software. >>It is a game changer. >>Let's take a closer look at at a couple of >>examples within each area. In the area of cost savings, we achieve savings by reducing the virtualized footprint and by reducing administrative overhead >>through the introduction >>of CIA >>CD pipelines. >>In terms of agility, >>this helps you become more a child by enabling >>your workload portability. It also >>shortens development >>life cycle while increasing the frequency >>of application updates. Within innovation, container platform technologies >>provides >>centralized >>images and source code >>through standard >>repositories, decoupling of application dependencies >>and use of templates >>leading to enhancing >>collaboration. This kick starts your innovation >>container technology would bring >>these benefits to enterprise it and accelerate the transformation of business. >>H. P. E has the proven >>architecture and expertise for the introduction >>of container technology. >>Apps and >>data are no longer centralized in >>the data center. >>They live >>everywhere at the edge, >>in Carlos, >>in the cloud and >>in the data center. This creates >>enormous complexity for application operability >>performance >>and security >>customers are looking >>for a way >>to simplify >>speed and scale their apps and that's driving a rise in container adoption. >>Managing these >>distributed environments requires different skill sets, >>tools and processes >>to manage both >>traditional and cloud environments. >>It is complex >>and time consuming >>all of these workloads are also very >>data dependent Ai >>data analytics and that modernization are the key entry points for >>HB >>Admiral to >>intercept the transformation budget. >>A study from I. T. >>C. Found that >>More than 50 of enterprises are leveraging containers >>to modernize legacy applications >>as is >>without re architect in them. >>These containers are often then deployed >>in on premise cloud environments using kubernetes and Docker. Re implementing legacy applications >>as >>cloud native microservices >>has proven >>more difficult >>than expected, >>held back by the scarcity of the experienced Microsoft >>talent to do that work. >>As a result, only half >>of the new containers deployed leverage microservices >>for cloud native apps. one key element of the >>HB approach is to reduce the effort >>required to >>continue to rise these existing applications. >>One platform for non cloud native and cloud >>native apps >>is the H P E. S. Moral >>container platform. >>Hp Green Lake brings the >>true cloud >>experience to your cloud >>native and non cloud native apps without >>costly. Re factoring with cloud services for containers through Hve Green Lake >>continue rising. >>Non cloud native apps, >>improves >>efficiency, >>increases agility >>and provides >>application affordability. >>Simple applications can take about three months >>while complex once >>up to a year to re factor >>with cloud services for >>containers through HP Green Lake >>customers can save this time and get the benefits >>With 100 open source kubernetes right away with HP >>Asmal >>container platform, non cloud native state fel. Enterprise apps can be deployed in containers without >>costly re factoring >>enabling customers to bring speed and agility >>to non cloud native apps >>with ease. Hp Green Lake is a >>single platform for war clothes and helps customers avoid the cost of moving data and apps and run walk clothes >>securely from the edge >>call occasions >>and data centers >>while meeting the needs for the agency, >>data sovereignty >>and >>regulatory compliance >>with unique type. The >>HBs milk container platform >>provides a container management control plane >>with the fully integrated >>Hve Admiral data fabric. >>The HBs real container platform >>integrates a high performance distributed >>file, an >>object storage. >>These turnkey >>pre configured >>cloud connected >>solutions >>are delivered in >>As little as 14 days and managed for you by HP. E and our partners so >>customers do not need to skill up on kubernetes. >>The key differentiators >>for H. >>B. S. Merrill are providing a complete >>solution that addresses >>a broad set of applications and a consistent multi cloud deployment and management platform. It solves the data integrity >>and application recovery issues >>central >>to business critical >>on >>premise applications. >>It maintains the commitment to open source to ensure customers >>can take >>advantages of future developments >>with these distributions. >>It reduces >>development effort and moves application development >>to self service. >>Now let us look at >>some customer success stories with HBs Merrill. Here is a >>customer who modernize >>their existing legacy applications. >>There were a lot of blind >>spots in the system and the >>utilization >>Was just about 10%. By transitioning to containers, they >>were able to get >>50 >>eight times faster in just performance, reducing a significant >>portion of the cost of >>the customers deployment, significant >>reduction in infrastructure >>footprint resulting >>in lower TCO >>and with HB Green Lake, they received cloud agility >>at a fraction >>of the cost of the alternatives. This customer is expanding its efforts into machine >>learning and >>analytics technologies >>for decision support in areas >>of ingesting and processing large data sets. >>They are enabling data science >>and >>such based applications >>on large >>and low late in data sets using a combination of >>patch >>and streaming transformation processes. >>These data sets support both offline and in line machine learning, deep learning training >>and model execution >>to deploy these >>environments at >>scale and >>move from >>experimentation >>to >>production. They need to connect the dots between their devops teams and the data science teams >>walking on machine learning >>and analytics from an inch for such a standpoint. They're using containers >>and kubernetes >>to drive greater agility >>and flexibility as well as cost savings and efficiency >>as they are >>operationalized. >>These machine >>learning deep learning >>and analytic initiatives. >>This includes >>automated configuration of software stacks and the deployment of data pipeline bills >>in containers. >>The developers >>selected kubernetes >>as the container >>orchestration engine for the enterprise >>and is using H >>P E S, real container >>platform >>for their machine learning >>deep learning and analytic war clothes. This customer had a growing demand for >>data scientists >>and their goals >>were >>to gain continuous insights into existing and new customers >>and develop innovative products >>and get them to >>market faster amongst others. >>The greater >>infrastructure utilization >>on premises resulted in >>significant cost savings Around $6 million three years >>and significantly improved environment >>provisioning time >>From 9 to 18 months to just about 30 minutes. And along those lines, >>there are many >>more examples >>of customer success stories across various industries >>that proved >>transitioning >>to the HP. Es. >>Moral container >>solutions can be >>a total game changer by the way. HB also >>provides container solutions on with various software vendors. >>This customer >>was eager to >>embrace a giant abb development techniques >>that would allow them >>to become more a child >>scalable >>and affordable, helping to deliver >>an exceptional customer service >>and avoid vendor lock in HB. partnered with >>them to deploy >>red hat, open shift running on HP hardware, >>which became a new container >>based devoPS >>platform, effectively >>running on bare metal for >>minimal resource >>overheads and maximum performance. >>The customer now had a platform >>that was capable of supporting >>their virtualization and continue realization ambitions. >>Now let us see how HB Green Lake can help >>you reduce costs, >>risk and time you get speed, time >>to value >>with >>pre integrated hardware, >>software and services the HP ES moral platform to >>design and build >>container based >>services and cell service, catalog and marketplace for rapid >>provisioning >>of these services, >>you get lower risk to the business >>with >>fully managed by contained by HP >>container experts. >>Proactive resolution >>of incidents, >>active capacity management to scale with demand, you can reduce costs >>by avoiding >>upfront capital expense >>and over >>provisioning with pay per use model >>intuitive dashboard for >>cluster costs and storage. >>HB also has a huge >>differentiator when it >>comes to security. >>The HBs. Silicon Root >>of Trust >>secures your >>data at the microcode level >>inside the processor itself, ensuring >>that your digital assets >>remain protected and secure >>with your continued authorization strategy >>built on the world's >>most >>secure industry standard servers, >>you'll be able to >>fully concentrate your resources on your modernization efforts. >>Additionally, >>you can enjoy >>benefits such as HP >>form where threat detection >>along with the with other best in class >>innovations from H B such as malware detection >>and Form where recovery. Your HP servers >>are protected >>from >>silicon to >>software >>and at every touch >>point in between >>preventing bad >>actors from gaining access to containers or infrastructure. >>H B E can help accelerate >>your transformation >>using >>three pillars. >>Hp Green Lake, >>you can deploy >>any workload as a service >>with >>HP Green Lake Services, >>you can now bring >>cloud >>speed >>agility and as a >>service model >>to wear your >>apps and data are today transform the >>way you do business >>with one experience >>And one operating model >>across your distributed clouds >>for apps >>and data >>at the edge in coal occasions >>and in your data center. HB point Next services >>with over >>11,000 >>I'd projects conducted >>And 1.4 million >>customer interactions each year. >>HB point X Services, >>15,000 plus experts and its vast >>ecosystem of solution >>partners and channel partners >>are uniquely able to help you at every stage >>of your digital transformation because we address >>some of the biggest >>areas that can slow you down. >>We bring together technology >>and expertise >>to help you drive >>your business forward >>and last but not the least. >>Hp Financial services, >>flexible investment >>capacity are key >>considerations >>for businesses >>to drive digital transformation initiatives >>in order to forge a path forward. You need >>access two flexible >>payment options >>that allow you to match icty costs >>to usage. >>From helping release >>capital from existing infrastructure, two different payments >>and providing >>pre owned tech >>to relieve capacities. Train >>HP Financial >>services unlocks the value of the customer's entire >>estate from >>edge >>to cloud >>to end user >>with multi vendor >>solutions consistently and sustainably >>around the world. HB Fs >>makes I'd >>investment >>force multiplier, >>not a stumbling block. >>H B S. Moral >>and HB compute are the >>ideal choice >>for your container Ization strategy, >>combining familiar silver hardware >>with a container platform that has been >>optimized for the environment. >>This combination is >>particularly cost effective, >>allowing you to capitalize on existing hardware skills >>as you focus >>on developing innovative >>containerized solutions. >>H beef Admiral >>fits your existing infrastructure and provides potential to scale as required. >>And with that, >>I conclude this session and I hope >>you found this valuable. There are many resources available at hp dot >>com that you can use >>to your benefit. Thank you once again.

>>Yeah. Okay. Now we're going to dig deeper into HP es moral and try to better understand how it's going to impact customers. And with me to do that are Robert Christensen is the vice president strategy in the office of the C, T. O. And Kumar Srikanth is the chief technology officer and head of software both, of course, with Hewlett Packard Enterprise. Gentlemen, welcome to the program. Thanks for coming on. >>Good seeing you. Thanks for having us. >>Always. Great. Great to see you guys. So, Esmeralda, kind of a interesting name. Catchy name. But tomorrow, what exactly is H P E s bureau? >>Yeah. It's indeed a catchy name. Our branding team done a fantastic job. I believe it's actually a derivation from Esmeralda. The Spanish for Emerald Berlin. Supposed to have some very mystical powers. Um, and they derived as moral from there, and we all actually, initially that we heard it was interesting. Um, so as well was our effort to take all the software, the platform tools that HB has and provide these modern operating platform to the customers and put it under one brand. It has a modern container platform. It has a persistent stories distribute the date of February. It has been foresight, as many of our customers similar, So it's the think of it as a container platform offering for modernization of the civilization of the customers. >>Yeah, it's an interesting to talk about platform, so it's not a lot of times people think product, but you're positioning it as a platform, so it has a broader implications. >>That's very true. So as the customers are thinking of this civilization, modernization containers and microservices, as you know there has become, has become the stable whole. So it's actually a container orchestration platform. It offers open source proven. It is as well as the persistence always bolted to >>so by the way, s moral, I think emerald in Spain, I think in the culture it also has immunity powers as well. So immunity >>from >>lock in and all those other terrible diseases. Maybe it helps us with covid to rob Robert. When you talk to customers, what problems do you probe for that that is immoral. Can can do a good job solving. >>Yeah, they That's a really great question because a lot of times they don't even know what it is that they're trying to solve for, other than just a very narrow use case. But the idea here is to give them a platform by which they can bridge both the public and private environment for what to do an application development specifically in the data side. So when they're looking to bring Container Ization, which originally got started on the public cloud and has moved its way, I should say, become popular in the public cloud and has moved its way on premises. Now Esmeralda really opens the door to three fundamental things. But how do I maintain an open architecture like you're referring to some low or oh, no lock in of my applications And there were two. How do I gain a data fabric or data consistency of accessing the data so I don't have to rewrite those applications when I do move them around and then, lastly, where everybody is heading down, the real value is in the AI ML initiatives that companies are are really bringing that value of their data and locking the data at where the data is being generated and stored. And so the is moral platform is those multiple pieces that I was talking about stacked together to deliver those solutions for the client. >>So come on, what's the How does it work? What's the sort of I p or the secret sauce behind it all? What makes HP different? >>Continuing our team of medical force around, uh, it's a moral platform for optimizing the data Indians who were close. I think I would say there are three unique characteristics of this platform. Number one is actually provides you both an ability to run stable and stateless were close under the same platform, and number two is as we were thinking about. Unlike analogues, covenant is open source. It actually produce you all open source government as well as an orchestration behind you. So you can actually you can provide this hybrid, um, thing that drivers was talking about. And then actually we built the work flows into it. For example, we're actually announced along with Esmeralda MLS, but on their customers can actually do the work flow management. Our own specifically did the work force. So the magic is if you want to see the secrets of is all the efforts that have been gone into some of the I p acquisitions that HBs the more years we should be. Blue Data bar in the nimble emphasize, all these pieces are coming together and providing a modern digitalization platform for the customers. >>So these pieces, they all have a little bit of a machine intelligence in them. Yeah, People used to think of a I as the sort of separate thing, having the same thing with containers, right? But now it's getting embedded in into the stack. What? What is the role of machine intelligence or machine learning in Edinburgh? >>I would take a step back and say, You know this very well. They're the customer's data amount of data that is being generated, and 95% or 98% of data is machine generated, and it has a serious amount of gravity, and it is sitting at the edge, and we were the only the only one that edge to the cloud data fabric that's built. So the number one is that we are bringing computer or a cloud to the data. They're taking the data to the cloud like if you go, it's a cloud like experience that provides the customer. Yeah, is not much value to us if we don't harness the data. So I said this in one of the blood. Of course, we have gone from collecting the data era to the finding insights into the data so that people have used all sorts of analysis that we are to find data is the new oil to the air and the data. And then now you're applications have to be modernized. And nobody wants to write an obligation in a non microservices fashion because you want to build the modernization. So if you bring these three things, I want to have a data. Gravity have lots of data. I had to build an area applications and I want to have an idea those three things I think we bring together to the customs. >>So, Robert, let's stay on customers from it. I mean, you know, I want to understand the business impact, the business case. I mean, why should all the you know, the cloud developers have all the fun? You mentioned that you're bridging the cloud and on Prem, uh, they talk about when you talk to customers and what they are seeing is the business impact. What's the real drivers for them. >>That's a great question because at the end of the day I think the reason survey that was that cost and performance is still the number one requirement for the real close. Second is agility, the speed of which they want to move. And so those two are the top of mind every time. But the thing we find in as moral, which is so impactful, is that nobody brings together the silicon, the hardware, the platform and all that stacked together work and combined, like as moral does with the platforms that we have and specifically, you know, when we start getting 90 92 93% utilization out of ai ml workloads on very expensive hardware, it really, really is a competitive advantage over a public cloud offering which does not offer those kind of services. And the cost models are so significantly different. So we do that by collapsing the stack. We take out as much intellectual property, give me, um, as much software pieces that are necessary. So we are closest to the silicon closest to the applications bring into the hardware itself, meaning that we can inter leave the applications, meaning that you can get to true multi tendency on a particular platform that allows you to deliver a cost optimized solution. So when you talk about the money side, absolutely. There's just nothing out there and then on the second side, which is agility. Um, one of the things that we know is today is that applications need to be built in pipelines. Right? This is something that has been established now for quite some time now. That's really making its way on premises. And what Kumar was talking about was, how do we modernize? How do we do that? Well, there's going to be something that you want to break into Microservices and containers. There's something you don't now the ones that they're going to do that they're gonna get that speed and motion etcetera out of the gate. And they can put that on premises, which is relatively new these days to the on premises world. So we think both will be the advantage. >>Okay, I want to unpack that a little bit. So the cost is clearly really 90 plus percent utilization. I mean, come on. You know, even even a pre virtualization. We know what it was like even with virtualization, you never really got that high. I mean, people would talk about it, but are you really able to sustain that in real world workloads? >>Yeah, I think when you I think when you when you make your exchangeable currency into small pieces, you can insert them into many areas. And we have one customer was running 18 containers on a single server and each of those containers, as you know, early days of data. You actually modernized what we consider we won containers of micro B. Um, so if you actually build these microservices and you have all anti affinity rules and you have rationing formulas all correctly, you can pack being part of these things extremely violent. We have seen this again. It's not a guarantee. It all depends on your application and your I mean, as an engineer, we want to always understand how this can be that sport. But it is a very modern utilization of the platform with the data and once you know where the data is, and then it becomes very easy to match those >>now. The other piece of the value proposition that I heard Robert is it's basically an integrated stack, so I don't have to cobble together a bunch of open source components. It's there. There's legal implications. There's obviously performance implications that I would imagine that resonates is particularly with the enterprise buyer, because they have the time to do all this integration. >>That's a very good point. So there is an interesting, uh, interesting question that enterprise they want to have an open source, so there is no lock in. But they also need help to implement and deploy and manage it because they don't have expertise. And we all know that Katie has actually brought that AP the past layer standardization. So what we have done is we've given the open source and you write to the covenant is happy, but at the same time orchestration, persistent stories, the data fabric, the ai algorithms, all of them are bolted into it. And on the top of that, it's available both as a licensed software and run on Prem. And the same software runs on the Green Lake so you can actually pay as you go and you don't we run it for them in in a collar or or in their own data center. >>Oh, good. I was one of my latter questions, so I can get this as a service paid by the drink. Essentially, I don't have to install a bunch of stuff on Prem and pay >>a perpetual license container at the service and the service in the last Discover. And now it's gone production. So both MLRS is available. You can run it on friends on the top of Admiral Container platform or you can run inside of the Green Bay. >>Robert, are there any specific use case patterns that you see emerging amongst customers? >>Yeah, absolutely. So there's a couple of them. So we have a really nice relationship that we see with any of the Splunk operators that were out there today. Right? So Splunk containerized their operator. That operator is the number one operator, for example, for Splunk, um, in the i t operation side or notifications as well as on the security operation side. So we found that that runs highly effective on top of his moral on top of our platforms that we just talked about what, uh, Kumar just talked about, but I want to also give a little bit of backgrounds to that same operator platform. The way that the Admiral platform has done is that we've been able to make highly active, active with a check availability at 95 nines for that same spark operator on premises on the kubernetes open source, which is, as far as I'm concerned. Very, very high end computer science work. You understand how difficult that is? Uh, that's number one. Number two, you'll see spark just a spark. Workloads as a whole. All right. Nobody handles spark workloads like we do. So we put a container around them, and we put them inside the pipeline of moving people through that basic, uh uh, ml ai pipeline of getting a model through its system through its train and then actually deployed to our MLS pipeline. This is a key fundamental for delivering value in the data space as well. And then, lastly, this is This is really important. When you think about the data fabric that we offer, um, the data fabric itself, it doesn't necessarily have to be bolted with the container platform to container at the actual data. Fabric itself can be deployed underneath a number of our for competitive platforms who don't handle data. Well, we know that we know that they don't handle it very well at all. And we get lots and lots of calls for people say, Hey, can you take your as Merrill data for every and solve my large scale, highly challenging data problems, we say yes. And then when you're ready for a real world full time but enterprise already, container platform would be happy to privilege. >>So you're saying if I'm inferring correctly, you're one of the values? Is your simplifying that whole data pipeline and the whole data science science project? Unintended, I guess. >>Okay, >>that's so so >>absolutely So where does the customer start? I mean, what what are the engagements like? Um, what's the starting point? >>It's being is probably one of the most trusted enterprise supplier for many, many years, and we have a phenomenal workforce of the both. The PowerPoint next is one of the leading world leading support organization. There are many places to start with. The right one is Obviously all these services are available on the green leg as we just start apart and they can start on a pay as you go basis. We have many customers that. Actually, some of the grandfather from the early days of pleaded and map are and they're already running, and they actually improvised on when, as they move into their next generation modernization, um, you can start with simple as metal container platform with persist with the story compared to this operation and can implement as as little as $10 and to start working. Um, and finally, there is a a big company like HP E. As an enterprise company defined next services. It's very easy for the customers to be able to get that support on the day to operation. >>Thank you for watching everybody's day volonte for the Cube. Keep it right there for more great content from Esmeralda. >>A mhm, okay.

>> Narrator: From theCUBE studios in Palo Alto and Boston, connecting with thought leaders all around the world, this is a CUBE conversation. >> Hey welcome back everybody, Jeff Frick here with theCUBE we're in our Palo Alto studio, it's still 2020, we're still gettin' through the COVID crisis and we're still reaching out to our community really to talk to leaders who have lead through difficult times, led through transitions, and really go out to the experts and get some advice from people who have been around the block a few times, and I'm really, really excited to have one of my all time favorite business executives joining us, I haven't talked to him in years and years and almost decades, David Pottruck is joining us, he is formerly the CEO of Schwab, how he kind of made his name, now he's an author, he's teaching at the Wharton School, he's a New York Times best selling author and he's also the chairman of Red Eagle Ventures, David, great to see you. >> Thanks, Jeff, it's good to be with you today. >> Absolutely, so before we get in, just to check in, how are you doing, how are you gettin' through 2020, I can't believe we're already on the backside of this crazy year. >> Well, it's been a pretty challenging year as you know, and we've seen companies learn to operate in a virtual world. Zoom has been one of the huge beneficiaries, but technology companies in general, the whole FAANG group of Facebook, Amazon, Netflix and such, they've all benefited from people getting more virtual, and one of the non profits I'm involved with sends out videos to schools on social and emotional learning and that's seen a big uptick. So, the world is changing, and changing in very substantial ways, and I don't think we'll ever go back to the way it was in total, we will go back to having face to face meetings, of course, but I do think that operating virtually and doing more things remotely, remote business meetings over zoom are going to be a fixed part of the future, >> Right, right. >> At least in my opinion. >> So, the reason I wanted to reach out to you is you've managed through some crazy transitions and some crazy disruptions back in the day and for a lot of the young people that don't remember, there was a time before we did everything online. There was a time where you had a broker and you called him on the phone and you paid a pretty big price based on a percentage of the transactions. You were at Schwab in the late 90s when this new thing called the internet came along, and these new things called internet only businesses to compete with you, I wonder if you can kind of take us back as you started to see some of these new kinds of threats, coming not necessarily from people that you recognize from up and down the street, but people who are coming over horizons that you've never ever seen before. And how did you start to get a feel for hmm, the landscapes a changin'. >> You know it's really funny to look back that there actually was a day when something called the internet didn't exist. And, there was no connectivity, there was no internet. We were, of course, at that time a telephone based brokerage firm, what used to be called discount brokers. We don't use that phrase very much anymore at Schwab, but, we were a telephone based discount broker, and the internet popped up and started becoming commercialized, and some online only brokerage firms popped up. And these firms didn't have call centers, they didn't have branch offices, if you wanted to do a trade you did it over your computer, online, and the pricing was dramatically less. To give you some idea, to buy 100 shares of IBM, Merrill Lynch would have charged you $250, for that one trade, Schwab would have charged you $80 and E-Trade would have charged you $25. So, we were much cheaper than Merrill Lynch, but E-Trade was much cheaper than us. So, we were, at the time, we were worried about is there enough security on the internet, can we do trades. We have a reputation to protect, a brand new company they don't have a reputation to protect, we have customer security, we have a reputation to protect. Well, we started doing online trades, and the way we did it was we gave all of our customers a 20% discount on our normal pricing, so instead of charging 80-something dollars, you paid something like $60. So, it was a nice discount, customers liked it, they were doing online trades, and we're seeing that is just taking off, it's getting huge, and we're getting great press, the analysts love it, Wall Street loves it, we're a public company and it's going great, but of course at the same time I'm getting, a basket full of letters and emails from our customers saying "why can't you do trades for $25 like E-Trade? Why are they able to do an online trade for $25 and you're charging $65? I thought you stood for value, I thought you guys wanted to be the best value for the money." So, I'm in this dilemma where Wall Street doesn't see these letters, they don't get reported, I see them, and there dozens and then hundreds, and then thousands. >> Wow. >> We had millions of customers, so to get a thousand letters or emails in a month that's very possible. And so I go to Chuck with this and I said you know, I think we need to make a change because no great company was built on the back of unhappy customers. >> Right, right. But you know, it's so funny, not funny, I'm sure it was a huge challenge in the moment, but you know, Clayton Christensen's another one of my favorite business leaders and why I like him so much, and rest in peace he passed earlier this year, is his very simple statement in "The Innovator's Dilemma" that smart people making sound business decisions based on their customer feedback will always miss discontinuous change. You were right in the middle of this thing and you had to get discontinuous change and it's funny, you've mentioned quite a bit in some of your other conversations about looking for faint signals, well this was not a faint signal, this was pretty much, sounds like came up and banged you over the head. So, how do you make and convince the rest of the people of the team that this is kind of a short-term pain but it's a long-term gain, really thinking about this long-term relationship with our customers, even though it's going to cost us on a per transaction basis in the short-term. >> Well, I had our financial staff run some models, and show me what would be the impact if we reduced our pricing from 60 something dollars a trade to $29 a trade, and the assumption of more and more trades moving to the internet. We also had a model into that the fact that people trade a little more when prices go down, costs go down cause I don't have the cost of someone answering the telephone, so there were some benefits, and I had to run the math to understand how long would it take us to go through the trough to get to the other side. A big important part of this is modeling the numbers. You don't just make this decision as a public company and just hope for the best >> Jeff: Right. >> You need to model it out, you need to run math and say how long will it take, what do we have to assume, what do we need to do, what costs do we need to cut, how are we going to protect ourselves as best as we can? And we knew that the math said that our profitability will go down 25% when we make this change of internet pricing, and we expected that Wall Street would be so upset, because they didn't see this coming, no analyst saw this coming cause they don't know about complaint letters I'm getting, so, analysts would be upset and the stock would go down 40%, going to your board and telling them you want approval for a 25% reduction in profits and a 40% reduction in your stock price is not what you want to do as a CEO, you don't want to go to your board with that and when they ask you, well how sure are you that we're going to climb out of this, you say it's going to take 18 months, what if it takes three years, you know, I was, I didn't see the choice we had, honestly, in my heart, you don't build a great company with an increasing number of unhappy customers. I didn't think we had a choice, and Clayton Christensen was one of the consultants that I used to help me think all this through because it was really hard to make this change, Jeff, because we were doing so well. >> Right. >> Ostensibly, we were killing it. >> Right, so it's interesting, I wonder if you could contrast it to what's happening say now with COVID, right, it was this, didn't sneak up on anyone, it was a really kind of a light switch moment in mid-March where suddenly everyone has to work from home, all your digital transformation initiatives are now put on fast forward, but we still have this situation where there's a variety of potential outcomes and timing that's really hard to gauge, so when you're thinking about managing through change within perfect information and you almost have kind of will we go back to normal, will we stay where we are or some spectrum in between, how do you help people think about how they should come up with contingency plans and think about managing through a number of options with imperfect information and really kind of no clear line, you said you had an 18 month ROI that the analytics point to, we're not really sure how long this thing is going to go and what it's going to look like when we get to the other side. >> Well, I think there's two issues there, one of them is how we get through this pandemic period. Until we get to, there's three things we need, we need inexpensive testing that is not done by a professional that we can do at home to see if we're safe. That's number one. Number two, we need a treatment that helps us get through this and get to the other side without dying, we need the fatality rate to even drop further. And number three we need a vaccine. So those are the three things that we need, that the world is working on all three of those, and my guess is that in the first half of 2021 we will have all three of those, we'll have all three of those and this will be a thing, basically, a thing of the past. >> Jeff: Right. >> So, but I don't think the world goes back, to exactly the way it was. People have learned they can have very effective meetings without everybody flying to Chicago, or New York, or Las Angeles, they can do it over Zoom, that doesn't mean meetings go away, but I think they're going to go down in numbers and more online things are going to happen. More people are going to be working from home at least part of the week. It's going to be different. >> Yeah. >> Those CEO's who sit in a somewhat of an ivory tower and get numbers fed to them from their financial staff, and they're not out talking to customers directly, people look at that as anecdotal information, I think it's more important than that, I think you need to see the passion behind the voice and the eyeballs of some of your best customers to understand what's going on with them, and a lot of CEO's don't actually do that. >> Right. You've made a really interesting comment in another interview that you did earlier, and you talked about the high gain questions. And one of the challenges of all CEO's is nobody wants to be the one that tells his CEO bad news, whether that be someone on your staff, whether that be some lower level person who's on the front lines and really knows there's some broken things, or whether it's a good customer as you said and kind of a social setting, how you doin', oh we love you, blah blah blah. But as a CEO you really have stressed that that is really some important hard to find, and hard to filter information up to the executive suite, so what were some of the tips and tricks you used to make sure that people either A. weren't afraid to tell you bad news, and B. that you could kind of go out and sniff it out a little bit more creatively than just kind of waiting for it to come through in the weekly reports. >> Well, obviously, you know, I think all kinds of executives get out and they talk to their customers on a regular basis, they're out and they're talking to them, the problem with those kind of discussions are no one wants to be disrespectful, people want to be nice in those meetings by and large, and you ask questions "how are we doing" "oh you guys are doing great", meanwhile the guy who tells you you're doing great is also looking at some newer technology that might replace you. (laughs) So that kind of question doesn't get you very far. So what we used to do, to be quite specific, is that we used to do a monthly luncheon where I had 12 of my mostly top executives but some people a level or two down, 12 Schwab people with 24 customers. And so they were tables of six, two of us, four customers, and we had a theme that we would talk through and the themes were always around things of, if you had to pick out three things we don't do well, what would they be? Give the customer permission to be comfortable being critical. What are the three things that you've heard about our customers, our competitors doing, that are better than us? What are the things that we need to change to make you even more delighted? You need to ask those kinds of high gain questions where there's no polite answer, the customer is permitted and given the opportunity to answer in a truthful and critical fashion. >> That's a great lesson, as you said give them permission and give them the format and the forum to say some of those things so that you get some of that information. Another great leadership principle that you shared many times, I want to dig into a little bit is kind of motivation verses inspiration. And that those are often confused, but very different concepts in the way that you lead people. I wonder if you can dig in a little bit on your philosophy on those two things. >> Sure, you know it's funny, those terms motivation and inspiration are used almost interchangeably as if they're the same thing. And they're not. Motivation is fundamental in business, and it's the exchange of behaviors for rewards. I was a psychology major in college, this was one of the things we learned about the exchange of behaviors for rewards and that's motivation. Inspiration on the other hand, is the effort to make people want to do something for, not for rewards that are tangible, but to be part of something great. We want you to be part of a movement, we want you to be part of something special, something that's going to change the world for the better and trying to get your employees to buy into this notion that we are on a mission and that mission is to make the world a somewhat better place, it doesn't mean we don't make money, of course we make money, but we're also out for more than a financial bottom line, we're out for a bottom line that's great for customers and maybe pretty great for employees as well. >> So it's interesting, cause you've seen 'em right, you've been in finance for ever, it's always about the shareholders, you've talked about the stock price a number of times in terms of a measure, but it seems more purposed led or purpose forward organizations now are more appealing to the younger generation, I think the search for a little bit more meaning in our day to day job and what that company is all about seems to have elevated over the last several years and taken a higher role in what they used to call triple line accounting, is it not only your shareholders who always are at the top of the list and have been traditionally, but your customers, your employee, and more and more your community and even the environment. Have you seen the swing towards, it's not just about shareholder value? >> Well, not on Wall Street. (laughs) I think, Wall Street is about money, and the people who go to work on Wall Street, and the way Wall Street operates, it's measured in dollars and cents and share price and profits and distributions to private equity partners and so forth, it's a numbers game and it is a profit game on Wall Street, we should be honest about that, it is what it is. >> Jeff: Sure. >> And, I have yet to see the Wall Street firm that is talking about triple bottom lines cause that just doesn't happen very much on Wall Street, it doesn't happen from my perspective, it almost doesn't happen at all. But there are other companies where they do talk about a more triple bottom line, and I think as a leader if you want to be that kind of company and you want to be that kind of leader you have to be comfortable talking about that, and not feel embarrassed by it, not feel that oh, that's too airy fairy, that's too goody two shoes. If you really believe that our goal is to have a triple bottom line, profitability, great for employees, and great for customers and the world at large, then as a leader you need to talk about that. You need to be willing to stand up and have those kinds of conversations and let yourself be challenged by perhaps the press, employees, shareholders, who think that that's not a good strategy. I believe that in many cases that's a great strategy because on a long-term basis you don't want every employee in your company, and all of your senior executives to basically be up for sale, that if a bigger job comes in with a bigger compensation, they're out the door. You're looking for loyalty, you're looking for buy in, for participation, for wanting to give every bit of themselves for the mission of the company. And as the CEO, if you want to take that path, you got to be willing to put yourself out there and talk about it and suffer the slings and arrows from those who don't believe that that's the best path for the company. >> Right, right. Well and that's another thing that you've talked about quite often, is really that the company feeds off the passion of the CEO, and the CEO has to have that passion because they're lookin', they're watchin', they're lookin' at your moves, they're lookin' at what you say, they're lookin' at your body language, they're lookin' at everything that you do. And I think within the context of these transitions and these difficult times, you have another great line that you've used a number of times, which is: "You need to have a perception of momentum." I love that line, so everyone needs to think that we're on the right path, we're not there yet, I feel it, he looks like he feels it, he looks like he's confident, so now I'm confident and I'm going to jump in and help be part of this change process. You've seen that time and time. >> Well, momentum is a tricky thing, you can have momentum and not have the perception of momentum. Because if you're doing a turn around, what often happens is in the early stages of the turn around, the numbers start to change but they're small, and you really haven't seen, it's not as steep. The turn around doesn't go steep, the turn around goes and builds slowly. And, what you need to be measuring in the beginning, are kind of the inputs and behaviors rather than the outputs, sales and profits. Those take longer. But you need to build belief, you need to build buy in, because it can take a long time before things start getting better and you don't want your best people to wonder whether this is the right move, should I be looking for another job, so, you have to build the perception of momentum even as you're building the reality of momentum. >> Right, right. So another thing we cover a lot of tech conferences, obviously, Cloud and AI, machine learning are hot things. But, you know, it always goes back to the big three. It's the technology, okay, but it's also people, and more importantly I think that gets left out is process. So, when you're thinking about, you know you're management is, and again, especially through a transition or a difficult time or some unknown and choppy waters, how do you think about those three, prioritizing those three and organizing those three between people, process and technology? >> Okay, well, you know always looking for technology that can be implemented to give you productivity, better customer service, you need to be monitoring what you're competitors are doing, and be looking out, sometimes at the bleeding edge, where you don't need to implement those kinds of changes right away, but you need to know where you want to go down the road, so you have some sense of that. As far as process goes, your processes are both a strength and a weakness because the strength of how well you run your processes today is also how hard they're going to be to change tomorrow. You know, companies are built for predictability, reliability, risk minimization, and all of your processes are built for those things. But those are also the things that are the opposite of big breakthrough changes. So you need to be thinking about, all right, are we strengthening our processes but also, if we have a change coming that's going to require a change of some of those processes, how is that going to get in our way and how are we going to get past that? >> Jeff: Right. >> I've left people for the last because to me that's the heart and soul of a successful executive. One person never gets everything done, it's all about the quality of your team. You've got to be a recruiter, you've got to be always on the look out for new talent that can help your company, and you've got to be thinking about how you're going to recruit that talent. You have to be a magnet for talent. When I sit on boards and I talk to the CEOs, I ask them, what are you doing to be a magnet for talent? What does that mean? What are you doing for great people to want to work for you? For you, and your company, what are you doing, how are you reinvesting in people, how are you putting time and energy in their professional development, in their growth? How are you getting to know them? How are you understanding their ambitions, their hopes and desires for the future? How much time and effort do you spend on that? And that's all part of having people not leave, everyone, in a way you can look at the world and think everyone is for sale. But you want people that are not for sale, that are committed to you and committed to the mission and in today's world where everything seems so fluid, I know my ideas about this probably seem very old and perhaps out of date, but I still believe in them with all my heart, that you want people that are committed to you and what we are accomplishing together. And you have to be reinforcing that with your words, and even more importantly with your actions. >> Yeah, I think it goes back to your inspiration, people are much more motivated by inspiration than just collecting a paycheck or getting a compensation back for what they're doing, which is a great segue to the last topic I wanted to cover with you, and I remember this, we had dinner, I think it was 1996 at the Wharton's Zweig Series, and you were such a phenomenal speaker, and I remember asking you the question and I remember your answer, and I've repeated it ad nauseam for the last 20 years. I said, "David, you're such a great speaker, why, how?" And you were so matter of fact in that you just said "hey, it's an important part of my job, I treat it as a skill, I hired a coach, I practiced like I would do any other skill", and why that's such a powerful story is you clearly are in a position of power, you could clearly have a crazy ego that got in the way of such a matter of fact accomplishment of these tasks and all the PR people I talk to and they hear this story "oh my gosh, we got to get him talking to my executives" because so many people let ego get in the way of what is really an important task for a CEO and a leader which is communication and you recognize that early on and really went after it to make sure that you were very good at this very important task. >> Well, what happened to me, I got lucky, I got lucky. When I got promoted to be the CEO of Schwab, I knew I was going to have to do a lot more public speaking and I already thought I was pretty good at being a public speaker, but I thought I needed to fine tune my messaging, I needed to get it better. So, I looked around and I got some referrals and I hired a guy that I thought was going to be a speech writer for me, that would help craft the message. And, we had our first meeting, and we're talking about an upcoming speech and he says to me things like, "Well, Dave, I want to know more about your life. Tell me how you grew up, tell me what you're proudest moments were, I want to learn about you." And I said to him, "Terry, I'm not looking for a biographer, I want a speech writer, I need a guy that can help me craft my message." And he said, "Well, Dave, that's not how I do things. I need to know who you are, I need to know what your passions are and where they come from so that we can give a message that has more than just words it has meaning, it has your passion built into it, that's what we need to do." And that's what Terry taught me, was that it's not just the words, it's also the passion, energy, and meaning and connection behind the words. And I want to mention one other thing that I think is very important. When people talk about being really good communicators, they often talk about speaking. They don't focus on listening. And listening is a tremendously important skill. So for example, you give a speech, you're the CEO or Senior Executive, you give a speech, do you stay there and do you do a Q+A session? The Q+A session can even be more important than the speech sometimes, because all the employees know that the speech is something that was pre-arranged, it's not on the cuff, it's something that's been thought about and prepared. But the questions and answers are authentic and in the moment. People are clamoring for authentic leadership. That Q+A session, where you're listening for the question and maybe the question behind the question. So you're not just trying to get through them as fast as you can, but you're trying to really answer and listen for the question and the question behind the question. And then answer those from the heart with passion, and that's how you will score the most points with your audience. >> That's great. And then who knows what comes from it, in getting ready for this I came across your blog post talking about Gopi Kallayil a mutual friend at Wharton who reached out to you after that same dinner, and you were happy enough, or you were kind enough to respond and grow a friendship and a relationship that again is lasted for decades. So that's such an important message to listen, as somebody said right, "God gave you two ears and one mouth should try to use them in that ratio." (laughs) Well David, thank you so much for taking some time, again I think these are really trying times in leadership, I think it's really an opportunity for great leaders to shine and those that don't there's really no place to hide. So I really appreciate you sharing your insight and taking a few minutes with us. >> Thanks, Jeff, I hope all the people that follow you and listen to your broadcasts learn something today and come away with some benefit from this time we've spent together. >> Undoubtedly, undoubtedly. Well, thanks again. All right, he's Dave Pottruck, I'm Jeff Frick, you're watching theCUBE, thanks for watching and we'll see you next time. (upbeat music)