>>from around the globe. It's the Cube covering HP Discover. Virtual experience Brought to you by HP >>Everybody welcome back to the Cube's continuous coverage of Discover 2020. That virtual experience. The Cube has been been virtualized really excited to have Marissa Freeman here. She's the chief brand officer, Hewlett Packard Enterprise. And, of course, he joined by Jim Jackson. Who's the CMO of HP? Guys, Great to see you Wish we were face to face. But thanks so much for coming on the Cube. >>Great to be here. Hope that you and your family and your friends are safe and well, >>and we're back at you both. Jim, let me start with you. So, uh, this kind of got dumped on you with this pandemic. Different mindset. You have to do a bit flip to goto virtual you talk about some of the things that you focused in on some of the things you want to keep. And some of the things you knew you couldn't. And you had to do things differently. >>Yeah, You know, we pretty much had to rethink everything about this event platforms, how we thought about messaging, how we thought about content. Um audience acquisition demos, really everything. And for us, it really all boiled down to having a vision. And our vision was to bring the Discover experience, all that energy, the excitement that you get the in person event. We wanted to bring that to all of our customers and our partners and our team members around the world. So for us, it wasn't about virtualized discover. It was about bringing the Discover experience to a 12 inch screen. In many cases for our customers and our partners and our team members, I think another thing that was really eye opening for us. Waas thinking of opening up the aperture and thinking, Hey, we can now take this and drive. This is the true global events and we can reach people all over the world, reach customers and partners that can't come to discover because they can't physically come to the event. That was a couple of things that really we had to put a lot of thought into, and it was really exciting for us. I think one other thing is now customers, and how we think about their experience at the event became very, very important for us because you know, at an in person event, it's three days, and we can you know, there's a lot of things people can do, but you have three days of content, and then people move on for us. Now. Our customers might go through three weeks or three months, and we really needed to think about that experience in a very simple, seamless, easy way for them so that they could to consume the content digitally in a way that made the most sense for them. So a lot of new thinking for us. But we're really excited about the opportunities that virtual brings in that digital brings >>now immerse. So I gotta ask you so No, no meter boards at least know for a physical meter boards, you know, How did you think about continuing that branding in a virtual event? >>Well, it's, uh, it's really a beautiful experience when you look at the the intro of the platform that we're on. It's beautifully branded all the way throughout. The branding is really coming through, though, in the content, um, and in the people, So we always say, Jim and I always say every year, Gosh, if we could just have every estimate on every prospect come to discover they would see our brand come to life they would feel are our purpose. They would understand, just with a new and different energized and fully charged a company, we are they would get to meet Antonio and Security. And Liz and Jennifer Income are honored and Jim and feel for themselves, uh, the power of the company. And now everyone can So the brand really is coming to life through the people. I appreciate that you love the the beautiful graphics, and we work really hard. Um, I'm all of that stuff, Sure, but the real branding is in the content itself. So >>now, Jim asses. Well, you were kind of lucky in the sense that, you know, this show wasn't in March or April. You had some time. So to see what others were doing. And you saw early on when this thing first hit, there were some the missteps there, There's there, still are even. But So what do you What do you tell people that is really unique about the Discover virtual experience? >>Yeah, I think a couple things and you're right. We did have a little more runway, and that was to our advantage. But we feel like we've taken full advantage of it. I think the first is coming back to that global experience that I talked about. So we're delivering this on 10 different with translating into 10 different languages, and that makes it easy for people to consume our key content around the world. We're truly delivering our content on time zones that are very appropriate, or our customers and our partners again, all around the world, in different Geos, we're bringing in our geo MVS where they are now having geo lounges, um, specific addresses and other things locally that really enables us to have that local experience. But derive it is making it part of a global event. I think another thing, Dave and you've been Teoh Discover. But you've seen that amazing Discover Expo Hall that we have out there with, you know, literally thousands of people and lots of demos. We had to figure out How do we bring that to a a ah, digital or a virtual experience? And I think the teams have done just an amazing job here. So what we did is we have 61 demos, and this is part of really 150 sessions. But if you just think of demos, we're going to deliver these live over 1717 100 times the first week. That's really, really powerful. This is >>live, meaning >>somebody from HP, a subject matter expert, talking to our customers, answering questions in real time. So that's unique. I think another thing that we're doing is we're not stopping after the first week. The first week is going to be extremely powerful and we can't wait for it. And but, you know, we're gonna extend, if you will, the value we're gonna double click and follow on Wave focused on SMB. Focus on software and containers for more of a developer, audience, Cloud services and other things like that, as well as data and storage. And then finally, I'll say, You know, we're really excited about the great speakers that we have Marissa >>talks >>about. You know, Antonio Qwerty, Irv etcetera. But we've got some great outside speakers as well. Lewis Hamilton from Mercedes Formula 16 time Formula One champion Simone Biles, uh, who's Olympian and world champion, 25 medals. We've got Steve Kerr and they're going to be part of a panel talking about performing under pressure, and we're all doing that. But it's gonna be again a great story we've got, um, John Chambers is going to be joining Antonio and talking about what great companies do during a crisis and how they prepare to come out of this kind of a situation to deliver better solutions to their customers. Soledad O Brien, who is moderating, are women leaders in I t session, and this is one of our most powerful sessions. In fact, Marissa is part of that as well. So we're really excited about this, the amount of things that we were able to bring together. And of course, we also have our CEO Summit and our Global Partner Summit happening at the same time. So we've got a lot of things that we've been able to coordinate all of this and really think about the experience from a digital in a virtual expect perspective to make it great for our customers and our partners and our attendees. A >>lot of rich content layers. Yeah. So what if you could talk about that here here to help Sort of the cultural aspects of that. What it means to your customers, your clients, your employees and your just broader community. >>Well, you know, Dave one when covert first hit the United States, we We had a lot of social media out there, a lot of digital media out there. And even before it came to the United States, when Italy and China were really suffering, we gathered as a team and audited every piece of content that we had pulled all back in. I met daily Jim and I and Jennifer temples. Teams met daily to talk about what is our tone of voice? What are we saying? How are we helping our customers get through? This time we knew how difficult it was for us with business continuity, remote workforce, we needed to help our customers and let them know that we were at the ready right now to help. So we chose to speak through the voices of our leaders. Antonio did several blocks and videos, and we rallied and redid the website completely to be all about over response and how we had many solutions for our cost. Most implement immediately from $2 billion financing Teoh setting up remote workforces, too, doing WiFi in parking lots and turning ships into hospitals. It ran the gamut, Um, and so it was really important to us that we conveyed a message of here to help. Ultimately, we ended up doing a television commercial. Antonio's voice. It was a personal letter from Antonio to his fellows, business leaders and engineers and said, Look, we know what you're going through. We're going through it ourselves. We're here to help. Here's how and it's been really motivating and successful and joy and driving people to find out more about what HP could do to help. So >>I would just add >>to what >>Murtha said. She outlined it really well. But we have some great customer examples and great customer stories as well. They're very emotional talking about how customers really needed our help and our combination of technology. People really came together to enable them to get their businesses up and running, or to address a pain point or problem for their audiences. The first point you know, there's the concept of here to help with the recovery and then here to help with the transformation as well as they look to the future. >>So how are you guys thinking about just sort of growth marketing strategies, branding strategies not only for HP but in the spirit of helping customers in this post isolation economy. Merson. Maybe you could start start us off. >>Well, we we've been talking about how this crisis has brought the future forward, nor our doorsteps. So where our customers may have been on a digital transformation path and they were accelerating it. Now there's there's an impetus to do it right now. So whether you're in recovery, um, or whether you're one of the customers for whom this crisis created a surge of demand and you needed to scale way up, these are the moments of transformation that our company is. Is there to help you with Jim? Do you want to build on that? >>Now? I think you hit the highlights there, Marissa, you know, again for us, I think we wanted to just be authentic and true to who we are as a company. And, you know, our purpose is to advance the way people live and work. And I think we live that during this time and will continue to live that as we go forward. It it's really core to who we are. And what we saw is that many of our customers really valued the fact that when they needed us the most, we were there for them and we were there for them all around the world. And, um, you know, and our goal is to continue to do that and continue to delight them and to be the best transformation partner for the future. >>I mean, culturally, we obviously re observe all this stuff, but culturally, you kind of be kind of had a heads down approach to all of this. I mean, there was there was not a hint of ambulance chasing in what you got. How you guys approach this. So I mean, I think I think culturally that here to help message it seemed like a very strong roots in citizenship. Um, you know, And then, of course, with social uprising, respect for individuals that seemed to shine through. I don't know. I know versus deliberate or that's just again cultural. Maybe >>it's it's all of the above. You can't change who you are and we need at Hewlett Packard Enterprise are people who care about other people our purpose. As Jim said, Our purpose is to advance the way people live in or every one of us every day gets up and goes to work or goes to work at home at HP to do just that. That is who we are. And so it would be an authentic for I think, true to this crisis in any other way. >>I think I wanna make an observation and see if you guys to respond. So we always talk about technology disruptions. Mercy you mentioned about, you know, the future was put forward. I'm sure you've seen the wrecking ball. You know, the folks in the building, the executives very complacent. A digital transformation not in my day. And in the 19 wrecking bald covert 19 survey, you probably saw that Who's who's leading your digital transformation CEO CTO or Covert 19. But it's really now. I mean, if you're not digital, you're not doing business. So but my observation is that it seems like despite all this technology that global disruptions are going to probably have a bigger impact in this coming decade, whether it's pandemics of social upheaval, of natural disasters, etcetera. But technology can play a huge role in supporting us through those things. Jim, I wonder if you have any thoughts on that comment. >>I mean, I think it's it's a great question, you know, if you think about it, What what happened with the macro economy Cove? It It's been a catalyst for, I think, everybody to understand that they needed to really accelerate their digital transformation. And, more importantly, they need a partner who can help them on that journey as well. I mean, if you just look at what we're talking about here >>with >>this event, right, most of h p e. And, um, you know, our >>competitors to >>cancel their virtual events >>are canceled their physical >>events rather, and they're moving now to a digital event in any way. This is going to be the new normal for us, right? So I think as we go >>forward, we're gonna >>see this only continue to accelerate. And for us, you know, our edge to cloud platform as a service strategy plays really well to helping customers accelerate that digital transformation. And, you know, it just kind of comes back to what Marissa said. You know, here to help is very very HP in terms of it's authentic and it's here. We want to be here to help our customers in their biggest hour of need. And we're doing everything we can and will continue to do that for the future as well. >>Versus, you know, having done many, many discovers we've noticed over the last several years you guys made a much bigger emphasis on the sort of post discover which a lot of organizations don't have a big physical event, and it's sort of on to the next thing. And how do you see the post from a branding standpoint? Messaging, etcetera. How do you see taking advantage of that from a virtual standpoint? And what have you learned? >>Well, we've been on our own digital transformation journey, and, you know, through Jim's leadership, we have built a pretty serious digital engine, which allows us to have a personal relationship with the customer, meet them where they are on their terms. For example, with this platform, it's even using your now because we we actually will know what content would see what sessions, what demos someone interested in. Maybe they put it, you know, on their schedule, and then didn't get to do it. So we'll go back to them later and say, Hey, we saw that you wanted to do this. It's still here. Why don't you come and have a look and then watch to that We do sort of the Netflix engine, the been newsworthy playlist of If you like that, you like this. And if you like this, you like that and we bring them through the breadcrumbs all the way through. And it's a self directed journey, but we're there to help. And that is really the true power of digital is to have that interaction, that conversation with the customer and where they want to be and with what they want to learn and read about. We'll see. >>Yeah, And everything, of course, is instrumented gym. We'll give you the last word and you were involved, as was Marissa in sort of the new HP. The new branding and the whole purpose of that was really to get Hewlett Packard enterprise focus and really back to sort of the roots of innovation. And I wonder if you could comment on from a strategy standpoint, innovation and from a competitive standpoint, you know where you're at over the last several years, we've obviously transformed as a company and where you see your competitive posture going forward. >>Yeah, you know, for us, um, we're so excited about this event because this is a great opportunity for us to showcase progress against our edge to cloud platform as a service strategy, and we roll this out last year. It's differentiated. It's unique in the marketplace. It demonstrates the transformation happening across as a service and software at Hewlett Packard Enterprise. So we are a company in transition, aligned to what we feel, our companies, our customers, biggest pain points. And when you look at some of the acquisitions that we've made some of the organic investments that we've done, we're just very well positioned to deliver against, you know, some very unique pain points that our customers have. Plus, I think another thing is, at the end of the day, really, what our customers are saying is, help me take all this data and translate that data into insight and that insight into action. You're going to hear us talk about the age of insight and how we're really again unifying across edge the cloud to deliver that for our customers. Stone. We're excited for this event because you're going to hear a significant industry revealed, focused around cloud services around software and really a lot of the things that we've been talking about. And we're going to show a lot of progress as we continue on that journey. And then, you know, Murtha mentioned digital. I'm really excited about digital because that enables us to understand and learn and help our customers and deliver a better experience for them. And then finally, you know, huge opportunity for us. Two. Take this message out globally, you know? Ah, great opportunity for people all around the world who maybe haven't heard from HP for a while to see our message, to feel the new energy to see who we are to see. Uh, you know that we're doing some very interesting things that we can help them. So we're excited. There's a lot of energy right now inside the company, and, uh, we're ready to kick it off and get rolling here. >>Well, it's quite amazing. I mean, we started off 2020 with the gut punch, but the reality is, is that 20 twenties? A lot different than 20 pens. If it weren't for technology and companies like HP here to help center, you know, we would not be in such such good shape and good in quotes. But think about it. The technology is really helping his power through this. So Jim Morrison, Thanks so much for coming on the Cube. Thank you, HB. Everything you're doing for customers in the community. Really? Thank >>you for having us. Thank you for having me. Good to see you. >>Great to see you guys to and keep it right there. Everybody, this is Dave Volante for the Cube. Our continuous coverage of hpe discover virtual experience in 2020. We're right back right after this short break. >>Yeah, yeah, yeah, yeah.

(tech music) >> Announcer: Live from Madrid, Spain, it's the CUBE, covering HPE Discover Madrid 2017 brought to you by Hewlett Packard Enterprise. >> Welcome back to Madrid everybody this is the CUBE. The leader in live tech coverage. This is day one of our coverage of HPE Discover 2017. I'm Dave Vollante with my co-host Peter Burris. Jim Jackson is here, he's the senior vice president of the Enterprise Group at Hewlett Packard Enterprise. >> Happy to be here. Good to see you again and Jason Newton, vice president of global marketing at Hewlett Packard Enterprise. Guys, it wouldn't be a Discover without some big news, transitioning to Antonio. We're about to hear the key note but Jim, set up the week for us. The big news that we can expect. Show us a little leg. >> Yeah well first of all, thanks for having us here guys. We're really excited for this week. It's gonna be probably one of our biggest weeks of innovation. We've got a pretty amazing Discover lined up. So you're gonna see us talk about AI in the data center, so bringing predictive analytics from our Nimble acquisition it's called info site. We're extending that to three par so that really helps our customers predict and anticipate problems and solve them in advance. So that's really software-based leading with that. Another area is we're bringing consumption-based capabilities. A whole new suite of consumption offerings. We're branding it HPE Green Lake and it's really, think of purpose-built solutions for things like backup, SAP, data like environments but it's really outcomes as a service. So we're not able to give our customers the ability to have infrastructure as a service, and now outcomes as a service. And the other part of making hybrid IT simple that you're gonna hear about is how we're really helping our customers unify and manage that multi cloud environment. So applications are sitting in public clouds, private clouds, what we're hearing from our customers is, hey we need to be able to manage this a lot easier and have holistic ability to see all of that. So you're gonna see us talk about that on main stage as well. So new brands, a lot of innovation. We've also got some partnerships that we'll be rolling out later today. So a lot happening. >> Jason, you've spent a lot of time, sweat, toil, blood on branding. Obviously you're a big part of the branding exercise. Up leveling the messaging, we had you on two or three years ago, and you said, look, we're gonna change things. We're gonna shift the focus from product and widgets and really talk about what customers care about. How has that gone? Where are you at with that? It resonates extremely well with customers. In fact we just got out of a panel where we had four of our top customers, ABV, Dreamworks, IKEA and Nokia. And we just spent an hour just talking about their digital transformation journey and what they're all about. The room was packed. I think we had over 400 people who were in there. That's showing that we can be an innovation partner to those customers enabling them to share their stories at a venue like this is really powerful. >> We're becoming much more software and services led and it's really all about experiences. Providing that experience that our customers are looking for. >> Just follow up to that, so a lot of people think oh well HP, spun merge it's software business but you're leading with services and software. So help us clear that. >> We're doing a ton in software today. So if you just think of our software portfolio. We have HP 1V to manage our customers complete infrastructure estate, service storage and networking. We extended that last year with composability so HP and Synergy, we have over a thousand new customers since we announced that last year actually at this event. So we're seeing a lot of progress. Synergy enables our customers to really have one environment that can flex to the needs of multiple different applications so reduces over provisioning. AI, I talked about AI in the data center. So what we're doing with info site, that's software based, we're extending that to 3PAR and you'll see us extend that to other parts of the portfolio going forward. Nyara, and on the Aruba side of the house, software based. Aruba is very software centric and then of course, we'll be announcing this afternoon our code name project new stack, really about helping to manage that multi cloud environment. A lot happening in the software space and an area that we're very focused on. >> One of the things... By the way, we think that those three things that you mentioned, automation in the data center, on-premise capabilities and a cross multi cloud approach to management and managing your assets, absolutely spot-on. And we think ultimately and here's a question, we think that what's going to drive the determination is what does the data need? So talk to us a little bit about how you are articulating the idea of data as the new value source, the new value and hardware infrastructure and software and these capabilities, making it possible for the work to exist where the data requires. >> Yeah and I'll start maybe you can pile on a little bit. Our conversation starts with apps and data so we're starting the dialogue there and you know what we're seeing is you know really moving from large data centers, or only large data centers to centers of data that are really everywhere, right? So we're starting to see that edge really starting to proliferate and drive a lot more change, and what our customers are saying is wherever might, regardless of where my data sits, I need to manage it, I need to secure it, I need to process it, I need to be able to translate it into insight and that's really what our strategy is all about. We've been talking for the last couple of years about making hybrid IT simple. and we're really doing a lot in that space. So for example, we announced the acquisition of cloud technology partners and really what we're trying to do there it's the foremost authority really in helping customers understand how to migrate applications to to AWS or even to Google or Azure, and when you combine that with our on-prem capabilities, it really now starts to talk about data, we want to say your data is what matters and we want to help you manage that holistically. The software investments that we're doing enable you to have that complete view. And then from a consumption perspective, some of the things I talked about earlier, rolling that out right, making it easier to consume this as a service and only pay for what I use. So, we are in alignment. It all starts with data and wherever that data sits, it's how do I manage it? >> And that's why Aruba is such a great asset for us, because a lot of people think about Aruba as you know, you just replace copper wire and WiFi ... And hey, don't get me wrong, it's a money-making great business, but if you'd asked Kierty, he'd probably say we're a data business, right? >> Peter: We did ask him, and that is what he said. >> Is that what he said? Well, good, we're on message then. We're on message today, alright, yeah. I mean, because that's where the action is happening, that's where the data is being created, and so everything that they're doing around the the security 360 platform, the mobile first platform, everything is centered around, how do I draw a value in context from that data? >> Well I want to ask you about Aruba, because when you acquired Aruba, we said wow, this is a great business, it's gonna be a growth business, but is it a strategic weapon for HPE? Is it a strategic infrastructure component? From a messaging standpoint, It's all about the intelligent edge, that you've up-leveled that. Where'd that come from? Maybe take us through sort of the anatomy of-- >> Well I mean, the message is just exactly what we were saying. That if if value is gonna be created at the edge, if the data's gonna be coming from the edge, we have to drive a whole lot more intelligence into that edge in order to collect, process, analyze, secure the data that's coming in and make use of it, right? So I mean, that's where the genesis of the intelligent edge came from. >> Yeah, I mean I would say the other thing about Aruba that we're really seeing is all about experiences. So when we talk to our customers about Aruba, they're looking to deliver a different experience. Whether it's in retail, whether it's in stadiums, whether it's in the campus space. It's all about delivering a better experience. And that's really the value prop behind Aruba. Very software centric, open software, mobile solution. The other thing is, it's enabling us to engage more and more with parts of the company, customers that we might not have had as much engagement before. You know, the c-suite, you know, talking more with the line of business. because what they're focused on is how do I deliver that better experience? And Aruba's really playing a key role in doing that. We also have the view that ultimately, and you started the conversation about data, and we totally agree. But it has to be thought of from the edge, to the core, to the cloud. So whether we engage with Aruba, whether we engage with our core data center, capabilities, and our strengths there, or with services ... That's enabling us to holistically have a much more strategic conversation with our customers. So we're excited about that. >> I'd like to dig a little bit on this notion of AI for the data center, or AI for managing IT (mumbles). We'd like to talk about the difference between a breadth-first, which is I'm gonna do this, like in this big broad way, and we'll figure out how we're gonna get the components to participate, versus a depth-first. Which is, let's lean on suppliers, who know that hardware, know the software best, and ask them to create simulacrums, you know, digital representations that then will allow me to apply AI machine learning, et cetera. We like the depth-first approach, but customers ultimately want to see this bloom into a breadth approach. Talk to us a little bit about how individual elements are being represented, but in a coherent consistent way, so that you can get to a broader, overall set of automation across entire infrastructure. >> Well, I mean, I think that you're seeing the paradigm shift now. I mean for decades we've been chasing this idea that we can make the one tool to rule them all, this sort of magic management environment, one single pane of glass, everyone says that right? >> I've written a lot of research papers that suggested that, right? >> Right? And look, I think that's, we're done, alright? And the only thing we can do now is, how do we embed intelligence to make the infrastructure so smart it can take care of itself? And that's ultimately the experience that our customers are telling us that they want, right? Is, I don't want to be an expert on IT anymore. I don't wanna touch this stuff, I don't want to deal with it. >> Peter: Not just want, need. >> Right? I can't handle it, right? I mean, the scale and speed of everything is beyond the capacity ... I can't hire enough people to take care of it. So you know, I think starting there and saying, okay we're gonna start embedding that type of intelligence. Right now it's mostly predictive analytics type of stuff, but increasingly you're gonna see more true AI come in not just in the data center, with what we're doing with Nimble, right? But also with Nyara. Now we call it introspect, right at the edge. How do we start weaving that across to do a variety of things? Whether it's maintenance or performance optimization, or security. I think thinking of it like a continuous platform across the infrastructure is gonna give you that depth and kind of breadth of control that you're looking for. >> So that leads to kind of an ecosystem question, and I liked your comments on that. Because the question of breadth or depth, the answer is yes, you got to have both. The ecosystem posture has totally changed in the last year or so, subsequent. Because we had PWC on today. We've had Veam on earlier. These are-- >> Jason: They love us. Partners that you're putting forth, yeah. >> Jason: We're making them money. >> For sure, right. But they are partners that previously, you know, you wouldn't have profiled. Whether on stage, on the Cube, wherever. >> Jason: Yeah. >> How has the ecosystem evolved? >> I mean it's opening up a whole new set of opportunities for us. You know, if you think of when we had ES, a lot of people just felt like, hey we were gonna compete with them, right? Now that ES has spun out, we actually created another great partner in ES, but we've got a whole host of other SIs that want to engage with us. They want to take our capabilities in IT systems. Our consumption capabilities, and then align it with a value prop that they'll bring. So you talked about Veam for example, right? Data availability is really, really important for customers. So taking HPE and Veam together, we're able to deliver a great solution from data protection to recovery. Really powerful stuff, and we're seeing some great opportunities out there in the marketplace, and a very strong ROI. I mean, we have some data that says, hey over five years, is a 200% ROI. Another area, when you think of just partnering, right? Is what we're doing with our channel partners. So we're giving them more solutions that are channel centric, that we're driving through our channel organization, yeah. And then, we just announced a relationship a couple weeks ago with Rackspace. It's a managed private cloud, open source solution. We're using our consumption capabilities, combined with with Rackspace, their environment. And this is giving our customers the flexibility to now spin up very quickly, a private cloud environment that they're looking for with a lot of the public cloud capabilities. Very strong economics behind it. And then the edge, that's the other area we're seeing lots of new partnering opportunities as the edge continues to expand. So we believe that innovation is a team sport, and we're leaning in really hard, and I know you know the Gartner's and the IDCs don't track who are the best partners, but I think if they did, we would be at the top of the list. >> Well, probably a lot of this activity was going on previously, so it's not like you're starting from ground zero. >> Jim: Correct. >> But you just, from a marketing standpoint, you really didn't talk about it, because you had colleagues, whether it was from EDS or the software division that's saying, hey, don't talk about that, help us out here. So, how has that changed the way in which you market? One of the big values is your go-to-market. I mean, people are drooling to now partner with HPE. >> Yeah, and one of the big reasons is honestly, is point next. Because they see the value in what Accenture or PwC, or Wipro can bring from understanding a business, or whatever, versus the deep technical knowledge of a point next to come in, and what they really love is the consumption model stuff that we've been able to wrap around it. They see that customers want, that in order to move fast with less risk, right? You've gotta have some sort of financial lever that says, okay, I can start small and I can grow over time. I'm not putting all my money out in one place and we've been building that with flex capacity over the last several years. You're gonna see, well, I guess we announced yesterday, a new Green Lake ... Making that even simpler to consume. Every one of our partner says, I wanna take your IT expertise in that consumption based model and wrap it around a total solution. And that's what's like white-hot right now, and there's unlimited opportunity right now from ... As Jim said, edge to core to cloud. >> And we have another one we're gonna announce on stage in a couple of hours, so we're pretty excited about that as well. >> Well, you see that in the numbers too, yeah. >> Jason: I think we might have a clue what that is. >> We're excited about that. >> Yeah, I know, it is. Well, look, and you kind of you kind of gave something of a preview when you talked about the three things that you want to be able to do. Because there's one brand that hasn't been mentioned yet. But ultimately the business is recognizing that the technology questions that we're raising here are crucial to their future success, but they don't want them to be a continuous source of antagonism. >> Group: Right. >> So they recognize that they need the capability, but they want to dramatically simplify the degree to which it's evasive. I once had a CIO tell me that the value of my infrastructure is adversely proportional to the degree to which anybody in my business knows anything about it. So how do you then take steps to ensure that your customers don't know anything about the infrastructure, even though they have the infrastructure where the data demands, which is gonna be at the edge, and on premise? >> I think that's some of the things we're focused on now. So software to make infrastructure much more frictionless. And you're not really worrying about managing that infrastructure, it's just there to power the business, to deliver the business. Consumption-based offerings with Green Lake, this is truly purpose-built stacks for specific things, because our customers are telling us, I don't want to have to set all that up and manage it, but I want that outcome, and I only want to pay for what I use. So those are just a couple of examples of how we're trying to simplify it. Because ultimately it's all about the experience and the outcome and being able to translate all that data into insight. >> Well, when you're simplifying your face to the world, we heard in the last earnings call, new reporting structure going forward. Hybrid IT ... intelligent edge, and financial services, which is exploding, the consumption base modeling 22% growth last quarter. So organizationally, presumably, you've started to take that shape, and that's how you're presenting your face to the world. Is that right? >> Yeah, and that's helping us to really break down some of the silos, that has existed in this company for a while. And you're seeing that really, really becoming much more unified in terms of how we go to market, and how we think about engaging with our partners how we engage with our customers. >> Are your customers breaking down those silos at a consistent rate? Are you a little bit ahead, a little bit behind? How would you evaluate that? I think it's a transition, it depends on which customer, which sector. We still see some of some of them that are maybe a little behind. Some that are a little bit ahead, but really everybody wants to start the conversation much more about, how do I move faster? How do I accelerate my business? It's all focused on outcomes starting at that data level, and then how can you help me? And this is where I think some of the acquisitions that we've made, like CTP are very empowerful, and then all the software capabilities that we're bringing as well. So we're leading the dialogue much more around that. >> And the only way they're gonna get there is to break down those silos. >> Jim: Absolutely, absolutely. And we have to help them do that, right? We have to help them do that and give them the solutions to do this. >> So Jim, I want to go back to a point that you made about those other two research firms, Gartner and IDC I think it was. But you said that if they were measuring the value, or if there was a magic quadrant for who is the best partner, you guys would be up in the upper right hand quadrant? But partners in this world, especially here in Europe, are more than just the big guys. >> Jim: Yes. >> How are you taking steps to ensure that that large mass of crucially important companies out there, that still where a lot of that innovation, a lot of that excitement really is, are coming with you, are able to move with you? Because your ability to certainly provide them with financial support is important, but your ability to show them the future, and have them see their business in the future, is going to be crucial to whether or not they stay with you. >> And I think we're doing a couple of things. We created our Pathfinder program, I'm sure you guys are aware of that, right? So these are some of the newer partners coming up, we're actually investing in them, helping to scale them, because we think it's going to be unique innovation. Another area is this program that we have called Cloud 28 Plus, where we have a whole network of providers, service providers, ISVs, SPs, that's part of a network that we're able to grow and kind of scale that ecosystem, so I don't know if you want to comment anything more on that, but-- >> Jason: Up to 700 now (mumbles). >> Yeah, so Saviea is very passionate about this obviously, but he's done some some really good things-- >> Peter: And he should be passionate about it. >> But that gives us an ecosystem now of partners who are part of that HPE ecosystem, but different use cases, different compliance needs, they sit in different regions, so we're able to give our customers a lot of that flexibility. >> Alright, gotta give us something on the key note. Just a tidbit. What can you share? A little nugget? >> I mean, you know-- >> Dave: Teaser. >> Some themes we've talked about. You'll hear the word friction free a lot, how do we make things invisible? And really demonstrating how with services and software, and consumption-based service models, can we do that for customers? You'll hear a lot of those themes. We'll highlight some of the things we've announced over the last 24 hours, a few weeks. So we'll emphasize what we've done around Nimble and info site, and the importance of AI in the data center. We'll obviously spotlight point next, and Anna and her energy, she's gonna be out there and really firing people up. And a few surprises in the software space that will come today, that it'll probably cause the market to do a bit of a double take and say who is that that's doing this again? Yeah, it's us, it's HPE doing that. >> And you'll see us also talk about a little bit of a vision in terms of how we see the market starting more at the edge, bringing in AI, composing for different kinds of environments, and then how HPE has really been able to invest, so we're gonna start to show that over the last couple years, we have had a very clear agenda where we want it to go, and now that's all coming to fruition, so we'll start to show all that holistically in terms of our technology vision. So that's another thing that we're gonna be highlighting. >> Great. Perfect timing, we can hear the announcement. Keynotes are coming up, we'll be broadcasting those on our twitch channel. Siliconangle.com/twitch You can go to HPE.com and see the keynotes as well. Gents, great energy, awesome to see you. >> It's great to see you guys, thank you. >> We'll be watching the college football ranks. You guys have a fun little rivalry of Ohio State here. >> The Ohio State. >> Dave: ... Yale, but nobody cares. >> Baker for Heisman. >> Dave: Gents, thanks very much for coming. >> Thanks guys, appreciate it. >> Keep right there everybody, we'll be back with our next guest right after this short break. (soft tech music)

>> Narrator: Live from Las Vegas it's theCUBE covering HPE Discover 2017 brought to you by Hewlett-Packard Enterprise. >> Hello and welcome back to Las Vegas for theCUBE's exclusive coverage of Hewlett-Packard Enterprise Discover 2017 or HPE Discover 2017. This is theCUBE, our flagship program from SiliconeANGLE media. We go out to the events, and extract the signal from the noise. I'm John Furrier, the co-founder of SiliconeANGLE. with my co-founder, Dave Vellante, my co-host. Our next guest, Jason Newton, Vice President of HP Marketing Pan-HPE Market cross HP, and Jim Jackson, Senior Vice President of Enterprise Group Marketing. The big dogs here at HP laying out the show here for 2017. Guys, great show again, our seventh year, appreciate it. But this year, more than ever, is a seminal moment, obviously everyone knows what's going on in the news, is a huge shift in the market place, what's happening at the show, set the scene for us, what's the backdrop? You guys lined up all the messaging, you have the whole set up to the show, tell us: what is this show about this year? >> First, welcome to Discover, guys! We're really excited to have you guys here. And you know, we got a lot going on at this show, so for example, yesterday, we had our Global Partners Summit so we brought out top 1300 partners, and we had an amazing session with them. This week starts Discover, so it's going to run for the next three days. We've exceeded our tenants targets, so we're feeling really good about it. I think what that shows is there's a lot of interest, a lot of energy, a lot of passion, for what Hewlett-Packard Enterprise can bring. You know, I'm not going to go through all the mechanics of the separation and the spin merger, but I would say that that was all designed to make us a faster, more nimbler company, and one that is really aligned to where we want to take our partners on their digital transformation journey. You know, what we're seeing today, is digital transformation is impacting every single customer and every single industry, and digital business is technology, and really, that's where we play and that's why we're so excited to get our story out. And when you look at over the last year, there's a lot that's happened at this company around really innovation, acquisitions, and ecosystem. Just look at some of the innovation that we've brought to the market, Synergy. Amazing innovation, it created a new category, it really enables our customers to now get a public cloud experience, but on PRIM. And we're hearing from a lot of customers, I want to leave my applications on PRIM, but I need that capability. So we're delivering that with that kind of innovation. Another one is HPC. High growing market, we're leading in that space. What we're doing in the storage flash space, we rebooted, and rebranded our services organization, it's not called Pointnext. We want to help our customers point next to whats' next for their business. When you look at the Edge, just amazing innovation happening there, whether it's Aruba technology, whether it's what we're doing with all of our Edge compute solutions, so just a tons of things happening and then when you layer on top of that all the acquisitions. SGI, we're already the leader in HPC, we have 140 of the top 500 systems, SGI makes our position that much stronger. That's a hot market, it's growing at six to eight percent. SimpliVity, when we brought our capabilities, our UI from our technology, combined it with the data services from SimpliVity, we now have the leading HC solution in the industry. When you look at Niara, that gives up additional capabilities at the Edge to help secure that. When we look at Cloud Cruiser, we can help customers understand and balance what's happening across their workloads. And then Nimble gives us just an amazing portfolio across storage. We're really the leader now in the storage space when you look at the ability to dress almost any use case, from MSA to SimpliVity, for customers looking for more of that hyperconverge play, to Nimble, to 3PAR. Our strategy, super simple. Make hybrid IT simple, power the Intelligent Edge, and it's not just the compute, it's to bring the analytics so that we can translate insight into action, and really to bring the services to help our customers on their journey. And those services are our Pointnext services complimented by our partner services. So, you know what, we're fired up, we're excited, there's a lot happening. >> You guys got so much going on and we've documented the whole spin merge thing 'till the cows come home, we've already done that. You guys got a lot going on, a lot of customers are talking a lot of people are talking about you in the industry, at an industry level, certainly at a partnership level, you guys have always been customer focused. We heard that, you mentioned that, they kind of want to know: what is HP going to do now? You're going to put the stake in the ground, they want to know what's happening, where is the phoenix coming from out from all this decoupling, and more agile messaging, it's a lot of corporate governance, corporate development, I get that, what's next? When are you guys going to put the stake in the ground, you going to be aggressive, when are we expecting to hear from Meg Whitman? >> This week, right, you're going to see it this week. I think that's why we're so excited, this is our opportunity to bring our story together and talk about the innovation and the outcomes that we're delivering for our customers. We are playing offense, and you're going to see that this week. You know, I think one of the themes about this whole week is really about outcomes. I just hosted a panel, with four amazing customers, we had Dreamworks on there, we had CenterPoint Energy, we had CallidusCloud, and I had one more, can't think of it, Merck. And just amazing stories in terms of their digital transformation journey and how HPE is helping to enable that. You're going to hear that on main stage, we're going to have additional customers, Symmetry, others, talking about their digital transformation journey. So, we're really fired up about the main stage, and the story that we're going to get out today. Backstage talking with the executives, they're ready to rock and roll. You know, we know we have a great story and we need to package it, we need to send it out there to the marketplace, and that's what's going to happen later today. In addition to the outcomes, and I think that's what's different about us maybe from some of our other competitors who come to these similar events and just have a bunch of products, we're really talking about how our technology is enabling outcomes but you're going to see a lot of innovation today as well really themed along our strategy. We're going to highlight and roll out the next generation of our compute experience. We're going to talk about how we're delivering the industry's most secure industry standard servers. That's complimented by a whole set of announcements we did last week on our storage portfolio, and the software defined space updates to our synergy solution to HP OneView, and then we're going to be previewing our multi cloud hybrid stack, which will be available later in the year. When you look at the edge, new campus solution, core solution, so what we're really doing is if you think of a data center course which we're bringing that to the campus, so we can essentially now manage from the ceiling, to the side, to the floor. So we're bringing all the capabilities. Asset tracking capabilities coming in as well. Pointnext, we're bringing in new innovations to the marketplace around Consume. Jason, maybe you can talk a little bit about some of the IOT Edge stuff that's coming out as well. >> Yeah, I mean we think, a core part of our strategy is to power the Intelligent Edge. We think that's where all the innovation is going and increasingly, you know, we think about data and getting insights from data, right? Going forward, we're going to start thinking about how do I take data and put it into action, right? The Edge is a place, and there's lot of different places that we can bring technology to bear to put into action and create value and so, tons of examples of what we'll be talking about with customers and really interwoven within that are the need for analytics, you know, big data, high performance computing, having a renaissance because of that, and the need for hybrid computing right because the stuff needs to be secure and it needs to be driven by applications, and so it really is a great way to try to exemplify why our strategy is the right strategy and why it's a winning one, because those are the unique elements that are going to power this world going forward, and we've got 'em. >> 43% of data will be analyzed at the Edge by 2020, so think about that, right. >> Yeah and we actually think that it'll be much higher over time, that moving around all this data is going to be challenging, I know you're working on the speed of light problem in the labs, and that number I think will increase. So, I wanted to ask you about messaging because messaging in very important. It clarifies your vision and it underscores your relevance to customers and previously a lot of the HP and now it's HPE, messaging was very product centric, and one tended to get lost in that. How have you sort of transformed your messaging architecture to address things like outcomes and business impacts. >> Yeah, you know customers today, it's really about outcomes, right, so technology matters but if you just look at making hybrid IT simple, as an example, that's a easy statement to say, hybrid IT is not simple. So when you, think of the messaging though, of how we're talking to our customers about that it's really at multiple different levels and let me give you a couple of examples. It's, first of all, the services from Pointnext, how do we come and engage them, and help them characterize their applications, understand their environment, and ultimately give them a roadmap with the right mix of technology, not only for today, but for the future. So, that's an example of leading much more with services in terms of our Pointnext services, in terms of how we're engaging our customers. Getting very disciplined in terms of when you think about okay how do I want to run my hybrid IT environment? We believe it runs best on a software defined infrastructure solution, Synergy gives us that. So, customers are telling us, hey I want to have more on PRIM, or I want to be able to run my applications on PRIM but I need the same experience that I can get from a public cloud, we can now do that with Synergy. Fully programmable, we're seeing amazing interaction with it we have almost 400 customers engaging, and that pipeline is continuing to grow. And then I think the third part of it, when you talk about solutions, again it's not just about technology, it's how do I want to consume this, right? So, we're hearing from our customers, you know, I need, not all of them want to just buy it from us and install it. So, we do amazing things here that we probably haven't gotten out to the market, and you're going to see us get a lot louder this week about that. For example, through our flexible financial services organization, we have amazing capabilities to really engage with other parts of the line of business, the CFO, and talk to them about how do you really want to finance this, what kind of business relationship are you looking for? With Flexible Capacity services, we bring amazing capabilities to help our customers get a public cloud experience on PRIM, so it's sitting on their environment, we're managing it, they only pay for what they use. The other part of it is, it is customers are telling us increasingly, hey you know what I want to actually have a network of service providers that I can get services from. We have done that through our Cloud28+ and our service provider partner ready program, we have a whole set of service providers optimized for infrastructure, for applications, many of them are located close to our customers, so just a few examples, I think of how we're trying to bring this all together, and a solution message is really elevating it and saying: what is the outcome you're trying to drive, starting there, and then looking at engaging them holistically across all of that. So you're seeing more and more of that. Our demos highlight that, that's the stuff we're trying to highlight at the show. >> Dave, can I pile on to the message piece, too, as well? His messaging guy here, for Jim. You know, there's a lot of noise also out on the marketplace, and I think one of the keys is the advantage of being a more focused company now, we can be much more simple, and forthright and direct in our messaging, right, in terms of who we are, what we're about, what's our strategy, what are the elements that we're putting in place to execute that strategy and it's I think it's really important because you don't get but 60 seconds, right, in front of a customer, or to grab their attention off a Twitter feed, or whatever and so, simplicity is really really important, and I think the advantage of an event like this is it brings our strategy and that message to life, I mean it's three dimensional out there right. It's living and breathing, we bring the customers forward first, that's the lead of every message because that's what other customers want to hear about, what are you going to do for me, right? >> Well, lets talk about the messaging and how it translate, from as I always say, if you got the sizzle you better have the steak, to use that old expression. Just as a random example, the user experience is changing significantly in IT, I mean yesterday I was delayed coming in Southwest coming from Silicone Valley and, you know they sold my seat, they didn't have to drag me off the plane, but you know I'm getting some help in the analog face to face but I got on Twitter, had to DM Southwest, instant channel to Southwest. That proves that the interface to technology in a digital business is changing. Now IT is transforming in a similar way, how are you guys taking the messaging of simplicity at the same time as the product evolution is shifting and architectures are changing. The people who have to consume and manage this stuff, their work is changing, so how do you guys talk about that because that's really where the meat on the bone is sitting that's where the rubber is hitting the road, your thoughts? >> I'll start, and maybe Jason you can pile on, you know I think Jason poked at it, we are a much simpler company today, so our strategy is very clean. It's to make hybrid IT simple, it's to power the Intelligent Edge, and it's to bring the services to help our customer go along that journey. So just starting with that simple message means that we can get out whole organization, our partner organization, on message in terms of what we bring and how we can help them to do that. I think the other part this that's really important is we view innovation today as really a team sport, and as we become more focused, we're actually leaning in a lot harder to our partner ecosystem. Whether it's our traditional partners, like Microsoft and SAP, whether it's new partners like Docker, Mesosphere, you know bringing the containerized environments, or actually curating a new set of partners for the future with Partner Next. Because it is about getting it down the simple thing of what's the outcome you're trying to drive, what's the technology, and the ecosystem and how can we be the company to help bring that forward? And I think that's a lot of the simplicity that you're going to see. You know on stage later today, I think why we're so excited about this is, you know you're going to hear Meg talk a little bit about the journey we've been on but more importantly the outcomes that we're delivering for customers and then what we're going to do is we're going to feature three customer scenarios, talking about what they have done, what their journey has been, their outcomes, their experiences and what they can do today, and then of course, how HP technology is enabling that. >> We had in our opening, Dave and I always talk about this, because we love the shiny new toy. Certainly I'm from Silicone Valley, he's from the east coast but the reality is that all this stuff about declining markets here and there is always a shift to another growth market, even on PRIM, you know, people might buy and consume and interface differently with technology but it doesn't mean that the data is slowing down, it doesn't mean that the value creation is changing, it's shifting. So I think that has really been something that I think you guys have had online, maybe lost in some of the tactical things but, you know, from new style of IT, to this, it's been kind of a cadence that you've been on it's not like you guys are groping for messaging. >> What goes down, yeah, and you can't just snap your fingers and be the transformed company that you want, right, but we're moving at break-neck speed on that and it does all go back to the advantage of that strategy, and the world you just described, right, you want to be nimble. You know, there may be something next month we've never heard of that disrupts the entire container market, right, containers become oh that's so yesterday, we want to be the company that's ready to pounce on the next thing, right, and we're geared to do that. You know, competitors - >> John: (mumbles) containers in microseconds is kind of a big deal, and it's coming out of the labs. >> Well you know, the other thing, I want to just add, so you talk about customers, you start with the customer the technology business is always moved faster pretty much than any business, but now, every customer is technology company, and so they're accelerating the pace, so you've got to accelerate that pace with them and be that provider. Digital transformation is all about data, it's all about becoming a technology company. So what's the message to your customers in terms of your role in helping them accelerate their transformation? >> Well, I think you pretty much hit it, right, in the statement that I use is digital business is technology. You are not going to seed with your digital transformation unless you have the right technology foundation and that's what we heard from those customers on the panel. It's about speed, it's about flexibility, it's about having the right technology that enables me to deliver services back to my internal clients at the speed I need to do it. And you know, that's where our innovation is really focused today, and that's why we're seeing a lot of customers coming to us and saying I want to understand how you did it for CenterPoint, or for Dreamworks and how we can take advantage of that. The other part of it is, technology is a big part of it but it's also the learning and the expertise that we can bring to actually make that technology work in that customer environment - we know how to do that. We're proven in doing that, and I think that's something because we're close to the technology, we not only have the right innovation, we have the right expertise to make it work for our customers, and that's important. >> I don't even think it's early innings either, Dave, I think it's not the game hasn't even started and I think you know one of the things that we believe and we're doing some research on is, we think asset evaluations is going to be completely data driven. Data will be an asset and that will impact the evaluation mechanism to >> Dave: Data is the new currency! >> John: To companies' value, so I think the shift is so early. So, riding the wave, guys thanks so much for coming on theCUBE we really appreciate it. Looking forward to the keynote from Meg Whitman to hear the messaging. Congratulations as you guys continue to - >> Dave: We're fired up! >> Jason: He's fired up. >> Dave: There's a lot of energy, Meg's fired up >> Jason: She's going to bring it today - >> Dave: Antonio is fired up, there's a lot of energy at the company, and you know, we're just excited to get our story out and engage customers. Thanks guys for the opportunity. >> Live here from HPE Discover, this is theCUBE's exclusive coverage, we'll be back with more live action. Three days of wall to wall coverage after this short break. (electronic music)

>> Live, from Miami Beach, Florida it's theCUBE covering VeeamON 2019. Brought to you by Veeam. >> Welcome back to Miami everybody, sunny Miami. Dave Vellante here with Peter Burris. You're watching theCUBE, the leader in live tech coverage. We go out to the events, we extract the signal from the noise, and there's a lot of noise here, and there's a lot of signal here. VeeamON 2019, this is theCUBE's third year doing Veeam's big customer show. We started doing NOLA, last year was Chicago, a very hip location here at the Fountainebleau Hotel. Carey Stanton is here. He is the Vice President of business development and corporate dev, corp-dev at Veeam and Jeff Kalat, a CUBE alum, >> Yep, you bet. >> long-time friend of theCUBE, senior director of strategic alliances at Hewlett-Packard Enterprise. Gentlemen, welcome to theCUBE, good to see you. >> Thanks for having us. >> You're very welcome. Carey let me start with you. Uh, I really want to talk about sports with you, but anyway, we won't. We'll hold that off. (laughter) >> (Carey) One day. >> Momentum. You're relatively new to Veeam. But you've been here now a couple years. Where's this momentum coming from, from your perspective, as a recent Veeam entrant. >> Yeah, no, the momentum's coming from across the board, but I think a big momentum is coming from new product innovation that we're doing with Office 365, and we're just driving up subscription business momentum that we have for the pent-up demand that we had for Euphor. But a big part is coming from our relationships like we have with HPE. We invested heavily a few years ago when we announced that joint reseller agreement. What we've done is not just continued to sell but add a plethora of new solutions to it Jeff's going to talk about what we're doing with GreenLake adding SimpliVity, adding the overall solutions that we have. But that's a team that started two years ago with two people that we now have over 20 people just working, dedicated with HPE on co-selling. And I'm happy to say that our business in first half, or I should say year-to-date is up 50% year over year on a global reseller business. >> Well Jeff, theCUBE as you know, has been documenting the ebbs and flows of HP and HPE over the last, better part of a decade. And when HP split in two, to HPE and HP Inc. One of the things that-- And then sold the software business, or a large portion of it. One of the things that went was data protection. >> (Jeff) You got it. >> (Dave) And that just opened up a whole new set of opportunities and Veeam was obviously one of those. And it's starting to pay dividends. >> You got it, yeah, to that point, that evolution through HPE.nex, we were able to focus on our core. And the benefit, the inherit benefit is that we can partner with the best of class in the marketplace. And Veeam is considered best of class. So when it comes to data availability, data protection, we're all in. And we're actually, as a company, we're actually doubling down now in our partnership with Veeam. We've actually taken them from, maybe a traditional storage alliance, and taken them to be one of our top global strategic alliances in the line of the Microsoft's, the Veeam, or as the SAP's. Because we see great momentum, we see great customer adoption and interest and we see great innovation at the product level, but also in the whole global market chain. >> Well talk a little more about that because it was, the move allowed you to form new partnerships that dramatically expanded your TAM but, I'm interested in the nature of the partnership. Is it, just go to market, is there engineering integration? Talk about that a little bit. >> Our first step when we came together and said okay let's take this to the next level, we realized we need to narrow our focus to the core customer values and we really settled on three core areas of this relationship. One is first, data protection for, around our intelligence storage, as you know, our storage portfolio 3 Par, Nimble, we've had a great relationship there, we continue to drive co-innovation at the road map level, but also drive go-to-market activities and marketing and we have feet on the street actively selling. So the first one's really expanding our work with storage. Now we're taking it, we're extending, if you will, through consumption based data management, using, well HPE has GreenLake, Greenlake we see 40% of customers by 2020 are going to be consuming their data center IT more in a consumption model. There are inherent benefits of that. What we now have offered and launched just recently Backup,is a service through our flex capacity coming out of GreenLake, providing customers the choice, if you will, to move from a, not from a capital expenditure, but, by the drink, if you will, consumption base. So that's the second core area. And the third core area is new for us, and that's around our HCI portfolio. As you know, we purchased SimpliVity. Well, SimpliVity has a lot of inherent backup, dedupe compression in line, but there actually are some Zivik use cases that we're deploying out there that show how Simplivity in a Veeam environment can actually, customers can see actually incremental values. So, those are the three key areas we're focused on as we up-level this whole relationship and partnership. >> (Dave) So Carey, please. >> I was just going to say if you think of, we talk a lot about we go after the technical decision maker in all these, hundreds of people here at the conference. And then going towards the executive, the enterprise. And it's through relationships with HPE on this, the flex capacity, being able to go to a customer and offer a true enterprise solution that they're looking for, everyone wants as a service. And so we've closed multiple deals this year thanks to having the Greenlake. So, our relationship with HPE continues to elevate and the enterprise is a result of the solutions that we're doing. Not just selling storage, but selling a complete solution. >> Rathmeyer was kind of tongue-in-cheek this morning at the analyst and media event. He was talking about how in 2013 he predicted that Veeam would be a billion dollar company by 2018. And he said he missed it by six months. One of the reasons was because you know, you got the subscription model. So that's, you know GreenLake obviously is part of that, maybe not the predominant part yet but I think you said you have 40% you're saying will consume, as a service by 2020. >> 2020, actually soon. >> (Dave) Okay so pretty substantial. >> Yeah. >> What's driving that? Is it just CFO's want to go to opex? Or is it-- >> I think it's a, there are many, the value you get without locking yourself into every three years needing to do a total forklift upgrade of your infrastructure, that's one thing. The second thing is moving it from a capital expenditure to an opex expediture. It can be planned, it can be budgeted as well. The third thing is the customer doesn't have to mess with all the technology, updating the firmware, the drivers and all that. We will do it on their behalf, right? We give them the economics of cloud on prem and that's the beauty of that. So we believe, and lock-step in alignment with Veeam, the world is hybrid in the future. So on prem is here to live forever, but increasingly we need to leverage the assets in the cloud and this is providing the ability of doing it in a consumption model. >> And it's not just the economics it's the experience as well. >> Oh totally, if you want to, if you live in a house and you're a home owner, and you want a new bathroom, you put in a bathroom. If you're a renter you end up in a long, laborious negotiation that you're going to lose. And the same kind of notion is here as people realize there's greater strategic opportunities and options from how to use their data differently. They want access to those options. And that's the basis of agility. The opex to capex is good but you've got to put it in business context. It's how you create additional options in your data oriented investments. So, as you guys are moving forward are you starting to have that conversation with customers? And relating data, data value, asset management, Backup, Restore, to this broader picture, this broader strategic union you're putting together? >> Yeah and that is a key imperative of how we get even stronger in traction is telling the bigger picture. And you look at the world of yesterday, where it's just backup and recovery, look at the advent of edge devices and the amount of data that's being put at the edge. Now look at AI and machine learning where, the data is inherently needed to project the changes and the needs that are in the future. So, I think these all tie in to the play and I believe at GreenLake our consumption model can provide great benefits, above and beyond the traditional backup and recovery. >> And I was just going to add to it, is that it also brings in our ecosystems, so the relationship, that tier one relationship we both have within Microsoft. So when you start looking at a solution that the business owner wants, they want to be able to say I need cloud, I need on prem, I need backup recovery, and so by going through GreenLake they can encompass, we have a broader ecosystem that we're able to bring in versus just single thread in these discussions where you're going in and selling a data protection story and leaving but you didn't solve that broader customer problem, and with GreenLake, they are solving that overall problem. >> Yeah, I'd just like to say nothing really happens until you make a sale. You talked about some of the growth earlier. But why Veeam? Obviously you're getting some traction in the market but there's a lot of players out there that you could partner with. And you do partner with others. But why Veeam? What makes Veeam so special? >> I think one, inherently we are lock-step in agreement of the over-arching strategy, we talked about hybrid, we talked about portfolio. Two is we've got the engagement at all levels of our organization, which all stems truly from having a unified roadmap. Innovation has to happen at the roadmap level and you need to be lock-step aligned through the value chain in the way you take it to market, the way you align your sellers, the way you deliver a value proposition that truly is valuable to our customers. It's proven from our IDC research that customers who are deploying and purchasing HPE and Veeam solutions are seeing a 250 plus percent ROI on that investment. So there's this huge customer benefit, and why not go bigger and go bigger and go bigger with them. >> (Dave) Same question to you Carey. So why HPEE, why is HPEE so special as a partner? >> I think HPE first and foremost, being that first partner that came to us to want to go all in, as Jeff was talking about, from day one, and top down. So we're not just working with a department of HPE we have it from Antonio, from Jim Jackson down the stack in the organization. We were aligned from day one. They lead with data protection, it's no longer, it's a a nice to have, it's a requirement in every one of their sales processes. We're their lead partner that they have in data protection. And what we'd been able to do and have that enterprise visibility by them assisting us on our journey. So, from across the board, whether it's through management, through technology, or just in true go-to-market, they're by far our number one partner that we have on our sell-with motion. >> So Jeff, I want to talk to the group about GreenLake. And Carey, I'd love to hear your thoughts on it as well. What are the challenges that go into a consumption-based model for a company that's traditionally sold products. As part of this overall move in all industries, all sectors, from a product to a services orientation. How do introduce metrics that are associated with the service? Because it used to be you just sold a product. And the metrics for storage are different from the metrics from backup, different from the metrics from compute. So as you've gone to GreenLake, because I love GreenLake, what kind of specialized, or specific types of things, how are you selling it to try to tie that service into the business outcomes that your customers are trying to see? >> Well clearly, I believe, some of our first wins, early wins we were able to monitor and metric the value the customers were getting, the service levels they've received and so we have a number of different methods of capturing the data, the empirical data, on the service levels and being able to use that to then, use that in the selling motion to be able to articulate the experience and the expectations that come with that. >> What are some of the harder problems that your customers are asking you to solve? And how are you approaching it together? >> Well I think that what we're talking about with GreenLake here is a real hard problem to solve, right? Consumpton based across geographic regions, across different technologies, on prem, off prem, hybrid. And we don't have another partner that we can go to market with when we hear this from the customer. So when we hear it, we know that we can lean in. And we truly are, to follow up from your question, is the fact is that HPEE is solving all this and then bringing us in as their number one partner, is the differentiator that we love. So solving those problems at an enterprise level, and at a commercial level and doing it with one partner is easy, right? We're shortening the sales cycle, increasing the value to the customer. >> Yeah, one thing I have to say and it's always, complexity is always a problem and an issue, right? So it will always be a problem and an issue and we will always be striving to improve and improve the complexity. But you know, Veeam, we're super simple, right? And we, especially when you look in our HCI portfolio and that's all about driving simplicity, if you will, in a way you can deploy IT, you can scale it. So I think complexity is, and will always be a problem. But it's a given too and it will always be there. And we will always be striving to make it even easier and easier for our joint customers. >> Well one of the challenges that you face, especially as you go to a sevices-only model, is how do you put a price on the outcomes that you're delivering as opposed to the price on the assets that the person is taking? So I think one of the biggest challenges, and it sounds like you guys are pretty close to getting this together, but it's part of a broader portfolio, is where does this, let's put it slightly differently. We've talked about this before in some of the other interviews. backup is moved from a have to have it, for maybe compliance or it just makes good sense to have it, to a strategic business capability for a company that's increasingly differentiating itself on it's data assets. That moves this conversation about, as a service, into a different group and a different, different level. And that's what I'm wondering. Those metrics have got to be a big part of the conversation. Because the entire organization is now recognizing backup is more than just a bolt-on. >> Yeah. One example, one of our close partners, we're here with them, Island. So, disaster recovery as a service, right? They standardize on Nimble and Veeam and together, that combination to them was good enough to build their business on. So there's inherent value and we expect to continue to grow and be able to expose that value. 'Cause we believe more and more customers, not just your pure enterprises but, from your mid-market all the way up, can be able to utilize and see that value and experience it. >> Just a point of clarification if I could on the HCI piece. Specifically around SimpliVity. So SimpliVity was known for it's backup use cases. >> (Jeff) Sure. Still is. >> So where does Veeam and SimpliVity fit, versus Simplivity solo. >> Yeah, yeah. Well first and foremost yes, Simplivity has inherent, great data availability features, inherent in it. That's core to it. But in reality, for customers, let's say a mixed environment, whether it be virtualized, non-vitrualized, there are inherent benefits to having Veeam in addition to SimpliVity. Another example would be customers who want to really have the access to be able to do specific file restores. So we see capabilities in running Veeam in parallel with SimpliVity. Actually I see a lot of customers that are deploying SimpliVity are also deploying Veeam and there, it's an additive value that they're seeing. And they're able to parse out features and functionality and be able to increase their level of value that couldn't be done, just purely from a Simplivity standpoint alone. >> All right Carey, we'll give you the final word. >> The final word is-- >> Bumper sticker on VeeamON. >> (laughing) >> Bumper stickers. >> I would say that, what we're doing here with HPEE, we would say we're in the first inning. What we're seeing on the innovations that we have coming out later this year with HPEE, coming into next year, and we're just thrilled to be having them a platinum sponsor of VeeamON and look forward to another successful year. >> Awesome. Guys thanks so much for coming on. I got to ask you, Boston-based person, Bruins fan? >> (Carey) Bruins, yes. >> You worried about Tuulka, at all, a 12 day layoff? >> (Carey) Nope. >> No problem. >> (Carey) Nope, Chara's going to be nice and rested and-- >> (Dave) Chara, more Chara or less Chara? >> I'm going to, yes well. I got to take more thanks. >> Okay, all right, good. We'll see, we'll see. Go Bruins. All right guys thanks so much for coming out and thank you for watching. Keep it right there we'll be back with our next guest shortly right after this break. You're watching theCUBE from VeeamON, 2019 from Miami. Be right back.

>> Narrator: Live from Las Vegas. It's theCUBE, covering HPE Discover 2017. Brought to you by Hewlett Packard Enterprise. >> Welcome back everyone. We are here live in Las Vegas for SiliconANGLE Cube's exclusive coverage of HPE Discover 2017. I'm John Furrier with my co-host Dave Vellante. Our next guest is Justin Hotard, Vice President and General Manager of the Service Provider and OEM Solutions for HPE, Hewlett Packard Enterprise and Curt Belusar, Senior Director of Service Provider Engineering. We got the trends, we got the market leader, the go-to market leader, as well as the engineering. Guys, welcome to the CUBE. >> Thanks, great to be here. >> Thank you. >> So, obviously the service providers is an interesting marketplace. We've been covering it for a long time and we know how hot NFV is and all the great stuff going on with the network moving up the stack, applications over the cloud. You name it, it's a crazy world. But you look at the trends around smart cities, autonomous vehicles, and movie and media entertainment, smart home, Apple announcing a home pod. Internet of things. This is a right market for service providers, so my first question is, with 5G over the top, these kinds of trends, to power these transformative use cases. Is it really putting even more pressure on the service providers? So, what's the deal? Where are they at? What are you guys doing with the business? Give us a quick taste of the landscape and some of the forcing functions that are helping your business. >> Yeah absolutely, and I think you hit on a lot of the trends driving the growth in service providers. What we see is a very dynamic market where everybody is trying to figure out their business model and build their services and respond to all these changes. What we see is a lot of customers, our customers as service providers, need a lot of flexibility. They need to be able to respond to these changes. They also need to be able to scale. Globalization is a huge trend because I launched something in the U.S. and Uber or Lyft is a good example. I launch in the U.S. Everybody expects to have that service everywhere else in the world. >> And guess what, they say "Whoa, hold on." >> Exactly, exactly. Then you've got issues with data sovereignty, and security, and privacy, and you have to factor all of those things in. These businesses, our service provider customers, don't have time to wait. So, they really see us as a core partner to them, to enable speed and delivery. Curt, you probably can add a few points cause you've seen this market evolve over the last, almost decade. >> I think what we're seeing is a transition to where there's more data out at the edge, and so you're growing both edge data centers and you're growing central data centers at the same time. The percentage of operating expense that these customers are spending on their IT gear is just a very large percent, and so they are all trying to optimize their spend in that space. That means that they're looking at ways to optimize the gear. They're looking at ways to optimize how they deliver the gear out to the data centers. They're looking at reducing servicibility costs and trying to attack it across the board. >> Let's talk consolidation for a bit because early on everybody said "It's just going "consolidate to a few providers," and the exact opposite has happened. >> Yep. >> It's logical. Services have always been decentralized and local and that's exactly what you're describing. How do you look at the market? How do you segment it, and what's you're thinking in terms of the explosion or contraction of this market, in terms of number of players? >> A lot of what we see in the press or what's discussed is, we talk a lot about the infrastructure of service providers, and the largest service providers. The reality is that the market is fragmenting because more and more businesses are moving to an as-a-service model. There's business as a service, software as a service, and each of these customers has a unique business model. How they make money, where they extract value, how they respond to their customers. We really see that trend, and I don't think it's going to change. That's not to say that the largest players in the market won't continue to grow in scale. As we've seen, they've been doing that pretty consistently, but we're still going to see those different services and different values because it is local, it's customized. You think about autonomous driving. There's going to be, you brought that up earlier, right? There's the people that are going to provide autonomous vehicles for consumers. There's going to be people that provide it as a service. There's going to be people that provide services into those vehicles. >> Data services? >> Data services. Content services. We think all of those models will continue, and the economics of one-size-fits-all just don't work. When you look at our product strategy, our solution strategy, including point next and how we go to market. It's recognizing that. We have customers in Europe, for example, that buy what we might consider more traditional data infrastructure gear. A lot of the core products we have in market today. We have customers that want customized, we talk about white-box a lot, but customized solutions, the latest technology. Integrated, optimized for their workload, for their scale, and we run the gamut. A lot of that is because one size just doesn't fit all in this environment. Let alone what Curt was talking about with where they're deploying their technology. >> Yeah, I see the same trends. I think that both the large, public cloud providers are going to continue to grow, and then you're going to see the next tier down is also going to continue to grow. It's everything as-a-service is starting to explode. >> How are the requirements, are they dramatically different? I mean the large guys, they've got massive scale and gimme the stuff and get out of my way sort of attitude. But the second and third tier, there's a lot of customization required. Where do you see HPE being able to add value in that space? >> We're going to see customization at both ends. It's just going to be more customization with the top-tier customers. It's interesting, what you've seen is a lot of the IT skill-sets and people have migrated from some of the top-tier providers down to the second tier and so you see them wanting to employ a lot of the same techniques to go save cost and optimize their environment. When we say customize, there's a very good reason why they customize. They will customize to the extent that it allows them to go lower their total cost of ownership. >> Well that's a great point. Dave mentioned in an earlier segment that all companies are becoming technology companies. Jim Jackson was talking about the digital technology issues, so you have a power law going on. You're going to have it at the head and the long tail of the service providers. Some enterprises, you say enterprise market. You can almost say, okay there's a line. You guys are now the service providers, and the rest are traditional enterprises. In a way, they're SMBs from that old classical definition. The point is, the definition's changing. >> Yeah. >> How does that impact your business and your product offering? >> It's really interesting. I think your point is every company is a service provider, and so we also see this even within our Enterprise customers. They have workloads that are running on Enterprise. They run mission critical workloads, and then they run service provider platforms, and they're looking for that flexibility. They don't want to be bucketized. In order to compete, in order to have a service that might deliver content into their products or provide conductivity into their products for intelligence or AI, they need to have the same cost advantages, the same technology advantages, the same forward planning. Because a big thing we see in the service provider's space, is they buy ahead on technology because they're trying to run the life cycle of what they might need and get that return on investment. We see those same behaviors across our Enterprise customers that are buying as service providers. So there is a bit of a blending of the business. >> Is there a pattern that you can talk to in the marketplace? This is interesting cause if you believe that, which I do, and I think you guys would agree, that everyone's becoming a service provider. But service providers have had a legacy business that had completely different dimensions than say, a classic enterprise. A lot of online. A lot of hyper-scaler's upfront. Now you have data tsunami coming, so are there patterns that this is a little service provider like, that now the enterprises have to deal with. Can you share insight into some of the things that you guys are doing to solve that, and I mean I know the flexibility thing is a key message. Composability, I get that. What are the core customer problems that now look like service provider problems? >> Well, there are a lot of Enterprise customers that are going and starting to stand up environments that look like service provider environments. There's different reasons why they do that. They could need an internal cloud for some reason. They could actually be standing up a service now that they're offering out to the public. The answer is they are all looking for some of the same things in their cloud-like environment. They want consistency in the way that they want to go and deploy and talk to the servers. They want to have lowest cost, total cost of ownership, and that's both on a capital expense side, in terms of what they pay to go buy the actual equipment, but also on the operating expense side. The more that they can make their cloud or their grid look uniform, it becomes easier to service, it becomes easier to maintain. You're starting to see them on a smaller scale perhaps, but employ a lot of the same techniques that are used in the large clouds. >> The business model question too comes up. In the old days, the ones who were online, highly big procurers of gear, servers and storage. Financial services, healthcare, I mean, these are highly online, transactional businesses, and service providers also fell in that bucket, but now as everyone sassifies. Hello! Your revenue model is tied to those services. >> Yep, and it's interesting too because we put a lot of emphasis, I mean by virtue of being a technology company, we've put a lot of emphasis on the tech and making sure we've got the right systems and configurations we're delivering to the customer. The other thing is, it turns out that there's some laws around physics. So power matters, real estate matters, footprint matters. >> Distance? >> Distance. All those things for latency and proximity, and we talked about some of the other elements. But those are actually huge operating costs, huge value points for our customers. So, helping them make sure that they're balancing all those choice points. Because if we get the operating expense right on the tech, but then they can't handle the power, they can't handle the footprint, they've got a different issue. >> Scale's a huge issue. >> They can't scale, exactly. That actually puts a limit on their growth, so there's all these different things that we balance and where we bring value, and it's not just the technology, but that total solution. >> The service provider space has always been a harbinger for what's going to happen in the Enterprise. If you looked 10 years back it was virtualization, and then DevOps and containers, and all that stuff that's hitting the Enterprise now was being done years ago. What are the tech trends that are driving the service provider space now? What are you seeing there that might show us a glimpse as to what's coming in the future? Where are they focused? >> I think that we're seeing continuation and furthering of some of the technologies that we've seen the public clouds rolling out starting to happen with the Enterprise, but when I think from a technology trend standpoint, things that folks are looking at today. We're seeing alternate processors become available this year. ARM 64, we're getting into the second generation of that. We're seeing trends coming like NVMe drives, the ability to pull data off of a drive much quicker. If you're a financial services industry company that wants to transact data real quick, that's helping out there. We're seeing NVDIMM technology that's coming into play, and that's shifting everything. Storage and memory is starting to come together, and so the way that they move around and cache data is something that's going to change. Applications are going to have to change. >> John: Architectures are changing, big time. >> Absolutely. >> What are the drivers behind that? Because you brought up data and memory, and then also, we just had talking to the server, options, lead, and this is a big deal. Memory used to be a constraint that you have to program around. Swapping out, back in the old days, but now it's almost limitless, with the persistent SSDs, speed, and that gives app developers huge flexibility, so this should change the game on the service providers. >> It's all about the data. There is just more and more and more data being stored for different reasons, and the data sets that people want to operate on are just getting larger and larger. And to the extent that we can pull those in and operate on them in a faster way in memory, it helps. >> You guys have a very dynamic market, so I've got to ask the question, what is the biggest way that you guys are riding on the go-to market? And from a technology standpoint because if you believe this conversation we're having, what is happening is, a service provider, of a service provider, of a service provider, is going on because someone may be a specialist in say big data analytics service provider for cars. Or I am a healthcare service provider that's out of scale, so scale becomes now the new differentiation. >> Yep. >> That's the locked-in aspect, but I mean it's not really locked in, it's just they have scale. You can almost envision this channel of service providers. How would that play out, I mean, that would be certainly game-changing. How do you guys rationalize that trend? What is the wave that you're riding? >> I think it all goes back to our customers, and we're doing a few different things. So one is deep-direct engagement with these customers, especially the ones on the cutting edge. To have a early dialogue with them, make sure we're delivering the right solutions. The other thing is actually bringing value, so we do some things through it. We have a program called Partner Ready Service Provider. We bring in, actually from our service provider customers, and this is a global program. We actually then deliver those services cause we have certain customers that might, again back to that mix in a CIO's environment, they might look like an enterprise, they might look like a hyper-scale service provider customer, they may also look like they're a consumer of service providers. >> All three? >> Exactly. Actually being able to do all of that is really important, and we think when we wrap all of that with our service delivery, our global footprint, our supply chain, the ability to deliver products anywhere in the world. Those are all things that give us a solution advantage for our customers. >> Curt, talk about open, the cloud line server portfolio, fast grow in the cloud age is here, open infrastructure. I was just talking to some of the guys in the labs. You've seen some of the stuff at the network layer becoming open-source projects. You almost take the network stack and say, "Oh wow, there's like six open-source projects "that make up HP, Arista, Juniper, and Cisco." Core technologies, yet you have to build your own proprietary stuff around that to differentiate. How does open fit into all of this because at the end of the day, it's going to be an open-source driven software world with the cloud? >> I think there's open-source software pieces, and I think we will get to the point where we have more open standards around hardware too. You've seen OCP, you've seen Open19 launch a couple weeks ago and you're starting to see standards around the hardware as well. I think the open's critical. I think that it is the way of the future. In this space, I think that we, again back to the comment about what the large grids or large service provider customers need. They need uniformity in their data center to a certain extent. It makes it easier to manage and easier to operate. If you just start with that principle, that implies that we're going to have open standards. They're going to want open standards around the rack, they're going to want open standards around the gear, open standards around some of the options that go in the gear. There's going to be open standards from a software standpoint, and it's going to be the companies that go and sell that gear responsibility to make those bullet proof, to make them to the point where they're secure, to make them on the hardware side to the point where you can distribute it worldwide and service it. Open is here to stay. >> We've been predicting on the theCube, I know Dave's got a question, but I want to get this point out. We've been predicting, it hasn't yet come true, and most of our predictions come true, so we're kind of waiting for the signals. Since open compute, we're seeing a maker culture going on, where we believe there's going to be a hardware renaissance, and when I say open hardware, there's really a driver on that. Thoughts on that? Because, this certainly would change the game. You see people trying to do their own servers, but yet they can't get a fab plan opened up, they can't do this. Interesting trend. If software's eating the world, then data's going to eat software, which we believe. Then you might see a really big shift to soft, I mean the hardware. We had Microsoft's Ballmer say at the conference last week, we should have got in the hardware business earlier. I mean, what is that all about? So again, this points to a renaissance. Do you agree? >> Totally. I think you hit it dead on. We see the same thing, and it's a business model shift. It's a different business model than where we're been, but the opportunity to deliver value in open, around platforms, around making sure there's inter-operability, quality, security, exposing performance. Those are all things that are enabled through hardware, and they make a difference, and Curt talked earlier about some of these technology trends. They're very hardware centric because that's actually what delivers the difference in software and data. >> And systems too, and having systems experience is now the new IP. Not necessarily having the fastest board. >> Yeah. >> Yeah, that's right. Having that ability to integrate it and deliver an experience and performance. Those are things that make the difference. >> Curt, your thoughts. >> Like I said, I think that we are going to see more and more open standards around it, and I think it's going to help people scale. It's about putting the systems together, in a open-scalable way. It's also about getting more work done out of the systems. It's kind of a, if you think about through Capex and Opex, there's going to be a work per watt per dollar done. How can I get that best done in the most standard way? And standards are going to have to be there, to enable all these pieces to go together and come together with a uniform look in the data center, which is what anybody who's deploying the cloud needs. >> So Justin, put a bow on this segment. Summarize from your perspective Hewlett Packard Enterprise's cloud service provider strategy. Where can you add the most value? Where's the sweet spot, and where you going to make the money? >> I think what we add the most value in is being able to be a comprehensive provider for all of our customer's solutions, and that's not just the product. It's being able to deliver the specific product or that specific workload or application. Being able to provide that global footprint and supply chain, the services on top of it. So that a customer, when a customer makes a decision that they need help, they've got one partner to go to, and I think ultimately that's where we'll make the value. >> Justin Hotard, who's the VP GM Service Provider, of OEM Solutions, and Curt Belusar, Senior Director of Service Provider Engineering. Guys, thanks for this insight. Great conversation. We love it, we love hardware. We all love software too. All that machine learning out there, there's going to be more and more power available. This is theCUBE, bringing you all the action here at HPE Discover, doing our job delivering a bunch of great services around data and video. Of course, bringing you live stream here. I'm John Furrier with Dave Vellante. We'll be right back after this short break. (techno music)