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

>> Announcer: Live from Madrid, Spain it's theCUBE. Covering HPE Discover Madrid 2017. Brought to you by Hewlett Packard Enterprise. >> We're back in Madrid everybody. This is theCUBE, the leader in live tech coverage. My name is Dave Vallante and I'm here with my co-host Peter Burris. This is day one of HPE Discover Madrid. Parvesh Sethi is here, he's the Senior Vice President and General Manager of the global client services at HPE Point Next. Parvesh thanks for very much for coming back on theCUBE. >> Good to be here. >> Dave: Last time we saw you, you were 30 days into the job. >> That's right. >> Maybe 45 days. So how's the first six, seven months been? >> It's been busy. It's actually been very good. I administered the transformation change that's taking place within the company. It's actually been really good to also working with the clients on the hybrid IT journey side of the house. And since last we spoke, we also did the CTP acquisition, which has been very well received as well. >> Well I love it, when you guys go and talk about transformations to customers. We're experts. >> Parvesh: Yes. >> We live this. >> Parvesh: Live this everyday. >> Does that enter into the discussions with your customers? It must right? >> Yeah I think it gives us a lot of credibility. Especially when you take a look at the journey they're on. And we talk a lot about hybrid IT today, making it simple. And one of the things we always talk to them about is that hybrid IT is not just infrastructure cloud. You really have to take a look at the full spectrum of the services that had to be delivered. It could be as a service providers, could be subscribing to a platform, and hosting it on-prem, off-prem, private dedicated infrastructure, or public cloud. Just a mix of those and being able to decide as to what are the characteristics that you should look at, and what will decide as to what goes into public cloud, private cloud, or where should those services come from. >> What do you tell the skeptics? You know the, why should I do hybrid cloud? Why don't I just put everything in the cloud? Do you get those questions, or is it more customers saying hey, help me with my hybrid problem? What's the-- >> Almost every single client meeting that I've been in. Everyone acknowledges the world is hybrid IT. And I have not met a single client yet who says all of their workloads are going into public cloud. I think a lot of it depends on what they want to achieve. If they want a lot of elasticity and if they need SLAs, or if they want to bring the workload back in, security compliance or organizational cultural governance processes, performance characteristics. A lot of those factors come into play as to deciding what goes where. And I think almost everyone says that it's never going to be 100% this or that just based on the characteristics that would really dictate where the workload or the application says. >> And that's the characteristics of the data. Is that fair? 'Cause it used to be, oh security. And you know public cloud, gives you fine security. Maybe not exactly the way you want it done, but is it more the realization about, you just can't move all the data into the cloud? Or you can't force your business into the cloud? What are customers saying there? >> I think part of it also comes into, for example, governance as well. If there's HIPAA compliance workloads as an example, that may dictate your decision in a certain way. But you're right though, I mean security used to be one of the big concerns, but it's more about now a person has decided they want to move a certain workload over, it's really more about how do you get them comfortable, how do you de-risk that move? And this is where thinking through the journey roadmap really becomes critical. But just because of that one aspect, it's not necessarily stopping people from moving, but it's really baking that into the design criteria as to how you move it. >> Well while we're on security, I mean, in the last five years it's obviously become a board level topic. People have I think come to the recognition. Maybe the recognition, maybe the spending hasn't shifted, but the mindset's shifted that we can't just create a moat, you know, they're gonna get in. Once they get in we have to respond. We need analytics and response mechanisms and so. How are they coming to you for help? What are they asking you for, and how are you helping? >> So I think it certainly comes into more into place can not be an afterthought. It's really more about security in and the governance has to be kind of baked in from the front end of it. So everything that we do, whether it's any solution that we're doing from IoT perspective all the way to the hybrid IT, from an architecture blueprint perspective we have made sure the security's front and center of everyone of those designs as well as the discussion criteria with the client. And so when you start looking at it's not about security partial assessment. It's also kind of looking at designing security from a, you know, architecture blueprint perspective. And making sure that if somebody's talking about hybrid IT architecture or an IoT use case, that security's front and center of the design criteria. >> If you think about the challenges that your sales, well let's step back. If you think about the challenges that everybody has at conceiving of how best to associate data, workload, and cloud implementation. Hybrid, on-premise, off-premise, wherever it is. There are, you have to have a common framework, what used to be called a computing model. A way of thinking of how you address the problem. That your sales people has to have, your support people have to have, you have to have, your customer has to have. Are there like two or three things that you're telling your people to look forward, or look for and working with their customers to help provide those clues. So crucial to getting everybody on the same page early as to where workloads are gonna end up. Where data is gonna end up. >> That's a great question, and one of the things that we're making sure that our folks are not just talking about the hardware piece of it. It's really more about before the hardware discussion takes place, making sure that we completely align on the workload strategy. As part of the workload strategy, you know we will do workshops, and we'll make sure that we totally understand in terms of what is it they're trying to accomplish in terms of the workload migrations. And before we even get to the migration topic, we really go through this criteria in terms of assessing the workloads. Which workloads are more suited to go into cloud environment. And in areas which we may need to re-architect the application or re-write it. We also kind of put those into a specific category and take a look at making sure that is the performance criteria more, is it security is it more about the TCO, and more and more you're starting to see it's not really a brokerage discussion. It's really more of strategic sourcing discussion because you're more and more are starting to talk about what is the best source to get the service from. Because there's no shortage of choices that they have today where they can provide these services from. So it's really more of about understanding what they're trying to achieve. And then understanding the sourcing policy. Understanding the alignment between the IT and the governance piece of it, the whole business side of it, and the IT side of it. And then it's really more about the supply chain management. You heard about One'Sphere today. But it's really more about how do you take this complexity out of the hybrid IT environment, and making sure that you can provide the automation and that capability to provide it as easy of environment for them to have a single plane of glass. So those are the key pieces of the framework that we try to make sure everyone is on same page. >> You mentioned cloud technology partners. We heard about One'Sphere today, that's obviously the CTP is part of that announcement. Small company, but very high quality customer base. It's very specialized. Take us through the rationale for the acquisition, kind of what the value is to your customers, and where it's headed. >> I think last time when we spoke we talked about our overall strategy. One of the key pillars is really around making hybrid IT simple. And we know when we talk about hybrid IT it cannot be just the on-prem part of the storyboard. You have to talk about the public cloud side of it as well. And this is where the CTP acquisition comes into play to really plug a hole. I mean we had some capability in house, but not to the extent of what CTP brings to the table. I mean they are premiere partner to AWS, premiere partner to Google, silver partner to Microsoft Azure. And so having that kind of credibility and the recognition in the US and North America, certainly gives us more credibility with our customers talking about the hybrid IT story. And then taking that skillset, assets, and the IP, we want to take that and leverage of our channel community, as well as our install base, as well as of our capabilities in Europe as well Asia, and help scale that globally is really a way how we're gonna leverage this skillset and asset set. >> So we're in beautiful Madrid, Spain at the EMEA Discover. Cloud is a global phenomenon, but it's not uniform. From your perspective of providing services to customers that have global needs as well as local needs, take us through how Europe is different. Start from the observation that we've got North American cloud players, public cloud players, we've got Asian cloud players, we have not an obvious European cloud player. How is it different on a global basis, and what is HP doing to mass those differences, HPE doing, to mass those differences from your global and local customers. >> So I think one of the things you are finding here the need, and we talked about this earlier today, the need for as a consumption models. And you're seeing that the trend globally. And more and more people, more and more customers are talking about not wanting to necessarily own, but how do they pay for what they use. And so one of the things we do is from a framework perspective we've really deployed a very consistent framework, uniformed transformational framework, UTF. And we did apply for a patent for it as well. But the idea there is to leverage a common methodology, common framework to take a client through in terms of how to go about this cloud journey. Everyone is on a different place in terms of the cloud adoption, their digital transformation journey. But through the experiences that we have, I mean we do well over 10,000 engagements a year. Leveraging that IP, we have really built like full interconnected journey roadmaps. And so a client, you can take any client, whether a service provider or enterprise, they're somewhere on that journey roadmap. And they may be in a different place, but being able to talk to them, leveraging that common IP and say look, this is where you're at today, here's the roadmap that you can take to get to your desired end state. And that has really resonated with the clients. And if they truly don't want to own the infrastructure, and they just want to pay as you go, this is where the whole HPE, GreenLake announcements have really come into play. So I think those teams when you take a look at the performance characteristics, organization governance issues. Because one of the things that we find is 70% plus of the clients that we talk to, they have not been able to really maximize the full potential of what hybrid IT gives them. And one of the major hurdles we see, and doesn't matter whether you talk to a client in North America or EMEA or APJ. It's really the lack of focus on management of change. It's the organizational, the cultural barriers that get in the way. It's the competencies, the organizational processes that get in the way. So those are the pieces we want to make sure as part of the UTF framework, IT is just one of the principles. And of the other domains, management of change is one of the key elements that we see, which is common across all the client base that we talk to. >> When you go back to the early part of this decade, and you observe sort of the big, remember the big data meme it sort of exploded in 2010, 2011, 2012. It ended up being a very, complex of course, but also very services led, engagements because it was so complex. IoT is somewhat similar, it's very data oriented, it's very complex. So talk about services and the relationship with IoT, the opportunity for you and how you're helping add value to customers. >> Now that's a great question also Dave. I think when you take a look at the IoT. I think we're starting to get past that half cycle. And a lot players will talk about they got hundred plus proof of concepts going in their lab, but they just have not been able to bring it into the mainstream. And so one of the things we're talking to clients about is starting to move away from the terms like proof of concept. Focus on proof of value. Because at the end of the day, if you cannot help your line of business accelerate time to value, no matter how great of a concept you have, it's never going to see the day of light. So this is where the point next services really come into play with the whole advisory led motion because it's still very much a services led motion today. Working with the clients around how they can really help shorten the time to value. Accelerate time to value. And if we can take even one or two use cases they have in their labs today. And show them how they can get to 50, 60 million dollars of savings like one of the oil and gas customers we were just talking to. Same thing we see in the retail manufacturing. Is just taking some of the spoof points, and say this is how you can actually bring them into the mainstream, and make sure they also start to have the business alignment. That's one of the common things we hear from the CXOs here this week is the business alignment between the IT and the OT side if they're talking to the IoT use cases. Because without the business alignment, believe me you're not gonna be able to get the management of change that you're seeking to derive. >> So do you expect or are you seeing yet new business models. You were talking about the cost savings, but what about sort of the new business models emerging from those discussions and opportunities. >> Definitely I mean if you take a look at whether it's the hospitality suite, you know Kathy talked about main stage about even the retail experience that we're just starting to be very different. So when you look at the new value that's being created, you know a lot of us who travel to get here, when we check into the hotel, a number of places now, you can check in digitally, 24 hours in advanced. You never have to stand in line for a queue. Don't have to flash up your credit card because the hotel's have really now started to leverage the digital transformation where 24 hours in advanced you can check in online. They'll give you a digital key so on your phone when you walk into the hotel, as soon as you're within a threshold you get onto your wifi network and you see a personalized message. And it has also the directions to your room. And when you get to your room, you use the digital key to get in. Think about the possibilities it creates to launch new services for not just the hotel, but it's also affiliates, the partners for pushing specific targeted advertising offers while you're in Madrid here or some other place. So you're starting to see these new value creations even though behind the scenes you still have them integrate a lot of their digital critical business systems whether it's CRM, reservation systems, or smart buildings. You have to still make sure the security's in play. And so it is really you checking in, not someone else. As well as making sure the room is available. But it's really more focused on the business outcome. And this is one of the things that you're seeing even in a portfolio shift, it's no longer talking about some implementation services, integration services. When we sit down with a client it's really more focused around what outcome are we delivering. It's not talking about, look we can sell you x numbers of servers, or we can sell you devices. More about here's the business outcome that we'll deliver for you. And this is what you're gonna be able to do with that additional value creation. >> Do you mean I might be able to not have to wait in line a half hour when I check into a Las Vegas hotel in the future? >> Parvesh: Absolutely. >> Peter: No that will never happen. (laughing) >> No definitely, I mean you see improvements every single year. And hopefully, whether you walk into a retail shop, be able to experience differently walking from home into a branch store and what that experience will look like, it'll be very very different than what some of the people experience today. >> Lots of changes coming. All sort of based on the data, Parvesh thanks very much for coming on theCUBE, it was great to see you. >> Absolutely it's great to be here, thank you so much. >> You're welcome alright keep it right there everybody we'll be back with our next guest Dave Vallante for Peter Burris. This is theCUBE, we're live from HPE Discover Madrid 2017. (electronic music)