>>The transformation of Dell into Dell emc. And now Dell Technologies has been one of the most remarkable stories in the history of the enterprise technology industry. The company has gone from a Wall Street darling rocket ship PC company to a Midling enterprise player, forced to go private to a debt laden powerhouse that controlled one of the most valuable assets in enterprise tech i e VMware, and now is a hundred billion dollar giant with a low margin business. A strong balance sheet in the broadest hardware portfolio in the industry and financial magic that Dell went through would make anyone's head spin. The last lever of Dell EMC of the Dell EMC deal was detailed in Michael Dell's book Play Nice But Win in a captivating chapter called Harry You and the Bolt from the Blue Michael Dell described how he and his colleagues came up with the final straw of how to finance the deal. >>If you haven't read it, you should. And of course, after years of successfully integrating EMC and becoming VMware's number one distribution channel, all of this culminated in the spin out of VMware from Dell and a massive wealth creation milestone pending, of course the Broadcom acquisition of VMware. So where's that leave Dell and what does the future look like for this technology powerhouse? Hello and welcome to the Cube's exclusive coverage of Dell Technology Summit 2022. My name is Dave Ante and I'll be hosting the program. Now today in conjunction with the Dell Tech Summit, we're gonna hear from four of Dell's senior executives, Tom Sweet, who's the CFO of Dell Technologies. He's gonna share his views on the company's position and opportunities going forward. He's gonna answer the question, why is Dell a good long-term investment? Then we'll hear from Jeff Boudreau, who's the president of Dell's ISG business. >>That unit is the largest profit driver of Dell. He's gonna talk about the product angle and specifically how Dell is thinking about solving the multi-cloud challenge. And then Sam Groot, who is the senior vice president of marketing, will come on the program and give us the update on Apex, which is Dell's as a service offering, and then the new Edge platform called Project Frontier. Now it's also cyber security Awareness month that we're gonna see if Sam has, you know, anything to say about that. Then finally, for a company that's nearly 40 years old, Dell actually has some pretty forward thinking philosophies when it comes to its culture and workforce. And we're gonna speak with Jen Vera, who's Dell's chief Human Resource Resource Officer about hybrid work and how Dell is thinking about the future of work. However, before we get into all this, I wanna share our independent perspectives on the company and some research that we'll introduce to frame the program. >>Now, as you know, we love data here at the cube and one of our partners, ETR has what we believe is the best spending intentions data for enterprise tech. So here's a graphic that shows ET R'S proprietary net score methodology in the vertical access. That's a measure of spending velocity. And on the X axis, his overlap of pervasiveness in the data sample, this is a cut for just the server, the storage, and the client sectors within the ETR taxonomy. So you can see Dell CSG products, laptops in particular are dominant on both the X and the Y dimensions. CSG is the client solutions group and accounts for nearly 60% of Dell's revenue and about half of its operating income. And then the arrow signifies that dot, that represents Dell's ISG business that we're gonna talk to Jeff Boudro about. That's the infrastructure solutions group. Now, ISG accounts for the bulk of of the remainder of Dell's business, and it is, it's, as I said, it's most profitable from a margin standpoint. >>It comprises the EMC storage business as well as the Dell server business and Dell's networking portfolio. And as a note, we didn't include networking in that cut had we done. So Cisco would've dominated the graphic. And frankly, Dell's networking business isn't industry leading in the same way that PCs, servers and storage are. And as you can see, the data confirms the leadership position Dell has in its client side, its server and its storage sectors. But the nuance is look at that red dotted line at 40% on the vertical axis that represents a highly elevated net score, and every company in the sector is below that line. Now we should mention that we also filtered the data for those companies with more than a hundred mentions in the survey, but the point remains the same. This is a mature business that generally is lower margin storage is the exception, but cloud has put pressure on margins even in that business in addition to the server space. >>The last point on this graphic is we put a box around VMware and it's prominently present on both the X and Y dimensions. VMware participates with purely software defined high margin offerings in this, in these spaces, and it gives you a sense of what might have been had Dell chosen to hold onto that asset or spin it into the company. But let's face it, the alternatives from Michael Dell were just too attractive and it's unlikely that a spin in would've unlocked the value in the way a spinout did, at least not in the near future. So let's take a look at the snapshot of Dell's financials. To give you a sense of where the company stands today, Dell is a company with over a hundred billion in revenue. Last quarter, it did more than 26 billion in revenue and grew at a quite amazing 9% rate for a company that size. >>But because it's a hardware company, primarily its margins are low with operating income, 10% of revenue, and at 21% gross margin with VMware on Dell's income statement before the spin, its gross margins. Were in the low thirties. Now, Dell only spends about 2% of revenue on r and d because because it's so big, it's still a lot of money. And you can see it is cash flow positive. Dell's free cash flow over the trailing 12 month period is 3.7 billion, but that's only 3.5% of trailing 12 month revenue. Dell's Apex, and of course it's hardware maintenance business is recurring revenue and that is only about 5 billion in revenue and it's growing at 8% annually. Now having said that, it's the equivalent of service now's total revenue. Of course, service now is 23% operating margin and 16% free cash flow margin and more than 5 billion in cash on the balance sheet and an 85 billion market cap. >>That's what software will do for you. Now Dell, like most companies, is staring at a challenging macro environment with FX headwinds, inflation, et cetera. You've heard the story and hence it's conservative and contracting revenue guidance. But the balance sheet transformation has been quite amazing. Thanks to VMware's cash flow, Michael Dell and his partners from Silver Lake at all, they put up around $4 billion of their own cash to buy EMC for 67 billion, and of course got VMware in the process. Most of that financing was debt that Dell put on its balance sheet to do the transaction to the tune of 46 billion. It added to the, to the balance sheet debt. Now Dell's debt, the core debt net of its financing operation is now down to 16 billion and it has 7 billion in cash in the balance sheet. So dramatic delta from just a few years ago. So pretty good picture. >>But Dell a hundred billion company is still only valued at 28 billion or around 26 cents on the revenue dollar H HP's revenue multiple is around 60 cents on the revenue dollar. HP Inc. Dell's, you know, laptop and PC competitor is around 45 cents. IBM's revenue multiple is almost two times. By the way, IBM has more than 50 billion in debt thanks to the Red Hat acquisition. And Cisco has a revenue multiple, it's over three x, about 3.3 x currently. So is Dell undervalued? Well, based on these comparisons with its peers, I'd say yes and no. Dell's performance relative to its peers in the market is very strong. It's winning and has an extremely adept go to market machine, but it's lack of software content and it's margin profile leads. One to believe that if it can continue to pull some valuation levers while entering new markets, it can get its valuation well above where it is today. >>So what are some of those levers and what might that look like going forward? Despite the fact that Dell doesn't have a huge software revenue component since spinning out VMware and it doesn't own a cloud, it plays in virtually every part of the hardware market and it can provide infrastructure for pr pretty much any application in any use case and pretty much any industry and pretty much any geography in the world and it can serve those customers. So its size is an advantage. However, the history for hardware heavy companies that try to get bigger has some notable failures, namely hp, which had to split into two businesses, HP Inc. And hp E and ibm, which has had in abysmal decade from a performance standpoint and has had to shrink to grow again and obviously do a massive 34 billion acquisition of Red Hat. So why will Dell do any better than these two? >>Well, it has a fantastic supply chain. It's a founder led company, which makes a cultural difference in our view, and it's actually comfortable with a low margin software, light business model. Most certainly, IBM wasn't comfortable with that and didn't have these characteristics, and HP was kind of just incomprehensible at the end. So Dell in my opinion, is a much better chance of doing well at a hundred billion or over, but we'll see how it navigates through the current headwinds as it's guiding down. Apex is essentially Dell's version of the cloud. Now remember, Dell got started late. HPE is further along from a model standpoint with GreenLake, but Dell has a larger portfolio, so they're gonna try to play on that advantage. But at the end of the day, these as a service offerings are simply ways to bring a utility model to existing customers and generate recurring revenue. >>And that's a good thing because customers will be loyal to an incumbent if it can deliver as a service and reduce risk for for customers. But the real opportunity lies ahead, specifically Dell is embracing the cloud model. It took a while, but they're on board as Matt Baker Dell's senior vice president of corporate strategy likes to say it's not a zero sum game. What it means by that is just because Dell doesn't own its own cloud, it doesn't mean Dell can't build value on top of hyperscale clouds, what we call super cloud. And that's Dell's strategy to take advantage of public cloud CapEx and connect on-prem to the cloud, create a unified experience across clouds and out to the edge that's ambitious and technically it's non-trivial. But listen to Dell's vice chairman and Coco, Jeff Clark, explain this vision, please play the clip. >>You said also technology and business models are tied together and enabler. That's if, if you believe that, then you have to believe that it's a business operating system that they want, They want to leverage whatever they can, and at the end of the day there's, they have to differentiate what they do. Well that, that's >>Exactly right. If I take that and what, what Dave was saying and and I, and I summarize it the following way, if we can take these cloud assets and capabilities, combine them in an orchestrated way to delivery a distributed platform, game over, >>Eh, pretty interesting, right? John Freer called it a business operating system. Essentially, I think of it sometimes as a cloud operating system or cloud operating environment to drive new business value on top of the hyperscale CapEx. Now, is it really game over? As Jeff Clark said, if Dell can do that, I'd say if it had that today, it might be game over for the competition, but this vision will take years to play out. And of course it's gotta be funded and now it's gonna take time. And in this industry it tends to move. Companies tend to move in lockstep. So as often as the case, it's gonna come down to execution and Dell's ability to enter new markets that are ideally, at least from my perspective, higher margin data management, extending data protection into cyber security as an adjacency and of course edge at telco slash 5G opportunities. >>All there for the taking. I mean, look, even if Dell doesn't go after more higher margin software content, it can thrive with a lower margin model just by penetrating new markets and throwing off cash from those markets. But by keeping close to customers and maybe through Tuck in acquisitions, it might be able to find the next nugget beyond today's cloud and on-prem models. And the last thing I'll call out is ecosystem. I say here ecosystem, ecosystem, ecosystem. Because a defining characteristic of a cloud player is ecosystem, and if Apex is Dell's cloud, it has the opportunity to expand that ecosystem dramatically. This is one of the company's biggest opportunities and challenges. At the same time, in my view, it's just scratching the surface on its partner ecosystem. And it's ecosystem today is is both reseller heavy and tech partner heavy. And that's not a bad thing, but in a, but it's starting to evolve more rapidly. >>The snowflake deal is an example of up to stack evolution, but I'd like to see much more out of that snowflake relationship and more relationships like that. Specifically I'd like to see more momentum with data and database. And if we live at a data heavy world, which we do, where the data and the database and data management offerings, you know, coexist and are super important to customers, like to see that inside of Apex, like to see that data play beyond storage, which is really where it is today and it's early days. The point is with Dell's go to market advantage, which which company wouldn't treat Dell like the on-prem hybrid edge super cloud player that I wanna partner with to drive more business. You'd be crazy not to, but Dell has a lot on its plate and we'd like to see some serious acceleration on the ecosystem front. In other words, Dell as both a selling partner and a business enabler with its platform, its programmable infrastructure as a service. And that is a moving target that will rapidly involve. And of course we'll be here watching and reporting. So thanks for watching this preview of Dell Technology Summit 2022. I'm Dave Vte. We hope you enjoy the rest of the program.

>>the Cube presents H p E discover 2022. Brought to you by H P E. >>Okay, we're back at HPD. Discovered 2022 This is Day Three. We're kind of in the mid point of day three. John Furry and Dave Volonte Wall to wall coverage. I think there are 14th hp slash hp Discover we've sort of documented the history of the company over the last decade. Plus, I'm not a is here is executive vice president at Infosys and Cejudo. Sankaran Kutty is the CEO and vice president of Infosys. Infosys doing some amazing work in the field with clients. Guys, Thanks for coming on the Cube. Thank >>you for the opportunity. >>Yeah, absolutely so. Digital transformation. It's all the buzz word kind of pre pandemic. It was sort of Yeah, you know, we'll get there a lot of lip service to it. Some Some started the journey and then, of course, pandemic. If you weren't digital business, you are out of business. What are the trends that you're seeing now that we're exiting the isolation economy? >>Yeah, um, again, as you rightly called out pre pandemic, it was all about using sort of you know innovation at scale as one of the levers for digital transformation. But if you look at now, post Pandemic, one of the things that we see it's a big trend is at a broad level, right? Digital transformation is not about cost. Take out. Uh, it's all about growth, right? So essentially, uh, like, uh, what we hear from most of the CEO s and most of the customers and most of the executives in the tech company, Digital transformation should be used for business growth. And essentially, it means three things that we see three trends in that space. One is how can you build better products and solutions as part of your transformation strategy? How can you basically use digital transformation to expand into new markets and new new territories and new regions? And the third is, how can you better the experience for your customers? Right. So I think that is broadly what we see as, uh, some other things. And essentially, if you have better customer experience, they will buy more. If you expand into new markets, your revenue will increase. If you actually build better products and solutions, consumers will buy it right, so It's basically like a sort of an economy that goes hand in hand. So I would say the trend is clearly going towards business growth than anything else when it comes to the, >>you know, follow up on that. We had I d. C on yesterday and they were sharing with some of their high level numbers. We've looked at this and and and it seems like I t spending is pretty consistent despite the fact that, for example, you know, the to see the consumer businesses sort of tanking right now. Are you seeing any pullback or any evidence that people are pulling the reins back on the digital transformation Or they just going because if they don't keep keep moving fast, they're gonna fall behind. What are you seeing there? Absolutely. >>In fact, you know what? What we call them as the secular headwinds, right? I mean, if you look at the headwinds here, we see digital transformation is in the minds of everybody, every customer, right. So while there are budget constraints, where are all these macro tailwinds as we call with respect to inflation, with respect to what's happening with Russia and Ukraine with respect to everything that's happening with respect to supply chain right. I think we see some of those tail headwinds. But essentially, digital transformation is not stopping. Everybody is going after that because essentially they want to be relevant in the market. And if they want to be relevant in the market, they have to transform. And if they have to transform, they have to adopt digital transformation. >>Basically, there's no hiding anymore. You know, hiding and you can't hide the projects and give lip service because there's evidence of what the consequences are. And it can be quantified. Yes, you go out of business, you lose money. You mentioned some of the the cost takeouts growth is yes. So I got given the trends and the headwinds and the tail winds. What are you guys seeing as the pattern of companies that came out of the pandemic with growth? And what's going on with that growth driver? What are the elements that are powering companies to grow? Is that machine learning? Is that cloud scales and integration? What are some of the key areas that's given that extra up into the right? >>Yes, I I would say there are six technologies that are defining how growth is being enabled, right? So I think we call it as cloud ai edge five g, Iot and of course, everything to do with a And so these are six technologies that are powering digital transformation. And, uh, one of the things that we are saying is more and more customers are now coming and saying that we want to use these six technologies to drive business outcomes. Uh, for example, uh, we have a very large oil and gas customer of ours who says that, you know, we want to basically use cloud as a lever to Dr Decarbonization. E S G is such a big initiative for everybody in the SGS in the minds of everybody. So their outcome of using technology is to drive decarbonization. And they don't make sure that, you know, they achieve the goals of E. S G. Right There is another customer of ours in the retail space. They are saying we want to use cloud to drive experience for our employees. So I would say that you know, there is pretty much, you know, all these drivers which are helping not just growing their business, but also bettering the experience and meeting some of the organisation goals that they have set up with respect to cloud. So I would say Cloud is playing a big role in every digital transformation initiative of the company. >>How do you spend your time? What's the role of the CEO inside of a large organisation like Infosys? >>So, um, one is in terms of bringing in an outside in view of how technology is making an impact to our customers. And I'm looking at How do we actually start liberating some of these technologies in building solutions, you know, which can actually drive value for our customers? That's one of the focus areas. You know what I do? Um, And if you look at some of the trends, you know what we have seen in the past years as well as what we're seeing now? Uh, there's been a huge spend around cloud which is happening with our customers and predominantly around the cloud Native application development, leveraging some of the services. What's available from the cloud providers like eh? I am l in Hyoty. Um, and and there's also a new trend. You know what we are seeing off late now, which is, um, in terms of improving the experience overall experience liberating some of the technologies, like technologies like block, block, chain as well as we are, we are right, and and this is actually creating new set of solutions. Um, new demands, you know, for our customers in terms of leveraging technologies like matadors leveraging technologies like factory photo. Um, and these are all opportunities for us to build solutions, you know, which can, you know, improve the time to market for our customers in terms of adopting some of these things. Because there has been a huge focus on the improved end user experience or improve experience improved, uh, productivity of, uh, employees, you know, which is which has been a focus. Uh, post pandemic. Right? You know, it has been something which is happening pre pandemic, but it's been accelerated Post pandemic. So this is giving an opportunity for for my role right now in terms of liberating these technologies, building solutions, building value propositions, taking it to our customers, working with partners and then trying to see how we can have this tightly integrated with partners like HP E in this case, and then take it jointly to the market and and find out you know, what's what's the best we can actually give back to our customers? >>You know, you guys have been we've been following you guys for for a long, long time. You've seen many cycles, uh, in the industry. Um, and what's interesting to get your reaction to what we're seeing? A lot of acceleration points, whether it's cloud needed applications. But one is the software business is no longer there. It's open source now, but cloud scale integrations, new hybrid environment kind of brings and changes the game, so there's definitely software plentiful. You guys are doing a lot of stuff with the software. How are customers integrated? Because seeing more and more customers participating in the open source community uh, so what? Red hat's done. They're transforming the open shift. So as cloud native applications come in and get scale and open source software, cloud scale performance and integrations are big. You guys agree with that? >>Absolutely. Absolutely. So if you if you look at it, um, right from the way we can't socialise those solutions, um, open source is something What we have embedded big way right into the solution. Footprint. What we have one is, uh, the ability for us to scale the second is the ability for us to bring in a level of portability, right? And the third is, uh, ensuring that there is absolutely no locking into something. What we're building. We're seeing this this being resonated by our customers to because one is they want to build a child and scalable applications. Uh, it's something where the whole, I would say, the whole dependency on the large software stacks. Uh, you know, the large software providers is likely diminishing now, right? Uh, it's all about how can I simplify my application portfolio Liberating some of the open source technologies. Um, how can I deploy them on a multi cloud world liberating open standards so that I'm not locked into any of these providers? Um, how can I build cloud native applications, which can actually enable portability? And how can I work with providers who doesn't have a lock in, you know, into their solutions, >>And security is gonna be embedded in everything. Absolutely. >>So security is, uh, emperor, right from, uh, design phase. Right? You know, we call it a secure by design And that's something What? We drive for our customers right from our solutions as well as for developing their own solutions >>as opposed to secure by bolt on after the fact. What is the cobalt go to market strategy? How does that affect or how you do business within the HP ecosystem? Absolutely. >>I think you know what we did in, uh, in 2000 and 20. We were the first ones, uh, to come out with an integrated cloud brand called Cobalt. So essentially, our thought process was to make sure that, you know, we talk one consistent language with the customer. There is a consistent narrative. There is a consistent value proposition that we take right. So, essentially, if you look at the Cobalt gold market, it is based on three pillars. The first pillar is all about technology solutions. Getting out of data centres migrating were close to cloud E r. P on Cloud Cloud, Native Development, legacy modernisation. So we'll continue to do that because that's the most important pillar. And that's where our bread and butter businesses right. The second pillar is, uh, more and more customers are asking industry cloud. So what are you specifically doing for my industry. So, for example, if you look at banking, uh, they would say we are focused on Modernising our payment systems. We want to reduce the financial risk that we have because of anti money laundering and those kind of solutions that they're expecting. They want to better the security portion. And of course, they want to improve the experience, right? So they are asking for each of these imperatives that we have in banking. What are some of those specific industry solutions that you are bringing to the table? Right. So that's the second pillar of our global go to market. And the third pillar of our go to market as soon as I was saying is looking at what we call us Horizon three offerings, whether it is metal wars, whether it is 13.0, whether it is looking at something else that will come in the future. And how do we build those solutions which can become mainstream the next 18 to 24 months? So that's essentially the global >>market. That's interesting. Okay, so take the banking example where you've got a core app, it's probably on Prem, and it's not gonna have somebody shoved into the cloud necessarily. But they have to do things like anti money, money laundering and know your ky. See? How are they handling that? Are they building micro services? Are you building for them microservices layers around that that actually might be in the cloud or cloud Native on Prem and Greenway. How is that? How are customers Modernising? >>Absolutely brilliant question. In fact, what we have done is, uh, as part of cobalt, we have something called a reference. Architecture are basically a blueprint. So if you go to a bank and you're engaging a banking executive, uh, the language that we speak with them is not about, uh, private cloud or public cloud or AWS or HP or zero, right? I mean, we talk the language that they understand, which is the banking language. So we take this reference architecture, and we say here is what your core architecture should look like. And, as you rightly called out, there is K. I see there is retail banking. There is anti money laundering. There is security experience. Uh, there are some kpi s and those kind of things banking a PSR open banking as we call, How do we actually bring our solutions, which we have built on open source and something that are specific to cloud and something that our cloud neutral and that's what we take them. So we built this array of solutions around each of those reference architectures that we take to our customers. >>Final question for you guys. How are you guys leveraging the H, P E and new Green Lake and all the new stuff they got here to accelerate the customers journey to edge the cloud? >>So I would say it on three areas right now. This is one is Obviously we are working very closely with HP in terms of taking out solutions jointly to the market and, um, leveraging the whole green late model and providing what I call it as a hyper scale of like experience for our customers in a hybrid, multi cloud world. That's the first thing. The second thing is Onion talked about the cobalt, right? It's an important, I would say, an offering from, uh, you know and offering around cloud from our side. So what we've done is we've closely integrated the assets. You know what I was referring to what we have in our cobalt, uh, under other Kobold umbrella very closely with the HP ecosystem, right? You know, it can be tools like the Emphasis Polly Cloud Platform or the Emphasis pollinate platform very tightly integrated with the HP stack, so that we could actually offer the value proposition right across the value chain. The thought of you know we have actually taken the industry period, like what again mentioned right in terms of rather than talking about a public cloud or a private cloud solution or an edge computing solution. We actually talk about what exactly are the problem statements? What is there in manufacturing today? Or it's there in financial industries today? Or or it's in a bank today or whatever it's relevant to the industry. That's an industry people. So we talk right from an industry problem and and and and and and build that industry, industry people solutions, leveraging the assets, what we have in the and the framework that we have within the couple, plus the integrated solutions. What we bring along with HB. That's that's Those are the three things, what we do along with >>it and that that industry pieces do. There's a whole data layer emerging those industries learning cos they're building their own clouds. Look, working with companies like you because they want to monetise. That's a big part of their digital strategy, guys. Thanks so much for coming on the cue. Thank you. Appreciate your time. Thank >>you. Thank you very much. Really appreciate. >>Thank you. Thank you for watching John and I will be back. John Ferrier, Development at HPD Discovered 2022. You're watching the queue? >>Yeah. >>Mm.

>>The cube presents HPE discover 2022 brought to you by HPE. >>Welcome back to the Venetian convention center. You're watching the Cube's coverage of HPE discover 2022. The first discover live discover in three years, 2019 was the last one. The cube we were just talking about. This has been at H HP discover. Now HPE since 2011, my co-host John furrier. We're pleased to welcome Phil Maru. Who's the executive vice president and general manager of HPE Aruba. And he's joined by David Hughes, the chief product and technology officer at HPE Aruba gentleman. Welcome to the cube. Good to see you. Thank you. Thank >>You. >>Okay, so you guys talk a lot, Phil, about the intelligent edge. Yep. Okay. What do you, what do you mean by that? >>Yeah, so we, well, we're kind of focused on, is providing technology to customers that sits out at the edge and typically the edge would be, uh, any location out of the data center or out of the cloud. So for the most part, our customers would deploy our technology either in their office premises or maybe retail premises shops, uh, maybe deploying out of the home where their employees are on a factory floor. And we're really talking about technology to connect both people and devices back to, um, systems and technology throughout an organization. So, but >>I, I, you know, sometimes I call it the near edge and the far edge yeah. Near, near edge. Maybe as we saw home Depot up on the stage yesterday far, Edge's like space. Right. You're including all of that. Right. That's >>Edge. >>Yeah. And actually we, we, we, you know, we've got a broad range of technology that actually works within the data center as well. So, you know, what we are focused on is providing, uh, network technology, software and services. And, you know, for the most part, our heritage is at the edge, but it's more pervasive than that. So >>If you have the edge, you got connectivity and power, that's an edge. How much, um, is the physical world being connected now you're seeing robotics automation. Yeah. Ex and with machine learning specifically in compute, really driving a new acceleration at the edge. What you, how do you guys view that? What's your reaction? Yeah. >>I think, look, it, I think as connectivity is improving and that's both in terms of wifi connectivity, so, you know, wifi technology continues to, uh, advance and also you've got this new kind of private 5g area, just generally connectivity is becoming more pervasive and that's helping some industries that haven't previously embraced it. And I think industrial is, is one of the big ones. So, you know, historically it was difficult for kind of car manufacturers to really enable a factory floor. But now the connectivity is connectivity is better. That gives them the opportunity to be able to really change how they do things. So >>David, if you do take an outside in view, mm-hmm <affirmative>, uh, and, and, and when you talk to customers, what are they telling you and how is that informing your product strategy? >>Yeah, well, you >>Know, I think there's, there's several themes we hear. One is, you know, it's really important, better work from anywhere they wanna enable their employees, um, to get the same experience, whether they're at home or on the road or in their branch office or at headquarters. Um, you know, people are also concerned that as they deploy, deploy all of this IOT and pursuit of digital transformation, they don't want those devices to be a weak point where someone breaks into one device and moves naturally, um, across the network. So they want to have this great experience for their customers and their users, but they wanna make sure that they're not compromising security, um, in any way. And so it's about getting that balance between ease of use and, and security. That's one of the primary things we hear, >>You know, Dave, one of the things we talked about many, many years ago was when hybrid and was starting to come out multi-cloud was on the, on the table early on. Uh, we were, we were saying, Hey, the data center is just a big edge, right? I mean, if you have cloud operations and you see what's going on with GreenLake here now, the momentum hybrid cloud is cloud operations, right? An edge off data centers to a big edge on premises. And you got the edge as you have cloud operations, like say GreenLake, plugging in partners and diverse environments. You're connecting, not just branch offices that are per perimeter based. You have no perimeter and you have now other companies connecting mm-hmm <affirmative> so you got data and you got network. How do you guys see that transition as GreenLake has a very big ecosystem part of it, partners and whatnot. >>Yeah. So, you know, I think for us, um, the ecosystem of partners that we have is critical in terms of delivering what our customers need. And, you know, I think one of the really important areas is around verticals. So, um, you know, when you think about different verticals, they have similar problems, but you need to tailor the solutions. Um, to each of those, you know, we are talking a bit about devices and people. When you look at say a healthcare environment, there can be 30 devices there for each patient. And, um, so there's connecting all those devices securely, but we have partners that will help pull all of that together that may be focused on, um, you know, medical environment that may focused on stadiums. They may be focused on industrial. Um, so having partners that understand those verticals and working closely with them to deliver solutions is important in our go to market. >>So another kind of product question and related to what you just said, David, I got connectivity, speed, reliability, cost security, or maybe a missing something. But you, you said earlier, you gonna gotta balance those. How do you do that? And do you do that for the specific use cases? Like for instance, you just mentioned stadiums and 81 and how do you balance those and, and do you tailor those for the use cases? >>Yeah, well, I think it depends on the customer and different people have different views about where they need to be. So some people are, are so afraid about security. They wanna be air gapped and completely separate than the internet. That would be one extreme mm-hmm <affirmative> other people, you know, look at it and see what's happening with COVID with everyone working from home with people being able to work from Starbucks or the airport. And they're beginning to think, well, why is the branch that much different? And so what I think we are seeing is, you know, a reevaluation of how people connect to, um, the apps they're using and, uh, you know, you, you, you've probably for sure heard people talking about zero trust, talking about micro segmentation. You know, I think what we we see is that people wanna be able to build a network in a way where rather than any device being able to talk to any device or any person, which is where the internet started, we wanna build to build networks where people or devices can only talk to the destinations that are necessary for them to do their job. >>And so a lot of the technology that we are building into the network is really about making security intrinsic by limiting what can talk to what that's >>Actually micro, micro segmentations, zero trust, um, these all point to a modern, the modern network, as you say, Antonio Neri was just on the cube, talking about programmability, substrate, the words like that come to mind, what is the modern network look like? I mean, you have to be agile. You have to be programmable. You have to have security. Can you describe in your words, what does the modern network these days need to look like? How should customers think about architecting them? What are some of the table stakes and what are some of the differentiators that customers need to do to have a modern network? >>Yeah, well, you covered off a coup a few quarter, one there with clarity and so on. So let me pick one that you didn't mention. And, and I, you know, I think we are seeing, you know, a lot of interest around network as a service. And, you know, when we think about network as a service, we think about it broadly, um, you know, for consumers, we're getting more and more used to buying things as a service versus buying a thing. When you, when you get Alexa, you care about how well she answers your questions, you don't care about what CPU is or how much Ram Alexa has. And likewise with networking, people are caring about the outcomes of keeping their employees connected, keeping their, their devices and systems running. And so what for us, what NASA is all about is that shift of thinking about a network as being a collection of devices that get managed to being a framework for connectivity and running it from the point of view of those outcomes. >>And so whether, you know, it's about CapEx versus OPEX or about do it yourself, managing the network yourself versus outsourcing that, um, or it's about the, you know, Greenfield versus brownfield, each of our customers has got a different starting point, but they're all getting heading towards this destination of being able to treat their network as a service. And so that is, you know, a key area of innovation for us and whether it's big customers like home Depot that you heard about yesterday, um, where we kind of manage everything for them on a, as on a store basis, um, for connectivity, um, or, you know, the recent, um, skew based nest that we launched, which is a really scalable foundation for our partners to build nest offerings around. Um, we see this as a key part of network modernization. Yeah. >>And one of the things, again, that's great stuff. Uh, infrastructure is code, which was really kind of pioneer the DevOps movement in cloud kind of as platform level. And you got data ops now and AI at the top of the stack, we were always wondering when network as code was gonna come, uh, and where you actually have it, where it's programmable. I mean, we all know what policies do do. They're good. That's all great network as code. >>Yeah. >>And that's the concept that's like DevOps, it's like, make it work just seamlessly, just be always on. And >>Yeah. And smart, you know, people are always looking for the, for the easy button. Um, and so they want, they want things to operate easily. They want it to be easy to manage. And, you know, I actually think there's a little bit of a, um, a conflict between networkers code and the easy button, right? So it depends on the class of customers. Some customers like financials, for instance, have a huge software development organizations that are extremely capable that could, that can go with program ability that want things as code. But the majority of the, of, of the verticals that we deal with, um, don't have those big captive software organizations. And so they're really looking for automation and simplicity and they wanna outsource that problem. So in Aruba central, we have invested a lot to make it really easy for our customers to, um, get what they need, you know, is that movement of zero code. It's more like zero code. They want, they want something packaged now >>The headless networks. Yeah. Low code, no code >>Kind of thing. Yeah, that's right. And, you know, obviously for people that have the sophistication that want to, um, do the most advanced things, we have APIs. And so we support that kind of programmable way of doing things. But I'd say that that's that's, those are more specialized customers. So >>Phil, yeah. Uh, is that the strategy? I mean, David listed off a number of, of factors here is that Aruba's strategy to modernize networks to actually create the easy button through network as a service is as simple as dial tone. Is that how we >>Should think? I mean, the way I think about the strategy is I think about it as a triangle, really, along the bottom, we've got the products and services that we offer and we continue to add more products and services. We either buy companies such as silver peak a couple of years ago, or we build, uh, additional products and by, and by the way, that's in response to customers who are frustrated with some other suppliers and wanna move on mass over to, uh, companies like ourselves. So at the bottom layer of the product and services, and then the other side of the triangle one would be NAS, which we talked about, which is kind of move to buying network and as a service. And then the other side of the triangle is the platform, which for us is river central, which is part of HP GreenLake. And that's really all about, you know, kind of making it easy for customers to manage networks and Aruba central right now has got about 120,000 live customers on it. It connects to about 2 million devices and it's collecting a lot of data as well. So we anonymously collect data from all of our customers. We've got one and a half billion data points in the platform. And what we do is we let that data kind of look for anomalies and spot problems on the network before they happen for customers. >>So Aruba central predated, uh, uh, GreenLake GreenLake. Yeah. And, and so did you write to GreenLake through GreenLake APIs? How, what was the engineering work to accomplish that? >>Yeah, so really, um, Aruba central is kind of the Genesis of the GreenLake platform. So we took Aruba central and made it more generic okay. To build the GreenLake cloud platform. And you know, what we've done very recently is bring, bring Aruba into that unified infrastructure, along with storage and compute. So the same sign-on applies across all of HP's, um, products, the same way of managing licenses, managing devices. And so it provides us, uh, great foundation going forwards to, um, solve more comprehensively. Our customers automation requires. >>So, so just a quick follow. So Aruba actually was the main spring of GreenLake from the standpoint of okay. Sing, like you said, single sign on a platform that could evolve and become more, more generic. Yes. So, okay. So that was a nice little, um, bonus of the acquisition, you know, it's now the whole company >><laugh> Aruba taking over. >>Yeah. There's been a lot of work to, to, uh, you know, make it generic and, and widely applicable. Right. Yeah. Um, so, but >>You were purpose >>Built for yeah. Well it's foundational. Yes. So foundational for GreenLake, they built on top of it. Yeah. So you mentioned the data points, billions of data points. So I gotta ask you, cuz we're seeing this, um, copy more and more with machine learning, driving a lot of acceleration, cuz you can do simulations with machine learning and compute. We had Neil McDonal done earlier. He's a compute guy, you got networking. So with all this, um, these services and devices being put on and off the network humans, can't actually figure this out. You can discover what's on the network. How are you guys viewing the discovery and monitoring because there's no perimeter okay. On the network anymore. So I want to know what's out there. Um, how do you get through it? How does machine learning and AI play into this? >>Yeah. I mean, what we are trying to do is obviously flag trends for customers and say, Hey look, you know, we can either see something happening with your network. So there's a particular issue over here and we need to, I dunno, free up more capacity to solve that. Or we're looking at how their network is running and then comparing that with anonymized data from all of our other customers as well. So we're just helping find those problems. But yeah, you're right. I mean, I think it is becoming more of an issue for organizations, you know, how do you manage the network, >>But you see machine learning and AI playing a big part. >>Yeah, yeah. Yeah. I think, uh, AI massively and, and other technology advances as well that we make. So recently we, uh, also announced the availability of location awareness within our access points. And that might sound like a simple thing. But when network, when companies build out their networks, they often lose or they potentially could lose the records as to, well, where were the access points that we laid out and actually where are they not within, you know, 20 feet, but where actually are they? So we introduced kind of location, finding technology as well into our, uh, access points to make it easy for >>Customers. So Aruba one of the best, if not the best acquisition. I think that HP E has made, um, it's made by three par was, you know, good. It saved the storage business. Okay. That was more of a defensive play. Uh, but to see Aruba, it's a growth business. You guys report on it every quarter. Yeah. It's obviously a key ingredient to enable uh, uh, GreenLake and, and a that's another example, nimble was similar. We're much smaller sort of more narrow, but taking the AI ops piece and bringing it over. So it's, it was great to see HPE executing on some of its M and a as opposed to just leaving them alone and not really leveraging 'em. So guys, yeah. Congratulations really appreciate you guys coming on and explaining that. Congratulations on all the, all the great work and thanks for coming on the cube. Okay. >>Thank you guys. Yeah. Thanks for having us. >>All right, John, and I'll be back right after this short break. You're watching the cube, the leader in enterprise tech coverage from HPE Las Vegas, 2022. We'll be right back.

>>you welcome to the cubes, continuing coverage of Splunk dot com. 21 I'm lisa martin of a couple guests here with me. Next talking about Splunk H P E N. Deloitte, please welcome Casey Clark, Managing Director and chief architect at Deloitte and Elias Alanya Master Technologists Office of the North American C T O at H P E. Guys welcome to the program. Great to have you. >>Thank you lisa. It's great to be here. >>Thanks lisa >>Here we still are in this virtual world the last 18 months, so many challenges, some opportunities, some silver linings but some of the big challenges that organizations are facing this rapid shift to remote work. The rapid acceleration In digital transformation ran somewhere up nearly 11 x in the first half of this year alone. Solar winds talk to me about some of the challenges that organizations are facing and how you're helping them deal with that Casey >>we'll start with you So most of our clients as we move to virtual um have accelerated their adoption of multiple cloud platforms. You know, moving into a W S into Azure into google. And one of the biggest challenges is in this distributed environment, they still have significant workloads on prem Part of the workloads are in office 3 65. Part of them are in salesforce part of them they're moving into AWS or big data workloads into google. How do you make this all manageable from both. A security point of view and accelerating threats. Uh make that much worse but also from an operational point of view, you know, how do I do application performance management when I have workloads in the cloud calling. Api is back on prem into the mainframe. How do I make an operationally when I have tons of containers and virtual machines operating out there? So the importance of Splunk and good log management observe ability along with all the security management and the security logs and being able to monitor for your environment in this complex distributed environment is absolutely critical and it's just going to get more complex as we get more distributed. >>How can companies given the complexity? How can companies with these complicated I. T. Landscapes get ahead of some of these issues? >>One of the things that we really focused on making sure that you're getting ahead of those and you know we work with organizations like Splunk and Deloitte is how do we how do we collect all of the data? Not just a little bit of it, you know Splunk, help and Deloitte are helping us look across all of those places. We want to make sure that we can can really ingest everything that's out there and then let the tools like Splunk then use all of that data. We found a lot of organizations really struggle with that and with the retention of that data it's been a challenge. So those are things that we really worked hard on figuring out with organizations out there um how to how to ingest retain and then modernize how they do those things at the same time. >>I was reading the Splunk state of Security report which they surveyed over 500 security leaders I think it was over nine um global economies and they said 78% of security and I. T. Leaders worry 78% that they're going to be hit by something like solar winds. Um That style of attack Splunk saying security is a data problem but also looking at all this talk about being on the defensive and preventing attacks the threat landscape escaping companies also have to plan for growth. They have to plan for agility. How do you both help them accomplished? Both at the same time Casey will start with you. >>Well fundamentally on the security front you start with security by design. You're designing the logging the monitoring the defenses into the systems as they are being designed up front as opposed to adding them when you get to Um you know you 80 or production environment. So security by design much like devops and Fc cops is pushing that attitude towards security back earlier in the process so that each of the systems as we're developing them um have the defenses that are needed and have the logging that are embedded in them and the standards for logging so that you don't just get a lot of different kinds of data you get the data you actually need coming into the system and then setting up the correlation of that data so you can identify those threats early through a i through predictive analytics, you get to identify things more quickly. You know, it's all about reducing cycle times and getting better information by designing it in from the beginning, >>standing in from the beginning that shifting left Elias. What are your thoughts about this, enabling that defense, designing an upfront and also enabling organizations to have the agility to grow and expand? >>Yes, sort of reminded of something our friends with the Blue oval used to say in manufacturing quality isn't inspected, it's built in right and and two cases point you have to build it in. We've we've definitely worked with delight to do that and we've set up systems so that they have true agility. We've done things like container ice block with kubernetes uh you know, work with object storage. A lot of the new modern technologies that maybe organizations aren't quite accustomed to yet are still getting on board with. And so we wrap those up in our HP Green Lake managed services so that we can provide those things to organizations that aren't maybe aren't ready for them yet. But the threat landscape is such that you have to be able to do those things if you're not orchestrating these thousands and thousands of containers with something like kubernetes, it's just it becomes such a manual labor intensive process. And so that that labor intensive, non automated process. That's the thing that we're trying to remove. >>Well that's an inhibitor to growth, right number one there, let's go ahead and dig into the HP. Deloitte Splunk solution case. I'm going to go back over to, you talk to me about kind of the catalyst for developing the solution and then we'll dig into it in terms of what it's delivering. >>So Deloitte has had long term partnerships with both H B E and Splunk and we're very excited about working together with them on this solution. Um the HP Green Light, which is hardware by subscription, the flexibility of that platform, you know, the cost effectiveness of the platform. Be able to run workloads like Splunk on it that are constantly changing. You have peaks and valleys depending on, you know, how much work you're doing, how many logs are coming in and so being able to expand that environment quickly through containerized architecture, Oz Funk, which is what we worked on, um you know, with the HP Green Light team uh and and also with spunk so that we can Federated the workloads and everything that's going on on prem with workloads that are in the cloud and doing it very flexibly with the HP on prim platform as well as, you know, Splunk on google and Azure and Splunk cloud um and then having one pane of glass that goes across all of it has been very exciting. You know, we were getting lots of interest in the demo of what we've done on the Green light platform and the partnership has been going great, uh >>that single pane of glass is so critical. We talked about cloud complexity a few minutes ago, customers are dealing with so many different applications there now in this hybrid multi cloud world, it's probably only going to proliferate, Let's talk to me about H P. S perspective and how you're going to help reduce the cloud complexity that customers in every industry are facing. >>Yeah, so within the HP Green Lake umbrella of portfolio, we have set up our uh admiral container platform, for example, are Green Lake management services. We bring all these things together in a way that that really can accelerate applications uh that can make the magic that Deloitte does work underneath. And so when, when our friends at Deloitte go and build something, someone has to, has to bring that to life, has to run it for for our customers. And so that's what Hb Green Lake does, then we do that in a way that fundamentally aligns to the business cycles that go on. And so, uh you know, we think of cloud as an operating model, not necessarily just a physical destination. And so we work on prem Coehlo public hybrid Green Lake spans across all of those and can bring together in a way that really helps customers. We've seen so many times, they have these silos and islands of data. Um you know, you've got uh data being generated in the cloud. Well, you need Splunk in the cloud, you've got the energy generated in uh, Amelia, Well you've got spunk into me and so so Deloitte's really done some great things to help us put that together and then we, we underpin that with the, with the green like uh management services with our software and our infrastructure to make it all >>work. Yeah, Elias, one of the areas that you just mentioned is is one of the hottest trends that we've noticed out there. A lot of clients, you know, with the competition for skilled resources out there on the engineering side and operations are looking at managed services as an option to building, you know, their own technology, you know, hiring their own team, running it themselves and the work that we do with both on the security side as well as operations to provide managed services for our clients in collaboration with companies like HP E and running of the Green Lake platform platforms as well as one cloud, those combined services together and delivered as a managed service uh to our clients is an exciting trend out there that um, is increasingly seen as very cost effective for our clients >>saving cost is key case. I want to get your perspective on what you think differentiates this, this solution, the technology alliance, what are the differentiators in this from Deloitte's lens. >>So bringing the expertise of a company like HP and the flexibility and expand ability of the Green lake platform and the container ization that they've done with Israel, you know, it's, it's bringing that cloud like automation and virtual and flexibility to on uh, the on prem and the hybrid cloud solution combined with Splunk who is rapidly expanding not only what they do in the security space where the constantly changing security landscape out there, but also in observe ability application, performance management, um, Ai ops, um, you know, fully automated and integrated response to operational events that are out there. So HP is doing what they do really well and adapting to this new world. Splunk is constantly changing their products to make it easier for us to go after those operational issues. And Deloitte is coming in with both the industry and the technical experience to bring it all together, you know, how do you log the right things, you know, how do you identify, you know, the real signal versus the noise out there? You know, when you're collecting massive amounts of log data, you know, how do you make it actionable? How can you automate those actions? So by bringing together all three of these berms together, uh we can bring a much better, much, much more effective solutions to our clients in much shorter time frames, >>Shorter time frames are key given that one of the things we've learned in the last 18 months, is that real time is really business critical for companies in every industry unless I want to get your perspective from a technology lens, talk to me about the differentiators here, what this solution is three way alliance brings to your customers. >>Yeah, sure thing. We've done a lot of work with Deloitte and with Intel also on performance optimization, which is, is key for any application and that gets to what I mentioned earlier of bringing more data in some of the work that we've done with until we've able been able to accelerate Are the ingest rate of Splunk by about 17 times, which is pretty incredible. Uh, and that allows us to do more or do more with less and that can help reduce the cost. Also done a lot of work on the, on the setup side. So there's a lot of complexities in running a big enterprise application like Splunk. Um, it does a lot of great things but with that comes some complications for sure. And so, uh, a lot of the work that we've done is to help really make this production ready at scale disaster tolerance and bring all of those things together. And that >>requires a fair amount of >>work on the back end to make sure that we can, we can do that at scale and, and to be a, you know, to run, you know, in a way that businesses of significant size can take advantage of these things without having to worry about what happens if I lose a data center or what happens if I lose a region. Um And and to do those things with absolute assurance >>That's critical case you have a question for you. How will this solution help facilitate one of the positives that we've seen during the last 18 months and that is the strengthening of the IT security relationship. What are your thoughts there? >>I think one of the important things here is that the standardization and automation of what we're what we're bringing together you know so that security can monitor all the different things that are being configured because I can go in and look at the automation that it's creating them. So we have a very dynamic environment now with the new cloud based and virtualized environment so going in and manually configuring anything anymore. It's just not possible. Not when you're managing tens of thousands of servers out there. So security working together very closely with operations and collaborating on that automation so that the managed services are are configured right from the beginning as we talked about security about design. Operations by design in the beginning it's that early collaboration and that shift left that is giving us the very close collaboration that results in good telemetry, good visibility you know good reaction times on the other end. >>That collaboration is something that we've also seen is really a key theme that's emerged I think from all of us in every industry in the last 18 months. And I want to punt the last question to you and that's where can customers go to learn more information? How do they get started with this solution? >>A great way to get started is to reach out to our partners like Deloitte, they can help you on that journey. Hp. Es there, of course. Hp dot com. We have a number of white papers, collateral presentations, reference architecture is you name it, it's out there. But really every organization is unique. Every every challenge that we come up with always requires a little bit of hard thinking and and so that's why we have the partnership >>to be able to work with customers and collaborate. I'll say to really identify what their challenges are, how they help them in this very dynamic. No doubt continuing to be dynamic market. Thank you both so much for joining me talking to me about what Deloitte Splunk NHP are doing, how you're helping customers address that cloud complexity from the security lens, the operations lens. We appreciate your time. >>Thanks lisa. Thank you lisa tonight >>For my guests. I'm Lisa Martin, you're watching the cubes coverage of splunk.com 21. Yeah. Mhm

>>it's mhm Okay, we're here in the cube unpacking the HPD Green Lake announcements, Daniel neumann series Principal analyst and founder of your um research Damn. You're good to see you again, >>Dave always going to jump jump on with you. It's good to have a minute sit down. So >>what's your favorite announcement from from Green Lake? What do you, what do you make of what they announced today? >>Well, I love the opportunity for the company to position itself up against a growth monster like snowflake. I mean looking at the ability to handle the breath of the data at scale and offer a data service that can compete in that space. That's exactly the kind of narrative that I think the markets, the outside world is going to want to hear from HP is how you're not just competing with your traditional, the doubles, the Ciscos, the IBM, you're going after the, the mega growth cloud players and data services. And for me that's really attractive because I've been really on top of hb saying, hey, you're doing a lot of the right things, but people have to feel and see the growth. >>To me this is a major move toward the tam expansion strategy. It's kind of the job of every Ceo right, is to expand the tam. And I'm interested to see how HP e plays this and communicates this because, you know, traditionally it's a hardware company, uh moving into data management Data services. That's an enormous market. We'll talk about how important data is but the data management is just huge. And to do it in a cloud like fashion, how do you see that as potentially expanding the total available market for HP? >>Well, first, let's just almost walking back a second, Dave HP is a cloud player. Okay. And that's the story that it is trying to get out there. It is not a hardware player that's tinkering in software. Hp has done software, this isn't its first go. But if you want to be a cloud player, you look at the big hyper scale as you look at the AWS, as you look at the google, you look at as the google built, not just on hardware, it's built that big C and I've had this conversation before, all the things that make up the cloud, it's the hardware, it's the software, it's the services, the platform, you got to put all these things together. And if HP wants to be a public cloud experience, taking advantage of where we're moving with hybrid and offering it private, it has to have that same subset of services. Look at the investment, whether it's been a W S or google or Azure in data services, HP has to be in this space. So, seeing this come to fruition, in my opinion, is directionally the right path, getting it to be well received, winning the right customers and showing the growth from these investments is going to be the next important phase. >>Do you see that as a service model as being more margin friendly for HP and and if so why? Well, I think >>universally we found there's two major improvements that moving to the as a service. One is, it does over time create expanded operational margin. It's just economies of scale. You can utilize every resource more efficiently. Of course there are Capex expenses, You've seen the amount that hyper skeletons have had to spend to expand their their footprints globally. So there is some Capex upfront but that also on the back end creates the depreciation and different bottom line profit creators. At the same time though, as a service is huge for the multiples and evaluation, which by the way is one of the things that has been a real in focus point for H. P. E. Is how does it up that that number, You know, you look at the snowflakes, not even profitable but getting huge. You know, um, you know, huge multiples on revenue. And then you see even the other hyper scale is all getting bigger plays on revenue and on E. P. S. Most of it has to do with the fact that recurring revenue is beloved by investors, but it's also really sticky and creates a ton of stability within the company for the culture of the business to say, hey, we have customers, they're going to stay with us. They're not going anywhere. They're subscribed to our services. They're buying into what we're doing and by the way, net revenue expansion as you get them sticky, you layer in new services. We've seen how this has worked across the board with public cloud, with software with SAS, can HP do it as well? And of course it's been something they're doing, but it's something we need to watch really closely and I think it's an opportunity that the company needs to lean into it. And I think they will, >>you mentioned snowflake a couple times, there's a there's a, there's a discussion in the industry, it was sort of prompted by martin casado and sarah wang about repatriation and particularly as it relates to software, saas companies uh that the the the cloud bill is so high at some point, they're giving away margin, so they're going to have to come back on prem, I'm not sure that to date that has applied to the general audience of customer, although there's a lot of debate as well between the expensive cloud, obviously, you know, egress charges. So it's hard sometimes to squint through that when you think about HP E bringing Green Lake to market at scale bringing repeatable processes, driving automation, etcetera. How do you think that that cloud repatriation argument, which frankly, I haven't seen a huge cloud repatriation in in the macro, but how do you think that will play out over time, Do you feel like the on prem play can be as cost effective or more cost effective or maybe you feel like it is already today? >>Well, I also listen to the injuries and Horowitz uh, repatriation narrative as well. I think there are economies of scale with cloud that companies have to look at closely. But I also think that has a lot to do with why hybrid has been sort of the story of the day. That's why hyper sailors are going on prem or, and that's why I'm primes are moving to the cloud is because it's always going to be some, you know, some group of different placements of workloads to ultimately get to that optimized result. And so, you know, when you look at, you know, sort of what you asked in my opinion, you know, ultimately it's all about the efficiency of your organization trying to accomplish what your business is. And will there be some repatriation of workloads possibly. But there will be a very important hybrid mix. And I think we're gonna continue to see that trend and I think that's exactly where everyone's going in. Hp is going as well. >>All right, then we've got to leave it there. Thanks so much for your insights, appreciate it. We're gonna definitely have you back you and I are going to do some cool stuff together. So we'll talk next time. Thanks all right, and thank you for watching, this is Dave Volonte for the keeps coverage of H P E Green Lakes announcement, keep it right there. Mm

>>the idea of cloud is changing from a set of remote services somewhere out there in the cloud to an operating model that supports workloads on prem across clouds and increasingly at the near and far edge moreover, workloads are evolving from a predominance of general purpose systems to increasingly data intensive applications, developers are a new breed of innovators and kubernetes is a linchpin of creating new cloud native workloads that are in the cloud but also modernizing existing application portfolios to connect them to cloud native apps. Hello, we want to welcome back to HPD discovered 2021 the cubes ongoing coverage. This is Dave Volonte and with me are scott. Buchanan is the vice president of marketing at VM ware and Toby Weiss, who is the vice president of global hybrid cloud practice at HP gents. Welcome to the Q. Great to see you. Thanks for coming on. >>Thank you. Day agreed to be here. >>Okay, thanks for having >>us. So you heard my little narrative upfront. Um and so let's get into it. I want to start with with some of the key trends that you guys see in the marketplace and maybe scott you could kick us off from VM ware's perspective. What are you seeing that's really driving? Uh I. T. Today. >>Well, Dave you started with a conversation around cloud, right, and you can't really have a conversation around cloud without also talking about applications. And so much of the interaction that we're having with customers these days is about how we bring apps and clouds together and modernize across those two dimensions at the same time. And that's a pretty complex discussion to have and it's a complex journey to navigate. And so we're here to talk to customers and to work with h Pe to help our customers across those two dimensions. >>Great, so Toby I mean, it's always been about applications, as scott said, but but the application, the nature of applications is changing how we develop applications. The mentioned it sort of data intensive applications were injecting ai into virtually everything the apps, the process, the the people even um uh from a from the perspective of really a company that supports applications with infrastructure, what are you seeing in the marketplace? What can you add to that discussion? >>Yes. Great point. Dave you know, with the scent with applications becoming more central, think about what that means uh and has been for developer communities and developers becoming uh more important customers for I. T. Uh We have to make it easier for these developers uh to speed their innovations to market. Right? The business demands newer and faster capabilities of these applications. So our job in the infrastructure and was called the platform layer is to help we need to build these kinds of platforms that allow developers to innovate more quickly. >>So we talked earlier about sort of modernizing apps. I mean, it seems to me that the starting point there is you want to containerized and obviously kubernetes is the, is the key there, But so okay, so if that's the starting point, where is the journey, what does that look like? Maybe scott you could chime in there >>Sure. A couple of quick thoughts there, Dave and Toby to build on first is if you look at the Cloud Native Computing Foundation, Landscape today, what you can do at landscape dot c n c f dot io Holy Smokes, is that a jungle? So a lot of organizations need a guide through that CN cf landscape, they need a partner that they can trust to show them the way through that landscape. And then secondly, there needs to be ways to make these technologies easier to adopt and to use in practice, kubernetes being the ultimate example of that. And so we've been hard at work to try and make it easy and natural to make kubernetes part of one's existing infrastructure, so that building with and working with containers can be done on the same platform that you're using for virtual machines. >>So let's talk a little bit about cloud. Um and how you guys are thinking about cloud, remember told me that Back in VM World 2010, it was the very first vm world for the Cube. All we talked about was a cloud, but it was a private cloud, was really what we were talking about, which at the time largely met the virtualized data center. Um it was kind of before the software defined data center and today we're still talking about cloud, but it's it's hybrid cloud. It's kind of the narrative that I set up front data center. It's become for the most part software to find. And so how do you see this changing the I. T. Operating model? >>I think it's a great question. And look today you will see us talk a lot about this notion of cloud everywhere. So less differentiation about private and public and more about the experience of cloud. Right. Public. Cloud brought great innovations and what better than to bring those innovations to on premise workloads that we have chosen to operate and work there. So as we think about cloud more as an experience we want for our developers and our end users and our I. T. Organizations. We begin to think about how can we replicate that experience in an on premise environment. And so part of that is having the technologies that enable you to do that. The other part is um we most of us have evolved right the organization operating models to operate our cloud infrastructures off premises. Well now expanding that more holistically across our organization so we don't have to operating models but a single operating model that bridges both and and brings the ability of both of those together to get the most benefit as we really become to integrate and become truly hybrid in our organization. So I think the operating model is critical and the kinds of experiences we deliver to the users of that I. T. Uh infrastructure and operating model is critical as well. >>Are you guys are both basically in the infrastructure business but scott maybe we can start with you. There's a lot of changes that we're talking about in it. Generally the data center specifically especially big changes in workloads, with a lot more data intensive apps ai being injected into everything kubernetes, making things more fassel. And in many ways it simplifies things, but it also puts stress on the system because you've got to protect this. They they're no longer stateless apps right there, state full and you gotta protect them and and so they've got to be compliant. Um now you've got the edge coming in. Uh So my question is, what does infrastructure have to do to keep pace with all this application innovation? >>Uh one of the conversations that we are having increasingly with our customers is how can they embrace a dev sec ops mindset in their organization and adopt some of these more modern patterns and practices and make sure that security is embedded in the life cycle of the container. And and so I think that this is part of, the answer is equipping the operator through infrastructure to set guard rails in place so that the development organization can work with freedom inside of those guard rails. They can draw on a catalogs of curated container. Images, catalogs of apps start from templates. Those are the building blocks that allow developers to work faster and that allow an operator to ensure the integrity and compliance of the containers and the applications of the organizations building. >>Yeah, So, so that's kind of uh when I hear scott talked about that Toby I think infrastructure as code designing security and governance in right? We always we always said I was an afterthought. We kind of bolted it on second. The security team had to take care of that. This is always the same thing with backup. Right? So we got an app. It's all ready to go. How do we back it up? And so that's changing that whole notion of, of infrastructure as code. Um, I want to talk about Green lake in a minute, but, but before we get there, I wonder if you could talk about how HP E thinks about VM ware and how you guys are partnering. I'm specifically interested and where each of you sees the value that you bring to the table for your joint customers. >>Yeah, great question. You know, and, and starting to think about history like you did 2010 being the start of a cube journey. I, I remember in 2003 when we first partnered with VM ware in the very first data center consolidations and we built practices around this has been quite a long partnership with VM ware and I'm excited to see this. This partnership evolved today, especially into this cloud native space and direction. Uh It's critical we need you know uh you know customers have choices and we need great partners like VM ware uh to help satisfy the many different use cases and choices that our customers have. So while we bring you know good depth when it comes to building these infrastructures that become highly automated uh managed in some cases and consumable like on a consumption basis and automated like we help clients automate their ci Cd pipeline. We depend on technologies and partners like them where to make these outcomes real for our customers. >>Yeah I think there's a way to connect a couple of the points that we've been talking about today. Got some data from a state of kubernetes study that we just ran And this is 350. IT. decision makers who said uh that they're running kubernetes on premise, 55% of respondents are running kubernetes on premise today. And so Vm ware and HP gets worked together to bring kubernetes to those enterprises, 96% of them said that they're having a challenge selecting the right kubernetes distribution, 60 of them in that C. N. C. F. Landscape and the # one criteria that they're going to use to choose the right distribution uh set them on a path forward is that it's easy to deploy and to operate and to maintain in production. And so I think that this is where VM ware and HP get to come together to help try and keep things as simple as possible for customers as they navigate. A fairly complex world. >>That's interesting scott. So who are those um those on prem users of containers and kubernetes? Is it the is it the head of you know the the application team and an insurance company whose kind of maintaining the claims about? Is it is a guy's building new cloud native apps to help companies get digital first. Who are those, What's the persona look like >>in our conversations? You know, this is the infrastructure and operations team seen that there's energy around kubernetes and maybe there's some use in test and development and parts of the organization. And by centralizing over ownership of that kubernetes footprint, they can ensure that it's compliant if policy is set properly to your point earlier that it's meets the security standards for the organization. And so it's increasingly that SRE or site reliability engineer or platform operator who's taking ownership of that kubernetes footprint for the organization to ensure that consistency of management and experience for the development teams across the larger organs. Toby, is that what you're seeing? >>2? We see uh we see quite a few we engage with quite a few developer teams in business leads that have ambitions to speed their application development processes And uh you know, they want help and often, as I stated, the intro, they might be coming off of a much older deployment uh maybe from 2015 where there there were an early adopter of a container platform methodology and wanting to get to some newer platform or they they may be in charge of getting a mobile banking application and its features to market much more quickly. So and often when we get a quote maybe from a client and might come from, you know, the VP of a business unit. But often as we engage, it's, you know, the developers are pretty much our customers and their developer leaders and teams, >>so you're running into container technical debt. Already you're seeing that out there. It sounds like your legacy >>container. It takes some expertise to, to come off those older. You know, the first instance creations of these container platforms were pretty much open source and yeah, you want to bring it to something that's more modern and has the kinds of features, enterprise grade features you might need. >>So is it not so problematic for for customers? Because as I said before, a lot of those apps were sort of disposable and stateless and, and, and now they're saying, hey, we can actually use kubernetes to build, you know, mission critical apps. And so there, that's when they sort of decide to pivot to a new modern platform or is there a more complex migration involved? What are you seeing? >>Okay, I'll give my hot, take your Toby and then uh, ask you for yours. But I guess, uh, I feel like the conversations that I'm involved in with customers is, you know, always begins with their broader application portfolio. These enterprises have hundreds thousands of applications and job one is to figure out how to categorize them into those which need to be re hosted or platform or re factored or reimagined entirely. And so they're looking for help figuring out how to categorize those applications and ultimately how to attack each category of application. Some should be re platforms on environments that make best use of kubernetes, some need to be re factored, some need to be reimagined. And so they are again looking for that expert guide to show them the way >>right. And when we engage in those early discussions, we call it right Mix advisory. Um, you know, you're trying to take a full, a broad scope as you said, scott down to a few and uh you know determine kind of the first movers if you will also you know clients will engage you know for very specific applications that are or suite of applications. Again like mobile applications for banking. I think you're a good example because you know they have an ambition. I mean the leader of that kind of application may very well think that is the mission critical application for the company, right? But of course finance, they have a different point of view. So you know that that application to them is the center of their business getting you know, their customer access to the core banking features that they have and you know they want to zero in on the kind of ecosystem it takes in in the speed at which they can push new features through. So we see both as well um you know the broader scope application, weaning down to the few discovery application, uh and then of course a very focused effort to help a particular business unit speed development on their mobile app, for example, >>it's interesting scott you were talking about sort of, the conversation starts with the application portfolio and there have been there have been these sort of milestones around, you know, major application portfolio, I'll call him rationalizations, I mean there's always an ongoing, but y two K was one of those, this is sort of the big move to SAS was another one, obviously cloud and it feels like kubernetes, I mean it's like the cloud to Dato coming on. Prem is another one of those opportunities to rationalize applications. We all know the stats right, we always see 85% of the spend is to keep the lights on and the other the only small portion of innovation and you know, there's always a promise we can change that. It reminds me of the heavy year, I would go to the boston marathon, it was this guy would run and he had a hat on with the extension and it was a can of Budweiser way out there and he couldn't reach it and so he would run. It was almost the same thing here is they never get there because they have so many projects coming online and the project portfolio and and then and then the C I O has got to maintain those in the application heads and so it's this this ongoing thing. But you do see spikes in rationalization initiatives and it feels like with this push to modernization and digitization maybe the pandemic accelerated that too. Is that a reasonable premise? You're seeing sort of a milestone or a marker in terms of increased effort around rationalization and modernization today because of kubernetes? >>Yeah, I definitely think that there are a couple of kubernetes is a catalyzing technology and the challenges of the pandemic or a catalyzing moment. Right. And I feel like uh Organisations have seen over the past 18 months now that those enterprises that have a way to get innovation to market to customers faster, not once a quarter, but many times a day, are the ones that are separating themselves in competitive marketplaces and ultimately delivering superior customer experiences. So it comes back to some of the ideas full circle that Toby started with around delivering a superior developer experience so that those developers can get code to production and into the hands of customers on a much more rapid basis. Like that's the outcome that enterprises really care about at the end of the day. And kubernetes is part of the way to get there, but it's the outcome that's key. Great thank >>you. And one of our practices dave there was uh you know, that's been our bread and butter for so many years. This, you know, this broad based discovery, narrowing down to a strategy and a plan for migrating and moving certain workloads. We see a slight twist today in that clients and organizations want to move quicker too. The apps, they know that, you know, they want to focus on, they want to prove it by through the broad based discovery and kind of a strategic analysis but they want to get quicker right away to the workloads. They are quite sure that need re factoring or leverage the benefit of a modern developer environment. >>Yeah. And they don't want to be messing around with the provisioning, lungs and servers and all that stuff. They want that to be simplified. So we're gonna end on Green Lake and I want to understand how you guys are thinking about Green Lake in terms of your partnership and, and how you're working together, you know, maybe Toby you could sort of give us the update from your perspective, you can't have a conversation with HP today without talking about Green Lake. So give us the kool aid injection. And then I really interested in how VM ware thinks about participating in that. >>Absolutely. And, and thank you for uh, yeah, for helping us out here. You know, I see more and more of our engagements with clients that ask for and, and, and want to sign a Green Life based contract, >>but, >>and that is one very important foundational element. Uh and there's there's so much more because remember we talked about the cloud experience in cloud everywhere and Green Lake brings us an opportunity to bring dimensions to that, especially on the consumption model because that's that's an important element if we begin adding partners such as VM ware to this equation, especially for clients that have huge investments in VM where there's an opportunity here to really bring a lot of value with this cloud experience to our customers through this partnership. >>All right scott, we're gonna give you the last word. What's your take on this? >>Hey listen hard for me to to to add much to what Toby said, he nailed that you see a ton of energy in this space. I think we've covered a bunch of key topics today. Their ongoing conversations with our customers in Green Lake is a way to take that conversation to the next level. >>Guys really appreciate you coming on and give us your perspectives on kubernetes and and and and thank you scott for that data. 55% of I. T. Decision makers out of 350 said they're doing on prem kubernetes. That's a new stat. I hadn't I would have expected to be that high but I guess I'm not surprised it's the rage the developers want the latest and greatest guys. Thanks so much for sharing your knowledge and I appreciate you coming on the cube. >>Thank you. Dave. >>Thanks Dave. >>Thank you for watching the cubes ongoing coverage. Hp es discover 2021. The virtual version will be right back.

>>the idea of cloud is changing from a set of remote services somewhere out there in the cloud to an operating model that supports workloads on prem across clouds and increasingly at the near and far edge moreover, workloads are evolving from a predominance of general purpose systems to increasingly data intensive applications, developers are a new breed of innovators and kubernetes is a linchpin of creating new cloud native workloads that are in the cloud but also modernizing existing application portfolios to connect them to cloud native apps. Hello, we want to welcome back to HPD discovered 2021 the cubes ongoing coverage. This is Dave Volonte and with me are scott. Buchanan is the vice president of marketing at VM ware and Toby Weiss, who is the vice president of global hybrid cloud practice at HP gents. Welcome to the Q. Great to see you. Thanks for coming on. >>Thank you. Day agreed to be here. >>Okay, thanks for having >>us. So you heard my little narrative upfront. Um and so let's get into it. I want to start with with some of the key trends that you guys see in the marketplace and maybe scott you could kick us off from VM ware's perspective. What are you seeing that's really driving? Uh I. T. Today. >>Well, Dave you started with a conversation around cloud, right, and you can't really have a conversation around cloud without also talking about applications. And so much of the interaction that we're having with customers these days is about how we bring apps and clouds together and modernize across those two dimensions at the same time. And that's a pretty complex discussion to have and it's a complex journey to navigate. And so we're here to talk to customers and to work with h Pe to help our customers across those two dimensions. >>Great, so Toby I mean, it's always been about applications, as scott said, but but the application, the nature of applications is changing how we develop applications. The mentioned it sort of data intensive applications were injecting ai uh into virtually everything the apps, the process, the people even um uh from a from the perspective of really a company that supports applications with infrastructure, what are you seeing in the marketplace? What can you add to that discussion? >>Yes. Great point. Dave you know, with the scent with applications becoming more central, think about what that means uh and has been for developer communities and developers becoming uh more important customers for I. T. Uh We have to make it easier for these developers uh to speed their innovations to market. Right? The business demands newer and faster capabilities of these applications. So our job in the infrastructure and uh it was called the platform layer is to help we need to build these kinds of platforms that allow developers to innovate more quickly. >>So we talked earlier about sort of modernizing apps. I mean, it seems to me that the starting point there is you want to containerized and obviously kubernetes is the, is the key there, but so okay, so if that's the starting point, where's the journey, what does that look like? Maybe scott you could chime in there >>Sure. A couple of quick thoughts there, dave and Toby to build on first, is if you look at the Cloud Native Computing Foundation Landscape today, which you can do at landscape dot c n c f dot io Holy Smokes, is that a jungle? So a lot of organizations need a guide through that CN cf landscape, they need a partner that they can trust to show them the way through that landscape. And then secondly, there needs to be ways to make these technologies easier to adopt and to use in practice kubernetes being the ultimate example of that. And so we've been hard at work to try and make it easy and natural to make kubernetes Part of 1's existing infrastructure. So that building with and working with containers can be done on the same platform that you're using for virtual machines. >>So let's let's talk a little bit about cloud and how you guys are thinking about cloud. Remember told me that Back in VM World 2010, it was the very first vm world for the Cube. All we talked about was a cloud, but it was a private cloud was really what we were talking about, which at the time largely met the virtualized data center. Um it was kind of before the software defined data center and today we're still talking about cloud, but it's it's hybrid cloud, it's kind of the narrative that I set up front data center. It's become for the most part software to find. And so how do you see this changing the I. T. Operating model? >>I think it's a great question. And and look today you will see us talk a lot about this notion of cloud everywhere. So less differentiation about private and public and more about the experience of cloud. Right public. Cloud brought great innovations and what better than to bring those innovations to on premise workloads that we've chosen to operate and work there. So as we think about cloud more as an experience we want for our developers and our end users and our I. T. Organizations. We begin to think about how can we replicate that experience in an on premise environment. And so part of that is having the technologies that enable you to do that. The other part is um We most of us have evolved alrighty organization operating models to operate our cloud infrastructures off premises. Well now expanding that more holistically across our organization so we don't have to operating models but a single operating model that bridges both and brings the ability of both those together to get the most benefit as we really become to integrate and become truly hybrid in our organization. So I think the operating model is critical and um the kinds of experiences we deliver to the users of that I. T. Uh infrastructure and operating model is critical as well. >>Are you guys are both basically in the infrastructure business scott? Maybe we can start with you there's a lot of changes that we're talking about in it. Generally the data center specifically especially big changes in workloads with a lot more data intensive apps ai being injected into everything Kubernetes, making things more facile. And in many ways it simplifies things, but it also puts stress on the system because you've got to protect this, they're no longer stateless apps right there, state full and you gotta protect them and and so they've got to be compliant. Um Now you've got the edge coming in. Uh So my question is, what does infrastructure have to do to keep pace with all this application innovation? >>Uh One of the conversations that we are having increasingly with our customers is how can they embrace a dev sec ops mindset in their organization and adopt some of these more modern patterns and practices and make sure that security is embedded in the life cycle of the container. And and so, you know, I think that this is part of, the answer is equipping the operator through infrastructure to set guard rails in place so that the development organization can work with freedom inside of those guard rails that it can draw on a catalogs of curated container images, catalogs of apps start from templates. Those are the building blocks that allow developers to work faster and that allow an operator to ensure the integrity and compliance of the containers and the applications that the organizations building. >>Yeah, So, so that's kind of uh when I hear scott talking about that Toby I think infrastructure as code designing security and governance in we always we always said I was an afterthought, we kind of bolted it on second. The security team had to take care of that. This is always the same thing with backup. Right? So we got an app. It's all ready to go. How do we back it up? And so that's changing that whole notion of infrastructure as code. Um, I want to talk about Green lake in a minute, but, but before we get there, I wonder if you could talk about how HP E thinks about VM ware and how you guys are partnering. I'm specifically interested and where each of you sees the value that you bring to the table for your joint customers. >>Yeah, great question. You know, and, and starting to think about history like you did 2010 being the start of a cube journey. I, I remember in 2003 when we first partnered with VM ware in the very first data center consolidations and we built practices around this. It's been quite a long partnership with VM ware and I'm excited to see this. This partnership evolved today, especially into this cloud, native space and direction. Uh, it's critical we need you know uh you know customers have choices and we need great partners like VM ware uh to help satisfy the many different use cases and choices that our customers have. So while we bring you know good depth when it comes to building these infrastructures that become highly automated um and managed in some cases and consume consumable like on a consumption basis and automated like we help clients automate their ci Cd pipeline. We depend on technologies and partners like them where to make these outcomes real for our customers. >>Yeah I think there's a way to connect a couple of the points that we've been talking about today. Got some data from a state of kubernetes study that we just ran and this is 350 I. T. Decision makers who said uh that they're running kubernetes on premise, 55% of respondents are running kubernetes on premise today and so VM ware and HP get to work together to bring kubernetes to those enterprises, 96% of them said that they're having a challenge selecting the right kubernetes distribution, 60 of them in that C. N. C. F. Landscape and the number one criteria that they're going to use to choose the right distribution, you know set them on a path forward is that it's easy to deploy and to operate and to maintain in production. And so I think that this is where the m wear and HP get to come together to help try and keep things as simple as possible for customers as they navigate. A fairly complex world. >>That's interesting scott. So who are those um those on prem users of containers and kubernetes? Is it the is it the head of you know the the application team and an insurance company whose kind of maintaining the claims about? Is it is a guy's building new cloud native apps to help companies get digital first. Who are those? What's the persona look like >>in our conversations? You know, this is the infrastructure and operations team seen that there's energy around kubernetes and maybe there's some use in test and development and parts of the organization. And by centralizing over ownership of that kubernetes footprint, they can ensure that it's compliant if policy is set properly to your point earlier that it's meets the security standards for the organization. And so it's increasingly that SRE or site reliability engineer or platform operator who's taking ownership of that kubernetes footprint for the organization to ensure that consistency of management and experience for the development teams across the larger order Toby, is that what you're seeing? Two, >>yeah, we see uh we see quite a few, we engage with quite a few developer teams in business leads that have ambitions to speed their application development processes And uh you know, they want help and often as I stated, the intro, they might be coming off of a much older deployment uh maybe from 2015 where there there were an early adopter of a container platform methodology and wanting to get to some newer platform or they they may be in charge of getting a mobile banking application and its features to market much more quickly. So, and often when we get a quote maybe from a client, it might come from, you know, the VP of a business unit. But often as we engage, it's, you know, the developers are pretty much our customers and their developer leaders and teams, >>so you're running into container technical debt already. You're seeing that out there. It sounds like your legacy >>container. It takes some expertise to, to come off those older. You know, the first instance creations of these container platforms were pretty much open source. And yeah, you want to bring it to something that's more modern and has the kinds of features, enterprise grade features you might need. >>So is it not so problematic for for customers? Because as I said before, a lot of those apps were sort of disposable and stateless. And, and, and now they're saying, hey, we can actually use kubernetes to build, you know, mission critical apps. And so there, that's when they sort of decide to pivot to a new modern platform or is there a more complex migration involved? What are you seeing? >>Okay, I'll give my hot, take your Toby and then uh, ask you for yours. But I guess I feel like the conversations that I'm involved in with customers is, you know, always begins with their broader application portfolio. These enterprises have hundreds thousands of applications and job one is to figure out how to categorize them into those which need to be re hosted or platforms or re factored or reimagined entirely. And so they're looking for help figuring out how to categorize those applications and ultimately how to attack each category of application. Some should be re platforms on environments that make best use of kubernetes, some need to be re factored, some need to be reimagined. And so they are again looking for that expert guide to show them the way >>right. And when we engage in those early discussions, we call it right Mix advisory. Um, you know, you're trying to take a full of broad scope as he said, scott down to a few and uh you know, determine kind of the first movers if you will also, you know, clients will engage you know, for very specific applications that are or suite of applications. Again like mobile applications for banking I think are a good example because you know they have an ambition. I mean the leader of that kind of application may very well think that is the mission critical application for the company, right? But of course finance, they have a different point of view. So you know that that application to them is the center of their business getting, you know, their customer access to the core banking features that they have and you know, they want to zero in on the kind of ecosystem. It takes in in the speed at which they can push new features through. So we see both as well um you know, the broader scope application, weaning down to the few discovery application, uh and then of course a very focused effort to help a particular business unit speed development on their mobile app, for example, >>it's interesting scott you were talking about sort of the conversation starts with the application portfolio and there have been there have been these sort of milestones around, you know, major application portfolio, I'll call him rationalizations, I mean there's always an ongoing but y two K was one of those, this is sort of the big move to SAS was another one, obviously cloud and it feels like kubernetes, I mean it's like the cloud to Dato coming on Prem is another one of those opportunities to rationalize applications. We all know the stats right, we always see 85% of the spend is to keep the lights on and the other the only small portions innovation and you know, there's always a promise we can change that. It reminds me of the every year I would go to the boston marathon, it was this guy would run and he had a hat on with the extension and it was a can of Budweiser way out there and he couldn't reach it and so he would run, it was almost the same thing here is they never get there because they have so many projects coming online and the project portfolio and and then and then the C I O has got to maintain those in the application heads and so it's this, this ongoing thing but you do see spikes in rationalization initiatives and it feels like with this push to modernization and digitization maybe the pandemic accelerated that too. Is that a reasonable premise? You seeing sort of a milestone or a marker in terms of increased effort around rationalization and modernization today because of kubernetes? >>Yeah, I definitely think that there are a couple of kubernetes is a catalyzing technology and the challenges of the pandemic or a catalyzing moment. Right. And I feel like uh Organisations have seen over the past 18 months now that those enterprises that have a way to get innovation to market to customers faster, not once a quarter, but many times a day are the ones that are separating themselves in competitive marketplaces and ultimately delivering superior customer experiences. So it comes back to some of the ideas full circle that Toby started with around delivering a superior developer experience so that those developers can get code to production and into the hands of customers on a much more rapid basis. Like that's the outcome that enterprises really care about at the end of the day. And kubernetes is part of the way to get there. But it's the outcome that's key. Great, thank >>you. And one of our practices dave there was uh you know, that's been our bread and butter for so many years. This, you know, this broad based discovery, narrowing down to a strategy and a plan for migrating and moving certain workloads. We see a slight twist today in that clients and organizations want to move quicker too. The apps, they know that, you know, they want to focus on, they want to prove it by through the broad based discovery and kind of a strategic analysis, but they want to get quicker right away to the workloads. They are quite sure that need re factoring or leverage the benefit of a modern developer environment >>and they don't want to be messing around with provisioning lungs and servers and all that stuff. They want that to be simplified. So we're gonna end on Green Lake and I want to understand how you guys are thinking about Green Lake in terms of your partnership and how you're working together, you know, maybe Toby you could sort of give us the update from your perspective, you can't have a conversation with HP today without talking about Green Lake. So give us the kool aid injection. And then I really interested in how VM ware thinks about participating in that. >>Absolutely. And, and thank you for uh, yeah, for helping us out here. You know, I see more and more of our engagements with clients that ask for and, and, and want to sign a Green Life based contract, >>but, >>and that is one very important foundational element. Uh and there's there's so much more because remember we talked about the cloud experience in cloud everywhere and Green Lake brings us an opportunity to bring dimensions to that, especially on the consumption model because that's that's an important element if we begin adding partners such as VM ware to this equation, especially for clients that have huge investments in VM where there's an opportunity here to really bring a lot of value with this cloud experience to our customers through this partnership. >>All right scott, we're gonna give you the last word. What's your take on this? >>Hey listen hard for me to to to add much to what Toby said, he nailed that you see a ton of energy in this space. I think we've covered a bunch of key topics today. Their ongoing conversations with our customers in Green Link is a way to take that conversation to the next level. >>Guys really appreciate you coming on and give us your perspectives on kubernetes and and and and thank you scott for that data. 55% of I. T. Decision makers out of 350 said they're doing on prem kubernetes. That's a new stat. I hadn't I would have expected to be that high but I guess I'm not surprised it's the rage the developers want the latest and greatest guys. Thanks so much for sharing your knowledge and I appreciate you coming on the cube. >>Thank you. Dave. >>Thanks Dave. >>Thank you for watching the cubes ongoing coverage. Hp es discover 2021. The virtual version will be right back. >>Mm.

>>Good morning. Good, absolute and good evening to all >>those who are listening to this presentation. >>I am rather to Saxena and I manage the platform >>solutions and the thought body operating systems team in the compute workload and solutions group within HP compute >>today I'm >>going to discuss about containers >>and what containers >>do for you >>as a customer >>and why >>should you consider h PE container solutions >>for transforming your business? >>Let's talk about how some of >>the trends seen >>in the industry are impacting the >>customer's day >>in and >>day out and what is it that >>they really need >>cloud services >>and continue your ization, increase operational flexibility, agility and >>speed. >>But non native >>apps seem >>to be a serious issue. >>These legacy apps >>and architecture slow the >>development team, >>making it much harder to meet competitive demand >>and cost pressures. It administrators are >>looking for a way to quickly deploy and manage the resources there. Developers need. >>They want to release more >>updates more quickly. Digital transformation has really shifted >>its focus >>from operations. Two applications, it's all >>about gaining the agility to deploy code faster >>developers want the >>flexibility to choose from a variety of >>Os or containerized ab stacks and to have fast access >>to the resources >>they need. And Ceos >>and line >>of business owners need visibility >>into cost >>and usage so they can optimize their >>spend and drive >>higher utilization of >>their resources. >>So let's define what >>is container technology. >>Container >>technology is a method used to package >>an application >>and software. >>It is a game changer. >>Let's take a closer look at at a couple of >>examples within each area. In the area of cost savings, we achieve savings by reducing the virtualized footprint and by reducing administrative overhead >>through the introduction >>of CIA >>CD pipelines. >>In terms of agility, >>this helps you become more a child by enabling >>your workload portability. It also >>shortens development >>life cycle while increasing the frequency >>of application updates. Within innovation, container platform technologies >>provides >>centralized >>images and source code >>through standard >>repositories, decoupling of application dependencies >>and use of templates >>leading to enhancing >>collaboration. This kick starts your innovation >>container technology would bring >>these benefits to enterprise it and accelerate the transformation of business. >>H. P. E has the proven >>architecture and expertise for the introduction >>of container technology. >>Apps and >>data are no longer centralized in >>the data center. >>They live >>everywhere at the edge, >>in Carlos, >>in the cloud and >>in the data center. This creates >>enormous complexity for application operability >>performance >>and security >>customers are looking >>for a way >>to simplify >>speed and scale their apps and that's driving a rise in container adoption. >>Managing these >>distributed environments requires different skill sets, >>tools and processes >>to manage both >>traditional and cloud environments. >>It is complex >>and time consuming >>all of these workloads are also very >>data dependent Ai >>data analytics and that modernization are the key entry points for >>HB >>Admiral to >>intercept the transformation budget. >>A study from I. T. >>C. Found that >>More than 50 of enterprises are leveraging containers >>to modernize legacy applications >>as is >>without re architect in them. >>These containers are often then deployed >>in on premise cloud environments using kubernetes and Docker. Re implementing legacy applications >>as >>cloud native microservices >>has proven >>more difficult >>than expected, >>held back by the scarcity of the experienced Microsoft >>talent to do that work. >>As a result, only half >>of the new containers deployed leverage microservices >>for cloud native apps. one key element of the >>HB approach is to reduce the effort >>required to >>continue to rise these existing applications. >>One platform for non cloud native and cloud >>native apps >>is the H P E. S. Moral >>container platform. >>Hp Green Lake brings the >>true cloud >>experience to your cloud >>native and non cloud native apps without >>costly. Re factoring with cloud services for containers through Hve Green Lake >>continue rising. >>Non cloud native apps, >>improves >>efficiency, >>increases agility >>and provides >>application affordability. >>Simple applications can take about three months >>while complex once >>up to a year to re factor >>with cloud services for >>containers through HP Green Lake >>customers can save this time and get the benefits >>With 100 open source kubernetes right away with HP >>Asmal >>container platform, non cloud native state fel. Enterprise apps can be deployed in containers without >>costly re factoring >>enabling customers to bring speed and agility >>to non cloud native apps >>with ease. Hp Green Lake is a >>single platform for war clothes and helps customers avoid the cost of moving data and apps and run walk clothes >>securely from the edge >>call occasions >>and data centers >>while meeting the needs for the agency, >>data sovereignty >>and >>regulatory compliance >>with unique type. The >>HBs milk container platform >>provides a container management control plane >>with the fully integrated >>Hve Admiral data fabric. >>The HBs real container platform >>integrates a high performance distributed >>file, an >>object storage. >>These turnkey >>pre configured >>cloud connected >>solutions >>are delivered in >>As little as 14 days and managed for you by HP. E and our partners so >>customers do not need to skill up on kubernetes. >>The key differentiators >>for H. >>B. S. Merrill are providing a complete >>solution that addresses >>a broad set of applications and a consistent multi cloud deployment and management platform. It solves the data integrity >>and application recovery issues >>central >>to business critical >>on >>premise applications. >>It maintains the commitment to open source to ensure customers >>can take >>advantages of future developments >>with these distributions. >>It reduces >>development effort and moves application development >>to self service. >>Now let us look at >>some customer success stories with HBs Merrill. Here is a >>customer who modernize >>their existing legacy applications. >>There were a lot of blind >>spots in the system and the >>utilization >>Was just about 10%. By transitioning to containers, they >>were able to get >>50 >>eight times faster in just performance, reducing a significant >>portion of the cost of >>the customers deployment, significant >>reduction in infrastructure >>footprint resulting >>in lower TCO >>and with HB Green Lake, they received cloud agility >>at a fraction >>of the cost of the alternatives. This customer is expanding its efforts into machine >>learning and >>analytics technologies >>for decision support in areas >>of ingesting and processing large data sets. >>They are enabling data science >>and >>such based applications >>on large >>and low late in data sets using a combination of >>patch >>and streaming transformation processes. >>These data sets support both offline and in line machine learning, deep learning training >>and model execution >>to deploy these >>environments at >>scale and >>move from >>experimentation >>to >>production. They need to connect the dots between their devops teams and the data science teams >>walking on machine learning >>and analytics from an inch for such a standpoint. They're using containers >>and kubernetes >>to drive greater agility >>and flexibility as well as cost savings and efficiency >>as they are >>operationalized. >>These machine >>learning deep learning >>and analytic initiatives. >>This includes >>automated configuration of software stacks and the deployment of data pipeline bills >>in containers. >>The developers >>selected kubernetes >>as the container >>orchestration engine for the enterprise >>and is using H >>P E S, real container >>platform >>for their machine learning >>deep learning and analytic war clothes. This customer had a growing demand for >>data scientists >>and their goals >>were >>to gain continuous insights into existing and new customers >>and develop innovative products >>and get them to >>market faster amongst others. >>The greater >>infrastructure utilization >>on premises resulted in >>significant cost savings Around $6 million three years >>and significantly improved environment >>provisioning time >>From 9 to 18 months to just about 30 minutes. And along those lines, >>there are many >>more examples >>of customer success stories across various industries >>that proved >>transitioning >>to the HP. Es. >>Moral container >>solutions can be >>a total game changer by the way. HB also >>provides container solutions on with various software vendors. >>This customer >>was eager to >>embrace a giant abb development techniques >>that would allow them >>to become more a child >>scalable >>and affordable, helping to deliver >>an exceptional customer service >>and avoid vendor lock in HB. partnered with >>them to deploy >>red hat, open shift running on HP hardware, >>which became a new container >>based devoPS >>platform, effectively >>running on bare metal for >>minimal resource >>overheads and maximum performance. >>The customer now had a platform >>that was capable of supporting >>their virtualization and continue realization ambitions. >>Now let us see how HB Green Lake can help >>you reduce costs, >>risk and time you get speed, time >>to value >>with >>pre integrated hardware, >>software and services the HP ES moral platform to >>design and build >>container based >>services and cell service, catalog and marketplace for rapid >>provisioning >>of these services, >>you get lower risk to the business >>with >>fully managed by contained by HP >>container experts. >>Proactive resolution >>of incidents, >>active capacity management to scale with demand, you can reduce costs >>by avoiding >>upfront capital expense >>and over >>provisioning with pay per use model >>intuitive dashboard for >>cluster costs and storage. >>HB also has a huge >>differentiator when it >>comes to security. >>The HBs. Silicon Root >>of Trust >>secures your >>data at the microcode level >>inside the processor itself, ensuring >>that your digital assets >>remain protected and secure >>with your continued authorization strategy >>built on the world's >>most >>secure industry standard servers, >>you'll be able to >>fully concentrate your resources on your modernization efforts. >>Additionally, >>you can enjoy >>benefits such as HP >>form where threat detection >>along with the with other best in class >>innovations from H B such as malware detection >>and Form where recovery. Your HP servers >>are protected >>from >>silicon to >>software >>and at every touch >>point in between >>preventing bad >>actors from gaining access to containers or infrastructure. >>H B E can help accelerate >>your transformation >>using >>three pillars. >>Hp Green Lake, >>you can deploy >>any workload as a service >>with >>HP Green Lake Services, >>you can now bring >>cloud >>speed >>agility and as a >>service model >>to wear your >>apps and data are today transform the >>way you do business >>with one experience >>And one operating model >>across your distributed clouds >>for apps >>and data >>at the edge in coal occasions >>and in your data center. HB point Next services >>with over >>11,000 >>I'd projects conducted >>And 1.4 million >>customer interactions each year. >>HB point X Services, >>15,000 plus experts and its vast >>ecosystem of solution >>partners and channel partners >>are uniquely able to help you at every stage >>of your digital transformation because we address >>some of the biggest >>areas that can slow you down. >>We bring together technology >>and expertise >>to help you drive >>your business forward >>and last but not the least. >>Hp Financial services, >>flexible investment >>capacity are key >>considerations >>for businesses >>to drive digital transformation initiatives >>in order to forge a path forward. You need >>access two flexible >>payment options >>that allow you to match icty costs >>to usage. >>From helping release >>capital from existing infrastructure, two different payments >>and providing >>pre owned tech >>to relieve capacities. Train >>HP Financial >>services unlocks the value of the customer's entire >>estate from >>edge >>to cloud >>to end user >>with multi vendor >>solutions consistently and sustainably >>around the world. HB Fs >>makes I'd >>investment >>force multiplier, >>not a stumbling block. >>H B S. Moral >>and HB compute are the >>ideal choice >>for your container Ization strategy, >>combining familiar silver hardware >>with a container platform that has been >>optimized for the environment. >>This combination is >>particularly cost effective, >>allowing you to capitalize on existing hardware skills >>as you focus >>on developing innovative >>containerized solutions. >>H beef Admiral >>fits your existing infrastructure and provides potential to scale as required. >>And with that, >>I conclude this session and I hope >>you found this valuable. There are many resources available at hp dot >>com that you can use >>to your benefit. Thank you once again.

>>Yeah. Okay. Now we're going to dig deeper into HP es moral and try to better understand how it's going to impact customers. And with me to do that are Robert Christensen is the vice president strategy in the office of the C, T. O. And Kumar Srikanth is the chief technology officer and head of software both, of course, with Hewlett Packard Enterprise. Gentlemen, welcome to the program. Thanks for coming on. >>Good seeing you. Thanks for having us. >>Always. Great. Great to see you guys. So, Esmeralda, kind of a interesting name. Catchy name. But tomorrow, what exactly is H P E s bureau? >>Yeah. It's indeed a catchy name. Our branding team done a fantastic job. I believe it's actually a derivation from Esmeralda. The Spanish for Emerald Berlin. Supposed to have some very mystical powers. Um, and they derived as moral from there, and we all actually, initially that we heard it was interesting. Um, so as well was our effort to take all the software, the platform tools that HB has and provide these modern operating platform to the customers and put it under one brand. It has a modern container platform. It has a persistent stories distribute the date of February. It has been foresight, as many of our customers similar, So it's the think of it as a container platform offering for modernization of the civilization of the customers. >>Yeah, it's an interesting to talk about platform, so it's not a lot of times people think product, but you're positioning it as a platform, so it has a broader implications. >>That's very true. So as the customers are thinking of this civilization, modernization containers and microservices, as you know there has become, has become the stable whole. So it's actually a container orchestration platform. It offers open source proven. It is as well as the persistence always bolted to >>so by the way, s moral, I think emerald in Spain, I think in the culture it also has immunity powers as well. So immunity >>from >>lock in and all those other terrible diseases. Maybe it helps us with covid to rob Robert. When you talk to customers, what problems do you probe for that that is immoral. Can can do a good job solving. >>Yeah, they That's a really great question because a lot of times they don't even know what it is that they're trying to solve for, other than just a very narrow use case. But the idea here is to give them a platform by which they can bridge both the public and private environment for what to do an application development specifically in the data side. So when they're looking to bring Container Ization, which originally got started on the public cloud and has moved its way, I should say, become popular in the public cloud and has moved its way on premises. Now Esmeralda really opens the door to three fundamental things. But how do I maintain an open architecture like you're referring to some low or oh, no lock in of my applications And there were two. How do I gain a data fabric or data consistency of accessing the data so I don't have to rewrite those applications when I do move them around and then, lastly, where everybody is heading down, the real value is in the AI ML initiatives that companies are are really bringing that value of their data and locking the data at where the data is being generated and stored. And so the is moral platform is those multiple pieces that I was talking about stacked together to deliver those solutions for the client. >>So come on, what's the How does it work? What's the sort of I p or the secret sauce behind it all? What makes HP different? >>Continuing our team of medical force around, uh, it's a moral platform for optimizing the data Indians who were close. I think I would say there are three unique characteristics of this platform. Number one is actually provides you both an ability to run stable and stateless were close under the same platform, and number two is as we were thinking about. Unlike analogues, covenant is open source. It actually produce you all open source government as well as an orchestration behind you. So you can actually you can provide this hybrid, um, thing that drivers was talking about. And then actually we built the work flows into it. For example, we're actually announced along with Esmeralda MLS, but on their customers can actually do the work flow management. Our own specifically did the work force. So the magic is if you want to see the secrets of is all the efforts that have been gone into some of the I p acquisitions that HBs the more years we should be. Blue Data bar in the nimble emphasize, all these pieces are coming together and providing a modern digitalization platform for the customers. >>So these pieces, they all have a little bit of a machine intelligence in them. Yeah, People used to think of a I as the sort of separate thing, having the same thing with containers, right? But now it's getting embedded in into the stack. What? What is the role of machine intelligence or machine learning in Edinburgh? >>I would take a step back and say, You know this very well. They're the customer's data amount of data that is being generated, and 95% or 98% of data is machine generated, and it has a serious amount of gravity, and it is sitting at the edge, and we were the only the only one that edge to the cloud data fabric that's built. So the number one is that we are bringing computer or a cloud to the data. They're taking the data to the cloud like if you go, it's a cloud like experience that provides the customer. Yeah, is not much value to us if we don't harness the data. So I said this in one of the blood. Of course, we have gone from collecting the data era to the finding insights into the data so that people have used all sorts of analysis that we are to find data is the new oil to the air and the data. And then now you're applications have to be modernized. And nobody wants to write an obligation in a non microservices fashion because you want to build the modernization. So if you bring these three things, I want to have a data. Gravity have lots of data. I had to build an area applications and I want to have an idea those three things I think we bring together to the customs. >>So, Robert, let's stay on customers from it. I mean, you know, I want to understand the business impact, the business case. I mean, why should all the you know, the cloud developers have all the fun? You mentioned that you're bridging the cloud and on Prem, uh, they talk about when you talk to customers and what they are seeing is the business impact. What's the real drivers for them. >>That's a great question because at the end of the day I think the reason survey that was that cost and performance is still the number one requirement for the real close. Second is agility, the speed of which they want to move. And so those two are the top of mind every time. But the thing we find in as moral, which is so impactful, is that nobody brings together the silicon, the hardware, the platform and all that stacked together work and combined, like as moral does with the platforms that we have and specifically, you know, when we start getting 90 92 93% utilization out of ai ml workloads on very expensive hardware, it really, really is a competitive advantage over a public cloud offering which does not offer those kind of services. And the cost models are so significantly different. So we do that by collapsing the stack. We take out as much intellectual property, give me, um, as much software pieces that are necessary. So we are closest to the silicon closest to the applications bring into the hardware itself, meaning that we can inter leave the applications, meaning that you can get to true multi tendency on a particular platform that allows you to deliver a cost optimized solution. So when you talk about the money side, absolutely. There's just nothing out there and then on the second side, which is agility. Um, one of the things that we know is today is that applications need to be built in pipelines. Right? This is something that has been established now for quite some time now. That's really making its way on premises. And what Kumar was talking about was, how do we modernize? How do we do that? Well, there's going to be something that you want to break into Microservices and containers. There's something you don't now the ones that they're going to do that they're gonna get that speed and motion etcetera out of the gate. And they can put that on premises, which is relatively new these days to the on premises world. So we think both will be the advantage. >>Okay, I want to unpack that a little bit. So the cost is clearly really 90 plus percent utilization. I mean, come on. You know, even even a pre virtualization. We know what it was like even with virtualization, you never really got that high. I mean, people would talk about it, but are you really able to sustain that in real world workloads? >>Yeah, I think when you I think when you when you make your exchangeable currency into small pieces, you can insert them into many areas. And we have one customer was running 18 containers on a single server and each of those containers, as you know, early days of data. You actually modernized what we consider we won containers of micro B. Um, so if you actually build these microservices and you have all anti affinity rules and you have rationing formulas all correctly, you can pack being part of these things extremely violent. We have seen this again. It's not a guarantee. It all depends on your application and your I mean, as an engineer, we want to always understand how this can be that sport. But it is a very modern utilization of the platform with the data and once you know where the data is, and then it becomes very easy to match those >>now. The other piece of the value proposition that I heard Robert is it's basically an integrated stack, so I don't have to cobble together a bunch of open source components. It's there. There's legal implications. There's obviously performance implications that I would imagine that resonates is particularly with the enterprise buyer, because they have the time to do all this integration. >>That's a very good point. So there is an interesting, uh, interesting question that enterprise they want to have an open source, so there is no lock in. But they also need help to implement and deploy and manage it because they don't have expertise. And we all know that Katie has actually brought that AP the past layer standardization. So what we have done is we've given the open source and you write to the covenant is happy, but at the same time orchestration, persistent stories, the data fabric, the ai algorithms, all of them are bolted into it. And on the top of that, it's available both as a licensed software and run on Prem. And the same software runs on the Green Lake so you can actually pay as you go and you don't we run it for them in in a collar or or in their own data center. >>Oh, good. I was one of my latter questions, so I can get this as a service paid by the drink. Essentially, I don't have to install a bunch of stuff on Prem and pay >>a perpetual license container at the service and the service in the last Discover. And now it's gone production. So both MLRS is available. You can run it on friends on the top of Admiral Container platform or you can run inside of the Green Bay. >>Robert, are there any specific use case patterns that you see emerging amongst customers? >>Yeah, absolutely. So there's a couple of them. So we have a really nice relationship that we see with any of the Splunk operators that were out there today. Right? So Splunk containerized their operator. That operator is the number one operator, for example, for Splunk, um, in the i t operation side or notifications as well as on the security operation side. So we found that that runs highly effective on top of his moral on top of our platforms that we just talked about what, uh, Kumar just talked about, but I want to also give a little bit of backgrounds to that same operator platform. The way that the Admiral platform has done is that we've been able to make highly active, active with a check availability at 95 nines for that same spark operator on premises on the kubernetes open source, which is, as far as I'm concerned. Very, very high end computer science work. You understand how difficult that is? Uh, that's number one. Number two, you'll see spark just a spark. Workloads as a whole. All right. Nobody handles spark workloads like we do. So we put a container around them, and we put them inside the pipeline of moving people through that basic, uh uh, ml ai pipeline of getting a model through its system through its train and then actually deployed to our MLS pipeline. This is a key fundamental for delivering value in the data space as well. And then, lastly, this is This is really important. When you think about the data fabric that we offer, um, the data fabric itself, it doesn't necessarily have to be bolted with the container platform to container at the actual data. Fabric itself can be deployed underneath a number of our for competitive platforms who don't handle data. Well, we know that we know that they don't handle it very well at all. And we get lots and lots of calls for people say, Hey, can you take your as Merrill data for every and solve my large scale, highly challenging data problems, we say yes. And then when you're ready for a real world full time but enterprise already, container platform would be happy to privilege. >>So you're saying if I'm inferring correctly, you're one of the values? Is your simplifying that whole data pipeline and the whole data science science project? Unintended, I guess. >>Okay, >>that's so so >>absolutely So where does the customer start? I mean, what what are the engagements like? Um, what's the starting point? >>It's being is probably one of the most trusted enterprise supplier for many, many years, and we have a phenomenal workforce of the both. The PowerPoint next is one of the leading world leading support organization. There are many places to start with. The right one is Obviously all these services are available on the green leg as we just start apart and they can start on a pay as you go basis. We have many customers that. Actually, some of the grandfather from the early days of pleaded and map are and they're already running, and they actually improvised on when, as they move into their next generation modernization, um, you can start with simple as metal container platform with persist with the story compared to this operation and can implement as as little as $10 and to start working. Um, and finally, there is a a big company like HP E. As an enterprise company defined next services. It's very easy for the customers to be able to get that support on the day to operation. >>Thank you for watching everybody's day volonte for the Cube. Keep it right there for more great content from Esmeralda. >>A mhm, okay.

>>from around the globe. It's the Cube covering HP. Discover Virtual experience Brought to you by HP. >>Welcome back to the Cube's coverage of HP Discover. 2020. The virtual experience. The Cube. The Cube has been virtualized. My name is Dave Vellante. I'm here with Stuart Minuteman and our good friend Tim Crawford is here. He's a strategic advisor to see Io's with boa. Tim, Great to see you. Stuart. Thanks for coming on. >>Great to see you as well, Dave. >>Yes. So let's unpack. What's going on in that Discover Antonio's, He notes, Maybe talk a little bit about the prospects for HP of coming forward in this decade. You know, last decade was not a great one for HP, HP. I mean, there was a lot of turmoil. There was a botched acquisitions. There was breaking up the company and spin merges and a lot of distractions. And so now that companies really and you hear this from Antonio kind of positioning for innovation for the next decade. So So I think this is probably a lot of excitement inside the company, but I want to touch on a couple of points and then you get your guys reaction, I guess, you know, to start off. Obviously, Antonio's talking about Cove in the role that they played in that whole, you know, pandemic and the transition toe the the isolation economy. But so let me start with you, Tim. I mean, what is the sort of posture amongst cios that you talk to? How strategic is HB H B two? The folks that you talk to in your community? >>Well, I think if you look at how CIOs are thinking, especially as we head into covert it into Corona virus and kind of mapping through that, that price, um, it really came down to Can they get their hands on technology? Can they get people back to work working from home? Can they do it in a secure fashion? Um, keeping people productive. I mean, there was a lot of block and tackling, and even to this day, there's still a fair amount of that was taking place. Um, we really haven't seen the fallout from the cybersecurity impact of expanding our foot print. Um, quite. But we'll see that, probably in the coming months. There are some initial inklings there when it comes to HP specifically I think it comes back to just making sure that they had the product on hand, that they understood that customers are going through dramatic change. And so all bets are off. You have to kind of step back and say, Okay, those plans that I had 60 9100 and 20 days ago those strategies that I may have already started down the path with those are up for grabs. I need to step back from those and figure out What do I do now? And I think each company, HP included, needs to think about how do they start to meld themselves, to be able to address those changing customer needs? And I think that's that's where this really kind of becomes the rubber hits the road is is HP capable of doing that? And are they making the right changes? And quite frankly, that starts with empathy. And I think we've heard pretty clearly from Antonio that he is sympathetic to the plight of their customers and the world >>on the whole. >>Yeah, and I think culturally 10 minutes do I mean I think you know HP is kind of getting back to some of its roots, and Tony has been there for a long time. I think people I think is very well liked. Andi, I think, ease of use, and I'm sure he's tough. But he's also a very fair individual, and he's got a vision and he's focused. And so, you know, I think again, as they said, looking forward to this decade, I think could be one that is, you know, one of innovation. Although, you know, look, you look at the stock price, you know, it's kind of piqued in November 19. It's obviously down like many stocks, so there's a lot of work to do there, and it's too. We're certainly hearing from HP. This notion of everything is a service that we've talked about green like a lot. What's your sense of their prospects going forward in this, you know, New Era? >>Yeah, I mean, Dave, one of the biggest attacks we've heard about H E in the last couple of years, you know the line Michael Dell would use is you're not going to grow by, say, abstraction. But as a platform company, HP is much more open. From what I've seen in the HP that I remember from, you know, 5 to 10 years ago. So you look at their partner ecosystem. It's robust. So, you know, years ago, it seemed to be if it didn't come out of HP Labs, it wasn't a product, you know. That was the services arm all wanted to sell HP here. Now, in this software defined world working in a cloud environment, they're much more open to finding that innovation and enabling it. So, you know, we talk about Green Lake Day. Three lakes got about 1000 customers right now, and a big piece of that is a partner. Port Police, whether it's VM Ware Amazon Annex, were H B's full stack themselves. They have optionality in there, and that's what we hear from from users is that they want flexibility they don't want. You know, you look at the cloud providers, it's not, you know, here's a solution. You look at Amazon. There's dozens of databases that you can use from Amazon or, if you use on top of Amazon, so H p e. You know, not a public cloud provider, but looking more like that cloud experience. They've done so many acquisitions over the years. Many of them were troubled. They got rid of some of the pieces that they might have over paid for. But you look at something like CTP them in this multi cloud world in the networking space, they've got a really cool, open source company, the company behind spiffy, inspire. And, you know, companies that are looking at containers and kubernetes, you know, really respond to say, Hey, these are projects that were interesting Oh, who's the company that that's driving that it's HP so more open, more of a partner ecosystem definitely feels that there's a lot there that I respect and like that hp >>well, I mean, the intent of splitting the company was so that HP could be more focused but focused on innovation was the intent was to be the growth company. It hasn't fully played out yet. But Tim, when you think about the conversations that CIOs are having with with HPI today versus what they were having with hpe HP, the the conglomerate of that the Comprising e ds and PCs, I guess I don't know, in a way, more more Dell like so Certainly Michael Dell's having strategic conversations, CIOs. But you got to believe that the the conversations are more focused today. Is that a good thing or a jury's still out? >>No, it absolutely is a good thing. And I think one of the things that you have to look at is we're getting back to brass tax. We're getting back to that focus around business objectives. So no longer is that hey, who has the coolest tech? And how can we implement that tax? Kind of looking from a tech business? Ah, spectrum, you're now focused squarely is a C i. O. You have to be squarely focused on what are the business objectives that you are teamed up for, and if you're not, you're on a very short leash and that doesn't end well. And I think the great thing about the split of HP HP e split and I think you almost have to kind of step back for a second. Let's talk about leadership because leadership plays a very significant role, especially for CIOs that are thinking about long term decisions and strategic partners. I don't think that HP necessarily had the right leadership in place to carry them into that strategic world. I think Antonio really makes a change there. I mean, they made some really poor decisions. Post split. Um, that really didn't bode well for HP. Um, and frankly, I talked a bit about that I know wasn't really popular within HP, but quite frankly, they needed to hear it. And I think that actually has been heard. And I think they are listening to their customers. And one of the big changes is they're getting back into the software business. And when you talk about strategic initiatives, you have to get beyond just the hardware and start moving up the proverbial stack, getting closer to those business initiatives. And that is software. >>Yeah, well, Antonio talked about sort of the insights. I mean, something I've said a lot about borrowed from the very Meeker conversations that that data is plentiful. Something I've always said. Insights aren't. And so you're right. You've seen a couple of acquisitions, you know, Matt bahr They picked up, I think pretty inexpensively. Kind of interesting cause, remember, HP hp had an investment in Horton works, which, of course, is now Cloudera and Blue Data. Ah Kumar Conte's company, you know, kind of focusing on maybe automating data, you know, they talked about Ed centric, cloud enabled, data driven. Nobody's gonna argue with those things. But you're right, Tim. I mean, you're talking more software than kind of jettisons the software business and now sort of have to rebuild it. And then, of course, do this cloud. What do you make of HP ease Cloud play? >>Yeah, well, I >>mean, >>Dave, you the pieces. You were just talking about math bar and blue data, where HP connects it together is, you know, ai ops. So you know, where are we going with infrastructure? There needs to be a lot more automation. We heard a great quote. I love from automation anywhere. Dave was, if you talk about digital transformation without automation, it's hallucination. So, you know, HP baking that into what they're doing. So, you know, I fully agree with Tim software software software, you know, is where the innovation is. So it can't just be the infrastructure. How do you have eyes and books into the applications? How are you helping customers build those new pieces? And what's the other software that you build around that? So, you know, absolutely. It's an interesting piece. And you know, HP has got a lot of interesting pieces. You know, you talk about the edge. Aruba is a great asset for that kind of environment and from a partnership, that is a damn point. Dave. They have. John Chambers was in the keynote. John, of course. Long time partners. He's with Cisco for many years Intel. Cisco started eating with HP on the server business, but now he's also the chairman of pensando. HP is an investor in pensando general availability this month of that solution, and that's going to really help build out that next generation edge. So, you know, a chip set that HP E can offer similar to what we see how Amazon builds outpost s. So that is a solution both for the enterprise and beyond. Is as a B >>yeah course. Do. Of course, it's kind of, but about three com toe. Add more fuel to that tension. Go ahead, Tim. >>Well, I was going to pick apart some of those pieces because you know, at edge is not an edge is not an edge. And I think it's important to highlight some of the advantages that HP is bringing to the table where Pensando comes in, where Aruba comes in and also we're really comes in. I think there are a number of these components that I want to make sure that we don't necessarily gloss over that are really key for HP in terms of the future. And that is when you step back and you look at how customers are gonna have to consume services, how they're going to have to engage with both the edge and the cloud and everything in between. HP has a great portfolio of hardware. What they haven't necessarily had was the glue, that connective tissue to bring all of that together. And I think that's where things like Green Lake and Green Lake Central really gonna play a role. And even their, um, newer cloud services are going to play a role. And unlike outposts and unlike some of the other private cloud services that are on the market today, they're looking to extend a cloud like experience all the way to the edge and that continuity creating that simplicity is going to be key for enterprises. And I think that's something that shouldn't be understated. It's gonna be really important because when I look at in the conversations I'm having when we're looking at edge to cloud and everything in between. Oh my gosh, that's really complicated. And you have to figure out how to simplify that. And the only way you're going to do that is if you take it up a layer and start thinking about management tools. You start thinking about autumn, and as companies start to take data from the edge, they start analyzing it at the edge and intermediate points on the way to cloud. It's going to be even more important to bring continuity across this entire spectrum. And so that's one of the things that I'm really excited about that I'm hearing from Antonio's keynote and others. Ah, here at HP Discover. >>Yeah, >>well, let's let's stay on that stupid. Let's stay on that for a second. >>Yeah, I wanted to see oh interested him because, you know, it's funny. You think back. You know, HP at one point in time was a leader in, you know, management solutions. You know, HP one view, you know, in the early days, it was really well respected. I think what I'm hearing from you, I think about outpost is Amazon hasn't really put management for the edge. All they're doing is extending the cloud piece and putting a piece out of the edge. It feels like we need a management solution that built from the ground up for this kind of solution. And do I hear you right? You believe that to be as some of those pieces today? >>Well, let's compare and contrast briefly on that. I think Amazon and the way Amazon is well, is Google and Microsoft, for that matter. The way that they are encompassing the edge into their portfolio is interesting, but it's an extension of their core business, their core public cloud services business. Most of the enterprise footprint is not in public cloud. It's at the other end of that spectrum, and so being able to take not just what's happening at the edge. But what about in your corporate data center in your corporate data center? You still have to manage that, and that doesn't fall under the purview of Cloud. And so that's why I'm looking at HP is a way to create that connective tissue between what companies are doing within the corporate data center today, what they're doing at the edge as well as what they're doing, maybe in private cloud and an extension public cloud. But let's also remember something else. Most of these enterprises, they're also in a multi cloud environment, so they're touching into different public cloud providers for different services. And so now you talk about how do I manage this across the spectrum of edge to cloud. But then, across different public cloud providers, things get really complicated really fast. And I think the hints of what I'm seeing in software and the new software branding give me a moment of pause to say, Wait a second. Is HP really gonna head down that path? And if so, that's great because it is of high demand in the enterprise. >>Well, let's talk about that some more because I think this really is the big opportunity and we're potentially innovation is. So my question is how much of Green Lake and Green Lake services are really designed for sort of on Prem to make that edge to on Prem? No, I want to ask about Cloud, how much of that is actually delivering Cloud Native Services on AWS on Google on Azure and Ali Cloud etcetera versus kind of creating a cloud like experience for on Prem in it and eventually the edge. I'm not clear on that. You guys have insight on how much effort is going into that cloud. Native components in the public cloud. >>Well, I would say that the first thing is you have to go back to the applications to truly get that cloud native experience. I think HP is putting the components together to a prize. This to be able to capitalize on that cloud like experience with cloud native APS. But the vast majority of enterprise app they're not cloud native. And so I think the way that I'm interpreting Green Lake and I think there are a lot of questions Greenland and how it's consumed by enterprises there. There was some initial questions around the branding when it first came out. Um, and so you know it's not perfect. I think HP definitely have some work to do to clarify what it is and what it isn't in a way that enterprises can understand. But from what I'm seeing, it looks to be creating and a cloud like experience for enterprises from edge to cloud, but also providing the components so that if you do have applications that are shovel ready for cloud or our cloud native, you can embrace Public Cloud as well as private cloud and pull them under the Green Lake >>Rela. Yeah, ostensibly stew kubernetes is part of the answer to that, although you know, as we've talked about, Kubernetes is necessary containers and necessary but not sufficient for that experience. And I guess the point I'm getting to is, you know we do. We've talked about this with Red Hat, certainly with VM Ware and others the opportunity to have that experience across clouds at the Edge on Prim. That's expensive from an R and D standpoint. And so I want to kind of bring that into the discussion. HP last year spent about 1.8 billion in R and D Sounds like a lot of money. It's about 6% of its of it's revenues, but it's it's spread thin now. It does are indeed through investments, for instance, like Pensando or other acquisitions. But in terms of organic R and D, you know, it's it's it's not at the top of the heap. I mean, obviously guys like Amazon and Google have surpassed them. I've written about this with regard to IBM because they, like HP, spend a lot on dividends on share buybacks, which they have to do to prop up the stock price and placate Wall Street. But it But it detracts from their ability to fund R and d student your take on that sort of innovation roadmap for the next decade. >>Yeah, I mean, one of the things we look at it in the last year or so there's been what we were talking about earlier, that management across these environments and kubernetes is a piece of it. So, you know, Google laid down and those you've got Microsoft with Azure, our VM ware with EMS. Ooh! And to Tim's point, you know, it feels like Green Lake fits kind of in that category, but there's there's pieces that fall outside of it. So, you know, when I first thought of Green Lake, it was Oh, well, I've got a private cloud stack like an azure stack is one of the solutions that they have there. How does that tie into that full solution? So extending that out, moving that brand I do here, you know good things from the field, the partners and customers. Green Lake is well respected, and it feels like that is, that is a big growth. So it's HB 50 from being more thought of, as you know, a box seller to more of that solution in subscription model. Green Lake is a vehicle for that. And as you pointed out, you know, rightfully so. Software so important. And I feel when that thing I'd say HPI ee feels toe have more embracing of software than, say, they're closest competitors. Which is Dell, which, you know, Dell Statement is always to be the leading infrastructure writer, and the arm of VM Ware is their software. So, you know, just Dell alone without VM ware, HP has to be that full solution of what Dell and VM ware together. >>Yeah, and VM Ware Is that the crown jewel? And of course, HP doesn't have a VM ware, but it does have over 8000 software engineers. Now I want to ask you about open source. I mean, I would hope that they're allocating a large portion of those software engineers. The open source development developing tooling at the edge, developing tooling from multi cloud certainly building hooks in from their hardware. But is HP Tim doing enough in open source? >>Well, I don't want to get on the open source bandwagon, and I don't necessarily want to jump off it. I think the important thing here is that there are places where open source makes sense in places where it doesn't, um, and you have to look at each particular scenario and really kind of ask yourself, does it make sense to address it here? I mean, it's a way to to engage your developers and engage your customers in a different mode. What I see from HP E is more of a focus around trying to determine where can we provide the greatest value for our customers, which, frankly, is where their focus should be, whether that shows up in open source for software, whether that shows up in commercial products. Um, we'll see how that plays out. But I think the one thing that I give HP e props on one of several things I would say is that they are kind of getting back to their roots and saying, Look, we're an infrastructure company, that is what we do really well We're not trying to be everything to everyone. And so let's try and figure out what are customers asking for? How do we step through that? I think this is actually one of the challenges that Antonio's predecessors had was that they tried to do jump into all the different areas, you know, cloud software. And they were really X over, extending themselves in ways that they probably should. But they were doing it in ways that really didn't speak to their four, and they weren't connecting those dots. They weren't connecting that that connective tissue they needed to dio. So I do think that, you know, whether it's open source or commercial software, we'll see how that plays out. Um, but I'm glad to see that they are stepping back and saying Okay, let's be mindful about how we ease into this >>well, so the reason I bring up open source is because I think it's the mainspring of innovation in the industry on that, but of course it's very tough to make money, but we've talked a lot about H B's strength since breath is, we haven't talked much about servers, but they're strong in servers. That's fine We don't need to spend time there. It's culture. It seems to be getting back to some of its roots. We've touched on some of its its weaknesses and maybe gaps. But I want to talk about the opportunities, and there's a huge opportunity to the edge. David Flores quantified. He says that Tam is four. Trillion is enormous, but here's my question is the edge Right now we're seeing from companies like HP and Dell. Is there largely taking Intel based servers, kind of making a new form factor and putting them out on the edge? Is that the right approach? Will there be an emergence of alternative processors? Whether it's our maybe, maybe there's some NVIDIA in there and just a whole new architecture for the edge to authority. Throw it out to you first, get Tim Scott thoughts. >>Yeah, So what? One thing, Dave, You know, HP does have a long history of partnering with a lot of those solutions. So you see NVIDIA up on stage when you think about Moonshot and the machine and some of the other platforms that they felt they've looked at alternative options. So, you know, I know from Wicky Bon standpoint, you know, David Foyer wrote the piece. That arm is a huge opportunity at the edge there. And you would think that HP would be one of the companies that would be fast to embrace that >>Well, that's why I might like like Moonshot. I think that was probably ahead of its time. But the whole notion of you know, a very slim form factor that can pop in and pop out. You know, different alternative processor architecture is very efficient, potentially at the edge. Maybe that's got got potential. But do you have any thoughts on this? I mean, I know it's kind of Yeah, any hardware is, but, >>well, it is a little hardware, but I think you have to come back to the applicability of it. I mean, if you're taking a slim down ruggedized server and trying Teoh essentially take out, take off all the fancy pieces and just get to the core of it and call that your edge. I think you've missed a huge opportunity beyond that. So what happens with the processing that might be in camera or in a robot or in an inch device? These are custom silicon custom processors custom demand that you can't pull back to a server for everything you have to be able to to extend it even further. And, you know, if I compare and contrast for a minute, I think some of the vendors that are looking at Hey, our definition of edge is a laptop or it is this smaller form factor server. I think they're incredibly limiting themselves. I think there is a great opportunity beyond that, and we'll see more of those kind of crop up, because the reality is the applicability of how Edge gets used is we do data collection and data analysis in the device at the device. So whether it's a camera, whether it's ah, robot, there's processing that happens within that device. Now some of that might come back to an intermediate area, and that intermediate area might be one of these smaller form factor devices, like a server for a demo. But it might not be. It might be a custom type of device that's needed in a remote location, and then from there you might get back to that smaller form factor. Do you have all of these stages and data and processing is getting done at each of these stages as more and more resources are made available. Because there are things around AI and ML that you could only do in cloud, you would not be able to do even in a smaller form factor at the edge. But there are some that you can do with the edge and you need to do at the edge, either for latency reasons or just response time. And so that's important to understand the applicability of this. It's not just a simple is saying, Hey, you know, we've got this edge to cloud portfolio and it's great and we've got the smaller servers. You have to kind of change the vernacular a little bit and look at the applicability of it and what people are actually doing >>with. I think those are great points. I think you're 100% right on. You are going to be doing AI influencing at the edge. The data of a lot of data is going to stay at the edge and I personally think and again David Floor is written about this, that it's going to require different architectures. It's not going to be the data center products thrown over to the edge or shrunk down. As you're saying, That's maybe not the right approach, but something that's very efficient, very low cost of when you think about autonomous vehicles. They could have, you know, quote unquote servers in there. They certainly have compute in there. That could be, you know, 2344 $5000 worth of value. And I think that's an opportunity. I'd love to see HP Dell, others really invest in R and D, and this is a new architecture and build that out really infuse ai at the edge. Last last question, guys, we're running out of time. One of the things I'll start with you. Still what things you're gonna watch for HP as indicators of success of innovation in the coming decade. As we said last decade, kind of painful for HP and HP. You know, this decade holds a lot of promise. One of the things you're gonna be watching in terms of success indicators. >>So it's something we talked about earlier is how are they helping customers build new things, So a ws always focuses on builders. Microsoft talks a lot. I've heard somethin double last year's talk about building those new applications. So you know infrastructure is only there for the data, and the applications live on top of it. And if you mention Dave, there's a number of these acquisitions. HP has moved up the stack. Some eso those proof points on new ways of doing business. New ways of building new applications are what I'm looking for from HP, and it's robust ecosystem. >>Tim. Yeah, yeah, and I would just pick you back right on. What's do was saying is that this is a, you know, going back to the Moonshot goals. I mean, it's about as far away as HP ease, and HP is routes used to be and that that hardware space. But it's really changing business outcomes, changing business experiences and experiences for the customers of their customers. And so is far cord that that eight p e can get. I wouldn't expect them to get all the way there, although in conversations I am having with HP and with others that it seems like they are thinking about that. But they have to start moving in that direction. And that's actually something that when you start with the builder conversation like Microsoft has had, an Amazon has had Google's had and even Dell, to some degree has had. I think you missed the bigger picture, so I'm not saying exclude the builder conversation. But you have to put it in the right context because otherwise you get into this siloed mentality of right. We have solved one problem, one unique problem, and built this one unique solution. And we've got bigger issues to be able to address as enterprises, and that's going to involve a lot of different moving parts. And you need to know if you're a builder, you've it or even ah ah, hardware manufacturer. You've got to figure out, How does your piece fit into that bigger picture and you've got to connect those dots very, very quickly. And that's one of the things I'll be looking for. HP as well is how they take this new software initiative and really carry it forward. I'm really encouraged by what I'm seeing. But of course the future could hold something completely different. We thought 2020 would look very different six months ago or a year ago than it does today. >>Well, I wanna I want to pick up on that, I think I would add, and I agree with you. I'm really gonna be looking for innovation. Can h P e e get back to kind of its roots? Remember, H B's router invents it was in the logo. I can't translate its R and D into innovation. To me, it's all about innovation. And I think you know cios like Antonio Neri, Michael Dell, Arvind Krishna. They got a They have a tough, tough position because they're on the one hand, they're throwing off cash, and they can continue Teoh to bump along and, you know, placate Wall Street, give back dividends and share buybacks. And and that's fine. And everybody would be kind of happy. But I'll point out that Amazon in 2007 spent spend less than a $1,000,000,000 in R and D. Google spent about the back, then about the same amount of each B E spends today. So the point is, if the edge is really such a huge opportunity, this $4 trillion tam is David Foyer points out, there's a There's a way in which some of these infrastructure companies could actually pull a kind of mini Microsoft and reinvent themselves in a way that could lead to massive shareholder returns. But it was really will take bold vision and a brave leader to actually make that happen. So that's one of things I'm gonna be watching very closely hp invent turn r and D into dollars. And so you guys really appreciate you coming on the Cube and breaking down the segment for ah, the future of HP be well, and, uh and thanks very much. Alright. And thank you for watching everybody. This is Dave Volante for Tim Crawford and Stupid men. Our coverage of HP ease 2020 Virtual experience. We'll be right back right after this short break. >>Yeah, yeah, yeah, yeah.

from the silicon angle media office in Boston Massachusetts it's the queue now here's your host David on tape hi everybody welcome to this special cube conversations part of our partner series sponsored by HP e hewlett-packard enterprise and we've been drilling into the role that partners play the value that they add as as they emerge is the sort of new breed of nimble system integrator Tim Ferriss is here and he's with green pages we're going to do a disaster recovery drill down it's a topic that is extremely important it's relevant to this day and age Jim thanks for coming on my pleasure thank you for having Saudi our it's it's traditionally been an expensive complicated hairy scary but necessary what should we know about dr today in the state of dr well like you said i think a lot of people have written it off as prohibitively expensive and certainly in the small and medium business but you know with the advent of cloud with it with the explosion of cloud services dr as a service has made a cloud cloud base dr and disaster recovery affordable for even a small business it's taken a lot of the complexity some of the complexity out of it and it's certainly some for some clients it's the first steps toward a cloud journey you know my my friend Fred Moore former storage tech senior vice president of strategic planning is famous for coining the term backup is one thing recovery is there anything it applies to dr you know failover is one thing failback is is everything and you know a lot of times it's just you know too dangerous to test failing back how is dr evolving particularly for the small and mid-sized businesses so they can have confidence that not only can they check a box sure for their corporate boards but they if there's a disaster they can actually recover the sim is similar to that to that phrase yeah DR is not just a replication exercise right not getting just getting data from point A to point B but automating that and automating the the testing and creating run books around around that data I think some things have certainly made that easier over the years you know I I was an early delivery consultant for solution for VMware Site Recovery Manager thankfully I've used it much more for in cases of data center migration than I have for actual disasters but you know it was a fantastic automation tool but used other technologies to get the data from point A to point B and replicate that data some things that have made that easier over the years for people in more affordable a bandwidth is cheaper so you've got to get that data it still gotta get that data from point A to point B and it was prohibitively the pipe was prohibitively expensive could it keep up with my rate of change so but bandwidth is becoming less and less expensive and less and less of a hindrance there the software and the technologies typically back in the old days it was a ray based replication you needed to have like arrays and in production in dr so i i have an all flash array in production i need that same array in dr well maybe that's maybe i want to spend money on an all flash array for a use case that I hope I never need you know I'll test but never need it and you know our partner HPE has done some great things they're letting you replicate from a nimble all flash array to a hybrid array and ER let's some people save some money there but for our small and medium business for those who want to get out of the data center business maybe they want to start with dr dr as a service has been a you know a big big mover for us you know a lot of a lot of traction with that over the past year into so i mean one of the concerns that you hear this from security practitioners all the time is that they're drowning in point products and sort of dr was sort of the same I asked the customer had to become the system integrator or had engaged and spent a lot of money figuring out that that system so the dr as a service kind of takes care of all that doesn't it does it offloads not only the operational maintenance of the of the dr infrastructure but your you can leverage their years of expertise in indy our functions you know again hopefully folks don't have a ton of experience failing over from disasters you know hopefully you only have that never happens or it happens once but but these folks have are seasoned veterans in indy are so you get to not only leverage them their service taking care of the operations of it but you get their expertise for design so i can actually you mentioned bandwidth in vo is joke gold mainframes that the the fastest way to get data from point A to point B is the Chevy truck access method and and so and that was tape and in the day since big large companies still use tape I mean the big hyper scalar guys use K tape I presume it's not is if I froze it was pretty much dead in small business and maybe even it's very word I get dirty looks yesterday but do people still use tape for dr type of thing people do I would say increasingly if people are using tape it's used for those work those less critical workloads those people are looking people you know hopefully anybody who's performing a business continuity initiative will tear their workloads you know they have their tier zero those things that need to be up and running hot in the data center those tier ones with the RTOS the recovery time objectives in the minutes tape you only want to use that for recovery time objectives maybe in the weeks okay so pretty much I mean I've always hated tape but but but it's still not dead yet now people are trying through okay so thinking as an architect let's say I'm a small let's say midsize business because there's some other challenges that their and I and I used to have you know sort of backup over here and recovery and I think about dr it wasn't integrated what should I be doing in terms of bringing those disciplines together how should I be thinking about architecting a disaster recovery solution from from my client where do I start well you you should start by assessing the the applications so don't start at the VM level or the the physical workload level here from your business what are those services that they need to provide in the event of a disaster so a business continuity plan needs to be in place before we you should take on a disaster recovery architecture initiative so having that input is key to the to the to the disaster recovery process so assess assess what services need to be up and when tear them so and then investigate we investigate with our clients several different methods of protection and a dr a dr architecture won't just consist of dr as a service or a physical prem the prem replication environment it could contain many different types of protection deer as for some products for our virtual workloads application based hot protection for sequel or database workloads and that sort of thing using native application replication so a lot of different things you can you can do and it's not just the one size fits all it's really a mosaic of things tailoring the solution based on the applications value yes that gets into so you know the funny discussions with you know people always say well speak in business terms and so you sit down as business people say what do you want your RPO and arts go to the end they go what ok RPO how much data you're willing to lose and they go how much a problem how fast do you want to get it back what are you talking about instantaneously how much money do you have so it's the notion of recovery point objective recovery time objective it's sometimes not business speak how do you translate a geek into wallet wallet yeah well yeah signing have you you ask the question have you assigned a value to downtime you know how much is it gonna cost you to be down and I don't like to go into customers and hit them with a lot of FUD you know fear uncertainty and doubt and but you you know it should a good business should value how much downtime or loss of data will cost the business and then use that to determine what they need to spend on on dr in order to make sure that that doesn't happen well you're suggesting so and and having had those conversations with many CIOs in the past it used to be email was mission-critical and it still is in many ways but of course the vast majority people have outsourced their their email to the right or ever Microsoft or whomever at Google and so now it becomes so the answer to that question is what does it cost you when it sounds well it depends what system is down you know if it's my transaction system and I'm a retailer online well and it's it's this Black Friday I'm losing a lot of money right and so do people have a sense of the cost of downtime or the the value of their data and their applications I I think a lot of times they do not and and it takes some encouragement in order to to help them realize that I think for some it's just so for our retail customers I think it's just so obvious that to them they're they're hyper focused on on on that value so we get just like you know it's it's unfortunate but during hurricane season we have a lot of conversations with folks about about dr because it's top of mind for everybody for our retail customers their hurricane season is you know Black Friday and beyond they want to make sure that they have a solid solution leading in the Black Friday because you know a minute of downtime can mean you know thousands and thousands of dollars worth of lost business and revenue so I think more and more it's becoming a common place for people to put value on it but you still run into folks who haven't okay so and I get it this it's an insurance cell it's somewhat of a fear it's not a fear of missing out it's a fear of losing you know all your data yeah and and so okay so let's let's assume so you guys can help me get through the business case let's assume I I get there um how are people sort of moving forward how fast are they moving forward and how critical is it for their digital transformations so so how fast are people people I think are moving we're having the conversation with more and more folks more and more folks or finding value in disaster recovery and we are helping them through that helping them through that assessment and providing the value I think another big value for the IT for the IT establishment is not just providing a service the best that they can do but getting some buy-in from the business on let's let's agree what what a reasonable recovery time objective is and let's agree understand that yeah I can give you a zero RPO recovery point objective or a near zero a synchronous replication but it's gonna cost X amount of money so that the business is taking some ownership for the quality of the of the disaster recovery solution and the the tightness of the RPO and RTO and you you empower the business to make those decisions by giving them options and I think we help our businesses the customers we work with so it's important I mean maybe it's worthwhile getting a little didactic here but but we're talking about you know RPO zero it means you're essentially you're not losing any data right on a disaster which is very very probably there's no such thing technically as our poz the closest is you know synchronous replication and and that sort of thing so near zero right so so you take you do synchronous replication you know within some physical metro area metro area yeah of course the problem is if you get hit with a major disaster then they both go out so you have to do async yeah yeah frankly just understanding what type of disaster you're asking me to engineer for is it or is it a localized fire in the data center centers away in an earthquake and regional disaster affecting the whole country now right yeah so so understanding what your or is it you know we to this day IT organizations are getting calls from upper management you know if they have a power failure in the building you know okay let's failover to our disaster recovery site and the power is going to be on in an hour or so and you know knowing when to make that decision is is critical as well and not using it too trivially so if you're in a zone where you have a high probability of some kind of disaster that's gonna wipe out both synchronous you know platforms you go asynchronous but then the problem becomes speed of light there's a there's a little bit of you know or it could be a lot it could affect the performance of the application - while you're waiting for that sink that's right yeah so that could be a revenue hit but it could be you know it can you handle fifty five minutes of lost data yeah yeah sure I can probably recreate that about 15 minutes yeah maybe I'll how about an hour how about half a day mm-hmm how about a day now you start to get into the business discussion of really what's the value and now you can architect around those things you can pretty pretty much if you throw money at it you can solve any problem as an architect mostly you absolutely finish that balance of the business case right exactly so so yeah by and by showing in what we'll often do is we'll do the assessment and we'll perform a workshop on various different ways in which we can solve a problem and we can show the client in the business okay well we can do what you asked for it will cost X and that's very expensive but we can do do it this way a little bit differently or combine a couple ways that may increase your RPO a little bit but they're much more affordable you know is that a and they can make a decision based on something you said before Tim resonated with me which was it's not one size fits all which says to me I need the technology to be able to give me the granularity that I can map to the application based on the cost of downtime or the value of the application it right and it sounds like I'm inferring that that type of modern technology exists today absolutely so besides just that there are a number of different ways that applications can be protected you know Active Directory needs to be protected using its native replication Oracle and sequel have their own methods of protection so does so does exchange but virtual workloads certainly you can dial up or down the protection using dr.azz with a product behind it like a like as erto a replication and automation host based replication capability and it you know host based it makes things a bit easier for clients because they can very granularly choose individual VMS without having to house them on a specific volume that's replicated and and have to do all that mapping in the backend it takes a lot of the complexity out of things and you can assign different priorities to those machines so I could be replicating a hundred machines but ten of them are more important I want to make sure that those ten get all the bandwidth they need to keep the lowest possible RPO and certainly there are technologies out there and we are partners with with some providers who can let you dial in what role does HPE play in this whole equation right so so HPE for four Prem the Prem disaster recovery technologies it's it's fantastic because I think I mentioned it earlier you know it used to be we have some we have some very high end workloads residing in primary data centers living on all flash arrays so a nimble or a three-part all flash array those are those are expensive technologies necessary to run the business in in normal circumstances but for dr for a solution that you hope you never need you can replicate to an all flash nimble to a hybrid solution a hybrid nimble in dr thereby saving yourself some money so you know a hybrid flash array and adaptive flash array in dr that is fronted by SSD and ram but costs more like an HDD or a spinning disk array so HP is allowing us to do some things that help help save some money there as well alright Tim thanks very much it was a great conversation and really appreciate your perspectives all right thank you Dave 500 you're welcome ok thank you for watching everybody this is Dave a latte with cube we'll see you next time

from the silicon angle media office in Boston Massachusetts it's the queue now here's your host David on tape hi buddy this is Dave Volante and welcome to this cube conversation I'm here with Dave faithful who is the chief architect at WEEI and we're going to chat about intelligent storage and specifically HPE intelligence story storage Dave good to see you again thanks for coming on alright so HP uses this you know everybody has these cool marketing terms intelligent storage intelligent storage platform it sounds pretty cool what's it all about well HP has it has done a really good job at developing their storage platform to leverage AI and machine learning and deliver some useful analytics and information to their customers and here's know what they're doing they are from a machine learning perspective taking their entire install base of storage devices gathering that information not personal information such as you know what the data is that sits in the storage but more of the performance we understand it's this type of application it's this type of data and here's how it performs across all these different varmints and they're sharing that with their customers to say if you have this type of data on your storage here's the optimal performance settings to be able to to get the most out of your storage in the best performance additionally they're using a I machine learning that that same idea to give customers heads-up on when they might run into trouble either from a break fixed perspective you know for instance you've got some drives that maybe family you've got a controller that's acting up you've got a connectivity issue someplace all the way to you don't have a performance issue yet but trends we see with your data types may deliver some poor performance under these conditions be aware of that so they're giving insight to to their customers by leveraging everything that they're learning across your entire install base which is pretty neat and they're taking that same capability that they have on storage and applying that so there compute environments as well so think about I think about this one from from an HP perspective they're able to give their customers through their info site application the ability to see and discover performance issues and constraints well before it ever happens to avoid customers from having to find that out the hard way so there's a really good example of the application of AI we talked about AI like it's some mysterious thing it's really machine intelligence and machine learning and and I think it's a practical application because it's relatively narrow you're talking about predictive analytics around infrastructure and being able to you know identify potential hotspots taking the humans out of the equation to do some of that stuff that is really not value-add for the business freeing up time to do some other things is that the right way to think about it that's exactly the right way to think about it you're absolutely right with this type of intelligence you don't need to have IT administrators digging through logs to try to figure out where performance problems are after they've already occurred instead you're getting this information before it ever occurs and you're able to head it off at the pass so I liked the nimble acquisition HPE that one things you like about Nimbo you think nimble you think info site one of the other things I like about the acquisition is if I understand it correctly they've they think you pointed this out they drove that technology across its entire portfolio and you think about three power eight PE made the three power acquisition gosh 10 years ago now to 2010 and that was kind of the gold standard for simplicity for high-end storage they had great metadata reports and and now you know nimble you fast forward has a sort of modern version of that with with AI and predictive analytics the fact that HPE has taken that and pushed it across the portfolio and I think even into into compute into servers as well is it's an impressive you know use of a technology sometimes companies buy tech and they just it sits there for years and they don't do anything with it so your thoughts on that yeah no I think it's I think you're absolutely right HPE did it right now they leverage this technology to add additional value to their compute platforms such as their ProLiant brands and their synergy platform so it's the it's it's it's a very smart thing to do and it's a very good use of that technology from the nibble acquisition and you know Minh see where HP E is heading alright with you know predictive analytics across their entire portfolio so it's all about that that insight to information right and be able to head off problems before they occur yet at the same time how do we optimize or you know automatically optimize our environments based on all of this this information which organization has never had you know access to before so WEEI you guys are a trusted partner of your customers you work with large customers they they look to you you're not trying to jam a specific solution down their throat you think about financial advisors you know here's an insurance policy well if if they're getting a Vig on that insurance policy you go oh wait a minute you guys have to be agnostic so my question to you as a sort of the trusted advisors what's the sweet spot for HPE storage where is it's you know best fit okay that's a trick question right no the it really depends on the platform so you know when we talk about nimble and we talked about info site you know there is a marker segment that that fits well in as well as you know the same could be said for 3par for example and and now we're there new releases the primary storage platform you know I think you'll see a lot more adoption but one of the things that all of those platforms have in common is the ability to connect into data center automation and provisioning strategies and so that's where from our perspective from W nice perspective the value that we're adding around customers is how do we architect that that IT service delivery model that's cloud like in nature and what are the platforms that allow us to easily enable those those provisioning models so irrespective of the the the vendor name on the bezel what are you looking for in a storage platform well what we're again what we're looking for is the ability to to do a couple things one so easily integrate into a provisioning model and to automation are they you know are there investments made by the OEM into the API calls that we can now leverage to connect to either public services or to on-prem compute resources and to software-defined networking in other areas that we that we need to connect you when we're kind of creating those mile two mile three automation automations that you know that enable us for vision loss you know the other thing we're looking for of course is availability reliability you know and performance so you know selecting the right storage platform based on the customer need based on cost or the things that you know that go into that but you're absolutely right we're designing architectures at wi based on customer's business needs right based on how well it fits into their environment and how well that they can maintain those you know those cloud like IT service delivery models and once we understood what those business requirements are what the IT requirements are what their relationships with different services might be and their preferences for four different types automations then we work with them to introduce the right storage platform and HP has a nice portfolio of storage platforms that fit into many many different hybrid cloud and hybrid IT environments all right good stuff Dave thanks for taking us through some of your perspectives on HPE of specifically in storage in general appreciate it Thanks all right thank you for watching we'll see you next time this is david ontei with the cue