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