from the silicon angle media office in Boston Massachusetts it's the queue now here's your host David on tape hello everybody welcome to this cube conversation my name is Dave Volante and I'm here with Dave faithful who's the chief architect of WEEI Dave thanks for coming on the cube thanks for having me so first tell me about WEEI and then I want to understand your role there sure at WTI our chief architect and responsible for driving technology solutions that we work with our customer base on so WI is a value-added reseller supporting fortunate 1,000 enterprise customers it takes us all over the world and supporting their environments and we're typically designing and architecting IT service delivery models for those customers and and aligning those those architectures with their business needs so are you typically like described like the sweet spot of your customer base you mentioned you know the basically large companies and you're interacting you know who's your point of contact is it is it the architect to architect you know who you're talking to it is it's all levels of the IT organization typically from the CIO on down so understanding what the business goals of our customers are and then working with those IT directors IT managers and and IT architecture leads to develop solutions that fit those business models so you know these days you know software-defined data center computing is is as big creating service delivery models that a cloud like in nature whether on pram or in a hybrid environment or a public service or things that our customers are trying to do migrating from that traditional IT architecture to this new software dependent world so we're gonna talk about storage later on but but I've wondered thinking about the top level this the sea level executive in IT is he or he or she are they concerned about storage what's on their mind thought what's top of mind for those guys typically it's really just how do they i tea to deliver value back to the business right how do they make their companies more competitive in the marketplace how did they get the products out to market faster faster than before and faster than our competition so they're trying to leverage IT as a service as a utility and they're trying to create that that that utility model that service delivery model to support their business needs which you know the IT has to be more responsive than ever before they don't have months to get something out they have sometimes days or hours and so they've got to build those models while at the same time right they've got to support their existing traditional environment so they've got this juggling act at the C level that's typically what we see they're worried about how they get there is up to their IT organizations right then and that's where we're helping them to architect those fears yeah so the CIOs that we talk to I think they bought into the cloud narrative of hey you don't want to do this heavy lifting you want to shift those resources to support whatever digital transformation or you know application delivery but to get them from point A to point B and keep the lights on is is obviously challenging so you talked about some of the underlying rip currents and trends you mentioned sddc so why is that important first of all what is it and in your mind how do you guys look at that and why is it so important well so you know suffer to find data center computing is really you know suffer to find anything is really the decoupling of the control plane from the data plane right how can we manage all of this data where it comes from and where it goes from a centralized automated point and so what's important about that is it allows us to provision more quickly than ever before it allows us to make changes more quickly than we before and it allows our data to be more portable than ever before giving us the ability to move information and data on prem to a public service and back be able to replicate and backup data to really any place that we need it to be and then making it more available for our global organizations to be able to get access to it at any time in development environments they can follow the Sun methodology right of being able to have access to that data for development teams all over the world is critically important and you know public services as well as hybrid other cloud delivery models allow them to do that so used to be pretty straightforward we didn't maybe realize at the time but you'd build a basically a an infrastructure stack you'd support an application you'd harden that and it kind of became its own silo as cloud comes into play hybrid cloud now you talk about multi cloud the the the picture gets a lot more complex and you mentioned separating the control plane and the data plane as you go into this you know multi-cloud well first of all multi cloud I've said it's kind of a symptom of multi vendor we sort of just got here but now I think as is often the case in IT people are saying well we have to control this we have to have governance and compliance and security so we we better get IT to come fix this problem is that a viable sort of inherited from my standpoint is that how we got here or is it really been a strategy in your view well I think it's both and I think more mature organizations understand now maybe not at first understand now that there's different reasons to use different services right so it may be that a particular public service has has some you know application environment or some process that is appealing to them maybe it complies with some sort of governance or compliance requirement but there may also be times and there are with most of our customers where they need to keep that information that data on Prem for whatever reason either due to security policy or due to compliance reasons or something else and so organizations started to figure out they couldn't just put everything all in one place right even if it was a public service that they needed the ability to have some data in different places and they needed that to be affordable and so that was the challenge and and as organizations started to realize that that hybrid cloud strategy was a sound one they needed the technology to be able to support that and so that's when we when we start taking a look at software-defined solutions we're looking at the ability of those those the solutions to be able to communicate back and forth right how do we move data back and forth what products do we select that allow us to create API connectivity to all those different end points right whether it's a public cloud service or on-prem or both how are we able to fluidly move data back and forth okay so you had and you also had a lot of shadow IT which kind of I feel like IT is beginning to reign in at least from the standpoint of setting standards but okay so you just described this this this state of cloud I'll call it cloud because to to us it seems that you're bringing the cloud experience wherever your data lives could be on Prem could be in cloud vendor a B or C some kind of hybrid structure so how do you bring that cloud experience to wherever your data lives and what role does storage play yep all right so so first there's there's there's a few high-level elements to we'll call it this hybrid cloud model right one is a financial model in a public service say you know we talked about you know the ability to go swipe a credit card and now you've got this instant access to infrastructure you know that's a financial model that is easy to consume right but how do you do that on the pram so we work with different partners to put together those financial models that are similar to public services in an on-prem consumption model and so we can do things like capacity on demand pay for what you need only when you're needed all right expand and contract on primp just like you would in a public service so that financial model is one place to start the second place to start is with the infrastructure and you mentioned storage its orders great example of that so we want to have storage that has the ability to connect out to those public services or other platforms when we need them to when we need it to matter of fact that wer that's that's one of the things that we look at very carefully is what is that you know second third mile approach to implementing all of this how do we automate the movement of that data and the connectivity of all this infrastructure together well we've got to you've got to have some some automation that is customized to your environment because it's it's not a cookie cutter approach and so to be able to develop that automation is what we call that's the second mouth or mail service where we're connecting all of these things so we want to be able to select a storage platform for instance that has API connectivity that we can leverage to connect to you know Microsoft Azure or to AWS or to Google or someplace else and that we want to also be able to connect to our compute platforms that we're leveraging on Prem and so that and our network all right that is on Prem and that is extended out to those public services and does the intelligence enables automation does that live inside the the infrastructure is it something that you have to bring to it to the table is it a combination or is it is actually intrinsic now to the architectures that are out there it's both so there is more and more of that intelligence coming to the to the hardware being developed into the hardware and you know some of our partners that we work with have done a really good job of building that into their solutions you know HP as an example with some of their storage platforms uses their info site capability to to build intelligence in an AI and machine learning into optimizing their their storage platform and being able to give customers the ability to see problems before they even arise so that's one piece of it and the other piece of it is you know are those api's already written on the platform can we leverage those already do we have to develop that or so have they been developed to work with certain automation platforms that we can leverage so so yeah it's a lot of this built into the infrastructure today and and then how you customize that for your own use case it requires you know some of the experience and and and the capability to actually develop this automation it's interesting David if you go back five six even seven maybe even longer years ago people were really afraid of automation they wanted knobs to turn and so my question is do you see people much more receptive why what what's what's jii do people see much more receptive to automation but what's changed well I think it's it's actually what you just mentioned right people thought that there was this magic dial you know magic knob but they could turn when they wanted infrastructure I want more officially I'll turn it this way I want less infrastructures man it that way not really understanding the effort it took to make that happen in the background and I think that there's more awareness now of what that effort is we see organizations moving resources me you know their people and their skills from traditional IT roles into these automation roles giving them new skills to be able to support all of this ongoing automation requirement to be able to make the the you know the business more responsive so instead of IT organizations being reactive like they used to ie they would receive a request and then they would have to go in and you know architect around that request they're actually building the infrastructure and the automations upfront so when the request comes in it can actually turn that down up so they're building the dial knob by moving those resources into new skill sets well so that's interesting point about the skill sets I mean I've always often said if your main skill set is managing Lunz you really want to update your skill sets to you know find a new job basically so what are people doing are they moving into development are they moving into sort of becoming cloud architects what what would you advise somebody who's traditionally been a a storage admin what's their growth path so that's a that's a good question so yeah it we would advise them to stop managing lawns and to move into you know different automation skill sets different programming understand some of the programming languages out there now like Python and Perl and other things that are commonly used you know and and developing these scripts understand API structures and most of this is open right so if you understand it from a general sense you'll be able to apply it to just about any platform understand automations behind provisioning infrastructure and the tools that are out there that are available to do that and there's a lot of them and we we work with many of them with our customers today and if you can if you can develop those skill sets you'll be able to manage in this new in this new hybrid you know I'd seen hybrid cloud world and we talked about DevOps a lot of talking about infrastructure is Co but I still feel as though in many organizations that love your thoughts on this it's still early days in terms of you know there's probably more ops dev than there is DevOps but but are you are you what are you seeing in terms of the uptake of that DevOps philosophy programmable infrastructure and the skill sets to be able to support that within some of your larger customers I think there's a separation there right when most organizations think about DevOps Terr thinking about you know their products or their their you know their own internal application development and I think their that when we talk about infrastructure automation and provisioning it's generally in most enterprise environments completely separate teams right and and yes a lot of that is coming together but you've got one organization an IT that is creating a service for those DevOps teams right in the past you know when we talk about shadow IT it was those DevOps teams who were swiping the credit card because they need is something instuments they could develop something and then share it globally and now we've got ite organizations whose who stop fighting that and what they really want to do is be able to deliver that same experience in a control secured and you know financially viable way right to be able to support those DevOps initiatives let's talk about your partnership with HPE what are you guys doing with HHH PE you kind of what sets you guys apart yeah sure so WEEI is an HPE Platinum Partner and we work with HP across really their entire portfolio and we understand their initiatives around data center automation creating a hybrid IT environment some of the solutions that they have around the financial models for instance HPE green link is a way to create those those cloud like financial models in an on-prem environment and extend that as a public services so that you have that same experience of swiping that credit card and a public service so we work with with HPE is you know they're they're a leader in IT infrastructure and have been for a long time and across all of their product lines for compute storage and network how important is Green Lake and and how differentiable is it from you know other companies who who do this is it pretty much table stakes to be able to have that sort of pay by the drink is there anything unique and different about Green Lake was from your perspective yeah I mean there is right essentially it's giving organizations the ability to have that public service experience on Prem and consume what they need when they need it and then more importantly capitalize that if they really want to alright so you know many organizations are are trying to juggle that in that capital expense versus operational expense you know budget and so Green Lake allows them to have that subscription like experience in a capitalized model which is important for my organization's okay but so too is it their choice to go up extra capex is that was so they can okay and I can understand why some organizations would want to do that maybe there's tax benefits etc okay good I want to ask you about sort of clouds if it's so huge mega trend you know one of the super powers as they say we've heard the stats 80% of the sort of install base is still on Prem 20% only 20% has moved to the cloud we talk a lot about cloud 2.0 kind of a play on on web 2.0 what is that well it's containers it's hybrid it's it's multi cloud if you're thinking about the next era of cloud what do you see is 2.0 if we can kind of define that on the fly boy and on camera forevermore those reasonable parameters hybrid you know multi-cloud containers maybe infrastructure as a code yeah I mean so or is it all bs just acronym soup in our industry no I don't think it's BS right I think that any so let's take a look at the evolution of cloud right if you looked at it say into you know five years ago maybe 10 years ago everyone said that'll never happen we would never put our data out there it's not secure and then you looked at it say you know five years ago or less everyone was going to cloud we're just going to move everything we're going to dr everything over the and we're gonna get rid of all our data centers you know and then a couple years ago everyone said well hi hold on a second that that's probably not realistic right there's a use there's sometimes you know there's going to be a need to keep some data on prom either you know for compliance reasons or for technology reasons I mean we need the state of close to us for other things who knows what it is so hybrid cloud right and our abilities create all of these processes internally those automations to make that on-prem experience feel the same as it would in a public service is is where most enterprises have realized they need to be right so that's kind of been the journey to get here now I think that that that hybrid cloud experience that organizations are making these investments into right now it's probably well they're where they will be for the next five to ten years right and what comes after that you mentioned multi-cloud before right and I think that's probably a realistic expectation right as the commoditization of everything NIT occurs I this is just you know my speculation that that that may occur in the cloud as well right and so as the affordability and as you know the the the network performance and the cost of that ability comes down and and more and more commoditized there'll be fewer and fewer reasons to make those on-prem investments and so I think a multi cloud strategy becomes realistic for many organizations who already started that but got some stuff in Google we got some stuff in the drawer got some stuff in AWS but as we can make the platforms that our applications are running on kind of agnostic across cloud it's just another service sorry and and and organizations are going to go for the lowest costs and you know lowest risk environment if I can containerize most of my applications and I can move them from cloud to cloud because containers are very portable why wouldn't I do that I think that's where I said where it could possibly go within the next you know decade yeah if you can create that consistent experience across cause you and I have talked about this just in terms of the the big hyper cloud guys have have taken labour cost out of the equation and now they can charge you that convenience but your you believe that you can actually close that gap with on-prem infrastructure and I've often said that the traditional companies event the tech vendors they don't have to match the cloud capabilities they just have to be cloud like they can it can be good enough and and so my question is did you buy that and have they at least close the gap to the point where you can do a lot of the things that you can get in the in the public cloud and not have to pay for the automation so you can sort of replicate those substantially on print so so I agree right and here's here's an example of how I think that is happening if you look at what for instance Microsoft is doing without your stack all right what is that your stack it's the ability to extend you know Microsoft Azure cloud on pram by putting it in your data center now I've got this consistent platform across multiple locations on Prem and the cloud 8 OS is doing the same thing so that tells me that they also believe hybrid is going to be around for a while otherwise they wouldn't put effort into developing this platforms right to extend their own platform to your to your data center so another things is your question but I that's-- example to me of why I think hybrid is the way that most organizations are going and that the the industry in general including those those hyper scalars believe that that this is gonna be around for a while I'm glad you brought up Microsoft because they're fascinating example they everybody talks about the innovators dilemma and you would think that Microsoft was a company that was going to struggle with that what they've clearly figured out and they were early on with with Azure stack at the early point it's about the control plane the data plane and being able to have that consistent experience across clouds so ok so my takeaway is so infrastructure still is important these days gonna all these new emerging workloads you know matter there's it's it's also important to be able to replicate substantially that cloud experience on Prem in hybrid and that kind of sets up this really this new architecture I wonder if you could kind of summarize your vision of what new architecture looks like over the next you know five 10 years well I'll say it once again the you know the way to how do i summarize this developing an automated IT service delivery model that is cloud like in nature on prem and as well as extending that to public services and creating a single experience for your for your for your user base is where IT organizations are trying to put their effort today that's how they're trying that's what they're trying to get you for the future at least for the next five years or so creating a hybrid cloud environment is is the way that they're going to accomplish that who they choose as public services is generally a business decision it's not as much a technical decision but what they put on Prem has got to be able to you know to work with all of those environments and that sort of sort of summarizes what I think of cloud to dotto we haven't even talked about the edge but that's a whole another equation but the idea of leaving the data where it is if that makes sense and then shipping code to data is something this and building out massive distributed networks that actually talk to each other that is a great vision they have you've been an awesome guest thanks so much for coming on the queue really appreciate your time thanks for having me you're welcome and thank you for watching everybody this is Dave a latte we'll see you next time

live from Las Vegas it's the cube covering AWS reinvent 2018 brought to you by Amazon Web Services Intel and their ecosystem partners everyone welcome back to the cube day two of three days of wall-to-wall coverage here in Las Vegas for AWS Amazon Web Services reinvent 2018 start sixth year covering I was only meeting to all the reinvents except for the original one I'm John for a mykos David Lunz we got two sets here and set one we got another set over there's so much content set upstairs total of four sets here covering all the video covers and right now we're coming off the keynote with Andy Jesse full of action packed analysis Dave a pretty amazing set of keynotes they had so many announcements here at ABS they had to basically start releasing them they did media alerts before the show midnight madness just a lot of front-end releases that would be notable releases for any other other conference they're letting out early Andy Jesse only has two hours on stage he's giving the keynote finishing up huge amounts of news announcements Dave so you know you went to the analyst session I met with any Jesse last Monday night for the preview we've been following Amazon a lot of the stuff that we've been saying for the past multiple years is actually happening our original predictions and impact of a toes of business on the IT landscape is happened and happening and now new areas that they're focused on that extends their a leadership both technology and the business and on the business model side continue to come on they well yesterday launched as a preview satellites as a service you actually stand up some satellites which is the power of the IOT has so many implications so many things to talk about through the course of today a lot of interviews we're gonna have again day two let's analyze Andy's keynote and the company what's your take their business is strong their lead a lot of analysts are fooled by the numbers you're not we've been watching it huge number of lead in the cloud I think the first thing I want to say is I go to Silicon angle calm I read you're both of your pieces that are up there your piece on Forbes this is a preview and then the the number of announcements here is just overwhelming last two days at the analyst event they gave us previews of sixty-two announcements and that's only a partial list of the announcement 62 that they took us through it was like rapid-fire kool-aid injection unbelievable so silicon Hangul comm is covering as much of that as physically possible any chassis made a big point this morning and at the private analyst meeting of talking about the context of the cloud market he's very sensitive to people misinterpreting growth there are 26 27 billion dollar business exclusively focused on infrastructure as a service and they're totally transparent about the size of that business everybody else throws in SAS I mean you've made this point a bunch of times and all these other things they mix in hosting and you really can't tell what's what despite that Amazon is by far the leader infrastructure as a service with over 50% of the marketplace now they're only growing at 46% but there are 26 27 billion-dollar run rate business growing at 46% so you see sometimes like Microsoft growing it whatever 70% but they're much much smaller so the absolute number in terms of revenue growth is much much higher for Amazon so that's sort of point number one the thing that Jesse doesn't talk about is the profitability of the business they're transparent about it in their financials Amazon has 28 percent operating margins now just to put that in the context software companies like Oracle have 37 percent operating margins Microsoft 32 percent AWS I just mentioned 28 percent Cisco 25 percent VMware as a software companies with 22 percent operating margins IBM 15 percent Dell eight point seven percent HPE seven percent this underscores the power of the AWS model at scale where they're driving the marginal cost of new services and deploying new services down to zero and it just keeps getting stronger and stronger and stronger and as a great point as a flywheel effect totally Amazon like but it's a great point ago we've been saying it for a long time the competitive advantage is scale and speed and jessee's now adopting that into his rhetoric into his into his narrative totally true and the other thing to point out on that margin and the profitability is that they're plowing it back in so what what you have at scale I wrote this in my Forbes post and in space at all in Silicon angle transcripts are my my exclusive interview with Andy is that not only are they profitable so they have software like margins for what is what is a hardware business basically in the cloud the stack and in Iraq on their own servers they're making their own chips as they start getting the scale up Dave they are getting a competitive advantage I'm following the profitability back in to launch new services so as the trajectory and I kind of tease this out in my Forbes article I wrote which is as you have a trajectory of growth they're building on that trajectory and the competition is trying to copy Amazon and you can't you can't get the trajectory value by trying to meet Amazon's current trajectory that's called diseconomies of scale I teach you that in business school this economies of scales it's the unsub optimized execution model where you run you don't have the learning experience that you don't have the scale Amazon has that trajectory and as people try to match them they will lose and they're at risk of losing because the risk so the only play for the competition in my opinion like Google like Microsoft like others is to change the goalposts they got to change the playing field on Amazon this is the number one thing that the industry is looking at Amazon is making the market they continue to make the market as market makers that's gonna attract an ecosystem that's gonna attract value and and more companies the only competitive strike that I think one could make is to change the playing field they got to change the game on Amazon that is extremely difficult to do when you're operating at scale you got the profitability numbers you talked about so again that is the new bar and as Amazon I'm we've said this every year ever and every year they've done it they've doubled their aurora customers on the database lied every year they introduced more services last year they in 2018 they'll have introduced significantly new services and the number of eighteen hundred plus okay the year before is like fourteen hundred next year we're probably higher by introducing new services faster that keeps the pace and that's what's hard to copy it's hard for competition to try to match that and as they try to match it they have the diseconomies of scale this is a major advantage this is going to give Amazon customers a comfort because they know that that's that scale becomes more stable products becomes stable the flywheel kicks in and as data gets into the cloud it gets sticky so there's no real lock in spec you can move every in and out of Amazon all you want but why would you because the benefits of being in Amazon far outweigh benefits of actually doing anything else so again the lock-in spec doesn't exist anymore from a technology feature standpoint it's a lock in spec on business model oh it's better well and I want to add something some color to what you said about the the new services and the pace of innovation their services of substance and we know this because our developers you know they talked to us about Amazon Andy Jesse told the story about one of his his executives that was on a plane leaving Seattle he didn't mention Microsoft but clearly he was talking about Microsoft that somebody's laptop was up the PowerPoint presentation it said their strategies explicitly said just announce what Amazon announces don't worry about the functionality and and what so what Amazon what Microsoft is doing presumably it was Microsoft is basically saying check the box freeze the market we have that too so to your point competitors cannot compete with Amazon on pace of innovation no way what they have to do is in the case of Microsoft they have to rely on their software estate in the case of Google you know they've got their innovations ok fine but nobody can match Amazon head-to-head don't just lose every time I like Google's position I love I love Google's got the technology power but you're exactly right that competitive strategy of checking the boxes is an old way of competing and I think what's interesting is the competition has not yet woke up to the fact that the game has already changed on them look at the public sector work that Teresa Collins done the CIA deal really made Amazon a business model because people said hey the CIA could do it we could do it that's been that's come up in all my conversations across all Amazon executives but what's happening now the DoD isn't the only soul source or that's Oracle's business they try to compete I'm checking the boxes but because it's so easy to use the cloud and Andy talked about this as keynote is that you can't fake it till you make it hey you can't you got it you have the surge it's gotta be up and running so it's very easy to do a bake off so you know that it's so that whole way of competing of checking the boxes over the only way to compete is have value and that is a new flywheel that's what's happening right now and that's key so so let me set it up so when you get to reinvent I mean I'm so psyched to be here with you John it's been a while but but try that you try to absorb all the innovation so you so try to boil it down you got to look at it it to simplify it two dimensions one is the data exploiting data better use out of data and the other is developers and developer tools and making it simpler for developers their announcements the 60-plus announcement that they made I break them down into five categories storage and database services compute networking and security third is ease of use and abstractions making things simpler fourth is machine learning and developer tools and the fifth is these new growth frontiers like you mentioned satellite as a service and some other things like in hybrid that we're going to talk about so the announcements kind of fit into that framework but let's maybe highlight some of the announcement a lot of time at least just run down the announcements real quick to meet the main main ones at the place he started the bottom of the stack and move it has moved up storage deep glacier FX Windows file systems lustre for high-performance workloads the new persona developer he call it the Builder the right tool for the right job this is a constant refrain he's been saying control tower blueprints and guardrails template based approach to stand up new use cases for compliance all the kind of detailed manual things that they're automating signal from the noise I love that phrase he put on this put on the big screen that's our motto here it's looking angle security hub lake formation instant data lakes he kind of was pooh-poohing data Lake which I love them like oh shit it'll is just one piece of freedom around databases so one storage was a huge part of the innovation and they're expanding that front and compute and storage it's gonna be critical the database war is definitely happening open engines Aurora doubling customers DynamoDB runtime capacity on demand sensors and time series dais they have timestream block chaining address that straight up look at weekly we'd love blockchain if the customers wanted we're gonna look at and understand it then announce that they announced the quantum ledger database ql DB amazon manage blockchain service so you want etherium or hyper ledger got it and then he moved on to Mitch from databases to machine learning this is where sage maker comes in so you got s3 and ec2 that the pillars you got Aurora that's the key product and then sage making the other key product at the top of stack sets the tone for all these abstractions the machine learning trends tensorflow if you want to use it no problem we'll optimize it Amazon inference engine so elastic inferences blatant see they got a chip inference chip in inferential inferential so you put it the chip and the elasticity service together you have a powerful combination that comes out of the Annapurna acquisition from 2015 building and tuning and managing machine learning apps is gonna be a control area they're gonna add value on and the insights coming from this and marketplace capability so and then on and on and finally the Amazon on premise stack which is gonna be called outpost is the final nail of the coffin behind the strategy because think about it you're gonna put Amazon on premise with a hardware device that's gonna connect with the cloud with all the innovation and this is what amy jazzy talked about we're not just a software company we're hardware we're networking we're compute we're storage and we're software abstractions we're gonna bring that and put it in a device so we're gonna basically create a Amazon Cloud in a box search solution on premise to allow people to manage those Layton sees where network traffic is there this is not just a software only he's not gonna let people run their databases on their clouds it's the Amazon footprints I wanna make a comment about that I came in to reinvent with the with the statement that Amazon actually is winning in hybrid now they used to not talk about hybrid as you well know how can I make that statement when they don't really deliberately go after hybrid well the reason I made the statements cuz the entire ecosystem is connecting to Amazon s3 targets Direct Connect you've seen Amazon do things like snowball and VPC so now what Amazon is doing without post is they're putting the exact same hardware that Amazon uses in its data centers allowing customers to put that in their data centers the identical configuration control plane hardware etc that move is going to really even further extend yeah Amazon's lead and hybrid yeah and we're gonna have eme Jesse on Thursday day of coverage here we have Teresa Carlson on Andy Jessie all the topics David gave McCann you name all the AIG folks coming on as well we're gonna get into all this and extract the signal from all this signal out here of course RTS on VMware I forgot it the other way so there's so much this noise omus iot there IOT strategy is bottoms up and very very impressive gonna have Jerry Chen come on former VMware cloud guy now great little cray lakh venture capital partners over there he's gonna come on and analyze what's the only announcements we're gonna continue to tease out the announcement of course but a silicon angle comm check out all the news it's a tsunami of content coming out of reinvent totally game-changing days we're gonna wrap it up here we're gonna do more analysis so you'll see a bunch of videos on on our YouTube channel and stay tuned watching all week here for live coverage I'm chef Devaux want a stay with us we'll be right back [Music]

hi everybody Jeff Rick here with the Q we're having a cute conversation in the Palo Alto studio something that we do when we have a little break in the show schedule we can take a minute catch our breath and still sit down with the tech leaders that you want to hear from but now we can do it in the studio outside the context of the hustle and bustle of a show and really excited to have a true industry veteran he's been around for probably longer than he wants me to say on air so I'll let him say how long but who is she - the CTO of Hitachi Data Systems welcome thank you Jeff great to see you pleasure to be here well doing a little research for this interview you've been around for a while you've done a number of interviews and the thing that struck me was kind of that maybe the last big trend that you were so excited about server virtualization and what a phenomenal difference that made in the marketplace as well as your business are we going through another one of those now yes well we're you know we're going through this digital transformation and I guess IDC is the one that started that term and it's based upon you know the social mobile analytics and cloud or smack because they called it and that has brought some new technologies and be able to create some new innovations in terms of how businesses can transform themselves right Hitachi Data Systems you guys are you guys are way down in the bowels of these big systems you guys are powering a lot of the storage and and you came from the mainframe business so how is it affecting your business how are you seeing you know real concrete changes in what your customers are asking you for and how you see their business changing yes well we started it as well we started as mainframes and then we transition to storage from the mainframe businesses that are declined but we're more than storage you know we have now we have an x86 of server platform a blade server that enables us to provide a converged solution along with our networking partners like brocade and these converts oceans are kind of the basis for private clouds because it eliminates all the the need for infrastructure connectivity and things like that so you can roll in one of these things plug in a the power plug on the network and and actually pick an application from a table menu of tables templates and be off and running so it makes it very easy to move into this new phase of digital transformation yeah cuz it's funny because on the infrastructure side you know it's kind of production line 101 as soon as you take care of one piece in the production line then you move to your next point of failure you move to your next point of failure you know between compute and and and storage and networking everyone seem to see the kind of networking was kind of the slowest leg of the three and kind of coming up to the modern architecture but now with this type of announcement they're really bringing their game up quite a bit right yeah no Gen 6 is really going to open up a lot of bandwidth and I ops for us and move a lot of the actually you know it's the peaks that we worry about right we have to over configure for the peaks but they've got this you know 32 gigabits per second yes the old mob no problem right everybody calls me everybody calls mom on Mother's Day and AT&T doesn't have to build the whole network out for Mother's Day but Mother's Day only comes once a year yeah yeah the other huge trend that you've talked about extensively which is another driver behind this is really software defined and how software-defined is spreading throughout many parts of the infrastructure and and adding a whole new layer of flexibility expandability elasticity to what customers can do with their infrastructure right yeah software-defined is is key to this transformational transformation that we're talking about and to us Software Defined you know many times people consider software-defined as a way of commoditizing the hardware and to us is much different than that it's really the communication between hardware and the application layer a good example is v-ball from VMware where we can publish our unique capabilities up through the vasa interface API and vSphere can see our capabilities and they find a virtual volume or on their capabilities and on our part we can see into vmware know that we're talking or configuring for a virtual machine not just presenting up Lunz and you know blocks but we can actually recognize that this virtual machine is higher priority than others and we can allocate to the right resources right so it's a communication process and a synergy between applications and hardware infrastructure and then what this has enabled what you've talked about in numerous times too is the ability for an individual to manage a whole lot more in terms of infrastructure storage etc so now as the as the you know kind of amount of stuff that I'm responsible for goes up you know the management and the management tools and the ability to manage this this bigger more complex things becomes much more significant yeah much simpler you know the old view of infrastructure or the data center it was sort of like a triangle you know with with the base of it being the infrastructure costs and the operations and all that the top of it was was the smaller part was what we focused on the applications and analytics what we have to do now is turn that triangle upside down so we focused less on the infrastructure software do you find helps us do that cloud helps us to do that and automate that so that we can spend most of our effort on the application the end user analytics right we hear that time and time again especially with with the DevOps ethos and what amazon has done with you know swipe your card infrastructure that it's really the application that drives everything and there's a there's an expectation in the developer world that now with containers that the application or the infrastructure to just respond and what I need from the application as opposed to limiting my application development based on what I think or I got away from them to spin up a new server or whatever that's completely flip-flopped as you said yeah I mean you make a good point on it's very disruptive I mean not just on the infrastructure side but it's also in development side as you as you talked about so DevOps and agile and scrum and those things are very important so instead of the waterfall approach we took the development right that's too slow we've got to go you know be faster and using these technologies are one thing but how we use that technology and innovation we put into that is what really makes a difference right and you put in the game like we said you've been in the game for a while and and you've mentioned in a number of your interviews you know that these little guys have driven kind of this last big wave of innovation but there's a new one coming on we hear about it all the time it's sio T Internet of Things now as sensors get cheap and actually a benefit of these is now all the sensors that are in them they are less expensive and much more pervasive so now we can put them on dogs you can put them on shipping boxes from Amazon you can put them on all kinds of things you know from your point of view as you start to see IOT build and the momentum building that's a lot of hype probably right now but it's coming right and big companies like GE are behind it and a lot of players are behind it what does that make you think how excited are you about IOT is there some specific challenges you're looking forward to taking down or DC is just kind of the next big step function of kind of demand for the big three of compute networking and storage yeah it's it's another integration process between the information technology we have grew up with the data centers and the operational technology that comes from those sensors how do we bring those things together you know we have you know we have to be able to bridge that too one of the ways we can do that is with several things we have to bridge we have to bridge the infrastructure and then that's software-defined we have to bridge the data and so we have to move more toward object stores with more enriched metadata and we've got to bridge the information so the the data that comes from aisle key is different from your structured data center but you need to bring together that Oracle or s ap data together with this sensor data that comes in and integrate that together so we acquired a company last year called Pentaho that does that allows me to integrate all these things and the way it we have all these connectors to all these disparate types of databases is that it's open source so open source contributes a lot of this we just harden it and provide a subscription maintenance for that so open source is another key driver for for enabler for this transformation did you even talked about the transformation at Hitachi going from proprietary Asics proprietary software to more open source and Intel chips and again kind of leveraging best-of-breed at scale and bringing that type of capability into your right you know the other thing is the Intel's roadmap I mean that is amazing how they went to all these cores and everything and so that is enabled us to do away with a lot of the Asics we use to have to make we do have some ASICs and FPGAs for special purpose but primarily its standard Intel memory and cores and that what that enables us to do is to have a straw floor hypervisor for storage in other words all our mid-range you remember how we used to have separate mid-range and enterprise storage right now that's all running all with one hypervisor storage hypervisor it's interesting we I think was at HP maybe were talked about you know this IOT the concept of kind of IT versus ot and congratulations on the Pentaho acquisition we're at Pentaho world to create a great event great show a lot of traction but you know the ot the operational technology that runs shop floors that people at GE or work that's been cranking along all the time then yeah the IT is kind of two separate worlds and this in this IOT really is bringing those two worlds together and the connectivity together of the devices in the sensors and the shopfloor versus the IT systems you know and what's fortunate for us is he taught you data systems is our parent company has been in the IOT oh well the operational world they build nuclear reactors or trains locomotives and all the infrastructure types of things right and so we're able to bring that expertise together with our expertise and information systems and create this IOT solution right spot right we're in a great spot so a little more specific about the announcement today you're partnering with with brocade on this Gen 6 mhm what does it mean to you for attach II data systems what does it mean for your customers oh well it enables us you know we're going to all flash I mean I think we've already passed the tipping point for all flash you know with our 6.4 terabyte flash drive so we're actually cheaper than lower cost total cost of ownership than hard drives and so the cost is not a factor anymore and then all the surveys the Gartner just did a survey said that you know the users of flash reported you know savings not only in power cooling maintenance and performance normal things but also things like licensing costs because they don't have to license as many cores or instances of databases because of performance of flash so what this Gen 6 does it just opens up the highway or the lanes as Jack was talking about for us to be able to drive more workload through there right and and possibly even reduce the footprint even further by making better utilization of what we have and not have as many cores and instances of applications and as you were talking about a little bit online it's beyond just flash or the all flash array but really now looking down the road and potentially the all flash data center and the impacts of that is gonna have as these data centers keep getting bigger bigger the demands the loads are going up enough power continues to be an issue but this is a complete game-changer in terms of it all right you know all flash arrays were the hot thing right the investors are just big VCS are going crazy about those things investing a lot of money into them but you know the small flash arrays are really appliances if you want an all flash data center you still have to worry about all the enterprise things around availability you know replication disaster recovery security features shredding encryption and all that those things come with an enterprise array so if you're talking about all enterprise all flash Data Center it's more than just an all flash array you've got to expand that requirements to include all the enterprise requirements we traditionally had right so and that's that's why I Jen brocade is so the Gen 6 is so important to this right because not only does it give us the performance but it also has some additional availability features like they have forward error correction for in-stream types of error Corrections it has F CSP they do chap you know like a challenge handshake authentication protocol that we have with with Ethernet they do that with fiber channel and so we you had those additional capabilities and in the Fibre Channel switches now right in six really really just in sync with software-defined everything right it's not beads now you have management you have software capabilities you have all kinds of writings that you can now add in and as you said what's the point of hooking up a really fast drive to it'll hold an old legacy connection system that really wasn't built for the performance that you get out and the i/o insight which is key to seeing seeing that whole network at sandwich there so before I let you go running out of time just kind of get your perspective as to where we are today in kind of the IT industry with these massive shifts in terms of you know cloud and big data now being an asset and on liability and flash even the all flash data center and and mobile and around the corner IOT is you kind of sit back you know on a Friday night maybe with a glass of wine and think wow this is just crazy for all the innovation you live through and seeing how do you rank where we are today and what do you think about when you look out over the - yeah I don't know you know I've been in this business a long time but every year it just seems to be getting you know more and more the world is just expanding you know we see it you know so much data being created and we know we can't store all that data it's a part of the things that we'll have to struggle with is how what do we save and what we don't save and what can we recreate just from metadata so metadata Dappy stores become more important but you know today we're in this transition we we have to have sort of take it bimodal approach we still have our course systems that we need to take care of and nurture and grow and scale but we also need to then move into the the new the new innovations are the things that are that are not as atomic and as we have in our data center but eventual consistency things like that so we have both worlds but we need to be able to bridge the information the data and the infrastructure between the two and and networking is a key piece of that bridging the shortage of opportunity going forward no all right you thanks for taking a few minutes out of your day appreciate thank you all right who you sheet I'm chef Ricky you're watching Q conversations so looking angles to be the cue production thanks for watching