from the silicon angle media office in Boston Massachusetts it's the queue now here's your host David on tape hello everyone and welcome to this week's wiki bond cube insights powered by ETR in this breaking analysis we want to dig into the so called multi-cloud arena some of the questions we're getting from our community are what is a multi cloud did we really need it what problems does multi-cloud solve and importantly what problems does it create how is this thing called multi cloud likely to evolve and who are some of the key players to watch how do they stack up relative to each other you know recently I got a couple of interesting questions from a customer that says I have all this AI action going on and doing sophisticated modeling and this data lives and oh clouds all over the place how do I cross connect to the data and the workloads that are running on these clouds with the consistence this consistent experience of what our other customers doing another question came up in the community today is there a financial advantage to multi cloud or is it just about avoiding lock-in so I'm gonna take a stab at addressing these questions so first of all let's look at some of the noise that's going on in the marketplace and try to extract a little signal every vendor especially the ones who don't own a cloud are touting this thing called multi cloud and they tell us that customers want to avoid lock-in and organizations want seamless integration across clouds and they say we the vendor are uniquely qualified to deliver that capability although as you can see here in for a not everybody agrees because some feel that multi cloud is less secure more complicated in higher cost now the reality is that one two and three are true as is for a to a certain degree but generally I would say that multi cloud to date is more of a symptom of multi vendor then a clear strategy but that's beginning to change and there's a substantial opportunity out there for anyone to win so let's explore this a little bit and an exclusive sit-down with aunty Jessie prior to reinvent 2019 John Fourier got Jessie to talk about this trend here's what he said we have a large number of companies who have gone all-in on AWS and that's growing but there's gonna be other companies who decide that they're going to use multiple clouds for different reasons you wouldn't have to say that the vast majority of organizations pursuing cloud tend to pick a predominant provider that it's not a 50/50 scenario it's rather it's more like a 70/30 or 8020 or even a 90/10 faria went on to write somewhat paraphrasing I think Jesse in my view it's not hard to find the reasons for using multiple clouds right is M&A there's shadow IT there's developer preference but it's really not multi cloud by design it's just more of the same Enterprise IT mishmash that we've seen for decades so I generally have to say I agree with that but it is changing and I want to dig into that a bit so first let me recap the basic premise that we work off of first cloud is winning in the marketplace we know this building data centers is not the best use of capital unless you're a data center operator or a hyper scaler or you know maybe a SAS provider maybe so more and more work is going to continue to move to the cloud this was pretty much the first wave of cloud if you will a cloud of remote infrastructure services for very obvious workloads like web test dev analytics and certain SAS offerings the second wave of cloud which we've been talking about for 15 years was or should I say is a hybrid connecting remote cloud services to on-prem workloads and the third wave which is really hitting somewhat in parallel is this thing that we call multi cloud now it's not a perfect analogy but these multi generational waves remind us of the early days of networking now some of you may remember that years ago the industry was comprised of multiple dominant vendors that control their own proprietary network stacks for example IBM had SN a digital or deck had decnet all the many computer vendors had their own proprietary nets now in the early to mid-1980s the OSI model emerged with the objective of creating interoperability amongst all these different communication systems and the idea was we're going to standardize on protocols and the model had seven layers all the way from the physical layer through the application but really in reality was a pipe dream because we were way too complicated and and it sort of assumed that customers are gonna rip and replace their existing networks and then standardize on the OSI model now in reality that was never gonna happen however what it did is it open the door for new companies and you saw firms like Cisco and 3com emerged with tcp/ip and Ethernet becoming standardized and enabling connections between these systems and it totally changed the industry as we now know it so what does this have to do with multi-cloud well today you kind of have a similar situation with dominant public cloud leaders like AWS and azure and in this analogy they are the proprietary siloed networks of the past like IBM and digital they're more open obviously but still ultimately customers are going to put workloads on the right cloud for the right job and that includes putting work on Prem and connecting it to the public cloud with call it a substantially similar and ideally identical experience that's what we call hybrid now that's today's big wave and you're seeing it with Amazon's outposts and VMware and Amazon and Azure stack etc so while all this hybrid action is getting wired up customers are putting work into AWS and Azure and certainly Google and IBM cloud and the Oracle cloud and so forth now customers are wanting to connect across clouds with a substantially similar experience because that reduces cost and of course it speeds business outcomes that's what we call multi cloud now I'm not by any means suggesting that Amazon and Microsoft are gonna go the way of the mini computer vendors I don't believe that I think leaders today are much more savvy and tuned into how to surf the waves they're more paranoid and they're frankly just smarter than back in the 70s and 80s but it's not a rite of passage if they ignore the trends they will face challenges that could become driftwood so you're seeing the emergence of some of the moves from the vendor crowd the big whales connecting their infrastructure like AWS and VMware and Microsoft and Oracle quite interesting and IBM Red Hat with everybody cisco Dell HPE with everyone Google with anthos and a lot of other players all are trying to stake a claim in this hybrid and multi cloud world but you also have these emerging players that are innovators companies like CrowdStrike in security cumulant in the backup space and many dozens of well-funded players looking to grab a share of this multi cloud pie and it's worth pointing out that they're all kind of going gaga over kubernetes now of course this makes sense because kubernetes has emerged as a standard it's certainly very popular with developers why because it enables portability and allows them to package applications and of course all they're related to tendencies around those applications and then hand that app off for testing or deployment and it's gonna behave in the exact same way as when they ran it locally this we've seen and we know this but I want to share something I had a great conversation with Bernard golden yesterday and he made an excellent point about well you know kubernetes and containers he said this portability is a necessary but insufficient condition for multi cloud to succeed you still have to have an integrated management approach to security ID management monitoring performance reporting and end get into cross-training of people and skills etc ok I want to shift gears and as always I want to dig into these segments and bring in the et our perspective now pretty sure ETR is a lot of data on multi cloud from their ven meetings and other surveys but what I've done today is pulled some data that I'm using is indicators or proxies for multi cloud so I can't go out and buy me some multi cloud today it doesn't really exist in that form so what we have to do is highlight some of the trends in the data and draw some inferences from that so let's take a look at this chart what it shows is the relative position of a number of companies that my view are participating in the multi cloud arena the chart plots these companies showing net score or remember spending momentum on the y-axis and we've just opposed that to what's called market share on the x-axis market share is a measure of pervasiveness in the data set and what we've done is we've filtered on three sectors cloud container orchestration and container platforms using that as a proxy for multi cloud so these are buyers 791 of them as you can see by the end who are spenders in these three areas and we're isolating on select group of names and as a last filter we selected only companies with 50 or more results in the data set from this survey and we're using this as a multi cloud sector proxy so let me make a couple of comments here first I know kubernetes is not a company but ETR captures spending on kubernetes it's one of the hottest areas in the data set with a nearly 82% net score so we're capturing that as a reference point the next thing I want to say is you can see the big cloud players Azure and AWS and once again as in previous breaking analysis segments we see those two look they're leaders they're out the lead both companies showing very very strong momentum from a net score standpoint now AWS you might say why are you including a diversity if they don't explicitly have a multi cloud offering but in my view you cannot talk about multi cloud without including the leading cloud supplier you also see Google not so much in the market share of the big two but Google's showing strong net score we've talked about that before and they're very well positioned in multi cloud with anthos there behind their playing cloud agnostic to try to catch up again remember this is a proxy that we are running it's not necessarily a reflection of firms specific multi cloud offerings it's an indicator based on the filters that we've run now let's take a look at some of the others rubric the data protection specialists and CrowdStrike was a security darling they show some real strengths both have multi cloud offerings and they have strategies around their look at how she Corp they stand out as an important player in our view as they provide developer tooling to run secure and and deploy applications across clouds VMware cloud is I believe it's a vfc VMware cloud foundation and it's right there in the mix and you can also see fortunate in there as well executing from a security position I talked about them last week in my braking analysis they have a nice cloud portfolio and they're benefiting from execution strong execution let me call your attention to IBM in Red Hat Red Hat OpenShift look at their respective positions on this chart IBM spending velocity or net score is low but Red Hat has quite strong spending velocity and this is CEO Arvind Krishna's opportunity leverage IBM's large install based presence shown here as market share or pervasiveness and bring red hat to the right and leverage open shifts coolness to increase IBM's relevance and elevate it elevated spending velocity if arvind can make the kind of progress that i'm showing here in this picture he'll end up being CEO of the decade but that really is IBM's opportunity you can also see I put Oracle in the chart as well because of their multi cloud relationship with Microsoft which which I actually think has great potential for running mission-critical Oracle databases as I've noted many times I've you know IBM and Oracle both have clouds they're in the cloud game there are hyper scalar clouds but they have very large installed software franchises why is that important because it insulates them from the I ass ix knife fight and the pricing pressures that are putting forth by the hyper scalars the finally I have to mention Cisco I've said many times comes at multi cloud from a position of strength and networking and of course security they've got a huge market presence and not without challenges but they clearly are a player here ok now let's go on and look at some similar proxy data basically the same cut isolated on a few big players participating in multi cloud so again same cut as before but this is this shows a time series isolating on some of those Biggie's showing their net score or spending momentum in cloud and container related sectors that I talked about you got Azure leading GCP showing momentum IBM Red Hat with open shift and VMware all with solid net scores that are in the green cisco not as strong from a net score or spending velocity standpoint but it's shared in or presence in the data set is significant in this cut so two takeaways here really are one this is a wide-open race it's jump ball you really can't pick a winner yet and to each is gonna come at this from their own unique position of strength which brings me to how we see this space evolving this simple chart here really shows how we see the multi cloud infrastructure stack emerging starting at the bottom we show in the stack networking you gotta have networking to cross connect clouds and this is where cisco you has to win the day not optional for them some big players are going after the control plane including Microsoft arc Google with anthos VMware with tans ooh IBM Red Hat and we think eventually AWS is a possibility to enter that game on the data plane you got some big whales like Dell EMC you got NetApp you've got HPE at IBM the big storage players as well you have specialists like pure who's doing some interesting things in block in the cloud and cumulonimbus mention you have a bunch of companies like Veritas cohesive the rubric vMac TIFIA is gonna be in there CommVault I mentioned Klum EO before IBM is another one you got a whole bunch of folks in networking big portfolio plays from the likes of Cisco I said to network I met security from Cisco Palo Alto fortunate along with many of the security specialists we've highlighted in the past like CrowdStrike and there are many many others now on the leftmost side of this chart is really interesting we showed the full stack interconnects here we're referring to the direct cloud to cloud connections in functions up and down the entire stack examples here are AWS VMware yes that hybrid but also emerging at the edge and Microsoft and Oracle so the bottom line is we're seeing a battle brewing between the big companies with larger appetites gobbling up major portions of the market with integrated suites that are playing out within each layer of the stack competing with smaller and nimble players that are delivering best to breed function along those stack layers all right let me summarize so here are the questions that I said I would answer let's see how I did what the heck is multi cloud well let me first say it feels like everything in IT is additive what do I mean by that well we never get rid of stuff you keep things forever think about it the typical enterprise has multiple data centers they get many SAS providers more likely they have you know more than one Iast provider and they're starting to think about what should I do with the edge there is no standard for hybrid or multi cloud deployments you talk to 100 customers and you're gonna hear 120 or 150 or 300 different environments and several orders of magnitude of challenges that they face do we really need multi-cloud not an ideal world no we wouldn't need multi cloud but we talked about how we got here earlier how real is it how real is multi cloud now look companies use multiple clouds it's is it easy to do things across scope these clouds no so it's one of these problems that the industry is created that it can now make money fixing it's a vicious cycle I know but so goes the enterprise IT business what problems does it does multi-cloud solve and create look the goal of multi cloud should be that it creates more value than just the sum of the individual parts and that is clearly not happening yet in my opinion moving data around is a problem so ultimately the value comes from being able to bring cloud services to data that resides all over the place and as Bernard golden implied even with kubernetes the experience is far from seamless so we understand that technology created this problem and IT people processes and technology will be asked to clean up the crime scene as I often say it's a common story in enterprise tech we talked about how multi-cloud will evolve along a stack that it comprises specialists and big companies with very big appetites my opinion is that multi-cloud will evolve as a mishmash and vendor relationships the right tools for the right job the edge IT and OT tensions mergers and acquisitions these are gonna create even a bigger mess down the road we have well-funded companies that are exceedingly capable in this business and the leaders are gonna get their fair share cloud is a trillion-dollar market opportunity and there will not be in my opinion a winner-take-all and multi cloud so who wins like I've tried to lay out some of the leaders within different parts of the stack but there's way more to this story I do believe that the cloud players are well positioned why cuz they're they invented cloud EWS and others who followed right now Microsoft and Google are playing actively in that market but I definitely think AWS will I that space but I think VMware Red Hat IBM Cisco etc some of this from the respective positions of strength and I've sort of they have the added benefit of being cloud semi agnostic because generally they're not wed to a hyper scale cloud you know IBM as a cloud oracle as a cloud but it's on a hyper scale cloud and as always there's specialists that are gonna solve problems that are too small initially for the big whales to see so they get a leader lead bleed to market advantage but those opportunities can grow over time and allow these guys to reach escape velocity now so I'll say multi-cloud in and of itself is I believe an opportunity one that will be attacked from a position of strength within the stack and there are opportunities to be specialists up and down that stack the Akashi Corp alright this is Dave Volante for wiki bonds cube insights powered by ETR thanks for watching this breaking analysis and remember these episodes are available as podcasts you can check it out as you're driving your car wherever you listen to two podcasts you can connect with me at David Villante at Silicon angle calm or at D Volante on Twitter or please comment on my LinkedIn posts thanks for watching everyone we'll see you next time [Music]

>> Announcer: Live from Las Vegas, it's theCUBE, covering HPE Discover 2017. Brought to you by Hewlett Packard Enterprise. (upbeat techno music) >> Welcome back everyone, we're here live in Las Vegas for theCUBE's exclusive three days of coverage for Hewlett Packard Enterprise's Discover 2017, also known as HPE Discover, I'm Jeff Furrier siliconANGLE, here is my co-host, David Villante with Wikibon.org Our next guests are Jeff Carlat, Senior Director, Solutions Good Market for HPE, Internet of Things and Tushar Halgali, who's the IoT Senior Manager at Deloitte these guys putting together all the solutions. Welcome back to theCube, great to meet you, thanks for joining us. >> Jeff: You bet, it's great to be here. Great to see you guys again. >> So one of the things, actually, digital transformation which is really overblown we all know we are in this digital transformation wave. But the thing that we've been hearing on the queue over the past, I'd say 6 months of event coverage, the consistent theme with digital transformation is business transformation, and really people putting it into action. And that really is whether it's a service provider we've heard from earlier, and also just businesses trying to get their value chains and reconstruct their architectures at a business level but then having their infrastructure be responsive to that. And that's cool, but really IoT has kind of changed the equation, right, that's what you guys are doing so I want just dig right into it, IoT wave that's hitting here. >> Jeff: Right >> John: Your thoughts on the impact to customers in real time to their world. I mean obviously they have refresh cycles they're going through all kinds of infrastructure they had apps, Cloud-native on the horizon, Hybrid Cloud what's the impact to their business? How has IoT changed the game for the customers? >> Jeff: Well I'll start it, you can add on. First off, IoT brings the promise of changing the game, but not everyone is really realizing that yet, first-off because right now there's still many, many business challenges for companies of all sizes. Ya know the lack of internal corporate sponsorship to do a massive transformation and change, or the organization and the culture within. Cause you're talkin' a full life cycle digitization rather than, ya know investing or dropping new applications technology wise we've got problems, IoT represents IT merging with OT, so you've got this partnership and your solutions and offerings need to transcend your core data center and your IT technologies with the traditional operational technologies. You're talking companies that have been, Bosch and National Instruments, and folks that have been in the marketplace for some time so it's harder, it's heavy lifting, and there're limitations in the customer environment around the current IT architecture, so first and foremost to get the benefit, you've got to get them across the chasm to be able to deliver that new transformation. >> John: Tushar, I want you to weigh-in on this because the question also kind of digging in here a bit kind of subtext of the original question, where's the mindset of the customer? Are they having a wake-up call moment, are they beyond that? Where are they in the progress bar, if you will, on the IoT? Yeah, they've had some pre-existing infrastructure, operational technologies, sensors. Is it a wake-up call? Where are they? >> Tushar: Yeah, so I mean I think what is happening really is that a lot of organizations are now beginning to look into business outcomes and what technology does for them, right. A lot of them are saying "Well why should we invest on anything else?" So, companies are becoming really focused on top line growth ya know, bottom line cost optimization, and ultimately margin improvement for their shareholders. So, as industry lines are blurring, as new entrants are coming into markets, and new threats are being created there is more pressure from shareholders to come up with new growth opportunities. IoT as a field is sort of encapsulates, and takes all these different technology domains and puts it all together. Case and example, I mean, since 1970 to 2010 the worldwide productivity for manufacturing was about four percent every year, and then it just dropped to one percent. Now that's a really big deal, right. Manufacturing costs are about 18-20 percent of the costs of goods sold for a manufacturing client, so how do you increase the productivity because any impact on the productivity, or reduced down time for a manufacturing client, not only has cause on revenue but also a lot on the profit margin, right. The same thing around retailers. Because of the online presence, and because of the sales are increasing over there retail margins have reduced from 10.5 percent to about 9 percent. So retailers are asking "Well, how do we increase our sales in the in-store channel?" Where 85 percent of their sales are coming. So IoT is a huge component in delivering that. >> John: You bring up a good point. What I love about the IoT, and some of the stuff you guys are doing, is that it's the confluence of big data meets real infrastructure, and what you're referring to we hear this in the ad business all the time. "I don't know where my spins going." It's an instrumentation game, right. So talk about that impact because now actually not an art it's actually science as well. You can actually instrument it and focus on those areas. >> Tushar: I mean absolutely, just to build on the marketing story that you just talked about, that's a huge piece in retail, right. So if you have a multi-brand retailer you want to be able to not only see what your customers are doing, but also try and monetize the data. So one channel is to look into who your marketers are, advertisers are, and then be able to place the ad at the right place, in the right context with the consumer that you might have in your store. And a lot of this is about in-store data attribution right. What is the ROI that marketers and the advertisers are getting back for the spin that they have. And so ROI with the help of, Beacons and Colts and wifi all these technologies, is able to sort of capture all of that location data the contextual data, the behavioral data of the clients along with wireless infrastructure data. Put it all together and create that picture. >> Jeff: And what I'm seeing customers are kind of one of two camps. Those that understand a grocket, but they don't know where to start. How do I truly start digitizing? Then the other ones are they don't fully realize the value and the necessity to start transforming, or their going to be out of business. >> Tushar: Yep. >> Jeff: I mean go look at a lot of examples, your brick and mortars >> Tushar: Yep. >> Jeff: talk about your retails. I think this is where we're coming together to really deliver and make it easier for those clients... >> John: It's the classic case of early adopters. Believers and non-believers, and the believers kind of go jump in the deep end, waffle around, learn how to swim. And then the non-believers become believers cause they get bitten in the butt with cost >> Jeff: Yeah. >> John: or some sort of impact. >> Jeff: Exactly right. >> Tushar: Or their out of business. >> David: But it's a really hard problem for organizations. So and you mentioned it before, is that companies have to go through their digital transformation, but they have to fund it. And it's hard to fund it if your having to grow your top-line, and cut the cost of your legacy systems. Okay so part of the problem is you talk about digital transformation, it's all about technology, it's all about data certainly IoT plays into that as John pointed out but people really don't understand the value of their data. The accounting industry doesn't recognize value of data on the balance sheet. There's really no standards. People don't know how to monetize data. So how can you guys help customers through those really gnarly problems? Where do you start? >> Tushar: Well I mean what we started with was an industry focused view, right. So Deloitte goes to the market by industry, so let's take retail and manufacturing, whichever the case might be, and what we really are looking into is an industrial digital value chain transformation story. So we'll take the value chain off an industry, break it down into processes, and then break that down further into use cases. We'll look at a use case, look at the value drivers of the use case. See what economic impact, or the business outcomes that might be derived of those use cases. And then when you aggregate all of them it starts creating a shareholder value impact, and that becomes really interesting. So case and example, for a retailer you can look at improving the basket size, or in-store conversion improving the the foot fall traffic. All of that improves the growth, increases the revenue. You talk about asset efficiency or improving the resources or the associates, their utilization to store the supply chain operations improvement. All of that improves the cost optimization and together impacts the margin. So we put that picture together for our clients to see in real economic terms. >> David: And data sits at the center of that analysis, right? >> Tushar: Well, correct. So the enablement of the use cases happen through technology and as the various facets of technology, the ERB system, the CRM the point-of-sales, the Beacons, the wifi all work together. The data generated will create 360 degree views of the customer, which then leads to all of these outcomes. >> John: Tushar talk about the value chain piece on that. Because I think that's indicative of IoT's impact as well as other things that are digitally connected. What is the difference between the digital value chain, in terms of its configuration its value, verus non-digital? How they used to approach it from a management perspective, and obviously digital is a little bit different. Is there any characteristics you can point out that you've seen in your observations, and with your engagement with customers, that jump out? >> Tushar: Sure, I mean the traditional value chain I think is very linear, right. If you take a manufacturing value chain for example a lot of it was let's do R&D, come up with a product, then let's go procure the product, the raw materials. Then make the product, then you ship it, logistics, and then you do after sale services. It's very linear one after the other. With the admit of data and the way you capture at every stage of the value chain. Well different stages now talk to one another. So as a machine is about to break you can create a new order, and then it improves the production. So it's less linear and more interrelated, and so the value chain is no longer very simple it's very complex, but by showing visibility into each stage of the value chain, that's where value created and captured from. >> David: And the data model is very complex, >> Tushar: Absolutely. >> David: Before you've got external data and now you've got a whole new data quality challenge >> Tushar: That's right. >> David: and data access challenge. Okay so back to John's question about where are we on the maturity meter? Is it sort of second inning here or the game is just starting, national anthem? >> Jeff: Well, hey for certain industries I think we're on second inning. You go look at areas like oil and gas, I mean there is a lot of historical work going on around machine learning, AI. Go and look at automotive, autonomous vehicles semi-autonomous vehicles, I think that's advancing and advancing rapidly. But I'll guarantee there are many, many industries that they don't even realize how much data they have. And yes there may be tag in two to three percent of that. This is a new wave. This is a really, really exciting time. >> John: So Jeff, on that point are you finding that, that makes a lot of sense actually if people have existing operational technologies, they have some legacy experience in some systems. It may not be connected to IT so they have some legacy with respect to that piece. >> Jeff: Perfect, perfect example. Part of our joint partnership and the announcement that we're making together around IoT is not only deliver the consulting the advisory services, but we're delivering prepackaged offerings specifically for vertical use margins. Asset maintenance and monitoring, we're coming together, bringing together our edge line capabilities we're bringing together PTC and National Instruments from the center. Bringing all this together in consortium, building an appliance and its going through consulting of nature of proof of concept to show and prove through proof of concepts the value that a customer can achieve by harnessing all that data, and being able to actually drive predictive analytics and then well once they see the benefits of that the value, the proof in the pudding, they will expand that across their entire production line, then its just going to go skyrocket. >> John: Alright talk about the relationship with Deloitte. I'd like you guys to just take us through a day in the life of a use case and how someone would envision and engage with you guys. Obviously Deloitte well known on the services side you guys got great credibility and track record, also with you guys IoT new market, how do you guys engage? What does a joint relationship look like? Take us through an example. >> Jeff: Well I'll start. First off we're building off of twenty years of joint partnership together, and a day in the life is we strategically sit down and we take the assets we can bring to the table as the new HPE, and that spans heavily the infrastructure and some of the support, point next services capability and we bring that in with the capabilities of Deloitte and we build these offerings, and we build a comprehensive program to take it to market, and have those discussions at the right level of the organization and hold their hand through this whole transformation process. Don't worry we got ya covered. We can help you get through this, and we can demonstrate the value on the returns. >> Tushar: So yeah, I'll just build on this. Some of the offerings that we have built together now, so as we get a client who's let's say interested in IoT what we'd actually do is sort of work with them and say let's do an IoT workshop, right. It might be a one day workshop, we might get our industry experts that are very focused on the vertical. We might get our technology experts. We might get our ecosystem partners who are doing startups and things of that sort, so they kind of know what is going on in the marketplace. We're together then we'll sit down we'll figure out what's a value chain transformation story. What are the things, let's say a manufacturing client just take for example, needs to do to go from a modern factory to connected factory to a smart factory to do that manufacturing transformation story. What are those 50 60 use cases that they need to go through. And out of that what are the one or two use cases that they need to do today that'll deliver near term tangible value. So for those 50-60 let's create the business case that delivers the enterprise shareholder return. Today what do they need to do to get that quick win. Take those two-three use cases, the offerings that Jeff spoke about, let's take those offerings and within 8 weeks let's deliver a proof of concept that shows the client I can take one of your assets, connect them, get the data out, show the inside, and then create the roadmap for scaling it out to make it a reality. >> Jeff: Start small, think big, and scale fast. That's what we say. >> John: Alright that's a great point I'm glad you brought that up because I want to ask the tough question. Cause this is the bottom line, we hear a lot of customers through our research Wikibon team, and we get a lot of "There's tons of barriers in front of me." So I want to ask you what are the barriers and how do they get over those obstacles, but also privately a lot of CXOs say to us, "Look it, this is like a four year sports contract, if I'm not up and running in four years, I'm out of job." So the notion of bringing the consultant, and HP, and we're going to do a focus group, and we're going to lay this out. The old days, back in the early ERP days, those time cycles were 18 months just to get going, and do the organizational transformation. They need proof on the table immediately. >> Tushar: That's right. >> John: So the Ford CEO was replaced, not sayin that was because of this, but people have short tenure, they need to see results immediately. >> Tushar: That's right. >> John: So the psychology of the pressure, with the work that needs to get done are two huge issues. What are the obstacles? And then the psychology of showing the results immediately. >> Tushar: I think in terms of the sort of business challenges we have a lot of centers around leadership and sponsorship. Do you have a tech focused culture in the company? Right. Is there collaboration between business and IT? Do you have expertise for IoT within the business, or within the enterprise and outside? Right. Those are some very basic, it's people, people, people all the time. From a technology stand point a lot of this is around the whole IT OT convergence piece of things. Right, it's this very complex domain. Nobody has all the knowledge base, so how do you get that to work? And traditionally IT hasn't played well with OT and vice versa. So how do you get that? Standards are evolving around security, privacy things of that sort, so how do you keep up with that? And finally, there are so many different solutions. How you do make sense out of that? Procurement is painful, right. And that's where some of the solutions like Jeff talked about were made. The solutions were at the procurement cycle becomes really simple. >> John: So tons of choices out there, >> Tushar: Right, >> John: That's an obstacle init of itself. >> Tushar: Exactly >> Jeff: Yeah >> Tushar: So how do we deal with these challenges, and how do we jumpstart the story. If you take the principle of agile and software development that's what we have pulled into our offerings, right. Instead of spending three, four, six months in trying to figure out what the universe is going to look like, and how things will change, it's not like that. We've taken sprint approaches to our delivery, like I shared earlier it's about that one day IoT journey workshop, quickly get that done, get it out of the way. >> John: Not a lot of waterfall, which that prolongs that organizational transformation piece >> Tushar: Correct. And then its constant recalibration, that's what we want to focus on. Let's show some quick wins in eight week increments. >> Jeff: And I'll guarantee as we are showing the quick wins in certain verticals, their dropping like dominoes because when they see their competition all of sudden gain efficiencies and providing greater experience for their clients or their customers, believe me everyone wants a piece of that. >> John: Bottom line there's obstacles to point. Move fast, start small, think big, move fast, I love that. And again there's a psychology out there it's real, and being agile, the waterfall takes too long. Alright guys thanks so much for sharing the inside of IoT, congratulations. Event here, what do you think, what's going on for you guys real quick we'll end the segment, final words. >> Jeff: Final words? >> John: 2017 Discover, what's your take away so far? >> Tushar: Well my take away is we are just at the cusp here. In IoT we are still in the, I'd call it the crawl stages of this. IoT's going to be huge, very exciting times coming, and it's going to impact every industry. >> Jeff: Yeah my parting word, I love to see the partner first mentality we have in here. The fact that we are here with all SIs our OT partners. I also love to see we are now building and designing innovations, such as the HP Edgeline Conversion systems from the ground up, specifically for IoT, same thing with Aruba Portfolios. We got a great set of tools and a great set of partners to work with. >> John: We didn't bring up Aruba, we had a big conversation on that earlier. Tushar, Jeff thanks so much for sharing the insight. Internet of Things, Industrial of Things. This theCube, the video of things here at HPE Discover 2017 I'm John Furrier, Dave Villante. We'll be back with more coverage after this short break. Stay with us. (upbeat techno music)