>>the Cube presents H P E discovered 2022. Brought to you by H P E. >>Hi, buddy Dave Balon and Jon Ferrier Wrapping up the cubes. Coverage of day two, hp Discover 2022. We're live from Las Vegas. Vishal Lall is here. He's the senior vice president and general manager for HP ES Green Lake Cloud Services Solutions. Michelle, good to see you again. >>Likewise. David, good to see you. It was about a year ago that we met here. Or maybe nine months >>ago. That's right. Uh, September of last year. A new role >>for you. Is that right? I was starting that new role when I last met you. Yeah, but it's been nine months. Three quarters? What have you learned so far? I mean, it's been quite a right, right? I mean, when I was starting off, I had, you know, about three priorities we've executed on on all of them. So, I mean, if you remember back then they we talked about, you know, improving a cloud experience. We talked about data and analytics being a focus area and then building on the marketplace. I think you heard a lot of that over the last couple of days here. Right? So we've enhanced our cloud experience. We added a private cloud, which was the big announcement yesterday or day before yesterday that Antonio made so that's been I mean, we've been testing that with customers. Great feedback so far. Right? And we're super excited about that. And, uh, you know, uh, down there, the test drive section people are testing that. So we're getting really, really good feedback. Really good acceptance from customers on the data and Analytics side. We you know, we launched the S three connector. We also had the analytics platform. And then we launched data fabric as a service a couple of days ago, right, which is kind of like back into that hybrid world. And then on the marketplace side, we've added a tonne of partners going deep with them about 80 plus partners now different SVS. So again, I think, uh, great. I think we've accomplished a lot over the last three quarters or so lot more to be done. Though >>the marketplace is really interesting to us because it's a hallmark of cloud. You've got to have a market price. Talk about how that's evolving and what your vision is for market. Yes, >>you're exactly right. I mean, having a broad marketplace provides a full for the platform, right? It's a chicken and egg. You need both. You need a good platform on which a good marketplace can set, but the vice versa as well. And what we're doing two things there, Right? One Is we expanding coverage of the marketplace. So we're adding more SVS into the marketplace. But at the same time, we're adding more capabilities into the marketplace. So, for example, we just demoed earlier today quickly deploy capabilities, right? So we have an I S p in the marketplace, they're tested. They are, uh, the work with the solution. But now you can you can collect to deploy directly on our infrastructure over time, the lad, commerce capabilities, licencing capabilities, etcetera. But again, we are super excited about that capability because I think it's important from a customer perspective. >>I want to ask you about that, because that's again the marketplace will be the ultimate arbiter of value creation, ecosystem and marketplace. Go hand in hand. What's your vision for what a successful ecosystem looks like? What's your expectation now that Green Lake is up and running. I stay up and running, but like we've been following the announcement, it just gets better. It's up to the right. So we're anticipating an ecosystem surge. Yeah. What are you expecting? And what's your vision for? How the ecosystem is going to develop out? Yeah. I >>mean, I've been meeting with a lot of our partners over the last couple of days, and you're right, right? I mean, I think of them in three or four buckets right there. I s V s and the I S P is coming to two forms right there. Bigger solutions, right? I think of being Nutanix, right, Home wall, big, bigger solutions. And then they are smaller software packages. I think Mom would think about open source, right? So again, one of them is targeted to developers, the other to the I t. Tops. But that's kind of one bucket, right? I s P s, uh, the second is around the channel partners who take this to market and they're asking us, Hey, this is fantastic. Help us understand how we can help you take this to market. And I think the other bucket system indicators right. I met with a few today and they're all excited about. They're like, Hey, we have some tooling. We have the manage services capabilities. How can we take your cloud? Because they build great practise around extent around. Sorry. Aws around? Uh, sure. So they're like, how can we build a similar practise around Green Lake? So again, those are the big buckets. I would say. Yeah, >>that's a great answer. Great commentary. I want to just follow up on that real quick. You don't mind? So a couple things we're seeing observing I want to get your reaction to is with a i machine learning. And the promise of that vertical specialisation is creating unique opportunities on with these platforms. And the other one is the rise of the managed service provider because expertise are hard to come by. You want kubernetes? Good luck finding talent. So managed services seem to be exploding. How does that fit into the buckets? Or is it all three buckets or you guys enable that? How do you see that coming? And then the vertical piece? >>A really good question. What we're doing is through our software, we're trying to abstract a lot of the complexity of take communities, right? So we are actually off. We have actually automated a whole bunch of communities functionality in our software, and then we provide managed services around it with very little. I would say human labour associated with it is is software manage? But at the same time we are. What we are trying to do is make sure that we enable that same functionality to our partners. So a lot of it is software automation, but then they can wrap their services around it, and that way we can scale the business right. So again, our first principle is automated as much as we can to software right abstract complexity and then as needed, uh, at the Manus Services. >>So you get some functionality for HP to have it and then encourage the ecosystem to fill it in or replicated >>or replicated, right? I mean, I don't think it's either or it should be both right. We can provide many services or we should have our our partners provide manage services. That's how we scale the business. We are the end of the day. We are product and product company, right, and it can manifest itself and services. That discussion was consumed, but it's still I p based. So >>let's quantify, you know, some of that momentum. I think the last time you call your over $800 million now in a are are you gotta You're growing at triple digits. Uh, you got a big backlog. Forget the exact number. Uh, give us a I >>mean, the momentum is fantastic Day. Right. So we have about $7 billion in total contract value, Right? Significant. We have 1600 customers now. Unique customers are running Green Lake. We have, um, your triple dip growth year over year. So the last quarter, we had 100% growth year over year. So again, fantastic momentum. I mean, the other couple, like one other metric I would like to talk about is the, um the stickiness factor associated tension in our retention, right? As renewal's is running in, like, high nineties, right? So if you think about it, that's a reflection of the value proposition of, like, >>that's that's kind of on a unit basis, if you will. That's the number >>on the revenue basis on >>revenue basis. Okay? >>And the 1600 customers. He's talking about the size and actually big numbers. Must be large companies that are. They're >>both right. So I'll give you some examples, right? So I mean, there are large companies. They come from different industries. Different geography is we're seeing, like, the momentum across every single geo, every single industry. I mean, just to take some examples. BMW, for example. Uh, I mean, they're running the entire electrical electric car fleet data collection on data fabric on Green Lake, right? Texas Children's Health on the on the healthcare side. Right On the public sector side, I was with with Carl Hunt yesterday. He's the CEO of County of Essex, New Jersey. So they are running the entire operations on Green Lake. So just if you look at it, Barclays the financial sector, right? I mean, they're running 100,000 workloads of three legs. So if you just look at the scale large companies, small companies, public sector in India, we have Steel Authority of India, which is the largest steel producer there. So, you know, we're seeing it across multiple industries. Multiple geography is great. Great uptake. >>Yeah. We were talking yesterday on our wrap up kind of dissecting through the news. I want to ask you the question that we were riffing on and see if we can get some clarity on it. If I'm a customer, CI or C so or buyer HP have been working with you or your team for for years. What's the value proposition? Finish this sentence. I work with HPV because blank because green like, brings new value proposition. What is that? Fill in that blank for >>me. So I mean, as we, uh, talked with us speaking with customers, customers are looking at alternatives at all times, right? Sometimes there's other providers on premises, sometimes as public cloud. And, uh, as we look at it, uh, I mean, we have value propositions across both. Right. So from a public cloud perspective, some of the challenges that our customers cr around latency around, uh, post predictability, right? That variability cost is really kind of like a challenge. It's around compliance, right? Uh, things of that nature is not open systems, right? I mean, sometimes, you know, they feel locked into a cloud provider, especially when they're using proprietary services. So those are some of the things that we have solved for them as compared to kind of like, you know, the other on premises vendors. I would say the marketplace that we spoke about earlier is huge differentiator. We have this huge marketplace. Now that's developing. Uh, we have high levels of automation that we have built, right, which is, uh, you know, which tells you about the TCO that we can drive for the customers. What? The other thing that is really cool that be introduced in the public in the private cloud is fungible itty across infrastructure. Right? So basically on the same infrastructure you can run. Um, virtual machines, containers, bare metals, any application he wants, you can decommission and commission the infrastructure on the fly. So what it does, is it no matter where it is? Uh, on premises, right? Yeah, earlier. I mean, if you think about it, the infrastructure was dedicated for a certain application. Now we're basically we have basically made it compose herbal, right? And that way, what? Really? Uh, that doesnt increases utilisation so you can get increased utilisation. High automation. What drives lower tco. So you've got a >>horizontal basically platform now that handle a variety of work and >>and these were close. Can sit anywhere to your point, right? I mean, we could have a four node workload out in a manufacturing setting multiple racks in a data centre, and it's all run by the same cloud prints, same software train. So it's really extensive. >>And you can call on the resources that you need for that particular workload. >>Exactly what you need them exactly. Right. >>Excellent. Give you the last word kind of takeaways from Discover. And where when we talk, when we sit down and talk next year, it's about where do you want to be? >>I mean, you know, I think, as you probably saw from discovered, this is, like, very different. Antonio did a live demo of our product, right? Uh, visual school, right? I mean, we haven't done that in a while, so I mean, you started. It >>didn't die like Bill Gates and demos. No, >>no, no, no. I think, uh, so I think you'll see more of that from us. I mean, I'm focused on three things, right? I'm focused on the cloud experience we spoke about. So what we are doing now is making sure that we increase the time for that, uh, make it very, you know, um, attractive to different industries to certifications like HIPAA, etcetera. So that's kind of one focus. So I just drive harder at that adoption of that of the private out, right across different industries and different customer segments. The second is more on the data and analytics I spoke about. You will have more and more analytic capabilities that you'll see, um, building upon data fabric as a service. And this is a marketplace. So that's like it's very specific is the three focus areas were driving hard. All right, we'll be watching >>number two. Instrumentation is really keen >>in the marketplace to I mean, you mentioned Mongo. Some other data platforms that we're going to see here. That's going to be, I think. Critical for Monetisation on the on on Green Lake. Absolutely. Uh, Michelle, thanks so much for coming back in the Cube. >>Thank you. Thanks for coming. All >>right, keep it right. There will be John, and I'll be back up to wrap up the day with a couple of heavies from I d. C. You're watching the cube. Mhm. Mm mm. Mhm.

>>Welcome back to the cubes, continuous coverage of HP es latest Green Lake announcement firehose of innovation. We're seeing a >>cadence >>that HP is delivering in cloud services. Daniel Newman is here, he's the principal analyst at the tour, um, extraordinary research company. Daniel great to see you how you doing man. >>Dave Great to, great to be in person again six ft and safe. But it's good to be back. >>Yeah, it really is uh, been a blur. Right? So we're gonna talk about the pivot to cloud based services. We're seeing that everybody is sort of leaning in HP es all in. I want to talk about value and what this all means to investors. We talk about data, but let me start with the whole as a service move. As I said, everybody's doing it. You see it virtually every companies. Hp was certainly the first to say we're all in, It communicated very well to Wall Street. Everybody's in a debate. No, we were first. No, we were first, but you gotta evaluate based upon the actions that they're taking. How do you look at the trends in this space and how do you look at H. P. S performance? >>Yeah, I admired and Antonio's early pivot, you know, when he got on stage and he said, We're gonna move everything to as a service. I believe that was about two years ago now and the ambition was to have it by 2022. It immediately stood out to me because the momentum, the momentum was behind public cloud, you would have believed three years ago that every workload was going to be in the public cloud and unfortunately guys like us knew that wasn't true. But what we did know was the customers, the enterprise, we're all becoming very comfortable and preference was starting to be shown with that consumption of it meaning subscription based, moving from Capex to apex. That to me was a signal that the timing was right now. Once they got the timing right, it was really about how does this all happened right? It's not necessarily just, we're gonna flip a switch and we're going to start to offer everything as a subscription as a service. There's a lot of standing up those services, putting all that compute all that network, all that storage into a data center, making sure that you have a way to accurately price it and make it quickly consumable, which is something by the way I've admired over the past couple of years, watching the evolution of the software that HP has been rolling. Whether that's Green Lake Central as moral, is that, you know, whether that's kubernetes in the orchestration of hybrid cloud using containers or that's just the ability to spin up a single compute workload in a timely fashion. That's the attraction to public cloud. So, you know, take H P E and its strategy aside and what we have now is you have all of the traditional big iron I T O E M all moving in this direction concurrently. They all understand from both evaluation standpoint meeting Wall Street and also meeting the customer where they are, they have to step up. They had to, uh, whether that was what I was doing with apex Cisco with plus iBMS acquisition of red hat. All these companies were going from, you know, public to private, private to public and then of course you gotta go horizontal from edge to cloud as well. It's a lot to undertake Dave but it's an exciting time and knowing that hybrid is the answer the data is proving that it puts a lot of these companies in a good position to compete. >>Now you mentioned that is the customer preference for good reason. Right? That gives them more flexibility but there's also Wall Street's preference, right? You see that, you know, huge valuations companies like snowflake data, dog elastic. It's that annual recurring revenue that is appealing. They want that they want growth. We saw Q3 hp that did a beaten raise I think 1100 customers for green lake, they announced the orders were up well over 40%. I think revenue was up 30 30 plus percent. So those are the kind of metrics that Wall Street wants to see interestingly though Daniel of course the shift to an A. R. R. Model hurts the income statement but it makes it more predictable and that's what investors today want, what your thoughts. >>Absolutely. I had a chance to speak multiple times over the past few years with the leadership at HP. And it was the exact thing. David that I that I raised, I said you realize that it might be a sidestep or even a half a step backwards before you start to gain momentum. And the real problem with Wall Street is there's no patients. So you mentioned a couple of names like data dog and snowflake. These companies have exponential valuations to earnings because they don't earn anything yet. But most of the market is forward looking and the market tries to anticipate where growth is going to come and saAS companies tend to drive fast growth and fast multiples. This is also left for somewhat slow growth evaluation for companies like HP. Despite the fact that it's doing a lot of the right things you mentioned of course mid double digit growth in green lake, large customer growth numbers. You know, I believe you're serving a billion dollars in revenue or in subscription dollars. Um, fact check that on their >>way to a billion on their way to be honest. I think >>it's booked maybe over >>700 million in revenue that way. >>And so as all those, the confluence of all those events, the market has to be able to basically cherry pick though a part of the business. And I think that's been a little bit of a problem. Not just for HP, but just for all these companies that are, that are struggling with smaller multiples of their P. E ratios. This is true for Cisco? This is true for IBM this is true for for HP and I'll kind of close my thought here. But as the company continues to talk about green Lake and it continues to lean into this, this is the part that has to rise to the front front of the Wall Street investor of the business media to say that existing part of the business is stable, It's solid. They have great customers. However, concurrently the part of the business that is the future, the subscription part that attaches to the public cloud that is enabling companies to grow. That is where they're at. And that is why we see more value. There's a lot of value to unlock and it's because, you know, these small multiples and the business is heading in what I believe is the right >>direction. And HPV last quarter cited, they hit almost 35% gross margin, which is, which is a high mark, high water mark for them if you extract VM ware out of Dell there in the mid twenties. So these are two different businesses and I think that's a big reason why Dell's moving into the space. I almost think like the board conversation at HP was, hey, let's, let's not keep thinking about building boxes. Let's build services and let's add value to those services that are software based and then we can kind of control our own destiny as opposed to kind of intel getting all the margins and or M. D. Or whatever it is. So so that so how do you see as a service driving value for H. P. E. It's customers and ultimately what do they have to do to convince Wall street >>recurring revenue companies drive higher multiples? It's not even a debate and companies that have a large percentage of their business as recurring tend to drive much higher evaluation and tend to also be more beloved by shareholders. The performance of HP has been good, it's been solid, it's been in the right place especially given the circumstances of the pandemic and the impact of on prem it we all saw the explosion of SAS the explosion of cloud, you know, SAS and chips are hot, they're always hot. But everything that was sort of sandwiched in the middle became a little bit more murky throughout the pandemic times. And the ability for HP. And these companies that are in this space are operating to be able to bridge this gap. The companies have 25 or so percent of workload during the public cloud. That means the rest need services from companies like HP. So the tam is growing because the overall size of the workload, the volumes of data are all growing exponentially and that's an opportunity but the market wants to see fast growth. Dave I mean they're not going to accept the single digit overall growth if you want to get the kind of multiples of a, you know, even a Microsoft at a 40 or a sales force at 100. But HPV with its software is starting to play in those spaces where investors in the market maybe can start to recognize that it is undervalued. >>So we live in a data centric world, Antonio talks about this all the time and we're seeing HP makes some moves in terms of data data management, you see what they're doing with his moral and that's a big part of the software place. So to the extent that you can lean into that wave have a higher contribution from software, higher margin business obviously and a more predictable revenue stream. That seems to be the right direction in my view. Um it's gonna take some time to play out. They're not gonna overnight, you know, they don't have a green sheet of paper, they clean sheet of paper, they have a business that they have to manage and they have to service their customers. But to the extent that the majority of their business over time can become as a service, shouldn't that confer higher margins and and greater value to investors? Yeah, it's sticky >>for enterprise users when you move to that subscription model, it's not as easy as just lifting and shifting you build your entire business process around these investments in these technologies. Software. It's sticky, it's organizationally complex because where HP sits in the stack, where their analytic solutions and software help you more successfully deploy S. A. P type workloads. The entire company runs on that. So the involvement and the importance of the role that HP is playing is huge. The challenge for customers isn't as big customers get this, the enterprise users, the C I O. S. They get the importance Wall Street though it's a little harder for them sometimes to digest. Whereas they might be looking at something like a snowflake that you mentioned. That's fairly straightforward. Almost all of its revenue is pure subscription and it's looked at as 20 years in a perpetuity where people are still trying to wonder is HP gonna be sticky? Are these customers not only going to keep with HP but are they going to increase? Right. Is that net revenue expansion going to take place across the portfolio? And HP rolls out more services right. Started with storage and then it moves to compute and then it adds edge layer services. Are people going to buy the whole stack? Because that of course, also as we've seen with some of the bigger players can be an extremely attractive value proposition. >>Well, I also think as they move into cloud, HP has always been about optionality. So I feel as though with their day to play, for example, they can get deeper into data management but they can also partner with others, you're leaning into open source so that means you can expand your portfolio that's kind of what the cloud game is is you know, here's the cloud, we got all these different options, choose what you want, we'll manage it for you, charge you for that but we'll take away that headache. That's a good business, >>choose your own cloud adventure last week oracle reported. Um and I'm only pointing this out because you know, you look at the company and everybody was what's with their i as number? Why is it not big or smaller? Why don't we know right. But over the last couple of years we've realized that it's no longer little seeing big see little C which I would call infrastructure as a service no longer exists. Cloud is one big number. So H P E being in the cloud through its hybrid services, its software, its platform support is just as much about being in the cloud is a company that offers I. S. Or company that offers SAs however convincing the market that this is the case is the trick. We're starting to see companies because you you hear when IBM reports how their numbers are, you know, they're they're tying in all kinds of global business services and they're tying in you know, red hat numbers and they're telling in their public cloud numbers but what I'm saying is up to this point, a lot of these hybrid services are kind of not necessarily being bucket ID like this big sea of cloud but it really is the entire stack of of infrastructure platform software and then of course all those attached services for companies to deploy this that equal a cloud number. And so the subscription number grows. Green Lakes customer account grows. And I think convincing the street and everybody in between that this is a cloud number and not a on prem or a attached to the cloud number is going to really help boomer boom, the overall value that people see and what HP is doing. >>And I think not only H P E but I think others are I think finally they're starting to realize that wow, you know, we all know everything is not going to public cloud. We understand it's a hybrid world Public cloud spend a company's the hyper scale is collectively spent $100 billion dollars last year on Capex. That's like a gift to a company like HP that can connect the dots and create that abstraction layer that hides the underlying complexity. We'll take care of that for you will make everything cloud native. We can bring cloud native on prem and go out to the edge, which is like the Wild West that is a that's a trillion dollar opportunity that there's no limit to market potential for companies out there and HP specifically. >>Well the edges a massive opportunity and that's what I said, you know, a lot of us are and we do this ourselves as both analysts and sometimes media personalities is we like to debate how big the opportunity of cloud is. And of course there are some firms that try to market size this, but I actually think it's extraordinarily difficult to market sizes, especially because of the edge. You talk about data and analytics. I recently attended the a event. It's a car event in Munich and you just look at the amount of data that vehicles are going to be creating in the in the coming years. They're basically massive rolling data centers full of chips, compute networking storage. This is all going to take significant infrastructure investments at scale and it's creating this humongous opportunity at the edge and you look at five Gs impact and as we roll out five G it's scale. Every one of these things brings more data connects, more devices and all that intelligence needs infrastructure, It needs software, it needs services. So the overall tam Dave is going to continue to grow and I think if anything it tends to be underestimated because it's really hard to define just how big the data equation is actually going to be in the market. >>Digital changes the equation. It's not, it's no longer servers, storage, networking database, its cloud services that are enabling digital transformations. I'll give you one more >>thing that just crossed my mind. But I think is important is if you even look at the the S. G. And sustainability efforts that most companies are going to be taking the amount of investment in trying to capture, comprehend manage just the data and analytics to understand your footprint and understand how you are going to achieve carbon neutrality and how you're going to do this up and down. And I mean that's just one thing and of course that's a, I wouldn't call it table stakes at this point, the market expects every company to be making this kind of investment well, when you run a multi national global enterprise that has edge, that has data centers that has manufacturing facilities, there is just unbelievable requirements on technology. And again, we've got to connect that public cloud somehow. So we can't ignore the fact that those public cloud players are all addressing this, they're all bringing solutions out. But companies like HP, this is where their sweet spot is, and this is where I believe they're going to have to compete very aggressively and efficiently to show we are a great partner to the public cloud, but our legacy and our capabilities mean we understand this part of the business, we believe we're the right fit and trust me, the Azure and AWS are, they're not going to make this easy, they're going to be competitive but they're also going to going to be very cooperative >>well, and they're coming into the home court of the on prem vendors. So that's gonna be interesting to see how that plays out as an observer, as an analyst, what do you want to see from HP, Green Lake cloud services? What are the, what are the areas that you're gonna be watching that could serve as indicators of success and momentum? >>Well, we didn't even talk because we did talk about some of that, but we didn't even talk about aI and amount for instance, all this data itself has to be managed and processed. So the fact that you're getting to that data management at scale, the fact that you're building out orchestration for containers. Well this is because of that data delusion conundrum, whatever word we want to use for it. But the best companies in the world are going to find a way to extract more value from that data and that's going to be through the application of aI of ml of neural networks, deep learning and other important capabilities. Having a foot into that Dave is something I want to see HP and it already does, but I want to see the participation there. This is an area that I think public cloud is doing really well there. They really made big investments both with homegrown chips with partnering with the likes of videos and intel to, to offer a lot of enhancement acceleration, um Ml and AI services. I think this is gonna be an area that on prem and through hybrid offerings. We're gonna want to see the company compete. Uh and then of course, I think back to the one thing Dave, I'll just kind of wrap on this, is that that customer growth, I mean you talked about how to get evaluation, how to get the street up, people get excited about overall growth. They need to get that narrative carved out about green, like about the subscription growth, the service growth point next and all that stuff, but all that has to start to equate to overall growth. Um you know, I think it needs to be made at least single high digits, single overall percentage growth, especially because the whole portfolio supposed to be there. You know, companies get those big multiples are growing >>fast growth on, on that large of a base would get people's attention. You mentioned custom chips, H P >>E, you >>know, H P S H P S heritage and HP. They have chops in custom silicon. So be interesting to see if, if you know the future, you talk about ai inference at the edge, huge disruptive potential opportunities and I'm really curious as to see how that plays out because that is another trillion dollar market opportunity. Daniel, thanks so much for coming to the cubes. Great to have you looking forward to working with you in the future. >>Yeah, it's great to be here. And sorry, we didn't get to those chips earlier. We could have gone down a whole, another whole, another >>half hour. Great, great to talk to you. All right, thank you for watching everybody. This is the cubes, continuous coverage of HBs, Big Green Lake announcement. Keep it right there for more, great content. Mhm.

>>we're back, we're assessing the as a service space. H. P. S. Green Lake announcements, my name is Dave balanta, you're watching the cube die on Hinchcliffe is here along with Holger muller, these are the constellation kids, extraordinary analysts guys. Great to see you again. I mean it super experienced. You guys, you deal with practitioners, you deal your technologist, you've been following this business for a long time. Diane, We spoke to Holger earlier, I want to start with you uh when you look at this whole trend to as a service, you see a lot of traditional enterprise companies, hard traditionally hardware companies making that move for for a lot of obvious reasons are they sort of replicating in your view, a market that you know well and sas what's your take on how they're doing generally that trend and how HP is >>operating well. Hp has had a unique heritage. They're coming at the whole cloud story and you know the Hyper Scaler story from a different angle than a lot of their competitors and that's mostly a good thing because most of the world is not yet on the cloud, They actually came from H. P. S original world, their line of servers and networks and so on. Um and and so they bring a lot of credibility saying we really understand the world you live in now but we want to take you to that that as a service future. Uh and and you know, since we understand you so well and we also understand where this is going and we can adapt that to that world. Have a very compelling story and I think that with green like you know, was first started about four years ago, it was off to the side uh you know, with all the other offerings now it's it's really grown up, it's matured a lot and I think you know, as we talked about the announcements, we'll see that a lot of key pieces have fallen into place to make it a very compelling hybrid cloud option for the enterprise. >>Let's talk about the announcement. Was there anything in particular that stood out the move to data management? I think it's pretty interesting is a tam expansion strategy. What's your take on the >>announcement? Well, the you know, the unified analytics uh story I think is really important now. That's the technology piece where they say, they say we can give you a data fabric, you can access your data outside of its silos. It doesn't address a lot of the process and cultural issues around data ownership inside the enterprise, but it's you know, having in the actual platform and as you articulating it as a platform, that's one of the things that was also evident, they were getting better and better at saying this is a hybrid cloud platform and it has all the pieces that you would expect, especially the things like being able to bring your data from wherever it is to wherever people needed to be. Uh you know, that's the Holy Grail, so really glad to see that component in particular. I also like the cloud adoption framework saying we understand how to take you from this parochial world of servers that you have and do a cloud date of hybrid world and then maybe eventually get you get you to a public cloud. We understand all the steps and all the components uh I think that's uh you know, I have a study that fully in depth but it seems to have all the moving parts >>chime in anything stand out to, you >>know, I think it's great announcements and the most important things H. P. S and transformation and when you and transformation people realize who you've been, the old and they're here. Maybe the mass of the new but an experienced technology but I will not right away saying oh it's gonna happen right. It's going to happen like this is gonna be done, it's ready, it's materials ready to use and so on. So this is going to give more data points, more proof points, more capabilities that HB is moving away from whatever they were before. That's not even say that to a software services as a service as you mentioned provider. It's >>been challenging, you look at the course of history for companies that try to go from being a hardware company to a software company, uh HP itself, you know, sort of gave up on that IBM you could say, you know semi succeeded but they've they've struggled what's different >>That will spend 30 billion, >>30 >>four. Exactly. So and of course Cisco is making that transition. I mean every traditional large companies in that transition. What about today? Well, first of all, what do you think about HP es, prospects of doing so? And are there things today in the business that make that, you know more faster, whether it's containers or the cloud itself or just the scale of the internet? >>I mean it's fascinating topic, right? And I think many of the traditional players in the space failed because they wanted to mimic the cloud players and they simply couldn't muster up the Capex, which you need to build up public cloud. Right? Because if you think of the public cloud players then didn't put it up for the cloud offering, they put it up because they need themselves right, amazon is an online retailer google as a search and advertising giant Microsoft is organic load from from from office, which they had to bring to the cloud. So it was easier for them to do that. So no wonder they failed. The good news is they haven't lost much of their organic load. Hp customers are still HP customer service, celebrity security in their own premises and now they're bringing the qualities of the cloud as a service, the pay as you go capabilities to the on premise stack, which helps night leader to reduce complexity and go to what everybody in the post pandemic world wants to get to, which is I only pay for what I use and that's super crucial because business goes up and down. We're riding all the waves in a much, much faster way than ever before. Right before we had seven year cycles, it was kind of like cozy almost now we're down to seven weeks, sometimes seven days, sometimes seven hour cycles. And I don't want to pay for it infrastructure, which was great for how my business was two years ago. I want to pay for it as I use it now as a pivot now and I'm going to use >>Diane. How much of this? Thank you for that whole girl. How much of this is what customers want and need versus sort of survival tactics on the vendors >>part. So I think that there, if you look at where customers want to go, they know they have to go cloud, they had to go as a service. Um, and that they need to make multiple steps to get there. And for the most part, I see green light is being a, a highly credible market response to say, you know, we understand IT better, we helped build you guys up over the last 30 years. We can take you the rest of the way, here's all the evidence and the proof points, which I think a lot of the announcements provide uh, and they're very good on cloud native, but the area where the story, um, you may not be the fullest strength it needs to be is around things like multi cloud. So when I talked to almost any large organization C I O. They have all the clouds need to know, how do I make all this fit together? How do I reconcile that? So for the most part, I think it's closely aligned with actual customer requirements and customer needs. I think these have additional steps to go >>is that, do you feel like that's a a priority? In other words, they got to kind of take a linear path. They got to solve the problem for their core customer base or is it, do you feel like that's not even necessarily an aspiration? And it seems like customers, I want them to go. There is what I'm >>inferring that you're, so I do. Well let's go back to the announcement specifically. So there's there are two great operational announcements, one around the cloud physics and the other one around info site. It gives a wealth of data, you know, full stack about how things are operating, where the needs are, how you might be able to get more efficiencies, how you can shut down silicon, you're not using a lot of really great information, but all that has to live with a whole bunch of other consoles and everybody is really craving the single piece of glass. That's what they want is they want to reduce complexity as holder was saying and say, I want to be able to get my arms around my data center and all of my cloud assets. But I don't want to have to check each cloud. I want it in one place. So uh, but it's great to see those announcements position them for that next step. They have these essential components that are that look, you know, uh, they look best to breed in terms of their capabilities are certainly very modern now. They have to get the rest of that story. >>Hope you were mentioning Capex. I added it up I think last year the big four include Alibaba, spent 100 billion on the Capex and generally the traditional on prem players have been defensive around cloud. Not everything is moving to the cloud, we all know that. But I, I see that as a gift in a way that the companies like HP can build on top of into Diane's point that, you know, extend cross clouds out to the edge, which is, you know, a trillion dollar opportunity, which is just just massive. What are your thoughts on HBs opportunities there and chances of maybe breaking away from the pack >>I think definitely well there's no matter pack left, like there's only 23, it's a triumvirate of maybe it's a good thing from a marketing standpoint. There's not a long list of people who give me hardware in my data center. But I think it increases their chances, right? Like I said, it's a transformation, there's more credibility, there's more data point, there's more usage. I can put more workloads on this. And I see, I also will pay attention to that and look at that for the transformation. No question. >>Yeah. And speaking of C. I. O. S. What are you hearing these days? What's their reaction to this whole trend toward as a service? Do they, do they welcome it? Do they feel like okay it's a wait and see. Uh I need more proof points. What's the sentiment? >>Well, you have to divide the Ceo market basically two large groups. One is the the ones that are highly mature. They tend to be in larger organizations are very sophisticated consumers of everything. They see the writing on the wall and that for most things certainly not everything as a service makes the most sense for all the reasons we know, agility and and and speed, you know, time to value scalability, elasticity, all those great things. Uh And then you have the the other side of the market which they really crave control. They have highly parochial worlds that they've built up um that are hard to move to the cloud because they're so complex and intertwined because they haven't had that high maturity. They have a lot of spaghetti architecture. They're not really ready to move the cloud very quickly. So the the second audience though is the largest one and it's uh you know, the hyper scales are probably getting a lot of the first ones. Um, but the bigger markets, really the second one where the folks that need a lot of help and they have a lot of legacy hardware and software that they need to move and that H P. E understands very well. And so I think from that standpoint they're well positioned to take advantage of an untapped market are relatively untapped market in comparison. Hey, >>in our business we all get pulled in different directions because it would get to eat. But what are some of the cool things you guys are working on in your research that you might want people to know about? >>Uh, I just did a market overview for enterprise application platforms. I'm a strong believer that you should not build all your enterprise software yourself, but you can't use everything that you get from your typical SAs provider. So it's focusing on the extent integration and build capabilities. Bill is very, very important to create the differentiation in the marketplace and all the known sauce players basically for their past. Right? My final example is always to speak in cartoons, right? The peanuts, right? There's Linus of this comfort blanket. Right? The past capability of the SARS player is the comfort blanket, right? You don't fit 100% there or you want to build something strategic or we'll never get to that micro vertical. We have a great enterprise application, interesting topic. >>Especially when you see what's happening with Salesforce and Service now trying to be the platform platforms. I have to check that out. How about >>Diane? Well and last year I had a survey conducted a survey with the top 100 C IOS and at least in my view about what they're gonna do to get through this year. And so I'm redoing that again to say, you know, what are they gonna do in 2022? Because there's so many changes in the world and so, you know, last year digital transformation, automation cybersecurity, we're at the top of the list and it'll be very interesting. Cloud was there too in the top five. So we're gonna see what, how it's all going to change because next year is the year of hybrid work where we're all we have to figure out how half of our businesses are in the office and half are at home and how we're gonna connect those together and what tools we're gonna make, that everybody's trying to figure >>out how to get hybrid. Right, so definitely want to check out that research guys. Thanks so much for coming to the cubes. Great to see you. >>Thanks. Thanks Dave >>Welcome. Okay and thank you for watching everybody keep it right there for more great content from H. P. S. Green Lake announcement. You're watching the cube. Mm this wasn't

>>last decade. The >>major vectors of power in >>tech. We're cloud, mobile >>social and big data. Network computing >>architectures were >>heavily influenced by the mobile leg of that stool with bring your own devices and the SAs >>ification of the enterprise. >>The next 10 years are going to see a focus on instrumented the edge and leveraging architectures that provide a range of capabilities from very small embedded devices, too much larger systems that span hybrid it installations, they move data across clouds and then to the very far edge. >>And is so often the >>case consume arised IOT technology is rapidly driving innovations for enterprise IOT. What are the key trends, challenges and opportunities >>that this >>sea change brings and how should we think about the expanding network >>universe and what will it take to >>thrive in this new environment? Hello everyone. This is Dave Volonte. Welcome back to HPD discovered 2021. You're watching the cubes, virtual coverage of H P. S annual customer event. And with me to discuss the next decade >>of IOT innovation >>and enablement is David Logan, who's the vice president and >>Ceo for the >>Americas for >>HP. Es. Aruba >>networks. David, Welcome to the cube, come on in. >>Thanks so much. It's my pleasure to be here today with you. So >>if the last decade was all about mobile that was legit, it was really driven by the iphone and android adoption and we've been hearing about IOT >>for a long time. >>What's >>the impetus behind the current >>focus on IOT is a >>connected cars, connected homes. What's making it >>real this >>time? From your point of view? >>You know, it's it's really almost everything at once. Uh if you look at how um IOT systems had been developed over the past 10 years, it was super industry specific, A lot of, a lot of mitch implementations, um a lot of product vendors trying to become an IOT platform play. But with all of that innovation that's taken place, it's been additive over the past 10 years. Now. The next 10 years, we're really looking at a phenomenal amount of growth, a phenomenal amount of uh increased innovation to bring IOT solutions to almost any industry for any purpose, whether it's a horizontal need or or a vertical need, that's >>so you guys use terms like solutions, enablement IOT solutions, it's a real big focus of HBs Edge to cloud narrative. I wonder if you could add a little color and some details behind that and explain how Aruba fits in. >>I'll be glad to. So um, H p S Edge to cloud strategy is a really accurate term. Ultimately, the Edge is where IOT solutions are first enabled and it's where data is born, it is where end user experiences live and Aruba's role in Edge to cloud architectures is to provide the connectivity, the performance assurance, the ability to commingle what were once parallel architectures into common infrastructure, common operating platforms and allow this data that's born at the edge to go all the way to the hybrid cloud infrastructure, wherever it needs to go, whether it's an IOT and user application, whether it's an IOT subsystem for industry or or for vertical industry or for vertical enterprise, um the Aruba infrastructure really provides this common operating platform at the edge so that the rest of the enterprise can benefit from what's once transpiring >>when you think about the >>sort of >>candidates for IOT at the enterprise level. I mean, the edge obviously is very fragmented and and of course the big industrial giants, they're on a path there digitizing, they're collecting data, they're driving new monetization initiatives and you know, they got the budgets to do that. Can can smaller companies come to this party. >>Absolutely. And it's really the consumer is ation of IOT that's really driving that. As you mentioned in some of your opening statements, um, the consumer is ation of computing with mobile computing architecture, sas clarification of applications and the extension of the enterprise application environment to the end user with their consumer devices as opposed to their enterprise issue devices. We're seeing the same effects in IOT now, the Consumer Ization of IOT, the release of the amazon echo in 2014, all of the smart tv technology, all of the in home home automation technology that's been developed for individual use cases, for conglomerated use cases. It is this innovation that is now being able to be brought into the enterprise either in the form of pure consumer technology. Just take a look inside your average student dorm room, how much digital technology they brought in, But it's in a it's in an enterprise setting in the university. Uh think about hospitals, health care that have brought in technology to facilitate their particular processes. The consumer is a shin will allow digital experiences to be delivered to the patient in their in their in their treatment suite, for example. So we're gonna see this really drive over the next 10 years quite quite uh quite a significant amount of interesting new use cases. >>Just a quick aside, David, I mean, that Echo example is kind of interesting because when you think about the predominant use cases for AI at the enterprise, it's it's largely modeling that's taking place in the cloud. But when you think about the predominance of AI on whether it's smartphones or you mentioned things like Echo, it's that's kind of a i influencing at the edge, facial recognition is another good example that's bleeding into the enterprise. And it's as you as you know, we've talked about up top it sort of points the way and informs the enterprise, much like the Consumer ization of it. >>Absolutely. Um organizations like Microsoft google amazon, they're really leading the charge from from uh both the Consumer ization perspective but also a developer enablement perspective, bringing the ability for a. I machine learning very specific capabilities. Like you mentioned, video recognition to be able to be brought into enterprise application environments by a developer so that they don't necessarily need to know how to develop that full ai ml stack but can incorporate that capability into their end user applications. And then it's going to lead to brand new productivity innovations that an enterprise can benefit from. Uh It's gonna lead to certainly new business models, it's gonna lead to the ability to integrate um Federated Systems together. Whether it's a business model between two enterprises or whether it's uh the how a particular enterprise operates their own business. It's gonna be, it's gonna be really fascinating. >>I was reading about hand recognition of security. You go beyond fingerprint recognition, it should now be hacked. Let's talk about the market. Everybody talks about the tam, you know, pick your trillion, 1,000,000,001 trillion two trillion. It's a huge total available market, as I said, very fragmented. So how do you think about segmenting the market? How should we think about the different categories of of IOT and solutions and architectures? >>Well, you know, every every organization is easily category categorized by their industry, healthcare, higher education, industrial retail. They all have their particular operating models that generally speaking, have a lot of similarities. And so when we think about market and market segmentation and I think it's first important to think about the particular vertical that enterprise organization belongs to. And then, you know, innovators like like us here in Aruba, we think about how do these particular industries need solutions? And then we look across them for horizontal opportunities, for example, within Aruba's solution set the ability to uh go through rapid iOT device onboarding and security policy process and procedures that's pretty universally applicable across many different industries. But at the same time when you when you look inside a particular vertical, like a heavily industrialized setting, they want to collapse there. OT infrastructure and their I O. T. And I. T. Infrastructure altogether. And they're going to need some very specific solutions to do that. Um, whether it's the ability to guarantee data flow from the edge to the cloud, whether it's security, performance, assurance, whatever their needs, are there going to be very unique to them too. And so looking at it by vertical first is important and then I think sending by size makes sense. And then as we were talking about earlier, the Consumerism nation of IOT systems is really going to bring the ability for medium and smaller organizations to benefit from a lot of these innovations. >>Another another aside maybe it's not a quicker side, but you get the O. T. And the I. T. You know, T. Engineers that are pretty hard core about the way they do things and you got it folks, they have security edicts and compliance and so forth. Kind of how how are they working together? Like who's driving the bus and that >>convergence. You know, every organization has their own operating culture. They have there their prior way of doing things and then they have the future and the real key here for leadership honestly the real key here for organizational leadership, solution, technology leadership in these organizations is to figure out how to bring everybody together the booty uh responsible part of the organization. The folks that are in the line of business, the folks are in biomedical engineering in a health care organization. They know what the end application is, they know what the systems behaviors are going to be from an end user's perspective or from a from a technology perspective as it's applied at the edge, the I. T. Team knows how to build and operate and maintain a bus nature that is all co mingled together is all integrated together. They're going to have to work together so that they understand the end user applications, the experiences that need to be delivered the system's architecture and then how it needs to be operated. But the reason they need to come together is it needs to be using a common enterprise architecture to do so. Common network infrastructure, common computing storage, data platforms at least from a standards perspective, so that the enterprise can get operational efficiency so they can really have the one plus one equals three value proposition moments when multiple systems come together. >>So a couple things we just hit their the organizational challenges, the architectural challenges. You don't want to have more stovepipes? Everybody talks about stovepipes and and data silos. Are there any other challenges that you note that an organization faces in planning and implementing an IOT solutions architecture from your perspective are the organizational, we talked about that. They were talking about some technical and any others that we might have missed, >>you know. Um It's interesting when you look inside at enterprise that has some decent best practices or some good best practices for implementing their their enterprise IOT frameworks. Um as I mentioned, bringing the organization together uh from the end user perspective and the experiences that they need from the operational perspective and the operational technology bleeding into or merging into I. T. Technology. Clearly there's there's that organizational component, but that then needs to map into a newly refined enterprise architecture last decade, you know, the nineties and two thousands, 2010, we talked about enterprise architecture a lot, it was a lot about client server and it was a lot about migrating from legacy application architecture is into next gen and web dato and now it's all about machine to machine and mobile and post mobile. And that means the enterprise architecture that maybe got dusty on the shelf needs to be pulled off and re implemented. And interestingly, as a networking vendor, what we've seen as a best practice is these enterprise organizations recognize that with cloud and mobile and IOT and vendors playing such a such an important role that a lot of control and a lot of visibility has been pulled away from the classic enterprise I. T. Organization and looking at the network as the place where experiences come to uh at the places where uh as to where um instrumentation of the overall end to end architecture can come together. And so they're really now starting to look at the network as as a far more important component than perhaps they did four or five years ago where it might have just been four bars of wifi or connectivity from branch to headquarters. >>When I think about enterprise architectures, I definitely go to workloads like, okay, how is work? How is work that's being done in the enterprise changing and you obviously have a lot of general purpose E R P and financials and Crm and HCM etcetera. You've got this emerging set of workloads that's data intensive, whether it's A I or you know, whatever, whatever you call, some people call matrix workloads, but all the kind of new, interesting, you know, data intensive workloads and then there's a ton of work being done that's just don't even supporting applications directly, it's it's making storage run better or networks run better and so it's kind of wasted cycles if you will. So yeah, I talked a lot of people who are kind of rethinking that architecture to your point based upon the type of work that's being done and obviously things like influencing at the edge that we talked about a little bit earlier, uh are gonna drive that in the enterprise and that's really gonna put new requirements on the architecture, is it not? >>Absolutely. In fact, this is, this is core to the HP edge to cloud strategy and architecture. Ultimately, every organization is going to be different, they have different use cases, different, different business requirements. But um, we are going to find over the next 10 years that a significant amount of the data that is born at the edge and the experiences that are delivered at the Edge need a local presence of computer and communications to enable what needs to, what needs to take place locally from an operations perspective, Let me give you a concrete example. I mentioned health care a couple of times, imagine the healthcare environment of a large healthcare network organization and they need to consume patient telemetry information from all of their patient bedside monitoring systems. At the point at the point of patient care, well, what if the point of patient care is in a hospital tower? What if the point of patient care is in the patient's home? That's a completely different set of circumstances, physically and logically from an enterprise architecture perspective. And so it's particularly important to think through how data will be born at the edge, consumed locally, processed locally. And then forwarded to hybrid cloud computing environments for continued processing after the fact. So you might need to react immediately to some patient telemetry that's collected locally, but then also collect that information processing and the metadata stored somewhere else, maybe maybe haven't diverge into multiple streams? And in all of this, the computing architecture at the edge, the hybrid cloud architecture, the network architecture from edge to cloud all matters because this involves security, involves availability, involves performance, it involves how the data itself is used, the experience of the end users that are responsible for the delivery of the, Of the experience itself. So the ultimate enterprise architecture here is going to evolve yet again. And just as we've seen over 30 years, the centralization, the decentralization, the centralization, the distribution of various functions. We're just we're just seeing that again, because we continue to reinvent how we operate with better and better architectural models, >>right. Pendulums definitely swinging when you, when I think about the compute at the local level, I think it's gonna be super, super high performance and dirt, cheap and low power. Um, and I want to ask you a question about something you said earlier about your strategy is really to look for those horizontal opportunities. So am I right to and for you're not going after the, the deep edge with, you know, specialized capabilities or are you? I think Tesla, right. I mean, you know, designing their own chips for their cars, you're not going there, I presume. But you also reference, hey, there's gonna be some data that's coming back, that's kind of your role. But maybe you can help clarify that for me. >>Yeah, so, so interesting. We are in a way going after the special edge cases, but that's through the creation of an architecture that is malleable enough where you can define an enterprise network architecture and enterprise network experience that will address the horizontal, easy to understand use cases like mobile devices that need wifi connectivity or mobile devices that need bluetooth connectivity or Zig B or what have you. But also we have found that through again through consumer is ation of IOT systems that um, I O T specific technologies for very specific edge use cases are still embedding common access technologies, common networking technologies, common security protocols, um Common orchestration capabilities for compute as some examples. And so what we are building is the ability for uh an enterprise architect or an enterprise network architect to define a single network architecture physically that can commingle lots of different perhaps parallel network architectures into a single common platform and then operate it even though that it might consume multiple, many parallel types of systems ultimately operated as one single entity. Um That honestly, that's the power of the Aruban architecture is even though we have to physically deploy access points and switches and SD WAN gateways to create whatever the enterprise network architecture looks like, It's all driven by software and it's all driven by common interfaces that at some point get down to. Okay, I can actually connect that kind of strange device because it has enough commonality so that I can plug in this USB adapter into this access point. And all of a sudden I've got this connectivity for this very specialized thing transporting specialist protocol across an I. P. Network. So it's um it's really the blend of looking for horizontal opportunities so that we attacked the market effectively but also make sure we don't leave anybody behind in the process just because they've got a specialized need. >>Thank you for that clarification. So room is going to participate in the entire value chain that we've sort of laid out here and visualized. What do you think's going on? Maybe we can talk about the vendor landscape the pretenders from the contenders. What are the keys in your view to the product solutions, the right clarity of vision? Uh maybe some things that haven't been invented yet. How do you how do you think about that? >>Yeah, so um a lot of lessons learned over the past 10 years, I would say um there have been a number of very prominent enterprise technology companies, facilities, tech, um a vertical oriented solutions for healthcare, for industrial settings and they've all at one point or another tried to build a platform strategy, they have decided to self anoint or anoint themselves with, we're going to be the platform for some particular horizontal function inside the enterprise that involves IOT because we want to be the centerpiece where all this data from all these IOT systems concerning this particular environment flows through and we want to help democratize data access. Um Unfortunately most of them still took a very vendor specific point of view about it, even even by layering standards on top of what they've built, um even forming industry consortiums, they haven't necessarily achieved critical mass of what we would all like to see, which is full democratization of IOT solution architectures and IOT data access and I think we're gonna see that over the next 10 years, it's gonna take a while but I think um you know to to your question of what are some interesting uh interesting products or technologies to be developed? Um I think uh industries working together vendors working together like Microsoft like google like amazon like Aruba HP like um in ocean which is an industry consortium, these places where we come together and decide to achieve the greater good to achieve greater benefits for our enterprise customers and build a platform capabilities using standards using open source, using consume arised tech using really critical functions in orchestration, configuration management, aPI architectures, standard standard object models for how how information is communicated. I think that we will be able to democratize IOT data access, I think we'll be able to democratize how IOT systems are deployed and dramatically expand the market opportunity for the benefit of everybody. >>Yeah, we've certainly seen those types of collaborations before, I'm not sure it's ever been this large. Maybe the internet was this large, but that was kind of more government driven than it was a vendor driven, which is your land, give us the bumper sticker for Y H P E in Aruba. >>Well, you know, um HBs in a really um in a really interesting position, we really are enabling the entire edge to cloud architecture, as we've mentioned a few times and the ability to lay out the foundation of the infrastructure for communications for compute for storage regardless of how an enterprise organization wants to consume it, whether it's all at the edge or all in private data centers or in hybrid architecture, whether they want to control the entire architecture top to bottom, whether they want us to help them deploy and manage the architecture on their behalf with industry partners. Ultimately, we are giving them a set of building blocks into end that will coexist with whatever they've already built, help them build a malleable architecture and going forward in the future and really helped them achieve economies of scale, >>David, Very interesting discussion. Thank you so much for your perspectives. Really appreciate you coming on the cube. >>Thank you. Thank you so much. Dave. I really appreciate the time and I'm uh I'm really excited to be part of discover, >>awesome. And thank you for watching this segment of H. P. E. Discovered 2021. You're watching the cube. This is David. Want to keep it right there. Mhm.

>>approximately two years after HP split into two separate companies, antonioni Ranieri was named president and Ceo of Hewlett Packard Enterprise. Under his tenure, the company has streamlined its operations, sharpened his priorities, simplified the product portfolio and strategically aligned its human capital with key growth initiatives. He's made a number of smaller but high leverage acquisitions and return the company to growth while affecting a massive company wide pivot to an as a service model. Welcome back to HPD discovered 2021. This is Dave Volonte for the cube and it's my pleasure to welcome back Antonio. Neary to the program Antonio it's been a while. Great to see you again. >>Dave Thanks for having me. >>That's really our pleasure. I was just gonna start off with >>the big picture. >>Let's talk about trends. You're a trend spotter. What do you see today? Everybody talks about digital transformation. We had to force marks to digital last year now it's really come into focus. But what are the big trends that you're seeing that are affecting your customers transformations? >>Okay. I mean obviously we have been talking about digital transformation for some time uh in our view is no longer a priority is a strategic imperative. And through the last 15 months or so since we have been going through the pandemic we have seen that accelerated to a level we haven't never seen before. And so what's going on is that we live in a digital economy and through the pandemic now we are more connected than ever. We are much more distributed than ever before and an enormous amount of data is being created and that data has tremendous value. And so what we see in our customers need more connectivity, they need a platform from the edge to the cloud to manage all the data and most important they need to move faster and extracting that inside that value from the data and this is where HP is uniquely positioned to deliver against those experiences the way we haven't imagined before. >>Yeah, we're gonna dig into that now, of course, you and I have been talking about data and how much data for decades, but I feel like we're gonna look back at, you know, in 2030 and say, Wow, we never, we're not gonna do anything like that. So we're really living in a data centric era as the curves are going exponential. What do you see? How do you see customers handling this? How are they thinking about the opportunities? >>Well, I think, you know, customer realized now that they need to move faster, they need to absolutely be uh much more agile and everything. They do. They need to deploy a cloud experience for all the war clothes and data that they manage and they need to deliver business outcomes to stay ahead of the competition. And so we believe technology now plays even a bigger role and every industry is a technology industry in many ways. Every company right, is a technology company, whether your health care, your manufacturer, your transportation company, you are an education, everybody needs more. It no less I. T. But at the same time they want the way they want to consumer Dave is very different than ever before, right? They want an elastic consumption model and they want to be able to scale up and down based on the needs of their enterprise. But if you recall three years ago I knew and I had this conversation, I predicted that enterprise of the future will be edge centric cloud enable and data driven. The edge is the next frontier. We said in 2018 and think about it, you know, people now are working remotely and that age now is much more distribute than we imagined before. Cloud is no longer a destination, it is an experience for all your apps and data, but now we are entering what we call the edge of insight which is all about that data driven approach and this is where all three have to come together in ways that customer did envision before and that's why they need help. >>So I see that I see the definition of cloud changing, it's no longer a set of remote services, you know, somewhere up there in the cloud, it's expanding on prem cross clouds, you mentioned the Edge and so that brings complexity. Every every company is a technology company but they may not be great at technology. So it seems that there are some challenges around there, partly my senses, some of some of what you're trying to do is simplify that for your customers. But what are the challenges that your customers are asking you to solve? >>Well the first they want a consistent and seamless experience, whatever that application and data lives. And so um you know for them you know they want to move away from running I. T. to innovate in our 90 and then obviously they need to move much faster. As I said earlier about this data driven approaches. So they need help because obviously they need to digitize every every aspect of the company but at the same time they need to do it in a much more cost effective way. So they're asking for subject matter expertise on process engineering. They're asking for the fighting the right mix of hybrid experiences from the edge to cloud and they need to move much faster as scale in deploying technologies like Ai deep learning and machine learning. Hewlett Packard Enterprise uh is extremely well positioned because we have been building an age to cloud platform where you provide connectivity where you bring computing and storage uh in a soft of the fine scalable way that you can consume as a service. And so we have great capabilities without HP Point next technology services and advice and run inside. But we have a portfolio with HP Green Lake, our cloud services, the cloud that comes to you that are addressing the most critical data driven warlords. >>Probably about 24 months ago you announced that HP was, was going to basically go all in on as a service and get there by by 2022 for all your solutions. I gotta get, I gotta say you've done a good job communicating the Wall Street, I think. I think culturally you've really done a good job of emphasizing that to your, to the workforce. Uh, but but how should we measure the progress that you've made toward that goal? How our customers responding? I know how the markets responding, you know, three or four year big competitors have now announced. But how should we measure, you know, how you're tracking to that goal? >>Well, I think, you know, the fact that our competitors are entering the other service market is a validation that our vision was right. And that's that's that's good because in the end, you know, it tells us we are on the right track. However, we have to move much faster than than ever before. And that's why we constantly looking for ways to go further and faster. You're right. The court of this is a cultural transformation. Engineering wise, once you step, once you state the North Star, we need to learn our internal processes to think cloud first and data first versus infrastructure. And we have made great progress. The way we measure ourselves. Dave is very simple is by giving a consistent and transparent report on our pivot in that financial aspect of it, which is what we call the annualized revenue run rate, Which we have been disclosed enough for more than a year and a half. And this past quarter grew 30% year over year. So we are on track to deliver at 30 to 40% cake or that we committed two years ago And this business going to triple more than uh more than one year from now. So it's gonna be three times as bigger as we enter 2022 and 2023. But in the end it's all about the experience you deliver and that's why architecturally uh while we made great progress. I know there is way more work to be done, but I'm really excited because what we just announced here this week is just simply remarkable. And you will see more as we become more a cloud operating driven company in the next month and years to come. >>I want to ask you kind of a personal question. I mean, COVID-19 has sharpened our sensitivity and empathy to a lot of different things. And I think ceos in your position of a large tech company or any large company, they really can't just give lip service to things like E. S. G. Or or ethical uh digital transformation, which is something that you've talked about in other words, making sure that it's inclusive. Everybody is able to participate in this economy and not get left behind. What does this mean to you personally? >>Well, they remember I'm in a privileged position, right? Leading a company like Hewlett Packard Enterprise that has Hewlett and Packard on the brand is an honor, but it's also a big responsibility. Let's remember what this company stands for and what our purpose is, which is to advance the way people live and work. And in that we have to be able to create a more equitable society and use this technology to solve some of the biggest societal challenge you have been facing Last 18 months has been really hard on a number of dimensions, not just for the business but for their communities. Uh, we saw disruption, we saw hardships on the financial side, we saw acts of violence and hatred. Those are completely unacceptable. But if we work together, we can use these technologies to bring the community together and to make it equitable. And that's one is one of my passion because as we move into this digital economy, I keep saying that connecting people is the first step and if you are not connected you're not going to participate. Therefore we cannot afford to create a digital economy for only few. And this is why connectivity has to become an essential service, not different than water and electricity. And that's why I have passion and invest my own personal time working with entities like World Economic Forum, educating our government, which is very important because both the public sector and the private sector have to come together. And then from the technology standpoint, we have to architect these things. They are commercially accessible and viable to everyone. And so it's uh it's I will say that it's not just my mission. Uh this is top of mind for many of my colleagues ceos that talked all the time and you can see of movement, but at the same time it's good for business because shareholders now want to invest in companies that take care about this. How we make, not just a world more inclusive and equitable, but also how we make a more sustainable and we with our technologies we can make the world way more sustainable with circular economy, power, efficiency and so forth. So a lot of work to be done dave but I'm encouraged by the progress but we need to do way way more. >>Thank you for that Antonio I want to ask you about the future and I want to ask you a couple of different angles. So I want to start with the edge. So it seems to me that you're you're building this vision of what I call a layer that abstracts the underlying complexity of the whether it's the public cloud across clouds on prem and and and the edge And it's your job to simplify that. So I as the customer can focus on more strategic initiatives and that's clearly the vision that you guys are setting forth on. My question is is how far do you go on the edge? In other words, it seems to me that Aruba for example, for example, awesome acquisition can go really, really deep into the far edge. Maybe other parts of your portfolio, you're kind of more looking at horizontal. How should we think about HP es positioning and participation in that edge opportunity? >>Well, we believe we are becoming one of the merger leaders at the intelligent edge. Right. These edges becoming more intelligent. We live in a hyper connected world and that will continue to grow at an exponential pace. Right? So today we we might have billions of people and devices pursue. We're entering trillions of things that will be connected to the network. Uh, so you need a platform to be able to do with the scale. So there is a horizontal view of that to create these vertical experiences which are industry driven. Right? So one thing is to deliver a vertical experience in healthcare versus manufacturer transportation. And so we take a really far dave I mean, to the point that we just, you know, put into space 256 miles above the earth, a supercomputer that tells you we take a really far, but in the end it's about acting where the data is created and bringing that knowledge and that inside to the people who can make a difference real time as much as possible. And that's why I start by connecting things by bringing a cloud experience to that data wherever it lives because it's cheaper and it's where more economical and obviously there is aspects of latest in security and compliance that you have to deal with it and then ultimately accelerate that inside into some sort of outcome and we have many, many use cases were driving today and Aruba is the platform by the way, which we have been using now to extend from the edge all the way to the core into the cloud business and that's why you HP has unique set of assets to deliver against that opportunity. >>Yes, I want to talk about some of the weapons you have in your arsenal. You know, some people talk about a week and we have to win the architectural battle for hybrid cloud. I've heard that statement made, certainly HPV is in that balance is not a zero sum game, but but you're a player there. And so when I when I look at as a service, great, you're making progress there. But I feel like there's more, there's there's architecture there, you're making acquisitions, you're building out as moral, which is kind of an interesting data platform. Uh, and so I want to ask you, so how you see the architecture emerging and where H. P. S sort of value add i. P. Is your big player and compute you've got actually you've got chops and memory disaggregate asian, you've done custom silicon over the years. How how should we think about your contribution to the next decade of innovation? >>Well, I think it's gonna come different layers of what we call the stock, right? Obviously, uh, we have been known for an infrastructure company, but the reality is what customers are looking for Our integrated solutions that are optimized for the given workload or application. So they don't have to spend time bringing things together. Right? And and spend weeks sometimes months when they can do it in just in a matter of minutes a day so they can move forward innovative or 90. And so we we are really focused on that connectivity as the first step. And Aruba give us an enormous rich uh through the cloud provisioning of a port or a wifi or a one. As you know, as we move to more cloud native applications. Much of the traffic through the connectivity will go into the internet, not through the traditional fixed networks. And that's what we did acquisitions like Silver Peak because now we can connect all your ages and all your clouds in an autonomous software defined way as you go to the other spectrum, right. We talk about what load optimization and uh for us H. P. S. My role is the recipe by which we bring the infrastructure and the software in through that integrated solution that can run autonomously that eventually can consume as a service. And that's why we made the introduction here of HP Green like lighthouse which is actually I fully optimised stack the with the push of a bottom from HP Green Lake cloud platform we can deploy whatever that that is required and then be able to Federated so we can also address other aspects like disaster recovery and be able to share all the knowledge real time. So I'm learning is another thing that people don't understand. I mean if you think about it. So I'm learning is a distributed Ai learning uh ecosystem and think about what we did with the D. C. Any in order to find cures for Alzheimer's or dementia. But swam learning is gonna be the next platform sitting on this age to cloud architecture so that instead of people worrying about sharing data, what we're doing is actually sharing insights And be able to learn to these millions of data points that they can connect with each other in a secure way. Security is another example, right? So today on an average takes 28 days to find a bridge in your enterprise with project Aurora, which we're gonna make available at the end of the year, by the end of the year. We actually can address zero day attacks within seconds. And then we're work in other areas like disaster recovery when you get attacked. Think about the ransom ramp somewhere that we have seen in the last few weeks, right? You know, God forbid you have to pay for it. But at the same time, recovery takes days and weeks. Sometimes we are working on technology to do it within 23 seconds. So this is where HP can place across all spectrums of the stack. And at the same time, of course, people expect us to innovate in infrastructural layer. That's why we also partnered with companies like Intel, we're with the push of a bottle. If you need more capacity of the court, you don't have to order anything, just push the bottle. We make more calls available so that that will load can perform and when you don't need to shut it off so you don't have to pay for it. And last finalist, you know, I will say for us is all about the consumption availability of our solutions And that's what I said, you know, in 2019 we will make available everything as a service by 2022. You know, we have to say as you know, there is no need to build the church for easter sunday when you can rent it for that day. The point here is to grow elastically and the fact that you don't need to move the data is already a cost savings because cost of aggression data back and forth is enormous and customers also don't want to be locked in. So we have an open approach and we have a through age to cloud architecture and we are focusing on what is most valuable aspect for the customer, which is ultimately the data. >>Thank you for that. One of the other things I wanted to ask you about, and again, another weapon in your arsenal is you mentioned uh supercomputing before up in space where we're on the cusp of exa scale and that's the importance of high performance computing. You know, it used to be viewed as just a niche. I've had some great conversations with Dr go about this, but that really is the big data platform, if you will. Uh can I wonder if you could talk a little bit about how that fits into the future. Your expertise in HPC, you're obviously a leader in that space. What's the fit with this new vision? You're laying out? >>Well, HPC, high performance computer in memory computer are the backbone to be able to manage large data sets at massive scale. Um and, you know, deployed technologies like deep learning or artificial intelligence for this massive amount of data. If we talked about the explosion of data all around us and uh, you know, and the algorithms and the parameters to be able to extract inside from the day is getting way more complex. And so the ability to co locate data and computed a massive scale is becoming a necessity, whether it's in academia, whether it's in the government obviously to protect your, your most valuable assets or whether it is in the traditional enterprise. But that's why with the acquisition of Cray, S. G. I. And our organic business, we are absolutely the undisputed leader to provide the level of capabilities. And that's why we are going to build five of the top six exa scale systems, which is basically be able to process they billion billion, meaning billion square transactions per second. Can you imagine what you can do with that? Right. What type of problems you can go solve climate problems? Right. Um you know, obviously be able to put someone back into the moon and eventually in mars you know, the first step to put that supercomputer as an edge computer into the international space station. It's about being able to process data from the images that take from the ice caps of the, of the earth to understand climate changes. But eventually, if you want to put somebody in in into the Marks planet, you have to be able to communicate with those astronauts as they go and you know, you can't afford the latency. Right? So this is where the type of problems we are really focused on. But HPC is something that we are absolutely uh, super committed. And it's something that honestly we have the full stack from silicon to software to the system performance that nobody else has in the industry. >>Well, I think it's a real tailwind for you because the industry is moving that direction. Everybody talks about the data and workloads are shifting. We used to be uh, I got LTP and I got reporting. Now you look at the workloads, there's so much diversity. So I'll give you the last word. What what really is the most exciting to you about the future of HPV? >>Well, I'm excited about the innovation, will bring it to the market and honestly, as the Ceo, I care about the culture of the company. For me, the last almost 3.5 years have been truly remarkable. As you said at the beginning, we are transforming every aspect of this company. When I became CEO, I had three priorities for myself. One is our customers and partners. That's why we do these events right to communicate, communicate, communicate. Uh they are our North Star, that's why we exist. Uh, second is our innovation right? We compete to win with the best innovation, solving the most complex problems in a sustainable and equitable way. And third is the culture of the company, which are the core is how we do things in our Team members and employees. You know, I represent my colleagues here, the 60,000 strong team members that have incredible passion for our customers and to make a contribution every single day. And so for me, I'm very optimistic about what we see the recovery of the economy and the possibilities of technology. But ultimately, you know, we have to work together hand in hand. Uh and I believe this company now is absolutely on the right track to not just be relevant, but really to make a difference. And remember that in the end we we have to be a force for good. And let's not forget that while we do all of this, we have some farm with technology. We have to also help some uh to address some of the challenges we have seen in the last 18 months. An H. P. E is a whole different company, uh, that you knew 3.5 years ago. >>And as you said, it's, it's knowledge is the right thing to do. It's good. It's good for business Antonio. Neary. Thanks so much for coming back to the cube. Is always a pleasure to see you. >>Thanks for having me Dave >>and thank you for watching this version of HP discover 2021 on the cube. This is David want to keep it right there for more great coverage. >>Mm

>>data by its very nature is distributed and siloed. But most data architectures today are highly centralized. Organizations are increasingly challenged to organize and manage data and turn that data into insights this idea of a single monolithic platform for data, it's giving way to new thinking. We're a decentralized approach with open cloud native principles and Federated governance will become an underpinning underpinning of digital transformations. Hi everybody, this is Day Volonte. Welcome back to HP discover 2021 the virtual version. You're watching the cubes continuous coverage of the event and we're here with Matt Mako is the field C T O for Israel software at H P E. And we're gonna talk about HP software strategy and esmeralda and specifically how to take a I analytics to scale and ensure the productivity of data teams. Matt, welcome to the cube. Good to see you. >>Good to see you again. Dave thanks for having me today. >>You're welcome. So talk a little bit about your role as CTO. Where do you spend your time? >>Yeah. So I spend about half of my time talking to customers and partners about where they are on their digital transformation journeys and where they struggle with this sort of last phase where we start talking about bringing those cloud principles and practices into the data world. How do I take those data warehouses, those data lakes, those distributed data systems into the enterprise and deploy them in a cloud like manner. And then the other half of my time is working with our product teams to feed that information back so that we can continually innovate to the next generation of our software platform. >>So when I remember I've been following HP and HP for a long, long time, the cube is documented. We go back to sort of when the company was breaking in two parts and at the time a lot of people were saying, oh HP is getting rid of the software business to get out of software. I said no, no, no hold on, they're really focusing and and the whole focus around hybrid cloud and and now as a service and so you're really retooling that business and sharpen your focus. So so tell us more about asthma, it's cool name. But what exactly is as moral software, >>I get this question all the time. So what is Israel? Israel is a software platform for modern data and analytics workloads using open source software components. And we came from some inorganic growth. We acquired a company called citing that brought us a zero trust approach to doing security with containers. We bought blue data who came to us with an orchestrator before kubernetes even existed in mainstream. They were orchestrating workloads using containers for some of these more difficult workloads, clustered applications, distributed applications like Hadoop. And then finally we acquired Map are which gave us this scale out, distributed file system and additional analytical capabilities. And so what we've done is we've taken those components and we've also gone out into the marketplace to see what open source projects exist, to allow us to bring those club principles and practices to these types of workloads so that we can take things like Hadoop and spark and Presto and deploy and orchestrate them using open source kubernetes, leveraging Gpu s while providing that zero trust approaches security. That's what Israel is all about. Is taking those cloud practices and principles but without locking you in again using those open source components where they exist and then committing and contributing back to the open source community where those projects don't exist. >>You know, it's interesting. Thank you for that history. And when I go back, I always been there since the early days of big data and Hadoop and so forth. The map are always had the best product. But but they can't get back then. It was like Kumbaya open source and they had this kind of proprietary system, but it worked and that's why it was the best product. And so at the same time they participated in open source projects because everybody that that's where the innovation is going. So you're making that really hard to use stuff easier to use with kubernetes orchestration. And then obviously I'm presuming with the open source chops, sort of leaning into the big trends that you're seeing in the marketplace. So my question is, what are those big trends that you're seeing when you speak to technology executives, which is a big part of what you do? >>Yeah. So the trends I think are a couple of fold and it's funny about Duke, I think the final nails in the coffin have been hammered in with the Hadoop space now. And so that that leading trend of of where organizations are going. We're seeing organizations wanting to go cloud first, but they really struggle with these data intensive workloads. Do I have to store my data in every cloud? Am I going to pay egress in every cloud? Well, what if my data scientists are most comfortable in AWS? But my data analysts are more comfortable in Azure. How do I provide that multi cloud experience for these data workloads? That's the number one question I get asked. And that's the probably the biggest struggle for these Chief Data Officers. Chief Digital Officer XYZ. How do I allow that innovation but maintaining control over my data compliance especially, we talk international standards like G. D. P. R. To restrict access to data, the ability to be forgotten in these multinational organizations. How do I sort of square all of those components and then how do I do that in a way that just doesn't lock me into another appliance or software vendors stack? I want to be able to work within the confines of the ecosystem. Use the tools that are out there but allow my organization to innovate in a very structured, compliant way. >>I mean I love this conversation. And just to me you hit on the key word which is organization. I want to I want to talk about what some of the barriers are. And again, you heard my wrap up front. I I really do think that we've created not only from a technology standpoint and yes, the tooling is important, but so is the organization. And as you said, you know, an analyst might want to work in one environment, a data scientist might want to work in another environment. The data may be very distributed. They maybe you might have situations where they're supporting the line of business. The line of business is trying to build new products. And if I have to go through this, hi this monolithic centralized organization, that's a barrier uh for me. And so we're seeing that change that kind of alluded to it upfront. But what do you see as the big, you know, barriers that are blocking this vision from becoming a reality? >>It very much is organization dave it's the technology is actually no longer the inhibitor here. We have enough technology, enough choices out there. That technology is no longer the issue. It's the organization's willingness to embrace some of those technologies and put just the right level of control around accessing that data because if you don't allow your data scientists and data analysts to innovate, they're going to do one of two things, they're either going to leave and then you have a huge problem keeping up with your competitors or they're gonna do it anyway, and they're gonna do it in a way that probably doesn't comply with the organizational standards. So the more progressive enterprises that I speak with have realized that they need to allow these various analytical users to choose the tools, they want to self provision those as they need to and get access to data in a secure and compliant way. And that means we need to bring the cloud to generally where the data is because it's a heck of a lot easier than trying to bring the data where the cloud is while conforming to those data principles. And that's, that's Hve strategy, you've heard it from our CEO for years now, everything needs to be delivered as a service. It's essential software that enables that capability, such as self service and secure data provisioning, etcetera. >>Again, I love this conversation because if you go back to the early days of the Duke, that was what was profound about. Do bring bring five megabytes of code, do a petabyte of data and it didn't happen. We shoved it all into a data lake and it became a data swamp. And so it's okay, you know, and that's okay. It's a one dato maybe maybe in data is is like data warehouses, data hubs data lake. So maybe this is now a four dot Oh, but we're getting there. Uh, so an open but open source one thing's for sure. It continues to gain momentum. It's where the innovation is. I wonder if you could comment on your thoughts on the role that open source software plays for large enterprises. Maybe some of the hurdles that are there, whether they're legal or licensing or or or just fears. How important is open source software today? >>I think the cloud native development, you know, following the 12 factor applications microservices based, pave the way over the last decade to make using open source technology tools and libraries mainstream, we have to tip our hats to red hat right for allowing organizations to embrace something. So core is an operating system within the enterprise. But what everyone realizes that its support, that's what has to come with that. So we can allow our data scientists to use open source libraries, packages and notebooks. But are we going to allow those to run in production? And so if the answer is no, then that if we can't get support, we're not going to allow that. So where HP es Merrill is taking the lead here is again embracing those open source capabilities, but if we deploy it, we're going to support it or we're going to work with the organization that has the committees to support it. You call HPD the same phone number you've been calling for years for tier 1 24 by seven support and we will support your kubernetes, your spark your presto your Hadoop ecosystem of components were that throat to choke and we'll provide all the way up to break fix support for some of these components and packages giving these large enterprises the confidence to move forward with open source but knowing that they have a trusted partner in which to do so >>and that's why we've seen such success with, say, for instance, managed services in the cloud or versus throwing out all the animals in the zoo and say, okay, figure it out yourself. But of course what we saw, which was kind of ironic was we, we saw people finally said, hey, we can do this in the cloud more easily. So that's where you're seeing a lot of data. A land. However, the definition of cloud or the notion of cloud is changing no longer. Is it just this remote set of services somewhere out there? In the cloud? Some data center somewhere. No, it's, it's moving on. Prem on prem is creating hybrid connections you're seeing, you know, co location facility is very proximate to the cloud. We're talking now about the edge, the near edge and the far edge deeply embedded, you know? And so that whole notion of cloud is, is changing. But I want to ask you, there's still a big push to cloud, everybody is a cloud first mantra. How do you see HP competing in this new landscape? >>I I think collaborating is probably a better word, although you could certainly argue if we're just leasing or renting hardware than it would be competition. But I think again, the workload is going to flow to where the data exists. So if the data is being generated at the edge and being pumped into the cloud, then cloud is prod, that's the production system. If the data is generated, the on system on premises systems, then that's where it's going to be executed, that's production. And so HBs approach is very much coexist, coexist model of if you need to do deaf tests in the cloud and bring it back on premises, fine or vice versa. The key here is not locking our customers and our prospective clients into any sort of proprietary stack, as we were talking about earlier, giving people the flexibility to move those workloads to where the data exists. That is going to allow us to continue to get share of wallet. Mindshare, continue to deploy those workloads and yes, there's going to be competition that comes along. Do you run this on a G C P or do you run it on a green lake on premises? Sure. We'll have those conversations. But again, if we're using open source software as the foundation for that, then actually where you run it is less relevant. >>So a lot of, there's a lot of choices out there when it comes to containers generally and kubernetes specifically, uh, you may have answered this, you get zero trust component, you've got the orchestrator, you've got the, the scale out, you know, peace. But I'm interested in hearing in your words why an enterprise would or should consider s morale instead of alternatives to kubernetes solutions? >>It's a fair question. And it comes up in almost every conversation. We already do kubernetes, so we have a kubernetes standard and that's largely true. And most of the enterprises I speak to their using one of the many on premises distributions of the cloud distributions and they're all fine. They're all fine for what they were built for. Israel was generally built for something a little different. Yes, everybody can run microservices based applications, devoPS based workloads, but where is Meryl is different is for those data intensive and clustered applications. Those sort of applications require a certain degree of network awareness, persistent storage etcetera, which requires either a significant amount of intelligence. Either you have to write in go lang or you have to write your own operators or Israel can be that easy button. We deploy those state full applications because we bring a persistent storage later that came from that bar we're really good at deploying those stable clustered applications and in fact we've open sourced that as a project cube director that came from Blue data and we're really good at securing these using spiffy inspire to ensure that there is that zero trust approach that came from side tail and we've wrapped all of that in kubernetes so now you can take the most difficult, gnarly, complex data intensive applications in your enterprise and deploy them using open source and if that means we have to coexist with an existing kubernetes distribution, that's fine. That's actually the most common scenario that I walk into is I start asking about what about these other applications you haven't done yet? The answer is usually we haven't gotten to him yet or we're thinking about it and that's when we talk about the capabilities of s role and I usually get the response, oh, a we didn't know you existed and be, well, let's talk about how exactly you do that. So again, it's more of a coexist model rather than a compete with model. Dave >>Well, that makes sense. I mean, I think again, a lot of people think, oh yeah, Kubernetes, no big deal, it's everywhere. But you're talking about a solution, I'm kind of taking a platform approach with capabilities, you've got to protect the data. A lot of times these microservices aren't some micro uh and things are happening really fast, You've got to be secure, you've got to be protected. And like you said, you've got a single phone number, you know, people say one throat to choke, Somebody said the other day said no, no single hand to shake, it's more of a partnership and I think that's a proposed for HPV met with your >>hair better. >>So you know, thinking about this whole, you know, we've gone through the pre big data days and the big data was all, you know, the hot buzz where people don't maybe necessarily use that term anymore, although the data is bigger and getting bigger, which is kind of ironic. Um where do you see this whole space going? We've talked about that sort of trends are breaking down the silos, decentralization. Maybe these hyper specialized roles that we've created maybe getting more embedded are lined with the line of business. How do you see it feels like the last, the next 10 years are going to be different than the last 10 years. How do you see it matt? >>I completely agree. I think we are entering this next era and I don't know if it's well defined, I don't know if I would go out on an edge to say exactly what the trend is going to be. But as you said earlier, data lakes really turned into data swamps. We ended up with lots of them in the enterprise and enterprises had to allow that to happen. They had to let each business unit or each group of users collect the data that they needed and I. T. Sort of had to deal with that down the road. And so I think the more progressive organizations are leading the way they are again taking those lessons from cloud and application developments, microservices and they're allowing a freedom of choice there, allowing data to move to where those applications are. And I think this decentralized approach is really going to be king. And you're gonna see traditional software packages, you're gonna see open source, you're going to see a mix of those. But what I think we'll probably be common throughout all of that is there's going to be this sense of automation, this sense that we can't just build an algorithm once released and then wish it luck that we've got to treat these these analytics and these these data systems as living things that there's life cycles that we have to support, which means we need to have devops for our data science. We need a ci cd for our data analytics. We need to provide engineering at scale like we do for software engineering. That's going to require automation and an organizational thinking process to allow that to actually occur. And so I think all of those things that sort of people process product, but it's all three of those things are going to have to come into play. But stealing those best ideas from cloud and application development, I think we're going to end up with probably something new over the next decade or so >>again, I'm loving this conversation so I'm gonna stick with it for a second. I it's hard to predict, but I'll some takeaways that I have matt from our conversation. I wonder if you could, you could comment. I think, you know, the future is more open source. You mentioned automation deV's are going to be key. I think governance as code, security designed in at the point of code creation is going to be critical. It's not no longer to be a bolt on and I don't think we're gonna throw away the data warehouse or the data hubs or the data lakes. I think they become a node. I like this idea and you know, jim octagon. But she has this idea of a global data mesh where these tools lakes, whatever their their node on the mesh, they're discoverable. They're shareable. They're they're governed uh in a way and that really I think the mistake a lot of people made early on in the big data movement, Oh we have data, we have to monetize our data as opposed to thinking about what products that I can I build that are based on data that then I can, you know, can lead to monetization. And I think and I think the other thing I would say is the business has gotten way too technical. All right. It's an alienated a lot of the business lines and I think we're seeing that change. Um and I think, you know, things like Edinburgh that simplify that are critical. So I'll give you the final thoughts based on my rent. >>I know you're ready to spot on. Dave. I think we we were in agreement about a lot of things. Governance is absolutely key. If you don't know where your data is, what it's used for and can apply policies to it, it doesn't matter what technology throw at it, you're going to end up in the same state that you're essentially in today with lots of swamps. Uh I did like that concept of of a note or a data mesh. It kind of goes back to the similar thing with a service smashed or a set of a P I is that you can use. I think we're going to have something similar with data that the trick is always how heavy is it? How easy is it to move about? And so I think there's always gonna be that latency issue. Maybe not within the data center, but across the land, latency is still going to be key, which means we need to have really good processes to be able to move data around. As you said, government determine who has access to what, when and under what conditions and then allow it to be free, allow people to bring their choice of tools, provision them how they need to while providing that audit compliance and control. And then again, as as you need to provision data across those notes for those use cases do so in a well measured and govern way. I think that's sort of where things are going. But we keep using that term governance. I think that's so key. And there's nothing better than using open source software because that provides traceability, the audit ability and this frankly openness that allows you to say, I don't like where this project is going. I want to go in a different direction and it gives those enterprises that control over these platforms that they've never had before. >>Matt. Thanks so much for the discussion. I really enjoyed it. Awesome perspectives. >>Well, thank you for having me. Dave are excellent conversation as always. Uh, thanks for having me again. >>All right. You're very welcome. And thank you for watching everybody. This is the cubes continuous coverage of HP discover 2021 of course, the virtual version next year. We're gonna be back live. My name is Dave a lot. Keep it right there. >>Yeah.

>>from around the globe. It's the Cube with digital coverage of HP Green Lake day made possible by Hewlett Packard Enterprise. Okay, we're not gonna dive right into some of the news and get into the Green Lake Announcement details. And with me to do that is Keith White is the senior vice president and general manager for Green Lake Cloud Services and Hewlett Packard Enterprise. Keith, thanks for your time. Great to see you. >>Hey, thanks so much for having me. I'm really excited to be here. >>You're welcome. And so listen, before we get into the hard news, can you give us an update on just Green Lake and the business? How's it going? >>You bet. No, it's fantastic. And thanks, you know, for the opportunity again. And hey, I hope everyone's at home staying safe and healthy. It's been a great year for HP Green Lake. There's a ton of momentum that we're seeing in the market place. Uh, we've booked over $4 billion of total contract value to date, and that's over 1000 customers worldwide, and frankly, it's worldwide. It's in 50 50 different countries, and this is a variety of solutions. Variety of workloads. So really just tons of momentum. But it's not just about accelerating the current momentum. It's really about listening to our customers, staying ahead of their demands, delivering more value to them and really executing on the HB Green Lake. Promise. >>Great. Thanks for that and really great detail. Congratulations on the progress, but I know you're not done. So let's let's get to the news. What do people need to know? >>Awesome. Yeah, you know, there's three things that we want to share with you today. So first is all about it's computing. So I could go into some details on that were actually delivering new industry work clothes, which I think will be exciting for a lot of the major industries that are out there. And then we're expanding RHP capabilities just to make things easier and more effective. So first off, you know, we're excited to announce today, um, acceleration of mainstream as adoption for high performance computing through HP Green Lake. And you know, in essence, what we're really excited about is this whole idea of it's a. It's a unique opportunity to write customers with the power of an agile, elastic paper use cloud experience with H. P s market. See systems. So pretty soon any enterprise will be able to tackle their most demanding compute and did intensive workloads, power, artificial intelligence and machine learning initiatives toe provide better business insights and outcomes and again providing things like faster time to incite and accelerated innovation. So today's news is really, really gonna help speed up deployment of HPC projects by 75% and reduced TCO by upto 40% for customers. >>That's awesome. Excited to learn more about the HPC piece, especially. So tell us what's really different about the news today From your perspective. >>No, that's that's a great thing. And the idea is to really help customers with their business outcomes, from building safer cars to improving their manufacturing lines with sustainable materials. Advancing discovery for drug treatment, especially in this time of co vid or making critical millisecond decisions for those finance markets. So you'll see a lot of benefits and a lot of differentiation for customers in a variety of different scenarios and industries. >>Yeah, so I wonder if you could talk a little bit mawr about specifically, you know exactly what's new. Can you unpack some of that for us? >>You bet. Well, what's key is that any enterprise will be able to run their modeling and simulation work clothes in a fully managed because we manage everything for them pre bundled. So we'll give folks this idea of small, medium and large H p e c h piece services to operate in any data center or in a cold a location. These were close air, almost impossible to move to the public cloud because the data so large or it needs to be close by for Leighton see issues. Oftentimes, people have concerns about I p protection or applications and how they run within that that local environment. So if customers are betting their business on this insight and analytics, which many of them are, they need business, critical performance and experts to help them with implementation and migration as well as they want to see resiliency. >>So is this a do it yourself model? In other words, you know the customers have toe manage it on their own. Or how are you helping there? >>No, it's a great question. So the fantastic thing about HP Green Lake is that we manage it all for the customer. And so, in essence, they don't have to worry about anything on the back end, we can flow that we manage capacity. We manage performance, we manage updates and all of those types of things. So we really make it. Make it super simple. And, you know, we're offering these bundled solutions featuring RHP Apollo systems that are purpose built for running things like modeling and simulation workloads. Um, and again, because it's it's Green Lake. And because it's cloud services, this provides itself. Service provides automation. And, you know, customers can actually, um, manage however they want to. We can do it all for them. They could do some on their own. It's really super easy, and it's really up to them on how they want to manage that system. >>What about analytics? You know, you had a lot of people want to dig deeper into the data. How are you supporting that? >>Yeah, Analytics is key. And so one of the best things about this HPC implementation is that we provide unopened platform so customers have the ability to leverage whatever tools they want to do for analytics. They can manage whatever systems they want. Want to pull data from so they really have a ton of flexibility. But the key is because it's HP Green Lake, and because it's HP es market leading HPC systems, they get the fastest they get the it all managed for them. They only pay for what they use, so they don't need to write a huge check for a large up front. And frankly, they get the best of all those worlds together in order to come up with things that matter to them, which is that true business outcome, True Analytics s so that they could make the decisions they need to run their business. >>Yeah, that's awesome. You guys clearly making some good progress here? Actually, I see it really is a game changer for the types of customers that you described. I mean, particularly those folks that you like. You said You think they can't move stuff into the cloud. They've got to stay on Prem. But they want that cloud experience. I mean, that's that's really exciting. We're gonna have you back in a few minutes to talk about the Green Lake Cloud services and in some of the new industry platforms that you see evolving >>awesome. Thanks so much. I look forward to it. >>Yeah, us too. So Okay, right now we're gonna check out the conversation that I had earlier with Pete Ungaro and Addison Snell on HPC. Let's watch welcome everybody to the spotlight session here green. Late day, We're gonna dig into high performance computing. Let me first bring in Pete Ungaro, Who's the GM for HPC and Mission Critical solutions, that Hewlett Packard Enterprise. And then we're gonna pivot Addison Snell, who is the CEO of research firm Intersect 3. 60. So, Pete, starting with you Welcome. And really a pleasure to have you here. I want to first start off by asking you what is the key trends that you see in the HPC and supercomputing space? And I really appreciate if you could talk about how customer consumption patterns are changing. >>Yeah, I appreciate that, David, and thanks for having me. You know, I think the biggest thing that we're seeing is just the massive growth of data. And as we get larger and larger data sets larger and larger models happen, and we're having more and more new ways to compute on that data. So new algorithms like A. I would be a great example of that. And as people are starting to see this, especially they're going through a digital transformations. You know, more and more people I believe can take advantage of HPC but maybe don't know how and don't know how to get started on DSO. They're looking for how to get going into this environment and many customers that are longtime HBC customers, you know, just consume it on their own data centers. They have that capability, but many don't and so they're looking at. How can I do this? Do I need to build up that capability myself? Do I go to the cloud? What about my data and where that resides. So there's a lot of things that are going into thinking through How do I start to take advantage of this new infrastructure? >>Excellent. I mean, we all know HPC workloads. You're talking about supporting research and discovery for some of the toughest and most complex problems, particularly those that affecting society. So I'm interested in your thoughts on how you see Green Lake helping in these endeavors specifically, >>Yeah, One of the most exciting things about HPC is just the impact that it has, you know, everywhere from, you know, building safer cars and airplanes. Thio looking at climate change, uh, to, you know, finding new vaccines for things like Covic that we're all dealing with right now. So one of the biggest things is how do we take advantage event and use that to, you know, benefit society overall. And as we think about implementing HPC, you know, how do we get started? And then how do we grow and scale as we get more and more capability? So that's the biggest things that we're seeing on that front. >>Yes. Okay, So just about a year ago, you guys launched the Green Lake Initiative and the whole, you know, complete focus on as a service. So I'm curious as to how the new Green Lake services the HPC services specifically as it relates to Greenlee. How do they fit in the H. P s overall high performance computing portfolio and the strategy? >>Yeah, great question. You know, Green Lake is a new consumption model for eso. It's a very exciting We keep our entire HPC portfolio that we have today, but extend it with Green Lake and offer customers you know, expanded consumption choices. So, you know, customers that potentially are dealing with the growth of their data or they're moving toe digital transformation applications they can use green light just easily scale up from workstations toe, you know, manage their system costs or operational costs, or or if they don't have staff to expand their environment. Green Light provides all of that in a manage infrastructure for them. So if they're going from like a pilot environment up into a production environment over time, Green Lake enables them to do that very simply and easily without having toe have all that internal infrastructure people, computer data centers, etcetera. Green Lake provides all that for them so they can have a turnkey solution for HBC. >>So a lot easier entry strategies. A key key word that you use. There was choice, though. So basically you're providing optionality. You're not necessarily forcing them into a particular model. Is that correct? >>Yeah, 100%. Dave. What we want to do is just expand the choices so customers can buy a new choir and use that technology to their advantage is whether they're large or small. Whether they're you know, a startup or Fortune 500 company, whether they have their own data centers or they wanna, you know, use a Coehlo facility whether they have their own staff or not, we want to just provide them the opportunity to take advantage of this leading edge resource. >>Very interesting, Pete. It really appreciate the perspective that you guys have bring into the market. I mean, it seems to me it's gonna really accelerate broader adoption of high performance computing, toe the masses, really giving them an easier entry point I want to bring in now. Addison Snell to the discussion. Addison. He's the CEO is, I said of Intersect 3 60 which, in my view, is the world's leading market research company focused on HPC. Addison, you've been following the space for a while. You're an expert. You've seen a lot of changes over the years. What do you see is the critical aspect in the market, specifically as it relates toward this as a service delivery that we were just discussing with Pete and I wonder if you could sort of work in their the benefits in terms of, in your view, how it's gonna affect HPC usage broadly. Yeah, Good morning, David. Thanks very much for having me, Pete. It's great to see you again. So we've been tracking ah lot of these utility computing models in high performance computing for years, particularly as most of the usage by revenue is actually by commercial endeavors. Using high performance computing for their R and D and engineering projects and the like. And cloud computing has been a major portion of that and has the highest growth rate in the market right now, where we're seeing this double digit growth that accounted for about $1.4 billion of the high performance computing industry last year. But the bigger trend on which makes Green like really interesting is that we saw an additional about a billion dollars worth of spending outside what was directly measured in the cloud portion of the market in in areas that we deemed to be cloud like, which were as a service types of contracts that were still utility computing. But they might be under a software as a service portion of the budget under software or some other managed services type of contract that the user wasn't reported directly is cloud, but it was certainly influenced by utility computing, and I think that's gonna be a really dominant portion of the market going forward. And when we look at growth rate and where the market's been evolving, so that's interesting. I mean, basically, you're saying this, you know, the utility model is not brand new. We've seen that for years. Cloud was obviously a catalyst that gave that a boost. What is new, you're saying is and I'll say it this way. I'd love to get your independent perspective on this is so The definition of cloud is expanding where it's you know, people always say it's not a place, it's an experience and I couldn't agree more. But I wonder if you could give us your independent perspective on that, both on the thoughts of what I just said. But also, how would you rate H. P. E s position in this market? Well, you're right, absolutely, that the definition of cloud is expanding, and that's a challenge when we run our surveys that we try to be pedantic in a sense and define exactly what we're talking about. And that's how we're able to measure both the direct usage of ah, typical public cloud, but also ah more flexible notion off as a service. Now you asked about H P E. In particular, And that's extremely relevant not only with Green Lake but with their broader presence in high performance computing. H P E is the number one provider of systems for high performance computing worldwide, and that's largely based on the breath of H. P s offerings, in addition to their performance in various segments. So picking up a lot of the commercial market with their HP apology and 10 plus, they hit a lot of big memory configurations with Superdome flex and scale up to some of the most powerful supercomputers in the world with the HP Cray X platforms that go into some of the leading national labs. Now, Green Light gives them an opportunity to offer this kind of flexibility to customers rather than committing all it wants to a particular purchase price. But if you want to do position those on a utility computing basis pay for them as a service without committing to ah, particular public cloud. I think that's an interesting role for Green Lake to play in the market. Yeah, it's interesting. I mean earlier this year, we celebrated Exa scale Day with support from HP, and it really is all about a community and an ecosystem is a lot of camaraderie going on in the space that you guys are deep into, Addison says. We could wrap. What should observers expect in this HPC market in this space over the next a few years? Yeah, that's a great question. What to expect because of 2020 has taught us anything. It's the hazards of forecasting where we think the market is going. When we put out a market forecast, we tend not to look at huge things like unexpected pandemics or wars. But it's relevant to the topic here because, as I said, we were already forecasting Cloud and as a service, models growing. Any time you get into uncertainty, where it becomes less easy to plan for where you want to be in two years, three years, five years, that model speaks well to things that are cloud or as a service to do very well, flexibly, and therefore, when we look at the market and plan out where we think it is in 2020 2021 anything that accelerates uncertainty actually is going. Thio increase the need for something like Green Lake or and as a service or cloud type of environment. So we're expecting those sorts of deployments to come in over and above where we were already previously expected them in 2020 2021. Because as a service deals well with uncertainty. And that's just the world we've been in recently. I think there's a great comments and in a really good framework. And we've seen this with the pandemic, the pace at which the technology industry in particular, of course, HP specifically have responded to support that your point about agility and flexibility being crucial. And I'll go back toe something earlier that Pete said around the data, the sooner we can get to the data to analyze things, whether it's compressing the time to a vaccine or pivoting our business is the better off we are. So I wanna thank Pete and Addison for your perspectives today. Really great stuff, guys. Thank you. >>Yeah, Thank you. >>Alright, keep it right there from, or great insights and content you're watching green leg day. Alright, Great discussion on HPC. Now we're gonna get into some of the new industry examples and some of the case studies and new platforms. Keith HP, Green Lake It's moving forward. That's clear. You're picking up momentum with customers, but can you give us some examples of platforms for industry use cases and some specifics around that? >>You know, you bet, and actually you'll hear more details from Arwa Qadoura she leads are green like the market efforts in just a little bit. But specifically, I want to highlight some examples where we provide cloud services to help solve some of the most demanding workloads on the planet. So, first off in financial services, for example, traditional banks are facing increased competition and evolving customer expectations they need to transform so that they can reduce risk, manage cop and provided differentiated customer experience. We'll talk about a platform for Splunk that does just that. Second, in health care institutions, they face the growing list of challenges, some due to the cove in 19 Pandemic and others. Years in the making, like our aging population and rise in chronic disease, is really driving up demands, and it's straining capital budgets. These global trance create a critical need for transformation. Thio improve that patient experience and their business outcomes. Another example is in manufacturing. They're facing many challenges in order to remain competitive, right, they need to be able to identify new revenue streams run more efficiently from an operation standpoint and scale. Their resource is so you'll hear more about how we're optimizing and delivery for manufacturing with S. A P Hana and always gonna highlight a little more detail on today's news how we're delivering supercomputing through HP Green Lake It's scale and finally, how we have a robust ecosystem of partners to help enterprises easily deploy these solutions. For example, I think today you're gonna be talking to Skip Bacon from Splunk. >>Yeah, absolutely. We sure are. And some really great examples there, especially a couple industries that that stood out. I mean, financial services and health care. They're ripe for transformation and maybe disruption if if they don't move fast enough. So Keith will be coming back to you a little later today to wrap things up. So So thank you. Now, now we're gonna take a look at how HP is partnering with Splunk and how Green Lake compliments, data rich workloads. Let's watch. We're not going to dig deeper into a data oriented workload. How HP Green Lake fits into this use case and with me, a Skip Bacon vice president, product management at Splunk Skip. Good to see >>you. Good to see you as well there. >>So let's talk a little bit about Splunk. I mean, you guys are a dominant player and security and analytics and you know, it's funny, Skip, I used to comment that during the big data, the rise of big data Splunk really never positioned themselves is this big data player, and you know all that hype. But But you became kind of the leader in big data without really, even, you know, promoting it. It just happened overnight, and you're really now rapidly moving toward a subscription model. You're making some strategic moves in the M and a front. Give us your perspective on what's happening at the company and why customers are so passionate about your software. >>Sure, a great, great set up, Dave. Thanks. So, yeah, let's start with the data that's underneath big data, right? I think I think it is usual. The industry sort of seasons on a term and never stops toe. Think about what it really means. Sure, one big part of big data is your transaction and stuff, right? The things that catch generated by all of your Oracle's USC Cheops that reflect how the business actually occurred. But a much bigger part is all of your digital artifacts, all of the machine generated data that tells you the whole story about what led up to the things that actually happened right within the systems within the interactions within those systems. That's where Splunk is focused. And I think what the market is the whole is really validating is that that machine generated data those digital artifacts are a tely least is important, if not more so, than the transactional artifacts to this whole digital transformation problem right there. Critical to showing I t. How to get better developing and deploying and operating software, how to get better securing these systems, and then how to take this real time view of what the business looks like as it's executing in the software right now. And hold that up to and inform the business and close that feedback loop, right? So what is it we want to do differently digitally in order to do different better on the transformation side of the house. So I think a lot of splints. General growth is proof of the value crop and the need here for sure, as we're seeing play out specifically in the domains of ICTs he operations Dev, ops, Cyber Security, right? As well as more broadly in that in that cloak closing the business loop Splunk spin on its hair and growing our footprint overall with our customers and across many new customers, we've been on its hair with moving parts of that footprints who and as a service offering and spawn cloud. But a lot of that overall growth is really fueled by just making it simpler. Quicker, faster, cheaper, easier toe operates Plunkett scale because the data is certainly not slowing down right. There's more and more and more of it every day, more late, their potential value locked up in it. So anything that we can do and that our partners conducive to improve the cost economics to prove the agility to improve the responsiveness of these systems is huge. That that customer value crop and that's where we get so excited about what's going on with green life >>Yeah, so that makes sense. I mean, the digital businesses, a data business. And that means putting data at the core. And Splunk is obviously you keep part of that. So, as I said earlier, spunk your leader in this space, what's the deal with your HP relationship? You touched on that? What should we know about your your partnership? And what's that solution with H h p E? What's that customer Sweet spot. >>Yep. Good. All good questions. So we've been working with HP for quite a while on on a number of different fronts. This Green lake peace is the most interesting and sort of the intersection of, you know, purist intersection of both of these threads of these factories, if you will. So we've been working to take our core data platform deployed on an enterprise operator for kubernetes. Stick that a top H P s green like which is really kubernetes is a service platform and go prove performance, scalability, agility, flexibility, cost economics, starting with some of slugs, biggest customers. And we've proven, you know, alot of those things In great measure, I think the opportunity you know, the ability to vertically scale Splunk in containers that taught beefy boxes and really streamline the automation, the orchestration, the operations, all of that yields what, in the words of one of our mutual customers, literally put it as This is a transformational platform for deploying and operating spot for us so hard at work on the engineering side, hard at work on the architectural referencing, sizing, you know, capacity planning sides, and then increasing really rolling up our sleeves and taking the stuff the market together. >>Yeah, I mean, we're seeing the just the idea of cloud. The definition of cloud expanding hybrid brings in on Prem. We talked about the edge and and I really We've seen Splunk rapidly transitioning its pricing model to a subscription, you know, platform, if you will. And of course, that's what Green Lakes all about. What makes Splunk a good fit for Green Lake and vice versa? What does it mean for customers? >>Sure, So a couple different parts, I think, make make this a perfect marriage. Splunk at its core, if you're using it well, you're using it in a very iterative discovery driven kind of follow you the path to value basis that makes it a little hard to plan the infrastructure and decides these things right. We really want customers to be focused on how to get more data in how to get more value out. And if you're doing it well, those things, they're going to go up and up and up over time. You don't wanna be constrained by size and capacity planning, procurement cycles for infrastructure. So the Green Lake model, you know, customers got already deployed systems already deployed, capacity available in and as the service basis, very fast, very agile. If they need a next traunch of capacity to bring in that next data set or run, that next set of analytics right it's available immediately is a service, not hey, we've got to kick off the procurement cycle for a whole bunch more hardware boxes. So that flexibility, that agility or key to the general pattern for using Splunk and again that ability to vertically scale stick multiple Splunk instances into containers and load more and more those up on these physical boxes right gives you great cost economics. You know, Splunk has a voracious appetite for data for doing analytics against that data less expensive, we can make that processing the better and the ability to really fully sweat, you know, sweat the assets fully utilize those assets. That kind of vertical scale is the other great element of the Green Lake solution. >>Yes. I mean, when you think about the value prop for for customers with Splunk and HP green, that gets a lot of what you would expect from what we used to talk about with the early days of cloud. Uh, that that flexibility, uh, it takes it away. A lot of the sort of mundane capacity planning you can shift. Resource is you talked about, you know, scale in a in a number of of use cases. So that's sort of another interesting angle, isn't it? >>Yeah. Faster. It's the classic text story. Faster, quicker, cheaper, easier, right? Just take in the whole whole new holy levels and hold the extremes with these technologies. >>What do you see? Is the differentiators with Splunk in HP, Maybe what's different from sort of the way we used to do things, but also sort of, you know, modern day competition. >>Yeah. Good. All good. All good questions. So I think the general attributes of splinter differentiated green Laker differentiated. I think when you put them together, you get this classic one plus one equals three story. So what? I hear from a lot of our target customers, big enterprises, big public sector customers. They can see the path to these benefits. They understand in theory how these different technologies would work together. But they're concerned about their own skills and abilities to go building. Run those and the rial beauty of Green Lake and Splunk is this. All comes sort of pre design, pre integrated right pre built HP is then they're providing these running containers as a service. So it's taking a lot of the skills and the concerns off the customers plate right, allowing them to fast board to, you know, cutting edge technology without any of the wrist. And then, most importantly, allowing customers to focus their very finite resource is their peoples their time, their money, their cycles on the things that are going to drive differentiated value back to the business. You know, let's face facts. Buying and provisioning Hardware is not a differentiating activity, running containers successfully, not differentiating running the core of Splunk. Not that differentiating. He can take all of those cycles and focus them instead on in the simple mechanics. How do we get more data in? Run more analytics on it and get more value out? Right then you're on the path to really delivering differentiated, you know, sustainable competitive basis type stuff back to the business, back to that digital transformation effort. So taking the skills out, taking the worries out, taking the concerns about new tech, out taking the procurement cycles, that improving scalability again quicker, faster, cheaper. Better for sure. >>It's kind of interesting when you when you look at the how the parlance has evolved from cloud and then you had Private Cloud. We talk a lot about hybrid, but I'm interested in your thoughts on why Splunk and HP Green Light green like now I mean, what's happening in the market that makes this the right place and in the right time, so to speak. >>Yeah, again, I put cloud right up there with big data is one of those really overloaded terms. Everything we keep keep redefining as we go if we define it. One way is as an experience instead of outcomes that customers looking for right, what does anyone of our mutual customers really want Well, they want capabilities that air quick to get up and running that air fast, to get the value that are aligned with how the price wise, with how they deliver value to the business and that they can quickly change right as the needs of the business and the operation shift. I think that's the outcome set that people are looking thio. Certainly the early days of cloud we thought were synonymous with public cloud. And hey, the way that you get those outcomes is you push things out. The public cloud providers, you know, what we saw is a lot of that motion in cases where there wasn't the best of alignment, right? You didn't get all those outcomes that you were hoping for. The cost savings weren't there or again. These big enterprises, these big organizations have a whole bunch of other work clothes that aren't necessarily public cloud amenable. But what they want is that same cloud experience. And this is where you see the evolution in the hybrid clouds and into private clouds. Yeah, any one of our customers is looking across the entirety of this landscape, things that are on Prem that they're probably gonna be on Prem forever. Things that they're moving into private cloud environments, things that they're moving into our growing or expanding or landing net new public cloud. They want those same outcomes, the same characteristics across all of that. That's a lot of Splunk value. Crop is a provider, right? Is we can go monitor and help you operate and developed and secure exactly all of that, no matter where it's located. Splunk on Green Lake is all about that stack, you know, working in that very cloud native way even where it made sense for customers to deploy and operate their own software. Even if this want, they're running over here themselves is hoping the modern, secure other work clothes that they put into their public cloud environments. >>Well, it Z another key proof point that we're seeing throughout the day here. Your software leader, you know, HP bring it together. It's ecosystem partners toe actually deliver tangible value. The customers skip. Great to hear your perspective today. Really appreciate you coming on the program. >>My pleasure. And thanks so much for having us take care. Stay well, >>Yeah, Cheers. You too. Okay, keep it right there. We're gonna go back to Keith now. Have him on a close out this segment of the program. You're watching HP Green Lake Day on the Cube. All right, We're So we're seeing some great examples of how Green Lake is supporting a lot of different industries. A lot of different workloads we just heard from Splunk really is part of the ecosystem. Really? A data heavy workload. And we're seeing the progress. HPC example Manufacturing. We talked about healthcare financial services, critical industries that are really driving towards the subscription model. So, Keith, thanks again for joining us. Is there anything else that we haven't hit that you feel are audience should should know about? >>Yeah, you bet. You know, we didn't cover some of the new capabilities that are really providing customers with the holistic experience to address their most demanding workloads with HP Green Lake. So first is our Green Lake managed security services. So this provides customers with an enterprise grade manage security solution that delivers lower costs and frees up a lot of their resource is the second is RHP advisory and Professional Services Group. So they help provide customers with tools and resource is to explore their needs for their digital transformation. Think about workshops and trials and proof of concepts and all of that implementation. Eso You get the strategy piece, you get the advisory piece, and then you get the implementation piece that's required to help them get started really quickly. And then third would be our H. P s moral software portfolio. So this provides customers with the ability to modernize their absent data unify, hybrid cloud and edge computing and operationalized artificial intelligence and machine learning and analytics. >>You know, I'm glad that you brought in the sort of machine intelligence piece in the machine learning because that's, ah, lot of times. That's the reason why people want to go to the cloud at the same time you bring in the security piece a lot of reasons why people want to keep things on Prem. And, of course, the use cases here. We're talking about it, really bringing that cloud experience that consumption model on Prem. I think it's critical critical for companies because they're expanding their notion of cloud computing really extending into hybrid and and the edge with that similar experience or substantially the same experience. So I think folks are gonna look at today's news as real progress. We're pushing you guys on some milestones and some proof points towards this vision is a critical juncture for organizations, especially those look, they're looking for comprehensive offerings to drive their digital transformations. Your thoughts keep >>Yeah, I know you. You know, we know as many as 70% of current and future APS and data are going to remain on Prem. They're gonna be in data centers, they're gonna be in Colo's, they're gonna be at the edge and, you know, really, for critical reasons. And so hybrid is key. As you mentioned, the number of times we wanna help customers transform their businesses and really drive business outcomes in this hybrid, multi cloud world with HP Green Lake and are targeted solutions. >>Excellent. Keith, Thanks again for coming on the program. Really appreciate your time. >>Always. Always. Thanks so much for having me and and take Take care of. Stay healthy, please. >>Alright. Keep it right there. Everybody, you're watching HP Green Lake day on the Cube