>>From the Cube Studios in Palo Alto in Boston, bringing you data-driven insights from the cube and E T R. This is breaking analysis with Dave Valante. >>Making technology predictions in 2022 was tricky business, especially if you were projecting the performance of markets or identifying I P O prospects and making binary forecast on data AI and the macro spending climate and other related topics in enterprise tech 2022, of course was characterized by a seesaw economy where central banks were restructuring their balance sheets. The war on Ukraine fueled inflation supply chains were a mess. And the unintended consequences of of forced march to digital and the acceleration still being sorted out. Hello and welcome to this week's weekly on Cube Insights powered by E T R. In this breaking analysis, we continue our annual tradition of transparently grading last year's enterprise tech predictions. And you may or may not agree with our self grading system, but look, we're gonna give you the data and you can draw your own conclusions and tell you what, tell us what you think. >>All right, let's get right to it. So our first prediction was tech spending increases by 8% in 2022. And as we exited 2021 CIOs, they were optimistic about their digital transformation plans. You know, they rushed to make changes to their business and were eager to sharpen their focus and continue to iterate on their digital business models and plug the holes that they, the, in the learnings that they had. And so we predicted that 8% rise in enterprise tech spending, which looked pretty good until Ukraine and the Fed decided that, you know, had to rush and make up for lost time. We kind of nailed the momentum in the energy sector, but we can't give ourselves too much credit for that layup. And as of October, Gartner had it spending growing at just over 5%. I think it was 5.1%. So we're gonna take a C plus on this one and, and move on. >>Our next prediction was basically kind of a slow ground ball. The second base, if I have to be honest, but we felt it was important to highlight that security would remain front and center as the number one priority for organizations in 2022. As is our tradition, you know, we try to up the degree of difficulty by specifically identifying companies that are gonna benefit from these trends. So we highlighted some possible I P O candidates, which of course didn't pan out. S NQ was on our radar. The company had just had to do another raise and they recently took a valuation hit and it was a down round. They raised 196 million. So good chunk of cash, but, but not the i p O that we had predicted Aqua Securities focus on containers and cloud native. That was a trendy call and we thought maybe an M SS P or multiple managed security service providers like Arctic Wolf would I p o, but no way that was happening in the crummy market. >>Nonetheless, we think these types of companies, they're still faring well as the talent shortage in security remains really acute, particularly in the sort of mid-size and small businesses that often don't have a sock Lacework laid off 20% of its workforce in 2022. And CO C e o Dave Hatfield left the company. So that I p o didn't, didn't happen. It was probably too early for Lacework. Anyway, meanwhile you got Netscope, which we've cited as strong in the E T R data as particularly in the emerging technology survey. And then, you know, I lumia holding its own, you know, we never liked that 7 billion price tag that Okta paid for auth zero, but we loved the TAM expansion strategy to target developers beyond sort of Okta's enterprise strength. But we gotta take some points off of the failure thus far of, of Okta to really nail the integration and the go to market model with azero and build, you know, bring that into the, the, the core Okta. >>So the focus on endpoint security that was a winner in 2022 is CrowdStrike led that charge with others holding their own, not the least of which was Palo Alto Networks as it continued to expand beyond its core network security and firewall business, you know, through acquisition. So overall we're gonna give ourselves an A minus for this relatively easy call, but again, we had some specifics associated with it to make it a little tougher. And of course we're watching ve very closely this this coming year in 2023. The vendor consolidation trend. You know, according to a recent Palo Alto network survey with 1300 SecOps pros on average organizations have more than 30 tools to manage security tools. So this is a logical way to optimize cost consolidating vendors and consolidating redundant vendors. The E T R data shows that's clearly a trend that's on the upswing. >>Now moving on, a big theme of 2020 and 2021 of course was remote work and hybrid work and new ways to work and return to work. So we predicted in 2022 that hybrid work models would become the dominant protocol, which clearly is the case. We predicted that about 33% of the workforce would come back to the office in 2022 in September. The E T R data showed that figure was at 29%, but organizations expected that 32% would be in the office, you know, pretty much full-time by year end. That hasn't quite happened, but we were pretty close with the projection, so we're gonna take an A minus on this one. Now, supply chain disruption was another big theme that we felt would carry through 2022. And sure that sounds like another easy one, but as is our tradition, again we try to put some binary metrics around our predictions to put some meat in the bone, so to speak, and and allow us than you to say, okay, did it come true or not? >>So we had some data that we presented last year and supply chain issues impacting hardware spend. We said at the time, you can see this on the left hand side of this chart, the PC laptop demand would remain above pre covid levels, which would reverse a decade of year on year declines, which I think started in around 2011, 2012. Now, while demand is down this year pretty substantially relative to 2021, I D C has worldwide unit shipments for PCs at just over 300 million for 22. If you go back to 2019 and you're looking at around let's say 260 million units shipped globally, you know, roughly, so, you know, pretty good call there. Definitely much higher than pre covid levels. But so what you might be asking why the B, well, we projected that 30% of customers would replace security appliances with cloud-based services and that more than a third would replace their internal data center server and storage hardware with cloud services like 30 and 40% respectively. >>And we don't have explicit survey data on exactly these metrics, but anecdotally we see this happening in earnest. And we do have some data that we're showing here on cloud adoption from ET R'S October survey where the midpoint of workloads running in the cloud is around 34% and forecast, as you can see, to grow steadily over the next three years. So this, well look, this is not, we understand it's not a one-to-one correlation with our prediction, but it's a pretty good bet that we were right, but we gotta take some points off, we think for the lack of unequivocal proof. Cause again, we always strive to make our predictions in ways that can be measured as accurate or not. Is it binary? Did it happen, did it not? Kind of like an O K R and you know, we strive to provide data as proof and in this case it's a bit fuzzy. >>We have to admit that although we're pretty comfortable that the prediction was accurate. And look, when you make an hard forecast, sometimes you gotta pay the price. All right, next, we said in 2022 that the big four cloud players would generate 167 billion in IS and PaaS revenue combining for 38% market growth. And our current forecasts are shown here with a comparison to our January, 2022 figures. So coming into this year now where we are today, so currently we expect 162 billion in total revenue and a 33% growth rate. Still very healthy, but not on our mark. So we think a w s is gonna miss our predictions by about a billion dollars, not, you know, not bad for an 80 billion company. So they're not gonna hit that expectation though of getting really close to a hundred billion run rate. We thought they'd exit the year, you know, closer to, you know, 25 billion a quarter and we don't think they're gonna get there. >>Look, we pretty much nailed Azure even though our prediction W was was correct about g Google Cloud platform surpassing Alibaba, Alibaba, we way overestimated the performance of both of those companies. So we're gonna give ourselves a C plus here and we think, yeah, you might think it's a little bit harsh, we could argue for a B minus to the professor, but the misses on GCP and Alibaba we think warrant a a self penalty on this one. All right, let's move on to our prediction about Supercloud. We said it becomes a thing in 2022 and we think by many accounts it has, despite the naysayers, we're seeing clear evidence that the concept of a layer of value add that sits above and across clouds is taking shape. And on this slide we showed just some of the pickup in the industry. I mean one of the most interesting is CloudFlare, the biggest supercloud antagonist. >>Charles Fitzgerald even predicted that no vendor would ever use the term in their marketing. And that would be proof if that happened that Supercloud was a thing and he said it would never happen. Well CloudFlare has, and they launched their version of Supercloud at their developer week. Chris Miller of the register put out a Supercloud block diagram, something else that Charles Fitzgerald was, it was was pushing us for, which is rightly so, it was a good call on his part. And Chris Miller actually came up with one that's pretty good at David Linthicum also has produced a a a A block diagram, kind of similar, David uses the term metacloud and he uses the term supercloud kind of interchangeably to describe that trend. And so we we're aligned on that front. Brian Gracely has covered the concept on the popular cloud podcast. Berkeley launched the Sky computing initiative. >>You read through that white paper and many of the concepts highlighted in the Supercloud 3.0 community developed definition align with that. Walmart launched a platform with many of the supercloud salient attributes. So did Goldman Sachs, so did Capital One, so did nasdaq. So you know, sorry you can hate the term, but very clearly the evidence is gathering for the super cloud storm. We're gonna take an a plus on this one. Sorry, haters. Alright, let's talk about data mesh in our 21 predictions posts. We said that in the 2020s, 75% of large organizations are gonna re-architect their big data platforms. So kind of a decade long prediction. We don't like to do that always, but sometimes it's warranted. And because it was a longer term prediction, we, at the time in, in coming into 22 when we were evaluating our 21 predictions, we took a grade of incomplete because the sort of decade long or majority of the decade better part of the decade prediction. >>So last year, earlier this year, we said our number seven prediction was data mesh gains momentum in 22. But it's largely confined and narrow data problems with limited scope as you can see here with some of the key bullets. So there's a lot of discussion in the data community about data mesh and while there are an increasing number of examples, JP Morgan Chase, Intuit, H S P C, HelloFresh, and others that are completely rearchitecting parts of their data platform completely rearchitecting entire data platforms is non-trivial. There are organizational challenges, there're data, data ownership, debates, technical considerations, and in particular two of the four fundamental data mesh principles that the, the need for a self-service infrastructure and federated computational governance are challenging. Look, democratizing data and facilitating data sharing creates conflicts with regulatory requirements around data privacy. As such many organizations are being really selective with their data mesh implementations and hence our prediction of narrowing the scope of data mesh initiatives. >>I think that was right on J P M C is a good example of this, where you got a single group within a, within a division narrowly implementing the data mesh architecture. They're using a w s, they're using data lakes, they're using Amazon Glue, creating a catalog and a variety of other techniques to meet their objectives. They kind of automating data quality and it was pretty well thought out and interesting approach and I think it's gonna be made easier by some of the announcements that Amazon made at the recent, you know, reinvent, particularly trying to eliminate ET t l, better connections between Aurora and Redshift and, and, and better data sharing the data clean room. So a lot of that is gonna help. Of course, snowflake has been on this for a while now. Many other companies are facing, you know, limitations as we said here and this slide with their Hadoop data platforms. They need to do new, some new thinking around that to scale. HelloFresh is a really good example of this. Look, the bottom line is that organizations want to get more value from data and having a centralized, highly specialized teams that own the data problem, it's been a barrier and a blocker to success. The data mesh starts with organizational considerations as described in great detail by Ash Nair of Warner Brothers. So take a listen to this clip. >>Yeah, so when people think of Warner Brothers, you always think of like the movie studio, but we're more than that, right? I mean, you think of H B O, you think of t n t, you think of C N N. We have 30 plus brands in our portfolio and each have their own needs. So the, the idea of a data mesh really helps us because what we can do is we can federate access across the company so that, you know, CNN can work at their own pace. You know, when there's election season, they can ingest their own data and they don't have to, you know, bump up against, as an example, HBO if Game of Thrones is going on. >>So it's often the case that data mesh is in the eyes of the implementer. And while a company's implementation may not strictly adhere to Jamma Dani's vision of data mesh, and that's okay, the goal is to use data more effectively. And despite Gartner's attempts to deposition data mesh in favor of the somewhat confusing or frankly far more confusing data fabric concept that they stole from NetApp data mesh is taking hold in organizations globally today. So we're gonna take a B on this one. The prediction is shaping up the way we envision, but as we previously reported, it's gonna take some time. The better part of a decade in our view, new standards have to emerge to make this vision become reality and they'll come in the form of both open and de facto approaches. Okay, our eighth prediction last year focused on the face off between Snowflake and Databricks. >>And we realized this popular topic, and maybe one that's getting a little overplayed, but these are two companies that initially, you know, looked like they were shaping up as partners and they, by the way, they are still partnering in the field. But you go back a couple years ago, the idea of using an AW w s infrastructure, Databricks machine intelligence and applying that on top of Snowflake as a facile data warehouse, still very viable. But both of these companies, they have much larger ambitions. They got big total available markets to chase and large valuations that they have to justify. So what's happening is, as we've previously reported, each of these companies is moving toward the other firm's core domain and they're building out an ecosystem that'll be critical for their future. So as part of that effort, we said each is gonna become aggressive investors and maybe start doing some m and a and they have in various companies. >>And on this chart that we produced last year, we studied some of the companies that were targets and we've added some recent investments of both Snowflake and Databricks. As you can see, they've both, for example, invested in elation snowflake's, put money into Lacework, the Secur security firm, ThoughtSpot, which is trying to democratize data with ai. Collibra is a governance platform and you can see Databricks investments in data transformation with D B T labs, Matillion doing simplified business intelligence hunters. So that's, you know, they're security investment and so forth. So other than our thought that we'd see Databricks I p o last year, this prediction been pretty spot on. So we'll give ourselves an A on that one. Now observability has been a hot topic and we've been covering it for a while with our friends at E T R, particularly Eric Bradley. Our number nine prediction last year was basically that if you're not cloud native and observability, you are gonna be in big trouble. >>So everything guys gotta go cloud native. And that's clearly been the case. Splunk, the big player in the space has been transitioning to the cloud, hasn't always been pretty, as we reported, Datadog real momentum, the elk stack, that's open source model. You got new entrants that we've cited before, like observe, honeycomb, chaos search and others that we've, we've reported on, they're all born in the cloud. So we're gonna take another a on this one, admittedly, yeah, it's a re reasonably easy call, but you gotta have a few of those in the mix. Okay, our last prediction, our number 10 was around events. Something the cube knows a little bit about. We said that a new category of events would emerge as hybrid and that for the most part is happened. So that's gonna be the mainstay is what we said. That pure play virtual events are gonna give way to hi hybrid. >>And the narrative is that virtual only events are, you know, they're good for quick hits, but lousy replacements for in-person events. And you know that said, organizations of all shapes and sizes, they learn how to create better virtual content and support remote audiences during the pandemic. So when we set at pure play is gonna give way to hybrid, we said we, we i we implied or specific or specified that the physical event that v i p experience is going defined. That overall experience and those v i p events would create a little fomo, fear of, of missing out in a virtual component would overlay that serves an audience 10 x the size of the physical. We saw that really two really good examples. Red Hat Summit in Boston, small event, couple thousand people served tens of thousands, you know, online. Second was Google Cloud next v i p event in, in New York City. >>Everything else was, was, was, was virtual. You know, even examples of our prediction of metaverse like immersion have popped up and, and and, and you know, other companies are doing roadshow as we predicted like a lot of companies are doing it. You're seeing that as a major trend where organizations are going with their sales teams out into the regions and doing a little belly to belly action as opposed to the big giant event. That's a definitely a, a trend that we're seeing. So in reviewing this prediction, the grade we gave ourselves is, you know, maybe a bit unfair, it should be, you could argue for a higher grade, but the, but the organization still haven't figured it out. They have hybrid experiences but they generally do a really poor job of leveraging the afterglow and of event of an event. It still tends to be one and done, let's move on to the next event or the next city. >>Let the sales team pick up the pieces if they were paying attention. So because of that, we're only taking a B plus on this one. Okay, so that's the review of last year's predictions. You know, overall if you average out our grade on the 10 predictions that come out to a b plus, I dunno why we can't seem to get that elusive a, but we're gonna keep trying our friends at E T R and we are starting to look at the data for 2023 from the surveys and all the work that we've done on the cube and our, our analysis and we're gonna put together our predictions. We've had literally hundreds of inbounds from PR pros pitching us. We've got this huge thick folder that we've started to review with our yellow highlighter. And our plan is to review it this month, take a look at all the data, get some ideas from the inbounds and then the e t R of January surveys in the field. >>It's probably got a little over a thousand responses right now. You know, they'll get up to, you know, 1400 or so. And once we've digested all that, we're gonna go back and publish our predictions for 2023 sometime in January. So stay tuned for that. All right, we're gonna leave it there for today. You wanna thank Alex Myerson who's on production and he manages the podcast, Ken Schiffman as well out of our, our Boston studio. I gotta really heartfelt thank you to Kristen Martin and Cheryl Knight and their team. They helped get the word out on social and in our newsletters. Rob Ho is our editor in chief over at Silicon Angle who does some great editing for us. Thank you all. Remember all these podcasts are available or all these episodes are available is podcasts. Wherever you listen, just all you do Search Breaking analysis podcast, really getting some great traction there. Appreciate you guys subscribing. I published each week on wikibon.com, silicon angle.com or you can email me directly at david dot valante silicon angle.com or dm me Dante, or you can comment on my LinkedIn post. And please check out ETR AI for the very best survey data in the enterprise tech business. Some awesome stuff in there. This is Dante for the Cube Insights powered by etr. Thanks for watching and we'll see you next time on breaking analysis.

>>Hey everyone, welcome to this event, HPE Compute Security. I'm your host, Lisa Martin. Kevin Dee joins me next Senior director, future Surfer Architecture at hpe. Kevin, it's great to have you back on the program. >>Thanks, Lisa. I'm glad to be here. >>One of the topics that we're gonna unpack in this segment is, is all about cybersecurity. And if we think of how dramatically the landscape has changed in the last couple of years, I was looking at some numbers that H P V E had provided. Cybercrime will reach 10.5 trillion by 2025. It's a couple years away. The average total cost of a data breach is now over 4 million, 15% year over year crime growth predicted over the next five years. It's no longer if we get hit, it's when it's how often. What's the severity? Talk to me about the current situation with the cybersecurity landscape that you're seeing. >>Yeah, I mean the, the numbers you're talking about are just staggering and then that's exactly what we're seeing and that's exactly what we're hearing from our customers is just absolutely key. Customers have too much to lose. The, the dollar cost is just, like I said, staggering. And, and here at HP we know we have a huge part to play, but we also know that we need partnerships across the industry to solve these problems. So we have partnered with, with our, our various partners to deliver these Gen 11 products. Whether we're talking about partners like a M D or partners like our Nick vendors, storage card vendors. We know we can't solve the problem alone. And we know this, the issue is huge. And like you said, the numbers are staggering. So we're really, we're really partnering with, with all the right players to ensure we have a secure solution so we can stay ahead of the bad guys to try to limit the, the attacks on our customers. >>Right. Limit the damage. What are some of the things that you've seen particularly change in the last 18 months or so? Anything that you can share with us that's eye-opening, more eye-opening than some of the stats we already shared? >>Well, there, there's been a massive number of attacks just in the last 12 months, but I wouldn't really say it's so much changed because the amount of attacks has been increasing dramatically over the years for many, many, many years. It's just a very lucrative area for the bad guys, whether it's ransomware or stealing personal data, whatever it is, it's there. There's unfortunately a lot of money to be made into it, made from it, and a lot of money to be lost by the good guys, the good guys being our customers. So it's not so much that it's changed, it's just that it's even accelerating faster. So the real change is, it's accelerating even faster because it's becoming even more lucrative. So we have to stay ahead of these bad guys. One of the statistics of Microsoft operating environments, the number of tax in the last year, up 50% year over year, that's a huge acceleration and we've gotta stay ahead of that. We have to make sure our customers don't get impacted to the level that these, these staggering number of attacks are. The, the bad guys are out there. We've gotta protect, protect our customers from the bad guys. >>Absolutely. The acceleration that you talked about is, it's, it's kind of frightening. It's very eye-opening. We do know that security, you know, we've talked about it for so long as a, as a a C-suite priority, a board level priority. We know that as some of the data that HPE e also sent over organizations are risking are, are listing cyber risks as a top five concern in their organization. IT budgets spend is going up where security is concerned. And so security security's on everyone's mind. In fact, the cube did, I guess in the middle part of last, I did a series on this really focusing on cybersecurity as a board issue and they went into how companies are structuring security teams changing their assumptions about the right security model, offense versus defense. But security's gone beyond the board, it's top of mind and it's on, it's in an integral part of every conversation. So my question for you is, when you're talking to customers, what are some of the key challenges that they're saying, Kevin, these are some of the things the landscape is accelerating, we know it's a matter of time. What are some of those challenges and that they're key pain points that they're coming to you to help solve? >>Yeah, at the highest level it's simply that security is incredibly important to them. We talked about the numbers. There's so much money to be lost that what they come to us and say, is security's important for us? What can you do to protect us? What can you do to prevent us from being one of those statistics? So at a high level, that's kind of what we're seeing at a, with a little more detail. We know that there's customers doing digital transformations. We know that there's customers going hybrid cloud, they've got a lot of initiatives on their own. They've gotta spend a lot of time and a lot of bandwidth tackling things that are important to their business. They just don't have the bandwidth to worry about yet. Another thing which is security. So we are doing everything we can and partnering with everyone we can to help solve those problems for customers. >>Cuz we're hearing, hey, this is huge, this is too big of a risk. How do you protect us? And by the way, we only have limited bandwidth, so what can we do? What we can do is make them assured that that platform is secure, that we're, we are creating a foundation for a very secure platform and that we've worked with our partners to secure all the pieces. So yes, they still have to worry about security, but there's pieces that we've taken care of that they don't have to worry about and there's capabilities that we've provided that they can use and we've made that easy so they can build su secure solutions on top of it. >>What are some of the things when you're in customer conversations, Kevin, that you talk about with customers in terms of what makes HPE E'S approach to security really unique? >>Well, I think a big thing is security is part of our, our dna. It's part of everything we do. Whether we're designing our own asics for our bmc, the ilo ASIC ILO six used on Gen 11, or whether it's our firmware stack, the ILO firmware, our our system, UFI firmware, all those pieces in everything we do. We're thinking about security. When we're building products in our factory, we're thinking about security. When we're think designing our supply chain, we're thinking about security. When we make requirements on our suppliers, we're driving security to be a key part of those components. So security is in our D N a security's top of mind. Security is something we think about in everything we do. We have to think like the bad guys, what could the bad guy take advantage of? What could the bad guy exploit? So we try to think like them so that we can protect our customers. >>And so security is something that that really is pervasive across all of our development organizations, our supply chain organizations, our factories, and our partners. So that's what we think is unique about HPE is because security is so important and there's a whole lot of pieces of our reliance servers that we do ourselves that many others don't do themselves. And since we do it ourselves, we can make sure that security's in the design from the start, that those pieces work together in a secure manner. So we think that gives us a, an advantage from a security standpoint. >>Security is very much intention based at HPE e I was reading in some notes, and you just did a great job of talking about this, that fundamental security approach, security is fundamental to defend against threats that are increasingly complex through what you also call an uncompromising focus to state-of-the-art security and in in innovations built into your D N A. And then organizations can protect their infrastructure, their workloads, their data from the bad guys. Talk to us briefly in our final few minutes here, Kevin, about fundamental uncompromising protected the value in it for me as an HPE customer. >>Yeah, when we talk about fundamental, we're talking about the those fundamental technologies that are part of our platform. Things like we've integrated TPMS and sorted them down in our platforms. We now have platform certificates as a standard part of the platform. We have I dev id and probably most importantly, our platforms continue to support what we really believe was a groundbreaking technology, Silicon Root of trust and what that's able to do. We have millions of lines of firmware code in our platforms and with Silicon Root of trust, we can authenticate all of those lines of firmware. Whether we're talking about the the ILO six firmware, our U E I firmware, our C P L D in the system, there's other pieces of firmware. We authenticate all those to make sure that not a single line of code, not a single bit has been changed by a bad guy, even if the bad guy has physical access to the platform. >>So that silicon route of trust technology is making sure that when that system boots off and that hands off to the operating system and then eventually the customer's application stack that it's starting with a solid foundation, that it's starting with a system that hasn't been compromised. And then we build other things into that silicon root of trust, such as the ability to do the scans and the authentications at runtime, the ability to automatically recover if we detect something has been compromised, we can automatically update that compromised piece of firmware to a good piece before we've run it because we never want to run firmware that's been compromised. So that's all part of that Silicon Root of Trust solution and that's a fundamental piece of the platform. And then when we talk about uncompromising, what we're really talking about there is how we don't compromise security. >>And one of the ways we do that is through an extension of our Silicon Root of trust with a capability called S Spdm. And this is a technology that we saw the need for, we saw the need to authenticate our option cards and the firmware in those option cards. Silicon Root Prota, Silicon Root Trust protects against many attacks, but one piece it didn't do is verify the actual option card firmware and the option cards. So we knew to solve that problem we would have to partner with others in the industry, our nick vendors, our storage controller vendors, our G vendors. So we worked with industry standards bodies and those other partners to design a capability that allows us to authenticate all of those devices. And we worked with those vendors to get the support both in their side and in our platform side so that now Silicon Rivers and trust has been extended to where we protect and we trust those option cards as well. >>So that's when, when what we're talking about with Uncompromising and with with Protect, what we're talking about there is our capabilities around protecting against, for example, supply chain attacks. We have our, our trusted supply chain solution, which allows us to guarantee that our server, when it leaves our factory, what the server is, when it leaves our factory, will be what it is when it arrives at the customer. And if a bad guy does anything in that transition, the transit from our factory to the customer, they'll be able to detect that. So we enable certain capabilities by default capability called server configuration lock, which can ensure that nothing in the server exchange, whether it's firmware, hardware, configurations, swapping out processors, whatever it is, we'll detect if a bad guy did any of that and the customer will know it before they deploy the system. That gets enabled by default. >>We have an intrusion detection technology option when you use by the, the trusted supply chain that is included by default. That lets you know, did anybody open that system up, even if the system's not plugged in, did somebody take the hood off and potentially do something malicious to it? We also enable a capability called U EFI secure Boot, which can go authenticate some of the drivers that are located on the option card itself. Those kind of capabilities. Also ilo high security mode gets enabled by default. So all these things are enabled in the platform to ensure that if it's attacked going from our factory to the customer, it will be detected and the customer won't deploy a system that's been maliciously attacked. So that's got >>It, >>How we protect the customer through those capabilities. >>Outstanding. You mentioned partners, my last question for you, we've got about a minute left, Kevin is bring AMD into the conversation, where do they fit in this >>AMD's an absolutely crucial partner. No one company even HP can do it all themselves. There's a lot of partnerships, there's a lot of synergies working with amd. We've been working with AMD for almost 20 years since we delivered our first AM MD base ProLiant back in 2004 H HP ProLiant, DL 5 85. So we've been working with them a long time. We work with them years ahead of when a processor is announced, we benefit each other. We look at their designs and help them make their designs better. They let us know about their technology so we can take advantage of it in our designs. So they have a lot of security capabilities, like their memory encryption technologies, their a MD secure processor, their secure encrypted virtualization, which is an absolutely unique and breakthrough technology to protect virtual machines and hypervisor environments and protect them from malicious hypervisors. So they have some really great capabilities that they've built into their processor, and we also take advantage of the capabilities they have and ensure those are used in our solutions and in securing the platform. So a really such >>A great, great partnership. Great synergies there. Kevin, thank you so much for joining me on the program, talking about compute security, what HPE is doing to ensure that security is fundamental, that it is unpromised and that your customers are protected end to end. We appreciate your insights, we appreciate your time. >>Thank you very much, Lisa. >>We've just had a great conversation with Kevin Depu. Now I get to talk with David Chang, data center solutions marketing lead at a md. David, welcome to the program. >>Thank, thank you. And thank you for having me. >>So one of the hot topics of conversation that we can't avoid is security. Talk to me about some of the things that AMD is seeing from the customer's perspective, why security is so important for businesses across industries. >>Yeah, sure. Yeah. Security is, is top of mind for, for almost every, every customer I'm talking to right now. You know, there's several key market drivers and, and trends, you know, in, out there today that's really needing a better and innovative solution for, for security, right? So, you know, the high cost of data breaches, for example, will cost enterprises in downtime of, of the data center. And that time is time that you're not making money, right? And potentially even leading to your, to the loss of customer confidence in your, in your cust in your company's offerings. So there's real costs that you, you know, our customers are facing every day not being prepared and not having proper security measures set up in the data center. In fact, according to to one report, over 400 high-tech threats are being introduced every minute. So every day, numerous new threats are popping up and they're just, you know, the, you know, the bad guys are just getting more and more sophisticated. So you have to take, you know, measures today and you have to protect yourself, you know, end to end with solutions like what a AM MD and HPE has to offer. >>Yeah, you talked about some of the costs there. They're exorbitant. I've seen recent figures about the average, you know, cost of data breacher ransomware is, is close to, is over $4 million, the cost of, of brand reputation you brought up. That's a great point because nobody wants to be the next headline and security, I'm sure in your experiences. It's a board level conversation. It's, it's absolutely table stakes for every organization. Let's talk a little bit about some of the specific things now that A M D and HPE E are doing. I know that you have a really solid focus on building security features into the EPIC processors. Talk to me a little bit about that focus and some of the great things that you're doing there. >>Yeah, so, you know, we partner with H P E for a long time now. I think it's almost 20 years that we've been in business together. And, and you know, we, we help, you know, we, we work together design in security features even before the silicons even, you know, even born. So, you know, we have a great relationship with, with, with all our partners, including hpe and you know, HPE has, you know, an end really great end to end security story and AMD fits really well into that. You know, if you kind of think about how security all started, you know, in, in the data center, you, you've had strategies around encryption of the, you know, the data in, in flight, the network security, you know, you know, VPNs and, and, and security on the NS. And, and even on the, on the hard drives, you know, data that's at rest. >>You know, encryption has, you know, security has been sort of part of that strategy for a a long time and really for, you know, for ages, nobody really thought about the, the actual data in use, which is, you know, the, the information that's being passed from the C P U to the, the, the memory and, and even in virtualized environments to the, the, the virtual machines that, that everybody uses now. So, you know, for a long time nobody really thought about that app, you know, that third leg of, of encryption. And so a d comes in and says, Hey, you know, this is things that as, as the bad guys are getting more sophisticated, you, you have to start worrying about that, right? And, you know, for example, you know, you know, think, think people think about memory, you know, being sort of, you know, non-persistent and you know, when after, you know, after a certain time, the, the, you know, the, the data in the memory kind of goes away, right? >>But that's not true anymore because even in in memory data now, you know, there's a lot of memory modules that still can retain data up to 90 minutes even after p power loss. And with something as simple as compressed, compressed air or, or liquid nitrogen, you can actually freeze memory dams now long enough to extract the data from that memory module for up, you know, up, up to two or three hours, right? So lo more than enough time to read valuable data and, and, and even encryption keys off of that memory module. So our, our world's getting more complex and you know, more, the more data out there, the more insatiable need for compute and storage. You know, data management is becoming all, all the more important, you know, to keep all of that going and secure, you know, and, and creating security for those threats. It becomes more and more important. And, and again, especially in virtualized environments where, you know, like hyperconverged infrastructure or vir virtual desktop memories, it's really hard to keep up with all those different attacks, all those different attack surfaces. >>It sounds like what you were just talking about is what AMD has been able to do is identify yet another vulnerability Yes. Another attack surface in memory to be able to, to plug that hole for organizations that didn't, weren't able to do that before. >>Yeah. And, you know, and, and we kind of started out with that belief that security needed to be scalable and, and able to adapt to, to changing environments. So, you know, we, we came up with, you know, the, you know, the, the philosophy or the design philosophy that we're gonna continue to build on those security features generational generations and stay ahead of those evolving attacks. You know, great example is in, in the third gen, you know, epic C P U, that family that we had, we actually created this feature called S E V S N P, which stands for SECURENESS Paging. And it's really all around this, this new attack where, you know, your, the, the, you know, it's basically hypervisor based attacks where people are, you know, the bad actors are writing in to the memory and writing in basically bad data to corrupt the mem, you know, to corrupt the data in the memory. So s e V S and P is, was put in place to help, you know, secure that, you know, before that became a problem. And, you know, you heard in the news just recently that that becoming a more and more, more of a bigger issue. And the great news is that we had that feature built in, you know, before that became a big problem. >>And now you're on the fourth gen, those epic crosses talk of those epic processes. Talk to me a little bit about some of the innovations that are now in fourth gen. >>Yeah, so in fourth gen we actually added, you know, on top of that. So we've, we've got, you know, the sec the, the base of our, our, what we call infinity guard is, is all around the secure boot. The, you know, the, the, the, the secure root of trust that, you know, that we, we work with HPE on the, the strong memory encryption and the S E V, which is the secure encrypted virtualization. And so remember those s s and p, you know, incap capabilities that I talked about earlier. We've actually, in the fourth gen added two x the number of sev v s and P guests for even higher number of confidential VMs to support even more customers than before. Right? We've also added more guest protection from simultaneous multi threading or S M T side channel attacks. And, you know, while it's not officially part of Infinity Guard, we've actually added more APEC acceleration, which greatly benefits the security of those confidential VMs with the larger number of VCPUs, which basically means that you can build larger VMs and still be secured. And then lastly, we actually added even stronger a e s encryption. So we went from 128 bit to 256 bit, which is now military grade encryption on top of that. And, you know, and, and that's really, you know, the de facto crypto cryptography that is used for most of the applications for, you know, customers like the US federal government and, and all, you know, the, is really an essential element for memory security and the H B C applications. And I always say if it's good enough for the US government, it's good enough for you. >>Exactly. Well, it's got to be, talk a little bit about how AMD is doing this together with HPE a little bit about the partnership as we round out our conversation. >>Sure, absolutely. So security is only as strong as the layer below it, right? So, you know, that's why modern security must be built in rather than, than, you know, bolted on or, or, or, you know, added after the fact, right? So HPE and a MD actually developed this layered approach for protecting critical data together, right? Through our leadership and, and security features and innovations, we really deliver a set of hardware based features that, that help decrease potential attack surfaces. With, with that holistic approach that, you know, that safeguards the critical information across system, you know, the, the entire system lifecycle. And we provide the confidence of built-in silicon authentication on the world's most secure industry standard servers. And with a 360 degree approach that brings high availability to critical workloads while helping to defend, you know, against internal and external threats. So things like h hp, root of silicon root of trust with the trusted supply chain, which, you know, obviously AMD's part of that supply chain combined with AMD's Infinity guard technology really helps provide that end-to-end data protection in today's business. >>And that is so critical for businesses in every industry. As you mentioned, the attackers are getting more and more sophisticated, the vulnerabilities are increasing. The ability to have a pa, a partnership like H P E and a MD to deliver that end-to-end data protection is table stakes for businesses. David, thank you so much for joining me on the program, really walking us through what am MD is doing, the the fourth gen epic processors and how you're working together with HPE to really enable security to be successfully accomplished by businesses across industries. We appreciate your insights. >>Well, thank you again for having me, and we appreciate the partnership with hpe. >>Well, you wanna thank you for watching our special program HPE Compute Security. I do have a call to action for you. Go ahead and visit hpe com slash security slash compute. Thanks for watching.

>>Okay, welcome back to everyone. Cube's live coverage of VMware Explorer, 2022. I'm John fur, host of the cube. Two sets three days of live coverage. Dave Ante's here. Lisa Martin, Dave Nicholson, all host of the cube 12 interviews today, just we're with Rocklin and rolling, getting down to the end of the show. As we wind down and look back and look at the future. We've got Steven Jones. Here's the general manager of the VMware cloud on AWS. He's with Amazon web service. Steven Jones. Welcome to the cube. >>Thanks John. >>Welcome back cube alumni. I've been on many times going back to 2015. Yeah. >>Pleasure to be here. Great >>To see you again. Thanks for coming on. Obviously 10 years at AWS, what a ride is that's been, come on. That's fantastic. Tell me it's been crazy. >>Wow. Learned a lot of stuff along the way, right? I mean, we, we, we knew that there was a lot of opportunity, right? Customers wanting the agility and flexibility of, of the cloud and, and we, we still think it's early days, right? I mean, you'll hear Andy say that animals say that, but it really is. Right. If you look at even just the amount of spend that's being spent on, on clouds, it's in the billions, right. And the amount of, of spend in it is still in the trillion. So there's, there's a long way to go and customers are pushing us hard. Obviously >>It's been interesting a lot going on with VM. We're obviously around with them, obviously changing the strategy with their, their third generation and their narrative. Obviously the Broadcom thing is going on around them. And 10 years at abs, we've been, we've been, this'll be our ninth year, no 10th year at reinvent coming up for us. So, but it's 10 years of everything at Amazon, 10 years of S three, 10 years of C two. So if you look at the, the marks of time, now, the history books are starting to be written about Amazon web services. You know, it's about 10 years of full throttle cube hyperscaler in action. I mean, I'm talking about real growth, like >>Hardcore, for sure. I'll give you just one anecdote. So when I first joined, I think we had maybe two EC two instances back in the day and the maximum amount of memory you could conversion into one of these machines was I think 128 gig of Ram fast forward to today. You literally can get a machine with 24 terabytes of Ram just in insane amounts. Right? My, my son who's a gamer tells me he's got 16 gig in his, in his PC. You need to, he thinks that's a lot. >>Yeah. >>That's >>Excited about that. That's not even on his graphics card. I mean, he's, I know it's coming next. The GPU, I mean, just all >>The it's like, right? >>I mean, all the hardware innovation that you guys have done, I mean, look at every it's changed. Everyone's changed their strategy to copy AWS nitro, Dave ante. And I talk about this all the time, especially with James Hamilton and the team over there, Peter DeSantos, these guys have, are constantly going at the atoms and innovating at the, at the level. I mean that, that's how hardcore it is over there right now. I mean, and the advances on the Silicon graviton performance wise is crazy. I mean, so what does that enabling? So given that's continuing, you guys are continuing to do great work there on the CapEx side, we think that's enabling another set of new net new applications because we're starting to see new things emerge. We saw snowflake come on, customer of AWS refactor, the data warehouse, they call it a data cloud. You're starting to see Goldman Sachs. You see capital one, you see enterprise customers building on top of AWS and building a cloud business without spending the CapEx >>Is exactly right. And Ziggy mentioned graviton. So graviton is one of our fastest growing compute families now. And you know, you mentioned a couple of ISVs and partners of ours who are leaning in heavily on porting their own software. Every event Adam announced that we're working with SAP to, to help them port their HANA cloud, which is a, a database of service offering HANA flagship to graviton as well. So it's, it's definitely changing. >>And I think, you know, one of the, and we're gonna circle back to VMware is kind of a point to this. This conversation is that, is that if you look at the trends, right, okay. VMware really tried hard to do cloud and they had a good shot at it V cloud air, but it just, they didn't have the momentum that you guys had at AWS. We saw a lot, lot of other stragglers try to do cloud. They fell off the road, OpenStack, HP, and the list goes on and on. I don't wanna get into that, but the point is, as you guys become more powerful and you're open, right? So you have open ecosystem, you have people now coming back, taking advantage and refactoring and picking up where they left off. VMware was the one of the first companies that actually said, you know what pat Gelsinger said? And I was there, let's clear up the positioning. Let's go all in with AWS. That's >>Right >>At that time, 2016. >>Yeah. This was new for us, for >>Sure. And then now that's set the standard. Now everybody else is kind of doing it. Where is the VMware cloud relationship right now? How is that going out? State's worked. >>It's working well very well. It's I mean, we're celebrating, I think we made the announcement what, five years ago at this conference. Yeah. 2016. So, I mean, it's, it's been a tremendous ride. The best part are the customers who were coming and adopting and proving to us that our vision back then was the right vision. And, and, and what's been different. I think about this relationship. And it was new for us was that we, we purposely went after a jointly engineered solution. This wasn't a, we've got a, a customer or a partner that's just going to run and build something on us. This is something where we both bring muscle and we actually build a, a joint offering together. Talk about, about the main difference. >>Yeah. And that, and that's been working, but now here at this show, if you look at, if you squint through the multi-cloud thing, which is like just, I think positioning for, you know, what could happen in, in a post broad Broadcom world, the cloud native has traction they're Tansu where, where customers were leaning in. So their enterprise customer is what I call the classic. It, you know, mainstream enterprise, which you guys have been doing a lot of business with. They're now thinking, okay, I'm gonna go on continu, accelerate on, in the public cloud, but I'm gonna have hybrid on premise as well. You guys have that solution. Now they're gonna need cloud native. And we were speculating that VMware is probably not gonna be able to get 'em all of it. And, and that there's a lot more cloud native options as customers want more cloud native. How do you see that piece on Amazon side? Because there's a lot of benefits between the VMware cloud on AWS and the services that you guys have natively in your cloud. So we see customers really taking advantage of the AWS goodness, as well as expanding the cloud side at VMware cloud on AWS. >>Yeah. There's probably two ways I would look at this. Right? So, so one is the combination of VMware cloud on AWS. And then both native services just generally brings more options to customers. And so typically what we're seeing now is customers are just able to move much faster, especially as it comes to data center, evacuations, migrating all their assets, right? So it used to be that, and still some customers they're like, I I've gotta think through my entire portfolio of applications and decide what to refactor. And the only way I can move it to cloud is to actually refactor it into some net new application, more and more. We're actually seeing customers. They've got their assets. A lot of them are still on premises in a VMware state, right. They can move those super quick and then modernize those. And so I think where you'll see VMware and AWS very aligned is on this, this idea of migrate. Now you need to get the benefits of TCO and, and the agility that comes with being in the cloud and then modernize. We took a step further, which is, and I think VMware would agree here too, but all of the, the myriad of services, I think it's 200 plus now AWS native services are for use right alongside any that a customer wants to run in VMware. And so we have examples of customers that are doing just, >>And that's, that's how you guys see the native and, and VMware cloud integrating in. Yeah, that's, that's important because this, I mean, if I always joke about, you know, we've been here 12 years listening in the hallways and stuff, you know, on the bus to the event last night, walking the parties and whatnot, listening in the streets, there's kind of two conversations that rise right to the top. And I wanna get your reaction to this Steven, because this seems to be representative of this demographic here at VMware conference, there's conversations around ransomware and storage and D dub and recovery. It's all, a lot of those happen. Yeah. Clearly a big crowd here that care about, you know, Veeam and NetApp and storage and like making sure stuff's secure and air gapped. And a lot of that kind of, I call nerdy conversations and then the other one is, okay, I gotta get the cloud story. >>Right. So there's kind of the operational security. And then there's like, okay, what's my path to true cloud. I need to get this moving. I need to have better applications. My company is the application now not it serves some sort of back office function. Yeah. It's like, my company is completely using technology as its business. So the app is the business. So that means everything's technology driven, not departmental siloed. So there's a, that's what I call the true cloud conversation. How do you, how do you see that evolving because VMware customers are now going there. And I won't say, I won't say they're behind, but they're certainly going there faster than ever before. >>I think, I think, I mean, it's an interesting con it's an interesting way to put it and I, I would completely agree. I think it's, it's very clear that I think a lot of customer companies are actually being disrupted. Right. And they have to move fast and reinvent themselves. You said the app is now becoming the company. Right. I mean, if, if you look at where not too many years back, there were, you know, big companies like Netflix that were born in the cloud. Right. Airbnb they're disruptors. >>There's, that's the >>App, right? That's the app. Yeah. So I, I would exactly agree. And, and that's who other companies are competing with. And so they have to move quickly. You talked about some, some technology that allows them to do that, right? So this week we announced the general availability of a NetApp on tap solution. It's been available on AWS for some time as a fully managed FSX storage solution. But now customers can actually leverage it with, with VMC. Now, why is that important? Well, there's tens of thousands of customers running VMware. On-premises still, there's thousands of them that are actually using NetApp filers, right? NetApp, NetApp filers, and the same enterprise features like replication. D do you were talking about and Snapp and clone. Those types of things can be done. Now within the V VMware state on AWS, what's even better is they can actually move faster. So consider replicating all this, you know, petabytes and petabytes of data that are in these S from on-premises into AWS, this, this NetApp service, and then connected connecting that up to the BMC option. So it just allows customers much, much. >>You guys, you guys have always been customer focus. Every time I sat down with the Andy jazzy and then last year with Adam, same thing we worked back from, I know it's kind of a canned answer on some of the questions from media, but, but they do really care. I've had those conversations. You guys do work backwards from the customer, actually have documents called working backwards. But one of the things that I observed, we talked about here yesterday on the cube was the observations of reinvent versus say, VM world. Now explore is VM world's ecosystem was very partner-centric in the sense of the partners needed to rely on VMware. And the customers came here for both more of the partners, not so much VMware in the sense there wasn't as much, many, many announcements can compare that to the past, say eight years of reinvent, where there's so much Amazon action going on the partners, I won't say take as a second, has a backseat to Amazon, but the, the attendees go there generally for what's going on with AWS, because there's always new stuff coming out. >>And it's, it's amazing. But this year it starts to see that there's an overlap or, or change between like the VMware ecosystem. And now Amazon there's, a lot of our interviews are like, they're on both ecosystems. They're at Amazon's show they're here. So you start to see what I call the naturalization of partners. You guys are continuing to grow, and you'll probably still have thousands of announcements at the event this year, as you always do, but the partners are much more part of the AWS equation, not just we're leasing all these new services and, and oh, for sure. Look at us, look at Amazon. We're growing. Cause you guys were building out and look, the growth has been great. But now as you guys get to this next level, the partners are integral to the ecosystem. How do you look at that? How has Amazon thinking about that? I know there's been some, some, a lot of active reorgs around AWS around solving this problem or no solve the problem, addressing the need and this next level of growth. What's your reaction to >>That? Well, I mean, it's, it's a, it's a good point. So I have to be honest with you, John. I, I, I spent eight of my 10 years so far at AWS within the partner organization. So partners are very near and dear to my heart. We've got tens of thousands of partners and you are you're right. You're starting to see some overlap now between the VMware partner ecosystem and what we've built now in AWS and partners are big >>By the way, you sell out every reinvent. So it's, you have a lot of partners. I'm not suggesting that you, that there's no partner network there, but >>Partners are critical. I mean, absolutely naturally we want a relationship with a customer, but in order to scale the way we need to do to meet the, the needs of customers, we need partners. Right. We, we can't, we can't interact with every single customer as much as we would like to. Right. And so partners have long built teams and expertise that, that caters to even niche workloads or opportunity areas. And, and we love partners >>For that. Yeah. I know you guys do. And also we'll point out just to kind of give props to you guys on the partner side, you don't, you keep that top of the stack open on Amazon. You've done some stuff for end to end where customers want all Amazon, but for the most part, you let competition come in, even on, so you guys are definitely partner friendly. I'm just observing more the maturization of partners within the reinvent ecosystem, cuz we're there every year. I mean, it's, I mean, first of all, they're all buzzing. I mean, it's not like there's no action. There's a lot of customers there it's sold out as big numbers, but it just seems that the partners are much more integrated into the value proposition of at a AWS because of the, the rising tide and, and now their enablement, cuz now they're part of the, of the value proposition. Even more than ever before >>They, they really are. And they, and they're building a lot of capabilities and services on us. And so their customers are our customers. And like you say, it's rising tide, right. We, we all do better together. >>Okay. So let's talk about the VMware cloud here. What's the update here in terms of the show, what's your, what's your main focus cuz a lot of people here are doing, doing sessions. What's been some of the con content that you guys are producing here. >>Yeah. So the best part obviously is a always the customer conversations to partner conversations. So a, a lot of, a lot of sessions there, we did keynote yesterday in Ryan and I, where we talked about a number of announcements that are, I think pretty material now to the offering a joint announcement with NetApp yesterday as well around the storage solution I was talking about. And then some, some really good technical deep dives on how the offering works. Customers are still interested in like how, how do I take what I've got on premises and easily move into AWS and technology like HSX H CX solution with VMware makes it really easy without having to re IP applications. I mean, you know, it is super difficult sometimes to, to move an application. If you've got figure out where all the firewall rules are and re iPing those, those things source. But yeah, it's, it's been fantastic. >>A lot of migrations to the cloud too. A lot of cloud action, new cloud action. You guys have probably seen an uptake on services right on the native side. >>Yes. Yes. For sure. So maybe I just outlined some of the, some of the assets we made this week. So absolutely >>Go ahead. >>We, we announced a new instance family as a, a major workhorse underneath the VMware cloud offering called I, I, you mentioned nitro earlier, this is on, based on our latest generation of nitro, which allows us to offer as you know, bare metal instances, which is, which is what VMware actually VMware was our first partnership and customer that I would say actually drove us to really get Nira done and out the door. And we've continued to iterate on that. And so this I four, I instance, it's based on the, the latest Intel isolate processor with more than double the Ram double the compute, a whopping 75 gigabytes per second network. So it's a real powerhouse. The cool thing is that with the, with the NetApp storage solution that we, we discussed, we're now disaggregating the need to provision, compute and storage at the same time. It used to be, if you wanted to add more storage to your VSAN array, that was on a V VMware cloud. Yeah. You'd add another note. You might not need more compute for memory. You'd have to add another note. And so now customers can simply start adding chunks of storage. And so this opens up customers. I had a customer come to me yesterday and said, there's no reason for us not to move. Now. We were waiting for something that like this, that allowed us to move our data heavy workloads yeah. Into VMware cloud. It's >>Like, it's like the, the alignment. You mentioned alignment earlier. You know, I would say that VMware customers are lined up now almost perfectly with the hybrid story that's that's seamless or somewhat seems it's never truly seamless. But if you look at like what Deepak's doing with Kubernetes and open source, you, you guys have that there talking that big here, you got vs a eight vSphere, eight out it's all cloud native. So that's lined up with what you guys are doing on your services and the horsepower. They have their stuff, you have yours that works better together. So it seems like it's more lined up than ever before. What's your take on that? Do you agree? And, and if so, what folks watching here that are VMware customers, what's, what's the motivation now to go faster? >>Look, it is, it is absolutely lined up. We are, as, as I mentioned earlier, we are jointly engineering and developing this thing together. And so that includes not just the nuts and bolts underneath, but kind of the vision of where it's going. And so we're, we're collectively bringing in customer feedback. >>What is that vision real quick? >>So that vision has to actually help an under help meet even the most demanding customer workloads. Okay. So you've got customer workloads that are still locked in on premises. And why is that? Well, it used to be, there was big for data and migration, right? And the speed. And so we continue to iterate this and that again is a joint thing. Instead of say, VMware, just building on AWS, it really is a, a tight partnership. >>Yeah. The lift and shift is a, an easy thing to do. And, and, and by the way, that could be a hassle too. But I hear most people say the reason holding us back on the workloads is it's just a lot of work, a hassle making it easier is what they want. And you guys are doing that. >>We are doing that. Absolutely. And by the way, we've got not just engineering teams, but we've got customer support teams on both sides working together. We also have flexible commercial options, right? If a customer wants to buy from AWS because they've negotiated some kind of deal with us, they can do that. They wanna buy from VMware for a similar reason. They could buy from VMware. So are >>They in the marketplace? >>They are in the market. There, there are some things in the marketplace. So you talked about Tansu, there's a Tansu offering in the marketplace. So yes. Customers can >>Contract. Yeah. Marketplaces. I'm telling you that's very disruptive. I'm Billy bullish on the market AIOS marketplace. I think that's gonna be a transformative way. People have what they procure and fully agree, deploy and how, and channel relationships are gonna shift. I think that's gonna be a disruptive enabler to the partner equation and, and we haven't even seen it yet. We're gonna be up there in September for their inaugural event. I think it's a small group, but we're gonna be documenting that. So even final question for you, what's next for you? What's on the agenda. You got reinvent right around the corner. Your P ones are done. Right? I know. Assuming all that, I turn that general joke. That's an internal Amazon joke. FYI. You've got your plan. What's next for the world. Obviously they're gonna go this, take this, explore global. No matter what happens with Broadcom, this is gonna be a growth wave with hybrid. What's next for you and your team with AWS and VMware's relationship? >>Yeah. So both of us are hyper focused on adding additional options, both from a, an instance compute perspective. You know, VMware announced some, some, some additional offerings that we've got. We've got a fully complete, like, so they're, they announce things like VMware flex compute V VMware flex storage. You mentioned earlier, there was a conversation around ransomware. There's a new ransomware based offering. So we're hyper focused on rounding out, continuing to round out the offering and giving customers even more choice >>Real quick. Jonathan made me think about the ransomware we were at reinforce Steven Schmidtz now the CSO. Now you got a CSO. AJ's the CSO. You got a whole focus, huge emphasis on security right now. I know you always have, but now it's much more public. It's PO more positive, I think, than some of the other events I've been to. It's been more Lum and doom. What's the security tie in here with VMware. Can you share a little bit real quick on the security piece update around this relationship? >>Yeah, you bet. So as you know, security for us is job zero. Like you don't have anything of security. And so what are the things that, that we're excited about specifically with VMware is, is the latest offering that, that we put together and it's called this, this ransomware offering. And it's, it's a little bit different than other ransomware. I mean, a lot of people have ransomware offerings today, just >>Air gap. >>Right, right, right. Exactly. No, that's easy. No, this one is different. So on the back end, so within VMC, there's this, this option where CU we can be to be taking iterative snapshots of a customer environment. Now, if an event were to occur, right. And a customer is like, I have to know if I'm compromised, we can actually spin up super easy. This is cloud. Remember? Yeah. We can spin up a, a copy of this environment, throw a switch, pick a snapshot with NSX. So VMware NSX firewall it off and then use some custom tooling from VMware to actually see if it's been compromised or not. And then iterate through that until you actually know you're clean. And that's different than just tools that do maybe a >>Little bit of scam. We had Tom gills on yesterday and, and one of the things Dave ante had to leave is taking the sun to college is last one in the house and B nester now, but Tom Gill was on. We were talking about how good their security story is ware. And they really weren't showboating it as much as they could have here. I thought they could have done a better job, but this is an example of kind of them really leaning in with you guys. That's the key part of the relationship. >>Yeah, it really is. And I think this is something is materially different than what you can get elsewhere. And it's exciting for, >>Okay. Now the, the real question I want to know is what's your plans for AWS reinvent the blockbuster end of the year, Amazon surf show that gets bigger and bigger. I know it's still hybrid now, but it's looking be hybrid, but people are back in person last year. You guys were the first event really come back and still had massive numbers. AWS summit, New York at 19,000. I heard last week in Chicago, big numbers. So we're expecting reinvent to be pretty large this year. What are you, what are you gonna do there? What's your role there? >>We are expecting, well, I'll be there. I cover multiple businesses. Obviously. We're, we're planning on some additional announcements, obviously in the VMware space as well. And one of the other businesses I run is around SAP. And you should look for some things there as well. Yeah. Really looking forward to reinvent, except for the fact that it's right after Thanksgiving. But I think it >>Always ruins my, I always get an article out. I like, why are you we're having, we're having Thanksgiving dinner. I gotta write this article. It's gotta get Adam, Adam. Leski exclusive. We, every year we do a, a CEO sit down with Andy was the CEO and then now Adam. But yeah, it's a great event to me. I think it sets the tone. And it's gonna be very interesting to see the big clouds are coming to the big cloud. You guys, and you guys are now called hyperscalers. Now, multiple words. It's interesting. You guys are providing the CapEx goodness for everybody else now. And that relationship seems to be the new, the new industry standard of you guys provide the enablement and then everyone you get paid, cuz it's a service. A whole nother level of cloud is emerging in the partner network, GSI other companies. Yeah. >>Yeah. I mean we're really scaling. I mean we continue to iterate and release regions at a fast clip. We just announced support for VMware in Hong Kong. Yeah. So now we're up to 21 regions for this service, >>The sovereign clouds right around the corner. Let's we'll talk about that soon. Steven. Thanks for coming. I know you gotta go. Thank you for your valuable time. Coming in. Put Steven Jones. Who's the general manager of the VMware cloud on AWS business. Four AWS here inside the cube day. Three of cube coverage. I'm John furrier. Thanks for watching. We'll be right back.

(upbeat music) >> We're back in Boston, theCUBE's coverage of Re:Inforce 2022. My name is Dave Vellante. Dave Hatfield is here. He's the co-CEO of Lacework. Dave, great to see again. Hat. >> Thanks Dave. >> Do you still go by Hat? >> Hat is good for me. (Dave V laughing) >> All right cool. >> When you call me David, I'm in trouble for something. (Dave V Laughing) So just call me Hat for now. >> Yeah, like my mom, David Paul. >> Exactly. >> All right. So give us the update. I mean, you guys have been on a tear. Obviously the Techlash, >> Yep. >> I mean, a company like yours, that has raised so much money. You got to be careful. But still, I'm sure you're not taking the foot off the gas. What's the update? >> Yeah no. We were super focused on our mission. We want to de deliver a cloud security for everybody. Make it easier for developers and builders, to do their thing. And we're fortunate to be in a situation, where people are in the early innings of moving into the cloud, you know. So our customers, largely digital natives. And now increasingly cloud migrants, are recognizing that in order to build fast, you know, in the cloud, they need to have a different approach to security. And, you know, it used to be that you're either going be really secure or really fast. And we wanted to create a platform that allowed you to have both. >> Yeah. So when you first came to theCUBE, you described it. We are the first company. And at the time, I think you were the only company, thinking about security as a data problem. >> Yeah. >> Explain what that means. >> Well, when you move to the cloud, you know, there's literally a quintillion data sets, that are out there. And it's doubling every several days or whatever. And so it creates a massive problem, in that the attack surface grows. And different than when you're securing a data center or device, where you have a very fixed asset, and you kind of put things around it and you kind of know how to do it. When you move to the shared ephemeral massive scale environment, you can't write rules, and do security the way you used to do it, for a data centers and devices. And so the insight for us was, the risk was the data, the upside was the data, you know? And so if you can harness all of this data, ingest it, process it, contextualize it, in the context of creating a baseline of what normal is for a company. And then monitor it constantly in real time. Figure out, you know, identify abnormal activity. You can deliver a security posture for a company, unlike anything else before. Because it used to be, you'd write a rule. You have a known adversary or a bad guy that's out there, and you constantly try and keep up with them for a very specific attack service. But when you move to the cloud, the attack service is too broad. And so, the risk of the massive amount of data, is also the solution. Which is how do you harness it and use it with machine learning and AI, to solve these problems. >> So I feel like for CISOs, the cloud is now becoming the first line of defense. >> Yep. The CISOs is now the second line. Maybe the auditing is the third line. I don't know. >> Yeah. >> But, so how do you work with AWS? You mentioned, you know, quadrillion. We heard, I think it was Steven Schmidt, who talked about in his keynote. A quadrillion, you know, data points of a month or whatever it was. That's 15 zeros. Mind boggling. >> Yeah. >> How do you interact with AWS? You know, where's your data come from? Are you able to inspect that AWS data? Is it all your own kind of first party data? How does that all work? >> Yeah, so we love AWS. I mean we ultimately, we started out our company building our own service, you know, on AWS. We're the first cloud native built on the cloud, for the cloud, leveraging data and harnessing it. So AWS enabled us to do that. And partners like Snowflake and others, allowed us to do that. But we are a multi-cloud solution too. So we allow builders and customers, to be able to have choice. But we'd go deep with AWS and say, the shared responsibility model they came up with. With partners and themselves to say, all right, who ultimately owns security? Like where is the responsibility? And AWS does a great job on database storage, compute networking. The customer is responsible for the OS, the platform, the workloads, the applications, et cetera, and the data. And that's really where we come in. And kind of help customers secure their posture, across all of their cloud environments. And so we take a cloud trail data. We look at all of the network data. We look at configuration data. We look at rules based data and policies, that customers might have. Anything we can get our hands on, to be able to ingest into our machine learning models. And everybody knows, the more data you put into a machine learning model, the finer grain it's going to be. The more insightful and the more impactful it's going to be. So the really hard computer science problem that we set out to go do seven years ago, when we founded the company, was figure out a way to ingest, process, and contextualize mass amounts of data, from multiple streams. And the make sense out of it. And in the traditional way of protecting customers' environments, you know, you write a rule, and you have this linear sort of connection to alerts. And so you know, if you really want to tighten it down and be really secure, you have thousands of alerts per day. If you want to move really fast and create more risk and exposure, turn the dial the other way. And you know, we wanted to say, let's turn it all the way over, but maintain the amount of alerts, that really are only the ones that they need to go focus on. And so by using machine learning and artificial intelligence, and pulling all these different disparate data systems into making sense of them, we can take, you know, your alert volume from thousands per day, to one or two high fidelity critical alerts per day. And because we know the trail, because we're mapping it through our data graph, our polygraph data platform, the time to remediate a problem. So figure out the needle in the haystack. And the time to remediate is 90, 95% faster, than what you have to do on your own. So we want to work with AWS, and make it really easy for builders to use AWS services, and accelerate their consumption of them. So we were one of the first to really embrace Fargate and Graviton. We're embedded in Security Hub. We're, you know, embedded in all of the core platforms. We focus on competencies, you know. So, you know, we got container competency. We've got security and compliance competencies. And we really just want to continue to jointly invest with AWS. To deliver a great customer outcome and a really integrated seamless solution. >> I got a lot to unpack there. >> Okay. >> My first question is, what you just described, that needle in the haystack. You're essentially doing that in near real time? >> Yep. >> Or real time even, with using AI inferencing. >> Yeah. >> Describe it a little better. >> You're processing all of this data, you know, how do you do so efficiently? You know. And so we're the fastest. We do it in near real time for everything. And you know, compared to our competitors, that are doing, you know, some lightweight side scanning technology, and maybe they'll do a check or a scan once a day or twice a day. Well, the adversaries aren't sleeping, you know, over the other period of time. So you want to make it as near real time as you can. For certain applications, you know, you get it down into minutes. And ideally over time, you want to get it to actual real time. And so there's a number of different technologies that we're deploying, and that we're putting patents around. To be able to do as much data as you possibly can, as fast as you possibly can. But it varies on the application of the workload. >> And double click in the technology. >> Yeah. >> Like tell me more about it. What is it? Is it a purpose-built data store? >> Yeah. Is it a special engine? >> Yeah. There's two primary elements to it. The first part is the polygraph data platform. And this is this ingestion engine, the processing engine, you know, correlation engine. That has two way APIs, integrates into your workflows, ingests as much data as we possibly can, et cetera. And unifies all the data feeds that you've got. So you can actually correlate and provide context. And security now in the cloud, and certainly in the future, the real value is being able to create context and correlate data across the board. And when you're out buying a bunch of different companies, that have different architectures, that are all rules based engines, and trying to stitch them together, they don't talk to each other. And so the hard part first, that we wanted to go do, was build a cloud native platform, that was going to allow us to build applications, that set on top of it. And that, you know, handled a number of different security requirements. You know, behavior based threat detection, obviously is one of the first services that we offered, because we're correlating all this data, and we're creating a baseline, and we're figuring out what normal is. Okay, well, if your normal behavior is this. What's abnormal? So you can catch not only a known bad threat, you know, with rules, et cetera, that are embedded into our engines, but zero day threats and unknown unknowns. Which are the really scary stuff, when you're in the cloud. So, you know, we've got, you know, application, you know, for behavioral threat detection. You have vulnerability management, you know. Where you're just constantly figuring out, what vulnerabilities do I have across my development cycle and my run time cycle, that I need to be able to keep up on, and sort of patch and remediate, et cetera. And then compliance. And as you're pulling all these data points in, you want to be able to deliver compliance reports really efficiently. And the Biden Administration, you know, is issuing, you know, all of these, you know, new edicts for regulations. >> Sure. Obviously countries in, you know, in Europe. They have been way ahead of the US, in some of these regulations. And so they all point to a need for continuous monitoring of your cloud environment, to ensure that you're, you know, in real time, or near real time complying with the environments. And so being able to hit a button based on all of this data and, you know, deliver a compliance report for X regulation or Y regulation, saves a lot of time. But also ensures customers are secure. >> And you mentioned your multi-cloud, so you started on AWS. >> Yeah. >> My observation is that AWS isn't out trying to directly, I mean, they do some monetization of their security, >> Yep. >> But it's more like security here it is, you know. Use it. >> Yeah. >> It comes with the package. Whereas for instance, take Microsoft for example, I mean, they have a big security business. I mean, they show up in the spending surveys. >> Yeah. >> Like wow, off the charts. So sort of different philosophies there. But when you say you're Multicloud, you're saying, okay, you run on AWS. Obviously you run on Azure. You run on GCP as well. >> Yeah. Yep. >> We coin this term, Supercloud, Dave. It's it's like Multicloud 2.0. The idea is it's a layer above the clouds, that hides the underlying complexity. >> Yep. >> You mentioned Graviton. >> Yep. >> You worry about Graviton. Your customer don't, necessarily. >> We should be able to extract that. >> Right. But that's going to be different than what goes on Microsoft. With Microsoft primitives or Google primitives. Are you essentially building a Supercloud, that adds value. A layer, >> Yeah. >> on top of those Hyperscalers. >> Yeah. >> Or is it more, we're just going to run within each of those individual environments. >> Yeah. No we definitely want to build the Security OS, you know, that sort of goes across the Supercloud, as you talk about. >> Yeah. >> I would go back on one thing that you said, you know, if you listen to Andy or Adam now, talk about AWS services, and all the future growth that they have. I mean, security is job one. >> Yeah. Right, so AWS takes security incredibly seriously. They need to. You know, they want to be able to provide confidence to their customers, that they're going to be able to migrate over safely. So I think they do care deeply it. >> Oh, big time. >> And are delivering a number of services, to be able to do it for their customers,. Which is great. We want to enhance that, and provide Multicloud flexibility, deeper dives on Kubernetes and containers, and just want to stay ahead, and provide an option for companies. You know, when you're operating in AWS, to have better or deeper, more valuable, more impactful services to go layer on top. >> I see. >> And then provide the flexibility, like you said, of, hey look, I want to have a consistent security posture across all of my clouds. If I choose to use other clouds. And you don't, the schema are different on all three. You know, all of the protocols are different, et cetera. And so removing all of that complexity. I was just talking with the CISO at our event last night, we had like 300 people at this kind of cocktail event. Boston's pretty cool in the summertime. >> Yeah. Boston in July is great. >> It's pretty great. They're like going, look, we don't want to hire a Azure specialist, and a AWS specialist, and you know, a GCP specialist. We don't want to have somebody that is deep on just doing container security, or Kubernetes security. Like we want you to abstract all of that. Make sense of it. Stay above it. Continue to innovate. So we can actually do what we want to do. Which is, we want to build. We want to build fast. Like the whole point here, is to enable developers to do their job without restriction. And they intuitively want to have, and build secure applications. And, you know, because they recognize the importance of it. But if it slows them down. They're not going to do it. >> Right. >> And so we want to make that as seamless as possible, on top of AWS. So their developers feel confident. They can move more and more applications over. >> So to your point about AWS, I totally agree. I mean, security's job one. I guess the way I would say it is, from a monetization standpoint. >> Yeah. >> My sense is AWS, right now anyway, is saying we want the ecosystem, >> Yeah. >> to be able to monetize. >> Yeah. >> We're going to leave that meat on the bone for those guys. Whereas Microsoft is, they sometimes, they're certainly competitive with the ecosystem, sometimes. End point. >> Yeah. >> They compete with CrowdStrike. There's no question about it. >> Yeah. >> Are they competitive with you in some cases? Or they're not there yet. Are you different. >> Go talk to George, about what he thinks about CrowdStrike and I, versus Microsoft. (Dave V laughing) >> Well, yeah. (Dave H laughing) A good point in terms of the depth of capability. >> Yeah. >> But there's definitely opportunities for the ecosystem there as well. >> Yeah. But I think on certain parts of that, there are more, there's higher competitiveness, than less. I think in the cloud, you know, having flexibility and being open, is kind of core to the cloud's premise. And I think all three of the Hyperscalers, want to provide a choice for customers. >> Sure. >> And they want to provide flexibility. They obviously, want to monetize as much as they possibly can too. And I think they have varying strategies of those. And I do think AWS is the most open. And they're also the biggest. And I think that bodes well for what the marketplace really wants. You know, if you are a customer, and you want to go all in for everything, with one cloud. All right, well then maybe you use their security stack exclusively. But that's not the trend on where we're going. And we're talking about a $154 billion market, growing at, you know, 15% for you. It's a $360 billion market. And one of the most fragmented in tech. Customers do want to consolidate on platforms. >> Absolutely. >> If they can consolidate on CSPs, or they consolidate on the Supercloud, I'm going to steal that from you, with the super cloud. You know, to be able to, you know, have a consistent clarity posture, for all of your workloads, containers, Kubernetes, applications, across multiple clouds. That's what we think customers want. That's what we think customers need. There's opportunity for us to build a really big, iconic security business as well. >> I'm going to make you laugh. Because, so AWS doesn't like the term Supercloud. And the reason is, because it implies that they're the infrastructure, kind of commodity layer. And my response is, you'll appreciate this, is Pure Storage has 70% gross margin. >> Yeah. Yep. >> Right. Look at Intel. You've got Graviton. You control, you can have Intel, like gross margin. So maybe, your infrastructure. But it's not necessarily commodity, >> Yeah. >> But it leaves, to me, it leaves the ecosystem value. Companies like Lacework. >> Amazon offers 220 something services, for customers to make their lives easier. There's all kinds of ways, where they're actually focusing on delivering value, to their customers that, you know, is far from commodity and always will be. >> Right. >> I think when it comes to security, you're going to have, you're going to need security in your database. Your storage. Your network compute. They do all of that, you know, monetize all of that. But customers also want to, you know, be able to have a consistent security posture, across the Supercloud. You know, I mean, they don't have time. I think security practitioners, and security hiring in general, hasn't had unemployment for like seven or 10 years. It's the hardest place to find quality people. >> Right. >> And so our goal, is if we can up level and enable security practitioners, and DevSecOps teams, to be able to do their job more efficiently, it's a good thing for them. It's a win for them. And not having to be experts, on all of these different environments, that they're operating in. I think is really important. >> Here's the other thing about Supercloud. And I think you'll appreciate this. You know, Andreesen says, all companies are software companies. Well, all companies are becoming SAS and Cloud companies. >> Yeah. >> So you look at Capital One. What they're doing with on Snowflake. You know, Goldman what they're doing with AWS. Oracle by Cerner, you know that. So industries, incumbents, are building their own Superclouds. They don't want to deal with all this crap. >> Yeah. >> They want to add their own value. Their own tools. Their own software. And their own data. >> Yeah. >> And actually serve their specific vertical markets. >> Yeah. A hundred percent. And they also don't want tools, you know. >> Right. >> I think when you're in the security business. It's so fragmented, because you had to write a rule for everything, and they were super nuanced. When you move to a data driven approach, and you actually have a platform, that removes the need to actually have very nuanced, specific expertise across all these different. Because you're combining it into your baseline and understanding it. And so, customers want to move from, you know, one of the biggest banks in North America, has 550 different point solutions for security. Thousands of employees to go manage all of this. They would love to be able to consolidate around a few platforms, that integrate the data flows, so they can correlate value across it. And this platform piece is really what differentiates our approach. Is that we already have that built. And everybody else is sort of working backwards from Legacy approaches, or from a acquired companies. We built it natively from the ground up. Which we believe gives us an advantage for our customers. An advantage of time to market speed, efficacy, and a much lower cost. Because you can get rid of a bunch of point solutions in the process. >> You mentioned Devs. Did you, you know, that continuous experience across clouds. >> Yep. >> Do you have like the equivalent of a Super PAs layer, that is specific to your use case? Or are you kind of using, I mean, I know you use off the shelf tooling, >> Yep. >> you allow your developers to do so, but is, is the developer experience consistent across the clouds? That's really what I'm asking? >> Well, I think it is. I mean, I was talking to another CEO of a company, you know, on the floor here, and it's focusing on the build side. You know we focus on both the build and the run time. >> Right. >> And we were talking about, you know, how many different applications, or how fragmented the developer experience is, with all the different tools that they have. And it's phenomenal. I mean, like this, either through acquisition or by business unit. And developers, like to have choice. Like they don't like to be told what to do or be standardized, you know, by anybody. Especially some compliance organization or security organization. And so, it's hard for them to have a consistent experience, that they're using a bunch of different tools. And so, yeah. We want to be able to integrate into whatever workload, a workflow a customer uses, in their Dev cycle, and then provide consistent security on top of it. I mean, for our own company, you know, we got about a thousand people. And a lot of them are developers. We want to make it as consistent as we possibly can, so they can build code, to deliver security efficacy, and new applications and new tools for us. So I think where you can standardize and leverage a platform approach, it's always going to be better. But the reality is, especially in large existing companies. You know, they've got lots of different tools. And so you need to be able to set above it. Integrate with it and make it consistent. And security is one of those areas, where having a consistent view, a consistent posture, a consistent read, that you can report to the board, and know that your efficacy is there. Whatever environment you're in. Whatever cloud you're on. Is super, super critical. >> And in your swim lane, you're providing that consistency, >> Yep. >> for Devs. But you're right. You've got to worry about containers. You got to worry about the run time. You got to worry about the platform. The DevSecOps team is, you know, becoming the new line of defense, right? I mean, security experts. >> Absolutely. Well, we have one customer, that we just have been working with for four years ago. And it's, you know, a Fortune, a Global 2000 company. Bunch of different industries grew through acquisition, et cetera. And four years ago, their CTO said, we're moving to the cloud. Because we want to drive efficiency and agility, and better service offerings across the board. And so he has engineering. So he has Dev, you know. He has operations. And he has security teams. And so organizationally, I think that'll be the model, as companies do follow entries in to sort of, you know, quote. Become software companies and move on their digital journeys. Integrating the functions of DevSecOps organizationally, and then providing a platform, and enabling platform, that makes their jobs easier for each of those personas. >> Right. >> Is what we do. You want to enable companies to shift left. And if you can solve the problems in the code, on the front end, you know, before it gets out on the run time. You're going to solve, you know, a lot of issues that exist. Correlating the data, between what's happening in your runtime, and what's happening in your build time, and being able to fix it in near realtime. And integrate with those joint workflows. We think is the right answer. >> Yeah. >> Over the long haul. So it's a pretty exciting time. >> Yeah. Shift left, ops team shield right. Hat, great to see you again. >> Good to see you, Dave. >> Thanks so much for coming on theCUBE. >> Thanks a lot. >> All Right. Keep it right there. We'll be back. Re:Inforce 2022. You're watching theCUBE from Boston. (calming music)

>>The cube presents HPE discover 2022 brought to you by HPE. >>Hey everyone. Welcome to Las Vegas. It's the cube live on the show floor at HPE discover 2022, the first in person discover in three years, there are about 8,000 people here. The keynote was standing room only Lisa Martin here. I got a powerhouse group joining me for this keynote analysis. Dave ante joins us, Keith Townsend, John farrier, guys. Lot of news. It's all about HPE GreenLake. What were some of the things Dave, that stuck out to you? >>Well, I'll tell you right now, I gotta just quote, Antonio OIR said, Neri said four years ago, I declared that the enterprise of the future would be edge centric, cloud enabled and data driven. As a result, we launched HPE GreenLake. It kind of declared victory. Now I would say that what they're talking about and what they announced, I would consider table stakes. You know, I wish it started in 2014. I wish Antonio took over in 2015 instead of 2018, but I have to give credit, he's brought a focus and uh, and a, he think he's amped it up, John. I mean, if he's really prioritizing, uh, the, as a service they're going on in all in they're burning the boats, uh, and it's good. They got a lot of work to do. They >>Got a lot of work to do three years ago, John Antonio stood on this very stage saying we, and by 2022, we're gonna be delivering our entire portfolio as a service here we are with GreenLake. What I wanna get your thoughts on Keith's as well. >>Yeah. Well, first of all, I think that the crowded house was, uh, and a sign of people wanna come back together. So it's, to me, that was the first good news I saw, which was the HP community, their customer base. They're all here. They're glad to be back and forth. So it shows that they, their customer base it's resonating their value proposition of annual recurring revenue as a service plus the contract values with GreenLake are up. So this resonance with the customers, Dave, on the new operating model, that's a great check the box there. Um, I would say that I don't think HP's, as far along as Antonio had hopes, he'd be the pandemic was a setback. Um, but GreenLake is a real shining star. It's, uh, it's producing some green if you will money for them in terms of contracts, but they still got a lot more work to do because they're in a really interesting zone, Dave, because edge the cloud, although relevant and accurate where the, the shift is going, are they really there with, with the goods? And to me, I'm looking forward to seeing this discover if they have it or not. Certainly the messaging's good, but we're gonna UN UN unpeel that onion back and look at it. But >>Keith they're on the curve, right? At least they're on the cloud curve. >>They're absolutely on the curve. They have APIs, they have consistent developer experience. They announced the developer portal. They're developer centric. You can now consume your three par storage array services via a Terraform, uh, provider. They speak the language of cloud practitioners. You might struggle a little bit if I'm a small startup, you know, why would I look towards HPE? They kind of answered that a little bit. They had evil genius as a customer on stage, not a huge organization. A lot of the pushback they've been given is that if I may startup, I can simply go to a AWS portal, launch, a free trial service and run it. HPE kind of buried the lead. They now have, at least they announced preannounced the capability to, to trial GreenLake. So they're moving in the right direction. But you know, it's, it's it's table states. Well, >>Here's the thing. Here's the dynamic day that's going on. This is something that we've got got we're first of we've been covering HPE HP for now 11 years with the cube and look at Amazon's success and look at where Amazon's struggling. If you can say that they're having crossed overs to the enterprise, uh, cuz the enterprises are now just getting up to speed. You're seeing the rise of lack of talent. It certainly changing, uh, cyber security. You can't find talent. Kubernetes, good luck with that. Try to find someone. So you're seeing the enterprise aren't really geared up or staffed up for doing what I call, you know, high end cloud. So the rise of managed services is, is what we're seeing out there right now. You want Kubernetes clusters is a great set of managed services. You want other services? So that's the tell sign that the enterprises H HP's customers are now walking before they can run. They're crawling, they're now they're walking. So it's they have time to get in the Amazon lane in my opinion. Well, you >>Think about the hallmarks of cloud, obviously there's as a service, there's consumption based pricing. There's a developer, you know, friendliness, uh, there's ecosystem, which is really, really important. I think today, a lot of the ecosystem is partners, resellers and managed service providers. And to your point, Keith table stakes are things like single sign on being able to have, you know, a console being able to do it from a, from a URL to your point about startups is really interesting because that's one of the other hallmarks of cloud is you attract startups. And Lisa, we were at the snowflake summit and I asked the same question, can snowflake attract startups with their own super cloud. And what you saw was ecosystem partners developing in the snowflake cloud and monetizing. And that's something that we're waiting to see here. And I, I think they know >>You're suggesting way you suggesting that HP's gonna attract startups. >>Well, >>I, I think that's a sign if they can do that. That's a sign. And, and right now, I mean, you heard the example that Keith Keith gave. Uh, but, but not, not many. >>Yeah. I'm hoping that H I don't think HP is gonna ever attract startups, but I think the opportunity GreenLake affords the ecosystem is build clouds or purpose driven clouds around GreenLake. Mm-hmm <affirmative> whether it's the agreement with Equinix or all the cos and semi clouds, I think GreenLake gets most small CSPs, a leg up or 80% of the way there, where they can add that 20% of the IP and build services around GreenLake. And then that can attract the, the startup >>Or entrepreneurs. So the, the big question is, okay, where are these developers gonna come from? They could come from incumbents inside of companies. You know, the, the, the DevOps crowd from the enterprise, the really ops dev crowd. Right? I mean, yeah, don't you see that as a sort of a form of innovation startup, even though it's not a true startup. >>Yeah. Even though it's not, >>So Todd's making faces over there, we <laugh> >>Look, it, look it, they have >>Listen, if they don't, if they can't >>Do that, no, this is their focus is not startups. I agree with Keith on this one, they have to take care of business, home Depot. They have big customers and they have a lot of SMBs as well. They've got a great channel. H HP's got amazing infrastructure and, and client action going on. They gotta get the operating model, right job one as a service ARR, and then contract value and, and nail that with GreenLake. >>Who's their ideal customer profile. >>Their ideal is their install base. Look what Microsoft did with 365, they were going down. Their stock price was 26. At one point go to the, they went to the cloud 365, moved everything to the cloud and look at the success they're having. HP has the same kind of installed base. They gotta bring them along. They gotta get the operating model, right. And the developers that they're targeting are the ones inside the company and, or manage services that they're gonna go to the ecosystem for. That's where the cloud native comes in. That's where thing kind of comes together. So to me, I'm bullish on the operating model, but I'm skeptical that HP can get that cloud native developer. I haven't seen it yet. I'm looking for it. We're gonna look for it here. >>A key to that is going to be consistently. I, the, one of the things I'm looking for on the tech side, I, I hate to compare what HPE is doing to what VMware did with vCloud error years ago, but vCloud error on the outside looked >>Wonderful. Yes, >>It did. Once you tried to use it, it was just flaky underneath. And that's the part I'm looking to see customers pounding on it and saying, you know what API call after API I call, can I, uh, provision 10,000 pods a day? Does it scale down? Does it scale? And is it consistent? Is it >>Fragile Al roo she's co seasoned veteran? Uh, she was at V VMware cloud. She saw that movie. She gets a Mulligan, Dave. So I think her leadership is impressive. And I think she could bring a lot to the table to your point about don't make that same mistake and they gotta get this architecture, right. If they get the operating model right with GreenLake, they can double down on that and enable the developers that are driving the digital transformation. That to me is the, the key positions that they have to nail. And they do that. The rest is just fringe work. In my opinion, >>The reason why Alma was brought in, sorry, Lisa, it was, and then you gotta chime in here was to really build out that platform so that internal people at HPE can actually build value on top of it and the ecosystem that's her priority. >>We're gonna hear a lot from the ecosystem in the next couple of days, but I wanna get your perspective on, you've been following HPE a long time, all three of you. What are some of the things that you're hearing right now that are differentiators? We were just at Dell technologies. We talking about apex. We saw the big announcement they had with snowflake. We were at snowflake two weeks ago. I wanna get all three of your opinions on what are you seeing? Where is HP leading? >>I mean, HPE and Dell will, both with Dell, with apex are go, they're both gonna differentiate with their strengths. And, you know, for Dell, that's their breadth and their, their portfolio. And for, for HPE, that's their sort of open posture. I mean, John, you, you know this well, uh, that's their, their ecosystem, which I know has to evolve. And to me, their focus, you know, Antonio laid out some of the key differentiators. I, I, I think some of them were kind of, you know, pushing the envelope a little bit. Uh, but, but I think they're focus on as a service burning the, the, the boats telling wall street, this is our business. I think that's their differentiator. Is that they're, they're all in. >>Yeah. I, I think they, they try to highlight it by re announcing their private cloud service. I don't even know why they needed to announce that they have a private cloud. GreenLake is a cloud it's is a private cloud >>With block storage, hit disaster recovery. It's like good >>With like everything you get. But I think the, the key is, is that all of that is available today and you can get it in all kinds of frame of, of formats and, and frames specifically, if I'm a customer and I wanna get outta the data center and you, you know, Dave, we go back and forth about this all the time, and I wanna repatriate some workloads to Kubernetes on prem. I don't need to spend up another data center. I can go to Equinix, get GreenLake min IO, object storage on the back end, HPE lighthouse, all those services that I need for Kubernetes and repatriate my workloads without buying a new data center. And I get it as a service. I can get that Dave from HPE GreenLake, Dell apex is on the way. The >>Other thing they're differentiating with Aruba, that's something that Dell doesn't have. Yeah. And, and that is their edge play, I think is stronger than >>Of the others. Mean the, to me, the differentiator for HP is their, their history. Their channel's amazing. They got great Salesforce and they have serious customers and they have serious customers that have serious problems, uh, cyber security, uh, infrastructure, the security paradigm's changed. Uh, the deployment is changed how they deploy applications in their customer base. So they gotta step up to that challenge. And I think their differentiator is gonna be their size, their field and their ability to bring that operating model. And the hybrid model is a steady state. That's clear multi-cloud is just hybrids stitched together, but hybrid cloud, which is basically on premises and cloud to edge operating model is the number one thing that they need to nail. And if they nail that right, they will have a poll position that they could accelerate on. And again, I'm really gonna be watching how well they could enable cloud native developers, okay. To build modern agile applications while solving those serious problems with those serious customers. So again, I think hybrids spun in their direction. I'm not gonna say they got lucky, cuz they've always been on the hybrid bandwagon since we've been covering them. But I thought they'd be for a long day, but they're lucky to have hybrid. That's good for them. And I think do what Microsoft did convert their customers over and they do that, right? >>I think the key to that is gonna be ecosystem. Again, the developers need to see, especially the data piece, they talk about the cloud operating model. I think they're really moving that direction. The data piece to me is the weakest. Like they'll, they'll make claims that we can do anything that the cloud can do. You can't run snowflake, can't run data bricks, can't run Mongo Atlas. So they gotta figure out that data layer and that's optionality of, of data stores. And they don't have that today. >>Yeah. They, they, they have an announcement coming and I can't pre-announce it, but they're, they've, I've deemed them against it. They have the vision, Emeral data services, their data fabric multi-protocol access is a great start. They need the data network behind it. They need the ability to build a super cloud, a across multiple cloud providers, bringing some Google infos love inside of, uh, right next to your data. They have the hardware, they have the infrastructure, but they don't have the services. >>That's a key thing. I think one, you just brought up great point, Keith, and that is, is that at the end of the day, Dave, we're in a market now where agility and speed can be accomplished by startups or any company and HP's customers. Okay. Can move fast too. Okay. And so whoever can extend that value. If HPE can enable value creation for their customers, that's gonna be truly their, their task at hand, they got the channel, they got some leverage, but at the end of the day, the customers have alternatives now and they can move faster to get the value that they need to solve their serious problems. Uh, like cyber, like scalable infrastructure, like infrastructures code, like data ops, like AI ops, it's all here. And it's all coming really fast. Can GreenLake carry the day. And >>By the way, everything we just said about GreenLake in terms of table stakes and everything else, it applies for Dell. >>Yeah, absolutely. >>No question. It does guys. We have, and jam packed three days. We're gonna be talking with the ecosystem. We're gonna be talking with HPE leaders with customers. You're gonna hear all of these, uh, all this information unpacked over the next three days. We will be right back with our first guest for Dave ante, Keith Townson and John furrier. I'm Lisa Martin. Our first guest joins us momentarily.

>>mm >>Welcome back to HPD discovered 2021. The virtual version of the show. My name is Dave valentin. You're watching the cube we're here with David Harvey is the vice president of strategic alliances at VM. David. Good to see you. How you doing? >>I'm well thanks David yourself you've been good, >>yep. Doing great thank you. Hey you've heard the term follow the money, we're gonna follow the data. How >>about right >>So HP and wien you're celebrating a 10 year milestone in your alliance. That's a lot of good parties at at the HP discover shows. And uh of course we miss miss being face to face this year but next year we'll be back rocket but uh talk a little bit about what that milestone means to you. >>Yeah Thanks. Dave. And you're right. It is a milestone. I mean when you look at alliances or partnerships overall, it's crazy that you can maintain this depth of partnership is depth of relationship and this success for 10 years. I mean H. P. Was our number one alliance that we started working with when we started being X Number of years ago. Um and the reason for that was that we really came together from the very start with a philosophy about the approach we wanted to provide to the customer and also the synergy of technology. Um and 10 years is a long time. I mean how many alliances that you've seen in the industry Um that have managed to maintain for 10 years and we're stronger than ever as we come into this point and that's amazing. So from that point of view we're really excited for this 10 year milestone. We're really pleased that the investment from both sides as maintained and grown through that time period. Um And as you said it's a shame we're not doing this in person but this is a great event for us and that's why we're so proud to be top sponsor this year and supporting the charge for this government. >>Well, congratulations on that milestone immunity. So often when I talk to folks that are in your role, they'll complain and yeah, we do it. We have a lot of numbers, but not a lot of hard y and not a lot of fruitful partnerships and they'll do barney deals. I love you, you love me, you will do a press release but it's not driving and I happen to know that the HPV in relationship is very productive and I think, you know, one of the key moves when when HP split itself into it took its competitive data protective product that sold that off and then that just opened up a whole new opportunity for the relationships. It was a game changer. So but looking back, what do you think was the meaningful sort of investment that the alliance has really made together? >>Yeah, great question. And it's a really cheesy answer, but it's it's one of those very rare scenarios, where is the truth and his death? You know, the depth of discussion from the very start was really what built that foundation, We were the launch back up part of the three part, um, and every release team has done since then has had a key HP component to it. And more importantly, as you said as HP has evolved through that period, the divestiture and the overall movement of their portfolio. We've continued to listen to each other on what is important to both parties. But while that's great from the relationship and the alliance, the one thing that's never changed is the response of the customer to saying, not only have you integrated together on technology, you've unified your message, you provide a supply chain that is meaningful to my business by simplifying and providing value and you continue to evolve. You continue to adjust and move as you've gone through the time period in our needs have changed. I mean we started with servers, we worked with storage, we're with green labour? S moral like all across that portfolio. We found a way to continue to listen to each other and what's important and that's been killed. >>So what are the waves that you're you're surfing here, You put on the binoculars and look forward what are going to be the most important areas that you guys invest in and focus on in the future? >>Yeah. Great question. I mean we're focused on three things for the for the medium to short term here and looking at there is rapidly recovering your data. You know, the news at the moment is exploding related to issues companies are having, which is so unfortunate and recovering data quickly. It's an economic component is not just about the ability to do it fast, it's about the fact that the quicker you bring data back in this circumstance where you have to, the better it is for your bottom line. We also simplify that data protection. And the reason for that is that if you look at the diversity of the portfolio, HP has you want unification regardless of what products you're buying from HP, you want to make sure that you're working with solutions that work with all of those different parts of it. As I mentioned, service storage as moral Green Lake et cetera. And so that simplification of data protection is huge. And finally it's getting your data protection as a service. We've been working with Green Lake for a good number of years now and it's one of the fastest growing areas of our partnership. But if you bring those three things together, the customers are deciding that modern data protection needs, that they have, they're looking at the hybrid world, they're looking at all parts of the portfolio from the thought leaders, they work with specifically HP and they're wanting to make sure that they've got that unification moving forward and that whatever decisions they make with the infrastructure, the underlying protection of their data continues to be a core component that they can evolve with as they move their needs forward. >>We'll talk about that speedy recovery. There's so much in the news today, we're seeing all this, all this ransomware. I mean it's bringing down organizations, it's affecting supply chains all over the world very concerning. And there's two dimensions here. One is the speed to recover. We can all relate when, you know, when your laptop freezes like, oh, I gotta reboot and it takes five minutes and you're frustrated. Imagine your whole business, you know, it takes half a day to recover. That's huge. The other dimension, of course, is how much data you you lose in that recovery and you try to compress that RP. Oh right. Is as tight as possible. And that's the other sort of value that that customers look for from a combination of HPV and VM. So, but I want to ask you, so we're here at HP covering HP discover you can't talk about hB without getting a kool aid injection of Green Lake and as a service. And how are you guys sort of addressing those as a service needs for today's customers? >>Yeah, it's a great question. And by the way kudos, you can be a salesperson force with our pos and all those keywords. I love it. But what I would say overall is that when you look at the changing way customers are spending, um it depends on where they're structuring their financial desires, whether it's the Capex world, the optics world etcetera. And Green Led by its nature allows you to look at having the control of a physical component. But having the economic structure of in some respects pay as you go when you look at it in that component. And so you're avoiding that capital investment concern. But you're getting the power and the strength of the management component as well. And that's what's really important. I mean when you look at overall movement, Yes, you did a really interesting report recently and they're saying that spending on data center protection is going to grow 50% this year in 2021. Looking at improving that level of key component for their data centers as they go through that modernization. And so from that point of view, what we're seeing and this is applicable for HP more than anybody else. Is that the speed that they came out with the Green Lake a number of years ago allowed customers, especially the big enterprises, we're having a massive amount of success together, enabled them to decide the economic buying model that they wanted and to combine that with the best of breed service and management and control. So from our point of view, you know, that's something we've been investing within a long period of time now, not only on the solutions but also on how we go to market together. Our field team is working very closely with their field team within Green Lake to be there so that the customer can utilize it as a tool and not feel like they're having a different conversation because we're so baked in with the rest of the organization. So from our point of view, Green Lake is key to how things are moving forward and other things that the storage departments doing as well as they look at some of their new ways with their announcements we've, they've recently made with buying down on demand and new products they're having. So it's allowing the customer to have that choice and from us, it forms a core component of how we're working together. However you decide you want to consume the HP portfolio. You should have the ability for us to seamlessly work with it. And to your point, that's why that growth rate on our oi but more importantly on the revenue and the amount of growth of our customers year over year have really embraced that synchronization together. >>David, I think of your thoughts on containers. Generally I want to I want to talk about the cast and acquisition specifically but I want to ask about it in the context of the two things. One is just kind of the overall where you see that going and and how you're working with H. P. E. On that. But the other is as it relates to two of the most vexing problems for I. T. Folks in the past have been been security and data protection and their their their adjacency is you're not a security company but it's a kind of a cousin if you will. And and both of those areas have always been an afterthought after you get snake bitten, you close the barn door kind of thing and it's a bolt on. Okay. I got my application it's all hard and I got my database and ready to go, oh hey how do we back this thing up as an afterthought when I think containers and and and I think kubernetes I think developers I think infrastructure as code and now you're designing in security and data protection focusing on the ladder obviously. How does the cast and acquisition and what H. P. S doing on containers fit into that context and how do you see it evolving overall? >>Yeah that's a great question and there's two pastoring. I mean if you look at the way that HP moves to market and you look at the themes and the focus they've had now for the last three plus years with regard to that data center transformation and the movement and modernization of it. This has been a part of it But as you exactly said, this is a new type of context point has come in. Obviously we acquired casting as you alluded to early in 2020 because for us we absolutely believe that this is a core component righty. And you raised the point perfectly there Dave it used to be a component after you're snakebit, it's not today. I mean you alluded to it with regard to what's going on in the news over the last few weeks or so. It's nowhere near an afterthought Now it's a component that's built in from the start and that's why when you look at some of those studies about the spend in this area overall it isn't an afterthought anymore but I agree with you, it was when you look back a number of years and so for us casting build a very key area of our portfolio but it also allowed us with HP to double down on another area of investment for themselves. Esmeralda is a key play for HP moving forward. You can get casting on the Admiral marketplace and that's another example, as I was saying, it doesn't matter how you keep evolving your relationship with HP, how you keep drawing down from the portfolio, you want to make sure that the data protection, you've got the simplified data protection across all of these areas, is there from the start? And what we're finding is with Greenfield sites, with new applications with new deployments where containers kubernetes really comes into play. They are looking to buy it together at the start so that they can focus on learning, acquiring deploying and really maximizing the benefit of kubernetes and not worry about that snakebite component you talked about. So for us, you know, it supports our portfolio and it allows us to stay with HP as they continue to evolve their strategy. >>That SG Stat of 50% growth in data protection is pretty amazing and it's funny, I think back to the insight acquisition uh VM and you know, conventional wisdom would have said, oh wow, what a bummer. They bought this thing right before a global pandemic in an economic downturn. It's but in this, in your businesses like real estate with pre pandemic post pandemic evaluation should be skyrocketing is as a function of of the heightened focus on digital and security and data protection. So it's really an exciting time. Um if I were to ask you this question 10 years ago where where HP envy emceeing joint success in the marketplace? It would have been, well of course, virtualization, it's all the >>rage. Where >>are you seeing success today? >>And that's a great question and it's interesting you talk about it with the pandemic. I'll be honest, the last recession us that I was in the digital messaging market and at that point when economies get tight, everybody invest in cheaper types of marketing, which is digital messaging. Now we've got a pandemic and guess what, everybody is looking at this area of the market again with protection. And I think to your point, it's a great Russian. What we're finding is the word hybrid and it's it's a well overplayed term, but it's reality of the scenario. You know, we came through and started our journey of being here in the virtual world, but we moved into the physical and that's where we've been having so much success with HP as well. And now as we move towards that cloud world, um and to a degree, the application world with office 365 etcetera, what you're seeing is that hybrid need. We're seeing that the large enterprises that have relied on HP for so many years are also looking for that ubiquitous data protection layer. And because we have it so well baked into all the different parts of the portfolio, it's a seamless ability to just continue to exp fan utilization of the portfolio. So from our point of view, we're seeing fantastic against bright success. We're seeing it in some of these verticals like medical, like financial, the big corcoran pillars of society is related to the economic and industrial models. We're seeing those areas come on board, but we're also seeing people look at what I would classify as some of the Greenfield projects and that's a different viewpoint because if you look back at the history of HP as well, they were fantastic provider for the foundation of the core business. Now, what we're finding is that coming to HP envy and saying, hey, new areas Greenfield want to start fresh with a new approach, less of the legacy concern I've had before. How can we look at these new projects I'm working on. So we're seeing in the enterprise, we're seeing in what I would classify as traditional type of verticals and now we're starting to see that acceleration in some of these Greenfield projects, which is key. And that's something we've really, really enjoyed. And last part I'd say on that one as well is from a geographic basis. We are seeing all of our regions come up. Um, and the reason why that's important is sometimes you see alliances that have success in one market or one area, We're seeing the year over year growth in a mere be faster than we've ever seen. We're seeing are America's growth growth year over year and Asia is continuing to explode for us together. And so from that point of view, I think what that's telling us is that the customers resonate on what we're producing together. And so from that point of view, we're very ubiquitous in our level of value to customers and we're hoping to carry that on moving forward. >>Well, it's two trusted brands. Obviously, you know, the Hewlett Packard enterprise name and that stands out and is no longer start up with a funny name is >>you're proven >>In the marketplace, you just had a major release. I think it was V- 11. I'm not great the greatest products but um, earlier this year, wondering how that impacted the alliance? Was that fit? >>Yeah. Great question. And to your point, some people still have trouble with the name, but overall you're right, we do tend to find that we're in a good spot nowadays with regards to recognition and I D. C. Just released some fantastic statistics on growth and another record breaking year for being both from the sequential growth and the year over year growth for the second half of 2020. Moving us up into the number two position for the first time, which again, is a testament to the success were also having with HP and when you look at what happened on V 11, because as I mentioned at the start of this discussion, every one of our major releases has had HPV baked into it. And V 11 was a big release for us. There was a lot of pent up development work we were trying to get done and what we focused on with this again, especially for the enterprise, was looking at the HP portfolio and looking at faster speeds, faster speeds, have an economic value. We increased our speed and performance with HP primera, we increase it with HP nimble. We also made a really significant when we're working with HP store. Once we did a lot of evolution on that for a huge space savings, which together really values the customer and then finally where we've also found the customers asked for a lot of development from us together is consolidated with an all in one backup type of approach with the HP Apollo series. So from that point of view, we focused on the experience of the customer because the integrations are so solid. We're now fine tuning to increase that ri for the customer and V 11 was a big component of that, what I >>love about Wien David. So I used to be an I. D. C. For years and you just mentioned that the study that came out and you're number two and >>I've been talking a lot of your >>executives recently, you've, you've, you've thrown out that stand a lot number two. Number two. But, but when I was in to see everybody wanted to be number one at something, so you could say, oh, hey, we're number one backup company with the green logo. Hey, we're number one, >>but you're not >>doing that. And I'm joking about the green logo, but you actually are the number one. I think I'm correct in saying this, the number one pure play and back up in data protection and you don't, you don't stand up on that mantle. And I was asking some executives why? And you're like, well, no, because we want to be number one, that's what, that's our objective. You know, we're not gonna claim number one now until we get to number one and we'll claim real number one. So I like that about you guys. You, you set the mark the mark high. But so I love that. Um, >>I appreciate it. Yeah. How should >>people be thinking about the future of your relationship with HP the rest of this year and beyond? >>Yeah, great question. And I do really do appreciate that comment because it's an easy one to sort of pick up on it. And it comes down to the attitude. It comes down to our attitude with regards to there's nothing wrong with fight. There's nothing wrong with making sure you continue to have a north star that you never want to stop getting too. And I think that's a testament to the development of the products and, and overall our attitude to working in the field and working with our alliances. And when you look about, when you ask the question, excuse me. Dave about, you know, where do we see the HP envy moving forward, consistency, consistency is key for us for 10 years. We've been consistent in providing value And we want to continue doing that for another 10 years moving forward. And as we evolve our portfolio and you look at our Act two and as you talked about some of the things you talk to are the executives about. When you look at, we're moving forward, we're doing that in conjunction and we believe as you move forward with regards to some of the things HPR Do we want that consistency of integration? We want that consistency of experience to the customer. We want that consistency of listening and developing our engineering resources together to address that need. And again, it sounds like a really obvious answer and it is, but the difference on the back of this one, to be honest with you, Davis, we proved this again and again and again. And as you look at the Truman data protection solution and you do it in conjunction with HP, it's one of those things where we're so proud to make sure we keep working hard together and pushing each other to be better for our customers, that we're really excited about how it moves forwards. Were also, and again, we're not going into any juicy secrets here, but I wouldn't be surprised if V 12 that comes here in the, in the future also has another little nice street related to HPV as well. So from that point of view, um, you should have consistency, you should have trust and you should be excited about the fact that the investment and the joint alliance is stronger than it's ever been. >>Well, you guys are setting the marks, uh, certainly the competitive landscape gets tougher and tougher, but you guys are, are leading, you're moving fast, you get a great product to move at the speed, the speed you're, you are and growing at the pace you are for a billion dollar company is impressive. So congratulations on that and you're not done yet. So thanks >>for, thanks for that. We're excited about discover here. This is again, another, I think this is almost the ninth plus year. We've been been a strong sponsor of it. We're excited about H. P. S future as well here together. Um, and hey, we do this together. So we're great to see it moving forward, >>David, Great to see you again. Thanks so much. >>Thanks so much. Dave as always appreciate the time. >>Thank you for being with us. For HP. You discover 2021, the virtual edition. You're watching the Cube, the leader in digital tech coverage. >>Mm.

>>Welcome back to HPD discovered 2021. The virtual edition. My name is Dave Volonte and you're watching the cubes continuous coverage of H. P. S. Big customer event. Patrick Moorehead is here of moor insights and strategy is the number one analyst in the research analyst. Business. Patrick. Always a pleasure. Great to see you, >>David. Great to see you too. And I know you're you're up there fighting for that number one spot to. It's great to see you and it's great to see you in the meetings that were in. But it's even more fun to be here on the cube. I love to be on the cube and every once in a while you'll even call me a friend of the cube, >>unquestionably my friend and so and I can't wait second half. I mean you're traveling right now. We're headed to Barcelona to mobile World Congress later on this month. So so we're gonna we're gonna see each other face to face this year. 100%. So looking forward to that. So, you know, let's get into it. Um you know, before we get into H. P. E. Let's talk a little bit about what you're seeing in the market. We've got, you know, we we we finally, it feels like the on prem guys are finally getting their cloud act together. Um, it's maybe taken a while, but we're seeing as a service models emerge. I think it's resonating with customers. The clearly not everything is moving to the cloud. There's this hybrid model emerging. Multi cloud is real despite what, you know, >>some some >>cloud players want to say. And then there's this edges like jump ball, what are you seeing in the marketplace? >>Yeah. Davis, as exciting as ever in. Just to put in perspective, I mean, the public cloud has been around for about 10 years and still only 20%. Around 20% of the data in 20% of the applications are there now, albeit very important ones. And I'm certainly not a public cloud denier, I never have been, but there are some missing pieces that need to come together. And you know, even five years ago we were debating dave the hybrid cloud and I feel like when Amazon brought out outposts, the conversation was over right now, what you have is cloud native folks building out hybrid and on prem capabilities, you have the classic on prem folks building out hybrid and as a service capabilities. And I really think it boils down 22 things. I mean it's wanting to have more flexibility and you know, I hate to use it because it sounds like a marketing word, but agility, the ability to spin up things and spin down things in a very quick way. And uh, you know what they've learned. The veterans also know, hey, let's do this in a way that doesn't lock us in too much into a certain vendor. And I've been around for a long time. David and I'm a realist too. Well, you have to lock yourself into something. It just depends on what do you want to lock yourself into, but super exciting. And what H. P. E. When they threw the acts in the sea with Green Lake, I think it was four years ago, I think really started to stir the pot. >>You know, you mentioned the term cloud denial, but you know, and I feel like the narrative from, I like to determine is I think you should use the term veteran. You know, it's very, they're ours is the only industry patrick where legacy is a pejorative, but but but so but the point I want to make is I feel like there's been a lot of sort of fear from the veteran players, but I look at it differently. I wonder what you're taking. I think, I think, I think I calculated that the Capex spending by the big four public clouds including Alibaba last year was $100 billion. That's like a gift to the world. Here, we're going to spend $100 billion like the internet here you go build. And and so I, and I feel like companies like HP are finally saying, yeah, we're gonna build, we're gonna build a layer and we're gonna hide the complexity and we're gonna add value on top. What do you think about that? >>Yeah. So I think it's now, I wish, I wish the on prem folks like HP, you would have done it 10 years ago, but I don't think anybody expected the cloud to be as big as it's become over the last 10 years. I think we saw companies like salesforce with sas taking off, but I think it is the right direction because there are advantages to having workloads on prem and if you add an as a service capability on top of the top of that, and let's say even do a Coehlo or a managed service, it's pretty close to being similar to the public cloud with the exception, that you can't necessarily swipe a credit card for a bespoke workload if you're a developer and it is a little harder to scale out. But that is the next step in the equation day, which is having, having these folks make capital expenditures, make them in a polo facility and then put a layer to swipe a credit card and you literally have the public cloud. >>Yeah. So that's, that's a great point and that's where it's headed, isn't it? Um, so let's, let's talk about the horses on the track. Hp. As you mentioned, I didn't realize it was four years ago. I thought it was, wow, That's amazing. So everybody's followed suit. You see, Dallas announced, Cisco has announced, uh, Lenovo was announced, I think IBM as well. So we, so everybody started following suit there. The reality is, is it's taken some time to get this stuff standardized. What are you seeing from, from HP? They've made some additional announcements, discover what's your take on all this. >>Yeah. So HPD was definitely the rabbit here and they were first in the market. It was good to see, first off some of their, Um, announcements on, on how it's going. And they talked about 4, $28 billion 1200 customers over 900 partners and 95% retention. And I think that's important anybody who's in the lead and remember what Aws used to do with the slide with the amount of customers would just get bigger and bigger and bigger and that's a good way to show momentum. I like the retention part two which is 95%. And I think that that says a lot uh probably the more important announcements that they made is they talked about the G. A. Of some of their solutions on Green Lake and whether it was S. A. P. Hana Ml apps HPC with Francis V. I was Citrus in video but they also brought more of what I would call a vertical layer and I'm sure you've seen the vertical ization of all of these cloud and as a service workloads. But what they're doing with Epic with EMR and looseness, with financial payments and Splunk and intel with data and risk analysis and finally, a full stack for telco five G. One of the biggest secrets and I covered this about five years ago is HPV actually has a full stack that western european carriers use and they're now extending that to five G. And um, so more horizontal uh and and more vertical. That was the one of the big swipes uh that I saw that there was a second though, but maybe we can talk about these. >>Yeah. Okay, Okay. So, so the other piece of that of course is standardization right there there because there was a, there was, there was a lot of customization leading up to this and everybody sort of, everybody always had some kind of financial game they can play and say, hey, there's an adversary as a service model, but this is definitely more of a standardized scalable move that H P E. Is making with what they call Lighthouse, Right? >>Yeah, that's exactly right. And I've talked to some Green Lake customers and they obviously gave it kudos or they wouldn't have HP wouldn't have served them up and they wouldn't have been buying it. But they did say, um, it took, it took a while, took some paperwork to get it going. It's not 100% of push button, but that's partially because hp allows you to customize the hardware. You want a one off network adapter. Hp says yes, right. You want to integrate a different type of storage? They said yes. But with Green Lake Lighthouse, it's more of a, what you see is what you get, which by the way is very much like the public cloud or you go to a public cloud product sheet or order sheet. You're picking from a list and you really don't know everything that's underneath the covers, aside from, let's say the speed of the network, the type of the storage and the amount of the storage you get. You do get to pick between, let's say, an intel processor, Graviton two or an M. D processor. You get to pick your own GPU. But that's pretty much it. And HP Lighthouse, sorry, Green Lake Lighthouse uh, is bringing, I think a simplification to Green Lake that it needs to truly scale beyond, let's say, the white house customers at HP. Yeah, >>Well done. So, you know, and I hear your point about 10 years in, you know, plus and to me this is like a mandate. I mean, this is okay. Good, good job guys about time. But if I had a, you know, sort of look at the big players, like, can we have an oligopoly here in this, in this business? It's HP, Cisco, you got Dell Lenovo, you've got, you know, IBM, they're all doing this and they all have a different little difference, you know, waste of skin of catch. And your point about simplicity, it seems like HP HP is all in Antonio's like, okay, here's what we're going to announce that, you know, while ago, so, and they seem to have done a good job with Wall Street and they get a simple model, you know, Dell's obviously bigger portfolio, much more complicated. IBM is even more complicated than that. I don't know so much about Lenovo and in Cisco of course, has acquired a ton of SAAS companies and sort of they've got a lot of bespoke products that they're trying to put together, so they've got, but they do have SAS models. So each of them is coming at it from a different perspective. How do you think? And so and the other point we got lighthouse, which is sort of Phase one, get product market fit. Phase two now is scale codify standardized and then phase three is the moat build your unique advantage that protects your business. What do you see as HP? Es sort of unique value proposition and moat that they can build longer term. >>That's a great, great question. And let me rattle off kind of what I'm seeing that some of these these players here. So Cisco, ironically, has sells the most software of any of those players that you mentioned, uh with the exception of IBM. Um, and yeah, C >>ICSDB two. Yeah, >>yeah, they're the they're the number two security player, uh, Microsoft, number one. So and I think the evaluation on the street uh indicate that shows that I feel like uh Deltek is a is a very broad play because not only do they have servers, storage, networking and security, but they also have Pcs and devices, so it's a it's a scale and end play with a focus on VM ware solutions, not exclusively, of course. Uh And um then you've got Lenovo who is just getting into the as a service game and are gosh, they're doing great in hyper scale, they've got scale there vertically integrated. I don't know if if too many people talk about that, but Lenovo does a lot of their own manufacturing and they actually manufacture Netapp storage solutions as well. So yeah, each of these folks brings a different game to the table, I think with h P E, what your bring to the table is nimble. When HP and HP split, the number one thing that I said was that uh huh H P E is going to have to be so much faster than it offsets the scale that Dell technology has and the HBs credit, although there, I don't think we're getting credit for this in the stock market yet. Um, and I know you and I are both industry folks, not financial folks, but I think their biggest thing is speed and the ability to move faster and that is what I've seen as it relates to the moat, which is a unique uh, competitive advantage. Quite frankly, I'm still looking for that day in, in, in what that is and I think in this industry it's nearly impossible and I would posit that that any, even the cloud folks, if you say, is there something that AWS can do that Azure can't, if it put it put its mind to it or G C P. I don't think so. I think it's more of a kind of land and expand and I think for H P E, when it comes to high performance computing and I'm not just talking about government installations, I'm talking about product development, drug development, I think that is a landing place where H P E already does pretty well can come in and expand its footprint, >>you know, that's really interesting um, observations. So, and I would agree with you, it's kind of like, this is a copycat industry, it's like the west coast offense, like the NFL >>and >>so, so the moat comes from, you know, brand execution and your other point about when HP and HP split, that was a game changer, because all of a sudden you saw companies like them, you always had a long term relationship with H P E but or HP, but then they came out of the woodworks and started to explode. And so it really opened up opportunities. So it really >>is an execution, >>isn't it? But go ahead, please >>Dave if I had to pick something that I think HP HPV needs to always be ahead and as a service and listen, you know, I both know announcements don't mean delivery, but there is correlation between if you start four years ahead of somebody that other company is going to have to put just, I mean they're gonna have to turn that ship and many of its competitors really big ships to be able to get there. So I think what Antonio needs to do is run like hell, right, Because it, it, I think it is in the lead and as a service holistically doesn't mean they're going to be there forever, but they have to stay ahead. They have to add more horizontal solutions. They have to add more vertical solutions. And I believe that at some point it does need to invest in some Capex at somebody like ANna Quinn x play credit card swiper on top of that. And Dave, you have the public, you have the public cloud, you don't have all the availability zones, but you have a public cloud. >>Yeah, that's going to happen. I think you're right on. So we see this notion of cloud expanding. It's no longer just remote set of services. Somewhere out in the cloud. It's as you said, outpost was the sort of signal. Okay, We're coming on prem clearly the on prem, uh, guys are connecting to the cloud. Multi cloud exists, we know this and then there's the edge but but but that brings me to that sort of vision and everybody's laying out of this this this seamless integration hiding the complexity log into my cloud and then life will be good. But the edge is different. Right? It's not just, you know, retail store or a race track. I mean there's the far edge, there's the Tesla car, there's gonna be compute everywhere. And that sort of ties into the data. The data flows, you know the real time influencing at the edge ai new semiconductor models. You you came out of the semiconductor industry, you know it inside and out arm is exploding is dominating in the edge with with with apple and amazon Alexa and things like that. That's really where the action is. So this is a really interesting cocktail and soup that we have going on. How do you >>say? Well, you know, Dave if the data most data, I think one thing most everybody agrees on is that most of the data will be created on the edge. Whether that's a moving edge a car, a smartphone or what I call an edge data center without tile flooring. Like that server that's bolted to the wall of Mcdonald's. When you drive through, you can see it versus the walmart. Every walmart has a raised tile floor. It's the edge to economically and performance wise, it doesn't make any sense to send all that data to the mother ships. Okay. And whether that's unproven data center or the giant public cloud, more efficient way is to do the compute at the closest way possible. But what it does, it does bring up challenges. The first challenge is security. If I wanted to, I could walk in and I could take that server off the Mcdonald's or the Shell gas station wall. So I can't do that in a big data center. Okay, so security, Physical security is a challenge. The second is you don't have the people to go in there and fix stuff that are qualified. If you have a networking problem that goes wrong and Mcdonald's, there's nobody there that can help uh, they can they can help you fix that. So this notion of autonomy and management and not keeping hyper critical data sitting out there and it becomes it becomes a security issue becomes a management issue. Let me talk about the benefits though. The benefits are lower latency. You want you want answers more quickly when that car is driving down the road and it has a five G V two X communication cameras can't see around corners, but that car communicating ahead, that ran into the stop sign, can I through vi to X. Talk to the car behind it and say, hey, something is going on there, you can't go to, you can't go to the big data center in the sky to make that happen, that is to be in near real time and that computer has to happen on the edge. So I think this is a tremendous opportunity and ironically the classic on prem guys, they own this, they own this space aside from smartphones of course, but if you look at compute on a light pole, companies like Intel have built Complete architectures to do that, putting compute into 5G base stations. Heck, I just, there was an announcement this week of google cloud in its gaming solution putting compute in a carrier edge to give lower latency to deliver a better experience. >>Yeah, so there, of course there is no one edge, it's highly fragmented, but I'm interested in your thoughts on kind of who's stack actually can play at the edge. And I've been sort of poking uh H P E about this. And the one thing that comes back consistently is Aruba, we we can take a room but not only to the, to the near edge, but to the far edge. And and that, do you see that as a competitive advantage? >>Oh gosh, yes. I mean, I would say the best acquisition That hp has made in 10 years has been aruba it's fantastic. And they also managed it in the right way. I mean, it was part of HB but it was it was managed a lot more loosely then, you know, a company that might get sucked into the board. And I think that paid off tremendously. They're giving Cisco on the edge a absolute run for their money, their first with new technologies. But it's about the solution. What I love about what a ruble looks at is it's looking at entertainment solutions inside of a stadium, um a information solution inside of an airport as opposed to just pushing the technology forward. And then when you integrate compute with with with Aruba, I think that's where the real magic happens. Most of the data on a permanent basis is actually video data. And a lot of it's for security uh for surveillance. And quite frankly, people taking videos off, they're off their smartphones and downloading video. I I just interviewed the chief network officer of T mobile and their number one bit of data is video, video uploaded, video download. But that's where the magic happens when you put that connectivity and the compute together and you can manage it in a, in an orderly and secure fashion >>while I have you, we have a ton of time here, but I I don't pick your brain about intel, the future of intel. I know you've been following it quite closely, you always have Intel's fighting a forefront war. You got there, battling A. M. D. There, battling your arm slash and video. They're they're taking on TSMC now and in foundry and, and I'll add china for the looming threat there. So what's your prognosis for for intel? >>Yeah, I liked bob the previous Ceo and I think he was doing a lot of of the right things, but I really think that customers and investors and even their ecosystem wanted somebody leading the company with a high degree of technical aptitude and Pat coming, I mean, Pat had a great job at VM or, I mean, he had a great run there and I think it is a very positive move. I've never seen the energy At Intel probably in the last 10 years that I've seen today. I actually got a chance to talk with pat. I visited pat uhh last month and and talk to him about pretty much everything and where he wanted to take the company the way you looked at technology, what was important, what's not important. But I think first off in the world of semiconductors, there are no quick fixes. Okay. Intel has a another two years Before we see what the results are. And I think 2023 for them is gonna be a huge year. But even with all this competition though, Dave they still have close to 85% market share in servers and revenue share for client computing around 90%. Okay. So and they've built out there networking business, they build out a storage business um with with obtain they have the leading Aid as provider with Mobileye. And and listen I was I was one of Intel's biggest, I was into one of Intel's biggest, I was Intel's biggest customer when I was a compact. I was their biggest competitor at AMG. So um I'm not obviously not overly pushing or there's just got to wait and see. They're doing the right things. They have the right strategy. They need to execute. One of the most important things That Intel did is extend their alliance with TSMC. So in 2023 we're going to see Intel compute units these tiles, they integrate into the larger chips called S. O. C S B. Manufactured by TSMC. Not exclusively, but we could see that. So literally we could have AMG three nanometer on TSMC CPU blocks, competing with intel chips with TSMC three nanometer CPU blocks and it's on with regard to video. I mean in video is one of these companies that just keeps going charging, charging hard and I'm actually meeting with Jensen wang this week and Arms Ceo Simon Segers to talk about this opportunity and that's a company that keeps on moving interestingly enough in video. If the arm deal does go through will be the largest chip license, see CPU licensee and have the largest CPU footprint on the planet. So here we have AMG who's CPU and Gpu and buying an F. P. G. A company called Xilinx, you have Intel, Cpus, Gpus machine learning accelerators and F. P. G. S. And then you've got arms slashing video bit with everything as well. We have three massive ecosystems. They're gonna be colliding here and I think it's gonna be great for competition. Date. Competition is great. You know, when there's not competition in CPUs and Gpus, we know what happens right. Uh, the beach just does not go on and we start to stagnate. And I did, I do feel like the industry on CPU started to stagnate when intel had no competition. So bring it on. This is gonna be great for for enterprises then customers to and then, oh, by the way, you have the custom Chip providers. WS has created no less than 15 custom semiconductors started with networking and nitro and building out an edge that surrounded the general computer. And then it moved to Inferential for inference trainee um, is about to come out for training Graviton and Gravitas to for general purpose CPU and then you've got apple. So innovation is huge and I love to always make fun of the software is eating the world. I always say yeah but has to run on something. And so I think the combination of semiconductors software and cloud is just really a magical combination. >>Real quick handicap the video arm acquisition. What what are the odds that that they will be successful? They say it's on track. You got a 2 to 13 to 1 10 to 1. >>I say 75%. Yes 25%. No China is always the has been the odd odd man out for the last three years. They scuttled the Qualcomm NXp deal. You just don't know what china is going to do. I think the EU with some conditions is going to let this fly. I think the U. S. Is absolutely going to let this fly. And even though the I. P. Will still stay over in the UK, I think the U. S. Wants to see wants to see this happen, Japan and Korea I think we'll allow this china is the odd man out. >>In a word, the future of h p. E is blank >>as a service >>patrick Moorehead. Always a pleasure. My friend. Great to see you. Thanks so much for coming back in the cube. >>Yeah, Thanks for having me on. I appreciate that. >>Everybody stay tuned for more great coverage from HP discover 21 this is day Volonte for the cube. The leader and enterprise tech coverage. We'll be right back.

>>Welcome back to HPD discovered 2021 the virtual version of the show. My name is Dave valentin. You're watching the cube we're here with David Harvey is the vice president of strategic alliances at VM. David. Good to see you. How you doing? >>I'm well thanks. David yourself you've been good, >>yep dude, great, thank you. Hey, you've heard the term follow the money, we're going to follow the data. How about so HP and Wien? You're celebrating a 10 year milestone in your alliance. That's a lot of good parties at at the HP discover shows and uh of course we miss miss being face to face this year but next year we'll be back rocking but uh talk a little bit about what that milestone means to you. >>Yeah, Thanks. Dave. And you're right. It is a milestone. I mean when >>you look at alliances or >>Partnerships overall, it's crazy that you can maintain this depth of partnership is depth of relationship and this success for 10 years. I mean H. P. Was our number one alliance that we started working with when we started being X number of years ago. Um and the reason for that was that we really came together from the very start with a philosophy about the approach we wanted to provide to the customer and also the synergy of technology um and 10 years is a long time. I mean, how many alliances that you've seen in the industry Um that have managed to maintain for 10 years and we're stronger than ever as we come into this point and that's amazing. So from that point of view we're really excited for this 10 year milestone. We're really pleased at the investment from both sides as maintained and grown through that time period. Um and as you said, it's a shame we're not doing this in person, but this is a great event for us and that's why we're so proud to be top sponsor this year and supporting the charge for discovered. Well, >>congratulations on that milestone immunity. So often when I talk to folks that are in your role, they'll complain and yeah, we do it. We have a lot of numbers, but not a lot of marijuana and not a lot of fruitful partnerships and they'll do barney deals. I love you, you love me, you will do a press release, but it's not driving and I happen to know that the HPV in relationship is very productive and I think, you know, one of the key moves when when HP split itself into it took its, you know, competitive data protective product that sold that off and then that just opened up a whole new opportunity for the relationships and was a game changer. So but looking back, what do you think was the meaningful sort of investment that the alliance has really made together? >>Yeah, great question. >>And it's a really >>cheesy answer, but it's, it's one of those very rare scenarios, where is the truth and his death? You know, the depth of discussion from the very start was really what >>Built that foundation, we were the launch back up part of the three >>part, um, and every release team has done since then has had a key HP component to it. And more importantly, as you said, as HP has evolved through that period, the divestiture and >>the overall movement of their portfolio. >>We've continued to listen to each other on what >>is important to both parties. But while that's great from the relationship and the alliance, >>the one thing that's never changed is the response of the customer to saying, not only have you integrated together on technology, you've unified your message, you provide a supply chain that is meaningful to my business by simplifying and providing value and you continue to evolve. You continue to adjust and move as you've gone through the time period and our needs have changed. I mean we started with servers, we worked with storage, we're with green lake esmeralda like all across that portfolio. We found a way to continue to listen to each other and what's important and that's been q. >>So what are the waves that you're, you're surfing here, You put on the binoculars and look forward. What are going to be the most important areas that you guys invest in and focus on in the future? >>Yeah, great question. I mean we're focused on three things for the, for the medium to short term here and looking at there is rapidly recovering your data. You know, the news at the moment is exploding related to issues companies are having, which is so unfortunate and recovering data quickly. It's an economic component is not just about the ability to do it fast, it's about the fact that the quicker you bring data back in this circumstance where you have to, the better it is for your bottom line. We also simplify that data protection and the reason for that is that if you look at the diversity of the portfolio HP has, you want unification regardless of what products you're buying from HP, you want to make sure that you're working with solutions that work with all of those different parts of it. As I mentioned, service storage as moral Green Lake et cetera. And so that simplification of data protection is huge. And finally it's getting your data protection as a service. We've been working with Green Lake for a good number of years now and it's one of the fastest growing areas of our partnership. But if you bring those three things together, the customers are deciding that modern data protection needs that they have, they're looking at the hybrid world, they're looking at all parts of the portfolio from the thought leaders, they work with specifically HP and they're wanting to make sure that they've got that unification moving >>forward and that whatever >>decisions they make with the infrastructure, the underlying protection of their data continues to be a core component that they can evolve with as they move their needs forward. >>You talk about that speedy recovery, there's so much in the news today, we're seeing all this, all this ransomware, I mean it's bringing down organizations, it's affecting supply chains all over the world very concerning. And there's two dimensions here. One is the speed to recover. We can all relate, you know, when your laptop freezes like, oh, I gotta reboot and it takes five minutes and you're frustrated. Imagine your whole business, you know, it takes half a day to recover. That's huge. The other dimension, of course, is how much data you lose in that recovery and you try to compress that arpeggio right is to so as tight as possible. And that's the other sort of value that that customers look for from a combination of HP envy them. So, but I want to ask you so we're here at HP covering HP discover you can't talk about hB without getting a kool aid injection of Green Lake and as a service. And we're how are you guys sort of addressing those as a service needs for today's customers? >>Yeah, it's a great question. And by the way, kudos, you can be a salesperson force with our pos and all those keywords. I love it. But what I would say overall is that when you look at the changing way customers are spending, um it depends on where they're structuring their financial desires, whether it's the Capex world, the optics world etcetera. And Green Led by its nature allows you to look at having the control of a physical component. But having the economic structure of in some respects pay as you go when you look at it in that component. And so you're avoiding that capital investment concern. But you're getting the power and the strength of the management component as well. And that's what's really important. I mean when you look at overall movement. S you did a really interesting report recently and they're saying that spending on data center protection is gonna grow 50% this year in 2021. Looking at improving that level of key component for their data centers as they go through that modernization and so from that point of view, what we're seeing and this is applicable for HP more than anybody else. Is that the speed that they came out with the Green Lake a number of years ago allowed customers, especially the big enterprises, we're having a massive amount of success together, enabled them to decide the economic buying model that they wanted and to combine that with the best of breed service and management and control. So from our point of view, that's something we've been investing within a long period of time now, not only on the solutions but also on how we go to market together. Our field team is working very closely with their field team within Green Lake to be there so that the customer can utilize it as a tool and not feel like they're having a different conversation because we're so baked in with the rest of the organization. So from our point of view, Green like his key to how things are moving forward and other things that the storage departments doing as well as they look at some of their >>new >>ways with their announcements we've, they've recently made with buying down on demand and new products they're having. So it's allowing the customer to have that choice and from us, it forms a core component of how we're working together. However you >>decide you want to consume the HP >>portfolio. You should have the ability for us to seamlessly work with it. And to your point, that's why that growth rate on our oi but more importantly on the revenue and the amount of growth of our customers year over year have really embraced that synchronization together. >>David, I think of your thoughts on containers. Generally. I want to I want to talk about the casting acquisition specifically but I want to ask about it in the context of the two things. One is just kind of the overall where you see that going and and how you're working with H. P. E. On that. But the other is as it relates to two of the most vexing problems for I. T. Folks in the past have been been security and data protection and their their their adjacency is you're not a security company but it's a kind of a cousin if you will. And and both of those areas have always been an afterthought. After you get snake bitten, you close the barn door kind of thing and it's a bolt on. Okay. I got my application it's all hard and I got my database and ready to go oh hey how do we back this thing up as an afterthought when I think containers and and and I think kubernetes I think developers I think infrastructure as code and now you're designing in security and data protection focusing on the ladder obviously how does the cast and acquisition and what H. P. S doing on containers fit into that context and how do you see it evolving overall. >>Yeah that's a great question. And there's two pastoring. I mean if you look at the way that HP moves to market and you look at the themes and the focus they've had now for the last three plus years with regard to that data center transformation and the movement and modernization of it. This has been a part of it but as you exactly said this is a new type of context point has come in. Obviously we acquired casting as you alluded to early in 2020 because for us we absolutely believe that this is a core component righty and you raised the point perfectly there Dave it used to be a component after you're snakebit, it's not today. I mean you alluded to it with regard to what's going on in the news over the last few weeks or so. It's nowhere near an afterthought Now it's a component that's built in from the start and that's why when you look at some of those studies about the spend in this area overall it isn't an afterthought anymore but I agree with you, it was when you look back a number of years and so for us casting build a very key area of our portfolio but it also allowed us with HP to double down on another area of investment for themselves. Esmeralda is a key play for HP moving forward. You can get casting on the Admiral marketplace and that's another example, as I was saying, it doesn't matter how you keep evolving your relationship with HP, how you keep drawing down from the portfolio, you want to make sure that the data protection, you've got the simplified data protection across all of these areas, is there from the start? And what we're finding is with Greenfield sites with new applications with new deployments where containers kubernetes really comes into play. They are looking to buy it together at the start so that they can focus on learning, acquiring deploying and really maximizing the benefit of kubernetes and not worry about that snakebite component you talked about. So for us, you know, it supports our portfolio and it allows us to stay with HP as they continue to evolve their strategy. >>That SG Stat of 50% growth in data protection is pretty amazing and it's funny, I think back to the insight acquisition of'em and you know, conventional wisdom would have said, oh wow, what a bummer. They bought this thing right before a global pandemic, in an economic downturn, it's but in this, in your businesses like real estate with pre pandemic post pandemic evaluation should be skyrocketing is is a function of of the heightened focus on digital and security and data protection. So it's really an exciting time. Um if I were to ask you this question 10 years ago, where where hp envy emceeing joint success in the marketplace, it would have been, well of course virtualization, it's all the rage. Where are you seeing success today? >>And that's a great question and it's >>interesting you talk about it with the pandemic. >>I'll be honest, the >>last recession us had, I was in the digital messaging market and at that >>point when economies get tight, everybody invest >>in cheaper types of marketing, which is digital messaging. Now, we've got a pandemic and guess what, everybody's looking at this area of the market again with protection. And I think to your point, it's a great question. What we're finding is the word hybrid and it's it's a well overplayed term, but it's reality of the scenario. You know, we came through and started our journey of being here in the virtual world, but we moved into the physical and that's where we've been having so much success with HP as well. And now as we move towards that cloud world, um and to a degree, the application world with Office 365 etcetera. What you're seeing is that hybrid me, we're seeing that the large enterprises that have relied on HP for so many years are also looking for that ubiquitous data protection layer >>and because we >>have it so >>well baked into all the >>different parts of the portfolio, it's a seamless ability to just continue to expand the utilization of the portfolio. So from our point of view, we're seeing fantastic enterprise success. We're seeing it in some of these verticals >>like medical, like >>financial, the big corporate pillars of society is related to the economic and industrial models. We're seeing those areas come on board, but we're also seeing, people will look at what I would classify some of the Greenfield projects and that's a different viewpoint because if you look back at the history of HP as well, they were fantastic >>provider for the >>foundation of the core business. Now, what we're finding is that coming to HP envy and saying, Hey, new areas Greenfield want to start fresh with a new approach, less of the legacy concern I've had before. How can we look at these new projects I'm working on? So we're seeing in the enterprise, we're seeing in what I would classify as traditional type of verticals and now we're starting to see that acceleration in some of these Greenfield projects, which is key. And that's something we've really, really enjoyed. And last part I'd say on that one as well is from a geographic basis. We are seeing >>all of our regions come up. Um and the reason why >>that's important is sometimes you see alliances that have success in one market or one area, we're seeing the year >>over year growth in >>a mere be faster than we've ever seen. We're seeing are America's growth growth year over year and Asia is continuing to explode for us together. And so from that point of view, I think what that's >>telling us is that the customers resonate on what we're producing together. And so from >>that point of view we're very >>ubiquitous in our level of value to customers and we're hoping to carry that on moving >>forward. Well it's >>two trusted brands. Obviously, you know the Hewlett Packard Enterprise name and that stands out and is no longer a start up with a funny name is You've proven in the marketplace, you just had a major release. I think it was V- 11. I'm not great the greatest products but um earlier this year, wondering how that impacted the alliance. Was that fit? >>Yeah. Great question. And to your point, some people still have trouble with the name but overall you're right, we do tend to find that we're in a good spot nowadays with regards to recognition. And I D. C just >>released some >>fantastic statistics on growth and another record breaking year for being both from the sequential growth and the year over year growth For the second half of 2020. Moving us up into the number two position for the first time, which again is a testament to the success were also having with hp and when you look at what happened on V 11, because as I mentioned at the start of this discussion, every one of our major releases has had HPV baked into it. And V 11 was a big release for us. There was a lot of pent up development work we were trying to get done and what we focused on with this again, especially for the enterprise, was looking at the HP portfolio and looking at faster speeds, faster speeds, have an economic value. We increased our speed and performance with HP Primera. We increase it with HP Nimble. We also made a really significant when we're working with HB store. Once we did a lot of evolution on that for a huge space savings which together really values the customer and then finally where we've also found the customers asked for a lot of development from us together is consolidated with an all in one backup type of approach with the HP Apollo series. So from that point of view, we focused on the experience of the customer because the integrations are so solid. We're now fine tuning to increase that ri for the customer and V 11 was a big component of that. >>What I love about Wien David. So I used to be an I. D. C. For years and you just mentioned that the study that came out and you're number two and I've been talking a lot of your executives recently, you've, you've thrown out that stand a lot number two. Number two. But, but when I was about to see everybody wanted to be number one at something. So you could say, oh, hey, we're number one backup company with the green logo. Hey, we're number one, but you're not doing that. And I'm joking about the green logo, but you actually are the number one. I think I'm correct in saying this, the number one pure play and back up in data protection. And you don't, you don't stand up on that mantle. And I was asking some executives why? And you're like, well, no, because we want to be number one, that's what, that's our objective. You know, we're not going to claim number one now until we get the number one will claim real number one. So I like that about you guys, you, you set the mark, the mark high. But so I love that. Um, >>I appreciate I have >>how should people be thinking about the future of your relationship with H. P. E. You know, the rest of this year and beyond? >>Yeah, great question. And I do really do appreciate that comment because it's an easy one to sort of pick up on it. And it comes down to the attitude. It comes down to our attitude with regards to there's nothing wrong with fight. There's nothing wrong with making sure that you continue to have a north star that you never want to stop getting too. And I think that's a testament to the development of the products and, and overall our attitude to working in the field and working with our alliances And when you look about, when you ask the question, excuse me Dave about, you know, where do we see the HP envy moving forward, >>consistency, consistency >>Is key for us for 10 years, we've been consistent in providing value And we want to continue doing that for another 10 years moving forward. And as we evolve our portfolio and you look at our Act two and as you talked about some of the things you've talked to, other executives about when you look at, we're moving forward, we're doing that in conjunction and we believe as you move forward with regard to some of the things HPR Do we want that consistency of integration? We want that consistency of experience to the customer. We want that consistency of listening and developing our engineering resources together to address that need. And again, it sounds like a really obvious answer and it is, but the difference on the back of this one, to be honest with you, Davis, we proved this again and again and again. And as you look at the Truman data protection solution and you do it in conjunction with HP, it's one of those things where we're so proud to make sure we keep working hard together and pushing each other to be better for our customers, that we're really excited about how it moves forwards. Were also, and again, we're not going into any juicy secrets here, but I wouldn't be surprised if V 12 that comes here in in the future also has another little nice street related to HPV as well. So from that point of view, um, you should have consistency, you should have trust and you should be excited about the fact that the investment and the joint alliance is stronger than it's ever been. >>Well, you guys are setting the marks. Uh, certainly the competitive landscape gets tougher and tougher, but you guys are are leading, you're moving fast, you get a great product to move at the speed, the speed you're, you are and growing at the pace you are for a billion dollar company is impressive. So congratulations on that and you're not done yet. So thanks >>for, thanks for that. We're excited about discover here. This is again, another, I think this is almost the ninth plus year. We've been been a strong sponsor of it. We're excited about H. P. S future as well here together. Um, >>and hey, we do this together. So we're great to see >>it moving forwards. >>David, Great to see you again. Thanks so much. >>Thanks so much. Dave as always appreciate the time. >>Thank you for being with us for hp. You discover 2021, the virtual edition. You're watching the Cube, the leader in digital tech coverage. Mhm. Mhm

>>Welcome back to HP discover 2021 the virtual version my name is Dave valentin. You're watching the cubes continuous coverage of the event, john Ramallah is here. He's the senior director of product management for HP. Green Lake Lighthouse. New offering from HP. We're gonna talk about that. We're gonna talk about cloud native. Hey john, welcome to the cube. Good to see you again. >>Awesome. Great to be with you again. >>All right. So what is Green Lake Lighthouse? >>Yeah, it's very excited. Another new offering and innovation from H P E to support our broader Green Lake strategy and plans. It's really a brand new, purpose built cloud native platform that we've developed and created. That pulls together all of our infrastructure leadership with our platform software leadership into a single integrated system built to run green light cloud services. So think of it as you know, fully integrated, deploy it any place you want on your premises at a co location provider or at the edge wherever you need. Um, they'll inter operate, work together sharing data, you know, running apps together. Great capability for people to bring the cloud where they want as we talk about what Green like it's the cloud that comes to you. >>So should we think of this as a as a management platform? Is it also sort of a quasi development platform kind of, where does it fit in that spectrum? >>Well, it's really more of an integrated system with all of the integrated control planes needed to run it in a distributed fashion. So it's a it's a true distributed cloud intended to run at any client location that's needed, connects back to Green Lake Central and our Green Light cloud operations teams to go ahead and run any cloud services that they want. So you get the benefit of running those workloads wherever you need but that, you know, uh centralized control that people want in terms of how they run their class. >>Okay so we think of these things like for instance how is it different from a WS outposts or things like you know as your stack or as your hub? >>Yeah, very simply this is because it's a distributed cloud intended to make it so you can run it wherever you need. You don't need to be tethered to any of the public cause or the various public clouds out there so people can now run their systems wherever they want however they need without that required tethering that much of those other vendors require. So you can really sort of own your own cloud or have that cloud come to wherever you need it within your overall. I. T. >>Can I tether to a public cloud if I want to. >>Yes. The cloud services like many other cloud services can interconnect together, so no issue, if you want to run or even do fail over between public cloud or on premises, it's all how you want to set it up. But that connection to public cut again through Green Lake is done at that cloud services level. Uh you know where you would connect one of the screen, like lighthouse systems to the public cloud three services. >>Okay, so maybe we talk a little bit about the use cases in a minute, but but how flexible is this? How do I configure Lighthouse? You know what what comes standard? What what what what are my options? >>Yes, so we've designed it in a very modular fashion so that people can really configure it to whatever their needs are at any given location. So there's a basic set of modules that align to a lot of the compute and storage instances that people are familiar with from all of the cloud providers, you simply tell us which workloads you want to be running on it and how much capacity you want and that will get configured and deployed to that given site. In terms of the different types, we have what we're calling to series or a set of series that are available for this to meet different sets of needs, one being more mainstream for broad use cases that people need virtualized container, any other type of enterprise workloads and another more technically focused with higher performance networking. For higher performance deployments, you can choose which of those fits your needs for those given areas. >>So maybe you could talk a little bit more about the workloads and what specifically is uh supported and how they get deployed. >>Again, all of it is managed and run through Green Lake Central. That's our one location where people can go to watch these things manage them. You can run container as a service VM as a service as needed on these different platforms. You can actually mix and match those as well. So one of these platforms can run multiple of those and you can vary the mix of those as your business needs change over time. So think of it as a very flexible way to manage this, which is really what cloud native is all about, having that flexibility to run those workloads wherever and however you need. In addition, we can build more advanced type of solutions on top of those sort of foundational capabilities with things like HPC is a service and collapses a service to better enable clients to deploy any of their given enterprise workloads. >>John what about the security model for lighthouse? Um, that's obviously a big deal. Everybody's talking about these days. It can't open the, the news without seeing some kind of, you know, hack de jure, how does Lighthouse operate in the, you know, secure environment? >>Well, you know, first of all, there's sort of a new standard that was established, um, you know, within these cloud operating models and HPV was leading in terms of infrastructure innovation with our Silicon Root of Trust, where we came out with the world's most secure infrastructure a few years ago. And what we're doing now, since this is a full platform and integrated system will be extending that capability beyond just how we create a root of trust in our manufacturing facilities to ensure that it's secure. Running it within the infrastructure itself, will be extending that vertically up into the software stacks of containers and VMS sort of using that root of trust up to make sure everything's secure in that sense. And then eventually up to the workloads themselves. So by being able to go back to that root of trust, it really makes a big difference in how people can run things in an enterprise secure way. Great innovations continued and one of our big focus areas throughout this year. >>So where does it fit in the portfolio, john I mean, how is it uh, compliment or how is it different from, you know, the typical HP systems, the hardware and software that we're used to? >>You might think of this as sort of a best of bringing together all the great innovations of H P D. You know, we we've got awesome infrastructure that we lead for many, many years. We've got, you know, great more cloud native software that's being developed. We've got great partnerships that we've got with a lot of the leading vendors out there. This allows us to bring all of those things together into an integrated platform that is really intended to run these cloud native services. So uh it builds on top of that leadership fits uh in that sense with the portfolio, but it's ultimately about how it allows us to run and extend our green light capabilities as we know them, to make them more uh more consumable if you want to call it for a lot of our enterprise clients and whatever location. So >>when would I when would I use Lighthouse? And when would I use sort of a traditional H P E system? >>Again, it's a matter of which level of integration people want. Cloud is really also in terms of experience about simplifying what people are purchasing and making it easier for them to consume easier for them to roll out a lot of these things. That's when you'd want to purchase a Lighthouse versus our other infrastructure products, we'll always have those leading infrastructure products where people can put together everything exactly the way that they want and go through the qualification and certification of a lot of those workloads or they can go ahead and select this green like Lighthouse, where they have a lot of these things available in a catalog. We do validation of, of the workloads and, and uh, platform systems so that it's all sort of ready for people to roll out in a much more secure, tested and agile fashion. >>So if I have a cloud first strategy, but I don't want to put it in the public cloud, but I want that cloud experience. Uh, and I want to go fast. It sounds like Lighthouse is that I'm the perfect customer for for Lighthouse, >>precisely. You know, this is taking that cloud experience that people are wanting the simplicity of those deployments and making it where it can come to them in whichever location that they want. You know, running it on a consumption basis so that it's a lot easier wait for them to go ahead and manage and deploy those things with out a lot of the internal qualifications and certifications that they had to do over the years >>versus okay. But or, and or if I want to customize it, maybe I want to, maybe I'm a channel partner. I want to bring some of my own value. I got a specific use case that's not covered by something like Lighthouse. That's where I would go with the more traditional infrastructure, >>correct? Yes. If anyone wants to do customization, we've got a great set of products for that. We really want to use Lighthouses, a mechanism for us to standardize and focus on more enabling these broader cloud capabilities for crime >>and Lighthouse. Uh Talk a little bit more about the automation that that I get, you know, things like patching and software updates that's sort of included in this integrated system. >>Is that correct? Absolutely. You know, when, when when people think about, you know, managing workloads in the cloud, they don't worry about taking care of from we're updating and a lot of those things that's all taken care of by the provider. So uh in that same experience, Lighthouse comes with all of the firmware, updating, all of the software, updating all included, all managed through our Green Lake managed services teams. So that's just part of how the system takes care of itself. Um You know, that's a new level of capability and experience that's consistent with all other cloud providers >>and that's that's okay, so that's that's something that is a managed service. Um So let's say I have a lighthouse on prem, you're gonna you're gonna that managed services doing all the patching and the releases and the updates and that lives that lives in the cloud, that lives in hp, that lives in my prem. >>Well, yeah, ultimately it all goes through Green Lake Central and it's managed. Um you know, all of those deployments are are automated in nature so that people don't have to worry about them. Um There's multiple ways that that can get delivered to them. We have some automation and control plane technology that brings that all together for them. Um You know, it can vary based on the client on their degree of of how they want to manage some of that, but it's all taken care of for them. >>And you've got Green Lake in the name and my to infer from that that it's sort of dovetails in is one of the puzzles in the Green Lake mosaic. >>Yeah, exactly. So think of think of Green Lake as our broader initiative for everything cloud and how do we start enabling not only these cloud services, but make it easier for people to deploy those and consume them, consume them wherever they need. And this is the enablement piece. This is that portion of green light that helps them enable that connected to green like Central where they can manage everything centrally. And then we've got that broad catalog of services available. >>And when can I get it? When you go G. A. >>Yes. So it'll july is when our first set of shipments and availability are there. So just a very few days after you discover here, and we'll expand the portfolio over time with more of a mainstream version early, more technical or performance oriented ones available soon thereafter. And we've got plans even for edge type offerings, uh more in the, in the future as well. So a case where we'll continue to build and expand more targeting these platforms to folks needs whether their enterprise or maybe there are vertical offerings that they want in terms of how they move all these things together. Think of Telco is a great case where people want this. Healthcare is another area where we can add the value of these integrated systems in a very purpose built way. >>Can I ask you what, like what's inside, you know, what, what can I get in terms of, you know, basic infrastructure, compute storage, networking, what are my options, >>all of the above. You know, what we'll do is we'll we'll go through the basic selection of all of that greatest hits uh within our complete portfolio. Pulling together, give you a few simple choices, you know, you think about it as you want, general purpose compute modules you might want compute optimized or memory optimized modules. Each of those are simple choices that you'll make that come together underlying all that are the great infrastructure pieces that you've known for years, but we take care of simplifying that for you so you don't have to worry about those details. >>Great well, john, congratulations on the new new product and uh and thank you for sharing the the the update with the cube. >>Thank you very much appreciate. >>All right, thank you for watching the cubes coverage of HP discover 2021. My name is Dave Volonte. Keep it right there right back with more coverage. Right after this short break. >>Yeah. Mhm.

>>Thank you for joining us for accelerate next event. I hope you're enjoying it so far. I know you've heard about the industry challenges the I. T. Trends HP strategy from leaders in the industry and so today what we wanna do is focus on going deep on workload solutions. So in the most important workload solutions, the ones we always get asked about and so today we want to share with you some best practices, some examples of how we've helped other customers and how we can help you. All right with that. I'd like to start our panel now and introduce chris idler, who's the vice president and general manager of the element. Chris has extensive solution expertise, he's led HP solution engineering programs in the past. Welcome chris and Mark Nickerson, who is the Director of product management and his team is responsible for solution offerings, making sure we have the right solutions for our customers. Welcome guys, thanks for joining me. >>Thanks for having us christa. >>Yeah, so I'd like to start off with one of the big ones, the ones that we get asked about all the time, what we've been all been experienced in the last year, remote work, remote education and all the challenges that go along with that. So let's talk a little bit about the challenges that customers have had in transitioning to this remote work and remote education environments. >>Uh So I I really think that there's a couple of things that have stood out for me when we're talking with customers about V. D. I. Um first obviously there was a an unexpected and unprecedented level of interest in that area about a year ago and we all know the reasons why, but what it really uncovered was how little planning had gone into this space around a couple of key dynamics. One is scale. Um it's one thing to say, I'm going to enable V. D. I. For a part of my work force in a pre pandemic environment where the office was still the central hub of activity for work. It's a completely different scale. When you think about okay I'm going to have 50, 60, 80, maybe 100 of my workforce now distributed around the globe. Um Whether that's in an educational environment where now you're trying to accommodate staff and students in virtual learning, Whether that's in the area of things like Formula one racing, where we had the desire to still have events going on. But the need for a lot more social distancing. Not as many people able to be trackside but still needing to have that real time experience. This really manifested in a lot of ways and scale was something that I think a lot of customers hadn't put as much thought into. Initially the other area is around planning for experience a lot of times the V. D. I. Experience was planned out with very specific workloads are very specific applications in mind. And when you take it to a more broad based environment, if we're going to support multiple functions, multiple lines of business, there hasn't been as much planning or investigation that's gone into the application side. And so thinking about how graphically intense some applications are. Uh one customer that comes to mind would be Tyler I. S. D. Who did a fairly large rollout pre pandemic and as part of their big modernization effort, what they uncovered was even just changes in standard Windows applications Had become so much more graphically intense with Windows 10 with the latest updates with programs like Adobe that they were really needing to have an accelerated experience for a much larger percentage of their install base than they had counted on. So, um, in addition to planning for scale, you also need to have that visibility into what are the actual applications that are going to be used by these remote users? How graphically intense those might be. What's the logging experience going to be as well as the operating experience. And so really planning through that experience side as well as the scale and the number of users is kind of really two of the biggest, most important things that I've seen. >>You know, Mark, I'll just jump in real quick. I think you covered that pretty comprehensively there and it was well done. The a couple of observations I've made, one is just that um, V. D. I suddenly become like mission critical for sales. It's the front line, you know, for schools, it's the classroom, you know, that this isn't Uh cost cutting measure or uh optimization in IT. measure anymore. This is about running the business in a way it's a digital transformation. One aspect of about 1000 aspects of what does it mean to completely change how your business does. And I think what that translates to is that there's no margin for error, right? You know, you really need to to deploy this in a way that that performs, that understands what you're trying to use it for. That gives that end user the experience that they expect on their screen or on their handheld device or wherever they might be, whether it's a racetrack classroom or on the other end of a conference call or a boardroom. Right? So what we do in the engineering side of things when it comes to V. D. I. R. Really understand what's a tech worker, What's a knowledge worker? What's the power worker? What's a gP really going to look like? What time of day look like, You know, who's using it in the morning, Who is using it in the evening? When do you power up? When do you power down? Does the system behave? Does it just have the, it works function and what our clients can can get from H. P. E. Is um you know, a worldwide set of experiences that we can apply to, making sure that the solution delivers on its promises. So we're seeing the same thing you are christa, We see it all the time on beady eye and on the way businesses are changing the way they do business. >>Yeah. It's funny because when I talked to customers, you know, one of the things I heard that was a good tip is to roll it out to small groups first so you can really get a good sense of what the experiences before you roll it out to a lot of other people and then the expertise. Um It's not like every other workload that people have done before. So if you're new at it make sure you're getting the right advice expertise so that you're doing it the right way. Okay. One of the other things we've been talking a lot about today is digital transformation and moving to the edge. So now I'd like to shift gears and talk a little bit about how we've helped customers make that shift and this time I'll start with chris. >>All right Hey thanks. Okay so you know it's funny when it comes to edge because um the edge is different for every customer and every client and every single client that I've ever spoken to of. H. P. S. Has an edge somewhere. You know whether just like we were talking about the classroom might be the edge. But I think the industry when we're talking about edges talking about you know the internet of things if you remember that term from not too not too long ago you know and and the fact that everything is getting connected and how do we turn that into um into telemetry? And I think Mark is going to be able to talk through a a couple of examples of clients that we have in things like racing and automotive. But what we're learning about Edge is it's not just how do you make the Edge work? It's how do you integrate the edge into what you're already doing? And nobody's just the edge. Right. And so if it's if it's um ai ml dl there that's one way you want to use the edge. If it's a customer experience point of service, it's another, you know, there's yet another way to use the edge. So, it turns out that having a broad set of expertise like HP does, um, to be able to understand the different workloads that you're trying to tie together, including the ones that are running at the, at the edge. Often it involves really making sure you understand the data pipeline. What information is at the edge? How does it flow to the data center? How does it flow? And then which data center, which private cloud? Which public cloud are you using? Um, I think those are the areas where we, we really sort of shine is that we we understand the interconnectedness of these things. And so, for example, Red Bull, and I know you're going to talk about that in a minute mark, um the racing company, you know, for them the edges, the racetrack and, and you know, milliseconds or partial seconds winning and losing races, but then there's also an edge of um workers that are doing the design for the cars and how do they get quick access? So, um, we have a broad variety of infrastructure form factors and compute form factors to help with the edge. And this is another real advantage we have is that we we know how to put the right piece of equipment with the right software. And we also have great containerized software with our admiral container platform. So we're really becoming um, a perfect platform for hosting edge centric workloads and applications and data processing. Uh, it's uh um all the way down to things like a Superdome flex in the background. If you have some really, really, really big data that needs to be processed and of course our workhorse reliance that can be configured to support almost every combination of workload you have. So I know you started with edge christa but and and we're and we nail the edge with those different form factors, but let's make sure, you know, if you're listening to this, this show right now, um make sure you you don't isolate the edge and make sure they integrated with um with the rest of your operation, Mark, you know, what did I miss? >>Yeah, to that point chris I mean and this kind of actually ties the two things together that we've been talking about here at the Edge has become more critical as we have seen more work moving to the edge as where we do work, changes and evolves. And the edge has also become that much more closer because it has to be that much more connected. Um, to your point talking about where that edge exists, that edge can be a lot of different places. Um, but the one commonality really is that the edge is an area where work still needs to get accomplished. It can't just be a collection point and then everything gets shipped back to a data center back to some other area for the work. It's where the work actually needs to get done. Whether that's edge work in a used case like V. D. I. Or whether that's edge work. In the case of doing real time analytics, you mentioned red bull racing, I'll bring that up. I mean, you talk about uh, an area where time is of the essence, everything about that sport comes down to time. You're talking about wins and losses that are measured as you said in milliseconds. And that applies not just to how performance is happening on the track, but how you're able to adapt and modify the needs of the car, adapt to the evolving conditions on the track itself. And so when you talk about putting together a solution for an edge like that, you're right. It can't just be, here's a product that's going to allow us to collect data, ship it back someplace else and and wait for it to be processed in a couple of days, you have to have the ability to analyze that in real time. When we pull together a solution involving our compute products are storage products or networking products. When we're able to deliver that full package solution at the edge, what you see results like a 50 decrease in processing time to make real time analytic decisions about configurations for the car and adapting to real time test and track conditions. >>Yeah, really great point there. Um, and I really love the example of edge and racing because I mean that is where it all every millisecond counts. Um, and so important to process that at the edge. Now, switching gears just a little bit. Let's talk a little bit about um some examples of how we've helped customers when it comes to business agility and optimizing the workload for maximum outcome for business agility. Let's talk about some things that we've done to help customers with that >>mark, give it a >>shot. >>Uh, So when we, when we think about business agility, what you're really talking about is the ability to implement on the fly to be able to scale up and scale down the ability to adapt to real time changing situations. And I think the last year has been, has been an excellent example of exactly how so many businesses have been forced to do that. Um I think one of the areas that I think we've probably seen the most ability to help with customers in that agility area is around the space of private and hybrid clouds. Um if you take a look at the need that customers have to be able to migrate workloads and migrate data between public cloud environments, app development environments that may be hosted on site or maybe in the cloud, the ability to move out of development and into production and having the agility to then scale those application rollouts up, having the ability to have some of that. Um some of that private cloud flexibility in addition to a public cloud environment is something that is becoming increasingly crucial for a lot of our customers. >>All right, well, we could keep going on and on, but I'll stop it there. Uh, thank you so much Chris and Mark. This has been a great discussion. Thanks for sharing how we help other customers and some tips and advice for approaching these workloads. I thank you all for joining us and remind you to look at the on demand sessions. If you want to double click a little bit more into what we've been covering all day today, you can learn a lot more in those sessions. And I thank you for your time. Thanks for tuning in today.

>>Hi and thanks for joining us today. I'm Arwa Qadoura, vice president of Goto Market for HP Green Lake. In this session, we're going to explore a few of the ways we're bringing the cloud to your data center and co locations, especially for your most demanding workloads. We'll show a few examples of how we do this and how we can help you with HP. Green Lake with HP Green Lake were leading the market for on premises and hybrid cloud. With a decade of experience and over 1000 customers, we've been able to continue enriching our portfolio of services, leveraging the vast input from our customers. And what we're hearing now is they want us to take on the apse and data that are most critical to run their business on our customers. Love the cloud experience and wanted available everywhere, including their data center and Coehlo H. P E. Green Lake is the cloud that comes to you. We deliver a cloud experience for your >>infrastructure and workloads in your data center or co location and at the edge. HP Greenlee Cloud Services offer consumption based economics and scalability for a wide range of platforms. All managed for you by HP or by a rich ecosystem of partners. In June, we brought the Self service point and click experience of the cloud to our new services for containers, virtual machines and ml apps, and dramatically sped up the delivery of our infrastructure services with standardized building blocks T shirt sized that you can get in ASL. It'll us 14 days and a few weeks ago we added V. D. I as a service to meet the strong demand to help your employees around the globe work securely wherever they may be. Today we will look at four examples of how we provide the cloud experience for the workloads that are most critical to run your business, and we'll give a few industry examples. First, we'll talk about helping financial institutions manage risk and compliance. We'll talk about improving health care with a secure, flexible electronic health records platform, optimizing production and delivery for manufacturing with S A P Hana and answering your biggest questions with high performance computing. When we talk about thes demanding workloads, whether we're talking about inventory management, payment processing, medical imaging or any additional ones you see here, two things typically hold true. First, they're very difficult to move to the public cloud due to the challenges around Leighton See and Performance data Gravity I P. And Privacy Protection and the data entanglement with many other APS. And secondly, they require app specific expertise to implement and integrate continual performance optimization, strong resiliency, security and compliance management. And container is a shin to achieve mobility. These air tough to meet but essential toe have. If you're betting your business on these workloads, we've helped our customers meet these challenges and requirements in the data center. Let's start our discussion about these workloads with managing risk and compliance. Risk and compliance management require analyzing huge amounts of data streaming in real time through the organization, and Splunk is widely used for this as the scales. We have found that often infrastructure is the bottleneck and organizations develop blind spots. Due to this, this means they could only see some of the data. Scaling and making changes is also a slow process with such a complex set of infrastructure, and I T resources often don't have the skills to manage new platforms such as container based implementations. We've looked at the situation and built a differentiated architecture er to solve this challenge. The solution is container based, using the HP as moral container platform. It's an infrastructure that is tuned for Splunk and resulted in a big reduction in the total servers needed. It's delivered as a service through HP Green Lake on premises fully managed to make adoption fast and to cover the skill gaps, I t may have the outcomes. We tested our approach and found the dramatic improvements you see here. Infrastructure efficiency improved dramatically, with 17 times increase in throughput and 12 Splunk indexers per host, up from one. Compliance and insights into risks improved from removing the blind spots with a 10 times reduction and infrastructure needed to ingest up to 8.7 terabytes per host per day. And customers have a greatly simplified I T operating model by moving to HP Green Lake fully managed so that HP takes care of the container and infrastructure management. Next, let's talk about improving health >>care with a secure, flexible e HR platform. The global pandemic is putting an extraordinary burden on an industry whose budgets and resources are already stretched to the limits and H P can help health systems in medical research institutions around the globe recognize the value of HP Green Lake for our infrastructure as a service needs scalable storage for high resolution medical imaging, high performance compute for medical research and v. D. I. For the digital workplace. Today we are pleased to introduce the platform for epics E H R System. This is a full platform. As a service offering for Elektronik Health Records, the service supports the epic software stack with validated HP infrastructure and epic certified expertise to run the full environment for you. This enables health care institutions toe offload the complexities of moving to and operating a modern epic platform, reducing cost risk and time with a fully managed paper use cloud service in their own data center or cola facility. Now our customers could focus on delivering life affecting healthcare outcomes and not on the nuances of daily technical operations and upgrades. So how is HP qualified? Think back to the requirements we talked about for expertise. We have a 25 year partnership with EPIC, and over 65% of epic customers use RHP infrastructure, including storage servers, software and networking. We know epic and are trusted by epic customers. We have a dedicated program management office with focused epic resources to help health care systems make the most of their epic platform improving their quality of care, financial performance, work, low efficiency and, most importantly, their patient outcomes. The next workload I'd like to cover is S a P Hana s A P Hannah runs many if not most manufacturing organizations, including our very own. Here in h P s A P finds that 70% of customers are looking to remain on premises with S A P Hana as they migrate toe s four For the reasons we discussed earlier performance, resiliency, security, I protection and control. And we're proud to be one of Aesop's most critical technology partners, running approximately 40% of the on Prem s a p customer base. Thes customers trust HP infrastructure to run their critical s a p environment and we're excited to extend the value into a fully managed on Prem Cloud service. Today we bring the cloud benefits of HP Green Lake toe s a P Hannah customers on premises in two ways. Standard hp Green Lake uses S a P certified technology from HP with the scalable paper use model with H P's outstanding support and management services ready to meet the demanding requirements of S A P. Hana. And now we are working with S a P for the S A P Hana Enterprise Cloud Customer Edition which is powered by HP Green Lake and fully managed by S A P for you, which is the sap cloud in your data center. HPD point next services are essential to our customers. One of the reasons that customers choose HP for workloads such as SAP is our expertise from strategy all the way to operation with advisory and professional services specific to your application. We help you succeed. HP understands migration toe s A. P s four hana and as the leading technology vendor of S a P Hannah Infrastructure and a large s a p Hannah customer ourself, we have the expertise within our advisory and professional services. To ensure your success as you move to s four, HP has delivered over 1500 s, a p Hana consulting projects and HP point Next services has the expertise globally to accelerate time to value and mitigate your risk. And lastly, HP offers a center of excellence Experience for S a P. Hannah providing specialized support from our experts Toe optimize operations for S a p environments The last and maybe the most demanding workload that will cover today is HPC high performance computing. Today we are announcing H p e Green Lake for HPC. This is an exciting time as we bring our cloud services to HPC wherever you need it. As the leader in HPC, we have significant i p To give HPC customers. We offer the speed and scalability that you need with components such as high speed interconnect, high density compute platforms and software to manage HPC operations and performance. And unlike other technology companies, thes are all from HP, fully integrated, fully supported and can be fully managed by HP. And we've built an ecosystem of I S V applications that we closely collaborate with to make HPC run seamlessly high. Performance computing can get complex with HP. Green Lake for HPC will simplify the approach without taking away any of the power. Pick the starting point that fits your use case small, medium or large, and get started. These building blocks are HPC optimized, meaning you could bring the technology that we use to predict weather or decode the human genome to your everyday APS. No capital up front, pay for what you use and the implementation is managed for you. With our building block approach, we can eliminate the long design and implementation phase, which could take months or even a year over time as your clusters grow, modernize and change H p e Green Lake Capacity management helps you always have capacity ready ahead of your needs. What is the experience with H. P Green Lake for HPC, you order, we deliver in as little as 14 days. We install your systems and you can quickly deploy your HPC APS. With the new point and click service experience, researchers and analysts can get access to their HPC cluster resources from the self service portal without putting. I t in the middle of every request we manage the clusters for you. Take care of upgrades, performance and growth, and you pay based on what you use. Simplifying HPC economics and operations. This is how we bring a cloud to your most demanding workloads. So we've covered a lot, and the big question is, so what? How do you benefit analysts have found that with HP Green Lake, you save 30 to 40% on total cost of ownership by eliminating over provisioning, which on its own is huge. But the additional benefits are equally important to our customers. You can speed deployments of projects by 75% cut your risk with 85% less unplanned downtime and improve ICTY productivity by 40% due to the services, including that greatly simplify I t operations. What's next? If you want to learn more about how we bring cloud services for your most demanding workloads, whether they're for risk management, E H. R s, a, p or HPC, or for other workloads you depend on us for Please engage your HP account team or your HP partner. If you're already are a customer for HP Green Lake, thank you. And we're ready to globally help you with your next project. And, of course, please visit us at p e dot com. Backslash Green Lake Thanks for joining me today.

>>C G technology is focused on data where we have long believed that data is in our DNA. We help maximize humanity's potential by delivering world class, precision engineered data solutions developed through sustainable and profitable partnerships. Included in our offerings are hard disk drives. As I'm sure many of you know, ah, hard drive consists of a slider also known as a drive head or transducer attached to a head gimbal assembly. I had stack assembly made up of multiple head gimbal assemblies and a drive enclosure with one or more platters, or just that the head stacked assembles into. And while the concept hasn't changed, hard drive technology has progressed well beyond the initial five megabytes, 500 quarter inch drives that Seagate first produced. And, I think 1983. We have just announced in 18 terabytes 3.5 inch drive with nine flatters on a single head stack assembly with dual head stack assemblies this calendar year, the complexity of these drives further than need to incorporate Edge analytics at operation sites, so G Edward stemming established the concept of continual improvement and everything that we do, especially in product development and operations and at the end of World War Two, he embarked on a mission with support from the US government to help Japan recover from its four time losses. He established the concept of continual improvement and statistical process control to the leaders of prominent organizations within Japan. And because of this, he was honored by the Japanese emperor with the second order of the sacred treasure for his teachings, the only non Japanese to receive this honor in hundreds of years. Japan's quality control is now world famous, as many of you may know, and based on my own experience and product development, it is clear that they made a major impact on Japan's recovery after the war at Sea Gate. The work that we've been doing and adopting new technologies has been our mantra at continual improvement. As part of this effort, we embarked on the adoption of new technologies in our global operations, which includes establishing machine learning and artificial intelligence at the edge and in doing so, continue to adopt our technical capabilities within data science and data engineering. >>So I'm a principal engineer and member of the Operations and Technology Advanced Analytics Group. We are a service organization for those organizations who need to make sense of the data that they have and in doing so, perhaps introduce a different way to create an analyzed new data. Making sense of the data that organizations have is a key aspect of the work that data scientist and engineers do. So I'm a project manager for an initiative adopting artificial intelligence methodologies for C Gate manufacturing, which is the reason why I'm talking to you today. I thought I'd start by first talking about what we do at Sea Gate and follow that with a brief on artificial intelligence and its role in manufacturing. And I'd like them to discuss how AI and machine Learning is being used at Sea Gate in developing Edge analytics, where Dr Enterprise and Cooper Netease automates deployment, scaling and management of container raised applications. So finally, I like to discuss where we are headed with this initiative and where Mirant is has a major role in case some of you are not conversant in machine learning, artificial intelligence and difference outside some definitions. To cite one source, machine learning is the scientific study of algorithms and statistical bottles without computer systems use to effectively perform a specific task without using explicit instructions, relying on patterns and inference Instead, thus, being seen as a subset of narrow artificial intelligence were analytics and decision making take place. The intent of machine learning is to use basic algorithms to perform different functions, such as classify images to type classified emails into spam and not spam, and predict weather. The idea and this is where the concept of narrow artificial intelligence comes in, is to make decisions of a preset type basically let a machine learn from itself. These types of machine learning includes supervised learning, unsupervised learning and reinforcement learning and in supervised learning. The system learns from previous examples that are provided, such as images of dogs that are labeled by type in unsupervised learning. The algorithms are left to themselves to find answers. For example, a Siris of images of dogs can be used to group them into categories by association that's color, length of coat, length of snout and so on. So in the last slide, I mentioned narrow a I a few times, and to explain it is common to describe in terms of two categories general and narrow or weak. So Many of us were first exposed to General Ai in popular science fiction movies like 2000 and One, A Space Odyssey and Terminator General Ai is a I that can successfully perform any intellectual task that a human can. And if you ask you Lawn Musk or Stephen Hawking, this is how they view the future with General Ai. If we're not careful on how it is implemented, so most of us hope that is more like this is friendly and helpful. Um, like Wally. The reality is that machines today are not only capable of weak or narrow, a I AI that is focused on a narrow, specific task like understanding, speech or finding objects and images. Alexa and Google Home are becoming very popular, and they can be found in many homes. Their narrow task is to recognize human speech and answer limited questions or perform simple tasks like raising the temperature in your home or ordering a pizza as long as you have already defined the order. Narrow. AI is also very useful for recognizing objects in images and even counting people as they go in and out of stores. As you can see in this example, so artificial intelligence supplies, machine learning analytics inference and other techniques which can be used to solve actual problems. The two examples here particle detection, an image anomaly detection have the potential to adopt edge analytics during the manufacturing process. Ah, common problem in clean rooms is spikes in particle count from particle detectors. With this application, we can provide context to particle events by monitoring the area around the machine and detecting when foreign objects like gloves enter areas where they should not. Image Anomaly detection historically has been accomplished at sea gate by operators in clean rooms, viewing each image one at a time for anomalies, creating models of various anomalies through machine learning. Methodologies can be used to run comparative analyses in a production environment where outliers can be detected through influence in an automated real Time analytics scenario. So anomaly detection is also frequently used in machine learning to find patterns or unusual events in our data. How do you know what you don't know? It's really what you ask, and the first step in anomaly detection is to use an algorithm to find patterns or relationships in your data. In this case, we're looking at hundreds of variables and finding relationships between them. We can then look at a subset of variables and determine how they are behaving in relation to each other. We use this baseline to define normal behavior and generate a model of it. In this case, we're building a model with three variables. We can then run this model against new data. Observations that do not fit in the model are defined as anomalies, and anomalies can be good or bad. It takes a subject matter expert to determine how to classify the anomalies on classify classification could be scrapped or okay to use. For example, the subject matter expert is assisting the machine to learn the rules. We then update the model with the classifications anomalies and start running again, and we can see that there are few that generate these models. Now. Secret factories generate hundreds of thousands of images every day. Many of these require human toe, look at them and make a decision. This is dull and steak prone work that is ideal for artificial intelligence. The initiative that I am project managing is intended to offer a solution that matches the continual increased complexity of the products we manufacture and that minimizes the need for manual inspection. The Edge Rx Smart manufacturing reference architecture er, is the initiative both how meat and I are working on and sorry to say that Hamid isn't here today. But as I said, you may have guessed. Our goal is to introduce early defect detection in every stage of our manufacturing process through a machine learning and real time analytics through inference. And in doing so, we will improve overall product quality, enjoy higher yields with lesser defects and produce higher Ma Jin's. Because this was entirely new. We established partnerships with H B within video and with Docker and Amaranthus two years ago to develop the capability that we now have as we deploy edge Rx to our operation sites in four continents from a hardware. Since H P. E. And in video has been an able partner in helping us develop an architecture that we have standardized on and on the software stack side doctor has been instrumental in helping us manage a very complex project with a steep learning curve for all concerned. To further clarify efforts to enable more a i N M l in factories. Theobald active was to determine an economical edge Compute that would access the latest AI NML technology using a standardized platform across all factories. This objective included providing an upgrade path that scales while minimizing disruption to existing factory systems and burden on factory information systems. Resource is the two parts to the compute solution are shown in the diagram, and the gateway device connects to see gates, existing factory information systems, architecture ER and does inference calculations. The second part is a training device for creating and updating models. All factories will need the Gateway device and the Compute Cluster on site, and to this day it remains to be seen if the training devices needed in other locations. But we do know that one devices capable of supporting multiple factories simultaneously there are also options for training on cloud based Resource is the stream storing appliance consists of a kubernetes cluster with GPU and CPU worker notes, as well as master notes and docker trusted registries. The GPU nodes are hardware based using H B E l 4000 edge lines, the balance our virtual machines and for machine learning. We've standardized on both the H B E. Apollo 6500 and the NVIDIA G X one, each with eight in video V 100 GP use. And, incidentally, the same technology enables augmented and virtual reality. Hardware is only one part of the equation. Our software stack consists of Docker Enterprise and Cooper Netease. As I mentioned previously, we've deployed these clusters at all of our operations sites with specific use. Case is planned for each site. Moran Tous has had a major impact on our ability to develop this capability by offering a stable platform in universal control plane that provides us, with the necessary metrics to determine the health of the Kubernetes cluster and the use of Dr Trusted Registry to maintain a secure repository for containers. And they have been an exceptional partner in our efforts to deploy clusters at multiple sites. At this point in our deployment efforts, we are on prem, but we are exploring cloud service options that include Miranda's next generation Docker enterprise offering that includes stack light in conjunction with multi cluster management. And to me, the concept of federation of multi cluster management is a requirement in our case because of the global nature of our business where our operation sites are on four continents. So Stack Light provides the hook of each cluster that banks multi cluster management and effective solution. Open source has been a major part of Project Athena, and there has been a debate about using Dr CE versus Dr Enterprise. And that decision was actually easy, given the advantages that Dr Enterprise would offer, especially during a nearly phase of development. Cooper Netease was a natural addition to the software stack and has been widely accepted. But we have also been a work to adopt such open source as rabbit and to messaging tensorflow and tensor rt, to name three good lab for developments and a number of others. As you see here, is well, and most of our programming programming has been in python. The results of our efforts so far have been excellent. We are seeing a six month return on investment from just one of seven clusters where the hardware and software cost approached close to $1 million. The performance on this cluster is now over three million images processed per day for their adoption has been growing, but the biggest challenge we've seen has been handling a steep learning curve. Installing and maintaining complex Cooper needs clusters in data centers that are not used to managing the unique aspect of clusters like this. And because of this, we have been considering adopting a control plane in the cloud with Kubernetes as the service supported by Miranda's. Even without considering, Kubernetes is a service. The concept of federation or multi cluster management has to be on her road map, especially considering the global nature of our company. Thank you.

>>from around the globe. It's the Cube covering HP Discover Virtual experience Brought to you by HP >>Hey, welcome back to the Cube's coverage of HP Discover. 2020. The virtual experience Pradeep Kumar is here. He's the senior vice president and general manager of Point Next services for our things in Houston. Welcome. >>Very good. It's a Z usual. It's warm and sunny, so I'm good. Thank you. Thanks for having me. >>You're very welcome. So now let's set this up. So when HP split into two companies formed H, P E and HP, it did a spin merge with E DS. It's large services business, and one of the things that came out of that was the point. Next services brand and group within HP, and this was very important. I want to share this with our audience because it really streamlined H H PS services Messaging is offering. It opened up new partnering opportunities and produced. This is really the business that you run. So maybe add any color to my little narrative upfront and talk about your role there. >>No, absolutely. I think what HP wanted to make sure is they have ah white portfolio of services. So also, we we have advisory and professional services as well as operational services in the back end. So we just streamline everything for the customer from a services point of view. And that's what the next stands for. You described it pretty validated >>now as you as you know, because you can imagine a lot of these virtual events that we've been doing. The pandemic, of course, has been a topic of discussion. But really, the discussion thus far has been on. Okay, how are you handling it? What kinds of things are you doing to support clients? And I want to understand that from you. But now we're at a point. We're really talking about the post isolation economy and what that all means. So what are you seeing for deep in your client base? >>Yeah, the point you made is a very critical one, right? During the pandemic, everybody Waas Hey, can I business continuity plans, right? Can I manage my business in that? In that scenario day? Really? Preparation was everything right? Things that we take it for granted, like remote working capabilities, parts having parts at the right places. Right now we have more pastors to describe. It's more. What is the new normal? What is business going to look like in the future? And how can technology help you to achieve that, right, If I give an example off, you know how many people were working from offices, including HB substantial portion off the team Members of the workforce was working from an office. Now probably about 1/3 will be working from the office, and about one toe probably will work from home. And there's another one who will come to the office in a infrequent basis for collaboration. So the whole landscape off the new normal has changed forever. >>So what I'd like to do for Deep is if we could bring up some data that we have and to really just set the context and drill in a little bit in terms of what you guys are seeing you again, point next is critical. Not only was it a business that Antonio Neri kind of ran the services business, so he understands it well, but it really is the touch point to customers. Now, when you talk to CIOs, this is data from our data partner CTR. In a survey of 700 CIOs and I t pros is that what they see is the shape of the recovery. And you can see here 44% expect a U shaped recovery. Now you've got in the 16%. There's a tailwind, businesses, their health supplies, video conferencing. You work from home or remote workers. What you were talking about, these companies actually saw a tailwind of their business. And then, of course, you've got essential businesses, and you've got, you know, businesses are just now coming back, and then you've got businesses that are really struggling Airlines, hospitality restaurants, mall. So it's really a very much fragmented recovery. So I'm wondering what you guys are specifically seeing because you are so close to so many of these customers. >>Yeah, so we see that mix bag right? So I feel like whether it's a UI or where they it's a U shaped recovery, it's sort of a more point, right, because it's not going to be the same as before. The right things have changed. Even if you are, um, in a particular business, let me take just It's the worship right house of worship, right? So it could be a temple, a synagogue, church, a mosque. It doesn't matter, right? They had a particular constituency that we had before. Who used to come? Let's take a church, for example, Who used to come to mass on A on a Sunday, Right. And in my case, my family would get out and go out there to the Mass at the last minute, right? I have 22 teenage boys, and, you know, my wife wants to go on time to mass, but we will never make it. You know, we'll be last minute worshippers going in there. And then, um, you know, find appeal, dissident. Right now, if we look at it, how it has changed for these worshippers, it's very different now, right? A set of worshippers >>who, uh, >>who watch it live stream that comes from the church will never go back or very go back, very seldom. And then there's a set of worshippers who want to go back. But now they got to sign up a week early, which particular mass they're going to and, um, and identify a pew to sit on. So the whole thing has changed for for a company for its customers the way people would consume in the future. And people who are ready for this and have managed and be prepared make use of that opportunity. And for my church, for example, in this case, I think to survival is the constituents donations on a weekly basis, right? So have they're being very digital, you know, My church, unfortunately, was very digital 100% digital. Therefore, they didn't see a huge deep on their collections, which was survival for them. So if you equate that Dave into different businesses, right, it's changed in many different ways. And as you pointed out in that shot, it's different from industry to industry business to business on how you cope up with it, how you prepare for it. Um, how you use technology for your advantage would be the winners and loses, >>you know, And that's a great first of all. That's a great example of houses of worship. And there are many. You're seeing sports now Major League baseball struggling to figure out what to do. It seems like basketball figured out. A lot of people have invested in Palestinians, and so, you know, you know, maybe yoga is not as good in the studio, but it's pretty good. You know, A lot of people bought R V, so there's gonna be some permanent changes, you know, to your to your point. And I wanted to show, you know, we've been thinking about Okay, what's the framework for understanding that fragmentation in the recovery? It's, you know, what is the feasibility of physical distancing? How digital are these these businesses? How essential are these businesses? I mean, there are It's a complicated situation to figure out. So again, the key is point Next has to be really close to its customers. You guys have to be digital in doing that. But are you seeing any specific patterns? Emerge? >>Yeah, I think what we're seeing is, um, you know, people working out what the new normal is right? And then saying, How do I get to that new normal? How do I take the advantage? How do I make use of that opportunity to get better? This is where I think point next services is important to talk about what is. We have got 23,000 experts around the world, right, and there's a substantial portion off advisory faults, right? Who will come and work out with you. What? That new normal A's? And what is the answer? What is the strategy that you want? What is the North Star you want to achieve? And how do you transform your whole company, your environment, into that new normal right? And how do we take you on that journey? Be there for you to taking you through that journey into the new normal to to capitalize on those opportunities? A couple of things I would point out here. Dave, I think, definitely. I think building a platform that's a child and resilient for the future, for any disruption is white, right? I think what the pandemic products is If you have a very agile platform and very resilient for any kind of disruption, you're going to be on a winner. So once you've identified what that new normal for you, I think HP point next really can help you be your trusted partner to get there. In the end, >>you know, pretty kind of BC before covert, when the Cube is doing a lot of live events. Everybody's talking about digital transformation, and of course, there are a couple of means floating around the Internet. One is the big wrecking ball going into the building, where the executives saying, You know, not in my lifetime and then you got Cove in 19 and the wrecking ball coming, and there's another one that I want to share with our audience. You guys have bring this up. It's the It's the It's the survey of who's leading the digital transformation of your company. Is that the CEO? Is that the CTO? Well, actually, no, it's it's covert 19. So this is kind of tongue in cheek. It's sort of a sad, stark reality here, but the truth is that if you're not digital now, you're going to really be in big trouble. And so there's a number of fact factors that we've seen are facets that we've seen in the marketplace clearly work from home security. You know, it's not just, ah, video conferencing, it's it's SD win on and certainly cloud so again, what are you seeing? Maybe really. Start with Cloud. What are you seeing in terms of cloud adoption and acceleration? >>Yeah, So we, uh what we're seeing really is Dave the the same priorities for a company exists, right? To get to a very efficient model, too. More than what it is, a cloud or not, I think what people are looking for is an as a service model, very about cost model for their workloads. So people are really pushing for a hybrid environment because the same, um, things exist. Some workloads are well, you know, suited for a public cloud. Some workloads are suited for an on Prem environment where you have Laden's issues, compliance issues, security issues, right. But what they want is when they have that on Prem environment, it should be as a service, a cloud like environment that you can pay for what you use. So people are really using warning to get into that hybrid environment. What Corbyn has really triggered is to do go on that transformation journey much quicker pace than what they had gone in the past, so the same logic exist. But people want to go through that journey quickly, so you are at the right place, ready for any future disruptions. I think that's what really happened in the marketplace. So we're working with lots of companies are taking them through the journey, identifying which workloads should go there and giving a hybrid environment that satisfies of their future needs. >>So I want to ask you about disruptions because I think it's I think it's a safe bet that while technology has always been a catalyst for disruption, it would appear pretty obvious that that other external factors are gonna gonna create more disruptions in this decade than perhaps technology, not the technology will still be disruptive, but things like pandemics, natural disasters. We've seen social uprising over the over the past couple of weeks. These external factors are really driving other agendas within organizations. And so where does technology fit? What are people who have data centers telling you guys in terms of their priorities and how technology and some of these external factors or maybe blending together? >>Yeah, so sometimes I think during destruction, whether it's a pandemic or, you know, I'm based in Houston way, we're so used to having, you know, floods, right hurricanes. And I think sometimes what people forget is being prepared for a pandemic or the hockey game. Simply pay. Have your candles ready, have your water bottles ready. So when the floods arrive, you at least have something to to rely on and cos continuously worn a preparedness business continue to plan state. Right, That is the number one priority to make sure that you have a business continuity plan that does not affect your business, then secondarily. Okay, um, I want to preserve my cash, and I want to make sure I am prepared and getting ready for the future where the future technology is different to what I had before. And I may not have the experts and the skills for that future technology. This is where the HP point next really helps either give people that expertise, skill set or augment with your teams to get you into that future technology. The third thing I would say is clearly, I think once you got on to that technology, our platform, how do you maintain that, right. How do you continuously optimize that? And you might need training or your people? It's ah, it's a continuous management of HCI, and your next again is available to you either toe optimal continuously optimize your new platform or, you know, educate your people on how to manage their platform. So I think you need to look at it as a continuum you have a business continue to plan? Did you try ons transform into the new environment you wanted to the 13 years Are you continuously optimizing and be ready for the next disruption around the corner? >>You know, I think the point you were making about business continuance of very important and I wonder if you could comment on a lot of CEOs have told us flat out just honestly, our business continuity plans were way to d are focused. And so now we're going to retool those. We are re tooling those It's work from home, which has this, this permanence to it, and it's being able to kind of anticipate some of these changes. The network changes are pretty significant. I have no doubt you guys are seeing that are participating in that sort of, you know, re revised or revitalized business continuity. >>Yeah, and you have to reimagine right? Askew pointed out correctly that it was all disaster. Recovery is all what you had you didn't think about. Hey, you know, maybe 50% off your workforce is not going to come back. And you need a way to collaborate among that workforce, right? Plus, as you pointed out. Connectivity is an issue, and but you got to think it's not just connectivity. You need to be able to enable your works force to be able to collaborate amongst each other, be positive and fanatical about your customers. That's crucial. People who are coming back. Think about it. Right? Um, you know, um, Kayla's access is important. Do we measure The temperature is important. How the team members are, you know, going around in your facility. You have contact Tracy. All that becomes widely important, right? And they they sound very basic, but they become might be important because a >>lot of learnings jammed into the last quarter. Yeah, a lot of a lot of learnings jammed into the last 90 days. Let me ask you if you could summarize for our audience the point next advantage. I mean, why HP point? Next? What do you guys bring? That that's unique and differential from all the other companies out there? >>Yeah, the breadth of point next is is very important. Point next, have got 23,000 employees really dedicated and fanatical about customers and customers. Well, being customers experience. So we are very outcome based on the people >>who who >>are here, who are different in a sense to find out what makes best sense for you and then take you through that transformation and there will be bumps on the road. Dave, Um, you know when you're working with a partner, is the partner really trusted? That will stay with you when there are bumps on the road and and make sure that your end goal is achieved. I think that's crucial. We are not like any other company. We're very, very motivated. Workforce. Very passionate workforce. Who wants to make sure you know customers in goals are achieved, right? So we are not we We look at it in a holistic way. They've compared to anybody else. And we have an extremely trusted partner who's there always with you. >>Last question for people watching this segment. Of course, we have the Discover virtual experience going on any any areas where they should focus on the when they hit the site. Where should they go? Any. Any sessions that you would recommend >>there are because it's work you're there are so many sessions, plenty of sessions, plenty of availability in many, many different areas, definitely if you're interested in what is the new normal connectivity for your employees bringing back employees? You want to look at those areas? There's there's ah ah lot of availability off decisions in the point next side of things that talks about how to cope up with the new normal. I would strongly recommend you look at those things because that gives you allows you to build in a very agile platform, that Brazilian for the next disruption that's going to come in. >>But pretty pretty. Kumar, Thanks so much for coming on the Cube and, uh, and have a great discover. Stay safe. Be well. >>Thank you, Dave. >>Alright, Keep it right there. Everybody. We'll be back with our next guest. The Cube's continuous coverage of HP Discover 2020. The virtual experience right back. Right after this short break. >>Yeah, yeah,

>>from around the globe. It's the Cube covering HP Discover Virtual Experience Brought to You by HP >>I Welcome to the Cube's coverage of HP Discover. 2020. The virtual experience I'm Stew Minimum course This year we're getting to talk to HP, their customers and their partners where they are around the globe. We said many times these were, you know, together, even while we're art happy to dig into a really important partnership with HP and VM Ware. Welcome to the program. First time guest on the program Christmas Satterthwaite. She is the vice president of product management for Compute with Packard Enterprise and welcome back to the program Lee Caswell. He is the vice president, product marketing for hyper converged infrastructure, her at VM Ware talking about V sphere and how that gets bundled into everything else. Chris Stanley, thanks so much for joining us. >>Thanks for having us. >>Alright, So, Chris, let's start with you. So you know, like a little bit about your background? The HP and HP relationship with VM Ware, you know, goes back to you know, the earliest days, but, you know, give us a little bit about you know where in the portfolio you focus on and and how VM Ware fit, then >>Oh, sure, sure. So I've been with H P E for 23 years now, and I'm leading the business for Alliance and Synergy and talking a little bit about the relationship with VM Ware. So we've been partnering for 19 years and we have over 200,000 joint customers together. And I'm actually often asked about the partnership and how we partner and we really partner across all fronts. So it's from the innovation for the co engineering, the working with specific customers on what solutions are good for them to servicing our customers. So we're really working across the board, and a lot of customers we work with closely are really impressed with how closely we're working together, because that's what they look for. >>Yeah, and we it's it's It's an interesting relationship to watch. Obviously, you know, long history Chris talked about on the it side, but the VM partnership is more than just the compute. Maybe gives a little bit of a view inside. You know, the joint engineering go to market efforts that you do. >>Yeah. I mean, customers always sit up straight when we talk together, because both hard companies or just raw engines of innovation and they look forward to not just the capabilities or bringing, but also the seamless way that we integrate that and make that seamless and easy for customers to digest. So certainly on the server front through V sphere, that's been a longstanding, uh, participation the VM Ware Cloud Foundation. Then this fully software defined stack became a really interesting way for us to go in partner and show joint value to customers who are trying to basically get more speed the speed. We're gonna talk about a lot that today and then finally, the confirmation that we've opened up into storage systems, right? So there's certainly a hyper converged element of it. But now what we do with Nimble three Par and now I'm Era is a really interesting way for us to take the vehicle technology that we have and extend the common operating model. So really just interesting innovation for customers that take advantage of as they look to innovate themselves. >>Krista, from from a research standpoint, you know, we were really early in watching, you know, new models of building out storage. And we said, You know, the pendulum has swung back to pull it much closer to the compute you talked about. You've got a broad portfolio and compute. You know, synergy has some really interesting, you know, ways to be able to compose things and leverage software capabilities. So maybe give >>us a >>little bit of how HP differentiates in the market cause, you know, VM Ware does partner with lots of people. But you know what separates the's point solution? Everything else out in the market? >>Sure, and synergy is a great example, because what we're seeing is really, really high interest on on synergy with VCF. And the reason for that is because customers want a software to find infrastructure that they can compose, compute storage and networking as they need to to address any workload they have. And they want to do that with a partner like VM Ware and VCF. So what we see is customers choosing those two things together and building their hybrid cloud environments on those two. When I think of some of the customers that we have, I'll give you a specific example. So Banco Santander's one of the largest banking groups in the world. And they are really trying to drive innovation across all of their, um, locations there in North America, South America, Europe, Asia. They're trying to drive innovation across. They have a big project, and they selected Synergy and VCF and as a service green lake bottle to help them transform their business. And they're really excited because what they think this is providing to them is a reduced a data center space, reduced power consumption and reduce costs. And all of that with automation, more automation than they've had in the past. More flexibility than they've had in the past. >>Yeah, I'm so glad you brought up the Green Lake because you know, those as a service models. You know, Cloud obviously has been a big discussion for the last two years, Lee, Um, you know, VM Ware is no stranger to, you know, working in multi and hybrid environments. It gives a little bit about you know what you're hearing from your customers. You know, if you meant Green Lake, how does that fit in the overall? You know, VM Ware multi cloud offering. >>Well, you know, we all know these air uncertain times, right? and customers and uncertain times. We're looking for flexibility. How do they go? And basically, you know, invest smartly, right? Look to come out of uncertain times stronger. And what we're finding is that the flexibility, you know, starting it. You know, we're really impressed with this energy platform, by the way, the idea of being able to flexibly, configure, compute and storage to tie into external arrays from that end, to have the VM Ware Cloud Foundation is a unifying, software defined data center concept that's available on Prem and then extends into the hybrid cloud. This basic gives investment protection to customers who are looking for how to invest in. You know, you mentioned Green Lake as well, and I just mentioned that innovation on Green Lake is about true consumption based purchasing miles, if you will. And that's different than just a financial engineering aspect. I mean, that's real innovation and real technical innovation in terms of how customers can go in a why infrastructure at the time that they needed relative to that compelling business models, >>and I'll chime in their Teoh, I'll tell you a little story about when I first presented the green like model. At that time, it wasn't called Green Lake, but I presented it to a bunch of customers, about 100 customers in an advisory council. And I have never had so many people come up to me afterwards trying to figure out how they can get that for themselves as I did when I had that presentation. What really resonated with people is that they wanted to take advantage of the latest and greatest technologies, but they didn't have big budgets. And when they did take advantage of those technologies, one of the challenges has been growth. So when they need to expand, that's another procurement cycle. You have a way to have the standard all love with Green Lake. You actually have that added capacity on sites and then also painful what you use s so they were attracted to all of those things. And I feel like right now and the environment were in many people had big, big projects, things they want to do, and they may have planned those ah, a capital expenditure for that. But that money may not be there, So Green Lake is one of those things that can help overcome that challenge. And what we found is when people use green like we don't see many people. Um, go back. So what? I was talking to the green like team, and I said, You know what happens if they decide not to do Green Lake and they're kind of pause, and they're like, Well, we really haven't run into that very often. So it's very, very popular, and customers were really happy with it. >>Yeah. Talking about innovation and helping customers take advantage of new technologies. You know, maybe we'll start with you and Krista. Definitely want your but been a lot of feedback about V. Sphere seven. Of course, One of the big pieces of that is how, you know, cloud native container ization kubernetes It can be pulled into the, you know, the virtualization platform. So we're talking a lot about vcf Lee. That's the you know. Wait. Get it. The community's piece today. Tell us a little bit about that and what you hear from customers. And then Chris, I'd like to understand how that fits into the HP offering. >>Yeah, you know, the data we have shows that 95% of new applications are being developed on containers. Why? Because it's the speed of ill. And so at VM Ware, we've re architected V sphere for the first time that, you know in the last five years. And you look carefully at what the EMR integrates into the hyper visor because that's what we believe is going to be really benefiting from performance efficiency and management. And so we've integrated kubernetes directly into the hyper visor itself and then to our Tom's, a portfolio. Introduce an upstream compatible kubernetes development environment so that we have developer ready infrastructure. And that's really important because at the speed of new applications, basically you need to be able to respond quickly to those and what VM Ware has always offered right, which is a resilient underlying infrastructure with an intrinsic security model built in conceptually important when containers are being spun up more quickly. All right, mark quickly. They're being portable and portable across the hybrid cloud. Those models right mean that you need and convince you get value right from this integrated model that leverages all of the experience and knowledge that people have around how to run V Center and V Sphere so really exciting, and it's available in VCF for with >>I actually see the interest. I see customers asking about an enquiring about it. Vikan, you know, definitely second everything that we just said. I think you're really you're going to see a really fast transition over because there's so much value. Add it in. >>Excellent. Okay, Crystal, while I've got you on the compute piece, you know, legally said that 95% of application new applications are being built on container ization. How has that impacted architecture, er and how you're working with? >>Yeah. So what I find is that customers are very interested in containers. What we're doing is we're helping them from a services standpoint. A consulting standpoint of many of these customers are adopting for the first time trying to figure out how they could they could leverage containers in their environment. From our standpoint, it's making sure that we have the right platforms and we're advising and consulting and helping customers get there. >>Excellent, Lee. You know, Kristen talked about a sense and under one wondering if you've got any customer examples you like to share? >>Yeah. Great. One is ah, portion. I love the portion example. Just because portion, just the epitome of speed. And so the idea of this flexibility well, you're finding rate is the flexibility, right? Starting from, let's say, from a synergy, I'm flexible on the part of their allocation, right? And then, with VCF right now being able to be flexible across the hybrid cloud and now with VCF or with ponzu, the flexibility of introducing new modern applications support on Finally Layer and Green Lake On top of that which which is also using it, gives you this idea that you know, especially in uncertain times. But, you know, regardless, the changing business environment where everyone's responding, toe app, development rushers, timelines and innovation. We've got a really interesting model now for customers to invest responsibly and be able to respond quickly. >>Hm. Excellent. Crystal, I guess. Said the other pieces were at discover any updates on the portfolio expanding the VM solution. That >>Yeah. Yeah. So I'd like to talk a little bit about our pre validated synergy vcf solution stack with built in automation. So we literally got rid of hundreds of that's pre and post employment so we could speed deployment by five times. We were talking to point in hours instead of weeks. So we're really, really excited about that. We're working together to make sure we're making things easier for customers making that journey to a hybrid cloud very, very simple. So we're really happy to have, you know, offer that to customers. >>Great Lee, Any any final words you can share on the partnership? You >>know what I might say? It's right that the pace of innovation from our companies right is so great, Right? That really v vm Ware Cloud Foundation is a way, you know, in our joint effort and joint delivery rate is a way for customers to assimilate all of this innovation. So that day zero, it's guaranteed the work. And that day two, you can lifecycle manage all the individual components from a common sec manager interface. That's the value that we're bringing together today. Is that Listen, you know, putting all this in place conceived, daunting until the VM Ware Cloud Foundation, with synergy with all of the joint value we have basically makes it manageable so that you can go and basically stop looking down it infrastructure. Look up the ass. >>All right. Christine will let you have the final word and final takeaways from HP Discover. >>Okay, sure. Thanks. Together. What we're trying to do is simplify that journey to hybrid cloud. Make sure that customers can innovate faster, provide stable operations and reduce their costs. >>Well, Chris Stanley, thank you so much for joining us. Congratulations on the progress. Looking forward. Toa watching down the road. >>All right, thanks. >>Alright, Stay tuned for lots more coverage from the Cube, HP Discover 2020. Virtual experience on stew Minimum. Thanks for watching. Yeah, >>yeah, yeah, yeah.

>> from Austin, Texas. It's Theo Cube, covering your storage. Accelerate 2019. Brought to you by pure storage. >> Welcome to Austin, Texas. This is the Cube. Live at the fourth annual pure accelerate. I'm Lisa Martin with David, Dante, Dave or in Texas, >> Texas again. >> Austin, Texas. Very interesting venue for this fourth annual hear stories. >> A lot of construction, >> music, a >> lot of music. >> So we just came from the keynote and news announcements, customers on stage. But the first thing to point out is, this is here is about to celebrate their 10th anniversary. Charlie Giancarlo, CEO and chairman who's coming on the program with us, and just a few minutes talking about what they have innovated and delivered these 10 X improvements and 10 years kind of this overnight success in 10 years and what's coming? What was with the things that really stuck out at you, Nicky Note. >> Well, first of all, ironically, this is the 10th year of the Cube, not our 10th anniversary, but it's the 10th year of doing the Cube. And so our fourth year, I think it's pure accelerate about what 3000 people here, >> you know, the keynotes >> pure was laying out what their vision is of the modern data experience and that I felt like the keynotes least there were sort of, ah, speed date of what's coming. There was a couple of major announcements that we'll talk about, >> Uh, but >> they really are trying to differentiate as the modern storage company turn a deep position. The competition, as the old guard is to use this term that Andy Jassy uses pure, didn't use that term. But they really talked about it's time to go Modern. And so they were an overnight success. It took him 10 years, was one of the comments that was on stage. So I think this is worth pointing out. A couple of things. I mean, let me lay out. Sort of my thoughts on Pure is a company. They were the only storage company Ah, in the past. Let's call a decade to reach what I'll call escape velocity. They achieved a billion dollars a couple years ago. They're doing their due about a billion and 1/2 on a trailing 12 month basis. They'll do 1.7 billion this year and evaluations about 4.5 billion. So they got a a three ex valuation in that fluctuates. That's pretty good for a storage company. Billy on Lee major storage company. That's really growing rapidly. They got 28% growth. I did a breaking analysis on Lincoln, and I'll just share with you some of the numbers. Dallas flat at 0%. So Del is actually gaining share with no growth has got a scary NetApp minus 16% in the quarter H P E minus 3% IBM minus 21%. And so it is pure A 28%. So they're really crushing it in terms of growth. They've also got a 69% gross gross margin, even if it's in its heyday. E emcees gross margins weren't that high, you know. They were in the sort of mid sixties, and so, and they've also got a good balance sheet. About a billion dollars in cash A little. A little more than that, they got some debt. They're shifting their model to a deferred revenue model. Now the only thing is, you know they're growing much, much faster than the competition. But they're throwing off a lot less cash because they're much smaller. Just as an example, they probably throw off 5 to 6% of their revenues in cash. Netapp probably throws about 23% of its revenues, often catch the big Delta there, so the point is long winded. But but pure storage is in growth mode. And until the market rewards more consistent with a cash flow, they're gonna, I think, stay in huge growth mode. >> There was a great analysis. Dave and I saw an analysis that you did with some spends data, just a couple of your reverence. A little bit of that. There's there seems to be a tailwind behind here you mention the 28% wrote that they announced in Q two, and some of the things that also they talked about were there. Adding about in Q two of F Y 2020 about seven net new customers every business day, adding about 450 new customers just in that quarter. Like you said, 3000 folks expected here today. The momentum is behind them, but they're also a company of firsts. You talked about this a number of times. The first, with all flashed the first with envy me on the back and a couple of additional firsts announced today. Talk about the as a service model and how that youth, in your opinion, you think might continue that trajectory that they're on. >> Yes, so basically pure laid out today, said that vast majority are Pouliot Portfolio is gonna be available as a service. That's the cloud consumption mall is important because pure has about $600 million in deferred revenue, largely coming from their evergreen service. But there they are, slowly shifting their model to a subscription model. It's gonna be very interesting to see how that plays out. Um, we've seen a number of companies do a tableau in Adobe kind of pulled the band Aid off and did it Splunk has taken years to do. It will be interesting to see how how pure goes. For that. I'll >> bring it >> back to the cloud up yours largely an on Prem storage company. That's where most of the revenues come from. But we heard the gentleman from Amazon today. I think it was E ethan whiner, not Ethan, anyway, Mr Whiner, he said. That gardener did A survey last year showed 88% of customers said they have a cloud for a strategy, but 86% of those customers continue to spend on prim. So here you have the cloud. Amazon gorilla wants everybody to go to the cloud pure would much rather they make much more money on Prem? But they realize customers air pulling them in. So they have to move to that as a service model. One of the interesting things that pure is done, which, you know, that's not really a first. But it certainly is for the large storage companies they've announced. Ah, block storage on AWS. So basically what they're doing is they're taking the pure experience. It all looks like pure software, and they're front ending cheap s3 storage from Amazon with E. C. To compute instances, and they've architected using Amazon service. Is this basically a block storage array in the cloud so Amazon gets paid, pure, gets paid? It's a little bit of a premium, but you get higher availability. You get great right performance and you get the pure cloud experience pretty interesting strategy, >> and they're talking about it really as this. This positioning it rather as a bridge, a bridge to hybrid cloud. This numbers that the Amazon gentlemen, share that you mentioned Gardner were really interesting both sides recognizing there's a forcing function there and that forcing function is the customers from the enterprise to the small business who need to have data available immediately wherever it is people to extract this insights from it quickly so that those companies, whether it's a capital one or a Delta Airlines or a smaller organization, can act on it quickly to Dr Competitive Advantage. Same kind of challenge that your storage has. But really that forcing function of the customer, clearly bringing the giant AWS together with yet another story >> so pure as they say reached escape velocity. They and Nutanix were the only on a new entrance that reached a billion dollars Nutanix. I really don't consider a storage company. They're kind of hyper converged. And the way they did that as they drove a truck through E emcees install base with flash. So they were the first within all flash array. Maybe maybe they weren't the first, but they were the first to really drive it. They hired a bunch of DMC sales reps. They knew where all the skeletons were buried and they really took out a lot of old Symmetric Se's and Claire eons and V. Max is and all the old sort of GMC install base, and that helped them catapult their way there 1st 10 years. Now they got to do that again. They got to get to get They're on their way to two billion. But how did they get to five billion? Um, and and so the way they do that is they have to expand their tam. I mean, we'll talk to Charlie Jean Carlo about this. My feeling is a big job of the CEO is to expand the Tamil. How do they do that? They go after new workloads like a i. They go for cloud. They go from multi cloud. These are all very large markets in which they don't participate. Data protection. They'll partner with Lex, Kohi City and Rubric and Beam to to have data protection software running on their flash. A raise with very, very fast restores. That's something that's taking off. It's gonna be really interested in seeing as they say, they've got this subscription model that's coming in. They've got all this deferred revenue that in a way, it's going to slow him down a little bit just from an accounting standpoint, cause when you recognize deferred revenue, you recognize that, you know over 12 months over 36 months, so that's a little bit of a transition. The other thing that pure is facing in a tactical basis is Nande pricing. It's like this countervailing effects nan pricing is coming down, which means lower prices, lower costs but also lower revenue. But at the same time, it becomes more competitive with spinning disk. This is something else. We'll talk to Charlie Jean. Cholera right about it opens up new markets. So this tam expansion is critical for pure in terms of driving this modern data experience into these new workloads and fighting the competition, the competition is not sitting still. All those companies that I mentioned the H P ease, the the Delhi emcees, et cetera, are basically taking a page out of your swords narrative, talking about the cloud experience, talking about, you know, flexible pricing models, building cloud products on prime and hybrid cloud and multi cloud. So it's hard sometimes for customers to squint through that. And really, no, I guess the bottom line, the last thing I'll say is pure. Doesn't have as many feet on the street is these other guys. So it's gotta leverage the channel increasingly, and that's how it gets beyond two billion on its way to five billion. >> And that was one of the factors that they attributed the second quarter. 28% year on year growth is to not just innovation, but also to the channel. So they've done a good job of really pivoting. There's large enterprise deals to be covered, direct and then bringing in the channel for those smaller mid size business customers. Adding a lot of momentum in cute to you mentioned the nan pricing that in some of the political climate with the start of China, most of their businesses in the Americas so they're not facing as many of those challenges. So they did lower guidance for the rest of it is >> the second time they've >> lowered 20. However, they kind of attributed that thio the nan supply oversupply and they say happy Matt to flatten out quickly, say they're >> not worried about the macro. I mean, look, if if the economy is good and is booming and people are spending money on cap ex. That's good for even a high growth company. They're basically positioning to the street that if if the economy does turn down and there's a softness at the macro, they'll actually gain share more rapidly. Which, by the way, is probably true. But look at the rising tide lifts all boats. Nobody wants to see Ah recession. Having said that, well, it's interesting. When you saw Pure Lower, its guidance stock took a hit, and then net app, I'd be him. All these other company you have to see a deli emcee they announced in the market said, Wow, pure must be doing really well compared to these other guys. So it's come back in a big way. My opinion pure is going to in the e. T. Our data shows this from a spending intentions Pure is going to continue to gain share at a much, much more rapid pace of the other. The other guys, from a product standpoint, delicacies consolidating its product portfolio, trying to lower its cost. H. P E is really focused on limbo. IBM needs a mainframe product cycle to get back going, Ned APS facing its challenges and its kind of tweaking its go to market model. So all these other companies air dealing with sort of some structural changes. Where is pure is like put the put the foot on the gas and accelerate no pun intended. And so I think they're gonna continue to gain share for quite quite a number of quarters. >> I want to talk about sustainability before we break. And one of the things that Charlie talked about on his keynote is in terms of the modern data experience, he said. It was three things. It was simple, seamless and sustainable, an inch sustainable. You really started talking about the evergreen model that they launched a while ago that seems to be really sticky with organizations. He also talked about sustainability is a lot of other organization I need to adjust in terms of, you know, waste and carbon emissions and things like that. But I'm just curious, since Pierre is much smaller than the competitors that you mentioned and a lot more focus, obviously all in on flash. Where does the evergreen model, in your opinion, give them that tail winter? That advantage? >> Well, the Evergreen model was first of all brilliant marketing strategy and a business strategy Because if you think about the traditional storage vendors, they make so much money on maintenance, they would never have done this unless pure force them to do it. Because they're making so much cash on the maintenance. You know, it's it's you. You put the storage array in and we're just gonna charge you maintenance. And if you're not on the maintenance contract, sorry. You don't get all the software upgrades, everything else. So it's just this, you know, this lock in strategy, which is work brilliantly for two decades pure, comes along and says, Hey, where? Software driven. We're gonna allow you to get all the modern software. As long as you're got a subscription with us, we'll swap out your controller for free. You know, the competitors hate that. There's all kinds of nuances and stuff, but it worked, and customers love it. And so it's very strong, and it's a fundamental as they said, they got $600 million in deferred revenue, largely from that evergreen model. So they, you know, Charlie mentioned first for non disruptive upgrades. First for cloud management, first for a I ops first for always on que Os first with always on encryption, and if they're really the first, we're probably the first big company. They got a lot of attention there. Last thing, it's it's a four big announcements today. There's a I ready infrastructure, airy. They're doing some stuff they were first to announce with video. You know, a year or so ago, they got cloud offerings. Ah, block storage for AWS. And they've got clout Snap for Azure, which is actually pretty hot. It's backup on Azure, and they got product extensions. They got cheaper flash with a flash or a C for capacity. And then they have extended their all flashy raise their flash played etcetera with storage class, memory and and storage memory. And in this, this as a service model. Those are really the four big announcements that were gonna dig into all this week. >> We are, and we're gonna be talking with This is a great event. Two days. The cube is going to be here. We have seven pure customers to talk to you that I think kind of a record, at least in my cube experience of the last >> AWS always puts a lot of customers up too. You know. All >> right, well, there's no better validation than the success of a brand, whether we're talking about Evergreen or their first or the reaction of the market to bringing flash down to satya prices. So excited to dig into customer stories with you, Dave. Course we'll talk to some partners who got c'mon slung Cisco somebody else and probably forgetting. And, of course, some of the pure, exactly gonna be exciting two days with you and looking for two days >> looking forward to at least a great >> all right stick around. Dave and I will be right back with our first guest, Charlie Giancarlo, chairman and CEO of Pier Storage. Stick around, come back Mawston in just a minute.