(upbeat music) (logo swooshing) >> Good morning and welcome back to Dallas, ladies and gentlemen, we are here with theCUBE Live from Supercomputing 2022. David, my cohost, how are you doing? Exciting, day two, feeling good? >> Very exciting. Ready to start off the day. >> Very excited. We have two fascinating guests joining us to kick us off. Please welcome Pete and Armando. Gentlemen, thank you for being here with us. >> Thank you for having us. >> Thank you for having us. >> I'm excited that you're starting off the day because we've been hearing a lot of rumors about Ethernet as the fabric for HPC, but we really haven't done a deep dive yet during the show. You all seem all in on Ethernet. Tell us about that. Armando, why don't you start? >> Yeah, I mean, when you look at Ethernet, customers are asking for flexibility and choice. So when you look at HPC, InfiniBand's always been around, right? But when you look at where Ethernet's coming in, it's really our commercial in their enterprise customers. And not everybody wants to be in the top 500, what they want to do is improve their job time and improve their latency over the network. And when you look at Ethernet, you kind of look at the sweet spot between 8, 12, 16, 32 nodes, that's a perfect fit for Ethernet in that space and those types of jobs. >> I love that. Pete, you want to elaborate? >> Yeah, sure. I mean, I think one of the biggest things you find with Ethernet for HPC is that, if you look at where the different technologies have gone over time, you've had old technologies like, ATM, Sonic, Fifty, and pretty much everything is now kind of converged toward Ethernet. I mean, there's still some technologies such as InfiniBand, Omni-Path, that are out there. But basically, they're single source at this point. So what you see is that there is a huge ecosystem behind Ethernet. And you see that also the fact that Ethernet is used in the rest of the enterprise, is used in the cloud data centers, that is very easy to integrate HPC based systems into those systems. So as you move HPC out of academia into enterprise, into cloud service providers, it's much easier to integrate it with the same technology you're already using in those data centers, in those networks. >> So what's the state of the art for Ethernet right now? What's the leading edge? what's shipping now and what's in the near future? You're with Broadcom, you guys designed this stuff. >> Pete: Yeah. >> Savannah: Right. >> Yeah, so leading edge right now, got a couple things-- >> Savannah: We love good stage prop here on the theCUBE. >> Yeah, so this is Tomahawk 4. So this is what is in production, it's shipping in large data centers worldwide. We started sampling this in 2019, started going into data centers in 2020. And this is 25.6 terabytes per second. >> David: Okay. >> Which matches any other technology out there. Like if you look at say, InfinBand, highest they have right now that's just starting to get into production is 25.6 T. So state of the art right now is what we introduced, We announced this in August, This is Tomahawk 5, so this is 51.2 terabytes per second. So double the bandwidth, out of any other technology that's out there. And the important thing about networking technology is when you double the bandwidth, you don't just double the efficiency, actually, winds up being a factor of six efficiency. >> Savannah: Wow. >> 'Cause if you want, I can go into that, but... >> Why not? >> Well, what I want to know, please tell me that in your labs, you have a poster on the wall that says T five, with some like Terminator kind of character. (all laughs) 'Cause that would be cool. If it's not true, just don't say anything. I'll just... >> Pete: This can actually shift into a terminator. >> Well, so this is from a switching perspective. >> Yeah. >> When we talk about the end nodes, when we talk about creating a fabric, what's the latest in terms of, well, the nicks that are going in there, what speed are we talking about today? >> So as far as 30 speeds, it tends to be 50 gigabits per second. >> David: Okay. >> Moving to a hundred gig PAM-4. >> David: Okay. >> And we do see a lot of nicks in the 200 gig Ethernet port speed. So that would be four lanes, 50 gig. But we do see that advancing to 400 gig fairly soon, 800 gig in the future. But say state of the art right now, we're seeing for the end node tends to be 200 gig E based on 50 gig PAM-4. >> Wow. >> Yeah, that's crazy. >> Yeah, that is great. My mind is act actively blown. I want to circle back to something that you brought up a second ago, which I think is really astute. When you talked about HPC moving from academia into enterprise, you're both seeing this happen, where do you think we are on the adoption curve and sort of in that cycle? Armando, do you want to go? >> Yeah, well, if you look at the market research, they're actually telling you it's 50/50 now. So Ethernet is at the level of 50%, InfinBand's at 50%, right? >> Savannah: Interesting. >> Yeah, and so what's interesting to us, customers are coming to us and say, hey, we want to see flexibility and choice and, hey, let's look at Ethernet and let's look at InfiniBand. But what is interesting about this is that we're working with Broadcom, we have their chips in our lab, we their have switches in our lab. And really what we're trying to do is make it easy to simple and configure the network for essentially MPI. And so the goal here with our validated designs is really to simplify this. So if you have a customer that, hey, I've been InfiniBand but now I want to go Ethernet, there's going to be some learning curves there. And so what we want to do is really simplify that so that we can make it easy to install, get the cluster up and running and they can actually get some value out the cluster. >> Yeah, Pete, talk about that partnership. what does that look like? I mean, are you working with Dell before the T six comes out? Or you just say what would be cool is we'll put this in the T six? >> No, we've had a very long partnership both on the hardware and the software side. Dell's been an early adopter of our silicon. We've worked very closely on SI and Sonic on the operating system, and they provide very valuable feedback for us on our roadmap. So before we put out a new chip, and we have actually three different product lines within the switching group, within Broadcom, we've then gotten very valuable feedback on the hardware and on the APIs, on the operating system that goes on top of those chips. So that way when it comes to market, Dell can take it and deliver the exact features that they have in the current generation to their customers to have that continuity. And also they give us feedback on the next gen features they'd like to see again, in both the hardware and the software. >> So I'm fascinated by... I always like to know like what, yeah, exactly. Look, you start talking about the largest supercomputers, most powerful supercomputers that exist today, and you start looking at the specs and there might be two million CPUs, 2 million CPU cores. Exoflap of performance. What are the outward limits of T five in switches, building out a fabric, what does that look like? What are the increments in terms of how many... And I know it's a depends answer, but how many nodes can you support in a scale out cluster before you need another switch? Or what does that increment of scale look like today? >> Yeah, so this is 51.2 terabytes per second. Where we see the most common implementation based on this would be with 400 gig Ethernet ports. >> David: Okay. >> So that would be 128, 400 gig E ports connected to one chip. Now, if you went to 200 gig, which is kind of the state of the art for the nicks, you can have double that. So in a single hop, you can have 256 end nodes connected through one switch. >> Okay, so this T five, that thing right there, (all laughing) inside a sheet metal box, obviously you've got a bunch of ports coming out of that. So what's the form factor look like for where that T five sits? Is there just one in a chassis or you have.. What does that look like? >> It tends to be pizza boxes these days. What you've seen overall is that the industry's moved away from chassis for these high end systems more towardS pizza boxes. And you can have composable systems where, in the past you would have line cards, either the fabric cards that the line cards are plug into or interfaced to. These days what tends to happen is you'd have a pizza box and if you wanted to build up like a virtual chassis, what you would do is use one of those pizza boxes as the fabric card, one of them as the line card. >> David: Okay. >> So what we see, the most common form factor for this is they tend to be two, I'd say for North America, most common would be a 2RU, with 64 OSFP ports. And often each of those OSFP, which is an 800 gig E or 800 gig port, we've broken out into two 400 gig ports. >> So yeah, in 2RU, and this is all air cooled, in 2RU, you've got 51.2 T. We do see some cases where customers would like to have different optics and they'll actually deploy 4RU, just so that way they have the phase-space density. So they can plug in 128, say QSFP 112. But yeah, it really depends on which optics, if you want to have DAK connectivity combined with optics. But those are the two most common form factors. >> And Armando, Ethernet isn't necessarily Ethernet in the sense that many protocols can be run over it. >> Right. >> I think I have a projector at home that's actually using Ethernet physical connections. But, so what are we talking about here in terms of the actual protocol that's running over this? Is this exactly the same as what you think of as data center Ethernet, or is this RDMA over converged Ethernet? What Are we talking about? >> Yeah, so RDMA, right? So when you look at running, essentially HPC workloads, you have the NPI protocol, so message passing interface, right? And so what you need to do is you may need to make sure that that NPI message passing interface runs efficiently on Ethernet. And so this is why we want to test and validate all these different things to make sure that that protocol runs really, really fast on Ethernet. If you look at NPIs officially, built to, hey, it was designed to run on InfiniBand but now what you see with Broadcom, with the great work they're doing, now we can make that work on Ethernet and get same performance, so that's huge for customers. >> Both of you get to see a lot of different types of customers. I kind of feel like you're a little bit of a looking into the crystal ball type because you essentially get to see the future knowing what people are trying to achieve moving forward. Talk to us about the future of Ethernet in HPC in terms of AI and ML, where do you think we're going to be next year or 10 years from now? >> You want to go first or you want me to go first? >> I can start, yeah. >> Savannah: Pete feels ready. >> So I mean, what I see, I mean, Ethernet, what we've seen is that as far as on, starting off of the switch side, is that we've consistently doubled the bandwidth every 18 to 24 months. >> That's impressive. >> Pete: Yeah. >> Nicely done, casual, humble brag there. That was great, I love that. I'm here for you. >> I mean, I think that's one of the benefits of Ethernet, is the ecosystem, is the trajectory the roadmap we've had, I mean, you don't see that in any of the networking technology. >> David: More who? (all laughing) >> So I see that, that trajectory is going to continue as far as the switches doubling in bandwidth, I think that they're evolving protocols, especially again, as you're moving away from academia into the enterprise, into cloud data centers, you need to have a combination of protocols. So you'll probably focus still on RDMA, for the supercomputing, the AI/ML workloads. But we do see that as you have a mix of the applications running on these end nodes, maybe they're interfacing to the CPUs for some processing, you might use a different mix of protocols. So I'd say it's going to be doubling a bandwidth over time, evolution of the protocols. I mean, I expect that Rocky is probably going to evolve over time depending on the AI/ML and the HPC workloads. I think also there's a big change coming as far as the physical connectivity within the data center. Like one thing we've been focusing on is co-packed optics. So right now, this chip is, all the balls in the back here, there's electrical connections. >> How many are there, by the way? 9,000 plus on the back of that-- >> 9,352. >> I love how specific it is. It's brilliant. >> Yeah, so right now, all the SERDES, all the signals are coming out electrically based, but we've actually shown, we actually we have a version of Tomahawk 4 at 25.6 T that has co-packed optics. So instead of having electrical output, you actually have optics directly out of the package. And if you look at, we'll have a version of Tomahawk 5. >> Nice. >> Where it's actually even a smaller form factor than this, where instead of having the electrical output from the bottom, you actually have fibers that plug directly into the sides. >> Wow. Cool. >> So I see there's the bandwidth, there's radix's increasing, protocols, different physical connectivity. So I think there's a lot of things throughout, and the protocol stack's also evolving. So a lot of excitement, a lot of new technology coming to bear. >> Okay, You just threw a carrot down the rabbit hole. I'm only going to chase this one, okay? >> Peter: All right. >> So I think of individual discreet physical connections to the back of those balls. >> Yeah. >> So if there's 9,000, fill in the blank, that's how many connections there are. How do you do that many optical connections? What's the mapping there? What does that look like? >> So what we've announced for Tomahawk 5 is it would have FR4 optics coming out. So you'd actually have 512 fiber pairs coming out. So basically on all four sides, you'd have these fiber ribbons that come in and connect. There's actually fibers coming out of the sides there. We wind up having, actually, I think in this case, we would actually have 512 channels and it would wind up being on 128 actual fiber pairs because-- >> It's miraculous, essentially. >> Savannah: I know. >> Yeah. So a lot of people are going to be looking at this and thinking in terms of InfiniBand versus Ethernet, I think you've highlighted some of the benefits of specifically running Ethernet moving forward as HPC which sort of just trails slightly behind super computing as we define it, becomes more pervasive AI/ML. What are some of the other things that maybe people might not immediately think about when they think about the advantages of running Ethernet in that environment? Is it about connecting the HPC part of their business into the rest of it? What are the advantages? >> Yeah, I mean, that's a big thing. I think, and one of the biggest things that Ethernet has again, is that the data centers, the networks within enterprises, within clouds right now are run on Ethernet. So now, if you want to add services for your customers, the easiest thing for you to do is the drop in clusters that are connected with the same networking technology. So I think one of the biggest things there is that if you look at what's happening with some of the other proprietary technologies, I mean, in some cases they'll have two different types of networking technologies before they interface to Ethernet. So now you've got to train your technicians, you train your assist admins on two different network technologies. You need to have all the debug technology, all the interconnect for that. So here, the easiest thing is you can use Ethernet, it's going to give you the same performance and actually, in some cases, we've seen better performance than we've seen with Omni-Path, better than in InfiniBand. >> That's awesome. Armando, we didn't get to you, so I want to make sure we get your future hot take. Where do you see the future of Ethernet here in HPC? >> Well, Pete hit on a big thing is bandwidth, right? So when you look at, train a model, okay? So when you go and train a model in AI, you need to have a lot of data in order to train that model, right? So what you do is essentially, you build a model, you choose whatever neural network you want to utilize. But if you don't have a good data set that's trained over that model, you can't essentially train the model. So if you have bandwidth, you want big pipes because you have to move that data set from the storage to the CPU. And essentially, if you're going to do it maybe on CPU only, but if you do it on accelerators, well, guess what? You need a big pipe in order to get all that data through. And here's the deal, the bigger the pipe you have, the more data, the faster you can train that model. So the faster you can train that model, guess what? The faster you get to some new insight, maybe it's a new competitive advantage, maybe it's some new way you design a product, but that's a benefit of speed, you want faster, faster, faster. >> It's all about making it faster and easier-- for the users. >> Armando: It is. >> I love that. Last question for you, Pete, just because you've said Tomahawk seven times, and I'm thinking we're in Texas, stakes, there's a lot going on with that. >> Making me hungry. >> I know, exactly. I'm sitting out here thinking, man, I did not have big enough breakfast. How did you come up with the name Tomahawk? >> So Tomahawk, I think it just came from a list. So we have a tried end product line. >> Savannah: Ah, yes. >> Which is a missile product line. And Tomahawk is being kind of like the bigger and batter missile, so. >> Savannah: Love this. Yeah, I mean-- >> So do you like your engineers? You get to name it. >> Had to ask. >> It's collaborative. >> Okay. >> We want to make sure everyone's in sync with it. >> So just it's not the Aquaman tried. >> Right. >> It's the steak Tomahawk. I think we're good now. >> Now that we've cleared that-- >> Now we've cleared that up. >> Armando, Pete, it was really nice to have both you. Thank you for teaching us about the future of Ethernet and HCP. David Nicholson, always a pleasure to share the stage with you. And thank you all for tuning in to theCUBE live from Dallas. We're here talking all things HPC and supercomputing all day long. We hope you'll continue to tune in. My name's Savannah Peterson, thanks for joining us. (soft music)

>>You can put this in a conference. >>Good morning and welcome back to Dallas. Ladies and gentlemen, we are here with the cube Live from, from Supercomputing 2022. David, my cohost, how you doing? Exciting. Day two. Feeling good. >>Very exciting. Ready to start off the >>Day. Very excited. We have two fascinating guests joining us to kick us off. Please welcome Pete and Armando. Gentlemen, thank you for being here with us. >>Having us, >>For having us. I'm excited that you're starting off the day because we've been hearing a lot of rumors about ethernet as the fabric for hpc, but we really haven't done a deep dive yet during the show. Y'all seem all in on ethernet. Tell us about that. Armando, why don't you start? >>Yeah. I mean, when you look at ethernet, customers are asking for flexibility and choice. So when you look at HPC and you know, infinite band's always been around, right? But when you look at where Ethernet's coming in, it's really our commercial and their enterprise customers. And not everybody wants to be in the top 500. What they want to do is improve their job time and improve their latency over the network. And when you look at ethernet, you kinda look at the sweet spot between 8, 12, 16, 32 nodes. That's a perfect fit for ethernet and that space and, and those types of jobs. >>I love that. Pete, you wanna elaborate? Yeah, yeah, >>Yeah, sure. I mean, I think, you know, one of the biggest things you find with internet for HPC is that, you know, if you look at where the different technologies have gone over time, you know, you've had old technologies like, you know, atm, Sonic, fitty, you know, and pretty much everything is now kind of converged toward ethernet. I mean, there's still some technologies such as, you know, InfiniBand, omnipath that are out there. Yeah. But basically there's single source at this point. So, you know, what you see is that there is a huge ecosystem behind ethernet. And you see that also, the fact that ethernet is used in the rest of the enterprise is using the cloud data centers that is very easy to integrate HPC based systems into those systems. So as you move HPC out of academia, you know, into, you know, into enterprise, into cloud service providers is much easier to integrate it with the same technology you're already using in those data centers, in those networks. >>So, so what's this, what is, what's the state of the art for ethernet right now? What, you know, what's, what's the leading edge, what's shipping now and what and what's in the near future? You, you were with Broadcom, you guys design this stuff. >>Yeah, yeah. Right. Yeah. So leading edge right now, I got a couple, you know, Wes stage >>Trough here on the cube. Yeah. >>So this is Tomahawk four. So this is what is in production is shipping in large data centers worldwide. We started sampling this in 2019, started going into data centers in 2020. And this is 25.6 tets per second. Okay. Which matches any other technology out there. Like if you look at say, infin band, highest they have right now that's just starting to get into production is 25 point sixt. So state of the art right now is what we introduced. We announced this in August. This is Tomahawk five. So this is 51.2 terabytes per second. So double the bandwidth have, you know, any other technology that's out there. And the important thing about networking technology is when you double the bandwidth, you don't just double the efficiency, it's actually winds up being a factor of six efficiency. Wow. Cause if you want, I can go into that, but why >>Not? Well, I, what I wanna know, please tell me that in your labs you have a poster on the wall that says T five with, with some like Terminator kind of character. Cause that would be cool if it's not true. Don't just don't say anything. I just want, I can actually shift visual >>It into a terminator. So. >>Well, but so what, what are the, what are the, so this is, this is from a switching perspective. Yeah. When we talk about the end nodes, when we talk about creating a fabric, what, what's, what's the latest in terms of, well, the kns that are, that are going in there, what's, what speed are we talking about today? >>So as far as 30 speeds, it tends to be 50 gigabits per second. Okay. Moving to a hundred gig pan four. Okay. And we do see a lot of Knicks in the 200 gig ethernet port speed. So that would be, you know, four lanes, 50 gig. But we do see that advancing to 400 gig fairly soon. 800 gig in the future. But say state of the art right now, we're seeing for the end nodes tends to be 200 gig E based on 50 gig pan four. Wow. >>Yeah. That's crazy. Yeah, >>That is, that is great. My mind is act actively blown. I wanna circle back to something that you brought up a second ago, which I think is really astute. When you talked about HPC moving from academia into enterprise, you're both seeing this happen. Where do you think we are on the adoption curve and sort of in that cycle? Armand, do you wanna go? >>Yeah, yeah. Well, if you look at the market research, they're actually telling it's 50 50 now. So ethernet is at the level of 50%. InfiniBand is at 50%. Right. Interesting. Yeah. And so what's interesting to us, customers are coming to us and say, Hey, we want to see, you know, flexibility and choice and hey, let's look at ethernet and let's look at InfiniBand. But what is interesting about this is that we're working with Broadcom, we have their chips in our lab, we have our switches in our lab. And really what we're trying to do is make it easy to simple and configure the network for essentially mpi. And so the goal here with our validated designs is really to simplify this. So if you have a customer that, Hey, I've been in fbe, but now I want to go ethernet, you know, there's gonna be some learning curves there. And so what we wanna do is really simplify that so that we can make it easy to install, get the cluster up and running, and they can actually get some value out of the cluster. >>Yeah. Peter, what, talk about that partnership. What, what, what does that look like? Is it, is it, I mean, are you, you working with Dell before the, you know, before the T six comes out? Or you just say, you know, what would be cool, what would be cool is we'll put this in the T six? >>No, we've had a very long partnership both on the hardware and the software side. You know, Dell has been an early adopter of our silicon. We've worked very closely on SI and Sonic on the operating system, you know, and they provide very valuable feedback for us on our roadmap. So before we put out a new chip, and we have actually three different product lines within the switching group within Broadcom, we've then gotten, you know, very valuable feedback on the hardware and on the APIs, on the operating system that goes on top of those chips. So that way when it comes to market, you know, Dell can take it and, you know, deliver the exact features that they have in the current generation to their customers to have that continuity. And also they give us feedback on the next gen features they'd like to see again in both the hardware and the software. >>So, so I, I'm, I'm just, I'm fascinated by, I I, I always like to know kind like what Yeah, exactly. Exactly right. Look, you, you start talking about the largest super supercomputers, most powerful supercomputers that exist today, and you start looking at the specs and there might be 2 million CPUs, 2 million CPU cores, yeah. Ex alop of, of, of, of performance. What are the, what are the outward limits of T five in switches, building out a fabric, what does that look like? What are the, what are the increments in terms of how many, and I know it, I know it's a depends answer, but, but, but how many nodes can you support in a, in a, in a scale out cluster before you need another switch? What does that increment of scale look like today? >>Yeah, so I think, so this is 51.2 terras per second. What we see the most common implementation based on this would be with 400 gig ethernet ports. Okay. So that would be 128, you know, 400 giggi ports connected to, to one chip. Okay. Now, if you went to 200 gig, which is kind of the state of the art for the Nicks, you can have double that. Okay. So, you know, in a single hop you can have 256 end nodes connected through one switch. >>So, okay, so this T five, that thing right there inside a sheet metal box, obviously you've got a bunch of ports coming out of that. So what is, what does that, what's the form factor look like for that, for where that T five sits? Is there just one in a chassis or you have, what does that look >>Like? It tends to be pizza boxes these days. Okay. What you've seen overall is that the industry's moved away from chassis for these high end systems more towards pizza, pizza boxes. And you can have composable systems where, you know, in the past you would have line cards, either the fabric cards that the line cards are plugged into or interface to these days, what tends to happen is you'd have a pizza box, and if you wanted to build up like a virtual chassis, what you would do is use one of those pizza boxes as the fabric card, one of them as the, the line card. >>Okay. >>So what we see, the most common form factor for this is they tend to be two, I'd say for North America, most common would be a two R U with 64 OSF P ports. And often each of those OSF p, which is an 800 gig e or 800 gig port, we've broken out into two 400 gig quarts. Okay. So yeah, in two r u you've got, and this is all air cooled, you know, in two re you've got 51.2 T. We do see some cases where customers would like to have different optics, and they'll actually deploy a four U just so that way they have the face place density, so they can plug in 128, say qsf P one 12. But yeah, it really depends on which optics, if you wanna have DAK connectivity combined with, with optics. But those are the two most common form factors. >>And, and Armando ethernet isn't, ethernet isn't necessarily ethernet in the sense that many protocols can be run over it. Right. I think I have a projector at home that's actually using ethernet physical connections. But what, so what are we talking about here in terms of the actual protocol that's running over this? Is this exactly the same as what you think of as data center ethernet, or, or is this, you know, RDMA over converged ethernet? What, what are >>We talking about? Yeah, so our rdma, right? So when you look at, you know, running, you know, essentially HPC workloads, you have the NPI protocol, so message passing interface, right? And so what you need to do is you may need to make sure that that NPI message passing interface runs efficiently on ethernet. And so this is why we want to test and validate all these different things to make sure that that protocol runs really, really fast on ethernet, if you look at NPI is officially, you know, built to, Hey, it was designed to run on InfiniBand, but now what you see with Broadcom and the great work they're doing now, we can make that work on ethernet and get, you know, it's same performance. So that's huge for customers. >>Both of you get to see a lot of different types of customers. I kind of feel like you're a little bit of a, a looking into the crystal ball type because you essentially get to see the future knowing what people are trying to achieve moving forward. Talk to us about the future of ethernet in hpc in terms of AI and ml. Where, where do you think we're gonna be next year or 10 years from now? >>You wanna go first or you want me to go first? I can start. >>Yeah. Pete feels ready. >>So I mean, what I see, I mean, ethernet, I mean, is what we've seen is that as far as on the starting off of the switch side, is that we've consistently doubled the bandwidth every 18 to 24 months. That's >>Impressive. >>Yeah. So nicely >>Done, casual, humble brag there. That was great. That was great. I love that. >>I'm here for you. I mean, I think that's one of the benefits of, of Ethan is like, is the ecosystem, is the trajectory, the roadmap we've had, I mean, you don't see that in any other networking technology >>More who, >>So, you know, I see that, you know, that trajectory is gonna continue as far as the switches, you know, doubling in bandwidth. I think that, you know, they're evolving protocols. You know, especially again, as you're moving away from academia into the enterprise, into cloud data centers, you need to have a combination of protocols. So you'll probably focus still on rdma, you know, for the supercomputing, the a AIML workloads. But we do see that, you know, as you have, you know, a mix of the applications running on these end nodes, maybe they're interfacing to the, the CPUs for some processing, you might use a different mix of protocols. So I'd say it's gonna be doubling a bandwidth over time evolution of the protocols. I mean, I expect that Rocky is probably gonna evolve over time depending on the a AIML and the HPC workloads. I think also there's a big change coming as far as the physical connectivity within the data center. Like one thing we've been focusing on is co-pack optics. So, you know, right now this chip is all, all the balls in the back here, there's electrical connections. How >>Many are there, by the way? 9,000 plus on the back of that >>352. >>I love how specific it is. It's brilliant. >>Yeah. So we get, so right now, you know, all the thirties, all the signals are coming out electrically based, but we've actually shown, we have this, actually, we have a version of Hawk four at 25 point sixt that has co-pack optics. So instead of having electrical output, you actually have optics directly out of the package. And if you look at, we'll have a version of Tomahawk five Nice. Where it's actually even a smaller form factor than this, where instead of having the electrical output from the bottom, you actually have fibers that plug directly into the sides. Wow. Cool. So I see, you know, there's, you know, the bandwidth, there's radis increasing protocols, different physical connectivity. So I think there's, you know, a lot of things throughout, and the protocol stack's also evolving. So, you know, a lot of excitement, a lot of new technology coming to bear. >>Okay. You just threw a carrot down the rabbit hole. I'm only gonna chase this one. Okay. >>All right. >>So I think of, I think of individual discreet physical connections to the back of those balls. Yeah. So if there's 9,000, fill in the blank, that's how many connections there are. How do you do that in many optical connections? What's, what's, what's the mapping there? What does that, what does that look like? >>So what we've announced for TAMA five is it would have fr four optics coming out. So you'd actually have, you know, 512 fiber pairs coming out. So you'd have, you know, basically on all four sides, you'd have these fiber ribbons that come in and connect. There's actually fibers coming out of the, the sides there. We wind up having, actually, I think in this case, we would actually have 512 channels and it would wind up being on 128 actual fiber pairs because >>It's, it's miraculous, essentially. It's, I know. Yeah, yeah, yeah, yeah. Yeah. So, so, you know, a lot of people are gonna be looking at this and thinking in terms of InfiniBand versus versus ethernet. I think you've highlighted some of the benefits of specifically running ethernet moving forward as, as hpc, you know, which is sort of just trails slightly behind supercomputing as we define it, becomes more pervasive AI ml. What, what are some of the other things that maybe people might not immediately think about when they think about the advantages of running ethernet in that environment? Is it, is it connecting, is it about connecting the HPC part of their business into the rest of it? What, or what, what are the advantages? >>Yeah, I mean, that's a big thing. I think, and one of the biggest things that ethernet has again, is that, you know, the data centers, you know, the networks within enterprises within, you know, clouds right now are run on ethernet. So now if you want to add services for your customers, the easiest thing for you to do is, you know, the drop in clusters that are connected with the same networking technology, you know, so I think what, you know, one of the biggest things there is that if you look at what's happening with some of the other proprietary technologies, I mean, in some cases they'll have two different types of networking technologies before they interface to ethernet. So now you've got to train your technicians, you train your, your assist admins on two different network technologies. You need to have all the, the debug technology, all the interconnect for that. So here, the easiest thing is you can use ethernet, it's gonna give you the same performance. And actually in some cases we seen better performance than we've seen with omnipath than, you know, better than in InfiniBand. >>That's awesome. Armando, we didn't get to you, so I wanna make sure we get your future hot take. Where do you see the future of ethernet here in hpc? >>Well, Pete hit on a big thing is bandwidth, right? So when you look at train a model, okay, so when you go and train a model in ai, you need to have a lot of data in order to train that model, right? So what you do is essentially you build a model, you choose whatever neural network you wanna utilize, but if you don't have a good data set that's trained over that model, you can't essentially train the model. So if you have bandwidth, you want big pipes because you have to move that data set from the storage to the cpu. And essentially, if you're gonna do it maybe on CPU only, but if you do it on accelerators, well guess what? You need a big pipe in order to get all that data through. And here's the deal. The bigger the pipe you have, the more data, the faster you can train that model. So the faster you can train that model, guess what? The faster you get to some new insight, maybe it's a new competitive advantage. Maybe it's some new way you design a product, but that's a benefit of speed you want faster, faster, faster. >>It's all about making it faster and easier. It is for, for the users. I love that. Last question for you, Pete, just because you've said Tomahawk seven times, and I'm thinking we're in Texas Stakes, there's a lot going on with with that making >>Me hungry. >>I know exactly. I'm sitting up here thinking, man, I did not have a big enough breakfast. How do you come up with the name Tomahawk? >>So Tomahawk, I think you just came, came from a list. So we had, we have a tri end product line. Ah, a missile product line. And Tomahawk is being kinda like, you know, the bigger and batter missile, so, oh, okay. >>Love this. Yeah, I, well, I >>Mean, so you let your engineers, you get to name it >>Had to ask. It's >>Collaborative. Oh good. I wanna make sure everyone's in sync with it. >>So just so we, it's not the Aquaman tried. Right, >>Right. >>The steak Tomahawk. I >>Think we're, we're good now. Now that we've cleared that up. Now we've cleared >>That up. >>Armando P, it was really nice to have both you. Thank you for teaching us about the future of ethernet N hpc. David Nicholson, always a pleasure to share the stage with you. And thank you all for tuning in to the Cube Live from Dallas. We're here talking all things HPC and Supercomputing all day long. We hope you'll continue to tune in. My name's Savannah Peterson, thanks for joining us.

>> From theCUBE Studios in Palo Alto in Boston, connecting with thought leaders all around the world. This is a CUBE conversation. >> Hi, I'm Stuart Miniman. and welcome to this special CUBE conversation. Always love when we get to talk to founders of companies, when they're drilling into some interesting technologies. I want to welcome a new guest to theCUBE as well as one of our CUBE alumni, sitting right next to me on the screen. First of all, we have Martin Casado, who is a general partner within Andreessen Horowitz. Martin great to see you. >> Its great to be here. >> And you've brought along Mike Del Balso also who is the co founder and CEO of Tecton recently out of stealth going to dig into a lot of the ML discussion. Mike, thanks for joining us. >> Thanks for having me on. Alright, so Martin look, you're no stranger to being a founder yourself, we've loved having you on theCUBE over the years. I have to get since we're getting you on here in 2020, we of course need to start with the fact that there's a global pandemic going on. and I'm curious from our standpoint, from an investment standpoint and looking at technology How does this make it a little bit different in 2020, say than you would've thought coming into the year? >> Yeah, so I think there's kind of a near term answer and a long term answer. I think the near term answer is people don't really understand what the broad impact is going to be. And so companies in the portfolio and the guidance that we do is to be conservative with cash. let's see how Q2 plays out and then let's figure out the right way to kind of operate the company in light of the macro changes. Long term however, it's very clear that every digital transformation project right now is being fast tracked. And as a result we think it's a huge boom to infrastructure. And as who been for the software. Right? like where in the past you could deal with kind of legacy setups that were on print. This is just not the case anymore. So take for a company like Tecton, Mike's company, like there's a lot of conversations that happen now. where the company is like, wow, we really need to have our infrastructure digitized and it all needs to be in the cloud, and all need to be remote and so forth. So we're actually seeing a ton of tailwinds even though there's uncertainty on the macro environment in the near term. >> Yeah. You make some great points, Martin absolutely. The companies that have actually gone through some digital transformation, the goals of that is number one I should be data-driven, number two I should be able to be much more agile. And that's what we need in uncertain times is to be able to react fast and answer it. Mike unfortunately I've talked to plenty of companies, you can't necessarily choose when's the right time to launch a company. When's the right time to do an IPO, trying to time the market. But sorry to say interesting times are upon us. So let's talk a bit about Tecton, give us a little bit of your background the team, the core team I believe coming out of Uber with the Michelangelo project that led to Tecton? >> Yeah. Great. So at Tecton we really focus on what we call operational machine learning, which is really about helping organizations really use machine learning and applied context, really powering customer experiences, powering business processes, things that really make it to production. And so we help these machine learning, AI efforts get past the finish line. And a little bit about the background of me, I used to work at Google as a product manager for the machine learning teams that power the ads auction. So the models that choose which ads to show. and run in real time and are highly productionized. and are really core to the business. And then I was at Uber after that and Uber helped start their first centralized machine learning team. And it was really the whole journey for Uber going from just starting to getting to tens of thousands of models in production. And a big component of that was a lot of the technology that we built there, the platforms and infrastructure that we built to support the different business teams. To be able to embed machine learning and AI products. And so what we're talking about, all these very applied use cases real time, fraud detection, ETA estimation, search pricing. All these things, when you think about with Uber. so through that journey of supporting and helping them get to 100 with machine learning. We built out this platform called Michelangelo, which is really a machine learning platform. It's really an end to end machine learning platform. Learned a lot of lessons as we helped out, dozens of teams. go through the full life cycle, start with starting a project. What is this, what does this mean? What does my business problem, how does it translate to a machine learning problem all the way to having a model in production monitored, and really fully productionized and kind of a growing core to that business. So we learned a lot of lessons from building that at Tecton. My co-founders are the other leaders of that project and we learned a lot of really important lessons that lead to the success of these machine learning projects and we're now focused on helping a lot of other organizations really start up their machine learning efforts and get these things into production. >> Yeah Martin, maybe you could give us a little bit of context here. When I think about repeatability of solutions, how much they scale, there's only so many Google's and Uber's out there. when I look back at the big data world, there wasn't a lot of repeatability, it seemed like everything was custom. What did you see with Tecton? What are you looking at in the ML space that made them such an attractive investment? >> Sure. So maybe let's just pull back and talk about what's going on in systems and infrastructure in general. And I actually think this is probably the biggest shift. Certainly I've seen in my career which is, it used to be, if you looked at a system, let's say a super but whatever system, the correctness of that system. and the performance of that system and the compliance of that system, and the security was dictated by the code that you wrote, right? You wrote bad code you made bugs, you had vulnerabilities in your code that would dictate the system. But more and more that's actually not the case. I mean these days kind of performance, accuracy, security compliance is actually dictated by the data that you feed into. Right? You create these models, you feed the data models, the data gives you output and the data that you feed in and like your work flows around those models who are really dictating things like pricing or things like fraud, these really important things. And unlike code, we don't have the tools to manage data in the same way. And so if you think of it we're moving kind of from this code economy, to this data economy more and more techniques to correct dictates the correctness of all of these systems. and we're talking about trillions of dollars of market cap But if you actually look at the tooling around it, it still feels like the seventies around code, which is like you've got fiefdoms and you've got a lot of tribal knowledge. And so we've been tracking this trend for a long time. We're investors in Databricks We've got a large data portfolio. I mean, it's very obvious if you look at what's happening with the cloud data warehouses, if you think like Redshift, BigQuery and Snowflake. The world is going data extracting information out of data. And so on the backdrop of that, we're like okay, you need to be able to think of data like you think of code. and have the tooling around it that helped makes the lives of people working with this stuff simpler, especially for the core use cases which is ML and AI. And to that end I think that this is broadly known in the industry but like looking in the leading companies is like a crystal ball into the future, right? Because they tackle a lot of the problems before the rest of the industry did. And Michelangelo was very well know as the leading project in this. It had a broad set of respect from the community and kind of created this notion of a feature store which has now been replicated. And so really this is like the preeminent project in one of the biggest macro transformations. Beyond that, we met the team that are fantastic. We've got great chemistry, we've got a lot of similar backgrounds. And so the investment was pretty straight forward from that. But I do think it's important to frame it in the context of this macro shift that's going on. >> Yeah. it can't be overstated how important data is. I do think we need a new analogy probably with what happened with the global pandemic. Everybody was talking about data being the new oil and oil is pretty deep right now. And data is definitely not losing its value. Mike, when I read some of the discussion about Tecton enables data scientists turn raw data into production ready features and predictive singles as signals it sounds really impressive. So help us understand kind of the core thing that you do and where we are in the product life cycle. >> Great. Well so a machine learning application there's fundamentally two components. Right? There's a model that you have to build that's going to make the decisions, given a certain set of inputs. And then there's the features which ended up being those inputs. that the model uses making decision. common machine learning infrastructure stats, really are split into two layers. There's a model management layer and a feature management layer. And that's an emerging pattern in some of the more sophisticated machine learning. stacks that are out there. And what we build at Michelangelo we really had this model management layer, this feature management layer, and we recognize that that feature management layer was the thing that really allowed us to go from not just zero to one, but one to end and scale out machine learning across a number of different used cases and allow individual data scientists to own more than just one model in production. And so really what's at the core of that is a few components. The first is just feature pipelines. So these are data pipelines that plug into the businesses raw data via batch streaming, real time data and turn those into features that are these predictive signals and models consume. The second part of that is a feature store, which catalogs these feature transformations, catalog these pipelines and draws, the output raw data or the output feature data. And then the third component is feature service. Making those features accessible to a data scientist when they're building their models. And to the models in the production environment so they can make these decisions sometimes needed in milliseconds for real time decisioning that is quite common. and a lot of high value machine learning applications. what Tecton really is, it's a data platform for machine learning that manages all the feature data and feature transformations that allow an organization to share the predictive signals. These features across use cases in reading catalog needs and understand what they are. And secondly get these into production so they don't get hung up in that final stage right before they're trying to cross the finish line with the machine learning project. >> Stuart: All right. And Mike the product today, my understanding of private beta. You do have some customers at that point, tell us a little bit about that. >> Yeah, we're at private beta with a number of customers. We just went into full production with it last month. A couple of other customers that I maybe shouldn't name on the air, but we are spending time engaging in kind of like deep hands-on engagements. with different teams who are really trying to set up their machine learning on the cloud. Figuring out how to get their machine learning in production. And it tends to be teams that are trying to really use machine learning for operational use cases. Really trying to drive real business decisions and power their product customer experiences. And not as much as a lot of the kind of like research algorithm research stuff, but we're really just trying to solve these core data problems that are preventing machine learning projects from being successful. >> Yeah. And it was interesting Martin. I was listening to some of what Mike was saying I'm like, okay. It's not quite the analogy of micro-segmentation. or separating the control plane or the network plane and networking, but there were some analogies there. What I want to ask you though is the role of data? I talked to Andy Jassy a couple of years ago. I asked him the flywheel for AWS for years was customers. How many customers they could get and I was wondering does data become that new flywheel? And there's the center of gravity's and the customers that can happen and monetize with going there. So I'm just curious your thoughts on that. >> So I think people don't appreciate how different data is than code. And so I just want to start there because I think it's really germane to this topic. So listen code is like a finite state. Right? It's like, it's lines of code. You can build it, you can modularize it, It's like building a house. And so the tools that you put around code kind of reign in, what's already a fairly low entropy system, like a fairly orderly system. Data On the other hand, data is like the natural world. It's all of the complexity of the universe. Right? It's the behavior of humans. It's temperature readings and there's so much more complexity. and there's so much more entropy in data that the way that you deal with it is so fundamentally different than you have to deal with code. And so we've all of these and so I wanted to start that with we've heard all of these analogies about data, data is the new oil data is for the value, et cetera, et cetera, et cetera. But a lot of it's tautological, meaning yes, of course there's value in data. Yeah. Yes. If you have proprietary access to data, you've got proprietary access to data. But what we don't really know is how do you take data and reign it in? So you can use it in the same way that you use software system. We actually don't even know how to do that and so talking about things like data network effects and extracting data is a little bit preliminary because we still actually don't even understand, like how much work it takes to mine insights from data. What I do know you need, I do know you need the tools to do it and I do know that those tools are quite different. and so I think that we're now in this era building the tooling that is required to extract the insights of that data. And I think that's a very necessary step and this is where a Tecton comes in, to provide that tooling. And I think once we have a better handle on that then we can start asking these deeper questions, which I think are great questions. But the things like how defensible is data? Do you have network effects of the data? can you put in a finite amount of effort and extract signal at all times? Like how messy is data, et cetera. So I think that's kind of where we are in this journey, which is exactly why you need companies like Tecton to help answer. >> Alright. So Mike there's been the promise of really unlocking data now. There has been a really interesting discussion point for the last five or 10 years. The company is named Tecton, I've read some of the blog posts and talk about the Cambrian explosion and changes there. So give us if we're looking forward, you've just come out of stealth. What is success for Tecton two to three years out from now? >> Yeah, I think the biggest thing is we're trying to help organizations. Recognize that their data really is an asset and treat their features like assets. And when we can get to a point where organizations that teams that want to use machine learning and production don't need to throw a million data engineers at a problem. And we get added to a point where machine learning is not, a special team of experts that are super expensive that you kind of leave in the corner of your building and hope they come back 18 months later with some project that is showing some value, that would be success for us. we really are dead focused on the problems that are preventing these projects just from getting into production. And when we see the industry as a whole have seen success with these machine learning projects, I think we will have our mission accomplished. >> All right, Martin, I'll give you the final word to the opportunity you see in front of Tecton. >> I honestly think the data industry is going to be 10 X the computer industry. I just think like with compute you're building houses from the ground up and there's a ton of value there. I think with data is you're extracting insight and value from the universe, right? It's like the natural system. And every company has data and lots of data and all of it has some information. And so I think that this is a chance to be a very, very pivotal company. in democratizing access to data. So I think that the opportunity is enormous. >> Well, Martin, thank you for joining us again on the update, Mike, thank you Welcome to being a CUBE alum. Definitely hope to have you back soon to track the journey, congrats on step one out the door and best of luck going forward. >> Thank you. >> That's great. Thanks too >> All right. Be sure to check out the cube.net. for the upcoming events that we have today they're all virtual, but the interviews are all there as well as all the archive. I'm Stuart Miniman and thank you for watching theCUBE. (soft upbeat music)

>> From the Salesforce tower in downtown San Francisco, it's theCUBE, covering Accenture Tech Vision 2019 brought to you by Silicon Angle Media. (upbeat music) >> Hey welcome back, everybody. Jeff Frick here with theCUBE. We are in an exciting new location. Last year we covered the Accenture technology vision release 2018. It was at Minna Gallery, cool event. But this year the venue is off the hook and 33 stories high and we're really excited to be in the brand-new Accenture Innovation Hub and joining me here our first guest, John Del Santo, he is the senior managing director for the West region for Accenture and he is responsible for this beautiful five-story. So John, first off congratulations to you and the team. >> Thanks, it's been a big project opening up this place over the last year, but it's come together great. >> Yeah and this morning they had a nice ribbon cutting, all kinds of dignitaries so, you know, what does this mean in terms of kind of, you've been with the center a long time. Your presence in the Bay Area specifically, but also as part of more of this global innovation effort. >> Well I think it's this, this is bringing together all the best of Accenture that we already had in the Bay Area. We're putting it all under one roof. We're relocating everybody and we're expanding the team. So we announced 500 new technology jobs here in this location over the next year and expanding our apprentice program. But basically, it's all about bringing more talent to this location in San Francisco to do more projects with clients in this space. >> Right. So we'll get into it with some of the other folks that we have scheduled, but it's both a coworking space for the Accenture people in town and three solid floors of all kinds of labs and innovation, kind of hands-on spaces, if you will, to do this work with your clients. >> Absolutely, that co-creation, we think, is what is really differentiating us from our competitors and it's really allowing our clients to work with us and our experts, our technology experts, and the ecosystem partners that we do a ton of work with, real time to solve a problem. Brainstorm a problem, prototype it, solve it over a very short period of time. >> Yeah, I think it's a pretty unique approach that you guys have, which is imagine the future and then create the future. >> Yeah >> As opposed to just reacting to the future. And you made an interesting comment this morning about, you know, be the disrupter, not the disruptee. And my question is really, as you see the leadership at these traditional companies that are afraid of being disrupted, how are they kind of changing the way that they do things, knowing that the digital natives and the threats that they don't even see coming from a completely different direction are now bearing down, and they have to get with the program. >> Well they do have to. And then it's really our job, our purpose, you know, the talent that we have in this company's purpose is to make our clients succeed and be disrupters. Because if they're not, they will be disrupted. And so it's in our best interest to make sure we're bringin' in the best talent, pushing their thinking on ideas, and actually getting to a solution that can actually allow them to differentiate and serve their customers better. >> Right. >> So that's what we're all about, is making sure our clients are successful. >> And draggin' 'em kicking and screaming? Or are they, are they seeing-- >> Absolutely not. >> Are they seeing it in their competition? I mean, in terms of kind of that board-level discussion, where, you know, it's passe that everybody's a technology company, and everybody's doing digital disruption, but you're down in the weeds helping these people actually execute the detail. >> Yeah, well it's funny, you say everyone's a digital company, that was our big theme a few years ago at this exact event. >> Right, right. >> Absolutely, not kicking and screaming. Most executive teams, most business teams that we work with understand that they need to change. The pace of change at their business is rapid, it's faster and faster, and every year it gets faster, and so they need to actually be a lot more agile in that >> Right. >> And move quickly. >> So one of the big things in like the singularity and accelerating pace of change. And some of these big kind of macro trends that we're experiencing is that there's no single person that sees all the innovation change across this broad front, by industry, by role, etc. You guys are in a pretty unique position 'cause you actually get to see the technology innovation and the disruption and the digitization across a number of industries as well as a number of roles. So you can kind of see this big huge glacier that's moving down the valley. >> That's one of the really cool things about this particular geography and location is that literally steps from our door here on Mission Street in San Francisco, we've got clients from ten, fifteen different industries that we serve, and we can bring talent from ten or fifteen plus different industries plus the technology skills to make sure they're looking at the problem from all angles. So if it's a retailer, are they really thinking about financial services, 'cause we've got both skills here. If it's a retailer, are they thinking about platform-based selling? Do they have an omnichannel strategy? We've got the skills in this location cross-industry to help serve banks, retailers, products companies, software platform companies, etc. And I don't think you can find that anywhere else, at least in the Continental United States, given kind of where we are in our geography. >> Right. So you had a couple of special guests this morning at the ribbon cutting. You had a customer, which is great, but you also had a representative from City of San Francisco and I just want to shift gears and talk about, you know, what it is to be kind of an active member of the community. You know, the responsibility of companies we're seeing, with kind of this backlash, if you will, against some of the mega-companies out there. It's more than just taking care of your customers. It's more than just taking care of your employees and even your stockholders. But now companies are being asked to be more kind of responsible and active participants in their local community. That's always been sort of part of our ethos. It's always been part of our vision to help our clients succeed, but also to change the way the world works and lives. And therefore, we have to be really active in our communities. We're being a little bit more explicit about it lately. But it's our view that we need to be able to improve where we're working and living, 'cause our people are active and it's important that we help serve 'em. We have a very strong public service business. We serve the State of California, we serve the City and County of San Francisco as well as well as other entities in California. And it's critical for us to help improve California as we improve the businesses in California. And so it's clearly part of our mission. >> Right. The other thing I think it's interesting is kind of companies' roles with higher education. We've seen a lot of work that Accenture's doing with community colleges and, you know, it's more than just helping so that you get good talent to feed your own system, >> Right. >> But it's really, as the pace of change just continues to accelerate, you know, historical institutions aren't necessarily best-equipped to move that fast. So again, you guys are taking a much more active, you probably done it before, but more active vocal role in the local academic institutions as well. >> Absolutely, I mean, our university relationships are really, really strong, always have been. But it's always been a little selfish on our end. We're always trying to get the best talent out of the universities locally here and there's obviously great schools in the Bay Area. We want to be more engaged with those universities on projects together as well. We want more of a 360-degree relationship. We've got great examples of where we've done research with some of the universities here locally, where we've co-innovated with some of them and we want to do more of that so that there's more of a solid relationship. It's not just about us, you know, helping them find the best students to work here, >> Right. >> Which we want, (laughs) and we do every year, but making sure that we're actually involvin' them from a research perspective and any other kind of, you know, philanthropic idea that we might have together. >> Right. So big event tonight, big event this morning, >> Yeah. >> So before I let you go, it's a brand-new space, I wonder if you could share a couple fun facts for the people who haven't come to visit yet, but hopefully will come as part of a project and a co-creation about some of the cool unique features that you guys have-- >> Well some >> Built in this thing. >> Unique features in the building. First of all, there's unique features with the talent. So we have researchers here, labbers, we call 'em, from our labs, that have, you know, Accenture has thousands of patents. More than 10% of them have been actually invented here. So our inventors are a secret that we've had in Northern California for a long time and they're all based here now. We've got some really cool spaces. We've got an augmented reality room, which is basically a 360-degree room where you can, rather than having to wear virtual-reality goggles, you can actually go inside of a computer, go inside of a lab, go inside of a hospital, and get an experience that's much more hands-on and a lot more immersive, if you will, than you could any other way. We've got a maker lab where we actually are makin' stuff. So we've got a design business here where we've helped physically make not only software, we make a lot of software, everyone knows that, but we've actually made products that have embedded software in them and so there's that fabrication capability we actually have in this building as well, which is pretty unique for a high-rise. (laughs) so >> Right. No, we saw all the machines back there, >> Yup. >> Had a good tour earlier today so-- >> Oh lots of robots and toys and all that good stuff, too. >> Yeah, that's right, it's all the robot room. All right, well, John, thanks for taking a few minutes of your time. Really exciting day for you and the team, >> Yeah. >> And nothing but congratulations. >> Thank you so much. >> All right. >> Thank you, thanks for coming. >> He's John, I'm Jeff, you're watching theCUBE. We're at the brand-new Accenture Innovation Hub in downtown San Francisco in the Salesforce tower. Thanks for watching. (upbeat music)

(upbeat music) >> Hello everyone. I'm John Furrier here in Palo Alto at our CUBE headquarters. We're here with John Del Santo, Senior Managing Director at Accenture for a Cube Conversation. John, welcome to theCUBE. Good to see you. >> Thanks, John. Great to be here. >> So we just talked before we came on camera about Accenture and all the stuff you guys are doing. You guys are in the cloud heavily. We've been following, you guys have probably one of the most comprehensive analytics teams out there. And global SI market and just, the world's changing. So it's pretty fun. I'm looking forward to this conversation. So I got to ask you first, before we get started. I want to jump in with a ton of questions. What is your role at Accenture? You're in the Bay Area. Take a minute to explain what you do for Accenture and what's your territory. >> I've got the best job at Accenture. So, Accenture's got close to half a million people right now and my job is, I'm responsible for our business on the West Coast, across all of our industries, et cetera. I've been here 32 years, so I've seen a lot of things happen in the Bay Area. And I now have the responsibility of making sure that we're doing great work for our clients. And we're doing great work in the community. And then we're providing great opportunities to the thousands of people that work for us here in the Bay Area and across the West Coast. So it's a lot of fun. >> Obviously, West Coast is booming. And for tech it's been a hotbed. And obviously the industry's across the board now is global. I got to ask you because, you know, you've been around multiple waves of innovation. And Accenture's been, had their hands in enabling a lot of value creation for clients. You guys have a great reputation. There's a lot of smart people. But the waves are always kind of different in their own way, but sometimes it's the same. What's different about the way we're living now? Because you can almost look back and see the major inflection points. Obviously the PC revolution, client server, interoperability, networking stacks went standard. Then you saw the Internet come. Now you've got Web 2.0. And now you got the whole global, you got things like cryptocurrency and blockchain. You have multiple clouds. You have a whole new game-changing dynamic going on with IT infrastructure combined with opensource at a whole 'nother level. So how is this wave different? Is it like the, how would you compare? >> Well, I think all the technologies that have waved through my career, at least, have been real enablers for the business model that the companies had at the time, and that they evolved. What we see now is epic disruption, right? So, the waves now are, we have digital native companies that are just disrupting the heck out of the industry or the company that we're trying to help. And so it's now about pulling all of those technologies together, and really figuring out a new business model for a client. Figuring out a new distribution channel, a new product that's maybe natively digital. And so it's very, very different, I feel, then it was five, 10, 15, 20 years ago, through some of the other waves. >> Talk about the things going on in the Bay Area before we get more in the global themes, because I think the Bay Area is always kind of a leading indicator. I call it a bellwether. Some cool things happened. You've got things like the Golden State Warriors got a stadium that's being built. I'm watching the World Series with the Red Sox, and you see Amazon stat cast, you're seeing overlays, you're seeing rosserial. All these things are changing the work and play. The Bay Area's got a lot of leading indicators. What are some of the projects that you've been involved in? What's happening now that you think is worth noting, that's exciting, that piques your interest? >> Yeah, I mean, we work across every industry, and we do a ton of work in tech, but I actually find some of the more interesting projects are the ones we're doing for healthcare companies in the Bay Area, some of the utilities in the Bay Area, some of the big resource companies, some of the financial services institutions, 'cause, like I said before, all of those industries have disruption coming or have been disrupted, and so we're doing some work right now around patient services in healthcare and in pharma that is really interesting. It's meant to change the experience that a patient has, that you and I have when we interact with our healthcare providers or, you know, the whole industry. And so those kinds of projects are real interesting cause a lot of these industries are old and sort of have a big legacy estate and model that they need to transform from. So they need to move fast, and we kind of describe it as a wise pivot. They sort of need to move, but they need to make sure they're moving at the right time. They can't hurt their existing business, but they got to pivot to the next business model, and that's happening in lots of places. And you're right, I think it is happening a lot in the Bay Area and the West Coast as sort of a bellwether. >> I want to get your thoughts on some of the moments that are going on in tech. You mentioned prior, before we came on camera, you worked for Apple in the old days. Tim Cook was just recently tweeting yesterday, and that tweet's going around, privacy. He was at this big GDPR conference. The role of regulatory now is changing some of the West Coast dynamics. Used to be kind of fast and loose West Coast, innovate, and then it gets operationalized globally with tech, tech trends. What's the tech enablers now that you see that are involved that actually have to deal with regulatory, and is regulatory an opportunity? You're mentioning utilities, finance, those are two areas you can jump out and say okay, we see something there. Privacy is another one. So you have a perfect storm with tech and regulatory frameworks. How has that impacted your job in the West Coast? >> Well, I mean, GDBR, we live with everyday. And clearly we're doing a ton of work in Europe. And I think that's one of the advantages Accenture has of being a big global company, and being able to take lessons learned from other parts of the world that are likely to come to the United States, et cetera, so, but I think the combination of tech and regulatory are going to be merging together here pretty quickly, especially when you talk about AI and data privacy, and that sort of thing. But it's definitely been an evolution. Great to hear Tim's point of view on what Apple thinks. And it's been really fun in my life to see Apple in the 80s when I worked there. They were a client of mine in the 80s. I worked with NEXT Computing in the 90s. And then obviously they're a big partner of ours now, so it's been a really interesting evolution. >> What are some of the growth accomplishments you guys have in the Bay Area? Obviously there's been growth here for you guys. Obviously, we've been seeing it. >> Well, I think the amount of tech-driven disruption, or digital transformation, we call it, is growing like crazy. So, you know, 20 years ago we were doing a lot of eCommerce work. We kind of shied away from doing Y2K work and a lot of our competitors saw that as a big opportunity. We didn't think it was a lot of value for our clients, fixing the old systems. And so we pivoted to eCommerce in a very aggressive way. And I would say now that's evolved even further, where more than close to 2/3 of our business here on the West Coast is what we call the new, which is clouds, security, digital analytics. And I really think it gets down to, we were talking a little bit earlier, about the data. And so we have more data scientists than we've ever had. We're probably hiring one or two every day out here on the West Coast. And it's about the data. Data is driving our consulting business. It's driving our technology business. It's driving what we're doing with AI, obviously, and things like that, so. The transformation's been pretty tremendous. >> So take a minute to explain the difference (mumbles), data, you mentioned a lot of things, you got data in there, you got cloud, and you mentioned earlier you got kind of cloud first companies, got born in the cloud, born in AI, AI first, data first, these new companies that are essentially disrupting incumbents, also your clients, that are kind of born before the cloud. And they got to transform. Is digital transformation one of those things or both of those things? How does digital transformation translate to the clients that you guys work with? >> Well, every client has a unique set of needs depending on where they came from. We do a lot of work with the digital natives. We do a lot of work with the unicorns out here on the West Coast. And their needs are different. You know, they need to learn how to scale globally. They need help in the back office. They need help sort of maturing their business model. We do a lot of work with legacy financial services companies, healthcare companies, that sort of thing. They need to figure out how to sort of, you know, pivot to digital products or digital interactions with their customers. We have a very large business now in Accenture Interactive around helping to find customer experiences for clients. And we think our mission is sort of help our clients really redefine that relationship with their customer, their supplier, their supply chain, and the experience is a key part of that. Given expectations means a lot. >> We have a lot of CUBE Conversations around IT transformation as well. And I had a CIO, big time firm, we won't say the name cause it'll out em, but he said, "We've been outsourcing IT for so many years, but now we got to build the core competency internally because now it's a competitive advantage." And they have to ramp up pretty quickly. Cloud helps them there, and they need partners that can help them move the needle on the top line. That this is not just cost control and operational scale or whether it's horizontally scalable scale-out or whatnot. Top line revenue. This is where the bread and butter of the companies are. >> Right. >> So how are you guys engaging with the clients? Give some examples of how you're helping them with the digital transition to drive their business, how do you engage them? Do you do the standard sales calls engagements? You bring them to a technology center? As the world starts to change, how do you guys help those clients meet those top lines? >> Well, a perfect client for us, you know, we're really good at helping clients cut costs and get really efficient and be good with their peers on cost structure. We love a client where they want us to help em with that and they want to pivot the savings to the new part. The way, one of the things that triggered a thought when you mentioned that was we like to bring our clients into our innovation hubs, so we've had labs here on the West Coast for a long time. We now have 10 innovation hubs in the U.S. We have a very large one in San Francisco now, and so we'll bring a client into our innovation hub and really roll up our sleeves with the client and over a week or two weeks or three period of time, we really brainstorm on envisioning their future for their company, build a minimal viable product if we have to out of our rapid prototyping capability and really envision what the target and state of their business could be, of their product could be or their customer interaction and we'll model it. Rather than sort of do a study, do another study, do a PowerPoint presentation, it's let's roll up our sleeves and figure out how to really pivot your business to the new and then take it from there. >> And they come to your location Absolutely. >> For an extended period of time? >> Yeah, so we'll have, any given day we'll have at least two different clients in our location doing either a couple a day workshop, a multi-week workshop, and it's co-creation. It's us collaborating with our client to figure out a solution. A good example is we had one of our large clients from the West Coast in there recently and we were trying to figure out how to use drone technology to drive analytics in, you know, over a geography to provide better data for them to minimize risk. And we've got a number of co-creation projects now going on with them to figure out how do we take that into a solution that not only helps their business but maybe it is a commercially available system. >> Yeah, our Wikibon research team brings us all the time with IOT and security you're starting to see companies leverage their existing assets, which is physical as well as digital and then figure out a model that makes them work together because these new use cases are springing up. So what if some of those use cases that you guys see happening, because you mentioned drones, cause that's an IOT device, right, essentially. There's all these new scenarios that are emerging and the speed is critical. It's not like, you can't do a study. There's no time to do a study. There's no time to do these things. You got to get some feet on the ground. You got to have product in market, you got to iterate. This is devops culture. >> Right. >> What is an example? >> So we did a project for a big ag company and not actually a West Coast based company but they came to our labs to look at it. And basically what we did was, we covered an area that's basically the size of Delaware in terms of drone video and we were able to drive analytics from that and ten times faster figure out for them where the forest was weak and where it wasn't. where they ought to worry about vegetation, where they might have disease issues or other risks that were facing them. And those analytics we were able to drive a lot faster and so rather than manually going around this huge square mile set of geography, they were able to sort of do it through technology a lot faster. >> Yeah, just a side note. I was talking to Paul Daugherty and interviewed him. We were celebrating, covering the celebration, your 30th anniversary of your labs. And one of the interviews I did was a wacky idea which made total sense, was during like a car accident or scene where there's been a car accident, they send drones in first and they map out the forensics- >> Sure. >> First. And you think, okay, who would have thought of that? I mean, these are new things that are happening that are changing the game on the road because they'll open up faster. They get the data that they need. They don't have to spend all that physical time laying things out. This is not just a one-off, this is like in every industry. Is there an industry that's hotter than another for you guys? (mumbles) oil and gas, utilities, financial services is kind of the big ones. What are some of the hot areas that you guys see the most activity on, on this kind of new way of taking existing industries and transforming them? >> I don't know if I could pinpoint an industry, I really don't. I mean, because I see what we're trying to do with anti-money laundering and banking is really moving the ball forward. What we're doing with patient services and pharma in health care is pretty aggressive. Even some of the things that we're doing for some of the states and governments around citizen services to make sure that ... Cause all of us have expectations now on how we want to interact with government and our expectations are not being met in just about every department, right? So we're doing a lot of work with states around how to provide a better experience to citizens. So I don't know if I could pinpoint an actual industry. One of the fun ones that we just, that we're involved with our here in our patch is one of the big gaming companies in Vegas. We are doing a lot of video analytics and technology and again, it's something like 20 times faster being able to detect fraud, being able to figure out what's going on on a gaming table and how to provide rewards quicker to their customers, keep em at the table faster or longer- >> He's got to nice stack of chips. Oh, he's going down. (laughs) Give him a comp through, he's feeling down. Look at his facial expression. I can (mumbles) imagine, I mean, this is the thing. I would agree. I think this every vertical we see is being disrupted. Just mentioned public sectors. Interesting. We were riffing at an Amazon event one time around who decides with the self-driving cars? These towns and cities don't have the budget or the bandwidth to figure out and reimagine the public services that they have, they're offering the citizens. The consumerization of IT hits the public sector. >> For sure. >> And they need help. So again every industry is going on. Okay, well I want to step back and get some time in for analytics because you guys have been investing as a company heavily in analytics in the past 10 years. Past, I think, seven years, you guys have been really, really ramping up the investment on data science, analytics. Give us an update on that. How is that going? How's that changed? And what's the update today? >> Yeah, and it's a good point. I mean, and again, you mentioned those labs being here for 30 years. A lot of our data scientists and big machine learning and big data folks frankly started at the labs here years and years ago and so, we've now got one of the largest analytics capabilities, I think, of any services company globally. We called it applied intelligence. It's a combination of our analytics capability and artificial intelligence, and we basically have an analytics capability that's built into all the different services that we provide. So we think it's, everything's about analytics just about. I mean, clearly you can't do a consulting project unless you've really got a unique analytical point of view and unique data around assessing a client's problem. You really can't really do a project or implement a system without a heavy data influence. So we are adding, frankly, I think every day I'm approving more analytics head count into our team on the West Coast in lots of different practices. And so it disbands industries, it spans all the platform sets, that sort of thing, but we're the largest of most of the big data players. >> I think one of the consistent trends with AI, which is now being the word artificial intelligence, AI, is kind of encapsulated the whole big data world because big data's now AI is the implementation of it. You're seeing everything from fraud. You mentioned anti-money laundering, know your customer, these kind of dynamics. But you get the whole dark web phenomenon going out there with fraud. All kinds of underground economies going on. So AI is a real value driver across all industries around one, understanding what's happening, >> Sure. >> And then how to figure out how to applications development could be smarter. >> Right. >> This is kind of relatively new concept for these scale out applications, which is what businesses do. So how is that going? Any color commentary on the impact of AI specifically around how companies are operationally changing and re-imagining their businesses? >> Well, I think it's very early days for most of our clients, most big companies. I think, we've done some recent surveys that say something like 78% of our clients believe that AI's really, really important and they're not at all prepared to deal with or apply it to their business. So I think it's relatively early days. There's a huge fight for skills, so we're building our team and that sort of thing. We're also classic Accenture. We grow skills pretty well too through both on-the-job training and real training. And so I think we're seeing sort of baby steps with AI. There's a lot of great vended solutions out there that we're able to apply to business problems as well. But I think we're in relatively early days. >> It's almost as if, you know, the old black-box garbage in, garbage out. You have good data, >> Exactly. >> and you got to understand data differently, and I think what I'm seeing is a lot of data architects going on, figuring out how do we take the role of data and put it in a position to be successful. It's kind of like, cause then you use AI and you go, that's great, but what about, oh, we missed this data set. >> Right. >> You'll have fully exposed data sets, so this is all new dynamics. >> So you have to iterate through it and you'll have to (mumble) solutions that'll start and restart. >> All right, so final question for you. Talk about this technology hubs again. So you have the labs, get that. So how many hubs do you have, technology hubs? >> Well, in the U.S., there's 10. But I would say in the West Coast it's really San Francisco and Seattle right now, with San Francisco being our flagship and frankly it's a flagship in the U.S. We've had the 30 year presence of our labs here on the West Coast and we've had design studios on the West Coast. We've had our what we call liquid studios, which is a big rapid prototyping sort of capability. We've had our research, et cetera. We've pulled all of those locations, so our lab started in Palo Alto, went to San Jose and is now in San Francisco. We've pulled all those locations together into what we're calling the innovation hub for the West Coast and it's a five-story marquee building in San Francisco and it's where we bring our clients and we expect to have literally, I think last year we had 200 and something client workshops and co-creation sessions there. This year we think the number's going to go to 400 and so it's really becoming a fabric of all our practices. >> How important is the co-creation, because you have a physical presence here and it's the flagship for the innovation hub and it's an accumulation of a lot of work you guys have done across multiple things you've done. Labs, liquid labs, all that stuff coming together. How important is the co-creation part as a mechanism for fostering collaboration with your clients? Co-creation's certainly hot. Your thoughts on co-creation. >> Great question, and I would tell you Accenture's kind of gone through waves as technology's gone through waves and so we were always an enabler for a client's projects and we did a lot of project work. I think we're in a wave now where we're going to be the innovation partner. We continue to sort of be named the innovation partner or the digital partner for certain clients. And we're going to do that through co-creating with them, and it's not just at their site, et cetera. It's going to be co-creation in our labs where we're taking advantage of the hundreds of data scientists and computer researchers and technical architects that we have in our labs to create something that's new and fresh and purpose-built for their particular business model. So we think co-creation is a huge part of the formula for us being successful with our clients over the next 10 years. And so that's why we've put this infrastructure in place, expect it to expand and to be sold out and that sort of thing. But it's a good way for us to build capability and really, really viable solutions for our clients going forward. >> So it's not just a sales development initiative. It's an operationalized engagement and delivery mechanism for you guys. >> Exactly, exactly. It's not, I mean it has, it self markets but it's not about marketing. It's about, we'll have tours and we'll have a little tourism through our center and so clients'll say, Wait, look at that maker lab. Look what you're doing with that client. I want one of those, right? I need to do that in my business, even though I'm in a different industry. So it's not really a marketing tool per se, it's a way for us to interact and engage with our clients. >> Well, it's a showcase in the sense of where you can showcase what you have and if clients see value, they can go to the next step. It's an accelerated path to outcomes re-imagining businesses. Okay, final question. What have you learned from all this? Because now you guys have a state of the art engagement model, delivery model, around cloud, all these things coming together, perfect storm for what you guys do. As you guys look back and see what you've built and where it's going to go, what are the key learnings that you guys came out of the West Coast team around pulling it all together over the years? What's the key learnings? >> Well, I think that our clientele is just thirsty for innovation and innovation now. It's now about sort of let's envision the future and we'll get to it some other day. It's what can we do right now and what journey, what glide path are we on to change our business? So the pace is just radically different than it used to be. And so it's about changing, rapidly changing, putting real innovation on it, and collaborating with clients in a pace that we've never seen before. I mean, I've been here 32 years and I've just never the pace of change. >> That's great, John. So (mumbles), really appreciate it. We'll get a quick plug in. What's coming up for you guys? What's going on in the West Coast? What's happening? >> Well, we're in event season right now, so we just finished all the ... We're wrapping up Oracle Open World. We just won five awards at Oracle Open World. We just did an acquisition on the West Coast to beef up our Oracle capabilities. We've got ReInvent and we have all kinds of events coming up but it's a, it's been a pretty busy season. >> So cloud and data have certainly helped rise the tide for your business. >> 100%. I mean, cloud is taking Accenture from kind of in the back of the office and put us into the front office over the last 10 years. >> Well, certainly it's awesome, (mumbles), leveling the playing field, allowing companies to scale out very rapidly, bringing a devops culture, new kinds of modern application developments, real value being created, super exciting time. Thanks for coming in and sharing your time. John Del Santo here in theCube for Cube Conversation, senior managing director at Accenture. I'm John Furrier here in theCube studios for Cube Conversation. Thanks for watching. (upbeat music)

>> Announcer: Live from Las Vegas, Nevada; it's the theCUBE covering Accelerate 2017. Brought to you by Fortinet. Now, here are your hosts Lisa Martin and Peter Buriss. >> Hey, welcome back to theCUBE. We are live in Las Vegas at Fortinet 2017. Fortinet Accelerate 2017 I should say. I'm your host Lisa Martin. Joined by my co-host Peter Buriss. We're really excited to be here today. First time for theCUBE and we are next joined by, Drew Del Motto, who is the CFO of Fortinet. Drew, welcome to theCUBE. >> Thank you, Lisa. >> Great to have you. I really enjoyed your keynote this morning. If you weren't able to see it, very passionate, very intellectual keynote. Some of the nuggets here that I wanted to talk to you about first just to kick things off; is just sharing with us, you have over 20 years of financial management experience in network security. You said, you started as a CPA. As we look at the generation of the business economy the digital economy and also now we're at this dawn of data. Love to get your perspective on defining that to our viewers. You mentioned that data is worthless is we can't trust it. And really that it's key to business value. Can you expound upon that? How critical is data trust for an organization to achieve? >> I think it's just core to value creation because it's as simple as if you're putting information out there and you think somebody's going to get to it, then you may not put the information out there. I think I've shared a statistic where a consulting group said that there was 5X the value for data that you trust. You created more data if you trusted it and they got about 5X the data. The monetizable data, which ultimately is what drives value in the new economy. So if you look at the most valuable companies in the world, I think I mentioned Amazon, Alphabet, Google, Facebook and Microsoft. All of them cloud, mobility, analytics. They're using data in their business models to drive it, right? But you trust them, right? And that's the key point. And they feverishly, energetically protect that data. And that's why you trust your data to put it there. >> But it's not just trust the data, because one of the interesting things about data is because it can be copied, be shared, it's trust in future uses of that data. that's one of the big challenges. Not only do we have to be able to demonstrate that we have an infrastructure or a fabric of capabilities that allow us to trust data now, but also that it will allow us to change how we use the data, introduce new ways of using the data, and very quickly validate and verify that we can trust that use too. Is that true? >> Absolutely, Peter, I think that's right. And I think most companies participating in a meaningful way to the new economy, very thoughtful about what data they're looking for and how they're going to monetize that data. I think of the business models of, clearly advertising and anything that's related to advertising. Very clear to see that they need data to grow their business right. And the core is the trust of that, and they continue to do that. But then you look at the other data that's around, many people aggregate data that they use and sell back to you in some way, for location based services or personalized services. Especially in healthcare, where you see that and that's a very valuable story. And if you don't trust your healthcare data, you're probably not going to trust whatever they're trying to sell you, right? But there's a lot about of value for you personally, simply because you can improve your health. Maybe you live longer, maybe you avoid some illness that could be pretty painful. But you have to ultimately trust that, that's being used in a useful way for you and is protected, so it doesn't get in the wrong hands. >> So we think about digital business as, boils down to very simply, a digital business uses data to differentially created sustained customers. >> Drew: Fair enough. >> So, the idea then, is that I now have to start looking at my data as an asset, that can generate a return for shareholders. Generate return for customers, generate return for the stakeholders. We don't typically think of data as an asset though. As you and your peers start thinking about how to start evaluating data, or thinking about data as an asset, where are we on that journey of getting to a point where we actually look at data as something that is a source of value in and of itself and creates value in new ways? >> Peter I think it might be helpful to actually even share some numbers. 'Cause what comes to mind for me was the McKinsey study that said there was about $7.8 trillion alone generated in 2015 that's monetizing data, right? So if that data weren't there, Then, that value wouldn't be there. And that's about 10% of the global economy. That's amazing. Just think about that and you think about the companies that I mentioned earlier, the value there are about two trillion dollars of market cap right there. Clearly, the lynchpin to that is digital trust, their use of data, until you can grow it all the time. I think of it as an asset. I think that I want to have it. I want to know how to protect it. I want an architecture that's proactive. That is driven by the business, right? But complimented by a secure infrastructure, So that I know, people know, that I have digital trust. I can trust the data, right? I have to print data as a CFO, right? If my investors don't trust it, guess what? I have a problem, right? So I think it's the same way around in anything you do business wise and just think as data being the fuel of the next generation economy. Look, data's also power, not to get into politics, but think of the power of the data that the Trump campaign had in the upper Mid-West. They had some data that obviously, the other side didn't have and it was very useful for them crafting their message and getting elected. >> I think we can definitely agree, no matter what side of the fence you're on, that there was influence there from an election perspective. One of the things that I'm interested in getting your perspective on is you were talking about, in your keynote this morning, the role of the C-Suite, how it's changing. You said, "It's kind of cliche," but in the last five to seven years we've seen this either emergence of the CSO or maybe an evolution from the CSO to the CSO. And there was a panel this morning of three CSO's from AT&T, Lazard and Levi's. My ear went up wondering if I was going to hear cyber security differences based on the industry. And it really seemed, and what we've heard from some of your peers and technology partners on the show today is, it's quiet agnostic. But I'd love to get your take on, you were talking about how you view, as a CFO, data as an asset. In the role of the CSO, is this guy or gal, when it comes to cyber security, are they now on the front lines as the leader of a cooperation's digital army? Or is that digital army now maybe a little bit more broad across that C-Suite in a company that needs to trust data in order to have value? >> Great question, Lisa and it was a great panel. What I took away from it was that the CSO is very much the quarter back, right? So I think everybody plays a role, it's a team. And when they break huddle, everybody has an assignment. They look at the play they're going to call and they run it and the CSO is really taking information from everybody and rolling it together in a way to underlie the trust, making sure that they're driving towards digital trust ultimately. That's the role and they have to take input from the CEO on the business propositions, the vision. The CFO on risks and the investment profile. The CIO on how they're going to drive the business with IT, and then their role is ultimately to advise and help drive the business going forward. And make sure they're compliant. When you talk about verticals, I think it's generally agnostic. I think there are some areas where there's obviously some compliance with credit cards and financial institutions and healthcare clearly, given the information there. But generally speaking, I think it's the same all around. If they're successful, the key is to not be right themselves, but to get it right with that team. >> I love the analogy of the quarter back actually. We were talking, actually before we started this segment that there's estimates that a CSO is inheriting more than 25 different security technologies to defend and protect and remediate and we've been talking as well with some other guests, today on this show that a lot of companies now have this sort of assumed breach mentality. Can you expand a little bit more on that CSO as the quarter back. What they're inheriting and how they need to navigate through that environment in order to extract value from that data? >> Well, it's the vectors that we all hear everyday right? It's IOT, you here more mobility, more cloud and more data. And even some of the things out there just generate data, right? I think it's just an aggregation of an architecture that reflects that. There's a lot of silent business units ruling their own technology, right? And there's a lack of talent. I think that came up a lot this morning was just a complete lack of talent. There's a lot of people in college, but they don't have a lot of experience yet. So, I still think we have a dearth of talent. There's some compliance and then ultimately, you're trying to get the best architecture for the company. So, I think that's the quarterback. Really trying to bring all those conversations to the table. Help the company draft a vision that's business forward that reflects digital trust ultimately, and reflects something that's affordable and manageable. And I think you do that with an architecture, a lot of listening, I think they key is listening. Again, what I said earlier, it's not about any one person being right, it's about getting it right for the company and their customers, so they trust the data. >> That's a great message, fantastic. >> As you think about the evolution of the relationship between the CFO, who has a responsibility for risk and generating return on assets and the CSO, who is part of this new team that's going to increasingly have to think in terms of creating digital asset value. How is that relationship going to change over the next few years? >> Well, I think the new awakening, the message is that there's an opportunity for value creation. One of the things I said this morning, as a CFO, I love it when somebody brings me and investment an alternative. If they just bring me a cost, (laughing) >> That's cost and you say no. >> I take a deep breathe (chuckles) and I try not to say no, sometimes you can't control it, but really you always want to think about the business first. That's the job, right? CFO certainly. You think about your shareholders. Your trying to find them an appropriate return, the best possible return on the investment. So, it's always investment forward. Think about the investment. Does it provide the right type of return? And I don't see how anybody can argue that in this dawn of data, if you will, all the analytical opportunities out there, and the ability to drive a business with that data, and the value it creates. That trust isn't at the core and investing in that trust is a great idea. >> Also, it means, I would think, that there's going to be some experience curves associated with this process. And your ability to off the experience curves in your business is highly dependent upon how successful you are at choosing partners and laying trust in those partners so that they can do a great job of what they're doing as well. How does Fortinet tell its story to its customers, that working with us you will have a trusted partner, but also we will be providing the platform that will facilitate you being a more trusted partner? >> Well Peter, from my perspective that's an easy question. It's Fortinet's security fabric and everybody's talking about platform, but platform is like a ship with containers on it, right? You may bolt them down, but if the ship tilts they fall off. A fabric is knitted together, right? It's not a patchwork. It's not thread. it's a coat, right? It's something that you bought to protect you. And Fortinet's that security fabric reflects the breadth of product portfolio we have. It goes through the cloud, into IOT, provides the performance necessary to run the business. It doesn't create friction. It's broad, it's powerful and it's secure. And you get that transparency across the business. It updates itself automatically. It's fully integrated and it works for today and tomorrow. >> So one last question here. >> Sure. >> Drew, giving you the last word. One of the things that I also found very intriguing this morning was that you were talking about the difference between selling fear versus selling value. As we look at where Fortinet is today, and also Ken Xie the CEO did mention this morning that you got this goal as a company to become number one by 2020, which is just a few years away. What excites you about the announcements today as well as the vision of Fortinet going forward to really enable your customers and your partners to deliver the trust those customers need? >> Yeah, I think we're helping them be business forward. I think we're helping them be business first. When I look out there and I see everybody saying, "Oh the attack surface is increasing, "cyber crime, cyber criminals, somebody hacking away "in a garage in some country far away, "and they can easily do this." Those things are generally true, but what I really want to do is build an infrastructure that drives my business, so that I could participate in a big way where the economy is going and that's about data and analytics. It's like I said, it's the dawn of data. And I think we can do that in a very differentiated way and very value oriented way for our customers that no one else can do and that's Fortinet's security fabric. >> Well, what a fantastic way to end the conversation there. I love that you said how important the role of listening is. I think that's quiet an agnostic importance there. Drew Del Matto CFO of Fortinet. Thanks so much for joining us on theCUBE. >> Thank you Lisa, Thank you Peter. >> Peter: Thank you, Drew. >> And on behalf of Peter Buriss, I am Lisa Martin. You've been watching the theCUBE, stay tuned. We'll be right back. (upbeat music)

>>Good morning live from Chicago. It's the cube on the floor at Ansible Fast 2022. This is day two of our wall to wall coverage. Lisa Martin here with John Furrier. John, we're gonna be talking next in the segment with two alumni about what Red Hat and IBM are doing to give Ansible users AI superpowers. As one of our alumni guests said, just off the keynote stage, we're nearing an inflection point in ai. >>The power of AI with Ansible is really gonna be an innovative, I think an inflection point for a long time because Ansible does such great things. This segment's gonna explore that innovation, bringing AI and making people more productive and more importantly, you know, this whole low code, no code, kind of right in the sweet spot of the skills gap. So should be a great segment. >>Great segment. Please welcome back two of our alumni. Perry is here, the Chief scientist, IBM Research and IBM Fellow. And Tom Anderson joins us once again, VP and general manager at Red Hat. Gentlemen, great to have you on the program. We're gonna have you back. >>Thank you for having >>Us and thanks for joining us. Fresh off the keynote stage. Really enjoyed your keynote this morning. Very exciting news. You have a project called Project Wisdom. We're talking about this inflection point in ai. Tell the audience, the viewers, what is Project Wisdom And Wisdom differs from intelligence. How >>I think Project Wisdom is really about, as I said, sort of combining two major forces that are in many ways disrupting and, and really constructing many a aspects of our society, which are software and AI together. Yeah. And I truly believe it's gonna result in a se shift on how not just enterprises, but society carries forefront. And as I said, intelligence is, is, I would argue at least artificial intelligence is more, in some ways mechanical, if I may say it, it's about algorithms, it's about data, it's about compute. Wisdom is all about what is truly important to bring out. It's not just about when you bring out a, a insight, when you bring out a decision to be able to explain that decision as well. It's almost like humans have wisdom. Machines have intelligence and, and it's about project wisdom. That's why we called it wisdom. >>Because it is about being a, a assistant augmenting humans. Just like be there with the humans and, and almost think of it as behave and interact with them as another colleague will versus intelligence, which is, you know, as I said, more mechanical is about data. Computer algorithms crunch together and, and we wanna bring the power of project wisdom and artificial intelligence to developers to, as you said, close the skills gap to be able to really make them more productive and have wisdom for Ansible be their assistant. Yeah. To be able to get things for them that they would find many ways mundane, many ways hard to find and again, be an assistant and augmented, >>You know, you know what's interesting, I want to get into the origin, how it all happened, but interesting IBM research, well known for the deep tech, big engineering. And you guys have been doing this for a long time, so congratulations. But it's interesting here at this event, even on stage here event, you're starting to see the automation come in. So the question comes up, scale. So what happens, IBM buys Red Hat, you go raid the, the raid, the ip, Trevor Treasure trove of ai. I mean this cuz this is kind of like bringing two killer apps together. The Ansible configuration automation layer with ai just kind of a, >>Yeah, it's an amazing relationship. I was gonna say marriage, but I don't wanna say marriage cause I may be >>Last. I didn't mean say raid the Treasure Trobe, but the kind of >>Like, oh my God. An amazing relationship where we bring all this expertise around automation, obviously around IP and application infrastructure automation and IBM research, Richie and his team bring this amazing capacity and experience around ai. Bring those two things together and applying AI to automation for our teams is so incredibly fantastic. I just can't contain my enthusiasm about it. And you could feel it in the keynote this morning that Richie was doing the energy in the room and when folks saw that, it's just amazing. >>The geeks are gonna love it for sure. But here I wanna get into the whole evolution. Computers on computers, remember the old days thinking machines was a company generations ago that I think they've sold or went outta business, but self-learning, learning machines, computers, programming, computers was actually on your slide you kind of piece out this next wave of AI and machine learning, starting with expert systems really kind of, I'm almost say static, but like okay programs. Yeah, yeah. And then now with machine learning and that big debate was unsupervised, supervised, which is not really perfect. Deep learning, which now explores some things, but now we're at another wave. Take, take us through the thought there explaining what this transition looks like and why. >>I think we are, as I said, we are really at an inflection point in the journey of ai. And if ai, I think it's fair to say data is the pain of ai without data, AI doesn't exist. But if I were to train AI with what is known as supervised learning or or data that is labeled, you are almost sort of limited because there are only so many people who have that expertise. And interestingly, they all have day jobs. So they're not just gonna sit around and label this for you. Some people may be available, but you know, this is not, again, as I as Tom said, we are really trying to apply it to some very sort of key domains which require subject matter expertise. This is not like labeling cats and dogs that everybody else in the board knows there are, the community's very large, but still the skills to go around are not that many. >>And I truly believe to apply AI to the, to the word of, you know, enterprises information technology automation, you have to have unsupervised learning and that's the only way to skate. Yeah. And these two trends really about, you know, information technology percolating across every enterprise and unsupervised learning, which is learning on this very large amount of data with of course know very large compute with some very powerful algorithms like transformer architectures and others which have been disrupting the, the domain of natural language as well are coming together with what I described as foundation models. Yeah. Which anybody who plays with it, you'll be blown away. That's literally blown away. >>And you call that self supervision at scale, which is kind of the foundation. So I have to ask you, cuz this comes up a lot with cloud, cloud scale, everyone tells horizontally scalable cloud, but vertically specialized applications where domain expertise and data plays. So the better the data, the better the self supervision, better the learning. But if it's horizontally scalable is a lot to learn. So how do you create that data ops where it's where the machines are gonna be peaked to maximize what's addressable, but what's also in the domain too, you gotta have that kind of diversity. Can you share your thoughts on that? >>Absolutely. So in, in the domain of foundation models, there are two main stages I would say. One is what I'll describe as pre-training, which is think of it as the, the machine in this particular case is knowledgeable about the domain of code in general. It knows syntax of Python, Java script know, go see Java and so, so on actually, and, and also Yammel as well, which is obviously one would argue is the domain of information technology. And once you get to that level, it's a, it's almost like having a developer who knows all of this but may not be an expert at Ansible just yet. He or she can be an expert at Ansible but is not there yet. That's what I'll call background knowledge. And also in the, in the case of foundation models, they are very adept at natural language as well. So they can connect natural language to code, but they are not yet expert at the domain of Ansible. >>Now there's something called, the second stage of learning is called fine tuning, which is about this data ops where I take data, which is sort of the SME data in this particular case. And it's curated. So this is not just generic data, you pick off GitHub, you don't know what exists out there. This is the data which is governed, which we know is of high quality as well. And you think of it as you specialize the generic AI with pre-trained AI with that data. And those two stages, including the governance of that data that goes into it results in this sort of really breakthrough technology that we've been calling Project Wisdom for. Our first application is Ansible, but just watch out that area. There are many more to come and, and we are gonna really, I'm really excited about this partnership with Red Hat because across IBM and research, I think where wherever we, if there is one place where we can find excited, open source, open developer community, it is Right. That's, >>Yeah. >>Tom, talk about the, the role of open source and Project Wisdom, the involvement of the community and maybe Richard, any feedback that you've gotten since coming off stage? I'm sure you were mobbed. >>Yeah, so for us this is, it's called Project Wisdom, not Product Wisdom. Right? Sorry. Right. And so, no, you didn't say that but I wanna just emphasize that it is a project and for us that is a key word in the upstream community that this is where we're inviting the community to jump on board with us and bring their expertise. All these people that are here will start to participate. They're excited in it. They'll bring their expertise and experience and that fine tuning of the model will just get better and better. So we're really excited about introducing this now and involving the community because it's super nuts. Everything that Red Hat does is around the community and this is no different. And so we're really excited about Project Wisdom. >>That's interesting. The project piece because if you see in today's world the innovation strategy before where we are now, go back to say 15 years ago it was of standard, it's gotta have standard bodies. You can still innovate and differentiate, but yet with open source and community, it's a blending of research and practitioners. I think that to me is a big story here is that what you guys are demonstrating is the combination of research and practitioners in the project. Yes. So how does this play out? Cuz this is kind of like how things are gonna get done in the cloud cuz Amazon's not gonna just standardize their stack at at higher level services, nor is Azure and they might get some plumbing commonalities below, but for Project Project Wisdom to be successful, they can, it doesn't need to have standards. If I get this right, if I can my on point here, what do you guys think about that? React to that? Yeah, >>So I definitely, I think standardization in terms of what we will call ML ops pipeline for models to be deployed and managed and operated. It's like models, like any other code, there's standardization on DevOps ops pipeline, there's standardization on machine learning pipeline. And these models will be deployed in the cloud because they need to scale. The only way to scale to, you know, thousands of users is through cloud. And there is, there are standard pipelines that we are working and architecting together with the Red Hat community leveraging open source packages. Yeah. Is really to, to help scale out the AI models of wisdom together. And another point I wanted to pick up on just what Tom said, I've been sort of in the area of productizing AI for for long now having experience with Watson as well. The only scenario where I've seen AI being successful is in this scenario where, what I describe as it meets the criteria of flywheel of ai. >>What do I mean by flywheel of ai? It cannot be some research people build a model. It may be wowing, but you roll it out and there's no feedback. Yeah, exactly. Okay. We are duh. So what actually, the only way the more people use these models, the more they give you feedback, the better it gets because it knows what is right and what is not right. It will never be right the first time. Actually, you know, the data it is trained on is a depiction of reality. Yeah. It is not a reality in itself. Yeah. The reality is a constantly moving target and the only way to make AI successful is to close that loop with the community. And that's why I just wanted to reemphasize the point on why community is that important >>Actually. And what's interesting Tom is this is a difference between standards bodies, old school and communities. Because developers are very efficient in their feedback. Yes. They jump to patterns that serve their needs, whether it's self-service or whatever. You can kind of see what's going on. Yeah. It's either working or not. Yeah, yeah, >>Yeah. We get immediate feedback from the community and we know real fast when something isn't working, when something is working, there are no problems with the flow of data between the members of the community and, and the developers themselves. So yeah, it's, I'm it's great. It's gonna be fantastic. The energy around Project Wisdom already. I bet. We're gonna go down to the Project Wisdom session, the breakout session, and I bet you the room will be overflowed. >>How do people get involved real quick? Get, get a take a minute to explain how I would get involved. I'm a community member. Yep. I'm watching this video, I'm intrigued. This has got me enthusiastic. How do I get more confident with this opportunity? >>So you go to, first of all, you go to red hat.com/project Wisdom and you register your interests and you wanna participate. We're gonna start growing this process, bringing people in, getting ready to make the service available to people to start using and to experiment with. Start getting their feedback. So this is the beginning of, of a journey. This isn't the, you know, this isn't the midpoint of a journey, this is the begin. You know, even though the work has been going on for a year, this is the beginning of the community journey now. And so we're gonna start working together through channels like Discord and whatnot to be able to exchange information and bring people in. >>What are some of the key use cases, maybe Richie are starting with you that, that you think maybe dream use cases that you think the community will help to really uncover as we're looking at Project Wisdom really helping in this transformation of ai. >>So if I focus on let's say Ansible itself, there are much wider use cases, but Ansible itself and you know, I, I would say I had not realized, I've been working on AI for Good for long, but I had not realized the excitement and the power of Ansible community itself. It's very large, it's very bottom sum, which I love actually. But as I went to lot of like CTOs and CIOs of lot of our customers as well, it was becoming clear the use cases of, you know, I've got thousand Ansible developers or IT or automation experts. They write code all the time. I don't know what all of this code is about. So the, the system administrators, managers, they're trying to figure out sort of how to organize all of this together and think of it as Google for finding all of these automation code automation content. >>And I'm very excited about not just the use cases that we demonstrated today, that is beginning of the journey, but to be able to help enterprises in finding the right code through natural language interfaces, generating the code, helping Del us debug their code as well. Giving them predictive insights into this may happen. Just watch out for it when you deploy this. Something like that happened before, just watch out for it as well. So I'm, I'm excited about the entire life cycle of IT automation, Not just about at the build time, but also at the time of deployment. At the time of management. This is just a start of a journey, but there are many exciting use cases abound for Ansible and beyond. >>It's gonna be great to watch this as it unfolds. Obviously just announcing this today. We thank you both so much for joining us on the program, talking about Project wisdom and, and sharing how the community can get involved. So you're gonna have to come back next year. We're gonna have to talk about what's going on. Cause I imagine with the excitement of the community and the volume of the community, this is just the tip of the iceberg. Absolutely. >>This is absolutely exactly. You're excited about. >>Excellent. And you should be. Congratulations. Thank, thanks again for joining us. We really appreciate your insights. Thank you. Thank >>You for having >>Us. For our guests and John Furrier, I'm Lisa Barton and you're watching The Cube Lie from Chicago at Ansible Fest 22. This is day two of wall to wall coverage on the cube. Stick around. Our next guest joins us in just a minute.

>> From theCUBE Studios in Palo Alto in Boston, bringing you data driven insights from theCUBE and ETR. This is Breaking Analysis with Dave Vellante. >> After a two-year epic run in tech, 2022 has been an epically bad year. Through yesterday, The NASDAQ composite is down 30%. The S$P 500 is off 21%. And the Dow Jones Industrial average 16% down. And the poor holders at Bitcoin have had to endure a nearly 60% decline year to date. But judging by the attendance and enthusiasm, in major in-person tech events this spring. You'd never know that tech was in the tank. Moreover, walking around the streets of Las Vegas, where most tech conferences are held these days. One can't help but notice that the good folks of Main Street, don't seem the least bit concerned that the economy is headed for a recession. Hello, and welcome to this weeks Wiki Bond Cube Insights powered by ETR. In this Breaking Analysis we'll share our main takeaways from the first half of 2022. And talk about the outlook for tech going forward, and why despite some pretty concerning headwinds we remain sanguine about tech generally, but especially enterprise tech. Look, here's the bumper sticker on why many folks are really bearish at the moment. Of course, inflation is high, other than last year, the previous inflation high this century was in July of 2008, it was 5.6%. Inflation has proven to be very, very hard to tame. You got gas at $7 dollars a gallon. Energy prices they're not going to suddenly drop. Interest rates are climbing, which will eventually damage housing. Going to have that ripple effect, no doubt. We're seeing layoffs at companies like Tesla and the crypto names are also trimming staff. Workers, however are still in short supply. So wages are going up. Companies in retail are really struggling with the right inventory, and they can't even accurately guide on their earnings. We've seen a version of this movie before. Now, as it pertains to tech, Crawford Del Prete, who's the CEO of IDC explained this on theCUBE this very week. And I thought he did a really good job. He said the following, >> Matt, you have a great statistic that 80% of companies used COVID as their point to pivot into digital transformation. And to invest in a different way. And so what we saw now is that tech is now where I think companies need to focus. They need to invest in tech. They need to make people more productive with tech and it played out in the numbers. Now so this year what's fascinating is we're looking at two vastly different markets. We got gasoline at $7 a gallon. We've got that affecting food prices. Interesting fun fact recently it now costs over $1,000 to fill an 18 wheeler. All right, based on, I mean, this just kind of can't continue. So you think about it. >> Don't put the boat in the water. >> Yeah, yeah, yeah. Good luck if ya, yeah exactly. So a family has kind of this bag of money, and that bag of money goes up by maybe three, 4% every year, depending upon earnings. So that is sort of sloshing around. So if food and fuel and rent is taking up more, gadgets and consumer tech are not, you're going to use that iPhone a little longer. You're going to use that Android phone a little longer. You're going to use that TV a little longer. So consumer tech is getting crushed, really it's very, very, and you saw it immediately in ad spending. You've seen it in Meta, you've seen it in Facebook. Consumer tech is doing very, very, it is tough. Enterprise tech, we haven't been in the office for two and a half years. We haven't upgraded whether that be campus wifi, whether that be servers, whether that be commercial PCs as much as we would have. So enterprise tech, we're seeing double digit order rates. We're seeing strong, strong demand. We have combined that with a component shortage, and you're seeing some enterprise companies with a quarter of backlog, I mean that's really unheard of. >> And higher prices, which also profit. >> And therefore that drives up the prices. >> And this is a theme that we've heard this year at major tech events, they've really come roaring back. Last year, theCUBE had a huge presence at AWS Reinvent. The first Reinvent since 2019, it was really well attended. Now this was before the effects of the omicron variant, before they were really well understood. And in the first quarter of 2022, things were pretty quiet as far as tech events go But theCUBE'a been really busy this spring and early into the summer. We did 12 physical events as we're showing here in the slide. Coupa, did Women in Data Science at Stanford, Coupa Inspire was in Las Vegas. Now these are both smaller events, but they were well attended and beat expectations. San Francisco Summit, the AWS San Francisco Summit was a bit off, frankly 'cause of the COVID concerns. They were on the rise, then we hit Dell Tech World which was packed, it had probably around 7,000 attendees. Now Dockercon was virtual, but we decided to include it here because it was a huge global event with watch parties and many, many tens of thousands of people attending. Now the Red Hat Summit was really interesting. The choice that Red Hat made this year. It was purposefully scaled down and turned into a smaller VIP event in Boston at the Western, a couple thousand people only. It was very intimate with a much larger virtual presence. VeeamON was very well attended, not as large as previous VeeamON events, but again beat expectations. KubeCon and Cloud Native Con was really successful in Spain, Valencia, Spain. PagerDuty Summit was again a smaller intimate event in San Francisco. And then MongoDB World was at the new Javits Center and really well attended over the three day period. There were lots of developers there, lots of business people, lots of ecosystem partners. And then the Snowflake summit in Las Vegas, it was the most vibrant from the standpoint of the ecosystem with nearly 10,000 attendees. And I'll come back to that in a moment. Amazon re:Mars is the Amazon AI robotic event, it's smaller but very, very cool, a lot of innovation. And just last week we were at HPE Discover. They had around 8,000 people attending which was really good. Now I've been to over a dozen HPE or HPE Discover events, within Europe and the United States over the past decade. And this was by far the most vibrant, lot of action. HPE had a little spring in its step because the company's much more focused now but people was really well attended and people were excited to be there, not only to be back at physical events, but also to hear about some of the new innovations that are coming and HPE has a long way to go in terms of building out that ecosystem, but it's starting to form. So we saw that last week. So tech events are back, but they are smaller. And of course now a virtual overlay, they're hybrid. And just to give you some context, theCUBE did, as I said 12 physical events in the first half of 2022. Just to compare that in 2019, through June of that year we had done 35 physical events. Yeah, 35. And what's perhaps more interesting is we had our largest first half ever in our 12 year history because we're doing so much hybrid and virtual to compliment the physical. So that's the new format is CUBE plus digital or sometimes just digital but that's really what's happening in our business. So I think it's a reflection of what's happening in the broader tech community. So everyone's still trying to figure that out but it's clear that events are back and there's no replacing face to face. Or as I like to say, belly to belly, because deals are done at physical events. All these events we've been to, the sales people are so excited. They're saying we're closing business. Pipelines coming out of these events are much stronger, than they are out of the virtual events but the post virtual event continues to deliver that long tail effect. So that's not going to go away. The bottom line is hybrid is the new model. Okay let's look at some of the big themes that we've taken away from the first half of 2022. Now of course, this is all happening under the umbrella of digital transformation. I'm not going to talk about that too much, you've had plenty of DX Kool-Aid injected into your veins over the last 27 months. But one of the first observations I'll share is that the so-called big data ecosystem that was forming during the hoop and around, the hadoop infrastructure days and years. then remember it dispersed, right when the cloud came in and kind of you know, not wiped out but definitely dampened the hadoop enthusiasm for on-prem, the ecosystem dispersed, but now it's reforming. There are large pockets that are obviously seen in the various clouds. And we definitely see a ecosystem forming around MongoDB and the open source community gathering in the data bricks ecosystem. But the most notable momentum is within the Snowflake ecosystem. Snowflake is moving fast to win the day in the data ecosystem. They're providing a single platform that's bringing different data types together. Live data from systems of record, systems of engagement together with so-called systems of insight. These are converging and while others notably, Oracle are architecting for this new reality, Snowflake is leading with the ecosystem momentum and a new stack is emerging that comprises cloud infrastructure at the bottom layer. Data PaaS layer for app dev and is enabling an ecosystem of partners to build data products and data services that can be monetized. That's the key, that's the top of the stack. So let's dig into that further in a moment but you're seeing machine intelligence and data being driven into applications and the data and application stacks they're coming together to support the acceleration of physical into digital. It's happening right before our eyes in every industry. We're also seeing the evolution of cloud. It started with the SaaS-ification of the enterprise where organizations realized that they didn't have to run their own software on-prem and it made sense to move to SaaS for CRM or HR, certainly email and collaboration and certain parts of ERP and early IS was really about getting out of the data center infrastructure management business called that cloud 1.0, and then 2.0 was really about changing the operating model. And now we're seeing that operating model spill into on-prem workloads finally. We're talking about here about initiatives like HPE's Green Lake, which we heard a lot about last week at Discover and Dell's Apex, which we heard about in May, in Las Vegas. John Furrier had a really interesting observation that basically this is HPE's and Dell's version of outposts. And I found that interesting because outpost was kind of a wake up call in 2018 and a shot across the bow at the legacy enterprise infrastructure players. And they initially responded with these flexible financial schemes, but finally we're seeing real platforms emerge. Again, we saw this at Discover and at Dell Tech World, early implementations of the cloud operating model on-prem. I mean, honestly, you're seeing things like consoles and billing, similar to AWS circa 2014, but players like Dell and HPE they have a distinct advantage with respect to their customer bases, their service organizations, their very large portfolios, especially in the case of Dell and the fact that they have more mature stacks and knowhow to run mission critical enterprise applications on-prem. So John's comment was quite interesting that these firms are basically building their own version of outposts. Outposts obviously came into their wheelhouse and now they've finally responded. And this is setting up cloud 3.0 or Supercloud, as we like to call it, an abstraction layer, that sits above the clouds that serves as a unifying experience across a continuum of on-prem across clouds, whether it's AWS, Azure, or Google. And out to both the near and far edge, near edge being a Lowes or a Home Depot, but far edge could be space. And that edge again is fragmented. You've got the examples like the retail stores at the near edge. Outer space maybe is the far edge and IOT devices is perhaps the tiny edge. No one really knows how the tiny edge is going to play out but it's pretty clear that it's not going to comprise traditional X86 systems with a cool name tossed out to the edge. Rather, it's likely going to require a new low cost, low power, high performance architecture, most likely RM based that will enable things like realtime AI inferencing at that edge. Now we've talked about this a lot on Breaking Analysis, so I'm not going to double click on it. But suffice to say that it's very possible that new innovations are going to emerge from the tiny edge that could really disrupt the enterprise in terms of price performance. Okay, two other quick observations. One is that data protection is becoming a much closer cohort to the security stack where data immutability and air gaps and fast recovery are increasingly becoming a fundamental component of the security strategy to combat ransomware and recover from other potential hacks or disasters. And I got to say from our observation, Veeam is leading the pack here. It's now claiming the number one revenue spot in a statistical dead heat with the Dell's data protection business. That's according to Veeam, according to IDC. And so that space continues to be of interest. And finally, Broadcom's acquisition of Dell. It's going to have ripple effects throughout the enterprise technology business. And there of course, there are a lot of questions that remain, but the one other thing that John Furrier and I were discussing last night John looked at me and said, "Dave imagine if VMware runs better on Broadcom components and OEMs that use Broadcom run VMware better, maybe Broadcom doesn't even have to raise prices on on VMware licenses. Maybe they'll just raise prices on the OEMs and let them raise prices to the end customer." Interesting thought, I think because Broadcom is so P&L focused that it's probably not going to be the prevailing model but we'll see what happens to some of the strategic projects rather like Monterey and Capitola and Thunder. We've talked a lot about project Monterey, the others we'll see if they can make the cut. That's one of the big concerns because it's how OEMs like the ones that are building their versions of outposts are going to compete with the cloud vendors, namely AWS in the future. I want to come back to the comment on the data stack for a moment that we were talking about earlier, we talked about how the big data ecosystem that was once coalescing around hadoop dispersed. Well, the data value chain is reforming and we think it looks something like this picture, where cloud infrastructure lives at the bottom. We've said many times the cloud is expanding and evolving. And if companies like Dell and HPE can truly build a super cloud infrastructure experience then they will be in a position to capture more of the data value. If not, then it's going to go to the cloud players. And there's a live data layer that is increasingly being converged into platforms that not only simplify the movement in ELTing of data but also allow organizations to compress the time to value. Now there's a layer above that, we sometimes call it the super PaaS layer if you will, that must comprise open source tooling, partners are going to write applications and leverage platform APIs and build data products and services that can be monetized at the top of the stack. So when you observe the battle for the data future it's unlikely that any one company is going to be able to do this all on their own, which is why I often joke that the 2020s version of a sweaty Steve Bomber running around the stage, screaming, developers, developers developers, and getting the whole audience into it is now about ecosystem ecosystem ecosystem. Because when you need to fill gaps and accelerate features and provide optionality a list of capabilities on the left hand side of this chart, that's going to come from a variety of different companies and places, we're talking about catalogs and AI tools and data science capabilities, data quality, governance tools and it should be of no surprise to followers of Breaking Analysis that on the right hand side of this chart we're including the four principles of data mesh, which of course were popularized by Zhamak Dehghani. So decentralized data ownership, data as products, self-serve platform and automated or computational governance. Now whether this vision becomes a reality via a proprietary platform like Snowflake or somehow is replicated by an open source remains to be seen but history generally shows that a defacto standard for more complex problems like this is often going to emerge prior to an open source alternative. And that would be where I would place my bets. Although even that proprietary platform has to include open source optionality. But it's not a winner take all market. It's plenty of room for multiple players and ecosystem innovators, but winner will definitely take more in my opinion. Okay, let's close with some ETR data that looks at some of those major platform plays who talk a lot about digital transformation and world changing impactful missions. And they have the resources really to compete. This is an XY graphic. It's a view that we often show, it's got net score on the vertical access. That's a measure of spending momentum, and overlap or presence in the ETR survey. That red, that's the horizontal access. The red dotted line at 40% indicates that the platform is among the highest in terms of spending velocity. Which is why I always point out how impressive that makes AWS and Azure because not only are they large on the horizontal axis, the spending momentum on those two platforms rivals even that of Snowflake which continues to lead all on the vertical access. Now, while Google has momentum, given its goals and resources, it's well behind the two leaders. We've added Service Now and Salesforce, two platform names that have become the next great software companies. Joining likes of Oracle, which we show here and SAP not shown along with IBM, you can see them on this chart. We've also plotted MongoDB, which we think has real momentum as a company generally but also with Atlas, it's managed cloud database as a service specifically and Red Hat with trying to become the standard for app dev in Kubernetes environments, which is the hottest trend right now in application development and application modernization. Everybody's doing something with Kubernetes and of course, Red Hat with OpenShift wants to make that a better experience than do it yourself. The DYI brings a lot more complexity. And finally, we've got HPE and Dell both of which we've talked about pretty extensively here and VMware and Cisco. Now Cisco is executing on its portfolio strategy. It's got a lot of diverse components to its company. And it's coming at the cloud of course from a networking and security perspective. And that's their position of strength. And VMware is a staple of the enterprise. Yes, there's some uncertainty with regards to the Broadcom acquisition, but one thing is clear vSphere isn't going anywhere. It's entrenched and will continue to run lots of IT for years to come because it's the best platform on the planet. Now, of course, these are just some of the players in the mix. We expect that numerous non-traditional technology companies this is important to emerge as new cloud players. We've put a lot of emphasis on the data ecosystem because to us that's really going to be the main spring of digital, i.e., a digital company is a data company and that means an ecosystem of data partners that can advance outcomes like better healthcare, faster drug discovery, less fraud, cleaner energy, autonomous vehicles that are safer, smarter, more efficient grids and factories, better government and virtually endless litany of societal improvements that can be addressed. And these companies will be building innovations on top of cloud platforms creating their own super clouds, if you will. And they'll come from non-traditional places, industries, finance that take their data, their software, their tooling bring them to their customers and run them on various clouds. Okay, that's it for today. Thanks to Alex Myerson, who is on production and does the podcast for Breaking Analysis, Kristin Martin and Cheryl Knight, they help get the word out. And Rob Hoofe is our editor and chief over at Silicon Angle who helps edit our posts. Remember all these episodes are available as podcasts wherever you listen. All you got to do is search Breaking Analysis podcast. I publish each week on wikibon.com and siliconangle.com. You can email me directly at david.vellante@siliconangle.com or DM me at dvellante, or comment on my LinkedIn posts. And please do check out etr.ai for the best survey data in the enterprise tech business. This is Dave Vellante for theCUBE's Insights powered by ETR. Thanks for watching be well. And we'll see you next time on Breaking Analysis. (upbeat music)

>>The cube presents HPE discover 2022 brought to you by HPE. >>Welcome back to the Cube's coverage. We're wrapping up day two, John furrier and Dave ante. We got some friends and colleagues, longtime friends, Crawford Del Pret is the president of IDC. Matt Eastwood is the senior vice president of infrastructure and cloud guys. Thanks for coming on spending time. Great to you guys. >>That's fun to do it. Awesome. >>Cravin I want to ask you, I, I think this correct me if I'm wrong, but this was your first physical directions as, as president. Is that true or did you do one in 2019? >>Uh, no, we did one in 20. We did, we did one in 20. I was president at the time and then, and then everything started, >>Well, how was directions this year? You must have been stoked to get back together. Yeah, >>It was great. I mean, it was actually pretty emotional, you know, it's, it's a community, right? I mean, we have a lot of customers that have been coming to that event for a long, long time and to stand up on the stage and look out and see people, you know, getting a little bit emotional and a lot of hugs and a lot of bringing people together. And this year in Boston, we were the first event really of any size that kind of came back. And when I kind of didn't see that coming in terms of how people, how ready people were to be together. Cause >>When did you did it April >>In Boston? Yeah, we did it March in March. Yeah, it was, it was, it was, it was a game day decision. I mean, we were, we had negotiated it, we were going back and forth and then I kind of made the call at the last minute, say, let's go and do it. And in Santa Clara, I felt like we were kind of opening up the crypt at the convention center. I mean, all the production people said, you know what? You guys were really the first event to be back. And attendance was really strong. You know, we, we, we got over a thousand. It was, it was really good. >>Good. It's always a fun when I was there. It was, it's a big deal. You guys prepare for it. Yeah. Some new faces up on the stage. Yeah. So, so Matt, um, you've been doing the circuit. I take it like, like all top analysts, super busy. Right. This is kind of end of the spring. I mean, I know it's summer, right. That's right. But, um, how do you look at, at discover relative some, some of the other events you've been at? >>So I think if you go back to what Crawford was just talking about our event in March, I mean, March was sort of the, the reopening and there was, I think people just felt so happy to be, to be back out there. You still get a little bit at, at these events. I mean, cuz for each, each company it's their first time back at it, but I think we're starting to get down what these events are gonna feel like going forward. Um, and it, I mean, there's good energy here. There's been a good attendance. I think the, the interest in getting back live and having face to face meetings is clearly strong. >>Yeah. I mean, this definitely shows that hybrids, the steady state, both events cloud. Yeah. Virtualization remotes. So what are you guys seeing with that hybrid mode? Just from a workforce, certainly people excited to get back together, but it's gonna continue. You're starting to see that digital piece. How is that impacting some of the, some of the customers you're tracking, who's winning and who's losing, coming out of the pandemic. What's the big picture look like? >>Yeah. I mean, if you, if you take a look at hybrid work, um, people are testing many, many, many different models. And I think as we move from a pandemic to an em, we're gonna have just waves and waves and waves of people needing that flexibility for a lot of different reasons, whether they have, uh, you know, preexisting conditions, whether they're just not comfortable, whether they have people who can't be vaccinated at home. So I think we're gonna be in this hybrid work for a long, long time. I do think though that we are gonna transition back into some kind of a normal, um, and I, and I think the big difference is that I think leaders back in the day, a long time ago, when people weren't coming into work, it was kind of like, oh, I know nothing's going on there. People aren't getting worked. And I think we're over that stage. Yeah. I think we're now into a stage where we know people can be productive. We know people can effectively work from home and now we're into the reason to be in the office. And the reason to be in the office is that collaboration, it's that mentoring it's that, you know, think about your 25 year old self. Do you wanna be staring at a windshield all day long and not kind of building those relationships? People want face to face, it's difficult. They want face >>To face and I would, and you guys had a great culture and it's a young culture. How are you handling it as an executive in terms of, is there a policy for hybrid or >>Yeah, so, so, so at IDC, what we did is we're in a pilot period and we've kind of said that the summertime is gonna be a pilot period and we've asked people, we're actually serving shocker, we're >>Serving, >>But we're, but we're, but, but we're actually asking people to work with their manager on what works for them. And then we'll come up with, you know, whether you are in, out of the office worker, which will be less than two days a hybrid worker, which will be three days or, uh, in, in the office, which is more than three days a week. And you know, we all know there's, there's, there's limitation, there's, there's, there's variability in that, but that's kind of what we're shooting for. And we'd like to be able to have that in place in the fall. >>Are you pretty much there? >>Yeah, I am. I, I am there three days a week. I I, Mondays and Fridays, unless, >>Because you got the CEO radius, right? Yeah. >><laugh>, <laugh> >>The same way I'm in the office, the smaller, smaller office. But so, uh, let's talk a little bit about the, the numbers we were chatting earlier, trying to squint through you guys are, you know, obviously the gold standard for what the market does, what happened in, you know, during the pandemic, what happened in 2021 and what do you expect to happen in, in 2022 in terms of it spending growth? >>Yeah. So this is, this is a crazy time, right? We've never seen this. You and I have a long history of, uh, of tracking this. So we saw in, in, in, in 2020, the market decelerated dramatically, um, the GDP went down to a negative like it always does in these cases, it was, you know, probably negative six in that, in that, in that kind of range for the first time, since I've been tracking it, which goes back over 30 years, tech didn't go negative tech went to about just under 3%. And then as we went to 2021, we saw, you know, everything kind of snap back, we saw tech go up to about 11% growth. And then of course we saw, you know, GDP come back to about a 4%, you know, ki kind of range growth. Now what's I think the story there is that companies and you saw this anecdotally everywhere companies leaned into tech, uh, company. >>You know, I think, you know, Matt, you have a great statistic that, you know, 80% of companies used COVID as their point to pivot into digital transformation, right. And to invest in a different way. And so what we saw now is that tech is now where I think companies need to focus. They need to invest in tech. They need to make people more productive with tech and it played out in the numbers now. So this year what's fascinating is we're looking at two Fastly different markets. We've got gasoline at $7 a gallon. We've got that affecting food prices. Uh, interesting fun fact recently it now costs over $1,000 to fill an 18 Wheeler. All right. Based on, I mean this just kind of can't continue. So you think about it, don't put the boat >>In the wall. Yeah. Yeah. >>Good, good, good, good luck. It's good. Yeah, exactly. <laugh> so a family has kind of this bag of money, right? And that bag of money goes up by maybe three, 4% every year, depending upon earnings. So that is sort of sloshing around. So if food and fuel and rent is taking up more gadgets and consumer tech are not, you know, you're gonna use that iPhone a little longer. You're gonna use that Android phone a little longer. You're gonna use that TV a little longer. So consumer tech is getting crushed, you know, really it's very, very, and you saw it immediately and ad spending, you've seen it in meta. You've seen it in Facebook. Consumer tech is doing very, very it's tough enterprise tech. We haven't been in the office for two and a half years. We haven't upgraded whether that be campus wifi, whether that be, uh, servers, whether that be, uh, commercial PCs, as much as we would have. So enterprise tech, we're seeing double digit order rates. We're seeing strong, strong demand. Um, we have combined that with a component shortage and you're seeing some enterprise companies with a quarter of backlog. I mean, that's, you know, really unheard at higher >>Prices, which >>Also, and therefore that drives that >>Drives. It shouldn't be that way. If there's a shortage of chips, it shouldn't be that way, >>But it is, but it is, but it is. And then you look at software and we saw this, you know, we've seen this in previous cycles, but we really saw it in the COVID downturn where, uh, in software, the stickiness of SaaS means that you just, you're not gonna take that stuff out. So the, the second half of last year we saw double digit rates in software surprise. We're seeing high single digit revenue growth in software now, so that we think is gonna sustain, which means that overall it demand. We expect to be between five and 6% this year. Okay, fine. We have a war going on. We have, you know, potentially, uh, a recession. We think if we do, it'll be with a lower case, R maybe you see a banded down to maybe 4% growth, but it's gonna grow this. >>Is it, is it both the structural change of the disruption of COVID plus the digital transformation yeah. Together? Or is it, >>I, I think you make a great point. Um, I, I, I think that we are entering a new era for tech. I think that, you know, Andrew's famous wall street journal oped 10 years ago, software is even world was absolutely correct. And now we're finding that software is, is eing into every nook and cranny people have to invest. They, they know disruptors are coming around every single corner. And if I'm not leaning into digital transformation, I'm dead. So >>The number of players in tech is, is growing, >>Cuz there's well, the number of players in tech number >>Industry's coming >>In. Yeah. The industry's coming in. So I think the interesting dynamic you're gonna see there is now we have high interest rates. Yeah. Which means that the price of funding these companies and buying them and putting data on is gonna get higher and higher, which means that I think you could, you could see another wave of consolidation. Mm-hmm <affirmative> because tech large install based tech companies are saying, oh, you know what? I like that now >>4 0 9 S are being reset too. That's another point. >>Yeah. I mean, so if you think about this, this transformation, right. So it's all about apps, absent data and differentiating and absent data. What the, the big winner the last couple years was cloud. And I would just say that if this is the first potential recession that we're talking about, where the cloud service providers. So I think a cloud as an operating model, not necessarily a destination, but for these cloud service providers, they've actually never experienced a slowdown. So how, and, and if you think about the numbers, 30% of, of the typical it budget is now quote, unquote cloud and 30% of all expenditures are it related. So there's a lot of exposure there. And I think you're gonna see a lot of, a lot of focus on how we can rationalize some of those investments. >>Well, that's a great point. I want to just double click on that. So yeah, the cloud did well during the pandemic. We saw that with SAS, have you guys tracked like the Tams of what got pulled forward? So the bit, a big discussion about something that pulled forward because of the pandemic, um, like zoom, for instance, obviously everyone's using zoom. Yeah, yeah, yeah. Was there fake Tams? There was one, uh, couple analysts who were pointing out that some companies were hot during the pandemic will go away that that Tam doesn't really exist, but there's some that got pulled forward early. That's where the growth is. So is there a, is there a line between the, I call fake Tam or pulled forward TA that was only for the pandemic situationally, um, devices might be like virtual event, virtual event. Software was one, I know Hoppin got laid a lot of layoffs. And so that was kind of gone coming, coming and going. And you got SAS which got pulled forward. Yep. And it's not going away, but it's >>Sustaining. Yeah. Yeah. But it's, but, but it's sustaining, um, you know, I definitely think there was a, there was a lot of spending that absolutely got pulled forward. And I think it's really about CEO's ability to control expectations and to kind of message what it, what it looks like. Um, you know, I think I look, I, I, I think virtual event platforms probably have a role. I think you can, you can definitely, you know, raise your margins in the event, business, significantly using those platforms. There's a role for them. But if you were out there thinking that this thing was gonna continue, then you know, that that was unrealistic, you know, Dave, to, to your point on devices, I'm not necessarily, you know. Sure. I think, I think we definitely got ahead of our expectations and things like consumer PCs, those things will go back to historical growth >>Rates. Yeah. I mean, you got the install base is pretty young right now, but I think the one way to look at it too, is there was some technical debt brought in because people didn't necessarily expect that we'd be moving to a permanent hybrid state two years ago. So now we have to actually invest on both. We have to make, create a little bit more permanency around the hybrid world. And then also like Crawford's talking about the permanency of, of having an office and having people work in, in multiple modes. Yeah. It actually requires investment in both the office. And >>Also, so you're saying operationally, you gotta run the company and do the digital transformation to level up the hybrid. >>Yeah. Yeah. Just the way people work. Right. So, so, you know, you basically have to, I mean, even for like us internally, Crawford was saying, we're experimenting with what works for us. My team before the pandemic was like one third virtual. Now it's two third virtual, which means that all of our internal meetings are gonna be on, on teams or zoom. Right. Yeah. They're not gonna necessarily be, Hey, just coming to the office today, cuz two thirds of people aren't in the Boston area. >>Right. Matt, you said if you see cloud as an operating model, not necessarily a place. I remember when you were out, I was in the, on the, on the, on the zoom when, when first met Adam Celski yeah. Um, he said, you were asking him about, you know, the, the on-prem guys and he's like, nah, it's not cloud. And he kind of was very dismissive of it. Yeah. Yeah. I wanna get your take on, you know, what we're seeing with as Azure service GreenLake, apex, Cisco's got their version. IBM. Fewer is doing it. Is that cloud. >>I think if it's, I, I don't think all of it is by default. I think it is. If I actually think what HPE is doing is cloud, because it's really about how you present the services and how you allow customers to engage with the platform. So they're actually creating a cloud model. I think a lot of people get lost in the transition from, you know, CapEx to OPEX and the financing element of this. But the reality is what HPE is doing and they're sort of setting the standard. I think for the industry here is actually setting up what I would consider a cloud model. >>Well, in the early days of, of GreenLake, for sure it was more of a financial, you >>Know, it was kind of bespoke, right. But now you've got 70 services. And so you can, you can build that out. But >>You know, we were talking to Keith Townsend right after the keynote and we were sort of UN unpacking it a little bit. And I, I asked the question, you know, if you, if you had to pin this in terms of AWS's maturity, where are we? And the consensus was 2014 console filling, is that fair or unfair? >>Oh, that's a good question. I mean, um, I think it's, well, clouds come a long way, right? So it'd be, I, I, I think 20, fourteen's probably a little bit too far back because >>You have more modern tools I Kubernetes is. Yeah. >>And, but you also have, I would say the market still getting to a point of, of, of readiness and in terms of buying this way. So if you think about the HP's kind of strategy around edge, the core platform as a, as a service, you know, we're all big believers in edge and the apps follow the data and the data's being created in new locations and you gotta put the infrastructure there. And for an end user, there's a lot of risk there because they don't know how to actually plan for capacity at the edge. So they're gonna look to offload that, but this is a long term play to actually, uh, build out and deploy at the edge. It's not gonna happen tomorrow. It's a five, 10 year play. >>Yeah. I mean, I like the operating model. I'd agree with you, Matt, that if it's, if it's cloud operations, DevSecOps and all that, all that jazz it's cloud it's cloud operating and, and, and public cloud is a public cloud hyperscaler on premise. And the storage folks were presented. That's a single pane of glass. That's old school concepts, but cloud based. Yep. Shipping hardwares, auto figures. Yeah. That's the kind of consumption they're going for now. I like it. Then I, then they got the partner led thing is the partner piece. How do you guys see that? Because if I'm a partner, there's two things, wait a minute, am I at bottleneck to the direct self-service? Or is that an enabler to get more cash, to make more money? If I'm a partner. Cause you see what Essentia's doing with what they do with Amazon and Deloitte and et C. Yeah. You know, it's interesting, right? Like they've a channel partner, I'm making more cash. >>Yeah. I mean, well, and those channel partners are all in transition too. They're trying to yeah. Right. Figure out. Right, right. Are they, you know, what are their managed services gonna look like? You know, what kind of applications are they gonna stand up? They're they're not gonna just be >>Reselling, bought a big house in a boat. The box is not selling. I wanna ask you guys about growth because you know, the big three cloud, big four growing pick a number, I dunno, 30, 35% revenue big. And like you said, it's 30% of the business now. I think Dell's growing double digits. I don't know how much of that is sustainable. A lot of that is PCs, but still strong growth. Yep. I think Cisco has promised 9% >>In, in that. Right, right. >>About that. Something like that. I think IBM Arvin is at 6%. Yep. And I think HPE has said, Hey, we're gonna do three to 4%. Right. Which is so really sort of lagging and which I think a lot of people in wall street is like, okay, well that's not necessarily so compelling. Right. What does HPE have to do to double that growth? Or even triple that growth. >>Yeah. So they're gonna need, so, so obviously you're right. I mean, being able to show growth is Tanem out to this company getting, you know, more attention, more heat from, from investors. I think that they're rightly pointing to the triple digit growth that they've seen on green lake. I think if you look at the trailing, you know, 12 month bookings, you got over, you know, 7 billion, which means that in a year, you're gonna have a significant portion of the company is as a service. And you're gonna see that revenue that's rat being, you know, recognized over a series of months. So I think that this is sort of the classic SAS trough that we've seen applied to an infrastructure company where you're basically have to kind of be in the desert for a long time. But if they can, I think the most important number for HPE right now is that GreenLake booking snow. >>And if you look at that number and you see that number, you know, rapidly come down, which it hasn't, I mean off a very large number, you're still in triple digits. They will ultimately start to show revenue growth, um, in the business. And I think the one thing people are missing about HPE is there aren't, there are a lot of companies that want to build a platform, but they're small and nobody cares. And nobody let's say they throw a party and nobody comes. HP has such a significant installed base that if they do build a platform, they can attract partners to that platform. What I mean by that is partners that deliver services on GreenLake that they're not delivering. They have the girth to really start to change an industry and change the way stuff is being built. And that's the be they're making. And frankly, they are showing progress in that direction. >>So I buy that. But the one thing that concerns me is they kind of hide the ball on services. Right. And I, and I worry about that is like, is this a services kind of just, you know, same wine, new bottle or, >>Or, yeah. So, so I, I, I would argue that it's not about hiding the ball. It's about eliminating confusion of the marketplace. This is the company that bought EDS only to spin it off <laugh>. Okay. And so you don't wanna have a situation where you're getting back into services. >>Yeah. They're the only one >>They're product, not the only ones who does, I mean, look at the way IBM used to count and still >>I get it. I get it. But I think it's, it's really about clarity of mission. Well, I point next they are in the Ts business, absolutely. Point of it. It's important prop >>Drive for them at the top. Right. The global 50 say there's still a lot of uniqueness in what they want to buy. So there's definitely a lot of bespoke kind of delivery. That's still happening there. The real promise here is when you get into the global 2000 and yeah. And can start them to getting them to consume very standardized offers. And then the margins are, are healthy >>And they got they're what? Below 30, 33, 30 3%. I think 34% last quarter gross margin. Yeah. That that's solid. Just compare that with Dell is, I don't know. They're happy with 20, 21% of correct. You get that, which is, you know, I I'll come back. Go ahead. I want, I wanna ask >>Guys. No, I wanna, I wanna just, he said one thing I like, which was, I think he nailed it. They have such, um, big install base. They have a great channel. They know how to use it. Right. That's a real asset. Yeah. And Microsoft, I remember when their stock was trading at 26 when Baltimore was CEO. Yep. What they did with no, they had office and windows, so a little bit different. Yep. But similar strategy, leverage our install base, bring something up to them. That's what you're kind of connecting the >>Absolutely. You have this velocity, uh, machine with a significant girth that you can now move to a new model. They move that to a new model. To Matt's point. They lead the industry, they change the way large swath the customers buy and you will see it in steady revenue growth over time. Okay. So I just in that, well, >>So your point is the focus and there the right it's the right focus. And I would agree what's >>What's the other move. What's their other move, >>The problem. Triple digit booking growth off a number that gets bigger >>Inspired. Okay. >>Whats what's the scoreboard. Okay. Now they're go at the growth. That's the scoreboard. What are the signals? Are you looking at on the scoreboard Crawford and Matt in terms of success? What are the benchmarks? Is it ecosystem growth, number of services, triple growth. Yeah. What's the, what are some of the metrics that you guys are gonna be watching and we should be watching? >>Yeah. I mean, I dunno if >>You wanna jump in, I mean, I think ecosystem's really critical. Yeah. You want to, you want to have well and, and you need to sell both ways like HPE needs to be selling their technology on other cloud providers and vice versa. You need to have the VMs of the world on, you know, offering services on your platform and, and kind of capturing some, some motion off that. I think that's pretty critical. The channel definitely. I mean, you have to help and what you're gonna see happen there is there will be channel partners that succeed in transforming and succeeding and there'll be a lot that go away and that some, some of that's, uh, generational there'll be people that just kind of age outta the system and, and just go home. >>Yeah. Yeah. So I would argue it's, it's, it's, it's gonna be, uh, bookings growth rate. It's gonna be retention rate of the, of, of, of the customers, uh, that they have. And then it's gonna be that, that, um, you know, ultimately you're gonna see revenue, um, growth, and which is that revenue growth is gonna have to be correlated to the booking's growth for green lake cross. >>What's the Achilles heel on, on HPE. If you had to do the SWAT, what's the, what's the w for HPE that they really need to pay >>Attention to. I mean, they, they need to continue their relentless focus on cost, particularly in the, in the core compute, you know, segment they need to be, they need to be able to be as cost effective as possible while the higher profit dollars associated with GreenLake and other services come in and then increase the overall operating margin and gross margin >>Picture for the, I mean, I think the biggest thing is they just have, they have to continue the motion that they've been on. Right. And they've been consistent about that. Mm-hmm, <affirmative> what you see where others have, have kind of slipped up is when you go to, to customers and you present the, the OPEX as a service and the traditional CapEx side by side, and the customers put in this position of trying to detangle what's in that OPEX service, you don't wanna do that obviously. And, and HP has not done that, but we've seen others kind of slip up. And, but >>A lot of companies still wanna buy CapEx. Right. Absolutely liquid. And, and I think, >>But you shouldn't do a, you shouldn't do that bake off by putting those two offers out. You should basically ascertain what they want to do. >>What's kind of what Dell does. Right. Hey, how, what do you want? We got this, we got >>This on one hand, we got this, the, we got that, right. Uh, the two hand sales rep, no, this CapEx. Thing's interesting. And if you're Amazon and Azure and, and GCP, what are they thinking right now? Cause remember what, four years ago outpost was launched, which essentially hardware. Yeah. This is cloud operating model. Yep. Yeah. They're essentially bringing outpost. This is what they got basically is Amazon and Azure, like, is this ABL on the radar for them? How would you, what, what are they thinking in your mind if we're on, if we're in their office, in their brain trust, are they laughing? Are they like saying, oh, they're scared. Is this real threat >>Opportunity? I, I, I mean, I wouldn't say they're laughing at all. I, I would say they're probably discounting a little bit and saying, okay, fine. You know, that's a strategy that a traditional hardware company is moving to. But I think if you look underneath the covers, you know, two years ago it was, you know, pretty basic stuff they were offering. But now when you start getting into some, you know, HPC is a service, you start getting into data fabric, you start getting into some of the more, um, sophisticated services that they're offering. And, and I think what's interesting about HP. What my, my take is that they're not gonna go after the 250 services the Amazon's offering, they're gonna basically have a portfolio of services that really focus on the core use cases of their infrastructure set. And, and I think one of the danger things, one, one of the, one of the red flags would be, if they start going way up the stack and wanting to offer the entire application stack, that would be like a big flashing warning sign, cuz it's not their sweet spot. It's not, not what they have. >>So machine learning, machine learning and quantum, okay. One you can argue might be up the stack machine learning quantum should be in their wheelhouse. >>I would argue machine learning is not up the stack because what they would focus on is inference. They'd focus on learning. If they came out and said, machine learning all the way up to the, you know, what a, what, what a drug discovery company needs to do. >>So they're bringing it down. >>Yeah. Yeah. Well, no, I think they're focusing on that middle layer, right? That, that, that data layer. And I think that helping companies manage their data make more sense outta their data structure, their data that's core to what they wanna do. >>I, I feel as though what they're doing now is table stakes. Honestly, I do. I do feel like, okay, Hey finally, you know, I say the same thing about apex, you >>Know, we finally got, >>It's like, okay guys, the >>Party. Great. Welcome to the, >>But the one thing I would just say about, about AWS and the other big clouds is whether they might be a little dismissive of what's truly gonna happen at the edge. I think the traditional OEMs that are transforming are really betting on that edge, being a huge play and a huge differentiator for them where the public cloud obviously have their own bets there. But I think they were pretty dismissive initially about how big that went. >>I don't, and I don't think anybody's really figured out the edge yet. >>Well, that's an, it's a battleground. That's what he's saying. I think you're >>Saying, but on the ecosystem, I wanna say up the stack, I think it's the ecosystem. That's gotta fill that out. You gotta see more governance tools and catalogs and AI tools and, and >>It immediately goes more, it goes more vertical when you go edge, you're gonna have different conversations and >>They're >>Lacking. Yeah. And they, but they're in there though. They're in the verticals. HP's in the, yeah, >>For sure. But they gotta build out an ego. Like you walk around here, the data, the number of data companies here. I mean, Starburst is here. I'm actually impressed that Starburst is here. Cause I think they're a forward thinking company. I wanna see that times a hundred. Right. I mean, that's >>You see HP's in all the verticals. That's I think the point here, >>So they should be able to attract that ecosystem and build that, that flywheel that's the, that's the hallmark of a cloud that marketplace. >>Yeah, it is. But I think there's a, again, I go back to, they really gotta stay focused on that infrastructure and data management. Yeah. >>But they'll be focused on that, but, but their ecosystem, >>Their ecosystem will then take it up from there. And I think that's the next stage >>And that ecosystem's gotta include OT players and communications technologies players as well. Right. Because that stuff gets kind of sucked up in that, in that edge play. Do >>You feel like HPE has a, has a leg up on that or like a little, a little bit of a lead or is it pretty much, you know, even raced right now? >>I think they've, I think the big infrastructure companies have all had OEM businesses and they've all played there. It's it's, it's also helping those OT players actually convert their own needs into more of a software play and, and not so much of >>Physical. You've been, you've been following and you guys both have been following HP and HPE for years. They've been on the edge for a long time. I've been focused on this edge. Yeah. Now they might not have the product traction that's right. Or they might not develop as fast, but industrial OT and IOT they've been talking about it, focused on it. I think Amazon was mostly like, okay, we gotta get to the edge and like the enterprise. And, and I think HP's got a leg up in my opinion on that. Well, I question is can they execute? >>Yeah. I mean, PTC was here years ago on stage talking >>About, but I mean, you think about, if you think about the edge, right. I mean, I would argue one of the best acquisitions this company ever did was Aruba. Right. I mean, it basically changed the whole conversation of the edge changed the whole conversation. >>If >>Became GreenLake, it was GreenLake. >>Well, it became a big department. They gave a big, but, but, but I mean, you know, I mean they, they, they went after going selling edge line servers and frankly it's very difficult to gain traction there. Yeah. Aruba, huge area. And I think the March announcement was when they brought Aruba management into. Yeah. Yeah. >>Totally. >>Last question. Love >>That. >>What are you guys saying about the, the Broadcom VMware acquisition? What's the, what are the implications for the ecosystem for companies like HPE and just generally for the it business? >>Yeah. So >>You start. Yeah, sure. I'll start, I'll start there. So look, you know, we've, you know, spent some time, uh, going through it spent some time, you know, speaking, uh, to the, to the, to the folks involved and, and, and I gotta tell you, I think this is a really interesting moment for Broadcom. This is Broadcom's opportunity to basically build a different kind of a conversation with developers to, uh, try to invest in. I mean, just for perspective, right? These numbers may not be exact. And I know a dollar is not a dollar, but in 2001, anybody, remember what HP paid for? Compact >>8,000,000,020, >>So 25 billion, 25 billion. Wow. VMware just got sold for 61 billion. Wow. Okay. Unbill dollars. Okay. That gives you a perspective. No, again, I know a dollar is not a dollar 2000. >>It's still big numbers, >>2022. So having said that, if you just did it to, to, to basically build your DCF model and say, okay, over this amount of time, I'll pay you this. And I'll take the money out of this period of time, which is what people have criticized them for. I think that's a little shortsighted. I, yeah, I think this is Broadcom's opportunity to invest in that product and really try to figure out how to get a seat at the table in software and pivot their company to enterprise software in a different way. They have to prove that they're willing to do that. And then frankly, that they can develop the skills to do that over time. But I do believe this is a, a different, this is a pivot point. This is not >>CA this is not CA >>It's not CA >>In my, in my mind, it can't be CA they would, they would destroy too much. Now you and I, Dave had some, had some conversations on Twitter. I, I don't think it's the step up to them sort of thinking differently about semiconductor, dying, doing some custom semi I, I don't think that's. Yeah. I agree with that. Yeah. I think I, I think this is really about, I got two aspiration for them pivoting the company. They could >>Justify the >>Price to the, getting a seat at the adults table in software is, >>Well, if, if Broadcom has been squeezing their supplies, we all hear the scutle butt. Yeah. If they're squeezing, they can use VMware to justify the prices. Yeah. Maybe use that hostage. And that installed base. That's kind of Mike conspiracy. >>I think they've told us what they're gonna do. >><laugh> I do. >>Maybe it's not like C what's your conspiracy theory like Symantec, but what >>Do you think? Well, I mean, there's still, I mean, so VMware there's really nobody that can do all the things that VMware does say. So really impossible for an enterprise to just rip 'em out. But obviously you can, you can sour people's taste and you can very much influence the direction they head in with the collection of, of providers. One thing, interesting thing here is, was the 37% of VMware's revenues sold through Dell. So there's, there's lots of dependencies. It's not, it's not as simple as I think John, you you're right. You can't just pull the CA playbook out and rerun it here. This is a lot more complex. Yeah. It's a lot more volume of, of, of distribution, but a fair amount of VMware's install >>Base Dell's influence is still there basically >>Is in the mid-market. It's not, it's not something that they're gonna touch directly. >>You think about what VMware did. I mean, they kept adding new businesses, buying new businesses. I mean, is security business gonna stay >>Networking security, I think are interesting. >>Same >>Customers >>Over and over. Haven't done anything. VMware has the same customers. What new >>Customers. So imagine simplifying VMware. Right, right. Becomes a different equation. It's really interesting. And to your point, yeah. I mean, I think Broadcom is, I mean, Tom Crouse knows how to run a business. >>Yeah. He knows how to run a business. He's gonna, I, I think it's gonna be, you know, it's gonna be an efficient business. It's gonna be a well run business, but I think it's a pivot point for >>Broadcom. It's amazing to me, Broadcom sells to HPE. They sell it to Dell and they've got a market cap. That's 10 X, you know? Yes. Yeah. All we gotta go guys. Awesome. Great conversation guys. >>A lot. Thanks for having us on. >>Okay. Listen, uh, day two is a, is a wrap. We'll be here tomorrow, all day. Dave ante, John furrier, Lisa Martin, Lisa. Hope you're feeling okay. We'll see you tomorrow. Thanks for watching the cube, your leader in enterprise tech, live coverage.

>>Mm. Welcome back to the seaports in Boston City is abuzz. Bruins tonight, Celtics Tomorrow night. We're all excited. We're talking open source, which is a very exciting topic. Every company is using open source. I mean, it is the mainspring of innovation. I'm Dave along with my co host, Paul Dillon. And you're watching the cubes. Coverage of Red Hat. Summer 2022. Raj Raj Masinga is here. He's hybrid and emerging Platforms lead at Accenture and Ghetto Greber. Who's red hats? Business group lead eccentric. Gentlemen, welcome to the Cube. Thanks for coming >>on. Thank you. >>Thank you, Raj. We saw in the keynote up there today with Stephanie. She's coming on tomorrow. Rockstar Stephanie. Cheers. Also a Boston sports fan, and I have to work at it, but you can talk about the history with red hat. How long have you guys been at this? And give us a journey update. >>Well, first of all, thanks for having us here. Um, yes, we are big fans of Red Hat and especially Stephanie. I get to I had the pleasure of working with a very closely, um, our relationship with Red Hat goes many, many years, decades I think. And but Paul, come here will tell you that. You know, we've been focused a lot with the formation of our new business unit in Cloud. First around, migrating to the public cloud. But now, as we focus more and more around how our clients begin to operate in the public cloud in the cloud ecosystem hybrid is coming much more into focus. And Red Hat is very much a key client of a key partner of us. So we go way back. But this is all about us doubling down and increasing our partnership and deepening it with them. >>So, uh, you talked today about hybrid Cloud is everything. And it seems like a couple of years ago there was focuses more on moving to the public cloud and getting off of private infrastructure. Has there been a change in the ways in which customers are thinking, are they gonna be hanging onto their private infrastructure longer, perhaps, than was expected a couple of years ago? >>I think the first of all, it's a very different industry by industry. If you look at retail or consumer goods, I think there's a big movement in terms of percentages of workloads that are getting moved onto public cloud. If you look at industries like banking or utilities or government, more regular financial services, more regulated industries. I think we are finding a much larger percentage of their workloads because of regulatory reasons and security reasons, etcetera. Our need to remain either on premise or in private cloud. So I think it very much depends on the industry. But regardless the hype, you know, especially with the movement to edge now hybrid is going to be, you know, permeating everything. So I think by industry depends. But but the edges driving a whole new flywheel. >>You know, we started the Cuban 2010, so the cloud was, you know, modern cloud. Anyway, it was like, say, four years in into it and at the time, to your point Raj Financial Services, there was an evil word. No way we're ever going to the cloud. No, that's changed, obviously. But then, when the financial crisis hit, >>you >>had so initially it was a lot of tyre kicking experimentation. When the financial crisis hit, you had a lot of CFO saying, Okay, let's shift Capex to Apex and so that was sort of a bridge. And then after we came out, it was like this spate of innovation. And then we saw that during the pandemic, where cloud migration was a high priority and or it was the lifeline. And now it sounds like customers are kind of rethinking to your earlier conversation. What is cloud? It's that operating model. So I wonder if you could sort of Can you confirm that's kind of the journey that customers are taking? Where are they today? What does it mean? There? You know the the operating model. What do they consider cloud? >>Um, you actually, you see it? It's like it's really try forward to the cloud. Uh, but where it was in the beginning, If it doesn't hype about Public Cloud, they become more and more aware that it's hybrid because they have to bring the legacy system and process into the cloud as well. And it takes more time that actually they have fought before. So it's like there was a process of learning and also like in the steps moving forward to the operating model because they also understand I cannot operate a cloud like I was operating in the classical way like my old data centre and everything. It needs all the capabilities it needs, all the skills and especially if you go in a hybrid world. And it's a hybrid operation between the classic traditional but also the new ways of how you operate into a cloud. And you really see also the financial services. Now, uh, we had, uh I mean watch presented at keynote. We had a client in Germany. He made a decision, a very traditional financial services clients providing the service to chairman saving banks. And they did this decision and I would say, if you have spoken to them 10 years ago, they will not go into the cloud. But now they went to the cloud via private cloud, and now they got the confidence about how to operate in it. And now they move forward into a public cloud. But from a private cloud into the public cloud. Today, after security, they have up Skilling on skills and people and they understand the process and what's really required and needed in order to have such an environment. >>Generally, what's the strategy with regard to modernisation organisations? More building like an abstraction layer? Uh, with microservices and then connecting to the cloud. Or are they actually rewriting applications to make them cloud native? What are you What are you advising clients from a strategy standpoint, and I know it depends, but, you know, it's >>a It's a great question. I think the genesis to that strategy is how they view infrastructure, Right? So you know, everyone is, has this kind of, I don't know that this is almost mythical opinion out there with cloud. You don't need to worry about your infrastructure. All the providers will worry about it, and you just need to move it there. But the opposite is true. It's really critical what your infrastructure strategy is as you move to the cloud, because depending on what workload you have, you know it can be on any one of the continuum that you described. So the first thing is, where do you want to house your workload? Is the question and that will drive. How what do you want to do with your application? Whether you want to just maintain it the way it is, Do you want to simply modernise it, keeping where it is, or do you want to completely risk in it or even eliminated. So so I think the entire basically the answer to your question around. Do we? What do we do with the application? Is fundamentally driven by what is your infrastructure strategy and what that workload needs to do for you. >>So I know you want to jump in, but I got to follow up. You're saying hardware matters because we heard Paul Corvino today talking about this hardware renaissance. I'm actually I just ran a power panel called. Does hardware still matter? You're saying it matters? >>Yeah. And and it doesn't. And infrastructure doesn't always. I mean, now that you can do infrastructure as code, right? I mean, I was at the Del summit last time and read That is a huge partner of Dell now, right? Which, you know, uh, was much more, uh, partnered with VM ware. But I think the whole ecosystem is opening up, and even the hardware providers are looking at this in a much more nimble way. But yes, it's very much part of the conversation. They haven't gone away. >>During your keynote. You outlined sort of your strategy. Going forward is called cloud first. Yes. What does cloud first mean? >>Well, um, we we want to make sure that when we talk about transformation of business with our clients, So extension always goes with the idea of an industry lens of solving a specific problem for a client. What is the business problem we solve? And increasingly, what we want to message and drive to our clients is if you're thinking about, regardless of what the business is technologies absolutely critical to whatever transformation you're doing and when. When you look at technology, you have to think cloud first because that's where all the innovation is happening. That's where all the, um um, investments are being driven. Whether it's an I mean, it's a software vendor, but it's a hardware vendor with its uh, so you have to think cloud first when you think about transforming your business. >>Uh, what is How does modernisation play into that? You know, a lot of vendors are throwing a lot of resources that the modernisation market VM ware, Tanzania and IBM and such, uh, how interesting our customers really a Modernising legacy applications >>hugely right, because fundamentally, I think everything is now driven by our experiences. What we now are used to in terms of, uh, interfacing with applications are interfacing with function sets or interfacing with technology. So there is a lot of inherent, um, legacy technology that doesn't have that experience. So when you think about transforming, you have to come at it from an experience point of view. And when you think in those terms modernisation or even rebuilding the same, even if it's the same function set, uh, re skinning it and modernisation is critical for the purposes of engagement. >>What's the number one challenge that customers that you're working with face in terms of modernisation? Is it trying to figure out like Rogers sort of laying out the portfolio? What do I do with it? Do I modernise it? Do I retire it? Do I let it just die on the vine? What's their number one challenge? >>Uh, mainly it depends also on the industry, but it's, uh, I would say, for the highly regulated, certainly regulations. They always have an own interpretation of the regulations. Regulation means for them, but normally it's not really what they understand. But I think this is more and more coming to Annie's and more people understand what it really means, but it's also what we see a lot. They think first about technology, but not what kind of business problem they want, Uh, and they want to solve. So it's like, instead of having a technology neutral discussion is really do want to achieve, um, to have really start on this side and then having this discussion away, which, obviously it's one of the key, even because they start to the cloud even without having a strategy without having a vision. If you have a clear vision, if you have a clear strategy, you know where you want to go, and then you can make your business case. You can make you architecture and then you decide on technology. And then, of course, on this journey, all the things about security compliance coming to the plane, Yeah, and I think I think that's the easiest approach. But clients struggle to understand. Of course, I mean, the technology is changing rapidly. Even new products and release cycle new life cycles, the complexity of all the tools hardware we mentioned before network is changing new working coming up. It's really hard to keep pace or keep up with the base of the technology and what's happening even for us. And then you understand the complexity and bring this complexity back to simplicity, but not without losing. We have this also keynote the efficiency and, uh, flexibility for an engineer, because that's what he needs >>to your clients. Have the skill sets to do all that such a self serving question to you guys. But but no, do they? I mean, there's a skills shortage. There's a a battle for talent. So how are they >>dealing? I mean, it's obvious the battle for talent is here. I mean, everybody is looking for the best talent, and if we need, if you need a full stack. Engineer, for example, is very hard to get a full stack engineer on your ground. You call really cloud native. So you have to up skill people to re skilled people. There's also a change coming into it and the changes not to forget. So it's what we say most time. The technology is an easy part, but the change change the organisation, change up skilled organisation. That's the hard part because you need to change from from one mindset to another, and we know from the from the past. What change? People are not open to change in general, so we need to change the mindset. >>I wanna go back to Hybrid Cloud because we have Dani from Red Hat was on earlier and he said, Edges really redefining the definition of hybrid cloud. It's it's more complex architecture, and it's changing the nature of how we think about hybrid Cloud. Are you seeing that with your customers? Are they changing their thinking about what hybrid means in that context? >>Yeah, completely. You know, I was I was We did a bunch of, uh, research recently, and I had I just wanted to make sure I called this. I mean, there's a flexible report that came out that says 80% of all enterprises now are on hybrid 89% multi cloud redheaded. A report that said 80% of our businesses are expected to, um, uh, increase their use of open source. Right, So So, yes, hybrid is everywhere. Edge is driving it, but there's a There's another critical element to that movement. The complexity of our clients. Estates are increasing because whether it's hybrid or whether it's edge or whatever, they are now. You know, given if you're a C i or a C T o. Your estate is really complex now. So one of the things that we now need to do is how do we simplify that? So, you know, we think and we've been talking with red hat about this. We need to come up with a clean, you know, we keep calling it, you know, single pane of glass for a enterprise that allows them to look at their estate in a way that allows them to then simply make some innovative decisions across the entire state. So, yes, edges driving hybrid. But the key thing that we now need to overcome is how do we manage that complexity? >>We have new term. Uh, I call it Super Cloud, but the session is a better word. Medic cloud. That's gonna what I think of that century. I think of deep industry expertise. Of course, we have that, but with the partnership from redhead, it's a very it's horizontal in the sense that it can go anywhere. So how do you guys work in in terms of within Accenture plugging into your deep industry expertise? And how does that horizontal redhead >>fit. That's a really good question. So, you know, one of the things, you know. First of all, we came out with a announcement today about our expanded relationship with Red Hat. One of the key elements in that announcement is how we are looking and bringing in red Hat into our industry business motions. So we actually have decided to pick a certain number of industries. You know, financial services is one. Telco is another. We are thinking about utilities in Europe. Public health is a is another one that we are looking at. And as we come up with our offerings, you heard me and Stephanie talk about joint offerings earlier on the keynote. Um, these offerings are industry offerings, but in those offerings we have embedded and we are, they're powered by redhead technology. Um, that allows these industry solutions to drive innovation through their technology. Um, yes. Red hat can be, for the most part, a horizontal cross industry, you know, technology. But you have to really bring them into specific industrial solutions because of the way we go to market. And I think Red hat brings innovation, uh, in a way that these industries haven't seen before. >>So I mean, how do you stay out of their way? Because they have a services operation that they're trying to grow. And that's your business as well. So where the lines of demarcation >>back to your question? I I don't I don't think there is a limiting opportunity. Read? Had, you know Stephanie Me, Paul, we're all talking about How do we collectively increase both our armies? You know, I I Yes, there might be occasional overlaps in the trenches, but when you look at the bigger picture, it is not a problem at all. >>I wouldn't think so. I mean, the way you're describing Rogers exactly the way it should work. You lead with the business, figure out the business problem, how you're gonna solve that. The technology will take care of itself. Technologies come and they go. And you want to use modern technologies, obviously. But if you don't get the business piece right, forget no technology is gonna save you >>exactly, right. And and the complexities of what the businesses today are facing is getting more and more difficult. And I think actually, technologies like red hat, you know, they're the whole concept of open source, I think is very creative around driving innovations from the market. I >>want to ask you that because Paul Kermie is you know, the storey was sort of an homage to open source. How much do customers really care about open source >>customers care about innovation and and anything that drives innovation to their business, whether it's whether it comes from technology, whether it comes from crowdsourcing, whether it comes from, you know, uh, marketing doesn't matter. I think when you look at the key hunger for innovation and how open source drives innovation, it becomes part of the business conversation. And, uh and I think that's been one of the mantras that Paul has had from day one about how this is such a great platform for innovation. And I think that's >>something customers asked for. They say we must develop this using open source platforms and tool sets. >>Um, it depends. I think I think there are some technology CEO s R c T O s that are much more religious about what? Their technologies that needs to be there are others that are that are much more business oriented. Um, so yes, there are. You know, if it's more in telecom field, I think telecom or some of the more, uh, technology driven fields, they will ask for open source. In others, they we bring, bring it through as part of offering. >>Here's the nuance that I see and you mentioned Paul Cormier. Accenture, especially. I mean, you look at your ascendancy as a company, you for years would take known processes and codify them in software. And you made, you know, a lot of great innovations doing that. And people who made a lot of >>money >>today, this new normal, he calls it. I call it the new abnormal. You don't know what's around the corner. You have to build flexibility into your business, and that is something that open source enables. Uh, so that's sort of this, Really Not really. We don't want to speak about it too much. Business resiliency and flexibility is that that is the new normal. I don't see how you can do it without without open sources expertise. >>I completely agree that I and I think, um, it's actually an asset. So you know, in some ways, selfishly, by having open source in a solution stack some of the innovation gets them much more democratised, right? So? So it can come from a much broader sweet. So the load is not only an extension to come up with all the innovation we can, we can actually come up with a more democratised way of bringing that innovation in. So I think that's that's >>great. And it doesn't always go back to the community. I mean, Amazon built a $70 billion business on open source, but not all right, guys. Thanks so much for coming. Thank you very much for having a pleasure. All right, keep it right there. This is Dave Volonte for Paul Dillon. The Cubes. Continuous coverage of Red Hat Summit 2022 from the seaport in Boston. We'll be right back. >>Mm mm.

>>Yeah. Hello and welcome to the Cubes Presentation of Women in Tech Global Event Celebrating International Women's Day I'm John for a host of the Cube. We had a great guest in Cuba. Alumni Veranda re vice president. Commercial sales for Europe, Middle East and Africa. EMEA at AWS Amazon Web service to great to see you. Thank you for coming in all the way across the pond and the US to Palo Alto from London. >>Thank you, John. Great to see you again. I'm super excited to be part of this particularly special event. >>Well, this is a celebration of International Women's Day. It's gonna continue throughout the rest of the year, and every day is International Women's Day. But you're actually international. Your women in Tech had a great career. We talk that reinvent. Let's step back and walk through your career. Highlights to date. What have been some of the key things in your career history that you can share? >>Uh, thanks, John. It's always nice to reflect on this, you know? Look, I the way I would classify my career. First of all, it's very it's been very international. I was born and raised in India I went to study in the US It was always a dream to go do that. I did my masters in Boston University. I then worked in the U S. For a good 17 years across A number of tech, uh, tech companies in particular, started my career at McKinsey in the very early days and then moved on to work for E M. C. You'll you'll probably remember them, John. Very well, of course, There now, Del um And then I moved over to Europe. So I've spent the last 18 years here in Europe. Um, and that's been across a couple of different things. I I always classify. Half my career has been strategy, transformation, consulting, and the other half of my career is doing the real job of actually running operations. And I've been, you know, 12 15 years in the tech and telecom sector had the excitement of running Schneider Electric's business in the UK Denniston and Private Equity went back to McKinsey Boomerang, and then a W s called me, and how could I possibly refuse that? So it's been really exciting, I think the one big take away when I reflect on my career is. I've always had this Northstar about leading a business someday, and then I've sort of through my career master set of skills to be able to do that. And I think that's probably what you see. Very eclectic, very mobile, very international and cross industry. Uh, in particular. >>I love the strategy and operations comment because they're both fun, but they're different ones. Very execution, tactical operating. The business strategy is kind of figuring out the future of the 20 mile stare. You know, playing that chess match, so to speak, all great skills and impressive. But I have to ask you, what got you in the tech sector? Why technology? >>Well, so you know, in some ways I kind of fell into it, John, right? Because when I was growing up, my father was always in the tech space, so he had a business and fax machines and he was a reseller of cannon. If you remember Cannon, um, and microfilm equipment and I grew up around him, and he was a real entrepreneur. I mean, always super visionary about new things that were coming out. And so as I followed him around, I said, I kind of wanna be him. And it's a little bit about that sort of role model right early in your career. And then when I moved to the U. S. To study again, it wasn't like I thought I was gonna go to attack. I mean, I wasn't an engineer, you know. I grew up in India with economics degree. That's when women went into We didn't necessarily go into science. But when I joined McKinsey in the early days, I ended up working with, you know, the big companies of the days. You know, the IBMs, the E M. C. Is the Microsoft the oracles, etcetera. So I just then began to love, love the innovation, always being on the sort of bleeding edge. Um, and I guess it was a little bit just fascinating for me not being an engineer to learn how technology had all these applications in terms of how businesses advanced. So I guess, Yeah, that's kind of why I still think it around with it. It's interesting >>how you mentioned how you at that time you pipeline into economics, which is math. Of course. Uh, math is needed for economics, but also the big picture and This is one of the conversation we're having, Uh, this year, the breaking down the barriers for women in tech. Now there's more jobs you don't You don't need to have one pathway into into science or, you know, we're talking stem versus steam arts are super important, being creative. So the barriers to get in are being removed. I mean, if you think about the surface area for technology. So I got to ask you, what barriers do you think Stop girls and young women the most in considering a career in Tech? >>I've got to start with role models, John. Right? Because I think a number of us grew up, by the way, being the only not having the allies in the business, right? All of us, all the all the managers and hiring people are males rather than females. And the fact of the matter is, we didn't have this sort of he for she movement. And I think that's the biggest barrier is not having enough role models and positive role models in the business. I can tell you that research shows that actually, when you have female role models, you tend to hire more and actually what employees say is they feel more supportive when they have actually female managers. So I think there are lots of goodness, but we just need to accelerate how many role models we have. I think the other things I will say to you as well is, if you look at just the curriculum and the ability to get women into stem, right, I mean, we need to have colleges, universities, schools also encouraging women into stem. And you've probably heard about our programme. You know, it's something we do to encourage girls into stem. I think it's really important that teachers and others are actually encouraging girls to do math, for example, right? It's not just about science. Math is great. Logic is great, by the way. Philosophy is great. I just love what you said. I think increasingly, the EQ and EQ parts have to come together, and I think that's what women excel at. Um, so I think that's another very, very big carrier, and then the only other thing I will say is we're gonna watch the language we use, like when I think about job descriptions, they tend to be very male oriented languages we look at CVS now, if you haven't been a female in tech for a long time, your CV isn't going to show a lot of tech, is it? So for recruiters out there, look for competencies. Look for capabilities. You mentioned strategy and arts earlier. We have this leadership principles, As you know, John, really well, think big and dive deep, right? That strategy and operations. And so I think we we need to recruit for that. And we need to recruit for culture. And we need to recruit for people with ambition, an aspiration and not always Just look at 20 years of experience because you're not gonna find it. So I think those are some of the big barriers. Um, that I that I at least think, is stopping women from getting into town. But the biggest one is not enough women at the top hiring women. >>I think people want to see themselves, or at least an aspirational version of what they could be. And I think that's only gonna get better. Lots changed. A lot has happened over the years, but now, with technology in everyone's life, covid pulled forward a lot of realities. You know, the current situation in Europe where you're you are now has pulled forward a lot of realities around community, cyber, digital, our lives. And I think this opens up new positions, clearly cybersecurity. And I'm sure the job boards in every company is hiring people that didn't exist years ago, but also this new problems to solve. So the younger generation coming up, um, is gonna work on these problems, and they need to have role models. So what's your reaction to that? You know, new problems are opportunities their new so usually solved by probably the next generation. Uh, they need mentors. All this kind of works together. What's your reaction? >>Yeah, and, you know, let me pick up on something we're doing that I think is really important. I think you have to address age on the pipeline problem, you know, because they're just is a pipeline problem, you know, at the end of the day, And by that, what I mean is, we need to have more and more people with the and I'm not gonna use the word engineering or science. I'm going to use the word digital skills, right? And I think what we've we've committed to doing, John, you know, I'm very proud of this is we said we're gonna train 29 people 29 million people around this world on digital skills for free by 2025. Right, That's gonna help us get that pipeline going. The other thing we do is something called Restart where we actually do 12 weeks of training for the under, employed and under served right and underrepresented communities. And that means in 12 weeks we can get someone. And you know, this case I talk to you about this before I love it. Fast food operator to cloud, right? I mean, that's that's what I call changing the game on pipeline. But But here's the other stand. Even if the pipeline is good and we often see that the pipeline can be as much as 50% at the very early career women, by the time you get into the C suite, you're not a 50 anymore. You're less than 20%. So the other big thing John there, and this comes back to the types of roles you have an opportunities you create. We've got to pull women through the pipeline. We've really got to encourage that there are sponsors and not just mentors. I think women are sorry to say this over mentored and under sponsored. We need more people say I'm gonna open the door for you and create the opportunity I had that advantage. I hit people through my career. By the way, they were all men, right? Who actually stood out there and bang on the door and said, Okay, Tunisia is gonna go do this. And my first break I remember was having done strategy all my life when the CEO come into the room and you said, You're gonna better locks and you're gonna go run the P and L in Benelux and I almost fainted because I thought, Oh, my God, I've never run a PNR before But it's that type of risk taking that's going to be critical. And I think we've got to train our leaders and our managers to have those conversations be the sponsors, get that unconscious bias training. We all have it. Every single one of us has it. I think those are the combinations of things that are going to actually help open the door and make a see that Actually, it's not just about coding. It's actually about sales. It's about marketing. It's about product management. It's about strategy. It's about sales operations. It's about really, really thinking differently about your customers, right? And that's the thing that I think is attractive about technology. And you know what? Maybe that leads you to eventually become a coder. Or maybe not. Maybe you enter from coding, but those are all the range is available to you in technology, which is not good at advertising, >>that there's more applications than ever before. But I love your comment about over mentoring and under sponsored. Can you quickly just define the difference between those two support elements sponsoring versus, uh, mentoring sponsoring >>So mentors And by the way they can range from my son is my mentor, you know, is a great reverse mentor. By the way, I really encourage you to have the reverse mentoring going. So many mentors are people from all walks of your life, right? And you should have, you know, half a dozen of those. At least I think right who are going to be able to help you deal with situations, help coach you give you feedback respond to concerns You're having find ways for you to navigate all the stuff you need, by the way. Right? And feedback the gift we need that sponsors. It's not about the feedback. Necessarily. It's people who literally will create opportunities for you. Mentors don't necessarily do that. Sponsors will say you You know what? We got the phone. Call John and say, John, I've got the perfect person for you. You need to go speak to her. That's the big difference. John and a couple of sponsors. It's not about many, >>and that's where the change happens. I love that comment. Good call. I'm glad I could double down on that. Now that you have the environment, pipeline and working, you have the people themselves in the environment getting better sponsors and mentors, hopefully working more and more together. But once they're in the environment, they still got to be part of it. So as girls and young women and to the working sector for tech, what advice would you give them? Because now they're in the game there in the arena. So what advice would you give them? Because the environments they are now >>yeah, yeah. I mean, Gosh, John, it's you know, you've lived your career in this space. It's an exciting place to be right. Um, it's a growth opportunity. And I think that's a really important point because the more you enter sectors where there's a lot of growth and I would say hyper right growth, that's just gonna open the doors to so many more things. If you're in a place where it's all about cost cutting and restructuring, do you know what? It's super hard to really compete and have fun, right? And as we say, make history. So it's an exciting place. Today's world transformation equals digital transformation, right? So tech is the place to be, because tech is about transformation, Right? So coming in here, the one advice I would give you is Just do it because believe me, there's so much you can do, like take the risk, find someone is going to give you that entree point and get in the door right? And look, you know what's the worst that could happen? The worst that could happen is you don't like it. Fine. There's lots of other things than to go to. So my advice is, you know, don't take the mm. The really bad tips I've received in my career, right? Don't let people tell you you can't do it. You're not good enough. You don't have the experience, right? It's a male's world. You're a woman. It's all about you and not about EQ. Because that's just rubbish, Frankly, right. The top tip I was ever given was actually to take the risk and go for it. And that was my father. And then all these other sponsors I've had around the way. So that's that's the one thing I would say. The other thing I will say to you is the reason I advise it and the reason you should go for it. It's purposeful. Technology is changing our lives, you know, And we will all live to be no longer. 87 I think 100 right? And so you have the opportunity to change the course of the world by coming to technology. The vaccine deployment John was a great example, right? Without cloud, we couldn't have launch these vaccines as fast as we did. Right? Um, so I think there's a tonne of purpose. You've got to get in and then you've got to find. As I said, those sponsors, you've got to find those mentors. You've got to not worry about vertical opportunities and getting promoted. You gotta worry about horizontal opportunities, right? And doing the things that I needed to get the skills that you require, right? I also say one thing. Um, don't Don't let people tell you not to speak up, not to express your opinion. Do all of the above be authentic, Be authentic style. You will see more role models. Many, many more role models are gonna come out in tech that are going to be female role models. And actually, the men are really stepping up to the role models. And so we will be better together. And here's the big thing. We need you. We can do this without women. There's no possible way that we will be able to deliver on the absolute incredible transformation we have ahead of us without you. >>Inclusion, Diversity equity. These are force multipliers for companies. If applied properly, it's competitive advantage. And so breaking the bias. The theme this year is super super important. It sounds like common sense, but the reality is you break the bias It's not just women as men, as all of us. What can we do? Better to bring that force multiplier capabilities and competitive advantage of inclusion, diversity, equity to business. >>So the first thing I would say and my doctor used to always tell me this if it hurts, don't do it right. I would say to you just do it. Get diverse teams in place because if you have diverse teams, you have diversity of thought. You don't have to worry as much about bias because, you know, you've got the people around the table who actually represent the world. We also do something really cool. We have something called biassed busters. And so in meetings we have bias borders. People are going to, like, raise their hand and say, I'm not sure that that was really meant the way it was supposed to be, So I think that's just a nice little mechanism that we have here, Um, in a W s that helps. The other thing I would say to you is being your authentic self. You can't be a man and mentioned be women, and you're not gonna replicate somebody else because you're never gonna succeed if you do that, you know? So I would say be your authentic self all of the time, You know, we know. We know that women are sometimes labelled as aggressive when they're really not. Don't worry about it. It's not personal. I think the main thing you have to do is and I advise women all the time Is calibrate the feedback you're getting okay? Don't catastrophizing it right. Calibrate it. Taken in, you don't have to react to every feedback in the world, right? And make sure that you're also conscious of your own biases, right? So I think those are my Those are my two cents John for what they were for breaking device. I love the thing. >>Be yourself, You know, Don't take it too personal. Have some fun. That's life. That's a life lesson. Um, Final question, while I got you here, you're a great inspiration, and you're a great role model. You're running a very big business for Amazon web services. Europe, Middle East and Africa is a huge territory. It's its own thing. It's It's like you're bigger than some companies out there. Your role in your organisation. What's the hot area out there you were talking before camera. That's emerging areas that you're focused on. People are watching this young women, young ladies around the world. We're gonna look at this and say, What wave should I jump on? What's the hot things happening in in Europe? Middle Eastern Africa? >>I think the three things I would mention and I'm sure there's I'm sure, John, as we've spoken to my peers across the other gos, right, there are some similarities. The very, very hot thing right now is sustainability. Um, and you know, people are really building sustainability into their strategy. It's no longer sort of just an E S G goal in itself. It's actually very much part of changing the way they do business. So I think that's the hard part. And that's why again, I think it's a phenomenal place to be. I think the other big thing that we're absolutely talking about a lot is, and you know, this is getting even more complicated right now is just around security and cyber security and where that's going and how can we be really thinking about how we address some of these concerns that are coming out and I think there's There's something. There's a lot to be said about the way we build our infrastructure in terms of that context. So I think that's the second one. I think the third one is. People are really looking at technology to change the way businesses operate. So how does HR operate? How do you improve your employee value proposition? How do you do marketing in the next generation? How do you do finance in the next generation? So across the business is no longer the place of I t. It really is about changing the way we are as businesses and all of us becoming tech companies at the core. So the big thing there, John, is data data at the heart of everything we do data not because it's there in front of you, but data because you can actually make decisions on the back of it. So those are the things, Um, I seem to come across a lot more than anything else. >>It's always great to talk to you, your senior leader at AWS, um, inspirational to many. And thank you for taking the time to speak with us here on this great event. Women in text. Global Celebration of International Women's Day. Thank you so much for your time. >>Thank you, John. Always great to talk to you. >>We will definitely be keeping in touch More storeys to be had and we're gonna bring it to you. This is the cubes continuing presentation of women in tech. A global event celebrating International Women's Day. I'm John for your host. Thanks for watching. Yeah.

>>the service experience has dramatically changed over the course of history within enterprise it once a purely break fixed business that put out fires technology services has become a linchpin of customer I. T. Execution strategies where companies carefully select technology partners to anticipate and remediate potential problems before they occur. Moreover, organizations have come to expect a cloud like experience for their entire I. T. Estate spanning on prem cloud cross clouds. And increasingly the edge and technology services are looked upon by customers to provide a layer that helps abstract that underlying complexity of I. T. So they can focus on what they do best welcome to the cubes ongoing virtual coverage of Dell technologies world with me today to talk about the modern services experience are Doug Schmidt, who is the president of Dell Technologies and Services and Alex Barreto. Senior vice president. Dell Technology Services gentlemen welcome to the cube. Great to see you >>Well thank you. Dave big traven us >>really. My pleasure. Doug and I wonder if you could start by just giving us a quick overview of the organization that you lied. What's new with with Dell technology services? >>Well, yeah, so you know, first of all I get the privilege along with my team of leading over 60,000 service professionals and partners and we support customers in over 170 countries and 54 languages. And we can cover the entire technology spectrum from the edge to the core to the cloud. And our expertise in this area is broad and deep as you can imagine. And we help our customers with their transformation with the indian services and this includes consulting, uh deployment, support, managed services, education services as well as asset recovery. So just to name a few, so we use all of this technology and this capability to help our customers with their digital transformation. >>Greatest Alex, what's your wheelhouse? What's your role in in the services, strategy and technology? >>Yeah, I have the great opportunity to drive strategy, operations and technology. We're doing exciting things across all three day. But in particularly the technology space when I think about the intersection of technology and customer experience, a lot of exciting things there, I'm sure we'll talk about today. >>Yeah. Doug I mean if you look at the past 12 months, I mean you certainly saw you know, a real shift to work from home technologies and you guys, you know all about, you know the story well. But one of the things that we've been talking about is the uptick that we're expecting and we're already seeing it in professional services because there is a talent gap, there's a skills shortage and people have to they have to get hybrid right, they have to fund their digital transformation, they need help. So there's been a lot of changes in the market during the past year. What are you hearing from customers? What are their priorities? How are they changing? >>Well yeah you've stated Dave look there's a lot of changes in the market during the last year clearly and what our customers are telling us and where they're changing priorities are are really centered around two things. The first uh is that all of us are helping our customers deliver a better experience to their customers right to end customers that matters. You know in a brand new study we commissioned from Forrester consulting. Actually 56% of I. T. Leaders said that improving customer experience is the top driver for their digital transformation efforts. The second thing that we're hearing and that I'm hearing is that they're asking us to assist in this digital transformation. In that same research that I talked to you about From Forrester, 81 of the Iraqi leaders said that they need to leverage external technology specific expertise to help their internal I. T. Teams be successful. And I think just to deep dive these two items, you know first it's on the first one for the customer experience. It's just crucial for customers to transform their C. X. To be competitive. That's for all of us and you know there's not an industry or a team around that's not going through this whether it's schools uh doing digital learning healthcare and all of the things you know recently I just talked to a doctor via the you know zoom. I mean these are all new experiences, right? Uh government and corporations. It's just it's very remote. It's very seamless. It's very timely and uh look the employee experience is also closely tied to this right to the customer experience. Obviously if your employees aren't able to perform in this environment you can't really deliver the customer experience and they need the right technology and tools to really deliver that. And that's where we at Dell Technologies and Dell Technology Services are really helping our customers. Uh The second area I mentioned was really about getting our customers ready for the future and you know, digital transformation is not a one and done. This is a ongoing journey uh that gets our customers to assist their customers and their team members. And look they're looking for trusted advisor who can you know, specialized in the experience they need uh to guide them through this. And you know, I. T. Is not just back office anymore, as you know, it's really about getting in front of this, breaking down the silos, helping all of the departments not just I. T. Everything with their business needs and really delivering these outcomes that are going to help them with the customer experience and the digital transformation. >>Yeah thank you for that. And and doug I mean the Consumer Ization of I. T. Has been going on for the better part of a decade or or or more the cloud obviously has affected how we think about the experience and pricing and the like and and we're hearing a lot about Apex from Dell tech right now. What's the role of services in apex? >>Well look services has always been a primary interface with our customers and will continue to play a major part of that. And this is really about services and our products and our great solutions and software all coming together to really deliver the best experience for our customers. But specifically speaking about services, look this will be about services helping our customers seamlessly integrate apex offers and leverage the best of our infrastructure management capabilities into end. And I talked a little bit about those at the beginning, but this will be helping the customers deploy apex monitor it operated, optimized support, Decommissioning all those things from the end in life cycle. And look, we'll leverage our advantages in the supply slain as well. And scale Apex globally working with Kevin Brown and the operations team. So it's about bringing all the strength of Dell along with services to deliver apex, you know, services also is going to help accelerate the value of the customers with for example, apex data storage as a service, which I'm sure you're hearing about will manage the infrastructure across the lifecycle and help our customers get the most out of all of this great technology, we're bringing >>so Alex and then dug maybe you can you can chime in but you guys, you talked talked talked about how important customer experiences can you tell us more about what services is doing to specifically enhance that customer experience? Yeah, >>sure. Thank David. And look, you talked about which I thought was great about the notion of services much more than just break fixed. So that customer experience now spans the entire services lifecycle. So when we talk, yes, it's really that entire Cf. So we're doing a couple of things to to really drive customer experience to the next level. In fact three distinct focus areas. The first one is really around artificial intelligence, machine learning and embedding that notion of A I into everything that we do, whether that support deployment services, managed services, consulting services, education services. The entire spectrum of our services offering now carries a I into the services offering. We started with support but now we expanded to the entire entire spectrum that drives efficiency and customers see that and feel that in terms of lower costs, greater speed, it drives value for our customers as well because they're able to generate new and appreciated insights. And second, if you think about the total customer experience, there are times when they do have to interact with us and that interaction now is food and it's a seamless, unified in simple experience that the customers have with us across the entire product set of Dell. So there's pc servers, network storage we provide, we provide a single unified view in a simple view for our customers. And then third, if you think about our services offers, we're modernizing them, talked a little bit about this as well. We're embedding technology into the services offering, make them better and faster. Good example, that is modern provisioning. We launched at the beginning this year. Great market feedback has new features, new capability, leverages our cloud infrastructure to deliver the services. >>You know, Alex, I want to stay on that for a minute because when I when I think about apex to me it's it's it's a cultural transformation that's going on. I mean look, Del is a tech technology company, have been product company and you know, services there to support that, but it's always you've always had to align with product. But now that I almost see the, you know, the product is aligning with the customer service experience and they're coming together like this. So so we talked about the changes and obviously the focus on C. X. Can you tell us more about the specific technologies that services is leveraging to affect that? >>Yeah it's a good question. Often we actually talked about products and services now and services is the product, as you said, they're really coming together and there are a number of things we're doing to drive that technology change both within apex and also outside apex of our regular Capex model. So a couple examples of things were around the data management side as an example using graph technologies to really contextualized data generate insights from that data regardless of how the data is structured, regardless of where the data is stored, represent those values. Were using that inside L. For services, we actually then monetizing that in providing that to our customers. We are consulting services and manage services. You talked about Apex Cloud is and hybrid Cloud is a big big area for us. Big focus here. In fact all the apex offers are actually they'll manage customer operators. So that managed services component is integrated and is a fundamental part of everything our other apex offers that we're putting in place. There are a couple of other areas. We're also excited about two of them to highlight specifically Five G and the Edge and five G. We see phenomenal growth and opportunities around for customers around the new digital transformation that they can do with five G. But enabling that is the carriers behind that infrastructure of five G, which we are supporting with our managed services, developing carrier grade specific managed services capabilities for carriers around the globe. And on the edge side with the growth and phenomenal exponential growth actually of data around the far edge being driven by sensors and greater compute needs and storage needs at the far edge, we're actually providing services for those specific data centers. They're very distributed some of them in urban areas, some of them in non urban ears and there's hundreds of them and they require remote services capabilities which we have that infrastructure today. So we're deploying that in this far edge space, another area that we're excited about five G the edge apex and then our core services capabilities, >>the edges like this, this really infinite technology opportunity. It's so we see the, you know, the data center and you see the cloud and okay, we were largely a remote set of cloud services. You're seeing the cloud come into the on prem, you're seeing on prem come into the cloud. So you've got the hybrid connections here, cross cloud and then even at the edge you've got layers of edge, you think about, you know, the autonomous vehicle, there's so much going on their custom silicon etcetera, it's okay you're not gonna get into the auto business, I don't think at least any time soon. But all that data that's being collected that has to get back to the cloud and much of its not gonna get persisted. A lot of it's gonna stay at the edge of a lot of it's gonna come back to the cloud. Everything is just exploding. You've gotta roll there. It's just these layers and connections that are coming through into this, this kind of ubiquitous matrix. I mean it's like the movie, it's amazing. Very exciting times. And doug. I wonder just going off here Doug. I wonder if we could give you the last word. Maybe I'm looking into the future beyond apex what's next for Dell tech services and your customers? >>Well, first of all, they did a great job on that. It is exciting. Look, and the reason we're putting so much effort into the emerging technologies uh we've talked about is to prepare uh you know assist our customers with this and you and you brought this up as well. Look, the vast amount of customer data uh that they're going to have to contend with is just staggering. 175 0 bytes of data will be created worldwide by 2025 according to D. C. And even more amazing about that is 30% of it is you know, projected to be processed real time. You're talking about that edge, right? And more than you know 50% of the enterprise generated data will be created and processed at that edge according to Gartner. So look it's gonna be exciting. And over the next 5 to 10 years we predict that all devices will be able to communicate anywhere on earth. And you know look these types of support tools to gather intelligence from billions of in point, uh, is going to be fascinating as well. And there will be new ways to consume the this knowledge seamlessly, making the relationship between us and the intelligence even more seamless and natural. You know, an example of that that we're working with right now is augmented reality a R out for our field resources. And, you know, we're seeing the capability, it's going to provide our field engineers and it's, it's pretty amazing gonna buy a better experience for our team members and a better experience for our customers. You know, and customers are going to have to contend with all of these challenges. And so we're modernizing to help them and kind of just summarizing up, you know, look, the value of services is really about shifting to intelligence as a service. And there's three ways uh, that this will really come about. One is our relationship with our customers is evolving from providing technology solutions. You mentioned this in your opening to being fully integrated as a business partner. That's the first one. Second one, we're helping to shape how our customers run their business from processes to resources to the experience they delivered to their end customer. That's number two and number three, it's really about uh measuring our success. Everything we do is about our customers achieving their business targets and their outcomes. And that's why we believe intelligence as a service is the future of services. >>And this is where technology plays such an important role in the services component of that as they set up front is the linchpin. There's an inverse relationship over the course of my career between the customer experience and the technical complexity. The simpler it gets for customers, the more complex it gets at the back end, and you've got to hide that complexity and that's a big part of where technology and services comes in. We're seeing the explosion of data as you said, and and the explosion of processing power is very exciting times, Alex and Doug. Thanks so much for coming to the Cuban, sharing the update on Dell Tech services in the future. I really appreciate your time. >>Thank you. Thank you for having us. >>All right, and thank you for watching everybody's day volonte for the Cube and our ongoing coverage of Dell Technologies World 2021. The virtual edition will be right back.

>>Mhm Yes. >>Hello and welcome back to the cubes coverage of Del Tech World Virtual. I'm john for a host of the cube. We've got a great two guests here talking about a new apex brand and products Allison Langdon, Senior Manager, product marketing at Dell and David Reed senior Director of Product Management. Dell all around the apex to CUBA alumni's great to see you remotely. Soon to be in person. It's right around the corner but great to see you. >>Hey, thanks for having me and us. >>So I wish >>we were in person. >>We missed the Deltek Worlds amazing event. Um we're virtual this year but all great goodness is here but great big announcement still go on. The Apex Brandon portfolio is coming together the cloud and as a service, everything is happening. You got the new apex data storage service take us through what what is the new service? Why? >>Sure. So I can start um you know, we've been seeing this this shift towards an as a service model, you know I. T. Has always struggled with complexities associated with under and over provisioning capital budget constraints, lengthy and complex to refresh cycles. So you know the events over this past year and our new normal is really accelerated these you know challenges and it made them even more manageable. You know organizations need to become really agile and um they don't want to invest make big upfront investments in infrastructure when they're having such a hard time forecasting there needs you know the new levels of unpredictability that's been accelerating this you know adoption of as of service. So this is why we're introducing apex data storage services essentially were radically simplifying how customers can acquire and manage their storage resources. So data storage services is going to be the first as a service offering in our apex portfolio. So it's going to provide an on crown portfolio of scalable and elastic storage resources that are designed for affects treatment. It's all going to be anchored in our apex console. So it's gonna be a seamless self service experience where you just have a few key inputs, your data service, your performance tier, you're looking for your commitment term, your base capacity, for example and then all the infrastructure is owned and maintained by us built on our Industry leading Technology. So really delivering a super simple self service as a service experience, >>You know, when Jeff Clark was first talking about this as a service as it should be, you know, introducing the project, Apex Devon, I was kind of okay, this is kind of what we heard when we were last in person in 2019. The end to end l cloud, hybrid, cloud operating model, this is kind of what we're talking about here. What's something that covers? What's what's what is this data services? How does that vector into that? Because you know data control planes are being talked about a lot. The use of data in A I. And A II. Operations impacts I. T. And cloud scale. So hybrids now the operating model for the enterprise. >>Yeah. Yeah definitely. And it's this is really only where we're starting and we're going to be starting on a set of apex data storage services. Um so if I step back a little bit and talk a little bit about what apex data storage services are, I'd like to draw a little bit of a contrast to how customers procure their equipment today. So a customer typically today says I need some storage I need some mid range storage. I need for example a power store 5000 and then they work with the sales representative and says I need 24 1.92 terabyte drives. They need certain connectivity and then we present a quote to them with a whole bunch of line items with a lot of different prices and then the customer needs purchased that year, purchased that upfront and then uh, the only asset and then they managed the asset. So they're taking the risk. They need to plan for that capacity. And what we're doing is we're radically flipping that model. Uh, and what we're, what we're doing here is we're just driving to an outcome. So customers, they don't want to take that risk. They just want to drive to their business outcomes and they want to manage their applications. So what they have to do in this model is just pick, hey, I want storage services, I want some block services, I want a certain performance level and I learned a certain capacity and I want a commitment level. And what we do is we basically create a rate for them And we've optimized a lot of our processes on the back end to be able to, once that order has booked, we target a very rapid time of 14 days from the time the order is dropped until the customer can actually start operating on that here. From the, the time is dropped to the time that they can produce in their first volume Is 14 days. And really all they have to do is operate the year and we manage everything everything for them that you know, from capacity management to change management to software, life cycles, patching and you and things like that. And now jOHN I want to address your question about the hybrid world. It's absolutely designed for a hybrid world. So in our first release will be offering this on customer premises. And we're also introducing announcing a relationship we have with the data center provider of Equinox, which is the largest co location provider in the world. And what will be able to do is provide the subscription service of this as a service, not only customer on customer premises but in near cloud environments, in a co location facility. And we also have software assets that will extend into this environment, all driven by a central pain of unified experience. >>That's awesome. The hybrid cloud, It's gotta have that table stakes now. So, good, good plug there. Thanks Call out Allison, I gotta ask you on the customer side, what's the drivers for the apex data storage service? What was the key things that there you're hearing, why this is important to them? Uh, and what is the value proposition? >>Right, Great question. So I touched on a little bit of that upfront, but it's, you know, essentially what we what we do with this offering is take it out of the infrastructure business so that they can focus on more value added activities, focusing on customer satisfaction. Um You know, because we're maintaining we're managing and maintaining all the infrastructure for them. You know, some of the key pain points are just, you know, the overhead associated with maintaining and managing that infrastructure. But there's also the financial aspect as well. These services are designed for affects treatment, so you're not having to make that big initial Capex expense, um you're really able to align your expenses with actual usage versus anticipated usage. So it eliminates that, you know, cycle of over and under provisioning, which either results in, you know, over provisions waste or under provisions risk. We essentially, you know, streamlined all of those processes. So the customer just has to worry about operating the, operating their storage and it takes a lot of that worry off of them and they're able to just pay for what they use, elastically scale of resources up and down. So it's essentially really simplified and more predictable. >>Page has always been one of those things where hey, I'll pay when I need it. I gotta ask you on the differentiation side. This is comes up all the time. How do you guys different from alternatives? How do you differentiate going forward? How do you guys be successful? What's the, what's the strategy? What's the, what's the focus? >>Yeah. So I'll take the, I'll take a couple of points and then I'll pass it over to you Alison if you don't >>mind. Um, >>so first and foremost, I'm asked this a lot. So what does Dell bring to the table in this whole little apex? And as a service? First and foremost, Del is the leading infrastructure provider for all of I. T. On premise. We have the enterprise infrastructure re leading across just about every major category of infrastructure. So first and foremost we have that. We also have the scale of the reach, not only in our enterprise relationships through our partner community. So that is one that is one huge advantage that we have. One thing that we're and we talked about this model. Um the level of management that we provide for our customers is second to none with this solution. So we provide um we provide all of the the difficult management tasks from end end that a customer that we repeatedly hear from our customers that they don't want to be dealing with anymore. And we're going to be able to do that at scale for our customers. And I know there's a couple more points, so I'd like to I'll pass it on to Alison and she can she can address a couple more points there. >>Yeah, sure. I mean obviously Devin makes a great point as being an industry leader and just the breadth of our portfolio in general, beyond just storage that we can essentially deliver as a service, but no, with our initial flagship storage as a service offering. Um, so with apex data storage services, you know, I talked a little bit about, you know, the pay as you go, pay as you know, pay for what you use. You know, essentially the way this works is, you know, there's an initial based commitment of capacity that the customer commits to and then they're able to elastically scale up and down above that base and only pay for what they use. One of the differentiators were bringing to the table is that, you know, in addition to that base and that, you know, the on demand space if you will, that that goes above that we're charging a single rate. So it's really a simplified and transparent billing process. So you're not getting any over ridge penalties or fees for going into that on demand. It's essentially a single rate based on your commitment and you know, as much as you scale up and down, you're gonna you're gonna stay within one single rate. So no surprise average penalties. So that's definitely something that that differentiates us. And the customers also have the ability to raise that based commitment at any point. Co terminus lee in their contract. So if they're seeing like a strong growth trajectory or anticipating a more, you know, a big burst in usage for some data intensive type workloads. You know, we can add that can raise that floor commitment resulting in a lower rate but still a single rate for both based on demand. >>Well certainly data storage and moving data around, having it in the edge to the core to whatever is critical. And I think I think that's a great service. The question I want to ask you guys next to addresses. Give us an update on the apex brand and portfolio overall. How does this fit in? How is it shaping out? Can just take a minute to explain kind of where it is right now and what's available, how it was the strategy and what's coming? >>Sure. So I can talk a little bit about what's available when we're talking about today and then maybe devon if you can touch a little bit on the on the strategy and going forward. Um But what we've announced today is you at Del Tech World is the apex brand, the apex portfolio, which as I mentioned, it's our strategy for as a service and cloud. So in addition to our data storage services offering that we've been focused on today, um which is part of our infrastructure services, we're also introducing our cloud services as well as some more customizable services. So from a cloud services perspective, we're also going to be talking about our apex private cloud and apex hybrid cloud offerings. And then of course the apex console is really what brings all of these pieces together. It's that single self service experience to manage all of your as a service resources from a single place, David, I don't know if you want to take it. >>So what I would, what I would like to add is a little bit more color on the customized services. So if you look at apex at a high level um it's really how we're transforming the way we do business with our partners and customers and the way we deliver products and offers to our our partners and customers. And within the apex umbrella there's really two segments of customers that we see. One, there is still a segment of customers that want some technology control. They want to build their they want to build their clouds, they want to build their infrastructure and that's where really the apex custom comes into it. And we have a very large business in our custom business today with Dell technologies on demand with flex on demand and data center utility and those will be represented to be apex flex on demand, apex data center utility, um you know, that's what we're announcing here. And then the second portion is really this apex turnkey offer where customers don't care to manage it, they want to just consume, they want to operate their gear. And that's where a lot of the innovation, a lot of the a lot of the strategy that we're talking about here with the hybrid cloud service, the product cloud service, apex data storage services. So we're building out a set of world class infrastructure services that will then be able to wrap our leading infrastructure utilities around data protection, security, migration, compliance etcetera. And then build a set of horizontal and vertical solutions on top of this infrastructure to provide uh paramount uh value to our >>awesome Alice. I gotta ask you because this is always the case right. There's always one or two features that jump out the product, everything as a service clearly aligns with the market macro conditions in the marketplace and the evolution of the architecture in all businesses. That's clear, there's no debate on that. You guys got that nailed. What's the, what's the key thing if you had to kind of boil out the one thing that people are gravitating towards on the data storage service because um, everyone kinda is going here, right? So what if you get people that are watching it are learning what's popping out as the key product feature here or a few things that jump out. >>Sure. So, I mean really at the core, it's all about simplicity. Um, it's in terms of the console itself, which we've talked about it, you know, you have your infrastructure resources, your storage, your cloud services and it's all, it's just so simple. It's just, it's a matter of a few simple clicks and inputs that are pretty intuitive to meet your needs. It's the fact that its outcome based, you know, we're not focused on delivering a product, it's really truly delivering an outcome and a service to meet the customer's needs. So it's a whole new way of you know approaching the market and talking to our customers and making it intuitive and simple and seamless and really, you know, taking so much of the complexity off of the table for them. Um So it's the simplicity of the console, it's the being able to transition to more op ex model um from a financial aspect is huge and then you know aligning your expenses, you know with your actual versus and you know anticipated usage, so being able to manage that unpredictability, so that's necessary talking about a specific feature but really how we're driving towards really focusing on the customer needs. >>Now the business values right there, it's all about the outcome and you know, we're about getting charged on this variable, you know, over age on some service David. How about under the hood? If I look at the engine of this, how it fits into the kind of product architecture, you look at the product management, you're building the product and the engineers are cranking away what's the, what's the gear, what gears look like? What's the machinery look like under the hood? What's the cool tech, if any, um, you would share, if you can share. >>Yeah, it's interesting that you asked that, john and it's, it's really interesting that we got probably what, 12 minutes into this interview and we didn't even talk about a product, not one single product and that is really by design here. We're really, we're really selling the service. We're selling an offer. The product is the service, the service is the product and it's really about selling those outcomes. But then at the end of the day since we're talking talking shop here um we are introducing block services and that's powered by our new award winning power store mid range product and our file services are going to be powered by our um our award winning power scale and Ice alone systems as well. So we'll be interested you know introducing block and file services and we'll be extending that to object object services and data storage services. Uh >>huh, awesome. You know Alison and Devon I was talking to a friend we're running weren't on camera with the camera was turned on but we're just riffing about all the coolness around devops to have sex cops, how I. T. S go into large scale cloud apps and we're talking about all that and we were both kind of coming to the same conclusion that the next generation on top of all this automation is the excess of service, everything is a service. Because if you go that next level, that's where it is. Because the outcomes, the outcome is the services and that's underpinned by automation ai ops all the other stuff that's kind of hardened underneath still enables it. And you guys are already there. So congratulations. That's really cool reaction to that. That concept of automation powers X as a service. >>Yeah, I'll take that one, john. So, um while I talked only about playing storage technologies that power this there is a phenomenal amount of investment in um uh work and thought going into building out the underlying infrastructure and operations behind this because we need to provide um the operations and management of this infrastructure services, not only for storage but for compute and solutions and develops environment at scale. And it's crucial that we, we build out that infrastructure, that automation, that machine learning AI offers to really support this. So yeah, you're absolutely right. That is fundamental to getting this model. Uh nailed >>Alison. You're feeling pretty good about the product and the service. Now everything is a service that's your wheelhouse. It's happening. >>Yeah, here we are. We've got, we've got apex portfolio has arrived. So yeah, feeling good. Um, definitely excited. >>He was bright. Congratulations Allison David, thanks for coming on the Cuban, sharing the updates on the apex new data storage services, the new portfolio, the directionally correct action of everything as a service and all the automation that goes on the, that's really kind of a game changer. Thanks so much for sharing on the CUBA. Really appreciate it. Thanks for coming on. >>Thanks a lot, john, >>thank you. Okay. >>Del Tech world cube coverage continues. I'm john Kerry, the host. Thanks for watching. Yeah. Mhm.

>>Welcome back everyone to Dell Technologies World 2021 the virtual version. You're watching the cubes continuing coverage of the event and we're gonna talk about the Edge, the transformation of telco in the future of our expanding tech universe. With me is Aaron Jason, who's the vice president? Edge and Telkom marketing at Dell Technologies erin great to see you. I love this topic. >>Absolutely. It's it's pretty popular these days. I'm glad to be here with you. Thanks. >>It is popular, you know, cloud was kind of the shiny new toy last decade and it's still growing at double digits but it's kind of mainstream and now the Edge is all the rage. What's the best way to think about? What is the Edge? How do you define that? >>Yeah, you know, that's probably one of the most common questions I get is we start really doubling down on what we're doing it in the Edge world today. Um you know, I tried to basically not overcomplicated too much, you know, last year we really tried to to talk about it as being where you're the physical world, in the virtual world, connect. Um but you know, really it's more about what customers are looking to do with that technology. And so what we're really thinking about it today is the edges really where customers data is being used near point of generation to really define and build the essential value for that customer and that essential value is gonna be different in each vertical in each industry. Right? So in manufacturing, that essential value is created in the factory and retail, it's going to be, you know, at point of sale, whether that's in a store or on your device, in a virtual interaction, um in health care, it's going to be the point of care, Right? So it's gonna be the ambulance or the emergency room or the radiology lab. and of course in farming that essential values created in the field itself. So um, you know, for for many customers, it's really trying to figure out, you know, how do they take technology closer to the point of that value creation to be able to drive new new capabilities for the business, whether it's for what they're trying to accomplish or what they're trying to do in helping their customers. So really that's how we're thinking about the edge today. It's where that value generation occurs for a company. And how do we take technology to that point of generation to deliver value for them? >>Yeah, I like that. I mean to me the edge, I know what it's not, I know the edges, not a mega data center, but but everything else could be the edge. I mean, it's it's to me it's the place that's the most logical, the most logical place to process the data. So as you say, it could be a factory, it could be a hospital, it could be a retail store, it could be, could be a race track, it could be a farm, I mean virtually anything. So the edges, it's always been here, but it's changing. I mean most of the edge data has historically been analog. Everything now is getting instrumented. What are the factors that you think will make this, this industry's vision of the edge real in your opinion? >>Yeah. You know, it's it's really bringing together a handful of technologies that have really started to mature after over the last decade or so. Um the ones that have been around for a little bit, things like IOT have been emerging in the last several years. Um even Ai and machine learning many of those algorithms have been around for decades, but we've only recently been able to bring the compute power required to do that in edge environments in the last decade or so. Um it's so really the two key sort of killer technologies that have matured in the last couple of years is really the mic realization of computing. So being able to put compute almost anywhere on the planet and then the emergence of five G networking, giving us the ability to provide very high performance, low latency and high bandwidth environments to connect all those things together and get the data to those analytics environments. From that computer perspective. I mean, I still like to talk about moore's law as an example of that that ever marched that's been going on for, you know, half a century or more now is continuing to push forward um at a rate that is that that that that just really hasn't slowed down for the most part, you know, the example that I use with people, as, you know, you know, I still remember when I got my first calculator watch as a kid, you know, that Casio calculator watch that so many of us had, And my dad told me the story when he gave it to me, he's like, Hey, look, this has the same amount of compute power as the landing module on the moon, and I didn't know it at the time, but that was my first sort of entry and education around what Moore's law provided. And it's not so much speed. I mean, people think about that as it doubles in speed every 18 months, but it's really more about the density of compute that happens that moore's law drought, pushes along, so I can now squish more and more compute power into a smudge smaller location and I can now take that performance out to the edge in a way that I haven't been able to do before. I mean I think about my history, I joined E M C, that was acquired by Dell Technologies a couple years back. I joined that back in the late nineties when the biggest baddest storage array on the planet was one whole terabyte in size. And now I can fit that in the palm of my hand. In fact, when I walk around, you know, when I used to walk around with my, with my back, my laptop and go into offices, um you know, if I had my laptop and my tablet and my my my smartwatch, I had 12 to 16 cores on me and a couple of terabytes of capacity all connected with the equivalent of tens of T ones. Right? So what was once a small or or a mid sized data center just in the last decade or so? We now all walk around a small data centers and the power that that compute now brings to the edge allows us to take analytics that was really once done in data centers. I may have captured it at the edge, but I had to move it into a data lake. I had to stage it and analyze it. It was more of a historical way of looking at data. Now I can put compute right next to the point of data generation and give insight instantaneously as data is being generated. And that's opening up whole new ways that industries can drive new value for them and for their customers. And that's really what's exciting about it is this combination of these technologies that are all sort of maturing and coming together at the same time. Um, and there's just so much doing, it happened that space and devils really, really excited to be part of bringing that into these environments for our customers. >>I'm gonna give you a stat that a lot of people, I don't, I don't think realize, uh, you talked about moore's law and you're absolutely right. It's really, you know, technically moore's law is about the density, right? But the outcome of being able to do that is performance. And if you do the math, you know, moore's law doubling performance every two years, roughly, The math on that is that means 44 improvement per year in performance. Everybody talks about how moore's laws is dead. It's not, it's just changing. Here's the, here's the stat. If you take a system on a chip, take like for instance apples a 14 and go back five years from 2015 to 2021. If you add up the performance of the CPU the combinatorial factors of the CPU gpu and in the N. P. U. The neural processing unit, just those three, The growth rate has been 118 a year vs 44%. So it's actually accelerating and that doesn't include the accelerators and the DSPS and all the other alternative processors. So, and to your point and by the way that a 14 shipping cost Apple 50 bucks. So and and that fits in the palm of your hand to the point that you were just making So imagine that processing power at the edge most of of of of of ai today is modeling, let's say in the cloud, the vast majority is going to be a i influencing at the edge. So you are right on on that point. >>Yeah, there's no question about it. So, to your point, I mean, moore's law is just of course CPU itself. All right. And it comes out to roughly, on average, it's about 10 x every five years. 100 X every 10 years, 1000 X every 15 years. I mean, it's incredible how much power you can put in a small footprint today. And then if you factor in the accelerators and everything else um, it's actually if anything that innovation is going faster and faster and to your point, um you know, the while the modeling is still going to typically happen in data centers as you pull together lots of different data sets to be able to analyze and create new models. But those models are getting pushed right out to the edge on these compute devices literally feet away at times from the point of data generation to be able to give us really real time analytics and influencing. The other cool thing about this too is you know we're going from sort of more looking backwards and making business analytics based on what has already happened in the past to being able to do that in the very near past. And of course now with modern analytics and models that are being created for ai we're able to do more predictive analytics so we can actually identify errors, identify challenges before they even occur based on pattern matching that they're saying. Um So it's really opening up new doors and new areas that we've never been able to see before that's really all powered by by these capabilities. >>It's insane the amount of data that is coming. We think data is overwhelming today. You ain't seen nothing yet. Um Now erin you cover the edge and the telecom business up. I was beside it when I when I when I found that out because the telecom businesses is ripe for transformation. Um So what do you how is Dell thinking about that? Why are you sort of putting those together? What are the synergies that you see in in the commonalities in those 22 sectors? >>Yeah. I mean at the end of the day it's really all about serving the enterprise customers in the in the organizations of all kinds um that the industry is trying to bring these edge technologies too and that's no different with the telecommunications industry. Right? So you know when when the when the four G world changed about 10 years ago um you know the telecom industry was able to bring the plumbing the network piping out to all the endpoints but they really didn't capture the over the top revenue opportunities that Four G technologies opened up right. That really went to the hyper scholars. It went to you know, a lot of the companies that we all know and love like uh you know, Uber and Airbnb and netflix and others um and that really when the four Gr that was really more about opening up consumer opportunities as we move to five G. And as we move these ultra low latency and high bandwidth capabilities out to the enterprise edge, it's really the B two B opportunities that are opening up and so on the telecom side we're partnering with the telecommunication companies to modernize their network, enroll five G. L. Quickly. But one of the more important things is that we're partnering with them to be able to build services over the top of that that they can then sell into their customer base and their business customer base. So whether that's mech, whether that's private mobility, um delivering data services over the top of those networks, there's a tremendous opportunity for the telecoms to be able to go and capture um Ed revenue opportunities and we're here to help them to partner with them to be able to do that. Now if you put yourself in the shoes of the customer, the enterprise business, a manufacturer or retail, who's looking to be able to leverage these technologies, there's a variety of ways in which they're going to be able to to to consume these technologies. In some cases they'll be getting it direct from vendors direct from Dell Technologies and others. They might be using solutions integrators to be able to combine these technologies together for a particular solution. They may get some of those technologies from their telecom provider and even others, they might get it from the cloud provider. So um Dell wants to make sure that we're being able to help our customers across a variety of ways in which they want to consume those technologies and we have to businesses focused on that. We've got one business focused on edge solutions where we partner with oT vendors closely as well as cloud providers to be able to provide a technology and infrastructure based on which we can consolidate edge workloads To be able to allow customers that want to be able to run those um those services on prem and by those from a direct vendor. Um there's other customers that want to get those through the telecoms. And so we work closely with the telecommunication providers to provide them that modern cloud native disaggregated network that they're looking to build to support 5G. And then help them build those services on the top that they can sell either way whether the customer wants to get that from a vendor like Dell or from a service provider like like uh like an A T and T and Verizon or others. Um Dell looks to partner with them and be a way to provide that underlying infrastructure that connects all of that together for them. >>Well, I mean the beauty of the telco networks is their hardened. But the problem for the telco networks is they're they're hardened and so you've got the over over the top vendors bow guarding their network. The cost per bit is coming down, data is going through the roof and the telcos can't, they can't participate in that over the top and get to those subscribers. But with Five G. And the technologies that you're talking about bringing to the telecoms world, they're they're gonna transform and many are going to start competing directly and this is just a whole new world out there. I wonder Aaron if you could talk about um what you're specifically talking about at Del Tech World this year as it relates to Edge. >>Sure. So the both of the businesses hedge in telecom have a couple announcements this year. This this year, Deltek World, um starting with Edge um as you may recall back in uh in in the fall of last year when we had our last technologies world, we announced our intent to launch an edge business. Um so that that was formulated and stood up over the last couple of months and and we're really focusing on a couple of different areas. How do we look at our overall Dell technologies portfolio and be able to bring particular products and solutions that exist already and be able to apply those uh to edge use cases. We're looking at building a platform which would allow us to be able to consolidate a variety of workloads. And of course we're working on partnerships specifically in the ot space to be able to vertical eyes these offers to help particular uh particular industries. Right now we're focusing on manufacturing and retail but we'll expand that over time. So at Del Tech World this year we're launching our first set of of solutions family which is going to be the Dell Technologies manufacturing edge solutions, the first one that's gonna be launching as a reference architecture with PTC um thing works on top of what we're also proud to be announcing this week, which is our apex private cloud offering. So this is the first example of of of a partnership with an O. T. Provider on top of apex private cloud so that we can bring in as a service platform offering to the Enterprise edge uh for manufacturers. And combined with one of the industry's leading oT software vendors of thing works. So that's one of the solutions were doing um we're also looking to launch a product which is we're taking our existing um streaming data platform from our unified storage team and taking that, which was once running in the data center out to edge these cases as well. And that allows us to be able to capture click stream data in manufacturing and other environments, buffer and cash that in a in an appliance and then be able to move that off to a data like for longer term analytics. While it's in that buffered state though we open provide a P. I. S. So that you can actually do real time influencing against those click stream data as it's flowing through the appliance on its way to the data lake for longer term analytics. So those are two key areas that we're gonna be focusing on from an edge perspective on the telecom side. Um we're really this is going to be a big year from us as we move towards creating a common end end five G platform from quarter Iran and then also start focusing on partnerships and ecosystems on top of that platform. Uh last week at Red hat summit we actually announced a reference architecture for red hat. Open shift on top of Dell technologies infrastructure servers and networking. And here at Dell technologies world. This week we're announcing a reference architecture with VM ware. So running VM ware telecom cloud platform. Also on top of Dell technologies. Power edge servers and power such as um so this allows us to create that foundation that open cloud native. These are container and virtual layers on top of our hard work to give that that cloud native disaggregated uh, network claim to be able to now run and build core edge and ran solutions on top of and you'll be hearing more about what we're doing in this space in the coming months. >>Nice. That's great. The open ran stuff is really exciting now, last question. So mobile world Congress, the biggest telco show is coming up in late june Yeah, still on. According to the G S M, a lot of people have tapped out um, and but the cube is planning to be there with a hybrid presence, both virtual and physical. We'll see um I wonder if there's anything you want to talk about just in terms of what's happening in telco telco transformation, you guys got any get any events coming up, what can you tell us? >>Yeah, so we took a close look at mobile world congress and and uh this has been a challenging year for everybody. Um you know, Dell as well as many other vendors made the decision this year that we would actually not participate, but we look forward to participating uh with full gusto next year when it's back in a physical environment. Um So what we've decided to do is we are going to be having our own virtual launch event on june 9th. Um And in that event, the theme of that is going to be the modern ecosystem in the neighboring leveraging the power of open. Um So we'll be talking a little bit more about what we're doing from that open cloud, native network infrastructure and then also talk a little bit more about what Dell technologies looking to do to bring a broad ecosystem of technology vendors together and deliver that ecosystem platform for the telecom industry. So registration actually opens this week at Dell Technologies World. So if you go to Dell technologies dot com can register for the event. Um we're really excited to be talking to the telecom providers and also other hardware and software vendors that are in that space to see how we can work together to really drive this next generation of five G. >>That's awesome. I'll be looking for that and and look forward to collaborating with you on that, bringing your thought leadership and the cube community we would really love to to partner on that. Aaron, thanks so much for coming to the cube. Really exciting area and best of luck to you. >>Right. Thank you. I appreciate the time. >>All right. And thank you for watching everybody says Dave Volonte for the Cubes, continuous coverage of Del Tech World 2021. The virtual version will be right back right after this short break.