>>Okay, >>welcome to Accelerating next. Thank you so much for joining us today. We have a great program. We're gonna talk tech with experts, will be diving into the changing economics of our industry and how to think about the next phase of your digital transformation. Now. Very importantly, we're also going to talk about how to optimize workloads from edge to excess scale with full security and automation all coming to you as a service. And with me to kick things off as Neil Mcdonald, who's the GM of compute at HP NEAL. Always a pleasure. Great to have you on. >>It's great to see you dad >>now, of course, when we spoke a year ago, we had hoped by this time we'd be face to face. But here we are again, you know, this pandemic, It's obviously affected businesses and people in so many ways that we could never have imagined. But the reality is in reality, tech companies have literally saved the day. Let's start off, how is HPV contributing to helping your customers navigate through things that are so rapidly shifting in the marketplace, >>although it's nice to be speaking to you again and I look forward to being able to do this in person. At some >>point. The >>pandemic has really accelerated the need for transformation and businesses of all sizes. More than three quarters of C. I. O. S. Report that the crisis has forced them to accelerate their strategic agendas, organizations that were ready transforming or having to transform faster and organizations that weren't on that journey yet are having to rapidly develop and execute a plan to adapt to this new reality. Our customers are on this journey and they need a partner for not just the computer technology but also the expertise and economics that they need for that digital transformation. And for us this is all about unmatched optimization for workloads from the edge to the enterprise to extra scale With 360° security and the intelligent automation all available in that as a service experience. >>Well, you know, as you well know, it's a challenge to manage through any transformation, let alone having to set up remote workers overnight, securing them, re setting budget priorities. What are some of the barriers that you see customers are working hard to overcome? >>Simply put the organizations that we talk with our challenged in three areas. They need the financial capacity to actually execute a transformation. They need the access to the resource and the expertise needed to successfully deliver on a transformation. And they have to find the way to match their investments with the revenues for the new services that they're putting in place to service their customers in this environment. >>You know, we have a data partner E. T. R. Enterprise Technology Research and the spending data that we see from them is it's quite dramatic. I mean last year we saw a contraction of roughly 5% of in terms of I. T. Spending budgets etcetera. And this year we're seeing a pretty significant rebound. Maybe a 67% growth ranges is the prediction. The challenge we see his organizations have to they got to iterate on that. I call it the forced march to digital transformation and yet they also have to balance their investments. For example that the corporate headquarters which have kind of been neglected. Is there any help in sight for the customers that are trying to reduce their spending and also take advantage of their investment capacity? >>I think you're right. Many businesses are understandably reluctant to loosen the purse strings right now given all of the uncertainty. And often a digital transformation is viewed as a massive upfront investment that will pay off in the long term, and that can be a real challenge in an environment like this, but it doesn't need to be uh, we work through HP financial services to help our customers create the investment capacity to accelerate the transformation, often by leveraging assets they already have and helping them monetize them in order to free up the capacity to accelerate what's next for their infrastructure and for the business. >>So can we drill into that? I would wonder if you could add some specifics. I mean, how do you ensure a successful outcome? What are you really paying attention to as those sort of markers for success? >>Well, when you think about the journey that an organization is going through, it's tough to be able to run the business and transform at the same time and one of the constraints is having the people with enough bandwidth and enough expertise to be able to do both. So we're addressing that in two ways for our customers. One is by helping them confidently deploy new solutions which we have engineered, leveraging decades of expertise and experience in engineering to deliver those workload optimized portfolios that take the risk and the complexity out of assembling some of these solutions and give them a prepackaged validated supported solution intact that simplifies that work for them. But in other cases we can enhance our customers bandwidth by bringing them HP point Next experts with all of the capabilities we have to help them plan, deliver and support these I. T. Projects and transformations. Organizations can get on a faster track of modernization, getting greater insight and control as they do it. We're a trusted partner to get the most for a business that's on this journey in making these critical computer investments to underpin the transformations and whether that's planning to optimizing to save for retirement at the end of life. We can bring that expertise to bear to help amplify what our customers already have in house and help them accelerate and succeed in executing these transformations. >>Thank you for that. Let's let's talk about some of the other changes that customers see him in the cloud is obviously forced customers and their suppliers to really rethink how technology is packaged, how it's consumed, how it's priced. I mean there's no doubt in that. So take Green Lake, it's obviously leading example of a pay as you scale infrastructure model and it could be applied on prem or hybrid. Can you maybe give us a sense as to where you are today with Green Lake? >>Well, it's really exciting now from our first pay, as you go offering back in 2006, 15 years ago to the introduction of Green Lake. HBs really been paving the way on consumption-based services through innovation and partnership to help meet the exact needs of our customers. Hp Green Lake provides an experience, is the best of both worlds. A simple paper use technology model with the risk management of data that's under our customers direct control and it lets customers shift to everything as a service in order to free up capital and avoid that upfront expense that we talked about. They can do this anywhere at any scale or any size and really HP Greenlee because the cloud that comes to you >>like that. So we've touched a little bit on how customers can maybe overcome some of the barriers to transformation. What about the nature of transformations themselves? I mean historically there was a lot of lip service paid to digital and and there's a lot of complacency, frankly, but you know that covid wrecking ball meme that so well describes that if you're not a digital business, essentially you're gonna be out of business. So, you know, those things have evolved, how is HPV addressed the new requirements? >>Well, the new requirements are really about what customers are trying to achieve. And four very common themes that we see are enabling the productivity of remote workforce. That was never really part of the plan for many organizations being able to develop and deliver new apps and services in order to service customers in a different way or drive new revenue streams, being able to get insights from data so that in these tough times they can optimize their business more thoroughly. And then finally think about the efficiency of an agile hybrid private cloud infrastructure. Especially one that now has to integrate the edge. And we're really thrilled to be helping our customers accelerate all of these and more with HP computer. >>I want to double click on that remote workforce productivity. I mean again the surveys that we see, 46 of the ceo say that productivity improved with the whole work from home remote work trend. And on average those improvements were in the four range which is absolutely enormous. I mean when you think about that how does HP specifically help here? What do you guys do? >>Well every organization in the world has had to adapt to a different style of working and with more remote workers than they had before. And for many organizations that's going to become the new normal. Even post pandemic, many I. T. Shops are not well equipped for the infrastructure to provide that experience because if all your workers are remote the resiliency of that infrastructure, the latency is of that infrastructure, the reliability of are all incredibly important. So we provide comprehensive solutions expertise and as a service options that support that remote work through virtual desktop infrastructure or V. D. I. So that our customers can support that new normal of virtual engagements online everything across industries wherever they are. And that's just one example of many of the workload optimized solutions that we're providing for our customers is about taking out the guesswork and the uncertainty in delivering on these changes that they have to deploy as part of their transformation. And we can deliver that range of workload optimized solutions across all of these different use cases. Because of our broad range of innovation in compute platforms that span from the ruggedized edge to the data center all the way up to exa scale in HPC. >>I mean that's key if you're trying to affect the digital transformation and you don't have to fine tune, you know, basically build your own optimized solutions if I can buy that rather than having to build it and rely on your R and D. You know, that's key. What else is HP doing? You know, to deliver new apps, new services, you your microservices, containers, the whole developer trend, what's going on there? >>Well, that's really key because organizations are all seeking to evolve their mix of business and bring new services and new capabilities, new ways to reach their customers, new way to reach their employees, new ways to interact in their ecosystem all digitally. And that means that development and many organizations of course are embracing container technology to do that today. So with the HP container platform, our customers can realize that agility and efficiency that comes with container ization and use it to provide insight to their data more and more on that data of course is being machine generated or generated the edge or the near edge. And it can be a real challenge to manage that data holistically and not of silos and islands at H. P. S. Moral data fabric speeds the agility and access to data with a unified platform that can span across the data centers, multiple clouds and even the edge. And that enables data analytics that can create insights powering a data driven production oriented cloud enabled analytics and AI available anytime anywhere and at any scale. And it's really exciting to see the kind of impact that that can have in helping businesses optimize their operations in these challenging times. >>You gotta go where the data is and the data is distributed. It's decentralized. I I like the liberal vision and execution there so that all sounds good. But with digital transformation you're gonna see more compute in hybrid deployments. You mentioned edge. So the surface area, it's like the universe its its ever expanding. You mentioned, you know, remote work and work from home before. So I'm curious where are you investing your resources from a cyber security perspective? What can we count on from H P. E there >>Or you can count on continued leadership from hp as the world's most secure industry standard server portfolio. We provide an enhanced and holistic 360° view to security that begins in the manufacturing supply chain and concludes with a safeguarded end of life Decommissioning. And of course we've long set the bar for security with our work on silicon root of trust and we're extending that to the application tier. But in addition to the security customers that are building this modern Khyber or private cloud, including the integration of the Edge need other elements to they need an intelligent software defined control plane so that they can automate their compute fleets from all the way at the edge to the core. And while scale and automation enable efficiency, all private cloud infrastructures are competing with Web scale economics and that's why we're democratizing web scale technologies like Pensando to bring web scale economics and web scale architecture to the private cloud. Our partners are so important in helping us serve our customers needs. >>Yeah. I mean H. P. Is really up to its ecosystem game since the middle of last decade when when you guys reorganized and it became even more partner friendly. So maybe give us a preview of what's coming next in that regard from today's event. >>Well, they were really excited to have HP. Ceo, Antonio Neri speaking with Pat Gelsinger's from Intel and later lisa su from A. M. D. And later I'll have the chance to catch up with john Chambers, the founder and Ceo of J. C. Two ventures to discuss the state of the market today. >>Yeah, I'm jealous. You got, yeah, that's a good interviews coming up, NEal, thanks so much for joining us today on the virtual cube. You've really shared a lot of great insight how HP is is partner with customers. It's, it's always great to catch up with you. Hopefully we can do so face to face, you know, sooner rather than later. >>I look forward to that. And you know, no doubt our world has changed and we're here to help our customers and partners with the technology, the expertise and the economics they need For these digital transformations. And we're going to bring them unmatched workload optimization from the edge to exa scale with that 360° security with the intelligent automation. And we're gonna deliver it all as an as a service experience. We're really excited to be helping our customers accelerate what's next for their businesses. And it's been really great talking with you today about that day. Thanks for having me >>very welcome. It's been super Neil and I actually, you know, I had the opportunity to speak with some of your customers about their digital transformation and the role of that HPV plays there. So let's dive right in. >>Yeah. Mm.

>> from the Silicon Angle Media Office in Boston, Massachusetts. It's the cue now Here's your host Day Volonte. >> Hello, everyone, this is David lot. They fresh fresh off the red eye from VM World 2019. And what I wanted to do was share with you some analysis that I've done with our friends at E. T. R. Enterprise Technology Research. We've begun introducing you to some of their data. They have this awesome database 4500 panel, a panel of 4500 end users end customers, and they periodically go out and do spending surveys. They've given me access to that spending data and what I wanted to do because because you had a number of companies announced this this quarter, I wanted to do a storage drill down so pure. Announced in late July, Del just announced yesterday late August. Netapp was mid August. HP was last week again late August, and IBM was mid July. So you have all these companies, some of which are pure plays like pure netapp. Others of you know, big systems companies on DSO. But nonetheless, I wanted to squint through the data and share with you the storage spending snapshot for the second half of 2019. So let's start with the macro. >> What you heard on the conference calls was some concern about the economy. There's no question that the tariffs are on people's minds, particularly those with large exposure exposure in China. I mean, Del obviously sells a lot of PCs in China, so they're very much concerned about that. IBM does a lot of business there, pure, really. 70% appears business roughly is North America, so they're not as exposed so But the macro is probably looks like about 2% GDP growth for the quarter i. D. C. Has the overall tech market growing at two ex GDP. Interestingly, a Gartner analyst told me in May on the Cube that there is no correlation between GDP and I t spend, which surprised me. Some people disagree with that, but But that surprised me. But nonetheless, we we still look at GDP and look at that ratio. Sometimes the other macro is component costs for years. For the storage business the last several years, NAND pricing has been a headwind. Supply has been down, it's kept prices up. It has kept all flash arrays more expensive relative to some of the spinning disc spread the brethren something that we thought would attenuate sooner. It finally has. Nan pricing is now a tailwind, so prices air coming down. What that does is it opens up new workloads that we're really kind of the domain of spinning disk before big data kind of workloads is an example. Not exclusively big data, but it just opens up more workloads for storage companies, particularly Flash Cos The other big macro we're seeing is people shifting to subscription models. They want to bring that cloud like model to the data wherever two lives on Prem in ah, hybrid environment in a public cloud and company storage companies trying to be that that data management plane across clouds, whether on prime it. And that's a That's a big deal for a lot of these companies. I'll talk a little bit more about that, so you're seeing this vision of a massively parallel, scalable distributed system play out >> where >> data stays where it lives. Edge on Prem Public Cloud and storage is really a key part of that. Obviously, that's where the data lives, but you're not seeing data move across clouds so much. What you are seeing is metadata, move and compute. Move to the data so that type of architecture is being set up. It's supported by architecture's, not the least of which are all flash, and so I want to get into it. >> Now I want to share with you some data on this slide. If you wouldn't mind bringing it up. Alex on spending momentum. So the title size spending moment of pure leads, the storage packs and what this shows is the vendor on the left hand side. And it essentially looks at the breakdown of the spending survey where e t r ask the buyers of the different companies products. What percent of the spending is going to go toward replacing? They're gonna replace the vendor. Are they gonna decrease? Spend. That's the bright red is replace. The sort of pinkish is decreased, the spending. The gray is flat. The sort of evergreen forest green is increase in the lime. Green is ad, so if you take the lime green in the forest, green ad and the grow on you subtract the rest. You get the net score, so the higher the net score, the better. you can see here that pure storage has the highest net score by far 48%. I'll show you some data later. That correlates to that when we pull out some of the data from the income statements. >> So this is Ah, the >> July 2019 spending intention surveys specifically asking relative to the second half what the spending intentions are. So this looks good for pure on again. I'll show you Cem, Cem Cem Income State income statement data that really affirms this Hewlett Packard Enterprise actually was pretty strong in the spending survey. Particularly nimble is growing HP Overall, the storage business was was down a little bit, I think, three points, but nimble was up 28%. So you're seeing some spending activity there. Netapp did not have a great quarter. They were down substantially. I'll show you that in a minute. On dhe, it looks like they've got some work to do. Deli M. C. I had a flat quarter. Dell has a such a huge install base. They're everywhere on DSO. Everybody wants a piece of their pie. Del. After the merger of the acquisition of the emcee, their storage share declined. They then bounce back. They had a much, much stronger year last year, and now it's sort of a dogfight with the rest. IBM IBM is in a major cycle shift. IBM storage businesses is heavily tied to its mainframe businesses. Mainframe business was way, way down, its overall systems. Business was down, even though power was up a little bit. But the mainframe is what drives the systems business, and it drags along a lot of storage. IBM has got a new mainframe announcement that it's got to get out. It's got a new high end storage announcement that it's got to get out, and it's really relying on that. So you can see here from the E T. R data, you know, pure way out ahead of the pack continues to gain share about over 1000 respondents to this. So a lot of shared accounts by shared accounts mean the number of accounts that that actually have some combination of multiple storage vendors. And so they were able to answer this 1068 respondents pure the clear winner here. Now let's put this into context. So the next slide I want to show you some of the key performance indicators from the June quarter off the income statements. >> So again you see, I get the vendor. The revenue for the quarter of the year to year growth for that quarter relative to last year. The gross margin in the free cash flow, just some of the key performance indicators that I'd like to look at. So look at pure Let's go, Let's go to the third column Look at growth pure 28% growth. Del flat 0% for this is just for storage. There's a storage growth. NETAPP down 16% end up in a bad quarter, HP down 3%. IBM down 21% Do due to the cycle that I discussed, You see the revenue, um, pure, growing very, very fast. But you know, from a small base or at 396 million versus compared that to Dell's 4.2 billion net APs 1,000,000,000 plus H p e. Almost a billion in IBM not nearly as large. And then look at the gross margin line. Pure is the industry's leading gross margin. It's just slightly above 69%. Dell is a blended that Asterix is a blended gross margin, so it includes PCs, servers, service's of V M wear, everything and, of course, storage. So now, when dehl was a public company before it went private, it's gross. Margins were in the high teens. So Del is in gross margin heaven with with both E, M C and V M wear now as part of its portfolio NetApp high gross margins of 67%. But that gross margin is largely driven by its gross margins from software and maintenance. And so that's a screen considerable contributor. Their product gross margins air in the mid fifties, kind of where I think E. M. C. Probably is these days. And when the emcee was a public company, it's gross. Margins were in the mid sixties, but then, as it was before, went private. I think it was dipping into the high fifties as I recall you CHP again, that's a blended gross margin, just roughly around 34%. I don't have as much visibility on their their storage gross margins. I would I would say they are below, in my view, what DMC and net out well below what Netapp would be on then IBM. That's again blended gross margin includes hardware. Software service is 47.4% probably half or more of IBM businesses. Professional service is on. IBM has, of course, a large software business as well. So and then the free cash flow you can see pure crushing it from the standpoint of of gaining share, I mean way, way ahead of the other market players, but only 14 million in free cash flow. So coming from a much, much smaller base, however pure, is purely focused on storage. So there are Andy. All their R and D is going into that storage space. DEL. Free cash flow very large. 3.4 billion that again is across the entire company. Net App. You can see 278 million h p e 648 million great quarter for HP from a free cash flow standpoint, I think year to date they're probably 838 140 million. So big Big quarter. For them. An IBM A 2.4 billion again. Dell, HP, IBM. That's across the company, as is the gross margin. So the the spending data from E. T. R. Really shows us that pure, strong Aziz showed you that very high net score and the intentions look strong, so I would suspect pure is going to continue to lead in the market share game. I don't see that changing. Certainly there's no evidence in the data. I think I think everybody else is in a sort of a dogfight del holding firm, you know, 0%. You'd like to see a little bit of growth out of that, but I think Del is actually, you know, Dell's key metric is, Are we growing faster than the market? That's that's they're sort of a primary criterion in metric for Dell is to grow faster than the overall market because that means you're growing some share. I think Del is comfortable with that. Della's gross margins actually were helped this this quarter by the fact that Dell server business was down 12%. There was a higher storage mix, so it propped up the margin a little bit. But again, generally speaking, it looks like pure is the market share winner here, but much, much smaller than the other guys. HB limbo very strong, and it shows up in the survey data from E T. R. And an IBM just needs to get a new product cycle out. So we'll come back. >> We'll take a look at this in in in in January and see how you know what it looked like and will continue to fall. Obviously, the income statement and the public reporting pure accelerate is coming up next month. Justin in mid September. I have no doubt, you know, pure has been first in a lot of different areas, right? They were first really all flash Ray. The only all flash. You're a company that ever reached escape velocity. They were they in Nutanix for the first kind of new $1,000,000,000 companies that people said would never have a billion dollar company. Pure is a pure play storage company, you know? Well, over a billion. Now, you know, they were first with that evergreen model. They made a lot of play there. You know, the first with envy, Emmy and first with the Nvidia relationships with Superior likes to be first. I have no doubt and accelerate next month down in Austin, curious that they picked Austin in Dell's backyard. I have no doubt that they're gonna have some other firsts at that show. Cuba be there watching just off of the emerald, the other big player here. Of course, that I'm not showing his v. San visa is very, very strong. You know, the D. E. T. Our data shows that, and certainly the data from the income statement shows of'em were NSX, the networking products, their cell phone to find network in their self defined storage of the the the V San. Very, very strong Pat Girl singer on the Cube. We asked him last week, Thio, take us through. So if someone has big memories and one of them was sort of East san, Excuse me. One of them was V San, and the board meeting at with Joe Tucci was on the Vienna where board really put a lot of pressure on Pat's and you can't do this to me. It's funny. Emcee had the shackles on the M, where for a number of years, but the shackles are off and visa is very, very strong. So these are some of the things we're keeping an eye on. Thanks for watching everybody busy day Volante, Cuban sites. We'll see you next time

>> from the Silicon Angle Media Office in Boston, Massachusetts. It's the cue now Here's your host Day Volonte >> Hybrid. Welcome to this special edition of Cube Insights. This is the Cubes 10th year at VM World and leading up >> to V M World. >> We wanted to provide some data in some analysis to you all, and we're working with our partners at E. T. R Enterprise Technology Research. We first introduced you to them when IBM consummated the Red Hat acquisition and they provided some data. E T. R is affirmed. That does really detailed and fast ongoing data. They have, ah, large panel of end customers that they talked to about spending intentions, covering virtually every company in the Enterprise. It's it's great stuff. We reached out to them and came up with a number of questions that we wanted to address around Of'em World and VM where, so let me just start by showing you the questions that we ask them to help us with. And we did essentially what I call drill down survey. So we took their existing data sets. They just did a survey. They completed one in July on spending intentions for the second half of the year combined that, with all the time Siri's data that they had. So these are the questions that really are top of mind for I t decision makers in our community. First of all, what's the appetite for VM? We're spending the second half of 2019. We'll share some data on that. There's a second point is there's narrative out there that that containers are going to kill the M. Where, well, is that true? What is the day to say? How about Multi Cloud? It's the hot topic who was best positioned in multi cloud not only within the VM, where ecosystem but overall, obviously, the M, where has designs on multi cloud and is considered an early potential leader? How about NSX when VM wear but nice era? It changed the game on networking, changed their relationship with Cisco. How is Ennis Ex impacting spending on Cisco? Particularly, obviously a networking. The fifth question that we wanted to address is how is public cloud affecting the M where spend we know public cloud is growing faster than on Prem. What's the impact on the M wear? And then finally it was announced in the press that VM wear was going to acquire Pivotal. Why would that be all right? So let's get into it. The first thing that I want to address is the first question in spending intention. So this slide really shows the results of the second half survey. It's 600 >> and >> 93 respondents representing almost $300 billion in spending power. And so it's actually they were asked what you're spending intention intentions For the second half of 2019 you could see 41% of the respondents said they're going to spend Maur, and only 7% said they're gonna spend less. About 45% said >> they gonna hold firm >> small number 5%. So we're gonna add new and only a tiny infant testable. 2% said they were gonna replace the anywhere, so that's pretty good for an incumbent. And essentially it Sze holding serve and maybe doing a little bit. But even better than holding serve on. So So we saw. That is very positive. The next question that we want to address is the narrative of containers will kill the M, where we asked Pat Gelsinger about that on the Cube years ago, he said, Hey, we're gonna use this as a tail wind. We're gonna embrace containers. So the bottom line is there's very little evidence that containers are hurting the M where let alone killing the end. Where this is a portion of the survey, about 461 respondents on you can see that you know, the big big blip early on back in July 27. Dean. Big uptick in spending, and since then it's been relatively stable. But the important point here is the number of shared accounts that we went to essentially container customers and asked them about their VM wear. Spend. I say we eat. TR did. This is what they do on an ongoing basis, and you could see the number of shared accounts back in 17 was only eight. But as you go to the right hand side, the more recent surveys you're talking about 361 shared accounts of the data sample got much bigger. No evidence that the M where is being negatively impacted by containers kind of affirming the assertion of Pat Gelsinger. Let's talk about multi club. I have said that multi cloud to date has largely been a symptom of multi vendor It's cos acquiring Cloud Technologies for specific workloads. Its shadow i t. It's pockets of cloud activity versus a coherent strategy to manage across multiple clouds. True Hybrid Cloud. We're in the early stages, so the data here, in our view, shows that multi cloud really is jump ball. Um, Interestingly, however, Microsoft and Google is showing momentum. So with this slide shows is the cloud spending intentions. And we picked, you know, the top five players there, that air sort of angling around multi cloud ghoul with Antos. Clearly Microsoft coming from its large software estate of V M. Where, of course, which many believer are early favorite Red Hat with the IBM acquisition and Cisco. So what's interesting here is Google and Microsoft clearly have a lot of momentum kind of mind share in the market place, and not a lot of hard core spending going on and multi cloud. Everybody has multi clouds, but in terms of spending on specific products, does like Antos, for instance, from Google, designed for to support multi cloud. That's where in the early stages there, but you can see the sentiment that buyers have around multi cloud Google and Microsoft showing momentum. Interestingly, VM wear Red Hat and Cisco kind of, you know, bunched up as the big enterprise player. So that's why we call a jump. Oh, we see it is wide open. You know, Cisco might surprise some people, but it really doesn't surprise us. Cisco's coming at multi cloud from a position of networking strength of each of these players you know has their strength. Google with Antos Microsoft from its software state Veum, where clearly as the data center operating system red hat with open shift Now with IBM service is capability. And, of course, Sisko coming at it from networking and security. So so hard to conclude you know who wins out of this data but wanted to share that with you just in terms of what customers are thinking around multi cloud. Okay, big conversation in the community around networking generally specifically NSX. When VM wear beats us, go to the punch and acquired nice era. It stated that we want to do to networking in storage what we did for servers. Well, what did the end? Where do the servers they really co opted the marketplace changed the game and really became, you know, these central point of server management, and that's what they want to do with with networking. VM where is trying to de position Cisco as, ah, hardware vendor, Cisco is responding with its own software defined capabilities and is an interesting battle going on. What is the data show? This shows that network networking spend intentions for Cisco, the Red Line and the M Wear the Blue Line. You can see VM where NSX is sort of bouncing around but has very high mindshare. Where Cisco it's showing a holding firm, but a very gradual decline, I've said many times. Cisco very impressive company, 60 plus percent market share. They've held that for a long, long time, despite some of the successes that you've seen you by the likes of a risk juniper and F five et cetera. Cisco has held its dominant share, but nonetheless, it's clear that NSX is impacting Cisco's dominance. Certainly from a marketing standpoint, and you're seeing also, from a spending standpoint that NSX is really challenging Cisco. It'll be very interesting to see how that plays out over time. Okay, next question was okay. What about cloud. How is that affecting VM? Where we see the cloud numbers, we see the growth. What does that mean for VM wear? And you can see here this'll cloud customers of'em were spend about 718 respondents, and you can see the number of shared accounts in the sample is substantial. 3 94 3 79 for 69. It obviously changes by by the frequency that e t. R does these surveys and they do, you know, several times a year, as you can see, but, you know, large sample of shared accounts. And there's no question that Cloud customers continue to shift Maur. They're spending to the public cloud and potentially at the expense of the end, where you can see the gradual decline here and somewhat precipitous decline. VM. We're still very strong. Stock price is doing great, but there's a little question in our mind that long term VM where, despite cleaning up its cloud strategy with first the AWS Partnership and also now partnerships with Google and Microsoft, and of course, I'd be Emma's Well, they were first, but having public cloud partners nonetheless, we see that over time there's a riel tension there. That on Prem is not going to grab the market, share that growth that the cloud has. And that is a challenge for VM, where that we continue to watch finally pivotal. Why would a V M where acquire? Pivotal? Well, first of all, this is why Pivotal is not work. It doesn't have the momentum that it wants in the marketplace. You can see it's it's pretty steep decline over the last couple of years. On Dhe, it's precipitous. Ah, drop in stock price. Essentially, Del and the governance structure of Del Technologies, which course owns VM, wear a large portion of pivotal saying, Look, let's let's roll this back in. Let's give the stock price of boost. The stock went up 70 plus percent of the day that thou went down 800 points. And so this is why the M, where would buy Pivotal? You know, it's a forcing function, we believe, from from Del. It also makes sense, del in its family del technologies that has these software assets VM where is the mother ship of the Del software operation? So why not folded in personally? I think they should do it with some other software assets as well. Secureworks del Bumi, Arcee. All candidates to roll in potentially overtime to Vienna where at least portions of it, anyway. Okay, so let's summarize. What are the key takeaways? What's the appetite for Veum warrants in the second half of 2019? Pretty solid, we'd say. Well, containers kill VM where there's no evidence, certainly in the theater. But there are threats. Think about sass. How many SAS providers are actually running? VM where so, as SAS continues to grow in prominence of that is a potential blind spot for VM. Where that we're watching Who's best position in multi cloud? It's wide open. Microsoft look strong. Google clearly has some momentum. Cisco maybe surprises many, but I think it's not gonna be a winner. Take all we feel is, though there's a lot of opportunities, but number one is going to make the most money. And so it's a very important space that we're watching. House NSX impacting Cisco Spend. It's a battle, but NSX is clearly negatively pressuring, pressuring Cisco. How about Public Cloud? How is that affecting the M we're spend? We think it's slowly eating away at on print on Prem including the end, where I want to share with you a quote from one of the customers that E. T. R talked to its ahead of, ah, retail consumer organisation in North America. A long time I t practitioner says Veum wears everywhere that I've ever been. I've been a customer. Longtime VM were customer hair. She means it's the standard, but it's interesting situation to see what's their next step. How do they keep themselves relevant? I think they're always going to be a need for Veum where, especially because the ability to have the privacy of an extended network is key. However, with the cloud based environment and encrypted data, it's gonna be interesting to see how that all plays out how Veum wear deals with that approach. I think their next strategic steps are going to be crucial. I think that VM where has to be thinking long term. Okay, what do we do about Cloud? Remember VM, where early on tried to get into cloud and with its own public cloud option, became the cloud air. It failed. They got rid of it, cleaned up their cloud strategy. But why did VM where originally want to get into that business because they know that's world of growth is so yes, hybrid and multi cloud gives VM wear a lot of runway. The partnership with Amazon has a lot of momentum. I didn't share that data, but it's very clear that AWS uh Veum, where on AWS has strong momentum. And so that's certainly what the e t. Our data shows nonetheless, long term, you gotta ask what strategic moves will Michael Dell make to secure their position in the public cloud? Okay, lastly, whywould whywould vm will require pivotal. That's a duh. Okay, we gonna stated why So So that's the deal, thanks to our friends at E T. R. Really appreciate them sharing the data enterprise technology research If you wanted this, there's so many cuts on the data, it's it's unbelievable. You can cut it by large companies, small company industry applications and every company on the planet. You can compare companies together. It's really a powerful set of data, but also access tools that they have developed very, very nice, really modern version of survey panels. And so follow up with us. Follow up with them if you want more information and watch us at VM World will be covering these and many other issues that are tent year at VM World. All the key execs are gonna be on practitioners, customers, partners on, of course, analysts and the broader ecosystem technologists and John Ferrier stew Minuteman myself on the entire Cube team will be there to celebrate. So check it out, cube dot net and we'll see you next week. Thanks for watching.