>> Announcer: Live from Las Vegas, it's the Cube, covering HPE Discover 2017. Brought to you by Hewlett Packard Enterprise. (techno music) >> Okay, welcome back everyone. We are here live in Las Vegas for the Cube's exclusive three-day coverage, we're on day two of HPE, Hewlett Packard Enterprise Discover 2017. I'm John Furrier, my cohost Dave Vellante. Our next guest is Susan Blocher, Vice President of Marketing, Data Center Infrastructure Group, part of Hewlett Packard Enterprise. Welcome back to the Cube, great to see you. >> Great to see you both again. >> So a lot of great stuff, so I want to just going to, a lot of buzz, Gen-10, a lot of new capabilities. Let's get right into it. Hard news, what's the update? What's going down at the show? >> We made the magic happen for this discoverer. It's just really exciting. So, hard news, we really focused on three areas for our customers: new levels of agility across their hybrid IT infrastructure, which means automation, better performance enhancements, taking things that used to be very manual and making them run sort of seamlessly, number one. Number two, security, and we're talking breakthrough security. So this is where we've been able to leverage some unique opportunities like the fact that we build our own silicane to put a silicane root of trust, or an immutable fingerprint, right into our silicane that can never be changed. That fingerprint will not let infected firmware startup. No matter, you know, as long as the firmware is the right firmware, it'll boot up seamlessly. If it's in any way been compromised you will, it will not let that server boot up. Super secure infrastructure. Last but not least, our customers were telling us economic control. We need economic control. We need cloud-like economics. We need pay-as-you-go. We need the ability to get capacity on demand. Those are the things that we really innovated on for this year. >> One of the things that's coming out, we had Bob Moran on the security thing. >> Yeah. >> And James Morrison >> Yes. >> I want to call him Jim Morrison >> Oh, exciting. >> I used to be >> I know. >> a big Doors fan. >> Yeah. >> I respect his name, I'm sure he gets that all the time. >> Yeah. The security on the silicane >> Yeah. >> is interesting to me because now you're seeing things like block changes, immutable environments wherevpeople have this trust relationship. That really hits the ransomeware side of things really in a big way. >> Susan: Yes. >> What else is that hitting? That is, to me, the big news, is that, is the security at the server-level because there's no perimeter anymore in this cloud-like environment, so this is kind of a cool way, explain more, just take minute to talk about the security piece because I think to me that's game-changer. >> It's super fascinating, and you know, I'm quoting somebody else, so I'm blatantly stealing somebody's line, but I was reading an article where somebody said firmware is a cesspool of Trojan horse opportunity for cyber attackers, and that took me aback because I was like, Boy, those are some strong words there, but really with all of the investment that companies have made over the years in data security, application security, network security, no one was focusing on the servers, and frankly, there's a million lines of code, and I'm sure Bob said that, there's a million lines of code booting up to get your servers up and running that no one has protected up until now. And so, we recognize about two years ago, that this was a huge threat, and increasing everyday, and boy, two years later, we're in the nick of time, to give customers really the peaace of mind of that security. >> One of the things that Wikibon just put out in terms of reports on research that I find fascinating that ties into this trend that I want to get your reaction on is, I think they're the only research firm that put this out actually, is they actually size the true private cloud market at about 260 billion, and that's not including the hybrid piece. That means, on-prem, cloud-like capabilities for on-premise data centers, which means, hey, that's not really going away, so it points to that narrative that, oh, data centers are moving to the cloud, so that's kind of probably not going to happen any time soon, but the cloud-like capabilities are there. But one of the interesting stats is that, is billions of dollars in cost-shift from labor, to hire differentiated, higher yield, or differentiated stuff inside the organization. So IT's not getting smaller, it's getting changing. >> Susan: That's right. >> So, how are you guys taking the Gen-10 and other things, and helping customers abstract away those tasks? >> Yeah, exactly. So look, all of our customers are really doing hybrid IT now, and so they're doing some things on-premise, they're doing some things off-premise, and frankly, it makes sense. But there's a tremendous amount of compromises that they have to make on both sides of the coin, and so what we've been talking about, a new compute experience, and that's really what we mean. It's not saying that you should have everything on-premise, or that you should move everything to the cloud. It's really saying, how do we give you the best end to end experience across agility, security, and economic control, so that the trade-offs that you're making, are not trade-offs on the pros or cons of those side loads of IT, but really looking at it from a what kind of business outcomes do I need to drive, and that's how I make my decisions. >> So, if you go back to around 2010, John, we were talking the Cube about a couple of observations. And it sort of coincided with the ascendancy of the public cloud. We said that the hyper-scale guys will spend time, engineering time, to save money, and then automate stuff, but the Enterprise guys, they'll spend money to save time. They don't have all of those engineering resources and we talked about that for a while, and it kind of got old and sort of boring. Fast-forward to 2017, and that's exactly what happened is vendors have put in a lot of effort to create cloud-like capabilities, and to John's point, is you're seeing a shift in staffing away from undifferentiated stuff, so talk about what that means for the data center infrastructure group, sort of how you position and how you talk to customers and message them about your role and how you add value. >> Yeah, absolutely. So look, first of all, we don't talk about just data center infrastructure. I think that's really where it starts because frankly, customers are talking about their data, they're talking about their applications, they're talking about how to bring intelligence to their hybrid IT experience, and so what we're talking to them about, is really how do we bring that together for them? We're talking about software-defined intelligence, how we're leveraging HPE One View to automate the deployment of applications across what could be a complex apology, but doing it absolutely in an automated seamless way. We're talking about how we're taking iLo and building the security in, but we're also doing things like intelligence system tuning where we're partnering with Intel and really figuring out how to take what is the Intel turbo-boost mode, from their processors, and make it even better. And so a lot of applications can't take advantage of the turbo-boost mode because there's a bit of when you hit that high frequency, you get a little bit of jitter, and that jitter creates latency, and so a lot of applications like core banking, video streaming, high frequency trading, they can't use turbo-mode because of that jitter that creates latency. We've been able to figure out, partnering with Intel, how to dampen a little bit of that speed, but still get turbo-mood and eliminate that jitter, so no latency. For the first time, these applications have been able to take advantage of turbo-mode. And what we figured out is even though we dampened it a little bit, they actually perform better with that little bit of dampening than they would've if we had shot them up with full turbo mode, right? So super exciting innovations with that. >> Sounds like Pied Piper. (laughter) >> But this is the kind of innovation that's going on in the systems world, and another observation we've seen on the Cube is, we go to a lot of events, is that systems is back. There's kind of an under current going on in the industry where hardware and operating systems folks are now part of big transformations, whether it's hyper-scale or in-service providor and Enterprise, so how are you guys looking at the compute differently if the notion of a server is shifting, and they're maybe consuming IT differently, where the channel partner might become a provider, and all these things are going on, how do you guys look at this new style of computer, our Meg says the changing landscape of compute. >> The changing landscape. It's all about really understanding our customers, and who they are, and how we can look at their unique needs and then segment our value and our portfolio toward them, so you talked about hyper-scale users, like service providers, cloud service providers, small and medium sized businesses, Enterprise customers, Telco environments, high-performance computing, super computing. What we realize is that one size does not fit all, and that's really what it comes down to, and that's one of the trade-offs of the public cloud environment, there's lots of good things about public cloud, but one of the trade-offs is it's kind of commodity hardware and one size fits all, but if you're trying to do any kind of mission critical applications, like I said, high frequency trading, you need super computing capabilities, you need deep analytics, machine-learning, whatever the case might be, it's not... You really need to specialize the infrastructure, and HPE is right there working with our customers regardless of their needs and their segments, we've got the solutions that will help them do that. >> So one of the things I'm inferring from some of your comments, I want to ask you about marketing. I always struggle with marketing. (laughter) You're shifting the message from product, product, product to business impact. >> Susan: Yes! >> Okay, that's clear. What else is working in marketing these days? It's never one silver bullet, but there's belly to belly, there's events like this, there's obviously old-school email marketing, there's social media. What are you finding as a marketing problem? >> We talk a lot about digital transformation for our customers, but digital transformation has come to marketing, so that's the biggest thing. We have made a huge shift at Hewlett Packard Enterprise in digital marketing. So everything that we're doing, even an event like this, which is physical, but it used to be kind of a one-off. We do all this prep, and then the week would go by, and it would disappear, and that would be the end of it. We're learning to build snackable content assets that have life after life after life, we're really embracing the social media, we've built a whole new digital marketing platform, we've shifted from what I would call traditional demand generation into really reaching our customers through digital marketing in every country globally. Huge, amazing metamorphosis, and frankly, with the announcement of the new HPE compute experience, and the Gen-10 platform, and the world's most secure industry-standard servers, it is the perfect timing of bringing all of this incredible innovation of technology to market at the same time that we're innovating around marketing, so the next 12 months, it's going to be super exciting. >> Eating your own innovations, if it were. >> That's right, that's right. >> Congratulations on the Gen-10 launch, and all the great goodness you guys got going on the security thing, a big deal. >> A big deal. >> Looking forward to following up on that further after the show, to keep it going. Certainly, there's digital aspects here in the Cube will be available on Youtube.com, slash and the name of course, the Cube Gems and highlights, all available. Thanks so much for joining us on the Cube, really appreciate it, more live coverage from HP Discover 2017. After this short break, stay with us. I'm John Furrier with my co-host Dave Vellante. We'll be right back. (techno music)