>> Announcer: From around the globe it's theCUBE with digital coverage of HPE GreenLake Day made possible by Hewlett Packard Enterprise. >> Welcome everybody to this spotlight session here at GreenLake Day and we're going to dig into high-performance computing. Let me first bring in Pete Ungaro who's the GM for HPC and Mission Critical Solutions at Hewlett Packard Enterprise. And then we're going to pivot to Addison Snell, who's the CEO of research firm Intersect360. So Pete started with you welcome and really a pleasure to have you here. I want to first start off by asking you what are the key trends that you see in the HPC and super computing space. And I really appreciate if you could talk about how customer consumption patterns are changing. >> Yeah, appreciate that Dave and thanks for having me. I think the biggest thing that we're seeing is just the massive growth of data. And as we get larger and larger data sets larger and larger models happen and we're having more and more new ways to compute on that data. So new algorithms like AI would be a great example of that. And as people are starting to see this, especially as they're going through digital transformations, more and more people I believe can take advantage of HPC but maybe don't know how and don't know how to get started. And so they're looking for how to get going into this environment. And many customers that are long-time HPC customers just consume it on their own data centers, they have that capability but many don't. And so they're looking at how can I do this? Do I need to build up that capability myself? Do I go to the Cloud? What about my data and where that resides? So there's a lot of things that are going into thinking through how do I start to take advantage of this new infrastructure? >> Excellent, I mean, we all know HPC workloads. You're talking about fording research and discovery for some of the toughest and most complex problems particularly those that are affecting society. So I'm interested in your thoughts on how you see GreenLake helping in these endeavors specifically. >> Yeah, one of the most exciting things about HPC is just the impact that it has. Everywhere from building safer cars and airplanes to looking at climate change to finding new vaccines for things like COVID that we're all dealing with right now. So one of the biggest things is how do we take advantage of that and use that to benefit society overall. And as we think about implementing HPC, how do we get started and then how do we grow and scale as we get more and more capabilities. So that's the biggest things that we're seeing on that front. >> Yeah, okay, so just about a year ago you guys launched the GreenLake initiative and the whole complete focus on as a service. So I'm curious as to how the new GreenLake services the HPC services specifically as it relates to GreenLake, how do they fit into HP's overall high-performance computing portfolio and the strategy? >> Yeah, great question. GreenLake is a new consumption model for us. So it's a very exciting. We keep our entire HPC portfolio that we have today but extend it with GreenLake and offer customers expanded consumption choices. So customers that potentially are dealing with the growth of their data or they're moving to digital transformation applications, they can use GreenLake just easily scale up from workstations to manage their system costs or operational costs or if they don't have staff to expand their environment, GreenLake provides all of that in a managed infrastructure for them. So if they're going from like a pilot environment, I've been to a production environment over time, GreenLake enables them to do that very simply and easily without having to have all that internal infrastructure people, computer data centers, et cetera, GreenLake provides all that for them. So they can have a turnkey solution for HPC. >> So a lot easier entry strategy is a key word that you use there was choice though. So basically you're providing optionality, you're not necessarily forcing them into a particular model, is that correct? >> Yeah, 100% Dave. What we want to do is just expand the choices so customers can buy and acquire and use that technology to their advantages. Whether they're large or small, whether they're a startup or a fortune 500 company, whether they have their own data centers or they want to use a colo facility, whether they have their own staff or not. We want to just provide them the opportunity to take advantage of this leading edge resource. >> Very interesting, Pete, I really appreciate the perspectives that you guys are bringing to the market. I mean, it seems to me it's going to really accelerate broader adoption of high-performance computing to the masses, really giving them an easier entry point. I want to bring in now Addison Snell to the discussion. Addison, he's a CEO, as I said of Intersect360 which in my view is the world's leading market research company focused on HPC. Addison you've been following this space for a while. You're an expert, you've seen a lot of changes over the years. What do you see as the critical aspects in the market specifically as it relates toward this as a service delivery that we were just discussing with Pete? And I wonder if you could sort of work in there the benefits in terms of in your view how it's going to affect HPC usage broadly. >> Yeah, good morning Dave, and thanks very much for having me. Pete it's great to see you again. So we've been tracking a lot of these utility computing models in high-performance computing for years. Particularly as most of the usage by revenue is actually by commercial endeavors using high-performance computing for their R and D and engineering projects and the like. And cloud computing has been a major portion of that and has the highest growth rate in the market right now where we're seeing this double digit growth that accounted for about $1.4 billion of the high-performance computing industry last year. But the bigger trend and which makes GreenLake really interesting is that we saw an additional about a billion dollars worth of spending outside what was directly measured in the cloud portion of the market in areas that we deemed to be cloud-like which were as a service types of contracts that were still utility computing, but they might be under a software as a service portion of a budget under software or some other managed services type of contract that the user wasn't reporting directly as cloud but was certainly influenced by utility computing. And I think that's going to be a really dominant portion of the market going forward when we look at a growth rate and where the market's been evolving. >> So that's interesting. I mean, basically you're saying this utility model is not brand new, we've seen that for years. Cloud was obviously a catalyst that gave that a boost. What is new you're saying is, and I'll say it this way. I'd love to get your independent perspective on this is sort of the definition of cloud is expanding where we people always say, it's not a place, it's an experience and I couldn't agree more. But I wonder if you could give us your independent perspective on that, both on the thoughts of what I just said but also how would you rate HPE position in this market? >> Well, you're right absolutely that the definition of cloud is expanding. And that's a challenge when we run our surveys that we try to be pedantic in a sense and define exactly what we're talking about. And that's how we're able to measure both the direct usage of a typical public cloud but also a more flexible notion of as a service. Now you asked about HPE in particular and that's extremely relevant, not only with GreenLake, but with their broader presence in high-performance computing. HPE is the number one provider of systems for high-performance computing worldwide. And that's largely based on the breadth of HPE's offerings in addition to their performance at various segments. So picking up a lot of the commercial market with our HPE Apollo Gen10 plus, they hit a lot of big memory configurations with the Superdome Flex and scale up to some of the most powerful supercomputers in the world with the HPE Cray EX platforms that go into some of the leading national labs. Now GreenLake gives them an opportunity to offer this kind of flexibility to customers rather than committing all at once to a particular purchase price. But if you want to do position those on a utility computing basis, pay for them as a service without committing to a particular public cloud, I think that's an interesting role for GreenLake to play in the market. >> Yeah, yeah it's interesting. I mean, earlier this year we celebrated Exascale Day with the support from HPE and it really is all about a community and an ecosystem. Is a lot of comradery going on in the space that you guys are deep into. Addison, it says we can wrap what should observe as expect in this HPC market, in this space over the next few years? >> Yeah, that's a great question what to expect because if 2020 has taught us anything it's the hazards of forecasting where we think the market is going. Like when we put out a market forecast, we tend not to look at huge things like unexpected pandemics or wars but it's relevant to the topic here. Because as I said, we were already forecasting cloud and as a service models growing. Anytime you get into uncertainty where it becomes less easy to plan for where you want to be in two years, three years, five years, that model speaks well to things that are cloud or as a service to do very well flexibly. And therefore, when we look at the market and plan out where we think it is in 2020, 2021, anything that accelerates uncertainty actually is going to increase the need for something like GreenLake or an as a service or cloud type of environment. So we're expecting those sorts of deployments to come in over and above where we were already previously expected them in 2020, 2021. Because as a service deals well with uncertainty and that's just the world we've been in recently. >> I think those are great comments and a really good framework. And we've seen this with the pandemic, the pace at which the technology industry in particular and of course HPE specifically have responded to support that. Your point about agility and flexibility being crucial. And I'll go back to something earlier that Pete said around the data, the sooner we can get to the data to analyze things, whether it's compressing the time to a vaccine or pivoting our businesses, the better off we are. So I want to thank Pete and Addison for your perspectives today. Really great stuff, guys, thank you. >> Yeah, thank you. >> Thank you. >> All right, keep it right there for more great insights and content. You're watching GreenLake Day. (ambient music)