(light corporate music) >> Welcome back, everyone, to VMware Explore 22. I'm John Furrier, host of theCUBE with Dave Vellante. Our 12th year covering VMware's User Conference, formerly known as VMworld, now rebranded as VMware Explore. Two great cube alumnus coming down the cube. Ricky Cooper, SVP, Worldwide Partner Commercials VMware, great to see you. Thanks for coming on. >> Thank you. >> We just had a great chat- >> Good to see you again. >> With the Discovery and, of course, Joseph George, vice president of Compute Industry Alliances. Great to have you on. Great to see you. >> Great to see you, John. >> So guys this year is very curious in VMware. A lot goin' on, the name change, the event. Big, big move. Bold move. And then they changed the name of the event. Then Broadcom buys them. A lot of speculation, but at the end of the day, this conference kind of, people were wondering what would be the barometer of the event. We're reporting this morning on the keynote analysis. Very good mojo in the keynote. Very transparent about the Broadcom relationship. The expo floor last night was buzzing. >> Mhm. >> I mean, this is not a show that's lookin' like it's going to be, ya' know, going down. >> Yeah. >> This is clearly a wave. We're calling it Super Cloud. Multi-Cloud's their theme. Clearly the cloud's happenin'. We not to date ourselves, but 2013 we were discussing on theCUBE- >> We talked about that. Yeah. Yeah. >> Discover about DevOps infrastructure as code- >> Mhm. >> We're full realization now of that. >> Yep. >> This is where we're at. You guys had a great partnership with VMware and HPE. Talk about where you guys see this coming together because customers are refactoring. They are lookin' at Cloud Native. The whole Broadcom visibility to the VMware customer bases activated them. They're here and they're leaning in. >> Yeah. >> What's going on? >> Yeah. Absolutely. We're seeing a renewed interest now as customers are looking at their entire infrastructure, bottoms up, all the way up the stack, and the notion of a hybrid cloud, where you've got some visibility and control of your data and your infrastructure and your applications, customers want to live in that sort of a cloud environment and so we're seeing a renewed interest. A lot of conversations we're having with customers now, a lot of customers committing to that model where they have applications and workloads running at the Edge, in their data center, and in the public cloud in a lot of cases, but having that mobility, having that control, being able to have security in their own, you know, in their control. There's a lot that you can do there and, obviously, partnering with VMware. We've been partners for so long. >> 20 years about. Yeah. Yeah. >> Yeah. At least 20 years, back when they invented stuff, they were inventing way- >> Yeah. Yeah. Yeah. >> VMware's got a very technical culture, but Ricky, I got to say that, you know, we commented earlier when Raghu was on, the CEO, now CEO, I mean, legendary product. I sent the trajectory to VMware. Everyone knows that. VMware, I can't know whether to tell it was VMware or HP, HP before HPE, coined hybrid- >> Yeah. >> 'Cause you guys were both on. I can't recall, Dave, which company coined it first, but it was either one of you guys. Nobody else was there. >> It was the partnership. >> Yes. I- (cross talking) >> They had a big thing with Pat Gelsinger. Dave, remember when he said, you know, he got in my grill on theCUBE live? But now you see- >> But if you focus on that Multi-Cloud aspect, right? So you've got a situation where our customers are looking at Multi-Cloud and they're looking at it not just as a flash in the pan. This is here for five years, 10 years, 20 years. Okay. So what does that mean then to our partners and to our distributors? You're seeing a whole seed change. You're seeing partners now looking at this. So, look at the OEMs, you know, the ones that have historically been vSphere customers are now saying, they're coming in droves saying, okay, what is the next step? Well, how can I be a Multi-Cloud partner with you? >> Yep. Right. >> How can I look at other aspects that we're driving here together? So, you know, GreenLake is a great example. We keep going back to GreenLake and we are partaking in GreenLake at the moment. The real big thing for us is going to be, right, let's make sure that we've got the agreements in place that support this SaaS and subscription motion going forward and then the sky's the limit for us. >> You're pluggin' that right into GreenLake, right? >> Well, here's why. Here's why. So customers are loving the fact that they can go to a public cloud and they can get an SLA. They come to a, you know, an On-Premise. You've got the hardware, you've got the software, you've got the, you know, the guys on board to maintain this through its life cycle. >> Right. I mean, this is complicated stuff. >> Yeah. >> Now we've got a situation where you can say, hey, we can get an SLA On-Premise. >> Yeah. And I think what you're seeing is it's very analogous to having a financial advisor just manage your portfolio. You're taking care of just submitting money. That's really a lot of what the customers have done with the public cloud, but now, a lot of these customers are getting savvy and they have been working with VMware Technologies and HPE for so long. They've got expertise. They know how they want their workloads architected. Now, we've given them a model where they can leverage the Cloud platform to be able to do this, whether it's On-Premise, The Edge, or in the public cloud, leveraging HPE GreenLake and VMware. >> Is it predominantly or exclusively a managed service or do you find some customers saying, hey, we want to manage ourself? How, what are you seeing is the mix there? >> It is not predominantly managed services right now. We're actually, as we are growing, last time we talked to HPE Discover we talked about a whole bunch of new services that we've added to our catalog. It's growing by leaps and bounds. A lot of folks are definitely interested in the pay as you go, obviously, the financial model, but are now getting exposed to all the other management that can happen. There are managed services capabilities, but actually running it as a service with your systems On-Prem is a phenomenal idea for all these customers and they're opening their eyes to some new ways to service their customers better. >> And another phenomenon we're seeing there is where partners, such as HPA, using other partners for various areas of their services implementation as well. So that's another phenomenon, you know? You're seeing the resale motion now going into a lot more of the services motion. >> It's interesting too, you know, I mean, the digital modernization that's goin' on. The transformation, whatever you want to call it, is complicated. >> Yeah. >> That's clear. One of the things I liked about the keynote today was the concept of cloud chaos. >> Yeah. >> Because we've been saying, you know, quoting Andy Grove at Intel, "Let chaos rain and rain in the chaos." >> Mhm. >> And when you have inflection points, complexity, which is the chaos, needs to be solved and whoever solves it kicks the inflection point, that's up into the right. So- >> Prime idea right here. Yeah. >> So GreenLake is- >> Well, also look at the distribution model and how that's changed. A couple of points on a deal. Now they're saying, "I'll be your aggregator. I'll take the strain and I'll give you scale." You know? "I'll give you VMware Scale for all, you know, for all of the various different partners, et cetera." >> Yeah. So let's break this down because this is, I think, a key point. So complexity is good, but the old model in the Enterprise market was- >> Sure. >> You solve complexity with more complexity. >> Yeah. >> And everybody wins. Oh, yeah! We're locked in! That's not what the market wants. They want some self-service. They want, as a service, they want easy. Developer first security data ops, DevOps, is already in the cycle, so they're going to want simpler. >> Yeah. >> Easier. Faster. >> And this is kind of why I'll say, for the big announcement today here at VMware Explore, around the VMware vSphere Distributed Services Engine, Project Monterey- >> Yeah. >> That we've talked about for so long, HPE and VMware and AMD, with the Pensando DPU, actually work together to engineer a solution for exactly that. The capabilities are fairly straightforward in terms of the technologies, but actually doing the work to do integration, joint engineering, make sure that this is simple and easy and able to be running HPE GreenLake, that's- >> That's invested in Pensando, right? >> We are. >> We're all investors. Yeah. >> What's the benefit of that? What's, that's a great point you made. What's the value to the customer, bottom line? That deep co-engineering, co-partnering, what does it deliver that others don't do? >> Yeah. Well, I think one example would be, you know, a lot of vendors can say we support it. >> Yep. >> That's great. That's actually a really good move, supporting it. It can be resold. That's another great move. I'm not mechanically inclined to where I would go build my own car. I'll go to a dealership and actually buy one that I can press the button and I can start it and I can do what I need to do with my car and that's really what this does is the engineering work that's gone on between our two companies and AMD Pensando, as well as the business work to make that simple and easy, that transaction to work, and then to be able to make it available as a service, is really what made, it's, that's why it's such a winner winner with our- >> But it's also a lower cost out of the box. >> Yep. >> Right. >> So you get in whatever. Let's call it 20%. Okay? But there's, it's nuanced because you're also on a new technology curve- >> Right. >> And you're able to absorb modern apps, like, you know, we use that term as a bromide, but when I say modern apps, I mean data-rich apps, you know, things that are more AI-driven not the conventional, not that people aren't doing, you know, SAP and CRM, they are, but there's a whole slew of new apps that are coming in that, you know, traditional architectures aren't well-suited to handle from a price performance standpoint. This changes that doesn't it? >> Well, you think also of, you know, going to the next stage, which is to go to market between the two organizations that before. At the moment, you know, HPE's running off doing various different things. We were running off to it again, it's that chaos that you're talking about. In cloud chaos, you got to go to market chaos. >> Yeah. >> But by simplifying four or five things, what are we going to do really well together? How do we embed those in GreenLake- >> Mhm. >> And be known in the marketplace for these solutions? Then you get a, you know, an organization that's really behind the go to market. You can help with sales activation the enablement, you know, and then we benefit from the scale of HPE. >> Yeah. >> What are those solutions I mean? Is it just, is it I.S.? Is it, you know, compute storage? >> Yeah. >> Is it, you know, specific, you know, SAP? Is it VDI? What are you seeing out there? >> So right now, for this specific technology, we're educating our customers on what that could be and, at its core, this solution allows customers to take services that normally and traditionally run on the compute system and run on a DPU now with Project Monterey, and this is now allowing customers to think about, okay, where are their use cases. So I'm, rather than going and, say, use it for this, we're allowing our customers to explore and say, okay, here's where it makes sense. Where do I have workloads that are using a lot of compute cycles on services at the compute level that could be somewhere else like networking as a great example, right? And allowing more of those compute cycles to be available. So where there are performance requirements for an application, where there is timely response that's needed for, you know, for results to be able to take action on, to be able to get insight from data really quick, those are places where we're starting to see those services moving onto something like a DPU and that's where this makes a whole lot more sense. >> Okay. So, to get this right, you got the hybrid cloud, right? >> [Ricky And Joseph] Yes. >> You got GreenLake and you got the distributed engine. What's that called the- >> For, it's HPE ProLiant- >> ProLiant with- >> The VMware- >> With vSphere. >> That's the compute- >> Distributed. >> Okay. So does the customer, how do you guys implement that with the customer? All three at the same time or they mix and match? What's that? How does that work? >> All three of those components. Yeah. So the beauty of the HP ProLiant with VMware vSphere-distributed services engine- >> Mhm. >> Also known as Project Monterey for those that are keeping notes at home- >> Mhm. >> It's, again, already pre-engineered. So we've already worked through all the mechanics of how you would have to do this. So it's not something you have to go figure out how you build, get deployment, you know, work through those details. That's already done. It is available through HPE GreenLake. So you can go and actually get it as a service in partnership with our customer, our friends here at VMware, and because, if you're familiar and comfortable with all the things that HP ProLiant has done from a security perspective, from a reliability perspective, trusted supply chain, all those sorts of things, you're getting all of that with this particular (indistinct). >> Sumit Dhawan had a great quote on theCUBE just an hour or so ago. He said you have to be early to be first. >> Yeah. (laughing) >> I love that quote. Okay. So you were- >> I fought the urge. >> You were first. You were probably a little early, but do you have a lead? I know you're going to say yes, okay. Let's just- >> Okay. >> Let's just assume that. >> Okay. Yeah. >> Relative to the competition, how do you know? How do you determine that? >> If we have a lead or not? >> Yeah. If you lead. If you're the best. >> We go to the source of the truth which is our customers. >> And what do they tell you? What do you look at and say, okay, now, I mean, when you have that honest conversation and say, okay, we are, we're first, we're early. We're keeping our lead. What are the things that you- >> I'll say it this way. I'll say it this way. We've been in a lot of businesses where there, where we do compete head-to-head in a lot of places. >> Mhm. >> And we know how that sales process normally works. We're seeing a different motion from our customers. When we talk about HPE GreenLake, there's not a lot of back and forth on, okay, well, let me go shop around. It is HP Green. Let's talk about how we actually build this solution. >> And I can tell you, from a VMware perspective, our customers are asking us for this the other way around. So that's a great sign is that, hey, we need to see this partnership come together in GreenLake. >> Yeah. >> It's the old adage that Amazon used to coin and Andy Jassy, you know, they do the undifferentiated heavy lifting. >> [Ricky And Joseph] Yeah. >> A lot of that's now Cloud operations. >> Mhm. >> Underneath it is infrastructure's code to the developer. >> That's right. >> That's at scale. >> That's right. >> And so you got a lot of heavy lifting being done with GreenLake- >> Right. >> Which is why there's no objections probably. >> Right. >> What's the choice? What are you going to shop? >> Yeah. >> There's nothing to shop around. >> Yeah, exactly. And then we've got, you know, that is really icing on the cake that we've, you know, that we've been building for quite some time and there is an understanding in the market that what we do with our infrastructure is hardened from a reliability and quality perspective. Like, times are tough right now. Supply chain issues, all that stuff. We've talked, all talked about it, but at HPE, we don't skimp on quality. We're going to spend the dollars and time on making sure we got reliability and security built in. It's really important to us. >> We had a great use case. The storage team, they were provisioning with containers. >> Yes. >> Storage is a service instantly we're seeing with you guys with VMware. Your customers' bringing in a lot of that into the mix as well. I got to ask 'cause every event we talk about AI and machine learning- >> Mhm. >> Automation and DevOps are now infiltrating in with the CICD pipeline. Security and data become a big conversation. >> [Ricky And Joseph] Agreed. >> Okay. So how do you guys look at that? Okay. You sold me on Green. Like, I've been a big fan from day one. Now, it's got maturity on it. I know it's going to get a lot more headroom to do. There's still a lot of work to do, but directionally it's pretty accurate, you know? It's going to be a success. There's still concern about security, the data layer. That's agnostic of environment, private cloud, hybrid, public, and Edge. So that's important and security- >> Great. >> Has got a huge service area. >> Yeah. >> These are on working progress. >> Yeah. Yeah. >> How do you guys view those? >> I think you've just hit the net on the head. I mean, I was in the press and journalist meetings yesterday and our answer was exactly the same. There is still so much work that can be done here and, you know, I don't think anybody is really emerging as a true leader. It's just a continuation of, you know, tryin' to get that right because it is what is the most important thing to our customers. >> Right. >> And the industry is really sort of catching up to that. >> And, you know, when you start talking about privacy and when you, it's not just about company information. It's about individuals' information. It's about, you know, information that, if exposed, actually could have real impact on people. >> Mhm. >> So it's more than just an I.T. problem. It is actually, and from HPE's perspective, security starts from when we're picking our suppliers for our components. Like, there are processes that we put into our entire trusted supply chain from the factory on the way up. I liken it to my golf swing. My golf swing. I slice right like you wouldn't believe. (John laughing) But when I go to the golf pros, they start me back at the mechanics, the foundational pieces. Here's where the problems are and start workin' on that. So my view is, our view is, if your infrastructure is not secure, you're goin' to have troubles with security as you go further up. >> Stay in the sandbox. >> Yeah. >> Yeah. So to speak, you know, they're driving range on the golf analogy there. I love that. Talk about supply chain security real quick because you mentioned supply chain on the hardware side. You're seeing a lot of open source and supply chain in software, trusted software. >> Yep. >> How does GreenLake look at that? How do you guys view that piece of it? That's an important part. >> Yeah. Security is one of the key pillars that we're actually driving as a company right now. As I said, it's important to our customers as they're making purchasing decisions and we're looking at it from the infrastructure all the way up to the actual service itself and that's the beauty of having something like HPE GreenLake. We don't have to pick, is the infrastructure or the middle where, or the top of stack application- >> It's (indistinct), right? >> It's all of it. >> Yeah. >> It's all of it. That matters. >> Quick question on the ecosystem posture. So- >> Sure. >> I remember when HP was, you know, one company and then the GSIs were a little weird with HP because of EDS, you know? You had data protector so we weren't really chatting up Veeam at the time, right? And as soon as the split happened, ecosystem exploded. Now you have a situation where you, Broadcom, is acquiring VMware. You guys, big Broadcom customer. Has your attitude changed or has it not because, oh, we meet with the customers already. Well, you've always said that, but have you have leaned in more? I mean, culturally, is HPE now saying, hmm, now we have some real opportunities to partner in new ways that we don't have to sleep with one eye open, maybe. (John laughing) >> So first of all, VMware and HPE, we've got a variety of different partners. We always have. >> Mhm. >> Well before any Broadcom announcement came along. >> Yeah, sure. >> We've been working with a variety of partners. >> And that hasn't changed. >> And that hasn't changed. And, if your question is, has our posture toward VMware changed at all, the answer's absolutely not. We believe in what VMware is doing. We believe in what our customers are doing with VMware and we're going to continue to work with VMware and partner with the (indistinct). >> And of course, you know, we had to spin out ourselves in November of last year, which I worked on, you know, the whole Dell thing. >> Yeah. We still had the same chairman. >> Yeah. There- (Dave chuckling) >> Yeah, but since then, I think what's really become very apparent and not, it's not just with HPE, but with many of our partners, many of the OEM partners, the opportunity in front of us is vast and we need to rely on each other to help us as, you know, solve the customer problems that are out there. So there's a willingness to overlook some things that, in the past, may have been, you know, barriers. >> But it's important to note also that it's not that we have not had history- >> Yeah. >> Right? Over, we've got over 200,000 customers join- >> Hundreds of millions of dollars of business- >> 100,000, over 10,000, or 100,000 channel partners that we all have in common. >> Yeah. Yeah. >> Yep. >> There's numerous- >> And independent of the whole Broadcom overhang there. >> Yeah. >> There's the ecosystem floor. >> Yeah. >> The expo floor. >> Right. >> I mean, it's vibrant. I mean, there's clearly a wave coming, Ricky. We talked about this briefly at HPE Discover. I want to get an update from your perspectives, both of you, if you don't mind weighing in on this. Clearly, the wave, we're calling it the Super Cloud, 'cause it's not just Multi-Cloud. It's completely different looking successes- >> Smart Cloud. >> It's not just vendors. It's also the customers turning into clouds themselves. You look at Goldman Sachs and- >> Yep. >> You know, I think every vertical will have its own power law of Cloud players in the future. We believe that to be true. We're still testing that assumption, but it's trending in when you got OPEX- >> [Ricky And Joseph] Right. >> Has to go to in-fund statement- >> Yeah. >> CapEx goes too. Thanks for the Cloud. All that's good, but there's a wave coming- >> Yeah. >> And we're trying to identify it. What do you guys see as this wave 'cause beyond Multi-Cloud and the obvious nature of that will end up happening as a state and what happens beyond that interoperability piece, that's a whole other story, and that's what everyone's fighting for, but everyone out in that ecosystem, it's a big wave coming. They've got their surfboards. They're ready to go. So what do you guys see? What is the next wave that everyone's jacked up about here? >> Well, I think that the Multi-Cloud is obviously at the epicenter. You know, if you look at the results that are coming in, a lot of our customers, this is what's leading the discussion and now we're in a position where, you know, we've brought many companies over the last few years. They're starting to come to fruition. They're starting to play a role in, you know, how we're moving forward. >> Yeah. >> Some of those are a bit more applicable to the commercial space. We're finding commercial customers that never bought from us before. Never. Hundreds and hundreds are coming through our partner networks every single quarter, you know? So brand new to VMware. The trick then is how do you nurture them? How do you encourage them? >> So new logos are comin' in. >> New logos are coming in all the time, all the time, from, you know, from across the ecosystem. It's not just the OEMs. It's all the way back- >> So the ecosystem's back of VMware. >> Unbelievably. So what are we doing to help that? There's two big things that we've announced in the recent weeks is that Partner Connect 2.0. When I talked to you about Multi-Cloud and what the (indistinct), you know, the customers are doing, you see that trend. Four, five different separate clouds that we've got here. The next piece is that they're changing their business models with the partners. Their services is becoming more and more apparent, et cetera, you know? And the use of other partners to do other services, deployment, or this stuff is becoming prevalent. Then you've got the distributors that I talked about with their, you know, their, then you route to market, then you route to business. So how do you encapsulate all of that and ensure your rewarding partners on all aspects of that? Whether it's deployment, whether it's test and depth, it's a points-based system we've put in place now- >> It's a big pie that's developing. The market's getting bigger. >> It's getting so much bigger. And then you help- >> I know you agree, obviously, with that. >> Yeah. Absolutely. In fact, I think for a long time we were asking the question of, is it going to be there or is it going to be here? Which was the wrong question. (indistinct cross talking) Now it's everything. >> Yeah. >> And what I think that, what we're seeing in the ecosystem, is that people are finding the spots that, where they're going to play. Am I going to be on the Edge? >> Yeah. >> Am I going to be on Analytics Play? Am I going to be, you know, Cloud Transition Play? There's a lot of players are now emerging and saying, we're- >> Yeah. >> We're, we now have a place, a part to play. And having that industry view not just of, you know, a commercial customer at that level, but the two of us are lookin' at Teleco, are looking at financial services, at healthcare, at manufacturing. How do these new ecosystem players fit into the- >> (indistinct) lifting. Everyone can see their position there. >> Right. >> We're now being asked for simplicity and talk to me about partner profitability. >> Yes. >> How do I know where to focus my efforts? Am I spread too thin? And, you know, that's, and my advice that the partner ecosystem out there is, hey, let's pick out spots together. Let's really go to, and then strategic solutions that we were talking about is a good example of that. >> Yeah. >> Sounds like composability to me, but not to go back- (laughing) Guys, thanks for comin' on. I think there's a big market there. I think the fog is lifted. People seeing their spot. There's value there. Value creation equals reward. >> Yeah. >> Simplicity. Ease of use. This is the new normal. Great job. Thanks for coming on and sharing. (cross talking) Okay. Back to live coverage after this short break with more day one coverage here from the blue set here in Moscone. (light corporate music)

(upbeat music) >> Welcome back to San Francisco, "theCUBE" is live, our day two coverage of VMware Explore 2022 continues. Lisa Martin with Dave Nicholson. Dave and I are pleased to welcome Jason Collier, principal member of technical staff at AMD to the program. Jason, it's great to have you. >> Thank you, it's great to be here. >> So what's going on at AMD? I hear you have some juicy stuff to talk about. >> Oh, we've got a ton of juicy stuff to talk about. Clearly the Project Monterey announcement was big for us, so we've got that to talk about. Another thing that I really wanted to talk about was a tool that we created and we call it, it's the VMware Architecture Migration Tool, call it VAMT for short. It's a tool that we created and we worked together with VMware and some of their professional services crew to actually develop this tool. And it is also an open source based tool. And really the primary purpose is to easily enable you to move from one CPU architecture to another CPU architecture, and do that in a cold migration fashion. >> So we're probably not talking about CPUs from Tandy, Radio Shack systems, likely this would be what we might refer to as other X86 systems. >> Other X86 systems is a good way to refer to it. >> So it's interesting timing for the development and the release of a tool like this, because in this sort of X86 universe, there are players who have been delayed in terms of delivering their next gen stuff. My understanding is AMD has been public with the idea that they're on track for by the end of the year, Genoa, next gen architecture. So can you imagine a situation where someone has an existing set of infrastructure and they're like, hey, you know what I want to get on board, the AMD train, is this something they can use from the VMware environment? >> Absolutely, and when you think about- >> Tell us exactly what that would look like, walk us through 100 servers, VMware, 1000 VMs, just to make the math easy. What do you do? How does it work? >> So one, there's several things that the tool can do, we actually went through, the design process was quite extensive on this. And we went through all of the planning phases that you need to go through to do these VM migrations. Now this has to be a cold migration, it's not a live migration. You can't do that between the CPU architectures. But what we do is you create a list of all of the virtual machines that you want to migrate. So we take this CSV file, we import this CSV file, and we ask for things like, okay, what's the name? Where do you want to migrate it to? So from one cluster to another, what do you want to migrate it to? What are the networks that you want to move it to? And then the storage platform. So we can move storage, it could either be shared storage, or we could move say from VSAN to VSAN, however you want to set it up. So it will do those storage migrations as well. And then what happens is it's actually going to go through, it's going to shut down the VM, it's going to take a snapshot, it is going to then basically move the compute and/or storage resources over. And once it does that, it's going to power 'em back up. And it's going to check, we've got some validation tools, where it's going to make sure VM Tools comes back up where everything is copacetic, it didn't blue screen or anything like that. And once it comes back up, then everything's good, it moves onto the next one. Now a couple of things that we've got feature wise, we built into it. You can parallelize these tasks. So you can say, how many of these machines do you want to do at any given time? So it could be, say 10 machines, 50 machines, 100 machines at a time, that you want to go through and do this move. Now, if it did blue screen, it will actually roll it back to that snapshot on the origin cluster. So that there is some protection on that. A couple other things that are actually in there are things like audit tracking. So we do full audit logging on this stuff, we take a snapshot, there's basically kind of an audit trail of what happens. There's also full logging, SYS logging, and then also we'll do email reporting. So you can say, run this and then shoot me a report when this is over. Now, one other cool thing is you can also actually define a change window. So I don't want to do this in the middle of the afternoon on a Tuesday. So I want to do this later at night, over the weekend, you can actually just queue this up, set it, schedule it, it'll run. You can also define how long you want that change window to be. And what it'll do, it'll do as many as it can, then it'll effectively stop, finish up, clean up the tasks and then send you a report on what all was successfully moved. >> Okay, I'm going to go down the rabbit hole a little bit on this, 'cause I think it's important. And if I say something incorrect, you correct me. >> No problem. >> In terms of my technical understanding. >> I got you. >> So you've got a VM, essentially a virtual machine typically will consist of an entire operating system within that virtual machine. So there's a construct that containerizes, if you will, the operating system, what is the difference, where is the difference in the instruction set? Where does it lie? Is it in the OS' interaction with the CPU or is it between the construct that is the sort of wrapper around the VM that is the difference? >> It's really primarily the OS, right? And we've not really had too many issues doing this and most of the time, what is going to happen, that OS is going to boot up, it's going to recognize the architecture that it's on, it's going to see the underlying architecture, and boot up. All the major operating systems that we test worked fine. I mean, typically they're going to work on all the X86 platforms. But there might be instruction sets that are kind of enabled in one architecture that may not be in another architecture. >> And you're looking for that during this process. >> Well usually the OS itself is going to kind of detect that. So if it pops up, the one thing that is kind of a caution that you need to look for. If you've got an application that's explicitly using an instruction set that's on one CPU vendor and not the other CPU vendor. That's the one thing where you're probably going to see some application differences. That said, it'll probably be compatible, but you may not get that instruction set advantage in it. >> But this tool remediates against that. >> Yeah, and what we do, we're actually using VM Tools itself to go through and validate a lot of those components. So we'll look and make sure VM Tools is enabled in the first place, on the source system. And then when it gets to the destination system, we also look at VM Tools to see what is and what is not enabled. >> Okay, I'm going to put you on the spot here. What's the zinger, where doesn't it work? You already said cold, we understand, you can schedule for cold migrations, that's not a zinger. What's the zinger, where doesn't it work? >> It doesn't work like, live migrations just don't work. >> No live, okay, okay, no live. What about something else? What's the oh, you've got that version, you've got that version of X86 architecture, it-won't work, anything? >> A majority of those cases work, where it would fail, where it's going to kick back and say, hey, VM Tools is not installed. So where you would see this is if you're running a virtual appliance from some vendor, like insert vendor here that say, got a firewall, or got something like that, and they don't have VM Tools enabled. It's going to fail it out of the gate, and say, hey, VM Tools is not on this, you might want to manually do it. >> But you can figure out how to fix that? >> You can figure out how to do that. You can also, and there's a flag in there, so in kind of the options that you give it, you say, ignore VM Tools, don't care, move it anyway. So if you've got less, some VMs that are in there, but they're not a priority VM, then it's going to migrate just fine. >> Got It. >> Can you elaborate a little bit on the joint development work that AMD and VMware are doing together and the value in it for customers? >> Yeah, so it's one of those things we worked with VMware to basically produce this open source tool. So we did a lot of the core component and design and we actually engaged VMware Professional Services. And a big shout out to Austin Browder. He helped us a ton in this project specifically. And we basically worked, we created this, kind of co-designed, what it was going to look like. And then jointly worked together on the coding, of pulling this thing together. And then after that, and this is actually posted up on VMware's public repos now in GitHub. So you can go to GitHub, you can go to the VMware samples code, and you can download this thing that we've created. And it's really built to help ease migrations from one architecture to another. So if you're looking for a big data center move and you got a bunch of VMs to move. I mean, even if it's same architecture to same architecture, it's definitely going to ease the pain of going through and doing a migration of, it's one thing when you're doing 10 machines, but when you're doing 10,000 virtual machines, that's a different story. It gets to be quite operationally inefficient. >> I lose track after three. >> Yeah. >> So I'm good for three, not four. >> I was going to ask you what your target market segment is here. Expand on that a little bit and talk to me about who you're working with and those organizations. >> So really this is targeted toward organizations that have large deployments in enterprise, but also I think this is a big play with channel partners as well. So folks out there in the channel that are doing these migrations and they do a lot of these, when you're thinking about the small and mid-size organizations, it's a great fit for that. Especially if they're kind of doing that upgrade, the lift and shift upgrade, from here's where you've been five to seven years on an architecture and you want to move to a new architecture. This is really going to help. And this is not a point and click GUI kind of thing. It's command line driven, it's using PowerShell, we're using PowerCLI to do the majority of this work. And for channel partners, this is an excellent opportunity to put the value and the value add and VAR, And there's a lot of opportunity for, I think, channel partners to really go and take this. And once again, being open source. We expect this to be extensible, we want the community to contribute and put back into this to basically help grow it and make it a more useful tool for doing these cold migrations between CPU architectures. >> Have you seen any in the last couple of years of dynamics, obviously across the world, any industries in particular that are really leading edge for what you guys are doing? >> Yeah, that's really, really interesting. I mean, we've seen it, it's honestly been a very horizontal problem, pretty much across all vertical markets. I mean, we've seen it in financial services, we've seen it in, honestly, pretty much across the board. Manufacturing, financial services, healthcare, we have seen kind of a strong interest in that. And then also we we've actually taken this and presented this to some of our channel partners as well. And there's been a lot of interest in it. I think we presented it to about 30 different channel partners, a couple of weeks back about this. And I got contact from 30 different channel partners that said they're interested in basically helping us work on it. >> Tagging on to Lisa's question, do you have visibility into the AMD thought process around the timing of your next gen release versus others that are competitors in the marketplace? How you might leverage that in terms of programs where partners are going out and saying, hey, perfect time, you need a refresh, perfect time to look at AMD, if you haven't looked at them recently. Do you have any insight into that in what's going on? I know you're focused on this area. But what are your thoughts on, well, what's the buzz? What's the buzz inside AMD on that? >> Well, when you look overall, if you look at the Gartner Hype Cycle, when VMware was being broadly adopted, when VMware was being broadly adopted, I'm going to be blunt, and I'm going to be honest right here, AMD didn't have a horse in the race. And the majority of those VMware deployments we see are not running on AMD. Now that said, there's an extreme interest in the fact that we've got these very cored in systems that are now coming up on, now you're at that five to seven year refresh window of pulling in new hardware. And we have extremely attractive hardware when it comes to running virtualized workloads. The test cluster that I'm running at home, I've got that five to seven year old gear, and I've got some of the, even just the Milan systems that we've got. And I've got three nodes of another architecture going onto AMD. And when I got these three nodes completely maxed to the number of VMs that I can run on 'em, I'm at a quarter of the capacity of what I'm putting on the new stuff. So what you get is, I mean, we worked the numbers, and it's definitely, it's like a 30% decrease in the amount of resources that you need. >> That's a compelling number. >> It's a compelling number. >> 5%, 10%, nobody's going to do anything for that. You talk 30%. >> 30%. It's meaningful, it's meaningful. Now you you're out of Austin, right? >> Yes. >> So first thing I thought of when you talk about running clusters in your home is the cost of electricity, but you're okay. >> I'm okay. >> You don't live here, you don't live here, you don't need to worry about that. >> I'm okay. >> Do you have a favorite customer example that you think really articulates the value of AMD when you're in customer conversations and they go, why AMD and you hit back with this? >> Yeah. Actually it's funny because I had a conversation like that last night, kind of random person I met later on in the evening. We were going through this discussion and they were facing exactly this problem. They had that five to seven year infrastructure. It's funny, because the guy was a gamer too, and he's like, man, I've always been a big AMD fan, I love the CPUs all the way since back in basically the Opterons and Athlons right. He's like, I've always loved the AMD systems, loved the graphics cards. And now with what we're doing with Ryzen and all that stuff. He's always been a big AMD fan. He's like, and I'm going through doing my infrastructure refresh. And I told him, I'm just like, well, hey, talk to your VAR and have 'em plug some AMD SKUs in there from the Dells, HPs and Lenovos. And then we've got this tool to basically help make that migration easier on you. And so once we had that discussion and it was great, then he swung by the booth today and I was able to just go over, hey, this is the tool, this is how you use it, here's all the info. Call me if you need any help. >> Yeah, when we were talking earlier, we learned that you were at Scale. So what are you liking about AMD? How does that relate? >> The funny thing is this is actually the first time in my career that I've actually had a job where I didn't work for myself. I've been doing venture backed startups the last 25 years and we've raised couple hundred million dollars worth of investment over the years. And so one, I figured, here I am going to AMD, a larger corporation. I'm just like, am I going to be able to make it a year? And I have been here longer than a year and I absolutely love it. The culture at AMD is amazing. We still have that really, I mean, almost it's like that underdog mentality within the organization. And the team that I'm working with is a phenomenal team. And it's actually, our EVP and our Corp VP, were actually my executive sponsors, we were at a prior company. They were one of my executive sponsors when I was at Scale. And so my now VP boss calls me up and says, hey, I'm putting a band together, are you interested? And I was kind of enjoying a semi-retirement lifestyle. And then I'm just like, man, because it's you, yes, I am interested. And the group that we're in, the work that we're doing, the way that we're really focusing on forward looking things that are affecting the data center, what's going to be the data center like three to five years from now. It's exciting, and I am having a blast, I'm having the time of my life. I absolutely love it. >> Well, that relationship and the trust that you will have with each other, that bleeds into the customer conversations, the partner conversations, the employee conversations, it's all inextricably linked. >> Yes it is. >> And we want to know, you said three to five years out, like what? Like what? Just general futurist stuff, where do you think this is going. >> Well, it's interesting. >> So moon collides with the earth in 2025, we already know that. >> So we dialed this back to the Pensando acquisition. When you look at the Pensando acquisition and you look at basically where data centers are today, but then you look at where basically the big hyperscalers are. You look at an AWS, you look at their architecture, you specifically wrap Nitro around that, that's a very different architecture than what's being run in the data center. And when you look at what Pensando does, that's a lot of starting to bring what these real clouds out there, what these big hyperscalers are running into the grasps of the data center. And so I think you're going to see a fundamental shift. The next 10 years are going to be exciting because the way you look at a data center now, when you think of what CPUs do, what shared storage, how the networking is all set up, it ain't going to look the same. >> Okay, so the competing vision with that, to play devil's advocate, would be DPUs are kind of expensive. Why don't we just use NICs, give 'em some more bandwidth, and use the cheapest stuff. That's the competing vision. >> That could be. >> Or the alternative vision, and I imagine everything else we've experienced in our careers, they will run in parallel paths, fit for function. >> Well, parallel paths always exist, right? Otherwise, 'cause you know how many times you've heard mainframe's dead, tape's dead, spinning disk is dead. None of 'em dead, right? The reality is you get to a point within an industry where it basically goes from instead of a growth curve like that, it goes to a growth curve of like that, it's pretty flat. So from a revenue growth perspective, I don't think you're going to see the revenue growth there. I think you're going to see the revenue growth in DPUs. And when you actually take, they may be expensive now, but you look at what Monterey's doing and you look at the way that those DPUs are getting integrated in at the OEM level. It's going to be a part of it. You're going to order your VxRail and VSAN style boxes, they're going to come with them. It's going to be an integrated component. Because when you start to offload things off the CPU, you've driven your overall utilization up. When you don't have to process NSX on basically the X86, you've just freed up cores and a considerable amount of them. And you've also moved that to where there's a more intelligent place for that pack to be processed right, out here on this edge. 'Cause you know what, that might not need to go into the host bus at all. So you have just alleviated any transfers over a PCI bus, over the PCI lanes, into DRAM, all of these components, when you're like, but all to come with, oh, that bit needs to be on this other machine. So now it's coming in and it's making that decision there. And then you take and integrate that into things like the Aruba Smart Switch, that's running the Pensando technology. So now you got top of rack that is already making those intelligent routing decisions on where packets really need to go. >> Jason, thank you so much for joining us. I know you guys could keep talking. >> No, I was going to say, you're going to have to come back. You're going to have to come back. >> We've just started to peel the layers of the onion, but we really appreciate you coming by the show, talking about what AMD and VMware are doing, what you're enabling customers to achieve. Sounds like there's a lot of tailwind behind you. That's awesome. >> Yeah. >> Great stuff, thank you. >> It's a great time to be at AMD, I can tell you that. >> Oh, that's good to hear, we like it. Well, thank you again for joining us, we appreciate it. For our guest and Dave Nicholson, I'm Lisa Martin. You're watching "theCUBE Live" from San Francisco, VMware Explore 2022. We'll be back with our next guest in just a minute. (upbeat music)

(soft joyful music) >> Welcome back everyone to the live CUBE coverage here in San Francisco for VMware Explore '22. I'm John Furrier with my host Dave Vellante. Three days of wall to wall live coverage. Two sets here at the CUBE, here on the ground floor in Moscone, and we got VMware and HPE back on the CUBE. Paul Turner, VP of products at vSphere and cloud infrastructure at VMware. Great to see you. And Mark Nickerson, Director of Go to Mark for Compute Solutions at Hewlett-Packard Enterprise. Great to see you guys. Thanks for coming on. >> Yeah. >> Thank you for having us. >> So we, we are seeing a lot of traction with GreenLake, congratulations over there at HPE. The customers changing their business model consumption, starting to see that accelerate. You guys have the deep partnership, we've had you guys on earlier yesterday. Talked about the technology partnership. Now, on the business side, where's the action at with the HP and you guys with the customer? Because, now as they go cloud native, third phase of the inflection point, >> Yep. >> Multi-cloud, hybrid-cloud, steady state. Where's the action at? >> So I think the action comes in a couple of places. Um, one, we see increased scrutiny around, kind of not only the cost model and the reasons for moving to GreenLake that we've all talked about there, but it's really the operational efficiencies as well. And, this is an area where the long term partnership with VMware has really been a huge benefit. We've actually done a lot of joint engineering over the years, continuing to do that co-development as we bring products like Project Monterey, or next generations of VCF solutions, to live in a GreenLake environment. That's an area where customers not only see the benefits of GreenLake from a business standpoint, um, on a consumption model, but also around the efficiency operationally as well. >> Paul, I want to, I want to bring up something that we always talk about on the CUBE, which is experience in the enterprise. Usually it's around, you know, technology strategy, making the right product market fit, but HPE and VMware, I mean, have exceptional depth and experience in the enterprise. You guys have a huge customer base, doesn't churn much, steady state there, you got vSphere, killer product, with a new release coming out, HP, unprecedented, great sales force. Everyone knows that you guys have great experience serving customers. And, it seems like now the fog is clearing, we're seeing clear line of sight into value proposition, you know, what it's worth, how do you make money with it, how do partners make money? So, it seems like the puzzle's coming together right now with consumption, self-service, developer focus. It just seems to be clicking. What's your take on all this because... >> Oh, absolutely. >> you got that engine there at VMware. >> Yeah. I think what customers are looking for, customers want that cloud kind of experience, but they want it on their terms. So, the work that we're actually doing with the GreenLake offerings that we've done, we've released, of course, our subscription offerings that go along with that. But, so, customers can now get cloud on their terms. They can get systems services. They know that they've got the confidence that we have integrated those services really well. We look at something like vSphere 8, we just released it, right? Well, immediately, day zero, we come out, we've got trusted integrated servers from HPE, Mark and his team have done a phenomenal job. We make sure that it's not just the vSphere releases but VSAN and we get VSAN ready nodes available. So, the customers get that trusted side of things. And, you know, just think about it. We've... 200,000 joined customers. >> Yeah, that's a lot. >> We've a hundred thousand kind of enabled partners out there. We've an enormous kind of install base of customers. But also, those customers want us to modernize. And, you know, the fact that we can do that with GreenLake, and then of course with our new features, and our new releases. >> Yeah. And it's nice that the products market fits going well on both sides. But can you guys share, both of you share, the cadence of the relationship? I mean, we're talking about vSphere, every two years, a major release. Now since 6, vSphere 6, you guys are doing three months' releases, which is amazing. So you guys got your act together there, doing great. But, you guys, so many joint customers, what's the cadence? As stuff comes out, how do you guys put that together? How tightly integrated? Can you share a quick... insight into that dynamic? >> Yeah, sure. So, I mean Mark can and add to this too, but the teams actually work very closely, where it's every release that we do is jointly qualified. So that's a really, really important thing. But it's more interesting is this... the innovation side of things. Right? If you just think about it, 'cause it's no use to just qualify. That's not that interesting. But, like I said, we've released with vSphere 8 you know... the new enhanced storage architecture. All right? The new, next generation of vSphere. We've got that immediately qualified, ready on HPE equipment. We built out new AI servers, actually with Invidia and with HPE. And, we're able to actually push the extremes of... AI and intelligence... on systems. So that's kind of work. And then, of course, our Project Monterey work. Project Monterey Distributed Services Engine. That's something we're really excited about, because we're not just building a new server anymore, we're actually going to change the way servers are built. Monterey gives us a new platform to build from that we're actually jointly working. >> So double click on that, and then to explain how HPE is taking advantage of it. I mean, obvious you have more diversity of XPU's, you've got isolation, you've got now better security, and confidential computing, all that stuff. Explain that in some detail, and how does HPE take advantage of that? >> Yeah, definitely. So, if you think about vSphere 8, vSphere 8 I can now virtualize anything. I can virtualize your CPU's, your GPU's, and now what we call DPU's, or data processing units. A data processing unit, it's... think of it as we're running, actually, effectively another version of ESX, sitting down on this processor. But, that gives us an ability to run applications, and some of the virtualization services, actually down on that DPU. It's separated away from where you run your application. So, all your applications get to consume all your CPU. It's all available to you. Your DPU is used for that virtualization and virtualization services. And that's what we've done. We've been working with HPE and HPE and Pensando. Maybe you can talk some of the new systems that we've built around this too. >> Yeah. So, I mean, that's one of the... you talked about the cadence and that... back to the cadence question real briefly. Paul hit on it. Yeah, there's a certain element of, "Let's make sure that we're certified, we're qualified, we're there day zero." But, that cadence goes a lot beyond it. And, I think Project Monterey is a great example of where that cadence expands into really understanding the solutioning that goes into what the customer's expecting from us. So, to Paul's point, yeah, we could have just qualified the ESX version to go run on a DPU and put that in the market and said, "Okay, great. Customers, We know that it works." We've actually worked very tightly with VMware to really understand the use case, what the customer needs out of that operating environment, and then provide, in the first instantiation, three very discrete product solutions aimed at different use cases, whether that's a more robust use case for customers who are looking at data intensive, analytic intensive, environments, other customers might be looking at VDI or even edge applications. And so, we've worked really closely with VMware to engineer solutions specific to those use cases, not just to a qualification of an operating environment, not just a qualification of certain software stack, but really into an understanding of the use case, the customer solution, and how we take that to market with a very distinct point of view alongside our partners. >> And you can configure the processors based on that workload. Is that right? And match the workload characteristics with the infrastructure is that what I'm getting? >> You do, and actually, well, you've got the same flexibility that we've actually built in why you love virtualization, why people love it, right? You've got the ability to kind of bring harness hardware towards your application needs in a very dynamic way. Right? So if you even think about what we built in vSphere 8 from an AI point of view, we're able to scale. We built the ability to actually take network device cards, and GPU cards, you're to able to build those into a kind of composed device. And, you're able to provision those as you're provisioning out VM's. And, the cool thing about that, is you want to be able to get extreme IO performance when you're doing deep learning applications, and you can now do that, and you can do it very dynamically, as part of the provisioning. So, that's the kind of stuff. You've got to really think, like, what's the use case? What's the applications? How do we build it? And, for the DPU side of things, yes, we've looked at how do we take some of our security services, some of our networking services, and we push those services down onto the SmartNIC. It frees up processors. I think the most interesting thing, that you probably saw on the keynote, was we did benchmarks with Reddit databases. We were seeing 20 plus, I'm sure the exact number, I think it was 27%, I have to get exact number, but a 27% latency improvement, to me... I came from the database background, latency's everything. Latency's king. It's not just... >> Well it's... it's number one conversation. >> I mean, we talk about multi-cloud, and as you start getting into hybrid. >> Right. >> Latency, data movement, efficiency, I mean, this is all in the workload mindset that the workhorses that you guys have been working at HPE with the compute, vSphere, this is heart center of the discussion. I mean, it is under the hood, and we're talking about the engine here, right? >> Sure. >> And people care about this stuff, Mark. This is like... Kubernetes only helps this better with containers. I mean, it's all kind of coming together. Where's that developer piece? 'Cause remember, infrastructure is code, what everybody wants. That's the reality. >> Right. Well, I think if you take a look at... at where the Genesis of the desire to have this capability came from, it came directly out of the fact that you take a look at the big cloud providers, and sure, the ability to have a part of that operating environment, separated out of the CPU, free up as much processing as you possibly can, but it was all in this very lockdown proprietary, can't touch it, can't develop on it. The big cloud guys owned it. VMware has come along and said, "Okay, we're going to democratize that. We're going to make this available for the masses. We're opening this up so that developers can optimize workloads, can optimize applications to run in this kind of environment." And so, really it's about bringing that cloud experience, that demand that customers have for that simplicity, that flexibility, that efficiency, and then marrying it with the agility and security of having your on premises or hybrid cloud environment. And VMware is kind of helping with that... >> That's resonating with the customer, I got to imagine. >> Yeah. >> What's the feedback you're hearing? When you talk to customers about that, the like, "Wait a minute, we'd have to like... How long is that going to take? 'Cause that sounds like a one off." >> Yeah. I'll tell you what... >> Everything is a one off now. You could do a one off. It scales. >> What I hear is give me more. We love where we're going in the first instantiation of what we can do with the Distributed Services Engine. We love what we're seeing. How do we do more? How do we drive more workloads in here? How do we get more efficiency? How can we take more of the overhead out of the CPU, free up more cores. And so, it's a tremendously positive response. And then, it's a response that's resonating with, "Love it. Give me more." >> Oh, if you're democratizing, I love that word because it means democratization, but someone's being democratized. Who's... What's... Something when... that means good things are happening, which means someone's not going to be winning out. Who's that? What... >> Well it, it's not necessarily that someone's not winning out. (laughs) What you read, it comes down to... Democratizing means you've got to look at it, making it widely available. It's available to all. And these things... >> No silos. No gatekeepers. Kind of that kind of thing. >> It's a little operationally difficult to use. You've got... Think about the DPU market. It was a divergent market with different vendors going into that market with different kind of operating systems, and that doesn't work. Right? You've got to actually go and virtualize those DPU's. So then, we can actually bring application innovation onto those DPU's. We can actually start using them in smart ways. We did the same thing with GPU's. We made them incredibly easy to use. We virtualized those GPU's, we're able to, you know, you can provision them in a very simple way. And, we did the same thing with Kubernetes. You mentioned about container based applications and modern apps in the one platform now, you can just set a cluster and you can just say, "Hey I want that as a modern apps enabled cluster." And boom. It's done. And, all of the configurations, set up, Kubernetes, it's done for you. >> But the thing that just GreenLake too, the democratization aspect of how that changed the business model unleashes... >> Right. >> ...efficiency and just simplicity. >> Oh yeah, absolutely. >> But the other thing was the 20% savings on the Reddit's benchmark, with no change required at the application level, correct? >> No change at the application level. In the vCenter, you have to set a little flag. >> Okay. You got to tick a box. >> You got to tick a little box... >> So I can live with that. But the point I'm making is that traditionally, we've had... We have an increasing amount of waste to do offloads, and now you're doing them much more efficiently, right? >> Yes. >> Instead of using the traditional x86 way of doing stuff, you're now doing purpose built, applying that to be much more efficient >> Totally agree. And I think it's becoming, it's going to become even more important. Look at, we are... our run times for our applications, We've got to move to a world where we're building completely confidential applications at all time. And that means that they are secured, encrypted, all traffic is encrypted, whether it's storage traffic, whether it's IO traffic, we've got to make sure we've got complete route of trust of the applications. And so, to do all of that is actually a... compute intensive. It just is. And so, I think as we move forward and people build much more complete, confidential, compute secured environments, you're going to be encrypting all traffic all the time. You're going to be doing micro-zoning and firewalling down at the VM level so that you've got the protection. You can take a VM, you can move it up to the cloud, it will inherit all of its policies, will move with it. All of that will take compute capacity. >> Yup. >> The great thing is that the DPU's give us this ability to offload and to use some of that spare compute capacity. >> And isolate so the application chance can't just tunnel in and get access to that >> You guys got so much going on. You can have your own CUBE show, just on the updating, what's going on between the two companies, and then the innovation. We got one minute left. Just quickly, what's the goal in the partnership? What's next? You guys going to be in the field together, doing joint customer work? Is there bigger plans? Is there events out there? What are some of your plans together in the marketplace? >> That's you. >> Yup. So, I think, Paul kind of alluded to it. Talk about the fact that you've got a hundred thousand partners in common. The venn diagram of looking at the HPE channel and the VMware channel, clearly there's an opportunity there to continue to drive a joint, go to market message, through both of our sales organizations, and through our shared channel. We have a 25,000 strong... solution architect... force that we can leverage. So as we get these exciting things to talk about, I mean, you talk about Project Monterey, the Distributed Services Engine. That's big news. There's big news around vSphere 8. And so, having those great things to go talk about with that strong sales team, with that strong channel organization, I think you're going to see a lot stronger partnership between VMware and HPE as we continue to do this joint development and joint selling >> Lots to get enthused about, pretty much there. >> Oh yeah! >> Yeah, I would just add in that we're actually in a very interesting point as well, where Intel's just coming out with Next Rev systems, we're building the next gen of these systems. I think this is a great time for customers to look at that aging infrastructure that they have in place. Now is a time we can look at upgrading it, but when they're moving it, they can move it also to a cloud subscription based model, you know can modernize not just what you have in terms of the capabilities and densify and get much better efficiency, but you can also modernize the way you buy from us and actually move to... >> Real positive change transformation. Checks the boxes there. And put some position for... >> You got it. >> ... cloud native development. >> Absolutely. >> Guys, thanks for coming on the CUBE. Really appreciate you coming out of that busy schedule and coming on and give us the up... But again, we can do a whole show some... all the moving parts and innovation going on with you guys. So thanks for coming on. Appreciate it. Thank you. I'm John Dave Vellante we're back with more live coverage day two, two sets, three days of wall to wall coverage. This is the CUBE at VMware Explorer. We'll be right back.

(bright intro music) >> Welcome back everyone to VMware Explore '22. I'm John Furrier, host of the key with David Lante, our 12th year covering VMware's user conference, formerly known as VM-World now rebranded as VMware Explore. You got two great Cube alumni coming on the Cube. Ricky Cooper, SVP worldwide partner commercial VMware. Great to see you, thanks for coming on. >> Thank you. >> We just had a great chat-- >> Good to see you again. >> At HPE discover. And of course, Joseph George, Vice President of Compute Industry Alliances. Great to have you on. Great to see you. >> Great to see you, John. >> So guys, this year is very curious, VMware, a lot going on. The name change of the event. Big move, Bold move. And then they changed the name of the event. Then Broadcom buys them. A lot of speculation, but at the end of the day, this conference... Kind of people were wondering what would be the barometer of the event. We were reporting this morning on the keynote analysis. Very good mojo in the keynote. Very transparent about the Broadcom relationship. The expo floor last night was buzzing. I mean, this is not a show that's looking like it's going to be, you know, going down. This is clearly a wave. We're calling it super cloud, multi-cloud's their theme. Clearly the cloud's happening. Not to date ourselves, but 2013 we were discussing on the-- >> We talked about that, yeah. >> HPE Discover about DevOps infrastructure as code. We're full realization now of that. This is where we're at. You guys had a great partnership with VMware and HPE. Talk about where you guys see this coming together because the customers are refactoring, they are looking at cloud native, the whole Broadcom visibility to the VMware customer bases activated them. They're here and they're leaning in. What's going on? >> Yeah absolutely, we're seeing a renewed interest now as customers are looking at their entire infrastructure, bottoms up all the way up the stack and the notion of a hybrid cloud, where you've got some visibility and control of your data and your infrastructure and applications. Customers want to live in that sort of a cloud environment. And so we're seeing a renewed interest, a lot of conversations we're having with customers now, a lot of customers committing to that model, where they have applications and workloads running at the edge in their data center and in the public cloud in a lot of cases. But having that mobility, having that control, being able to have security in their own control. There's a lot that you can do there. And obviously partnering with VMware. We've been partners for so long. >> 20 years, at least. >> At least 20 years. Back when they invented stuff. They were inventing way-- >> VMware's got a very technical culture, but Ricky, I got to say that we commented earlier when Ragu was on the CEO now CEO, I mean legendary product guy, set the trajectory to VMware, everyone knows that. I can't know whether it was VMware or HP, HP before HPE coined Hybrid. Cause you guys were both on, I can't recall Dave, which company coined it first, but it was either one of you guys. Nobody else was there. >> It was the partnership. (men chuckle) >> Hybrid Cloud I had a big thing with Pat Gelsinger, Dave. Remember when he said he got in my grill on theCube, live, but now you see. >> You focus on that multi-cloud aspect. So you've got a situation where our customers are looking at multi-cloud and they're looking at it, not just as a flash in the pan. This is here for five years, 10 years, 20 years. Okay. So what does that mean then to our partners and to our distributors, you're seeing a whole seed change. You're seeing partners now looking at this. So look at the OEMs, the ones that have historically been vSphere customers and now saying they're coming in, drove saying, okay, what is the next step? Well, how can I be a multi-cloud partner with you? How can I look at other aspects that we're driving here together? So GreenLake is a great example. We keep going back to GreenLake and we are partaking in GreenLake at the moment. The real big thing for us is going to be right. Let's make sure that we've got the agreements in place that support this Sasson subscription motion going forward. And then the sky's the limit for us. >> You're plugging that right into. >> Well, here's why, here's why, so customers are loving the fact that they can go to a public cloud and they can get an SLA. They come to an on-premise, you've got the hardware, you've got the software, you've got the guys on board to maintain this through its life cycle. I mean, this is complicated stuff. Now we've got a situation where you can say, Hey, we can get an SLA on premise. >> And I think what you're seeing is it's very analogous to having a financial advisor, just manage your portfolio. You're taking care of just submitting money. That's really a lot of what a lot of the customers have done with the public cloud. But now a lot of these customers are getting savvy. They have been working with VMware technologies and HPE for so long. they've got expertise. They know how they want their workloads architected. Now we've given them a model where they can leverage the cloud platform to be able to do this, whether it's on premise, the edge or in the public cloud, leveraging HPE GreenLake and VMware. >> Is it predominantly or exclusively a managed service or do you find some customers saying, hey, we want to manage ourself. What are you seeing is the mix there? >> It is not predominantly managed services right now. We're actually, as we are growing last time we talked at HPE discover. We talked about a whole bunch of new services that we've added to our catalog. It's growing by leaps and bounds. A lot of folks are definitely interested in the pay as you go, obviously the financial model, but are now getting exposed to all the other management that can happen. There are managed services capabilities, but actually running it as a service with your systems on-prem is a phenomenal idea for all these customers. And they're opening their eyes to some new ways to service their customers better. >> And another phenomenon we're seeing there is where partners such as HPA, using other partners for various areas of the services implementation as well. So that's another phenomenon. You're seeing the resale motion now going into a lot more of the services motion. >> It's interesting too. I mean the digital modernization that's going on, the transformation whatever you want to call it, is complicated, that's clear. One of the things I liked about the keynote today was the concept of cloud chaos, because we've been saying quoting Andy Grove, Next Intel, let chaos rain and rain in the chaos. And when you have inflection points, complexity, which is the chaos, needs to be solved and whoever solves it and kicks the inflection point, that's up and to the right. >> So prime idea right here. So. >> GreenLake is, well. >> Also look at the distribution model and how that's changed a couple of points on a deal. Now they're saying I'll be your aggregator. I'll take the strain and I'll give you scale. I'll give you VMware scale for all of the various different partners, et cetera. >> Yeah. So let's break this down because this is, I think a key point. So complexity is good, but the old model in the enterprise market was, you solve complexity with more complexity and everybody wins. Oh yeah, we're locked in. That's not what the market wants. They want self- service, they want as a service, they want easy, developer first security data ops. DevOps is already in the cycle. So they're going to want simpler, easier, faster. >> And this is kind of why I I'll say for the big announcement today here at VMware Explorer around the VMware vSphere distributed services engine, project Monterey that we've talked about for so long, HPE and VMware and AMD with the Pensando DPU actually work together to engineer a solution for exactly that. The capabilities are fairly straightforward in terms of the technologies, but actually doing the work to do integration, joint engineering, make sure that this is simple and easy and able to be running HPE GreenLake. >> We invested in Pensando right, we are investors. >> What's the benefit of that. That's a great point. You made what's the value to the customer bottom line, that deep, co-engineering, co-partnering, what is it deliver that others don't do? >> Yeah. Well, I think one example would be a lot of vendors can say we support it. >> Yep. That's great. That's actually a really good move, supporting it. It can be resold. That's another great move. I'm not mechanically inclined to where I would go build my own car. I'll go to a dealership and actually buy one that I can press the button and I can start it and I can do what I need to do with my car. And that's really what this does is the engineering work that's gone on between our two companies and AMD Pensando as well as the business work to make that simple and easy that transaction to work. And then to be able to make it available as a service is really what made, that's why it's such a winner here... >> But, it's also a lower cost out of the box. Yes. So you get in whatever it's called a 20%. Okay. But there's nuance because you're also on a new technology curve and you're able to absorb modern apps. We use that term as a promo, but when I say modern apps, I mean data, rich apps, things that are more AI driven. Not the conventional, not that people aren't doing, you know, SAP and CRM, they are. But, there's a whole slew of new apps that are coming in that traditional architectures aren't well suited to handle from a price performance standpoint. This changes that doesn't it? >> Well, you think also of going to the next stage, which is the go to market between the two organizations that before at the moment, HPE is running off doing various different things. We were running off to. Again, that chaos that you're talking about in cloud chaos, you got to go to market chaos, but by simplifying four or five things, what are we going to do really well together? How do we embed those in GreenLake and be known in the marketplace for these solutions? Then you get an organization that's really behind the go to market. You can help with sales, activation, the enablement. And then we benefit from the scale of HPE. >> Yeah. What are those solutions, I mean... Is it just, is it IS? Is it compute storage? Is it specific SAP? Is it VDI? What are you seeing out there? >> So right now for this specific technology, we're educating our customers on what that could be. And at its core, this solution allows customers to take services that normally and traditionally run on the compute system and run on a DPU now with project Monterey. And this is now allowing customers to think about where are their use cases. So I'm rather than going and say, use it for this. We're allowing our customers to explore and say, okay, here's where it makes sense. Where do I have workloads that are using a lot of compute cycles on services at the compute level? That could be somewhere else like networking as a great example, and allowing more of those compute cycles to be available. So where there are performance requirements for an application where there are timely response that's needed for results to be able to take action on, to be able to get insight from data really quick. Those are places where we're starting to see the services moving onto something like a DPU. And that's where this makes a whole lot more sense. >> Okay, so to get this right? You got the hybrid cloud, right? You got GreenLake and you got the distributed engine. What's that called? >> It's HPE Proliant Proliant with the VMware, VSphere. >> VSphere. That's the compute distributed. Okay. So does the customer, how do you guys implement that with the customer all three at the same time or they mix and match? How's that work? >> All three of those components. So the beauty of the HP Proliant with VMware vSphere distributed services engine also now is project Monterey for those that are keeping notes at home. Again already pre-engineered so we've already worked through all the mechanics of how you would have to do this. So it's not something you have to go figure out how you build, get deployment, work through those details. That's already done. It is available through HPE GreenLake. So you can go and actually get it as a service in partnership with our customer, our friends here at VMware. And because if you're familiar and comfortable with all the things that HP Proliant has done from a security perspective, from a reliability perspective, trusted supply chain, all those sorts of things, you're getting all of that with this particular solution. >> Sumit Dhawan had a great quote on theCube just a hour or so ago. He said you have to be early to be first. Love that quote. Okay. So you were first, you were probably a little early, but do you have a lead? I know you're going to say yes. Okay. Let's just assume that okay. Relative to the competition, how do you know? How do you determine that? >> If we have a lead or not? >> Yeah, if you lead, if you're the best. >> We go to the source of the truth, which is our customers. >> And what do they tell you? What do you look at and say, okay, now, I mean, when you have that honest conversation and say, okay, we are, we're first, we're early, we're keeping our lead. What are the things that you look at, as indicators? >> I'll say it this way. We've been in a lot of businesses where we do compete head-to-head in a lot of places and we know how that sales process normally works. We're seeing a different motion from our customers. When we talk about HPE GreenLake, there's not a lot of back and forth on, okay, well let me go shop around. It is HP GreenLake, let's talk about how we actually build this solution. >> And I can tell you from a VMware perspective, our customers are asking us for this the other way around. So that's a great sign. Is that, Hey, we need to see this partnership come together in GreenLake. >> Yeah. Okay. So you would concur with that? >> Absolutely. So third party validation. >> From Switzerland. Yeah. >> Bring it with you over here. >> We're talking about this earlier on, I mean, of course with I mentioned earlier on there's some contractual things that you've got to get in place as you are going through this migration into Sasson subscription, et cetera. And so we are working as hard as we can to make sure, Hey, let's really get this contract in place as quickly as possible, it's what the customers are asking us. >> We've been talking about this for years, you know, see containers being so popular. Now, Kubernetes becoming that layer of bringing people to bringing things together. It's the old adage that Amazon used to coin and Andy Jassy, they do the undifferentiated, heavy lifting. A lot of that's now that's now cloud operations. Underneath is infrastructure's code to the developer, right. That's at scale. >> That's right. >> And so you got a lot of heavy lifting being done with GreenLake. Which is why there's no objections probably. >> Right absolutely. >> What's the choice. What do you even shop? >> Yeah. There's nothing to shop around. >> Yeah, exactly. And then we've, that is really icing on the cake that we've, we've been building for quite some time. There is an understanding in the market that what we do with our infrastructure is hardened from a reliability and quality perspective. Times are tough right now, supply chain issues, all that stuff, we've talked about it. But at HPE, we don't skimp on quality. We're going to spend the dollars and time on making sure we got reliability and security built in. It's really important to us. >> We get a great use case, the storage team, they were provisioning with containers. Storage is a service, instantly. We're seeing with you guys with VMware, your customers bringing in a lot of that into the mix as well. I got to ask. Cause every event we talk about AI and machine learning, automation and DevOps are now infiltrating in with the Ci/CD pipeline security and data become a big conversation. >> Agreed. >> Okay. So how do you guys look at that? Okay. You sold me on green. I've been a big fan from day one. Now it's got maturity on it. I know it's going to get a lot more headroom to do there. It's still a lot of work to do, but directionally it's pretty accurate. It's going to be going to be success. There's still concerns about security, the data layer. That's agnostic of environment, private cloud hybrid, public and edge. So that's important and security has got a huge service area. These are a work in progress. How do you guys view those? >> I think you've just hit the nail on the head. I mean, I was in the press and journalist meetings yesterday and our answer was exactly the same. There is still so much work that can be done here. And I don't think anybody is really emerging as a true leader. It's just a continuation of trying to get that right. Because it is what is the most important thing to our customers. And the industry is really sort of catching up to that. >> And when you start talking about privacy and when you... It's not just about company information, it's about individuals information. It's about information that if exposed actually could have real impact on people. So it's more than just an IT problem. It is actually, and from HP's perspective, security starts from when we're picking our suppliers for our components. There are processes that we put into our entire trusted supply chain from the factory on the way up. I liken it to my golf swing, my golf swinging. I slice, right lik you wouldn't believe. But when I go to the golf pros, they start me back at the mechanics, the foundational pieces, here's where the problems are and start working on that. So my view is our view is if your infrastructure is not secure, you're going to have troubles with security as you go further up. >> Stay in the sandbox, so to speak, they're driving range on the golf analogy there. I love that. Talk about supply chain security real quick. Because you mentioned supply chain on the hardware side, you're seeing a lot of open source and supply chain in software trusted software. How does GreenLake look at that? How do you guys view that piece of it? That's an important part. >> Yeah, security is one of the key pillars that we're actually driving as a company right now. As I said, it's important to our customers as they're making purchasing decisions. And we're looking at it from the infrastructure all the way up to the actual service itself. And that's the beauty of having something like HP GreenLake, we don't have to pick is the infrastructure or the middle where, or the top of stack application, we can look at all of it. Yeah. It's all of it. That matters. >> Question on the ecosystem posture, so, I remember when HP was one company and then the GSIs were a little weird with HP because of EDS, you know, had data protector. So we weren't really chatting up Veeam at the time. And as soon as the split happened, ecosystem exploded. Now you have a situation where your Broadcom is acquiring VMware. You guys big Broadcom customer, has your attitude changed or has it not because, oh, we meet where the customers are. You've always said that, but have you have leaned in more? I mean, culturally is HPE, HPE now saying, hmm, now we have some real opportunities to partner in new ways that we don't have to sleep with one eye open, maybe. >> So I would some first of all, VMware and HPE, we've got a variety of different partners, we always have. If well, before any Broadcom announcement came along. We've been working with a variety of partners and that hasn't changed and that hasn't changed. And if your question is, has our posture toward VMware changed that all the answers absolutely not. We believe in what VMware is doing. We believe in what our customers are doing with VMware, and we're going to continue to work with VMware and partner with you. >> And of course we had to spin out ourselves in November of last year, which I worked on the whole Dell, whole Dell piece. >> But, you still had the same chairman. >> But since then, I think what's really become very apparent. And it's not just with HPE, but with many of our partners, many of the OEM partners, the opportunity in front of us is vast. And we need to rely on each other to help us solve the customer problems that are out there. So there's a willingness to overlook some things that in the past may have been barriers. >> But it's important to note also that it's not that we have not had history, right? Over... We've got over 200,000 customers join. >> Hundreds of millions of dollars of business. >> 100,000, over 10,000 or a 100,000 channel partners that we have in common. Numerous , numerous... >> And independent of the whole Broadcom overhang there, there's the ecosystem floor. Yeah, the expo floor. I mean, it's vibrant. I mean, there's clearly a wave coming. Ricky, we talked about this briefly at HPE Discover. I want to get an update from your perspective, both of you, if you don't mind weighing in on this, clearly the wave we calling it super cloud. Cause it's not just, multi-cloud completely different looking successes, >> Smart Cloud. >> It's not just vendors. It's also the customers turning into clouds themselves. You look at Goldman Sachs. I think every vertical will have its own power law of cloud players in the future. We believe that to be true. We're still testing that assumption, but it's trending in when you got OPEX has to go to in fund statement. CapEx goes to thanks for the cloud. All that's good, but there's a wave coming and we're trying to identify it. What do you guys see as this wave cause beyond multi-cloud and the obvious nature of that will end up happening as a state and what happens beyond that interoperability piece? That's a whole nother story and that's what everyone's fighting for. But everyone out in that ecosystem, it's a big wave coming. They got their surfboards. They're ready to go. So what do you guys see? What is the next wave that everyone's jacked up about here? >> Well, I think the multi-cloud is obviously at the epicenter. If you look at the results that are coming in, a lot of our customers, this is what's leading the discussion. And now we're in a position where we've brought many companies over the last few years, they're starting to come to fruition. They're starting to play a role in how we're moving forward. Some of those are a bit more applicable to the commercial space. We're finding commercial customers are never bought from us before never hundreds and hundreds are coming through our partner networks every single quarter. So brand new to VMware, the trick then is how do you nurture them? How do you encourage them? >> So new logos are coming in? >> New logos are coming in all the time, all the time from across the ecosystem. It's not just the OEMs, it's all the way back. >> So the ecosystem's back for VMware. >> Unbelievably. So what are we doing to help that? There's two big things that we've announced in the recent weeks is that partner connect 2.0. When I talk to you about multi-cloud and multicardt the customers are doing, you see that trend. Four, five different separate clouds that we've got here. The next piece is that they're changing their business models with the partners. Their services is becoming more and more apparent, etc. And the use of other partners to do other services deployment or this stuff is becoming prevalent. Then you've got the distributors that I talked about were there. Then you route to market, then you route to business. So how do you encapsulate all of that and ensure your rewarding partners on all aspects of that? Whether it's deployment, whether it's test and debt, it's a points based system we've put in place now. >> It's a big pie. That's developing the market's getting bigger. >> It's getting so much bigger and then help. >> You agree obviously with that. >> Yeah, absolutely, in fact, I think for a long time we were asking the question of, is it going to be there or is it going to be here? Which was the wrong question now it's everything. Yes. And what I think that what we're seeing in the ecosystem is people are finding the spots where they're going play. Am I going to be on the edge? Am I going to be an analytics play? Am I going to be a cloud transition play? A lot of players are now emerging and saying, we now have a place, a part to play. And having that industry view, not just of a commercial customer at that level, but the two of us are looking at Telco, are looking at financial services, at healthcare, at manufacturing. How do these new ecosystem players fit into it? >> ... is lifting, everyone can see their position there. >> We're now being asked for simplicity and talk to me about partner profitability. How do I know where to focus my efforts? Am I've spread too thin? And my advice that a partner ecosystem out there is, Hey, let's pick out spots together. Let's really go to, and then strategic solutions that we were talking about is good example of that. >> Sounds like composability to me, but not to go back guys. Thanks for coming on. I think there's a big market there. I think the fog is lifted, people seeing their spot there's value there. Value creation equals reward. Yeah. Simplicity, ease of use. This is the new normal great job. Thanks for coming on sharing. Okay. Back live coverage after this short break with more day one coverage here from the blue set here in Moscone.

>> From theCUBE studios in Palo Alto in Boston, bringing you data driven insights from theCUBE and ETR. This is Breaking Analysis with Dave Vellante. >> In the words of my colleague CTO David Nicholson, Broadcom buys old cars, not to restore them to their original luster and beauty. Nope. They buy classic cars to extract the platinum that's inside the catalytic converter and monetize that. Broadcom's planned 61 billion acquisition of VMware will mark yet another new era and chapter for the virtualization pioneer, a mere seven months after finally getting spun out as an independent company by Dell. For VMware, this means a dramatically different operating model with financial performance and shareholder value creation as the dominant and perhaps the sole agenda item. For customers, it will mean a more focused portfolio, less aspirational vision pitches, and most certainly higher prices. Hello and welcome to this week's Wikibon CUBE Insights powered by ETR. In this Breaking Analysis, we'll share data, opinions and customer insights about this blockbuster deal and forecast the future of VMware, Broadcom and the broader ecosystem. Let's first look at the key deal points, it's been well covered in the press. But just for the record, $61 billion in a 50/50 cash and stock deal, resulting in a blended price of $138 per share, which is a 44% premium to the unaffected price, i.e. prior to the news breaking. Broadcom will assume 8 billion of VMware debt and promises that the acquisition will be immediately accretive and will generate 8.5 billion in EBITDA by year three. That's more than 4 billion in EBITDA relative to VMware's current performance today. In a classic Broadcom M&A approach, the company promises to dilever debt and maintain investment grade ratings. They will rebrand their software business as VMware, which will now comprise about 50% of revenues. There's a 40 day go shop and importantly, Broadcom promises to continue to return 60% of its free cash flow to shareholders in the form of dividends and buybacks. Okay, with that out of the way, we're going to get to the money slide literally in a moment that Broadcom shared on its investor call. Broadcom has more than 20 business units. It's CEO Hock Tan makes it really easy for his business unit managers to understand. Rule number one, you agreed to an operating plan with targets for revenue, growth, EBITDA, et cetera, hit your numbers consistently and we're good. You'll be very well compensated and life will be wonderful for you and your family. Miss the number, and we're going to have a frank and uncomfortable bottom line discussion. You'll four, perhaps five quarters to turn your business around, if you don't, we'll kill it or sell it if we can. Rule number two, refer to rule number one. Hello, VMware, here's the money slide. I'll interpret the bullet points on the left for clarity. Your fiscal year 2022 EBITDA was 4.7 billion. By year three, it will be 8.5 billion. And we Broadcom have four knobs to turn with you, VMware to help you get there. First knob, if it ain't recurring revenue with rubber stamp renewals, we're going to convert that revenue or kill it. Knob number two, we're going to focus R&D in the most profitable areas of the business. AKA expect the R&D budget to be cut. Number three, we're going to spend less on sales and marketing by focusing on existing customers. We're not going to lose money today and try to make it up many years down the road. And number four, we run Broadcom with 1% GNA. You will too. Any questions? Good. Now, just to give you a little sense of how Broadcom runs its business and how well run a company it is, let's do a little simple comparison with this financial snapshot. All we're doing here is taking the most recent quarterly earnings reports from Broadcom and VMware respectively. We take the quarterly revenue and multiply by four X to get the revenue run rate and then we calculate the ratios off of the most recent quarters revenue. It's worth spending some time on this to get a sense of how profitable the Broadcom business actually is and what the spreadsheet gurus at Broadcom are seeing with respect to the possibilities for VMware. So combined, we're talking about a 40 plus billion dollar company. Broadcom is growing at more than 20% per year. Whereas VMware's latest quarter showed a very disappointing 3% growth. Broadcom is mostly a hardware company, but its gross margin is in the high seventies. As a software company of course VMware has higher gross margins, but FYI, Broadcom's software business, the remains of Symantec and what they purchased as CA has 90% gross margin. But the I popper is operating margin. This is all non gap. So it excludes things like stock based compensation, but Broadcom had 61% operating margin last quarter. This is insanely off the charts compared to VMware's 25%. Oracle's non gap operating margin is 47% and Oracle is an incredibly profitable company. Now the red box is where the cuts are going to take place. Broadcom doesn't spend much on marketing. It doesn't have to. It's SG&A is 3% of revenue versus 18% for VMware and R&D spend is almost certainly going to get cut. The other eye popper is free cash flow as a percentage of revenue at 51% for Broadcom and 29% for VMware. 51%. That's incredible. And that my dear friends is why Broadcom a company with just under 30 billion in revenue has a market cap of 230 billion. Let's dig into the VMware portfolio a bit more and identify the possible areas that will be placed under the microscope by Hock Tan and his managers. The data from ETR's latest survey shows the net score or spending momentum across VMware's portfolio in this chart, net score essentially measures the net percent of customers that are spending more on a specific product or vendor. The yellow bar is the most recent survey and compares the April 22 survey data to April 21 and January of 22. Everything is down in the yellow from January, not surprising given the economic outlook and the change in spending patterns that we've reported. VMware Cloud on AWS remains the product in the ETR survey with the most momentum. It's the only offering in the portfolio with spending momentum above the 40% line, a level that we consider highly elevated. Unified Endpoint Management looks more than respectable, but that business is a rock fight with Microsoft. VMware Cloud is things like VMware Cloud foundation, VCF and VMware's cross cloud offerings. NSX came from the Nicira acquisition. Tanzu is not yet pervasive and one wonders if VMware is making any money there. Server is ESX and vSphere and is the bread and butter. That is where Broadcom is going to focus. It's going to look at VSAN and NSX, which is software probably profitable. And of course the other products and see if the investments are paying off, if they are Broadcom will keep, if they are not, you can bet your socks, they will be sold off or killed. Carbon Black is at the far right. VMware paid $2.1 billion for Carbon Black. And it's the lowest performer on this list in terms of net score or spending momentum. And that doesn't mean it's not profitable. It just doesn't have the momentum you'd like to see, so you can bet that is going to get scrutiny. Remember VMware's growth has been under pressure for the last several years. So it's been buying companies, dozens of them. It bought AirWatch, bought Heptio, Carbon Black, Nicira, SaltStack, Datrium, Versedo, Bitnami, and on and on and on. Many of these were to pick up engineering teams. Some of them were to drive new revenue. Now this is definitely going to be scrutinized by Broadcom. So that helps explain why Michael Dell would sell VMware. And where does VMware go from here? It's got great core product. It's an iconic name. It's got an awesome ecosystem, fantastic distribution channel, but its growth is slowing. It's got limited developer chops in a world that developers and cloud native is all the rage. It's got a far flung R&D agenda going at war with a lot of different places. And it's increasingly fighting this multi front war with cloud companies, companies like Cisco, IBM Red Hat, et cetera. VMware's kind of becoming a heavy lift. It's a perfect acquisition target for Broadcom and why the street loves this deal. And we titled this Breaking Analysis taming the VMware beast because VMware is a beast. It's ubiquitous. It's an epic software platform. EMC couldn't control it. Dell used it as a piggy bank, but really didn't change its operating model. Broadcom 100% will. Now one of the things that we get excited about is the future of systems architectures. We published a breaking analysis about a year ago, talking about AWS's secret weapon with Nitro and it's Annapurna custom Silicon efforts. Remember it acquired Annapurna for a measly $350 million. And we talked about how there's a new architecture and a new price performance curve emerging in the enterprise, driven by AWS and being followed by Microsoft, Google, Alibaba, a trend toward custom Silicon with the arm based Nitro and which is AWS's hypervisor and Nick strategy, enabling processor diversity with things like Graviton and Trainium and other diverse processors, really diversifying away from x86 and how this leads to much faster product cycles, faster tape out, lower costs. And our premise was that everyone in the data center is going to competes, is going to need a Nitro to be competitive long term. And customers are going to gravitate toward the most economically favorable platform. And as we describe the landscape with this chart, we've updated this for this Breaking Analysis and we'll come back to nitro in a moment. This is a two dimensional graphic with net score or spending momentum on the vertical axis and overlap formally known as market share or presence within the survey, pervasiveness that's on the horizontal axis. And we plot various companies and products and we've inserted VMware's net score breakdown. The granularity in those colored bars on the bottom right. Net score is essentially the green minus the red and a couple points on that. VMware in the latest survey has 6% new adoption. That's that lime green. It's interesting. The question Broadcom is going to ask is, how much does it cost you to acquire that 6% new. 32% of VMware customers in the survey are increasing spending, meaning they're increasing spending by 6% or more. That's the forest green. And the question Broadcom will dig into is what percent of that increased spend (chuckles) you're capturing is profitable spend? Whatever isn't profitable is going to be cut. Now that 52% gray area flat spending that is ripe for the Broadcom picking, that is the fat middle, and those customers are locked and loaded for future rent extraction via perpetual renewals and price increases. Only 8% of customers are spending less, that's the pinkish color and only 3% are defecting, that's the bright red. So very, very sticky profile. Perfect for Broadcom. Now the rest of the chart lays out some of the other competitor names and we've plotted many of the VMware products so you can see where they fit. They're all pretty respectable on the vertical axis, that's spending momentum. But what Broadcom wants is that core ESX vSphere base where we've superimposed the Broadcom logo. Broadcom doesn't care so much about spending momentum. It cares about profitability potential and then momentum. AWS and Azure, they're setting the pace in this business, in the upper right corner. Cisco very huge presence in the data center, as does Intel, they're not in the ETR survey, but we've superimposed them. Now, Intel of course, is in a dog fight within Nvidia, the Arm ecosystem, AMD, don't forget China. You see a Google cloud platform is in there. Oracle is also on the chart as well, somewhat lower on the vertical axis, but it doesn't have that spending momentum, but it has a big presence. And it owns a cloud as we've talked about many times and it's highly differentiated. It's got a strategy that allows it to differentiate from the pack. It's very financially driven. It knows how to extract lifetime value. Safra Catz operates in many ways, similar to what we're seeing from Hock Tan and company, different from a portfolio standpoint. Oracle's got the full stack, et cetera. So it's a different strategy. But very, very financially savvy. You could see IBM and IBM Red Hat in the mix and then Dell and HP. I want to come back to that momentarily to talk about where value is flowing. And then we plotted Nutanix, which with Acropolis could suck up some V tax avoidance business. Now notice Symantec and CA, relatively speaking in the ETR survey, they have horrible spending momentum. As we said, Broadcom doesn't care. Hock Tan is not going for growth at the expense of profitability. So we fully expect VMware to come down on the vertical axis over time and go up on the profit scale. Of course, ETR doesn't measure the profitability here. Now back to Nitro, VMware has this thing called Project Monterey. It's essentially their version of Nitro and will serve as their future architecture diversifying off x86 and accommodating alternative processors. And a much more efficient performance, price in energy consumption curve. Now, one of the things that we've advocated for, we said this about Dell and others, including VMware to take a page out of AWS and start developing custom Silicon to better integrate hardware and software and accelerate multi-cloud or what we call supercloud. That layer above the cloud, not just running on individual clouds. So this is all about efficiency and simplicity to own this space. And we've challenged organizations to do that because otherwise we feel like the cloud guys are just going to have consistently better costs, not necessarily price, but better cost structures, but it begs the question. What happens to Project Monterey? Hock Tan and Broadcom, they don't invest in something that is unproven and doesn't throw off free cash flow. If it's not going to pay off for years to come, they're probably not going to invest in it. And yet Project Monterey could help secure VMware's future in not only the data center, but at the edge and compete more effectively with cloud economics. So we think either Project Monterey is toast or the VMware team will knock on the door of one of Broadcom's 20 plus business units and say, guys, what if we work together with you to develop a version of Monterey that we can use and sell to everyone, it'd be the arms dealer to everyone and be competitive with the cloud and other players out there and create the de facto standard for data center performance and supercloud. I mean, it's not outrageously expensive to develop custom Silicon. Tesla is doing it for example. And Broadcom obviously is capable of doing it. It's got good relationships with semiconductor fabs. But I think this is going to be a tough sell to Broadcom, unless VMware can hide this in plain site and make it profitable fast, like AWS most likely has with Nitro and Graviton. Then Project Monterey and our pipe dream of alternatives to Nitro in the data center could happen but if it can't, it's going to be toast. Or maybe Intel or Nvidia will take it over or maybe the Monterey team will spin out a VMware and do a Pensando like deal and demonstrate the viability of this concept and then Broadcom will buy it back in 10 years. Here's a double click on that previous data that we put in tabular form. It's how the data on that previous slide was plotted. I just want to give you the background data here. So net score spending momentum is the sorted on the left. So it's sorted by net score in the left hand chart, that was the y-axis in the previous data set and then shared and or presence in the data set is the right hand chart. In other words, it's sorted on the right hand chart, right hand table. That right most column is shared and you can see it's sorted top to bottom, and that was the x-axis on the previous chart. The point is not many on the left hand side are above the 40% line. VMware Cloud on AWS is, it's expensive, so it's probably profitable and it's probably a keeper. We'll see about the rest of VMware's portfolio. Like what happens to Tanzu for example. On the right, we drew a red line, just arbitrarily at those companies and products with more than a hundred mentions in the survey, everything but Tanzu from VMware makes that cut. Again, this is no indication of profitability here, and that's what's going to matter to Broadcom. Now let's take a moment to address the question of Broadcom as a software company. What the heck do they know about software, right. Well, they're not dumb over there and they know how to run a business, but there is a strategic rationale to this move beyond just doing portfolios and extracting rents and cutting R&D, et cetera, et cetera. Why, for example, isn't Broadcom going after coming back to Dell or HPE, it could pick up for a lot less than VMware, and they got way more revenue than VMware. Well, it's obvious, software's more profitable of course, and Broadcom wants to move up the stack, but there's a trend going on, which Broadcom is very much in touch with. First, it sells to Dell and HPE and Cisco and all the OEM. so it's not going to disrupt that. But this chart shows that the value is flowing away from traditional servers and storage and networking to two places, merchant Silicon, which itself is morphing. Broadcom... We focus on the left hand side of this chart. Broadcom correctly believes that the world is shifting from a CPU centric center of gravity to a connectivity centric world. We've talked about this on theCUBE a lot. You should listen to Broadcom COO Charlie Kawwas speak about this. It's all that supporting infrastructure around the CPU where value is flowing, including of course, alternative GPUs and XPUs, and NPUs et cetera, that are sucking the value out of the traditional x86 architecture, offloading some of the security and networking and storage functions that traditionally have been done in x86 which are part of the waste right now in the data center. This is that shifting dynamic of Moore's law. Moore's law, not keeping pace. It's slowing down. It's slower relative to some of the combinatorial factors. When you add up in all the CPU and GPU and NPU and accelerators, et cetera. So we've talked about this a lot in Breaking Analysis episodes. So the value is shifting left within that middle circle. And it's shifting left within that left circle toward components, other than CPU, many of which Broadcom supplies. And then you go back to the middle, value is shifting from that middle section, that traditional data center up into hyperscale clouds, and then to the right toward infrastructure software to manage all that equipment in the data center and across clouds. And look Broadcom is an arms dealer. They simply sell to everyone, locking up key vectors of the value chain, cutting costs and raising prices. It's a pretty straightforward strategy, but not for the fate of heart. And Broadcom has become pretty good at it. Let's close with the customer feedback. I spoke with ETRs Eric Bradley this morning. He and I both reached out to VMware customers that we know and got their input. And here's a little snapshot of what they said. I'll just read this. Broadcom will be looking to invest in the core and divest of any underperforming assets, right on. It's just what we were saying. This doesn't bode well for future innovation, this is a CTO at a large travel company. Next comment, we're a Carbon Black customer. VMware didn't seem to interfere with Carbon Black, but now that we're concerned about short term disruption to their tech roadmap and long term, are they going to split and be sold off like Symantec was, this is a CISO at a large hospitality organization. Third comment, I got directly from a VMware practitioner, an IT director at a manufacturing firm. This individual said, moving off VMware would be very difficult for us. We have over 500 applications running on VMware, and it's really easy to manage. We're not going to move those into the cloud and we're worried Broadcom will raise prices and just extract rents. Last comment, we'll share as, Broadcom sees the cloud data center and IoT is their next revenue source. The VMware acquisition provides them immediate virtualization capabilities to support a lightweight IoT offering. Big concern for customers is what technology they will invest in and innovate, and which will be stripped off and sold. Interesting. I asked David Floyer to give me a back of napkin estimate for the following question. I said, David, if you're running mission critical applications on VMware, how much would it increase your operating cost moving those applications into the cloud? Or how much would it save? And he said, Dave, VMware's really easy to run. It can run any application pretty much anywhere, and you don't need an army of people to manage it. All your processes are tied to VMware, you're locked and loaded. Move that into the cloud and your operating cost would double by his estimates. Well, there you have it. Broadcom will pinpoint the optimal profit maximization strategy and raise prices to the point where customers say, you know what, we're still better off staying with VMware. And sadly, for many practitioners there aren't a lot of choices. You could move to the cloud and increase your cost for a lot of your applications. You could do it yourself with say Zen or OpenStack. Good luck with that. You could tap Nutanix. That will definitely work for some applications, but are you going to move your entire estate, your application portfolio to Nutanix? It's not likely. So you're going to pay more for VMware and that's the price you're going to pay for two decades of better IT. So our advice is get out ahead of this, do an application portfolio assessment. If you can move apps to the cloud for less, and you haven't yet, do it, start immediately. Definitely give Nutanix a call, but going to have to be selective as to what you actually can move, forget porting to OpenStack, or do it yourself Hypervisor, don't even go there. And start building new cloud native apps where it makes sense and let the VMware stuff go into manage decline. Let certain apps just die through attrition, shift your development resources to innovation in the cloud and build a brick wall around the stable apps with VMware. As Paul Maritz, the former CEO of VMware said, "We are building the software mainframe". Now marketing guys got a hold of that and said, Paul, stop saying that, but it's true. And with Broadcom's help that day we'll soon be here. That's it for today. Thanks to Stephanie Chan who helps research our topics for Breaking Analysis. Alex Myerson does the production and he also manages the Breaking Analysis podcast. Kristen Martin and Cheryl Knight help get the word out on social and thanks to Rob Hof, who was our editor in chief at siliconangle.com. Remember, these episodes are all available as podcast, wherever you listen, just search Breaking Analysis podcast. Check out ETRs website at etr.ai for all the survey action. We publish a full report every week on wikibon.com and siliconangle.com. You can email me directly at david.vellante@siliconangle.com. You can DM me at DVellante or comment on our LinkedIn posts. This is Dave Vellante for theCUBE Insights powered by ETR. Have a great week, stay safe, be well. And we'll see you next time. (upbeat music)

>>Hey, welcome to this continuing coverage of the H P E Aruba. Pensando announcement. I'm lisa martin. Hopefully you've seen by now the announcement from john and Antonio, we're going to get into some technical details. Now I've got two guests joining me. Please welcome Krishna Otopeni, the VP of engineering at Pensando and frank Reich stein, senior Director platform engineering from HP Aruba guys welcome to the program. >>Hi lisa. >>Hi lisa. Thanks for having us. >>Sure. So we're going to, we're going to dig in here. You guys are tasked with bringing these two worlds together, christian. Let's go ahead and start with you talk to me about the announcement why this is so significant and then we'll dig into the technical details. >>Yeah. So as you know, right, Pensando has been in the market for a couple of years right now. Um, and we heard a lot of success with the cloud providers and we're also working with be a million project Montreat. Um, so what we learned in the last couple of years, we're trying to take all the lessons and I was a little bit going to what, what we learned with the crop, your providers. So we took a dsC card, which is a B C, a form factor, the customer takes dsC card inserts into the, into server with various forces and hypervisors. So it's really exciting that the BSE is in production with some of the providers already and some of them were taking to production in this calendar quarter and we also have in connection with that first generation BSC cards a couple of years and some of the biggest banks and storage platform providers. So, so this is kind of a big deal for us because we are starting with what we call a D P U. Uh that Pensando is bailing which is the latest generation of it is called code named Alba which delivers the software in silicon program ability while matching the performance of hardware. So internally the DPU has the tight integration between special purpose processors that consent of what we call mps and a general purpose processor like arm course where we do the management and control software and with tied together with offload engines like encryption and compression. The key takeaway from this platform. Their consent of belt. It's it's programmable at all layers Either by Pensando or our customers whether it's in data plane using P four or control and management plane. All right. So what we learned while developing this platform and taking this production with the public cloud providers, we realize that the platform and architecture is not only very highly scalable with very high performance with respect to, you know, packets per second or stable connections per second or NBA me I ops but it's also adaptable like a very rapid paced. And another key lesson that we learn from our cloud partners is that the new devoPS model operations is as important as functionality. For example, the importance of creating the DPU pipeline the subsequent guarantees or providing Hatch uh first fateful connections so that in some cases the component fails, there is hardware or software customer doesn't have any disruption in his network or storage operations. So we took all the ski lessons that we learned over the last few years. And then we are building a new platform partnering with Aruba team which is very high scale with very high performance at the same time, tied with very good operations um that you know it comes the best of both both platforms from the pew side and from the Aruba side frank they want to add on the Aruba platform side. >>Sure, yeah. So the Aruba networking team has been building network switches for the past 25 years and we've been following all of the trends and evolutions over that time frame. And as we've gone through a few years ago we decided to make an evolution of our operating system to scale it up for the modern needs of the modern world. And this included doing things like designing with a micro services oriented architecture to provide for a high degree of resiliency throughout the product line. And then being able to extend that single network operating system from the core to the edge of the network. As we've been partnering with Pensando, it came very clear that the evolution of the network the next step was this form of a deep, you integrated into that top of rack switch to provide a deeper and richer feature set and what has traditionally been available in your top of rack switch. And so this partnership has enabled us to leapfrog but has been traditional top of rack functionality and add to it. Things that previously were not attainable in that layer of the network >>frank. Continuing on with you. Talk to me about some of the technology requirements and challenges of designing and engineering and delivering the industry's first distributed service switch. What were some of those? >>Sure, sure. So a lot of the challenges around integrating this type of solution come down to how to ensure that you have the highest performance possible and maintaining high speed of performance when you're now introducing an additional pay hop within the network topology inside of the switch, a lot of that came down to integrating the background and skill setting capabilities that come along with osc x that were made it quick for us to enable a new piece of functionality within the architecture and then a lot of credit has to go to the Pensando team for the richness of the feature setting capability set that they have within that DPU product as it stands >>christian, let's go ahead and dig through some of those core features and capabilities that are really going to be benefiting customers. >>Yeah, so basically right, uh taking a little bit of step back, we started with the dsc market from Pensando perspective where we wanted to put gPU in every survey and we obviously have success in enterprise customers and cloud customers that we discussed earlier. But we also learned a few lessons while deploying DSC and enterprise markets in the sense that enterprise markets do not need the performance of every DSC at 200 G full duplex network services for every survey. And also you know what makes historic key is that you know, there are a lot of brownfield service in current enterprise data centers where customers do not want to open up a server to put the DSC in. So we wanted to give a product with the form factor that frank is talking about and technology that's very familiar to every IT department given the Aruba Lois uh in a deployment in data centers. And also as I said earlier, what we lessons that we learned, we came up with this taking this production very deep you software and hardware which is deployed in public clouds. And combined with those features that that have been rapidly evolving uh through multiple Aruba releases into enterprise data centers in a switch form factors. So what we think is by doing this taking the best of both worlds. We're creating a new product category that is not that is for the features and capabilities are not available in the market from any vendor specifically providing state full services at every tour without the complexity of the service redirection because today's data centers if you want to install services. It's a it's a lot of effort operator to bring in those services. This obviously also has a great operational model, great TCO and the functionality that customers that you never see in tar before. For example, in the first release we are providing state full firewall with the visibility at every floor level that goes through the tower which never existed in the market before. >>New product category. That's a big deal christian. Talk to me a little bit about how long you guys have been at this, you were in stealth mode crack that open for us. >>I mean it has been a less than a year but of development that both teams have been doing and we work very closely together and we meet I mean for sure at least more than a week uh you know, more than once the once a week between uh frank's team and you know, and send it to them and there's a coordination between the sales team and the marketing team and the go to market team and then how we sell it and the manufacturing team, there's a lot goes on in building this product. I mean we believe this is the fastest uh tard new generational product that we built because because we could do that because the experience of both the teams trying they want anything more to this one. >>Yeah, I think that that really goes to the point here. The capabilities and maturity of the deep you solution that Pensando was bringing into the solution really allowed for a very fast and seamless integration on top of that Aruba, OsC X and the platform that we built there with automated Api generation and integration with our Aruba fabric composer orchestration layer really created the capability to make things go as fast as possible for this development effort And so to really take a new product and define a new product space within a 12 month time frame has been a really exciting and impressive feat by both teams. >>Very impressive considering the challenges and the dynamics in the market and the global market that we've had frank. How big of a lead do you think you have on incumbents here? >>I think we have a substantial lead on the incumbents here. I think what we're doing is a fundamentally different take on how you do a top of rack switch and the capabilities that we're bringing to bear at the top of rack are fundamentally new and differentiated from what the competition has been thinking about. So I believe we have a substantial lead on the competition. >>Excellent chris to talk to me about what's next? What's the future? I have some secret sources that tell me that john and Antonio are meeting regularly pushing you guys, what does the future hold. >>Yeah. So I mean obviously this is the start of an exciting journey. There's a first platform you're bringing to the market jointly and obviously we like a bunch of form factors without upcoming road map. So additionally I mean the software in silicon performance that with all the services that we deliver a software means that scope and scale of the state will services that we can deliver and evolve over time whether you talk about security or encryption or state flat or load balancing or d does all of the services and then you know hybrid connectivity. So obviously you know there's a lot that we can do with this platform that will be driven by with the partnership with our customers. We also see that you know the market of all where you know all the customers we'll have some customers will have deep us in the service and some customers will use the new platform that we're bringing together. So we won't have all the management start to make sure all of them can be managed uniformly and any time you know you this is a major step for a new category of platform and architecture we're developing jointly with the rubber and I believe this will be a huge opportunity for both the companies and our customers and this is exciting times ahead for us >>and talk to me both of your opinions here where can customers go to find more information, how can they get started frank will go ahead and start with you. >>Yeah you can jump straight to Aruba networks dot com and dig into the feature sets and packages that we have available with the Aruba 10-K product line direct from there. >>Fantastic christian anything to add >>that is correct actually. So we are treating it as one product coming from both the companies. All the documentation is where you know, frank pointed out in Aruba website, we put all the documentation at the same place and we're supporting it as one unified product from both the companies. >>Are you seeing any? We've seen so much change in the last year and a half. Last question. I'm just wondering if if either of the HPV riverside or the pence underside is seeing any industries that might be really prime to take advantage of knowing how many industries all have been affected by the events of the last year and a half christian any thoughts there? >>Yeah, I mean if you look at it right and obviously all of us are working from home and now everything happens, you know, mostly at the edge, right? You know, and we are in that this platform will help us get there where we get security to the edge and we get more visibility and more services to the edge. Right? So I mean that's what you know Pensando is all about and hoping that you know, this is uh this journey that we started with the D. P us, we go with this platform and it will ever all and it will help customers, our customers and our partners leverage all the functionality that, you know, Pensando and the rubber can bring together. >>Well guys, congratulations on an enormous feat accomplished in not just a 12 month time period, but a very challenging 12 month time period. We appreciate you guys breaking down the HP Aruba Pensando announcement and more technical detail. Those can go to learn more information and again, congratulations. >>Thank you. >>Thank you very much lisa >>for my guests. I'm lisa martin. You're watching this HP Aruba Pensando announcement. Thanks for watching. >>Mhm >>mm.

>>mm we are back and with us now is Alan welcome from the 65 oh Group 650 is a market research company and their specialty focus areas are cloud and IOT. They look at growth markets, They also look at the broader communications and information technology industries. Alan has been a leading data center researcher for over a decade and an enterprise class switch designer. So he's got the chops in that in that sense. Alan, welcome to the cubes. Great to see you. >>Great. No thanks so much for having me looking forward to discussing this with you. >>Okay, so let's get right into it. I mean what is your initial reaction to this announcement? The news? What do we need to know about it? >>I think this is an amazing product. We're heading into a whole new class of product here. Something that can address future designs. So if we look at kind of data center switching in the market, we've been looking at market where we created a new class of category about 15 years ago in data center switching. And we're at a point where we need to start looking forward in the market to address new use cases and sort of customer pain points out there. >>So how should we think about this new category? What's your take on why this is necessary. Why now? >>Well, I think again, if we go back in time, about 15 years ago we created data center switching as a category and the reason for that was we had purpose built products to address a unique use case. When we look at now we have a new use case forming whether it's sort of multi cloud Or how we're deploying applications and security things are different and we need a new class of product in order to address that. And if we look at kind of the opportunity here, we're talking about a market and a class of product that's going to do north of $10 billion dollars in just a couple years. So we have a magnitude and sort of a market category that makes sense to kind of be differentiated and unique from the way we've been looking at the markets in the past. How >>should we think about sort of a follow up on this? If I may, how should we think about, you know, the history of whether it's F P G A or a C X. You're seeing a lot of more program ability built into the system on chip these days. How do you see that trend fitting in and is that an important trend that you would note? >>Yeah, absolutely. So if we look at kind of the way the servers evolved, we have F P G A S a six smart nick now we call them Gpus and it's really been to address these pain points via hardware and software out there and to a certain extent the server has been a little bit ahead with that smart nick and now DPU category and this creates a great opportunity for the network to embrace the same sort of technology and accelerate how we're deploying workloads and really sort of solve those customer pain points, right. The human just can't scale relative to what we've been doing in the past. Got >>it. So how do you think customers are gonna react to this used to be a designer of this type of equipment? How and why might a customer adopt this type of solution and maybe what are some of the barriers that they'll need to consider when, when moving to this approach? >>Yeah, I think customers are going to be excited, right? If you look at it again, they can't scale, they have application Creep, they have security creep, they have data creep out there and this class of product allows them to kind of look at the network a little bit differently and maybe build the network kind of on a go forward 10 year basis than sort of in the past out there. And that's why they're going to look at it in terms of deployments hurdles, I'd say not so much out there. Right. The hybrid cloud and enterprise is moving so fast these days, whether it's because we're working from home or just sort of the agility factor that I think they'll be quick to embrace this because it will enable them to move faster and be more agile or just say more cloud like >>so is that really the use case here? It's kind of cloud slash hybrid cloud on prem cloud and then ultimately connecting to the edge. >>It is, yeah, absolutely. So everyone uses a different term for hybrid cloud or co location or things like that. But ultimately this is the part of the market that's growing very rapidly for enterprises as they try to move their applications, their workflows and their data to more hybrid environment out there. And some of that is as simple as just moving the data. And some of that is kind of going into security and sort of questioning how you move that data around and secure it on a forward basis. A lot >>a lot of customers we talked to tell us, look, the security in the cloud is fine. It's just may be somewhat different and we want to have greater flexibility. So we either want to do this on prem or the other big trend that we see. And I wonder if you could talk about this is we see people putting infrastructure into a Coehlo uh to offer to allow themselves to maybe not get locked into a single cloud provider, expand their optionality building their own sort of infrastructure layer, their own sort of internal cloud, if you will. Can you comment on that? >>Yeah. Co location is a very big trend out there. As you said. It enables you to not be locked into your particular cloud provider. It also gives you proximity to all cloud providers, all staffs providers out there. Uh so deploying and polo makes a lot of sense out there and that creates another pool of data or pool of information that the IT managers need to think about in terms of managing out there. >>So what's the sweet spot for this? And thinking in terms of a business cases that consolidating sort of legacy infrastructure simplification, enabling people to transfer skills up up the stack if you will to support their digital transformation. How do you see the business case evolving here? Alan, >>yeah, it really is simplification and that digitization journey that all enterprises are on the human just simply can't scale with the number of applications or the complexity of those applications and as you get more complex, your costs go up. So this is really about simplification, reducing costs and again, kind of building and taking that journey Forward for the next 10 years vs doing things the same way you've been doing it there, which allows you to move up stack. How do you >>see this partnership, HP Ruba Pensando. Do you see it as unique in the business or the ahead of the game in your opinion? How do you sort of handicap that? >>Yeah, it is unique and it is ahead of the game. So there is a first mover advantage going on here, but I think this partnership shows how the data center is going to be different 5, 10 years in the future and we're starting to create purpose built products to address that change. We simply can't build the way we've been building in the past. Again, whether it's the device not scaling or the human not scaling, we need to look at this differently for many, many reasons. >>Awesome. Okay, alan, we got to leave it there really. Thanks for bringing the analyst perspective. We'll give you the last word. If there's any kind of research you've got, that's worth noting or any last thoughts, please bring it home. >>Yeah, we've been tracking this space for over, You know, 15 years personally. Uh, and there's a lot of new research we have in this area, whether it's this class of product data center switching, uh, location types out there, verticals. So we're really excited to kind of be at the forefront. Well, thanks vision on the future. >>Well, thanks for that, appreciate it. Look, we've been covering this announcement and the initiatives around disrupting the traditional space and uh we thank everybody for watching. Remember all this content is available on demand. If you want more information. Just hit up your HP Aruba rep, you know, I'm sure they'll be eager to help you out. So, again on demand, we will be available immediately. Appreciate you watching the cubes, coverage of the HP, Aruba Pensando announcements, appreciate it. >>Mm

(upbeat music) >> Welcome to "The Power of And," theCUBE's coverage of the HPE Aruba Pensando announcement. Antonio Neri is here and John Chambers to help us set up the day. Guys, great to see you. Thanks so much for coming on. >> Yeah, thanks for having us today. >> Dave, it's going to be fun. >> It sure is. So two years ago, you guys might recall, we were in the Goldman Sachs offices, overlooking Manhattan, and that's when you announced the investment in Pensando, the relationship. Two years, it goes by fast. How's it going? >> Yeah, definitely two years have gone by fast, and a lot has happened, right? A lot has happened since then. What I will say first and foremost, the partnership has grown stronger, much stronger, because as John and I and the team worked together, we validated the vision, the vision that ultimately the world would be way more distributed, that Edge to Cloud architectures would be required, and the original idea that John had with the Pensando team partnered with us to bring that Cloud experience to the Edge. It got stronger and stronger and stronger. At the same time, we also introduced new joint offers with the Pensando Silicon Software with our HP ProLiant servers. And since then we have learned quite a bit, right? So, which inform us what the next steps should be. And that's why we're here today, to talk about not just the work we have done around the distributive services cards, as we talk about it in the past, but now the distributed services switching, which we believe is another market in transition opportunity for us to disrupt as we go forward. >> So, John speaking of transitions, you've seen a number of industry transitions, dating back to my East Coast days. >> Yes. >> But so what was the wave, or the waves that you saw, that sort of led you to this new venture, to the partnership with HPE? >> Well, the exciting part is Antonio and I can almost finish each other's sentences. You compete against market transitions enabled by new technology. The biggest transition of all is the clouds moving to the Edge, the computes move into the edge, your storage security, your software applications, et cetera. And we saw this wave together, and when you talk about what's changed in the last two years, I think it exceeded both of our expectations. How our teams worked together? We outlined audacious goals of a hundred million in terms of orders within the first two years. And we hit and exceeded that. We said, we're going to be in a billion; after three years after we had a hundred million, we're on track for that. And if you watch our dream of democratizing the cloud, giving the capability for any major hyper scaler to compete with an Amazon web services or generally with them, and now bringing it down to any enterprise or any government agency be able to do it and the ability to do this as a team is what's unheard of. Innovation is hard to move with speed. Two companies to move together with innovation and more focused on the outcome than anything else. Our teams work even better than I thought we could. And I think you're seeing today, the next major phase that we make, where we take these concepts and we're going to revolutionize the switching industry. In every 10 to 12 years is a chance for a major change. And you either get through that and often the incumbents don't change. We're going to get through this, we think very, very well and we're again setting a tremendous challenge to the market with, literally software and Silicon and programmability throughout the whole architecture, and results that I think even surprised our engineers; a hundred times the scale of the nearest competitor in the market today at 10 times the performance at one third the total cost of ownership. Antonio and I can't even sell that with that type of capability. Our teams are functioning well. It's that ability to see markets and say, how does your partner win, that culture is so important to us in terms of the direction. >> So to chime in on this because you for years have been talking about the basically redefining cloud, not just a remote set of services, somewhere out there in the cloud, but connecting to on-prem and hybrid, multi-cloud out to the Edge. Is that the big wave that, that you see here? Is that what you're riding? >> Definitely one component of the wave. I think the other part is, remember what I said in 2018, when I became CEO of Hewlett Packard Enterprise, that the enterprise of the future will be a centric cloud enabled and data driven. And through the unfortunate events of the global pandemic, right? That has been validated, right? We live now in a much more distributed and enterprise than ever before. The original architectures that John obviously pioneered for, for the case, you know, you have the data center and you have the campus and the branch, now you have these extension called the micro branch. The micro branch is our homes, our home offices, right? But now what happens is that the cloud obviously scared to stay because it's all about speed and agility, but it's also important that we define cloud correctly, which is an experience that we should bring to, for all the applications and data. And what we see that the vast majority of the data is created at the Edge, where we live and work. Here we are, you and I, and John having a conversation. There is cameras everywhere taping this, there's a lot of bits being created. And those bits, I hope have value when people watch this. But, but to me, that's the, the big opportunity to really disrupt the cloud as we know it and bring that set of capabilities closer to where the action is. The second part of this, which I think is important is that what we saw with the consumption of IT, and this is where, you know, we have a, a vision to become the Edge supply platform that you can consume as a service. And that's our HPE Green Lake offer. But the- as a service offerings taken off to a level we have not imagined. And it's not just the fact that the public cloud is there, it's everything, whether it's in your own premises or at the Edge. And that's why I'm so excited about the partnership with Pensando to disrupt this age to cloud architectures, with the know how that we have, our go to market in the, as a service model to accelerate those markets in transition. >> You take the excitement of a company that's reinventing itself. And you think about HPE, they alerted the original Silicon Valley garage startup. So much of what is great about the Valley, they brought Lou Platt, who was the CEO at HP. When I came to Silicon Valley, nobody knew what Cisco was, much less the internet. They thought we were a food company. I called up Lou and I said, Lou I need help. I don't know the Valley, teach me about how you've been successful. He not only met with me once, he met with me for three years. At the end of the three years, he said, I said to him, now we're really cooking this time! We were growing out of control, becoming the most valuable company in the world for a while. And I said, Lou, what can I do to pay the HPE back? And he said, very simply, "John, give back to the next generation." That stuck with me forever. The values of a company, the leaders, whether it was Lou, whether it's original leaders of the company, or Antonio, their cultures and values are so much aligned. So we have a chance to change a market together. I was all in and, you know, while we competed a little bit, in, in the past, it was very little, and now we have a chance to change a whole market and take on the giants, and perhaps really disrupt a whole industry. That gets exciting. We've got a team that has built a $8 billion products per year, eight different times. Now we're going to do it a ninth and maybe a 10th together. And to share that is truly exciting with a world-class team at HPE. >> So let's talk a little bit about HPE, Aruba, and Pensando, where you guys are going. You started sort of at the core two years ago. And I think I, you know, I think Aruba, in some regards, is misunderstood. I mean, you're basically building a major cloud strategy around that. It stretches to the edge. So what is it that you are trying to disrupt here? Maybe give us a little insight as to the industry transitions that you're seeing. >> Antonio: Yeah. So first of all, Aruba is doing incredibly well, I mean, if you see the latest results grow in between 25 and 30% on a year over year basis. We have improved profitability, but what I'm really excited about is that our value proposition, our mobile first cloud first approach, is resonated with customers when it comes down to connectivity and analytics. So to me, that's an incredible value. And in order to become a cloud company, we leverage the Aruba infrastructure that was developed over the years to build a subscription based model to connectivity and extended all the way to what we call the cloud, which for us is the core business there. Now, with John and his team, we are changing the architectures around those, those components of there, there's the solution. So, Aruba has been incredible foundational, not only to grow the company, but also to give us the foundation technology to become that Edge to cloud company. So what we're doing with John, we have taken now this new architecture to the next level of the entire solution. So we started with the server business. We integrated these distributed service cards, and now we are taking it to their rack level architecture and eventually to the, you know, data center architecture in a true Edge to the cloud environment. And that means we are introducing the distributed service switching technology, which is, again, this is a joint innovation between the Aruba IP and the Pensando IP, which we think, which are, will change, again every 10 to 12 years, that switching market opportunity. >> And it's fun to take on the big competitors and bring them down, which I love doing. And it's also unique to see how fast our teams are moving together. Our cultures are very similar, and we set audacious goals for our team, and so far, they've been exceeding them. >> So you know a little bit about this networking market. Is this a, is this a new category of switch? Is this, how unique is this? >> John: Well, I think it's all the above. It's, Antonio used the word "platform and architectures" and distributed service platform that now is going into switching as well. It's ability to redefine everything with software in Silicon. And that's a lot different than what the industry seen before, and to move with speed in terms of software defined programmability everywhere, everything automated and simple, which makes it so easy to start- how simple? All you do is plug a server into the switch, and you look at what we're doing together already with the HPE servers and how you literally add value on top of it with the distributed services card and platform. So you see it all coming together. How big could it be? I think it will be the next generation, and truly not just the cloud moving to the Edge, but internet working security, how load balancing all comes together. That really is going to change an industry group. So I think it's going to be the next big product for the whole segment of the industry. >> Antonio: Yeah, and I think it will bring tremendous value from the company. Obviously we love the technology and this markets, but ultimately think about from the customer's perspective is less CapEx because they don't need to add log balancing, all these things that add costs, and actually friction points and point of failure, but also OPEX, because to the point that John said, right, it's all about simplicity and automation and awareness around the, the application. And also the, the infrastructure that ultimately we want this to be autonomous and intelligent, therefore is an OPEX reduction on the run time too. Go ahead, John. >> It's in many ways, future proof. It's an architecture for the future, not for the past. When you get your peers that talk about scale in low single digit thousands, and we talk about scale in millions, you talk about performance that literally is 10 fold, in order of magnitude better. And you build an architecture that allows the market to go where they want with ease of use for your customers. That's about innovation with speed. They can leave no small company or no large company probably could do by themselves. I think very few people in industry would have had the courage to do it, but probably not the culture to really make it work well. >> Dave: Talk About HPE, Pensando. I mean, you've got small company, big company, and you guys have been at this now for a couple of years. It seems to be gaining momentum. That, that is in an, in and of itself unique. Why HPE and Pensando? >> Antonio: Well, I think, again, it start with a thesis that John and I share about the future. As John said, it takes courage to do these things, and ultimately culture is everything. Well, we jointly realize that the way we think, the way we work is very similar. These are two companies that are very engineering driven in everything they do, but they put the customer at the center of how we think about the future. And it has been amazing to me. In fact, I, we connect every handful of weeks to check where we are and I keep, you know, in many ways the larger company, in many ways is pushing the smaller company to go further and faster. And to me, it's all about speed. >> So when you think about what makes a strategic partnership work, it has to be really material, both sides. In other words, it has to change an industry. HPE has done an amazing job. You've doubled your profits in the last four years, and you're reinventing yourself again and again, but it's a common vision of where the market's going to go, as Antonio articulated very well when it goes to the Edge, and Green Lake is going to be your delivery vehicle for it. It's about bringing together all these technologies into one, not individual appliances or approaches. You do load balance and you do security. You do scale and you do networking. And it's about the best of each company saying, how do you help the other company be successful? When our teams come together, other than their accents, you usually can't tell who's from HPE and who's from Pensando. >> Dave: How should we be evaluating the progress over the next several quarters, months, years? What are the, sort of, benchmarks we should be looking for? >> Well, I think the most important metric is customer relevance, in my mind. The financials generally tend to follow that because if you are relevant, is, is, you know, we were talking to all the teams, you know, are you important or are you strategic, right? Generally we are very important. What we do matters, but we want to be strategic. And I think this joint innovation will catapult us to be way more strategic in everything we do. So it's customer relevancy. Obviously from the financial perspective, we both have an idea to create multi-billion dollar businesses, otherwise, why do it, right? So, and the market is huge, is huge. I mean, you know that obviously we, we, we are living in an amazing time where data is exploding everywhere, right? And I think this is just a starting point, right? So we obviously start with an idea and a thought and a specific focus. But if you think about the next generation is create data fabrics that are secure, and then you can run these models with AI and machine learning at scale. The network fabric becomes the core of everything you do, right? >> So think about it the way you asked the question. It's been two years as of the announcement that we're making jointly. Since we made the announcement two years ago, we've over exceeded every expectation. It starts with the customers, as you said, Antonio, how many of the large customers do we have two years from now? Are we in the same leadership position like we are with the first-generation of the distributed services platform? And have we got a number of the very largest accounts in the world committed to us? And are we still one to two generations ahead of our nearest competitor two years from now like we are today with our current card capability and platform capabilities. >> Dave: Pretty cool partnership. Thanks so much guys, for helping us kick off the Power of And. Really appreciate it. >> Thank you, Dave. >> All right. Keep it right there. We've got a ton of content. You're going to hear from technologists, how they're trying to change the world, what it means for customers. You're watching theCUBE.

>>mm we are back and we're continuing the coverage on H P E. Aruba's news today around the D S X six S C X 10-K with Pensando. Now we want to get the perspective of a system Integrator because they're in the front lines, they understand how to put the pieces together where you're happy to bring john Galatea of Dasher technologies dashes and in the end I. T solutions provider, they gotta focus a lot of expertise on infrastructure, jOHn welcome. Good to see you. >>Thank you for having me. Good to be here. >>That's our pleasure. So I wonder if you could give us a little bit more color on Dasher where you focus what your core companies competencies are, what industries you focus on etcetera. >>Yeah, absolutely. So a dasher, we assess architect implement and manage I. T. Solutions that digitally transform businesses. Our practice areas include cybersecurity, networking, cloud data center and we also offer pro professional services around those practice areas. We partner with all the major tech companies in the space. Some of the examples are HP, Cisco, Aruba Palo Alto eight Ws and many others that fill out the, you know that practice area. >>Well that's great. So you have a very wide observation space, that's why we like talking to SA as you have an independent mindset and you can kind of tell it like it is. But so what are you seeing with customers? It's exactly, we hear a lot about digital transformation, you mentioned security, you're obviously doing cloud that's it's almost like john these pieces are all coming together to power Digital and digital transformation and we were forced into it over the past 18 months. And now people are stepping back saying hey okay we have all these resources, how do we put them together and really transform our business? What do you see? >>Yeah, seeing similar things. So you know, our customers are telling us that they're looking for more speed, more agility, um you know, limited complexity because they're trying to do more every single day with less staffing and a sophistication of integrating functionality that breaks down I. T. Silos. Um there also evaluating security span versus effectiveness And they're moving towards zero trust. >>Yeah. So I want to, I'm gonna come back and ask you about that. So I've written a lot about this is that you look at how much we spend versus as you say the effectiveness and there's sort of an imbalance there, it's like we can't spend enough, it budgets they're not infinite. And even though security is top of top priority for ceos, they've got other things that they have to fund and then zero trust, you know, before the pandemic john that was a buzzword and now it's become a mandate. Any thoughts on that >>in terms of zero Trust? Absolutely yeah it is a mandate, we've seen more and more of our customers moving toward in this direction and defending themselves against cyber threats and yeah absolutely. It accelerated during the pandemic and is continuing to accelerate today. >>Right? And I think there's some things that were reported now going to be permanent with regard to obviously hybrid and the like, cloud security and so forth. So, okay, let's get into some of the news here. What's the big trend, john can you explain the relevance of the H P E, Aruba and Pensando news? >>Yeah, I mean when I first heard of it, you know, I I looked at it as a whole new category because it's a category that's going to deliver cloud scale distributed services closer to where applications are. It's going to simplify. One of the things we mentioned earlier was limiting complexity. So it simplifies the network um, by putting security provisions and operations in a unified management platform and it helps improve your security posture around moving towards zero trust and limits the appliance and vendor sprawl that you might ordinarily have in a in a existing network today. >>Okay, so that's kind of the business cases, you're consolidating a lot of piece parts and that's, you know, from a system integrator standpoint. You know, it's funny people often say, well, isn't that bad for the s I'm like, no, they don't want to be in the business of plumbing, they want to be in the business of, you know, more strategy if they if they just end up bolting stuff together, they're going to go out of business, They need to extend their value. So as a strategic partner, you got an early preview of this launch? The D S S D S S C X 10,000, what was your initial impression reaction you called it? A new category? What do you mean by that? >>Well, it's a new category of of of a data center switch in the digital infrastructure because it includes or incorporates security. Um And more specifically it includes security around east west traffic, which is it doesn't eliminate your perimeter firewall but it actually incorporates more functionality which leads to better simplicity and easier use of management of a platform. So for us, I'm really excited to go position and talk to our clients about this. >>Yes. So we're seeing the flattening of that network, that's even it's obviously been accelerated by the pandemic, everybody talks about that. But if you think about the traditional headquarter hierarchical network and now all of a sudden everybody's working remotely using more cloud. Using more distributed infrastructure that flattens the network. That creates security challenges because you can't just build a perimeter and say, okay, we're safe. You now have to go to where the adversary is and that's everywhere. So what's your sense as to how customers are going to react to this new category of switch? >>I think really my sense is that I've got a really positive outlook on this product. I mean hardware, firewalls are costly and deploying software agents can be very disruptive and when you're integrating it into the switch layer. So um I think the C X 10,000 provides a great alternative to an embedded accelerated services embedded in accelerate service into the D C fabric. Um, it's great for brownfield migration, um, rack pod and you know, and the standards based leaf, you know, L two, L three um, and it doesn't necessarily replace, as I mentioned earlier the perimeter security, but um, it can cap and grow with DSS and east west firewall traffic. >>Yeah. And I think we've seen when we talked to see so, so like you said, it does, it doesn't replace the traditional perimeter security but you're going to see a shift and spending priorities obviously to a comedy because as I said earlier, there's not infinite budget but john give us the big takeaway, Bring us home. What what, what do you want to leave our audience with? >>Yeah, I think, you know, the number one takeaway is that it's a massive opportunity to reduce complexity, enhanced security and lower costs in the data center by eliminating dedicated devices and embedding services through software capability in the network closer to where workloads are are moving. So that's the big takeaway for me and for, I think for our clients, um, you know, other things are, you know, you're the data center perimeter is no longer confined and open an on prem location but extends out, right. We're seeing customers extend out to the cloud and across uh, you know, disparate locations, co locations. So The traditional architecture isn't going to be well suited for this, and I think the CX- 10,000 and its feature set are going to be really great for addressing the changing market. >>Yeah, that's, that's all. I mean, again, we're seeing the democratization of everything and and networking is, is no exception. The notion of simplify simplification, john really appreciate your time. Thanks for coming on. >>Thank you for having me. >>You're welcome. Okay, keep it right. There were unpacking the changing trends in networking generally, and specifically switch networking with HP, Aruba and Pensando and the cube. Keep it right there.

(fastpaced upbeat music) >> Welcome back to theCubes coverage of the power of N and the collaborations between HPE Aruba and Pensando. Where the two companies are setting out to create a new category in network switching. Joining me now is Simon McCormack, who looks after product management at HPE Aruba. Welcome Simon. Good to see you. >> Good morning. Thanks for having me today. >> You're very welcome. So Simon, we've been talking all day about the Aruba switching fabric that you're bringing to market, embedding the Pensando technology. Can you tell us what's the primary value prop that AFC brings to its customers? >> Sure. Aruba Fabric Composer. This is orchestration and management for the Aruba wide switching platform. Primarily for data centers. It does a lot of things. I'll give you three key ones just to get a feel for it. So in data center networking, there's a lot of complex technologies. I'm afraid to say, lease spines, overlays, underlays, EDP and OSPF BGP. I can throw out loads of acronyms for you. Fabric Composer can really simplify through a bunch of intent based workflows, the deployment and management of these fabrics. We can do it either interactively through a UI or fully API driven, if you want to. So it really takes away a lot of the plexity there makes it dead easy to deploy these and that scale. Number two, in a data center, a lot of compute storage hypervisor technologies that you have to interact with the THEO network products. So in Fabric Composer, we built an integration layer into it that interacts with other orchestrators, vCenter, VMware vcenter is a good example of that. So an operator may make changes to vCenter that affect the network. You don't want to call the network team for it. Fabric Composer can automate that network side configuration on the Aruba switch, making your day to operations, insertion of new services, much more simpler. And then finally, number three, because we've got all these capabilities I've just told you about. We actually have a great typology model that we build from it. And we can use that to visualize this virtual to physical network layer that is really powerful for troubleshooting the environment. >> Great? So three things, actually four right. To simplify or integrate and automate. And it's kind of two and two way, I'm going to to call it. and then the visualization piece for troubleshooting. Awesome. What about security policy? How are you thinking about that in this release? >> Yeah, so that's where in this release, we're extending it with the Pensando PSM technologies embedded into the 10K. Now we can use Aruba Fabric Composer to actually orchestrate the policy in addition to the network. So you think about today, Fabric Composer does network primarily. You bring policy into it. You've got one single pane of glass now that does network and policy. It actually provides a really powerful capabilities for operators of different skill sets to be able to manage and orchestrate this environment. >> What about the sort of operational model as it pertains to the network and security, I'm interested in how flexible that is. For instance, if a customer wants to use their own tooling or operational frameworks. What if they want to leverage multi-vendor fabrics like a third-party spine? How do you deal with all of that? >> Yeah, and I think that's, we built that into essentially the DNA of this technology is that we're, we're expecting to often go into brownfield environments. Where they've already got best practices for security and networking. They've already got networking vendors there. The 10K is a very powerful lease switch on its own. We want those lease switches to go in all of these different environments, not just Greenfield. It's really great for Greenfield. And I'm going to explain this a little bit in a few ways. First of all, the technology we have with Aruba fabric Composer and Pensando PSM, you can do a pure operational split between them SecOps, NetOps. A lot of customers that's how they deal with it. They've got the security operations team, network operations team. If they're split, you can use the two tools and make a fantastic product using that. However, if they're not split, and you've got a single policy for it. You can use Aruba Fabric Composer to do both of them. So you've got the options there and we fully embrace that in the architecture of what we built. This extends to multiple layers for the technology build as well. Again, as I said, the 10K's is a lease switch, it can connect to third-party spines. So you could use Fabric Composer to manage this lease Spitch and the policy you could use Fabric Composer just to manage the least switch and connect and interoperate the lease to the spine, or you can do a full Aruba solution, the full Aruba spine and use that operating model. There's one final thing in this area is fabric Composers are a UI based orchestrator, API driven. Some customers love it. Some customers love their CLIs. We fully embrace the operational model where customers still use their own APIs and their own CLIs. So the customer may be using Ansible to automate through API. They can still use that directly to the switch and they can use it to AFC and mix the two. If you talk directly to a switch and change it, Fabric Composer detects it and basically sinks its configuration together. So we can insert all or any part of this solution into existing or new Netflix. >> Yeah, that's nice. Right? Because I mean, so there's the network hard guys, right they, they want that CLI access. So you you're accommodating that. And then as well, being able to bring those SecOps view and the netOps view together is important because let's say, let's face it. A lot of organizations, especially some of the smaller ones, they don't actually have a full blown SecOps team. That's really the netOps responsibility. And so that's nice flexibility, you can handle both worlds. How about segmentation? What a customer is telling you that they want regarding segmentation and how are you guys approaching that? >> Yeah, I mean, it's, it's actually a key feature of what we're doing in this area. Now the iland segmentation generates it's kind of a wide area with many layers to it and we could talk about it for hours. So let me talk briefly about some of the areas we're going into when it comes to the segmentation. But particularly of a compute and virtual type environment. So when you, when you're typically creating policies in today's world, current policies based on addresses, IP addresses, or Mac addresses. You have lots of rules and big lists of addresses. It's really annoying. Customers generally don't talk in addresses. They talk in machines and names of machines. So if you think about what I've already told you with the Fabric Composer, we've already got these hooks in the compute hypervisor layer. So we didn't know about the virtual machines? So it said obviously, a natural extension now for you to be able to create these policies based on the machines. So there's, there's a scale problem in policy distribution at two levels, at the top and the bottom. The top level is your chronic create the policy. You've got this massive distribution addresses. So Fabric Composer can really help you by allowing you to then create these groups, sensible groups, using the names then you can distribute. The 10K solution with the distributed architecture of the bottom layer, now allows us to distribute these policies and rules across your racks within your data center. So it scales really well, but that's one level I've described. You know, you're creating groups of machines with names, so it's easier to define it, but there's auto and automation angle to this as well. You might not want to even create it interactively. Now a lot of customers with VMware vCenter, For example, are tagging the virtual machines. So the tag tells you a group information. Again, Fabric Composer can already get the tag within its database model. So we can use the tag now either to fully automate or use as a hint to creating these groups. So now I've got a really simple way to basically just categorize my machines into the groups so that now I can push rules down onto them. And there's one, one final thing that I just want to tell you before, before we move on. There's, there's often a zero trust model you want to do in the data center for segmentation. Meaning I've got two virtual machines on the same network on the same host. Normally they can talk to each other, nothing's stopping them, but sometimes you want to isolate even those two. You can do it in products like vCenter with PV land technologies. A bit cumbersome to configure on the vSphere side, you got to match it with what you see on the switch side. It's one of those that's a real headache, unless you've got an orchestrator to do it. So Fabric Composer could basically orchestrate this isolated solution. You're now grouping your machines and you're saying they're isolated. We can do the smarts and both of the vCenter side and the switch side, get them in sync, get it all configured. And now the masses can start to do this kind of segmentation at scale. >> Got it. Thank you Simon. Can the Fabric Composer kind of be used as the primary prism for troubleshooting? How do you handle troubleshooting and this art combined architecture? Who, who do I call when there's a problem? How do you approach that? >> Well, definitely start by calling me or actually call my product first, so fabric Composer. If you're using it, use that as the front tool for what you're going to try and figure out what's going on. There is a global health dashboard. It encompasses networking security policy across the solution, across the fabric. So that's your, tells you what's going on immediately. Down to port stats on what's happening within the physical topology of the network. Down to the end-to-end view, we have in terms of policy connectivity between machines. So Fabric Composer is your first port of call, but we built a solution here that we don't want to hide the pieces underneath it. Any networking guy knows when they're deep troubleshooting networking stuff, they're going to end up with the switch. So you started the orchestrator, but sometimes in the deep troubleshooting, not day-to-day, hopefully. You'll go to the switch and you'll troubleshoot that way. We've got the same technology here with the policy, with the firewall rules, with Pensando PSM. We still fully embrace for deep troubleshooting, go to Pensando PSM. They have really advanced tools in their bag of tricks in the product to give you advanced troubleshooting down to the policy layer. They have a really powerful firewall log capability, where you can search and sort, and see exactly what role is allowing or stopping any traffic going through the environment. And the two orchestrated model, we really like it 'cause it scales really well. It allows Fabric Composer to remain lightweight, PSM focused on the policy orchestration bit. But again, if your that customer that wants to do single pane of glass use Fabric Composer for the standard day-to-day stuff. But you've got the tools there to do the advanced troubleshooting between the different elements that we have within the Pensando and the Aruba tools. >> Yeah, really well thought out. You got the simplification angle nailed, the integration automation we talked about that, the visualization and the topology map, zero trust. And then remediation with deep^ened inspection. Simon, thanks so much for taking us through the announcements. Really appreciate your insights and time today. >> Thank you very much. >> You're welcome. Okay. Keep it right there, this is Dave Vellante for theCube. More content from the HPE Aruba Pensando announcements coming right up. (soothing music)

>>Mhm Yes. Hi and welcome to the Aruba Pensando announcement. I'm lisa martin. Hopefully you've seen the announcement from Antonio and john but if you haven't, we're going to dig into it from an analyst perspective joining me is bob La Liberty, senior analyst at Enterprise strategy Group to unpack the announcement, bob. Welcome to the program. >>Thank you very much. Great to be here. >>So in this case anybody hasn't seen the announcement go ahead and give me an overview, what are these two companies announcing? >>Yeah, absolutely. So essentially what you've seen is is that Pensando, who's been developing this distributed services platform to be deployed as an intelligent card, basically has taken their technology and incorporate it into an Aruba switch. So now you can get distributed services, all the great capabilities that Pensando has been working on combined with an Aruba top of rack switch, all managed under the Aruba fabric controller. Um so you've got a really simplistic way to be able to provision, configure and update and assigned policies to all those great Pensando state full services in the top of rack switch for an existing data center environment >>and what's your overall synopsis? Is this a disruptive technology? What do you think? >>Yeah, I really like this. I mean the whole goal of developing this technology was to be somewhat disruptive. It was to enable data center organizations to basically recreate what hyper scale hours are doing and the whole concept is around how do I improve, how do I distribute the services that are needed to help my application to protect my applications closer to the applications themselves. Um so I really find that this is something that's that's really needed. You know, we've seen the pendulum swinging towards distributed. But the interesting part about this announcement is that the majority of applications still reside in existing data centers. And the other the other kind of interesting pieces that, you know, cloud native, everyone talks about cloud native applications, but cloud native doesn't always mean public cloud only and that organizations are actually gonna run them in a hybrid. So organizations need to figure out how they're going to run these cloud native applications and their existing data center environments. And what the combination of the technologies enable organizations to do is to basically retrofit if you will that top of rack switch and be able to deploy, excuse me deploy those distributed services at a top of rack switch, instead of having to either rely on existing hardware appliances that are pulled off to the side of the network or to have to deploy agents onto the server which could impact the application performance. So they've kind of hit that that goldilocks spot of being able to provide distributed services without impacting the application performance. In fact, when you look at it from that perspective of its not having to go to that appliance pool any longer, it's actually going to increase the performance, right? Your latency is going to be a lot lower because instead of hair pinning through the core of your network. Now you're just going to your top of rack switch so it's going to improve the performance. >>Everybody wants improved performance. Especially in this the fact that things are continuing to stay distributed and we probably will have some part of that be permanent. So bob how do customers upgrade or integrate this into their existing environments? Talk to me a little bit more about that and the simplicity, it sounds like what you're saying with which they can do that. >>Yeah, this should be a fairly minimally minimally disruptive uh type of integration, essentially what you're doing, if you've got a high availability top of rack up environment, you're going to be swapping out one top of rack switch at the time. And organizations do this quite often when they're upgrading for capacity and things of that nature. So in this case it's simply going to be replacing the top of rack switch and organizations can look at different ways of how they want to do this. You know, to start, they might want to look at where they're critical applications are and deploy them. They're so they've got the services, it might be based on looking at where I don't know, you might have some regulated services, right. Pc I things like that that need to make sure that they've got higher levels of security. So essentially it's all about just simply deploying those top of rack switches going on to Aruba's fabric controller being able to spend that up, configure apply the policies and the security policies that you want to employ for those applications and and let it run >>Talk to me about this in certain context that we know some of the industry's every industry obviously has been affected by the events of the last 1819 months. What we think of manufacturing, healthcare, financial services give me uh your perspective into some of the customers in those industries and how they'll be able to take advantage of this technology as their environments continue to distribute. >>Yeah, I mean I think that the interesting piece of this is that, you know what it's really about for any industry, it's about as they modernize their data center as they modernize their applications. Right? So we've seen the transition from um monolithic too. So a based apps to microservices based applications and and that's really what's driving this because what's happening in all those organizations now, there's a lot of of communication within those applications themselves. Right? Because instead of having one monolithic application or two or three pieces of an application, you could now have dozens or hundreds of pieces of an application that need to talk to each other. And so the key for all of these industries, right, Regardless of the industry, when you're deploying this is how do you secure that communication, how do you make sure that East west traffic is being fully protected um because as organizations, you know, the legacy approach was castle and moat protect the perimeter, which was great. But if you got inside that perimeter right then the malware could really put periphery slow, deliberate, sorry, can't talk today. Um, but the idea is now, how can I deploy services that are able to protect that east west traffic as well? And so by deploying those services at the top of rack, you can do that more easily without having any kind of an impact. Right? So I think that you know the zero trust is what it's the mantra is never trust always verify. And so that's what organizations are looking to do. So even if there is a malware attack and they do get inside the data center that it's not able to spread throughout that organization. >>Got it. And that's absolutely critical. We have seen the security landscape change dramatically in the last year and a half, we've seen this massive spike in ransom where it's companies in every industry. I now know that it is not a matter of if we get attacked, it's when we've seen a massive increase in detail. So let's kind of dig into, You mentioned some of the benefits in terms of low latency performance, let's unpack the security level there. What are some of the things that you've seen in the security landscape where zero trust is absolutely critical for every industry? >>Yeah. Well like I said, it's really all about how do you make sure you're protecting there's a lot more communication going on within your application itself and how do you protect it? And so as that landscape has changed, it's critically important for organizations to adapt to that and to be able to, you know, make this change happen. So I mean we've seen this in the hyper scale is right. They've deployed the technology, they have it running at the right and those, those intelligent cards at the server level as close as they can. But for an existing data center, it doesn't make sense, right, unless you're replacing your whole data center, which is obviously incredibly disruptive. It's this is really about how do you insert those services in a minimally minimally disruptive way. And that's what that's what's really key here. The other interesting pieces because of the location, because they can track that east west traffic and apply the security policies to it and they can see all that and they've got visibility into it. They can then take that information and they can export it to existing other security tools. So you're not going to get rid of your perimeter security, you still need that. So this is more about a defense and depth about securing or augmenting your security posture and creating much more, much more, much tighter security around those modern application environments as well. So, so having this capability, like I said, it really starts to democratize that, that capability and the functions that the hyper scholars have and it brings it into existing enterprise data center environments and I think that's really what's important. And then, like I said, as organizations progress, they can take the data that they're collecting and they can leverage that with XDR solutions, right? Feed it into other, you know, sense or things like that. That can really help organizations um, you know, enhance their machine learning algorithms and things like that. The more data you can collect, the better you can, you can nail down the the policies that need to be provided there. >>Well, that's important too. As every company these days either needs to become a data company or if they don't, they're probably not going to be around much longer. Talk to me about the overall security kind of like implication you said this is going to help organizations in any industry augment their overall security posture. That's so critically important these days. >>Yeah. And it's like I said, it's really about having that that full visibility into the east west flows for these. So, and their ability, the distributed services switch is able to stream all of that telemetry of those flows right? And that can be complemented by the existing north south firewall telemetry as well. So you've got all this data for the XDR engines and things like that so that you can really determine whether there's an insider attack where there's any movement of malware, things like that, whether there's an external actor that's gotten into the data center, so it really provides you with a lot more visibility and that visibility provides that data that you talked about. So that's really what's key here and again, it's the ability here is that you're not needing to deploy XDR agents on every workload so there's no impact to the application performance when you're doing it in this this matter. So that's what makes it a really kind of an elegant solution to being able to modernize and deliver these capabilities into an existing data center environment. >>What do you think the timeframe is for an organization to be able to take advantage of this technology? >>Yeah, that's a good question. I mean really it's it's up to the, you know, it's up to the organization themselves. Clearly, once the technology is released by Aruba they've got the ability to start deploying it um you know, obviously one of the easiest ways to deploy it might be if they were adding a new rack adding some new capabilities then certainly that's completely non disruptive and they can get going there, but like I said, it, excuse me, it's also quite easy for organisations to be able to to just simply if they've got a high availability top of rack environment to start augmenting it into their existing their existing infrastructure as well, fairly non destructively >>excellent. That non disruption augmentation is critical. I I do want to ask you a question in terms of the partnership with HP. Aruban Pensando, what does this signify on the HP side in your opinion? >>Mhm Well from from the HP side, like I said, I think this is a HP has been involved with Pensando for a long time now. They've obviously recognized the value of the technology and wanted to partner with them from an early stage and so um what it really helps is you're thinking about moving forward. It creates a unique opportunity for organizations to take advantage of the Pensando technology within the HP server environments as well as those top of rack switches and create some really unique opportunities to drive even greater visibility and protection. >>Let's do one more thing bob. Let's just summarize your key takeaways if somebody has 30-60 seconds to watch this and see what the three things are that Bob says we need to be taking away from this announcement. What are those three things? >>Yeah, I think the key thing is first to recognize that modern application environments are gaining ground and that organizations need to accommodate these new application architecture. Right. But to do that, they need a solution. They need some technology to help them. So the key takeaway is that this now this H P E Aruba and Pensando distributed services switch, enables you to deploy distributed services into your existing environment in a minimally disruptive way and it provides you with the benefits of improving security of improving performance and user experiences um all while making sure that you can scale and do it simply through a single interface through the Aruba fabric controller. >>Got it. And being able to deliver those outstanding customer and user experiences is critical, as we are in this day and age where our business lives blend with our consumer lives that we expect things to be able to work like that bob. Thank you for joining me on the program, breaking down the HP Aruba Pensando announcement, telling us what it is, what the benefits are in it for customers and how they can take advantage of that. We appreciate your analysis. >>Very welcome. It's great to be here. >>Probably Liberty. I'm lisa martin. You're watching this HP Aruba Pensando announcement video. >>Mhm.

(intro music playing) >> Hello everyone, and welcome to the power of n where HPE Aruba and Pensando are changing the game, the way customers scale with the cloud, and what's next in the evolution in switching. Hey everyone, I'm John furrier with the cube, and I'm here with Shane Corbin, director of technical product management at Pensando, and William show vice president of product management, Aruba HPE. Gentlemen, thank you for coming on and doing a deep dive and, and going into the, the big news. So the first question I want to ask you guys is um, what do you guys see from a market customer perspective that kicked this project off? um, amazing um, results um, over the past year or so? Where did it all come from? >> No, it's a great question, John. So when we were doing our homework, there were actually three very clear customer challenges. First, security threats were largely spawn with on, within the perimeter. In fact, Forrester highlighted 80% of threats originate within the internal network. Secondly, workloads are largely distributed creating a ton of east-west traffic. And then lastly, network services such as firewalls, load balancers, VPN aggregators are expensive, they're centralized, and they ultimately result in service chaining complexity. >> John: So, so, >> John: Go ahead, Shane. >> Yeah. Additionally, when we spoke to our customers after launching initially the distributed services platform, these compliance challenges clearly became apparent to us and while they saw the architecture value of adopting what the largest public cloud providers have done by putting a smart NIC in each compute node to provide these stateful services. Enterprise customers were still, were struggling with the need to upgrade fleets and brown field servers and the associated per node cost of adding a smart NIC to every compute node. Typically the traffic volumes for on a per node basis within an enterprise data center are significantly lower than cloud. Thus, we saw an opportunity here to, in conjunction with Aruba, develop a new category of switching product um, to share the processing capabilities of our unique intellectual property around our DPU across a rack of servers that net net delivers the same set of services through a new category of platform, enabling a distributed services architecture, and ultimately addressing the compliance and TCO generating huge TCO and ROI for customers. >> You know, one of the things that we've been reporting on with you guys, as well as the cloud scale, this is the volume of data and just the performance and scale. I think the timing of the, of this partnership and the product development is right on point. And you've got the edge right around the corner, more, more distributed nature of cloud operations, huge, huge change in the marketplace. So great timing on the origination story there. Great stuff. Tell me more about the platform itself, the details, what's under the hood, the hardware OS, what are the specs? >> Yeah, so we started with a very familiar premise. Rubik customers are already leveraging CX with an edge to cloud common operating model, in deploying leaf and spine networks. Plus we're excited to introduce the industry's first distributed services switch, where the first configuration has 48-25 gig ports with a hundred gig couplings running Aruba CX cloud native operating system, Pensando Asic's software inside, enabling layer four through six, seven stateful services. Shane, do you want to elaborate on. >> Yeah, let me elaborate on that a little bit further, um, you know, as we spoke existing platforms and how customers were seeking to address these challenges were, are inherently limited by the ASIC dye size, and that does limit their scale and performance and ability in traditional switching platforms to deliver truly stateful functions in, in, in a switching platform, this was, you know, architecturally from the ground up, when we developed our DPU, first and second generation, we delivered it, or we, we built it with stateful services in mind from the get-go, we leveraged the clean state design with our P four program with DPU. We evolved to our seven nanometers based pro DPU right now, which is essentially enabling software and Silicon. And this has generated a new level of performance scale, flexibility and capability in terms of services. This serves as the foundation for our 200 gig card, were we taking the largest cloud providers into production for. And the DPU itself is, is designed inherently to process stage, track stateful connections, and stateful flow is at very, very large scale without impacting performance. And in fact, the two of these DPU components server disk, services foundation of the CX 10 K, and this is how we enable stateful functions in a switching platform functions like stateful network fire-walling, stateful segmentation, enhanced programmable telemetry, which we believe will bring a whole lot of value to our customers. And this is a platform that's inherently programmable from the ground up. We can, we can build and leverage this platform to build new use cases around encryption, enabling stateful load balancing, stateful NAT to name a few, but, but the key message here is, this is, this is a platform with the next generation of architecture's in mind, is programmed, but at all, there's the stack, and that's what makes it fundamentally different than anything else. >> I want to just double click on that if you don't mind, before we get to the competitive question, because I think you brought up the state thing. I think this is worth calling out, if you guys don't mind commenting more on this states issue, because this is big. Cloud native developers right now, want speed, they're shifting left at the CICD pipeline with programmability. So going down and having the programmability, and having state is a really big deal. Can you guys just expand on that a little bit more and why it's important and, and how hard it really is to pull off? >> I, I can start, I guess, um, it's very hard to pull off because of the sheer amount of connections you need to track when you're developing something like a stateful firewall or a stateful load balancer, a key component of that is managing the connections at very, very large scale and understanding what's happening with those connections at scale, without impacting application performance. And this is fundamentally different at traditional switching platform, regardless of how it's deployed today in Asics, don't typically process and manage state like this. Um, memory resources within the chip aren't sufficient, um, the policy scale that you can um, implement on a platform aren't sufficient to address and fundamentally enable deployable firewalling, or load balancing, or other stateful services. >> That's exactly right. And so the other kind of key point here is that, if you think about the sophistication of different security threats, it does really require you to be able to look at the entire packet, and, and more so be able to look at the entire flow and be able to log that history, so that you can get much better heuristics around different anomalies, security threats that are emerging today. >> That's a great, great point. Thanks for, for, um, bringing that extra, extra point out. I would just add to this, we're reporting this all the time on Silicon angle in the cube is that, you know, the, you know, the, the automation wave that's coming with around data, you know, it's a center of data, not data centers we heard earlier on with the, in, in, in the presentation. Data drives automation, having that enabled with the state is a real big deal. So, I think that's really worth calling out. Now, I've got to ask the competition question, how is this different? I mean, this is an evolution. I would say, it's a revolution. You guys are being being humble, um, but how is this different from what customers can deploy today? >> Architecturally, if you take a look at it. We've, we've spoken about the technology and fundamentally in the platform what's unique, in the architecture, but, foundationally when customers deploy stateful services they're typically deployed leveraging traditional big box appliances for east-west our workload based agents, which seek to implement stateful security for each east-west. Architecturally what we're enabling is stateful services like firewalling, segmentation, can scale with the fabric and are delivered at the optimal point for east west which is through leaf for access layer of the network. And we do this for any type of workload. Be it deployed on a virtualized compute node, be a deployed on a containerized worker node, be deployed on bare metal, agnostic up typology, it can be in the access layer of a three tier design and a data center. It can be in the leaf layer of a VX VPN based fabric, but the goal is an all centrally managed to a single point of orchestration and control of which William will talk about shortly. The goal of this is to drive down the TCO of your data center as a whole, by allowing you to retire legacy appliances that are deployed in an east-west roll, and not utilize host based agents, and thus save a whole lot of money and we've modeled on the order of 60 to 70% in terms of savings in terms of the traditional data center pod design of a thousand compute nodes which we'll be publishing. And as, as we go forward additional services, as we mentioned, like encryption, this platform has the capability to terminate up to 800 gigs of our line rates encryption, IP sec, VPN per platform, stateful Nat load balancing, and this is all functionality we'll be adding to this existing platform because it's programmable as we've mentioned from the ground up. >> What are some of the use cases lead? And what's the top use cases, what's the low hanging fruit and where does this go? You've got service providers, enterprises. What are the types of customers you guys see implementing? >> Yeah, that's, what's really exciting about the CX 10,000. We actually see customer interest from all types of different markets, whether it be higher education, service providers to financial services, basically all enterprises verticals with private cloud or edge data centers. For example, it could be a hospital, a big box retailer, or a colon such as Iniquinate So it's really the CX 10,000 that creates a new switching category, enabling stateful services in that leaf node right at the workload, unifying network and security automation policy management. Second, the CX 10,000 greatly improves security posture and eliminates the need for hair-pinning east-west traffic all the way back to the centralized deployments. Lastly, As Shane highlighted, there's a 70% TCO savings by eliminating that appliance sprawl and ultimately collapsing the network security operations. >> I love the category creation um, vibe here. Love it. And also the technical and the cloud alignment's great. But how do the customers manage all this? Okay, I got a new category. I just put the box in, throw away some other ones? I mean, how does this all get done? And how does the customers manage all this? >> Yeah, so we're, we're looking to build on top of the river fabric composer. It's another familiar site for our customers, and what's already provides for compute storage and network automation, with a broad ecosystem integrations, such as VMware vSphere Vcenter as with Nutanix prism and so aligned with the CX 10,000 FGA, now you have a fabric composer, unified security and policy orchestration, and management with the ability to find firewall policies efficiently and provide that telemetry to collect your such a Splunk. >> John: So the customer environments right now involve a lot of multi-vendor and new frameworks, obviously, cloud native. How does this fit into the customer's existing environment with the ecosystem? How do they get, get going here? >> Yeah, great question. Um, Our customers can get going as we, we've built a flexible platform that can be deployed in either Greenfield or brownfield. Obviously it's a best of breed architecture for distributed services we're building in conjunction with Aruba. But if customers want to gradually integrate this into their existing environments and they're using other vendors, spines or cores, this can be inserted seamlessly as, as a lead for an access, access tier switch to deliver the exact same set of services within that architecture. So it plugs seamlessly in because it supports all the standard control plan protocols, a VX 90 VPN, and a traditional attitude, three tier designs easily. Now, for any enterprise solution deployment, it's critical that you build a holistic ecosystem around it. It's clear that, this will get customer deployments and the ecosystem being diverse and rich is very, very important. And as part of our integrations with the controller, we're building a broad suite of integrations across threat detection, application dependency mapping, Siemens sooam, dev ops infrastructure as code tools. (inaudible) And it's clear if you look at these categories of integrations, you know, XDR or threat detection requires full telemetric from within the data center, it's been hard to accomplish to date because you typically need agents on, on your compute nodes to give you the visibility into what's going on or firewalls for east west fuels. Now, our platform can natively provide full visibility into all flows east- west in the data center. And this can become the source of telemetry truth that these MLX CR engines require to work. The other aspects of ecosystem around application dependency mapping, this single core challenge with deploying segmentation east west is understanding the rules to put in & Right, first is how do you insert the service, um, service device in such a way that it won't add more complexity? We don't add any complexity because we're in line natively. How you would understand it, would allow you to build the rules that are necessary to do segmentation. We integrate with tools like Guardi core, we provide our flogs as source of data, and they can provide room recommendations and policy recommendations for customers. Around, we're building integrations around Siemen soam with, with tools like Splunk and elastic, elastic search that will allow NetOps and SecOps teams to visualize trend and manage the services delivered by the CX 10 K. And the other aspect of ecosystem, from a security standpoint is clearly how do I get policy for these traditional appliances and enforce them on this next generation architecture that you've built, that can enable stateful services. So we're building integrations with tools like turf and an algo sec third-party sources of policy that we can ingest and enforce on the infrastructure, allowing you to gradually, um, migrate to this new architecture over time. >> John: It's really a cloud native switch. I mean, you solve people's problems, pin- points, but yet positioned for growth. I mean, it sounds that's my takeaway, but I got to ask you guys both, what's the takeaway for the customers because it's not that simple for them, I mean it's, we a have complicated environment. (all giggling) >> Yeah, I think it's, I think it's really simple, um, you know, every 10 years or so, we see major evolutions in the data center and the switching environment, but we do believe we've created a new category with the distributed services, distributed services switch, delivering cloud scale distributed services, where the local, where the workloads reside greatly, simplifying network, security provisioning, and operations with the urban fabric composer while improving security posture and the TCO. But that's not all the folks, it's a journey, right Shane? >> Yeah, it's absolutely a journey. And this is the first step in a long journey with a great partner like Aruba. There's other platforms, hundred or 400 gig hardware platforms where we're looking at and then this additional services that we can enable over time, allowing customers to drive even more TCO value out of the platform of the architecture services like encryption for securing the cloud on-ramp, services like stateful load balancing to deploy east-west in the data center and, you know, holistically that's, that's the goal, deliver value for customers. And we believe we have an architecture and a platform, and this is a first step in a long journey. >> It's a great way of, I just ask one final, final question for both of you as product leaders, you got to be excited having a category creation product here in this market, this big wave, but what's your thoughts? >> Yeah, exactly right, it doesn't happen that often, and so we're, we're all in it's, it's exciting to be able to work with a great team like Pensando and Shane here. Um, so we're really, really excited about this launch. >> Yeah, it's awesome. The team is great. It's a great partnership between Pensando and Aruba. You know, we, we look forward to delivering value for our joint customers. >> John: Thank you both for sharing under the hood and more details on the product. Thanks for coming on. >> [William And Shane] Thank you. >> Okay. The next evolution in switching, I'm John Furrier here with the power of nHPE Aruba and Pensando changing the game, the way customers scale up in the cloud and networking. Thanks for watching. (music playing)

>>I'm john free with the Q we are here. It's exciting news around the next evolution switching, Sony jean Donny, co founder and chief business officer Pensando and David Hughes chief product and technology officer Aruba HP. Welcome back. We just heard from Antonio neary and john Chambers about the HPV Ruba partnership with Pensando and the new switching platform. Tell me more about the exciting news you're announcing? >>Yeah, I'm really excited today to be introducing the CX 10,000 distributed services switch. It's a brand new class of switch way bringing together the best of Aruba switching technology adding to R C X portfolio combining with Pence Sandoz technology that technology embedded in the platform. The problem we're solving is that in a traditional data center, all of those services like fire walling and low balancing provided by centralized appliances. And while that might be okay for north south traffic traffic that's going in and out of the data center. It's not scalable and it's not cost effective to apply to every service in every port to every flow traversing their data center As we all know with microservices more and more of the traffickers east west over 70% today and growing and so what we're doing here with the C X 10,000 is giving enterprises away to take the smart nick technology that's been proven out by hyper scholars and introduce it into their data centers in a very cost effective and easy to deploy way we're embedding that capability in the top of rack switch so that we can apply Fireable services, low balancing services to every port To every flow, delivering 100 times a scale in terms of a CLS 10 times of performance, in terms of encryption at a third of the cost of those traditional network architectures. So it's a super exciting time, >>love the speed, love the energy there. But I gotta ask what makes this a new category of switch. >>Well if you take a look at the journey we have been on as we have evolved our data centers and the applications have evolved for our customers. Uh and the world is now a bold new world of multi cloud. Uh the architecture is in the data center which are leaves spine architectures have become the new norm. Software defined, networking is pervasively deployed by our customers but as this journey began five or seven or even about 10 years ago uh and has culminated into a much more mature set of building blocks. We have taken the problem from one space of automating networks in the data center to then introducing lots and lots of expensive appliances to bring about security for example, or the state full services, whether it's load balancing or whether it's encryption and visibility and telemetry types of services. Now the customers had to try, you know, trombone all the traffic in and out of these appliances driving up the cost uh and the complexity and when time comes to troubleshoot these environments, it's extremely complex because you're trying to rationalize fabrics coming from one place appliances coming from four or five different vendors, maintaining all the software elements that need to be kept track off. Uh and as more and more customers want to aspire towards zero trust security model. Uh we need to start to embrace a lot of the principles that have been implemented by the hyper scholars and the cloud vendors, which is doing away with the appliances doing away with agent technology on servers, but instead to bring that technology for east west uh into play as well as to ensure that if there are bad actors that are landing inside of the data centers that they do not have the ability to, you know, create attack surfaces with complete lateral movement. Today, that is possible. Uh if you look at 70% of all the attacks that have been happening here in the past few years, it's as a result of having a attack surface which is pretty large in the data centers. And that gets further complicated when you move towards a multi cloud environment where the perimeter of the data center is now moving into the edge. Whether that edges, whether fleet resides for our customers or whether that edge happens to be a co location edge where you're building your own rampant off ramps. So I think the compelling event essentially is driven by the whole notion of distribution of services and having them available from a security and from a services point of view and these are state full services as close to the workload as you possibly can get them. >>So you guys really hit on some key points, their cloud, native microservices East west, north south, um no perimeter edge. These are topics that we would talk about kind of individually over the years, it's happening now all at the same time, this is causing a lot of complexities and then the security challenges you just laid out are everywhere. This brings up a big conversation around solving this. How does this new architecture, this solution solve the complexity and the security challenges in the data center. >>If you look at the use cases that our customers are talking about. The first, the initial use case really is to bring about security and state full security for east west traffic right into the fabric of their data centers. So having the ability to deliver that while eliminating the complex appliances only to do the job which they do very well, which is not South protection of services. Uh that also allows us the ability then to start to deliver visibility and telemetry at the same time that we're delivering state full security firewall and micro segmentation services because what I cannot see, I cannot secure. Uh so those two elements are initial use cases out of the box for our customers as we deliver this platform to them and then as more and more use cases that are becoming evident to us through customer interactions come into play. For example, the co location edge that I would like. David to walk you through a bit more in terms of how we help solve for that use case. >>So for the cooler use case, I think we're moving from a world where people talk about data centers to now talking about centers of data and those centers of data. Yes, they can be in a core private data center, they could be in the cloud but more and more they're going to be distributed around the edge in co location environments. And what we need to be able to do is extend those services that were provided in the data center to be provided in those Kahlo's at the edge And again we want to do that without having to deploy a whole rack of appliances that may be cost more than a computer itself and so with the CX- 10,000 we can have that as a top of rack switch for that polo. And from that switch deploy all of the encryption and firewall ng services that that polo requires. And what's important is that we're doing it with the same policy framework under the same management system across the whole enterprise in the data center as well as in these co location environments and out into the cloud. >>So you guys mentioned visibility and a quick follow up on this question because you mentioned visibility can't see it, you can't protect it. But also there's a lot of workloads that people are trying to automate. These are two factors. Can you guys just double down on that? I want to just get that out there because I think this becomes a big thing. >>I think policy having the ability to have an intent based policy that is a foundational technology building block that we are brought together is a very important element. And then when you map it back to tools that Aruba is extending support for including this platform, become very valuable. So David, why don't you walk us >>through? You know, I think one of the advantages that we bring is that this is an extension of the Aruba C X switching portfolio. So yeah, it's a cloud native microservices, very modern switch architecture and we have a comprehensive management platform, the Aruba fabric controller. And so what we are doing is making sure that everything fits together nicely, that we're delivering a complete solution to our customers. But one important thing to mention here is that we are thinking about how customers can do this step by step. So no, we're not requiring them to rebuild their entire data center, They can do this one rack at a time. We can work with their existing spine and deploy one leaf at a time in a very measured way. And so we think it's a great way for enterprises to be able to consume this modern distributed platform. >>That's a great segment. The next question. I mean I totally see this as you guys are talking about the cloud native trend, driving a cloud operational model to every edge. The data center is just another edge. It's a center of data. Love that. I love that line. So I have to kind of ask the operational side of the question, how would an enterprise customers manage all this take us through the nuts and bolts of deploying and managing of his gum? A customer >>That's a very good question. If you take a look at the customer's deployment models and let's let's take the example of they want to now bring in this technology and build a part or highly secure part with it for east west and to make sure that they're protecting 100% of that east west traffic. I think that leveraging all the building blocks that we have innovated between us and Aruba. We want to make sure that the ecosystem that the customer has built, they want whether they have built it with companies like Splunk and service now or Guardianco, they want integration points will be made available to them. If you take a look at, take a step back and say for these environments as you aspire to go toward zero trade security. The issues of inserting security appliances into network flows and having the ability to map it to the knowledge of applications and their dependencies for policy becomes an important function to tackle. So once you accept that, Okay, I have state full security functions built into this top of rack device available for my applications and all workloads, whether they're container workloads, bare metal workload, virtualized workloads uh and I have complete visibility into those workloads without compromising on connectivity and I can control through enforcement of policy where I need it because now security is part of the fabric, it's not a bolt on. Then comes the job of integration with an ecosystem. So whether you're looking at seem and sold companies where we are delivering in close collaboration with Splunk, A Pensando app for Splunk there's also going to be the availability of an elastic module, A plug in module. Uh then turn attention to what's more automation and devops and civil playbooks for the C X 10-K will be made available day one so that where you do not have the ability to deploy the A. F. C. You can use your existing answerable toolkit and they're making those playbooks available to our customers. Uh They want integration with application discovery mapping companies like Guardianco, allowing them to discover who's talking to whom and push and enforce that policy through the C X 10-K will allow for more automated deployments of those policies and finally, compliance integration with vendors like too thin for continuous security compliance monitoring becomes extremely important as the screen depicts a lot of lot of visualization capabilities with companies like Elk which are in beta today and answerable and Splunk and Elk will all be targeted at first customer shipment. So again, telemetry visibility with the integration of the ecosystem. Uh, it becomes a very powerful combination for the customers as they look to operationalize this for day to day three and they, you know, day one, day two, day three automation. >>That's awesome. David, I'd like to let you weigh in on this whole question of operations because you're hitting all the marks here that are relevant cloud, native microservices, apps, explosion and data volume and velocity, hyper scale operational cloud operations, performance, price point security all in this one solution. This is big. Um, it's not like you mentioned earlier, it's not a rip and replace but you can roll it out how how do you see a customer best operational izing this new, >>You know, I think the answer is a little bit different for each customer but you are very careful at the beginning, we introduced this. It's an evolution of switching. It's not a revolution where we have to replace everything and I think that's really exciting is that it builds on the foundational architecture of leaf and spine. And what we're able to do is let that customer introduced these new capabilities one leaf at a time. So maybe when they're upgrading from 10 gigs to 25 gigs, it's a great time for them to introduce this capability into their data center um and then depending on their application, you know, it may be, as Sony said that they've got one particular application, a crown jewel application and so they want to build out that in one rack and provide, you know, very, very robust East west as well as north south um security around that application, but there's so many different ways that customers can deploy this technology and what's really exciting is now is we're beginning to work with our customers, learning about these new use cases and then feeding that back into our roadmap and we all >>know, as you get down lower in the network layer, security is distributed architecture. So everything is paramount like security, super relevant, great conversation, I gotta ask what's next with this technology. Yeah, >>well, you know the teams, the two engineering teams are working together and this is step one on, on a really exciting new path, I don't know, Sony, what would you say? >>I think there's a lot more to come here. This is just a starting point. We have an incredibly strong partnership and go to market partnership here with Uber team with this platform. It is just the beginning uh and it will lead our customers onto the multi cloud journey. Uh and last but not least, I would like to say that you know, in closing uh that are seldom opportunities where you look at disrupting the way things are happening while fitting into customers existing models. So this is, as I said with everything being software defined, you will continue to see as delivering at great velocity more and more software defined services, whether it's encryption, Lord balancing and other state full services over time. Making this technology easier to deploy by fitting into the existing ecosystem and continuing to provide them with the 100 extra scale, 10 X. The performance as well as the ability to do it at a third of the same, you know, at the third of the cost of what they would need to if they had to build this uh today with disparate devices, >>exciting news in the industry. You guys are the pros you've seen all the waves of innovation over the years. I guess my final final question would be, how would you summarize this point in time right now? This is pretty um exciting all this is all happening At the same time, customers are having opportunity to innovate the pandemic has shown a lot of scale and and the need for stability and security. This is a special moment. How would you guys weigh in on that? >>Yeah, I think about it every decade, there's a change in how data centers a belt. And so this is the change that's happening this decade. Moving to a distributed services, switch. The other big mega trend that I see is this move, as I said from data centers to stand as a data and the opportunity for customers to use this technology as they move out to the edge. Have distributed compute and tell us, what do you think Sony? >>I think I couldn't agree more. I think there are so many various technology transitions occurring now. The cloud being the biggest one. Uh the explosion of data and uh, you know, the customers making decisions of having a distributed model And if indeed two thirds, if not 75% of all data will be processed at the edge over the next few years. This architecture is prime for the enterprise to go leverage their best practices of today while they can gradually move that architecture is for the future, which is a multi cloud future >>centers of data, large scale cloud operations automation. The speed of innovation has never seen this before. Uh It's exciting time. Sunny, thank you for coming on. And David, thanks for chatting about this exciting new announcement. Thank you very much. >>Thank you. Thank you. >>This is the power of and hp. Ruba and Pensando partnership. I'm john forward the cube. Thanks for watching. Mhm

>>Thank you. >>Hi and welcome to the Aruba Pensando announcement. I'm lisa martin. Hopefully you've seen the announcement from Antonio and john but if you haven't, we're going to dig into it from an analyst perspective joining me is bob La Liberty, senior analyst at Enterprise strategy Group to unpack the announcement, bob Welcome to the program. >>Thank you very much. Great to be here. >>So in this case anybody hasn't seen the announcement go ahead and give me an overview, what are these two companies announcing? >>Yeah, absolutely. So essentially what you've seen is is that Pensando, who's been developing this distributed services platform to be deployed as an intelligent card, basically has taken their technology and incorporate it into an Aruba switch. So now you can get distributed services, all the great capabilities that Pensando has been working on combined with an Aruba top of rack switch, all managed under the Aruba fabric controller. Um so you've got a really simplistic way to be able to provision, configure and update and assigned policies to all those great Pensando state full services in the top of rack switch for an existing data center environment >>and what's your overall synopsis? Is this a disruptive technology? What do you think? >>Yeah, I really like this. I mean the whole goal of developing this technology was to be somewhat disruptive. It was to enable data center organizations to basically recreate what hyper scale hours are doing and the whole concept is around how do I improve, how do I distribute the services that are needed to help my application to protect my applications closer to the applications themselves. Um so I really find that this is something that's that's really needed. You know, we've seen the pendulum swinging towards distributed. But the interesting part about this announcement is that the majority of applications still reside in existing data centers. And the other the other kind of interesting pieces that, you know, cloud native, everyone talks about cloud native applications, but cloud native doesn't always mean public cloud only and that organizations are actually gonna run them in a hybrid. So organizations need to figure out how they're going to run these cloud native applications and their existing data center environments. And what the combination of the technologies enable organizations to do is to basically retrofit if you will that top of rack switch and be able to deploy, excuse me, deploy those distributed services at a top of rack switch. Instead of having to either rely on existing hardware appliances that are pulled off to the side of the network or to have to deploy agents onto the server which could impact the application performance. So they've kind of hit that goldilocks spot of being able to provide distributed services without impacting the application performance. In fact, when you look at it from that perspective of its not having to go to that appliance pool any longer, it's actually going to increase the performance, right? Your latency is going to be a lot lower because instead of hair pinning through the core of your network. Now you're just going to your top of rack switch. So it's going to improve the performance. >>Everybody wants improved performance. Especially in this the fact that things are continuing to stay distributed and we probably will have some part of that be permanent. So bob how do customers upgrade or integrate this into their existing environments? Talk to me a little bit more about that and the simplicity, it sounds like what you're saying with which they can do that. >>Yeah, this should be a fairly minimally minimally disruptive uh type of integration, essentially what you're doing if you've got a high availability top of rack it environment, you're going to be swapping out one top of rack switch at the time. And organizations do this quite often when they're upgrading for capacity and things of that nature. So in this case it's simply going to be replacing the top of rack switch and organizations can look at different ways of how they want to do this. You know, to start they might want to look at where they're critical applications are and deploy them. They're so they've got the services, it might be based on looking at where, I don't know you might have some regulated services. Right. Pc I things like that that need to make sure that they've got higher levels of security. So essentially it's all about just simply deploying those top of rack switches going on to Aruba's fabric controller being able to spend that up configure, apply the policies and the security policies that you want to employ for those applications and and let it run, >>Talk to me about this in certain context that we know some of the industry's every industry obviously has been affected by the events of the last 1819 months. What we think of manufacturing, healthcare, financial services, give me uh your perspective into some of the customers in those industries and how they'll be able to take advantage of this technology as their environments continue to distribute. >>Yeah, I mean, I think that the interesting piece of this is that, you know what it's really about for any industry, it's about as they modernize their data center, as they modernize their applications. Right? So we've seen the transition from um monolithic too. So a based apps to microservices based applications and and that's really what's driving this. Because what's happening in all those organizations now, there's a lot of of communication within those applications themselves. Right? Because instead of having one monolithic application or two or three pieces of an application, you could now have dozens or hundreds of pieces of an application that need to talk to each other. And so the key for all of these industries, right. Regardless of the industry, when you're deploying this is how do you secure that communication, how do you make sure that East West traffic is being fully protected um because as organizations, you know, the legacy approach was castle and moat protect the perimeter, which was great. But if you got inside that perimeter right then the malware could really put periphery slow, deliberate, sorry, can't talk today. Um, but the idea is now, how can I deploy services that are able to protect that east west traffic as well? And so by deploying those services at the top of rack, you can do that more easily without having any kind of an impact. Right? So I think that you know the zero trust is what it's the mantra is never trust, always verify. And so that's what organizations are looking to do. So even if there is a malware attack and they do get inside the data center that it's not able to spread throughout that organization. >>Got it. And that's absolutely critical. We have seen the security landscape change dramatically in the last year and a half, we've seen this massive spike in ransom where it's companies in every industry. I now know that it is not a matter of if we get attacked, it's when we've seen a massive increase in detail. So let's kind of dig into, You mentioned some of the benefits in terms of low latency performance, let's unpack the security level there. What are some of the things that you've seen in the security landscape where zero trust is absolutely critical for every industry? >>Yeah. Well, like I said, it's really all about how do you make sure you're protecting there's a lot more communication going on within your application itself and how do you protect it? And so as that landscape has changed, it's critically important for organizations to adapt to that and to be able to, you know, make this change happen. So I mean we've seen this in the hyper scale is right. They've deployed the technology, they have it running at the right and those, those intelligent cards at the server level as close as they can. But for an existing data center, it doesn't make sense, right, unless you're replacing your whole data center, which is obviously incredibly disruptive. It's this is really about how do you insert those services in a minimally minimally disruptive way. And that's what that's what's really key here. The other interesting pieces because of the location, because they can track that east west traffic and apply the security policies to it and they can see all that and they've got visibility into it. They can then take that information and they can export it to existing other security tools. So you're not going to get rid of your perimeter security, you still need that. So this is more about a defense and depth about securing or augmenting your security posture and creating much more, much more, much tighter security around those modern application environments as well. So, so having this capability, like I said, it really starts to democratize that, that capability and the functions that the hyper scholars have and it brings it into existing enterprise data center environments and I think that's really what's important. And then, like I said, as organizations progress, they can take the data that they're collecting and they can leverage that with XDR solutions, right? Feed it into other, you know, sense or things like that. That can really help organizations um, you know, enhance their machine learning algorithms and things like that. The more data you can collect, the better you can, you can nail down the the policies that need to be provided there. >>Well, that's important too. As every company these days either needs to become a data company or if they don't, they're probably not going to be around much longer. Talk to me about the overall security kind of like implication. You said this is going to help organizations in any industry augment their overall security posture. That's so critically important these days. >>Yeah. And it's like I said, it's really about having that that full visibility into the east west flows for these so, and their ability, the distributed services switch is able to stream all of that telemetry of those flows right? And that can be complemented by the existing north south firewall telemetry as well. So you've got all this data for the XDR engines and things like that so that you can really determine whether there's an insider attack where there's any movement of malware, things like that, whether there's an external actor that's gotten into the data center, so it really provides you with a lot more visibility and that visibility provides that data that you talked about. So that's really what's key here and again, it's the ability here is that you're not needing to deploy XDR agents on every workload so there's no impact to the application performance when you're doing it in this this matter. So that's what makes it a really kind of an elegant solution to being able to modernize and deliver these capabilities into an existing data center environment. >>What do you think the timeframe is for an organization to be able to take advantage of this technology? >>Yeah, that's a good question. I mean really it's it's up to the, you know, it's up to the organization themselves. Clearly, once the technology is released by Aruba they've got the ability to start deploying it um you know, obviously one of the easiest ways to deploy it might be if they were adding a new rack, adding some new capabilities then certainly that's completely non disruptive and they can get going there, but like I said it, excuse me, it's also quite easy for organisations to be able to to just simply if they've got a high availability top of rack environment to start augmenting it into their existing their existing infrastructure as well, fairly non destructively >>excellent. That non disruption augmentation is critical. I I do want to ask you a question in terms of the partnership with HP Aruban Pensando, what does this signify on the HP side in your opinion? >>Mhm Well from from the HP side, like I said, I think this is a HP has been involved with Pensando for a long time now. They've obviously recognized the value of the technology and wanted to partner with them from an early stage and so um what it really helps is you're thinking about moving forward. It creates a unique opportunity for organizations to take advantage of the Pensando technology within the HP server environments as well as those top of rack switches and create some really unique opportunities to drive even greater visibility and protection. >>Let's do one more thing bob. Let's just summarize your key takeaways if somebody has 30-60 seconds to watch this and see what the three things are that Bob says we need to be taking away from this announcement. What are those three things? >>Yeah, I think the key thing is first to recognize that modern application environments are gaining ground and that organizations need to accommodate these new application architecture. Right? But to do that, they need a solution. They need some technology to help them. So the key takeaway is that this now this H P E. Aruba and Pensando distributed services switch enables you to deploy distributed services into your existing environment in a minimally disruptive way and it provides you with the benefits of improving security of improving performance and user experiences. Um all while making sure that you can scale and do it simply through a single interface through the Aruba fabric controller. >>Got it. And being able to deliver those outstanding customer and user experiences is critical as we are in this day and age where our business lives blend with our consumer lives that we expect things to be able to work like that bob. Thank you for joining me on the program, breaking down the HP Aruba Pensando announcement, telling us what it is, what the benefits are in it for customers and how they can take advantage of that. We appreciate your analysis. >>Very welcome. It's great to be here. >>Probably Liberty. I'm lisa martin. You're watching this HP Aruba Pensando announcement video. Yeah. Mhm.

>>Hello and welcome to the power of and where H P E Aruba and Pensando are changing the game the way customers scale at the cloud and what's next in the evolution in switching everyone. I'm john ferrier with the Cuban. I'm here with Shane Corbyn, Director of Technical Product management. Pensando Williams show vice president Product management, Aruba HP Gentlemen, thank you for coming on and doing a deep dive and and going into the big news. So the first question I want to ask you guys is um, what do you guys see from a market customer perspective that kicked this project off? Amazing results over the past year or so. Where did it all come from? >>It's a great question, John So when we were doing our homework, there were actually three very clear customer challenges. First, security threats were largely spawned with from within the perimeter. In fact, four star highlights that 80% of threats originate within the internal network. Secondly, workloads are largely distributed, creating a ton of east west traffic and then lastly, network services such as firewalls load balancers. VPN aggregators are expensive. They're centralized and then ultimately result in service changing complexity. So everyone, >>so go ahead. Change. >>Yeah. Additionally, when we spoke to our customers after launching initially the distributed services platform, these compliance challenges clearly became apparent to us and while they saw the architectural value of adopting what the largest public cloud providers have done by putting a smart making each compute note to provide these state full services. Enterprise customers were still were struggling with the need to upgrade fleets and Brownfield servers and the associated per node cost of adding a spark nick to every compute node. Typically the traffic volumes for on a personal basis within an enterprise data center are significantly lower than cloud. Thus we saw an opportunity here to in conjunction with Aruba developed a new category of switching product um, to share the crossing capabilities of our unique intellectual property around our DPU across a rack of servers that Net Net delivers the same set of services through a new category of platform, enabling a distributed services architecture and ultimately addressing the compliance and uh, TCO generating huge TCO and ri for customers. >>You know, one of the things that we've been reporting on with you guys as well as the cloud scale, this is the volume of data and just the performance and scale I think the timing of the, of this partnership and the product development is right on point. You got the edge right around the corner more, more distributed nature of cloud operations, huge, huge change in the marketplace. So great timing on the origination story there. Great stuff. Tell me more about the platform itself. The details what's under the hood, the hardware. Os, what are the specs? >>Yeah, so we started with a very familiar premise, Ruba customers are already leveraging C X with an edge to cloud, common operating model and deploying Leaf and spy networks. Plus we're excited to introduce the industry's first distributed services switch where the first configuration has 48 25 gig ports with 100 gig uplinks running Aruba C X cloud native operating system. Pensando A six and software inside enabling layer four through seven staple services you want to elaborate on. >>Let me elaborate on that a little further. Um, you know, as we spoke, existing platforms and how customers were seeking to address these challenges were inherently limited by the diocese and that thus limited their scale and performance and ability in traditional switching platforms to deliver truly stable functions in in a switching platform. This was, you know, architecturally from the ground up. When we developed our DPU 1st and 2nd generation, we delivered it or we we we built it with staples services in in mind from the Gecko. We we leverage to clean state designed with RP four program with GPU, we evolved to our seven nanometer based DPU right now, which is essentially enabling software and silicon and this has generated a new level of performance scale flexibility and capability in terms of services this serves as the foundation for or 200 gig card where we're taking the largest cloud providers into production for. And the DPU itself is designed inherently to process state track state connections and state will flow is a very, very large scale without impacting performance. And in fact, the two of these deep you component service, their services foundation of the C X 10-K And this is how we enable states of functions in a switching platform. Functions like stable network network fire walling, stable segmentation, enhance programmable telemetry. Which we believe will bring a whole lot of value to our customers. And this is a, a platform that's inherently programmable from the ground up. We can we can build and and leverages platform to build new use cases around encryption, enabling state for load balancing, stable nash to name a few. But the key message here is this is this is a platform with the next generation of architecture is in mind is programmed but at all levels of the stack and that's what makes it fundamentally different than anything else. >>I want to just double click on that if you don't mind before we get to the competitive question because I think you brought up the state thing, I think this is worth calling out if you guys don't mind commenting more on this state issue because this is big cloud. Native developers right now want speed, they're shifting left at the Ci cd pipeline with program ability. So going down and having the program ability and having state is a really big deal. Can you guys just expand on that a little bit more and why it's important and how hard it really is to pull off. >>I I can start I guess. Well um it's very hard to pull off because of the sheer amount of connections you need to track when you're developing something like a state, full firewall or state from load balancer. A key component of that is managing the connections at very, very large scale and understanding what's happening with those connections at scale without impacting application performance. And this is fundamentally different. A traditional switching platform regardless of how it's deployed today in a six don't typically process and manage state like this. Memory resources within the shape aren't sufficient. Um the policy scale that you can implement on a platform aren't sufficient to address and fundamentally enable deployable fire walling or load balancing or other state services. >>That's exactly right. So the other kind of key point here is that if you think about the sophistication of different security threats, it does really require you to be able to look at the entire packet and more so be able to look at the entire flow and be able to log that history so that you can get much better heuristics around different anomalies. Security threats that are emerging today. >>That's a great great point. Thanks for bringing that extra extra point out, I would just add to this, we're reporting this all the time when silicon angle in the cube is that you know, the you know, the the automation wave that's coming with around data, you know, it's the center of data now, not date as soon as we heard earlier on with the presentation data drives automation having that enabled with state is a real big deal. So I think that's really worth calling out now. I got to ask the competition question, how is this different? I mean this is an evolution, I would say it's a revolution you guys are being humble um but how is this different from what customers can deploy today >>architecturally, if you take a look at it? So we've, we've spoken about the technology and fundamentally in the platform, what's unique in the architecture but foundational e when customers deploy stable services, they're typically deployed leveraging traditional big box appliances for east west or workload based agents which seek to implement stable security for each East west architectural, what we're enabling is staples services like fire walling, segmentation can scale with the fabric and are delivered at the optimal point for east west which is through the Leaf for access their of the network and we do this for any type of workload. Being deployed on a virtualized compute node being deployed on a containerized, our worker node being deployed on bare metal agnostic of topology. It can be in the access layer of a three tier design and a data center. It can be in the leaf layer of the excellent VPN based fabric. But the goal is an all centrally managed to a single point of orchestration control which William we'll talk about shortly. The goal of this is to to drive down the TCO of your data center as a whole by allowing you to retire legacy appliances that are deployed in in east west role, not utilized host based agents and thus save a whole lot of money. And we've modeled on the order of 60 to 70% in terms of savings in terms of the traditional data center pod design of 1000 compute nodes which will be publishing and as as we go forward, additional services as we mentioned like encryption, this platform has the capability to terminate up to 800 gigs of line, right encryption, I P sec VPN per platform state will not load balancing and this is all functionality will be adding to this existing platform because it's programmable as we mentioned from the ground up. >>What are some of the use cases lead and one of the top use case. What's the low hanging fruit? And where does this go? Service providers enterprise, what are the types of customers you guys see implementing? >>Yeah, that's what's really exciting about the C X 10,000 we actually see customer interest from all types of different markets, whether it be higher education service providers to financial services, basically all enterprises verticals with private cloud or edge data centers for example, could be a hospital, a big box retailer or Coehlo. Such as an equity. It's so it's really the 6 10,000 that creates a new switching category enabling staple services in that leaf node, right at the workload, unifying network and security automation policy management. Second, the C X 10,000 greatly improved security posture and eliminates the need for hair pinning east west traffic all the way back to the centralized plants. Lastly, a Shane highlighted there's a 70% Tco savings by eliminating that appliance brawl and ultimately collapsing the network security operations. >>I love the category creation vibe here. Love it. And obviously the technical and the cloud line is great. But how do the customers manage all this? Okay. You got a new category. I just put the box in, throw away some other one. I mean how does this all get down? How does the customers manage all this? >>Yeah. So we're looking to build on top of the ribbon fabric composer. It's another familiar sight for our customers which already provides for compute storage and network automation with a broad ecosystem integrations such as being where the sphere be center as with Nutanix prison And so aligned with the c. x. 10,000 at G. A. now the aruba fabric composer unifies security and policy orchestration and management with the ability to find firewall policies efficiently and provide that telemetry to collectors such a slump. >>So the customer environments right now involve a lot of multi vendor and new frameworks cloud native. How does this fit into the customer's existing environment? The ecosystem. How do they get that get going here? >>Yeah, great question. Um our customers can get going is we we built a flexible platform that can be deployed in either Greenfield or brownfield. Obviously it's a best of breed architecture for distributed services were building in conjunction with the ruble but if customers want to gradually integrate this into their existing environments and they're using other vendors, spines or course this can be inserted seamlessly as a leaf or an access access to your switch to deliver the exact same set of services within that architecture. So it plugs seamlessly in because it supports all the standard control playing protocols, VX, Lenny, VPN and traditional attitude three tier designs easily. Now for any enterprise solution deployment, it's critical that you build a holistic ecosystem around it. It's clear that this will get customer deployments and the ecosystem being diverse and rich is very, very important and as part of our integrations with the controller, we're building a broad suite of integrations across threat detection application dependency mapping, Semen sore develops infrastructure as code tools like ants, Poland to answer the entire form. Um, it's clear if you look at these categories of integrations, you know XDR or threat detection requires full telemetry from within the data center. It's been hard to accomplish to date because you typically need agents on, on your compute nodes to give you the visibility into what's going on or firewalls for east west flaws. Now our platform can natively provide full visibility in dolphins, East west in the data center and this can become the source of telemetry truth that these Ml XT or engines required to work. The other aspects of ecosystem are around application dependency mapping the single core challenge with deploying segmentation. East West is understanding the rules to put in place right first, is how do you insert the service uh service device in such a way that it won't add more complexity. We don't add any complexity because we're in line natively. How do we understand that allow you to build the rules are necessary to do segmentation. We integrate with tools like guard corps, we provide our flow logs a source of data and they can provide rural recommendations and policy recommendations for customers around. We're building integrations around steve and soar with tools like Splunk and elastic elastic search that will allow net hops and sec ops teams to visualize, train and manage the services delivered by the C X 10-K. And the other aspect of ecosystem from a security standpoint is clearly how do I get policy from these traditional appliances and enforce them on this next generation architecture that you've built that can enable state health services. So we're building integrations with tools like toughen analgesic third party sources of policy that we can ingest and enforcing the infrastructure allowing you to gradually migrate to this new architecture over time >>it's really a cloud native switch, you solve people's problems pain points but yet positioned for growth. I mean it sounds that's my takeaway. But I gotta ask you guys both what's the takeaway for the customers because it's not that simple for that. We have a complicated >>Environment. I think, I think it's really simple every 10 years or so. We see major evolutions in the data center in the switching environment. We do believe we've created a new category with the distributed services, distributed services, switch, delivering cloud scale distribute services where the local where the workloads were side greatly simplifying network security provisions and operations with the Yoruba fabric composer while improving security posture and the TCO. But that's not all folks. It's a journey. Right. >>Yeah, it's absolutely a journey. And this is the first step in in a long journey with a great partner like Aruba, there's other platforms, 100 or four gig hardware platforms we're looking at and then there's additional services that we can enable over time allowing customers to drive even more Tco value out of the platform and the architectural services like encryption for securing the cloud on ramp services like state for load balancing to deploy east west in the data center and you know, holistically that's that's the goal, deliver value for customers and we believe we have an architecture and a platform and this is the first step in a long journey. It's >>a great way. I just ask one final final question for both of you. As product leaders, you've got to be excited having a category creation product here in this market, this big wave. What's what's your thoughts? >>Yeah, exactly. Right. It doesn't happen that often. And so we're all in, it's it's exciting to be able to work with a great team like Sandu and chain here. And so we're really excited about this launch. >>Yeah, it's awesome. The team is great. It's a great partnership between and santo and Aruba and you know, we we look forward to delivering value for john customers. >>Thank you both for sharing under the hood and more details on the product. Thanks for coming on. >>Thank you. Okay, >>the next evolution of switching, I'm john furrier here with the power of An HP, Aruba and Pensando, changing the game the way customers scale up in the cloud and networking. Thanks for watching. Mhm.

(upbeat music) >> Welcome back to the cubes coverage of the power of N and the collaborations between HPE Aruba and Pensando. Where the two companies are setting out to create a new category in network switching. Joining me now is Simon McCormack, who looks after product management at HPE Aruba. Welcome Simon. Good to see you. >> Good morning. Thanks for having me today. >> You're very welcome. So Simon, we've been talking all day about the Aruba switching fabric that you're bringing to market embedding the Pensando technology. Can you tell us what's the primary value prop that AFC brings to its customers? >> Sure. Aruba fabric composer. This is orchestration and management for the Aruba wide switching platform, primarily for data centers. It does a lot of things. I'll give you three key ones just to get a feel for it. So in data center, networking, there's a lot of complex technologies. I'm afraid to say, lease spines, overlays, underlays, EDPs, OSPs PGP. I can throw out loads of acronyms for you. Fabric composer can really simplify through a bunch of intent based workflows, the deployment and management of these fabrics. We can do it either interactively through a UI or fully API driven if you want to. So it really takes away a lot of the complexity there makes it dead easy to deploy these and that scale. Number two, in a data center, a lot of compute storage hypervisor technologies that you have to interact with with your network products. So in fabric composer, we built an integration layer into it, that interacts with other orchestrators. V-Center, VMware Vcenter is a good example of that. So an operator may make changes to V-Center that affect the network. You don't want to call the network team for it. Fabric composer can automate that network side configuration on the Aruba switch, making your day to operations, insertion of new services, much more simpler. And then finally, number three, because we've got all these capabilities I've just told you about. We actually have a great typology model that we build from it. And we can use that to visualize this virtual to physical network layer that is really powerful for troubleshooting the environment. >> Great, so three things actually for right simplify, you integrate and automate, and it's kind of two and two way I'm going to call it and then the visualization piece for troubleshooting. Awesome. What about security policy? How are you thinking about that in this release? >> Yeah, so that's where in this release, we're extending it with the Persando PSM technologies embedded into the 10 K. Now we can use Aruba fabric composer to actually orchestrate the policy in addition to the network. So you think about today, fabric poser does network primarily you bring policy into it, you've got one single pane of glass now that doesn't network in policy, it actually provides a really powerful capabilities for operators of different skill sets to be able to manage and orchestrate this environment. >> What about the sort of operational model as it pertains to the network and security, I'm interested in how flexible that is. Like for instance, if a customer wants to use their own tooling or operational frameworks or frameworks so what if they want to leverage multi-vendor fabrics like a third-party spine? How do you deal with all of that? >> Yeah, and I think that's, we built that into essentially the DNA of this technology is that where we're expecting to often go into brownfield environments where they've already got best practices for security and networking. They've already got networking vendors there. The 10 K the very powerful lease switch on its own. We want those lease switches to go in all of these different environments, not just Greenfield. It's really great for Greenfield. And I'm going to explain this a little bit in a few ways. First of all, the technology we have with Aruba fabric composer and Pensando PSM, you can do a pure operational split between them. SecOps, NetOps a lot of customers that's how they deal with it. They've got the security operations team network operations team. If they're split, you can use the two tools and make a fantastic product using that. However, they're not split and you've got a single policy for it. You can use Aruba fabric composer to do both of them. So you've got the options there and we fully embrace that in the architecture of what we built. This extends to multiple layers for the technology build as well. Again, as I said, the 10 K's at Leafs, which it can connect to third-party spines. So you could use fabric composer to manage this lead switch and the policy you could use fabric composer just to manage the lease switch and connect and inter-operate the Leaf's to a spine, or you can do a full Aruba solution, the full Rube Leaf spine and use that operating model. There's one final thing in this area is fabri Composers are a UI based orchestrator, API driven. Some customers love it. Some customers that love their CLIs, we fully embrace the operational model where customers still use their own API APIs and their own CLIs. So the customer may be using Ansible to automate through API. They can still use that directly to the switch and they can use it to AFC and mix the two. If you talk directly to a switch and change it, fabric composer detects it and basically sinks its configuration together. So we can insert all or any part of this solution into existing or new Networks. >> Yeah, that's nice. Right? Because I mean, so there's the network hard guys, they want that CLI access, so you you're accommodating that. And then as well, being able to bring those SecOps view and the NetOps view together is important because let's face it. A lot of organizations, especially some of the smaller ones, they don't actually have a full blown SecOps team, that's really the NetOps responsibility. And so that's nice flexibility. You can handle both worlds. How about segmentation? When a customer is telling you that they want regarding segmentation and how are you guys approaching that? >> Yeah, I mean, it's actually a key feature of what we're doing in this area. Now the land segmentation generates it's kind of a wide area with many layers to it and we could talk about it for hours. So let me talk briefly about some of the areas we're going into when it comes to the segmentation, particularly the compute-virtual type environment. So when you, you're typically creating policies in today's world, current policies based on addresses, IP addresses, or Mac addresses. You have lots of rules and big lists of addresses. It's really annoying. Customers generally don't talk in addresses. They talk in machines and names of machines. So if you think about what I've already told you with a fabric composer. We've already got these hooks in the compute hypervisor layer. So what do we know about the virtual machines? So it's undoubtedly a natural extension now for you to be able to create these policies based on the machines. So there's a scale problem in policy distribution, at two levels, at the top and the bottom. The top level is your chronic create the policy. You've got this massive distribution addresses. So fabric composer can really help you by allowing you to then create these groups, sensible groups, using the names. Then you can distribute the 10 K solution with the distributed architecture of the bottom layer, now allows us to distribute these policies and rules across your racks within your data center. So it scales really well, but that's one level I've described. You know, you're creating groups of machines with names, so it's easier to define it, but there's also an automation angle to this as well. You might not want to even create it interactively. A lot of customers with VMware Vcenter for example, are tagging the virtual machines. So the tag tells you a group information. Again, fabric composer can already get the tag within its database model. So we can use the tag now either to fully automate or use as a hint to creating these groups. So now I've got a really simple way to basically just categorize my machines into the groups so that now I can push rules down onto the, and there's one, final thing that I just want to tell you before we move on, There's often a zero trust model you want to do in the data center for segmentation, meaning I've got two virtual machines on the same network on the same host. Normally they can talk to each other, nothing's stopping them, but sometimes you want to isolate even those two. You can do it in products like V-Center with PV land technologies. A bit cumbersome to configure on the VSphere side, you've got to match it with what you see on the switch side. It's one of those, that's a real headache, unless you've got an orchestrator to do it. So fabric composer could basically orchestrate this isolated solution. You're now grouping the machines and you're saying they're isolated. We can do the smarts and both of the center side and the switch side, get them in sync, get it all configured. And now the masses can start to do this kind of segmentation at scale. >> Got it. Thank you Simon. Can the fabric composer kind of be used as the primary prism for troubleshooting? How do you handle troubleshooting and this art combined architecture? Who, who do I call when there's a problem? How do you approach that? >> Well, definitely start by calling me or actually call my product first, so fabric composer. If you're using it, use that as the front tool for what you're going to try and figure out what's going on. There is a global health dashboard. It encompasses networking security policy across the solution, across the fabric. So that's your tells you what's going on immediately, down to port stats on what's happening within the physical topology of the network down to the end to end view, we have in terms of policy connectivity between machines. So fabric composer is your first port of call, but we built a solution here that we don't want to hide the pieces underneath it. Any networking guy knows when they're deep troubleshooting networking stuff, they're going to end up at the switch. So you started the orchestrator, but sometimes in the deep troubleshooting, not day-to-day hopefully, you'll go to the switch and you'll troubleshoot that way. We've got the same technology here with the policy, with the firewall rules, with Pensando PSM, we still fully embrace. For deep troubleshooting, go to Pensando PSM. They have really advanced tools in their bag of tricks in the product to give you advanced troubleshooting down to the policy layer that they have a really powerful firewall log capability, where you can search and sort and see exactly what role is allowing or stopping any traffic going through the environment. And the two orchestrated model, we really like it because it scales really well. It allows fabric composer to remain lightweight, PSM focused on the policy orchestration bit. But again, if you're the customer that wants to do single pane of glass, use fabric composer for the standard day-to-day stuff. But you've got the tools there to do the advanced troubleshooting between the different elements that we have within the Pensando and the Aruber tools. >> Yeah, really well thought out, you get the simplification angle nailed, the integration automation we talked about that, the visualization and a topology map, zero trust, and then remediation with deepened spend inspection. Simon, thanks so much for taking us through the announcements, really appreciate your insights and time today. >> Thank you very much. >> You're welcome. Okay. Keep it right there. This is Dave Vellante for theCUBE. More content from the HPE Aruba Pensando announcements, coming right up. (soft music)